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INTERVIEW -- Feed Fat Producer Berg+Schmidt Aims to Increase Market Share.

July 8 2010 Berg+Schmidt has been in the feed fats and ingredients

business for over 50 years. Part of the Stern-Wywiol Gruppe, which is active across the globe in the feed and food ingredients business, Berg+Schmidt provides essential vegetable substances for the feed industry.

In an interview with Feedinfo News Service, Berg+Schmidt managing director Andreas Reith discusses the company's products, its latest acquisition and its corporate outlook.

Berg+Schmidt makes products for ruminants, aquafeed, poultry, pigs and pet food -- in which area and why do you foresee the biggest growth?

(Andreas Reith) In global terms our main focus is the sale of essential vegetable substances for cattle stock-raising. In Malaysia we have our own production plant, which is primarily dedicated to the manufacture of high-quality vegetable fat powders. We are steadily extending our production capacities in this field. Step by step we are gaining a good position in more and more new markets.


Finally a word about aquaculture. We are noticing a decline in the use of fish oils. The trend is to enrich feed with vegetable oils. Berg+Schmidt's BergaPur pure lecithin for aquaculture offers a highly concentrated product that is especially suitable for concentrated feed mixes. Its benefits include promoting growth in fish and shellfish and giving them greater resistance to stress.

What are the advantages of phospholipids? How can phospholipids save feed costs?

(Andreas Reith) Phospholipids have a three-fold effect and make animal feed more effective in several ways. As technical adjuvants they offer many benefits in the production process and in the final product. Above all, however, phospholipids are biological emulsifiers.

Added to feed they deliver high-quality organic components such as choline, ethanolamine and inositol as well as phosphorus and unsaturated fatty acids. As physiologically active ingredients they give the animals greater vitality, strengthen their immune responses, enhance fertility and increase potential growth rates. Overall the use of phospholipids makes the business of breeding and fattening animals more profitable. Our BergaPur pure lecithin offers the maximum concentration of phospholipids.

What is the current state of demand for your pet food nutrition products? How quickly is this segment of the business growing?

(Andreas Reith) Lecithin is a well established component of pet food. Berg+Schmidt is very well positioned in this sector. Apart from that we are not so active in the pet food business at present.

How do you ensure the safety of your products?

(Andreas Reith) Berg+Schmidt has obtained ISO 22000 and GMP+ B2 certification for its management systems. These internationally recognized standards assure Berg+Schmidt's customers of product safety for the entire feed supply chain. That is why our partners in Asia and Europe are integrated into the system, in order to provide the full documentation and traceability that guarantee the safety of feedstuffs at the production and logistics stages. That is our contribution to the "farm to fork" safety of products.

What research and development projects or process improvements is the company currently working on?

(Andreas Reith) Well, we would not like to reveal any details here, but we can say that we are using our own pilot plants for spray drying and spray cooling to develop for example rumen by-pass ingredients. In general terms, we are continuously working to expand our production capacity. Moreover, we are investigating further possible uses of CLA for other functions.

What new products are you anticipating introducing in the short term?

(Andreas Reith) Currently we are concentrating sales activities on the introduction of conjugated linoleic acid (CLA) to improve the quality of meat from porkers. Berg+Schmidt's product for this purpose is LodeStar CLA-1. A new addition to the range is BergaHorse Energy Balance for horses -- a readily digestible source of energy based on palm fat with a high content of superior quality fatty acids plus phospholipids and vitamin E.

Over the past 15 years the production of oleochemical specialities has shifted more and more from Europe to the South-East Asian countries where palm and palm kernel oils originate. Do you see future growth of Asia palm kernel oils in Europe?

(Andreas Reith) We have kept pace with this trend from the outset -- which is why we have our own production plant in Malaysia -- and are engaged in collaboration with a variety of local manufacturers of oleochemicals.

There is a trend towards preferring short and medium chain fatty acids. The feed industry is increasingly using them for specific applications -- especially C6, C8, C10, C12 and C14 fatty acids. Their use is steadily rising and Berg+Schmidt is a major supplier of these products -- particularly to the feed industry.

In July 2009 Feedinfo News Service reported that Berg+Schmidt acquired Loders Croklaan Animal Feed Division. Could you provide an update on this acquisition?

(Andreas Reith) It was, as expected, a successful takeover. We have integrated all the products into our portfolio. Berg+Schmidt was able to continue production without a hitch.

How has this acquisition benefited the company?

(Andreas Reith) As a producer of speciality lipids, Loders Croklaan was covering the same business sectors as Berg+Schmidt. All the products we have taken over from Loders Croklaan and integrated into our range complement our own products -- therefore the acquisition obviously enabled us to generate considerable synergies.


What is your analysis of the outlook for Berg+Schmidt in the short to medium term?

(Andreas Reith) The present business model of Berg+Schmidt is ideally suited to the times. Our fat powder production in Southeast Asia enables us to supply all our global markets. In addition, we have a policy of introducing more speciality products. We would like to further expand our market leadership.

In many parts of the world there are deficits in rural animal husbandry, specific problems being energy deficiencies in the feed. Fat is the most effective source of energy and thus the long term perspectives for further business growth are good. Overall, Berg+Schmidt will continue to assert its leading position in the field of lipids and expand wherever possible.
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Publication:Feedinfo News Service
Article Type:Interview
Date:Jul 8, 2010
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