enzymes, animal feed and waste reduction
DESCRIPTION
Enzymes, Animal feed and Waste reduction. Peter Natkanski. Agribusiness: a large, global industry. Global market 2002: $ 41+ bn. Conventional S eeds ($bn 13 ). Crop P rotection ($bn 25). GM Seeds ($bn 3). Source: Phillips McDougall, The Context Network, Syngenta. - PowerPoint PPT PresentationTRANSCRIPT
Enzymes, Animal feed and Waste reduction
Peter Natkanski
Agribusiness: a large, global industry
Global market 2002: $ 41+ bn
Source: Phillips McDougall, The Context Network, Syngenta
61%
31%
8%
ConventionalSeeds($bn 13)
CropProtection($bn 25)
GM Seeds($bn 3)
Industry consolidation
Novartis
Syngenta
Monsanto
DuPont
BASF
Bayer
Dow
Ciba
Sandoz
Zeneca
ISK Biosciences
Monsanto
DuPont
Shell
Cyanamid
BASF
Bayer
Rhone-Poulenc
Hoechst
Schering
Dow
Rohm & Haas
Aventis
Merck
AHP
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
5,260 5,256
2,693
1,793
2,795 2,525
937230
1,585
2,016192
0
1000
2000
3000
4000
5000
6000
7000
2002 Sales of Major Agribusiness Companies
*Estimated after EU divestments of ~ Euro 700 m
Syngenta
Bayer CropScience*
Monsanto DuPont BASF Dow
Crop Protection
Seeds and Traits
$m
Source: Phillips McDougall & Annual Reports
Non-selective Herbicides
Professional Products
Selective Herbicides
Field Crops
Insecticides
Fungicides
Vegetables & Flowers
9%
22%
15%
9%
8%
26%
5507
1071
Crop Protection
Seeds
(84%)
(16%)
Sales 2003 $m 6578
Product Lines
10%
Strategy … the next three years
Enhance leadership
Crop Protection
Seeds:field crops, traits
Agri markets
Animal feed
Capture opportunity
Biopharma
Crop processing
Fresh produce
New markets
Drive for growth
Seeds:flowers
Seeds:vegetables
Professionalproducts
Consumer driven markets
Strategy … the next three years
Enhance leadership
Crop Protection
Seeds:field crops, traits
Agri markets
Animal feed
Capture opportunity
Biopharma
Crop processing
Fresh produce
New markets
Drive for growth
Seeds:flowers
Seeds:vegetables
Professionalproducts
Consumer driven markets
Whole Foods
Golden Rice
– Product concept: GM rice with elevated levels of B-Carotene which converts to vitamin A in the body; antioxidant properties of carotenoids
– Value capture: transfer Syngneta Golden Rice to Humanitarian Board for licensing to third world institutes
– Beneficial consumer output trait for third world countries
Collaborations with 400 institutions and companies worldwide
UC BerkeleyClemson UniversityUniversity of NC at
Chapel HillPohang UniversityNC State UniversityBoyce Thompson/
Cornell
Centrum voor Planten-veredlings - en Reproductieonderzoek
MyriadDiversaMaxygenAdvanta
Wealth of collaborations & partnerships
Attractive as research partner
Collaboration recognized as core value
Outsourcing culture
Proximity to centers of scientific excellence
University of NevadaOxford UniversityWashington State
UniversityVienna University
The Scripps Research Institute
Incyte DaniscoDiscovery Technologies
UniversitiesUniversities
Private Private companiescompanies
ResearchResearchinstitutesinstitutes
Phosphorus and the animal diet
Phosphorus vitally important for bone and tissue growth
Phosphorus (organic) stored in phytate and found in corn and soybean oil – animal feeds
Phytic acid not readily digestible by monogastric animals
Must add supplementary mineral phosphorus
Expensive, replaces other valuable nutrients,increases phosphorus in waste, causes pollution.
Phytate (myo-inositol hexaphosphate) is the principal storage form of phosphorus in plant seeds
Considered an anti-nutrient -Chelates essential dietary minerals such as calcium, iron, copper, and zinc
Phosphorus in phytate is nutritionally unavailable to monogastric animals
To provide adequate dietary phosphorus to animals, inorganic phosphates are added to formulated animal feeds
Phytate
Adding Phosphate to Feed Costs $ and Adding Phosphate to Feed Costs $ and Causes PollutionCauses Pollution 80+ million tons
inorganic Phos
@ $1-2/ton
600 000 metric tons of
Phos waste =
Environmental Cost Many countries are beginning to regulate
animal production based upon amounts of Phos in animal waste
H
OH
H
OH
H
OH
H
OH
H
OH
H
OH
PhytasePhytase
InositolPhytate
An enzyme that removes Phos from phytate An enzyme that removes Phos from phytate Used widely in the feed of monogastric animals Used widely in the feed of monogastric animals
to allow animals to utilize the Phos contained to allow animals to utilize the Phos contained naturally in feed components (corn, wheat, soy)naturally in feed components (corn, wheat, soy)
Use allows reduction of inorganic forms of Phos Use allows reduction of inorganic forms of Phos in feedin feed
Reduces Phos in animal waste – positive Reduces Phos in animal waste – positive environmental impactenvironmental impact
6 PO4
Current Phytase MarketCurrent Phytase Market Most widely accepted feed enzyme; Most widely accepted feed enzyme;
recognized efficacyrecognized efficacy
Increases animal performance on Increases animal performance on low low PhosPhos diets diets; ; reduces reduces needneed for for inorganic Phosinorganic Phos
Fastest growing segment of feed Fastest growing segment of feed enzymeenzyme market market
Limitations in price/performance of Limitations in price/performance of current products will cap ultimate current products will cap ultimate market penetration and growthmarket penetration and growth
>$1>$1220M globally with the potential 0M globally with the potential to grow to >$350Mto grow to >$350M
Limitations of conventional phytases
Animal feed is commonly formed into pellets, a manufacturing process that requires moisture and heat. Most phytases are unstable under normal temperature pelleting conditions and must be applied either with a protective coating before pelleting or post-pelleting by liquid application.
Can result in sub-optimal feed and inconsistent animal performance.
Why Thermotolerance?
Feed Ingredients
Steam (90° C)Pellet
Formation
Cool
Mixing
High Capital Cost
Syngenta and Diversa - a unique collaboration
Started in 1999 through Zymetrics for feed and agricultural processing applications
Expanded in December 2002 to include more nutrition, processing and biopharmaceutical applications
Combines world-class gene discovery, optimization, plant biotechnology
35+ scientists devoted to Zymetrics R&D
Organized to deliver a pipeline of high-value animal nutrition products
Commercial status
Sales in Mexico since January 2004
Sales in Brazil beginning August 2004
Approval pending in the USA
Registration application made in EU for broilers
Registration in other countries in progress
In the warehouse with first shipment of Quantum Phytase: Miloud Araba (Zymetrics), Ruben Bustos (Zymetrics), Plant Manager for Nutriba (first customer)