ForFarmers and team agrar join forces in the animal feed sector in Germany

Press release

Lochem, 4^and from September 2024

ForFarmers and team agrar join forces in the animal feed sector in Germany

ForFarmers and team agrar, part of the DLG Group, have agreed to combine their feed activities in Germany. The joint venture, which will continue under the name ForFarmers team agrar, has an extensive feed portfolio for various animal species. This agreement is subject to the applicable regulatory approvals by the relevant authorities.

ForFarmers and team agrar have been working together for some time in Germany through their joint venture HaBeMa, a company active in the trade, storage and transhipment 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 provides feed solutions to the livestock sector. With its mission “For the Future of Farming”, ForFarmers is committed to a future-proof agricultural enterprise and to making the agricultural sector more sustainable with knowledge, advice, support and products on the farm. The feed activities of ForFarmers in Germany include a broad portfolio of feed products for all animal species.

team agriculture provides services and products in all sectors. In addition to the production of compound feed, it also includes the collection and trading of grains, the supply of seeds, fertilizers and crop protection products and special agricultural products.
Team agrar is part of the DLG Group via team SE, a company with extensive activities in food, energy and housing. DLG Group has the strategic ambition to contribute to a more sustainable future and to be the preferred partner of farmers.

Joint Venture Structure
The 50/50 joint venture, which will continue under the name ForFarmers team agrar, includes the feed activities of ForFarmers and team agrar and the employees in the relevant legal entities in Germany:
the joint venture concerns the feed activities of ForFarmers in Germany with approximately 250 employees and the feed activities of team agrar in Germany with approximately 130 employees. It concerns eight feed production locations, three terminals and the vehicle fleet. The current HaBeMa joint venture with 130 employees is also part of the joint venture.

Outside the 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 the non-feed agricultural activities of the DLG Group, organic feed activities, Vilofoss activities, construction and energy activities in Germany.

The management of the new joint venture consists of representatives from ForFarmers, team SE and HaBeMa, and Ernst Friedlaender takes on the role of general manager.

ForFarmers will fully consolidate the joint venture (including HaBeMa, which until now was recognised as share in the profit of investments based on the equity method) in its financial results. The joint venture will have an advisory board with equal members from both shareholders. The first chairman will be appointed by team agrar. In the future, the shareholders will appoint the chairman alternately at regular intervals.

Strategic consideration

The joint venture is in line with the strategic ambition of both partners: to better serve the German market, create new growth opportunities and further leverage each other’s strengths with the aim of increasing profitability. The joint venture will have a better geographical coverage and can therefore serve its customers better and more efficiently. Furthermore, the sharing of knowledge and expertise in the areas of purchasing, formulation and innovation will be highly beneficial for the joint venture and its customers.

Pieter Wolleswinkel, CEO ForFarmers: “We have had a good cooperation with team agrar and DLG Group in our joint venture HaBeMa for many years. I believe that joining forces is a big step forward for both parties to expand our market activities in Germany. It will lay a foundation for further growth in an important region for ForFarmers in Germany. This cooperation enables us to enhance our product portfolio and provide local solutions and services to the German market.”

Jesper Pagh, interim CEO of DLG Group: “We are very pleased to announce that we are expanding our collaboration with ForFarmers, a trusted and long-standing partner with whom we share both strategic aspirations and values. The collaboration fits well with our strategic goal to increase our market position and will benefit our customers by enabling us to deliver even better solutions in the future.”

Ernst Friedlaender, Managing Director ForFarmers Germany: “It offers economies of scale and by combining our knowledge and expertise, synergies arise in many areas. In addition, we value each other’s mission and vision and there is a clear cultural fit. We look forward to expanding our collaboration, which will contribute to a sustainable and future-proof company.”

Bent Nissen, general manager of team agrar: “We are taking this very important strategic step to future-proof our feed business. The partnership symbolizes our commitment to strengthen the value proposition for our customers by offering them the best products and service. At the same time, it enables us to leverage synergies, increase competencies and offer our colleagues new opportunities and perspectives.”

This press release is also available on the ForFarmers website via this link.

This press release contains information that qualifies as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Note to editors / For additional information:
ForFarmers, Ilse Niehof-Duivelshof, +31 (0)573 28 88 00
DLG Group, Mette Sehested +45 28 35 10 44

Profile
ForFarmers

ForFarmers NV (‘ForFarmers’) offers complete feed solutions to the (organic) livestock farming sector. With its mission “For the Future of Farming”, ForFarmers is committed to a future-proof livestock farming and a more sustainable agricultural sector. Our goal is clear: to contribute to a good return and a robust business model for the long term. How? By leading the way with knowledge, advice, support and products on the farm. Close to the farmers, solution-oriented and with an open view of the future. The result: a contribution to affordable and sustainable food, For the Future of Farming. With sales of approximately 8.4 million tonnes of feed, ForFarmers is a leading player in Europe. The company has production locations in the Netherlands (head office), Germany, Poland and the United Kingdom and exports to various countries within and outside Europe. ForFarmers has approximately 2,600 employees and achieved a turnover of approximately € 3 billion in 2023. ForFarmers NV is listed on Euronext Amsterdam.

ForFarmers NV – P.O. Box 91 – 7240 AB Lochem
Telephone: +31 (0)573 28 88 00 – [email protected], www.forfarmersgroup.eu

Profile DLG Group / team agrar
DLG Group is a leading European company active in Food, Energy and Housing, serving some of the most basic needs of people and society. The company is a cooperative of 25,000 Danish farmers. Although our roots are Danish, we have a global vision. From previously operating solely in Denmark, DLG Group has grown significantly over the past 20 years, with 7,000 employees, operations in 18 countries and sales to 70 countries worldwide.
Driven by our desire to enable a better future for generations to come, we develop and deliver solutions and products that can help our customers and owners transition to a greener future, while transforming our own operations.

team agrar GmbH has been deeply rooted in the German agricultural market for many years. As Hauptgenossenschaft Nord AG (HaGe), a large field of work has been successfully built up over the decades and is now being continued as team agrar. With branches throughout Germany, team agrar has a strong basis for successful marketing and trade. In addition, team agrar offers services for trade and logistics within the team group.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements, for example with respect to the legal obligations of ForFarmers in terms of capital and liquidity positions in certain specified scenarios. In addition, forward-looking statements, without limitation, may include phrases such as “plans to”, “expects”, “takes into account”, “is aimed at”, ”intends to”, “estimated” and/or words with a similar meaning. These statements relate to or may affect matters in the future, such as the future financial results, business plans and current strategies of ForFarmers. Forward-looking statements are subject to a number of risks and uncertainties, which may lead to material differences between the actual results and performance and the expected future results or performance as implicitly or explicitly contained in the forward-looking statements. Factors that may result in or contribute to deviations from the current expectations include but are not limited to developments in legislation, technology, taxes, case law and regulations, share price fluctuations, legal proceedings, investigations by regulatory authorities, the competitive landscape and general economic conditions. These and other factors, risks and uncertainties that may affect forward-looking statements or the actual results of ForFarmers, are discussed in the most recently published annual report. The forward-looking statements in this press release relate only to statements as of the date of this document and ForFarmers accepts no obligation or responsibility to update the forward-looking statements in this press release, regardless of whether these relate to new information, future events or otherwise, unless ForFarmers is legally obliged to do so.