De Heus Animal Nutrition Strengthens Its Position in Indonesia with The Acquisition of Neovia Indonesia

De Heus Animal Nutrition (De Heus) completed the acquisition\r\nof the compound feed operations of Neovia Indonesia (PT Welgro Feedmill and PT\r\nWirifa Sakti) from ADM. With two compound feed mills located in West-Java and\r\nEast-Java and total sales volume of 125,000 tonnes in 2019, Welgro and Wirifa\r\nfocus mainly on the poultry, aqua and swine feed segments. For De Heus\r\nIndonesia, the acquisition is an important step in its ambition to become a\r\nleading player in the Indonesian animal feed market.

Gabor Fluit, Business Group Director De Heus Asia: ‘After our\r\nsuccessful entry into Indonesia in 2018 through the acquisition of PT Universal\r\nAgri Bisnisindo (UAB) in Bekasi, West Java, this acquisition will accelerate\r\nour Indonesian growth strategy. It gives us an excellent opportunity to expand\r\nour position in key livestock and aqua farming areas, close to our existing and\r\npotential new customers.’

‘We live in turbulent times due to the Covid-19 virus, as a\r\nresult the demand for animal feed has decreased slightly. On the longer term we\r\nbelieve markets will recover. De Heus is a company focused on the longer term\r\nand dedicated to bring new technology and real progress to the markets in which\r\nwe operate by working closely together with our customers.’ It is\r\nestimated that the size of the animal feed market in Indonesia will increase\r\nfrom 19 million tonnes in 2019 to 22 million tonnes by 2022. Indonesia’s\r\ncurrent population is 273 million, making it the largest consumer market for\r\nproteins in Southeast Asia. The demand for animal proteins will continue to\r\nincrease over the coming years due to the growth in disposable income and\r\npopulation as well as the change in consumer preferences.

Gabor Fluit: ‘Since the UAB acquisition, De Heus has\r\nreplicated its successful market approach developed in other Southeast Asian\r\ncountries, supporting the further professionalisation of independent farmers in\r\nthe local livestock and aqua farming sector with premium-quality animal feed\r\nproducts and practical feed and farming advice. In addition, we have improved\r\nproduction processes, invested in technical training of personnel and started\r\nconstruction of a new production line for aqua and poultry feed at the existing\r\nUAB feed mill.’

Kay De Vreese, President Director De Heus Indonesia: ‘We are\r\nvery pleased that our focus on improving product quality and sharing best\r\npractices is recognised and appreciated by significantly growing customer base\r\nin Indonesia. We will continue to implement our investment plans over the\r\ncoming years.’

He continues: ‘We are very pleased to welcome the Welgro and\r\nWirifa employees as new colleagues to De Heus in Indonesia. We have come to\r\nknow Welgro and Wirifa as dynamic companies with a focus on continuous\r\nimprovement, which is an excellent fit with De Heus’ company culture.’

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‘The coming year will be an important transition period. We\r\nwill identify the investments needed in the production processes to improve\r\nproduct quality and increase production capacity. In addition, Welgro and\r\nWirifa will be aligned with De Heus standards so it will create a strong and\r\nunified De Heus organisation in Indonesia. We will also continue to assess\r\npotential opportunities to strengthen our position in the value chain, both\r\norganically and through acquisitions.'

Source : www.deheus.com