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Solarec and dairy trader Geris strengthen ties
Belgian dairy company Solarec and dairy trader Geris want to strengthen their collaboration. The plan is also for Solarec to become a co-shareholder in Geris Food Group. Both parties see advantages in this, in terms of security of supply, availability of product, access to markets and risk management.
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Both companies have asked the ACM for permission. If approved, participation will start immediately.
For Geris, the partnership means more certainty about product availability in tight times and a continuous supply,
which guarantees stability and quality. In addition, Geris benefits from better data, directly from the source.
"By strategically working together with Solarec, we want to accelerate our growth ambitions. We are just as ambitious as our new partner and see many opportunities in the near future to further integrate forward in the chain. We are pleased to have this large and ambitious partner at our side," says Ziad Geris, CEO of Geris
Food Group.
Risk management
The advantages for Solarec lie in the strengthening of its position on the European market, not only in terms of optimisation of transport and storage, but also in terms of joint risk management, in particular through derivatives trading and arbitrage, a speciality of Geris. Louis Ska, CEO of Solarec: "This strategic partnership is fully in line with our long-term growth vision and our desire to strengthen our positions, to maintain our competitiveness and to enable better valuation, in particular due to the strong
volatility of the markets. The synergy generated by this agreement will benefit both companies and bring about numerous optimizations."
Solarec
Solarec was founded in 1965 and is owned by 4 cooperatives, the most important of which is Laiterie des Ardennes. This is the main shareholder. Solarec processes around 1,6 billion litres of milk annually into milk powder, butter, UHT milk and mozzarella. This is done in factories in Recognoe and Badour. LDA has almost 2000 members and achieved a turnover of over €860 million last year.
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Geris is a trading house from Nederweert, founded in 2009. The company offers end processors who supply the hospitality industry, food service and retail, but also cooperatives and manufacturers of dairy products reliable and direct access to global markets and products. There is a clear focus on cheese and butter. Every year, more than
100.000 tons of cheese and butter traded, of which more than 80% is sold within Europe. Geris does this with 75 employees spread over 4 locations in Nederweert, Eindhoven and Monticelli d'Ongina (Italy). Geris achieved a turnover of almost €370 million last year.