Jonathan Forrest Wilson, President of Greater China for Alltech
China's pet food industry has entered a complex period, and the nutritional functions of the food are garnering more attention.
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Alltech Global Headquarters in Nicholasville, Kentucky
Summary:
In 2019, Alltech released its eighth annual Alltech Global Feed Survey, which is highly anticipated by the global feed industry and is referenced or cited in more than 80 articles each year. This year's report included data from nearly 30,000 feed factories in 144 countries. According to the report, over the last year, the pet food sector grew by about 1 percent, thanks mainly to growth in the Asia-Pacific region. In China, pet food industry is soaring. How can Alltech, influence the Chinese pet food industry?
To learn more about Alltech, Chongyejia interviewed Mr. Jonathan Forrest Wilson, president of Alltech’s operations in greater China, to learn more about how the company is working with Chinese pet food manufacturers.
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Jonathan Wilson, president of Greater China for Alltech, with shixiong, co-founder of Chongyejia.
1
Who is Alltech?
Founded in 1980 by Irish entrepreneur and scientist Dr. Pearse Lyons, Alltech, a family-owned company headquartered in Kentucky, discovers and delivers solutions for the sustainable nutrition of plants, animals and people. With more than 5,000 employees and over 100 production facilities worldwide, Alltech has a presence in more than 120 countries and regions around the world.
With expertise in yeast fermentation, solid state fermentation and the science of nutrigenomics, Alltech is a leading producer and processor of yeast additives, organic trace minerals, feed ingredients, premix and feed. Alltech also features platforms dedicated to studying and bolstering mycotoxin management, gut health and organic minerals. Also included the scope of its services are Alltech® In Vitro Fermentation Model (IFM), a quantitative analysis of feed, Alltech 37+® mycotoxin analysis and carbon emission analysis.
As Jonathan reported to Chongyejia, Alltech currently has four bioscience research centers and nearly 100 research and development (R&D) personnel around the world. Alltech has also established research alliances with more than 20 world-renowned universities and research institutions.
2
ACE principle
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Alltech is a value-based company, and its guiding ACE principle seeks to develop solutions that are safe for the Animal, Consumer and the Environment. Alltech pioneered the ACE principle to ensure that its products improve animal performance and meet consumer demands while remaining environmentally friendly.
3
Alltech's 25 years in China
Alltech entered the Chinese market very early: its main entity, Beijing Alltech Biological Products Co., Ltd., was established in 1994. Jonathan said, "We have been in China for 25 years, and we have witnessed the development of China's agriculture."
When Alltech first expanded to China, pork accounted for a large proportion of the country’s meat consumption. At that time, Alltech focused on China’s pig market, but over the past 25 years, Alltech has grown rapidly and is now a provider of solutions for poultry, pigs, ruminants, aquatic animals and pets.
Alltech has obtained ISO22000 food safety management certification in China. At the same time, the Alltech® Quality System (AQS), which adheres to the regulations of the United States, the European Union, China and other countries, focuses on mycotoxin and heavy metal pollution to ensure product quality safety and trust.
4
Trends of the global feed industry
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Global feed industry distribution by region (Source: Alltech? 2019 GLOBAL FEED SURVEY)
As a science- and innovation-based company, Alltech works with local governments, associations and entrepreneurs to better understand the global feed market and to produce quality products that will benefit consumers.
China is the world's largest feed market, and the Chinese market has undergone many changes. Consumers are becoming more affluent, meaning that more protein is consumed and more feed is needed. Providing insights like these has become an important part of Alltech's business. This information is valuable for the global animal and agricultural industries and also allows Alltech to better understand how to serve different markets and customers.
Jonathan shared some important insights about the feed industry.
“The nature of the feed business will not change — it will remain mainly corn, soybeans, feed additives and protein substitutes,” he said. “Globally, the proportion of swine and cattle feed will hold steady, and aquaculture feed will continue to improve. These are based on changes in the human diet model."
5
Alltech's thoughts about the Chinese pet food market
Pet food companies such as Mars and Nestlé Purina have opened factories and are conducting R&D in some developing countries in Southeast Asia. Over the past five years, the industry has continued to grow rapidly in China.
“When a market is just getting started, the product complexity is usually not high, and the Chinese pet food market has become more sophisticated,” said Jonathan. “Consumers are beginning to realize that, in addition to the basic needs, functionality and life stage of pets, veterinarians also pay attention to the health of the fur. As such, generic products will be replaced, and product’s based on the pet's life stage and special needs will become more important.
“At this stage, pet food manufacturers also need our products to add nutritional benefits to the diet,” Jonathan continued. “Alltech uses science to develop products that meet the needs of different life stages and the functional needs of pets. The complexity of the market and the heightened consumer awareness have prompted pet food manufacturers to change.”
6
Alltech product advantage
In addition to the advantage of Alltech’s global scale, over the past 25 years, the company has developed a domestic professional and customized product line and has adjusted to growing demands. Alltech is currently working with some pet food companies in China on such items as product marketing and end-user touch solutions. Through these collaborations, Alltech helps companies develop products and better understand consumers — which may be the biggest advantage offered by Alltech.
7
Alltech’s plans for the pet food industry
Alltech China’s pet division offers a number of products for pet food companies, as well as nutritional solutions for the corresponding products. Alltech hopes to provide a full range of services for pet food manufacturers, as well as products that bolster quality and health, including functional products that support immunity, intestinal health, skin and joint health. Alltech intends to become a leader of healthy nutrition in China’s pet industry.
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Jonathan Wilson, president of Greater China for Alltech, with Elisa Liu, head of Alltech's pet division
To sum up:
If the biggest companies in the pet food industry want to remain ahead of the competition, or if pet food entrepreneurs want to carve out a niche in the industry, they should consider solution providers like Alltech important partners.