What is the current state of the animal nutrition market? To better understand the challenges facing feed manufacturers in their quest to deliver increasingly high-quality products to consumers, we spoke with Professor Wilson Rogério Boscolo, an expert in this field.
Wilson Rogério Boscolo holds a degree in Animal Science from Universidade Estadual de Maringá (1997), along with a Master’s and PhD in Animal Science from the same institution (2001 and 2003, respectively). He currently serves as an associate professor at Universidade Estadual do Oeste do Paraná. His expertise lies in Animal Science, particularly in the areas of animal nutrition and feeding, focusing primarily on Nile tilapia (Oreochromis niloticus), fish performance, nutrition, and technology.
Read on for the full interview.
What does the current landscape of the animal nutrition market look like?
Prof. Wilson Boscolo: The animal nutrition sector is rapidly advancing today. We’re witnessing expansions in existing mills, the establishment of new facilities, and the entrance of new players into this industry. The demand for animal-based proteins is exceptionally high, and we’re also seeing growth in the pet care market, as more people adopt pets for companionship.
This shift in consumer habits necessitates the production of quality food for these animals. From my perspective, this indicates that the animal nutrition market is thriving.
BRFi: What are the key features of this market in terms of competitiveness?
Prof. Wilson Boscolo: This is indeed a highly competitive market. Primarily, we have two systems of animal husbandry. For animals raised for slaughter, there are integrated or vertically integrated companies that supply their own feed, and there’s also the open market selling feed directly to farmers.
In this context, especially within the latter group, competition is fierce. As a result, companies strive to differentiate themselves somehow. Often, this differentiation is based on pricing. However, everyone aims to offer a quality product because neglecting quality will limit your customer base. Consequently, companies focus on surpassing each other to offer some unique value proposition. Ultimately, those who deliver superior quality at a fair price will succeed in this market.
BRFi: How is the industry addressing the current challenges of the market?
Prof. Wilson Boscolo: Two significant areas receiving substantial investment are increasingly efficient and advanced machinery, coupled with employee training, and a continuous search for supply chains offering better cost-effectiveness. Commodities have fixed prices, but businesses are consistently exploring substitutes for these commodities that can deliver added value. In animal nutrition, there’s a strong emphasis on formulating feeds at minimal cost—creating complete feeds that fulfill all nutritional requirements at the lowest possible production cost.
Cost is paramount. It doesn’t help to create the best feed in the world if its cost exceeds the price per kilogram of the animal produced, especially for livestock raised for slaughter. Take tilapia, for instance, which has an average market price of around $1.5 per kilogram of live fish. If we include all the additives available on the market, the cost of the feed per kilogram might exceed the cost of the fish itself, rendering it unprofitable. Therefore, return on investment is crucial.
What role does innovation play in the animal nutrition market?
Prof. Wilson Boscolo: In the current scenario, feed reformulation and ingredient substitution are everyday challenges for feed formulators. Hence, innovation has become the primary driver for staying competitive in this market.
Take ingredients, for example. All feed formulators rely on conventional ingredients, which would be ideal. Using corn, soybean meal, and fish meal would be perfect. However, with the volatile prices of commodities, high transportation costs, and the availability of more refined resources like zootechnical additives (amino acids, vitamins) and functional ingredients, along with the reliance on imports, it’s essential to explore alternatives.
In this situation, we need to work with inputs that give us flexibility in feed formulation, reducing dependence on traditional commodities. This drives the search for innovation, particularly in functional ingredients and zootechnical additives, where improvements in performance, weight gain, feed conversion, or survival rates are achieved.
For instance, what are viable alternatives to fishmeal? Feather meal, blood meal, and poultry viscera flour are examples. While these alternatives may have some nutritional drawbacks compared to conventional ingredients, plant-based sources might contain antinutritional factors. Addressing these shortcomings is critical.
Thus, these innovative ingredients—zootechnical additives—provide performance enhancements, such as improved Chicken Protein Hydrolysate. The industry often seeks regional alternatives that can achieve similar or even better results due to certain functional advantages.
Which trends do you believe are most prominent in the animal nutrition market?
Prof. Wilson Boscolo: Due to the scarcity of ingredients in terms of both volume and quality, I think the ingredients segment will attract the most investment and present the greatest opportunities.
In animal nutrition, we heavily focus on zootechnical indices, with feed conversion being one of the most important—how many kilograms of feed an animal consumes to gain one kilogram of weight. In the area I work with, typical feed conversion rates for shrimp and fish farming are around 1.5:1. By including ingredients that enhance the animal’s metabolism, we aim to achieve a conversion rate closer to 1:1. Improving this index would lead to greater profitability and sustainability.
In the pet nutrition segment, we require feeds that promote health and longevity. Achieving gains within the mill through equipment is far less impactful than using higher-quality ingredients to improve animal health—such as more natural, hypoallergenic, and easily digestible ingredients that optimize the animal’s health and metabolic parameters.
There’s much potential in both livestock and pet nutrition when we focus on smarter, healthier foods for animals.
What are the main characteristics of high-performance nutrition?
Prof. Wilson Boscolo: To prepare a good feijoada, you need quality ingredients. Similarly, to deliver high-performance nutrition, you need good additives and quality feed. Naturally, having efficient equipment enhances the efficiency of these ingredients, minimizing losses.
First, you must meet the nutritional requirements of the animal—whether it’s a dog, cat, or fish. We always aim to use ingredients with high digestibility, excellent nutrient profiles, and appealing palatability. Beyond that, the industry seeks to go further than mere nourishment; we aim to improve the animal’s metabolism.
Another concern is minimizing environmental waste. For example, a dog produces less fecal matter, causing less inconvenience. In aquatic animals, feces pollute the breeding environment. The same applies to pigs.
How is Brazil positioning itself in this market compared to other countries?
Prof. Wilson Boscolo: We haven’t fallen behind in terms of technology or skilled professionals. In fact, compared to some markets, we’re quite advanced. In terms of production, for instance, we’re on par with North America.
I’m more involved in the aquaculture sector, and if we compare our industry to others, we’re growing significantly, keeping pace with the domestic market. The growth of aquaculture in Brazil was anticipated, given our vast freshwater reserves and extensive coastline, which remains largely untapped for aquaculture purposes.
However, we need to grow sustainably, which requires continuous improvements in our feeds. These feeds account for about 70% of aquaculture property costs, so any improvements have a significant impact. Additionally, management and genetics play roles, but nutrition has a major influence.
What advice would you give to a professional looking to engage in research in this area in terms of qualifications?
Prof. Wilson Boscolo: I’d say this professional faces many challenges ahead because balancing performance and health improvement with cost-effectiveness is essential. There’s still much to be done in animal nutrition research, as we can observe daily improvements when we enhance a feed.
The researcher must put themselves in the shoes of the final product buyer. Whenever I develop a feed, I try to imagine myself as the producer or final consumer, relying on the return on that investment.
In the end, if the producer doesn’t profit from the activity, the feed mill won’t be sustainable. Thus, the researcher must ensure increased profitability for the producer. The goal is to create and develop something profitable while respecting the environment.
Future researchers must specialize. Today, there are numerous postgraduate programs, including free ones, offering scholarships for master’s or doctoral studies in Brazil or abroad. When I worked on my PhD, there were fewer options, but now almost all public and private universities offer courses in these fields.
I’ve also noticed that many feed mills hire master’s and doctorate holders, as having specialized personnel makes a significant difference in the field of animal nutrition.
We’re constantly evolving in this world of new inputs, seeking specific ingredients that yield better results. In the past, feeds were formulated simply to meet crude protein demands. Later, we began focusing on amino acid needs. Today, we’re discussing functional peptides, and there are many other exciting topics. But for that, we need to study extensively and continuously update our knowledge.
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