2Agriculture and ForFarmers UK have announced they have decided to abandon proposed joint venture plans. The parties said they had taken into consideration, among other things, the current impact on their respective businesses, the costs involved, the impact this process has on both employees and farmers.
ForFarmers UK and 2Agriculture, a company owned by Ranjit Boparan, both manufacture and supply chicken and other types of poultry feed in the UK and between them, the firms operate 19 mills across the UK.
The companies announced their plans to merge last July, but in December, the Competition and Markets Authority said there were concerns in four local areas across East Anglia, north-western England and North Wales where it could lead to higher prices for poultry feed, lower quality feed or worse quality of service.
The companies said in a statement that they 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,” they said in a statement.