Stern Wywiol investing in Asian feed facility, expects sector to deliver in 2016

By Jane Byrne contact

- Last updated on GMT

'Feed played a big part in our growth last year and we are positive about prospects for that business in 2016' - CEO, Stern Wywiol Gruppe  Image: © istock.com/erwo1
'Feed played a big part in our growth last year and we are positive about prospects for that business in 2016' - CEO, Stern Wywiol Gruppe Image: © istock.com/erwo1

Related tags: Fat

The feed market is said to be a significant growth driver for Hamburg based functional ingredient producer, Stern Wywiol Gruppe, which had 12% growth overall in 2015.

We caught up with group CEO, Torsten Wywiol, to hear about prospects for the feed side of that German business, which comprises additives such as bypass fat powders, liquid fats, phospholipids, NSP enzymes, functional lipids, stabilizers and coated active ingredients including amino acids.

He said around 50% of the record sales figure of €444m the group achieved in 2015 could be attributed to the sales performance of the group’s feed additive division, Berg + Schmidt.

“Feed played a big part in our growth last year and we are positive about prospects for that business in 2016. We are on budget, we are on schedule,”​ said Wywiol, who added the sales target for the overall group this year is €470m.

Diversification

He noted there have been ups and downs in the global feed sector with crisis in some markets due to disease or price issues:

“It is often one animal segment that is more challenged than another. For example, we don’t expect European dairy farmers to spend much this year on feed fats for their animals’ energy needs with milk prices quite low.

“As a company serving the animal nutrition market it is critical to diversify, not to concentrate on one particular animal species but to have a broad range to allow the business adapt to certain market constraints.

But, overall, we do see greater stability in the feed sector over the next 12 months,”​ said Wywiol.

Capacity expansion

The group is investing €25m in both food and feed ingredient development in the next two years.

“Around €5m of that fund is going against expansion of our spraying capacity at our feed production plant in Malaysia,”​ said the CEO. 

That Malaysian facility produces granulates, powders and coated products for ruminants and monogastrics with the aid of spray cooling and spray drying. Fractionated palm fat and lecithin are the basis for the fat powders. “We are strategically located close to the raw material supply but supply global markets from Malaysia,”​ said the CEO.

Wywiol said the feed division is also investing in new technology to coat “innovative” functional ingredients with feeding trials in all livestock segments underway. New products are in the pipeline in relation to that R&D project. “We should roll out that new range in about six months, most likely at the end of Q3 2016,”​ he added. 

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