Cooperative feedstuff production is strengthened

AGRAVIS Raiffeisen AG is also intensifying the cooperation in feedstuff production feedstuff production between Emsland and the primary cooperatives of the region. New Raiffeisen cooperatives are involved with effect from 01 January 2017 in the AGRAVIS feedstuff plant in Lingen. The partners have together founded the AGRAVIS Futtermittelwerke Emsland GmbH.

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Until now the agricultural trading and service company was the only proprietor of the production facility in which around 180,000 tonnes of compound feed were produced per year. The cooperatives, who were until now customers of the Lingen produced feed, have now become partners and can take over a total of 50 per cent of the share. Customers become shareholders.

Successful participation model in other regions

"We have already had good experiences with this participation model in other regions of our field of work. Meanwhile in Oldenburg it has been in existence for ten years and has developed into a success story," explains Dr Clemens Große Frie, Chairman of the Board of Directors for AGRAVIS Raiffeisen AG. In Münster and Dorsten this form of cooperation between Raiffeisen cooperatives and AGRAVIS began at the beginning of 2016.

Strengthen cooperative feedstuff production

The background for this step is the same everywhere: "We want to strengthen the cooperative feedstuff production in this way and to be able to withstand all weathers in an ever increasingly competitive market," underlines Große Frie. The current new cooperatives who are mutually participant to the production company, currently take over 60 per cent of the annual tonnage from the Lingen plant, Dirk Bensmann, responsible for the AGRAVIS Board of Directors' feedstuff company, describes. The Lingen location in doing this has a long-term economic perspective.

Cooperatives help shape course

With the notarisation the Raiffeisen Cooperatives: Obergrafschaft eG, Lohne eG, Recke-Steinbeck eG, Mettingen eG,Surwold eG, Beesten-Schapen eG, Ringe-Wielen-Georgsdorf eG, Nordhorn eG and Veldhausen eG, are companies of AGRAVIS Futtermittelwerke Emsland GmbH. The cooperatives will help to shape the course of the new business: AGRAVIS and the group of primary cooperatives respectively provide a manager. They collectively decide on investments and strategies, and the cooperatives delegate two representatives to an advisory board which accompanies the management.