Fanon expands feed ingredient production with new protein and oil plant in Croatia

CROATIA – Croatian animal feed producer Fanon is set to build a new protein and oil production plant in Kneginec as part of its Fanon 2.0 expansion project aimed at strengthening domestic feed ingredient production and reducing reliance on imports.

The family-owned company said the investment will support greater self-sufficiency in protein and oil production while improving supply chain resilience in Croatia’s livestock and feed sectors.

According to local business publication Poslovni dnevnik, the project will also include transport infrastructure upgrades in the Brezje business zone, including the construction of two new railway tracks to improve logistics efficiency and reduce dependence on road freight.

Fanon chief executive Mario Jarnjak described the development as a strategic investment for Croatia’s agri-food sector.

“It is a strategic project that contributes to self-sufficiency in protein and oil production,” Jarnjak said.

He added that the company also plans to develop alternative logistics systems centered around rail transport due to its lower environmental impact, larger transport capacity, and lower costs compared to road transport.

Fanon currently operates Croatia’s second-largest oil mill, processing rapeseed, sunflower seed, and flaxseed into crude vegetable oils used in food, feed, and biodiesel production. 

The company is also involved in grain and oilseed farming, poultry production, and agricultural logistics.

Project supports feed sector resilience

The investment comes as European feed manufacturers continue to seek more localized protein and oilseed supply chains amid volatile global commodity markets and growing sustainability pressures.

Fanon said the new facility will help create additional value from domestic raw materials while supporting more sustainable, circular production models.

As part of the expansion, the company is also introducing a new plant-lipid concept called CaMilo, designed to improve digestibility and feed efficiency in animal nutrition while supporting the use of European-grown raw materials.

The company said the initiative aligns with broader efforts across Europe to reduce dependence on imported feed ingredients, particularly soymeal and vegetable oils sourced from outside the region.

Feed producers across the European Union have increasingly invested in regional oilseed processing and alternative protein sources as governments and industry groups push for stronger food and feed security.

Industry analysts note that transport and logistics efficiency are becoming increasingly important for feed manufacturers due to rising fuel costs and pressure to lower emissions across agricultural supply chains.

By integrating rail infrastructure into the Fanon 2.0 project, the company aims to improve the movement of raw materials and finished products while reducing the environmental impact of freight transport.

The expansion also reflects continued investment in value-added processing within Central and Eastern Europe’s feed and livestock sectors as companies seek to strengthen competitiveness and improve supply chain stability.

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