Impact Covid-19 on young animal nutrition A FeedInfo interview with Hamlet Protein CEO

HAMLET PROTEIN CEO Erik Visser discussed the impact of COVID-19 on Young Animal Nutrition with Feedinfo. Below you can read the entire interview.

The COVID-19 pandemic was widely reported on in terms of its impact on the global livestock and poultry industry, perhaps less on the impacts on the early cycle of animal production: young broiler chicks, piglets and calves. Feedinfo asked Erik Visser how the chick, piglet and calf sectors are faring today, six months after the start of the global pandemic.

Piglets

In many regions pork prices increased, leading to increased demand for growth enhancing feed specialties that improve piglet survival. This can be seen in China, where ASF has put pressure on the local meat supply. In the US, the opposite has been happening, as we see a reduction of piglets in the market due to less farrowings and stricter culling protocols. Housing of market hogs leads to a reduction in barn space. If current market conditions prevail, this will also influence piglet feeding.

Young broiler chicks

Restrictions on the use of antibiotics are still in force in many markets and this is especially important when feeding young chicks. The relationship between nutrition and health has not changed in recent months, nor has the cost focus of poultry producers. With the onset of the pandemic, some companies have had to reevaluate their production methods by hatching and placing less chicks for grow outs than before and targeting lower market weights or shorter grow out periods. While production has not fully recovered, more recently there has been increases in demand leading to increases in hatch and placement amounts

Calves

We need to separate calves into rearing (beef/veal) and replacement heifers (dairy). We have seen a reduction in beef consumption due to Covid-19, as consumers have moved to less expensive meat sources; tourism has reduced significantly and food services in general have not been operating at normal levels. The need for dairy products has not changed and consequently the demand coming from high producing replacement heifers continues to be at the same levels.

Young animal nutrition is key to a healthy start and determines the productivity of the animal. But was this ever neglected in any way in the past six months? Did producers reduce young animal diet costs?

In general, we do not see a reduced interest in investing in young animal nutrition. Restrictions on use of antibiotics and ZnO are being enforced in an increasing number of countries and the need for safe and clean production remains relevant. High quality young animal feed remains as important as ever to achieve the overall productivity goals.

Piglets

Most nutritionists believe that young animal nutrition should never be compromised. Profitability greatly depends on feed costs, but nursery diets comprise a smaller percentage of overall feed costs. Lower quality nursery diets resulting in reduced performance may outweigh cost savings.

Young broiler chicks

Integrators have changed dietary composition to incorporate more ingredients that are inexpensive as a way to reduce diet costs; however, the importance of feeding the animals to meet their greatest potential and promote a healthy start has not been neglected.

Regardless of the issues presented with the COVID-19 pandemic, all parties involved in animal production (specifically poultry) still strive to meet their targets for production in the most efficient way possible. In most circumstances, it is a proper balance of reducing diet costs while still ensuring the nutrient composition of the diet will meet the requirements of the animal.

How has demand for young animal nutrition products evolved in 2020?

We have seen an increasing awareness on the importance of young animal nutrition in recent years. This is driven by the desire to reduce medication (ZnO, antibiotics) and new insights on the impact of early nutrition on gut integrity and performance at an older age.

Next to that we are noticing an increased interest to reduce (or eliminate) the inclusion of animal proteins (blood plasma, hemoglobins, fishmeal) in feed. In 2020, in general terms we see an increase in China; mixed picture in Asia; decrease in NCA and stable levels in EMEA. Our market presence in BRSA is limited. ASF has had a strong impact on Asian swine markets and recent outbreaks in Germany might lead to a redistribution of global volumes.

Piglets

Nutrition programs came under scrutiny at the advent of the COVID-19 pandemic, as producers looked for ways to slow growth in finishing phases. In general, this coincided with reduced diet costs. Nursery diets came under the spotlight to optimize current nursery programs and not necessarily to reduce costs. We do see a trend amongst producers in North America to put a hold on evaluating new technologies in current market circumstances.

Young broiler chicks

The demand for young animal nutrition products has changed based on specific production approaches. In a more conventional approach of production, the need for specialty feed additives during early growth phases may provide an added benefit but not a large enough benefit to be economically feasible. Conventional production changes associated with COVID-19 has led to a reduction in demand of some of these products, strictly as a way to reduce production costs.

In other specialty production approaches (ABF, Non-GMO, Kosher), the demand for high quality young animal nutrition products has increased due to health and performance benefits that align with their specific production requirements and goals.

Calves

A reduced demand for feeding rearing calves, demand for feeding replacement heifers unchanged.

More attention paid to starter feeds, precision and individual feeding, and the advent of new specialty ingredients have contributed to redefining young animal nutrition, making it a standalone field of animal nutrition research. Would you agree?

Absolutely. We believe that young animal nutrition is the key to increase productivity throughout the life cycle; and that a good start makes all the difference. Our company focuses purely on young animal nutrition and as such, we continuously invest in research and trials. As we are active globally, we see an increasing interest in young animal nutrition in general and in our product proposition in particular.

Supplementation of high quality specialty ingredients and precision feeding during starter diets can increase intestinal activity and development, improve digestion and absorption of nutrients, increase muscle development, and promote earlier development of immunity. Continued research is necessary to determine all benefits of these products related to young animal nutrition.

Piglets

Absolutely. In most cases, young animal nutrition has taken more steps towards precision feeding than other phases of production. Young animal nutrition is an exciting field because its multi-factorial nature presents several avenues for improvement.

Young broiler chicks

Absolutely. A large amount of research promotes the idea that the weight of an animal at market age is directly correlated with the health and weight of the animal during its first week of life. Early chick nutrition is vital as the first week can account for more than 20% of a bird’s total lifespan in the industry’s current production.

Supplementation of high quality specialty ingredients and precision feeding during starter diets can increase intestinal activity and development, improve digestion and absorption of nutrients, increase muscle development, and promote earlier development of immunity. Continued research is necessary to determine all benefits of these products related to young animal nutrition.

Calves

Absolutely. Early nutrition has a direct impact on animal’s productivity, reproductive potential i.e. fertility and longevity for rest of its life.

What does the young animal nutrition sector need to bear in mind for 2021?

The world will be focusing on its ability to deal with a new pandemic, while managing possible new waves of Covid-19. We will continue to see demands on nutritionists to manage the push for lower feed cost whilst efficiently producing healthy animals and balance between feed quality and animal productivity.

ASF and COVID-19 are further accelerating the consolidation in the feed industry. Larger integrated companies will pay more attention to young animal nutrition, as they will employ a larger and more professional nutritionist team.

Piglets

The swine industry is a commoditized market so a key metric to consider in the young animal nutrition sector is profitability. The challenge is to accurately measure profitability to make sound business decisions.

We see a large difference in pork prices between some of the key producing countries. Where US is facing a depressed price level, China sees record prices. Elevated price levels support the inclusion of high quality products in the early life stages. Pressure on feeding costs increases as market prices for pork meat decrease.

Young broiler chicks

The great challenge for poultry producers in 2021 will be, even more, to find the balance between cost and quality. Young animal nutrition will continue to be important, ensuring production is efficient enough to meet the changes in demand for local markets and export markets.