This merger, operating under the name ForFarmers team agrar, will target multiple livestock species. The deal is still pending regulatory approval.
This new partnership marks the next phase in a long-standing collaboration between the two companies, who have already been working together through their joint venture, HaBeMa, a Hamburg-based enterprise that trades, stores, and processes raw materials and compound feed.
By expanding the business alliance, the companies are aiming to leverage their collective resources and expertise, improving their market reach and operational efficiency.
Synergies are expected in areas like back-office, procurement, innovation, and formulation, according to Ilse Niehof-Duivelshof, director and corporate affairs, ForFarmers.
The newly formed ForFarmers team agrar JV will merge the feed operations of both partners, bringing together 380 employees, eight production facilities, three terminals, and a dedicated fleet. However, it will exclude ForFarmers’ German activities under the brands ForFarmers Thesing, Pavo, Reudink, CirQlar, and Vleuten, as well as DLG Group’s non-feed agrar activities, organic feed, Vilofoss operations, and its construction and energy businesses in Germany.
Optimization of purchasing and logistics
As regards how the tie-up will impact the competitive landscape in the German feed market, Niehof-Duivelshof told us:
“It will significantly expand our geographical reach, enabling us to better serve our customers. By concentrating on two key areas—compound feed and transhipment/logistics—we’re driving greater efficiency and effectiveness. This focus on core competencies lays a strong foundation for sustainable growth.
“A major advantage of the joint venture is the optimization of purchasing and logistics in Germany, leveraging shared knowledge and expertise in procurement, formulation, and innovation. These improvements will enhance the joint venture’s operations, strengthen our supply chain, improve customer service reliability, and maintain our competitive edge.”
ForFarmers will fully consolidate the venture’s financial results; the joint venture’s advisory board will consist of equal representation from both ForFarmers and team agrar. The chair will rotate between the two parties, ensuring a balanced governance structure as the venture charts its future course.
Expansion drive
In July, ForFarmers agreed to acquire Van Triest Veevoeders, a Dutch specialist in feed co-products, pending regulatory approval. The transaction, for an undisclosed amount, is expected to close in the second half of 2024.
Founded in 1959 and based in Hoogeveen, Van Triest specializes in trading residual flows and co-products from breweries and the dairy, sugar, bioethanol, and potato processing industries, as well as managing on-farm roughages. It supplies co-products like brewer’s grains, potato pulp, silage maize, and wet beet pulp to 3,500 farm customers, primarily in the Netherlands, but also in Belgium and Germany.