Food Safety: Red Tractor’s Never-ending Pursuit

Where does your food really come from? From farm to processing plant, from supermarket to plate, it’s important to know that your food was handled in a safe and ethical manner at every step of the journey. This episode takes a look at Red Tractor, one of the most trusted food assurance programs. Alltech’s David Butler recently sat down with food industry leader Philip Wilkinson to better understand how Red Tractor provides peace of mind to the consumer. You can listen to the podcast in full or view the transcript below.

I'm David Butler and my guest today is Philip Wilkinson, Executive Director of Two Sisters Food Group. Actually that's just one of many positions that Philip holds. He took some time to talk to us about food safety, traceability and Red Tractor, the United Kingdom's leading farm and quality food assurance program. Their motto is, "we trace it so you can trust it".

So, I’m Philip Wilkinson, Executive Director of Two Sisters Food Group which is the largest poultry producer for broiler meat in Europe. I’m Vice President of AVEC, which is the European Poultry Association, a board member of the British Poultry Council, and on the Board of Assured Foods Standards in the UK.

That is a lot of hats to wear.

Yeah it is, but they are all interconnected so it works very well.

And a lot of what you do is related to messaging to the end consumer is that correct to say?

Yeah. The Assured Foods Standards brand, or mark, you would know as being a Red Tractor which is underpinned by the Union Jack, the Union flag of the UK. And, that is a mark that has been on the go now since the year 2000 when it was launched. In dollar terms the sales value in 2015 will be in the region of $22-23 billion US. So, it has come from zero to hero in that 15 years and would be the mark that the vast majority of citizens and consumers in the UK would recognize in terms of one of quality, traceability, assurance, and would give them trust.

They would know that that kind of symbolizes everything that’s important to them and their food.

We like to think so. But, it’s a little bit like painting a very large bridge. It’s never ending. You get to the end and you got to start at the beginning again. So it’s an evolutionary process. We didn’t put something in place back in the year 2000 and it stayed exactly the same in 2015. It moves with the times. We tweak it here, we tweak it there in order to keep up with what is considered to be important in the minds of consumers. At the time that this was launched, there was no carbon footprint message going around whereas we now know that is a major part of the sustainability debate. So, we are now looking at being true to that objective and G20 leaders have signed up to that agreement to hit benchmarks by 2020 and there are milestones in that process, so we have bought into that as part of our message and that will fall into our activities going forward across all meat proteins and crops, as well, because the Red Tractor does embrace all meat proteins together with combinable crops, so you know it’s a pretty big operation.

That does seem like a huge operation and it seems like it would be very difficult to create guidelines or best practices across so many different, very diverse industries. How do you do that?

Okay, and that’s a good question. Each sector is a stand-alone. So, each sector has its sector board, it has its own technical advisory committee, and what I need to share with you is that this is not an in-house initiative. This is something that is shared across the whole of the supply chain so that everyone buys into it. So, you’ve got the farming union representing the farmers. You’ve got the likes of the British Poultry Council representing the poultry processors, you’ve then got the British Retail Consortium representing the retailers. Food service representatives and also academics and independents.

And, what we do, is we have a set of standards that are compiled by those people. So they are independent. The technical advisory committees are chaired by independent people. People who have got a wealth of experience in the field but are not directly involved in the supply chain. So they may be university professors who talk about this sort of stuff and I think about ours, is a guy who was a lecturer, very very well respected, at Reading University. He has been the chairman of the technical advisory committee. So that when product, and it always does happen that there will be a food scare, there is always something that is going to happen in the food industry, no matter how hard you try, you can put an independent person to front that, because it gives far more credibility than somebody like me who is an industry person who the consumer would say, “Well, he would say that anyway.” So, it gives it and this technical advisory committee, is meeting on a bi-month basis to review the standards, review the adherence to standards, to then dole out penalties to those who don’t adhere to the standards, so that the standards have integrity. Without the integrity, the consumer wouldn’t trust them and there would be chaos.

Right, so you have input and knowledge and expertise that is coming from the people in the industry that worked in the industry for years and years and they’re contributing that, but you also have independent people on the boards.

Just to show how fair we actually are, we even have on the board of Assured Food Standards, a representative from Compassionate World Farming. It doesn’t get more open than that. These are people who would sometimes march on the Houses of Parliament or march into KFC or into McDonald’s or into Two Sisters Food Group and cry foul. So, this is how open we are and how transparent we are in embracing the thoughts and opinions of everyone before we arrive at a decision.

Wow, that’s pretty impressive. It seems a lot more genuine than, you know, a company that might create their own little kind of premium certified logo that is not backed up by anything in particular.

I think that most companies who do, do that and some decide they’re going to have their own offering underpinned by Red Tractor, but then, let’s say move slightly outside that to create a point of difference for them, they would always use the Red Tractor Assurance to underpin, but then they would also rather than it stay in house, they would also use independent bodies who audit their schemes as well. And, might even help in the compilation of those schemes.

Is there any talk of Red Tractor expanding beyond the United Kingdom?

The Red Tractor Standards are already accepted outside of the United Kingdom because companies such as ours, or some of the retailers, or food service organizations who stand by the Red Tractor mark to the consumer as their offering have product that comes in from other countries. So, even though we produce in the UK, 19 million chickens a week, we actually consume 27 million whole bird equivalents, so those birds come in from Brazil or Thailand or elsewhere in Europe and in order for it to be a level playing field, and in order for the on pack claims to be made, equivalents have to be agreed in those countries. So, if they’re not eligible to carry the Red Tractor and the Union Jack, because obviously the Union Jack is produced in the UK; however, they are audited to those standards in those relevant countries by auditors who have been checked out by the audit bodies and the competent authorities back in the UK. So, the brand doesn’t travel, but the equivalents of it, do and that is the only way we would take product in from those countries outside of the UK.

So that’s having a positive effect on the global food supply really.

Yep, and as I showed in the presentation both yesterday at the food REBELation and at the poultry REBELation, I have shown that other European countries have got their own marks and emblems and logos that are for their countries that may or may not be the same as ours. They may be slightly different, but this is something that has now gone European wide, that’s for sure. And, there’s been a lot of interest as I’ve talked in other countries all over the world either in my own capacity or doing talks for Alltech. There is a massive interest in Red Tractor and the Red Tractor, and I wouldn’t say this but I know that I’m right, the Red Tractor news has traveled globally more than I would say most of the others or any of the others that I’m aware of. The only one that would sort of be internationally recognized would be the RSPCA, the Royal Society for Prevention of Cruelty of Animals which obviously goes pretty global anyway. Particularly the commonwealth countries where there would be a connection anyway.

Right, that makes sense. So how is all of this activity funded?

The Red Tractor is funded through usage of the mark on pack, so it’s fractions and fractions of pennies on a pack.

So a licensing fee?

Yes, a licensing fee which then everyone in that supply chain pays a price for. So just to give you a feel. It won’t be an exact number and I’m going to try to convert to US dollars for you, but for a poultry farm, a broiler farm in the UK to be signed up Red Tractor, it would cost circa $75-$80 a year; well in the big picture that doesn’t really even cover the auditor traveling and coming to the farm to do the audit, but because it’s funded across the whole of the supply chain, and everybody can afford to be in. If you’re a big dairy company, that’s going out on milk bottles that sit on tables, well then that’s easy, but if you are the dairy farmer you have to pay the same sort of money as they have to pay, you would never sign up in the first place. The reason why it’s been so successful is that the farm to fork supply chain has bought into it and are all doing their bit and paying for it.

The cost is shared?

People stand shoulder to shoulder.

Yeah, yeah. It benefits everybody.

Sure it does.

One last question. I assume you don’t have full traceability for everything under Red Tractor yet? Do you? Traceability is so difficult.

Well, I cited this morning in the poultry session that this is an example. We have got a slaughterhouse for chickens close to a 24 hour TESCO store that also stocks our chicken. The Tesco technical team will maybe totally unannounced arrive at their store at 7:30 – 8:00 o’clock in the morning, and they will pick a whole bird off the shelf, they will pick a packet of wings off the shelf, and they will pick some breast meat off the shelf jump in their car, drive two miles up to the road to our factory, knock on the door, technical manager plunk those on his desk and say, “I want traceability, full traceability down the production line back to the breeder farm where the eggs came from and I want you to do that in 4 hours on all of those products” We normally turn it around in somewhere between 2.25 – 2.50 hours. So the answer to your question, yes we can and I can even take it one step further in terms of supply chain for the feed that goes into the birds, whether it be the wheat or the soya I can do all that as well. So, in the poultry sector, I can’t speak on behalf of the other sectors because I’m not as close, but I would imagine it’s pretty much the same there. I sit very very comfortably on traceability.

That’s impressive!

How about that?

That’s a lot of work that goes into that.

But, it’s a great story to tell. You know when you get a TV scare and people are talking about horse meat and stuff like that, we had a minister for Food get on the prime time television BBC news when we had these issues and he said, “Obviously you can’t guarantee it because in the horsemeat scandal there’s a criminal element involved and the law enforcement authorities are dealing with that right now, but when asked the question by the interviewer, much the same as you are now, the interviewer said, “What would you do in a situation like this right now if you were a consumer?” And, the minister said, “look for a Red Tractor on the pack and that’s as safe as it’s gonna get.” So there’s no better endorsement on the BBC News program with ten million plus viewers watching. I’ll tell you that anytime.

Yeah, and you’re not going to have, you know a government Minister going out on a limb very often if that’s not a pretty safe statement.

He’s gotta be pretty cool with what he’s saying, he’s gotta be comfortable with it.

Well, thank you very much Philip.

Pleasure.

I really appreciate it. I hope you’re enjoying your time here.

Always do, I’m delighted to be back here. Always enjoy it.

I want to thank Philip for spending some time with us. You can find out more about Red Tractor at redtractor.org.uk and you can find out more about Two Sisters Food Group at 2sfg.com.

Thanks so much for listening to the AgFuture podcast and thanks to our producer Robbie Gay. If you like the podcast please share it with your friends or give us a rating on iTunes. We'd love to hear from you too. Send your comments or suggestions to AgFuture@alltech.com.

This is a guest post from Ryan Goodman.  He blogs at Agriculture Proud.

Big ideas. We know the future of food systems, demand and supply continues to grow and evolve, but what are the tools that will get us there? Who are the people who will lead us there? What are the disruptive ideas that will fuel those ideas? Sometimes it takes a REBEL to be a LEADER.

During Alltech’s 2015 international symposium – REBELation, the theme was exploring how to be a leader, bring disruptive ideas to the table and taking advantage or opportunities to move us forward through innovation. Sometimes this innovative leadership is disruptive, but it often brings about fantastic results that make change.

REBELation brought forward a variety of leaders and innovators who all had unique experiences to share. Some of whom I don’t 100% agree with their business practices, which I’ll share more about later, yet they definitely provide great examples for taking advantage of opportunities for disruptive innovation that makes change.

If you’ve ever met Alltech’s Founder, Dr. Pearse Lyons, or even heard him speak, you’ll identify him as a man with passion for what he does. He is an innovative businessman, forward thinker, challenger and a rebel. You never know what to expect he’ll say, sometimes you’ll wonder where he’s going with a point, yet his words often challenge you to think. I’ve attended several of Alltech’s meetings in the past, with trips to Lexington and France, and there’s always something new to take home.

During this year’s REBELation Opening Session, Dr. Lyons left us with a few words of advice that set the tone for our meetings ahead.

Don’t oversleep on your dreams. To be leaders, we must combine urgency and innovation to stay ahead of the curve.

Rebels innovate and are constantly seeking new products and ideas. In order to innovative and creative, you have to fall in love with doing things differently.

What’s your goal? How do you achieve it? Avoid energy vampires. Make sure your dream has purpose and passion. Don’t die with your music still in you, Do what makes your heart sing.

Dr. Lyons goes on to describe qualities of a rebel to include provocateur, firebrand, instigator, motivator, revolutionary. A leader of this type must remain calm and be kind, have a vision but at the same time, be demanding. Qualities which most definitely describe the actions of General Colin Powell, who spoke to the crowd.

I’ve never been one to follow many politics or our country’s war efforts closely, but most would definitely recognize General Powell from his time serving our country and working closely with international leaders. He is a man who has been recognized for his leadership and ability to lead his teams on several occasions, which definitely translated to some great advice as he shared his experiences with us.

A leader must…

• Be confident and have a sense of purpose. This translates to your team’s trust in your abilities.
• Understand what is expected of the leader. Leaders have to understand and convey this to those following.
• Inspire people. People who are inspired are self-motivated.
• Have optimism and confidence.
• Be relevant in today’s world, which often means keeping pace.
• Recognize performance when a job is done well.
• Know how to identify problems and fix them.
• Build bonds of trust in their organization.
• Look at opportunities in the future and know how to deal with risks when they arrive.
• Be selfless, not selfish.
• Execute the plan.

How does this apply to agriculture? As Dr. Pearse Lyons shared with the AgWired team in reference to awarding General Colin Powell with the Alltech Medal of Excellence award, “What is the number one thing missing from agriculture and business today? Leadership, and when I think of leadership, General Powell comes first to mind. He is decisive, courageous and a ‘force multiplier of perpetual optimism.”

Read more on Ryan's blog, Agriculture Proud.

Find out more about Ryan here.

Announcing new acquisitions in Norway (from left to right) are Dr. Pearse Lyons, founder and president of Alltech, Bjarne Ravnøy, Magne Kolstad, Leif Loe, Linda Dvergsdal Hauge all from Produs and Patrick Charlton, Alltech vice president for Europe. Produs and Produs Aqua are Alltech’s ninth and tenth acquisitions respectively, a development that will mean continued innovative, customised and quality products, programmes, services and on-farm consultation for customers in Norway, both on land and at sea.

Today we are proud to announce another acquisition in Europe. Currently Alltech has a presence across much of Europe, with Norway being a final frontier. This morning we announced an agreement to acquire Produs AS and Produs Aqua AS, Norway. Based in both Førde and Bergen, Norway, Produs has been in business for nearly 15 years, and during this time has worked closely with us. Produs is a very strong brand in Norway, and there is a great fit between the Alltech and the Produs brands. Produs has always been a strong ambassador for the Alltech brand in Norway and together we now offer a strengthened commitment to our customers, providing them with tailored solutions and local support.

Improving animal nutrition is a pressing need for the productivity of the world’s farmers and those involved in the food chain. Feed costs comprise the majority of livestock production costs. By improving nutrition, livestock and poultry producers are able to realise a significant increase in efficiencies and return on investment. Alltech’s continued commitment to tailoring nutrition and health programmes with a focus on natural ingredients, allows farmers to raise healthier animals through a process that is more beneficial for animals, consumers and the environment. 

We’re very excited to welcome the Produs team to Alltech, and we’ll have more to share about our integration in the coming months. In the meantime, read more about today’s news in our press release.

Something all poultry businesses have in common is that feed costs represent the biggest portion of production expenses. Integrators therefore spend a large part of their time looking at ways to cut dollars and cents out of their feed costs. In fact, the average million birds per week complex will save an estimated $313,500 per year by reducing feed costs by just $1 per ton. What many don’t know is that a lot of the wasted money is the result of undigested feed.

Many studies have found a direct relationship between feed efficiency (FE), and overall poultry health, performance, uniformity and quality. This is because FE impacts the microbial balance in the gastrointestinal tract (GIT) of poultry. Proper FE has been shown to reduce the amount of undigested energy available to pathogenic bacteria in the lower gut. Further, enzymes that help break down indigestible feedstuffs have also been shown to have a prebiotic effect by producing oligosaccharides in the upper part of the GIT. Collectively these two health benefits can potentially save integrators money by improving the health and performance of their flocks.

The Agristats^® report for March 2015 reveals how even minor performance changes can have a major impact in poultry operations:

(Applicable to a 1 million birds per week complex)

1. Parent Breeding:
   • Change of 1% in rate of lay represents $173,000/year
   • Change of 1 chick produced/hen/year represents $265,000/year
2. Hatching:
   • Change of 1% in hatchability represents $33,000/year
   • Change of 1 cent/chick cost represents $543,000/year
3. Broiler Growing:
   • Change of 1% in mortality represents $241,000/year
   • Change of 0.25% in condemnation represents $267,000/year

Getting the most from your feed

Alltech^® True Check^™ is an example of an in vitro digestion system developed to evaluate diets and impacts of feed technology in monogastric animals. Utilizing samples of feed, Alltech True Check mimics the real-life conditions of the animal’s digestive system.

Alltech True Check has the ability to screen diets or individual feed components with and without feed technologies more rapidly and economically than costly animal trials.  After digestion is simulated, nutrient availability and digestibility values are obtained that can help integrators see potential cost savings. Ask your Alltech representative about True Check and unlock the hidden potential in your poultry feed.

“True Check is a game changer since it allows us to graphically show our clients how effective their feed is at releasing digestible nutrients,” said Paulo Rigolin, Alltech poultry director.

Question: What is the most exciting thing to you about Ridley joining the Alltech family?

Dr. Lyons: When I think of Ridley joining the Alltech family, I think of the opportunities to bring our technology to ranchers and farmers around the world. For 35 years, we have developed technologies that help meat, milk and egg producers. This has been done according to our ACE principle of being friendly to Animal, Consumer and the Environment. With Ridley being an Alltech company, we can now connect to more ranchers and farmers and bring them technologies that, based on the initial responses, they are eager to see.

Question: How do the cultures of both Ridley and Alltech compare?

Dr. Lyons: I’ve known Ridley for 30 years and, although they were recently a publicly-traded company, they’ve always retained a real family background. Hubbard certainly had a family background and Ridley coming from the Australian side also had a family background. That family-focused culture fits well with Alltech’s own history and is highly respected and appreciated by ranchers and farmers. 

The Ridley team also has the same intense curiosity that Alltech was built upon. The Ridley managers and technical teams that I’ve met all want to find and apply new solutions in a quick and efficient manner to help meat, milk and egg producers around the world.

Ultimately, this is a perfect cultural fit of Family, Curiosity and Speed.

Question: How are producers, farmers and ranchers going to benefit from Ridley being an Alltech company?

Dr. Lyons: The fact of the matter is that ranchers and farmers are under immense pressure. They’re under pressure to produce more from less. They’re under pressure to avoid pollution. They’re under pressure to have total transparency. They’re under pressure to get the latest technology. One solution to these problems is science, and Alltech has a primacy in science. For example, Danish farmers are using Alltech technology to get 36 pigs per sow per annum, much more than their U.S. counterparts who don’t use our technology. Additionally, we are helping cows on the West Coast produce much more milk than some Midwest cows. By combining Ridley and Alltech’s primacy in the application of science, we are going to give ranchers and farmers access to the solutions they want and need.

Question: How do the employees of Alltech and the employees of Ridley benefit?

Dr. Lyons: Back in 1980, my wife and I were the only two employees. Fast forward to 2015 and we now have 4,200 smart and ambitious team members. Alltech is a private company and is not for sale. We, therefore, have the ability to be able to put our profits back into the company.

If I had to identify one big benefit that relates to our 4,200 team members, it would be opportunity. If our employees have curiosity and want to make things happen, then this is the place to be. Alltech will provide them with a lifetime of opportunity. 

Question: What is your vision for Ridley?

Dr. Lyons: We have a primacy in science and technology that ranchers and farmers around the world need and want. With Ridley, we have the opportunity to support more ranchers and farmers, especially in North America. I believe our journey together will be characterized by excitement and curiosity and ultimately take us past the $4 billion mark I’ve set as a goal.

Question: Alltech has a revenue goal of $4 billion in the next few years and even as much as $10 billion beyond that. How does Ridley help us achieve that goal together?

Dr. Lyons: By having critical mass, you can move much faster toward your goals. $10 billion is just a number. Are we going to be disappointed if we don’t get there fast enough? Of course not. Are we going to be disappointed if we don’t try to get there? Of course we are. When you have 4,200 people with a common goal, it’s a lot easier to get things done. Colin Powell said it best – we’ll talk, we’ll debate, we’ll do all of these things, but when we walk out that door, we’re on the same team with the same objective. 

Question: Well, interestingly, we were going to ask you about one piece of advice you would have for Ridley employees? Is it Colin Powell’s piece of advice or would you add to that?

Dr. Lyons: The first piece of advice I would give is be open to change. Alltech is all about change, advancement and moving forward. The second point I would make is be curious. Curiosity is at the core of Alltech. The third piece is be ambitious. Be ambitious for yourself and your family. We are all now part of a great team that is committed to creating opportunity.

Question: Ridley is Alltech’s eighth acquisition since 2011. Alltech also has multiple divisions - Alltech Nutrition, Alltech Beverage, Alltech Crop Science and Alltech Life Sciences. What’s next for the Alltech family of companies?

Dr. Lyons: There are certainly going to be very exciting things happening in the area of algae. I was at the algae facility recently, and the team there has a sense of excitement about the reality of us being able to capitalize on some new opportunities in the near future.

One thing is for sure, the opportunities will come fast and furious. At Alltech, we’ve always embraced opportunity, and we will continue to be an exciting and dynamic company. We will continue to embody the spirit of our recent REBELation international conference. I’ve had people come to me saying, Wow, what a meeting. I’ve never seen anything like it.” Well quite frankly, “they ain’t seen nothing yet!”

Robert Walker, Alltech Crop Science 

Today more than 800 million people face hunger and malnutrition. As the population grows, food production will have to increase by approximately 60 percent by 2050. How do we feed, fuel and support the growing world population? 

Currently 33 percent of world soils are under severe pressure from human activities that degrade and sometimes eliminate essential soil functions. At Crop Science: Growing the Revolution symposium, Robert Walker, general manager of Alltech Crop Science, addressed the importance of soil.

“It takes 2,000 years for 10 centimetres of topsoil to form, and there are only 100 harvests left in UK soils,” said Walker, noting that a recent trial carried out in the UK found that city soils had 33 percent more carbon and 25 percent more nitrogen than their agriculture counterparts. Yet, he said, the agricultural soils produce more food.

The United Nations General Assembly declared 2015 the International Year of Soils, and Alltech continues to highlight its importance in the food chain. Soil has a lot more to offer than just food production – soil microbes must be explored.

“We have only identified 2 percent of all microbes in the soil. We need to be looking at the other 98 percent,” added Walker, underscoring that it has been 30 years since the last antibiotic was brought to market. Recently scientists found 25 new antibiotics in the soil so the potential is out there.

“Microbes in soil make the plant more resistant to pathogens. By adding microbes to the soil, it can add a lot of money to your yield. It's a business that is going to double in value,” Walker said.

Crop science has huge growth potential. We need to ask ourselves why big companies like Syngenta, Monsanto and Bayer Crop Science are acquiring interests in or entering the bio market. There is so much more to soil than meets the eye.

According to the United Nations Food and Agriculture Association (FAO), the global volume of food wastage is estimated at 1.6 billion tons, with a global cost of $750 billion annually. “Each day 35 to 40 percent of food that is grown or raised is wasted, and 71 percent of global water consumption is used to irrigate crops,” said Dan Glickman, former U.S. secretary of agriculture.

Today 60 percent of food loss comes from the U.S. and Europe, yet globally more than 800 million people face hunger and malnutrition. As the population grows, food production will have to increase by approximately 60 percent by 2050. Can the reduction of food waste contribute to feeding the world? During the session on Crop Science: Growing the Revolution, Glickman identified four ways to prevent food waste:

• Global adoption of good Samaritan laws – These laws are intended to protect good-faith food donors from civil and criminal liability should the product cause harm to its recipient. In the U.S. 14 billion pounds of food per year is sent to landfills. Meanwhile, nearly 30 million Americans, including 12 million children, are at risk of hunger and malnutrition. The adoption of good Samaritan laws globally would reduce this risk, as well as food waste.
• Research and development – Budgets for agricultural research and development have not increased to meet the scientific demands of the world. Global budgets for agriculture and food security need to increase dramatically for us to increase crop yield and develop new methods of pest resistance.
• The role of technology – We must continue to challenge the basic principles of science. New developments in biotechnology have helped us understand nutrigenomics and genes. This form of technology must be embraced to ensure we get the full potential from our crops and arable land. 
• Agricultural grants and education – Training and education must be supported if we are to continue to feed the world. Young men and women who wish to enter the agricultural industry must be supported and educated to ensure the future of food production can be secured.

Have a question or comment?

When North American shoppers think of farmed seafood, if they think of it at all, they probably think of farm-raised salmon, catfish or tilapia. They might not be very familiar with the word “aquaculture”. They may even think of it as a novelty, something they are unsure of. As they look at the labels in the seafood case they may think of negative and positive messages they have heard about farm-raised fish. Should they buy it because it is preserving wild fish populations or should they avoid it because it is polluting our waters? Most of us still have a lot to learn about aquaculture.

Industry experts gathered for the Aquaculture session at Alltech’s REBELation today. Vaun Cummins, Alltech’s senior aquaculture technician covered some of the milestones that have been hit over the past 50 years by an industry that, in actuality, represents a major segment of the global agriculture and food industries.

Here are a few things that will probably surprise you about aquaculture and the traditional fishing industry:

• Fishing is the last significant form of hunting and gathering. However, the annual global wild catch hit its apparent limit in the early 1980s. Each year more of our seafood demand is met by aquaculture (which is just another form of agriculture).
   
• Nearly 90% of aquaculture production is in Asia, where carp are very popular. In fact 6 of the top 10 global aquaculture species are carp.
   
• In the early 1970s, the total quantity of farmed fish produced in the world was about 3 million tons, a tiny fraction of worldwide meat consumption. Now aquaculture is the fastest growing animal food production activity and in 2012 global aquaculture production reached 66 million tons, surpassing global beef production by 3 million tons.
   
• Over the last 50 years the supply of seafood has grown at about 3.2% per year, twice the rate of world population growth. For many people fish is more plentiful than ever before.
   
• Aquaculture, like any form of agriculture, can be practiced sustainably or unsustainably. Many producers are currently using methods like recirculating systems, aquaponics, multi-trophic or offshore systems to minimize environmental impact.

While attendees mixed and mingled at the Alltech Craft Brews & Food Fair and admired the impressive wall of beers entered into the Commonwealth Cup, Dr. Pearse Lyons took the stage to prepare to announce the second Commonwealth Cup winner. Craft beer fans were intrigued to learn about a brewery several hours north of Lexington, The Dayton Beer Co. located in Kettering, Ohio, that took home the Commonwealth Cup at the second Alltech Craft Brews and Food Fest.

The competition is the only professional beer competition in Kentucky and boasted 350 beers from 20 countries. Beer was the name of the game for the day, beyond the excitement of the competition announcement, with many delicious brews being sampled by a wide range of craft beer fans with sampling glasses in hand, some sporting pretzel necklaces.

New to the Kentucky craft beer festival scene was Tampa’s Cigar City Brewing and Cigar City Cider & Mead. Their brews, Jai Alai IPA and Cowboy Dan’s Holiday Extravaganza, tantalized taste buds. Some of favorites from the fest included a pale ale, Zombie Dust, from Three Floyd’s and a limited release red ale, Debs Red, from Bell’s Brewing. 

Kentucky favorite breweries including Against the Grain brewery, Country Boy Brewing Co., West Sixth Brewing and more all poured classic as well as unique brews and chatted with beer fans.

From the new Kentucky craft distillers area came bourbon, brandy and even absinthe. The absinthe came from Louisville’s Copper & Kings Distillery and boasted a liquorice flavor. The company also produces vapor distilled lavender, citrus, and ginger versions.

Patrons also enjoyed sensory sessions with Mark Phipps and Ken Lee, master brewers at Alltech Lexington Brewing & Distilling Co. The two longtime brewers offered their insight into malts, hops, and brewing the perfect beer. 

All in all, the fest drew 51 national and local craft breweries boasting 180 craft brews, with special tappings every 15 minutes that brought lines to popular booths. The fair will return next year due to popular demand and likely grow even more in its third year – we hope Kentucky’s craft beer fans will join us!

Jerry O’Callaghan brings his extraordinary story to The Alltech REBELation. As a young man he moved from his Irish homeland to Brazil, where, through hard work, persistence and refusing to give up, he became a driving force in the global beef industry.

His amazing journey began nearly 20 years ago, when he took a leap of faith and joined what was then a small company, JBS, with the mission of developing its international business. And develop it, he did. Today JBS is the world’s leading animal protein producer, with O’Callaghan remaining a central force in its ever-expanding global rise. Under his leadership, JBS became the first beef company to launch an IPO. Its success has reached into other markets, including pork, chicken, dairy, lamb, leather and biodiesel.

Great achievements, however, do not come without risks, trial and error. O’Callaghan has seen every success and failure that can come with animal production, particularly within today’s challenge of feeding a growing global population. All the while, JBS’s efforts have been tailored to minimize environmental impact and to improve the communities in which it operates.

No one is better equipped than O’Callaghan to speak on the advantages of partnering with a large-scale, multi-protein company such as JBS. Join us to learn about the opportunities awaiting a progressive farmer or rancher who forms an alliance with a dynamic and globally commercial company, and learn what JBS is doing differently that sets it so far ahead of competitors in the beef industry.

O’Callaghan’s talk will provide an entrée to this Beef Symposium rich in networking and opportunity. His take on “The JBS Story: How to become the biggest and the best” will share the strategies that have molded JBS and put it in the leading position it holds today. He will impart tips on finding the right customer for every product and establishing efficient, low-cost operations. You will bring home the tools you need to find your own niche market and identify your competitive advantage in this highly competitive arena.

We invite you to join The Alltech REBELation!

For more information and to register, go to rebel.alltech.com.

Today we are proud to announce a major acquisition that we believe will allow us to deliver even better service and greater value to our customers globally. This morning we announced an agreement to acquire Ridley Inc., one of the leading commercial animal nutrition companies in North America. This deal is a “win-win” for customers of both companies.

Ridley produces some of the industry’s best-selling and most widely-recognized blocks and nutrition supplements. Together, Alltech and Ridley will become a global leader in animal health and nutrition with annual revenues in excess of $1.6 billion and an unrivaled platform for growth across local, North American and international markets.

Improved animal nutrition is a pressing need for the productivity of the world’s livestock and food chain. Feed costs comprise the majority of livestock production costs. By improving nutrition, livestock and poultry producers are able to realize a significant increase in efficiencies and return on investment. Alltech’s continued commitment to tailoring nutrition and health programs with a focus on natural, antibiotic free ingredients, allows livestock and poultry producers to raise healthier animals through a process that is more beneficial for animals, consumers and the environment.

This growth opportunity will create better access for livestock and poultry producers to superior nutrition solutions by combining Ridley’s extensive on-farm presence and dealer distribution network in North America with Alltech’s cutting-edge animal nutrition technologies. Livestock and poultry producers in North America will have unparalled access to Alltech’s leading nutrition technology and the company’s additional suite of services, including financial, crop enhancement and sustainability programs.

Given Alltech’s global reach, this deal will also allow Ridley the opportunity to globalize its solutions. Customers outside of North America will now gain access to Ridley’s well known blocks and nutrition supplements.

I’m proud to say that our combined commitment to R&D and innovation will remain unwavering. Alltech spends approximately 10 percent of its gross revenue on R&D, more than any other company in the industry and Ridley has a strong technical team with over 40 advanced degrees who will now be working side-by-side with Alltech’s team of approximately 150 PhDs. This deal will further deepen Alltech’s commitment to science and allow us to bring more advanced animal nutrition solutions to livestock and poultry producers around the world.

We’re thrilled to welcome the Ridley team to Alltech, and we’ll have more to share about our integration soon. 

This year during Alltech REBELation, we would like you to join us in visiting two of Kentucky’s most progressive dairy farms.

The first stop: Riney Dairy, LLC in Springfield, Kentucky. Billy Riney and his father have been milking since 1978. Having evolved substantially over time, Riney Dairy now boasts a 350-head Holstein herd and credits a newly installed GEA Double-12 parallel parlor to helping them maintain efficiency and productivity.  The Riney operation includes a free stall barn and a compost bedded pack barn.  Billy and his son, who is also involved in the business, focus heavily on farm profitability and herd health.

The next stop: Kings Hill Dairy in Lebanon, Kentucky.  Assuming ownership from his dad in 1986, Bill Mattingly’s Kings Hill Dairy, has been a family-run operation since its inception. Kings Hill Dairy milks 205 Holsteins and manages approximately 600 acres.  Recently the Mattingly family began using a compost bedded pack barn for their entire milking herd. This farm provides a great example of Kentucky agriculture with strong family involvement, and is progressively keeping its eye on sustaining the operation for the next generation.

A commonality in these two farms is a popular technology that continues to gain traction across Kentucky -- the compost bedded pack barn. Dairy housing systems have a substantial impact on overall health and productivity of a dairy operation.

What is a compost bedded pack barn?

As Dr. Jeffrey Bewley, Professor of Dairy Sciences at the University of Kentucky and leader in research for these housing systems, explains, “The compost bedded pack barn is a housing system for lactating dairy cows consisting of a large, open resting areas, usually bedded with sawdust or dry, fine wood shavings that are composted in place, along with manure, when mechanically stirred on a regular basis.”

Benefits of a compost bedded pack barn

Dr. Bewley also said, “Producer-reported benefits of these barns include improved cow comfort, improved cow cleanliness, the low maintenance nature of the system, improved feet and legs, decreased somatic cell count, increased heat detection, ease of manure handling, increased production, increased longevity, low investment costs, less odor, fewer flies, less concern with cow size, and improved manure value.”

Finally, in true Kentucky fashion, the tour will end with a stop at one of the top bourbon distilleries in the state – Maker’s Mark Distillery in Loretto, Kentucky.  One of the world’s iconic Kentucky-made products, Maker’s Mark sold more than 1.4 million cases of its bourbon whiskey, with distinctive bottles dipped in red wax, around the globe in 2013 alone. Join us for this exciting end to a perfect day! In order to achieve the full Kentucky experience we invite you to attend these dairy tours that are part of the Alltech REBELation event.  Join us in exploring innovation, inspiration and world-changing ideas in Lexington, Kentucky, USA, from May 17-20.