Last week, De Heus announced the acquisition of Voeders Huys in Belgium. In doing so, the company is taking a different path than the two other Dutch compound feed giants. ForFarmers withdrew from Belgium in 2023 due to poor market prospects, while Agrifirm previously indicated that it would not rule out a departure either. De Heus' move may come as a surprise, but the Belgian compound feed market is in better shape than expected.
After several years of sharp decline, the Belgian compound feed production in 2024 a remarkable growth of 3,5%. Total production amounted to 6,7 million tons, compared to 6,4 million tons in 2023. The production of pig feed in particular increased by 4% and at around 50% still occupies the largest share of total compound feed production. Poultry feed (+2%) and cattle feed (+1%) also contributed to the growth.
Recovery in the livestock population
The increasing feed production is linked to a recovery in the Belgian livestock sector. According to figures from STATBEL, animal production increased significantly in 2024. The number of pig slaughters increased slightly to 9,4 million, after years of decline due to factors including African swine fever and poor market conditions. The slaughter weight also increased, resulting in higher feed sales. The number of poultry slaughters even reached its highest level since 310,5, at 2008 million, an increase of 3%. Cattle slaughters increased by 5% to 809.000, the second year in a row of clear growth.
More cattle means more feed
The growth in the number of animals naturally leads to a higher demand for compound feed. In addition to the domestic production of compound feed, 2024 million tons of feed were imported in 1,7, of which 73% came from the Netherlands. A substantial part of this probably comes from De Heus. The company is already active in Belgium via a sales office, but did the production in the Netherlands.
The acquisition enables De Heus to shorten its logistical chain in Belgium and France and to improve efficiency. Voeders Huys has a production capacity of approximately 250.000 tonnes per year and is therefore a significant player in the Belgian market. The company has production locations in Bruges and Northern France.
The Belgian compound feed market is highly fragmented. In 2023, the Belgian Feed Association (BFA) had over 130 members. By comparison, in the Netherlands there were just over 80, who together produced 11 million tonnes of compound feed. This fragmentation offers room for consolidation and collaborations to improve efficiency, something that De Heus may be responding to with this acquisition.
Well timed
Where other Dutch players are withdrawing, De Heus is consciously opting for expansion. With the recent growth figures in Belgian livestock farming and feed production, this step is probably strategically well-timed. The Belgian market is not without challenges – including in the area of environmental legislation – but also offers opportunities at the moment. De Heus' investment is therefore less surprising than it might seem at first glance.