27 September 2022 - The animal nutrition sector is poised to benefit from industry outsider investment moving forward as established companies and start-ups providing innovative technologies meet the criteria of some of the trends investors are keen to support.
During a panel on Day 2 of the Feedinfo Summit, Alexander Belderok, senior partner at Roland Berger, and Juan Zaffora, regional startup manager at CLC South, European Institute of Innovation & Technology, argued that the animal feed sector can benefit from some trends they have seen with regard to areas which are ripe for investment right now.
Belderok highlighted the protein transition (alternative sources of protein), the animal microbiome, and novel feed ingredients (biotech, phytonutrients, single cell protein, etc.) as the areas attracting the most investment at the moment.
Zaffora added that he is also seeing investments in the transition towards sustainable agriculture and the circular economy, as well as digital traceability and personalised nutrition as attractive segments. Zaffora also said that investors are on the lookout for technologies that aim to help farmers manage that transition towards sustainability. Capturing carbon and carbon credit schemes are particularly trendy in this regard.
“The economic environment and higher costs for farmers are ongoing and we need to tackle that,” he commented. “Farming is at the heart of everything.”
Belderok nodded: “The economic climate is deteriorating, creating uncertainty. Investors will invest in sustainability and food security in the long-term. They seek to invest in those areas with that help improve ESG credentials.”
“Also, the technological component of animal nutrition will increase, so it’s about [investors] capturing the value out there,” he added.
Zaffora agreed that investors do have long-term projects and not just short-term investments aimed at obtaining the greatest possible return on investment in as little time as possible. They offer more vision and commitment to the food security and sustainability issue, he said.
In light of the current inflationary environment, uncertainty remains bad for investment, Belderok and Zaffora said.
“Investors are looking for projects that are resilient and create resilience,” Zaffora noted.
