ABN has confirmed it intends to exit the UK monogastric compound feed market, bringing a dramatic change in direction for one of Britain’s largest suppliers of pig and poultry feed.
In a statement issued following an announcement to employees last week, the company said it had taken “an incredibly difficult decision” about the future of its UK monogastric compound feed business.
A spokesperson said: “We have taken an incredibly difficult decision about the future of our UK monogastric compound feed business, ABN. Our intention for ABN is to exit this industry. This means exploring options, including divestment, for our remaining ABN mills.
“This decision follows careful consideration of the long-term changes affecting the UK monogastric compound feed market. Throughout this process, our priority will be to support our people, communicate openly and responsibly, and provide certainty wherever possible.
“We are committed to maintaining continuity of supply and delivering for our customers while we work towards the best possible outcome for our mills, our colleagues and all those connected to the business.”
The announcement follows an ongoing restructuring of the business. Last year, ABN completed the sale of its Fridaythorpe feed mill in East Yorkshire to Cranswick, while earlier this year the company confirmed it was reviewing other sites within its manufacturing network as it sought to optimise its manufacturing footprint following the loss of a major supply contract.
ABN has not announced a timetable for its planned exit or disclosed whether discussions with potential buyers are already under way. The company said it remains committed to maintaining continuity of supply while it explores options for its remaining mills, including divestment.
Mark Gorton, founder and managing director of Traditional Norfolk Poultry, which is supplied by ABN, described the news as “a great shame”.
“First of all it’s such a great shame to lose an iconic feed supplier that has not only supplied the industry with high-quality feed but has also supported the industry massively over the years,” he said.
“Pretty much any event we go to will have been sponsored by ABN in one way or another and this will be a huge loss to the industry. I think we should all acknowledge this and thank ABN for their huge support over the years.
“The feed they produce has always been excellent and the birds always perform very well on it. It will be a concern to lose such a key feed supplier, but we don’t know what’s going to happen at this stage. Will the mills all get sold to one or multiple companies, or will a new entity take them, or some of them, on? Who knows?
“From an industry perspective it’s never going to be a good thing to lose a huge feed supplier like this and, of course, it will reduce competition in this sector. When up to 60% of the cost of growing a bird comes from feed, the last thing we need is a less competitive feed marketplace. I’m sure most farmers will share my concerns.”
The company’s announcement raises significant questions about the future ownership of its remaining feed mills and the implications for the UK poultry and pig sectors. While ABN has stressed that supplies to customers will continue during the process, producers will be watching closely to see whether the business is acquired by a single buyer, split between multiple operators or undergoes a wider restructuring.
ABN has said its priority throughout the process will be to support employees, communicate openly and responsibly, and provide certainty wherever possible for customers, colleagues and others connected with the business.