Royal Agrifirm Group and Hauptgenossenschaft Nord AG (HaGe) have reached agreement on the sale of Agrifirm’s compound feed plant in Drentwede to HaGe. The sale of the compound feed plant is the result of a strategic reorientation of Agrifirm’s animal feed strategy in Germany.

With the sale of the plant in Drentwede, Agrifirm anticipates the changing market conditions and the increased complexity of the German market. The plant in Drentwede primarily produces pig feeds, which are largely sold within the region. After the completion of the sale, HaGe will phase out the production of conventional feeds and increasingly focus on the production of organic feeds. The existing ongoing contracts with Drentwede plant’s customers will be adhered to and followed up on by Agrifirm.

“This step concludes the reorientation of our German compound feed strategy,” said Ronald van de Ven, managing director of Agrifirm Northwestern Europe. “With this reorientation, Agrifirm continues to actively serve the market in the German border region Weser Ems from its Dutch plants. Next to this, Agrifirm will continue here to sharply focus on the further expansion of its market share.”

As a result of the acquisition of the operations in Drentwede, HaGe intensifies its operations in the Northwestern German market, which represents a logical step in its strategy. “The inclusion of the Drentwede location in HaGe’s logistics concept completes the products and services provided by HaGe’s subsidiary BSL Betriebsmittel Service Logistik GmbH & Co. KG (BSL). It is also a development of the service portfolio for customers and a strengthening of existing business relationships,” according to HaGe’s executive directors Markus Grimm and Henrik Madsen. HaGe is investigating a joint market approach for the production and sale of organic feeds with its participating interest Gut Rosenkrantz Bio-Futter GmbH & Co. KG.

Agrifirm’s Works Council and employees have been informed of the sale of Drentwede. The acquisition of the compound feed plant in Drentwede is subject to approval by the competition authorities.