[BUDAPEST, Hungary] – Central Europe's agriculture producers will play a major role in addressing climate and food-supply challenges around the world. The region's agri-food leaders discussed collaborative solutions and strategies for success today in Budapest, Hungary, at the first stop of the Alltech ONE World Tour (ONE), launching a series of international events that bring the ideas and inspiration of the annual Alltech ONE Conference to the world. Discussions explored collaborative solutions to the greatest challenges facing the agri-food industry as it confronts the “4 Cs” — the major forces of climate, conflict, consumer trends and rising costs.

The ONE Budapest keynote presentation from Dr. Mark Lyons, president and CEO of Alltech, welcomed delegates to Budapest and challenged them to think about what comes next for the agri-food industry. 

“In times of uncertainty, it is crucial for businesses like ours to adapt and innovate,” Lyons said. “The Alltech ONE Conference is no exception. While our annual symposium has had its roots in Kentucky, USA, for four decades, we felt it was important to adapt and engage with our customers on their home ground. Thus, it is only fitting that we launch the Alltech ONE World Tour in Budapest, Hungary, which is at the center of both change and opportunity.”

ONE Budapest attendees heard from industry experts on various topics, including insights from the dairy industry, data for profitable and sustainable agriculture, and mycotoxin management, and they were also able to attend focus track sessions on dairy, pigs and poultry. Robert Walker, European growth officer at Alltech, moderated a panel discussion featuring the species focus track speakers, who discussed how to remain profitable amid uncertainty and how the learnings from the day’s sessions can be applied to individual operations.

“By sharing data and insights, we empower advisors to solve agri-food-system challenges and drive the transfer of value, from the consumer to the processor to the farmer,” said Walker.

The final session of the day featured a discussion between Tara McCarthy, global vice president for ESG at Alltech, and Lyons on the path forward toward a sustainable future.

“As an industry, we have the responsibility to frame the role of agri-food in the context of the four Cs of climate, conflict, cost and consumer,” McCarthy said. “We will need to use our insights (from data), our skills and our scale to achieve impact, but most importantly, we will need to adapt and partner across the value chain.”

“The theme of our ONE Budapest stop — ‘Thriving Through Turbulence: Rising to the Challenges of Climate, Conflict, Consumers and Costs in Agriculture’ — perfectly encapsulates the unique hurdles we encounter in this region,” Lyons said. “With increasing geopolitical tensions and rising input costs, producers will need to make well-informed decisions to enhance their efficiency and adapt to the modern challenges faced by many in this area.”

The Alltech ONE World Tour will continue with stops in Dublin, Ireland, on June 19–20 and Calgary, Canada, on July 3–4, then on to the U.S., Asia, South America and the Middle East. For more information and to register for an Alltech ONE World Tour stop, visit one.alltech.com.

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Download photos from Alltech ONE Budapest: https://creative.alltech.com/share/928F2EF2-13C5-4658-9FE6874BE0837D80/

[LEXINGTON, Ky.] – As a global leader in animal nutrition, Alltech is proud to partner with companies that share its commitment to Working Together for a Planet of Plenty™. Today, Alltech announced it has acquired a majority interest in Agolin. Founded in 2006 in Switzerland, Agolin has developed and produced plant-based nutrition solutions that improve herd performance, profitability and sustainability, according to a 2020 meta-analysis* in the journal Animals.

Agolin’s high-quality essential oil blends are scientifically proven to optimize feed intake and performance, including improved milk and meat production*. Furthermore, Agolin^® Ruminant was the first feed additive certified by The Carbon Trust for methane reduction in ruminants (2018). Today, organizations such as Verra and Gold Standard are including it in their major international climate protection projects.

“Agolin’s essential oil blends are a complement to Alltech’s proven nutritional technologies, such as Yea-Sacc^® and Optigen^®,” said Dr. Mark Lyons, Alltech’s president and CEO. “Governments, consumer brands and retailers are making important commitments to reduce their environmental impact. These commitments rely upon farmers and ranchers, and we are dedicated to supporting them with the best available nutritional technologies to achieve more milk and meat while reducing their environmental footprint.”

The alliance between Alltech and Agolin will empower farmers and ranchers to reach their sustainability goals while also supporting the performance and profitability of the cattle in their herds and supply chains. The synergistic use of Alltech and Agolin nutritional technologies leads to benefits such as improved animal welfare, greater feed efficiency and conversion, enhanced milk and meat production, increased profitability, and a reduced environmental footprint, including a boost in nitrogen efficiency. The partners will also be exploring opportunities to develop new technologies that bring together the best of Alltech’s proven nutrition and Agolin’s essential oil blends. Agolin has a presence in Europe, Asia and North America. Alltech’s majority interest in the company will expand the availability of Agolin to additional markets.

"We at Agolin are delighted with this strategic alliance to grow synergistically through the added technical expertise and global reach of Alltech,” said Kurt Schaller, managing director of Agolin SA. “This represents a new era for our business, and we look forward to breaking new ground in our industry.”

Agolin focuses on research and development to produce and market innovative feed additives based on plant active ingredients, which are effective and easy to use. Its essential oil blends are backed by a strong quality management system (FAMI-QS), which ensures safety and guarantees traceability.

For more information, visit alltech.com/agolin and agolin.com.

Buck Island project shows that grazing improves carbon cycling

Healthy, sustainable food systems are vital to achieving the world’s development goals and ensuring global economic growth – but climate change threatens these goals. It disrupts every aspect of agriculture and makes it increasingly difficult to ensure that sustainable nutrition is accessible for the growing global population.

The focus on climate change – and the action needed to help mitigate it – has grown increasingly over the past decade. Nations around the world are taking steps to reduce greenhouse gases and limit global warming to less than 1.5 degrees Celsius, which experts say will help us avoid the worst impacts of climate change, including continued extreme weather events, rising sea levels, loss of biodiversity and  food shortages.

Global warming and its consequences remain in the spotlight this week as we celebrate the 53rd anniversary of Earth Day. This year’s theme, “Invest in Our Planet,” calls on businesses, governments and citizens to act boldly to solve the world’s environmental crises. Each year on April 22, more than 1 billion people participate in Earth Day activities, making it the largest civic observation in the world. 

Climate change is widespread, rapid and intensifying – and it is causing a strain on the world’s energy, food, metals and water. While the current pace and scale of climate action are insufficient to tackle the problem, the United Nations Intergovernmental Panel on Climate Change (IPCC) has said there are clear solutions for securing a livable future for all – and they must be implemented now.

The role of agri-food

As the world looks to implement those solutions, there is a clear opportunity for the agri-food community to lead the way. Agriculture is at the forefront of solutions to nourish and nurture our planet and its people, and consumers expect food producers to step up.

In fact, consumers put the responsibility for improving food sustainability on the food producer above anyone else, according to the 2021 Global Sustainability Insights report by Bord Bia, an Irish state agency that promotes sales of Irish food and horticulture and enables the growth and sustainability of Irish producers.

“Whilst everyone across the value chain has a role to play, food producers are clearly front and center,” said Tara McCarthy, Alltech’s global vice president of ESG. “The proactive role of industry and policymakers in this conversation is absolutely key. Consumers are asking for guidance, for support and for action.”

Implementing sustainability measures can be costly, and the pressures of compliance along the value chain – combined with the current inflationary environment – can jeopardize the economic viability of some primary food producers, farmers and processors, she said. To remain viable, they need solutions that can enhance their businesses' efficiency and enable them to maintain sustainable margins while doing their part for the environment.

The most effective way to ensure that quality nutrition is available to everyone is to improve farmers and producers’ production efficiency, long-term viability and environmental contribution, McCarthy said.

As a leader in the global agriculture industry, Alltech prioritizes the efficient production of nutritious food while working to minimize its own carbon footprint and helping producers worldwide find and implement solutions to their sustainability challenges. Its nutritional solutions help optimize the nutrients in animal feed, thereby supporting the health and efficiency of livestock while reducing the environmental impact of agriculture.

Climate change cannot be solved without agriculture, and agriculture cannot thrive without tackling climate change. We must meet the needs of the present without compromising the needs of the future, said Dr. Vaughn Holder, Alltech’s research project manager for beef nutrition.

“Agriculture has gone from having the most important job in the world to having the two most important jobs in the world: feeding the world and reversing climate change,” he said.

The world needs the nourishment of protein-rich meat, milk, eggs and seafood and crops that are grown in healthy soil. At the same time, we must work to minimize the harmful effects of agricultural practices on the environment – and on animals and humans. This can be accomplished by improving the health of animals and the soil, maximizing the value of feedstuffs, increasing the efficiency of the farm and reinvesting in innovation.

Reducing GHG emissions in agriculture

Agriculture is one major source of GHG emissions, but it’s also a major source of carbon sequestration – the process of capturing and storing carbon dioxide from the atmosphere. Unlike any other sector, agriculture has the ability to not only reduce our own GHG emissions but capture and sequester emissions released by other industries.

Through the implementation of leading-edge nutrition and pasture management practices, agriculture is in a unique position to provide the food resources that the world population needs while restoring the planet. If we focus on feed and growth efficiency strategies and carbon sequestration management strategies on grazed lands, agriculture could reduce greenhouse gases by over 50%, according to Dr. Holder.

Improving the performance and productivity of livestock means it takes fewer animals to produce the same amount of food, which reduces the overall environmental footprint of livestock, including GHG emissions.

Grazing animals on land actually benefits the environment and improves carbon cycling, an exciting research project at a beef ranch in Florida has shown. Through an alliance with Archbold Expeditions at Buck Island Ranch, Alltech is measuring the carbon emissions of beef production and evaluating the effects of pasture management, grazing strategies, mineral supplementation and other nutritional strategies. The results have confirmed that carbon-neutral – and even net-positive – beef production is possible at Buck Island, and that same potential likely extends to environments around the world.

Take a tour of Buck Island Ranch.

The Buck Island project has also helped researchers gain a better understanding of the full carbon cycle on a beef ranch, one that is not solely focused on greenhouse gas (GHG) emissions from the animal, but also natural GHG emissions from the land, the photosynthesis of GHGs and the sequestration of carbon in the soil.

“What Buck Island shows us is that with animals on the land, we capture more carbon than without them,” said Dr. Mark Lyons, Alltech president and CEO. “That is profoundly powerful.”

Animal emissions are not the full story

Discussions around GHGs and global warming often center around agriculture emissions, but we need to think beyond emissions and look at the full cycle, Dr. Holder said.

Ice core data shows that methane and carbon dioxide have risen rapidly to unprecedented levels in the last 70 years. While methane is often the most talked about, carbon dioxide contributes more to global warming. Carbon dioxide is a stock gas with no natural removal cycle and a long lifespan. Stock gases accumulate over time because they stay in the environment. The U.S. Environmental Protection Agency estimates that 65% of global GHG emissions are carbon dioxide from fossil fuel use and industrial processes.

In contrast, methane is a flow gas that has a natural removal cycle through chemical reactions that occur in the atmosphere – and it can be absorbed by soil and vegetation.

As the Buck Island project has shown, agriculture systems have the potential to be net positive in terms of greenhouse gas emissions and carbon cycles, not just neutral, Dr. Holder said. At Buck Island, having cattle grazing the land has resulted in less GHG flux from the land. More emissions were produced, but the amount sequestered offset the difference.

Focusing only on emissions misses the bigger picture, however. The soil’s ability to sequester carbon is a critical part of the story. Alltech Crop Science and one of the newest members of the Alltech family, Ideagro, have a wealth of information and technologies for nourishing the soil through its microbial population. Alltech’s teams continue to investigate how these microbes boost soil chemistry and nutrient density, helping to sequester more carbon in the soil.

Researchers at Buck Island are also working with Alltech E-CO₂ and others to develop precision tools to measure methane yields and intensity. The next step is the inclusion of advanced sequestering measurements that will evaluate how grazing, pasture management, nutrition and other strategies affect the carbon cycle and make it possible for beef operations to sequester carbon.

The potential to capture carbon in the soil presents an amazing opportunity for the agri-food community to embrace our critical role in solving climate change, but also to improve soil health, increase crop productivity and promote biodiversity.

“We have to continue to think beyond emissions and beyond methane,” Dr. Holder said.

Alltech is pleased to announce new leadership roles within the Alltech feed division. Scot Harold will assume commercial leadership as executive vice president, Feed & Premix, and Brian Gier joins the company as vice president of sales for Hubbard Feeds.

"As we position the business for future growth, we continue to evolve and work together across all parts of our business to best serve our customers,” said Mike Castle, chief operating officer at Alltech. “Scot and Brian will bring leadership and experience that will enable us to capitalize on opportunities within our feed business to continue to develop species alignment and leverage the strengths of our team.”

Harold joined Alltech in 2020 as the director of sales for Ridley Feed Ingredients, part of the Alltech feed division. He will work with the leadership team to develop and implement strategy for growth of the feed business while strengthening alignment across the feed, premix and specialty ingredients teams. Prior to joining Alltech, Harold served as Cargill Animal Nutrition’s national sales leader for both the Dealer & Multi-Store Ag Retailer segments.

Alltech welcomes Gier to the team from Purina Mills, where he served as vice president of sales. He was responsible for overseeing the company’s commercial livestock strategy, as well as the lifestyle portfolio, and was instrumental in the success of the coop segment, including several joint ventures. Gier’s wealth of experience in the feed industry will contribute to enhanced customer success. 

For more information about Alltech, visit alltech.com.

Dates and locations have been announced for the spring European leg of the Alltech ONE World Tour, a series of exciting international events that bring the ideas and inspiration of Alltech’s annual ONE Conference to the world. The first stops are in Budapest, Hungary, on May 22-23 and Dublin, Ireland, on June 19-20.

The Alltech ONE Conference has been held in Lexington, Kentucky, home of Alltech’s global headquarters, for the past 38 years. In 2023, the global leader in agriculture is bringing the conference to its partners, customers, suppliers and friends across the globe, providing the opportunity for more people than ever to experience the power of ONE.

The Alltech ONE World Tour will explore collaborative solutions to the greatest challenges facing the agri-food industry, uniting changemakers and thought leaders to examine regional and local market trends in agriculture, business, health and nutrition.

“As our customers and partners continue to face many challenges and uncertainties, we determined that 2023 would be dedicated to meeting them in their market,” said Dr. Mark Lyons, president and CEO. “This special edition of the ONE will endeavor to deliver global expertise to locally relevant issues. In the midst of economic and political uncertainties that fuel regionalization, this ONE reflects the responsibility we have as a global company to be a connector of people and ideas, ever advancing our purpose of Working Together for a Planet of Plenty.”

The Alltech ONE World Tour will continue with stops in Canada, the U.S., Asia, South America and the Middle East.

For more information and to register for an Alltech ONE World Tour stop, visit one.alltech.com.

The three-pronged approach to beef sustainability — environmental, economic and social — often focuses most on the pillar of environmental stewardship. In the beef industry, much attention is given to the environmental impacts associated with beef production practices. However, highlighting the benefits that beef production can impart to the ecosystem can help the industry develop a more complete picture of beef’s environmental footprint.

Many companies have set environmental sustainability goals that project a targeted reduction in their carbon emissions. In order to reach these goals, the practice of purchasing carbon credits from suppliers to help offset emissions through a carbon marketplace is becoming more common and popular.

What are carbon credits?

Carbon credits are permits that each represent 1 metric ton of carbon dioxide (CO2) or the equivalent amount (CO2-eq) of a different greenhouse gas (GHG) that is removed from the atmosphere.

The term “carbon offset” is commonly interchanged with the phrase “carbon credit,” but they vary slightly in meaning. Carbon offsetting is the purchase of carbon credits to compensate for emissions that have been created by a business or lifestyle. A carbon offset is a reduction in GHG emissions that compensates for emissions occurring elsewhere in the supply chain.

Each GHG has a different global warming potential (GWP), which allows for comparisons to be made between the global warming impacts of various gases relative to CO2. The GWP measures how much energy the emissions of 1 ton of a GHG will absorb over a given time frame (i.e., 100 years) in relation to 1 ton of CO2 (EPA, 2022).

According to the Intergovernmental Panel on Climate Change (IPCC; 2021):

• Methane (CH4) has a GWP of 27–30 times higher than CO2 over a 100-year timescale
• Nitrous oxide (N2O) has a GWP 273 times higher than CO2 over a 100-year timescale

The average American generates 16 metric tons of CO2-eq annually, which is enough to fill more than three and a half Olympic-sized swimming pools (Tso, 2020). These emissions come from driving cars, utilizing electricity and gas in homes, food systems and other day-to-day activities.

What are carbon markets?

Carbon markets are economic trading systems that support the buying and selling of carbon credits. Carbon markets provide monetary incentives for credit producers to adopt approved carbon-reducing practices, while credit purchasers utilize the offsets to reach their carbon emission goals.

Carbon markets can be split into two categories: compliance and voluntary.

Compliance markets 

Carbon markets are created as the result of regulatory requirements or national, regional or international policies.

Cap-and-trade systems are traditional examples of mandatory programs in which regulated businesses are issued GHG emission allowances or permits that add up to a total maximum, or a capped amount. Companies that exceed their permitted emissions allowance must buy permits from others with available permits for sale, or they will face penalties (UNDP, 2022). Carbon offsets may be used as a compliance option for some regulated entities (Stubbs et al., 2021).

In the U.S., California is the only state with a cap-and-trade market, which was established in 2013 and which targets the state’s electric power plants, industrial plants and fuel distributors. The state has a goal of lowering its emissions below the levels seen in 1990 by 2030. Entities that are required to comply with California’s program can use offsets to satisfy 4% of their obligation, which includes agricultural offsets from livestock manure management projects, rice cultivation projects and forest management projects (Stubbs et al., 2021).

The European Union launched the first international cap-and-trade or emissions trading system (ETS) in 2005, and in 2021, China launched the world’s largest ETS, leading the way for the development of other national and subnational ETS (UNDP, 2022).

Voluntary markets

Currently, most carbon market programs are voluntary markets, which includes the buying and selling of carbon credits on a voluntary basis outside of a regulatory framework (e.g., corporate sustainability reporting).

Transactions involving credits can occur directly between participants and buyers or can be mediated by other parties or programs. Sellers of carbon credits are typically farmers and ranchers, and they are paid for generating carbon credits by adopting management practices that meet specific criteria for carbon emissions reduction or sequestration (e.g., no-till, cover crops, crop rotation, anaerobic digesters, grazing management, manure management, reforestation, etc.). Sellers are usually paid on a per-acre or per-ton basis of carbon sequestered (Shockley and Snell, 2021). The monetary compensation for carbon credits varies widely based on the practice and program, averaging between $10–20 per credit (Stubbs et al., 2021).

There are a handful of voluntary carbon markets in operation, including programs established by Bayer, Ecosystem Services Market Consortium, Nori, Verra, Gold Standard and several others. Since voluntary markets remain unchecked by regulators and do not have caps on how many tons of emissions can be offset, there are several organizations that set standards and that validate carbon credits based on those standards. Verra, for example, has set a widely used carbon-credit validation standard — called Verified Carbon Standard — that is based on accounting methodologies specific to the project type, independent auditing and a registry system (Thompson and Miranda, 2021). Other programs, such as Nori, follow a similar process using practices that qualify under their methodology and a third-party verifier. The eligibility for voluntary programs, approved practices, verification processes and compensation of these voluntary markets differ widely.

The voluntary carbon market options for agriculture continue to emerge and evolve, and pilot projects and reduction practices continue to be assessed. There is much to learn about carbon sequestration, monetizing production practices based on GHG emissions reductions and accurately measuring carbon emissions from different industry sectors. As many programs currently focus on crop and forest production practices, there is room for beef production practices to enter the market.

The beef industry is constantly evolving, with new technologies and practices emerging to help producers improve their efficiency and profitability. Mike De Groot, a founding partner and director of TD Beef, joins the Ag Future podcast to discuss the growing trend of dairy composites and how TD Beef is bridging the gap between the dairy and beef industries through its beef-on-dairy supply chain, which tracks cattle and data from conception to consumption.

The following is an edited transcript of the Ag Future podcast episode with Mike De Groot hosted by Tom Martin. Click below to hear the full audio or listen to the episode on Apple Podcasts, Spotify or Google Podcasts.

Tom:            Welcome to Ag Future, presented by Alltech. Join us from the 2022 Alltech ONE Conference as we explore our opportunities within agri-food, business and beyond.

                     I'm Tom Martin with the Alltech Ag Future podcast series, and with us is Mike De Groot, founding partner and director of TD Beef, an ESG-friendly cattle procurement company positioned to bridge the gap between the dairy and beef industries. TD operates a beef-on-dairy supply chain that tracks cattle and data from conception to consumption. De Groot and his partners, Jake and Jason Tuls, raise cattle on the Tuls family’s ranches in Eastern New Mexico and West Texas. Thanks for joining us, Mike.

Mike:            Thanks for having me.

Tom:            Mike, you have a very collaborative philosophy about working to make sure that everybody in the supply chain profits. Tell us about that supply chain. Who is in it?

Mike:            Thanks, Tom. In its most basic form, what TD Beef is trying to do is make better beef faster. Everything starts with the selection of the genetics, and then, at conception — but that doesn't necessarily mean that they just move down the supply chain and become great beef at the end. There are a lot of partners, and every one of those partners has a responsibility for the genetic expression of the semen that we're using. For example, it starts at conception with the dairymen. That calf, when it's born, will move through a calf ranch, which is where my partners are and (where) all of the TD cattle are housed. From there, they go to a feedlot (and) from the feedlot to the packer and then, eventually, to your plate.

Tom:            In your promotional materials, you tell us that your company creates black cattle that offer green solutions. Tell us what that means.

Mike:            Yeah. That's fun, and that's a developing space right now. I'm not a scientist, and that's going to be very clear, but I love systems. I'm a dairy kid, and so, systems are what make us (in the dairy industry) function at high levels of efficiency. What I know is (that) the carbon created follows the mother and the milk. Therefore, the calf that comes out, the black calf that comes out, is carbon-neutral. In some cases, a story can be told that it might be carbon-negative if it's produced off of dairies that are capturing methane in the form of methane digesters.

                     We know, from that level — we’re obviously reducing our carbon footprint, and there are some offsets there that people can be participating in. However, something more specific is how quickly our cattle convert and perform because of the genetics that we're using. For example, our cattle get to 350 pounds 18 days earlier than their generic counterparts. Now, a Holstein steer could not even get to 300 pounds in the same time that our TD beef are getting to 350. So, you can imagine — what we're looking at there, from a data standpoint, is how many days on feed less are we (achieving) by feeding TD beef as compared to feeding Holstein steers.

Tom:            Mike, I watched a promotional video that featured a client talking about the hardiness of TD black bulls. What distinguishes TD bulls?

Mike:            When beef-on-dairy originally started, the only criteria was that they needed to have a black hide. That was the only selection criteria. Now, a black hide is not necessarily conducive to performance or value down the supply chain. And because we have the ability to select genetics with specific traits that favor everyone throughout the supply chain, it's easy for us to create cattle that are uniform. To that gentleman's point (in the promotional video), all of our bulls meet certain requirements that favor a feedlot and a packer. Therefore, when the babies are produced and they're on the ground, they're noticeably different than their generic counterparts.

Tom:            Dairy composites are a growing market in the beef industry. What are dairy composites, and how did this concept get its start? How did it find its way into the beef world?

Mike:            In 2015, sorted semen made its way to the market in a major way, and dairymen adopted that technology. What it allowed them to do was create as many heifers as they needed from the animals that they desire to create them from. So, there was this strategic approach in their breeding program: create heifers from the superior animals that could help you, and then you're still left with other animals that needed to get pregnant. But it made no sense to use conventional semen because, if it were female, then, of course, it would go into the lactating herd. If it were male, then a Holstein steer is not as ideal as a beef steer. In fact, there's almost a $130–150 difference between the two. So, a dairyman, he doesn't need a calculator to understand (that he can) just switch the type of semen and you're going to make more money.

Tom:            So, was this the advent of beef-on-dairy?

Mike:            Certainly so. It was just very simple at this point. There wasn't a lot of strategy because the main driver of revenue for a dairy is always going to be milk, but a lot of people weren't necessarily focusing on anything other than just the black hide.

Tom:            Did that break down a barrier that had been in existence for as long as we can remember between beef and dairy?

Mike:            Yes, it was an incredible paradigm shift in the market.

Tom:            How does beef-on-dairy production affect the beef supply chain?

Mike:            That's such a great question. I'm really, actually, glad you asked that. It does not affect the beef supply chain. The reason for that is we're not creating any more beef animals than we were before; they're just a different color on the hide. For example, Holstein steers have always made their way into the feedlots and through the packer. They were great animals because they were predictable, but they were inferior to their native counterparts. However, the dairyman now can create the same animal but (can make it) more marketable and more ESG-friendly if they choose, for example, TD beef.

Tom:            These last few years have been unstable, even volatile. The markets have been — and there's plenty of uncertainty about what's going to happen in the future. If you're in the dairy business, does it make sense to have a Plan B, like breeding a portion of your herd to beef sires, as a way to create that second revenue stream?

Mike:            Well, multiple streams of revenue is always a good idea.

Tom:            It's always a good thing.

Mike:            I think dairymen are strategically positioned with the most sustainable unit on the planet today, and I'll flush that out for you. A cow can produce 25,000 pounds of milk, a 600-pound carcass, and now we're capturing their methane for renewable gases that can fly jets across the pond. These are just from cows that people started out just to produce milk (with).

Tom:            That's working sustainability, isn't it?

Mike:            Absolutely.

Tom:            What beef bull breeds are most in demand for breeding to a dairy animal, and what makes those breeds most desirable?

Mike:            Well, it's still a relatively new space, so I would say it's undetermined. But the data would start to suggest that the Angus/Holstein cross is the most ideal cross. But we use Limousin, SimAngus and Charolais as well. All of those do have different values, but right now, we're still trying to collect all of the data to be able to articulate that accurately and to figure out which is the best.

Tom:            What considerations — such as a genetic plant, for example — should be developed before we launch into a beef-on-dairy line?

Mike:            Inventory. You need to know how many animals you need. Again, going back to the main driver, it's milk production. A dairyman really needs to keep his eye on the ball, but that does not mean that there's not a tremendous opportunity for him in the beef space. The priority is to identify which heifers and how many you want to create, and then, the excess animals that will not be bred to sorted semen can be bred to TD beef or any desired beef breed.

Tom:            Are feedlots and packers expecting more data on genetics?

Mike:            They are, and that's exactly the problem that TD Beef solved. In 2015, because the criterion was only a black hide, all of these animals made their way through the supply chain and into the packer. I talked to a lot of feedlots and packers that said, "We would prefer the Holsteins rather than what you're sending us." I said, "Wait. We're solving this problem." They said, "Well, what are you doing?" I said, "We're going to start demanding that they use certain semen with a genetic profile that suits you. We're going to reward the dairymen by paying them a premium for that product. If you give us enough time, we will start to deliver and demonstrate that we could change what you've had."

                     Now, it wasn't entirely easy to walk that back — that sour taste in their mouths. But we are at a point now where feedlots and packers who originally were not interested in these cattle are incredibly interested. But there are some market dynamics that we have to consider as well. So, the fundamental right now is that there's a deteriorating native cattle supply, drought, feed costs (and) access to feed, but the dairymen create these types of animals every single day, and they offer us the ability to age, source and capture any other data that we want. So, it's very attractive to feedlots and packers now, but it wasn't originally.

Tom:            That's really interesting. Some in the industry are calling for more transparency and more consistency, which would flow with what you were just talking about. Do you agree with the need? If so, what solutions does TD Beef bring to that problem?

Mike:            Transparency is the only way to go, and that's how we're going to do this. (At) TD Beef, all of our cards are on the table face up. We've postured ourselves to lead with transparency in an effort to collaborate with everyone in the supply chain. Now, that doesn't necessarily mean that others have participated to that degree, but we're certainly making that effort. The shift is happening. We recognize that we're better together. A rising tide lifts all ships, and that's what's happening here in this space.

                     People want a story about their beef. That's why I came up with “from conception to consumption”. (The period) between those two points is 500 days. In this supply chain, we have no issue telling you where the animal came from, how it was raised, what it was fed, its performance in the feedlots. Maybe we'll get to a point where there's a QR code on there, (and) when you're eating your steak, you’ll simply swipe that and you'll see the story about TD Beef.

Tom:            That would be interesting. I'm just curious (about) what kind of smart technology that's come into play in your work and what you're doing (with it).

Mike:            Well, it's that technology that helps all of us do a better job. Specifically, we're starting to work with a company out of the U.K. called Breedr. The CEO and founder there is a gentleman by the name of Ian Wheal. What he does is he allows us to understand what is happening to the cattle with data collection, and then, (Breedr) extrapolates all of that data and then articulates it to everyone within the supply chain.

                     What I mean by that is everybody is always concerned with performance, first of all, because if you don't have good performance on the front end, we already know you're not going to have good performance on the back end. But we can demonstrate (that) certain groups of cattle are more likely to hit prime (and) then separate those cattle and sell those specifically to people who will reward us for doing it. Prime is a grade, of course — a specific grade. It's really limitless. But prior to this, we didn't really collect that type of data or share it. We're very excited about what the upper limits of that look like now, (and we’re becoming) very agile in our ability to progressively improve the supply chain because of that smart technology.

Tom:            Well, Mike, based on your experience, and in your view, what are the biggest opportunities in this dairy composites market?

Mike:            Having experienced my first Alltech ONE Conference, what I recognized when Dr. (Mark) Lyons was speaking today and then the lady right after him was (that) all of the science suggests that we could aim at (achieving greater) profits and protect the planet at the same time. You need the science, but you (also) need a system. They're equally powerful but uniquely different — and apart from one another, their purpose is limited. But when you're in this space and you can adopt the science in a system like TD Beef, it gives everyone an opportunity not just to create a more marketable product, but it allows you to care for the environment in the same way. I go back to how quickly these cattle are converting and gaining weight simply because we are starting by choosing the right semen and then allowing full genetic expression on our ranches by maintaining a good environment with a great nutritional program.

Tom:            It's science, isn't it?

Mike:            It is science.

Tom:            Mike De Groot, founding partner and director of TD Beef. Thank you, Mike.

Mike:            Thank you so much.

Tom:            For the Alltech Ag Future podcast series, I'm Tom Martin. Thank you for joining us. Be sure to subscribe to Ag Future wherever you listen to podcasts.

Alltech released its 2023 Alltech Agri-Food Outlook today, highlighting global feed production survey data. Despite significant macroeconomic challenges that affected the entire supply chain, global feed production remained steady in 2022 at 1.266 billion metric tons (BMT) in 2022, a decrease of less than one-half of one percent (0.42%) from 2021’s estimates. The annual survey, now in its 12^th year, includes data from 142 countries and more than 28,000 feed mills.

Europe bore the brunt of the impact, including significant disease challenges, severe weather and the impacts of the invasion of Ukraine. The global COVID-19 pandemic has had major impacts on the agri-food sector, contributing to supply chain challenges and accelerating the adoption of new technology and environmental sustainability practices.

The top 10 feed-producing countries over the past year were China (260.739 million metric tons [MMT]), the U.S. (240.403 MMT), Brazil (81.948 MMT), India (43.360 MMT), Mexico (40.138 MMT), Russia (34.147 MMT), Spain (31.234 MMT), Vietnam (26.720 MMT), Argentina (25.736 MMT) and Germany (24.396 MMT). Together, the top 10 countries produced 64% of the world’s feed production, and half of the world’s global feed consumption is concentrated in four countries: China, the U.S., Brazil and India. Vietnam experienced a great recovery in terms of its feed tonnage in 2022, entering the top 10 ahead of Argentina and Germany and crowding out Turkey, which reported reduced feed tonnage. Russia overtook Spain, where there was a significant reduction in feed production.

Key observations from the survey:

• Feed production increased in several regions, including Latin America (1.6%), North America (0.88%) and Oceania (0.32%), while Europe decreased by 4.67%, Africa by 3.86% and the Asia-Pacific region also dropped 0.51%.
   
• Globally, increases in feed tonnage were reported in the aquaculture, broiler, layer and pet food sectors, while decreases were reported in the beef, dairy and pig sectors.
   
• Although it experienced a narrow reduction in feed production, China remains the largest feed-producing country in the world, followed by the United States and Brazil.

Notable species results:

• The poultry sector experienced increases in both layer and broiler feed production.
  • Avian influenza, other diseases and the high costs of raw materials affected the layer sector in many markets, especially in Asia, Europe and Africa. On the other hand, growth in the sector was boosted due to bigger challenges in other sectors that led to increased demand for eggs. Overall, layer-sector feed production increased by 0.31%.
     
• • While the overall tonnage in the broiler sector increased by 1.27%, there were significant differences from country to country. Overall, feed production growth in the broiler sector was reported mainly from the Middle East, North America and Latin America.
     
• Pig feed production was down globally in 2022 by almost 3%. ASF and high feed prices depressed pig production in many countries. However, in Vietnam, China, South Africa, Brazil and Mexico, better pork prices and other market conditions led to growth in the sector.
   
• Dairy feed tonnage decreased by 1.32%, mainly due to the high cost of feed combined with low milk prices, which caused farmers to reduce their numbers of cows and/or rely more on non-commercial feed sources. Some exceptions included Ireland, where drought caused farmers to rely more on commercial feeds, and New Zealand, where milk prices were higher.
   
• Beef feed production decreased slightly by 0.34% globally. The downward trend continued in Europe, but increases were seen in almost all other regions. In Australia, the reduction in feed tonnage was a result of plentiful grass and not a reflection of any changes in the demand for beef.
   
• The aquaculture sector experienced a total global feed production growth of 2.7%. The Top 5 aquaculture feed countries are China, Vietnam, India, Norway and Indonesia. Significant increases were reported in China, Brazil, Ecuador, the Philippines and the U.S. Aquaculture feed production was one of a few sectors that saw growth in Europe.
   
• Pet feed production had the highest increase among the sectors, with a global average 7.25% rise in production. This significant increase is largely due to the rise in pet ownership amid the COVID-19 pandemic. North America and Europe continue to be the top pet feed-producing regions.

Notable regional results:

• North America reported an increase of 0.88% (2.272 MMT) and the U.S. remained the second-largest feed-producing country globally, behind China. Growth was reported in the broiler, beef and pet food sectors.
   
• Latin America experienced growth of 1.6% (3.006 MMT), and Brazil remained the leader in feed production for the region and ranked third overall globally. Most of the growth was reported by Mexico, Brazil and Chile.
   
• Europe saw the largest decrease in feed production of 4.67% (-12.882 MMT) in its feed production due to issues that include the invasion in Ukraine and the spread of animal diseases, such as African swine fever (ASF) and avian Influenza (AI).
   
• Asia-Pacific remained flat as decreases reported in China, Pakistan, Thailand and Malaysia were offset by increases in Vietnam, the Philippines, Mongolia and South Korea. The region is home to several of the top 10 feed-producing countries, including China, India and Vietnam.
   
• Africa experienced a decrease of 3.86% in feed tonnage (-1.718 MMT), mainly because of reductions reported in Egypt, Morocco, Kenya and Nigeria. South Africa, on the other hand, saw an increase of more than 2%, and Namibia also reported higher feed tonnage in 2022
   
• The Middle East region is up significantly at 24.7% (6.301 MMT), as a result of more accurate reporting and efforts by the Saudi Arabian government to increase broiler production as part of its Vision 2030 plan.
   
• Oceania was flat, with a small reduction reported by Australia that was offset by a slight increase reported by New Zealand.

Alltech works together with feed mills and industry and government entities around the world to compile data and insights to provide an assessment of feed production each year. Compound feed production and prices were collected by Alltech’s global sales team and in partnership with local feed associations in the last quarter of 2022. These figures are estimates and are intended to serve as an information resource for industry stakeholders.

To access more data and insights from the 2023 Alltech Agri-Food Outlook, including an interactive global map, visit alltech.com/agri-food-outlook.

To accelerate innovation and keep Alltech at the leading edge of smarter, more sustainable solutions for agriculture, the company has formed a new Innovation Department, appointing Dr. Kyle McKinney as vice president of innovation and Dr. Rebecca Delles as innovation & analytics manager.  The team will be responsible for horizon scanning to meet the needs of tomorrow’s customers, rigorously challenging ideas before investment and bringing new technologies to market.

“Our new Innovation Department will serve as an important hub of connection, collaborating with our global sales team and customers to identify opportunities, piloting new innovations with our operations and sales teams and successfully launching new innovations into the market with the support of teams throughout our organization,” said Dr. Mark Lyons, president and CEO of Alltech. “This is an exciting development in our effort to exploit more of Alltech’s capabilities and ultimately deliver on our ambitions for Working Together for a Planet of Plenty™.”

Since 2018, Dr. McKinney has served as the Global Director of Alltech’s Enzyme Management platform. Prior to that role, he spent three years in Costa Rica focused on leveraging Alltech Crop Science technologies to control disease and reduce chemical applications. While there, he helped establish a fermentation lab to evaluate microbial solutions for disease control. He also worked in Alltech’s applications research program for more than a decade, playing an instrumental role in the design of Alltech True Check™, an in vitro digestion system that evaluates diets and the impacts of feed technology in monogastric animals. Dr. McKinney received his bachelor’s degree in agricultural biotechnology from the University of Kentucky, his master’s degree in brewing and distilling fermentation technology from Heriot-Watt University and his Ph.D. in agricultural biotechnology from Harper Adams University.

Dr. Delles has supported Alltech as a research scientist since 2013. Her focus has been on the impact of nutritional strategies on the oxidative stability of fresh meat products and the role of nutrition on inflammaging (the impact of inflammation on the aging process) in companion animals. She received her bachelor’s degree in medical technology at the State University of New York at Fredonia and her master’s, Ph.D. and MBA from the University of Kentucky.

For more information, visit alltech.com.

Alltech is proud to continue to partner in the Women in Food & Agriculture (WFA) Mentorship Program. Applications are now open for new mentors of any gender and for female mentees from across the global food and agriculture sector. Now in its third year, the free-to-join program matches applicants based on their preferences, which can include gender of mentor, areas of expertise, language and industry sector, and offers opportunities for women in food and agriculture to develop meaningful industry connections.

“Over the past few years, all of us have come to more deeply value the power of human connection,” said Dr. Mark Lyons, president and CEO of Alltech. “A commitment to the growth and development of another person unleashes energy, inspires ideas and empowers both individuals to have a greater impact. We view our involvement in the Women in Food & Agriculture mentorship program as an investment not only in the lives of women but in the future of agriculture as the industry most integral to the nourishment and vitality of our planet.”

Findings from the annual WFA survey and ongoing feedback from all levels of the food and agriculture sector consistently suggest that a hurdle to greater success for women in the global agri-food industry is a lack of mentorship opportunities. To tackle this issue, WFA launched its Mentorship Program. In partnership with Alltech in 2022, the initiative grew with 320 industry representatives matched across two cohorts. Now in 2023, the program will be open for applicants year-round with two matching sessions taking place to help even more women in food and agriculture progress their careers. The initiative has supported a variety of people around the world from CEOs of agribusinesses to small-scale farmers, from academics to ag-tech professionals, with sector representatives paired with mentors that complement their professional objectives.

“We are very pleased to again have Alltech supporting the 2023 WFA Mentorship Program,” said Elisabeth Mork-Eidem, global chair of WFA. “Mentorship is vital in supporting women across food and agriculture in developing their careers, we’ve had very positive feedback from both mentors and mentees. Many of our mentors joined the initiative as a selfless act of support for equality in our sector, but realized they got as much out of the experience as the mentees. This is such an exciting opportunity to learn about yourself, develop your skills and support an important initiative that is working to improve diversity, equality and inclusion in the food and agriculture industry.”

For those interested in taking part in the 2023 Mentorship Program, WFA is looking for mentors of any gender who have at least one year of experience in the food and ag sector. During matching, WFA will ensure all mentors have more work experience than mentees, so this should not be a barrier to mentors applying. Potential mentees should be women working in the food and ag industry who would benefit from help, guidance and support from a senior sector representative.

Alltech believes that inclusion cultivates creativity, drives innovation and is essential to the company’s purpose of Working Together for a Planet of Plenty^TM. In 2019, Alltech selected Gender Equality as one of the nine United Nations Sustainable Development Goals to which the company committed to advancing.

Applications are open now for the Women in Food & Agriculture (WFA) Mentorship Program, supported by Alltech. For more information and to apply to be a mentor or mentee, visit https://wfa-initiative.com/mentorship-program/.