ForFarmers and Boparan have decided to abandon a proposed joint venture which would have seen the companies operate 19 animal feed mills between them.
The companies, which are both manufacturers of poultry feed, said today (Tuesday, February 7) that they had taken into consideration the current impact the partnership is having on their businesses, the duration and costs, and the impact the process has had on both employees and farmers.
This decision comes following an announcement by the Competition and Markets Authority (CMA) in January that it was conducting an in-depth investigation into the proposed partnership.
The authority’s initial investigation, which began in October of 2022, found that the proposed partnership raised competition concerns in four areas across East Anglia, northwest England and north Wales.
In these areas, the CMA said, the proposed partnership could have led to higher prices for poultry feed, lower quality feed or worse quality of service.
In the statement released today, ForFarmers said the companies originally proposed a business partnership to “better serve farmers’ needs through a balanced feed portfolio across species”.
“ForFarmers and 2Agriculture (the subsidiary of Boparan that was its named company in the deal) continue to believe that the joint venture would have made for a robust business, with improved expertise and presence across species, to successfully meet the changing demands from the entire value chain.
“This included helping farmers release the transition towards a more sustainable way of farming with enhanced returns.
“The proposed joint venture would have invested in driving improvements and optimising services in the most efficient manner, with a focus on further improving production efficiency and feed quality to the benefit of both farmers and end consumers.”
