April 13, 2006

Trouw Nutrition takes over Chinese feed company in expansion bid

An eFeedLink Exclusive
 

Netherlands-based animal nutrition company Trouw Nutrition International announced Apr 13 its take-over of a Chinese feed specialty producer and distributor, Beijing Dejia Animal Husbandry Technology, for an undisclosed sum.

Dejia, which Trouw states as having an annual sales growth rate of above 30 percent, produces farm minerals and concentrates in its Beijing plant and distributes them nationwide.

"People fit, national network, fast growth, good company structure and systems, and high production standards," are what Trouw's marketing and communications officer Henrieke Pol cited as reasons for its Dejia purchase.

The combined business will now have 600 employees and an estimated annual sales revenue of EUR40 million.

With this acquisition, Trouw will also increase substantially its current feed specialties operations in the central Chinese province Hunan and will add piglet feed to its product portfolio.

In the press release, the company also stated its intention to further invest in Dejia to facilitate its future expansion into China.

This take-over is in line with the strategy of Trouw's parent company Nutreco Holding, which intends to expand its animal nutrition and fish feed businesses. The company has over in the past year acquired animal nutrition and fish feed companies in Mexico, Russia and Japan; in July 2005, it began a new production plant in Santos, Brazil.

More expansion can be expected to come from Trouw. As Pol reveals, the company is still looking to expand in 2006 "in markets where animal production shows growth, such as Central Europe, Asia and the Americas".

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