Lonza are partners of Feed Additives Asia 2018. We spoke with Stephan Jacobs, Global Sales Director – Animal Nutrition Products, to hear Lonza’s view of the speciality ingredients industry.
[Feed Additives] What are you most looking forward to at the conference?
[Stephan Jacobs] South East Asia and China are one of the fastest growing markets in the animal nutrition, human nutrition and pharma industry. This conference offers to our global and regional teams a nice opportunity to meet with our clients and learn about future trends in that region. Lonza is present in China with its first Vitamin B3 plant since 1994, followed by our L-Carnitine plant in 2011; with these state of the art production sites in China we are not only able to serve the growing local demand but also to act as a hub for other Asian countries
[Feed Additives] What are the biggest challenges your customers are facing?
[Stephan Jacobs] The upcoming challenge for the feed/food industry will be to meet consumers’ demand and expectations for high feed/food quality at affordable price aligned with animal welfare, environment protection and sustainable production processes, all together in the light of increasing competition for Earth’s limited resources. This will lead to a need to further increase the productivity of livestock production, most probably based on genetic progress and smart feeding strategies.
The global consumption of animal protein is projected to grow by 2-3% p.a. This is assumed to be largely driven by increasing disposable income, consumers’ demand to eat better and safer as well as urbanization in the upcoming markets, which generally directly translate into more spending on animal protein products. According to the FAO, the world population will need 100% more food by 2050.
Feed additives are important in animal nutrition as they improve the quality of feed thus improving animal’s performance and health subsequently improving the yield and quality of food from animal origin.
As one example for progress in terms of productivity – the swine breeding companies in the industry have done a good job of increasing number born alive; however, it has come at the expense of birth weight. Thus, more pigs born, but smaller. Farmers are increasingly concerned about smaller pigs as these are associated with higher pre-wean mortality, slower gains, poor health and worse carcass composition – notwithstanding the question of how to feed these hy-prolific sows adequately to satisfy their high demand for energy and nutrients to secure good body condition and milk production. Fertility and reproduction performance of modern sows highly depends on their energy and nutrient supply. Energy requirements during the peri-parturient period and early lactation often exceed the energy obtained by normal feed intake. Therefore enhancing energy metabolism is crucial for optimizing the level of productivity for the dams and subsequently for offspring.
Tailored diets and feeding strategies to optimize feed intake and healthy energy metabolism are essential when feeding the hyper prolific sow. CarnikingTM may contribute while playing a key role in the energy metabolism.
Research conducted on swine over the last 20 years indicated improvements in sow’s body weight balance, reproduction performance, milk yield as well as piglet’s viability and (fetal) growth.
Lonza, well known as a pioneer in L-Carnitine applications for livestock and companion animals is still the only basic manufacturer of L-Carnitine globally that is actively continuing to make significant contributions to the study of science for helping support its customers.
[Feed Additives] How has the market changed during your time in the industry?
[Stephan Jacobs] Mainly driven by the choice of feed raw materials, the structure of the feed producing industries as well as farm size, dominating regions like USA and Europe did show significant difference in feed production and feeding practice. In the United States feeding practice was strongly influenced by a high degree of poultry and swine integrations, use of antibiotic growth promoters (AGP) and a limited number of raw materials. By contrast, the European feed industry has faced a huge variety of different farm sizes, multiple by-products from the food industry as feed raw materials, intensive research for alternative feeding strategies due to the early ban of AGP and limiting environmental regulations. Additionally the dramatic consolidation of the feed industry in the course of the past 15-20 years and ongoing globalization are having a heavy impact on the change process.
For the specialty ingredient sector, we see a growing trend to move away from a pure product focus to a more solution orientation, driven by proven nutritional technology as well as nutritional concepts paying more specific attention to a particular situation in a region or the management on the farm.
As a company committed to the highest quality and customer satisfaction, Lonza is motivated to set new industry standards, not merely meet those currently existing. Lonza has acknowledged the market’s increasing demand for technologically sound products that fulfil the needs of progressive customers and/or industry professionals.
[Feed Additives] How do you think the market will evolve in the coming 20 years?
[Stephan Jacobs] The global feed additives market is likely to grow at a moderate pace in the coming years due to the steady demand by end-user industries such as livestock, poultry, aquaculture, and animal farming industries.
Mega trends like antibiotic free gut health, low cost and high productivity of livestock production will most likely dictate the future growth of the animal feed production sector. The trend for consolidation in the feed industry will continue. Feed companies from the Asian region are already now dominating the World’s top 10 feed producers. These and other multinational companies will most likely be the biggest influence on the structure feed industry of the future.
Lonza is one of the world’s leading and most-trusted suppliers to the pharmaceutical, biotech and specialty ingredients markets. We harness science and technology to create products that support safer and healthier living and that enhance the overall quality of life.
Founded in 1897 in the Swiss Alps, today Lonza is a well-respected global company with more than 40 major manufacturing and R&D facilities and approximately 10,000 employees worldwide.
Lonza’s offering for customers in the animal nutrition market both for production animals and for companions is based on a solid foundation of support and added value established from over four decades of supplying this industry. Our animal nutrition ingredients are backed by scientific evidence, regulatory compliance and marketing support. We operate under the highest standards for quality control and quality assurance.
For over 40 years, Lonza has been the global leader in vitamin B3 production specializing in both Niacin (nicotinic acid) and Niacinamide (nicotinamide). Lonza operates large-scale Niacin and Niacinamide plants in Switzerland and China. Vitamin B3 is essential for many metabolic functions and, consequently, supplementation is frequently required to support optimal health and maximum productivity in animals. Lonza is committed to providing unsurpassed quality ingredients for animal nutrition.
Lonza is also one of the leading and most respected suppliers of high quality L-carnitine for use by the animal nutrition industry. L-carnitine is an essential component in the energy metabolism of all species and can therefore offer a wide range of health benefits. Lonza has expanded its global leadership role in the animal nutrition industry with the start of the Next Generation CarnikingTM process. This advanced and patented process allows Lonza to increase its pivotal role in the global feed and pet food industry.
The safety of the feed additives offered to the animal nutrition market is of utmost importance to everyone in the value chain. By using Lonza animal nutrition ingredients customers have peace of mind that those ingredients strictly adhere to all regulatory guidelines and recommendations. Lonza’s multi-sites concept, know-how and experience, as well as exceptional quality and service, make us the most reliable partner to support the long-term growth of our customers.