The Dutch compound feed sector continues to consolidate at a rapid pace. So far, three major acquisitions and mergers have been completed or announced in 2024. There is also some small beer taking place around it. ABZ Diervoeding in particular is active and merges with one cooperative after another, but ForFarmers also recently made an eye-catching takeover by incorporating Van Triest Veevoeders. Other compound feed companies are expanding their activities or consciously choosing to do nothing. We list recent developments from large to medium-sized.
The fact that the compound feed sector in our country is consolidating is not something that happened yesterday or the day before. The sometimes forcibly joined names of feed companies created through mergers are a silent witness to this. Both cooperative and private companies are participating in the takeover game, but not everyone thinks it makes sense to purchase turnover and thus compensate for the decline in animal numbers. We list recent developments from large to medium-sized.
ForFarmers makes itself heard again
On the last Saturday of June, ForFarmers suddenly made itself heard again by announcing that Van Triest Veevoeders will become taken over. A striking transaction in several respects. First of all, because ForFarmers has hardly been active in acquisitions in its own country in recent years. A few years ago, the previous management expressed its wild ambition to expand outside Europe. The current management has not abandoned this ambition, but is opting for a more cautious approach. What is interesting about the takeover is that Van Triest is a big fish in the sale of residual flows. This can polish the social image of the listed company. Investors seem to have more confidence - partly due to better results - as the price has recently risen again to just under €3 and is therefore at the highest level in more than a year.
De Heus is growing at home and abroad
In terms of acquisitions, De Heus clearly slowed down last year and again this year, after various feed companies at home and abroad were incorporated in the previous years. Out the annual figures By 2023, it can be concluded that De Heus' portfolio will increasingly have global coverage, but the Dutch home market will remain important. The last relatively large acquisition in our own country was at the beginning of 2022 with the acquisition of Feijen. It is also striking that the poultry group Plukon, in which De Heus does not have a majority interest - but of which it is the largest shareholder - is growing rapidly on the European poultry meat market.
Agrifirm is mainly a spectator
Of the three major animal feed companies, Agrifirm is not participating in the takeover game. The cooperative seems to view the developments mainly as a spectator. They don't really have any explicit takeover ambitions either. "We do not consider purchasing turnover necessarily useful and is therefore not our first thought," CEO Dick Hordijk said two years ago. Due to poorer results, the company is now forced to reorganize. Takeovers and integrating companies are less suitable for this. Belgian activities that yield little return are also critically examined. The CEO does not rule out in advance leaving there, just like ForFarmers did last year.
ABZ Animal Nutrition is the absolute merger champion
ABZ Animal Nutrition has clearly acquired a taste for merging. A month after the merger with the De Valk Wekerom cooperative was finalized in April, a similar process with Vitelia was announced. This means compound feed production will grow to 1,3 million tons per year. ABZ Diervoeding has clearly distanced itself from the medium-sized feed companies in our country in recent years due to the many mergers and forms of collaboration. Although it may sound arrogant, I dare say that we are good at merging feed companies," director Marcel Roordink said recently. According to him, the trick is to actually integrate the various companies and at the same time maintain the identity in the region. The future will show whether he will accept the mix of feed cooperatives knows how to forge it into a whole.
Small beer at AgruniekRijnvallei
AgruniekRijnvallei may resemble ABZ in terms of size and culture, but is significantly quieter in terms of takeovers. The Wageningen cooperative, which was formed through a merger, recently celebrated its tenth anniversary, although its history naturally goes back much longer. Purchasing turnover has not been necessary in recent years, because the cooperative has been able to achieve impressive organic growth figures of sometimes almost 10% per year on its own. The rapid organic growth did come to an end in 2023. They are not sitting completely still, because last year an organic player was incorporated with Vissers compound feed. A strategic partnership with Vente Paardenvoeding from Nieuwerkerk aan den IJssel was recently announced.
Fuite expands quickly, but not into feed
Gebroeders Fuite from Genemuiden is a household name in the Dutch compound feed sector, but the family business chooses to grow in other areas. They do this in related sectors such as the meat and dairy sector. In 2023 the group did a major takeover by incorporating Gosschalk, with which they also became active in beef. In the 2023 annual report, the management indicated that the strategy is aimed at becoming less dependent on the compound feed market, but this does not make this activity any less important. After all, this is where the company's history lies. They are also not sitting idle on animal feed, because this year the construction of a new premix factory in Hasselt will be completed. In this they work together with the American Cargill.
Steady growth at FransenGerrits
FransenGerrits, oriented towards the South of the Netherlands, opts for a steady growth strategy. "It's eat or be eaten and we try to eat," said director Huub Franssen three years ago when the company celebrated its 125th anniversary. At the beginning of this year, a minority interest was taken in the Koenis cattle feed company from Opmeer in North Holland. The companies will jointly build a compound feed factory in the new construction. Two years ago, fellow countryman Theewis was recruited. They are certainly affected by the shrinking livestock population (particularly pigs), as evidenced by the lawsuit which they have started against the State for compensation, although this has not yielded anything for the time being. In addition to classic acquisitions of industry peers, they have also taken an interest in the startup Grassa, which can extract protein from grass. They seem to want to broaden their activities.
Feeding group South on autonomous power
Just like AgruniekRijnvallei, Voergroep Zuid has also grown quite fast in recent years and often on an autonomous basis. Moreover, growth will continue in 2023, where all large and medium-sized feed cooperatives will experience (limited) losses had to report, Voergroep Zuid was the only one to report a sales growth of no less than 7% last year. Part of this was due to the takeover of Van der Steijn, which was incorporated at the end of 2022.