Operational developments 2009

The revenue of Compound Feed Europe was EUR 269.8 million lower compared to 2008 (-22.1%). In comparison with 2008, sales prices decreased by 17.3% due to lower grain and soy prices. Volumes decreased by 6.4% due to a lower demand for feed for dairy cows and pigs mainly related to the low milk and pig prices and an overall stagnation of the demand in Spain. When milk and pig prices are lower, farmers focus more on cost savings. During the year we saw a recovery in volumes in comparison with 2008 to -4.1% in the second half year from -8.3% in the first half year. The acquisition impact on revenues was 1.6% (Spain).
EBITA was significantly lower compared to 2008, mainly due to a one-off loss of EUR 20 million in the Netherlands. In the first quarter of 2009, an operational loss related to purchase positions in raw materials was reported. Measures have been implemented to restore profitability and management has been changed. The results have recovered in the second half of 2009.
An important milestone for the year was the acquisition of Cargill Animal Nutrition in Iberia, which was approved by the antitrust authorities in November. The acquisition includes Cargill’s 12 Spanish and Portuguese compound feed production facilities, with a production volume of around 700,000 metric tonnes, annual sales of approximately EUR 240 million and 422 employees. After integration and transformation, the acquired business is expected to contribute a similar operating margin in two years’ time as Nutreco’s existing compound feed business in Iberia. The total consideration for this acquisition is approximately EUR 40 million which includes integration, restructuring and transformation costs and investments in production locations in the next two years.
Hendrix launched a new piglet feed programme, ALPHA, in February, providing premium piglet feed for healthier growth and better feed utilisation. Furthermore, Hendrix has launched a patented fermented liquid feed to improve pigs’ intestinal health. Nanta worked during 2009 on the better use of raw materials such as soya, wheat and DDGs (Distillers Dried Grains).

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