This is stated in a strategy update from ForFarmers that was presented on Tuesday. In it, the feed company also expresses its ambition to enter a number of new markets. The company from Lochem is now active in five European countries. That should be seven by 2025. ForFarmers is aiming for a ‘more balanced distribution’ between the more mature home markets and new growth regions.
ForFarmers claims to be the market leader in Europe with sales of 10.1 million tonnes of feed annually. The company is active in the Netherlands, Germany, Belgium, Poland and the United Kingdom. So two more countries have to be added, according to the company.
ForFarmers aims to achieve an operating profit of 125 million to 135 million euros per year by 2025 through growth under its own steam and through acquisitions. In the first half of this year, the operating result was 48.2 million euros. According to the company, profit margins should also improve over the period. In the ‘challenging home markets’, this has to increase between 0 and 3 percent annually.
ForFarmers notes that on the European home markets, with the exception of Poland, there is increasing pressure on the agricultural sector. Livestock farmers are increasingly faced with environmental measures to limit the emission of phosphate and ammonia from animals, among other things. As a result, the growth forecast for the agricultural sector in northwestern Europe is very limited.