Lochem (The Netherlands) ̶ ForFarmers produced 10 million tonnes of total feed in the year 2018. Of this production volume 7 million tonnes was mixed feed.
“In 2018 we sold over 10 million tonnes of feed. We are the first European Total Feed company to do so. Our Total Feed approach enabled us in attracting new customers and achieving further growth among existing customers amid tough market conditions”, says Yoram Knoop, CEO ForFarmers, at the presentation of the 2018 results.
The year 2018 was a year with two faces, according to Knoop. “In terms of strategy we made progress this year by, amongst others, acquiring four companies. Consequently, we are now operational in five countries and have more sales opportunities in the expanding poultry sector”, Knoop explained. “Our portfolio segmentation across the various species is more in balance.” The production volumes of ForFarmers are more equally divided over the ruminant, swine and poultry sector.
Besides the positive developments ForFarmers was also confronted in the autumn of 2018 by the effects of the extraordinary warm and dry summer months, namely higher inbound logistics costs (low river levels) and more volatility in raw material prices. “We could not fully pass on to customers specifically in the Netherlands and Poland and which impacted our results.”
Taking into consideration the 2018 results and mindful of the current market circumstances, ForFarmers reduces the organisation’s cost base over the next two years by implementing extra group-wide efficiency plans. “This will involve reducing the number of mills and our headcount as a result of further standardisation and optimisation of our processes. At the same time we will continue to invest in our supply chain and in the introduction of innovative (digital) concepts for our customers.”
Despite the fact that due to a temporary unfavourable purchase position ForFarmers expects the 2019 first half year results to show a strong decline compared to the 2018 first half year results. “We have confidence in the outlook thereafter”, states Knoop.