NUTRECO announced that it has signed an agreement to enter into a joint venture with its existing partners that have a sales and distribution network in the Ukraine.
Nutreco said it will take an initial one-third share in Dutch Feed. This joint venture will give Nutreco's premix and feed specialties business, Trouw Nutrition International, a leadership position in the growing Ukrainian market, according to the announcement.
Nutreco noted that it has been operating a sales office in the Ukraine since 2006 and has operated a feed specialties plant owned by Dutch Feed since 2011 that will be incorporated into the joint venture.
The Ukraine is a leading cereal producer and is the second-largest animal feed market in Eastern Europe, after Russia. Its feed market has seen strong growth and is expected to continue to grow 5-10% per year.
Dutch Feed had 2012 revenues of 15 million euros. The joint venture has one feed specialties plant in the Vinnytsya region of the Ukraine that produced around 20,000 metric tons of concentrates and young animal feeds in 2012 and is expected to increase its production to 30,000 mt in 2013.
Closing of the transaction is subject to regulatory approval by the Ukrainian competition authority.