PKM Duda to acquire Polish pig breeding company

By Jaroslaw Adamowski

- Last updated on GMT

PKM Duda is planning a raft of investments and acquisitions to drive up bottom line profit
PKM Duda is planning a raft of investments and acquisitions to drive up bottom line profit

Related tags: Pork, Meat, Beef, Livestock, Processing and packaging Innovation

Polish meat processor PKM Duda S.A. plans to acquire local pig breeder PPH Ferma-Pol sp. z o.o. from the Ministry of State Treasury.

The company, which will be privatised this year, has a pork breeding capacity of around 40,000 heads per year.
 
Based in Zalesie, in Poland’s central region of Mazowieckie, PPH Ferma-Pol is one of a number of state-owned companies which are to be privatised by the Polish Treasury this year. Agro Duda sp. z o.o., a subsidiary of PKM Duda, was the only business which submitted an application to take part in the negotiations on acquiring the company.
 
The latest application marks a second attempt by the group to acquire PPH Ferma-Pol from the Polish state. In 2014, PKM Duda submitted an offer to take over the firm, but the privatisation process was eventually halted by the previous government.

Long-term growth plans
 
Currently, the Polish Treasury is again aiming to sell its 38,148 shares in PPH Ferma-Pol. The company is estimated to be worth some PLN 19.1m (€4.3m), according to figures released by the ministry. In addition to its pig breeding activities, PPH Ferma-Pol produces some 12,000 tonnes of feed per year. Set up in 1974, the company also has a slaughterhouse which has a capacity to slaughter about 4,000 head per year for its own needs, and 50 head per day for other companies.
 
PPH Ferma-Pol is operated by a workforce of about 120 employees, as indicated by data from the Zalesie-based firm.
 
The planned takeover is part of PKM Duda’s long-term plans of strengthening its position in Poland’s pig breeding sector, as indicated by its earlier acquisitions. Last September, the group signed a contract with Cargill Poland to purchase local pig and cattle farmer Agro Provimi. The deal was worth some PLN 28.1m (€6.3m), of which 10% was covered by PKM Duda’s own funds, and the remaining 90% by a loan obtained by the group from a local bank.

Duda plans to change name
 
PKM Duda’s market strategy for the years 2015 to 2019 states the company aims to increase both its revenues and profit. The two objectives are to be achieved through the development of the firm’s production and distribution capabilities in the Polish market, as well as acquisitions of other meat industry players.
 
Moreover, in a bid to bolster its brand recognition, in late June, PKM Duda decided that the group will change its name to Gobarto S.A.
 
Based in Poland’s capital Warsaw, PKM Duda says it is the largest player in the country’s red meat slaughtering and packaging industry. The group processes pork, beef and game meat, and comprises some 30 companies active in Poland’s agricultural and food sectors. Since 2002, the firm has been listed on the Warsaw Stock Exchange (WSE).
 
PKM Duda says that, in addition to its domestic market, it exports its processed meat products to various countries in Europe, Asia and Africa.

Related topics: Meat

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