Cranswick has agreed to buy a feed mill in East Yorkshire from AB Agri to further reinforce its self-sufficiency in pig feed.
The two companies have signed an agreement to transfer ownership of the Fridaythorpe feed mill, located near Driffield, with completion of the deal expected in the second half of September.
The Fridaythorpe mill, which manufactures pig and poultry feed, has been an integral part of ABN’s estate since 1998, with a strong team that the company said has been instrumental in the success of its northern operation.
A Cranswick spokesperson said: “Cranswick has invested heavily in pig and poultry production capability over the past 10 years and already operates three animal feed mills in Norfolk, Suffolk and Lincolnshire.
“The acquisition of the Fridaythorpe mill provides further capability in the production of pig feed aligned to Cranswick’s commitment to invest in and develop its British farming operations.”
As it often does with its acquisitions, Cranswick intends to invest in and continue developing the mill. It is anticipated that all current employees will transfer to Cranswick as part of the change in ownership.
‘Positive move’
ABN, part of AB Agri, described the prospective sale of the mill as a ‘positive move for all parties’ that will help it to ‘secure a long-term relationship with a significant and growing UK integrator’.
“While I am sad to be handing over such a highly valued team, I am confident this agreement will strengthen Fridaythorpe’s production capabilities and solidify a long-term partnership,” said Dino Kiriakopoulos, AB Agri Mono UK & IE managing director.
“More importantly, it ensures consistent and reliable feed production for customers in the north moving forward.”
Employees at the mill are currently in a period of consultation and ABN said it was committed to supporting everyone affected.
ABN has made it clear it has an ambition to be the ‘third-party feed supplier of choice’ to the key UK monogastric integrators.
In a communication to ABN staff announcing the deal, Mr Kiriakopoulos acknowledged that ‘difficult decisions remain as we navigate a challenging market, to determine how we can operate most effectively to meet the requirements of our key partners’. “To deliver our commercial strategy, we must focus on positioning ourselves as the preferred third-party feed partner to key monogastric integrators in the UK market,” he said.
As part of this strategy, it has grown its customer partnership with Cranswick, doubling its volumes with the company in the past five years.