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Feed Additives 2018: Human Nutrition Trends Also Spurring Animal Nutrition M&A Activity – Feedinfo

26 September 2018 – Further industry consolidation can be expected in the global feed, premix and additive sectors in 2018 and 2019. Providing an overview of animal nutrition mergers and acquisitions, Simon Duke, Editor-in-Chief of Feedinfo News Service, said M&A patterns will continue to reflect current industry trends. Generally-speaking, animal nutrition companies want to reduce their reliance on complete feed and premix, and most investments and acquisitions are geared towards high growth segments.

Obvious areas of focus are natural or bio-based inputs, alternative ingredients, aqua feed, animal health or even information technology. But Duke pointed out that when looking at the global picture for animal nutrition, some of the same trends as in human nutrition can be noticed. Much like human nutrition, animal nutrition customers are becoming even more health conscious and are increasingly looking for organic ingredients as well as antibiotic-free and non-GMO products.

“We mustn’t underestimate the cross-selling that exists within some companies who cater to both animals and humans. Some companies have a human nutrition segment, and those without, may eventually want one too”, Duke told attendees of Feed Additives 2018 in Amsterdam today.

According to Duke, this is reflected in the strategies of various large industry players.

ADM’s gradual portfolio transformation in recent years and plans to acquire Neovia in July 2018 – placing the company among the largest animal nutrition players – confirms this. Earlier this year, ADM combined its human and animal nutrition businesses into a single unit. Neovia now adds both geographic and product diversity. Citing ADM senior vice president Vince Macciocchi, Duke said Neovia, by providing global capabilities that span human and animal nutrition, will not only boost ADM’s animal nutrition business, but also its entire integrated nutrition platform.

By |2018-09-26T17:04:27+00:00September 26th, 2018|