“Freshgrass Holdings and Fane Valley Co-operative Society today announced that they have reached an agreement to become 50/50 joint owners of Drummonds,” read a statement released yesterday [November 25] from the Moira, Northern Ireland-based agribusiness group.
The deal is subject to the approval of the Ireland’s regulatory agency, the Competition and Consumer Protection Commission.
Drummonds produces ruminant - beef, dairy, and sheep - feeds at its Bord Bia and Universal Feed Assurance Scheme-accredited feed mill in Navan.
Its core activity is the purchase and marketing of a wide range of grain types including feed grains, milling oats and wheat, malting barley, oilseeds and pulses. In volume terms, Drummonds says it is among the biggest purchasers of native grain direct from Irish farmers.
Strategic projects on the cards
The key objectives for both parties in the partnership will be to enhance the competitive advantages of the Irish business through a series of new strategic initiatives.
“The primary driver to creating this JV is solely to utilize the strengths and business acumen of both partners to deliver an even more successful Drummonds’ proposition, especially given the increasing focus on the environment and sustainability,” said Liam Woulfe, chairman of Drummonds.
Trevor Lockhart, CEO, Fane Valley Co-operative Society, said it is an "exceptional business partnership" and that there are "great synergies in the vision, ambition and culture" of both partners.
The deal adds to Fane Valley's footprint in the Republic of Ireland. In 2019, it acquired the Donegal-based Robert Smyth & Sons Limited, trading as Smyths Daleside Animal Feeds, which supplies branded and non-branded feed products for the ruminant and monogastric sectors.
A supplier of dairy, beef, sheep, pig and poultry feeds, Fane Valley has annual feed production capacity in excess of 300,000 tons, with manufacturing sites in Newry and Omagh.