FBA Issue 21: July / August 2008
Perstorp: Innovative solutions for livestock health & high feed prices
by Gemma C. DELMO
Given today's high feed grain prices and recurring supply shortfalls, getting the most from scarce feed is becoming an important priority for feed millers and livestock industries alike. Consequently, now more than ever, livestock producers are seeking high-value, yet economical feed supplies. The ability to productively use and preserve feed grains is particularly important, as they constitute at least 80 percent of livestock's total cost of production. Hence, prolonging the storage life of the scant corn and soy becomes more vital and Perstorp Performance Additives knows this. The company's objective is to maximise the value and utility of feed.
From the viewpoint of science, this can be done in several ways including feed preservation and optimising protein digestion through feed acidification while inhibiting pathogenic microbes such as salmonella, E. coli and clostridium.
"Performance additives like our corn and soy enzymes will help to make better use of the raw materials fed to the animals; this will reduce feed costs," says Dick Roele, the company's senior business development manager. "Organic acids will help to reduce pathogens in the gut of the animals, thus reducing medicine costs and producing meat without the use of AMGP's (antimicrobial growth promoters). Our toxin binders and mould inhibitors will reduce losses of mould-related problems by preserving the quality of raw materials and feed, and cancelling out the effects [of mycotoxins] on performance by the use of our immune-stimulants and toxin binders."
The science is a given but to from a customer perspective, to deliver these benefits to livestock end-users, Perstorp's 2005 merger with Franklin Products International created new synergies. Once merely used to raise productivity, today's high feed costs and livestock disease outbreaks are making Perstorp's products an innovative solution to these challenges.
A long history & recent merger
Indeed, while Perstorp is now adapting to the early 21st century's feed market's unique circumstances, the company has a long, venerable history of answering the demand of feed millers and livestock producers. Before Perstorp Performance Feed Additives came into inception, the company was a division of the 125-year old Dutch chemical conglomerate, Perstorp Group. This division has already been producing livestock feed supplements for fifty years. In the 1960s, Perstorp was one of the first companies to introduce acid-based silage additives to the market.
While Perstorp was making a name for itself, during the 1980s, long before acidifiers displaced antibiotics, Franklin Products International - now integrated with Perstorp - was pioneering the use of lactic acid in formulas for acidifiers and antibacterials in the European market. Roele recalls that, "Franklin was always a company that aimed to add value. A lot was invested to get the know-how needed to add value. Research and development resulted in a lot of knowledge on the efficacy of products and recipes." Today, the company employs 2,000 workers and is internationally recognised as one of the leaders in the livestock specialty chemical market. Its operations extend to Asia, Europe, North and South America.
Sensing a good fit, the April 2005 merger of Perstorp Business Unit Food and Feed with Franklin Products made the combined company more prominent in the agriculture sector. Each side brought various strengths in fields such as acidifiers that complimented one another with little overlap.
A wide product range
Now renamed Perstorp Performance Additives, this new subsidiary accounts for six percent of Perstorp Corporation's total sales. To rationalise and bring forward the best strengths of both Franklin and Perstorp, feed additive product ranges were combined, along with research data and knowledge about product properties and customer demand. "This has clearly improved the market position of Perstorp Performance Additives. Work on improving the brand recognition is in full progress at the moment," Roele says.
Having successfully digested its merger with Franklin, Perstorp Performance Additives now boasts five product groups, with brands divided according to their application areas: ProSid for mould inhibitors, toxin binders and immune stimulants; ProMyr for silage additives, nutrient preservation and treating bacterial spore contamination; ProPhorce for acidifiers, antibacterials and feed preservatives; ProFare for enzymes that facilitate easier feed digestion; and ProTain for antioxidants that stabilise feed ingredients.
As competition intensifies in the feed additive market, Perstorp continues stay ahead by producing high quality organic acidifiers including propionic acid, formic acid, calcium propionate, sodium formate and sodium propionate. What differentiates Perstorp from its rivals is research and development which focuses on optimising acidifiers' antibacterial properties by combining them with essential oils. "Other companies who produce feed additives often focus more on the nutritional advantage of additives and not on the antibacterial possibilities," says Roele.
The above are excerpts, full versions are only available in FEED Business Asia. For subscriptions enquiries, e-mail membership@efeedlink.com |