Raisio Group and Danish DLA Group Agree on Cooperation in Raw Material Procurement

The partners are also examining opportunities to expand their operations in Eastern Europe, and will set up a working group to explore these possibilities.

3/14/2011 --- Raisio and Danish DLA Group have signed a cooperation agreement that helps the companies coordinate their procurement activities in several product fields. In the beginning, the cooperation mainly concerns feed raw materials and production inputs. Raisio and DLA Group will also explore opportunities for cooperation in Eastern Europe.

“DLA already operates in Denmark, Norway, Sweden and the Baltic countries, and we are convinced that we are now getting a partner that shares our objectives and operates under the same high procurement principles as we do. With this procurement partnership, Raisio can significantly strengthen its competitiveness in the Finnish market”, says Pasi Lähdetie, Raisio’s Director of Grain Trade Operations.

DLA Group’s Managing Director Peter Iversen believes that the cooperation will bring new opportunities for the procurement activities of both parties: “Our objective is to make DLA Group a competitive player in the Northern European raw material market. Together with our international partners, we will be able to take advantage of sourcing larger volumes and to start new activities in new market areas.”

The partners are also examining opportunities to expand their operations in Eastern Europe, and will set up a working group to explore these possibilities.

DLA Group comprises the companies DLA Agro A.m.b.A / DLA Agro Group., Vilomix Holding A/S, Baltic Agro Holding A/S and Dan Agro Holding A/S (Hedegaard). DLA Group coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark, Norway, Sweden and the Baltic States. A part of the group’s companies own a number of associated companies, divided between upstream and downstream companies. The upstream companies contribute to a strengthening of the group’s position to suppliers and with regard to pre-processing of certain raw materials. The downstream companies strengthen the group’s position on the individual product and market areas. DLA Group holds a significant position on the Scandinavian agro market and together with the member companies employs a total of 2,500 people. The total retail turnover comprises DKK 19 billion.