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ForFarmers enters into merger with feed business 2Agriculture

Alistair DriverBy Alistair DriverJuly 6, 20223 Mins Read
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Leading nutrition business ForFarmers UK has entered into an agreement with 2Agriculture to merge their businesses into a joint venture to serve a wider customer base.

ForFarmers UK, a subsidiary of the Dutch-based ForFarmers NV,  sells approximately 2 million tonnes of compound feed volumes annually across various species, produced in 14 mills. It has approximately 900 employees.

2Agriculture supplies approximately 1.2 million tonnes of feed annually to poultry farmers mostly into the integrated market, but also to independent customers. It employs 250 employees and operates five mills located in Scotland, East Anglia and North Wales and has an extrusion plant in Cambridgeshire.

ForFarmers said the joint venture will have a balanced feed portfolio across species, with an expected combined sales volume of more than 3 million tonnes of compound feed per year.

“The joint venture will bring together 2Agriculture’s expertise in the promising poultry feed sector with ForFarmers’ capabilities in research and development as well as in formulation, particularly in ruminant and pig feeds. In addition, the combined broad geographic coverage will provide synergy opportunities, particularly in production and logistics,” the company said.

“Similarly, the joint venture will generate further benefits for its customers by being able to combine the sourcing of raw materials. Finally, the joint venture will invest in expansion of the supply chain, enabling improved transparency around sustainability and the origin and quality of food.

Steven Read, Managing Director of ForFarmers UK and nominated Managing Director of the intended joint venture: “We are excited to announce the merger with 2Agriculture, which will bring benefits to customers and supply chains in all sectors. Together, we can meet the changing requirements from customers and society through our strength in innovation and feed concepts.

“At the same time, we have the opportunity to create further value for our customers across all species by constantly driving improvements and optimising our service in the most efficient manner. We look forward to working with the colleagues at 2Agriculture to make this happen”.

Kevin Sketcher, Managing Director of 2Agriculture and nominated Board member of the intended joint venture: “We look forward to joining forces with ForFarmers, a company that is also very focused on delivering quality feed and good advice to customers to enable them to realise sustainable and enhanced returns on farm.

We see the anticipated joint venture as a good strategic step forward for both parties. We will be able to give our combined customer base across all species value for money by providing them with sustainable high quality feed. Moreover, we will be well positioned to support the agricultural sector offering food security to UK consumers. ”

The merger agreement is a non-cash transaction. The share split will be 50.1% for ForFarmers UK and 49.9% for 2Agriculture. ForFarmers will consolidate 2Agriculture fully into its financial results.

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Alistair Driver

Editor Pig World, group editor Agronomist and Arable Farmer and Farm Contractor. National Pig Association webmaster. Former political editor at Farmers Guardian. Occasional media pundit. Brought up on a Leicestershire farm. Works from a shed in his Oxfordshire garden.

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