In alignment with its strategic initiatives, ForFarmers B.V. announced the transfer its export business for non-core countries to Nutreco, effective January, 1 2015.
“Following the recent announcement regarding the renewal of the existing strategic partnership between ForFarmers and Nutreco, we have been reviewing the combined strengths of each business and have concluded that our international markets for young animal feed are best served in the longer term by utilizing the strengths of Nutreco,” explains Yoram Knoop, ForFarmers CEO. “Our distributors and customers should see very little change as a result of the transfer, other than in time production is likely to be transferred to specialist production plants in Europe where the local needs for each country may be better served.”
This portion of ForFarmers’ business is predominantly focused on young animal feed exported from the UK with a sales turnover of €8.5 million. According to the company, the transfer will not impact ForFarmers’ young animal feed business in its four key countries of operation, specifically the Netherlands, UK, Germany and Belgium, “where young animal feed remains a key part of the Total Feed Business offering.”
“Nutreco is committed to the development and innovation of young animal feed and is investing significantly in resources to support this activity,” Knoop says. “Our teams will of course continue to work very closely with the Nutreco team.”
However, these changes will affect a number of BOCM PAULS International staff.
ForFarmers’ international export business started in 1994 and involves relationships with key distributors and customers in a number of European countries. According to the feed producer, it will aim to maintain these relationships as the business moves forward, but notes that a number of BOCM PAULS international brands will be licensed to Nutreco for a period of time.
To date, the Netherlands account for the bulk of ForFarmers’
sales (41 percent); Great Britain is its second largest market (32 percent). Germany
(13 percent) and Belgium (8 percent) also generate a sizable portion of its business.
