ForFarmers the Netherlands has signed an agreement to sell its arable activities to CZAV. This concerns non-livestock feed-related products (e.g. fertilizers, crop protection products and seeds) that ForFarmers supplies to Dutch arable farmers.
CZAV will take over these activities and the associated storage facility on February 5, 2018. It involves annual revenues of EUR13 million (US$15 million). ForFarmers will receive EUR5.65 million on the date of the handover on completion of the agreement.
The sale of these (non-livestock feed related) arable activities is fully in line with ForFarmers’ strategy that focuses specifically on the total feed approach for livestock farmers. ForFarmers will continue to sell seeds, fertilizers and crop protection products to its customers relating to forage production on farms. These forage-related products represent an important part of the total feed approach and are therefore not included within this sale.
CZAV is an innovative Dutch cooperative with a strong position in arable products specifically in the south of the Netherlands. The company targets the arable farming sector with its wide range of products. For this reason, ForFarmers considers CZAV as the ideal company to take over its arable activities and growing them even further. The activities will be placed in a new entity, that is still to be set up, called Agriant BV located in Emmen. As a consequence of the sale, the 10 directly affected ForFarmers Netherlands employees will become employees of Agriant BV.
“Thanks to CZAV’s wide product range and capacity for innovation, Agriant BV will enable the acquired arable activities of ForFarmers to grow even further. This is essential for our arable farming customers and the employees affected by the sale. In order to continue providing the arable farming customers with appropriate products and advice, both focus and innovation are necessary. This can be better delivered in the new structure. This agreement enables us, ForFarmers the Netherlands, to focus completely on strengthening the total feed approach. This encompasses high-quality products combined with specialist advice and tools, all to enable our customers to deliver better returns, healthier livestock and greater efficiency on farm. This is ForFarmers’ core activity,” said Jan Potijk, chief operating officer and director ForFarmers the Netherlands.
“Together with its partner companies, CZAV has a leading position as supplier of knowledge and products in the most important sectors of the Dutch agricultural industry. Acquiring the arable activities from ForFarmers increases our coverage in the Netherlands and gives us a larger network at the same time. This fits our strategy of leading in the agricultural sector by providing innovative knowledge and products,” said Antoon van Vugt, managing director at CZAV.
