VIDEO: COVID-19’s impact on phytogenic feed additive market

Watch the Feed Strategy Chat interview with Delacon CEO Markus Dedl to gain insight into how the phytogenic feed additive market has fared in 2020.

Markus Dedl, CEO of Delacon, discusses feed production in 2020 and provides an outlook for 2021

The novel coronavirus disease COVID-19 has affected animal protein production and, in turn, animal feed production. Feed additive suppliers have learned several lessons due to its impact on consumer behavior and gained insight into their own supply chains.

In this video interview, Delacon CEO Markus Dedl discusses the ways the pandemic has shaped the 2020 phytogenic feed additive market and offers his insights for the year ahead.

Video transcript

Jackie Roembke, Feed Strategy editor: Hello, everyone and welcome to Feed Strategy Chat. I’m your host Jackie Roembke, the editor of Feed Strategy Magazine.

This edition of Feed Strategy Chat is brought to you WATT Global Media and is your source for the latest news and leading-edge analysis of the global animal feed industry.

Today on the chat, we’re joined by Markus Dedl, CEO of Delacon. Delacon is a multinational feed additive supplier, based in Austria, providing phytogenic feed additive solutions for poultry, swine and ruminants.

Hi, Markus, how are you?

Markus Dedl, CEO of Delacon: Hi, Jackie. I’m good. I’m good. How are you?

Roembke: I’m doing well. Thank you. So it’s been quite a year. How has the COVID-19 pandemic impacted the phytogenic feed additive market?

Dedl: We have seen in the market and with our customers that the impact of COVID-19 was primarily in consumer behavior. As people are changing their eating habits, they stay in and eat at home more — they consume differently. So, there is obviously, at the end of the day, also a big impact on the food industry.

In general, globally, we can see that feed output has decreased. And that’s also because consumption patterns have changed how people that have maybe before eaten more food service have changed to eating at home, which is a completely different supply chain. We’ve, for example, seen in India that people are not used to cooking poultry meat and, also here, the poultry production has been impacted.

What we can also see is that the supply chain, in general, has been under pressure. So people are looking for opportunities to be more efficient and to save. I think in terms of behavior of the industry, also, it’s something when we look forward that we need to be ready to quickly shift gears when it’s time to go. Because it will be a matter of speed, when it comes to how we can handle the crisis and gain the necessary speed to come out of it.

In terms of collaboration and relationships, it has been important for us to find new ways of engaging and staying in contact with customers and with partners to make sure that we can keep serving them and we can keep helping them to find solutions to their challenges.

Roembke: Excellent. And looking ahead, what is your outlook for feed production in 2021? Are there any macro or micro trends on your radar?

Dedl: I think really we are watching primarily consumer trends. As people are eating more at home. They are changing the way they consume meat or protein products. But, also, there is a trend — the visible trend, globally — in organic farming, increasing interest in organic farming in a more sustainable, healthy lifestyle.

Lifestyle includes health and nutrition, which is very important, and at the same time, also resilience. So, assuring the health of animals in our industry, like strengthening the immune system and improving health. And, at the end of the day, making sure that animals and humans stay healthy and resilient, especially in these in these challenging times.

In terms of a general outlook, I think it is difficult to predict obviously how this is going to play out because we all have never seen such a situation. But in general, my impression would be that things can, at the end of the day, when a solution is found for dealing with the current situation, the situation can change rather quickly. And the way out of this crisis could be fast. So, we need to be prepared for that. We’ll be prepared for hitting the “Go” button again.

Roembke: Thank you so much for sharing your thoughts today. And thank you to everybody watching. Please tune in next time for the next Feed Strategy Chat.

Learn more about phytogenic feed additives as antibiotic alternative solutions by reading Jackie Roembke’s article, “The potential of phytogenic feed additives.”

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