ForFarmers to transfer feed production from Helmond (NL)

18 June 2019 - 06:58

ForFarmers Netherlands announces to transfer the feed production from its Helmond location to other ForFarmers mills in Almelo, Deventer (NL) and Rees (Germany) in the fourth quarter of 2019.

In particular, ruminant feed and horse feed are being produced in the Helmond mill. The production of horse feed (PAVO) will be taken over by the production location Almelo at the beginning of the fourth quarter of 2019. The production of ruminant feed will be transferred to Deventer and Rees (Germany). In addition, part of the production will be transferred to a third party under a toll milling agreement. Capacity of the mill in Almelo is currently being enlarged to take over the horse feed production. Capacity of the mill in Rees is also being enhanced and investments have been made in a new bulk loading system based on contrasets to enable a more flexible use of the mill.

The decision to end the production in Helmond is in line with the announced efficiency plans, earlier this year, to save €10 million costs (2021 compared to 2018) by rationalising the supply chain, amongst others. Wherever possible, production will be combined in existing mills. This entails that some mills will be enhanced and/or modernised. No decision has as yet been taken as to how the mill in Helmond possibly can be utilised in the future, for instance for servicing special segments. As an example, an existing mill in Deventer (NL) was reopened to be fully dedicated to meeting the growing demand for (the production of) non-GMO feeds for ruminants and goats.

For the employees (31) concerned in Helmond, the transfer of the production activities entails that production activities in Helmond will cease. ForFarmers is investigating the possibilities to offer these employees work at a different location.