Animal Nutrition & Health (ANH)
Animal Nutrition & Health (ANH) is a business unit within DSM-Firmenich, a globally recognized leader in the field of animal nutrition and health products with the most complete ingredients portfolio ideally positioned to support a growing population through more sustainable animal farming. Headquartered in Switzerland, last year ANH delivered more than €3 billion in revenues with approximately 6,000 employees. It helps its customers to deliver healthy animal proteins efficiently and sustainably whilst harnessing the power of data to make animal farming practices more sustainable, productive, and transparent.
The business has a unique premix network across the world that helps deliver global products with local solutions and benefits from precision services capability.
Dsm-firmenich announced on February 15 the initiation of a process to carve-out and separate out the Animal Nutrition & Health (“ANH”) business from the Group. ANH is driven by different dynamics to the rest of the Group, which has become even more apparent with the unprecedented challenges in the vitamins market. The Company believes that the full potential of the ANH business could be best realized through a different ownership structure for which all potential separation options will be considered. The Company would expect to be in a position to separate the business in the course of 2025.
The carve-out process will have no impact on our daily business. Serving the needs of our customers always has priority for ANH: Customers can expect the highest standards of service and dedication from us. We continue to innovate and create solutions with Vitamins, Performance Solutions & Precision Services
IVO LANSBERGEN
BU President Animal Nutrition & Health
Ivo joined DSM in 1997 and held several positions across the company’s various business units before being appointed to lead the Animal Nutrition & Health (ANH) business unit in 2019. He transformed the organization, reinforcing its position as a customer-focused partner in the development of feed ingredients for the global food supply chain.
Supported by complementary acquisitions, Ivo strengthened the business’s expertise and reputation as a leading provider of solutions for farm productivity and sustainability throughout the value chain, including as a pioneer in the fast-emerging area of technology-driven precision nutrition and health. Ivo is an experienced global executive, having worked in science-based industries across Europe and Asia during his career. He holds a master’s in Chemical Engineering from the University of Enschede, the Netherlands.
Ivo Lansbergen, President of Animal Nutrition & Health, concluded his 10-day tour of Asia with a visit to India from April 14th to 16th, 2024. The tour, which began in China and continued through the Philippines and Singapore, was designed to strengthen customer relations, visit the Jadcherla plant and engage with stakeholders to deepen his understanding of the Asian market
Asia: A key Growth market
Lansbergen believes Asia represents a significant growth opportunityHe noted that Asia and Latin America (LATAM) will drive much of the industry’s expansion in the coming years.
Focus on China and Beyond
Lansbergen highlighted the uncertainty surrounding China’s pork market, which has experienced a dip in demand for feed additives due to low pork prices. Despite this, he anticipates that demand for additives would increase later in the year as the pork market recovers
Additionally, Lansbergen sees poultry and shrimp as critical species for the Asian market, with beef facing challenges due to its higher cost and a shift towards more affordable proteins.
Looking Ahead
Ivo Lansbergen’s visit to Asia underscores his commitment to understanding the unique dynamics of the region’s animal nutrition market. As the industry navigates its current challenges, Lansbergen remains optimistic about the future, confident that the recovery in vitamin and amino acid prices and the anticipated increase in demand will drive growth in the coming years.
Here’s an expanded summary incorporating your focus on customers, sustainability, and innovation, with the broader perspective on the company’s operations and values:
Our Commitment to Customers, Sustainability, and Innovation in Animal Nutrition
At the core of our business, we are driven by a commitment to our customers, a focus on sustainability, and a dedication to innovation in precision nutrition for animals. Our vision encompasses more than just providing high-quality products; it includes a holistic approach to creating affordable protein, supporting healthy incomes for farmers, and maintaining a healthy ecosystem—all without compromising the environment.
Customer-Centric Approach
We put our customers at the heart of everything we do, ensuring that their needs are met with precision and reliability. We make it possible.
We have customers in our heart, the sustainability in our DNA, and we drive innovation and precision nutrition for animals. We have one of the broadest portfolio including mycotoxin risk management, vitamins, feed additives, and precision services making us successful. We diagnose and provide solutions.
We create affordable protein, and healthy income for farmers – sustainably andnot on the expense of the environment. We provide solutions to improvethe quality of protein and enhance feed efficiency , while reducing emissions and our reliance on natural resources.
Sustainability should be long-lived and is a much broader term encompassing not only the environment but alsoaffordability.
Challenges and Opportunities
The separation process will require time as it involvescarving out legal entities, assets, and plants,ANH specific market dynamics such as Avian influenza, Swine Fever, fluctuating vitamin and feed prices, and consumer trends impact the animal nutrition sector differently than other segments within dsm-firmenich. The separation is designed to make the business more agile and focused on the specific customer needs of the animal nutrition market.
The Future of Animal Nutrition
ANH is embracing innovation and technology to help farmers optimize their operations through digital tools and data analysis. Digital precision services arealready launched in selective markets and is expected to expand to India, where digital development is progressing but may take longer to catch up with countries like the USA and Brazil.
India: A Key Market for ANH
With the global animal nutrition industry undergoing significant changes, is focusing on India as a vital part of its growth strategy. The following are key factors that underline India’s importance and the company’s plans for this market.
Strong Economic Growth and Increasing Demand
India’s economy is expanding rapidly, with a GDP growth rate projected at 7% in 2024. This strong economic backdrop creates a fertile ground for growth in the animal nutrition sector. As disposable incomes rise, so does the demand for lean animal proteins, driving increased consumption in segments like poultry, seafood, and lean meats.
Success in the Poultry Segment
The company’s operations in India have already shown promising results, with a noticeable increase in market share, especially in the poultry segment. This success is attributed to the rising demand for chicken and other poultry products along with milk, driven by India’s growing middle class and changing dietary preferences.
New Solutions for Aqua Segment
In addition to poultry, the company is planning to introduce new solutions in the aqua segment. This strategic move to offer innovative feed and nutrition solutions for aquaculture, the company aims to capitalize on this growing trend.
Precision Service Solutions and Technology
The company is bringing precision service solutions like VeraxTM to its Indian customers. These digital tools are designed to help farmers optimize their farm operations through data analysis and precision feeding, resulting in higher yields and lower costs. While digital technology adoption in India may be slower compared to the USA and Brazil, there is significant potential for growth as digital infrastructure improves.
Expansion and Investment
To meet the growing demand in India, the company is investing in a new plant adjacent to its existing facility in Jadcherla, Hyderabad. Production at this new plant is expected to begin in August 2024, with a substantial capital expenditure investment. This expansion indicates the company’s commitment to serving the Indian market and its confidence in the region’s growth prospects.
Record Production Capacity
In March 2024, the company’s production capacity in India hit an all-time high, reflecting the trust and confidence customers have in its products and services. This record production capacity aligns with the company’s broader strategy to meet the increasing demand for animal nutrition solutions in India and ensure a stable supply chain.
Future plan for India
One of the key aspects of the future plan for thecompany is to expand beyond traditional blending operations and move into the production of feed additives. This strategic shift will not only support domestic demand but also enable the company to export these additives to international markets. By establishing in-house manufacturing capabilities for feed additives, the company aims to diversify its product portfolio, strengthen its supply chain, and open up new revenue streams through global exports. This approach underscores the company’s commitment to innovation and growth while providing a competitive edge in the animal nutrition industry.
“We are here to grow in India” Ivo shared.
India’s growth story is an essential part of ANH’s. With a robust economy, increasing demand for lean animal protein, and successful expansion into the poultry and aqua segments, the company is well-positioned to continue its growth in this dynamic market. Through strategic investments, digital technology, and innovative solutions, precision service , performance solution and sustainability the company aims to contribute to India’s evolving animal nutrition landscape.
