AGRAVIS Kraftfutterwerk Oldenburg – a ten-year success story

The AGRAVIS Kraftfutterwerk Oldenburg GmbH shareholders’ meeting on 1st June will take place on a larger scale than usual. This is because since 1st January 2006 and today, the GmbH has been creating history. A good reason to celebrate.

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Both managing directors of AGRAVIS Kraftfutterwerk Oldenburg GmbH, Heinrich Bruns (right) and Hermann Mammen, look back on a ten-year success story for the company.AGRAVIS Kraftfutterwerk Oldenburg – a ten-year success story
Both managing directors of AGRAVIS Kraftfutterwerk Oldenburg GmbH, Heinrich Bruns (right) and Hermann Mammen, look back on a ten-year success story for the company.

AGRAVIS Kraftfutterwerk Oldenburg GmbH started in 2006 with ten stakeholders. It emerged from AGRAVIS Kraftfutterwerke Nordwest GmbH, a 100 per cent subsidiary of AGRAVIS Raiffeisen AG. "Back then, our production output was approximately 340,000 tonnes per year, and falling", explained Heinrich Bruns, together with Hermann Mammen from RWG Ammerland-OstFriesland eG RWG Ammerland-OstFriesland eG , the managing directors of the company.

Successful stakeholder model

The company wanted to take on a new path with a stakeholder model that makes stakeholders out of customers and therefore bundles interests and strengths together, to improve cooperation with customers – a stakeholder model that has been very successful in Oldenburg since then and which has also been expanded into other regions.

Identification with the Oldenburg site

"The cooperatives are strongly linked with the Oldenburg production site due to being stakeholders. Identification is very strong. They place their focus on Oldenburg and together we gain new customers", explained Hermann Mammen. Cooperation with the cooperatives has also improved dramatically. "They have greater understanding for work processes and the challenges faced by production, as they now have an inside view. We want to optimise processes together and be commercially successful in the market", explained Mammen.

Invest and profit

This also applies to investments such as construction of a drying facility in 2008. "We would not have been able to do it ourselves. However, the companies have supported this and contributed to construction. Due to the plant we can now help them cope with harvest peaks", explains Bruns. The stakeholders contribute towards the investment, then profit from the results.

Production output of over 500,000 tonnes

Currently 17 cooperatives, almost all of which are from the direct catchment area, are involved in the economic success of the feed plant. Together with the feedstuff plant in Leer, which became a member of the GmbH two years ago, annual production of compound feed is approximately 500,000 tonnes. "Over the last ten years we have achieved a great deal and will continue to build on that", explained Mammen. "The cooperatives are also engaged. After all, they are not customers any more like they were ten years ago, but are also stakeholders themselves".

Expansion of the successful model

The model has been so successful in Oldenburg that AGRAVIS Raiffeisen AG has spread this out to other regions. With regard to the manufacture of compound feed in Münsterland, for example, AGRAVIS took cooperation to a new level this year: 16 primary cooperatives acquired shares in AGRAVIS Kraftfutterwerke Münsterland GmbH. Further ones should follow by the end of the year and therefore ensure that the production output in the compound feed plants in Münster and Dorsten produce 728,000 tonnes of compound feed annually. Due to the new level of collaboration, the compound feed business of all participants is interconnected in an expedient manner. The objective is to expand production tonnage of both feed product factories in the first year of cooperation to 777,000 tonnes.

In Münster AGRAVIS managed to turn cooperatives into stakeholders. The same applies here as in Oldenburg: Our customers become shareholders.