As part of its new strategy to focus on its core business, Finland-based Raisio is considering divestment of its animal feed business.
Raisio PLC is reported to be in discussion with “several operators” over the possible future divestment of its cattle and fish feed businesses.
While negotiations are ongoing, Raisio will continue to operate its feed businesses as usual. The firm says its grain trading business is not up for sale.
According to the firm’s website, the Raisio Group comprises two divisions. Accounting for 27 percent of the group’s net sales and 7.3 percent of EBIT in 2016 was its Raisioagro division, which includes feeds for cattle and fish, as well as farming supplies and grain trading.
The only fish feed producer in Finland, Raisio’s Baltic Blend fish feeds contain only fishmeal and fish oil from herring and sprat caught in the Baltic Sea and processed in Finland. Most of the company’s fish feeds go to rainbow trout. Raisioagro says that, in 2009, it was the first in the world to use phytase enzyme in feeds for large rainbow trout to reduce the phosphorus load of aquaculture, and it continues to focus on minimizing the environmental impacts of aquaculture.
The firm’s Maituri cattle feeds mainly target the dairy sector, and it launched new feeds for horses and deer in 2016.
Raisio’s leading division is Healthy Foods, which includes plant-based products such as internationally traded cholesterol-reducing Benecol and several local brands. The firm divested its confectionery business last year as part of its strategy to bring about future growth by streamlining its operations and expanding into new markets in Europe.
At the same time as announcing the possible divestment of its animal feed business, Raisio entered negotiations with employees with the view to reduce its workforce by around 30 people.
Founded in 1939, Raisio employs around 400 people and operates in 11 countries. It achieved net sales of EUR436 million (US$541 million) in 2016.