German Agravis abandons renewable energy business - report

Oct 14, 2013 - German agricultural cooperative Agravis Raiffeisen AG will exit the renewable energy market and focus on its core business, CEO Clemens Grosse Frie told German daily Handelsblatt.

Agravis' renewable energy operations accounted for around EUR 150 million (USD 203m) of the group' total revenue of EUR 7 billion in 2012. The company has invested EUR 55 million in its renewable power operations so far.

According to Frie, the debate about the reduction of the feed-in tariff for renewable energy sites has unsettled farmers.

Despite its considerable size, the company is struggling with low profitability. Pre-tax profit is expected to be around EUR 60 million this year, which represents a 0.8% return on sales.

Agravis specialises in providing services relating to plants, animals, machinery and construction. In the renewable energy sector, the company develops biomass, solar energy, and biofuel systems.

(EUR 1.0 = USD 1.354)

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