China feed enzyme market are booming in recently two years with many strong local companies, while international companies like the DSM/Novozymes Alliance (Alliance) will not give up on this big potential. Do they have any chance?
文/图 农牧前沿 罗丹
How big is the China feed enzyme market? You can tell by watching enzyme companies’ amazing booth in feed expos. How hot is the China feed enzyme market? You can tell by counting how many attendees in feed enzyme conference. China is a traditional big livestock and aqua production country with a great potential on feed enzyme. Not a surprise, the global feed enzyme leader Alliance do not like to lose China feed enzyme market with such potential.
The Alliance was found on 1998 with exclusive collaboration between two leading companies in their own area. Novozymes are focusing on enzyme R&D and production optimization, while DSM are focusing on product application, sales and direct customer facing activities.
图左：诺维信丹麦饲料应用与科学支持部门高级科学家Mads Brøgger Pedersen
2018年下半年联盟调整了战略，组建专门的团队开拓中国市场。10月，联盟总监Robert Vergo及诺维信丹麦饲料应用与科学支持部门高级科学家Mads Brøgger Pedersen以帝斯曼-诺维信饲料酶制剂联盟的身份出席了第二届饲用酶制剂科技与产业发展大会。
The Alliance made a strategical adjustment and built a dedicated team to developing China feed enzyme market in late 2018. Both Robert Vergo (Robert), the Director of Alliance, and Mads Brøgger Pedersen (Mads), the Sr. Scientist of Novozymes Feed Application, attended 2nd China Feed Enzyme and Technology Conference on behalf of the Alliance.
Why are the Alliance the top one feed enzyme company in the world? How do they see the position of enzyme in anti-biotic free production system? What is the future direction of global feed enzyme R&D? The Agriculture Frontier interviewed Robert and Mads before the conference for above questions.
The Alliance holds 28-30% market share of global feed enzyme industry and far above other companies. Why are the Alliance the top one feed enzyme company in the world? Both Robert and Mads were mentioned about R&D capacity. Robert mentioned about that Novozymes R&D is dividing by two parts: the 1st part is basic R&D which is not specific for any industry; the 2nd part is application R&D which Mads located. The major responsibility of Mads is to screen specialized enzyme for feed industry. “We have covered from basic to application R&D”, Robert mentioned.
How strong is Novozymes R&D? First, Novozymes are dedicating 13-14% of total revenue to R&D. Second, Novozymes has 6500 employees in total with 1400 R&D employees which is more than 20%. That is why the Alliance can keep leading the global feed enzymes industry. “That is why we can keep developing new products and providing new biological solution to our customers”, Robert said. It is worth mentioning that Novozymes was established their China R&D center in 1997, which involves to new enzyme selection, industrial application, production optimization, etc. This R&D center has more than 150 scientists now. They are making the Alliance stronger within China by expanding their team with the best local scientists.
当我们再深入了解诺维信的研发流程，才知道他们到底强在哪里。“诺维信不像竞争对手是从几百种微生物里筛选酶，诺维信是从几百万种微生物里筛选。先经过特定条件筛选出一批，再经过应用条件筛选一批，然后经过动物条件筛选一批，最后就产生一种产品。” Mads介绍说，在这个过程中，也正是因为诺维信强大地研发实力能够让他们做到从几百万微生物中进行筛选，才能让酶制剂产品既拥有最优表现性能，也能在扩繁过程中达到最佳经济效益。“除去酶的筛选，我们还有最好的科学家从事蛋白质工程，能对筛选出来的酶进行改造，在有最好酶的基础上再做一些升级。” Mads补充道。
We can consider their R&D process and know how strong is the Novozymes R&D. “Not like other competitors who are selecting their enzyme from few hundred microbials, we are selecting enzyme from millions microbials. We started our selection under certain conditions. Then we are keeping section under feed industry condition. The final step of selection is animal trials.” Introduced by Mads. During this process, they can screen and select target microbial with best production economy and enzyme product from millions of options. “Other than enzyme selection, we have the best scientist for protein engineering who can do further upgrade for our enzyme”, Mads said.
In addition, DSM will use their top three global animal nutrition and health R&D centers (France, China, U.S.) to do application R&D which focusing on feed and livestock in order to find different solution on different diets and raising conditions. The DSM China R&D center was founded in 2014 and ready to offer varies local solutions to the customers in China.
Value of Enzymes
Without a doubt, The Alliance feed enzyme is remarkable. They have already made significant progress in Europe, Africa, The Middle East, Latin America. However, they are looking for opportunity in China, the fast-growing market for feed enzyme.
The first challenge is the price. Local companies can offer feed enzyme with relative low price. How to convince feed mills with cost pressure to choose high price enzyme product? Robert said, “We are always defining value!” He believes that the value can be defined by many areas, the price is only one of them. The value of Alliance can be seen from microbial screening, quality assurance, batch stability and enzyme performance, as well as animal trial. “Our product has the best return on investment. So, we are always focusing on value, rather than price comparison.” Robert emphasized.
“The high quality, performance and standards is the reason for our price levels. But we are not saying that our competitors have low quality. We are very confident and have the highest market share in the global feed enzyme industry because of the high value we can provide to our customer.” Robert explained. There is always price pressure in the global feed enzyme industry. But more and more customers are understanding that they should compare how much more money they can earn by investing one dollar in their feed, rather than focusing on how much money for every kg of enzyme.
Improvement rather than replacement
Antibiotic free production system is a very hot topic in China feed and livestock industry. Is there any advanced experience in other countries we can use for China?
Mads mentioned that the Alliance is feed additives company, rather than veterinary medicine company. So, they cannot claim to totally replace antibiotics by using feed additives. They can only provide solution to improve the condition. “Total replacement cannot be claimed”, Mads emphasized.
When talking about many promotions with regarding to antibiotic free in China, Mads believes that any commercial promotion is easy to do, but the Alliance is science based company. Feed additives is small part of antibiotic free production system. It should combine with farm management, veterinary medicine, and many other areas. He believes there is one day that we can realize real antibiotic free production system. “But feed additives are a small part of it”.
Additionally, Robert believes that antibiotic is not only a feed producers’ issue, but also a global issue. It need collaboration and support from government.
10月，帝斯曼-诺维信饲料酶制剂联盟总监Robert Vergo及诺维信丹麦饲料应用与科学支持部门高级科学家Mads Brøgger Pedersen出席饲用酶制剂大会，我抓住机会与2位大咖相约采访，想挖点这家全球第一的饲用酶制剂的干货，英文水平不够的我还找到了诺维信饲用酶制剂的中国区负责人罗朝晖先生来协助翻译。但近2个小时的交谈完后，我觉得自己没找到什么料，感觉自己太逊了，打算不了了之。近日，再与一位外企朋友交流后，再回想与两位诺维信大咖的交流，才发现是自己智商有点捉急，于是有了这篇文章。