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Antibiotic Growth Promoters on their Way Out

Press Release

Can Feed Additives be a Successful Replacement?

London, UK, 12th January, 2006, By January 2006 there will complete implementation of the European Union's (EU) ban on antibiotic growth promoters.  Stakeholders across the supply chain are at various stages of preparation. The last four antibiotics currently being used as growth promoters - flavophospholipol, monensin sodium, salinomycin sodium and avilamycin - will be completely phased out.

"The impact of the ban will be greater in the short term, as livestock producers and the markets associated with them attempt to adjust to the change," remarks Frost & Sullivan (http://food.frost.com) Industry Manager Kathy Brownlie. "However, in the medium and long term, impacts will be minimal."

The effects of the ban will vary between countries and regions as well as between various livestock sectors. The impact will be more severe on livestock sectors such as the swine and the poultry industries than on others.
 
Similarly, Southern Europe might feel the effects most strongly, perhaps because many farmers in this region are not really aware of the many alternative feed additives available and the benefits they offer. This makes them resistant to change and unwilling to consider new product opportunities. Scandinavia, on the other hand, is far better prepared.

Other factors such as the standards of hygiene management and animal husbandry followed on livestock units also play a part in determining the extent of the ban's impact. Production units that have high standards in this respect will be less affected since antibiotic growth promoters are usually less effective in such an environment.

Overall, countries in the EU are expected to face challenges such as reduced animal growth rates and decreased feed conversion efficiency as a result of the ban. Due to falling feed conversion ratios, livestock and poultry producers may need more feed than usual to produce one kilogram of meat. This implies higher production costs, but on the other hand it implies increased revenues for the animal feed industry.

With increased production costs, the price of EU meat may increase. This will be a problem for livestock producers as it is unlikely that they will be able to pass on these costs to the consumer. Conversely, the ban on antibiotic growth promoters could lead to improved perceptions of EU meat in the global market, especially in light of the growing consumer demand for natural and organic food products.

EU countries face perhaps their strongest challenge in identifying alternative products that can successfully replace antibiotic growth promoters. Currently, some livestock producers are already using additives such as organic acids and enzymes as possible replacements, but proprietary blends and other kinds of additives are expected to emerge as substitutes as well.

However, the level of uptake of these alternatives remains to be seen. Traditionally, feed additives have been used for different purposes in the EU. In Southern Europe, for instance, the use of feed acids is aimed at feed preservation. There is little awareness about the performance-enhancing properties of these additives, which explains farmers' reluctance to use them in this capacity.

"While the use of alternative feed additives is one of the ways to minimise the impacts of the antibiotic growth promoter ban, it is generally considered that there are no 'cure-all' or feed additive alternatives currently available that can act as a direct replacement," says Ms. Brownlie. "It is believed that a high standard of animal husbandry and hygiene management is needed, and that when using feed additives to help promote growth, a combination of additives is required."

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest Strategic Review of the European Ban of Antibiotic Growth Promoters in Animal Feed, please send an e-mail to Janina Hillgrub, Corporate Communications, at Janina.Hillgrub@frost.com, with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the information via e-mail upon receipt of the above information.

Title: Strategic Review of the European Ban of Antibiotic Growth Promoters in Animal Feed
Code: B717-88

Background
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

Frost & Sullivan Chemicals and Food Group is the strategic market consultant delivering insight and understanding to support business growth internationally. We identify and analyse the critical market challenges companies must address to become successful competitors in their industry. Our work is focused on these challenges in order to provide our clients with market strategies that enable them to increase revenues, market share and profitability.

The Group continuously monitors a comprehensive spectrum of chemical and food markets for trends, market measurements and strategies, and delivers powerful data via research publications, bespoke market intelligence projects and customised consulting.

Our team of expert analysts is structured around four key areas:
Food
Speciality Chemicals
Fine Chemicals
Performance Materials

Media Contacts:

Europe:
Janina Hillgrub
Corporate Communications
P: +49 (0) 69 770 33 11
E: janina.hillgrub@frost.com

Americas:
Trisha Bradley
Corporate Communications
P: 210.247.3870
E: trisha.bradley@frost.com

Asia Pacific
Donna Jeremiah
Corporate Communications
P: +603 6304 5832
E: djeremiah@frost.com

India:
Surbhi Dedhia
Corporate Communications
P: +91 22 2832 4705 Ext: 131
E: sdedhia@frost.com

Australia:
Sharmin Jassal     
Corporate Communications
P:  + 61 2 8247 8900
E:  sjassal@frost.com

List of Keywords in this Press Release: European, ban, antibiotic growth promoters, animal feed, alternative feed additives, European Union, EU, livestock producers, flavophospholipol, monensin sodium, salinomycin sodium, avilamycin, Southern Europe, Sweden, Denmark, Scandinavia, hygiene management standards, animal husbandry standards, animal growth rates, feed conversion efficiency, organic acids, enzymes, proprietary blends, feed preservation

List of Key Industry Participants: Addcon Agrar GmbH, Adisseo Europe, ADM Speciality Ingredients, Agil, Ajinomoto Eurolysine SA, Akzo Nobel (Intervet International BV), Alltech, Andres Pintaluba SA, Ascor Chimici, Barentz Grondstoffen BV, BASF, Bayer Chemie Service GmbH, Biofeed, Bioferm, Biomin GmbH, Biotika A.S., Biovet Laboratories, Bonimex BV, Borculo Domo Ing, Brentagg NV, Cargill, CCA Nutrition, Celanese Ag, Celtic Nutrition Animale, Chemox Ltd., Christian Hansen, Cymedica, Dakovit Kft, Danisco Animal Nutrition, Degussa, Delacon International, Diamond V, DSM Nutritional Products, Dumas ApS, Eastman Chemical Company, Eurotec Nutrition Ltd., Exquim SA, Franklin Products International, Guybro Chemical, Idena, Impextraco NV, Inzo, IQF (Investigaciones Quimicas Y Farmaceuticas SA), ITPSA (Industrial Tecnica Pecuaria SA), Jan Dekker BV, Jefo Europe SA, Kemin, Kemira, Lallemand, Lidervet SA, Lohmann Animal Health, Lonza Group, Lucta SA, Norfeed, Novozymes, Novus Europe /  Wolfgang Rothel GmbH WOLFGANG ROTHEL GmbH, Nutec, Nutreco/Trouw Nutrition, Nutrex NV, Nutri-AD International BV, Nutriscan, Olpesa SA, Optivite International Ltd., Orffa International, Pancosma SA (Dakovit Distributor in Eastern Europe), Premier Nutrition Ltd., Provita Eurotech Ltd., Purac, Raschig AG, Rhodia Chimie SA, Ringsted & Semler, Roche Vitamins and Specialty Chemicals, Rothel GmbH, SAF-ISIS , SCA Nutrition, Selko BV, Sepiolsa SA, Soda Feed Ingredients, Spreerstra Feed Ingredients, Sterlitamak Petrochemical Plant, Trouw Nutrition, UOP, Verdugt BV, Virbac SA, Vitablend BV, Vitamex NV

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