China’s tariffs on U.S. soybeans may drive Chinese aquaculture companies to find alternative protein sources, according to Erik Visser, the CEO of Nutriad, a feed additives manufacturer.
Speaking at the VIV China expo in Nanjing, China, Visser said Nutriad is well-placed to take advantage of any shifts in the marketplace in China, having recently upgraded its local production facilities and increased its staffing.
“The trade tensions between China and the U.S.A. put pressure on soybean pricing and might drive the producer to finding alternative protein sources,” Visser said in a press release. “Our palatability product offering helps producers ensure feed intake even when taste and/or quality of raw material in feed changes.”
Visser said besides the trade war, two other trends are also creating opportunities for Nutriad in China – a push by the government to reduce the use of antibiotics in animal-rearing, including aquaculture; and an effort to increase production and efficiency.
“We can see clear trends in China that are shaping the demand for feed additive solutions like the ones Nutriad provides,” Visser said. “A reduction in the use of antibiotic growth promotors, driven by both consumers and government, will enhance the need for an alternative approach to gut health. Furthermore, the increasing pressure on farmer’s profits will demand an increased production efficiency, which can partly be obtained by an improved diet composition.”
Nutriad’s largest market segment in China is in swine, followed by poultry, after the firm was acquired by Bluestar Adisseo in January 2018. Adisseo is owned by China National BlueStar, though Nutriad is based in Dendermonde, Belgium. It is seeking to increase its market share of the ruminant and aquaculture markets in China and internationally.
“Not only because of the size of the market, but also because of the challenges Chinese producers face, we are confident that we can accelerate our growth in China with the practical solutions we offer and the local technical support available through our direct interaction with customers as well as via our extensive distributor network,” Visser said.
Photo courtesy of Nutriad
