The merged businesses would be called ABZ De Samen.
The members of both cooperatives will be asked to vote on the amalgamation proposal at the end of this month.
The idea of the merger is the extended reach the combined businesses would have.
“ABZ Diervoeding is situated in the north, east, middle and south of the Netherlands, while De Samenwerking is situated in the west. The new company would have excellent coverage of the whole country,” Marcel Roordink, general manager, ABZ Diervoeding, told FeedNavigator.
Livestock farming today, noted both feed cooperatives, is faced with multiple challenges. The increase in scale among customers, the consolidation trend among feed producers, alongside recent and future legislative changes and rising costs were factors that prompted the decision to align the two entities.
“A full merger will bring more advantages in terms of scale, which will be appreciated by the members of both cooperatives,” added Roordink.
The cooperatives already have a history of collaboration, working together in the area of raw materials procurement, he said.
Moreover, the cultures of both business are similar and the two firms complement and strengthen each other; the merged businesses would see joint sales of 700,000 tons of compound feed, according to a release on the proposal.
The parties also outlined how an amalgamation would help to control costs and further improve and expand the quality of both cooperatives' products and consultation services, while helping the companies deal with the ongoing market volatility.
ABZ Diervoeding is headquartered in Nijkerk, with production locations in Eindhoven, Stroobos, Markelo and Leusden; it specializes in cattle, poultry and pig feed, while De Samenwerking has a manufacturing facility in Haastrecht, which is undergoing renovation to become a specialized cattle feed factory.