French Agrial and Danish DLG create JV to produce nutritions

DLG is extending its position on the French market with a new facility for production of premix and nutritions for dairy cows - a 50-50 joint venture with the French agricultural and food processing cooperative group Agrial. The two companies entered into a strategic partnership last year.

Agrial is a key player in French milk production and has a significant market share in Normandy and Brittany - a main area for the country's dairy industry. Following a planned merger with agricultural company Eurial, Agrial will account for over 10 percent of France's total milk production, a total of 2.7 bln liters of milk.

"It is a major breakthrough for DLG's premix and nutrition business. Along with one of France's largest agricultural companies, Agrial, we will be able to provide specialized premix and nutritions for dairy cows in Normandy and Brittany - the very heart of French dairy farming," says Kristian Hundebøll, Group CEO of DLG.

He sees great potential in increasing DLG's foothold in France - Europe's most important agricultural nation.

"It is a very exciting collaboration with significant prospects. We are entering the market on the strength of our knowledge of production of premix and nutritions, but neither we nor Agrial are blind to the great potential for cooperation in the agribusiness sector as a whole, if we combine Agrial's market reach with DLG's expertise and high degree of optimization," says Kristian Hundebøll.

DLG, via its French subsidiary, Calcialiment, and Agrial will invest a total of 11 mln Euros in the factory which will have a capacity of 50,000 tons annually. Construction is expected to begin in late summer, with production starting in September 2017 and reaching full capacity in January 2018.

DLG and Agrial expect that the factory will be able to deliver better products than are currently available on the French market for cattle nutritions, while Agrial expects to draw on DLG's expertise to deliver a better service to its members and customers via the new joint venture.

About DLG and Agrial
DLG is one of Europe's largest agribusiness groups with 40 subsidiaries in more than 20 countries. DLG had a turnover of 7.9 bln Euros (59.2 bln DKR) in 2014. DLG's three core business areas are agribusiness, premix & nutritions and energy.

Agrial is one of France's largest cooperatives within agribusiness, agricultural production and food with a turnover of 4.2 bln Euros.