Marubeni to Acquire Stakes in the largest distributors of feed additives in Europe
Feb. 23. 2017
Marubeni Corporation (“Marubeni”) has reached an agreement to acquire a 60% stake in Dutch feed additive distributor Orffa International Holding B.V. (“Orffa”). Orffa is one of the largest companies of its kind in Europe.
Feed additives are compounded for the purpose of supplementing nutrients to livestock feed. They are used to supplement nutritional ingredients (vitamins, amino acids etc.), promote effective utilization of feed ingredients (enzymes, viable bacteria, etc.), and prevent feed quality deterioration (fungicide, etc.).
The current global market of feed additives is estimated at US$20 billion and is expected to continue growing at a rate of 4-5% per year based on increasing protein demand due to population growth in emerging countries and high-quality product preferences in developed countries.
Orffa sells a large number of feed additives, including Japanese products, to 60 countries, mainly in the European market. In Europe, which has a highly developed animal husbandry industry, environmental protection and safety are prioritized when using feed additives. Orffa has expanded sales by proposing appropriate formulations and usage according to customers' situations. Orffa also develops and improves their branded high-performance products based on customer needs in collaboration with research institutions, and constantly supplies new high value-added products to the market.
The criteria of European-type feed additive usage emphasize protection of the environment and safety, and is expected to become standard throughout the world in the future. Marubeni will support the global expansion of Orffa’s business model, especially in the Asian market, by utilizing Marubeni’s network of agriculture, animal husbandry, and fisheries fields.
Marubeni is focusing on the life science field, which relates to all areas of life and is expected to grow stably in the world. Marubeni aims to further expand business, not only in feed additives but also in functional food materials, cosmetic raw materials and other markets which are adjacent to the feed additives market.
In its mid-term management plan GC2018, Marubeni has designated platform-type business models in regions, fields and product areas that are expecting growth as a key overseas strategy. As a true global company, Marubeni will contribute to the stable supply of safe food as well as to regional economics and societies through its investment in Orffa.
<Outline of Orffa Holding International B.V.>
Sales of feed additives