Nutreco announced that it has signed an agreement to enter into a joint venture with its existing experienced partners who have an extensive sales and distribution network in Ukraine.
Nutreco will take an initial 1/3rd share in the company, Dutch Feed. This joint venture will allow Nutreco's premix & feed specialties business, Trouw Nutrition International, a market leadership position in a growing market.
Nutreco has been operating a sales office in Ukraine since 2006, and since 2011 has operated a feed specialties plant owned by Dutch Feed which will be incorporated in the joint venture.
Ukraine is the second largest animal feed market in Eastern Europe after Russia. Its feed market has been growing strongly and is expected to continue to grow by 5-10% per year. Ukraine is a leading cereal producer and the country is expected to become an important meat supplier to Europe.
Dutch Feed had revenues in 2012 of approximately € 15 million. The joint venture has one feed specialties plant in the Vinnytsya region of Ukraine. It produced around 20,000 tonnes of concentrates and young animal feeds in 2012 and is expected to increase its production to 30,000 tonnes in 2013. Closing of the transaction is subject to gaining regulatory approval from the Ukrainian competition authority.
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