De Heus acquires Neovia Indonesia feed mills

De Heus acquires Neovia Indonesia feed mills

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2 mills produce feed for poultry, aqua and swine

De Heus Animal Nutrition has acquired the compound feed operations of Neovia Indonesia from ADM.

The deal includes two feed mills located in West Java and East Java, PT Welgro Feedmill and PT Wirifa Sakti, which had total sales volume of 125,000 metric tons in 2019. The mills produce feed for poultry, aqua and swine.

De Heus said the acquisition is “an important step in its ambition to become a leading player in the Indonesian animal feed market.”

“This acquisition will accelerate our Indonesian growth strategy,” said Gabor Fluit, business group director of De Heus Asia. “It gives us an excellent opportunity to expand our position in key livestock and aqua farming areas, close to our existing and potential new customers.”

In a press release, De Heus said the estimated size of the animal feed market in Indonesia will increase from 19 million metric tons in 2019 to 22 million metric tons by 2022. Indonesia’s current population is 273 million, making it the largest consumer market for proteins in Southeast Asia. The demand for animal proteins will continue to increase over the coming years due to the growth in disposable income and population as well as the change in consumer preferences.

Kay De Vreese, president of De Heus Indonesia, said employees of the feed mill will retain their jobs in the acquisition.

“We are very pleased to welcome the Welgro and Wirifa employees as new colleagues to De Heus in Indonesia,” he said. “We have come to know Welgro and Wirifa as dynamic  companies with a focus on continuous improvement, which is an excellent fit with De Heus’ company culture.”

According to Feed Strategy’s Top Feed Companies database, Netherlands-based De Heus produced 8 million metric tons of feed at its 66 feed mills worldwide. Neovia, which was acquired by Archer Daniels Midland in February 2019, operates in 26 countries and produced 2.6 million metric tons of feed in 2018.