Cooperation between AGRAVIS and RWZ in the feedstuff sector
AGRAVIS Raiffeisen AG and Raiffeisen Waren-Zentrale Rhein-Main eG (RWZ) are set to enter into cooperation in the feedstuff sector – subject to approval by the anti-trust authorities. To this end, RWZ is to integrate its two compound feed factories in Neuss and Wiesbaden and the employees who work there into a production company. As the majority shareholder, AGRAVIS Raiffeisen AG will hold a 75 percent share in this company and RWZ a 25 percent share.
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- The RWZ compound feed factory in Wiesbaden
Regional Raiffeisen cooperatives from the Rhine-Main region will also be able to participate in the production company. The tried-and-tested sales structures will be retained in their current form under the umbrella of the AGRAVIS distribution company. This will supply goods to the agricultural distribution offices of RWZ and the primary cooperatives. In concrete terms, this means that RWZ and the regional cooperatives will be able to continue offering and marketing the usual feedstuff brands and quality in their product portfolios. Customer support will be managed by the existing, trusted sales representatives. "Distribution of feedstuffs remains the core business of RWZ, but not production, however. Farmers will enjoy the lasting benefits of broader product ranges and the greater power of the AGRAVIS production network with trusted sales contacts," says Christoph Kempkes, CEO of RWZ Rhein-Main eG.
Stronger market position for the cooperatives
Andreas Rickmers, CEO of AGRAVIS Raiffeisen AG, sees this step as a move which will considerably strengthen the market position of the cooperatives: "We bring to the new company our production know-how and additional sales competence, from which the cooperatives and agriculture within RWZ's area of operation can then benefit."
For RWZ, this cooperation lays an important cornerstone upon which to build the future of its feedstuff factories, which it has run independently up till now. "AGRAVIS is the ideal partner for our feedstuff business. We can bundle know-how, strengthen our market position together and keep our production plants competitive in an environment where regulations are becoming ever more stringent," explains Kempkes.
Making good use of synergies
AGRAVIS produced around 4.5 million tons of compound feed with its own factories and associated companies in 2016. The two RWZ factories with direct access to the waterway network produce a total of around 320,000 tons of compound and mineral feed per year for all types of livestock. They supply customers in the Rhineland, Bergisches Land, Westerwald, Eifel, Rhineland-Palatinate, Hesse and Saarland.
"The market is placing increasing demands on feedstuff manufacturers," asserts Rickmers. "We therefore believe that it makes sense to harness synergies in this area too. We want to acquire the biggest possible share of the considerable market potential in the sales regions of the two feedstuff factories."