Precise Nutrition is Key to Better Product at a Lower Cost

Innovation and technology are the key to improving animal feed and production efficiency, says Luis Gonzalez, General Manager of Trouw Nutrition Mexico. “Providing better food nutrition means you need less food to create a healthy grown animal.”

Trouw Nutrition is a global leader in animal nutrition, specialized in the development of innovative feed technologies, premixes and unique software solutions. In Mexico, the Dutch company has three plants, located in Guadalajara, Monterrey and Cuernavaca. It has enjoyed years of significant growth and is now considering opening another plant because current production capacity is becoming limited. The plants produce mixes of micro ingredients used in feed for poultry, pigs, ruminants and aquaculture. In addition, it produces specialty food products for animals in the early stages of life. In terms of market share, the company has the greatest participation in the poultry sector. In terms of volume output, ruminants take the lead. Its overarching goal is to create better nutrition solutions.

The first stage is using technical devices to measure the nutritional value of ingredients, such as maize. These devices, provided by the company to its clients, can scan a grain of corn and produce immediate data on the nutrients for display on a smartphone. The information is then shared with the company’s central lab in the Netherlands, where a formula is devised from a mix of ingredients to form the perfect complement to that particular clients’ grain. “The combination of the use of technology and a personalized approach are allowing improvements in food that are far more accurate and effective. This technology also has shortened this process from weeks to just a day,” Gonzalez says.

The goal behind these food solutions is to generate greater, and more efficient, productivity. Because the food is more nutritional, less is needed, resulting in cost savings. “With better feed mixes, around 1.6 to 1.7kg of food is needed to produce 1kg of chicken. Previously, 2.5-3kg was needed, almost twice as much,” Gonzalez says. Nutrition accounts for 65 to 75 percent of the cost of producing per animal. Low related costs and the introduction of technology can help smaller producers to compete against bigger players. “In the 1980s, chicken and egg production was an important source of income in the Monterrey region,” Gonzalez says, providing an example. “Now, many of the smaller producers have been bought up or closed down due to competition from the bigger players. Small producers can compete if they are efficient, as some have shown by making investments to upgrade their food systems to modern standards.”

Science and innovation are also being applied in the fight to reduce antibiotic use. Currently, as Gonzalez observes, the reduction and even full elimination of antibiotics is an industry trend. The reason for this is obvious, as increasing resistance to antibiotics is producing an even greater threat to animals, but also to consumers. Before, for example, it was common to feed chickens with small continuous doses of antibiotics to prevent any form of disease or infection. This practice is now banned. Companies such as Trouw Nutrition are developing products and additives that boost the health of chickens and prevent health problems in other ways. Good food and good ingredients are the first step. Another is to use water with modified pH levels. By feeding a chicken with drips of acidic water, you can eliminate the foul bacteria in their system without doing harm. The result is a stronger digestive system that can fight against harmful agents.

Gonzalez forecasts his company will grow more than 10 percent going forward. Its fastest area of growth is in domestic pets, which is a relatively new market in Mexico. “Millennials are the driving force behind this segment’s growth because they are getting pets as opposed to having kids.” This is coupled with better: pet owners are realizing that their pets need specific diets to be healthy.

The company also hopes to consolidate investment for a new plant soon, although the economic climate has not been favorable, and many clients have lowered their production and seem more cautious. “In the past, they were more aggressive in their investments,” Gonzales says, although he is certain the need for better food solutions will continue to grow as companies see the benefit of boosting production and reducing spending at the same time.