{"id":9675,"date":"2025-04-08T08:48:17","date_gmt":"2025-04-08T08:48:17","guid":{"rendered":"https:\/\/www.expanamarkets.com\/?post_type=insight&#038;p=9675"},"modified":"2025-04-09T12:05:52","modified_gmt":"2025-04-09T12:05:52","slug":"evonik-approach-robust-supply-chains","status":"publish","type":"insight","link":"https:\/\/www.expanamarkets.com\/insights\/article\/evonik-approach-robust-supply-chains\/","title":{"rendered":"Strengthening food security: Evonik&#8217;s approach to creating local, robust agrifood supply chains\u00a0"},"content":{"rendered":"\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-40 md:pt-64 xl:pt-80 pb-40 md:pb-64 xl:pb-80 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<p><i><span data-contrast=\"auto\">Published in association with Evonik<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In today\u2019s interconnected world, supply chains are vulnerable to a wide range of disruptions, including geopolitical tensions, trade barriers, extreme weather events, and volatile energy prices. These external challenges can severely impact the flow of goods, making long-distance sourcing less reliable and more costly.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As a result, local production is gaining recognition as a key strategy for bolstering food security. By prioritizing local sourcing, businesses can reduce reliance on distant suppliers and better mitigate the risks associated with global disruptions leading to more robust supply chains.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Shortening transportation routes also often means lower carbon emissions and less energy consumption, creating more sustainable supply chains. This can ensure businesses stay ahead of evolving regulatory frameworks, while meeting the needs of both the market and the environment.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As companies across the food and agriculture sector reassess their supply models, many are adopting strategies to reduce environmental impact while maintaining operational efficiency. One such company, Evonik &#8211; a leading provider of key feed ingredients for the livestock and aquaculture sector &#8211; has shifted its approach to prioritize more localized production. Expana spoke with two of Evonik\u2019s experts, Dr. Dirk Hoehler, Head of the Essential Nutrition Product Line, and Norbert Steier, Head of Production &amp; Technology for Animal Nutrition, who shared their insights on the vulnerabilities in food supply security and how a regional production strategy helps address some of the biggest challenges we face in supply chains.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Expana] What are the notable vulnerabilities in our modern agrifood supply chains and the biggest challenges to food security you have observed?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Dirk Hoehler] <\/span><\/b><span data-contrast=\"auto\">Improving food security is at the core of our organization and we see several relevant vulnerabilities across modern agrifood supply chains impacting food security. Geopolitical tensions and trade conflicts continue to intensify uncertainty in global markets, weakening supply chains. Additionally, increased energy costs, especially in Europe, add another layer of complexity, affecting both production and distribution expenses.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Regulatory challenges further complicate the landscape. For example, Europe\u2019s CO<\/span><span data-contrast=\"auto\">2<\/span><span data-contrast=\"auto\"> pricing policies increase production costs, creating an uneven playing field where non-European producers may not face the same financial pressures. These factors contribute to supply chain instability and the need for more resilient, localized production models.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b><span data-contrast=\"auto\">[Expana] How can the agrifood sector address these issues to safeguard food supply?<\/span><\/b><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Norbert Steier] <\/span><\/b><span data-contrast=\"auto\">The agrifood industry must take a proactive approach to strengthening supply chains and enhancing food security. At Evonik, we focus on three key strategies to achieve this.\u00a0<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">First, we continuously optimize our production processes to enhance efficiency and sustainability, reducing costs and minimizing environmental impact while ensuring a reliable supply. Second, we strengthen local production networks, with our methionine production hubs in Antwerp and Wesseling playing a crucial role in securing regional supply and reducing dependence on external sources. Finally, we actively engage with policymakers to advocate for fair regulatory conditions, particularly addressing asymmetric environmental regulations that impact industry competitiveness.\u00a0<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Through these efforts, we are committed to building a more resilient and sustainable agrifood supply chain.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Expana] Why is local production key in creating more sustainable supply chains?\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Dirk Hoehler] <\/span><\/b><span data-contrast=\"auto\">Localized production \u2014\u00a0 across the globe \u2014 plays a crucial role in enhancing supply security and sustainability. In Europe, having regional production hubs ensures a stable supply of essential ingredients such as methionine for animal feed production.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Regional production naturally will minimize disruptions caused by external factors such as geopolitical tensions, trade conflicts, natural disasters and economic fluctuations. By producing closer to end markets, we can mitigate the impact of such disruptions, ensuring a more reliable supply chain.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">What\u2019s more, producing closer to the endpoint of the product shortens delivery routes, reduces transportation emissions and offers greater flexibility to adapt to market demands. Local production also enables better compliance with regional regulatory standards and sustainability goals, making the supply chain more resilient and future-proof.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Expana] Evonik is known as a large methionine producer. For those outside of the animal feed sector can you share why it is such an important addition to the animal protein sector and the challenges in methionine supply chains?\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Norbert Steier] <\/span><\/b><span data-contrast=\"auto\">Methionine is a critical amino acid used in animal feed for poultry, ruminants, swine and aquaculture animal feed and is essential for healthy growth and efficient feed conversion. This feed additive plays a vital role in ensuring optimal animal performance, supporting the global demand for high-quality and sustainable protein production. Our \u2018More with Less\u2019 approach, focusing on low crude protein diets, demonstrates how methionine contributes to reducing the environmental footprint of livestock farming by improving feed efficiency and conserving natural resources.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">However, methionine supply chains face several challenges. Regulatory hurdles, especially in Europe, create competitive imbalances where producers outside the EU may not face the same costs and restrictions. What\u2019s more, a lot of methionine production is concentrated in Asia, which introduces complexities to supply for European and North American markets.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Expana] What is Evonik\u2019s model to ensure robust, sustainable supply chains?<\/span><\/b><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Dirk Hoehler] <\/span><\/b><span data-contrast=\"auto\">Evonik has built a reliable and sustainable supply network with three major methionine production hubs: Antwerp and Wesseling in Europe, Mobile, Alabama in the Americas, and Singapore in Asia-Pacific. This global integration ensures both flexibility and a secure supply.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">To further strengthen our operations, we continuously invest in technology upgrades and sustainability initiatives. Our recent investments in Antwerp and Wesseling focus on increasing efficiency, reducing emissions and enhancing reliability.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Our commitment to backward integration means we are <\/span><span data-contrast=\"auto\">investing in expanding our own facilities to produce all the necessary intermediates for essential amino acids. This helps to ensure greater supply security and sustainability,\u202f<\/span><span data-contrast=\"auto\">such as at our sites in Singapore and Alabama, allowing us to control key intermediates in methionine production, improving cost efficiency and reducing our carbon footprint. For example, our backward integration efforts in Mobile are expected to reduce the specific product carbon footprint of DL-methionine from this site by around 7%.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Expana] Looking ahead, what can we expect next from Evonik?<\/span><\/b><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">[Norbert Steier] <\/span><\/b><span data-contrast=\"auto\">Evonik remains committed to driving sustainability and innovation in methionine production. Looking ahead, we will continue to invest in technological advancements to enhance capacity, efficiency and environmental performance across our global production sites.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Transparency and sustainability will remain at the forefront of our strategy. As consumer awareness grows regarding food origins and production methods, we aim to lead the conversation by promoting responsible animal nutrition practices through initiatives like our \u2018More with Less\u2019 campaign.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Furthermore, our ongoing engagement in industry discussions will help shape a more sustainable future for livestock farming, ensuring that our solutions contribute to a more efficient, transparent and environmentally friendly agrifood sector.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end -->","protected":false},"excerpt":{"rendered":"","protected":false},"author":90,"featured_media":9681,"template":"","tags":[],"insight-theme":[167],"insight_topic":[],"news_topic":[],"class_list":["post-9675","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight-theme-leaders-in-procurement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - 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