Alliance in the feedstuffs market
AGRAVIS Mischfutter Westfalen GmbH and Raiffeisen Hamaland eG are strengthening their cooperation in the Westphalian feedstuffs market. For this reason, the power feed plant belonging to the agricultural cooperative society Hamaland in Gescher has been spun off in a joint venture, in which the agricultural cooperative society holds a 51 percent majority.
"With this production alliance we are actively securing the future for our feed activities," stress Martin Duesmann-Artmann, director of Raiffeisen Hamaland eG, and Bernd Schmitz, director of AGRAVIS Mischfutter Westfalen GmbH. Both sides are convinced that the founding of the joint venture "Produktion Gescher" is the right step for better structuring themselves against an ever harder competition in the regional feed market. "Intelligent networks are needed," stress Duesmann-Artmann and Schmitz.
The power feed plant in Gescher currently produces 50,000 tonnes of feed a year, up to 75 percent of it pig feed, the rest for cattle. The purchasers are the end customers of the agricultural cooperative society Hamaland. AGRAVIS Mischfutter Westfalen GmbH produces around 700,000 tonnes at its two production sites in Münster and Dorsten, which are sold to around 50 primary agricultural cooperative societies. In the feed sector, AGRAVIS wants to expand the strategic partnership with the primary agricultural cooperative societies so that strong regional feed companies are active in the market and the business development can be sustainably secured.
"It is a model for appropriate cooperations and alliances," explain Duesmann-Artmann and Schmitz with conviction. There are cost and efficiency advantages for both partners, although know-how transfer, purchasing certainty and risk optimisation also play an important role in this merger.
The power feed plant in Gescher is now to undergo a roughly half-a-million modernisation in order to face the changing competitive situation.