The idea is to combine Cargill and BASF's scientific and animal nutrition expertise to more quickly advance feed industry efforts around greater nutrient absorption through enzymes.
BASF is a pioneer and specialist in enzymes, owning a genomic library with more than two million microorganisms. Cargill is in a favorable position in the value chain – one that has direct interaction with both producers and consumer-facing customers. The two are looking to be leaders in the field of feed enzyme solutions globally.
A representative for the companies told us:
“Cargill has a broad service portfolio, a large database of experiments and global application know-how as well as great market access and a robust business structure. BASF's enzyme technology includes identification, engineering, registration, scale-up, production and formulation of innovative enzymes. Put the two together and you have an excellent market position, which we intend to develop further together.”
This expanded partnership builds upon the successful distribution collaboration both partners have developed across Brazil and the Middle East and Africa (MEA) in recent years.
Now moving beyond distribution, the firms are looking to joint development of new technologies, applications, and market expansion. “As part of the collaboration, the joint development teams will establish R&D, marketing, and go-to-market plans.”
Currently, BASF manufactures feed enzymes in Germany, while Cargill uses these enzymes in its additive portfolio, premix and complete feed solutions at many production sites.
In the mid and long-term, the partners said their focus will be on the development and launch of new enzyme-based solutions for feed application.
The introduction of enzymes in animal nutrition was a major step forward, according to Cargill and BASF.
“Enzymes improve nutrient retention from feed and animal growth thereby reducing nutrient excretion into the environment. They thus bring major benefits in terms of economic efficiency as well as environmental protection and sustainability. A phytase such as Natuphos E or the NSP enzyme, Natugrain TS, reduce nutrient wastage such as phosphorus and nitrogen excretion. The negative impact on the environment is minimized, improving the overall sustainability of animal production.”