ForFarmers expands feed operations in Poland

By Jane Byrne

- Last updated on GMT

© GettyImages/simarik
© GettyImages/simarik

Related tags ForFarmers Poland

ForFarmers/Tasomix is to acquire Polish feed producer, Piast Pasze. The financial details of the transaction have not been disclosed.

The deal will see the production volumes of ForFarmers/Tasomix increase by 410,000 tons, and it will strengthen the position of that joint venture in the Polish broiler sector. 

Dutch compound feed group, ForFarmers, first entered the Polish market in 2018, taking a 60% stake in Tasomix. With a good foothold in the poultry feed sector, that business is increasingly focused on growing its position in the ruminant and pig feed arenas.

Piast has four feed mills, with production locations in Lewkowiec and in Plonsk, in central Poland, as well as in Golancz, to the northeast of Lewkowiec, and Olesno in the north of the country. It has poultry, pig, and ruminant feed assets along with 220 employees working across management, sales, and production.

The acquisition is subject to review by Poland’s competition authority. Closing of the deal is expected to take place in the fourth quarter of 2023.

Asked whether any mills will be sold off as a result of this merger, Caroline Vogelzang, investor relations director, ForFarmers, told us the company was looking into the full range of potential synergetic possibilities available to it arising from the deal, such as reallocating production to enable ‘dedicated' species mills for greater efficiencies. "The focus is on growing the business."

Piast has novel poultry feed technologies that could also benefit ForFarmers/Tasomix’s operations, supporting its sustainability strategy. These include a patented process method using undried corn to save on energy, along with a soy extrusion technique, said the ForFarmers spokesperson.

Divestment of Belgian feed assets

ForFarmers has also been divesting assets this year. April saw the company sell its compound feed operations in Belgium​ to agricultural and horticultural business, Arvesta.

The sale of co-products, the Belgium activities of organic feed producer, Reudink, and horse feed producer, Pavo, were not included in that deal.

ForFarmers will receive €25m (US$27.2m) from Arvesta for its Belgium feed assets. It will be paid in cash at the closing of the transaction, which is subject to approval by the competition authority in Belgium.

The deal is set to be finalized in the second half of 2023.

In terms of reasons for the divestment, ForFarmers said the agricultural market in Belgium has been challenged in recent years, due partly to the outbreak of African Swine Fever (ASF) a few years back, and also because of the growing pressure on the sector to reduce its environmental footprint. It also noted the growing feed mill consolidation trend due to the contracting swine market. 

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