July 7, 2017
Delacon, Cargill partnership to meet growing demand for phytogenics
Delacon and Cargill have agreed to a strategic partnership that will advance the market presence of natural, plant-based feed additives on a global scale, and meet changing consumer preferences of what animals are fed and how food is produced.
The deal includes a minority equity investment from Cargill. Terms were not disclosed.
The partnership will connect Cargill's expertise in applied nutrition and global presence with Delacon's knowhow and market experience in phytogenic feed additives to improve animal performance and secure animal health for sustainable, wholesome food production.
The agreement also will allow the companies to expand their technical and go-to-market capabilities to meet customers' needs around the world as they pursue the joint mission of growing the phytogenic feed additives category.
For Delacon, the partnership will give access to countries worldwide, where it does not have a market presence today. For Cargill, the investment expands its presence and capability in the additives space, with a focus on select markets outside the United States. Delacon's successful distribution and partnership network will be retained, and developed further to make plant-based feed additives more available around the globe.
"Our agreement with Cargill represents an opportunity to accelerate growth and invest in Delacon's future and the future of phytogenic feed additives, as our customers are looking for solutions delivered in a natural, efficient and sustainable way – from feed to food," says Markus Dedl, chief executive officer, Delacon. "Phytogenics are one of the most promising groups of feed additives, and are turning from a niche market into a mainstream need. We are entering a new era of phytogenic feed additives, and the next five years are decisive for the developments in this growing market."
This strategic partnership builds on the successful collaboration that Delacon and Cargill have built over the last several years.
"Delacon has a strong reputation, recognisable brand and a deep commitment to scientifically-driven customer solutions that focus on healthy animals, feed efficiency and performance in a sustainable manner," says Chuck Warta, president, Cargill Premix and Nutrition. "Cargill and Delacon share common values - a commitment to our customers, science-driven innovation and high product quality. We also value a positive and safe work environment for our employees, sustainable and responsible business practices, and deep ties to our communities."