Greencore sell malt business to French co-op
Pat O’ Keeffe
Greencore Group plc has today (Thursday 10 February) confirmed the sale of its malt business to French cooperative AxéréalUnion De Coopératives Agricoles ("Axéréal") for €116.25 million
Greencore Malt comprises three Greencore owned malting businesses based in the United Kingdom (Pauls Malt), Ireland (Minch Malt) and Belgium (Belgomalt). The seven malting plants have a combined annual output capacity of approximately 520,000 tonnes.
Based in the grain producing Centre region of France, Axéréal was formed in July 2009 from the merger of two French co-operatives, Agralys and Epis-Centre. The co-op purchases 5 million tonnes of cereals annually and trades 8 million tonnes. The co-operative Group has 13,000 farmer members, 3,500 employees and revenues of €2.8 billion.
This acquisition will propel Axéréal’s malting business, Boortmalt Group, from 7th to 5th largest maltster worldwide, increasing their capacity from 620,000 tons to over 1.1 million tonnes of malt. The Group will have malting plants in 11 European locations, and a strong presence in key markets including South and Central America, Africa, Asia and Europe.
Boortmalt Group has the largest malting plant in Europe located in Antwerp with a production capacity of 320,000 per year.
Malt was a reliable profit generator for the Greencore group. Figures released today show that Greencore Malt generated operating profit of €20.5m on sales of €217.2m in the year to 25 September 2009. In 2008, operating profit of €23.9m was generated on sales of €250.3m. In 2007, operating profit for the malt division was €13m on sales of €196.3m.
Greencore will retain some property assets, including circa 50 acres at Athy.
Axéréal Chief Executive Officer, Dominique Bamas, said:
“As a major farmer-owned co-operative group, Axéréal’s strategy is to invest in, and develop, quality downstream grain businesses that help ensure the proper functioning of competitive markets for cereals. We seek to build strong positions for each of our processing businesses to create influential players on a global stage, that deliver quality products, innovation and service to our customers. Our acquisition of Greencore Malt will be a significant step in delivering on this strategy and establishes Boortmalt as a leading player in the global malt business.”
Dominique Bamas said: “Axéréal has a proud heritage of supporting farmers in producing cereals at all stages from the supply of certified seed, fertiliser and inputs, production advice and logistical support. As ultimately a farmer-owned business, we look forward to supporting fellow growers in Ireland.”
Axéréal’s trading activities focus on three areas, namely Grain (seed supply, farm advisory, collection, marketing), European trade (purchase and sale of grain, and logistical services), Processing (malting, flour milling, animal feeds, oilseed crushing and bioethanol production).
Headquartered in Antwerp, Belgium, the Boortmalt Group is led by CEO, Yvan Schaepman. Following the deal, he will be supported by David Wilkes, the current CEO of Greencore Malt, who will join Boortmalt as its Deputy CEO.
Post acquisition, the Boortmalt Group will have 11 malting plants in Europe: Antwerp, Ghlin and Gembloux in Belgium, Issoudun in France, Knapton and Bury St. Edmonds in England, Athy in Ireland, Glenesk and Buckie in Scotland, Dunaujvaros in Hungary and Nova Gradiska in Croatia.
New round of grants for traditional farm buildingsThe Heritage Council has launched its Reps 4 Traditional Farm Buildings Grant Scheme for 2010-2011. The scheme is designed to provide assistance to farmers or others in conservation and preservation of traditional farm buildings.A traditional farm building is a building or part of a building constructed before 1960 for a use associated with agriculture. They were usually built using traditional methods and materials found locally such as timber, brick, stone, tile, slate or thatch.Under the Council’s grant scheme, grants are available to carry out approved conservation works to the exterior of eligible farm outbuildings (roof, outside surface of walls, windows and doors) and associated structures (historic yard surfaces, walls, gate pillars and gates).The grant will not be for more than 75% of the cost of the works. Grant awards will vary between €5,000 and €25,000. The smallest project that could be funded would cost €6,700. The Heritage Council administers the REPS 4 grants scheme in partnership with the Department of Agriculture.``These buildings are important to the Irish landscape as they reveal a great deal about the way the countryside has evolved and the changing fortunes of farming through the ages,’’ said Isabell Smyth, Communications Manager with the Heritage Council,``Unfortunately many our traditional farm buildings have being lost through neglect. Their timely repair prevents dilapidation and the onset of serious structural problems, which may lead to expensive restoration in the future.’’Application packs are available online at www.heritagecouncil.ie . Closing date for applications is 5.00 p.m., Friday 26th march 2010.
Gerry Scully RIP
The industry has been shocked at the news of the sudden death on Monday of Gerry Scully, Programme Manager in charge of the Teagasc rural development programme.
A native of Flagmount, Co Clare, Gerry worked for more than 30 years in the advisory services. He started as an adviser in Wicklow and later became a regional beef and sheep advisory specialist. He went on to become Chief Agricultural Officer in Galway and also held senior national positions in Teagasc, including Chief Sheep Adviser and Assistant Director of Advisory Services before taking up his recent role as leader of the rural development programme.
An accomplished communicator, he presented a series of RTE television programmes in the 1980s on farming issues and, in more recent times, won a Guild of Agricultural Journalists award for a series of articles he wrote on farming in New Zealand. A consummate professional, he was President of the Agricultural Science Association (ASA) in 2007/08 and was a member of the ASA council up to the time of his death.
The seventh milk quota trading scheme will see two changes compared to the last scheme. The maximum price at which quota is traded in the priority pool will be reduced from 10 cent/litre to 6 cent/litre, unless the exchange price for that Co-op area drops below 6 cent/litre, in which case the priority pool price will be the same as the exchange price. In addition, the individual bid limit for buyers will be raised from 80,000 litres to 100,000 litres.
The Minister for Agriculture Brendan Smith, who announced the details of the scheme on Friday, said "It is clear from the review with the farming organisations and ICOS that the structure of the Milk Quota Trading Scheme does not require radical alteration this year. I have decided instead to reduce the price of priority pool quota to a level that I think more accurately reflects the current value of quota, and I have also made it possible for buyers to obtain slightly larger amounts of quota than in previous years".
Minister Smith confirmed that the structure of the Scheme will otherwise remain largely unchanged. It will again be run in respect of each Co-op area, and will be comprised of a priority pool and a market exchange. Sellers will continue to contribute 30 per cent of the total quota offered for sale to the priority pool. The method for calculating the market-clearing price, including the 40 per cent price corridor, will remain unchanged. The 3:2 ratio on the distribution of priority pool quota between young farmers and category 1 producers will be retained, as will the option for sellers in certain Co-op areas to sell at one or two cent per litre less than their original offer price.
The closing date for receipt of applications to the seventh Milk Quota Trading Scheme will be Friday 23 October 2009. Details of the Scheme will be published in the Irish Farmers Journal next week and application forms will also be available from Co-ops next week.