Animal nutrition continues to deliver for DSM

By Jane Byrne contact

- Last updated on GMT

© GettyImages
© GettyImages

Related tags: Brazil, China, African swine fever, Fish oil, Methane

DSM says its animal nutrition division had a strong year, with 8% organic growth in the underlying business. The feed additive producer released its overall full year 2018 financial results today [February 14].

Animal nutrition continues to benefit from its strong position in higher growth, well diversified, premix solutions activities through its ability to address a wide range of species, as well as its diversified geographic presence.”

Volumes for the animal nutrition business showed 4% growth, achieved against a tough prior year, said the company.

Conditions in almost all regions were favorable in 2018, it said. Sales to Brazil were softer due to temporary shutdowns, mainly caused by strikes in Q2, said DSM. Prices in the underlying business increased by 4% driven by pricing initiatives to mitigate higher costs of sourced ingredients and the impact of negative exchange rate developments, said the feed additives producer.

Prices were also supported by the effects of the Chinese government’s new environmental strategy – known as the Blue Skies policy - to tackle air pollution, reported DSM. To address that policy proactively, it shut down its vitamin C plant in Jiangshan, for several months in mid to late 2018 in an effort to make production at the facility more environmentally sustainable and efficient.

In other sustainability related moves, the company reported significant progress in terms of its fish oil replacement joint venture with Evonik, called Veramaris, during 2018. Norwegian salmon farmer, Lingalaks, is using the oil substitute to replace fish oil in feed for 50% of its salmon stock.

The Dutch group also noted advances in Project Clean Cow; it said it has collated the data needed to file for regulatory approvals in its targeted launch markets for a feed additive aimed at dramatically reducing methane emissions from cattle.

Fourth quarter, 2019 outlook 

The company said Q4 2018 saw continued good business conditions for animal nutrition sales in all markets.

The impact from African Swine Fever (ASF) in China and Eastern Europe was largely mitigated by strong growth elsewhere and DSM's strong foothold in species beyond pigs.

The Dutch company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 26% overall in 2018, in line with its own expectations, aided by supply issues at competitor BASF that caused a huge increase in vitamin A and E prices in the first nine months of the year.

In terms of outlook, DSM said it expects ‘mid-to-high single-digit growth’ for its core profit this year.

Related news

Show more

Related products

show more

Modern molecules to support antibiotic reduction

Modern molecules to support antibiotic reduction

Perstorp | 10-Feb-2020 | Technical / White Paper

Though solutions based on organic acids have been used for various benefits in feed and feed raw material production for decades, the developments are...

Galli Crunch, developed to be better

Galli Crunch, developed to be better

Nuscience Group | 28-Oct-2019 | Technical / White Paper

In commercial hatcheries, chicks hatch over a wide hatching window, depriving them from feed and water for up to 72 hours.

Rumi Start maximally nurtures your young potentials

Rumi Start maximally nurtures your young potentials

Nuscience Group | 09-Sep-2019 | Technical / White Paper

Maximizing efficiency is key for dairy and beef farmers to obtain better revenues. Accelerated calf rearing without losing focus on health issues is vital...

HOW TO CHOOSE A GOOD SELENIUM SOURCE FOR YOUR FEED?

HOW TO CHOOSE A GOOD SELENIUM SOURCE FOR YOUR FEED?

Lallemand Animal Nutrition | 19-Jun-2019 | Technical / White Paper

Nutritionists are aware of the benefits of feeding organic selenium (Se) to animals instead of inorganic, mineral sources. However, when it comes to selecting...

Related suppliers

Follow us

Products

View more

Webinars