Think Grain Think Feed June issue 2018

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Volume 4 | Issue 8
June-2018

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Monthly Magazine for Feed Technology
EDITORIAL COMMITTEE
Marketing & Designing
Ashwani Verma
Subscription Head
Ramesh Kumar Singh
Dr. Dinesh T. Bhosale
Former Chairman, CLFMA of India
Mr. Amit Sachdev
Indian Representative, US Grain Council
Dr. P.E. Vijay Anand
US Soybean Export Council
Dr. Suhas Amrutkar
Subject Matter Specialist, Animal Nutrition,
MAFSU, Parbhani
Dr. SN Mohanty
Former Principal Scientist, CIFA
Dr. Meeta Punjabi Mehta
Agricultural Economist
Dr. Swamy Haladi
Feed Additive Expert
Dr. R Gnana Sekar
Lead Consultant, GS Dairy Farm Consulting
Dr. Suraj Amrutkar
Assistant Professor, Dept. of ILFC,
SKUAST-J, Jammu
Managing Editor
Dr. T.K. Walli
Former Head,
Dairy Cattle Nutrition, NDRI
EDITORIAL
FAO advocates that antibiotics and other
antimicrobials should only be used to cure
diseases and to safeguard the health of humans
and animals. Director-General of FAO, José Graziano da Silva said this at
a high-level UN coordination meeting of the Interagency Coordinating
Group on Antimicrobial Resistance in France, which included FAO, the
World Health Organization (WHO) and the World Organization for
Animal Health (OIE), while discussing the current burning issue like,
“Anti-Microbial Resistance (AMR). Noting that antimicrobials are still
being used as growth promoters, especially in livestock and
aquaculture, the FAO Director-General said such practices "should be
phased out immediately."
The increased use and abuse of antimicrobial medicines in both
human and animal healthcare has contributed to an increase in the
number of disease-causing microbes that are resistant to antimicrobial
medicines used to treat them, like antibiotics. This makes AMR a
growing threat that could lead to as many as 10 million deaths a year
and over USD 100 trillion in losses to the global economy by 2050,
according to some studies. And in addition to public health risks, AMR
has implications for food safety as well as the economic wellbeing of
millions of farming households across the globe. Graziano da Silva
noted that to date only 89 countries have indicated that they have a
system in place to collect data on the use of antimicrobials in farm
animals and that "AMR will not be solved in a few years. It will need
continuous attention and guidance". Only by working together, the
international community will be able to address the challenges that
antimicrobial resistance poses to sustainable development," he said,
underscoring the important role not just of governments but also of
civil society and the private sector. An FAO AMR Action Plan seeks to
improve awareness on AMR and related threats; develop capacity for
surveillance and monitoring; strengthen governance; and promote
good practices and the prudent use of antimicrobials. As part of efforts
to implement the action plan, FAO is supporting countries and rural
communities. FAO, WHO and OIE have decided to intensify their
partnership through a Memorandum of Understanding including
increase collaboration on AMR.
Feed Additives Asia concluded its first conference in Bangkok
Recently concluded the three-day Feed Conference witnessed the
presence of senior representatives of the specialty feed ingredients
sector who came together to discuss trends in the current market and
the strategies required for success in the future. The Editor-in-Chief of
Feedinfo News Service said that all signs indicate that horizontal
consolidation and vertical integrationin the feed additive industry is
expected to continue in 2018. This issue also carries the more details of
the conference and its outcome.
TK Walli
Think Grain Think Feed - Volume 4 | Issue 8 | June 2018
Circulation & Subscription Head
Rahul Bhardwaj
Need to halt the use of
antimicrobial medicines
to promote growth in
farm animals

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Prachi Arora |
Monthly Magazine for Feed & Feed Technology
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Think Grain Think Feed is a monthly magazine published by BENISON Media at its office in Karnal. Editorial
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RESEARCH & DEVELOPMENT
05
INDUSTRY NEWS
ARTICLE
INTERVIEW
EVENT COVERAGE
UPCOMING EVENTS
Seaweed supplementation may reduce
methane emission in dairy cattle
08
18
12
Impact of Mycotoxins on
Poultry Gut
Importance of early calf nutrition on its
health, production and reproduction
Feed Additives Asia 2018
discussed the changing trends in
Asian Feed Industry
26
EVENT CALENDAR - 30
06
16
17
23
Argentina to buy US soybeans
China Reopens for US Sorghum
De Heus further expands in
Mayanmar with USD 16M feed plant
24 BioMar expansion plans remains
unaffected from low shrimp prices
Evonik Opens New NIR Lab for
Animal Nutrition in Nairobi
Feed Market Insights
by Trouw Nutrition team

Seaweed may be the super food dairy
cattle need to reduce the amount of
methane they burp into the
atmosphere. Early results from
research at the University of California,
Davis, indicate that just a touch of the
ocean algae in cattle feed could
dramatically cut greenhouse gas
emissions from California's 1.8 million
dairy cows.
“This is a very surprising and
promising development,” said animal
science professor and Sesnon
Endowed Chair Ermias Kebreab inside
the UC Davis dairy barn where he is
testing seaweed efficacy with 12
Holstein cows. “Results are not final,
but so far we are seeing substantial
emission reductions. This could help
California's dairy farmers meet new
methane-emission standards and sustainably produce
the dairy products we need to feed the world.”
Kebreab's project is the first to test seaweed on live
dairy cattle anywhere in the world. His team will
publish preliminary findings in late June and begin
further tests with additional cattle later this summer.
Methane Reduction
Testing supplements in cattle feed is not new. Kebreab
and his colleagues at UC Davis and beyond are finding
varying degrees of success with a wide range of feed
additives. Some compounds work in the lab with
simulated cattle digestive systems, but not with live
animals.
During lab tests last year, researchers in Australia
found that just 2 percent seaweed in cattle feed could
reduce methane emissions by 99 percent. The
seaweed apparently inhibits an enzyme that
contributes to methane production.
“The molasses masks the smell,” Kebreab said. To test
Seaweed supplementation
may reduce methane emission
in dairy cattle
R&DThink Grain Think Feed - Volume 4 | Issue 8 | June 2018
05
ImageSource:CNBC

Argentina to buy US soybeans
The surprise move pushed Chicago
soybean futures to a one-month high,
in the latest development to upend
global soy trading after top buyer
China last week proposed tariffs on US
imports amid an intensifying
Washington-Beijing trade dispute.
Argentina, the world's third biggest soy
producer, booked its largest purchase
of US soybeans in 20 years in April after
drought cut its harvest, forcing crushers
there to turn to imports.
The US Department of Agriculture
(USDA) reported that 120,000 tons of
US soybeans were sold to Argentina for
delivery during the 2018-19 marketing
season that begins September 1. This
transaction marks US Soy's largest sale
to Argentina since 1997.
The USDA separately forecast
Argentina's soybean harvest at 40
million tonnes, the smallest since 2009's
crop of 32 million tonnes.
“We're very rapidly seeing a
realignment in soybean trading,” said
analyst John Baize, president of John C.
Baize and Associates.
Baize said Argentina could import 500,000 to 1 million
tons of US soybeans this year. Bulk imports of US
soybeans are rare, although Argentina typically brings in
some soybeans from neighboring Paraguay. Argentina
will need soybeans by October, a time when crushers in
the South American country usually lack sufficient
domestic supplies, and crushers want to ensure they
have enough after this year's drought.
European buyers have also purchased large amounts of
US soybeans in recent days. US soybeans have been a
relative bargain due to surging prices in Brazil. China,
which buys about two-thirds of global soy exports, was
favoring Brazilian supplies and has proposed tariffs on
US soybean imports.
Consistent supply is a key element of the US Soy
Advantage. The US Soy supply chain meets and exceeds
its customers' needs – regardless of shipment size,
product type, location, or even time of year. The US
transportation infrastructure is reliable and efficient,
which allows its customers to generally experience
shorter delivery times when they purchase US Soy
versus soy from other sources. With its diverse climate
and growing areas, the United States has the ability to
produce a consistent, reliable, and sustainable supply of
high quality soybeans, rich in protein, oil, and amino
acid content.
Source: US Soy
R&D
06
seaweed efficacy, Kebreab and animal
nutrition graduate student Breanne
Roque have separated 12 cows into
three groups. Two groups are fed with
different doses of seaweed, and one
group's feed has no seaweed at all.
They rotate through the two-week
feeding regimens with a week long
seaweed fast in between.
Four times a day, cows get a snack
from an open-air contraption that
measures the methane in their breath
as they eat the treat.
“The numbers we're seeing are
amazing — well beyond the target
that farmers will need to reach,”
Kebreab said.
Throughout the seaweed diet, the
cows' milk is tested for qualities like
yield, flavor and nutritional content.
Among his many projects, Kebreab
recently received a USD 500,000 grant
to help improve sustainable livestock production in
Ethiopia and Burkina Faso, where dairy cattle produce
5 to 10 liters of milk per day compared to the 45 liters
that cows in California can produce. He is working
with researchers and funding from the University of
Florida with support from the Bill and Melinda Gates
Foundation.
“By improving the quality and quantity of dairy
production in developing countries, we help families
rise from poverty and malnutrition, and also reduce
the carbon footprint of cattle worldwide,” Kebreab said.
If seaweed proves to be a climate-smart supplement,
producing it could be environmentally friendly, too. As
Kebreab notes, “Growing seaweed doesn't require
land, fresh water or fertilizer.”
But there is still a lot to learn before farmers should
consider feeding cattle seaweed.
“We have much more research to do to determine if
seaweed supplements could provide a viable, long-
term solution,” Kebreab said. “But we are very
encouraged by these early results.”
Source: University of California
INDUSTRYNEWS

08
ARTICLE Think Grain Think Feed - Volume 4 | Issue 8 | June 2018
Mycotoxins, Silent killers
Mycotoxins, secondary toxic metabolites produced from
fungi, are present in poultry feed all the time. Even
when analysis results show that mycotoxin
contamination is below guideline levels suggested by
major agriculture countries, there can still be cause for
concern. So what does it mean if mycotoxins are
present in feed at low levels? Any mycotoxins present in
feed are delivered straight to the gastrointestinal tract
(GIT) of the birds, the organ most affected by
mycotoxins. The GIT is the most important organ for
converting feed into energy, and its ability to function
properly is directly linked to poultry productivity. The
GIT is the biggest immune organ in the body system.
Among the major mycotoxins, DON (deoxynivalenol),
ZEN (zearalenone) and FUM (fumonisins) are often
overlooked when considering their impact on poultry
health and productivity since their clinical symptoms are
not usually obvious or visible. However, there have been
a number of scientific and commercial trials that prove
these Fusarium mycotoxins are closely related to some
important poultry diseases.
Mycotoxin Contamination Situation in South Asia
BIOMIN has conducted the Mycotoxin Survey Program
Impact of Mycotoxins on
Poultry Gut
annually since 2004. The accumulated
number of samples is already over
75,000, which makes the program the
largest worldwide data pool for
mycotoxin analyses. In 2017, the
analysed number of samples hit a
record high. Overall, 2017 was another
high-risk year for mycotoxins in Asia,
similar to 2016. The infographic (Figure
1) shows where the major mycotoxins
were found throughout Asia in 2017.
Taking a closer look at the results from
South Asia or India, Aflatoxin (Afla) is
still the biggest threat if we also
consider the percentage contamination
above the risk threshold. The
prevalence of FUM and Ochratoxin A
(OTA) in South Asia was the highest of
all the Asian sub regions (Figure 2).
However, Afla has been always the
centre of attention that it is relatively
well counteracted.
Impact of DON and FUM on the
poultry gut
More problematic mycotoxins are
rather FUM and DON. Unfortunately, in
India the awareness of these Fusarium
mycotoxins is low. DON is a known
protein synthesis inhibitor and can
interfere with the metabolism of high
turn-over cells such as skin cells
(epithelial cells), hepatic cells, immune
cells and intestinal epithelial cells.
Some of the most frequent sub-clinical
symptoms of DON contamination in
feed are the reduction in feed intake,
wet-droppings and a reduction in
vaccine efficacy. On the other hand,
FUM blocks the synthesis of complex
sphingolipids that play a pivotal role in
protecting nerves, muscles and
membranes.
Several poultry feeding trials clearly
show that Fusarium mycotoxins such as
DON and FUM lead to an up-regulation
of pro-inflammatory cytokines in the
gut. Seventy percent of immune system
is located in the gut, promoting a rapid
Eileen Seung Eun HAN, Biomin
Figure 1. Mycotoxin contamination throughout Asia
AFLA
ZEN
DON
T-2
FUM
OTA
38%
49&
77%
45%
27%
3%
ASIA
Species risk assessment & percentage
positive samples

09
titres against vaccine programs in poultry. Several
research results have shown that DON and FUM
reduce antibody response to Newcastle Disease (ND)
and Infectious Bronchitis Virus (IBV). In one
experiment conducted in Austria, the feeding of a
DON-contaminated diet decreased serum antibody
titres against the IBV vaccine (Figure 4) compared to
the control diet. However, the antibody titres for IBV
improved when the DON-contaminated diet group
was fed with Mycofix Select (MSE), a mycotoxin
deactivator that includes the DON-biodegrading
mucosal inflammatory response, even
when mycotoxins are present at low
concentrations in feed. Tight junction
proteins in the intestinal epithelium are
also regulated by such cytokines.
Loosened tight junctions can cause
“leaky gut syndrome” resulting in
pathogens and toxins entering the
blood stream and moving to target
Figure 2. Mycotoxin Occurrence in India in 2017
Mycotoxin Afla ZEN DON T-2 FUM OTA
Number of samples tested 234 234 234 234 234 234
% with mycotoxin detected 79% 12% 17% 1% 86% 79%
% above health risk threshold 64% 1% 1% 0% 18% 21%
Average of positive (ppb) 25 22 76 18 362 9
Maximum (ppb) 212 79 872 21 3394 134
Recommended max threshold (ppb) 2 50 150 50 500 10
100%
80%
60%
40%
20%
0%
96%
12%
46%
96% 96%
4%0%
100%
80%
60%
40%
20%
0%
0% 0%
Alfa ZEN DON T2 FUM OTA <LOD 1 >1 mtx
Percentofsamples
Figure 3. Effects of mycotoxins in poultry
organs. As a result, the permeability of
intestine is increased and the
frequency of intestinal disorders and
disease outbreaks can consequently
increase as well (Figure 4).
Impaired immunity at low mycotoxin
contamination levels
DON and its co-occurrence with FUM
are known to modulate the immune
function. One good example is the
reduction in the number of antibody

10
ARTICLE
Image Source: AgWebFigure 4. Consequences of mycotoxin contamination on gut condition
bacteria, BBSH 797.
Mycotoxin risk management in
poultry
When it comes to counteracting
mycotoxins, the poultry industry
tends to think of “toxin-binders” first.
However, clay mineral binders are not
an effective answer to all major
mycotoxins. Especially not against
Fusarium mycotoxins since their
structures are not suitable for
adsorbing by binders.
Biotransformation using microbes
and enzymes is the most effective
strategy. It provides reliable protection for birds
against Fusarium mycotoxins by biodegrading
mycotoxins into non-toxic metabolites. The
transformation is fast, specific and irreversible.
In addition to biotransformation, a bioprotection
strategy is also important. Variety of feed additives is
available that contains plant and algae extracts to
provide a hepato-protective effect and to overcome the
immune suppression caused by mycotoxins. A
combination of different strategies can counteract the
negative effects of mycotoxins in poultry more
completely, especially in cases of multi-mycotoxin
contamination with the poorly absorbed Fusarium
mycotoxins in poultry feed.
Feed additive refers to Mycofix Select, to know further about the product or
technology, the author can be contacted at eileen.han@biomin.net
Figure 5. Effect of DON and Mycofix Select on IBV antibody titres in broiler chickens

12
Dr. Saurabh, India, having one of largest livestock populations, has its own set
of constraints. Your comment.
Dr. Sabiha, please tell us the kind of role you play in Trouw Nutrition. What are
the major changes that you have observed during your 12-year career?
Dr. Swamy, you have vast experience in Indian as well as global animal
industry. Please provide your thoughts on latest trends in Asian feed and feed
additive industry.
As far as poultry production is concerned, the major challenge being faced is high
cost of production. If the industry focuses on more effective and efficient solutions,
the profitability and productivity will certainly go up.
In dairy production, despite being the largest producers of milk, we still face the
challenge of reaching economies of scale primarily because of low production.
Inefficiencies in production system lead to a hike in price of animal protein which
ultimately leads to a lower consumption.
Having said that, we believe that there is huge opportunity to increase the basket
size of customer. Combining innovation and their practical application is a solution
to this problem.
I basically, provide nutritional technical services/solutions to customers as per their
need and requirement. This in turn helps the customers to trouble shoot their
challenges in a more effective manner.
There have been many changes but the major ones include use of technology that
has improved the efficiency & profitability of the industry, customer knowledge
which has gone up largely and with the next generation of customers taking in-
charge of their organizations are technologically advanced and so is the response to
the customers.
It also includes the use of automation, NIR technology for quicker nutrient profile of
raw materials and even the breed that has undergone genetic improvements and
hence the bird performances drastically going up.
World's feed production is now estimated to be around 1.07 billion metric tons. In
2017, India's feed production has increased by 9%. In that both dairy and layer feed
INTERVIEW
Trouw Nutrition – A Nutreco
company, is the global leader in
innovative feed specialties,
premixes and nutritional services
in the animal nutrition industry.
With total of 11 research units
and more than 50 years of
dedicated R&D knowledge and
experience, the company has
large relevant database to
support the animal nutrition
industry. Additionally, it is also
collaborated with more than 60
Universities for research across
the globe.
With its well-established team of
subject matter specialists in
India, the company only plans to
grow further. In an e-interview
with Think Grain Think Feed, the
core team of Trouw Nutrition
share its thoughts about the
industry challenges, their
expertise, important tips for feed
millers and farmers, and much
more. Below are the excerpts
from the interview.
Feed Market
Insights
Feed Market
Insights

13
sectors increased by 5% while broiler
feed production grew by 12%. While
aqua feed production decreased slightly
in Asia-Pacific Region, in India it
increased by 8%. Today India produces
shrimp, prawns, carp and catfish for both
domestic consumption and export.
Asia Pacific is expected to be the fastest
growing feed additive market because of
rising population combined with the
increase in per-capita meat consumption
with respect to growth in middle-class
spending capacity, especially in South
Korea, China, and India.
The outbreak of disease coupled with
rising health concern pressurizes
regional governments to form regulation
in order to standardize animal products
which, in turn, create ample
opportunities for future market growth.
In addition to this, factors like the
modernization of retail trends, an
increase in the number of fast food
chains and favorable demographics attract various players
across the globe while augmenting the market growth.
Indian feed additive market is expected to grow at the
fastest rate followed by China owing to high population
base coupled with rising meat consumption.
Asia Pacific feed additives market is projected to reach
US$ 9.263 billion in 2022, increasing from US$ 6.528
billion in 2016, growing at a CAGR of 6.01% during this
period. In 2017, feed additive business for swine, dairy
and broilers increased by 9%, 2%, and 1% respectively
while the same decreased by 6% in beef and 3% in layers.
Subsidies on meat exports in countries like India are
driving manufacturers to increase meat production,
thereby fueling the growth of the feed additives market.
The amino acid segment accounts for the largest share of
the market, whereas the antioxidant and acidifier
segments are projected to witness the fastest growth.
Other feed additives include enzymes, vitamins, minerals,
probiotics etc.
In today's world, it is hard to imagine poultry and
livestock feeds without the addition of feed additives.
Increased concern over the use of antibiotic growth
promoters in animal production has pushed the industry
With 19 years of experience
in animal health and retail
industry, Dr. Shekhar started
his career with Pfizer and
then worked with MARS for
14 years undertaking
diversified roles. He joined
Trouw Nutrition India in
June 2017 as Managing
Director and is responsible
to drive the growth of Trouw
Nutrition India business.
Dr. Swamy Haladi is a
Veterinarian with PhD on
mycotoxins from University
of Guelph, Canada. He has
published many peer-
reviewed papers, book
chapters and industry
magazine articles. He has
assisted the farming
community in more than 30
countries in managing their
raw material selection, feed
quality and feed mill
hygiene. Currently
responsible for establishing
“Feed Safety Program” for
Trouw Nutrition in South
Asia and manage business
in Eastern and Western
region of India.
An Animal Nutrition
Professional with
specialization in Livestock
Feed Mill management and
technology. Dr. Vardhan has
over 15 years’ experience in
Animal Nutrition Industry
and served different
organizations like Vetcare,
B V Bio Corp Ltd, Provimi
India; subsequently Cargill
premix and Nutrition.
Currently he is serving
Trouw Nutrition as
Ruminant Species Manager-
Asia Pacific.
Dr. Saurabh Shekhar Dr. Sabiha KadariDr. Suyash Vardhan Dr. Swamy Haladi
“
’’
Feed economics
likely to go down in the near future
with the ample supply of major raw
materials and with more imports of
raw materials
Dr. Sabiha Kadari is a
Veterinarian with PhD on
organic acids from Indian
Institute of Veterinary
Research, Izatnagar.
Dr. Kadari is a recognized
poultry nutritionist in India
and has provided technical
support to most of the key
accounts. She has played a
pivotal role in popularizing
the concept of NIR in India.
Currently she is responsible
for establishing “NutriOpt
Program” for Trouw
Nutrition in South Asia and
manage business in
Southern region of India.

14
Think Grain Think Feed - Volume 4 | Issue 8 | June 2018INTERVIEW
to come up with innovative alternate
feed additives.
Dairying practices by and large in South
Asia are somewhat similar. Farmer's low
animal holding per dairy farm and
fragmented dairying sector is a common
feature in South Asia.
If we compare, there is a difference
between Indian dairy sector and rest of
South Asian countries specially
Bangladesh and Sri Lanka about their off
late serious efforts to develop dairy
industry and looking at the possibility to
give pace and incentives to local dairy
industry to flourish. Few private
investors-initiated imports of the live
dairy heifers and cows from Oceania
specially Australia to initiate modern
infrastructure dairy farm with modern
technology.
In Bangladesh though, dairy industry is
still in the process of learning ways of
modern dairying but certain private
investments are trying to put themselves
on faster pace.
Similarly, NLDB (National Livestock
Development Board), Sri Lanka started
high tech dairy farming by importing live
dairy animals from Australia and creating
model dairy farming infrastructure.
Other than these countries, India and
Pakistan are on the same page where still
major contribution of milk is through
buffaloes. Both the countries identified
and initiated efforts in late 60's and got
benefitted in terms of consistent growth
in contribution of Dairy sector in
livestock GDP which again is a major
contributor to national agriculture GDP.
Opportunities for both Sri Lanka and
Bangladesh are to grow their dairy sector
fast as both the countries are heavily
dependent on import of powder milk. In
order to get self-sufficiency, there could
be need of building knowledge base for
dairy farming as well milk processing.
Dairying in rest of South Asian Countries
(SAARC) like Nepal, Bhutan, Maldives
and Afghanistan are in early stage of
development but at the same time have
Dr. Suyash, can you please throw
some light on the opportunities and
challenges in South Asian dairy
sector?
huge scope of its development.
Challenges in all South Asian countries for dairying are
low genetics of dairy animals, low per animal productivity
viz-a-viz to global per animal yield, highly fragmented
dairy farms, shortage of green fodder and lack of modern
know how of dairying.
Indian dairy sector, if wants to contribute to the other
SAARC markets, it needs to work further on quality milk
production and similar efforts at milk processing as it
needs to compete with other developed counties as milk
powder and other processed milk products are being
imported by SAARC counties from Europe, Australia or
New Zealand.
Feed economics has been highly volatile – sometimes
going down and sometimes rocketing, nevertheless, in
general has gone up compared to the last 5 years. The
feed economics is likely to go down in the near future
with the ample supply of major raw materials and with
more imports of raw materials with comparatively better
quality and lower prices.
Feed Milling is a vast subject and directly related to any
animal feed production. Few basic considerations in feed
millings can be viewed as:
! Stringent quality check on inward material, it is the
core and soul of the feed to be produced. Critical
ingredients nutrient profile can lead to feed mill
profitability.
! Proper warehousing of ingredients is another critical
area in feed mill, which determines the quality of the
feed produced by the feed mills. Any spill over of the
ingredients over each other will certainly influence
end product.
! Proper understanding of the operators about the
machines they have been assigned to manage. Feed
mill's efficient life always remain in the hands of its
operators, who can increase of reduce expected
performing life of the machine.
! A detailed dynamic overview of machine efficiencies
must be on the dash board of the Feed Mill manager.
Like Ingredients can vary the formula if nutrients are
not being estimated, likewise machine can also alter
the formula if proper scheduled maintenance is not
achieved to draw maximum efficiencies out of it.
! Quality control of Feed Produced and its correlation
with its performance in the market should be the
ultimate result of the feed mill efficiency.
Dr. Sabiha, feed economics plays a vital role in poultry
& livestock industry, how does it change in last 5
years and what are your predictions for near future?
Dr. Suyash, having specialization in Livestock Feed
Mill management, would you please share some tips
on livestock feed mill management to achieve better
efficiency and profitability?

15
Dr. Haladi, you have been an expert
on mycotoxin management, please
share present scenario of Indian feed
industry. What tips you would like to
share for mycotoxin management?
India is self-sufficient on the raw
materials required for producing
livestock and poultry feed. This has an
advantage when it comes to mycotoxin
management as we don't have to worry
about different types of mycotoxins
coming through importing raw materials.
The kind of mycotoxins found in Indian
raw materials differs from those
imported from countries like USA,
Argentina, and Ukraine.
Mycotoxin management is an integrated
approach. It should start from the field
where crops are grown and continue till
the farms where feed was fed to animals.
In India, grains and protein sources are
procured from many small farmers and
hence difficult to control mycotoxin
formation in the field. However,
preventive measures can be taken during
storage of raw materials and feeds and
transportation.
Spraying liquid organic acids onto raw
materials before storage is one of the
proven method of limiting mold growth
and mycotoxin contamination. This is not
practiced heavily in India and the use of
this technique can prevent the spoilage
of raw materials to a greater extent. The
powder form of organic acids can also
be added to the feed to prevent mold
growth. The dose of organic acids
depends on the length of storage,
moisture content of raw materials and
humidity in the atmosphere.
Once mycotoxins are produced in raw
materials or feed, they can't be killed by
heat treatment or the use of organic
acids. However, their entry into blood
circulation can be reduced by the use of
proven mycotoxin binders. Good quality
clay binders are effective for binding
aflatoxins while other mycotoxins may
have to be managed by the combination
of technologies such as enhancement of
gut health and immunity. HACCP-like
approach needs to be applied for
effective mycotoxin management as some of the
mycotoxins like aflatoxins can end up in animal products
such as milk.
The strength of Trouw Nutrition is that we believe in
solution-based approach, combining innovation and
practical application. We believe in “customer-first” and
understand that the need of the hour is a complete
package consisting of products, know-how and services.
Our understanding of this fact results in a consultative
approach and not transactive which is also appreciated by
the customers.
Further, we strongly believe in our values of being
innovative, capable, caring and collaborative.
We believe that research and innovation are the key to
sustainable development. All our products and services
are aligned with this concept. Realizing the need of
animal nutrition industry, the key focus areas for
innovation are Life start, Health & welfare, and Precision
Nutrition.
Further in line with the current need of industry we have
developed programs which combine products, services
and technical know-how to support customers overcome
the challenges of production. The following programs
have been optimised for our customers: Antimicrobial
Resistance Programme, Feed Safety Programme,
Mycotoxin Risk Management Programme and Trace
Mineral Programme. India is a key priority market and is a
focus for Nutreco and Trouw. This is also reflected in the
recent investment by Nutreco in a company called
Eruvaka. Eruvaka is an India-based Internet of Things (IoT)
that develops connected devices and mobile-based
decision tools to help aquaculture farmers reduce risk and
increase productivity.
Dr Saurabh, could you please tell us what are
strengths of Trouw Nutrition that makes it stand
ahead of its competition in the market?
Can you also share a brief of Trouw Nutrition product
portfolio in India? How important is India on
Nutreco's radar?
Trouw Nutrition team at their new facility in Hyderabad

16
INDUSTRY NEWS Think Grain Think Feed - Volume 4 | Issue 8 | June 2018
China Reopens for US Sorghum
In an unexpected sign of goodwill
ahead of trade talks with the United
States, China announced in May that its
Ministry of Commerce had terminated
its anti-dumping and countervailing
duty cases related to US sorghum and
revoked preliminary duties on imports
of the grain.
This critical good news for US sorghum
producers and exporters – and US
agriculture as a whole – has led to
increased prices for sorghum farmers
nearing harvest and caused at least
some shipments of US sorghum on the
water to turn back to China.
Still, the episode highlights the risk
trade policy poses to the grains
marketplace, particularly but not
exclusively as it relates to China.
“The re-opening of the sorghum
market in China, with removal of the
178.6 percent duties initially imposed, is
undoubtedly good for sorghum
farmers, and all grain market
participants,” said US Grains Council
President and CEO Tom Sleight.
The shift in China's approach to
sorghum came following significant
efforts by the US sorghum industry to
respond to the investigations China
brought earlier this year. The Chinese
announcement indicated that a review
of the evidence in the cases showed the
duties would harm the Chinese feed
industry and consumers, an argument
made by the US sorghum industry in its
extensive defense as part of the
pending cases.
Urged by the industry and the Council, the White
House, US Department of Agriculture and the Office of
the US Trade Representative also intervened with the
Chinese on sorghum's behalf. The Council, working with
USDA's Foreign Agricultural Service (FAS), rapidly
ramped up marketing programs for US sorghum in
countries with the potential for new purchases or
purchases of the product for the first time.
“We are confident that markets that already know US
sorghum, like Japan, Mexico and Morocco, will continue
to look at it, while others that haven't bought it
frequently, like Saudi Arabia, countries in South America
and more, will look at it now,” Sleight said. “Sorghum
has many attributes, and one upside of the issues with
China could be that more buyers become aware of the
product.”
That diversification is important as there remains an
outstanding threat of a 25 percent tariff from China on
sorghum, corn and other products, in retaliation for
potential US tariffs. US feed grains and their related
products also face a plethora of other concerns in
China: US corn exports have been challenged by
systemic issues with biotech trait approvals; US distiller's
dried grains with solubles (DDGS) face duties from anti-
dumping and countervailing duty investigations; and US
ethanol is limited by a 45 percent tariff.
The quick application and removal of preliminary duties
on sorghum also has caused significant issues for grain
traders who had sorghum en route as well as buyers of
the grain in China.
“The development from China on US sorghum is a step
in the right direction for US-China trade relations, and
we hope it is a platform for further lessening of tensions
and challenges facing US grains exports to China,”
Sleight said.
Source: USGC
ImageSource:TheAustralian

17
De Heus further expands in
Mayanmar with USD 16M feed plant
Animal feed firm De Heus recently
announced the launch of its second
production site in Myanmar. This feed
plant in Mandalay, combined with the
Yangon facility, will enable the
Netherlands-based company to tap into
the growing demand in both upper and
lower Myanmar markets.
Located on 26,000 square metres in
Myotha Industrial Park near Mandalay,
the factory has an annual production
capacity of 280,000 MT and is supported
by a rooftop solar installation, making it
among the Myanmar's most sustainable
feed production site.
Royal de Heus, a family-owned company
headquartered in the Netherlands, was
founded in 1911. In Asia, it is present in
China, India, Vietnam and Myanmar.
The Myotha factory involves USD 16
million, while the overall investment in
the country has now exceeded USD 30
million, according to Johan van den Ban,
managing director of De Heus Myanmar.
Mr Van den Ban told The Myanmar
Times that building a plant in Myotha
will allow De Heus to meet the growing
demand and increase the sales volumes
in upper Myanmar “significantly”. With
production capacity at the Yangon site
having already reached its limit and
monthly sales figures still rising fast, a
second production site was required.
He expected an annual growth of around
15-20 percent for the livestock drug
market in the coming years, as
consumption of animal proteins through
meat, milk, eggs and fish is increasing
rapidly.
“Since our arrival in Myanmar, the
livestock sector has gradually developed.
De Heus Myanmar has now become the
leading supplier of animal nutrition
solutions to independent farmers
nationwide,” Mr Van den Ban remarked,
adding that the technical know-how and
quality feed will help scale up Myanmar's
production of animal protein and
facilitate the professionalization of the
livestock sector.
“I am particularly proud that by investing in a 516kW
rooftop-based solar energy system, which is able to
produce 663MWh of renewable energy per year, we will
save 1.5MT of CO2 emission. Thereby, we have
established the most sustainable feed mill in Myanmar.
He also highlighted a few areas where the country should
work on in order for the sector to flourish. First of all, strict
policies to prevent for illegal imports of animal protein
products, including live animals, from Thailand and China
should be in place and enforced. Nay Pyi Taw has to
protect the domestic livestock farmers, as in the current
condition it's challenging for them to be competitive.
Secondly, access to finance for livestock farmers, both
working capital and loans to invest, should be enhanced.
The sector has to modernise, which requires capital.
Currently, farmers are generally not able to get a loan,
because banks only offer simple collateral-based loans.
Other than that, a clear legal framework, including land
law, could attract much more foreign direct investments
(FDI), while reliable and secure power supply as well as
improved infrastructure for river and land logistics as well
as a seaport are key factors.

18
A new born calf, being away from the
protection of its mother's womb,
immediately faces the environmental as
well as feeding challenges. Early Calf
nutrition is one of the important areas
of recent research work in Animal
Sciences, which is now being evaluated
not only for the growth parameters of
the calf as per its breed standards, but
also the impact of early nutrition on
animal's productivity, reproductive
potential i.e. fertility and longevity for
rest of its life.
The life of a dairy calf is largely
dependent on the proper amount of
Colostrumit consumes in first 3 days of
life. Colostrum contains all the
necessary nutrients, immunoglobulins
and essential growth factors which are
much required to protect the new born
calf from external environmental
challenges. Colostrum contains both
nutrients (Protein, Fats, Lactose,
essential fatty acids and amino acids) and also non-
nutrients (Biologically active substances).Colostrum is
also known to be rich in a variety of molecules. The ratio
of colostrum composition to mature milk composition
with respect to these molecules is relaxin (>19:1 pig),
prolactin (18:1 cow), insulin (65:1Cow), IGF-1 (155:1
cow), IGF-2 (7:1 cow), and leptin (90:1 humans).
As per recent research, Colostrum has been shown to
have a major effect on the development of the
gastrointestinal tract for a long period, though the exact
mechanism is still not known. Some studies have
demonstrated differences between animals fed
colostrum, rich in growth factors, versus those fed milk,
with comparable energy values, though some studies
are not in agreement with their findings.
Colostrum is particularly considered to be important for
the passive immunization of the newborn Dairy Calf as it
is a combination of various specific (immunoglobulins,
Ig) and non-specific (humoral and cellular) antibacterial
factors which passes to the calf and largely supports its
protection against any infections during the first days
after birth. Faber et al. (2005)demonstrated that the
amount of colostrum provided to calves at birth
ARTICLE
Importance of early calf
nutrition on its health,
production and reproduction
Suyash Vardhan, Jeanne Boekhorst and Erik Rensink

19
In the same line, whole milk feeding has positive impact
on the future milk production as long-term effect of a
calf which was compared with the calf raised on milk
replacers, but others suggest that the long-term effect is
related to nutrient intake and pre-weaning growth rates
and not some milk-born factor.
Feeding medium fat Calf milk replacers have its own
certain benefits such as maintaining the consistent
nutrient quality of the calf milk on regular basis,
minimizing the chances of disease/antibiotic
transmission from infected mother post-partum, as it
contains high levels of vitamin and trace mineral more
adequate for calf requirement.
Some studies suggest that in calves the effects of
suckling, controlled intakes and ad-libitum feeding from
birth up to 56 days of life increases the nutrient intake
prior to 56 days of life from milk. It resulted in increased
milk yield during first lactation ranging from 450 to
1300 kg compared to the milk yield of restricted fed
calves during the same period.
Recent recommendations for early offering of good
quality calf starter is also considered to be one of the
important factor for higher average daily gains of young
calf as well smooth weaning. Milk feeding program
affects calf starter intake based on the amount being
fed and the percentage of protein and fat in the milk or
milk replacers. Water is an essential nutrient for the calf
and its availability affects weight gain to an extent.
Proceedings 50thFlorida Dairy Production Conference,
Gainesville has clearly defined as a summary approach
in order to build a calf into a good performing dairy
cow which is as follows:
1. The pre-weaning period is a period of life where the
calf is undergoing significant developmental
changes and this development is directly linked to
future productivity in the first and subsequent
lactations.
2. Pre-weaning growth rate and primarily protein
accretion appears to be a key factor in signaling the
tissue or communication process that enhances life-
time milk yield.
3. Anything that detracts from feed intake and
subsequent pre-weaning growth rate reduces the
opportunity for enhanced milk yield as an adult.
4. Nutrient supply, both energy and protein are
important and protein quality and digestibility are
essential.
5. There are no substitutes for liquid feed prior to
weaning that will enhance the effect on long term
productivity.
significantly influences pre-pubertal
growth rate and showed a significant
effect on the milk yield for first and
second lactation. In both lactation,
animals fed 4L colostrum produced
significantly more 305-d computed ME
milk compared to heifers fed 2L of
colostrum at birth. In the first lactation,
animals in the 2 L group had 955 kg
less (P <0.01) 305-d ME milk compared
with those in the 4 L group. This
difference escalated in second lactation
more, being9907 ± 335 and 11294 ±
335 vs 8952 ± 341 and 9642 ± 341 kg
at first and second lactation
respectively. This clearly indicated that
greater volume of Colosturm fed to the
Calves at birth led to superior milking
performance as an adult.
Once Calf enters in 4th day of birth,
there is a switch over to either milk or
Calf milk replacers (CMR). The
superiority of whole milk over medium
fat content Calf milk replacers is largely
associated with the high amount of fat,
which may be available in whole milk.
Though high fat content may not
promote lean tissue deposition and
that modest fat content actually may
result in greater growth of the lean
tissue in young calves.

ARTICLE
20
6. Factors other than
immunoglobulins in colostrum
modify feed intake, feed efficiency
and growth of calves and can
enhance the effect of early life
nutrient status.
7. As an industry and as nutritionists
we need to talk about
metabolizable energy and protein
intake and status relative to
maintenance and stop talking
about liters, kilograms and grams
of dry matter, milk, milk replacer
etc. The calf has discrete nutrient
requirements not related to dry
matter and liquid volume
measurements.
8. The effect of nurture is many times
greater than nature and the pre-
weaning period is a phase of
development where the
productivity of the calf can be
modified to enhance the animal's
genetic potential.
An effective calf's early nutrition and
rearing program does not start with the
birth of the new born instead it should
be built when calf is in the uterus of the
mother cow. Certain factors should be
considered as MUST in terms of feeding
the pregnant dry cow so the early
nutrition starts for calf; when it is still
not born. It can be viewed as follows,
1. Robust and sound feeding and
proper management program of
Dry Cow at least 2 months prior to
the expected time of delivery or
freshening of the pregnant dry
Cow.
2. All scheduled vaccination of the
dry Cow to be given so the
colostrum post-partum must not
lack the requisite antibodies or
protective factors to provide
effective shield to the new born
calf.
3. Dry Cow diet needs to be balanced
as per the nutrient need both in far
off and close up period. This not
only maintains good body
condition of the pregnant mother
but also effectively support the proper development
of the Foetus developing in the uterus. Nutritionally
balanced diet is also important for the dry pregnant
cow in order to avoid the metabolic disorders at or
post-partum like milk fever, ketosis or hypo
magnesemic tetany etc. These metabolic disorders
are quite common in South Asia where still
awareness and adoption of transition diets is not
quite common
4. Under feeding dry cows and springing heifers does
not result in a smaller calf but instead results in
lower performance of the cow or heifer after
calving. Adequate minerals and vitamins are
important to the dry cow and the calf developing
inside her. They are also necessary for the dam to
minimize health problems around freshening time,
such as preventing retained placentas, and to
improve the immune system so that the cow can
fight off a disease challenge, such as mastitis
infection, just before or after calving.
5. Post-partum; as nutrient demand for milk
production increases in fresh period which if not
supported by compensatory intake of the nutrients
as per the recently calved cow requirement, one of
the main casualty of the resultant deficit will be
reproductive system of the cow. This deficit will
adversely impact the synthesis and secretion of the
hormones. As a result of it, this will influence milk
let down, quality and quantity of the milk as well
subsequent follicular development, thereby delayed
estrus and further conception. The quality of milk
will be having detrimental effect on the intakes of
the calf during its early development.
While taking care of pregnant cow in the last two
months of pregnancy, the care of the cow must
continue even after the birth of new born cal. It is
important to adopt the good management and health
care practices in order to provide hygienic and aseptic
environment to the new born calf. Calf needs to be fed
Colosturm ad lib within one hour of birth, not later than
3 hours of birth. This is quite important as Calf takes
birth without any immunity. Colostrum is the best
source of passive immunity to the new born calf as there
is no antibody transfer from mother to Calves through
placenta. The early feeding of colostrum to calf is
important as its intestine is most receptive to absorb
immunoglobulins as well growth factors in early hours
of its life.
Further, Calf diets should also be reviewed for its proper
intake in order to grow better as well maintains breeds
specific ADG (Average Daily Gains). Certain such

ARTICLE
22
guidelines can be viewed in context of
composition and characteristics of
Colostrum, whole milk and reconstituted Calf Milk
Replacer.
Table -1 Composition and Characteristics of Colostrum, whole milk and reconstituted Calf Milk Replacer
(1lb CMR powder +7 lbs. water) =454 g +3.3 Ltr.
Item First Milking Second Milking Second Day Third Day Whole Milk Calf Milk Replacer
Specific Gravity, g/ml 1.056 1.04 1.034 1.033 1.032
Total Solids, % 23.9 17.9 14 13.6 12.9 12.5
Fat % 6.7 5.4 4.1 4.3 4 2.5
Non-Fat Solids, SNF % 16.7 12.2 9.6 9.5 8.8 11.25
Proteins, % 14 8.4 4.6 4.1 3.1 2.8
Lactose % 2.7 3.9 4.5 4.7 5 variable
Immunoglobulins % 6 4.2 1
Source: Feeding the dairy herd, Feeding Guide; Mike Hutjens, 2008
Table -2 Nutrient recommendation of diet for Calf and heifer
on Dry matter basis.
Body Wt. Kg, 45 68 200 300 450
Dry Matter Intake, Kg 0.68 2 5 7.2 11.4
ME , Mcal/kg) 4.75 3.28 2.05 2.27 1.8
TDN % of DM 95 80 67 65 65
Crude Protein % 22 20 16 14 12
Met. Protein % NA NA 7.7 7 5.3
ADF % NA 11.6 20 22 23
NDF % NA 12.8 30 32 33
Ether Extract % 15 3 2 2 2
Calcium % 1 0.7 0.41 0.41 0.37
Phosphorus % 0.7 0.45 0.28 0.23 0.18
Magnesium % 0.07 0.1 0.11 0.11 0.08
Chloride % 0.25 0.2 0.11 0.12 0.1
Sodium % 0.4 0.15 0.08 0.08 0.07
Potassium % 0.65 0.65 0.47 0.48 0.46
Sulphur % 0.29 0.2 0.2 0.2 0.2
Vitamin A, IU 4000 8000 24000 24000 36000
Vitamin D, IU 270 1200 6000 9000 13500
Vitamin E , IU 100 100 240 240 360
Cobalt, ppm 0.11 0.1 0.11 0.11 0.11
Copper, ppm 10 10 10 10 9
Iodine, ppm 0.5 0.25 0.27 0.3 0.3
Iron,ppm 100 50 43 31 13
Manganese, ppm 40 40 22 20 14
Selenium,ppm 0.3 0.3 0.3 0.3 0.3
Zinc,ppm 40 40 32 27 18
Age in Months
Item Calf Milk Replacer Calf Starter 3-6 6--12 12-24
Source: Adapted from feeding the dairy herd, Feeding Guide; Mike Hutjens, 2008; NRC 2001 and NRC 1989.
Feeding calves in their early life without
restricting their feed, provokes major
changes in metabolic profiles related
with cell proliferation pathways,
protein/energy metabolism and
alterations of immune response.
Furthermore, the pre-weaning nutrient
supply has clear short-term
developmental and metabolic
implications in calves, which could
potentially be carried into adulthood.
Dr Michael Steele from the University of
Alberta, Canada believes research in
this area marks a huge step forward for
the industry. “Traditionally we have
restricted feeding for calves based on a
misconception that this is cost effective.
However, the novel revolutionary
thinking is that optimizing calf rearing
and feeding in those first few weeks of
life offers a huge opportunity to
improve long-term cow health, welfare
and performance,” he commented.
Once Calf starts Calf Milk Replacers or Whole milk, following feeding schedule can be maintained in order to maximize its
intake which may reflect in terms of ADG/day.

INDUSTRY NEWS
23
Evonik Opens New NIR Lab for
Animal Nutrition in Nairobi
In May Evonik inaugurated its first
laboratory for its animal nutrition
business in Nairobi (Kenya). Equipped
with state-of-the-art NIR technology,
the facility helps feed producers
evaluate their raw materials through
accurate analysis of a very wide range
of nutrients. Furthermore, analysis of
poultry feeds is also covered by this
unique service.
The new Evonik laboratory brings vital
technical support to the local and
regional feed markets. “We hope to
extend the best levels of support to our
partners not only in Kenya but in the
entire East African region including
countries like Tanzania, Uganda,
Ethiopia and Rwanda”, said John
Owaga, Technical Service Manager for
Animal Nutrition in East Africa at
Evonik.
Animal nutrition has become a more
exact science over the past decades. To formulate feed
according to a certain specification requires knowledge
about the nutrient contents of all relevant raw materials.
Since these vary considerably, it is important to analyse
the raw materials on an ongoing basis with latest NIR
technology. This ensures high feed quality and keeps
feed costs under control.
“At Evonik, we see great potentials in the East African
market coming from the double-digit growth of the
poultry industry in recent years,” commented Cuthbert
Mamabolo, Regional Business Director for Animal
Nutrition at Evonik.
Five years ago, Evonik established a direct presence in
East Africa with a representative office in Kenya.
However, the German speciality chemicals producer was
active in this region for decades through external
distributors. Today, Evonik caters to the feed industry for
poultry, dairy, pigs and fish with key products.
Opening a laboratory in Kenya is a key strategic
decision taken to bring technology closer to the clients
and better understand their needs.

INDUSTRY NEWS Think Grain Think Feed - Volume 4 | Issue 8 | June 2018
24
Feed producer BioMar Group is
steaming ahead with its investments in
greater production capacity after its
recent acquisition in Ecuador despite
low prices for shrimp globally.
The Danish firm said in a press release
that it is adding a fifth production line
at shrimp feed producer Alimentsa in
Ecuador, which it bought last year.
"It is a relatively small investment as the
new line fits into our present facilities,
and thereby we expect it to be ready
already early next year," Danny Velaz,
Alimentsa's general manager said. "Our
new feed trial and development facility
announced in November, is also
progressing according to schedule and
will be operational later this year."
Roberto Bolona, Alimentsa's former
executive, added that the firm was
setting up a new research and
development centre, which would allow
to develop its portfolio of balanced
feed products with BioMar
“unconditional support”.
In the recent press release, Velaz said
that the company won't waver from its
plans as Ecuador remains well
positioned, despite the recent price
drop for shrimp.
"Overall global shrimp consumption continues to
increase, and in terms of quality and sustainability
Ecuador has the upper hand. China is the largest market
for shrimp, but the local production in China is facing
new tough environmental restrictions and this will limit
the supply," he said.
Alimentsa revenue
The Alimentsa acquisition brought BioMar's revenue up
12% in 2017.
"The financial results for the year reveal a significant
increase in revenue as well as solid EBIT [earnings before
interest and tax] exceeding expectations," it noted in its
annual earnings report.
"Driving factors have been expansions into new markets
and an increased focus oninnovation and sustainability,"
it also said. The company delivered increased revenue of
DKK 9.96 billion ($1.65bn) compared to 2016, while EBIT
reached DKK 559 million.
“I believe that our strategic decision to safeguard local
agility has proven to be a strong competitive advantage
across our markets," said Carlos Diaz, CEO of BioMar.
Diaz noted 2017 saw the first full year with operations in
Turkey and China, as well as the completed acquisition
of Alimentsa "to complement our presence in the
shrimp segment, together with our factory in Costa
Rica." On top of this the firm initiated its factory project
in Australia; started the biggest fish feed line in the
world and began operations of its new liquefied natural
gas vessel in Norway.
Source: undercurrent news
BioMar expansion plans remains
unaffected from low shrimp prices

26
EVENT COVERAGE Think Grain Think Feed - Volume 4 | Issue 8 | June 2018
Image Source: Institute of Aquaculture
On 16-18 May 2018 over 200 senior
representatives of the specialty feed
ingredients sector came together at the
Millennium Hilton Hotel in Bangkok,
Thailand to discuss trends in the current
market and the strategies required for
success in the future.
During the three-day conference,
founders, CEOs and business leaders from
global feed additives producers and
buyers heard from academics, expert
advisors and their own peers in a series of
presentations and groups discussions.
MARKET INSIGHT
In an overview of the ongoing
consolidation in the global animal
nutrition sector, Simon Duke, Editor-in-
Chief of Feedinfo News Service, pointed
out that diversification continues to be
"the name of the game."
Giving the inaugural presentation, Duke
said all signs indicate that consolidation in
the feed additive industry is expected to
continue in 2018 and can be described in
two forms: horizontal consolidation and
vertical integration. The vertical trend is
driven by the industry's ambition to bring
to market solutions that address key
issues like antibiotic reduction.
"Providing strong global brands will
remain key as the market is eager to
invest in reliable products with proven
R&D knowhow," he commented.
CHINA
Mr Duke also detailed how foreign firms consider China a
"low-cost production hub." Examples of toll manufacturing
agreements include Evonik's and Fufeng's threonine
manufacturing cooperation in Northern China, as well as
Ajinomoto's sub-contracting of lysine and threonine
production to Meihua, as part of the Japanese firm's
strategy to accelerate a shift to specialty feed additives.
To demonstrate the current importance of China in the
global amino acid and vitamin production map, he cited
Professor Qi Guang-Hai, of the Chinese Academy of
Agricultural Sciences (CAAS), who spoke at Feed Additives
Global 2017 in Frankfurt in September last year. The CAAS
professor has estimated that China produces 70% of feed
grade vitamins in the world, and the nation also produces
41% of feed grade amino acids.
Duke, however, warned that Chinese vitamin production
can be expected to become more expensive as China's
many vitamin factories can be affected to various degrees
by the enforcement of environmental protection measures.
Continuing the discussions on the Chinese market, the
second speaker of the day Dirk Jan Kennes, Global Sector
Strategist, Farm Inputs at Rabobank believes China will need
to invest in its livestock industry to upgrade it to bridge the
gap between its sector and that of the rest of the developed
world.
“It is necessary for China to invest to bridge the gap and
they will also need to focus on improving their breeding
strategies,” Mr. Kennes said.
In terms of antibiotic growth promoters (AGP), he said that
companies in the region need to apply better farm
management practices to be able to move away from AGPs.
Feed Additives Asia 2018
discussed the changing trends in
Asian Feed Industry

EVENT COVERAGE
28
The farmers need to be educated so that
they can enable themselves to improve
their practices.
PRICING
Following presentations from Charoen
Pokphand Foods (CP Foods) and the Food
and Agriculture Organization of the
United Nations (FAO), Feedinfo News
Service Lead Analyst, Martijn de Cocq
presented attendees with a pricing update
for the major vitamins and amino acids
covered by Feedinfo.
“It has been a roller-coaster ride in the
past year for nearly all vitamins, and it is
still ongoing as we speak.”
“Although fundamentals (e.g. increased
cost price due to new environmental
regulations in China) - exacerbated to
some extent by BASF's Citral force
majeure are obvious, it was almost
unbelievable to see how much sentiment
was involved and how much insecurity
there was at end-user level about the
fulfilment of their supply chain and
pipeline,” he added.
“By now a lot of vitamin prices have
stabilized at a high level and/or are
coming down again,” de Cocq said. “More
than with amino acids we do on the one
hand expect to see volatile markets going
forward, but we also expect prices to
come down.”In the near-term Feedinfo
remains bearish for the biggest part of the
vitamin group, with good examples being
Vitamin E and D-Calpan at the moment.
“But longer term 2018-2020, though
fundamentals should indicate a steadier
and somewhat bearish market, we expect
that the main drivers for the trend will be
for example sudden supply chain
interruptions, shortage of intermediates
and market sentiment,” he commented.
OVERCOMING LOCAL CHALLENGES
In addition to presentations from industry
veterans and experts from around the
world, Feed Additives Asia featured
several panel discussions with leaders of
the Asian industry talking candidly and
honestly about the issues facing the
region.
The second day of the conference began
with Kevin Liu (Vice President – Technical
Services & Business Development Asia
Pacific, Adisseo), Robert Redman (General
Manager, DSM) and Ramakanta Nayak
(General Manager, Trouw Nutrition) taking on the challenge
of describing the shape of the industry in 2050.
Liu, Redman, and Nayak were in agreement that among the
biggest challenges for feed additive companies in Asia are
limited raw material resources, animal diseases
management, regulatory barriers, optimal farm
management and lack of institutional support.
Limited resources and using them in an optimal way can be
quite a task.
“There is such a variety of raw materials that it is important
to have the right feed additives to maximize digestibility as
well as consider the health of the animals,” Nayak said. He
also argued that optimization of feed management to
ensure food safety will gain more and more importance in
the region.
Liu, meanwhile, pointed out that the APAC region lacks
adequate assessment testing facilities to measure the
efficacy of feed additives. “How do you judge the accuracy
of feed additives?” he said, “This is still an issue in the area.”
The impact of animal diseases is also very consequential in
the Asia-Pacific region. For instance, in 2004 when avian
influenza rocked Thailand, there was hardly any chicken
available, Redman commented.
“And the big challenge is the management of diseases,” he
added, especially now that AGPs are being phased out in
some countries of the region.
“There is above all a need for farm management strategy to
help with disease management,” he went on to say. “Good
biosecurity first, then we can support the growth with feed
additives.”
Looking at the case of fish farming, Nayak said genetic
breeding lines are also a challenge. “Fast growing fish
creates more disease risk,” he said.
Changes in government policy in Thailand and Indonesia or
in other countries without industry involvement can be
quite damaging too.
The panelists also believe regulatory barriers are tough and
cost to register feed additives products in Asia-Pacific
markets can be enormous.
“It can sometimes take years and millions of dollars in
investment,” Liu commented. “The best innovative products
are in danger of not getting on the market in time.”
“The registration processes are very time-consuming and
sometimes you're missing the innovation. It's then too late
to respond to the current needs,” Redman added before
saying that banning AGPs without having first trained the
farmers or consulted with the industry can be fatal.
Additionally, the industry should not underestimate the
negative publicity it receives. The panelists agreed that this
will continue to haunt the sector in the coming years. And
social media will only help accentuate the issue.
Feed Additives Asia concluded with technical seminars
covering aquaculture, gut health, and regulation.

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018CALENDAR OF EVENTS
30
2018
To list any industry event related to Grain & Feed industry please write us at
AquaVision
Date: 11-13 June 2018
Venue: Stavanger, Norway
Email: info@aquavision.org
Web: www.aquavision.org
International Feeds & Nutrition Course improved
Schothorst Feed Research
Date: 11-15 June 2018
Venue: the Inntel Hotels in Zaandam, near
Amsterdam
Email: mdwitte@schothorst.nl
Web: www.schothorst.nl
VIV Europe
Date: 20-22 June 2018
Venue: Jaarbeurs Utreach, the Netherlands
Email: karlienke.smitt@vnuexhibitions.com
Web: www.viveurope.nl
Dairy, Livestock and Poultry Technology
Exhibition Africa
Date: 20-22 June 2018
Venue: Kenyatta International Convention Center,
Nairobi, Kenya
Email: africa@dlpexpo.com
Web: www.dlpexpo.com
JUNE
JULY
Indo Livestock 2018 Expo & Forum
Date: 04-06 July 2018
Venue: Jakarta Convention Centre, Jakarta-Indonesia
Email: info@indolivestock.com
Web: www.indolivestock.com
Annual Practical short course in Extruded Pet
Foods and Treats
Date: 09-12 July 2018
Venue: Texas A&M University, USA
Email: mnriaz@tamu.edu
Web: https://perdc.tamu.edu/extrusion/
SEPTEMBER
SPACE
Date: 11-14 Sep 2018
Venue: Parc-Expo of Rennes, France
Email: am.quemener@space.fr
Web: http://uk.space.fr/
Feed Additives Global 2018
Date: 26-28 Sep 2018
Venue: Okura Hotel, Amsterdam
Email: ben.cronin@agribriefing.com
Web: www.feedadditives-global.com
AUGUST
25th Annual Practical Short Course on
Aquaculture Feed Extrusion, Nutrition and Feed
Management
Date: 26-31 August 2018
Venue: Texas A&M University, USA
Email: mnriaz@tamu.edu
Web: https://perdc.tamu.edu/extrusion/
OCTOBER
Dairy Industry Expo
Date: 12-14 October 2018
Venue: Auto Cluster Exhibition Centre, Pune
Email: dairyindustryexpo@gmail.com
Web: www.dairyindustryexpo.com

Think Grain Think Feed June issue 2018

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