That’s according to Eduardo Lopes Alberto of Trouw Nutrition, Nutreco’s livestock feed division (see box for full bio). We spoke to Alberto to find out more about the story of the livestock industry and why innovation requires more than a company’s ability to make things cheaper, better, and faster.
Let’s first ask ourselves: Are we innovative enough in this area?
“Agriculture has made remarkable progress thanks to innovation. However, agriculture is also considered a conservative field compared to other fields. They may even operate in survival mode when unfavorable events occur, such as extreme imbalances in their systems.At the same time, they realize that new “promising” technologies are emerging. Some of this may turn out to be snake oil (technology or applications that don’t live up to the hype or simply don’t work), which can erode trust and the willingness to adopt new things. there is. Second, being in the feed-to-food business means there are many regulations in place regarding what can and cannot be used. And third, we are dealing with many variables, including live animals, weather, feed sources, management styles, and regional factors. Therefore, it can be difficult to directly translate all research results to any type of commercial environment around the world. If tested only in a controlled environment, farmers are understandably hesitant to see the benefits right away. It can be said that each farm’s situation is unique. ”
Does this mean that a better, cheaper, faster approach is too narrow?
“The classic definition of innovation is certainly making an existing product or solution better, faster and cheaper. This certainly applies to agriculture and is what Trouw Nutrition has been working on for many years. For example, the milk replacers and premixes we sold 40 years ago are different from the products we sell today because of continuous improvements in formulation, ingredient selection, and research. As a result, they are stronger and more cost-effective. But innovation in agriculture is also a long-term focus, requiring us to meet future challenges, operate in volatile markets, and produce more with less. Cheap isn’t always about it. I believe that in the future all farms will be highly sustainable, good for animal welfare and health, cost effective and highly automated. In some regions, this is already a practice today; in others it is not yet. Decades from now, “farms of the future” will be the norm and widespread. It is up to us to understand what the market needs to grant agricultural permits in 2050 and beyond. This is why I love a quote by American writer William Gibson that he once said: The future is already here, it’s just not evenly distributed. This is certainly true in agriculture. The market is fragmented and not all regions are progressing at the same pace. But ultimately, we are all moving in the same direction. ”
What does this mean for Trouw Nutrition’s portfolio?
“Nutritional solutions are, and will continue to be, critical to the success of our customers’ businesses. Nutrition and formulation expertise is the backbone of our company. But what’s next in our approach to nutritional product innovation? , we must also drive digital transformation. Because when the market demands digitization, we must follow. There is no better time to do this than now. Artificial Intelligence (AI) is a truly revolutionary technology that disrupts all kinds of existing products and businesses. Take Microsoft, for example. Over the past few decades, they have incrementally improved their software packages. Excel got a little smarter, Word got a little faster, PowerPoint got a little prettier, and then AI came along to transform Microsoft solutions faster and take them to a whole new level. Did it happen overnight? No. Over the past few years, Microsoft has made things more cloud-based, some integrations on the backend, etc. A commitment to innovation, preparation, and advancement will help them succeed with AI when the opportunity arises. They’ve created the perfect environment. The years and resources they’ve spent integrating AI will give them a competitive edge and expertise. They’ve seized the opportunity well. Trouw Nutrition must do the same. For example, if we want to be a leader in gut health solutions, we have to prepare for that, for example, we need to make sure we build a great group of experts on the microbiome. If you’re going to do it, you need to have a good data team, collect high-quality farm-related data points in a consistent way, and be able to build AI models that others don’t have. Right in front of you. You don’t have to wait too long to seize the opportunity. We are already a data-intensive business and that’s great, but we also need to be smart about automating things and monetizing our data. In this way, we can not only achieve greater cost efficiency, but also much faster.”
Can I work as a feed company and an IT/agtech company at the same time?
“The number and speed with which new technologies are coming to market today is astonishing. Trouw Nutrition is known for being very innovation-minded and committed to continuous improvement. Given the speed and pace of other technologies, we need to change and evolve even faster to stay ahead and remain relevant to our customers. And change is good. In fact, our customers wants us to evolve and grow with our customers, which builds trust and commitment to prepare for the future. Our customers need us now more than ever, including when it comes to sustainability. In recent years, we have invested well in the development of digital tools, including the upgraded MyNutriOpt web-based portal, providing access to a suite of digital services including sustainability tools such as MyFeedPrint and MyMilkPrint. The reputation of our existing brands and our strong relationships with customers help us drive adoption of these new solutions we bring to market. That’s why we can be a nutrition and digital solutions provider at the same time. But this thinking also requires building partnerships to fill knowledge gaps: What are other companies (non-agriculture companies) doing with AI applications and data? What can we learn from the human field on specific topics such as the microbiome, functional feeds, and disease prevention? We have the talent and the knowledge to translate this (including all the nuances and variables involved). And there are many universities around the world who are also working on the same livestock issues as we are. We have always had great academic partnerships. This is an important part of our innovation culture.”
Are you positive about the outlook for the animal protein market?
“It’s really interesting to see how the story around animal protein has changed over the past 10 years. Many young people are not directly involved in agriculture and don’t even know who farmers are, but their interest in food and health is increasing. More people are considering animal protein as a healthy part of their daily diet, and they are becoming more knowledgeable about farming methods and where their food comes from. The Poultry, Dairy and Pork Association is changing the narrative. And this is especially the case in developing markets. I believe in a world where everyone can make their own choices, whether they’re a vegetarian or a vegetarian. But it’s good to see that animal protein is making a bit of a comeback and is starting to thrive after years of harsh criticism. Of course, we still have many challenges to overcome. But overall, I’m very optimistic about this space and the drive to add more positive stories (with data!) to the narrative. . And this all starts with a commitment to innovation.”
