Agribusiness

Belgian French fry producer Clarebout Potatoes is being definitively acquired by the American JR Simplot Company. Rumors of an impending deal had already circulated, and now both companies have confirmed the acquisition in a press release. The competition authorities still need to approve the acquisition.

The PotatoNext table potato cooperative is trying to raise sufficient funding from its members to ensure, as it claims, sufficient funds for its members. In addition to mandatory member funding, there are two voluntary programs members can participate in.

Lely itself announced earlier this year that its turnover would decline in 2024, and now the annual accounts filed with the Chamber of Commerce (KvK) show that profits are also under pressure. Persistent uncertainty is preventing dairy farmers from queuing up to invest in new equipment, and that's impacting their business.

The first figures for the Cumela Kompas for 2024 show that both labor costs and gross margin per employee have increased significantly. On average, labor costs per FTE increased by 10,4 percent, while gross margin increased by 9,5 percent.   

Compaxo increased both its turnover and profit in 2024. This is evident from figures recently filed with the Chamber of Commerce.

Potato company CelaVita in Wezep is in dire straits, having lost Albert Heijn as an important customer this spring. In order to compete better on the market, CelaVita must reduce costs and the company is investing in new markets, including fresh fries. In ongoing negotiations on a new collective labor agreement, CelaVita has asked the unions in a final offer to moderate the demands.

The covenant Animal-worthy Livestock Farming was signed this week with a number of livestock farming organisations. Officially, this is called the covenant 'Steps towards animal-worthy livestock farming'. It was also signed by animal welfare organisations, market and chain parties and Minister Femke Wiersma of LVVN. However, not by all organisations, as is necessary for a required 'weighing of interests'. The poultry organisation NVP, among others, did not sign.

Food group Aviko is going to significantly expand its production capacity of potato flakes in China. The group, which claims to be the world market leader in the production of potato flakes and granules, is responding to the growing demand for potato products on the Asian market.

Dutch animal feed giant Nutreco has performed much better in 2024 than the previous financial year. The net profit of the company, part of family business SHV, was €75 million.

The troubles in Germany will continue to haunt Vion for a while. The meat company had hoped to leave this market - which has often been loss-making in the past - as soon as possible, but must look for a new buyer now that the cartel service prohibited the sale of the beef activities to Tönnies last week. This is a major setback for management. Valuable time has been lost in recent months, while the company cannot afford that at all. 

For companies in the meat sector, the protein transition is quite a challenge. Dutch consumers now eat roughly 60% animal and 40% vegetable proteins, but that has to change. At least, that is what the government has agreed with the retail sector in a covenant to turn this ratio around within 10 years. A few years ago, many companies entered the meat substitute market, partly driven by great social optimism. The hype is now over and many companies are withdrawing. Van Loon Group is one of them. 'We have paid our dues in this', says CEO Robert van Ballegooijen.

Last week, De Heus announced the acquisition of Voeders Huys in Belgium. In doing so, the company is taking a different path than the two other Dutch compound feed giants. ForFarmers withdrew from Belgium in 2023 due to poor market prospects, while Agrifirm previously indicated that it would not rule out a departure either. De Heus' move may come as a surprise, but the Belgian compound feed market is in better shape than expected.

Germany’s love of potatoes is deeply rooted in tradition, but in the 21st century the crop is at the heart of a rapidly growing industry. As global demand for frozen and processed potato products increases, Germany has become a crucial hub in the European potato processing chain. While our eastern neighbours are not experiencing rapid growth, the sector is certainly not sitting still.