Commenting on the first-half 2019 results ForFarmers CEO Yoram Knoop said:
“The results for the first-half of 2019 were disappointing, but in line with our expectations as disclosed in the first- quarter trading update. The acquisitions, which we made in the second-half of 2018, made a positive contribution but this was not enough to offset the negative effects of the volume decline and the unfavourable purchasing position which we experienced in the first half of the year. We have reviewed and tightened up our purchasing procedures including having shortened the permitted purchasing coverage lengths for important raw materials.
Since announcing our efficiency plans in March, we have revealed plans to close four mills this year. These plans will contribute to the targeted structural cost savings of €10 million by 2021.
In more and more countries the agricultural sector is, amongst others, being faced with government measures to reduce the environmental impact of the sector. We will take into account the speed and intensity with which such measures are being introduced in the strategy for the period 2020 up to 2025. This strategy will be finalised in the first-half of 2020. As ForFarmers has strong positions in countries where the production of animal proteins is very carbon-efficient, we are able to continue to play a sustainable role for the future of farming and consequently in the chain that supplies the growing world population with animal proteins.”