Agrial, Terrena Propose Merger Of French Agri-food Majors

The “strategic merger project” will beryllium put to a ballot by members astatine wide meetings.

From near to right: Éric Forin, CEO of Terrena, Olivier Chaillou, president of Terrena, Bernard Guillard, president of Agrial and Julien Heillaut, CEO of Agrial. Credit: Agrial/Terrena.

The boards of Agrial and Terrena person projected a merger of nan 2 French agri-food cooperatives.

They are “studying” a woody that would, if passed by members, create a institution pinch combined, pro-forma income of much than €12bn ($14.15bn).

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“In a discourse marked by repeated crises, persistent inflation, and accrued title successful Europe, nutrient has go a cardinal rumor for consumers,” Agrial and Terrena said successful a associated statement.

“While unit and foodservice players proceed to consolidate, farmers must reside respective challenges to stay sustainable partners: processing production, competitiveness, generational renewal and adapting to nan sustainable transition.”

In March, 2 different French agri-food co-ops, Euralis and Maïsadour, set retired plans to subordinate forces and create an entity pinch a turnover of astir €3bn.

In their statement, Agrial and Terrena added: “Faced pinch these challenges, nan 2 coagulated and complementary cooperatives person decided to prosecute successful a associated reflection connected nan anticipation of joining forces successful bid to build a sustainable early for their members, their labor and consumers.”

Agrial has much than 12,000 husbandman members. The institution operates much than 100 accumulation sites crossed 11 countries, focusing connected milk, vegetables, beverages and meat. It generated turnover of €7.1bn past year.

The co-op’s marque portfolio includes Soignon cheese, Florette salads and Loïc Raison cider.

Terrena, pinch 18,000 personnel farms, manages brands for illustration Tipiak and Père Dodu. The cooperative runs 80 processing sites merchandise groups including dairy, meat, eggs and cereals. It booked a turnover of €5.6bn successful 2024.

Agrial and Terrena said they will clasp discussions pinch members and labor adjacent year. The projected woody will beryllium put to a ballot by nan members of nan co-ops astatine wide meetings.

“This task will capitalise connected nan complementarity of our activities to fortify our cooperative exemplary astir resilient animal and works sectors and to beryllium competitory successful each marketplace segments,” nan co-ops added.

“By pooling our expertise and invention capabilities, this task will besides alteration america to enactment together to reside nan challenges of ambiance change, power transition, patient and sustainable food, and French nutrient sovereignty. Given nan standard of nan challenges, corporate responses astatine nan location level are essential: this is nan full intent of this associated project.”

In July, Julien Heillaut took complete as Agrial’s CEO, succeeding Ludovic Spiers. Having joined from Labeyrine Fine Foods successful 2018, Heillaut has led nan cooperative’s vegetables section since 2020.