Following our annual Global Feed Survey, we decided to dive a little deeper into aquaculture this year and produce our first Aquaculture Feed Survey.

What did we find?

Similar to the overall Global Feed Survey, China ranks number one in aquaculture, producing more than 17.3 million tonnes of fish feed, far outpacing the second most productive country, Vietnam at 2.8 million tonnes.

Click here to download the chart of the top 12 aqua feed-producing countries, as well as additional survey details.

Sixty-two percent of China’s aqua feed production is for carp. For shrimp, the greatest shares of the countries’ aqua feed production were in India (66 percent), Thailand (42 percent) and Indonesia (33 percent). Perhaps unsurprisingly, the greatest shares of salmon feed production were in Norway (94 percent), Canada (86 percent) and Chile (85 percent).

How do shrimp and salmon compare overall?

Shrimp accounts for 21 percent of global aqua feed production, 82 percent of which occurs in Asia. Salmon, meanwhile, accounts for 11 percent globally, with Europe as the center of production (52 percent of global salmon feed).

The high cost of finisher feeds

The survey also examined the average cost of finisher diets. Interestingly, the top three most expensive were all within the Asia-Pacific region: Korea at $1,800; Japan at $1,700 and Vietnam at $1,333. However, nearly 50 percent of survey responses indicated average prices over $1,000.

Have a question or comment?

With the 2016 Central Plains Dairy Expo kicking off this week in Sioux Falls, South Dakota, we are gearing up for a unique educational experience. Dr. Roger Scaletti, Alltech North America Mineral Management team technical sales and support, and Tom Lorenzen, Alltech on-farm specialist, will be teaming up for an udder health workshop, helping producers take an inside look at udder health and milk quality. 

Scaletti and Lorenzen plan to give producers four key practical approaches to managing udder health and combating mastitis:

Environment

The environment that your cattle are housed in can play a major role in poor milk quality. Are your cows housed in a mastitis-infected yard, or are they in a well-ventilated dry area, with minimal contact to some of the key mastitis-causing bacteria? While udder health management is important in preventing cases of mastitis, it is also important to understand how the disease travels through the udder. According to Scaletti, it’s a process beginning with the bacteria first entering the gland, multiplying, evading host defenses and finally damaging the host. Cases of mastitis can be both clinical or subclinical and contagious or environmental.

Know your enemy

“If you cannot measure it, you cannot control it. If you cannot control it, you cannot manage it.”

These words of advice from Lorenzen ring true. Whether culturing quarters individually or utilizing a California Mastitis Test (CMT), getting an understanding of what bacteria or what quarters you are dealing with is key. To find out what type of mastitis cows are infected with, Scaletti suggests culturing milk or using a DNA test. This quick test, which only takes four hours, can examine the bulk tank or individual cows, and producers can use the same sample as collected for somatic cell count (SCC). The test can be customized to report only contagious pathogens, or you can request the full panel of pathogens that can be detected. Running a culture on infected quarters can be beneficial in understanding what specific bacteria you are fighting, and what specific treatment to which that particular bacteria will respond.

Feeding program

Nutrition and the use of organic trace minerals can play a key role in milk quality as well as managing infections before they even occur. Nutrition has been linked to improving immune function and reducing mastitis. Selenium for strong antioxidant phagocytic cells, zinc for the integrity of skin and copper for neutrophil production and antibody development are a few of the more important trace minerals involved in immune function.  Alltech has committed over 30 years to research in mineral nutrition as well as formulating technologies that meet herds’ needs while safeguarding them from potential risks.

Minerals: Form vs. function

While some might argue for more inorganic minerals in the ration, Scaletti said it is important to consider bioavailability, mineral interactions and environmental concerns. A trace mineral chelated to amino acids or peptides offers higher bioavailability and supports the animal’s natural defense system. In addition to organic mineral research, Scaletti also highlighted the importance of keeping the cow’s selenium status in check. In one recent Florida study, researchers found cows fed organic selenium had 100,000+ lower SCC than those fed sodium selenite.

There’s been a lot of discussion these days about the qualities of the most marketable eggs. We’ve gone beyond fundamental safety and nutrition to a growing retail movement that seeks cage-free produced eggs and value-added product, such as omega-3 eggs.

Yet we actually do not discuss enough the most basic aspect of quality that matters to everyone: eggshell strength. Simply put, cracked eggs do not sell; without eggshell quality, no other egg characteristic matters.

Similar to prenatal vitamins for a pregnant woman, the quality of an egg can be greatly impacted by the nutrition of the layer hen. By changing a bird’s diet, everything from chick development to shell condition can be affected. For this post, we are going to focus on the effect minerals can have on shell strength, specifically in regard to the form those minerals are given in.

On the farm, up to 90% of total losses can come as a result of poor eggshell quality. Shell strength is important to eggs for withstanding the sometimes turbulent shipping process or to protect developing chicks from external world. A strong shell is the difference in making sure eggs make it safely from the farm to your plate, or your child’s paint brush in the case of Easter painting traditions.

Even though eggshells are composed of 94 percent calcium carbonate and 1.4 percent magnesium carbonate, many new studies are now revealing the critical role of trace minerals in eggshell formation. A 2012 study from the Institute of Biodiversity, Glasgow, United Kingdom, found that strength is reduced by the inclusion of abnormal forms of minerals in the diet. Conversely, in bioplexed form, selenium, manganese, zinc, copper, and iron are absorbed more readily. These elements are essential nutrients to shell strength and are crucial to a number of enzymatic processes that lead to optimal shell formation.

As clean drinking water becomes an increasingly scarce commodity in the face of climate change and rapid global population growth, the relationship between Earth’s life-sustaining liquid and work will take on greater significance. With its “Jobs and Water” theme, United Nations’ (U.N.) World Water Day 2016 aims to address water sanitation and workers’ rights issues to forge solutions that benefit both individual workers and the global economy.

In the coming decades, the agriculture industry, the world’s largest employer and consumer of water, will play vital roles both in feeding a projected global population of 9 billion in 2050 and developing ways to reduce groundwater and runoff water contamination connected to food production. Between now and 2050, the World Bank projects that required food production will increase 60 percent and water withdrawal will increase 15 percent. 

Today, clean drinking water remains unavailable for almost 700 million people worldwide for various reasons, from lead in the pipes in Flint, Mich., to extreme desert conditions in Sub-Saharan Africa. By 2025, the U.N. predicts 1.8 billion people will live in areas of high water stress, potentially leading to the displacement of millions. Lack of clean water, in addition to raising risks of famine, disease and refugee crises, also causes serious detriment to a nation’s GDP, the World Bank noted in a 2015 report that labeled water security as the number one global threat in terms of development impact.  

Almost half the world’s current workforce—an estimated 1.5 billion people—participate in water-related industries. Many laborers, like the Sub-Saharan African women who walk miles to deliver their families clean water, are unpaid and are unable to develop other work skills because no clear alternative exists. Basic labor rights also remain elusive for large numbers of water-related workers, as suggested by the 340,000 workplace deaths annually attributable to water sanitation issues, according to the U.N.

Yet, amid these dark clouds, there is also cause for optimism, according to Guy Ryder, International Labor Organization (ILO) director-general and chair of UN-Water. ILO coordinated this year’s World Water Day on the U.N.’s behalf.

“Water can contribute to a greener economy and to sustainable development, but for this to happen we need more workers qualified to realize the potential of new, green technologies,” said Ryder in his official World Water Day video message last week. “The fact is that water is work.”

Across the world, the water Ryder referred to is agriculture-related.

Agriculture accounts for 80 percent of all water consumed in the United States and as much as 90 percent in some Western states, reports the U.S. Department of Agriculture. Globally, 70 percent of withdrawals are for agriculture, an industry that employs 1.3 billion people, according to French agriculture think tank Momagri.

Water scarcity, given its impact on agriculture, can threaten even the world’s strongest economies. Case in point: India.

India’s agriculture industry employs almost half of its 1.3 billion residents and accounts for 18 percent of its $2 trillion GDP. However, a third straight lackluster monsoon season due to the weather pattern El Nino, coupled with significantly below-average reservoir levels, could lead to low crop yields, increased food prices and an economic downturn, according to a recent Bloomberg Business article.

“Water security is India’s biggest challenge,” Shashi Shekhar, secretary of India’s Ministry of Water Resources, told Bloomberg.

“What has happened in India is a warning and a lesson for the world,” Seth M. Siegel, author of New York Times bestseller “Let There Be Water,” said during a recent edition of his podcast of the same name, highlighting the juxtaposition between the country’s abundant amounts of water and enormous water problems. Siegel chronicled Israel’s rise as water innovators in his best-selling book and will share solutions to the world’s water crises during ONE: The Alltech Ideas Conference, to be held in Lexington, Ky. from May 22-25.  

As Siegel alluded, India is not alone. Even in South America, home to 28 percent of the world’s freshwater, according to the Global Water Partnership, rising global temperatures are creating water-related issues. The continent’s largest city, Sao Paolo, Brazil, faced a critical water shortage last year due to its worst drought in 80 years, resulting in government officials imposing water rations.

Extreme drought in the American West also led California, the most populous state in the U.S., to implement water rationing in 2015 for its 38 million residents.

Managing rising water demand and costs depends upon efficient irrigation systems and improved on-farm water management, according to the USDA’s study on water and irrigation use.

Conserved water rights programs, water banks, water markets and regulated irrigation withdrawals* are examples of institutional measures that could improve watershed-scale water-management, reduce the impact of irrigated production on offshore water quality and conserve water for nonagricultural demands, the USDA noted. However, the type, size and location of irrigated farms, along with legal and institutional measures governing water use, will determine such conservation programs’ effectiveness.

Animal diets can also have a significant effect on water usage and groundwater contamination.

Alltech creates products that maximize overall efficiency by lowering agricultural production time required and the amount of animal feed excreted back into the environment. The latter results in less water used in production and less water contamination respectively.

Alltech’s Bioplex^® range of organic trace minerals meets the higher nutrient demands of modern livestock for rapid growth, maximum reproductive performance and optimal animal health. Alltech’s Allzyme SSF^® works in synergy with the animal’s digestive system to break down layers of the feed that were previously inaccessible through digestion.

Alltech takes very seriously the challenges of improving nitrogen and mineral utilization to protect groundwater and surface water, said Dr. Kate Jacques, the company’s director of nutrition.

As the world’s greater user of water and top employer, agriculture has an unparalleled opportunity to impact the sustainability of the world’s new “oil.”

Glossary:

Conserved water rights programs and water banks: State water management programs that either “bank” conserved agricultural water for future use, or share, lease or even sell conserved water (ers.usda.gov; oregon.gov).  

Water Markets: A mechanism to improve the allocation and redistribution of water as a publicly managed resource (ecy.wa.gov).

Recent graduates from nine different countries have traveled all the way to Lexington, Kentucky, to join the 4^th Annual Alltech Corporate Career Development Program (CCDP). They have varied educational backgrounds ranging from a bachelor’s degree in economics to a double master’s in animal nutrition and agrobiology. Alltech’s 2016 CCDP members are a prestigious group of 11 recent graduates from the United States, Chile, Kazakhstan, Brazil, Indonesia, the Philippines, Chile, Vietnam and Ireland. They were selected from 2123 applicants!

This program, designed to recruit future leaders within global agribusiness, kicked off with an intensive orientation and training period at Alltech’s Global Headquarters in Nicholasville, Kentucky. Their first three months at Alltech will be devoted to supporting ONE: The Alltech Ideas Conference, the company’s flagship annual international conference. The ONE delivers three days of inspiration and engagement with some of the most innovative thinkers, leaders and ideas of our time. The involvement of the 2016 CCDP members in the conference plan reflects Alltech’s commitment to education and professional development, and its passion for bringing fresh ideas to the table.

Dr. Aoife Lyons, director of educational initiatives at Alltech and a licensed clinical psychologist leads the CCDP. She has conducted psychometric testing worldwide for hiring and training at Alltech for the past 10 years.

 “These young people are chosen not just for their educational backgrounds, intelligence and experience, but perhaps more importantly for their curiosity, enthusiasm and sense of adventure.” said Dr. Aoife Lyons. “We look forward to seeing them grow professionally during the year and beyond.” 

The CCDP offers members the opportunity to work on projects in research, information systems, marketing, sales, finance, operations, regulatory and more. They will be integral in supporting Alltech’s business in animal nutrition, crop science, algae, aquaculture, life sciences and the beverage industry.

Tien Le of Vietnam said, “The CCDP has been an amazing experience for me so far. It is a world-class, fast-paced and innovative program with a focus on entrepreneurial skills – just what I was looking for.”

Following their work on ONE, CCDP members will be assigned to one of Alltech’s international offices. There, they will work with a mentor to learn how a global market leader operates. On completion of the program, members will be ready to play a key role in their field of expertise, share their acquired knowledge and take on even greater responsibilities.

“One of the very first things that struck me at Alltech was the incredible amount of effort people make to help me succeed,” said Farkhat Kassymov of Kazakhstan. “From the very first day, I knew that I am part of a team here, and I am very happy to be on board!”

The 2016 Alltech Corporate Career Development Program members are:

• Andy Montgomery, Ireland, M.A. Communications
• Andy Juhadi, Indonesia, B.A. Business and Management
• Bailey Mack, United States, B.A. International Affairs, B.A. Spanish
• Farkhat Kassymov, Kazakhstan, B.A. Economics
• Katherine Reed Calvert, Brazil, B. Sc. Business: General Management
• Kate Taylor, United Kingdom, M.Sc. Agrobiology, M.Sc. Animal Nutrition
• Macie Mattmiller, United States, B.Sc. Agricultural Economics
• Rachel Weber, United States, B.Sc. Animal Science and Biological Sciences
• Rafael Burayag, Philippines, B.A. Economics
• Tanja Marincich, Chile, B. Sc. Mathematics and Economics
• Tien Le, Vietnam, B.A. Advertising and Marketing Communications

Click to learn more about the Corporate Career Development Program.

Like anything new or different, antibiotic-free production comes with its own challenges. And, these challenges make up many of the reasons why a lot of farmers currently don’t produce animals fully antibiotic-free. On top of this, today’s producer has the difficult proposition of producing more with less to meet the demands of a growing global population. How then can they reach that goal without the enhanced  production available through antibiotic use? 

Typical antibiotic-free livestock production challenges

Although they may vary by the environment, management methods and location, below are just some of the risks pig and poultry producers have to prepare for in antibiotic-free production  systems:

Pig challenges

• Poor gut integrity, leading to increased vulnerability to feed contaminants.

• Increased variability and days to market.

• Reduced water intake.

• Reduced feed consumption.

• Susceptibility to stress.

• Increased risk of exposure to bacteria/pathogens.

• Increased treatment costs.

• Increased post-weaning diarrhea.

• Increased post-weaning mortality.

Poultry challenges

• Day-old chick health.

• Bacterial load in the gastrointestinal tract and the litter.

• 7-10 day-old mortality.

• Uniformity.

• Coccidiosis control.

• Therapeutic interventions.

• Feed passage and weight gain.

Ultimately, all these potential issues can add up to extra costs for the producer. To avoid this, it is important to focus on a couple key areas: biosecurity and nutrition.

Biosecurity in antibiotic-free production

Effective biosecurity can not only help producers manage disease challenges, but also prevent the increased risks of many of the issues listed above. Required measures may include  changes to animal flow, increased focus on housing and transportation cleanliness, as well as heightened securities on those entering the facilities, whether that be a worker from another farm or a small rodent visitor; it is important protect the animals from the risk of exposure.

Nutrition in antibiotic-free production

To be truly effective, it can’t be a silver bullet approach. With antibiotics reduced or removed, the front line of defense may be nutrition, but that is just the start. A combination of strategies has to be put into effect. By powering nutrition with technologies designed to support the animals’ immune and digestive systems, and by implementing a full program focused on maintaining proper health, producers give their operations the best chance for a sustainable and profitable future.

Some producers have been ahead of the trend, and have been practicing antibiotic-free production for many years.

“When we accepted the challenge to go antibiotic-free from birth to market a few years ago, it proved to be a real challenge,” said Everett Forkner of Forkner Family Farms in Richards, Missouri. “But with the addition of nutritional innovations, we have not only been able to meet the challenge, we are producing more efficiently than when we began.”

Each farm is different, requiring each nutritional program to be tailored to meet the needs of the animals and their environment for a truly effective antibiotic-free approach.

When asked what some of the keys were to making the transition, Forkner said, “Establishing the right nutritional platform takes time. You have to allow some time for adjustments in order to really see what is best for the animals. And for us as a livestock breeder, it has also been about selecting superior animals and genetic lines that have more natural health and stronger immune systems. On top of this, a major component for us has been building this into a comprehensive immunization program while enhancing our management procedures. This combination has been what has helped us go multiple years and generations of genetic selection with no antibiotic support.”

Due to the Veterinary Feed Directive, we will see more and more U.S. producers focusing on antibiotic-free production. And with nearly 50 countries having some form of antibiotic restrictions, it is a global trend that will continue to grow. Alltech has been helping producers nourish the world for more than 35 years, while striving to ensure they remain sustainable and profitable.

To learn how Alltech is helping producers become profitable even without antibiotics or to see what program would be right for you, call your local representative or visit us at Alltech.com/antibiotic-free.

Hundreds of the world's leading dairy and beef producers gathered in Deauville, France, for an industry conference last fall. As they took their seats, they found a surprise on the table: Kit Kat candy bars.

Only a group of dairy industry devotees would get the humor — and the connection. Nestlé, one of the world's 50 largest companies (and producer of Kit Kat, along with baby foods and other milk-based products among its 2,000 brands), was about to announce its new partnership with global animal health and nutrition leader Alltech, organizer of the annual Alltech global conference for dairy and beef producers.

Their mutual endeavor: the Nestlé Dairy Farming Institute (DFI) in Shuangcheng in Heilongjiang province in northeast China. A major investment for both companies, the Institute, launched in October 2014, is helping modernize Chinese dairy farming practices so farmers can meet the population's burgeoning milk demand.

While it has not traditionally been a staple in the Chinese diet, milk is on the move in Asia. China is now one of the fastest growing markets for milk products globally. A 2014 study by the Institute for Agriculture and Trade Policy found that in the past three decades, both dairy production and consumption in China have soared, averaging a 12.8 percent annual growth rate since 2000.The nation's dairy consumption is expected to increase 38 percent by 2022, driven not only by traditional milk, yogurt and cheese products but also the introduction of new product concepts in China such as drinkable yogurts and milk-based juices.

"Milk is becoming a vital part of the Chinese diet," said Hans Joehr, Nestlé's head of Agriculture. "The Institute represents our commitment to helping China move its dairy sector to the next stage of development in a sustainable and efficient manner."

The DFI is geared to help gain consumers' confidence in locally produced milk and their trust in Chinese authorities. "The essence is that DFI will help society so farmers and businesses that use milk can stay in business. It's a very powerful thing to bring to the market. This has never been done before," he said.

Why did Nestlé select Alltech as its partner in this project? "It's a strategic alignment," said Joehr, explaining that Nestlé cannot accomplish its goal in China by itself. "It's like building a car. Even if you have a good chassis — Nestlé — what good is it if you don't have a good engine — Alltech?"

To produce its line of baby foods, he added, Nestlé needs the highest quality milk available. That starts with healthy milking cows. Describing Alltech as the "extra ingredient" needed to help farmers raise healthy cows, Joehr said Alltech understands the nutrition cows need to produce healthy milk for Nestlé's consumer products.

“It's like building a car. Even if you have a good chassis — Nestlé — what good is it if you don't have a good engine —Alltech?” -

Hans Joehr, Nestlé's head of Agriculture

He pointed in particular to the company's widely recognized expertise in the milk industry and in optimal care for production animals. "It's an end-to-end approach. You need a complete competence chain to please your client."

Joehr underscored that Nestlé considers DFI to be a long-term project, "not for just a year or two." That's why its alignment with Alltech is so crucial.

"We chose Alltech because of the attitude and vision of its leaders. They are reflected in the value set of the company. I have known Dr. Pearse Lyons (Alltech founder and president) and his family for many years. He has credibility and trust," he said, adding that Nestlé prefers to work with farmers and suppliers like Alltech that are owner-operated and like-minded.

Nestlé and Alltech share several strengths that are key to DFI's success, among them a commitment to education, which is an integral part of the project. Faculty members at DFI, each of whom brings specialized competences, hail from the University of Wisconsin Madison, Northeast Agricultural University and the Farm Comparison Network (IFCS). Since its opening six months ago, the Institute has held six classes on feed, as well as genetics programs and on-farm training.

Both companies have had boots on the ground in China for more than 20 years. Nestlé established three milk districts in China, in Shuangcheng, Laixi in Qingdao and Hulunbeier in Inner Mongolia. Alltech has a strong presence with an office in Beijing, which is run by Dr. Mark Lyons, global vice president, Alltech and head of Alltech China business operations.

"We are proud to be part of Nestlé's magnificent project in one of the most important regions of the Chinese dairy industry," said Lyons. "I am confident that Alltech's contribution, backed by 35 years of experience, will be significant in helping Chinese farmers sustainably increase their production efficiency and become more profitable."

Partnering with Nestlé is one of numerous projects included in its "China Now" program. China, as a critical player in global agribusiness, is a priority focus for Alltech, and China Now reflects the resources the company has invested to strengthen its local support within the market.

Fundamental to this strategy are partnerships with other businesses as well as universities. Within the last two years, Alltech has finalized formal research alliances with seven Chinese universities and research institutions — the Chinese National Feed Quality Control Center in Beijing; Northwest A&F University; Zhejiang University; South China Agriculture University; Jiangnan University; Ocean University of China; and the Ministry of Agriculture Feed Industry Centre (MAFIC) — to focus on intensive, solution-driven research.

Alltech brings to DFI a feed evaluation laboratory with the In Vitro Fermentation Model (IFM), a diagnostic tool that simulates rumen fermentation and evaluates the nutritive value of total mixed rations. Through IFM diagnostics, Chinese dairy nutritionists and farmers are not only be able to get evaluations and recommendations for dairy rations to maximize feed efficiency and combat ever-rising feed costs, but also obtain estimates of the amount of energy lost as methane and methane emissions per animal. In the rapidly developing Chinese dairy industry, such new technology helps dairy productivity to continue to improve while providing insight into new and more precise ways to evaluate feedstuffs and reduce environmental impact.

“Alltech is our worldwide partner, not just our partner in the DFI.” -

Hans Joehr

Noting Alltech's long-standing relationship with Nestlé, as well as Nestlé's excellence in collaborating and improving the supply chain, Dr. Pearse Lyons, president and founder of Alltech, pointed to the important role of Alltech's new lab at the DFI. The lab provides state-of-the-art feeding technologies to improve the health of dairy cows and increase milk yield, which will assist farmers in making feeding decisions.

What does the future hold for the Alltech-Nestlé alliance? "Alltech is our worldwide partner, not just our partner in the DFI," said Joehr, who recently met with Alltech's crop specialists in Brazil. He said Nestlé and Alltech plan to work together in South America, where Alltech has a strong team, in cocoa research and eventually expand into all cocoa-producing countries. "This will end up with the best milk chocolate in the future!" he said.

The Nestlé Dairy Farming Institute in Shuangcheng, Heilongjiang province, China, features Alltech’s cutting-edge technology feed evaluation laboratory. Dr. Neil Xu, research manager, Alltech China; Dr. Karl Dawson, chief scientific officer, Alltech; Dr. Anne Koontz, research scientist, Alltech China; Shelly Ji, laboratory technician, Alltech China; and Dr. Mark Lyons, global vice president, Alltech, were present at its official opening in October 2014.

In advance of the closing of Alltech’s acquisition of Canadian feed company Masterfeeds, we sat down with our president Dr. Pearse Lyons and the CEO of Masterfeeds, Rob Flack, for an unscripted, behind-the-scenes Q/A. The following is a transcript of the podcast.

Alltech and Masterfeeds have been partners for many years, can you tell us when and how this relationship started?

LYONS

Well, you know Canada has always been one of Alltech’s great marketplaces.  When I first came to the United States, it was to Canada that I came first, and I will always remember going to Canada in February, which is not a good idea for some of you setting foot in North America for the first time.  I began to understand why people get into their house as fast as they could.  So, almost hibernate for the winter.  But, as I traveled across the west, a real warmth towards Alltech, or what was the beginning of Alltech, so, somehow it was almost like a déjà vu.  We go back to the ‘80s, we go back to meeting at different feed meetings like the Guelph Nutrition Conference, like the nutrition conferences, which were held out in places like Calgary and even indeed up into Montreal.  This is a relationship that goes deep, a long, long relationship.

FLACK

Well, I guess it would be that I met Dr. Lyons years ago.  And, Pearse, if you don’t mind I’ll tell the story about when I came down to the Kentucky for the Kentucky Derby with Alltech and at the time I believe your right hand man, Dr. Lyons, Bill Cheek. 

LYONS

 Yes, good ol’ Bill Cheek, I have his picture right here on my desk.

FLACK

And, we had our dinner with a group setting, with people from all over the world. And, when the dinner was done, we had a sing-song and a laugh and some good cheer and pictures were being taken, and a picture was taken with me, I assumed, of me and my wife Denise, and some others, and I got home and as I was sitting at my desk, a letter came in from Bill Cheek who had wrote a nice note thanking us for coming down to the Kentucky Derby: We enjoyed hosting you and lovely picture of you here with your bride-to-be Denise. I looked at the picture and lo and behold it wasn’t my bride-to-be at all. It was another woman altogether, and so I wrote him a beautiful tongue-in-cheek response saying, I’m in deep trouble, this is not my wife at all and she’s read this and seen this and I am in deep trouble. And, he took it seriously, unfortunately, but sent me the most beautiful picture of a Kentucky morning turnout and, I believe, your wife, Mrs. Lyons, had this framed.  To this day, we have this hanging in our house so we can’t not think of Alltech when we look at this picture. 

So, it was some fun beginnings and that was close to 25 years ago.  And, the other big experience was partnering with Alltech in the 2010 Alltech FEI World Equestrian Games in Kentucky, and we had some fun for sure doing this.

What makes this acquisition a positive move for both companies?

LYONS

Well, you know, it’s not an acquisition, it’s a coming together of like-minded people.  It’s not an acquisition, it’s a coming together of friends.  I will quote what one of our people said this morning; they said “so far this is one of the easiest mergers coming together that we have had” and we have done, like, 10 of these so far.  This one was just dead easy.  And, what makes it positive for both companies is the synergies that can occur.  What makes it positive for both companies is that we can bring to the farmer, the Canadian farmer, the technology that we have and what Masterfeeds can bring to us is their technologies. And, since we are a company in 128 countries, and Canadians are great, great travelers and are very well-accepted across the world, we see the nutrition that Canada has as being of great use to people in China, to people in South America.  It’s not 1 + 1 = 2.  It’s 1 + 1 = 3 or even 4.

FLACK

And to add to that, the word I would use, is what we are seeing and why it’s so positive, is that we are seeing a lot of cross-pollination between all the Alltech divisions, whether it’s shared technology, their experiences across the world. And, I can say that I’ve done a lot of deals, and this has been the most exciting deal and change that I have seen internally in our 86-year history, not that I have been around for 86 years, but for the last 35 years plus, and this is absolutely one of the most exciting ownership changes we have ever been through.

LYONS

And, I will add to that.  It’s not just an ownership change.  They are joining a family business; they are joining a business that is not for sale, namely Alltech.  They are joining a business that will not go public.  So, it’s a win-win.  It’s a win for the people out there, the Masterfeeds people. It’s a win for the Alltech people and when you know you’re not for sale, and when you know you’re not going to be flipped, and so forth, then it just makes for a very comfortable situation.  I am surprised that we didn’t do it before.

Well, now that the deal has closed and we begin the integration process, what opportunities do you expect to see emerge?

LYONS

Well, I can only tell you what has happened in some of the other deals that we have done.  First of all, we expect to see a nice improvement in the profitability of Masterfeeds, Masterfeeds themselves. We expect to see some of that coming from synergy, we expect to see some of that coming from things they learn from us and vice versa, so there will be an improvement in profitability.  Then equally the ability for us to get our technology out to the farmer through Masterfeeds.  We are so excited.  The guys came into me this morning and they said, some of our people said, wow, we have just been into the analytical services laboratory that they have up there and they do so many hundreds of samples and so on.  This was our crop science people.  Oh, and we believe we can bring more samples, and we believe we can do this and we believe we can do that, and so on.  You know the benefits for us, the benefits for the Canadian farmer, and the benefits for the U.S. farmer, I don’t think we really realize just how great they’re going to be.

FLACK

What amazed me since we started our discussions really, Dr. Lyons, back in April, and as I obviously become more involved inside your company is the diversity and so much of that diversity can be incorporated within both our products and programs and it’s not only products and programs, but it’s the cultural diversity, the enthusiasm, the big picture thinking that truly is infectious, whether it’s animal nutrition innovation, that’s a given. I think that synergy is going to complement both of us. Crop science applications as you just mentioned.  We are growing significantly in that area in terms of sampling and soil application working with crop science companies.  New algae products.  Everyone who has been down and toured that algae facility, including me, the new products on the horizon are simply, it’s just exciting, and blows your mind in terms of the applications going forward, all of these represent new opportunities for Masterfeeds and quite frankly new opportunities for our customers, and we’re excited about taking them to the farm gate.

So, we touched a little bit on the benefits that Canadian farmers and ranchers will see, can we get a little more specific on that?

LYONS

Yes, you know, to me, farmers, I don’t care whether they be Hutterite farmers or whether they be corn growers, or whether they be pig farmers, farmers are born entrepreneurs.  Farmers always ask you one question—what’s new, what’s new, what’s new—and that’s what they want to do. They want to try things, and I think what’s going to happen now with the Canadian farmers in particular, since that is where we are, right above Canada now. They are going to get the benefits of our experience from 128 countries.  We are going to hopefully bring, some of them, to 128 countries. And, if there is an opportunity in Manitoba or an opportunity in Ontario, or if there is a challenge in Manitoba or a challenge in Ontario, we can immediately go to his friends, and Alltech is a company of friends, and he can go to his friends in 128 countries and say this is what we’ve got.  Could it benefit you? Or, this is what we’ve got, do you have anything that could benefit us?  It’s all about communication.  It’s about two or three things:

1. We have to have size.  You can’t be too big, but you have to have size. With Masterfeeds, we have size.
2. The second thing is you have to have innovation.  I am in love with innovation.  I love the challenges, I love to be able to go into our laboratories and challenge the guys to do this, this and this, and that’s the innovation part. 
3. Speed - You know, Rob, when they place an order, they don’t expect the order to come in three weeks, they expect the order to come in three hours.  So speed, speed, speed. 

• So with Masterfeeds we have size. 
• Do you realize we are the number one feed company now in Canada?
• Do you realize that we are the number three feed company in North America?
• Do you realize we are feeding 35 percent of the layers of North America? 

This is huge and this means that we can bring that technology and respond fast.  So, size, innovation and speed.  And, let’s face it, Canada is only beaten by the Canadians who live in Canada. 

FLACK

Two things come to my mind, David, and Dr. Lyons has touched on them.  The product technology will benefit, obviously, our customers, and that technology is designed to promote sustainable, safe, environmentally-friendly and, importantly, profitable meat, milk and egg production in Canada, and that’s what we do every day at Masterfeeds.  But this complementary relationship with Alltech is going to enhance that ability and give us more arrows to offer direct to the farm gate. 

But let me add on to the innovation and technology, what again, I experienced first-hand, a couple of things that just really excited me and I know excites our people, our sales, marketing and nutrition folks in the field, is that Alltech is exploring the benefits of utilizing nutrigenomics to develop advanced feeding programs that will benefit our customers.  It’s new and cutting-edge technology that will eventually come to the fore as well as the application, and this is really big right now—growing technology in Canada, antibiotic-free animal nutrition solutions. 

Those are two things that are at the doorstep of benefits and products and technologies that we are going to be able to incorporate and take to the field, and our people are literally chomping at the bit to try and get at it and take that special advantage that they will have at the farm gate and help our customers become more profitable and more sustainable. It’s right there.

It sounds great.  When a local company is purchased by a global company, sometimes customers might have concerns that their experience will change.  So, Rob do you have a message for customers and what they might be thinking about right now?

FLACK

Well, a couple of things I would say.  First of all, I will add to the term local.  Local in terms of country.  We are in five provinces.  We are going to have 25 feed plants when we’re done; we’re going to have close to 700 employees.  We have some scale.  I think it’s important to note, and I think Dr. Lyons will agree, that once we conclude here, we’re going to integrate and realign synergies and we’re going to do our best to maximize profitability and performance. It is business as usual.  So our customers will have the same sales rep, the same nutrition packages, the same service, the same transportation support.  It is business as usual. 

You know change in life for most people creates uncertainty.  And, that’s normal human response.  What I have been telling people consistently is that I also believe change can be very positive, and I always embrace it.  I like it.  It’s kind of part of my DNA, but I try to make that again infectious with everybody that this change with Alltech, albeit a change, and with what Dr. Lyons talked about this earlier, it’s not really change in a major way, it’s a change in a positive and good way, and in this case, Masterfeeds is becoming part of the Alltech family and, in fact, Alltech becoming part of the Masterfeeds family is fantastic and I can’t wait for this positive outcome to play itself out in the marketplace.

Dr. Lyons, will this acquisition have any impact on Alltech’s global operation?

LYONS

Well, first of all, the amazing thing is that when I listen to Rob and I listen to also his people, the words and the things that they are saying and the feelings that they are expressing are spot-on with what makes the Alltech culture. 

Culture is what makes a business different, and if ever there was an acquisition or merger or a coming together of cultures, which fundamentally are not very different, it is Masterfeeds and Alltech. 

The other thing to remember is that Alltech doesn’t consider itself to be a global company.  We consider ourselves to be a local company.  Yes, we operate globally in 128 countries, and we have the advantage of that, but we think very much locally.  When we work in places like Brazil, we work through the local language. When we work in Ireland, we work through their local cultures, and we don’t trying to foist upon Canadians a German culture or a French culture.  We work locally and I don’t think that the local farmers and the local customers and indeed our friends at Masterfeeds are going to see one thing change, not one thing, because they already have changed. Because they are so close to us, change isn’t necessary. 

Having said that, what impact could it have on our global business? 

I was in Latin America earlier in the week and was thinking as I was looking around, “Wow, you know there is a pig starter, there’s a pig creep that in fact I know is made by Masterfeeds that I know would work and work very well down here.”

When I saw some of the stores that some of customers that we were visiting, I said I know those stores that Masterfeeds have that would work and work very well.  We had to be a little careful of what we said and to whom we said it, but each and every place we went to, “Wow, you’re working with Masterfeeds has been announced.  We want to know more about Masterfeeds and oh, by the way, is it a possibility that we could be your Masterfeeds here in Italy, here in Mexico, here in Russia.”  It’s just an extension of all of the fun we have had throughout the years.

Alright, that is very exciting.  Do either of you have any closing comments?

FLACK

I will maybe start off and let Dr. Lyons conclude.  Obviously a lot of work has gone into putting this deal together. There has been a lot of dialogue, a lot of sharing of information, and a lot of communication and again, to reiterate what I said earlier, what has made me so enthused throughout the process has been the open, positive and collaborative work that has taken place thus far, and I know will continue to take place and the adjective that I would use is contagious.  What I’m finding with our people is more people go down to Lexington and Alltech folks come up to London to our headquarters, I’m finding there is a contagious enthusiasm that is taking place.   Again, I’ve done many deals throughout my career, but this has been the most contagious enthusiasm I have experienced of any one we have ever done.  We have 86 years, Dr. Lyons, that we have been around, and we look forward to the next 86 years.  You and I probably won’t be around to celebrate, but you never know, through nutrigenomics we may just get there.  We may just get there.

LYONS

All I can say, is this is easy.  This is just two like-minded groups coming together and those guys are so excited up there, and we’re so excited down here.  Roll on; let’s get it done.  

According to the American Diabetes Association, 90-95% of Americans diagnosed with diabetes have Type 2 Diabetes, and an adult diagnosed with diabetes dies an average of six years earlier than a counterpart without diabetes.

Type 2 Diabetes is a chronic condition that affects the way the body metabolizes glucose, resulting in insulin resistance. Insulin resistance (IR) is a syndrome that affects other mammalian species, including dogs, cats and horses. When a healthy animal eats, food is broken down, sugars are absorbed in the intestine and blood glucose levels increase. As a result, a hormone called insulin is produced by the pancreas, which tells muscle, liver and fat to increase the uptake of glucose so it can be stored for future use. When an animal or human becomes insulin resistant, this doesn’t happen. As a result, the body keeps producing insulin, hoping that it will help and glucose will be stored, but instead both blood insulin and glucose levels stay high. While exact causes are unknown, often the onset of IR is preceded by weight gain and obesity. High sugar or starch diets can cause lower insulin sensitivity even in non-obese animals. In some cases, it’s believed that high starch diets can make animals more prone to IR because they did not evolve to eat those diets such as cats who are true carnivores. In the case of horses, overfeeding can trigger weight gain and increased adiposity, which can lead to IR.

While it may not seem like a big deal at first, elevated blood insulin and glucose levels can cause long term health problems. For instance, the hyperinsulinemia (elevated blood insulin levels) in horses can induce laminitis, which causes inflammation in the hoof wall lining and lameness. In companion animals and people, unmanaged insulin resistance can cause kidney damage and loss of vision.

Treatment of IR is often through diet and health management, which sounds simple but can be a challenge to those affected. Management includes having the discipline to monitor carbohydrate consumption and exercise on a regular basis. However, human error such as underestimating intake or overestimating exercise intensity can lead to poor disease management and chronic problems.

One area that shows promise for improving insulin resistance is the inclusion of microalgae meal in the diet. Microalgae meal is a heterotrophic strain of algae containing high levels of the omega-3 fatty acid, Docosahexaenoic acid (DHA), produced by the global animal nutrition leader, Alltech Inc. In a trial conducted at the Alltech Research Farm, insulin resistant horses were fed a diet supplemented with microalgae meal and their blood insulin and glucose responses were measured. Researchers found that both insulin and blood glucose levels were reduced compared to horses that did not get microalgae. This means that microalgae, or a component of the microalgae like DHA, caused the horses’ bodies to become more insulin sensitive without changing their diet (beyond microalgae meal inclusion) or increasing exercise.

For people who struggle to manage IR in their pets, this is great news. While diet and exercise management is still essential, this research shows another way people can improve the health and well-being of their animals that have become insulin resistant and prevent the devastating conditions that can result from not properly controlling insulin and glucose levels in IR animals. To help fight IR, microalgae meal must be added to your pet’s diet on a daily basis. If this simple addition to your pet’s daily diet can help prevent IR and all of its devastating complications like blindness, lameness or kidney failure, why wouldn’t you feed it? 

Part 1: Getting Started

Starting your professional journey can be hard, especially after experiencing so much freedom and fun at university. Say goodbye to scheduling classes at your preference, weeknight parties and regular leisure time with friends. Say hello to schedules, deadlines, meetings and managers. As a recent graduate who has recently entered the workforce, I would like to share some tips to help you make a smooth transition from the classroom to the boardroom.

Work is fun! Let’s address a few misconceptions. Work is not a boring place full of unimaginative people doing routine tasks and attending endless meetings. You get to know interesting people, start investing in a new wardrobe, practice language skills, learn new ways of doing things from experts in your chosen field and SO much more!    

Preparation, preparation, preparation. Make the time to put together a complete but brief resume (one page is ideal). An experienced recruiter for top companies recently wrote that it takes him less than 20 seconds to evaluate a candidate based on his/her resume. Your work experience may be limited, so focus on highlighting your academic and relevant extracurricular achievements. For example, mentioning you were the winner of a pie-eating contest will likely not impress your future employer; however, your role as president of a campus group would highlight your leadership strengths. It is important to be thorough and consistent in your writing, including tense, fonts, spellings, etc. Proofread your resume several times. Some universities even offer mock interviews where you can practice dressing appropriately and answering questions properly, and at the same time gain feedback on how to improve before the real thing.

Find a company that excites you! A work environment that has a positive culture, shared values that foster innovation, teamwork and happy employees will get you fired up in the morning and keep you motivated. Look at company websites and social media platforms. Maybe you know people who work at that company. Ask them about their experiences. Consider reaching out to key people at that company through LinkedIn.

You may not get hired. Looking for your first job is not easy. Even with all the right preparation, a potential employer may not see you as the right fit for the company. Do not give up! Excitement, rejection, patience and stress are all part of the job hunt. A good way to handle this is to develop a professional frame of mind. Start your day early, as if you worked in an office. Watch or read the news, or check headlines on your Twitter feed. Practicing this will help you get in the habit of waking up early and staying connected to current events, which can be great talking points and references in an interview. Keep in touch with your university friends. They are probably experiencing the same challenges, and you can help each other stay motivated.

Be curious! Earning a degree is a great accomplishment, but it does not necessarily define your career. Nowadays companies in every industry are looking to hire graduates from different fields. The knowledge and hard skills from university classes, paired with soft skills gained from extracurricular and social activities, can help you become a more desirable candidate. Reach outside of your comfort zone, and apply for jobs in different industries. Taking a chance may lead to incredible opportunities!

Continue learning and reading. Just because you have a diploma does not mean you should stop learning. In fact, employers value candidates who challenge themselves. This could mean learning a new language, computer skills, social media practices or other items that will add value to your character and resume. Reading is a great educator. Whether books, blogs or articles, stay informed about the economy, the latest trends or tips from industry leaders. This information could come in handy.

Everyone has different ways of adapting to life outside of the university. We hope these tips will help you handle the transition and find that dream job to get you started on your professional path.

Stay tuned for part two – meeting your future employer!