1. Farmstory Acquires Farmsworld: What Happened?
Farmstory announced on September 9, 2025, its decision to acquire a 90% stake in Farmsworld for $32 million. Farmsworld operates in the livestock (pig farming) business, and this acquisition will complete Farmstory’s vertical integration, encompassing feed production to meat processing.
2. Why Acquire Farmsworld?
Farmstory expects the following benefits from this acquisition:
- Improve Subsidiary’s Financial Structure: Enhance group-wide risk management by securing Farmsworld’s financial stability.
- Create Business Synergies: Secure cost competitiveness and a stable supply chain through vertical integration from feed production to pig farming and meat processing.
- Secure Long-term Growth Engine: Expand market dominance through Farmsworld in the growing livestock market.
3. Impact of the Acquisition on Farmstory
This acquisition has both positive and negative aspects:
- Positive Impacts: Business diversification, synergy effects, securing long-term growth potential.
- Negative Impacts: Financial burden from the $32 million investment, Farmsworld’s business risks, market uncertainty.
While Farmstory recorded stable performance in the first half of 2025, it remains vulnerable to external factors such as raw material price fluctuations and interest rate hikes. Therefore, the key is how Farmstory manages the financial burden from the Farmsworld acquisition and how quickly it can generate synergistic effects.
4. Investor Action Plan
Investors should consider the following factors when making investment decisions:
- Monitor Farmsworld’s Financial Improvement and Synergy Creation: The success of the investment depends on Farmsworld’s performance improvement.
- Monitor Changes in the Macroeconomic Environment: Analyze the impact of external factors such as exchange rates, interest rates, and raw material prices on Farmstory.
- Manage Existing Business Risks: Managing existing business risks such as increased competition in the feed market and the risk of disease outbreaks in the poultry business is also important.