A PROPOSAL from poultry feed giants ForFarmers and 2 Agriculture to form a joint venture has been abandoned.
The two firms first announced their intention to form a joint venture in July 2021, with the decision subsequently put under scrutiny by the Competition and Markets Authority (CMA).
Between them, they operate 19 mills in the UK.
The CMA said it had concerns over lessening competition in the feed sector in parts of the UK and began a Phase 2 investigation into the proposed merger at the beginning of January.
But now, in a statement, ForFarmers and 2 Agriculture have said they will no longer pursue the JV, saying they had considered “among other things, the current impact on their respective businesses, the costs involved, the impact this process has on both employees and farmers”.
“2Agriculture and ForFarmers UK announced their intention to merge their businesses into a joint venture on 1 July 2022 to better serve farmers’ needs through a balanced feed portfolio across species.
“2Agriculture and ForFarmers UK 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 realise 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.”