Thinking of the Big Picture: An Interview with Nutreco’s Martijn Adorf
Driven by increasing pressure from consumers and the food industry, today’s integrators need to reduce antibiotics use while not compromising on feed efficiency and animal health at the same time. In an interview with LIVESTOCK & FEED Business at EuroTier 2016 in Hanover, Germany, Martijn Adorf, managing director of Nutreco’s feed additives division, shares on how Trouw Nutrition, a Nutreco company, uses a combination of feed, farm and health management approaches to benefit customers.
LFB: The names Nutreco, Trouw Nutrition and Selko are often thought to be one corporation. What really is interrelationship among the three?
Martijn Adorf: Nutreco has two global company brands; Trouw Nutrition for animal nutrition and Skretting for fish and shrimp feeds. These companies are the roots of Nutreco, both family-owned businesses, which have been operating for a very long time — in fact, since 1899 for Skretting and 1931 for Trouw.” After Nutreco was formed as a result of a management buy-out from BP Nutrition
in 1994, it was listed on the NYSE Euronext Amsterdam stock exchange in 1997. Five years later it acquired the Dutch company Selko B.V., which became the feed additives brand of Trouw Nutrition. In 2015, Dutch family owned investment firm SHV bought Nutreco, resulting in its delisting from the bourse.
What is the business model of Trouw Nutrition?
We are essentially a full nutrition solution provider focusing on customer needs. Trouw Nutrition offers a broad range of specialised (feed additive) products, knowledge, and services that enable our customers to optimise their business. In Asia, we have plants in China, Indonesia and Vietnam, and we are investing more in aqua feed, premix and feed additives plants around the world. We are also investing in people development by setting up our regional office for Asia Pacific region in Bangkok. It is part of our efforts to develop global teams and local experts.
Which animals do you provide solutions for?
Trouw Nutrition has traditionally been very strong in the dairy sector, but our Selko brand for feed additives currently mainly focusses on swine and poultry. With Nutreco’s acquisition of Micronutrients in the first quarter of 2016, we have strengthened the Selko brand with the IntelliBond® range, a leading hydroxy trace mineral range in the US. We are now launching this product line globally for swine and poultry and intend to expand into ruminants. After this successful integration of Micronutrients, Nutreco is always interested in acquiring more feed additive companies.
What does it mean to be a full animal nutrition solution provider?
The livestock industry faces big challenges and therefore opportunities, shaped by the global trends of growing demand and struggling supplies. There is a need for integrators, our key accounts, to optimise their business by increasing productivity and efficiency, in an economic and sustainable way. We feel that to be able to help integrators reduce their use of antibiotics while not compromising on feed efficiency and animal health, is a big contribution to the future of farming. It can’t be done with a silver bullet, but we believe it is possible by a combination of feed, farm and health management approaches, which could include ensuring safe feed and drinking water, better gut health, optimal digestion, and keeping harmful pathogens like salmonella off the feed-to-food chain. This integrated approach for key accounts calls for specific capabilities and knowledge to provide management advice and a real long-term solution to the customer. It is therefore very important to work closely together with all stakeholders in the integration, to get to the bottom of a problem. For smaller farms, Trouw Nutrition also has a sales network and distributors to service their needs.
How is the Selko brand of feed additives being offered in the process?
Selko® Feed Additives was founded in 1983, as a leading manufacturer of preservatives for raw materials and finished feed. When Selko became part of Nutreco in 2002, the portfolio expanded to include health and nutrition additives. Now, as the feed additives brand of Trouw Nutrition, Selko is part of a solution rather than just products, with focus areas like Feed Safety, Gut Health and Salmonella Control. Selko solutions are offered as a complete programme consisting of products, know-how and services. These programmes are unique for every customer, tailor made with farm management advice, feed formulation advice, laboratory tests, and products such as blends of organic acids, minerals, and mycotoxin binders.
How relevant is your business model in countries where you operate?
Wherever you are in the world, I see leading companies starting to offer antibiotic-free branded meat and dairy products. In my recent trips to China, Indonesia, the Philippines, Australia, Brazil, etc., consumer awareness about such hazards is clearly increasing, and front-runners in the animal industry are preparing to deliver on this challenge. From our experience with numerous key accounts and from the results of our validation trials, we believe we can help them to take the next step.
The major feed additive companies globally are adopting a solution service model as a strategic business approach. How does Trouw Nutrition differentiate itself from the competition?
Trouw Nutrition is set apart from competition through the broader scope — knowledge, products, animal nutrition models, services and capable people with diverse technical backgrounds that influence bottom-line results of our customers — all done with a vision of the big picture: Feeding the Future. This is how we add value to animal production business in the most sustainable way. ❑