Nutreco, a global leader in animal nutrition and fish feed, just announced its Strategy Update for the coming five years "Ambition 2016 - driving sustainable growth".
Nutreco's ambition further builds on the existing strategy to grow and improve profitability by innovative and sustainable applications for its customers.
This will be realised by focusing on premix, feed specialties and fish feed and by expanding into the growth geographies of Latin America, Russia, China and South East Asia, which will see the greatest increases in both production and consumption of animal protein food products.
The first step has already been realised by divesting the company’s animal feed businesses in The Netherlands, Belgium and Germany. ForFarmers will take over the Hendrix UTD subsidiary from Nutreco.
Key elements of the new strategy are:
- Increase of EBITA (operating result before amortisation of goodwill) to €400 million in 2016;
- Establishment of Application and Solution Centre (ASC) for Europe in the Netherlands;
- More than half of EBITA of Premix and feed specialties from growth geographies in 2016;
- Further growth in markets for non-salmonid species to a share of 45% of fish feed revenues in 2016;
- EBITA margin guidance for Fish feed increased from 6% to 7% and EBITA margin for Premix and feed specialties will over time outperform current guidance of 7%, resulting in an overall EBITA margin improvement to 5-6%;
- Nutreco's solid balance sheet accommodates this growth strategy.
The outlook of 2011 EBITA before exceptional items of current business will be at least €230 million.
Apart from the intended sale of Hendrix compound feed operations to ForFarmers Nutreco has agreed on a long-term strategic partnership with ForFarmers.
Second phase of investment in extra production capacity of the fish feed plant in Averøy Norway, totalling EUR 66 million.
Reducing carbon footprint
Globally, animal protein consumption is expected to reach 465 million tonnes of meat and more than one billion tonnes of milk by 2050.
These trends place Nutreco at an essential link in the feed-to-food value chain. The expertise of Nutreco is to convert low value raw materials into safe, nutritious feed for animals and to develop models and management insights that enable farmers to be more productive while reducing environmental impact.
The drive to greater efficiency in feeds, with attention to ecology and to the economics of farming, is inherent in the name Nutreco. Chosen in 1994 when the company was formed, it stands for nutrition, ecology and economy.
Wout Dekker, CEO Nutreco says that Nutreco’s ambition is to become the global leader in animal nutrition and fish feed delivering innovative and sustainable nutritional solutions.
“By innovating and applying our knowledge of feed ingredients and nutritional solutions for animals and fish, we want to create value for all our stakeholders.
“Our strategy for animal nutrition will be enabled by our Application and Solution Centre (ASC) in Canada as well as the establishment of a new European ASC in the Netherlands in the first quarter of 2012.
“The ASCs will link our nutritional and technical know-how and innovation power in serving our customers' needs. We will focus on the growth of our premix and feed specialties business by expanding our presence in growth geographies.”