Value creation for Udenhout

Cost calculation and value creation for Udenhout Outdoor and Indoor pigs.

Prepared by: De Mediaan

Analysis – Management Consultancy

Final version

Contents

Contents ...... 2 1 Introduction ...... 3 2 Udenhout Outdoor and Indoor ...... 4 2.1 Udenhout Outdoor ...... 4 2.2 Udenhout Indoor ...... 4 3 Cost price for each system ...... 6 3.1 Assumptions used in the cost price calculation ...... 6 3.2 Cost price ...... 7 4 Market value of fattening pigs ...... 9 4.1 Value creation from a ...... 9 4.2 Value creation in the chain ...... 10 4.2.1 Value creation, Udenhout Indoor...... 10 4.2.2 Value creation, Udenhout Outdoor ...... 11 5 Carcass utilisation ...... 12 5.1 Impact of carcass utilisation on total revenue from pigs ...... 12 6 Conclusions ...... 13 Annexes ...... 14

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1 Introduction Since 1990 the Van Gorp family has owned a pig farm in Udenhout, called ‘Ons Erf’ farm. In 1993 it expanded to 120 sows and 800 fattening pigs and in 2002 the decision was taken to diversify the farm. Poor financial results from the pig farm provided the motivation for a change of course. Four new activities were established by making use of connections and skills.

The first activity is the care farm. In 2002 an agreement in principle was signed within a short period with ’t Heem , a care institution with branches in the region. The care farm actually started in 2007; it was some time before it could start properly due to the need for assessments, etc. Currently, on average 10 guests attend per day, four days a week. The family receives a fee per guest for day care and provides everything out of that fee.

The second activity is the tree nursery. It started in 2002 with half a hectare and gradually expanded to 11 hectares by 2012. Trees are grown for a tree nursery in Udenhout. The range consists of: Taxus, Liguster, Ilex and laurel. The tree nursery currently has one employee.

The third activity is providing visits to the farm for school children and interested parties against payment. Children’s parties and guided tours started in 2002 and led to the setting up of the Klasseboeren scheme in 2004. This is a network of farmers who offer visits for schools from Tilburg and the surrounding area so that children can learn about farming.

The fourth activity is marketing the which is produced at the farm. For this activity the family belongs to the Duinboeren (Dune Farmers) group. The Duinboeren are farmers from the region who have consciously chosen to diversify and to produce and/or sell local produce. The Van Gorp family has developed the sausage roll which is sold directly to consumers and in other farm shops. Half pigs are also sold to consumers. A variety of cuts are vacuum-packed and frozen for a farm shop. Finally, some of the meat is prepared for the care guests along with vegetables from the farm’s garden.

The objective is to develop the last of these activities by selling more of the farm’s own meat via farm shops in the area, to care institutions and directly to consumers. The family rears the pigs in an animal-friendly way and wishes to rear them in the way that consumers want if they are prepared to pay for it. This may involve providing the animals with more space, using welfare-friendly feed or demonstrably minimising the use of antibiotics. The aim is that customers will determine how the pigs are reared and the Van Gorp family will implement this. Customers will pay the additional costs.

The next section outlines the main features of the two systems. Section three discusses costs and section four calculates a market value per pig. Finally, section five covers carcass utilisation and section six presents the conclusions.

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2 Udenhout Outdoor and Indoor This section explains the two pig rearing systems. In the first system the pigs are kept outdoors from a young age until the moment of slaughter. In the second, the animals are kept indoors and have more space and comfort than in conventional systems.

2.1 Udenhout Outdoor The Udenhout Outdoor system is basically a system in which the pigs are kept outside as much as possible. This enables them to develop and exhibit natural behaviour to an optimum extent.

The twelve piglets (average size of a litter) live outdoors with the sow from the age of 3 weeks. They are in a 100 m 2 meadow/field with dry, covered night-time housing which contains straw and the feed troughs. This enables the pigs to lie in a dry, warm place at any time and the feed stays dry and palatable.

The piglets are weaned when they are 6 weeks old and the mother sow is taken away. They then stay outdoors until they are approximately 6 months old and ready for slaughter.

The unique points of this system are:

1. Pigs can develop and exhibit natural behaviour 2. Pigs have plenty of space and therefore experience no stress 3. In outdoor systems disease levels are low so there is zero use of medication, resulting in antibiotic-free meat

The points to consider in this system are:

1. Labour costs per animal delivered are high 2. Much more space is required

In practice, it appears that feed consumption by the pigs is higher than in conventional systems. This is because they have more freedom to move around and also have to regulate their body temperature.

In summary, the pigs have a much better life but the costs are much higher.

2.2 Udenhout Indoor The Udenhout Indoor pig farming system is basically a system in which the pigs are reared indoors.

The piglets stay in the farrowing pen with the mother sow until they are 4 weeks old. They are then moved to the pig rearing area until they are 3 months old. Finally, they are moved to the finishing area where they remain until they are 6 months old and ready for slaughter.

Depending on consumer preferences, the unique points of this system may be:

1. Pigs have more space and therefore experience less stress 2. Pigs are given special welfare-friendly feed 3. The pigs are a high-quality breed (Pietrain); consumers get more meat (less fat)

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4. Disease levels are lower so there is zero use of medication, resulting in antibiotic-free meat 5. The pigs have a better life, partly because the transport distance to the abattoir is shorter

The points to consider in this system are:

1. If consumers have different preferences, how do you reconcile them in practice? 2. The additional cost of each welfare aspect must be calculated.

This report calculates the additional cost of each welfare aspect. These aspects are: more space per pig, special welfare-friendly feed and high-quality pigs.

In practice, it appears that lower stocking densities have reduced disease levels. As a result, the use of medication has fallen dramatically. In 2012 use of medication was 10% of the general norm in pig farming. The intention is to match this level (there is very little room for improvement) but you can never make predictions because you are dealing with live animals.

In summary: consumer preference is central to this system; it is an improvement for the pigs and the pig farmer’s additional costs are paid.

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3 Cost price for each system This section calculates the cost price for Udenhout Outdoor. For Udenhout Indoor, the basic cost price and additional costs per cost heading are calculated.

3.1 Assumptions used in the cost price calculation The following assumptions were used when calculating the cost price.

The cost price is calculated for each pig delivered.

The cost price for Udenhout Outdoor and Indoor in terms of food, medication and losses is based on technical and financial figures for batches of animals reared on the farm in 2012 and figures from the Quantitative Information for Livestock Farming handbook (KWIN). Udenhout Outdoor pigs eat 20% more feed for the same level of growth. KWIN figures were also used for housing, gas, water and electricity. Udenhout Outdoor uses less gas but more electricity because a heat lamp is employed. The cost of straw is calculated by taking the number of bales of straw multiplied by a cost price of €3 per bale. Labour is calculated at the rate that would have to be paid for an equivalent substitute for the farmer (only for daily work related to pig rearing). The number of hours worked were measured in practice and include feeding, monitoring, finishing and moving pigs. Manure costs are taken from the financial records; figures from the manure market were also consulted because Udenhout Outdoor manure is ‘different’.

The cost of transport to the abattoir and the slaughter costs were supplied by the Van Gorp family. These costs are assessed on the basis of 2 pigs per transport for Udenhout Outdoor and 20 pigs for Udenhout Indoor. The slaughter costs are based on a live weight of 113 kg and 72 kg of sellable meat (excluding the head, rind and barding fat). These figures are based on the weights currently achieved at the ‘Ons Erf’ farm; in practice they are re-weighed.

Slaughter, including cutting, costs €50 per carcass. The total cost price is converted into a cost price per kg meat. The slaughter costs for Udenhout Indoor may have been overestimated because a reasonable number of these pigs can be slaughtered every week. As a result, the inspection and slaughter costs can probably be reduced. This also applies to vacuum packing; in practice this can probably be reduced to a minimum.

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3.2 Cost price The table below shows the cost price per fattening pig delivered, in euros.

Production Udenhout Outdoor Udenhout Indoor Cost price, 35 50 Feed 88 73 Losses 3 3 Medication/health 1 3

Housing 10 10 Gas 2 5 Electricity 7 (heat lamp instead of using 5 gas) Water 5 5

Straw (litter) 12 Not applicable Labour (at €25 per hour) 115 10 Manure 6 5 Other 6 6 Minimum cost price, production 290 175 5% margin for business risk, disease, etc. 15 8 Cost price, total production 305 183 Cost price, total production, per kg 3.18 1.90 carcass (96 kg)

Slaughter Udenhout Outdoor Udenhout Indoor Transport to abattoir 25 3

Slaughter 50 50 Carcass inspection 35 35

Cost price, slaughter process 110 88 Total cost, production to meat 415 271

Cost price per kg meat (72 kg/pig) 5.76 3.76

The cost price calculation shows that there is very little difference in cost level, except for labour. Udenhout Outdoor pigs are far more labour-intensive.

The cost price per kg meat is the purchase price paid by the butcher’s shop. Normally, the butcher will have to double the purchase price in order to cover all the costs of the shop, staff, etc. (including a profit margin of 12%). Therefore, on average, one kg of meat from Udenhout Outdoor must realise €11.50 in the shop and one kg of meat from Udenhout Indoor €7.50 (excluding additional costs).

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Additional cost of extra space If a fattening pig has 20% extra space, this means that housing costs will increase by 20%. The overall efficiency of the farm will also drop because the total number of pigs is lower. As a result, the cost per pig under the headings labour, gas and electricity will increase. Because the batches of animals are 20% smaller (64 instead of 80) the abattoir gives a lower premium (or a higher premium must be paid). This amount is approximately €4 to €9.40 per pig or 5 to 11 cents per kg meat.

Cost heading Cost increase In euros per fattening pig Space 20% 2 Gas 25% 1.25 Electricity 20% 1 Labour 20% 1.2 Lost premiums 4 to 9.40 Total 9.45 to 14.85 (13 to 20.5 cents)

Additional cost of welfare-friendly feed

Enquiries to the feed supplier indicate that welfare-friendly feed costs €7.5 more per fattening pig. This is 10 cents per kg meat.

Additional cost of high-quality fattening pigs High-quality pigs bring additional costs because they have a slower growth rate and the feed conversion rate is lower. On the other hand, the meat produced is of much higher quality. It is estimated that 5% more feed is required, which is €3.5 per pig or 5 cents per kg meat. The additional costs arising from the slower growth rate consist of additional housing costs because the pigs take longer to fatten (or a lower throughput rate). A high-quality pig grows at a rate of 750 grams per day whereas the rate for a fast-growing pig is 1000 grams per day. This means that housing costs per pig are 25% higher, which is €2.5 per pig or 3 cents per kg meat. In total, the additional cost is €6 per pig or 8 cents per kg meat.

Additional cost due to very limited use of antibiotics Lower antibiotic usage requires a different method of pig farming. This is due to the need for better hygiene, greater attention to young piglets and accepting slightly higher losses. The total additional cost is €3 per pig. Savings on antibiotics amount to €1.50 per pig. The net additional cost is €1.50 per pig or 2 cents per kg meat.

Summary of additional costs Cost heading Additional cost per pig Additional cost per kg meat 20% more space €9.45 to €14.65 13 to 20.5 cents Welfare -friendly feed €7.5 10 cents High -quality pigs €6 8 cents Very limited use of antibiotics €1.5 2 cents

Total €24.45 to €29.65 33 to 40.5 cents

The total cost price (= basic cost price + total additional cost) of Udenhout Indoor is therefore €298 per pig or €4.14 per kg meat, including slaughter and boning.

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4 Market value of fattening pigs This section considers the market value of fattening pigs. What do consumers want to (or have to) pay for a piece of pork?

4.1 Value creation from a pig The table below sets out all the consumable meat on a pig and the price asked for it in the shop. The price in web shops, supermarkets and butcher’s shops was investigated. The most common price is shown in the table. It is assumed that a pig produces 72 kg of meat. The meat that is least suitable for sale (head, rind and barding fat) is included at the end; this accounts for approximately 13 kg per pig. This meat is low in price and difficult to sell, therefore its share of the total income is estimated at just €10 per pig.

Value creation table for pigs

Classification Seurop SAA Live weight 113 kg mvp 61 Slaughter weight 96 kg Fat 10 Sellable meat 71.5 kg Muscle 62 PSE 10

Price, Price, free - Price, Product % kg conventional Value range Value organic Value Tenderloin 1.25% 1.2 14 16.8 18.5 22.2 22 26.4 Fillet/chop 8.33% 8 9 72 14.5 116 18 144 Neck/blade chop 5.00% 4.8 7.5 36 10 48 14 67.2 Loin/pork 5.63% 5.4 8.5 45.9 13 70.2 15.5 83.7 Escalope 8.75% 8.4 9 75.6 14.5 121.8 19 159.6 Stewing pork 4.90% 4.7 6.5 30.55 8 37.6 9.5 44.65 Belly/streaky slices 9.90% 9.5 6.5 61.75 9 85.5 11 104.5 hock 1.67% 1.6 5 8 6 9.6 7 11.2 1.25% 1.2 7 8.4 8.5 10.2 9.5 11.4 Mince/sausage 27.81% 26.7 5.5 146.85 8 213.6 9.5 253.65

Head 5.42% 5.2 2 10.4 3 15.6 4 20.8 Rind/barding fat 8.44% 8.1 0 0 0 0 0 0 Bare bones 11.67% 11.2 0 0 0 0 0 0

€ € € Total 100.00% 96 Conventional 512 Free-range 750 Organic 927

€ € € Weighted av. price per kg meat (excl. head) 7.16 10.49 12.97

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The table above gives an average shop price: for conventional pork this is €7.20, for free-range €10.50 and for organic €13 (this excludes the parts that are difficult to sell).

According to market research, the average price of conventional pork in butcher’s shops is €9.50 per kg. In supermarkets it is approximately €2.50 per kg lower (source: Slagersmonitor 2009). Supermarkets have a market share of 80% and butchers 15%. The weighted average is €7.40. This is completely in line with the calculations above.

4.2 Value creation in the chain This section compares the cost of production and processing with the price asked in the shop. It then examines whether these tie up. It is assumed that carcass utilisation is optimal, i.e. that every piece of meat can be sold at the right price (in other words, that the is sold at the price of pork tenderloin and not as mince). Section 5 discusses this in more detail.

4.2.1 Value creation, Udenhout Indoor

Production costs €183 + €27 (total additional cost, see section 3.2)

Processing costs €88

Shop costs €288

Expected shop revenue €576 (72kg * €8, price is conventional plus 10%)

Difference between costs and expected shop revenue = margin = - €10 (2% of total calculated costs).

The selling price of Udenhout Indoor in the shop is set at the price of conventional pork plus 10% because the animals have a better life. The expected sales revenue is sufficient to provide a good margin for all parties in the chain. A traditional chain is assumed; the situation will change if the chain is different. For example, if a web shop replaces a physical shop or meat is delivered directly to the customer.

If Udenhout Indoor is offered to consumers via a web shop (saving of €144 or 50%), an average web shop price of €6.14 is sufficient (€442 / 72 kg = approx. €6.14).

If Udenhout Indoor is delivered directly to a care institution or web shop, an average price per kilo of (€298 / 72 kg = €4.14) €4.14 is sufficient. If the pig is sold as a carcass, a price of €2.20 per kg carcass weight is sufficient (excl. processing costs).

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4.2.2 Value creation, Udenhout Outdoor

Production costs €305

Processing costs €110

Shop costs €396

Expected shop revenue €792 (72 kg * 11, price is free-range plus 10%)

Difference between costs and expected shop revenue = margin = - €19 (2% of total calculated costs).

The selling price of Udenhout Outdoor in the shop is set at the free-range price plus 10% because the animals have a better life. The expected sales revenue is sufficient to provide a good margin for all parties in the chain. A traditional chain is assumed; the situation will change if the chain is different. For example, if a web shop replaces a physical shop or meat is delivered directly to the customer.

If Udenhout Outdoor is offered to consumers via a web shop (saving of €198 or 50%), and labour costs can be reduced by increasing numbers or combining transport (saving of €50), an average web shop price of €7.82 is sufficient (€563 / 72 kg = approx. €7.82).

If Udenhout Outdoor is delivered directly to a care institution or web shop, an average price per kilo of (€415 / 72 kg = €5.76) €5.76 is sufficient. It is assumed here that labour costs can be reduced by doubling the numbers and combining transport. If this does not work, a price per kilo of (€465 / 72 kg = €6.46) €6.46 is sufficient.

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5 Carcass utilisation This section discusses carcass utilisation. Carcass utilisation means optimum utilisation of every piece of meat from the pig.

5.1 Impact of carcass utilisation on total revenue from pigs Carcass utilisation in pigs is a challenge. By definition, consumer demand does not match the meat available on a pig. Modern consumers want no fat, small portions, meat that is quick to cook and easy to prepare. Meat consumption also changes with the seasons. Pea soup with pig’s trotters is popular in the winter but not in the summer. As a result of this and other factors, it is almost impossible to sell every piece of meat at the optimum price. In practice some of the meat will always have to be processed into mince or shawarma, so the total income from a pig is lower in practice than it should be on paper.

The butcher is a professional who can control carcass utilisation, either by buying in the parts that he can sell well (he shifts carcass utilisation to the wholesaler) or by processing parts of the meat into easy-to-prepare meals, meat products, etc. himself. The price set by a butcher will also stimulate or reduce sales of certain cuts of meat.

This section provides an estimate of the loss of revenue resulting from non-optimum carcass utilisation. This is calculated by determining the value of a part of the pig at the price of mince instead of the normal price of that piece of meat.

Scenario I: 10% of the pig is sold as mince instead of chops.

The loss is 7 kg chops at €5.5 instead of €9, total loss €24.50 per pig.

Scenario II: 20% of the pig is sold as mince instead of chops.

The loss is 14 kg chops at €5.5 instead of €9, total loss €49 per pig.

In practice, this loss will be factored in. Nevertheless, for a butcher it is an important component which has an impact on his profit: the better the carcass utilisation, the better the financial result.

Carcass utilisation can be improved in practice by taking account of the existing stock of cuts when cutting the pig. This produces the best results if several pigs are slaughtered per week.

Many butchers process parts of the pig into traditional or specialist meat products. Good parts of the pig (often the ham) are used for this, but the total income from the pig is higher because these products sell at a much higher price. Of course the costs are higher, but on balance it is an attractive approach if a reasonable quantity can be prepared at the same time and the products have a long shelf life.

The less valuable parts of the pig are often processed into sausage or mince. Butchers can differentiate themselves successfully by making special types of sausage (see sausage-makers guild) or making and pre-cooking special types of mince-based products. This improves carcass utilisation and responds to the customer’s preference for meat that can be prepared quickly and easily.

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6 Conclusions This section summarises the main conclusions from this report.

‘Ons Erf’ farm wants to take the next step towards forging links between the farm and the city. Specifically, it wants to produce pork for residents and institutions in the region which is reared in response to customer preferences that have been ascertained in advance.

A list of options has been compiled for customers from the region. Customers can choose on the basis of this list and gain a direct insight into the additional cost of their choice.

The total additional cost of Udenhout Indoor compared with a pig that has been fattened in the conventional way is €27 per fattening pig or 38 cents per kg meat. This is the case if customers choose the full list of options.

The cost price for Udenhout Indoor, without extras, is €271 per fattening pig or €3.76 per kg meat, including slaughter and boning costs.

The price for Udenhout Indoor, with all the extras, is €298 per fattening pig or €4.14 per kg meat, including slaughter and boning costs.

The price for Udenhout Outdoor is €415 per fattening pig or €5.76 per kg meat, including slaughter and boning costs.

The price for Udenhout Indoor and Udenhout Outdoor is competitive because the meat can be placed on the market and sold at these prices, partly because it is a regional product and the pig rearing method can be agreed with the customer.

Pig carcass utilisation is an important aspect in successful marketing of a pig. Good carcass utilisation can easily deliver 10% additional income and, conversely, poor carcass utilisation can bring losses of 10%.

In an ideal case, product development will ensure better carcass utilisation and a better match with consumer preferences and provide the butcher/retailer with a unique selling point.

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Annexes

Costs of slaughter, cutting and packing.

The information given below is taken from the report ‘ Haalbaarheid mobiel slachthuis en uitsnijderij , WUR, rapport 460, april 2011’ (Feasibility of a mobile abattoir and cutting unit, WUR, Report 460, April 2011). Mobile slaughter and cutting is significantly more expensive but is more animal-friendly.

Costs of slaughter and cutting in an abattoir The prices vary. Some examples are given here: - Price per kilo (carcass weight): €1.30 slaughter and cutting + €0.65 packing. The cost of sausage/ hamburger making should be added. For the animal weights used here, this gives: €1010 per cow; €265 per pig and €60 per sheep. - Another source gives figures excl. packing: - a cow €435 (€50 slaughter; €70 taxes; €0.70 per kg. For a 450 kg carcass this is €435) - for a pig €85 (freezer-ready excl. sausage: €20 slaughter; €20 taxes; €45 cutting). Packing is carried out by the owner on site. - for a sheep €30 (€10 slaughter; €10 taxes; €10 cutting and preparing for freezer) - If we assume €0.65 per kg carcass for packing, this example gives €730; €150 and €50, respectively, for a cow, a pig and a sheep. - But other sources state €0.85 per kg (carcass weight) for slaughter plus €2 per kg for cutting and packing. - The transport cost is estimated at approx. €100, but this is the same whether one or two cows or a number of sheep are transported. Here we assume €100 per cow, €25 per pig and €10 per sheep. This is the unit price and does not change if the number of animals supplied increases or decreases. There is therefore a huge difference. In summary, slaughter, cutting and packing of a pig costs between €150 and €225.

Part of an interview with Annechien ten Have (see foodlog.nl)

You have to tempt the consumer to buy a distinctive cut of meat. But pig farmers sell their pigs to butchers and meat processors. Pig farmers don’t put meat on their own shelves. Therefore supermarkets must be willing not only to cut meat prices but also to ensure that distinctive meat is made more attractive to buyers. We have to get away from price slashing. It is very difficult for an individual pig farmer to influence what is on the shelf. I want to change this so that we can make consumers aware that they have a choice and need to ask questions. But we cannot and must not pretend that the economy is everything. We can add value to pigs effectively by using every part of the pig: from ear to foot, from bone to blood. Yes, everything. The only thing that isn’t used is the grunt. We call this carcass utilisation. Optimum carcass utilisation from a distinctive piece of meat is a problem. We can make 150 products from every pig, from chops, ham and sausage to pig’s ears for the Asian market. If one part of the pig doesn’t deliver a premium price, it must be possible to sell the rest at an extra-high price. And many parts have different markets. The ears all go to Korea, the bacon to England and the spare ribs to the USA. It’s important to ensure that we don’t just create extra added value for fresh meat such as chops, tenderloin, etc. but also for items such as meat products. There is a much bigger margin on meat products. The versatility of the pig is also its problem. This is a real challenge for the pig sector.

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Article in Boerderij , 28 July 2009

On-farm butchery De Schelfer in Geesteren (Gelderland) achieves an income of €700 to €1000 per pig by processing some of the pork into 50 different types of ham. The pigs grow slowly and are slaughtered at the age of 9 months at a slaughter weight of 120 to 140 kg. Each year 250 pigs are marketed in this way. The pigs are fed on special feed such as rye meal so that they do not gain fat. They are housed in a traditional pig house.

Part of interview with La Place in newsletter of Stichting Milieu Keur (SMK).

Ten Hengel explains that he decided to switch for a number of reasons: “Taste is the most important thing at La Place. So the taste of the meat had to be at least equivalent to that of ordinary pork. Even the management team judged that the taste was better at its weekly blind taste test. Obviously we also wanted the entire chain from start to finish to be traceable and well organised. The Milieukeur environmental quality label proves that this is the case. Lastly, of course, you have to make it economically viable. That was still a stumbling-block until recently because we only use the ham on the bone, short pork tenderloin and fillets. Of course, those are just three specific pieces of the pig so we had to look at carcass utilisation: you also need to sell the other parts of the pig before you can sell those three parts profitably. The wholesaler got it sorted out in good time.”

Consumer spending on sustainable food

From De Monitor Duurzaam Voedsel, LEI –WUR, 2012

Spending on 1st half 2011 1st half 2012 Change sustainable food, by quality label (x million euros) Beter Leven 124.1 204.9 65.1% EKO/Organic 397.6 444.7 11.8% FAIRTRADE/Max 83.1 101.6 22.3% Havelaar Label Rouge 0.6 0.8 33.3% MSC 64.9 69.7 7.4% Milieukeur 13.8 16.7 21.0% Rainforest Alliance 51.3 52.5 2.3% Scharrelvlees (Free- 0.7 1.9 171.4% range meat) UTZ Certified 153.5 198.2 29.1% Vrije Uitloop (Outdoor 2.5 2.3 -8.0% runs) Subtotal 892.1 1,093.3 Minus multiple 65.2 72.9 11.8% quality labels Total 826.9 1,020.4 23.4%

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Spending on sustainable 1st half 2011 1st half 2012 Change food, by product group (x million euros) Potatoes, vegetables and fruit 129.8 146.0 12.5% Bread, pastry products, cereals 36.9 41.0 11.1% Dairy produce 102.3 121.1 18.4% Eggs 29.5 33.5 13.6% Meat 94.1 168.8 79.4% Meat products 18.0 26.4 46.7% Meat substitutes 6.7 6.5 -3.0% Coffee, tea, cocoa 202.9 206.7 1.9% Fish 64.5 70.6 9.5% Other food 142.1 199.9 40.6% Total 826.9 1,020.4 23.4%

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