With the acquisition of the Belgian Nutriprof, the market for mineral and vitamin premixes in Dutch livestock farming is appealing to the Danish DLG subsidiary Vilofoss. What kind of company is this and what are its ambitions?
Vilofoss produces 400.000 tons of premixes and minerals per year, with operations in 17 countries worldwide and has an annual turnover of approximately €400 million. The company can be seen as an international competitor of Trouw Nutrition, DSM and Provimi/Cargill in the premix market.
Earlier this year, Vilofoss also made an acquisition in Spain, focused on pig farming, and entered into a joint venture with the French ARC. Also with the main aim of better serving the French pig farming industry.
Origin Nutriprof
The Belgian Nutriprof originally specialized in lick buckets for cattle and also supplies minerals, liquid supplements and a broad spectrum of specialties for cattle farming, in addition to compound feed itself. Pig and poultry farming has not yet been a sales market. Approximately 10.000 tons of product are produced per year in Villers-le-Bouillet, which is located between Namur and Liège (see photo). Partly for the Belgian market, but also largely for German and Dutch customers.
Customers are mainly livestock feed dealers and compound feed companies. Nutriprof is a spin-off from the Belgian division of Provimi. When the American animal feed giant Cargill took over Provimi in 2011, the Belgian division was sold a few years later to the Dutchman Boudewijn Morelissen, who until then worked at Provimi in Rotterdam.
Takeover opens doors
"Just like Spain, Belgium is a brand new market that offers interesting export prospects in Europe. The acquisition opens up new markets for us and complements Vilofoss' portfolio. It is a really good match, with both parties able to get a lot out of the collaboration" , says general manager Jacob Holm of Vilofoss.
"Nutriprof is a solid company with stable developments and profits. The owner of Nutriprof is a well-known name in the international vitamin and mineral industry. Morelissen has in-depth knowledge of the industry from large, well-known companies such as Cargill, Provimi and DSM."
More strength and know-how
By joining the internationally leading Vilofoss, Nutriprof strengthens its strength and has access to a network of production facilities and know-how, Morelissen explains about Nutriprof's motivations.
"The large price fluctuations of vitamins in recent years have also played a role. Nutriprof is just not large enough to be able to bear such price risks independently." According to Morelissen, the price of vitamin A fluctuated between €30 and €400 per kilo in a few years. The price of vitamin E also varied in a short time from €5 to €20 per kilo.
Morelissen does not hide the fact that the Dutch market now beckons for Vilofoss, although at the same time there is also the realization that the livestock here is shrinking, while fierce competition is putting pressure on margins in Western European livestock farming.