Cargill to partner with Dutch animal feed maker on new premix production facility in the Netherlands
The intended alliance “brings together Fuite Group’s world-class animal nutrition manufacturing capabilities with Cargill’s deep global expertise in animal nutrition.”
Cargill’s land lease for its production facility in Rotterdam will soon expire. The new facility, when operational, will replace a large part of the capacity of the current Rotterdam production plant, said a spokesperson.
That Rotterdam site has long served as a key production location for Provimi animal nutrition products and will continue to do so until the new facility is operational, said the US agribusiness giant, which acquired Provimi in 2011.
Fuite and Cargill are collaborating on the development of the new factory, with it expected to be fully online in 2024. At that juncture, Cargill said it will transition production from its current Rotterdam facility.
Cargill said it is engaging with its social partners as appropriate, including initiating a consultation process on the foreseen changes with its works council.
As to whether there will be any job losses arising from this agreement with Fuite, the Cargill spokesperson told us:
"Yes, we do anticipate job impact within our operations employees. These positions will cease to exist in September 2024, when the lease contract expires and production is planned to be completely transferred to other production locations. We are working closely with employees who are impacted and assisting them through this transition. Until then, business activities will continue as usual at the Cargill location in Rotterdam."
Fuite, founded in 1906 and located in Genemuiden in the Netherlands, produces feed for poultry, swine and ruminants and it has equine feed operations as well.
US premix facility
January this year saw Cargill open what is one of the world’s largest premix and animal nutrition facilities; it is located in Ohio, in the US.
The build represented a US$50m investment from the company. Construction on the new site, which is called Lewisburg West, got underway in November 2018.
The company estimated then that the US facility would produce 154,000 tons of non-medicated animal nutrition products and premix across its production lines each year, supporting both Cargill and Provimi branded animal nutrition premixes and products, along with additives and specialty and custom blends.