'Why wait another 5 years with this feed fusion?'

ABZ Diervoeding and De Collaboration will continue under the same flag from 2022. The two feed cooperatives will then merge to form ABZ De Cooperation, which will then produce 700.000 tons of compound feed in five factories, accounting for a market share of 6% to 7%.

Marcel Roordink, director of ABZ Diervoeding, is enthusiastic about this new merger in compound feed country. "We are both doing better than the market, but why wait another five years to take this step?" Boerenbusiness spoke to him about the merger announced today (Friday 19 November).

In the press release you list a number of reasons that necessitate a merger, such as the rapidly changing legislation and regulations and the political vision of livestock farming in our country. This is like choosing from cramp over strength?
"I understand your question, but we really see it as a choice of strength. Both De Collaboration and ABZ Diervoeding could successfully move forward for another five to ten years separately. Nevertheless, we consciously choose to continue together. have been working together in the field of personnel management and the like since 2004. For the past five years we have also been purchasing raw materials together. Why not take the last step now? We are both positive and see opportunities separately. At the same time, we signal that the world is We are rapidly changing our view of livestock farming in our country. Animal numbers in our country are currently under slight pressure and politics is hinting at a further decline. With this merger, we are anticipating the future. It would be unwise to wait until the moment that this choice of cramp has to be made."

Why a new name, both ABZ Diervoeding and De Samen are well-known names?
"It is a merger based on equality. That is why we are opting for a new statutory name that sounds familiar at the same time. However, we will not be repainting our XNUMX bulk trucks in the coming months. We do not think that is necessary. It could just be that the yellow cars van De Cooperation will still be visible in five years. We are a cooperative and we work with farmers' money. In our view, we have to spend that wisely."

Two captains on one ship are doomed to failure. Who will be the new director?
Willy Hanssen, the current director of De Samen, will be given a new and more free role in the management. He will focus in particular on strategy and cooperative matters, and less on the process-related side within the company. the merger general manager, as I am now at ABZ Diervoeding."

What kind of company will arise after the merger?
"We will then be a national supplier of compound feed, active in five regions. You could say irreverently: We will soon be five regional feed cooperatives that are tied together at the back. We want to cherish the regional approach. De Cooperation is also strong in the region. That is why we are a good match. We notice that customers appreciate our regional approach. Both ABZ Diervoeding and De Samen have outperformed the market in recent years. We will use the coming months to bring both companies together We are taking extensive time for that. The Welkoop store that De Samen operates will remain in place. Just like the seed activities. In the field of livestock farming, such as forage cultivation and soil, De Samen has a great deal of knowledge that will soon be available in other regions as well. The proposal for a merger will be submitted at the end of December to the General Meeting of Members of De Cooperation and the Council of Members of ABZ Di nutrition. The coming period will be used to inform members and to further develop the plans."

You are now active in all corners of our country, so the circle is complete. Is the next step then abroad?  
"No, abroad is not an option for us at the moment. We would rather be good than big. After the merger we will have a market share of 6 to 7%. I do not rule out further acquisitions and mergers in the Netherlands, the ambition is to in the coming years to gradually grow to a 10% market share. Even then, the step abroad is not an option. We already supply feed to the border regions, but we are not going to translate our website into German, just to name a few."

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.