Nutreco announced Aug. 22 that it has signed an agreement to enter into a joint venture with its existing experienced partners who have an extensive sales and distribution network in the Ukraine. Nutreco will take an initial one-third share in the company, Dutch Feed. This joint venture will allow Nutreco's premix and feed specialties business, Trouw Nutrition International, a market leadership position in a growing market.
Nutreco has been operating a sales office in the Ukraine since 2006, and since 2011 has operated a feed specialties plant owned by Dutch Feed that will be incorporated in the joint venture.
Ukraine is the second largest animal feed market in Eastern Europe after Russia. Its feed market has been growing strongly and is expected to continue to grow by 5-10% per year. Ukraine is a leading cereal producer and the country is expected to become an important meat supplier to Europe.
Dutch Feed had revenues in 2012 of approximately 15 million euros. The joint venture has one feed specialties plant in the Vinnytsya region of Ukraine. It produced around 20,000 metric tons of concentrates and young animal feeds in 2012 and is expected to increase its production to 30,000 mt in 2013.
Closing of the transaction is subject to gaining regulatory approval from the Ukrainian competition authority.
Nutreco is a global leader in animal nutrition and fish feed. Nutreco employs approximately 10,000 people in 30 countries, with sales in 80 countries.