SWITZERLAND- The global purpose-led science-based company, Royal DSM, confirms that it is resuming its Rovimix Vitamin A production in Sisseln, Switzerland.
In November 2022, the company announced the temporary cessation of Vitamin A production at its site in Switzerland and a possible reduction of its Vitamin E production.
During the announcement, the company cited a challenging cost environment in Europe, and only an increase in the prices of its high-quality vitamin A could justify continued production.
Therefore, the company chose to halt the production of vitamin A, fulfilling its then-existing contracts and using the break to restructure its operations.
Commenting on the company’s 2022 financial reports, Geraldine Matchett and Dimitri de Vreeze, co-CEOs of Royal DSM, said that pricing actions were necessary to counter higher costs, especially in Animal, Nutrition & Health.
DSM is committed to the sustainable production of the highest quality feed additives, including the longstanding Rovimix product range. However, this restarting will involve price actions to counter the high production costs and ensure the company’s profitable growth.
Nevertheless, restarting production will allow DSM to serve its loyal customers with animal nutrition premix solutions as the company strategically plans for further development of the Vitamin A line later this year.
The challenging cost environment cited in 2022 and caused by high energy costs, expensive raw materials, and process material costs, could continue in 2023.
However, the ongoing geopolitical and economic turbulence highlights the importance of maintaining a resilient vitamin supply which plays a critical role in food security. The delivery of vitamins to feed manufacturers is worth the cost.
Contributing to a growing market
DSM is revamping vitamin A production in Switzerland at an advantageous time as the market grows.
A recent report by Research Dive predicted that the Animal Feed Micronutrient Market will reach US$3.3 billion by 2031, growing at a CAGR of 7% from 2022 to 2031.
A massive global population needs a steady supply of safe and plentiful animal proteins, which depends on the quality of the animal feed, of which feed additives (minerals and vitamins) are a contributing factor.
Vitamins are vital, irreplaceable micronutrients necessary for growth, body development, reproduction, and healthy physiological processes.
According to the Research Dive report, animals frequently suffer from vitamin deficiencies, thus driving the demand for vitamins up and leading to growth in the micronutrient market.
Moreover, the Research Dive report predicted that there would be a lot more activity among major players in the feed additives industry as the industry sees more investment in production and utilization of technology to develop new products.
DSM is a major player in this additives industry. Despite production challenges, this Dutch company is willing to contribute to the market growth as it restarts its Vitamin A production in Switzerland.