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Executive Talk

Daeho: Adding value to farmers' lives and the environment
 

 

In July 2011, South Korea became the first Asian country to impose a total ban on antibiotic growth promoters (AGPs) in animal feed. The ban naturally created new growth opportunities for Daeho's natural growth promoter (NGP) business.
 
But in fact, Daeho had then already been developing fermentation technology for probiotics (a type of NGPs) for more than 30 years, continually isolating better bacteria and yeast strains for improved products, vice president Mr. Lee Hyung-ho tells eFeedLink.
 
Mr. Lee sees Daeho's mission as "adding value to farmers' lives and the environment", and eFeedLink learns how he is helping to shape the company's business model and strategic direction.
 
 
 
eFeedLink: Please tell us more about Daeho's NGP business.

For more than 35 years we have been developing our fermentation technology for our probiotic products, and have been continually isolating better bacteria and yeast strains to come up with better products.
 
We select the best substrate. We have dedicated manufacturing lines for each strain. And during the microbial fermentation process, we select optimal parameters such as in terms of timing and temperature. All these help us ensure that we will have a better product which is efficacious.
 
Probiotics are in fact among the most popular products among Daeho's product portfolio, apart from feed quality preservation products, which include mould inhibitors and antioxidants. I have further plans to direct our promotional efforts to our probiotic products.
 
For organic acid products, they can be broadly divided into two main categories – acidifiers and antimicrobials. The cheaper products generally have only acidifying properties in feed, whereas the more expensive ones tend to be focussed on having antimicrobial function in the gut. Our organic acid products are made to work in both ways.
 
We are also capitalising on the rapid growth of the organic acids market in the Asia Pacific region through our aromabiotic products, which are formulations of medium chain fatty acids.
 
Our products enable acetic acid to be generated in the rumen of cattle, reducing methane emission, thereby contributing to a more carbon-free and sustainable production, and ensuring better energy utilisation by the cattle.
 
As for our research into phytobiotic products, we study the function of each polyphenol molecule, and apply them specifically in animals.
 
While our production is currently focussed in Korea's Gyeonggi Province, we see export demand increasing and I have plans to set up factories in foreign countries like China.
 
 
How is Daeho keeping up with providing solutions against animal disease outbreaks in South Korea and elsewhere in the world?
 
We can deal with such disease outbreaks in three ways.
 
Vaccination used to be the best way, but with increasing pathogen resistance to vaccines, vaccine titres have to be increased to provide the same level of protection.
 
So our NGP products help to cope with disease outbreaks in a second way, by improving the immunity of animals.
 
And of course ensuring good biosecurity is a third way, and Daeho has developed five different types of disinfectants (antimicrobials) for this purpose.
 
 
Please tell us more about Daeho's business plans in the next five years.
 
Currently, our key markets are the Middle East, Southeast Asia and Northeast Asia. We started exporting our products one-and-a-half years ago.
 
We are also registering products in South American countries like Chile and Peru.
 
I plan to increase our export revenue by tenfold, and develop breakthrough products which other companies would find it difficult to replicate within a short time span.
 
 
What research will Daeho engage in in the future?
 
We are working with the South Korean Government to develop microbes that produce strong metabolites which act against salmonella in the animal gut.
 
We are also working on six different strains which can be used to treat food waste by breaking down cellulose, proteins, lipids and carbohydrates. If feasible, I hope to develop this into a new business for Daeho!
 
Daeho's current product offerings are for the poultry, swine and ruminant sectors. Based on feedback from our customers through our China distributor, we see that there is a market need in the aquaculture industry for water purification products. Water pollution in ponds are becoming an increasing problem, as farmers have to reuse water contaminated with pathogens thriving on leftover feed and faeces in the ponds. We are developing a few products to tackle this problem.
 
 
Please tell us more about Daeho's business in China.
 
Through our Chinese distributor, we have registered two products, are registering three more, and may be done by November.
 
While we are focussed in the western regions of China for now, we will move to the east in two years.
 
And apart from water purification products for aquaculture as earlier mentioned, we are selecting more products for distribution.
 


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