Dutch food company Nutreco has said it plans to focus on growing its global animal nutrition and fish feed business as part of a strategic action plan to regain solid profit growth and reduce earnings volatility.

As part of its 'Rebalancing for Growth' strategy the company also plans to develop its food and breeding companies into industry leaders. One way the company plans to achieve this is through partnerships, either inside or outside Nutreco.

The company has already announced two steps in this strategy. All fish farming, processing and marketing and sales activities of Nutreco's Marine Harvest will merge with Stolt Sea Farm into a stand-alone and independently financed business. The company has also announced the sale of its Hendrix Meat Group to European meat processor Sovion.

"After in-depth study and review, we can announce today a clear set of strategic choices to grow the company in the years ahead. Nutreco will develop into an animal nutrition and fish feed company with a strong food orientation. We will hold selective downstream positions in the food chain, with the explicit objective to build market leaders," said Wout Dekker, CEO of Nutreco.

Since 1999 Nutreco's strategy has been focused on building strong positions in the poultry, pork and salmon sectors, on top of its core animal nutrition operations. However, in the last two years Nutreco has been suffering from the effects of low salmon prices and the impact of Avian Influenza on the poultry industry in the Benelux.