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Opteinics Digital Analytics Unlock Insights for More Sustainable Feed and Animal Protein—INDUSTRY PERSPECTIVE


Source: BASF Animal Nutrition via Feedinfo

04 March 2021 - The environmental impact of livestock is a pressing issue that requires immediate action. Policymakers, retailers and consumers are turning their attention towards our industry and demanding a change in the way we produce animal protein. For the industry as a whole to take its first step towards change requires not only acknowledging the environmental impact of protein production but also quantifying it.

We know feed is the dominant factor when considering the total environmental impact of animal protein across the different species. By working on feed formulation, we can positively impact, directly or indirectly, up to 80% of the overall environmental footprint of animal protein.

Today, the key requirements of feed optimization are two-fold: adequate nutritional content and minimum possible cost. The focus on these important factors will remain, yet this third dimension — environmental impact — is also gaining much greater importance moving forward.

This is the challenge that led BASF Animal Nutrition to launch Opteinics, a new digital solution to enable feed and animal producers to assess and improve their environmental impact, directly at the feed formulation stage (formerly AgBalance® Livestock project). Making use of Life Cycle Analysis (LCA), a technique that assesses the environmental aspects and potential impacts associated with a product, Opteinics (Optimizing Protein Analytics) provides transparency on the impacts of both compound feed and the final animal protein product.

Ahead of the commercial launch, Feedinfo was able to talk to Manuel Rez, Head of Product Management Performance Ingredients & Marketing Animal Nutrition, and Tom Battagliese, Senior Manager, BASF Global Sustainability Metrics, to discuss what distinguishes this digital solution from other offerings and how BASF Animal Nutrition products and services play a relevant role in reducing the environmental impact of feed and animal protein.

[Feedinfo] What is Opteinics? How does it differ from other offerings in the market?

[T. Battagliese] Opteinics is a digital LCA solution, connected to feed formulation software, that quickly delivers the environmental impact of feed and animal products to identify opportunities for improvement. The key difference of our solution comes from its integration with feed formulation software: thanks to its direct data link, time-consuming data input is avoided.
With a simple user interface and minimum data input required, any nutritionist or formulator can understand the environmental impact of the feed they formulate and adapt their formulations to minimize their impacts – and therefore, easily achieve double-digit percentage reductions. Essentially, Opteinics democratizes the access to sustainability insights.
Users of our tool can not only improve their sustainability performance, but also simplify data collection for environmental reporting, innovate their portfolio and enhance their marketing, without in-house expertise or cost intensive consultancy studies.

Tom Battagliese, BASF

Tom Battagliese
Senior Manager
Global Sustainability Metrics
BASF


[Feedinfo] When does Opteinics launch? What clients will be able to make full use of the software at that time? Are further updates/versions planned for this year?

[T. Battagliese] On March 23, 2021, BASF Animal Nutrition will premiere the solution in an online webinar including a live demo. For more information and to register, any interested party can get in contact with us (click here). We will have a global roll-out addressing feed millers, integrators, and large cooperatives, as well as farmers and farm advisors.
A first update of our tool is planned later in the year, with the inclusion of environmental impacts directly as part of the feed optimization calculations. In practice, this means going beyond least-cost formulation to least-cost and least-environmental impact formulation. Furthermore, we are exploring the synergies of our tool with other solutions in the market and are open for further collaboration opportunities.

[Feedinfo] What are the types of different feed formulation software that Opteinics can integrate with? What extent of the feed formulation software market do these systems represent?

[T. Battagliese] Opteinics can principally be connected to any feed formulation software through a standardized interface. In late 2020, BASF Animal Nutrition announced a partnership with Adifo, which provides the BESTMIX® feed formulation software and serves a significant portion of the total feed formulation market. This partnership allows advanced functionality developments and the direct integration with the BESTMIX® software.

[Feedinfo] Is the methodology used by BASF a proprietary development? What is the source of the data used?

[T. Battagliese] To assure the quality and reliability of our solution, we are undergoing an independent critical review to verify that the tool conforms with major standards for environmental impact calculations, including ISO LCA norms and FAO’s Livestock Environmental Assessment & Performance Partnership (LEAP) guidelines. We are also aligning with the European Product Environmental Footprint Category Rules (PEFCRs) and use impartial databases such as the Global Feed LCA Institute (GFLI) and emissions factors from IPCC and other globally accepted sources. Thus, any user can rest assured that there is no conflict of interest when using our tool, and neutral data of the highest quality is being provided.

[Feedinfo] Which environmental impacts does Opteinics address? What factors are considered when Opteinics calculates environmental impact?

[T. Battagliese] With Opteinics, the user can calculate the environmental impacts across 10 different categories such as climate change (carbon footprint), water use, or eutrophication (nitrogen and phosphorous runoff), to name a few.
All relevant input factors are considered. This starts with the origin of feed ingredients used throughout the entire production process, and covers transportation of raw materials to feed mills as well as on farm, continues with the type of energy used (e.g. renewable or conventional), as well as the impacts of factors such as housing systems, the manure management used, and animal performance parameters on farm.
These impact factors can either be represented with standard values or adapted accordingly in case better and more specific knowledge exists. And the feed compositions are directly imported from the optimization software. With this procedure we achieve an easy and fast process, which does not require the specific know-how of an LCA specialist to use the tool.

[Feedinfo] What drove BASF — primarily an actor in the feed additives space — to put its weight behind a software project like Opteinics?

Manuel Rez
Head of Product Management Performance Ingredients & Marketing Animal Nutrition
BASF

 

[M. Rez] We see that the animal protein market, which we ultimately serve, is confronted with increasing concerns of the end consumers regarding sustainability. At the same time, there is a growing global demand for animal proteins. Therefore, we need to define a way forward which respects consumers’ concerns and at the same time fulfils the nutritional needs of the 10 billion people who will be on this planet by 2050.
While we have been consulting for customers in the feed industry on sustainability for a long time, we wanted to expand our global reach by building a scalable solution. And scalability in this regard goes hand in hand with digitalization. So, we put our expertise in sustainability to work with the digitalization know-how of our greater BASF family to build Opteinics. Through digital means, feed optimization becomes part of the solution and not just the problem. And most importantly: our results show that major impact reduction can be achieved with very little to no increase in cost in many cases.


[Feedinfo] How does Opteinics build on previous initiatives such as eco-efficiency analyses and LCA studies at BASF?

[T. Battagliese] More than 20 years ago, BASF pioneered the LCA-based Eco Efficiency Analysis. Since then, we have conducted hundreds of studies in the field of animal nutrition. Already in 2003, we published a comparative study of different feeding systems for salmon, followed by studies with focus on the meat value chain. In addition, our expertise and capabilities in the field of sustainability have added value to numerous companies and business associations around the world.
This set the basis to build the ground-breaking Opteinics.

[Feedinfo] To what extent is this part of a larger push into digital innovation at BASF Animal Nutrition?

[M. Rez] To enable our industry to increase efficiency as well as reduce its environmental impact is at the core of what we do. This applies not only to feed additives but also digital solutions. In this regard, Opteinics is complemented by our performance livestock management software Cloudfarms - which is setting the standards of the industry for pig production.
Thanks to its cloud-based nature, data can be accessed and entered anywhere on a laptop, tablet or smartphone. Cloudfarms supports all pig production processes including full line, breeding, multiplication and nucleus management. It is particularly well-suited for multi-site farms and it essentially enables pig producers to focus on what matters – managing the pigs, and not on data entry and consolidation – and thus allowing them to save up to 10% of valuable time.

[Feedinfo] BASF has said it is “prioritizing sustainable solutions, technologies and production processes in every area of our business.” How does BASF generally measure the success of its sustainability commitments generally? And can you give specific examples related to animal nutrition?

[M. Rez] Sustainability is an integral part of our corporate strategy – and we went from words to action by setting specific targets for each sustainability commitment. Today, BASF is working towards carbon neutral growth until 2030, which results in a significant reduction of the carbon footprint of our products we sell. To reduce carbon further and improve production processes we need to further invest in new technologies. In parallel, we are working on increasing the amount of renewable sources for our production.
This brings me to a good production example: vitamin B2. BASF pioneered the biocatalytic production of vitamin B2 in 1987. For more than 30 years, BASF has produced this vitamin based on renewable raw materials in a natural fermentation process. At BASF, we use a unique production strain – the fungus Ashbya gossypii – that converts nutrients such as vegetable oils into riboflavin. The fungus is closely related to baker’s yeast and is a natural producer of vitamin B2. Accordingly, this technology can be considered the one closest to nature in the current vitamin B2 technology environment.
Furthermore, early on in the innovation process we challenge our products holistically through the Sustainable Solution Steering methodology, measuring how well the product fits to the main sustainability challenges in the value chain and what we can do to achieve a sustainable production. Through our innovative feed additives, we help the animal farmer to achieve a resource-saving and environmentally friendly production while keeping animal wellbeing in sight. For example, our Natuphos® E improves the farm’s phosphorus balance by tailoring the animal feed more closely to the animal requirement, hence minimizing losses through excretion which is good for the environment.

[Feedinfo] Is it fair to say that sustainability has taken on a greater strategic focus for BASF Animal Nutrition in recent times? How has the emphasis placed on sustainability changed?

[M. Rez] Definitely. Although it has always played a key role in our BASF purpose, sustainability is getting an even greater focus in our business strategy. We are committed to make all possible efforts to reduce climate change and other environmental issues with efficient products, and more importantly, participate in healthy, innovative and environmentally-friendly value chains. With Opteinics and our Performance Ingredients portfolio, such as enzymes, organic acids and mycotoxin binders, we are offering solutions which are critical in this respect.
Along the animal protein value chain, BASF’s products are known for their solid and science-based performance. But a very significant aspect often overlooked is their contribution to the preservation of our environment. Moving forward, we want to highlight this benefit even more strongly – which is why we developed our new BASF Animal Nutrition positioning: “The Science of Sustainable Feed that Succeeds”.

[Feedinfo] What else can we expect out of BASF Animal Nutrition in terms of sustainability initiatives over the next year?

[M. Rez] First of all, we are working on releasing product carbon footprints to our customers for all our products by the end of the year. This will help our customers to have more transparency on the levers at their disposal to reduce their own supply chain impact.
Additionally, we are working on a variety of interesting topics, which are all focusing on ultimately supporting the animal farmer. We will strengthen our focus further on enzymes, gut health and animal well-being to ensure safe and efficient feed. In 2021, the environmental impacts of animal feed will get an even stronger focus in our portfolio.
Last but not least, we also strive to actively contribute to supporting our customers as they navigate the major challenges in the value chain over the coming years. In this regard, BASF is currently evaluating different methane reduction opportunities.

Published in association with BASF Animal Nutrition.