By FWi staff
DALGETY has sold five of its nine feed mills, for an undisclosed sum, to Associated British Nutrition (ABN), another to Fishers Feeds and also plans to sell its remaining feed business.
Dalgety retains three mills pending sales negotiations with other companies. But they are unlikely to be sold to one buyer, said a spokesman.
They would be sold only once a purchaser was found who would provide continuity to customers and goodwill to its staff, said the company.
Manufacturing over-capacity of 2 million tonnes a year has remained a feature of the industry, said Dalgetys group managing director, Tony Taylor.
“We disposed of close to 1m tonnes of capacity as we reduced the size of our compound feed business over the last two years.
“We see the sale of six mills now as a continuation of that process, which will allow restructuring of the industry to serve a significantly changed livestock farming market.”
Dalgety plans to use the assets of this sale to reinvest in its core arable business, Dalgety Arable and Kenneth Wilson.
ABN and Fishers Seeds, both part of the Associated British Foods group, said the acquisition would allow the group to enhance its service to livestock farmers.
“This investment demonstrates ABNs unequivocal commitment to UK livestock farming and its ability to play a leading role in the whole agrifood chain, said Davis Yiend, chief executive of ABN.
ABN will continue production at its newly-acquired mills and retain the existing management teams, said Mr Yiend.
“This acquisition is part of our longer term strategic plan to meet the needs of a changing market.”
The six mills sold have an annual capacity of 760,000 tonnes and are at Bury St Edmunds, Suffolk; Gainsborough, Lincolnshire; Walsingham, Norfolk; Calne, Wiltshire; and Cullompton and Lifton in Devon.
The three remaining mills are at Peterborough, Leicester and Wrexham and have a combined output of 340,000 tonnes.