ForFarmers, Team Agrar partner to strengthen feed business in Germany

GERMANY – ForFarmers and Team Agrar, a subsidiary of the DLG Group, have agreed to merge their feed operations in Germany under a new joint venture named ForFarmers Team Agrar. 

This partnership, pending regulatory approval, aims to deliver a more comprehensive feed portfolio across various livestock species, enhancing the companies’ reach and service capabilities in the German market.

The collaboration builds upon a relationship between ForFarmers and Team Agrar through their joint venture HaBeMa. Based in Hamburg, HaBeMa focuses on trading, storing, and producing raw materials and compound feed. 

The decision to expand their cooperation into a broader feed business is seen as a logical next step in response to the increasing demands of the German agricultural industry.

ForFarmers is a leading European company that specializes in livestock feed solutions and has established a diverse portfolio of feed products catering to all major livestock species in Germany.

Team Agrar, on the other hand, brings its expertise across various agricultural sectors. In addition to producing compound feed, the company is involved in grain collection and trading, as well as providing seeds, fertilizers, plant protection products, and specialized agricultural services. 

Team Agrar is part of the DLG Group, which has a broader focus on food, energy, and housing and is committed to supporting sustainable agricultural practices.

Joint venture structure 

The joint venture will be a 50-50 partnership between ForFarmers and Team Agrar. It will include the feed activities and employees from both companies’ respective operations in Germany, with approximately 250 employees from ForFarmers and 130 employees from Team Agrar. 

Together, the venture will manage eight feed production sites, three terminals, and a dedicated vehicle fleet. HaBeMa, with its 130 employees, will also be integrated into this new structure.

However, certain activities will remain outside the agreement’s scope. ForFarmers’ Thesing, Pavo, Reudink, CirQlar, and Vleuten brands, along with Team Agrar’s non-feed-related activities such as organic feed, construction, and energy, will not be part of the new joint venture.

Representatives from ForFarmers and Team Agrar will manage the new entity, with Ernst Friedlaender named managing director. 

ForFarmers will fully consolidate the joint venture, including HaBeMa, into its financial results and an advisory board, with equal representation from both shareholders, will oversee the venture. 

The first chairperson will be appointed by Team Agrar, with alternating appointments thereafter.

This joint venture aligns with ForFarmers and Team Agrar’s strategic ambitions and by combining their strengths, the two companies aim to better serve the German feed market, opening up new growth opportunities and improving profitability. 

The partnership will provide enhanced geographical coverage, enabling the joint venture to serve customers more efficiently and effectively.

Furthermore, by pooling their knowledge in areas such as procurement, feed formulation, and innovation, ForFarmers Team Agrar expects to offer superior feed products and services to its customers. 

This collaboration will also provide the joint venture with the agility to adapt to market changes while continuing to innovate in areas critical to sustainable and future-proof farming practices.

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