Zeder sows seeds in Turkey
The agribusiness conglomerate’s subsidiary Zaad Holdings in Turkey acquires leading seed producer May Seed
Agribusiness conglomerate Zeder Investments, which has PSG Group as an anchor shareholder, has bolstered its global presence with an investment in Turkey.
Zeder seed and agri-inputs subsidiary Zaad Holdings said on Friday it had acquired a 35% share in Turkish company May-Agro Tohumculuk Sanayi ve Ticaret Anonim (May Seed) for an undisclosed sum.
May Seed is Turkey’s largest private-sector agricultural seed producer. The company, which has two plants and various product registrations, exports to more than 35 countries across the EU, Middle East, Africa and Central Asia.
Zeder CEO Norman Celliers said the two companies could maximise their southern and northern hemisphere research and development capabilities by reducing the development time of new seed varieties.
Zaad, which mainly runs seed businesses Agricol and Klein Karoo Seed Marketing, already has a global presence through Bakker Brothers.
Zeder, which holds a majority in consumer brands company Pioneer Foods, has limited global exposure through fruit marketer Capespan and a Zambian farming enterprise.
A further spin-off for Zaad’s Turkish investment could be expanding business beyond the local sunflower market.
Celliers said the acquisition would allow Zaad and May Seed to participate in the lucrative Russian and Ukraine sunflower markets, which collectively have more than 12-million hectares for potential plantings.
Zaad CEO Antonie Jacobs said he was excited about the company’s expansion.
"Zaad is now truly a global seed company," he said.
Vunani Securities analyst Anthony Clark said the deal was positive for Zaad, which he felt at R1.3bn was undervalued by Zeder directors.