Key Takeaways:
- ForFarmers and team agrar, part of the DLG Group, will combine their feed operations in Germany under the joint venture ForFarmers team agrar.
- The agreement builds on an existing collaboration in the HaBeMa joint venture, which focuses on raw materials trading, storage, and feed production.
- The new venture will include eight feed production sites, three terminals, and a vehicle fleet, employing around 380 staff.
- The joint venture aims to enhance operational efficiency, expand market reach, and better serve the German feed market.
- Management will include representatives from both companies, with Ernst Friedlaender as Managing Director.
ForFarmers and team agrar, a part of the DLG Group, have agreed to merge their feed operations in Germany through a joint venture called ForFarmers team agrar. The joint venture, which will offer a broad range of feed products across multiple livestock species, awaits approval from the relevant regulatory authorities.
Ongoing Collaboration
This development builds on the companies’ prior relationship through the HaBeMa joint venture. HaBeMa, based in Hamburg, has been active in the trading, storage, and transshipment of raw materials, as well as compound feed production. The agreement to expand the joint venture reflects a continuation of their long-term partnership, broadening the scope to include feed production operations throughout Germany.
Profiles of the Partners
ForFarmers is a European company providing feed solutions for the livestock farming industry. Focused on sustainable farming practices, ForFarmers delivers feed products and services designed to make the agricultural sector more efficient and future-ready. In Germany, the company offers a wide range of feed products for different livestock species.
team agrar operates in several agricultural sectors, including compound feed production, grain collection, seed and fertilizer supply, and plant protection products. As part of the DLG Group, team agrar’s activities are aligned with the DLG Group’s broader goal of promoting sustainability and serving as a trusted partner for farmers.
Structure of the Joint Venture
The joint venture will be structured as a 50/50 partnership, integrating both companies’ feed operations in Germany. It will involve around 250 employees from ForFarmers and approximately 130 from team agrar. The combined operations will manage eight feed production sites, three terminals, and a vehicle fleet.
Additionally, the HaBeMa joint venture, with its 130 employees, will be incorporated into the new structure. However, certain operations, including ForFarmers’ brands such as Thesing, Pavo, Reudink, CirQlar, and Vleuten, as well as DLG Group’s non-feed activities, will remain outside the scope of the new agreement.
Management will include representatives from both ForFarmers and team agrar, with Ernst Friedlaender serving as Managing Director. The advisory board will have equal representation from both shareholders, and the chairmanship will rotate regularly between the companies.
Strategic Considerations
Both companies have highlighted the strategic benefits of the joint venture, including improved geographical coverage in Germany and opportunities for operational synergies. The combined entity will allow for more efficient use of resources, expanded market access, and enhanced service to customers. By sharing expertise in areas such as procurement, product formulation, and innovation, ForFarmers and team agrar aim to strengthen their positions in the German feed market.
Pieter Wolleswinkel, CEO of ForFarmers, noted the positive history between the companies through the HaBeMa joint venture, describing the new partnership as a logical next step. Similarly, Jesper Pagh, interim CEO of DLG Group, emphasized the shared values and strategic alignment between the two partners.
Ernst Friedlaender, Managing Director of ForFarmers Germany, and Bent Nissen, Managing Director of team agrar, both cited the importance of leveraging synergies and expanding the partnership to support the long-term sustainability of their feed operations.
ForFarmers NV Latest News
Reports Results for 2023 & Strategy for 2024 (2024/02/22)
In 2023, ForFarmers, a key player in the feed industry, experienced a year of transition and progress. CEO Pieter Wolleswinkel emphasized the success of the ‘Local in the lead’ strategy, which strengthened ties with farmers and improved market performance, particularly in the second half of the year. Although total feed volume decreased, and revenue dropped by 10.3%, financial recovery was notable in the latter half of 2023. Strategic moves, such as the acquisition of Piast in Poland and divesting its Belgian compound feed activities, aligned with ForFarmers’ growth strategy. The company also advanced sustainability through innovative feed solutions and the launch of its CirQlar Nutrition brand. Looking forward, ForFarmers plans a €0.15 per share dividend and focuses on growth, targeting a 10% return on capital by 2025.
Pavo Expands Equine Market Presence with Acquisition of Thunderbrook Equestrian Limited in the UK (2024/01/11)
ForFarmers NV’s equine sector, Pavo, has acquired Thunderbrook Equestrian Limited, gaining full ownership of the company’s shares. Thunderbrook’s strong brand and diverse product portfolio in the equine feed industry, with a robust online presence and wide distribution network across the UK and Ireland, will complement Pavo’s existing offerings and enhance its reach in the market. This acquisition positions Pavo for further expansion in the UK and Ireland as part of its goal to expand its international leadership in the horse feed sector.
Completes Acquisition of Piast (2024/01/04)
ForFarmers has completed the acquisition of Piast Pasze Sp. z.o.o. through its affiliate Tasomix, expanding their volume in Poland by 410,000 tonnes and strengthening their position in the broiler sector. The total enterprise value of the acquisition is approximately €30.6 million and aligns with ForFarmers’ objective to grow its presence in the Polish agricultural sector.
Read more here.
ForFarmers Latest News: Reports Positive EBITDA Recovery (2023/11/03)
ForFarmers, an international feed company, reported a 33.6% increase in underlying EBITDA in Q3 2023. Sales volumes remained stable compared to Q2 2023 but declined from the previous year. The company’s new market-specific approach yielded positive results, strengthening its market position. ForFarmers is focused on delivering competitively priced feed and enhancing sustainability. The Supervisory Board appointed Hans Kerkhoven as interim CFO.
Read more here.
Receives Approval to Sell Belgian Compound Feed Activities to Arvesta (2023/09/29)
ForFarmers NV has received approval to sell its compound feed activities to Arvesta, excluding some sale activities. The €25 million cash transaction will close in October, benefitting both companies and positively impacting Belgium’s agriculture sector.
Arvesta Acquires ForFarmers Belgium (2023/04/05)
Arvesta, a specialist in agriculture and horticulture, is set to acquire ForFarmers Belgium, including the manufacturing facility and about 80 employees. The two companies will collaborate more closely in the broiler industry, with ForFarmers NV continuing to manufacture feed in the Netherlands. Arvesta will pay ForFarmers €25 million in cash for the deal, which is expected to close in the second half of 2023. The acquisition strengthens Arvesta’s position in the Belgian market, while ForFarmers will receive financial gains.
Photo by Ivan Bandura on Unsplash
