Conquering Asia

As always you can find us on VIV Asia this year. VIV Asia is one of the most important exhibitions for industries related to animal production in the region. But that's not the only thing we are doing to improve our position in Asia. In line with Perstorp's strategy to become a more balanced global player, we will strategically invest in our organization in Asia in the coming years. Focus will be on an extended geographical expansion in combination with an increased local presence selling high quality feed additives that improve animal health and bottom line performance. The areas where we will focus our expansion in Asia are discussed in this article. Which countries will we focus on first? And which products do we think will succeed in Asia?

The rise of a continent
The growth in GDP and consequently the growth of disposable income per head have risen quickly over the last decade in most countries of the Asian continent. One of the results of the rise in disposable income is an increase in the consumption of animal protein and as a consequence Asia tops the list of continents with the highest feed production since 2011. The rapid development in the Asian compound feed production is also seen in the list of companies with the largest feed production, on which six out of the ten biggest companies originates from Asia.

The sleeping giant awakes
Napoleon Bonaparte once called China 'The sleeping giant'. He could not have been more right. Currently the sleeping giant has awoken: China is now home to half of the global pig population and has the largest broiler production in the world. The compound feed production has increased from 40 million tons in the beginning of the 21st century to 170 million tons in 2012. Not only do Chinese consumers eat more animal protein but their awareness of food quality and safety is increasing too. This makes China an interesting market for high quality feed additives. We will introduce our feed additives in the Chinese market later this year.

India catches up
The other highly populated country in Asia - India - has tripled its broiler meat output over the last 12 years. It now produces 3200 million tons. In India we will put special focus on gut health improvement, which is associated with an improved nutrient utilization in the gut and lower cost of production.

Home away from home
The development in South East Asia is in line with the rest of Asia whereby the most important feed producing countries are Vietnam, Thailand, Indonesia and Philippines. In this area we are already well established with our range of preservatives. The coming years we will focus more on ProPhorce™ PH and ProPhorce™ SR solutions for these markets.

Innovations against moulds and mycotoxins
AT VIV Asia we will personally introduce our latest innovative preservative: ProSid™ MI 700, a less corrosive product with a prolonged preservation effect. We will also launch our newest toxin binder ProSid™ TB 207 in the Asian market. This product not only has a high affinity to bind mycotoxins, it also contains organic ingredients especially selected to detoxify mycotoxins in the liver of farm animals.

Innovations for health and performance
At VIV Asia and as a general direction in Asia for the coming years we will put more focus on the ProPhorce™ PH and ProPhorce™ SR ranges with an increased attention on new products that enhance poultry performance as a result of a better nutrient utilization as a consequence of an improved gut health. Heat stress is an important factor in Asian regions with higher daytime temperatures and therefore we will also put proper emphasis on acidifiers that play a significant role in reducing heat stress.

All in all it is clear that Perstorp is very ambitious to grow its presence in Asia. We will do so by investing in the right partners and people and - as always - by making the difference in animal health and performance for our customers.

Marc Kinjet
Marc Kinjet
Portfolio Director Preservation
+31 416 317 728

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