ADM invests over $30m in new facility in Spain to meet growing demand for probiotics
The production site represents an investment north of $30m and a more than five-fold increase in ADM’s production capacity, increasing it to 50 metric tons annually.
The first facililty, globally, to produce both probiotics and postbiotics, at the same site, it will allow the US company to supply growing markets for probiotics and postbiotics in the US, Asia-Pacific, and Europe.
ADM said the capacity expansion enabled by this build will help it realize its ambition to increase health and wellness revenue from over $500m in 2022 to $2bn within 10 years.
A Euromonitor report estimates that the probiotic supplements retail market could surge to $10.4bn by 2027 from about $8.3bn in 2022. That growth is being driven by rising demand for science-based probiotic formulas that are used in dietary supplements, and also dairy products, food, healthy snacks, and beverages, as well as pet and animal feed.
The new facility is located close to ADM’s R&D center in the University of Valencia Scientific Park, where its scientists undertake activity including next-generation genome sequencing and early-stage testing of new bacterial strains.
Last September, ADM outlined how animal nutrition has an important role to play in positively influencing animal resilience.
Resilience describes an animal’s ability to respond to and reduce the impact of stressors. A variety of external pressures have elevated the need for more resilient farm animals, including consumer focus on how animals are raised, the environmental impacts of animal production, less reliance on antibiotics and a business’s profit margins, according to a report from the US company.
And a lack of resilience can mean higher production losses and added costs for veterinary services, health treatments and labor costs, it noted.
The gut microbiome is emerging as a central component to overall health and well-being, with the microbiota ensuring nutrient absorption while also defending against pathogens, said the company, with it outlining how increased exposure to bacteria and viruses can heighten the risk of disease and negatively impact an animal’s health and growth performance.
ADM scientists and others are exploring the physiological and metabolic changes that accompany an animal’s exposure to stressors to learn more about the mechanisms the animal uses for necessary functions. The company said this approach can also help find new ways to support efficiencies by using nutrition to accelerate recovery and minimize the impact of negative stressors on performance.