Analysis Feed
Ongoing consolidation in the Dutch feed industry
The Dutch animal feed sector continues to consolidate rapidly. So far in 2024, three major takeover and merger processes have been completed or announced. Around this, there is also some smaller activity. Especially ABZ Diervoeding is active and merges with one cooperative after another, but ForFarmers also made a striking acquisition recently by taking over Van Triest Veevoeders. Other animal feed companies are expanding their activities, or consciously choosing to do nothing.
The consolidation of the animal feed sector in our country is not a recent development. The sometimes forcibly combined names of feed companies that have come together through mergers are a silent witness to this. Both cooperative and private companies participate in the acquisition game, but not everyone deems it useful to acquire turnover to compensate for the decline in the number of animals. From large to medium-sized, we summarize the recent developments.
ForFarmers makes a comeback
On the last Saturday of June, ForFarmers suddenly made a comeback by announcing the acquisition of Van Triest Veevoeders. In several ways, this is a remarkable transaction. Firstly, because ForFarmers has hardly been active in acquisitions in its own country in recent years. A few years ago, the previous management expressed a wild ambition to expand beyond Europe. The current management has not abandoned this ambition but is opting for a more cautious approach. What makes the acquisition interesting is that Van Triest is a major player in the distribution of by-products. This can enhance the social image of the publicly listed company. Investors seem to have regained some confidence, partly due to better results, as the share price has recently climbed back to just under €3, the highest level in over a year.
De Heus grows domestically and internationally ABZ Diervoeding leading in mergers Minor activity at AgruniekRijnvallei Fuite expanding rapidly, but not in feed Steady growth at FransenGerrits Voergroep Zuid growing autonomously
In terms of acquisitions, De Heus took a slower pace last year and this year, after acquiring various feed companies at home and abroad in the preceding years. The
ABZ Diervoeding clearly has a knack for merging. A month after finalizing the merger with cooperative De Valk Wekerom in April, a similar process with Vitelia was announced. This increases the animal feed production to 1.3 million tons per year. Among the medium-sized feed companies in our country, ABZ Diervoeding has distanced itself in recent years through numerous mergers and collaborations. "Although it may sound arrogant, I dare to say that we are good at merging feed companies," said director Marcel Roordink recently. According to him, the art lies in actually integrating the different companies while maintaining their identity in the region. The future will show whether he can unite the mix of feed cooperatives into a whole.
AgruniekRijnvallei may resemble ABZ in terms of size and culture, but it is noticeably quieter in terms of acquisitions. Recently, the Wageningen cooperative, which was formed by a merger, celebrated its tenth anniversary, although its history dates back much further. Acquiring turnover has not been necessary in recent years, as the cooperative has achieved impressive autonomous growth rates of almost 10% per year. However, the rapid autonomous growth came to an end in 2023. They are not completely idle, as last year they acquired Vissers mengvoeders, a biological player. A strategic collaboration with Vente Paardenvoeding from Nieuwerkerk aan den IJssel was recently announced.
Gebroeders Fuite from Genemuiden is a well-known name in the Dutch animal feed sector, but the family business chooses to grow in other areas. They do so in related sectors such as the meat and dairy industry. In 2023, the group made a major acquisition by acquiring Gosschalk, thereby entering the beef market. In the 2023 annual report, the management stated that the strategy is aimed at becoming less dependent on the animal feed market, but this activity remains important to them. After all, this is the company's history. They are also not sitting still in animal feed, as this year they will complete the construction of a new premix plant in Hasselt, in collaboration with the American company Cargill.
The South Netherlands-based FransenGerrits opts for a steady growth strategy. "It's eat or be eaten, and we try to eat," said director Huub Franssen three years ago when the company celebrated its 125th anniversary. Earlier this year, they took a minority stake in the animal feed company Koenis from Opmeer in North Holland. In the new setup, the companies will jointly build an animal feed factory. Two years ago, they acquired regional company Theewis. They are certainly affected by the shrinking livestock population (especially pigs), as evidenced by the lawsuit they have filed against the State for compensation, although it has not yielded anything yet. In addition to classic acquisitions of industry peers, they have also taken an interest in the startup Grassa, which can extract protein from grass. It seems they want to diversify their activities.
Like AgruniekRijnvallei, Voergroep Zuid has grown considerably in recent years, mainly through autonomous growth. The growth continued in 2023. While all large and medium-sized feed cooperatives had to report a (limited) loss, Voergroep Zuid reported an impressive 7% increase in sales last year. Part of this growth can be attributed to the acquisition of Van der Steijn, which was acquired at the end of 2022.
Wouter Baan