May 19, 2008

Nutreco keen to expand fish-feed business with EUR360 million kitty

Dutch animal-feed company Nutreco Holding NV is feeling strong in a world seeing a rising demand for meat and fish and is keen to expand its products, CEO Wout Dekker said on May 16, 2008.

"Animal nutrition is a growth industry," Dekker added.

Based on growing global demand for food, Nutreco said it would seek to produce more feed for different fish species.

The surging demand for fish is chiefly driven by the consumer trend towards a healthier lifestyle, with not only farmed salmon, but also pricier fish like sea-bass and turbot, and cheap fish such as pangasius (tilapia) offering opportunities, the company said.

Dekker stressed that Nutreco, which earlier this year had said it had EUR 360 million (US$558 million) available for acquisitions, was viewing opportunities to take over companies that would help it develop ingredients boosting the nutritional value of animal feed. This would reduce its expenditure on raw materials, whose prices have hit record levels in the past year.