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The curtain falls for British factory ForFarmers
ForFarmers announced on Tuesday 19 February that it will close a compound feed factory in the United Kingdom. The feed company reports that the decision has been taken to cut costs.
The ForFarmers compound feed factory in Blandford produces compound feed, both organic and conventional. Production will be taken over by 2, according to the feed company, more modern factories elsewhere in the UK. By relocating production, ForFarmers expects to be able to cut costs considerably.
The ambition in 2017 was to save around £2020 million by 5, but this plan has been delayed due to a shortage of drivers in the UK. This also resulted in a significant increase in transport costs. No new target has been announced yet.
30 employees
The doors of the factory in Blandford will only close definitively in the second quarter of 2019. It is not yet known what will happen to the 30 employees. A spokesperson for ForFarmers says that it is not certain that they will end up on the street.
The share price of ForFarmers is not influenced by this announcement. The price fell by only 19% on Tuesday 3 February, 0,12 hours after the opening of the stock exchange. The share of ForFarmers, listed on Euronext, is €8,31. The company's stock has been stable since the start of 2019, while a declining trend took place before that.
Tim Roetman
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