Sales for the Agriculture and Feed enzyme business of Novozymes grew organically with 1% in the first half of this year, compared to the same period last year. However, sales in million DKK was 6% less for this business. This is stated in the interim report for the first half of 2016, released today.
The 1% growth was driven by strong growth in animal feed, although some of the growth was positively impacted by timing, according to Novozymes.
Sales development in the Novozymes alliance BioAg was negative, primarily due to the changed production and sales pattern of the Novozyme partner, as well as weaker demand for inoculants for soybeans in the US. Poor economics for farmers caused some to forget the inoculant treatment, resulting in the lower demand.
Outlook for the rest of 2016
Enzyme sales to the animal feed market grew strongly in the first half, driven by both protein-enhancing solutions and energy uptake products, whereas sales of phytases were flat. There is growing interest from poultry farmers to start using the new probiotic Alterion, but sales are still low. This probiotic was launched in the Q1 of 2016. This product for poultry improves feed conversion and gut health, hence reducing the need to use antibiotic growth promoters.
Novozymes in headquartered in Denmark and is with 48% market leader in the global market for industrial enzymes. Through The BioAg Alliance, Novozymes has a leading position in the market for seed inoculants.
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