More restrictive credit policies in a weak market are blamed for Provimi Fish Feed operations' decline in sales of 7.4% in 2002.
Increases in input costs could only partially be passed on to customers, the company says, specifying fishmeal and oil prices that closed the year at high price levels.
As a result, a plant in France was closed and production transferred to its sister plant in Spain. Notwithstanding, Provimi says it continues to believe that fish feed has excellent growth prospects in the medium term. To this end, investments have been made in Chile with the opening of the new seawater fish feed plant having an annual capacity of over 75,000 metric tons.
Fish Feed, which represents 8.9% of sales for Provimi, one of the global leaders in the animal nutrition business, whose overall sales and operating income were up by 2.2% and 0.6% (eur 1534.1 m and eur 96 m respectively) in 2002, in spite of a difficult environment,
In its annual report, the company said it expected that in 2003 the environment would remain difficult, with worldwide economic uncertainty as well as the strength of the euro against other currencies
Provimi has 95 production centres in 28 countries and exports to over 100. Provimi manufactures products and supplies technical support to all species (including ruminants, poultry, swine, fish and pets). It employs over 8.000 people and had sales in 2002 of over eur 1.5 billion.