News and analysis on the global poultry
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on June 29, 2010

Danish feed groups merge

Signals industry consolidation

Two feed manufacturing organizations in Denmark plan to merge. Members of Jutland co-operative Nordjysk Andel voted during a special general meeting to merge with Danish Agro. The merger brings together businesses with about 700 employees and a turnover of $6.1 billion Danish krone. Their combined market share is estimated at between 30% and 32%.

Danish Agro chairman Jørgen H. Mikkelsen said the enterprises have already played a joint role in the consolidation of the Danish feed market, most recently by acquiring assets of Arhus-based regional mill operator Aarhusegnens Andel as well as participating in the takeovers of feed companies Hedegaard A/S and Aller Mølle A/S.

Both teams agree that the structural consolidation of Danish agriculture will continue and intensify. Newest predictions call for a fall in the number of full-time operations from over 15,000 in 2006 to around 9,100 in 2015. That will mean the national feed industry must face further adjustments.

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