Phytobiotics Futterzusatzstoffe GmbH’s managing director Kurt Wegleitner outlines strategies to balance growth and sets sight to achieve a Net Zero emission organization Feed & Livestock recently had an exclusive interview with Kurt Wegleitner, the new managing director at Phytobiotics Futterzusatzstoffe GmbH. Mr Wegleitner shared his views on balancing growth and sustainable businesses, new investment opportunities, and keeping the business operating seamlessly in a hostile geopolitical environment amid unpredictable logistics and soaring raw material costs. Last but not least, he also shared his ideas on team building to better serve customers in international markets and truly become a global, local player.
New capacities and leadership
As a new leader, what is your burning agenda to keep the growth momentum or accelerate the growth in short and medium term?
First of all I have to say that I am very honoured to have been offered this important role in such a dynamic and successful company. Ever since its beginning in the early 2000s, Phytobiotics Futterzusatzstoffe GmbH has become a trailblazer in the development and application of phytobiotic feed additives. The mindset in our group is quite optimistic and entrepreneurial and hence we see good growth opportunities also in the future.
Right now, there is a global network of Phytobiotics entities. I see it as my duty to strengthen our network in the regions and to widen our product range. As such, I believe in the evolution of the company and our products rather than in a revolution in our activities.
As an industry veteran in acidifiers, are you looking to include acidifiers in Phytobiotics portfolios to offer a comprehensive gut health package?
The product range today consists of phytogenics (Sangrovit), organic trace elements (Plexomin), natural sources of Vitamin D (Active D), flavours and sweeteners (Miracol and Bigarol) and also a colostrum based feed additive (Immunemilk). We believe that this product range is innovative and fit for the future. In addition, our R&D department is coming up with new product ideas constantly and hence our innovation pipleline is full of projects. Acidifiers are working very well with our existing product range and hence we can not rule out to invest in this product group. Lets stay curious and see what will come next.
What are your growth strategies via – organic, acquisition or collaborations?
It is our strong believe that our product range needs to be based on science. Whether this know how is generated by our team or sourced from our global network is of minor importance to me. We are always open to new ideas and opportunities.
At the same time, I have to say that I have joined a successful and very motivated team. It is important to retain the team and to find more likeminded, enthusiastic industry specialists to guarantee also the future growth of the company. And, we believe in local teams rather than in strict centristic hierarchies and such we keep building up the teams where our partners are based. We are on the way to become a real global, local player.
Are there any new S-curves on the horizon? If so can you briefly reveal?
We have finalised our investments for Immunemilk, Active D and the Plexomin product range in our site in Germany and we have just finished the production site in China. Right now, we are scaling the production up to use the full potential of the different units.
Of course, we do have more ideas for the future, however it would be too early to talk about it at this point in time.
As a rule, it can be said that we keep investing in our existing main site in Germany and we are also looking into investments in our main markets around the world.
How are you going to improve technical and marketing supports in Asia and particularly in Thailand?
As said before, we are proud of our motivated, experienced existing team. Around this team we keep looking for like-minded industry specialists in the region. We are not strict about the location of those colleagues but we care for finding the right people that fit to the team and who can offer the best service and support for our customers. And again, we are becoming a real global, local player and hence we want to grow the teams in South East Asia.
Supply chain security
How do the rising energy costs and inflation in Europe affect Phytobiotic production costs and supply chain?
In the last 3-4 years no one in our industry could complain on too few challenges in regards to the supply chain. All of the readers will remember the start of COVID, the transport crisis the shortage of raw materials and now the unseen energy crisis in combination with the war related inflation. However, evolution has told us that adapting to challenges is key to survival -and this is what we do. We make sure that we are flexible and agile in order to react fast to the ever changing environment and market conditions.
But we must not only look into the challenges in the supply chain but we must understand that our partners are facing market related problems. We know, that our products need to be state of the art and yet cost-efficient.
Is Phytobiotics looking into possibilities of investing in Asia especially in China to strengthen supply chain security. Currently how is your capacity utilization?
Yes, we do sourcing in China as well as in other parts in Asia. In China we have just finalised a new production plant which will complement our main production site in Neuendettelsau in Germany and which will support our growth strategy.
In the future we are also considering to have more production sites worldwide in order to be cost effective, close to the market and to reduce the transport related CO2 emissions as much as possible.
But, sustainability does not start or end with transport only but it is a wide field. To us, this topic is more than just a buzz word and we take the matter very seriously. By next year we are going to publish more information on this.
How the current geopolitical issues, logistics uncertainties affect your businesses?
We are not happy about the war as it first of all causing a lot of human loss, grief and destruction. In addition the war is one of the triggers of the inflation that we are seeing worldwide which makes all our lives more difficult. We do hope that the war will end soon so that the suffering end and the problems will be solved.
Due to the imminent winter and tight energy supply in Europe, how do you advise your customers to secure their inventories? Also on your side how do you manage to smooth out winter disruption?
To date we are optimistic that our production sites will be working without major challenges in the next months to come. At the same time, most our readers will agree that the recent past has shown us that we must be prepared for very short term challenges.
I guess “just in time” is a management construct of the past and the old fashioned “proper prior planning” is getting back in fashion. We believe in having a well planned safety stock is a good idea for our company as well as for our customers.
In addition I want to mention that we had invested in photovoltaic panels on the roofs of our factory in Germany already some years ago. Such, a good proportion of our electricity demand is produced locally in a very environmentally friendly way.
Also, we have built up in-house knowledge and a full product range for Biogas production. In Germany, we are one of the leading suppliers to this very important industry. Right now, we are expanding our activities in Biogas globally as we believe in a sustainable, de-centralised energy production that complements traditional methods of energy production.
How soon Phytobiotics will become a carbon neutrality and eventually Net Zero emission organization?
As said before, we are taking sustainability very serious. Becoming emissions neutral is one aspect of sustainability. As said before, already from the very beginning of our production site in Germany, on all roofs of the factory photovoltaic panels had been installed to reduce our energy needs.
Hence, our production has been awarded the seal of sustainability by the German authorities which we are very proud of.
In addition, Phytobiotics is offering a wide range of products for the Biogas industry. Those products had been launched in Europe years ago very successfully. Now we are going global with our products and expertise to help a de-centralised, carbon free production of gas and energy.
Last but not least it needs to be said that the least emissions in animal productions are generated the better we use the genetical potential of farmed animals. So, we need to go intensive rather than extensive in production if we take sustainability seriously. In the end, our actions and activities need to be rational and based on science.
Please update Phytobioics products including Sangrovit, Active D, Plexomin, Miracle and immune milk? New trials and applications?
Innovation at Phytobiotics is based on science and guided by proven competence. We are a team of scientists with diverse backgrounds. We are nutritionists, animal and agricultural scientists, biologists, and chemists. The knowledge generated over 20 years is the fundament for our future R&D. Phytobiotics invest significantly to improve the current product lines and develop new product concepts.
Current efforts in innovation aim at the development of products for liquid applications, paraprobiotics, and combinations.
In a nutshell our product portfolio spans across botanicals, organic trace elements, colostrum powder, flavors and sweeteners.
Sangrovit® is the product of choice to help your animals to overcome challenging phases and maintain feed intake throughout. Its mechanism of action is well understood and confirmed by numerous studies in multiple species and regions.
Active D is an innovative herbal product. It contains natural vitamin D glycosides and functional triterpenes which act synergistically and support top performance and strength. Thanks to a highly integrated supply chain, highest quality and standardization are guaranteed.
Plexomin® is the product line for highly stable and effective organic trace minerals. Developed to support animal health and performance. Sustainable production and lower environmental impact combined with outstanding quality make the products highly attractive.
Immune Milk ensures optimum immune programming and sustainable development of your youngstock for long-term animal fitness and productivity. The product provides new-borns with the full range of bioactive substances found in high-quality bovine colostrum.
Secured appetite
Miracol® is the flavoring solution for your feed. The products are designed to secure appetite and overcome challenges in animal nutrition.
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