Major compounder ABN set to exit monogastric feed sector

Feed compounder ABN has confirmed its intentions to exit the pig and poultry sectors over the next 12 months, raising concerns over future supplies.

In January of this year, ABN announced that it was looking to sell off a number of its sites, partly due to the loss of a major contract to supply feed to 2Agriculture.

It was announced then that the feed mills at Cullompton in Devon and Langwathby in Cumbria were both up for sale or lease, while the Flixborough Mill in Lincolnshire was being streamlined.

See also: ABN plans redundancies and looks to sell off feed mills

In a new twist, however, the company has now written to customers and suppliers confirming it will quit the monogastric sector altogether.

“This means exploring options, including divestment, for our remaining ABN mills,” it said in a statement.

“This decision follows careful consideration of the long-term changes affecting the UK monogastric compound feed market.

“Throughout this process, we are committed to maintaining continuity of supply and delivering for our customers while we work towards the best possible outcome for our mills, our colleagues and all those connected to the business.”

It is understood that the Cullompton mill was sold to Crediton Milling last month, but ABN is “currently exploring options” for the other sites – at Bury St. Edmunds, Cupar, Enstone, Flixborough, Langwathby, Northallerton, Sherburn-in-Elmet and Walsingham.

Significant job losses are anticipated, and some mill closures.

Reaction

Producer groups say that farmers may feel anxious following the announcement, but have tried to ease any fears.

Gary Ford, head of strategy at the British Free Range Egg Producers Association, said ABN was not as significant in the layer sector compared with pigs and broilers, and he was optimistic that other compounders would be interested in most of the other sites.

“They say it will take about 12 months to sort it out, and this could be unsettling for producers,” he said.

“But the good news is that there are plenty of other regional and national operators who are likely to take up the slack.”

Lizzie Wilson, chief executive of the National Pig Association, agreed there was plenty of capacity and other mills within the remaining market to absorb any lost tonnage.

“From what we’ve been told, there shouldn’t be any change in throughput,” she said.

Mark Gorton, business development manager at Traditional Norfolk Poultry and a long-term customer, said it was a great shame to lose an iconic feed supplier.

“Pretty much any event we go to will have been sponsored by ABN in one way or the other and this will be a huge loss to the industry,” he said.

“It’s never going to be a good thing to lose a huge feed supplier like this and of course it will reduce competition in this sector.

“When up to 60% of the costs of growing a bird comes from the feed, the last thing we need is a less competitive feed market place.”