Doux poultry to remain under French control

A commercial court in France has decided in favor of a consortium of mainly French companies for the takeover of troubled poultry company, Doux.

Yurii Bukhanovskyi, Bigstock
Yurii Bukhanovskyi, Bigstock

A commercial court in Rennes, France, has accepted an offer for the takeover of Doux’s poultry business from a consortium of French companies including LDC, Terrena, Plouray Poultry, Yer Breizh and Saria, and Al Munajem of Saudi Arabia.

Following a process taking several months, the court decided in favor of the French-Saudi Arabian recovery plan because it offered better opportunities for the sustainability of the poultry sector in France than the alternative offer, which was made by MHP of Ukraine. Key aspects of the successful bid were the retention of the maximum number of jobs in the sector, and the long-term development of the French poultry industry.

According to the French agriculture ministry, the successful recovery plan for the business allows for 912 jobs to be maintained — including 811 without conditions — and the possibility of a further 400 positions in the departments of Brittany and Pays de la Loire.

Members of the consortium, LDC, Al Munajem, Terrena and Triskalia as well as the local regional council have taken steps to ensure the modernization of Doux’s business and its upstream activities — such as feed manufacture, breeding and hatching — in Brittany region. The French state and local authorities will support poultry farmers and other affected in other regions, such as Pays de la Loire.

Among the investments planned for the new business is a new processing plant in Châteaulin, in the region of Finistère.

Commenting on the recovery plan, Minister of Economy and Finance Bruno Le Maire recognized the exemplary and responsible attitudes of employees, farmers and the French poultry sector generally in reaching a solution for the business.

Minister of Agriculture and Food Stéphane Travert stressed that the recovery plan fits the framework for the future of the country’s poultry sector, as well as meeting consumer expectations.

At its peak, Doux was the leading poultry producer in Europe, according to the firm’s own website. Production from 500 breeders and 27 farms resulted in an annual output of 177 million hatched eggs. With a turnover of EUR517 million in 2015, 81 percent of production was exported to around 100 countries.

In recent years, Doux experienced business difficulties and upheavals, and spent some time in administration. With its heavy reliance on exports, the firm was hard hit when export subsidies on whole birds were ended.

In 2016, Doux was incorporated by French cooperative, Terrena, in its new poultry division, Galliance.

In order to avoid insolvency, Doux’s business was brought under the protection of the French court in March of this year, since when the authorities have been weighing up the offers made by the ultimately successful French-Saudi Arabian consortium, and a competitive bid from Ukraine-based agro-industrial group, MHP.

According to Maville, UK-based halal poultry business, Chesterfield Poultry, had made an offer to take over Doux’s plant in Chantonnay. However, the firm did not complete their bid, and the facility is scheduled for closure at the end of this month.

LDC and Terrena have offered the 64 poultry farmers affected by the closure the opportunity to join their producer groups.

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