FORFARMERS 2022 RESULTS ForFarmers have released their results for the year ending 2022. The financial highlights are detailed below. • Total Feed volume: -6.6% to 9.0 million tonnes - down in every cluster • Of which compound feed volume: -7.8% to 6.3 million tonnes. Decline mainly in swine sector: growth in the poultry sector in Germany/Poland • Revenue: +24.1% to €3,315 million - due to higher raw material and energy prices • Gross profit: +13.4% to €494.8 million – less substantial increase than revenue due to high raw material prices and like-for-like volume decline • Underlying EBITDA: -2.7% to €76.1 million - due to sharp increase in energy costs • Underlying EBIT: -4.4% to €38.9 million


• Underlying net profit: +3.4% to €30.0 million • Working capital: €38.8 million (2021: €37.4 million) • ROACE (based on EBIT4: 7.8% (2021: 8.4%) • Dividend proposal: €0.20 per ordinary share (2021: €0.29, of which €0.19 regular dividend)


Specifically discussing their UK cluster the report detailed that: “Labour shortages, partly as a result


of Brexit and exacerbated by Covid, were felt throughout the agricultural chain in 2022. For example the capacity of slaughterhouses was under pressure, so pig farmers were unable to bring their animals to slaughter on time. At the same time, interest in robotic milking increased, partly due to the labour shortage. Milk prices in the United Kingdom were also higher than the year before. Less milk was produced in 2022, particularly in the first six months. With many pig farmers having been unable to produce profitably for quite some time, a few quit the industry. In addition to relatively high production costs, poultry farmers had to deal with the presence of avian flu. High inflation saw consumers make different food choices. This ultimately benefits poultry farmers as chicken is seen as a cheap and healthy alternative to other types of meat. In the summer of 2022 ForFarmers


announced its intention to form a joint venture with 2Agriculture in order to further improve the service to poultry farmers, supplying them even more efficiently with appropriate concepts and solutions. In February 2023 we announced, together with 2Agriculture, that we had decided to abandon the proposed joint venture due to the duration and cost of the competition process. Further notes on the results in the United Kingdom


Total Feed volume declined, with sales


of co-products and residual flows decreasing relatively less than sales of compound feed. Sales to dairy farmers increased due to increased market share and improved milk prices and hence more feeding on farm. Our dairy market share improved as a result of our differentiated sales approach offering targeted solutions to dairy farmers. Volumes in the swine sector decreased in line with market conditions. In the poultry sector sales to broiler farmers grew, due to growth in our market share as our nutritional proposition was valued by farmers. Sales to layer and turkey farmers suffered due to the spread of Avian influenza and hence culling of animals. Furthermore, unprofitable contracts with several customers were not renewed. Gross profit increased by 12.3%,


including a positive currency translation effect of 0.8%. This was enough to offset higher energy and diesel prices. As a result underlying EBITDA was slightly higher than in 2021. Underlying EBIT also marginally improved. ROACE based on EBIT was stable, mainly due to the higher average capital employed due to higher raw material prices.” The full report can be found online on the ForFarmers website.


ED&F MAN ACHIEVE ENVIRONMENTAL


ACCREDITATION ED&F Man, the molasses blends specialists, have achieved accreditation to ISO14001 certification, the leading international standard for environmental management systems (EMS) and the most widely used EMS in the world. Managing Director Dr Phil Holder


comments: “The animal feed industry is under increasing pressure to demonstrate high environmental standards. Feed is one of the major sources of emissions on all livestock farming systems. With ingredients contributing a significant proportion of the emissions in manufactured feeds, farmers are increasingly looking for ingredients with reduced environmental impact, and processors are also applying pressure.” ISO14001 certification helps to


control environmental aspects of the business, reduce impacts and ensure legal compliance. Having already achieved ISO9001 some time ago, Dr Holder says ISO14001 accreditation is the next step to help shape and develop the business and set the standard in the markets they operate. “This certification moves our business


towards better environmental control and demonstrates alignment with ethical choices and acts as proof for assurance of service, improving business image and reputation in a world where preservation of the planet becomes ever more important.


“It is demonstrable verification to our


customers, and their farmer customers of the high environmental standards of our range of molasses products and specialist blends, helping all to move towards net zero.”


EVONIK AND DR. ECKEL TO


COOPERATE ON PHYTOGENICS Evonik and Dr. Eckel Animal Nutrition have entered into a partnership effective January 1, 2023. This agreement will enable Evonik’s Animal Nutrition business line to expand its product portfolio in the Gut Health Solutions area to include the phytogenics product class. Evonik plans to launch a first product from the partnership with Dr. Eckel in Europe in the first quarter of 2023. Phytogenics are plant-based feed


ingredients which play an important role in alternative solutions to antibiotic use in livestock farming. The use of antibiotic growth promoters in animal feed has been banned in the European Union since 2006. “It often needs complex solutions to


maintain health and productivity in the barn without antibiotics,” says Gaetano Blanda, head of the Animal Nutrition business line at Evonik. “In combination with our existing Gut Health Solutions, phytogenics will help farmers achieve this goal.” Evonik Gut Health Solutions focus


primarily on stabilising the gut health of animals through probiotics such as Ecobiol®


, Fecinor® , and GutCare® . The


partnership with Dr. Eckel, one of the most experienced and innovative suppliers in the field of phytogenics, will allow Evonik to address further animal health issues with selected products that expand Evonik’s portfolio. “As a dynamic company with a high


pace in product development, we are able to create innovations in a comparatively short period of time,” says Dr. Antje Eckel, founder of Dr. Eckel Animal Nutrition. “With a strong partner like Evonik, we can allow selected products to access a much wider market in a short time. We are therefore very happy that together with Evonik we can open up new target groups and customers.” Dr. Eckel Animal Nutrition is a family-


run company with international operations. A broad knowledge of plant substances and their interactions as well as experience from almost three decades of work with innovative feeding solutions allows the company to develop phytogenics with specific benefits.


FEED COMPOUNDER MARCH/APRIL 2023 PAGE 55


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