ForFarmers and Team Agrar, part of the DLG Group, have agreed to combine their feed operations in Germany. The joint venture, which will continue under the name ForFarmers Team Agrar, has a comprehensive feed portfolio across various species. This agreement is subject to applicable regulatory approvals from the relevant authorities.
ForFarmers and Team Agrar have been working together for a long time in Germany via their joint venture HaBeMa, a company active in trading, storage and transshipment of raw materials and compound feed production in Hamburg, Germany. The agreement to expand this joint venture is therefore a logical next step.
Profiles of the partners
ForFarmers is a European company that offers feed solutions to the livestock farming industry. With its mission, “For the Future of Farming,” ForFarmers is committed to a future-proof farming business and making the agricultural sector more sustainable with knowledge, advice, support and products on farm. ForFarmers’ feed activities in Germany concerns a broad portfolio of feed products for all species.
Team Agrar provides services and products in all sectors. In addition to the production of compound feed it includes grain collection and trading, the supply of seeds, fertilizers and plant protection products, as well as special agricultural products.
Team Agrar is part of the DLG Group, a company with comprehensive activities in food, energy and housing. DLG Group has the strategic ambition of contributing to a more sustainable future and being the preferred partner of farmers.
Joint venture structure
The 50-50 joint venture, which will continue under the name ForFarmers Team Agrar, entails ForFarmers’ and Team Agrar’s feed activities and employees in the relevant legal entities in Germany:
- The joint venture concerns ForFarmers’ feed activities in Germany with approximately 250 employees and Team Agrar’s feed activities in Germany that has approximately 130 employees. It involves eight feed production sites, three terminals and the vehicle fleet. The HaBeMa joint venture, which has 130 employees, is also part of the joint venture.
- Out of scope of the joint venture agreement are the activities in Germany of the ForFarmers’ brands ForFarmers Thesing, Pavo, Reudink, CirQlar and Vleuten as well as DLG Group’s non-feed Agrar activities, organic feed, Vilofoss activities, construction and energy activities in Germany.
- The management of the new joint venture will have representatives of ForFarmers, team SE and HaBeMa, and Ernst Friedlaender will be the managing director.
- ForFarmers will fully consolidate the joint venture (including HaBeMa, which up to now was recognized as share of profit of equity-accounted investees) in its financial results. The joint venture will have an advisory board with equal membership from both shareholders. The first chair will be appointed by Team Agrar. Going forward, the shareholders will alternately appoint the chairman on regular intervals.
Strategic consideration
The joint venture is in line with the strategic ambition of both partners: to better serve the German market, opening up new growth opportunities and further leverage each other’s strengths with the aim to enhance profitability. The joint venture will have a better geographical coverage and can therefore serve its customers better and more efficient. Furthermore, sharing of knowledge and expertise in the areas of procurement, formulation and innovation will be highly beneficial to the joint venture and its customers.
