Raisioagro to Focus its Operations With Emphasis On Innovation

17 Apr 2014 --- Due to production and financial reasons, Raisioagro has begun statutory cooperation negotiations as part of its programme related to the identification of new growth potential and improvement of operations and profitability. With the arrangement, Raisioagro aims to focus its resources on areas in which the added value created through new business and product innovations is the highest.

The priority areas are, above all, cattle feeds and fish feeds. In addition, Raisioagro will focus on export activity to the neighbouring countries, particularly in feeds for fish and cattle.

The competitive situation in Finland has intensified due to new operators and additional capacity built in the industry while farm sizes are growing and livestock farms are transferring from complete feeds to component feeding. Sales volume in Raisioagro’s pig and poultry feeds has decreased and profitability weakened due to years of intense price competition.

Raisioagro started cooperation negotiations concerning all functions, excluding the Ylivieska-based feed factory producing cattle feeds as well as sales of fish feeds and feed export. For pig and poultry feeds, the company will examine alternatives to reduce, terminate or sell the business. Approximately 150 employees are in scope of the negotiations and the possible reduction need is estimated to be 50 persons. The negotiations are expected to be completed before the Midsummer.

Jarmo Puputti, Raisioagro’s Managing Director, says the company will carefully assess the operating environment and future success factors. Raisioagro aims to provide added value to the customers through cost-effective operations and investments in feeding expertise and in product range that meets customer needs. Raisioagro will develop and productise innovations that help improve the efficiency and profitability of livestock production and crop growing.