Feed maker ForFarmers to utilise food waste amid rising calls for sustainable farming

ForFarmers NV

17/11/2022 12:01

Nov 17 (Reuters) - Dutch animal feed maker ForFarmers
 FFARM.AS  on Thursday said it planned to use food waste and
alternative raw materials to develop new feeds to meet consumer
demand for more sustainable agricultural practices.
    The group, which produces feed for the ruminant, swine and
poultry sectors, cited faster than expected shift in market
trends as it revised its 2025 strategy first unveiled in 2020.
    To sharpen its focus and address societal concerns over
climate change and animal welfare among others, ForFarmers will
set up a new organisation, including its organic feed division
Reudink, to develop and market new feed concepts.
    "We will start with this in the Netherlands. Examples
include concepts which use alternative raw materials or
incorporate more moist co-products and residual flows from the
food industry," ForFarmers said in a statement.
    The group said the European Union's plan to decarbonise its
economy by 2050, higher raw material and energy costs, farm
consolidation and faster herd reduction, and tightening labour
market had led to overcapacity in feed production, putting
pressure on its results.
    The Netherlands, one of the world's largest agricultural
exporters with its intensive cattle and pig farming, aims to
halve its nitrogen emissions by 2030, prompting protests from
farmers angry at plans that may force them to use less
fertiliser and reduce livestock.
    ForFarmers, which operates in the Netherlands, Germany,
Belgium, Poland and Britain, targets consolidated return on
average capital employed of at least 10% based on underlying
operating profit by 2025.
    It refrained from giving a guidance for the current year,
citing changing markets and geopolitical and economic
uncertainties. 
    The group earlier this month reported a 17% drop in
third-quarter core profit hit by the hot summer, outbreaks of
animal diseases, and rising energy costs it could not fully pass
on in the supply chain.
 (Reporting by Diana Mandiá in Gdansk; Editing by Milla Nissi)
 ((diana.mandiaalvarez@thomsonreuters.com))