12/06/14: Berg + Schmidt puts its faith in the vigorously expanding market for feed additives

The feed ingredients specialist reports stable development in 2013 - investments and international expansion safeguard the future of the family business - applications research and development have top priority for growth

Hamburg-based Stern-Wywiol Gruppe, of which Berg + Schmidt is part, achieved turnover of 400m euros in 2013. The group has thus stabilized at a high level of development following recent growth rates of 20 per cent. Thanks to considerable investments in research and development and the expansion of its international activities the enterprise is excellently positioned in the growing market for feed and food ingredients. At 850, the number of persons employed by the group also remained unchanged in 2013.

The Stern-Wywiol Gruppe consists of eleven independent specialist companies that develop, produce and distribute functional ingredients for food and animal nutrition. In addition to Berg + Schmidt these include internationally renowned firms such as Hydrosol, Mühlenchemie, SternMaid, Sternchemie, SternEnzym and Herza Schokolade. Each of the companies has specific competence in a particular field. Berg + Schmidt stands for rumen-protected fat powders, enzymes, lecithins, conjugated fatty acids and medium chain fatty acids and esters.

A flexible family business as a model for success

A flexible structure is the basis for the high innovative power and successful development of the family business. “In the market for food and feed, which is expanding worldwide, our advantage over the major corporations lies in providing advice on applications, our closeness to the customer, individual product solutions and a high level of mobility on the part of our employees”, says Torsten Wywiol, who manages the holding company as its CEO.

Synergies in applications research

The Research and Development Department (R&D) forms the heart of the group, where the various ingredients divisions pool their expertise under one roof at their own Technology Centre. On the outskirts of Hamburg, over 70 applications technologists and research scientists develop the solutions of tomorrow. Last year the group invested seven million euros in extending the R&D facilities. Apart from expanding the lipids laboratory, a new enzymes lab was set up. This is an excellent framework for helping animal nutritionists to improve their products with added essential substances and to launch new product concepts on the market.

“Berg + Schmidt subjects its feed additives to ongoing practical trials and institute-based tests to confirm their functionality and efficacy. In this sphere Berg + Schmidt works closely with a number of universities in Europe - as well as in the USA and Asia”, says managing director Andreas Reith.

International expansion

With an export share of 85 per cent the eleven specialist firms supply customers in over 100 countries. They are supported by 16 foreign affiliates, some of which have research and production capacities of their own. As far as the feed sector is concerned, four production facilities are located in India, two in Malaysia and one each in Singapore and Thailand. Last year’s opening of the new production units in Singapore and Malaysia for deoiled lecithin and palm oil fractions used in the production of rumen-protected fat powders represented milestones in the group’s international expansion process. “This increase in production capacity for fat powders came at exactly the right time as it will allow us to satisfy growing global demand for Bergafat products. Full working capacity at the lecithin de-oiling production facility in Singapore will only be achieved during the course of 2014, so in the meantime there may be some small bottlenecks in the supply chain”, remarks Andreas Reith.

The group continues to pursue its international course. From its base in Chicago, Illinois, the affiliate Berg + Schmidt America, for example, is continuing to expand the rumen-protected powdered fats and feed additives business. Pig fatteners have been especially receptive to the firm’s promotion of new applications for CLA products.

Thanks to the many strategic investments, Torsten Wywiol is confident that a successful future awaits the company in the long term. The CEO was not willing to give a sales forecast for the current financial year. “As an enterprise operating internationally, we are dependent on political stability in our target markets. This was not always the case last year in many important regions like Africa, South America and Russia, so it is difficult to make any predictions. But certainly the global market for “convenience” foods and animal feed will continue to grow. In feed alone, the world market is estimated at ten trillion USD. We operate in a segment with a future, in which we will continually enhance the services we offer. As a family business we are not looking for short-term returns.”

 The Global Miller
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