ForFarmers reports strong profit growth and strategic expansion in H1 2024

NETHERLANDS – The Dutch feed producer ForFarmers has announced significant profitability gains and solid volume growth during the first half of 2024. 

Despite a challenging market environment, the company achieved a 2.0% increase in total volume, reaching 4.274 million tons when adjusted for recent acquisitions and divestitures. 

Notably, compound feed volume rose by 0.7% to 3 million tons, reflecting the company’s strategic market positioning.

ForFarmers’ total revenue amounted to €1.355 (approximately US$1.49) billion, representing a like-for-like decrease of 15.3% compared to the same period in 2023. 

However, gross profit increased by 5.4% to €249 (approximately US$274)  million, driven by effective product and market choices resonating with customers. 

CEO Pieter Wolleswinkel highlighted the continued positive trends from the first quarter, with strong profitability in the second quarter reinforcing the company’s market position.

The integration of Piast in Poland acquired earlier in the year, has progressed smoothly, with ForFarmers expressing satisfaction with its performance. 

Additionally, the company is optimistic about its intended acquisition of Van Triest Veevoeders, a co-product specialist. 

Van Triest has excellent infrastructure in logistics, storage and transshipment and possibilities for mixing residual flows in Hoogeveen and Coevorden, trading more than 1 million metric tons of residual flows annually. 

This move aligns with ForFarmers’ focus on sustainable feed solutions and tapping into markets with clear growth potential. 

Despite ongoing macroeconomic and geopolitical uncertainties, the company remains confident about its prospects.

The company also provided insights into external market developments, noting a rise in raw material prices during the second quarter after a prolonged period of decline. 

While pig and poultry markets remained stable, the number of dairy cows in Western Europe decreased due to farmers exiting the industry. 

ForFarmers continues to navigate these challenges by focusing on its local approach, cost control, and commitment to sustainable livestock farming.

Under its mission, “For the Future of Farming,” ForFarmers is dedicated to promoting biodiversity, utilising alternative protein sources, and reducing CO2 emissions. 

The company has made significant strategic steps, including expanding its presence in Poland and divesting its Belgian compound feed activities, all aimed to support sustainable livestock farming and ensure a robust earnings model for farmers.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.