Dutch group buys Brazilian cattle feed player
Cerrado Nutrição Animal produces a complete range of high-quality dairy and beef products from complete feeds, concentrates, nucleus, mineral supplements and mineral protein supplements. It has a manufacturing capacity of 50,000 tons per year, and a strong regional position, especially in the market for beef cattle in the Brazilian Midwest, said De Heus.
Rinus Donkers, director of De Heus Brazil and Latin America, said, by combining forces with Cerrado, it makes the expansive knowledge and experience of De Heus accessible to livestock farmers in that region.
“The acquisition also aligns with the strategy of De Heus Brazil to produce its ruminant products as close to its customers as possible and increasing synergy in the supply chain,” he added.
The founder of Cerrado Nutrição Animal, Antonio Pedroso, will be retained under the new ownership. He will be responsible for sales and customer relationships.
De Heus first entered the Brazilian market in 2012 when it acquired a pig feed company. It now competes in multiple animal categories in that South American country, offering nutrition products for pigs, beef and dairy cattle, poultry, pets and aquaculture. The Dutch group constructed a dedicated feed factory for young animals in Toledo in 2017; that plant has a focus on piglets and one-day-old chickens.
Asset building
The Brazilian deal comes on the back of another recent acquisition. In November last year, De Heus bought Spanish compound feed plant, Evialis Galicia, from Archer Daniels Midland Company (ADM). The move was said to be in line with its strategy to strengthen its position in the large Iberian animal feed market.
Evialis Galicia has production volume of more than 50,000 tons of compound feed annually, targeting multiple animal categories, but with a focus on feed for dairy cattle and rabbits. It deals mainly on the open feed market, selling its products to farmers directly as well as through a dealer network.
De Heus is now optimizing production processes at Evialis Galicia. A spokesperson told us last year that the planned revamp will cost around €3.3m and was expected to last around two years.
Active in Asia as well, De Heus opened a third feed factory in Myanmar, also in November 2019 - the new facility is focused on the aquaculture space.
Global player
Beyond Brazil, Spain and Myanmar, De Heus has business units and production plants in the Netherlands, Vietnam, Poland, Czech Republic, Slovakia, Serbia, Portugal, South Africa, Indonesia, Cambodia, Ghana and joint ventures in Egypt, Ethiopia, Russia and Ukraine.
Additionally, it is active in more than 50 countries through the export of concentrates and premixes to countries that are mainly located in Eastern Europe, Africa, the Middle East and South America.
