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Micro Ingredients

3+ MIN

5.0

28/06/2023

ADM opens most innovative probiotics and postbiotics plant in Valencia

The American human and pet nutrition company ADM has opened its most innovative production plant in Valencia. With an investment of over 30 million dollars, the factory will be the first in the world capable of producing probiotics and postbiotics at the same facility. In addition, the new factory represents a five-fold increase in the company's production capacity. The aim of the new plant is to meet the growing worldwide demand for probiotics and postbiotics, as part of ADM's expansion strategy in the health and wellness sector. It will thus contribute to the multinational firm's target of boosting revenue in this division from 500 million dollars at the close of 2022 to over 2 billion in the next ten years. University R&D laboratory The factory is located close to the company's R&D centre at the University of Valencia Science Park, facilities where scientists carry out activities such as next-generation genome sequencing and early-stage testing of new bacterial strains. The commissioning of the Valencian factory will enable the company to produce 50 metric tonnes per year. From there it will supply the probiotic and postbiotic markets in the United States, Asia-Pacific and Europe. The company intends to triple its customer base over the next five years. Science-based research Health and wellness division president Mark Lotsch said that his business area is 'one of the three enduring trends powering ADM's growth strategy: consumers are increasingly aware of the role their gut microbiome can play in their everyday lives, and they're seeking nutrition solutions that are backed up by science-based research'. The company alluded to a Euromonitor market research study that estimates that the probiotic supplements retail market could surge to 10.4 billion dollars by 2027, compared to its turnover of 8.3 billion in 2022. Lotsch added that this growth is being driven by the rising demand for science-based probiotic formulas that are used in dietary supplements, as well as dairy products, food and healthy snacks and beverages, and in addition to pet and animal well-being products. ADM, one of the world's leaders in science-backed nutrition solutions, has opened a new production facility in Valencia, Spain to help meet rising global demand for probiotics, post-biotics and other products that support health and well-being The production facility represents an investment in excess of 30 mio dollars and a more than five-fold increase in ADM's production capacity, increasing it to 50 metric tons per year. The facility will allow ADM to supply growing markets for probiotics and postbiotics in the US, Asia-Pacific and Europe, states the company. ADM expects its customer base will more than triple over the next five years as more people recognise the links between the gut microbiome and many aspects of health, and look for products tailored to their specific needs. The facility, the world's first to produce both probiotics and postbiotics at the same site according to ADM, will help the company fulfil its expansion strategy in the health and well-being sector. ADM is on its way to realising its ambition of increasing health and wellness revenue from over 500 million dollars in 2022 to 2 bn dollars within 10 years. The site will produce ADM's probiotic BPL1 and the heat-treated BPL1 postbiotic, as well as other ADM proprietary strains, supplying a broad range of customers. It will also be able to support further growth in ADM's UK-leading Bio-Kult brand of products. The new facility is located close to ADM's pioneering research and development centre in the University of Valencia Scientific Park, where ADM scientists undertake activity including next-generation genome sequencing and early-stage testing of new bacterial strains. By ADM

Formulation

5+ MIN

5.0

15/02/2023

ADM president: Feed additives market – 2023 and beyond

According Roig, there are 4 main dynamics will affect the 2023 additives market. Global politics 'One factor is global politics,' he explains. 'We have increased tension between large countries, mainly US-China tensions and the upheaval with Ukraine and Russia. This has caused a second factor to emerge, disruption of global value chains and a corresponding increased focus on food security.' Food security Roig notes that the entire global feed industry is re-evaluating which feed product categories are critical to food security and which products should be produced in-country. He notes that as it stands right now, most global production of vitamins and amino acids and fermentation-based feed ingredients are primarily produced in China. Energy security & prices Energy security has also come to the forefront due to rising global political upheaval. Because of this, says Roig, the cost of making feed additives and getting them to market will continue to be high going into 2023. Europe is experiencing natural gas and electricity shortages, and high electricity and energy prices are also now the norm in North America. High fuel costs are also making global transport of ingredients and finished products by sea and land more expensive. 'This is challenging for the industry in terms of margins and pricing,' says Roig. Plant-based protein food A fourth factor is the growth of plant-based protein food products over the last few years, mostly in North America. 'There are many lessons being learned about how to make plant protein foods efficiently, and if cost points come down and if it is scaled up as some expect it to scale, we may see plant protein replacing animal protein at scale in developing countries,' Roig explains. 'There may be a bridge effect in this, a leap-frogging like what happened with phone technology, skipping over landlines and going right to cell phones. Also, the cost curve for making cultured meat is coming down and this may also displace livestock production.' 2022 summary When asked the major issues for the global feed industry in 2022, Roig says that supply has not been too problematic. However, there has been a lowering of demand due to a mix of cost pressures and inflation for consumers. That is, people are eating less meat. Demand for feed ingredients has also been lowered by the decreased production of pigs and poultry due to African swine fever and avian influenza outbreaks in various parts of the world over the last few years. However, Roig says aquaculture has been growing and that will continue to occur. There have been supply chain disruptions for some specific ingredients, but Roig notes that some categories like amino acids have benefited from these disruptions. That is, because of tensions with China, amino acid firms based in other countries have stepped in to fill market needs. Looking forward to 2023 – 4 major levers 'When I look at 2023 and beyond, I think the industry will have to keep a close watch on 4 major levers,' says Roig. Industry structure 'One is whether the industry structure and competitive environment is sustainable. We have seen much consolidation in Europe and China and other parts of the developed world in the compound feed industry (commercial feed) but in the ingredients and pre-mix sector as well. How these industries will scale themselves in this tough environment remains to be seen.' Conversion efficiency The industry must also keep watch on the importance of conversion efficiency. Roig explains that a great deal of progress has been made with increased feed efficiency in developed countries but there is also a lot of opportunity there for further progress. 'If you can get it higher in poultry and aquaculture, the more animal protein will become viable compared to plant-based protein and/or cultured meat,' he says. Consumer demands The feed and livestock industries must also stay aware of the consumer desire for health and wellness – including a desire for less or no antibiotics in livestock production, especially those used for disease prevention and higher production efficiencies. More care must be taken to address livestock health, says Roig, and reduce early-stage mortality. Therefore, Roig foresees health and welfare product categories will see stronger demand – both those that prevent disease like mycotoxin binders and probiotics, particularly in early-stage production, and botanical products that improve digestion, reduce inflammation and increase feed uptake. One example from ADM is their AquaTrax product, based on published peer-reviewed research on Pichia guilliermondii, a novel yeast with demonstrated positive effects on shrimp immune function. Among other findings, multiple in vivo challenge tests involving various pathogens show approximately 80% higher survival rates in shrimp fed P. guilliermondii compared to the control. Sustainability 'Sustainability is also an issue the industry must leverage,' notes Roig. 'People want the least climate impact and water use possible in meat, milk and egg production. Mechanisms to mitigate greenhouse gas emissions in the whole life cycle of the animal are needed. The use of seaweed additives in the diet of ruminants to virtually eliminate methane has been a huge step forward. About a fifth of the world's carbon emissions are from agriculture and most of that is from ruminants. It will continue to be important for livestock farming to prove that it is reducing emissions.' On the ingredient availability side, Roig says shipping rates have calmed down, and production of amino acids and vitamins has resulted outside of China. 'So availability concerns for ingredients are not high,' says Roig. 'The costs are still high but they are on an improvement trend.' Long term outlook Roig predicts that over the next 5 or 10 years, growth rates in the industry will not be what has been expected. 'Consolidation is part of company strategic thinking now, and the realisation that we are in a lower demand environment, as mentioned, will make the industry look at animal health, sustainability and higher conversion efficiency,' he says. There will be growth in animal-based protein (layers and broilers) in Africa, if it is not displaced by plant-based protein, and Roig also expects growth in poultry production in Mexico. 'The other market that will perhaps grow the most is aquaculture and swine in Asia,' he says. 'Those in Asian countries are not willing to move away from animal protein anytime soon. Fish and poultry are the most efficient feed converters, so that's where the growth will be, and they also offer good value proposition for sustainability and animal health.' Environmental impact figures According to a 2013 FAO study, animal agriculture accounts for 7-8 gigatonnes of CO2-eq emissions, or about 15% of the total 50 billion gigatons emitted globally. Global estimates of emissions by species* Source: All About Feed

Vegetable Origin

2+ MIN

5.0

14/10/2022

ADM celebrates 120th anniversary

ADM, formally known as Archer-Daniels-Midland Company and one of the world's largest human and animal nutrition companies with 41,000 employees in around 200 countries, celebrated its 120th anniversary. ADM was incorporated on Sept. 30, 1902, in Minneapolis, Minnesota, as a regional linseed oil business. Today, ADM – with 41,000 employees serving customers in nearly 200 countries – is an indispensable global agricultural supply chain manager and processor, a premier human and animal nutrition company, a trailblazer in groundbreaking solutions to support healthier living, a cutting-edge innovator in replacing petroleum-based products, and a leader in sustainability. 'Over the past 120 years, our company has evolved from a regional startup into an irreplaceable leader providing needed nutrition to billions around the globe. We've transformed at many moments along the way, but unlocking the power of nature to enrich lives has always been at the heart of everything we do,' said Juan Luciano, Chairman and CEO. 'Every day, our 41,000 colleagues demonstrate our purpose and our values, not only by feeding the world, but by building a stronger, better future, whether through innovations in sustainability, or our commitment to the communities where we work and live. I'm proud of the work they've done and the journey we've taken together, and I'm excited about our bright future.' To celebrate the milestone, ADM conducted a Fight Hunger Challenge to bring employees together around the world to raise money for hunger relief. As a result, ADM Cares has donated 1.2 million meals in partnership with the World Food Program, Feeding America and Food Banks Canada. by ADM

Dogs

3+ MIN

5.0

25/10/2021

Pet humanization one of top consumer trends noted by ADM

Drawing on research from its Outside Voice consumer insights platform, the company's top trends for 2022 point the way for ADM's innovation, renovation and development platforms, the company said. Many of the trends are being shaped by the coronavirus pandemic that has lingered for the past 18 months. 'Consumers today continue to navigate a tumultuous environment that has uprooted every aspect of their lives,' said Brad Schwan, vice president of category marketing at ADM. 'This has led forward-thinking brands to develop new solutions purpose-built to help consumers establish a sense of normality for themselves, their families and their pets. We're seeing everything from foods, feeds and beverages that promote gut health to plant-based meat and dairy alternatives to biodegradable packaging.' Heading into the new year ADM said it expects consumers to be more proactive about supporting their mind and body through a balanced approach to diet and lifestyle. The coronavirus pandemic has placed renewed interest on mental well-being, and ADM said it expects more consumers to seek effective ways to cope with stress and anxiety. Thirty-seven percent of global consumers expect the snacks they eat to improve their mental well-being, according to ADM's Outside Voice research. Another continuing trend is the shift toward plant-based lifestyles. ADM's research shows a flexitarian approach to eating has become mainstream as consumers look to functional, wholesome, plant-based nutrition to support healthy, environmentally friendlier lifestyles. Alternative proteins are likely to account for 11% of the total protein market in 2035, ADM said, driven primarily by COVID-19, which has accelerated interest in plant-based as a health-forward alternative for consumers who are paying attention to their body's nutritional needs. Third, consumers are seeking foods, beverages and supplements that support gut health and overall well-being. As a result, ADM said awareness of the microbiome as central to wellness has grown over time. Data from ADM Outside Voice indicates that 58% of global consumers are aware of the potential benefits that bacteria in the digestive system can have on their overall health. Clean label has been trending for several years and ADM said it expects clean and transparent sourcing to remain a key trend heading into 2022. Most recently, consumers have used the COVID-19 pandemic as an opportunity to place an increased emphasis on learning where their food comes from and trying to ensure the health and safety of themselves, their families, their pets and their communities. ADM said 58% of global consumers say they will be more attentive to locality claims as a result of COVID-19. The humanization of pets has taken on greater significance and will continue to shape trends next year, ADM said. In fact, many consumers are transposing their purchasing values and preferences onto their pets. ADM Outside Voice found that 30% of global pet owners spent a significant amount of time researching the best food options in the last year. Precise and responsible animal feeding, and the interconnectedness of the animal product supply chain is another trend top of mind for today's consumers, according to ADM. ADM said companies are taking steps to provide digital documentation explaining how animals are raised, particularly related to its consumption of antibiotics and/or growth hormones. Nearly half (49%) of consumers are willing to pay a premium for products with high quality assurances and verifiable safety standards, ADM noted. A seventh emerging trend is sustainable goodness. With nearly half of global consumers now more attentive to sustainability claims there has been a surge in demand for ethical production and sustainable sourcing practices — such as regenerative agriculture and carbon negative production to protect the food supply of the future, ADM said. Brands are responding by taking positions on environmental matters, aiming to reflect their commitments to increasing the sustainability of their production and distribution systems. Finally, the importance of advanced renewables and biosolutions is coming to the forefront. ADM noted research showing 38% of global consumers are now willing to pay more for products made with sustainable materials. Additionally, conscientious consumers are paying close attention to seeking food, personal care and home care products that support the needs of their families, the environment and their local communities. by Eric Schroeder - Pet Food Processing

Market Information

4+ MIN

5.0

09/09/2021

ADM Significantly expands pet treat and supplement capabilities with planned acquisition of majority stake in PetDine, Pedigree Ovens, The Pound Bakery

September 8, 2021. CHICAGO - (BUSINESS WIRE) - ADM (NYSE: ADM), a global leader in human and animal nutrition, announced today that it has reached an agreement to acquire a 75% ownership stake in PetDine, Pedigree Ovens, The Pound Bakery and NutraDine (P4 Companies), premier providers of private label pet treats and supplements. The transaction values the four enterprises in their entirety at approximately $600 million, and ADM will acquire 75% of the equity, subject to customary adjustments. 'We're continuing to advance our growth strategy and transform our company with targeted investments that expand our capabilities in large, high-growth segments, including pet nutrition – a key focus of our growing animal nutrition business,' said Vince Macciocchi, President of ADM's Nutrition business. 'Annual global sales of pet food total $110 billion, forecast to grow to $140 billion by 2026 – with pet treats an even faster-growing category. We've grown to meet that demand, from the construction of new production facilities, to the additions of pet treat and food provider Crosswind and Neovia's global pet nutrition business, to the opening of our industry - leading Animal Nutrition Technology Center in Decatur. Now, we're taking the next step in our strategic journey with a majority investment in P4. We're excited by this agreement, which we expect to exceed our hurdle rates and financial return targets as we partner with an innovative, high-growth business with a great track record of working closely with customers around the globe to develop and produce best-in-class pet products.' With more than 300 employees, P4 Companies provides a complete range of highly customized pet treat and supplement products to more than 650 customers in 15 countries. Their offerings include baked treats, semi-moist treats, long goods, blends, unique proteins, soft chews, liquids and powders, many of which are developed to meet the demand for clean labels. P4 has delivered strong revenue and profit growth in recent years, and has invested in new product lines as well as expanded its production capacity. ADM will also acquire P4's 300,000+ square feet of state-of-the-art production and innovation facilities in Illinois and Colorado. In addition, the agreement includes a put/call option under which the parties could agree for ADM to purchase the remaining 25 percent at an agreed-upon market price in the coming years. 'As a group, our companies PetDine, Pedigree Ovens and The Pound Bakery, have become clear leaders in the pet supplement and treat space,' said Preston Munsch, CEO, PetDine. 'Through innovation, R&D and manufacturing expertise, we have become important strategic partners to brands around the world. Through this new and exciting partnership with ADM, we will be able to advance our customers' lead positions in the pet industry even further. Through their extensive list of ingredients combined with their Animal Nutrition Technology Center and worldwide resources, we are excited to merge our knowledge and expertise to continue to be innovative leaders in the pet industry.' 'ADM's global resources - from ingredient supply chain, transportation and their emerging pet nutrition platform - are what we were looking for in a partner', said Kurt Stricker, owner, Pedigree Ovens. 'We are excited to continue our strong growth path together'. 'Joining the ADM family gives us the ability to elevate and expand our product offerings to our customers and continue to support their ideas and growth,' said Lexie Berglund, President, The Pound Bakery. Like ADM, P4 has shown a strong commitment to sustainable practices; in 2020, they announced that their Harvard, Illinois, production facility was now powered with solar power, with the capacity to offset almost 1,500 tons of greenhouse gas emissions annually. 'Two years ago, ADM identified the humanization of pets – owners who want to provide their companion animals with the same kind of clean, simple, healthy products they eat themselves – as an important growth trend,' Macciocchi continued. 'This partnership positions ADM perfectly to continue to meet those needs. We're excited to partner with the great P4 team, and we look forward to collaborating with them to combine their best-in-class customized solutions with ADM's extensive pantry of ingredients, natural colors, and flavors; application development expertise; rapid prototyping and innovation capabilities; and global go-to-market footprint.' The proposed transaction is subject to regulatory approvals, and is expected to be completed in the coming weeks. Forward-Looking Statements Some of the above statements constitute forward-looking statements. ADM's filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements. About ADM At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We're a global leader in human and animal nutrition and the world's premier agricultural origination and processing company. Our breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over. Learn more at. Author: Jackie Anderson ADM Media Relations Source: ADM

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