News Takeover
Denkavit takes over Nutrifeed from FrieslandCampina
FrieslandCampina will sell Nutrifeed in Veghel, the company that makes feed for specific young stock, to feed company Denkavit. The acquisition amount remains secret, the companies report in a statement. The transaction should be completed by the middle of this year.
FrieslandCampina has entered into a long-term agreement with Denkavit for the supply of dairy by-products to the animal feed industry. "We respect the contracts we now have for the sale of our dairy by-products," said Joost van de Rakt, FrieslandCampina's product strategy director at an online press conference about the deal. "Once these contracts have expired, all flows will go to Denkavit for the valorisation. They can also possibly resell them."
Fit well together
Nutrifeed now makes animal feed for the first growth phase of young stock from the ingredients of the dairy by-products of the cooperative dairy group, such as pastures, milk sugars and parts of proteins. Milk replacers are made under brands such as Nutrifeed, Kalvolac, Serolat and Procolac for, for example, calves, piglets and lambs. These products are exported to 65 countries.
According to Henk Botter, commercial director of Denkavit, his company Nutrifeed are a good fit. "Our position in the market for young animal feeds is really being strengthened. Denkavit is less active in countries where Nutrifeed is strong and vice versa. As a result, sales align nicely. We also have improved access to the sourcing of raw materials from FrieslandCampina."
No longer appropriate in strategy
Nutrifeed is now part of FrieslandCampina Ingredients. In December last year, the dairy group decided to fully focus on high-quality dairy ingredients for consumers in all life stages. As a result, Nutrifeed no longer fits into the strategy. "Denkavit is a strong party with international growth ambitions for our animal feed business. Denkavit offers us a good opportunity to create added value for our dairy by-products," said Herman Ermens, president of FrieslandCampina Ingredients, in a statement.
Denkavit has an annual turnover of approximately €650 million, with a volume of 500.000 tons of feed. Van de Rakt indicates that FrieslandCampina does not want to report the turnover of Nutrifeed, but that the company produces 80.000 tons on an annual basis. According to Botter, Nutrifeed will continue to operate as an independent company within Denkavit with the factory in Veghel. However, Denkavit can make good use of the factory in Veghel. "Our factory in Voorthuizen, where we mainly make calf milk replacer, is at maximum capacity. In Veghel they operate in 2 shifts, so there is still latent capacity there. We will certainly fill it in."
Do not feed more expensive
With the acquisition, Denkavit expects to be able to give research into high-quality young stock feeds an extra boost. According to Botter, customers such as dairy farmers do not have to worry that the feeds will become more expensive, now that Denkavit has bought a competitor from the market. "The competition in our market is fierce and many players are active, including from abroad. This agreement will not affect that."
Eric the Thrush
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