The Future is Bright for Digestive Ingredients in Animal Feed, Says Frost & Sullivan

LONDON, August 26, 2010 - Digestive ingredients have long been used as productivity enhancers in
animal husbandry systems. Growing acceptance of new products such as
prebiotics and phytogenics within the market for more mature ingredients like
enzymes and probiotics is providing momentum to the European market for
digestive ingredients in animal feed.

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New analysis from Frost & Sullivan (www.food.frost.com), European
Market for Digestive Ingredients in Animal Feed, finds that the market earned
revenues of $455.5 million in 2009 and estimates it to reach $802.0 million
in 2016. The following product segments are covered in this research: feed
enzymes, feed probiotics, feed phytogenics and feed prebiotics.

"The future of the European digestive ingredients in animal feed market
is bright thanks to the indispensable nature of these products in boosting
animal productivity," notes Frost & Sullivan Senior Research Analyst, Dr.
Kaushik Ramakrishnan Shankar. "The importance of reducing costs in animal
husbandry systems cannot be underestimated and the clear advantage of using
these ingredients should be communicated to end users."

This potential of digestive ingredients in animal feed functioning as
cost-effective productivity enhancers is set to support market expansion.
However, price pressures remain on most products in the segments across
different target species. Yeast products and silage inoculants, for example,
have become commoditised with greater negotiating power vested with
consumers.

Becoming commoditised, or having a large number of manufacturers in a
single segment, causes price pressures. The yeast segment is illustrative of
this trend.

"With the maximum activity in terms of suppliers, value added product
manufacturers and traders in this segment, it has become highly competitive,"
explains Dr. Shankar. "Innovation and sizeable outlays on research and
development help distinguish market leaders from their competitors in this
segment."

Manufacturers can confront price sensitivity by using various strategies
to reduce production costs. In addition, strong distribution partnerships
with other companies will enable manufacturers to retain their market share.
Innovation in handling industrial compound feed production will propel the
market.

"Strategic relationships between manufacturers should be aimed at
synergising their strengths and overcoming the weaknesses of the individual
companies," remarks Dr. Shankar. "Such alliances have been successful for the
largest companies operating in this segment, and could be replicated by other
participants."

If you are interested in more information on this study, please send an
e-mail to Monika Kwiecinska, Corporate Communications, at
monika.kwiecinska@frost.com, with your full name, company name, title,
telephone number, company e-mail address, company website, city, state and
country.

European Market for Digestive Ingredients in Animal Feed is part of the
Food and Beverage Ingredients Growth Partnership Services programme, which
also includes research in the following markets: European Eye Health
Ingredients Market, U.S. Omega-3 and Omega-6 Markets, European Heart-Health
Ingredients Market, European Prebiotics Market, U.S. Digestive Health
Ingredients Market and European Digestive Health Ingredients Market. All
research services included in subscriptions provide detailed market
opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

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         European Market for Digestive Ingredients in Animal Feed
                              M55C

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

www.frost.com

Monika Kwiecinska, Frost & Sullivan, Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com