ForFarmers divests arable branch to CZAV

For Farmers has sold its arable farming business to CZAV. The acquisition is worth €5,65 million and is expected to be officially ratified on February 5, 2018. The company announced this on Friday, December 8.

According to ForFarmers, arable farming does not fit in with the feed manufacturer's core tasks. With the sale of the arable branch, ForFarmers will lose an annual turnover of approximately €13 million. The storage location is also included in the deal.

On the other hand, ForFarmers will remain active in arable farming activities related to animal feed, such as fertilizers for seed and crop protection for roughage cultivation.

Strategy for 2020
According to COO Jan Potijk, animal feed is ForFarmers' core business. The divestment of the arable farming activities fits in with the Total Feed approach, which the Lochem cooperative has described in its strategy for 2020.

For CZAV, the acquisition is an addition to the knowledge and network that the company already has in-house, says general manager Antoon van Vugt.

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

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