ForFarmers Netherlands announces to transfer the feed production from its Helmond location to other ForFarmers mills in Almelo, Deventer, the Netherlands, and Rees, Germany, in the fourth quarter of 2019.
In particular, ruminant feed and horse feed are being produced in the Helmond mill. The production of horse feed (PAVO) will be taken over by the production location Almelo at the beginning of the fourth quarter of 2019. The production of ruminant feed will be transferred to Deventer and Rees. In addition, part of the production will be transferred to a third party under a toll milling agreement. Capacity of the mill in Almelo is currently being enlarged to take over the horse feed production. Capacity of the mill in Rees is also being enhanced and investments have been made in a new bulk loading system based on contrasets to enable a more flexible use of the mill.
The decision to end the production in Helmond is in line with the efficiency plans, announced this year, to save EUR10 million (US$11.2 million) in costs (2021 compared to 2018) by rationalizing the supply chain, among other things. Wherever possible, production will be combined in existing mills. This entails that some mills will be enhanced and/or modernized. No decision has as yet been taken as to how the mill in Helmond will be utilized in the future, for instance for servicing special segments. As an example, an existing mill in Deventer was reopened to be fully dedicated to meeting the growing demand for (the production of) non-GMO feeds for ruminants and goats.
For the 31 employees in Helmond, the transfer of the production activities entails that production activities in Helmond will cease. ForFarmers is investigating the possibilities to offer these employees work at a different location.
According to WATTAgNet.com, ForFarmers N.V. is Europe's largest feed producer. ForFarmers produces and supplies regular and organic animal feed and commodities (such as arable and grassland management products) mainly in the cattle, pig, poultry and arable and contracting sectors. A network of subsidiaries and partnerships rounds out operations that include 42 production facilities in the Netherlands, Belgium, U.K. and Germany. In addition to compound feeds, ForFarmers' feed division also includes minerals, additives, fertilizers and seeds.