January 9, 2020
Cargill: New animal & human health enterprise presents a stronger synergy
In September, Cargill launched a new business unit that is focused on animal and human health products - a move that underscores the agribusiness giant's reorganising of its animal nutrition business.
Cargill's animal nutrition and health group will now consist of three units: Cargill Animal Nutrition (combining its existing feed, nutrition and premix businesses); Cargill Aqua Nutrition; and the new Cargill Health Technologies.
The new unit will focus on "specialty health ingredients, building a digestive and immune business for humans and animals," the company said in a statement.
LIVESTOCK & FEED Business speaks to Chuck Warta, the president of Cargill Health Technologies, who will lead the unit.
Chuck Warta, president of Cargill Health Technologies.
According to an announcement by Cargill, its Animal Nutrition & Health enterprise will now consist of three groups: Cargill Animal Nutrition, combining its existing feed, nutrition and premix businesses; Cargill Aqua Nutrition; and the new Cargill Health Technologies.
Please elaborate more on the synergy that can be derived among the three businesses.
Our customers deserve the best we have to offer - whether it's products, solutions or Cargill talent. Our decision to reorganise was focused on strengthening our business to better serve our customers in a rapidly evolving market. We believe it will allow us to drive decision-making and innovation closer to customers, building trust and innovating together to help them thrive.
For Animal Nutrition & Health, it's about innovating what matters across all three groups to deliver performance, health and well-being and sustainability outcomes that our customers and consumers are seeking.
By combining our compound feed and premix and nutrition businesses as Cargill Animal Nutrition, we can leverage the strengths of each business to offer a more integrated experience across species, providing adaptability and flexibility to serve the needs of our customers now and as they grow and evolve over time. The best outcome may require compound feed, additives, digestive health products, digital tools or all of the above. This new structure allows us to bring the full breadth of Cargill's solutions for a seamless experience – something our competitors can't match.
We remain committed to growing our Cargill Aqua Nutrition business, enabling the success of our customers and strengthening our sustainability focus.
The move to stand up Cargill Health Technologies as a group is an example of Cargill's commitment to building a leading digestive and immune health business for both animal and human application.
2.Human health, aqua nutrition and animal health are fields that are uniquely distinctive from each other. What are the influencing factors that they could find common ground among the units in relation to supporting the business of the parent group they are now a part of?
As an enterprise, Animal Nutrition & Health has changed our portfolio dramatically over the last decade, expanding into premix, aquaculture and health technologies. We've combined our compound feed with our premix and nutrition businesses, continue to focus on innovation and sustainability in our aquaculture business and have added the word health to our enterprise name to reflect its rising importance among both customers and consumers and to highlight the investments we are making in our Cargill Health Technologies business.
The link between healthy animals and healthy food is something our customers and consumers understand, so we see it as a continuum. The underlying capabilities and technologies in human health are the same as in animal health, and health technologies will play a key role in improving health and well-being, productivity and sustainability in the food ecosystem, which provides an incredibly strong link across all three businesses.
Given the differences between animal/aqua nutrition and human health, why did Cargill decide to integrate these businesses under one parent unit, instead of operating them under different parent entities (i.e. one parent group for livestock/animal nutrition and another for human health)?
The link between animal health and nutrition is incredibly strong. So when we think about raising animals, we must start with their health at the forefront. This is equally true with human nutrition - food - and the interplay with health. The underlying capabilities and technologies in human health are the same as in animal health, and health technologies will play a key role in improving health and well-being, productivity and sustainability across the food ecosystem.
Given consumers' increasing awareness of the link between health and nutrition and their growing need for more information, transparency and understanding about how animals are being raised in healthy and sustainable ways, we realised that we could gain considerably more synergies by bringing all three businesses together under the Animal Nutrition & Health umbrella.
In terms of research and development, please describe the impact the new formation would have on this aspect of Cargill's business.
This new structure gives all three groups an increased focus and clearer view to the future on research and development. In Cargill Health Technologies, we are applying science, technology and research to our existing capabilities to develop new areas of growth in the microbiome and in technologies that will enable vitality and a higher quality of life across animals and people. Ultimately, we will drive better overall health and unlock the full potential of the bodies we're feeding - animal, aqua and human.
Through the new Animal Nutrition & Health group, what are the new products Cargill plans to develop and launch in the next few years?
Animal Nutrition & Health will continue prioritise its efforts on developing new products and solutions that focus on solving one of the biggest challenges the world faces: how to feed 10 billion people in a safe, responsible and sustainable way.
We have been very active introducing new products and solutions across animals and humans. For example, our Embria Health Sciences business that focuses on human health has worked with customers to launch more than 10 new offerings this year. And we have seen similar new product launches in our companion animal, aqua and swine space.
In what way will the new unit meet its sustainability strategy in any aspect?
Agriculture has the opportunity to advance the UN Sustainable Development Goals.
Cargill is delivering solutions to nourish the world and protect the planet. For decades, we have helped farmers do more with their feed. They expect us to provide distinctive solutions that allow them to achieve performance, health and well-being and sustainability. In Animal Nutrition & Health, we are focusing on these outcomes to help us keep customer and consumer needs paramount in everything we do.
Cargill Health Technologies will play a key role in helping Cargill achieve its sustainability goals. For instance, consumers want to know that animals lived well, and that the protein they feed to their families is safe. Our Diamond V products can help strengthen animals' immune systems, thereby allowing animals to use critical resources toward growth rather than fighting disease. Farmers using Diamond V products have reported cattle getting sick up to 50% less often, helping to reduce the use of antibiotics and to protect their efficacy. Healthier animals produce safer food. These products also promote pathogen risk control, helping to keep consumers even safer.
Our minority investment and commercial partnership with Delacon allows us to bring our customers Delacon's full range of phytogenics, or plant-based feed additives. Delacon's additives help animals convert more feed to protein and can lower methane from cows by up to 20% and ammonia from chickens and pigs by up to 50%.
These are just a few examples of how Health Technologies is already driving sustainability, and we remain incredibly optimistic about the additional efficiencies we will be able to achieve to help Cargill reach its sustainability targets.
In what way will the formation of the new unit affect, influence or even integrate current agreements, projects or other initiatives that Cargill is a part of?
All of these are real examples of Animal Nutrition & Health's customer commitment and Cargill's mission in action - to nourish the world in a safe, responsible and sustainable way.
Feeding Intelligence offers the knowledge and support our customers want most. In a fast-changing industry with increasing regulatory and consumer demands, farmers need an advocate they can trust. We're feeding the animal farmer's need for knowledge, support and a clear vision for where intelligent farming practices can take them-and then connecting those advances with consumer concerns.
Consumers tell us they want farmers to prioritise providing "safe, healthy, abundant and affordable food." We're committed to helping farmers do just that-while feeding consumer intelligence on where their food comes from. Together, we can spur health and innovation to evolve our food ecosystem intelligently.
Farmed seafood is a key part of intensified food production that supports the health of our planet - and the health of the people who live on it. New ways of capturing the essential nutrients for the broad variety of seafood that we feed in sustainable ways are required, so that we can expand our raw material basket. Our recent partnerships with InnovaFeed and White Dog Labs focus on new and novel feed ingredients which will help us work with customers to bring new and sustainable ways to feed the growing population.
In relation to the gradual phasing out or replacement of antibiotics used to support livestock growth, how does Animal Nutrition & Health group tackle or plan to approach this challenge?
In Cargill Health Technologies, we want animals and humans to live more healthier days.
We have a vision to eliminate the need for antibiotics through improved health. And our investments in Diamond V and Delacon have led to standing up the new Cargill Health Technologies group. Our entire business strategy is focused on improved gut health, immunity and microbiome modulation.
We will continue to invest and innovate in this area. Ultimately, success will mean that both animals and humans are healthier and safer, with even less need for antibiotics in the food ecosystem.
- TERRY TAN
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