Feed firm Anpario not losing faith in organic meat as it posts 20% gross profit hike

Feed firm Anpario not losing faith in organic meat as it posts 20% gross profit hike

Natural feed additives producer, Anpario, said it remains committed to supplying the UK organic meat industry despite sector fragility, as it posted a jump of 20% in gross profit to £9.2m ($15.2m) for 2013.

Anpario's adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose by 12% to £3.5m in the year to the end of December.

And the producer of additives such as acidifiers, enzymes, essential oils, pellet binders, antioxidants and mycotoxin binders for the global animal health, hygiene and nutrition sectors saw a 12% hike in sales revenue to £26.3m.

UK organic animal feed market

But the supplier said the UK organic animal feed market continued to be affected by weak trading conditions and this impacted the progress of its organic feed division, Vitrition, which “continued to manage uncertainty within the customer base.”

Though Anpario, in reporting its financial results for the full year yesterday, said there are early signs that some optimism is returning to this market. “The division remains very well placed to strengthen its share and address the challenges in the market,” added the UK-based company.

The UK Department for Food Environment and Rural Affairs (Defra) reports that producer and livestock numbers and the UK’s organic land area decreased in the year to December 2012 – the most recent period for which UK-wide data are available. 

UK organic advocates, the Soil Association, in a review of the sector last month, said the organic market has returned to growth since then but confidence remains fragile in some parts of the UK because of “a combination of continuing high feed prices, extreme weather, tight organic premiums and mixed signals from retailers and policy makers.” 

Double digit growth in Asia Pacific

Meanwhile, Anpario reported good sales growth in the major markets of Brazil and China.

“The Asia Pacific region is of particular importance to Anpario and we achieved double-digit revenue growth, compared with the previous year, in Bangladesh, India, Malaysia, the Philippines, South Korea, Thailand and Vietnam,” said the firm.

The establishment of a regional office in Kuala Lumpur has embedded it further in the region, it said.

The growing interest from potential customers in North America saw it recently set up an entity in the US. The subsidiary is based in South Carolina and includes sales, warehousing and distribution facilities.

“The US operation complements subsidiaries already formed in Brazil and China and means the company is now firmly located in the world’s three principal pig and poultry producing countries.

These businesses serve territories which in total account for over half the world’s output of pigs and poultry and will provide a strong platform for future growth,” said the feed additives producer in February this year.

Anpario aims to leverage US antibiotic ban

The timing of its investment in the US is aligned with the continued tightening of national legislation regarding the phasing out of certain antibiotics from the food chain, said Anpario.

The US Food and Drug Administration (FDA) announced in early 2014 that the use of antibiotics to promote animal growth will be phased out by 2017.

“This requirement will provide a significant opportunity for Anpario’s natural feed additives,” added the UK supplier.

 

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