Evonik, a Specialty Chemicals Company, announced its Distribution Agreement with Halchemix, Canada

Posted by MarketsandMarkets on Apr 25, 2019 1:22:52 PM
MarketsandMarkets

Evonik (Germany), one of the largest specialty chemicals company, announced its distribution agreement for dairy feed additive with Halchemix (Canada). Evonik has four business segments—nutrition & care, resource efficiency, performance material, and services. It offers feed additives such as amino acid and probiotics under the animal nutrition business line of nutrition and care segment. While, Halchemix is focused on well researched feed additives, including amino acids, phytase, enzymes, and water acidifiers.

MarketsandMarkets™ View Point:

Bhagyashree Pathade - Research Analyst : Food, Beverage, Animal Nutrition & Agriculture, at MarketsandMarkets™, shares his Point of View as mentioned below:

The strategic partnership will enable the promotion of Evonik’s rumen-protected methionine product Mepron in the Canadian market. Halchemix will become the exclusive distributor of Mepron in Canada. Halchemix is well established in the Canadian market as a provider of feed additives, making them an ideal partner for Evonik. Halchemix’s products include phytase, enzymes, amino acids, and a dairy product line that includes rumen protected lysine and DCAD products. Thus, since the products of Evonik is in-line with the products of Halchemix, the strategic partnership will help proper distribution of Evonik’s products in Canada.  

Impact of Acquisition:

The demand for feed additive products in Canada is increasing. To seize the opportunity, Evonik’s starategic partnership with Halchemix will help improve revenues of the company in the future.  The distribution agreement will increase the competition among the feed additive manufacturers in Canada.

The figure below shows the opportunity in the feed addtives market in terms of value. The Asia Pacific market is estimated to account for the largest share in 2018. The market in the region is driven by the presence of a large livestock population (FAO 2016) and their growth rate. Furthermore, the region has witnessed an increase in the number of feed mills and feed production, particularly in countries such as India and Japan.

FIGURE 1    FEED ADDITIVE MARKET FORECAST TO 2023

Feed Additives Market

e - Estimated; p - Projected
Source: MarketsandMarkets™ Analysis

Top Competitors:

The key players in feed additive market include Cargill (US), DowDuPont (US), ADM (US), Evonik (Germany), BASF (Germany), DSM (Netherlands), Solvay (Belgium), Ajinomoto (Japan), Novozymes (Denmark), Chr. Hansen (Denmark), InVivo (France), Nutreco (Netherlands), Kemin (US), Adisseo (France), and Alltech (US)..

Conclusion:

The modernization of the dairy industry in Canada has compelled animal producers to improve the efficiency of animal production. Factors such as growing concerns among animal producers regarding the safety of the animal and human health and the impact of wastage during livestock production have resulted in a shift toward the use of feed additives of natural origin. Furthermore, the growth of feed additives in this market is largely driven by the rising demand for meat and the lenient regulations pertaining to the use of growth promoters in the country. The distribution agreement of Evonik and Halchemix will help cater the increasing demand for feed additives among consumers in the region.

Topics: Agriculture Industry, feed additives

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