Kemin Industries’ New Aquaculture Division Targeted at Leveraging Emerging Opportunities in Aqua Feed Segment

The demand for feed sucrose went down in 2020 owing to the spread of corona virus disease across the world. As lockdown was imposed keeping in view public safety measures, shut-down of production units and market resulted in declining the demand drastically whereas in 2021 big along with small manufacturing companies are giving persistent efforts to improve their profitability. Research and developments for ensuring effective innovation and diversification is a major step taken on part of leading corporations for bringing quality in their offerings to gain market traction.

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What are Feed Sucrose Manufacturers Doing?

Some of the well-recognized companies including BASF SE, Evonic Industries, P&G Chemicals Corporation, Croda International, World Chem Industries, Compass Foods Corporation, Kent Nutrition Group, Kogyo Seiyaku Corporation and Mitsubishi Corporation are tapping untapped markets to extend their global presence throughout the world. In addition, these corporations are focusing on acquiring feed mills & small manufacturing companies and are also contracting with known suppliers for increasing their market share. Incorporation of business strategies like mergers & acquisitions, capacity utilizations, expansions, collaborations, joint ventures, partnership agrements, product diversifications, upgradations, e-selling, sales agreements etc has become an integral activity of leading corporations in 2021.

For instance, Tate and Lyle PLC, a leading global provider of food and beverage solutions and ingredients announced the launch of ‘Sweetener-Vantage Expert Systems’, a set of new and innovative sweetner solutions designed tools on 15th July, 2020. It is designed to help the formulators to create sugar reduced food and drinks using low calorie sweeteners.

It is developed in response to customer demands for more predictive tools to support product performance and reduce developmental time. Sweetener Vantage ExpertSystems enable formulators to more efficiently solve their formulation challenges.

The Sweetener Vantage suite of tools includes sweetener maps and selection tools, WikiSweet, Tate and Lyle’s proprietory encyclopedia of formulation challenges and solutions which Tate and Lyle Scientists use with formulators to help them to differentiate between and select suitable sweeteners.The first module in the Sweetener University series got delivered on 22 July, 2020. The Sweetener Vintage Expert Systems are meeting the high demands for accessible expert guidance to simplify and expedite the product developments in 2021.

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In addition to Tate and Lyle Corporation, ADM and Aston Foods Corporation announced the completion of ‘Sweetners and Starch Joint Venture in Russia in 2019. Archer Daniels Midland company and Aston Foods have successfully received all required regulatory approvals and launched their 50-50 joint venture to provide sweetners and starches to customers in Russia. The investment is aimed at expanding ADM Corporation’s geographic gfootprints in regions of expected growth worldwide.

The joint venture is acting as an exciting opportunity to bring together the experience and strengths to grow the jointly owned core business. Together, both these corporations are serving the customer’s needsand meeting the anticipated growth and demand both locally and globally. The joint venture is operating under the name AKP and is managed as a standalone entity. The joint venture is providing unique opportunity to develop synergies between the two parent companies with extensive competence in the production of sweeteners and starches as well as marketing and logistics.

Feed sucrose has been gaining increasing demand in livestock industry for its ability to improve metabolism and of high benefits to the animals. A few amount of feed sucrose is as important as essential requirement of protein, minerals, and fats for animals.

To make all the nutrients available for maintenance, production, growth, and reproduction of livestock, farmers have largely adopted feed sucrose. Due to its improved palatability and rapid fermentation in rumen, feed sucrose are used for feeding dairy cattle, which increase the dry matter intake as well as the solid or liquid passage from the rumen.

Continued focus of manufactures for the development of feed products that provide high nutritional value and improve the livestock production is likely to influence progress of feed sucrose market. In the regions such as Middle East where the cost of grains is soaring, farmers are looking for an alternative way to feed animals, especially poultry feed. This is anticipated to be a key factor driving the feed sucrose market in the Middle East region.

In addition, significant nutritional advantages and growing scope of end-use application including poultry, ruminant, aquaculture, and others are likely to favor the revenue growth of global feed sucrose market.

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BASF, Du Pont, Novozymes, AB Enzymes, Chr. Hansen and DSM, Kemin Industries and Sunhy Group are focusing on improving the performance and efficiency of the livestock feed. In a bid to offer good quality milk and meat, farmers are diversifying their investment towards health benefiting livestock feed products such as feed sucrose.

As animal forages and feed contains a range of toxins and contaminants from the anthropogenic and natural sources, farmers are spending on feed sucrose as it has a 94% higher metabolizability rate, unlike various grains. Leading companies are focusing on leveraging recent advancements in feed technology for the development of effective feed sucrose products.

Kemin Industries’ New Aquaculture Division Targeted at Leveraging Emerging Opportunities in Aqua Feed Segment

As nutritional requirements of various animals differ in terms of proportion, leading companies are focusing on investing in the development of novel products and expanding their product line. For instance, Kemin Industries has recently launched a novel aquaculture division to offer lucrative services to the aqua farms, aqua feed companies, and fish meal producers. The company will offer a range of products and services that will boost lipid nutrition, enhance the immunity strengthen oxidative control, and promote the health of aqua species.

Another leading biotechnology company, Syngenta recently collaborated with the researchers from Rothamsted Research team to developed innovative solutions for increasing the productivity of maize. The biotechnologists are focusing on increasing the productivity of maize by introducing a rice gene and regulating the accumulation of sucrose in its kernels. Implementing innovative techniques to boost production of sucrose-rich crops will contribute towards growth of the global market.

In addition, a global biotechnology company, Novozymes launched a new enzyme to lower the processing costs of maltose syrup producers and optimize the operations. The new enzyme, Secura is the first plant-derived microbial based amylase that offers various benefits to the maltose syrup producers.

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Some of these benefits include enhanced temperature stability, improved pH stability, and better strength. Use of this enzyme offers cost-effective benefits to the producers while manufacturing high-maltose and high-fructose maltose syrups. Through product innovation and launch, major companies are focusing on improving their position in the competitive market.

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