ForFarmers UK merges with British poultry feed company

The British branch of ForFarmers is to merge with 2Agriculture, a feed company that focuses exclusively on the poultry sector. Within ForFarmers there is a lot of enthusiasm about this step.

2Agriculture is a feed producer for the poultry sector and mainly supplies integrations in the United Kingdom. The company produces 1,2 million tons annually in a total of five factories and has about 250 employees. After the merger, a combined volume of more than 3,5 million tons will be created. The listed feed company in the United Kingdom is relatively small in poultry compared to pigs and cattle, but that is now changing. 

Based on equality
The merger is done on the basis of equality. 50,1% of the shares go to ForFarmers. In this way the results can be integrated into those of the whole group. Enthusiasm about this construction can be tasted within ForFarmers. Spokesperson Caroline Vogelzang speaks of a good step for further exposure and expected synergy benefits in the supply chain. It is interesting for 2Agriculture to spread the activities to cattle and pigs, the company speaks of a good step forward.

In recent years, ForFarmers had a difficult time on the British market due to declining volumes and stripped margins. The merger with 2Agriculture gives ForFarmers access again to a growth market, which is the poultry sector. The British are 95% self-sufficient in poultry. After approval from the authorities, the merged company will continue under the name ForFarmers, the spokesperson said. The financial details of the deal have not been released. 

Chris Deen getting started
The merger of the UK operations with 2Agriculture was announced on the day Chris Dane has taken over as CEO. He comes over from Aviko. Some time after taking office, ForFarmers will present an update of the strategy that was announced two years ago, but was subsequently put on hold due to disappointing performance. 

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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