May 11, 2017

Cargill's Provimi sells liquid feed production business to Dielna

Dielna, a subsidiary of the Avril Group, and Provimi France (Cargill Group) have signed the deed of transfer of Provimi's activity in the manufacture of liquid feed for ruminants in France to Dielna.

With this acquisition, Dielna is aiming to consolidate its position as the market leader in liquid feed for ruminants, in particular dairy cows, and to develop its presence in all regions of France.

The Provimi liquid feed activity is based at two production sites, including its main plant in Mayenne, at Saint-Aignan sur Roé, thereby providing Dielna with access to Brittany and to the southern part of Pays de la Loire, two of the main French centers for the dairy industry.

Provimi is number two on the liquid feed market, thanks to its network of about fifty main distributors. Dielna is the leader on the liquid feed market, with total production of 35,000 tonnes, mainly at its Bourg Beaudouin plant near Rouen, combined with a powerful distribution network. The merging of these two market leaders will create industrial and logistic synergies, together with increased research and development facilities for the promotion of liquid feeds for all French livestock farmers.

"This operation will enable us to consolidate access to liquid feed for livestock farmers and will also broaden the scope of testing in animal husbandry, in order to demonstrate the benefits of these products in determining and controlling feed rations for dairy cows and beef cattle," Olivier Dioux, general manager of Dielna, said. "Liquid feed plays an essential role in improving the digestibility of forage, reducing feed sorting by the animals and meeting their sugar requirements, resulting in improved technical and economic performance."

"This sale comes as we are seeking to rationalise the organisation of Provimi France and concentrate on our core business," Paul Cuenca, chairman of Provimi France, commented. "In that context, the sale of our liquid feed business to the French market leader makes perfect sense. This takeover by a company specialising in liquid feed will secure the long-term development of this business."