Brazilian aquaculture feed boasts a relevant annual expansion. (Photo: Nutreco Fri-Ribe/FIS)
Nutreco boosts shareholding in Brazilian venture
Monday, March 12, 2012, 23:20 (GMT + 9)
Nutreco has inked a deal to increase its shareholding in its Brazilian joint venture Nutreco Fri-Ribe from 51 to 97 per cent.
The agreement provides Nutreco with a good basis for building a strong position in one of the key global agriculture and aquaculture growth markets: Brazil is the third-largest animal nutrition market, boasting an annual expansion of approximately 4-5 per cent.
“It makes Nutreco a more aggressive growth strategy to pursue,'' said SNS Securities, Reuters reports.
Nutreco Fri-Ribe, a joint venture formed in November 2009, supplies premix and feed products for poultry, aquaculture and other species. It is market leader in shrimp feed with a more than 20 per cent market share and the second leading supplier of tilapia with more than a 10 per cent market share.
In Brazil, Nutreco employs 470 workers and has revenues of EUR 84 million.
"After two years of strong development and cooperation with our partners, we are now ready for the next phase of growth activities in Brazil,” stated Jerry Vergeer, Nutreco's COO of Animal Nutrition. “Achieving 97 per cent of the shares creates the platform to make further steps that are in line with Nutreco's strategic ‘Ambition 2016.’"
Nutreco's 'Ambition 2016 - driving sustainable growth is a plan to develop and improve profitability by way of innovative and sustainable nutritional solutions for its customers. This will be executed by focusing on a higher margin portfolio of nutritional solutions such as premixes, feed specialties and fish feed and by branching out into Latin America, Russia, China and Southeast Asia, markets which are all expected to experience the largest increases in both production and consumption of animal protein food products.
Nutreco, a global leader in animal nutrition and fish feed, employs approximately 10,000 people in 30 countries and sells its products in 80. The company is listed on the NYSE Euronext stock exchange in Amsterdam and had annual revenues of EUR 4.7 billion in 2011.
By Natalia Real