The animal feed industry is facing change, with producers and growers looking for nutrition that will get the best out of livestock, while meeting the challenges of feeding a growing global population. In a move to address these needs, we announced in 2021, our intention to construct a new million tonne mill in the East of England, the first large scale investment in the industry in more than 30 years.
Tessa Seymour explains how this investment aims to provide a sustainable solution for an industry currently close to capacity, as it tries to keep pace with the rising demand for compound animal feed.
“We have a large share of the compound feed supply into the poultry, pig and layer industries,” she said, adding that the business also manufactures game feed under the Sportsman brand.
“Our focus is much more than providing a commodity product, to our customers. We strive to provide high-quality nutrition that is going to maximise the potential of the genetics of that animal whether it is a pig, a chicken or a laying bird. Maintaining a continuous active dialogue with both the industry and our key customers has never been more important. We are adding to the nutritional debate to make sure that, whether they have their own nutrition teams or buy in our own-branded feed, the nutrition that goes into that animal is right for them.
“Our customers are changing. In the past we dealt directly with farmers mostly, buying feed on a short-term basis. This has changed considerably, there has been huge consolidation in the industry supply chains and we spend more time than ever working in partnership with processors. There is still good interaction, particularly with larger farms but the change in focus is notable. Another significant change is that the industry is now more data driven, so if we are talking about performance and about finding the right nutrition, we need to understand what that performance is.
“The discussion becomes about understanding what the performance is, what the inputs are into the animals, so we can take that information back and then develop the nutrition and rations to continue to improve that performance.”
Consumer attitudes
It is not only the industry, but consumer attitudes are also changing. Consumers are getting much more information, often to the point of overload from social media. That includes an element of disinformation.
“Consumers are putting pressure on retailers in terms of what they see as the right welfare, and what they see as being the right focus in terms of long-term sustainability. That is coming through to both ourselves as animal feed manufacturers and the processors. The need to produce a pig or a bird that fits consumers’ criteria is changing the industry. That pressure and that focus is only going to increase. The level of information demanded by consumers into what they’re eating is not going to go away,” explains Tessa.
One example is concern over the role of soya production in deforestation. As part of the AB Agri Group, AB Agri representatives have played an active role in developing the European Compound Feed Manufacturers Federation (FEFAC) benchmarking system which endorses and monitors sustainable production of soya. All the certification schemes that ABN uses specify zero deforestation. This means the soya has not been grown in areas that have been converted from forest or other valuable native habitats since agreed cut off dates. As well as this commitment, very much aligned to the UN’s Sustainability Goals, ABN is undertaking significant research into potential alternative proteins, and indeed this extends to the new super mill investment.
“We are working with our partners to understand future requirements,” he said. “The new mill will, for example, need a flexible system of raw material bins to take account of the use of more raw materials to meet different needs.”
Commitment to the industry
“The super mill is for us, an example of our commitment to the industry. Our responsibility is to invest behind the growth of the animal feed sector in the UK, and to confirm our position as a business here for the long term. Our customers are also here for the long-term too, themselves predicting increasing demand and we are going to be part of supplying this growth. The new mill, with a million-tonne capacity, will add significant volume. What we want to build, is something that moves the industry on and continually improves standards for our customers, their customers, the retailers and consumers.”
Investing in talent
We have a commitment to invest in talent within the wider UK agricultural and food sector, with a particular focus on diversity.
“ABN is very much a business that is focused on supporting the UK animal protein industry. This is a role that we take very seriously. We are very active in making sure that we support the next generation of talent, whether that be farmers or attracting people into the wider agricultural industry. We are a business that wants to make sure we promote the right legacy in the industry that we are operating in. For industry, the challenge is perhaps more focussed on the attraction and retention of talent from different backgrounds and cultures.
“While local knowledge will always be key, our reach and influences are much bigger. In ABN we have a range of initiatives to try and bring new people into the business. Whether it be an entry level position within our Customer Support Team, our Graduate and placement schemes, or apprenticeships within our mills - our focus remains on creating an exciting environment to work in and a springboard for the development of a successful career.
ABN has invested heavily across its mill sites and transport fleet over recent years. This exciting new project is a key extension of that programme. The business will continue to invest in its existing sites. The complexities of building a pioneering new mill can only be considered as a long-term project, and at this stage timings cannot be confirmed. However we can assure you that this state-of-the-art mill will deliver improved animal feed quality, improved reliability, efficiency and sustainability plus greater traceability.
AB Agri’s Chief Executive Officer, José Nobre added: “This project is transformational and will drive an exciting new future for ABN and the UK’s food and farming businesses. The investment underlines our commitment to investing in the future of agriculture and playing an important role in building our industry’s global reputation.”
