The Asia-Pacific (ASPAC) livestock feed market is huge, with Asia being the world’s largest feed-producing region. However, it is also facing unprecedented challenges, with escalating raw material costs, sustainability concerns and issues such as African Swine Fever (ASF) driving large-scale change.
With 40 years of experience in the region, Danisco Animal Nutrition & Health, an IFF business, is familiar with its livestock sector and its development. In today’s Industry Perspectives, Arno de Kreij, Marketing Director ASPAC, Danisco Animal Nutrition & Health, discusses why and how it is changing, and how the business is responding to this.
Besides this structural change, he explains how it is providing leadership in some of the most influential industry trends such as low protein diets, improved sustainability and the use of alternative raw materials. He also highlights the latest information it presented to attendees at recent ASPAC region events, including the International Conference on Poultry Intestinal Health (ICPIH), the Australian Poultry Science Symposium (APSS) and The China Feed Show.
[Feedinfo] It would be great to start by taking an initial look at the ASPAC market, as it’s one which is very diverse. Can you talk us through its size and diversity?
|
[Arno de Kreij] Asia is the largest feed-producing region, with China responsible for more than half the total volume. This makes China the largest feed-producing country globally, with India, Japan and Vietnam also featuring in the top ten. Of course, all these countries differ significantly in terms of industry structure, operational practices, raw material availability and use, as well as animal breeds and climate. Consumption patterns also vary, with wealth a highly influential factor along with cultural differences - such as a lack of pig consumption in Indonesia and India, compared to a high share in China. All of which creates unique conditions. |
Arno de Kreij |
[Feedinfo] Producers in ASPAC face a variety of issues, from African Swine Fever (ASF) and Avian Influenza, to escalating raw material costs and climate change related weather events. It’s quite a list and must be impacting the sector – what are the biggest changes you have seen and why?
[Arno de Kreij] Economic and sustainability concerns continue to drive fundamental change in the way diets are formulated in the ASPAC livestock industry. Escalating raw material costs, regulatory pressure to reduce carbon emissions and growing consumer demand for greater sustainability are major issues. Restrictions on antibiotic growth promoters are also in place in a growing number of countries across the region and, even where they are allowed, animal producers are very aware of consumer preference for antibiotic-free meat. Meeting these demands while maintaining performance and profitability is a major challenge.
At the same time, we’ve seen major developments in several countries across the region that have further important implications. When ASF hit China, for instance, producers switched to broiler production if they could, and consumers started to eat more poultry meat out of necessity. Even though swine production has recovered, the shift in consumer preference appears permanent and continues to move away from pork to poultry which is seen as a healthier meat. This sparked China’s swine market crisis, which has led to a global oversupply of pork and pressure on all export-oriented swine producers – particularly in the USA where they are now facing poor profitability. China meanwhile is struggling to reduce its sow herd, with a 3-4% reduction – equivalent to 1.5 million breeding sows – likely needed to stabilise the sector.
In South Korea, the introduction of new regulations mandating a reduction of crude protein in grower/finisher diets to 16% aims to reduce reliance on imported soybean meal and environmental impact – and we expect other governments in Asia to soon follow suit. Interestingly, the bright spot in Asia’s poultry production is India, where the sector is booming, but this market remains relatively fragmented so we expect to see further consolidation and integration.
[Feedinfo] With such diversity and varied issues, it must make supporting customers quite a challenge at times. How have you set up and changed your operations to address this and best serve your customers?
[Arno de Kreij] Our role is to actively support producers with novel insights and products that help to address some, if not all, of these issues. Our focus is on providing customers with science-backed solutions that improve efficiencies and performance, but also respond to some of the most influential industry trends such as low protein diets, improved sustainability and the use of alternative raw materials.
That’s why we’ve invested in building a robust infrastructure, with blending facilities in India, China and Singapore and excellent distribution partnerships in place in several countries across the region. Our local sales and technical experts also provide valuable on-the-ground support, which is further strengthened by our global IFF team. After more than forty years as a trusted industry partner, we remain fully committed to our customers.
[Feedinfo] One of your aims is to actively support producers with novel insights and products that help to address the issues they face. From previous Industry Perspectives articles, you have talked about the extremely high interest across the ASPAC region in lower protein diets that can maintain healthy performance, and how you are helping nutritionists push the boundary on this. Can you update us on progress with this approach in this region?
[Arno de Kreij] Even though each country has its own regulatory framework, we continue to see strong interest in lower protein diets across all ASPAC markets. Every producer is facing ongoing disruption, whether due to geopolitical conflicts in major grain exporting countries or the effects of climate change, so reducing costs remains a common goal regardless of location. We also know that this trend is driven by high input prices and regulatory change, as seen recently in South Korea and China, so carrying out local studies in commercial settings and presenting the results at regional and local industry events remains a key part of our customer strategy.
[Feedinfo] Attending professional events is an important part of your business, and your colleague Fajrin Sidiq is speaking at the ICPIH conference session 19 April on the topic of ‘Essential oil and probiotic combination: A gut health powerhouse tackling subclinical dysbiosis’. Can you tell us more about how this will benefit ASPAC producers?
[Arno de Kreij] Given that gastrointestinal health is known to benefit animal performance – and 70% of an animal’s immunity is found in the gut – fostering a strong gastrointestinal system through targeted nutrition should always be a key part of every feed strategy. A healthy gut not only prevents infectious disease, it also provides essential energy and immunity to the animal. The key to production success, therefore, is the development of a healthy and mature microbiota as early as possible in the production lifecycle.
To do so effectively, producers need to build a strategy around the approach of nutribiosis, where nutrition, the microbiome and gut, and immune function are in balance. By positively influencing all three pillars with the right combination of additives and nutrients, it’s possible to achieve a ‘favourable nutribiotic state’ and deliver the sought-after benefits. Most importantly, although enzymes and probiotics undoubtedly offer individual benefits, one of the most exciting areas to explore is what happens when they are used together. By focusing on this topic at ICPIH, we aim to build a greater understanding of nutribiosis and explain why our research demonstrates a clear opportunity for producers to make considerable gains.
[Feedinfo] You have also attended the APSS conference and, more recently, the China Feed Show on 18-20 April. What were you talking about or demonstrating at these events – what were the key takeaways for producers?
[Arno de Kreij] At APSS, producers discovered how our feed solutions can be used to help them address three key industry issues: heat stress, performance improvements and nutritional health. Our experts focused on the performance benefits of our Axtra® PHY GOLD phytase, and presented further studies evaluating the effect of probiotics on a chicken intestinal cell model challenged with the causative agent of Necrotic enteritis (NE), as well as antimicrobial resistance profiles of Enterococcus spp. Associated poultry diseases and susceptibility to probiotic Bacillus were also covered.
The China Feed Show, on the other hand, was the ideal opportunity to introduce Axtra® PRIME as a solution to the challenges associated with poor feed intake, weaning stress and high feed costs in piglet production. Comprising xylanase, beta-glucanase, amylase and protease enzymes, this multi-enzyme solution is specifically formulated to improve nutrient digestion of piglets fed with high fibre diets. By working to create a healthy gut, it fosters a favourable nutribiotic state in the piglet’s gastrointestinal system and encourages good intestinal health as well as optimal growth performance. From a commercial perspective, it consistently delivers proven profitability across various dietary feeds by enabling a reduction in high-cost ingredients (such as milk products or fishmeal) and an increase in soybean meal, Dried Distiller Grains and other cheaper vegetable proteins - resulting in a ROI of more than 3:1.
[Feedinfo] There is lots going on in this diverse region and many issues to tackle. What can we expect to see from Danisco Animal Nutrition & Health (IFF) in ASPAC in future?
[Arno de Kreij] We know this is a dynamic market, so will continue to work closely with our customers to understand their individual needs and deliver the right combination of products to maintain a favourable nutribiotic state in the gut, improve animal performance and boost profitability. Our dedicated laboratories in China and India, along with experienced local support, means we are well placed to help customers across the region navigate the challenges they face by providing flexible, customised and highly-effective feed strategies.
Published in association with Danisco Animal Nutrition and Health (IFF)