4 December 2020 - As 2020 starts to draw to a close, business leaders around the world have been recovering from global upheaval while simultaneously taking steps to prevail against many future unknowns. Whether it’s ensuring supply chain resilience, forecasting economics of unprecedented times, or addressing shifting trends in consumer preferences, companies have had to be agile in their thinking and actions. The global animal nutrition industry, particularly those working in feed additives, has not been immune to this.
“It is, without question, been an unusual and challenging year,” said Juan Ignacio Fernandez, who was appointed managing director at AB Vista in early September.
COVID-19 & The Global Animal Nutrition Industry
Growing up in northern Spain as part of a family who has been in agribusiness for a “very long time,” Fernandez says he spent most of his summers surrounded by animals and working the land.
|
“These childhood experiences forged a real connection and understanding of agriculture, which has lasted all my life,” he said. He continued this experience by specialising in animal production as an agricultural engineer. Accompanied by an MBA and other animal nutrition qualifications, Fernandez now has over 25 years at different feed additives companies under his belt even before he joined AB Vista in 2015. Now, nearly three months into a role Fernandez inherited during a time of global change and uncertainties, he has identified both challenges and opportunities in the space when it comes to the pandemic. |
|
Juan Ignacio Fernandez“COVID-19 is impacting globally the animal nutrition industry, although in general, much less than other industries or sectors, where the pandemic is hitting dramatically,” he said. Despite this, however, Fernandez wagers that consumers will be like those in the majority of other industries when it comes to closely examining and prioritising their fiscal circumstances.
“I have no doubt that the economic situation means customers are under increasing financial pressure, meaning there will be ongoing demand to examine costs more closely,” he said. “This means customers are much more likely to question products included in formulations and perform a closer analysis as to whether these are essential or can be stripped out of the diet.”
He turns this into a positive for companies who can maximise value to customers, citing AB Vista’s work with their customers during the pandemic.
As for a post-COVID world, especially as vaccination may be on the horizon, Fernandez thinks the focus on cost savings will remain a priority for feed additive producers and their customers.
“This customer shift to a cost-saving focus will highlight the current market price erosion and the challenge of low-cost alternatives entering the market. It will be more important than ever for feed additive producers to demonstrate the added value that they can bring to customers, whether that is through product expertise, technical services support, or intelligence related to the individual customer operation,” he said. “These factors will be important for customers to consider when choosing an additive supplier to support, particularly through these difficult times.”
Challenges Outside of COVID-19
It’s not just the pandemic that Fernandez thinks the feed additive industry needs to bear in mind. Other large-scale trends in consumer thinking and behavior will largely shape the future of the industry.
“Animal welfare has become increasingly important from a consumer-awareness perspective. We are also seeing increased attention on the environmental impact of protein production and a negative perception of agriculture,” he said. “While the level of interest and focus varies depending on region and customer, it will be increasingly important for feed additive companies to become more proactive in this area.”
Fernandez says AB Vista is working to address both these concerns as well as the continuing need to drive performance further by evaluating the impact of production and changes to the production system on the environment.
“This area brings significant opportunity, specifically around the use of enzymes, as better understanding of the feed formulation and ingredient quality, and the knowledge of the impact of enzyme applications, means we can better recommend the use of enzymes to change feed formulation” he said. “This can mean using ingredients with lower cost and environmental impact or to improve animal performance.”
He says that working closely with customers will shape specific recommendations that will help them reach objectives while simultaneously measuring outcomes to obtain other economical, performance, and environmental benefits.
Of course, being a British-based business, AB Vista will also keep an eye on the potential impact of Brexit on both the business and the market, especially as the end of the year looms.
“The biggest challenge we have with Brexit is the uncertainty that it brings,” Fernandez said. “Neither us in the feed industry, nor our customers, can predict what effect it will have on the market. Due to this, it is challenging to ensure the right precautions are taken to prepare effectively.”
“Plans are being updated to prioritise flexibility and ensure our Great Britain and Ireland business is able to trade smoothly post Brexit. As a business, we are in the positive position whereby the majority of our trading takes place outside of the UK, so we’re not anticipating any significant issues,” he added.
What’s Ahead for AB Vista
So, what does the future hold for AB Vista regardless of what happens in global public health, politics, and economics?
Fernandez identifies consolidation and expansion, both, as priorities.
“AB Vista is already a global leader in the feed enzymes arena. We want to consolidate this position in the coming years, extending our knowledge and developing greater understanding about the different substrates like phytate and fibre,” he said, explaining he wants to continue applying the company’s strengths in the feed enzymes space to the wider feed additive market.
“At the same time, we continue to increase our participation in betaine and live yeast segments for different species including poultry and swine as well as ruminants and aqua where our share in different markets continues to grow.”
In the end, Fernandez is looking forward to the work he can do at the helm of AB Vista.
“These are obviously strange and challenging times to be taking over the leadership of a global company” he said. “But I am really excited – and very proud – to have taken on the role.”
