Description of the portfolio company
Founded in 1978, Esro Food Group (Esro) is a family-owned company focussed on processing beef and veal by-products (non-core for primary processors and often even treated as waste). Esro has multiple processing locations in the Benelux and also operates from 15 in-house abattoir processing facilities providing access to and lock-in with a (geographically) diversified supplier base.
Investment rationale
By processing by-products and residual streams of animal proteins, Esro aims to enhance operational efficiency and promote circularity in its processes. Esro plans to achieve growth in the coming years by exploring new export markets and expanding sourcing to new geographies, including implementing (in-house) processing at leading abattoirs in European countries such as Spain. Furthermore, additional growth is anticipated through the expansion of product offerings in non-food sectors such as pet food and pharmaceuticals. Rabo Investments acts as a sparring partner for management, providing support in strategic decision-making, professionalization, and expertise in food and agriculture.