Co-operative Mole Valley Farmers has strengthened its commitment to the organic ruminant sector by taking on the lease of ABN’s feed mill at Uffculme, Devon.
The agreement will come into effect from 1 September, with all of the existing workforce at Uffculme joining the Mole Valley business.
The mill will operate as a dedicated organic facility, according to Mole Valley, enabling it to "better service its organic customers, whilst driving greater efficiencies and cost savings across its supply chain".
Mole Valley Farmers’ CEO, Jack Cordery said the new site would benefit shareholders, members and farming customers alike.
“The number of organic feed manufacturers in the south west has reduced in recent years, but as a business, we remain firmly committed to the organic sector,” he explained.
"Bringing Uffculme into our portfolio will enable us to move organic production out of our Huntworth Mill in Somerset, into a dedicated facility.
"This will drive significant efficiencies through Huntworth, promoting better use of energy and tighter cost control, whilst removing the complexities of running a single mill that produces both conventional and organic rations.”
The new site will also allow the production of organic monogastric rations, putting greater competition into the marketplace and the potential for further expansion into this sector in the future.
Mole Valley said moving organic production out of Huntworth would facilitate greater manufacturing capacity for conventional bulk feed and the co-op's bagged products at this site.
It would also allow the business to in-source bag warehousing, which will streamline the supply chain for customers and retail stores.
Mr Cordery added: “The additional mill will ensure we are well placed for the years ahead, helping us to deliver our core purpose of supporting our farmer shareholders to improve productivity, profitability and sustainability.”