Royal DSM announced it has reached an agreement to acquire Prodap, a Brazilian animal nutrition and technology company that combines technology offerings, consulting services and customised nutritional solutions to drive efficiency and sustainability in animal farming.
Precision farming is growing rapidly, driven by the increasing demand for sustainability, efficiency, traceability and animal welfare in food systems under pressure to provide the world's rising population with animal protein, DSM said.
The company's precision nutrition solutions for animal nutrition and health include Verax™, a unique and innovative integrated animal management system that leverages data to provide a deeper understanding of the health, productivity and welfare of animals, and Sustell™, an intelligent sustainability service designed to enhance the environmental sustainability of animal protein production.
Based in Belo-Horizonte, Brazil, Prodap is at the forefront of the market for digital solutions, which is growing particularly quickly in Brazil.
The company combines nutrition, consultancy and technology services to optimise ruminant farming operations. Through its portfolio of digital solutions, it collects data and develops insights in real time, which are then translated into tailored nutritional solutions for customers, with remote or in-person support provided by its experienced consultants.
Prodap has operations in the states of Mato Grosso and Minas Gerais and employs 330 employees, serving more than 5,000 farms across Brazil with impressive customer loyalty rates.
By harnessing the power of Prodap's digital solutions, DSM will take another step forward in its Precision & Personalization journey. It will strengthen and further develop its digital solutions to reach more markets globally and species, enabling smarter nutritional decisionmaking thanks to artificial intelligence and other tools.
Prodap will complement DSM's deep animal nutrition knowledge and advisory capabilities with its extensive consultancy experience, facilitating an even higher level of customer experience. Additionally, by supporting more efficient farming, the acquisition contributes to DSM's commitment to enabling a double-digit reduction in on-farm livestock emissions by 2030 as part of its 2021 food system commitments.
Ivo Lansbergen, executive vice president of DSM Animal Nutrition & Health, said: "The need for sustainable animal farming has never been greater or more urgent. Precision nutrition is a key pathway to improving the efficiency and sustainability of animal farming, creating value for a range of stakeholders, including farmers and society at large. As such, I'm delighted that we're joining forces with Prodap to deliver precision farming solutions to our customers, which will contribute to more sustainable animal farming for all. Together, we make it possible!"
Leonardo Sá, CEO of Prodap, said: "We are delighted to have found a company like DSM that sincerely shares our purpose on transforming the livestock worldwide and vision of adopting the new technologies essential to achieving sustainable and efficient farming. We look forward to accelerating the expansion of these new technologies in the industry, together with DSM."
The transaction, which remains subject to customary conditions, is expected to close in 2022.
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