What is the future of the agriculture industry after a tumultuous year? Joe Kerns, managing director of Kerns and Associates, discusses the ways the food supply chain adapted over 2020, ways farmers must be agile to succeed today and what agri-food trends to look for moving forward into 2021.

The following is an edited transcript of the Ag Future podcast episode with Joe Kerns hosted by Tom Martin. Click below to hear the full audio or listen to the episode on Apple Podcasts or Spotify.

Tom:                          What is the future of the agriculture industry once the world has emerged from the coronavirus pandemic? What should farmers and producers be thinking about now as they plan for post-pandemic success? We're taking these questions to risk management consultant Joe Kerns, joining us from Ames, Iowa. Joe and his team at Kerns and Associates work with livestock producers and suppliers in 13 states. The clients include packers, producers, veterinarians, researchers, mill operators and feed ingredient suppliers. Joe, thanks for joining us.

Joe:                             Wonderful to be here. Thanks for having me.

Tom:                          And what a year it's been, Joe. What makes your shortlist of trends and dynamics that you've been watching as agriculture has navigated this pandemic?

Joe:                             Some of the things — and I think this is kind of important, is to segregate out what was going to be a trend versus what are the shock waves that were sent to the market. And we have a tendency to lump all those together when there's an acute issue. And so, a few of them that I think that we can start to identify that are directly impacted by the pandemic are lack of travel, for instance. Certainly, that the fuel consumption is down, which impacts agriculture. With the lack of ethanol demand, it also puts fewer DDGs on the market. And so, there's some unintended consequences that are kind of the substrate of the initial event that I think are perhaps the most interesting here, whether that, if you're working from home, that we more than likely probably would not have been, but even a “ghost kitchen” is perhaps a trend that was already going to establish itself and then hits kind of the turbocharger in a pandemic environment. It’s made for some very interesting dynamics.

Tom:                          Joe, I’d like to read something from your website and then we can talk about it. You write, “The turning of the calendar is the traditional time to take an inventory of your personal situation and commit to stirring in another direction, if you so choose. Statistics show, however, that you will probably revert back to the same old habits before February. Change can be hard.” Indeed it can, but have the economic shocks of the pandemic brought about any long-term changes that need to be recognized?

Joe:                             Absolutely. And certainly, I would call (it) a shift toward even environmental stewardship. The pandemic, in another, I think, ancillary form, has brought together some of the political unrest that we’ve seen. As folks have stayed at home more, I think we've got an acute situation that we’re dealing with in a congressional issue that’s brought through funding. It’s brought through some economic strife. And it’s turned the political thing, it's turned up the heat. And our fishers in society are more exposed. I think that once these things are exposed, the genie doesn't go back in the bottle very well. Kind of even what you (read) had kind of a qualifier in there that we can change if we choose, but it is our choice. So, some things are posed upon us and other things are (our) choosing. And I think what I was really getting at, probably, in that article was dealing with New Year's resolutions specifically, and everybody has (them) — you know, “I'm going to eat better. I'm going to lose weight.” Well, that’s fantastic. But unless we say, “I’m going to run a 10K in less than 40 minutes” — those are specific deliverables that I think are the ones that we need to choose, not the type of generalities that aren’t so inflection-performing.

Tom:                          Well, speaking of New Year's resolutions, you also wrote near the end of 2020 that there's nothing inherently wrong with New Year's resolutions if they are “bends in behavior,” not wholesale changes unlikely to stick. It sounds like — to me, anyway — that you're suggesting that it's better to make modest, moderate changes than to go off in an entirely new direction. Am I reading you right there?

Joe:                             Absolutely. Yeah. The radical seldom works. You know, whatever you see in yourself or in others as a trait that needs to be changed, making a polar opposite (change) is rarely successful; it puts too much stress on the rest of our system. We’re dynamic beings. And more than likely, the item that you identify is connected to a lot more behaviors. And so, therefore, having a complete denial of all the desserts probably is a little too radical. Having them once a week is perhaps a more realistic metaphor. And I think, even in our businesses, that we've got to recognize the same. That if we’re referencing the pandemic that has imposed onto us some very, very acute dynamics — they might be financial, they might be employment-wise — even our asset base is going to be utilized.

                                    You know, thank goodness I don't own any hotels or any commercial buildings, per se, because I do think some of the long-term changes that we're going to see in society are going to render those to be of less value than they were prior to the pandemic coming. So, kind of keeping with that theme, if we get to choose them — and certainly, the resolution component is self-imposed — bends work a lot better than 90-degree angles or about-faces.

Tom:                          Well, we're talking about change, and we each can be stuck in our ways, but I wonder if it's really important to think about that and to try to be more agile in these times to come out of the pandemic successfully. And what does that agility look like?

Joe:                             Well, certainly, I think the first rules of business are: don't run out of cash. If we say that three times, it’s kind of neat to write a book about that. And I do think that having liquidity and solvency is the first key component. The second would be the frank assessment of any fixed assets that you have and what their shelf life is in the current industry, whether it's within agriculture — that if I've got a pig barn, can it be converted and utilized (as) something else? And if so, what is the net present value of that asset? And so, I am personally a fan of not owning a whole lot of fixed assets, (and) I do think our society is also moving that direction.

                                    I am not a millennial generation, but the millennials, I think, have taught us something: that they would rather rent than own in many different cases. And that does add a level of agility — that until we get things kind of sorted out and our oscillation decreases a little bit so we’ve got more confidence in our decision making, it is important just to be a little lighter on our feet and less encumbered, perhaps, with physical assets than at other times, (when) it might warrant those, in an inflationary environment — which I also think is coming, by the way.

Tom:                          Let’s kind of riff on that rental idea, because I agree with you that it seems to be really catching on, and I wonder if it could be seen as kind of a win-win situation, since you're not saddled with maintaining all that gear, all that equipment, but at the same time, somebody else is given the business.

Joe:                             Yeah. The win-win has got to be a fair return towards the equity holder. And when we were in a zero-interest-rate environment, that's probably very difficult. And again, getting back to the political scenario that we’re coming on with a little bit more debt, the changes in the Georgia (senate) race that, more than likely, are going to allow a few more progressive programs to roll through, that will inevitably increase our tax base, perhaps lead into some inflation, is that there's a secondary alternative for money. Look at the stock market. We're what, 31,000? I don't know what it did today; I think it was up a little bit also. But the Dow Jones is also giving a very clear indication that there's more to an alternative than money sitting on the sidelines. And the type of scenario that I think we're going to be in for at least for the (next) two and, more than likely, the next four years is going to be one of alternative value, bringing money off of the sidelines and making it work. We're going to punish the savers as a society. And so, from an agricultural standpoint, I believe what that means is that rates are going to have to move higher in order to compensate the next best alternative for the allocation of funds. And so, what was an easy scenario in a zero-inflation-rate environment — to say, “Why would I want to own it? I can just rent it” — I do believe that those dynamics are going to change, but we also have generational changes that are overlaying. So, it’s almost like waves that are coming together, and you’re trying to decide which one's going to be the dominant force, or are they going to conjoin to really bring some kinetic energy into a program?

Tom:                          What are some key markers in the market that you're watching for as risk-management decisions are being considered and made?

Joe:                             Well, certainly, profit margins. I think that's what — we've got to start from a sound economic base. If I'm making decisions that are leading to profits to my operation — and again, this comes back to the “What is the return on my asset base?” and “Am I better off selling it and doing something else with my money?”

                                    We, in agriculture, tend to look at these things with our hearts a little bit more than our heads at times. And I think that's one of the beauties of agriculture, is we're not just complacent and cold, steely players on a Monopoly board where we don't care what we get. We care. You know, it's the model of the entire pork industry. And so, I think that, certainly, the profit margins and then, kind of reverting back to stuff we talked about earlier, was segregating out what are the short-term changes versus the long-term changes, and how do I position my operation, and am I willing to ride out a storm? If that's what I'm looking at — and are there alternatives, and I’ll give you just a brief example. The financing alternative is we, in the United States, have a very robust farm credit system and, also, a private lending system to access funds. Not everybody has that. If you spend any time in China, it's either going to be private equity or you're going to become a state-owned enterprise. Those are really your two choices. There is no farm credit system inside of China. And so, in addition to what we already have as financing arms, we're also starting to get a little bit more creative. The over-the-counter market — some nontraditional sources of capital are coming to agriculture. And I think as long as we are open to the consideration and not say, “I'm going to do business with this bank because my grandpa did business with the bank,” we're going to be better off. There are going to be wonderful financial opportunities that come at us that, more than likely, have a few pitfalls, but I'm very optimistic of our ability and, something else we talked about, our agility and our ability to adjust.

Tom:                          Joe, there were errors in the June hogs and pig report back when COVID was forcing plant closures, and then again, in September, mistakes were made. Is the industry now stabilizing, and was that indicated in the December report?

Joe:                             I still think we’re on a little bit of a wobble. I think it's easy to look at the USDA in the September and June report and go, “Oh, my goodness, they were wrong.” And they were, but they had an impossible task at their avail. The COVID, with the backup of the animals and the suppression of plant lines, meant that we had to make some very difficult decisions on the farm, and decisions that nobody wanted to talk about nor publicize, for obvious reasons. Because of that, there was no way that we were going to quote “find” where are the missing animals on the farm. Where did they go? And so, to place any reliance on those reports was probably a little bit of a misgiving to begin with, but we were looking for anything to glob onto. And USDA comes out every quarter with the hogs and pigs report. And traditionally, we've been able to kind of hang our hat on those, to some degree of confidence, and we were looking for that. In our floundering, we're saying, “Finally, I get something to hold onto,” without the recognition, perhaps, fully, that it was not moored to anything either. It was floating along with us.

                                    The September report completely overstated the heavyweight category. That's a good thing. That's a good thing. We would have been in a world of hurt otherwise. The current report also indicates that we've got some heavyweight animals that might be a little suppressive to the market. And I believe that by the time we're set and done, we’re going to find out that that wasn't quite accurate either. Now, our oscillations are lessening. And so, whatever deviation that we might have isn’t as bad as the previous report. So, I do think that we're starting to get back onto some solid footing. I would take a look at the March hogs and pigs report as being kind of the finding where we can put a stake in the ground and say, “Okay, I can lean against this one.”

Tom:                          Okay. Let's turn to grains. You've expressed concern that pork producers may have a difficult time sourcing soybean meal in the summer unless something changes radically in the South American weather forecast. First, tell us about that forecast.

Joe:                             Well, the forecast has been one of a La Niña scenario that has traditionally hampered the production inside of South America.  We've got two different pieces here moving at the same time. So, one is: what is our South America forecast, and what do world supplies look at? The second one is: has the United States been leaned on just a little too long in order to supply products in the world, and now, we are going to short ourselves? That's, I think, a very real scenario. So, it's not only quantity; it's also timing.

So, the Brazilian crop did not get in early. We need the Brazilians to perform, as far as supplying crop to the world, and it starts in earnest in the next 30 days or so, traditionally. I have no reason to think it's going to be much different. But the United States has been the supplier of choice to the world. China's appetite has been voracious.

I think we've got a very real risk of a repeat of the scenario that we saw in 2013, where the only way that a producer was to receive soybean meal was to deliver a load of soybeans to the plant. I think we are, perhaps, (experiencing) as acute of a scenario as we were back in 2013, and that will tease itself out. We've got a report coming out on Jan. 12 that would give us final production for 2020, as well as the stocks report. And of the two of them, strangely enough, if you can only give me one, I’d take the stocks report. Let's figure out where the supplies are, and let's figure out if we've got enough time in order to parse those out until we can get to our next harvest.

Tom:                          Well, what would be the consequences if the U.S. is pressed to supply a larger-than-expected portion of the world's soybeans?

Joe:                             Well, the consequence is that we physically run ourselves out. That if I gave you half a tank of fuel and said, “Now, if you drive it at 50 miles an hour, you could make it,” and you go, “50? I'm just going to put my foot to the floor,” and you'll make it three-quarters of the way there and the tank runs dry. And that's kind of the analogy that we're on right now, is we’ve had our foot to the floor not only supplying to crush industry for domestic use, but also, we've been exporting the living daylights out of beans, figuring that we’ll worry about tomorrow tomorrow. And I think that we are on a collision course with reality, especially if we see more world demand, margins are offered.

                                    We live in a free-market economy. We could do whatever we want. We don't have to play in. That's the job of the market, is to move prices to a level that ration the disappearance. That’s what we call demand. So, that’s the job of the market, not of any one central government agency. And I think that's the beauty of what we have in agriculture.

Tom:                          Joe, you've also raised the concern that an acreage battle is brewing as we come into spring. Tell us about that.

Joe:                             Sure. More than likely, we're going to be adding someplace in the neighborhood of 8 million acres to our primary crops, corn and soybeans. If the pricing relationship remains where it is right now, our internal models would say that of those, of 7 or 8 million acres, the lion’s share are going to go beans and corn, (which) is going to have a difficult time just holding service. And that's because the soy market has been the leader so far in, and new-crop soybean is just the relationship that, if it was a traditional 2.3-to-1 relationship and taken at $11.50 November beans and say, “Well, what does corn to trade at?” You're going to find out it's $5 to make all those ratios start to come together. And when corn is trading at $4.35 or so in December, we've got some ground to make up. We've got some ground to make up between now and our planting decisions in order to encourage those acres so we don't find ourselves in a stress situation in 2021 with corn. We’re already there with soybeans.

                                    We’re going to be in a strain in 2021 throughout the use year. The job of the market is going to be to encourage enough acres to make sure that 2022 doesn't look the same for corn — the exports, the feeding demand, but more importantly, it’s the acres that we put into the ground and, then, the subsequent yield.

Tom:                          You have described an ominous situation in hog futures, the case of the shrinking open interest. Can you elaborate on that and why (it is so) ominous?

Joe:                             Oh. Well, the ominous part of it is, as pork producers, if we wish to hedge — and that is, to sell the market — you've got to have a party willing to offset that hedge — i.e., a buyer. And when the funds are not participatory, especially getting off some hedges into 6, 8, 10, forward (movement) can be difficult. We tend to have a lot of activity in the market in the front months, but the back months —  where forward-looking risk management might be prudent — the lack of fun and participation does cause a very, very real concern.

                                    I'm happy to report (that), in the last two weeks, we have seen the funds finally starting to participate. They’ve come through in spades so far in the wheat market and, then, in the soy complex and, more recently, the corn, but the livestock side of it has been kind of almost forgotten in this “go, go buy” scenario. And so, the lack of participants in the market — not everybody thinks like us, and that's a good thing, because we have to have somebody take the other side of our traits.

Tom:                          A little bit ago, you touched on the new administration in Washington, and I'd like to kind of elaborate on one thing regarding it, and that is that the Biden administration has inherited the Trump administration's trade and foreign policies. China: what now happens between the U.S. and China?

Joe:                             I suspect that we're going to start off with, perhaps, no change whatsoever. The phase-one commitments that were negotiated more than likely had enough economic parameters — i.e., China needed our stuff, whether it's soy or hogs, given their ASF position — that the buying was going to occur with or without an agreement.

                                    I do believe a, perhaps, more tender approach and respectful approach to the Chinese situation by the next administration could certainly yield more opportunities for agriculture, more opportunities for commerce that would flow back and forth — more of a dovish approach rather than the hawkish negotiating style that we had engaged in. And I'm not saying it was all bad for the United States. It is, perhaps, for (the) telecommunication component and some of the national security pieces, were, perhaps, were of benefit. Agriculture, in my opinion, was hard. It was kind of the tale of the dog when it came to the negotiating table.

                                    We recently had an episode where we had an in-person visit with Gregg Doud, and all of us in agriculture need to thank that gentleman for his participation in bringing our interests to the negotiating table and putting the provisions in that have allowed us to kind of enjoy some of this largesse that’s been flowing through right now. But I suspect the next administration could even be more successful, now that we've laid the groundwork — and perhaps if agriculture takes a more front seat, if you will, in the negotiations, in attempting to help the Chinese people bridge some of the difficulty that they've had with ASF and other production difficulties, that we could see a win-win scenario. That's something that, for the last four years, I don't think has been the goal. “If you win, that’s okay, but I’m going to make sure that I win” seems to have been a more prevalent attitude.

Tom:                          Any other signals that you're now reading or watching for as our economy continues to weather this pandemic and undergo the changes that come with shifting political winds in Washington?

Joe:                             Certainly, inflation is probably my biggest concern, and that is a double-edged sword. We are going to encourage money out of passbook savings. Savers, I think, will be not as well-rewarded. And if you take a look at some of our folks living on a fixed income, this is kind of a dichotomy. We might be hurting the older generation that, traditionally, our policies in a democratic type of approach would say that we're going to be a bit more protective of, whether it's the geriatric community and/or the environment. And the economic policy, I don't think, is going to be supportive of those living on a fixed income.

                                    Conversely, if somebody's going to have to pay for this debt — and the “tax the rich” piece is very, very difficult — (then) the next generation is more than likely going to carry much of the burden. So, inflationary pressures, I think, our one of my main concerns that we’ve got rolling forward here — keeping the political tensions at bay.

                                    Understand that, as Americans, we all have a vested interest. And you know, if you've traveled abroad whatsoever, there's a feeling, when you come back to the United States and make it through Customs, that you’re happy to be home, because with all of our warts and our scars, there’s still no place I'd rather be. There are some beautiful areas of the world. But from an opportunity standpoint and a safety standpoint, we still aren't the greatest nation, and I still hold out hope every day that we're going to survive — not only survive, but also thrive as a nation.

Tom:                          I certainly can't disagree with that, Joe. Risk management consultant Joe Kerns joining us from Ames, Iowa. We thank you so much.

Joe:                             Thanks for having me today.

I'd like to learn more about pig nutrition.

[DUNBOYNE, Ireland] – Weather patterns have been variable across Europe throughout the 2020 growing season and have had a direct impact on the presence of specific moulds and mycotoxins across different regions. Mycotoxins are produced by certain species of moulds and are a concern for livestock producers due to their ability to influence feed quality and subsequent animal health and performance. Samples collected from across Europe as part of the Alltech European Summer Harvest Survey have been submitted to the Alltech 37+® mycotoxin analytical services laboratory, and analysis is indicating the presence of moderate to high levels of mycotoxin risk.

The results are based on 274 samples of barley, wheat, corn, corn silage, grass silage, alfalfa, haylage, grass, peas, oats, sunflower meal, triticale and soybean. These samples are collected from farms or animal feed production sites from 15 countries across Europe including Russia, Spain, Portugal, Denmark, Hungary, Germany, United Kingdom, Czech Republic, Estonia, Republic of Lithuania, Morocco, Greece, Belarus, Croatia and Kazakhstan, and offer a representative picture of the contamination risk in all regions, with an overall moderate to high risk. Samples have shown an average of 4.4 mycotoxins, with 99.6% containing at least one mycotoxin and 96.4% containing two or more mycotoxins. Fumonisins were found in 80.7% of the samples, while 74.5% contained type B-trichothecenes.

A noticeable trend in recent years is the growing presence of emerging mycotoxins. More than 75% of samples contained this group, which includes specific mycotoxins such as beauvericin, moniliformin, phomopsin A, alternariol and enniatin A and B. Zearalenone (ZEN), a mycotoxin that can have a significant impact on the fertility of most species groups, was detected in almost 7% of samples. Aflatoxin B1 (AfB1), a member of the Aspergillus species and a particularly harmful toxin, was detected in less than 7% of the samples that have been analysed — a percentage that is potentially lower than expected considering the dryer-than-normal conditions across much of Central and Eastern Europe this year.

''Overall, the current results indicate a moderate to high mycotoxin risk across Europe this year, and producers must remain aware of how the risk and impact will vary between different species and animal groups, with breeding animals and youngstock being more susceptible,” said Dr. Radka Borutova, European technical support manager with the Alltech Mycotoxin Management team. “We know that feeding even low-level contaminated feeds has been shown to impact animal health and performance, so even in lower-risk scenarios, producers should not neglect the need to guard against the threat of mycotoxins.''

Summary of results by region:

• Southern Europe (Portugal, Spain, Greece and Croatia): The results from this region show that 91.3% and 80.4% of all samples were contaminated with fumonisins and emerging mycotoxins, respectively. The average concentration of fumonisins was 1,195.88 ppb, a concentration able to harm the health and performance of pigs. More than 86% of samples contained fusaric acid, which is frequently found in different feedstuffs, mainly in corn. Fusaric acid gets into many mycotoxin interactions and has a synergistic effect with other mycotoxins like fumonisins and moniliformin. AfB1 was detected in less than 6% of the samples, and the maximum concentration of 8 ppb was found in one of the Spanish samples. The maximum concentration of deoxynivalenol (DON) was found in Spain in corn silage, and the concentration was 4,903.3 ppb.

• Central Europe (Germany, Hungary and Czech Republic): Samples show contamination of fumonisins of 86.7% and 73.5% with type B-trichothecenes. The average concentration of type B-trichothecenes was 463.5 ppb, a concentration able to harm the health and performance of pigs. More than 68% contained emerging mycotoxins, a group of with increasing relevance in the past few years. AfB1 was detected in less than 4% of the samples, and the maximum concentration of 3.6 ppb was found in one of the Hungarian samples. The maximum concentration of DON was found in the Czech Republic in corn silage with a concentration of 3,921 ppb.

• The Baltics and Eastern Europe (Estonia, Lithuania, Russia, Belarus and Kazakhstan): Of the samples analysed, 70.9% were contaminated with type B-trichothecenes, fumonisins and emerging mycotoxins. The average concentration of type B-trichothecenes was 454.9 ppb. None of the samples from Eastern Europe were contaminated with zearalenone, a mycotoxin that can have a significant impact on the fertility of most species groups. AfB1 was detected in more than 10% of the samples, and the maximum concentration of 27 ppb was found in one of the Lithuanian grass silage samples. The maximum concentration of DON was found in the Republic of Lithuania in corn silage, and the concentration was 4,970.5 ppb.

• Northern Europe (Denmark): The results from this region show that 94% and 92% of all samples were contaminated with emerging mycotoxins and type B-trichothecenes, respectively. The average concentration of emerging mycotoxins was 414.4 ppb. Interestingly, 6% of samples contained ergot alkaloids, while the average concentration was 695.4 ppb and the maximum concentration was 2,037 ppb, found in barley. AfB1 was detected in less than 2.5% of the samples, and the maximum concentration of 3 ppb was found in wheat harvested in Denmark. The maximum concentration of DON was found in Denmark in barley, and the concentration was 1,351.8 ppb.

The average levels of mycotoxins identified fall below the EU-recommended levels for each of the mycotoxins when assessed individually. Only 0.36% of samples exceeded EU allowed concentration of AfB1 (20 ppb) in feed ingredients (COMMISSION REGULATION (EU) No 574/2011. However, the risk level for productive species based on Alltech's risk equivalent quantity (REQ) varies from moderate to high when the multiple-mycotoxin challenge is considered.

• Pig producers should be aware that the risk level based on the average REQ for breeding sows and young piglets is deemed to be high.
• When the mycotoxin contamination levels are applied to poultry, the mycotoxin risk for breeding birds is moderate, while in broiler birds, it is low to moderate.
• In ruminants, the results from the samples analysed so far indicate a low to moderate risk in dairy cows.

There was a notable difference in the mycotoxin contamination levels of large grains (corn) and small grains (wheat, barley, oats). The average number of mycotoxins detected in corn samples was 6.4, while in small grains, it was 3.6. This variance is reflected in the REQ and risk of feeding these ingredients to specific species and animal groups. For instance, in sows and gilts, this year’s corn samples represent a higher risk of mycotoxins, but when small grains are fed to the same animals, the mycotoxin risk is deemed to be lower.

Alltech will host a webinar with Dr. Radka Borutova on Dec. 9, 2020, at 11:00 a.m. CET. Register for the webinar via this link.

For more information and results from the 2020 Alltech Summer Harvest Survey, visit www.alltech.com/en-gb/summer-harvest-survey.

The International Federation of Agricultural Journalists (IFAJ) and Alltech have announced the call for nominations for the IFAJ-Alltech International Award for Leadership in Agricultural Journalism. The award will be presented during the Alltech ONE Virtual Experience in 2021. Now in its third year, this global award recognizes excellence and leadership demonstrated by young journalists within their IFAJ guilds.

The recognition honors Alltech’s late founder, Dr. Pearse Lyons, who was a passionate storyteller with a great respect for agricultural journalists. The award upholds this legacy while keeping an eye toward the future as it supports the next generation of leaders who connect agriculture to a global audience. It’s an endeavor that aligns with Alltech’s vision for a Planet of Plenty^TM, in which a world of abundance is made possible through the adoption of new technologies, better farm management practices and human ingenuity within agriculture.

“Producers throughout the food supply chain are implementing smarter, more sustainable solutions to positively impact plants, animals, people and the environment,” said Dr. Mark Lyons, president and CEO of Alltech. “However, progress does not end at implementation. We must also amplify the message that we are in the midst of a new era in agriculture led by science, data-driven decision making and a passionate dedication to farming with the future in mind.”

Journalists aged 40 years or younger by Dec. 31, 2020, can be nominated through their IFAJ guilds via the online application form. A global winner will be selected by an international committee based on their journalistic achievements and the leadership they demonstrate within their guild. The global winner receives complimentary registration to attend the Alltech ONE Virtual Experience and will be honored during a presentation.

“IFAJ shares our commitment to supporting journalists who give a voice to the farmers and producers, the innovators and change-makers, the scientists and scholars all working toward a Planet of Plenty,” continued Dr. Lyons. “We are excited to once again partner with IFAJ as we honor excellence in journalism and ensure that the stories of agriculture continue to be well-told.”

The two organizations have enjoyed a longstanding relationship, having also co-founded a young leader program in 2005 that continues today.

"Alltech's respect for agricultural journalists and commitment to cultivating leadership skills among young reporters has strengthened the profession around the world," said Lena Johansson, president of the IFAJ. "The company's emphasis on the importance of accurate reporting on science and agriculture is more important than ever, and Alltech's dedication has helped many talented journalists build their careers. It is a pleasure to work with them." 

The deadline for nominations is Dec. 18, 2020. For more information about the IFAJ-Alltech International Award for Leadership in Agricultural Journalism, contact press@alltech.com.

Alltech believes that inclusion cultivates creativity and drives innovation. Gender equality is not only a fundamental human right, but it is also essential to advancing society and the global agri-food industry. To gather real-world insights into the professional landscape for women in agriculture, Alltech has announced its support of the second annual Women in Food & Ag survey. Launching on Oct. 27, the survey aims to collect feedback that empowers the agri-food industry to create a more equitable environment.

The 2019 Women in Food & Ag survey results revealed specific barriers for women in agriculture and a gap between female and male perceptions but reflected an optimistic outlook overall. As 2020 ushered in unprecedented challenges for agriculture, new questions have been added to the survey to gauge potential inequalities exacerbated by COVID-19. To further globalize this effort and increase accessibility, the survey is available in six languages.

This initiative reflects Alltech’s commitment to the U.N. Global Compact and the U.N. Sustainable Development Goal (SDG) related to gender equality. The SDG recognizes gender equality as a necessary foundation for a peaceful, prosperous and sustainable world.

“In order to achieve a Planet of PlentyTM, it is more important than ever for the agri-food industry to perform at its full potential,” said Dr. Mark Lyons, president and CEO of Alltech. “Human ingenuity is our Earth’s most valuable resource, and a diverse workforce is essential to building a more sustainable future.”

Women and men in all sectors of the food supply chain are encouraged to contribute to this important global conversation about gender equality in agriculture by taking the survey here.

The survey results will be published on Jan. 26 on the Alltech ONE Virtual Experience website.

In a recent study, the American Institute of Stress reported that 75% of today's employees believe that they have more on-the-job stress than a generation ago. This stress has been amplified within the past year, especially for those in agriculture, as they have worked hard to maintain the global food supply chain. Padraic Gilligan of Gilligan’s Farm in Roscommon County, Ireland, joins us on the podcast to discuss some specific solutions he has implemented on his farm to de-stress his operation.

The following is an edited transcript of the Ag Future podcast episode with Padraic Gilligan hosted by Brian Lawless. Click below to hear the full audio.

Brian:           Welcome to AgFuture, presented by Alltech. Join us as we explore the challenges and opportunities facing the global food supply chain and speak with experts working to support a Planet of Plenty.

                     Do you feel stress? Are there certain activities, either at work or at home, that bring up specific fears or concerns? In a recent study, the American Institute of Stress reported that 75% of today's employees believe that they have more on-the-job stress than a generation ago. This may be from a multitude of sources, but it begs the question: How do we reduce stress at work, especially as work continues from one generation to the next?

                     Well, today, we have an extremely helpful episode of the Ag Future podcast. I'm Brian Lawless, North American brand manager at Alltech, and I'm joined by Padraic Gilligan of Gilligan's Farm. Gilligan's Farm is an award-winning lamb and beef operation in Ireland with its own farm store and many customers throughout Dublin and the world. But like many of us, they feel stress both personally and in their business — yet within their family business, they’ve found multiple ways to reduce stress, and it's making a big difference. The question is: How, specifically, can Padraic and Gilligan's Farm work to de-stress their operation? What has this meant for their business? How can we take these lessons and apply them to de-stress our own lives and work? Padraic, welcome to the AgFuture Podcast.

Padraic:        Thanks for having me. It's a great opportunity. Thanks very much.

Brian:           I'm excited to have you. Before we dive into the topic of stress, which we'll get to, you've built a really fascinating business. Can you tell us a bit of the history of Gilligan's Farm and your role within the business?

Padraic:        Yeah, I suppose. Gilligan's (has been) in operation for over a hundred years. My father started it back in 1911, and (it) has proceeded on over the years with stops and starts, good and bad. I reared animals on the farm. We have a great love for animals. When I sold animals, whether it be in a mart or factory, I always felt like — I like to sell myself to the public, to have a product that you could feel proud of. That's how I started the farm.

                     The stress part of it, it's been very stressful for the last six or seven months, especially with the COVID. It's very depressing for our farmers, especially here in Ireland — people who have been living on their own. The pubs are closed. We can't go for pints, and that has a big bearing on how people live and how they live their lives. People need to have fun along with work.

Brian:           Yeah. Obviously, not being able to have a bite with some friends is no fun. Talking about your farm, what changes has Gilligan's Farm implemented to manage some of these new stresses with COVID-19? What's changed for you guys?

Padraic:        What has changed? Lots of things have changed. With stress, animals are no different than humans. They get stressed. Our philosophy in that is to play music to the animals and to see them as well. With people, people have to have an outlet, have a bit of fun, try to lessen the stress factor of everyday living and just get them down. You have to open the drawer and deal with it and just close it and move on to the next drawer. That's how we are dealing with it — or my way of dealing with it.

Brian:           Yeah. I do want to touch on the music for animals here in a bit. I guess you started talking about the business that you had. Your father started the farm. You've taken it over, and we're now moving on to the third generation, which would be your son, Alan. It seems like the first way you've looked to de-stress your business is just to have a proper succession plan. I guess, maybe, give us a little insight (into) how you've been preparing or maybe removing the stress for your son, Alan, to take over the business, or as he's been taking over the business.

Padraic:        Well, I suppose it's funny. Look, if you're in business, it's stress-related. In the succession plan that I have to hand it all over to my son, which is — he's running the business and he has full control of it now. I'm taking a backseat. It's stressful for him because I have been in the business over the years, and of course, business has moved on. You have to be on top of it at all times to deal with it. He's probably saying sometimes, "Why would you let yourself in for all this huge workload?" In running a business — we have 22 people employed, and it takes management to do that. It is stressful, but you have to deal with it and not bring it home with you. Customers can be demanding. Ninety percent of them are very easy to deal with, and you've got the 10% that would be very finicky, and you have to deal with them as well. Do you know what I mean?

Brian:           Yeah. I feel like you've touched on two really important things. It seems like you've actively taken a transition in your own job responsibilities, where you're now saying, "Hey, I was the one managing the farm. Now, I'm actively the one taking the backseat." I would assume, for Alan, that's made a world of difference, that it's not now having two people in charge. There's been a transition of responsibilities within the business. Then the second thing that I think you touched on was, in some ways, not taking what you do in your family life during the day, during business hours, and taking it home with you. I feel that that can just add to stress, when you have the same people that you could be dealing with at work that you're then at home with, and you're taking that stress from one place to the next.

Padraic:        Absolutely. When you go home in the evening, you need to be chilled out. There's nothing better than listening to music or having a chat with the wife. All that is very important.

Brian:           Yeah, sometimes it is. It's just those simple things. Maybe moving on, to the second way of de-stressing a business, really focusing on this concept of educating your customers in a very clear way. Some consumers are conscious about where their food comes from, but many aren't. I think that even applies to cuts of meat and to the opportunities that could be available to chefs. Gilligan's Farm prides itself on top-quality meat. If I understand correctly, you are a supplier to celebrity chef Jamie Oliver, and I read that you literally brought a lamb to him and showed him and his team the cuts. Now, I envision you walking into the restaurant with this entire lamb strapped to your back, but I'm guessing that's not the case. How did that relationship begin, and how did you educate Jamie and his team?

Padraic:        He's one of the guys that we deal with that's running a restaurant in Dublin. He's one of those people that is a perfectionist and really loves the products that we give him, and it's direct off the farm. He has a big thing about that. He said to me one day, "Would it be possible to take a lamb in here just to show the staff where all the cuts come from? We'd cook it and test it and we'll invite people in." I was meant to do it. Yeah, I thought it was a great idea. I brought the lamb and the saw and the knife and went to the restaurant. We had good fun. They found it very interesting. The staff then could relate to the customer of the lamb, where it came from, all the different cuts of the lamb, from the best to the worst. It's good education for people — especially people (who) live in the cities, (who) don’t understand animals.

Brian:           It seems like, within your business, there's this element of trust with the consumer. How important is consumer trust? How do you build that reputation and relationship with customers?

Padraic:        Well, it's funny you should say that. I find that fascinating, because when I deal with someone in a restaurant that's a Michelin-star restaurant, the first thing I'd say to them (is), "This is a marriage. This is going to be a marriage. You have trust in me, and I have trust in you." We take it from there, but I suppose you can bring in ten pieces of meat (that are) absolutely mouthwatering, and if you bring in the eleventh bit that's not as good, you're breaking the trust.

                     It's a matter of consistency in your product. You're not 100%, or there's nobody that's 100%, but you definitely have to be over 95% consistent with the product. That builds the trust. As the customer, when you have a meal or have a steak and you say, "Yeah, that was a lovely steak. Where did that come from?" All of that builds a relationship, and that's what you should be looking for.

                     To produce such a high-quality product is vital. I suppose Pearse Lyons was very fond of — when he'd come to Ireland, he'd always buy our meat for his conferences. That's how I got to know Alltech. Alltech has done huge work for us here on the farm. They are always at the end of the phone and would advise on different ways to treat animals, the feed for animals and all that. All that's important. All that is the link in the chain to the end customer. Does that make sense?

Brian:           Yeah. Speaking about links in the chain, I know Dr. Lyons was famous for wanting to (be able to) cut steaks with a spoon. Were you the man behind wanting to cut steaks with a spoon?

Padraic:        Yes, I am. To be truthful about it, there was a video here on the farm going back a number of years ago. They wanted me to cook a steak at seven o'clock in the morning. I said, “Yeah, we better cook it in the house.” I got my wife up anyway. My wife said she's not taking any part in cooking the steak, but I proceeded to cook it anyway. I was thinking to myself, “Well, how can I make this different?” I just got the brainwave: “Would it be possible to cut a steak with a spoon?” I tried it and it worked. I said, “Yeah, let's go for it.” It's on the video, cutting a steak with a spoon. That is, I suppose, a reflection on the product that we have. Tender and tasty, I suppose, is the slogan that we always used.

Brian:           Yeah, and Dr. Lyons was famous — he took that back to the U.S., and the late Dr. Pearse Lyons would show the quality of the steak by cutting it with a spoon. That's amazing.

                     Let's move into the third way to de-stress your business. You kind of touched on this a little bit when you talked about the animals and the music and just this theme of keeping your business fun and productive at the same time. I guess maybe my first question is — so, it's true that you constantly play music around the farm, and it's for the animals?

Padraic:        Yeah. We have a system in the farm to play the music. I suppose it goes back to animals being stressed. Animals can get spooked or stressed very easily. It's all about not stressing animals, and this is why I started playing music to them. My mother, when she'd be milking the cows years ago, when I was a kid, she'd milk the cows by hand, and she'd always sing to the cows, and they'd always give more milk, so I said, “Why not play music to the animals?” We started playing music to animals, I suppose, maybe 15 years ago.

                     There are particular songs that we play to them. Percy French was the greatest Roscommon man, a great Irishman, and he wrote lots of songs. Some of them would be "The Mountains of Mourne" and "McBreen's Heifer," all those. The lyrics in all those songs are absolutely class and really becoming of playing music to the animals. If you Google "Percy French," Brendan O'Dowda sang his songs. He has a lovely, soft voice, and animals really love it. It's amazing. We use it here in the abattoir when the animals are being slaughtered. We play the same music to them in the abattoir here, which is adjacent to the farm. The abattoir is on the farm. We have full facilities on the farm to do from slaughter to dispatch in whatever form the customer wants it. It really adds to, I suppose, the stress levels in the meat.

Brian:           Yeah. I peeked on the music charts in Ireland and there was one artist, Dermot Kennedy, that was very popular. There are also a bunch of global stars, like Justin Bieber, that are on the Irish charts right now. Have you found any music that the cows and the lambs do not like?

Padraic:        I suppose we just have this Brendan O'Dowda, Percy French's songs with Brendan O'Dowda, and it just continuously plays. There are about maybe 20 songs in the list, and they just keep playing. I suppose the animals get familiar with the sounds and the different — the voice is the same with Brendan O'Dowda. I wouldn't like to be changing to different artists because their voices can be sharp or different. I feel that the animals wouldn't get as attached to it, if you know what I mean. It's a particular type of music.

                     Now, young people might say, "You're silly. This is not for real," but it is actually. It is. We had RT on the farm here and we were slaughtering the animals, and they couldn't get over the animals, how relaxed they were in the abattoir just before they were killed. There was no stress. It's completely different. It's amazing. Over a period of months, they're familiar with it and it's not spooking them.

Brian:           Yeah, and it seems like this is something that has bled all the way into your relationships with the consumers and your customers, that there needs to be consistency of the final quality of the product and there needs to be consistency in the music or the rhythms for the animals themselves, to keep that going from beginning to end.

Padraic:        Absolutely. If I brought in different music, like rock music or whatever, it would spook the animals. It wouldn't be common for them.

Brian:           Yeah. Moving on to the fourth way to de-stress your business, it really revolves around taking care of your environment and, really, the whole supply chain. We know customers would like to be conscious of where their food comes from and not only how the animals are treated but the environment and how it can impact them. That's going to be a big challenge, and it's going to continue to be a big challenge, but I understand that Gilligan's Farm aims to be carbon neutral within ten years. Can you tell us a little bit about the plan? And probably just more importantly, why does this matter to you?

Padraic:        Well, it matters. I have grandchildren, and I'd love to see them in (the) environments where I grew up, going back 70 years ago, where things on farms were very simple. For instance, if you go out and plough the land, you can see the worms. They're there visually. You can see them in the ground. I feel, over the years, that was lost with different ways of getting rid of slurry and all that, spreading those in the wrong times of the year, when the worms are, I suppose, coming up in the springtime of the year now.

                     I remember, going back years and years ago, when slurry was a new thing, and when you spread it, you'd see seagulls in the field the following morning. My God, it's an awful sight to see, because you have worms killed by the thousands, which is frightening, really. I suppose, over the years, we always used straw bedding for animals. We're bringing that back out on the land, and it's actually good for the nutrients and it's good for the clay and to bring the worms back. If we plough a field now, we see hundreds of worms in a small area. It's very rewarding when you see that.

                     I suppose, going back to your point, the environment has to be minded, especially now, because with the climate, it has really changed in Ireland. We're getting periods of really dry weather and periods of really wet weather, and that is very stressful — especially on farmers with crops, saving crops and all that. So, we have to respect the environment. We have a program now where we grow trees, hectares and hectares of trees, to enhance the carbon.

Brian:           Yeah, so looking at the concept of how do we make sure we have nutrients in the soil, how do we make sure that we have even the basics, like worms in the soil, but then how do we look at things like planting trees and revitalizing or keeping carbon at the forefront of what's going on.

I really like what you said previously, though, because I think it wraps into this concept of succession that you're thinking of — "Hey, when I have my grandkids and my great-grandkids, I want to make sure the land works well for them." That's almost the first step in a succession plan where you're helping out your son, Alan, in his taking over of the business.

Padraic:        The land will always be there to feed the people, and to have it in good shape, I think, is very important.

Brian:           Yup. Finally, bringing this all to a close, I've been on your website. It's a beautiful website, by the way. The meat looks delicious. I saw just some of the cuts on there. It looks amazing. What website do people need to get to to buy the meat? How do they get access to this?

Padraic:        We have a click-and-collect. We also do a door-to-door delivery in Dublin. We started this about six months ago, when the lockdown came. People in Dublin would be ringing and wondering could they get meat, so we started this online shop. It's actually very successful. Our biggest problem is deliveries. I'd be a stickler on doing the job ourselves, so we deliver ourselves. I know it's time-consuming, but when people order meat and they pay for it online, we deliver to them, and we make sure that they get it when they're supposed to get it.

Brian:           Yeah. That's fantastic. Well, the website, I see here, is gilligansfarm.ie. You guys do deliver. You accept payment online. You do have an in-person store, but yeah, the challenge of delivery. COVID, in some ways, has really challenged us to be innovative, and it sounds like you guys are quickly adapting to the times and finding it challenging.

Padraic:        You just have to change with the times. People like Jamie Oliver in Dublin — we supply Chapter One, all those places where people would be going there to eat, (and) all those restaurants were closed. Suddenly, those people that love our meat were ringing, wondering: where could they get it? This is how that started.

Brian:           If there's an additional point of ways to de-stress, it certainly would be (to) change with the times. Be flexible. To sum up some of the things I've heard, I've heard, really, four specific ways to de-stress your business. The first would be have a succession plan, eliminating the fears of, "Does this all depend on me? What happens after I leave the business?" And you've put in that place with Alan, currently. The second thing seems to be (to) educate your customers clearly. If that means bringing the product to them, making sure they understand the value of it and how to handle it — particularly chefs and cooks — that's very important.

                     From the music end of things, the third way I heard to de-stress the business was keep your business fun and productive. It eliminates the concern of burnout. It keeps the animals consistent every day and keeps that consistent all the way from the farm to the fork, at the forefront of what's being done. Last but not least, de-stressing the business by taking care of your environment in the supply chain. You're just addressing concerns of, "Will there be enough resources? Can I look for my grandkids and great-grandkids to still have a good environment?" And just being part of the solution and not the problem.

Padraic:        Yeah, that's it. Just play your part as you go along. That's it.

Brian:           Padraic, you've given us a ton to think through. Really, I've been fascinated to talk to you and hear more about your business. Padraic, thank you for being on the AgFuture podcast.

Padraic:        Thank you very much, and thank you for having us. It's a pleasure.

Brian:           This has been Ag Future, presented by Alltech. Thank you for joining us. Be sure to subscribe to Ag Future wherever you listen to podcasts and leave a review if you enjoyed this episode.

As part of Alltech’s effort to provide valuable resources to colleagues, customers and the global agricultural community confronting COVID-19, the company has created a special discussion series, Forging the Future of the Farm & Food Chain. Available online beginning today, this free, on-demand series features experts from around the world as they share their insights into how the global pandemic is affecting the agriculture industry’s present and future.

“Crises illuminate character, and COVID has highlighted the heroic work undertaken by the global agriculture community to ensure a secure food supply in the midst of such uncertainty,” said Dr. Mark Lyons, president and CEO of Alltech. “We created this series as an expression of our support for this community. In addition to offering valuable information and insights in the context of this COVID challenge, we hope to deliver inspiration — we have an opportunity in this moment to, together, shape the future of the farm and food chain.”

The series consists of presentations from Lyons and three panel discussions with experts including David McWilliams, economist and professor at Trinity College Dublin; Jessica Adelman, CEO of ESG Results and former executive at Kroger; Jack Bobo, futurist and CEO of Futurity; and Ryan Quarles, Kentucky Commissioner of Agriculture.

Forging the Future of the Farm & Food Chain, a special COVID-19 discussion series, includes:

• Cultivating Optimism & Opportunity: Leadership in Times of Crisis

In times of crisis, leadership becomes even more consequential. How can leaders bring certainty in a time of uncertainty? How can they help their teams think proactively in order to discover opportunity and drive innovation? 

Dr. Mark Lyons, president and CEO of Alltech, explores how a leader can shape a culture of resilience that empowers a team, even during times of turmoil.

• From the Frontlines of Food Production

The COVID-19 crisis has brought renewed attention to not only the critical importance of food production, but also to the people on the frontlines who work tirelessly to ensure we have food on the table. This panel discussion takes a first-hand look at the experiences of those working within the food/feed sector in the midst of COVID-19.

The panelists are global Alltech team members Matt Kwok, China operations manager; Sayed Aman, India managing director; Andrea Capitani, Italy business manager; and Alex Galipienso, Spain general manager. The panel is moderated by Michelle Michael, Alltech media producer.

• The Post-COVID Consumer: A Remaking of the Market?

Consumer trends are constantly evolving, but post-COVID, will the market see another seismic shift? This panel discussion features an investigation into the lasting impact COVID-19 could have on consumers and the global economy.

Moderating the panel is Damien McLoughlin, professor of marketing at University College Dublin, with panelists David McWilliams, economist and professor at Trinity College Dublin; Jessica Adelman, CEO at ESG Results and former executive at Kroger; and Jack Bobo, futurist and CEO at Futurity.

• Keep Calm & Carry On: The Essential Business of Agriculture

In this panel discussion, experts investigate how the current crisis is reshaping the agriculture sector. What permanent changes could COVID-19 create in how we source, produce and deliver food to market? Will there be a new appetite for automation and supply chain provenance?

Mary Shelman, former director of Harvard Business School's Agribusiness Program, moderates panelists John Young Simpson, president of Bluegrass Partners in Singapore; Ryan Quarles, Kentucky Commissioner of Agriculture; Mike Osborne, former president and CEO of Nutra Blend; and Kayla Price, technical manager of Alltech Canada.

• Planet of Plenty in a Post-COVID World

In the midst of this COVID crisis, the global agriculture community has carried on its essential work — rising with the sun no matter the circumstance. We have provided the security of certainty at a time of great uncertainty and, in doing so, have reshaped the perception of our industry and perhaps even the way we view ourselves. 

Dr. Mark Lyons, president and CEO of Alltech, shares his thoughts on how we can create a world of abundance post-COVID. How will we harness this renewed trust? Will the experiences of this time usher in a new approach to the ways in which we produce food, structure our supply chains and connect with consumers?

To access the Forging the Future of the Farm & Food Chain series on-demand, visit alltech.com/futurefarm. As Alltech has been closely monitoring the COVID-19 pandemic, an online COVID-19 resource portal has been created for customers and industry partners. 

This COVID-19 special series reflects the insightful, thought-provoking content that will be available as part of the Alltech ONE Virtual Experience beginning on May 18, 2020. The virtual program will include live-streamed keynote presentations and on-demand video content from some of the world's leading industry experts as they address the challenges and opportunities facing agriculture today. Learn more about the ONE Virtual Experience and register here.    

Development of more rumen-friendly rations to mitigate both environmental and physical feed waste can be achieved with Alltech IFM, a unique tool to support diet formulation

[DUNBOYNE, Ireland, and SHROPSHIRE, U.K.] – Global animal nutrition company Alltech has launched its first European-based in vitro fermentation laboratory, Alltech IFM™, in collaboration with Harper Adams University in the U.K. Alltech IFM is a nutritional tool that simulates rumen fermentation and evaluates the digestibility of feed and forages within the animal.

For farmers and feed manufacturers, the use of Alltech IFM can identify barriers to achieving optimal rumen function. It enables rations to be formulated based on nutrient availability, helping to reduce energy losses and feed wastage.

Feed samples, which can include concentrates, fresh forages, silages or total mixed rations (TMRs), are incubated using rumen fluid for 48 hours and are then analysed for volatile fatty acids (VFA) and microbial biomass. Alltech IFM measures gas production throughout the process, meaning the amount of energy lost as methane and methane emissions per animal can be calculated. Validated by the Carbon Trust, Alltech IFM is an effective tool for predicting farm- and feed-specific enteric methane emissions.

Based at Harper Adams University in the U.K., this laboratory represents Alltech’s seventh IFM facility globally.

“The introduction of our Alltech IFM lab in Europe marks a significant step forward for us as we now have the ability to analyse European-based diets and ensure our customers benefit from further technical support,” said Matthew Smith, vice president of Alltech. 

The collaboration further strengthens Alltech’s research alliance with Harper Adams University, which was formed in 2013.

“Having the Alltech IFM lab at Harper Adams allows us to undertake more fundamental studies in terms of ruminant nutrition and ruminant metabolism so that we can optimise rumen fermentation and, therefore, improve animal health, performance and longevity,” said Professor Liam Sinclair of Harper Adams University.

“The goal of looking at rumen fermentation with Alltech IFM is to minimise the waste product or minimise the gas production and to maximise VFAs and microbial biomass, which are critical nutrients to the cow,” added Dr. Jim Huntington of Harper Adams University.

“Together with the team at Harper Adams, we look forward to generating new insights and highlighting how certain diets correlate with high-producing dairy and beef systems across Europe. Now more than ever before, we believe Alltech IFM can play a significant role in helping to address those major environmental concerns, reduce waste on-farm and, ultimately, contribute to a Planet of Plenty™,” said Smith.

The 2020 Alltech Global Feed Survey estimates that international feed tonnage decreased by 1.07% to 1.126 billion metric tons of feed produced last year, due largely to African swine fever (ASF) and the decline of pig feed in the Asia-Pacific region. The top nine feed-producing countries are the U.S., China, Brazil, Russia, India, Mexico, Spain, Japan and Germany. Together, these countries produce 58% of the world’s feed production and contain 57% of the world’s feed mills, and they can be viewed as an indicator of overall trends in agriculture.

Dr. Mark Lyons, president and CEO of Alltech, shared the survey results via public livestream from Alltech’s global headquarters in Nicholasville, Kentucky.

“2019 presented extreme challenges to the feed industry, with one of the most significant being African swine fever. The regional and global implications are reflected by the Alltech Global Feed Survey and the decline in global feed production, said Lyons. “While pig feed production is down in affected countries, we are noting increased production both in other species as producers work to supplement the protein demand, and in non-affected countries as exports ramp up. The damage caused by ASF will have long-term implications, and we expect that the top protein sources will continue to shift as our industry adapts to the shortage.”

The global data, collected from 145 countries and nearly 30,000 feed mills, indicates feed production by species as: broilers 28%; pigs 24%; layers 14%; dairy 12%; beef 10%; other species 6%; aquaculture 4%; and pets 2%. Predominant growth came from the layer, broiler, aqua and pet feed sectors. 

Regional results from the 2020 Alltech Global Feed Survey

• North America: The U.S. is the largest feed-producing country globally with an estimated 214 million metric tons (MMT), with beef (61.09 MMT), broilers (48.525 MMT) and pigs (44.86 MMT) as the leading species. North America saw steady growth of 1.6% over last year. Canada produced 21.6 MMT with pigs (8.23 MMT), broilers (3.25 MMT) and dairy (4.2 MMT) leading species feed production.

• Latin America: As a region, Latin America saw 2.2% growth to 167.9 MMT. Brazil remained the leader in feed production for the region and third overall globally, with the primary species for feed production being broilers (32.1 MMT) and pigs (17.0 MMT). Brazil, Mexico and Argentina continue to produce the majority of feed in Latin America with 76% of regional feed production.

• Europe: Europe remained relatively stagnant with a slight increase of 0.2% over last year. The top three feed-producing countries in Europe are Russia (40.5 MMT), Spain (34.8 MMT) and Germany (25.0 MMT), with pig feed production leading the way in all three countries. The ruminant sector was hit the hardest as both dairy and beef numbers are estimated to be down by 4% and 3%, respectively. This was offset primarily by strong growth in the aqua (7%) and layer (3%) industries.

• Asia-Pacific: The Asia-Pacific region saw feed production decrease by 5.5% in 2019, primarily due to African swine fever and large declines in pig feed production. China’s feed production declined by almost 20 MMT of feed overall to 167.9 MMT and fell from the top feed-producing country globally to second, behind the U.S. India and Japan remained in the top nine feed-producing countries, with similar production compared to 2018 with 39.0 MMT and 25.3 MMT, respectively, while Vietnam declined by 7%.

• Africa: Africa continued strong growth with a 7.5% increase in overall feed production, with all the primary species seeing positive growth. The top five feed-producing countries in the region account for 75% of Africa’s feed production, and they are South Africa, Egypt, Nigeria, Morocco and Algeria. The region’s primary species include broiler, layer and dairy, and combined, they account for nearly half of feed production estimates in the region.

Notable species results from the 2020 Alltech Global Feed Survey

• Pig feed production was greatly impacted by African swine fever, with an 11% decrease. The primary producing region for pig feed remains Asia-Pacific, but it also experienced the largest decline of 26%, with China (-35%), Cambodia (-22%), Vietnam (-21%) and Thailand (-16%) experiencing large decreases. Europe, North America and Latin America remained relatively stable compared to last year, within a percentage point’s worth of gain or loss. While Africa is a small region from a tonnage standpoint for pig feed, it showed a large increase of 29%.  

• In the poultry sector, Asia-Pacific is the leader in both broiler (115.2 MMT) and layer (73.1 MMT) feed. In Latin America, total broiler production amounted to 60.8 MMT, with Brazil leading the region with 32.1 MMT followed by Mexico with 10.5 MMT, while Mexico’s layer feed production increased by 11% to 7.05 MMT and surpassed Brazil. Russia leads Europe with 10.86 MMT of the total region’s 56.3 MMT of broiler feed and 5.3 MMT of the region’s total of 33.5 MMT of layer feed. In North America, the U.S. accounts for 94% of the broiler feed with 48.5 MMT, while layer feed in Canada increased by 460,000 metric tons. 

• Europe leads global dairy feed production with 34% followed by North America (21.8%), Asia-Pacific (17.6%) and Latin America (15.3%). The top dairy feed- producing countries are Turkey (6.5 MMT), Germany (5.2 MMT), Russia (4.2 MMT), the U.K. (3.8 MMT), France (3.4 MMT), the Netherlands (3.3. MMT) and Spain (3.2 MMT).

• North America continues to lead global beef feed production with 62.3 MMT, followed by Europe (21.9 MMT) and Latin America (13.9 MMT). For the 2020 Alltech Global Feed Survey, the beef feed production estimation was recalculated to improve its accuracy. The new estimate takes into account the average days on feed and intake as a percentage of body weight in the feedlot. Last year’s estimation was also recalculated to reflect this formula change for a proper year-on-year comparison.

• Overall, aquaculture feeds showed growth of 4% over last year. Per ton, Asia-Pacific grew the most with an additional 1.5 MMT. The primary contributors were China, Vietnam and Bangladesh. Europe’s decrease is in large part due to decreased feed production in Russia, which is primarily due to an increase in imports.

• The pet food sector saw growth of 4% with the largest tonnage increases in Asia-Pacific (10%), Europe (3%) and Latin America (6%). By country, increases were seen in China, Indonesia, Portugal, Hungary, Ecuador and Argentina. 

During the live presentation, Dr. Lyons was joined by a panel of industry experts, including Jack Bobo, CEO, Futurity, USA; Matthew Smith, vice president, Alltech, U.K.; Bianca Martins, general manager, Alltech, Mexico; and Brian Lawless, North America species manager, Alltech, USA. The group discussed the trends behind the data and the implications for the global market. Topics ranged from consumer demands to the adoption of new technology.

To access insights from the 2020 Alltech Global Feed Survey, including a recording of the panel discussion, an interactive map and presentation slides, visit alltechfeedsurvey.com.

The Alltech Global Feed Survey assesses compound feed production and prices through information collected by Alltech’s global sales team and in partnership with local feed associations in the last quarter of 2019. It is an estimate serving as a resource for policymakers, decision-makers and industry stakeholders.

WHAT:            Join Dr. Mark Lyons, president and CEO of Alltech, as he shares the results of the ninth annual Alltech Global Feed Survey during a panel discussion with industry leaders. The presentation will be livestreamed from Alltech’s global headquarters in Nicholasville, Kentucky. 

                        Panelists include:

• Jack Bobo, CEO, Futurity, USA
• Bianca Martins, General Manager, Alltech, Mexico
• Matthew Smith, Vice President, Alltech, UK

Alltech’s annual evaluation of compound feed production is the most complete of its kind, including data from more than 140 countries and approximately 30,000 feed mills, covering all species of production animals. The presentation will highlight trends in feed production at a regional level, key insights for specific countries, what changes the industry may expect within the next year and looking beyond the data to explore the impact on farmers, the feed industry and the regions in which they operate.

WHEN:            Monday, Jan. 27, 2020

                        10:00 a.m. EST                      

WHERE:         Register for the livestream presentation here.

OTHER:           Information from the 2019 Alltech Global Feed Survey is currently available online at alltechfeedsurvey.com and will be updated with 2020 information following the livestream presentation, including a video recording of the presentation.

[LEXINGTON, Ky.] – The past year has been one of the most challenging years in recent memory for corn farmers across the Midwest due to excessive rainfall, which has resulted in delayed and/or prevented planting in many areas. Extreme weather conditions and moisture levels can reduce yields and induce plant stress, and they can also lead to future issues for the crop, including molds and mycotoxins. Increased moisture can allow Fusarium molds to flourish, producing a variety of mycotoxins that include deoxynivalenol (DON), fusaric acid, T-2, HT-2 and zearalenone (ZEN).

Mycotoxins are a concern for livestock producers, as they influence feed quality and animal safety. They are produced by certain species of molds and can have toxic properties that impact animal health and performance. Samples of the 2019 corn silage from across the U.S. are currently being submitted to the Alltech 37+® mycotoxin analytical services laboratory, and analysis is indicating the presence of high levels of mycotoxins.

The samples have included an average of 7.13 mycotoxins, with a range of 2 to 14 mycotoxins per sample. In 86.6% of the samples, DON was present; 99.5% contained fusaric acid; and 94.1% tested positive for emerging mycotoxins, including beauvericin, moniliformin, enniatins, phomopsin and alternariol. These emerging mycotoxins will add to the risks potentially affecting rumen function, gut health and immune response. A point of interest is that ZEN was found in 48.9% of the samples and has become increasingly prevalent over the past two years.

“These levels of mycotoxins found in the 2019 crop are significantly higher than the average values,” said Dr. Max Hawkins, nutritionist with the Alltech® Mycotoxin Management team. “Livestock producers across the U.S. should test their own corn silage to identify the levels of individual mycotoxins and the subsequent risk present to livestock health and performance.”

Mycotoxins are seldom found in isolation, and when multiple mycotoxins are consumed, they may have additive — or even synergistic — interactions that increase the overall risk to performance and health. As a result, an animal may have a stronger response than what would be expected if it was only experiencing a single mycotoxin challenge.

Alltech will host a United States Corn Silage Report webinar with Dr. Max Hawkins on Tuesday, Dec. 17, 2019, at 2:30 p.m. EST. Register for the webinar via this link.

For more information on mycotoxin management, visit knowmycotoxins.com.