June 17, 2020

Nor-Feed triples production of antibiotic alternatives at US$5.1 million factory

In the fourth quarter of 2020, French Nor-Feed will kick off production a new factory in Chemillé in the Maine-et-Loire region, a famous location for its herbs.An investment of4.5 million euros (~US$5.1 million; 1 euro = US$1.13)has been funded for this project to meet the continuous demand of natural additives due to the ban on antibiotics.

The global livestock industry in general and in Vietnam in particular is facing the problem of prohibiting the use of Antibiotics Growth Promoter (AGP) in feed. There are currently a handful of approved and effective AGP alternatives, including herbal extracts. With 100% natural products from plant extract, Nor-Feed has been effectively responding to the needs of the livestock industry in replacing AGP. Therefore, the company saw the importance of investment in a new factory to meet the rising demand for livestock additives.

Nor-Feed's turnover has surged from 3.5 million eurosin 2014 to 8 million euros in 2018. The new production site measures 2,500 square metres or 1.4 hectares.

Nicolas Tessier, production manager at Nor-Feed said the first production batch will be deliveredby the end of 2020. "This project has an estimated investment of about 4.5 million euros. After making a joint venture for production with Adatris, a supplier of organic herbal medicinal plants, Nor-Feed bought a stake in the company to own the factory," added Pierre Chicoteau, co-founder of Nor-Feed.

Pierre Chicoteau (right), Nor-Feed's founder and Nicolas Tessier, production manager of Nor-Feed

Larger and more modern, the new factory will be "capable of tripling production capacity," said Tessier. Especially, with a modern mixer, the company can produce powder and liquid products with full automation. A new process will also allow combining natural extracts (the main activity) with herbal ingredients, to standardize the product. "Around the world, consumers want to ensure that their animals are in good health, their animals will only receive medical treatment in an emergency situation",Chicoteau said. "The protection from plant extracts measures are completely self-sufficient. It is possible to effectively replace antibiotics that stimulate growth, thereby limiting antibiotic resistance which is becoming more and more serious in the feed production industry."

In 2006, Europe banned the use of antibiotics in feed as growth promoter. Recently, countries like Indonesia and Vietnam have implemented restrictive measures. Despite anticipating the strong growth of Nor-Feed, Chicoteau was surprised to see demand coming from all directions. "I did not expect to see a huge demand for safety in feed that many countries have achieved so quickly."