Industry profile

F
Novus Global Headquarters, St Charles, MO

NOVUS

@25

Batting a thousand in
innovation and sustainability

by Eloise Hillier-Richardson, Milling and Grain

his June Darren Parris and I embarked

on the long but worthwhile journey
to Novus International Global
Headquarters in St Charles, Missouri, to
celebrate their 25th Anniversary.
Journalists and writers from across
the globe were invited to the three-day
event, encompassing a vast array of
exciting excursions, talks and tours,
organised by our hosts Brandi Hamilton, Global Marketing
and Public Relations Specialist, and Jake Piel, Sustainability
Manager.
Our activities commenced on the afternoon of Wednesday, June
15 as Novus hit it out of the park with a visit to Busch Stadium
to watch the St Louis Cardinals take on the Houston Astros in our
own private suites.
It offered an excellent chance to mingle and get to know
one another against a backdrop of good food, good sport and
thankfully, air conditioning - as the temperature had reached a
whopping 35 degrees centigrade.

LEED-ing the way in sustainability

Bright and early on Thursday morning a shuttle arrived to take

us to Novus Global Headquarters, about 15 minutes north of our
hotel.
In 2009 the Novus Global Headquarters building was awarded
the Platinum LEED (Leadership in Energy and Environmental
Design) certification, highlighting a central aspect of their
Triple S bottom line approach, sustainability, at the same time
as creating a superior work environment for all employees and
reducing costs.
Consolidating the Global Headquarters and the International
Research Centre, the single facility encompasses 10 research
laboratories, an employee customer training centre, a gym (with
classes and a personal trainer) and a cafeteria.
As well as this, the building incorporates sustainable design and
ingenuity: it boasts the largest array of solar panels in Missouri;
10 percent of the total material costs are recovered from salvaged
74 | August 2016 - Milling and Grain

materials and 30 percent of total materials are recycled materials;

the facility has floor to ceiling windows to maximise natural light,
a landscape of Missouri native grasses and plants designed to
require no irrigation (meaning thousands of gallons of water are
saved each year) as well as their very own beehives.

The Media Jam

The Media Jam began with opening remarks from David

Freidman, Vice President and Chief Financial Officer, and
Koichiro Tago, Executive Vice President and Divisional
Operating Officer Chemicals Division, Mitsui & Co (USA) Inc.,
part owners of Novus alongside Nippon Soda Co., Ltd.

Koichiro Tago

Mr Tago is the Executive Vice President of Mitsui, a Global

Trading and Investment House in a vast array of businesses,
boasting a USD10.9 trillion client base with sales close to USD10
trillion, 47,000 employees and in possession of 450 companies.
In recent years they have invested in everything from mining to
machinery to energy.
They acquired Novus in 1991 along with Nippon Soda. Novus
was instantly a more global brand with an emergent Methionine
basis in the US, growing more than threefold.
He told us, Novus brought a lot of innovation to the market
with technically advanced products with a mission statement
and corporate vision looking to meet the needs of the customer in
a sustainable manner.
He revealed that Mitsui have a renewed emphasis in this area,
opening a new area of the business dedicated to the Agribusiness
sector. In fact, Mr Tago divulged that in May Novus recapitalised,
issuing new stock, Mitsui then put more capital into Novus, now
holding 80 percent of shares instead of 65 percent.
He said, No one thought that Novus would be what it is today
in terms of size and [the types of] products available sharing
that Mitsui have a very solid growth plan for Novus. He told
us that shareholders feel tremendous opportunities lie ahead for
this business, and that they are ready and committed to support
Novus future.

Francois Fraudeau

Our next talk was from Francois Fraudeau, President and Chief
Executive Officer at Novus.
Mr Fraudeau spoke to us about the market (explaining how
Novus reach out to the market), the renewed focus on feed
quality, as well as ways to achieve feeding the predicted nine
billion people who will occupy the planet come 2050.
When it comes to the market Novus have several strategies and
predictions for better feed quality and increased production.
In the feed business Mr Fraudeau predicted continuous growth
coupled with the need for increased sustainability, largely due to
population increase and therefore the predicted upsurge in protein
consumption in developing countries.
He emphasised the need for international collaboration, as feed
production will increase but not necessarily where the product is
consumed, thus creating new trade relationships and import and
export deals. An example he used was China, which holds 21
percent of the population but only 7 percent of agricultural space
accentuating the necessity of trade negotiations as they will
need to import materials.
Additional strategies for optimising production included
supporting GMO, as well as promoting larger investment into
the Methionine business as it has been proven that the use of
Methionine not only helps with the cost of production of animal
meat, but encourages a more successful feed conversion rate
resulting in larger animals, and improves genetics.
Moreover, Mr Fraudeau revealed that Novus are investing 5
percent of sales back into research and development - a quasicyclical arrangement, he pointed out, given that all this funding
comes from the customers who are in the end those who will reap
the results of the research.
In terms of achieving feeding the nine billion Mr Fraudeau
reasoned that we experienced the same challenge 100 years
previously, where globally we saw a huge population increase.
He once again put a strong emphasis on sustainability, promoting
proteases - an additive that allows Producers to maintain or
reduce protein content in feed by increasing the digestibility of
protein.

Jeff Klopfenstein

For our third presentation at the Novus Media Jam, Jeff

Klopfenstein, Head of Methionine Business, invited us into his
world Our challenge? To help decide the next site for Novus
new Methionine plant.
The methodology was quite simple; we needed to start by
thinking about where meat will be produced over the next ten
years, by identifying patterns of food production, to narrow
down where the plant should be built. So, food production,
coupled with water availability, population increase and ease of
distribution, all contributed to whittling it down to just a few key
areas.
Mr Klopfenstein quasi-rhetorically put forward the question of
where future food production will take place, answering himself
only to say we cannot be certain of the answer. He told us, Im
supposed to be delivering insight to you today about how the
world will evolve during a period of unprecedented population
growth - in terms of the number of new people on the planet
this is unprecedented so we can cite some concerns about the
sustainability of the worlds food production systems we can
look at water, what is the water availability in each region, and all
we can be sure of is that food wont be produced in the same way
it currently is.
We learnt that the decision of where to build is inextricably

Ballons line the entrance to Novus HQ to

celebrate their 25 Anniversary

linked to food production and where food was going to be

produced in the future. Mr Klopfenstein gave predictions for
Brazil, China, and the US based upon hectares promoted to grain
production, crop yields, crop production, meat production and
meat production in millions of metric tonnes.
He asked rhetorically about what could happen if they are
wrong in their predictions, concluding that the several places
Novus have in mind for the new plant could cope with up to
a 7 percent variance in production each way, acknowledging
that building on the US Gulf Coast can economically serve
Asia, Latin American and Europe in both scenarios where Asia
becomes more self sufficient and if Asia becomes less self
sufficient in production.
Following the individual talks were three panel discussions;
The Antibiotic Free Movement with Dr Mercedes VazquezAnon, Dr Nasser Odetallah, and Dr Bob Buresh; Stories from
the field: Realise the hidden value with Eduardo Galo, Dr
Nasser Odetallah and Dr Ajay Bhoyar; and lastly Science vs.
Sustainability: Whos driving the bus with Dr Mercedes
Vazquez-Anon and Jake Piel.

The Antibiotic Free Movement

The Antibiotic Free Movement discussed the movement away

from sub-therapeutic antibiotic use in favour of alternatives, not
only eliminating the risk of antimicrobial resistant bacteria which
could compromise human antibiotic use but also promoting
greater animal welfare, nutrition and management practices.

Stories from the field: Realise the hidden value

The concept of the hidden value of something lies in the

premise of producing something superior, beyond what is

Milling and Grain - August 2016 | 75

Industry profile

As part of their sustainability pledge, the peaceful

landscape surrounding Novus Headquarters
incorporates Missouri native grasses and plants, as well
as their very own bees to help with pollenation.

expected. Novus are firm believers that their products perform

beyond their traditional function, bringing additional benefits to
the customer. Getting more from your product, either expectedly
or unexpectedly, is a vital USP and great incentive for customers
as it can lead to an increase in profitability and minimise
detrimental environmental factors.
Novus maintain that by incorporating their feed ingredient
solutions into animal feed customers can realise extra benefits,
such as reduced feed costs, optimised animal health and customer
service. The second panel of the Novus Media Jam was centered
on this concept of Realising the hidden value where each
panelist shared their story from the field, essentially sharing
case studies of how Novus products have bought additional
benefits to the customer.

Science vs. Sustainability: Whos driving the bus

Novus uphold that the notion of sustainability is embedded

in the core of their organisation, made clear in their Mission
statement: To make a clear difference in sustainably meeting the
growing global need for nutrition and health, and their tagline
Solution, Service, Sustainability.
The last panel discussion at the Novus Media Jam was
named Science vs Sustainability: Whos driving the bus? a
quasi tte a tte between Sustainability Manager Jake Piel and
Senior Director of Animal Nutrition and Facilities Dr Mercedes
Vazquez-Anon, regarding where Novus direct most of their
energies towards science or sustainability; two concepts that
could arguably be viewed as pulling a company in opposing
directions.

In conversation with Novuss Chief Innovation

Officer

The concluding talk, which followed an impressive tour of

the LEED certified building, was named In conversation with
Novuss Chief Innovation Officer.
Scott Hine, Vice President Products and Solutions and
Chief Innovation Officer was subject to a Q&A session from
Chris Winsor about what drives innovation and whether it is
increasingly more evolutionary or revolutionary in nature.
Mr Hine began his career in Research and Development 25
years ago, telling us how it is always a thrill to be part of an
industry that is always transforming.
The discussion followed the theme of innovation, and they
discussed whether the next changes would be evolutionary or
revolutionary. Mr Hine admitted that incremental improvements
are always taking place but also admitted that he does not
believe we have reached peak innovation which would stop
revolutionary changes.
They also touched upon how innovation comes about. Mr Hine
told us that shareholders and customers are two key drivers,
76 | August 2016 - Milling and Grain

saying shareholders have a say in what they [Novus] do but

ultimately it is the consumers who are driving the need for
innovation. After all, necessity is the mother of invention and if
the consumers or customers are in need of a new product, Novus
must respond through innovation.
This concluded our Media Jam session. In the evening we were
treated to a meal at the Edgewild Winery, ahead of the third day
of the Anniversary activities, which had us journey to the Novus
Green Acres Research Farm.

Novus Green Acres Research Farm

On Thursday morning, the final day of the Anniversary

celebrations, a shuttle met us to take us to the Green Acres Farm,
located in Montgomery County.
Purchased by Novus in 2009, the 12-acre farm also boasts a
LEED For Homes Platinum certification from the US Green
Building Council; the 1920s farmhouse located on site was
completely renovated by Novus using natural, sustainable
materials.
The renovation involved gutting the entire premises, reusing the
salvageable material, as well as utilising locally sourced material
with a highrecycled content and materials with a low VOC.
Additional improvements included the elimination of hardscape
areas to ensure rain water is retained and returned to the site,
the preservation of existing trees and the inclusion of drought
resistant and indigenous grasses, the creation of rain barrels
to capture and re-direct roof runoff for plant establishment, a
solar panel system which includes 168 solar panels and finally
a wastewater collection system, an engineered wetland septic
system, and a fertiliser and mulch area.
There are not many farmhouses that have achieved LEED
Platinum, but this is no ordinary farm, said Tom Hampton,
Manager, Product Research at Novus and Manager of Novuss
Green Acres Farm. Green Acres Farm is a living laboratory for
developing and demonstrating sustainable practices in the animal
nutrition industry. Having a LEED Platinum-certified house at
the farm underscores our mission of making a clear difference
in sustainably meeting the growing global need for nutrition and
health.
Novus also have their own feed mill and silo storage unit on
site, where they mill and prepare sample pre-mixes.
So what is the purpose of the farm? The Novus Green Acres
Research Farm puts into action all the protocols that are
developed at HQ. They perform trials on chickens, pigs and cows
to understand more about the effects of nutrition and diets and the
digestive system.
They document food and water intake, temperature, humidity,
any contributing factors, in order to get as accurate results as
possible from each of the trials. All the feeding is done manually
and all the tare weight is stored in the computers so they know

exactly how much food has been consumed, and all food is grown
within a 25 mile radius of the farm, further expounding Novus
efforts in sustainability.
As we were being shown around our guide told us A couple of
things that everybody likes to hear about and understand is what
were doing with these guys, cannulated pigs and the fistulated
steers. Unlike the chickens, the stomach content of the pigs and
cows can be monitored day to day while they are alive and on the go.
Each pig and cow that comes onto the farm is fitted with a
cannula, for the cow this is fitted into the rumen stomach, the
largest of the four stomachs. The procedures for fitting the
cannulas have been established by vets from St Louis who work
with Novus in fitting the cannulas, so that the surgery is safe and
offers little disruption to the animal.
The cannulas are fitted so digestive samples can be taken from
the animals for analysis. When it comes time to do a sample
collection weve got another adapter that goes on here, so well
pull the cap off and pull the plug out weve got an adapter where
we attach a small plastic bag and well get that adapter and the
plastic bag stuck on the side of the pig.
Most pigs get fed a six oclock in the morning, well put the
bags on and collect digestive from those pigs for about 8 hours,
generally samples are collected and bags changed every half an
hour. Each animal has a container with a number on it and we
keep the containers in the freezer. Once we get the collections
done for one week they get taken away and homogenised to make
sure we have one really good mix of samples and then send the
digestive samples for analysis our guide told us.
For the cows, the samples can be taken manually, our guide
told us once we have the cannula fitted, we can reach in and put

samples in and take samples out, joking that you need to be very
tall or have long arms, as some of the steers end up growing very
large, weighing almost 2000 lbs.

Novus 25th Anniversary Dinner and Concert.

The trip ended that same evening with a dinner and concert
at the Sheldon Concert Hall in St Louis, where we treated to
a lavish three-course meal and speeches from Novus major
shareholders Mitsui, as well as former and current Novus CEOs.
The entertainment was rounded off by a performance from Rick
Springfield, and after a lengthy couple of days really afforded
everyone the chance to let their hair down.

Delivering the Triple S bottom line

Thus concluded the Novus 25 year Anniversary celebrations.

What was evident from the three-day event is Novus
determination not only to be preeminent in feed additives, but
also to achieve this goal sustainably, through rigorous research
and development and innovation.
They have acknowledged that sustainable animal agriculture
and animal wellness is simultaneously a scientific subject,
as well as a subjective and emotional one, and they must be
sensitive to that; bringing more awareness to producers about the
environment in which the animals live in, as well as their own
management practices.
Ultimately, they appear determined to continue in their
deliverance of their Triple S bottom line approach, of
outstanding customer service, new solutions reached through
innovation, and sustainability, to be able to provide, and continue
providing, an affordable food source for all incomes.

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