August 22, 2013
Nutreco''s joint venture company - Dutch Feed established in Ukraine
Press release
Animal nutrition and fish feed company, Nutrecohas signed an agreement to enter a joint venture with its existing partners with extensive sales and distribution network in Ukrainethe second largest animal feed market in Eastern Europe.
Nutreco will take an initial one-third share in the joint-venture company, Dutch Feed, allowing its premix & feed specialties business, Trouw Nutrition International, a market leadership position in the growing market.
Nutreco has been operating a sales office in Ukraine since 2006. Since 2011, it has been operating a feed specialties plant owned by Dutch Feed which will be incorporated in the joint venture.
Ukraine is the second largest animal feed market in Eastern Europe after Russia. Its feed market has been growing strongly and is expected to continue to grow by 5% - 10% per year. Ukraine is a leading cereal producer and the country is expected to become an important meat supplier to Europe.
Dutch Feed had
revenue of approximately €15 million (US$20.02 million) in 2012. The joint venture company has one feed specialties plant in the Vinnytsya region of Ukraine. It produced around 20,000 tonnes of concentrates and young animal feed in 2012 and is expected to increase its production to 30,000 tonnes in 2013.
Closing of the transaction is subject to gaining regulatory approval from the Ukrainian competition authority.
Nutreco''s ''Ambition 2016, aimed to result in an EBITA of € 400 million (US$533.94 million) by 2016 will be realised by focusing on a higher added value portfolio of nutritional solutions such as premixes, feed specialties and fish feed, and by expanding into the growth geographies of Latin America, Russia, Asia and Africa, which will see the largest increases in both production and consumption of animal protein food products.