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May 11, 2011
 
Executive Talk: Chemoforma through the years - Rising above challenges and changes

An eFeedLink Exclusive

 
Dr. Klaus Hoffmann, Manager Scientific Services of Chemoforma Ltd.
A key challenge for the modern feed producer is to adapt and formulate new substances to keep pace with the development of new breeds in livestock and aquaculture species. In the following interview, Dr Hoffman from Chemoforma discusses how the company manages the changes, challenges and opportunities within the animal nutrition industry over the past five decades.
 
 
Chemoforma was founded in 1961. In terms of product development, how different is Chemoforma's current position compared to 50 years ago?
 
The focus of Chemoforma has changed completely when compared to the situation 50 years ago. The company name reflects the former focus on providing the tools to bring chemically synthesised compounds such as vitamins into a specific form suitable for the usage in livestock industry. Chemoforma today produces non-chemical feed additives to increase health and performance of animals in livestock and aquaculture the natural way. Chemoforma actively supports the "clean feed - clean food concept” in animal production to cope with the increasing demand of consumers for safe and healthy comestibles.
 
 
How have the industry's concerns about animal nutrition changed over the decades?
 
The increasing demand for animal products inevitably changed the focus of the industry. Farmers had to zoom in on high performance and cost-effective production. Unavoidably, the tools to achieve the targets sometimes compromised the quality of the products not only because of the general decrease of the price of animal products but also because of increasing competition on the market. Legal stipulations and consumers' attitude drastically changed in the recent years, and farmers and feed producers have to aim for economic and ecologic tools in animal production to be competitive. This requires a change not just in the minds of both farmers and feed producers but also in the minds of suppliers and producers of beneficial feed additives.  
 
 
What do you see as the recent challenges and opportunities in product development for the feed industry?
 
The development of new breeds used in animal production increased the performance of farms. Moreover, there is deeper knowledge and insight into nutrition. The challenge for the feed producers nowadays is to keep pace with the development of new breeds or new target species used in livestock or aquaculture. Different breeds or species have different nutritional requirements which need to be addressed in feed formulation in order to push performance to a maximum. Moreover, the changes in the legal situation in many countries forced force the feed industry to adapt feed formulations based on the legal requirements. There are lots of opportunities for feed producers in order to support farmers with feeds produced from natural and sustainable ingredients that conserve natural resources.
 
 
As the agribusiness industry continues to face high grain prices, does Chemoforma see this as an opportunity or challenge?
 
Increasing grain prices force the feed industry to reassess feed formulations. The demand of farmers for feed supporting animal performance on the highest level possible at a reasonable price directly impacts suppliers to provide additives with verifiable benefits for the industry. Claims on effects of additives need to be scientifically supported and sustainable. Therefore, the current situation is an opportunity as well as a challenge for Chemoforma. It is an opportunity because we know about the benefits of our products in  improving the feed conversion ratio of the animals or improving feed quality in general, and it is a challenge to adequately communicate these benefits to the industry.  
 
 
As competition increases in the yeast segment, the feed market expects rigorous scientific backing and development of new products to meet specialised needs. How do Chemoforma's products differ from the competition?
 
One of the biggest advantages of Chemoforma is the advance in the development of specified feed additives for different animal species based on numerous scientific and field trials worldwide. The continuous development of the products in the past leads to a balanced and intrinsic portfolio of products suitable for different applications and species in livestock industry and aquaculture. Chemoforma is working with specific formulations in order to adhere to the composition of the active ingredients in the different products and to fulfil the legal requirements on traceability and quality sustainability. The specific composition combined with the usage of purified raw materials and active ingredients makes them unique on the market.
 
 
Among ASCOGEN®, VANNAGEN®, BIORACING®, and ASCOSAN®, which is the one that contributes most to the company's revenue?
 
Chemoforma is active in both aquaculture and livestock industry. So ASCOGEN® and VANNAGEN® contribute most to the company's revenue. BIORACING® and ASCOSAN® are serving niche markets with lower impact on our revenue. Although these two products are also beneficial for the user, the impact is not gaugeable as easily as in livestock or aquaculture.
 
 
With regard to product safety and quality, how does the company give assurance on this to all customers/distributors?
 
Chemoforma is certified according to ISO and GMP regulations. Moreover, we are running an HACCP concept in our company. The GMP regulations request the implementation of a strict quality control system including the analysis of raw materials and final products. This ensures traceability of all materials used in the production process. Chemoforma can guarantee a specific minimal content of active ingredients and a composition which is available for distributors and/or customers upon request. Besides the regular in-house analysis of products and raw materials, we routinely analyse products for impurities and contaminations in accredited or federal laboratories.
 
 
What have been the latest developments in your products, specifically ASCOGEN® and VANNAGEN®?
 
The basic formulations for ASCOGEN® and VANNAGEN® are fixed and are therefore not altered anymore. However, Chemoforma is still improving the formulations and trying combinations with other feed additives to improve the effects of essential and conditionally essential nutrients in livestock and aquaculture. Those new products are usually launched with new brand names to distinguish from existing products. We hope to be able to launch new products soon. Initial trials have already been finished but we need to be sure about the benefits before starting to promote new products.
 
 
We see that Chemoforma has reached out to almost every major part of the world. How does Chemoforma fare particularly in Asia? Which Asian countries is it most dominant and why?
 
It is correct that Chemoforma is active worldwide. In Asia, we have distributors in all major countries running either livestock or aquaculture. It is quite difficult to make a ranking of the various Asian countries in terms of success in sales of our products. The figures tell one story but we always have to keep in mind the various local situations which sometimes hamper or favour the business. It becomes quite obvious that, especially in Asia, the turnover depends much more on the overall economic situation.
 
 
Moving forward, what are the company's growth plans and marketing strategy?
 
Chemoforma wants to improve its own portfolio with new and unique products in order to be able to better support the existing markets and to attain attendance in markets we are not present in at the moment or not yet accepted. Our focus at the moment is on the already established countries to support the distributors adequately and improve sales there before starting in new markets. But of course this is a second focus for the future.
 
 
Being present in the market for already half a century, what do you see as the company's areas for improvement?
 
The products of Chemoforma follow a quite unique strategy in animal nutrition. It is not easy to communicate or promote the existing and the new products because of their strictly scientific background. We need to rethink these strategies in order to improve the acceptance of specific classes of nutrients and to educate distributors, customers and users of our products.
 


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