Vms carophyll sustainable animal production april 2014

People, Planet and ProfitApril 2014

Sustainable Animal Production with CAROPHYLL®

• CAROPHYLL® is the highest quality, best recognized brand of carotenoids in the animal nutrition market

• Carotenoids are natural occurring substances that are added to the diet of poultry to enhance the quality of the products (yolk and skin color, antioxidant properties, vitelline membrane strength), and boost their reproductive performance and immune capacity

CAROPHYLL®

Nature produces 100 Million MT of Carotenoids per year

Carotenoids in NatureCarotenoids are very common molecules in nature.They are synthesised by:

Bacteria Algae Fungi Plants

3 tons per second!

• Carotenoids are present in the animal kingdom (yellow, orange and red), and are typically associated with colorful birds such as seagulls, canaries, cardinals and flamingoes

• The color of the males is associated with good health and therefore with their reproductive capacity

• In order to store carotenoids, birds need to be healthy enough to eat, digest and absorb nutrients, so a pigmented bird is a healthy animal

Carotenoids in Wild Birds

Where CAROPHYLL® fits into the Sustainability Equation?

Enhances the quality of poultry products via the use of safe nature identical carotenoids in order to make them more nutritious and appetizing

Production of nature-identical carotenoids with a lower carbon footprint than chemically extracted carotenoids and with thepotential to reduce the carbon foot print of the poultry via betterfeed efficiency

CAROPHYLL® boasts high Return on Investment when used as part of the egg quality enhancement package and the breeder flock

CAROPHYLL® and People

CAROPHYLL® and Planet

CAROPHYLL® and Profit

CAROPHYLL® and People• Increasing the attractiveness of healthy foods like eggs and chicken

using nature-identical carotenoids

• Increasing the antioxidant capacity of the egg and the strength of the yolk (superior egg quality)

• Assessing the impact of carotenoids on the health of poultry and final consumer


using nature-identical carotenoidsIn many countries, people look for a golden yolk as a sign of a nutritive and healthy egg

In China Brazil, Australia, Russia, India, Germany, Spain, Italy, France and others, people prefer egg yolks with a YolkFan™ of 12 or more.

“The yolk must bewell-rounded and shiny.”



“The yolk, for me, is really very important.It must be yellow-orange.Quite simply, because it will be muchmore appetizing, it will draw the eye,it will make the customer want to try it.”

“The appearance (of the egg) is very important because it is what makes

you want to cook it, prepare it.”

“The yolk, for me, is really very important.

It must be yellow-orange.Quite simply, because it will be

muchmore appetizing, it will draw the eye,it will make the customer want to try

it.”

“The appearance (of the egg) is very important because it is

what makesyou want to cook it, prepare it.”

“The yolk must bewell-rounded and

shiny.”

CAROPHYLL® and People• Increasing the attractiveness of healthy foods like eggs

and chicken using nature-identical carotenoids

The content of carotenoids in the raw yolk will certainly influence the outcome of a simple boiled egg, which one would you rather have?

Egg bread after supper for seventy Brazilian guests in Bastos, Br. Self-service.

Breads were baked similarly using eggs with different yolk shades.At the end guests choose 3:1 the golden bread.





Scrambled eggs after breakfast for 100 international guests at the Hilton Hotel in Zurich in 2013. Nobody touched the paler eggs.

Many egg products rely on eggs as the sole source of color.

The egg yolk content and saturation are very important



Breeder hens egg yolks0

2

4

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10

12

14

16

18

ControlCanthaxanthin

Effect of Canthaxanthin from CAROPHYLL® (6ppm) on the Total Antioxidant Status(TAC, U/mL)of the breeder hens and eggs

CAROPHYLL® and People• Increasing the antioxidant capacity of the egg and the strength of the yolk

(superior egg quality)

Zhang, at al., 2011. P. Sci. 90:1516

a

b

a b

60ppm Caro Red Control40

41

42

43

44

45

46

47

48

Vitelline membrane Rupture Force (mN) 95% CI for the Mean

CAROPHYLL® and People• Increasing the antioxidant capacity of the egg and the strength of the

yolk

P = 0.009

60ppm Caro Red Control6.6

6.7

6.8

6.9

7

7.1

7.2

7.3

7.4

Vitelline membrane Rigidity (mN/mm) 95% CI for the Mean

P = 0.094

40 weeks hens- 7 days stored eggs

DSM non published

• Is helpful to separate the yolk and white more easily

• Can be considered a measure for the egg freshness

• Limits the watering of yolk and water loss of white

CAROPHYLL® and People• Increasing the antioxidant capacity of the egg and the strength of the

yolk (superior egg quality)

Regular eggs

Hens fed 60ppm of CAROPHYLL® Red

Canthaxanthin (active ingredient of CAROPHYLL® red) evaluations:

Safety is confirmed

• Authorized as a feed additive (for poultry and salmonids) and listed as a food additive

• This is the most- evaluated carotenoid in the world- JECFA (toxicology) 1995- SCF (toxicology) 1997- SCAN (feed) 2002- EFSA (feed/food) 2007, 2010, 2013- …

• EFSA Oct 2010 (food) 2013 (feed)- Safety of Canthaxanthin has been fully evaluated and re-confirmed

(all aspects of safety were reviewed)

CAROPHYLL® and People• Assessing the impact of carotenoids on the health of poultry and final

consumer

CXN safety is confirmed by the evaluators


Worst case scenario, a 60kg human can safely consume up to 4.3 eggs containing CXN per day for a lifetime (1.8/0.42)

• Assessing the impact of carotenoids on the health of poultry and final consumer

ADI = 0.03mg CXN/kg BW/day.What does this mean in practice?

• Max. approved level for CXN in eggs (Japan/EU) = 8mg CXN/kg feed

• 8mg CXN per kg feed = ~26mg CXN/kg egg yolk (worst case)= 7.02mg CXN/kg egg (Egg yolk = 27% of the egg

weight)= 0.42mg CXN per egg (avg. egg weight (no shell) =

60gm)

• ADI for CXN = 0.03mg CXN/kg bw/day = A 60kg human can safely consume up to 1.8mg of

CXN per day over a lifetime

CAROPHYLL® and Planet• Nature-identical carotenoids like the ones in CAROPHYLL®, have a much

lower carbon footprint than chemically extracted pigments

• CAROPHYLL® Red ( as part of the MaxiChick® breeder solution) has the potentialto reduce the amount of feed necessary to produce chicks

• CAROPHYLL® production complies with the very strict European rules to minimize environmental impact



Life Cycle AssessmentLevel of impact on environmental aspects based on estimation of graphic representations from Saling

et al.200424Aspect Nature-identical Natural extract

Per 100.000 eggs DYCF 12 Red Yellow Red Yellow

Energy Consumption 230 MJ 190 MJ 650 MJ 560 MJ

Emissions 12kg CO2 eq 12kg CO2 eq 52kg CO2 eq 130kg CO2 eq

Acidification potential 30kg SO2 eq 30kg SO2 eq 700kg SO2 eq 1300kg SO2 eq

Ozone depletion potential 0.002 mg CFC eq 0.005 mg CFC eq 0 mg CFC eq 0 mg CFC eq

Land use 0 m2 0 m2 37 m2 37 m2

Critical water volume 2000 m3 35000 m3 2000 m3 42000 m3

Risk potential* 6 units 7 units 36 units 16 units

Toxicity potential** 1.5 units 1 unit 6 units 6 units

* Risk potential calculated different risks depending on reaction temperatures, pressures, inflammable materials, etc. as well as accident statistics from different industry sectors in different countries. Transportation risks were estimated where longer transportation distances resulted in higher risk evaluations.\

** Toxicity potential was determined using an assessment method based on the R-phrases of the Hazardous Substances Regulation Act (GefStoffV) and based on units calculated in a matrix with weighted points based on severity according to their toxicity potential.



Yellow and red, chemical

Yellow and red, plant-extract

0

10000

20000

30000

40000

50000

Carbon dioxide

g E

mitte

nts

/CB

Yellow and red, chemical

Yellow and red, plant-extract

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120

140

MethaneChlorinated and fluorinated carbonNitrous oxide

g E

mitte

nts

/CB

Saling, et al., 2006. Journal of Sustainable Agriculture, Vol. 29(1)

Control MaxiChick3560

3580

3600

3620

3640

3660

3680

3700

3720

3740Chicks/Ton feed*

*MaxiChick® App for Ross 308 improving one settable egg, 1% fertility and 1% hatchability.

CAROPHYLL® and Planet• CAROPHYLL® Red (as part of the MaxiChick® solution for breeders) has the

potential to reduce the amount of feed necessary to produce one day old chicks, reducing the environmental impact of Poultry

CAROPHYLL® and Planet• CAROPHYLL® production complies with the very strict European rules to

minimize environmental impact

Village Neuf is situated in Alsace, France, along the banks of the Rhine River

1990

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Delta du RhinRhin inferieurRhin moyenRhin superieur

Year

Num

bers

of

Salm

on (

n)

Programme Rhine 2020: Salmon 2020

Up until 2009:5,000 salmon have returned to the Rhine

2020: A population of 7,000 – 21,000 salmon will migrate into the Rhine each year

Adapted from:http://www.unece.org/fileadmin/DAM/env/water/cadialogue/docs/Almaty_Oct2010/Eng/Hofstra_Eng.pdf

The Rhine river is an ecological success story, and DSM takes responsible care of the river, thanks to its strict environmental policies. We are proud to be a good neighbor.

CAROPHYLL® and Profit• The return on investment of using CAROPHYLL® is around 100:1 when

used for egg improvement

• CAROPHYLL® Red ( as part of the MaxiChick® solution for breeders) maximizes the profit of the breeder farmer

• CAROPHYLL® is more cost effective than chemically extracted carotenoids

In Beijing a direct relationship between price and egg yolk color was found. Eggs over 30

RMB/kgwere always over 9 on the DYCF.

CAROPHYLL® and Profit• The return on investment of using CAROPHYLL® is around 100:1

when used for egg improvement

4 5 6 7 8 9 10 11 12 13 14 150

1020304050607080

Price and DYCF in Beijing

DSM YCF

Pri

ce/R

Mbkg

4 5 6 7 8 9 10 11 12 13 14 150

10

20

30

40

50

60Price and DYCF in Shangai

DSM YCF

Pri

ce/R

Mbkg

In Shangai, two distinctive groups were found.Very pale eggs (DYCF<6) comprise 31% of the

sample. Golden eggs (DYCF >9) comprised 69% of

the supermarket offering. All the eggs with prices over 40 RMBs were well pigmented.

Approx. Carotenoid investment to get to DYCF15 = 0.09 RMB/kg egg

y=5.1823x – 21.087R2 = 0.3809

y=1.7566x + 16.109R2 = 0.3073

Eggs in Spain

Summary:1. Avg. YolkFan™ 11.4 (10-14)2. Price related to claim O >FR >

C3. Price related to YolkFan ™4. ROI= 0.0404/.000102=396

1 USD=0.7248 €

Investment to go from 10 to 14 in YolkFan™= 0.000102 €/YolkFan unit/egg

C = ConventionalGF = GMO FreeB = BarnFR = Free-rangeO3 = Omega 3

VE = Vitamin EO = OrganicW = Welfare checkM = MediumL = large

C, M C, M C, M-L C, L C, L C, XL FR FR FR FR FR O0

0.10.20.30.40.5

Egg prices in Madrid and Alcala according to attributes

Attributes

€/e

gg

9 9.5 10 10.5 11 11.5 12 12.5 13 13.50

0.1

0.2

0.3

0.4

0.5

f(x) = 0.0403535299755085 x − 0.260554573527846R² = 0.217848770599379

Egg prices in Madrid and Alcala according to YolkFan™, €/egg (not-organics)

2 3 4 5 6 7 8 9 10 11 12 13 14 154

5

6

7

8

9

10

11

Eggs in Moscow according to YolkFan™, RUB/Egg

Eggs in Russia

Summary:1. Avg YolkFan™ 11 (3-14)2. Price related to claim O >FR

> C3. Price related to YolkFan™4. ROI= 0.1609/.00414=38.8

Investment to go from 8 to 14 in YolkFan™= 0.00414 RUB/YolkFan unit/egg

1 USD=36.15 RUB

y = 0.1609x + 5.3997

R² = 0.22177

Egg Price vs Yolkfan™, Japan (non-organic)

Ordin

ary

M

Coop

bra

nd

Ordin

ary

L

Fres

hnes

s

Enric

hed

nutrient

Enric

hed

Folic

acid

Iodi

ne e

gg Rice

04080

120Average Price by claim, JPY/egg

8 9 10 11 12 13 14 150

40

80

120

160

Egg prices as affected by YolkFan™, JPY/egg

YolkFan™

Summary:1. Avg YolkFan™ 11.6 (8-15)2. Price related to claim 3. Price related to YolkFan™4. ROI= 7.2679/.011=660.72

1 USD=102.157 JPY

y = 7.2679x - 57.574

R² = 0.31898

Investment to go from 8 to 15 in YolkFan™= 0.011 JPY/YolkFan unit/egg

5 6 7 8 9 10 11 12 13 140.5

0.7

0.9

1.1

1.3

1.5

1.7

1.9

2.1

Egg pricing as affected by YolkFan™ , UAH/egg

YolkFan™

UA

H/e

gg

Egg Price in Ukraine

Summary:1. Avg YolkFan™ 9.3 (6-13)2. Price related to claim 3. Price related to YolkFan™4. ROI= 0.0709/.00091=77.9

Investment to go from 6 to 14 in YolkFan™= 0.00091 UAH/YolkFan unit/egg

1 USD=9.7 UAH

y = 0.0709x + 0.6192

R² = 0.29392

3 4 5 6 7 8 9 10 11 12 13 14 150.00

0.20

0.40

0.60

0.80

1.00

1.20Price per egg (NON-ORGANIC) as affected by YolkFan™, BRL/

eggPREÇO

YolkFan™

BR

L/egg

Egg Price in Brazil

Summary:1. Avg YolkFan™ 9 (3-15)2. YolkFan value related to claim 3. Price related to YolkFan™ and

claim4. ROI= 0.0294/.000024=123

1 USD=102.157 JPY

y = 0.0294x + 0.232 R² = 0.23427

Investment to go from 6 to 14 in YolkFan™= 0.00024 BRL/YolkFan unit/egg

CA CA CA CA O3

O3VE

O3VE

O3VE

OG RE RE RE RE RE RE RE RE RE RE RE RE RE RE VE3

5

7

9

11

13

15

Attributes and YolkFan™ in the Brazilian egg shell market

Yolk

Fan

VE = Vitamin EnrichedRE = RegularOG = Organic

O3VE = Omega 3 + Vitamin EO3 = Omega 3CA = Caipira

• Using the MaxiChick calculator with the following assumptions:

- Ross 308 performing at standard

- Improvement of +1 settable eggs

- Improvement of +1% fertility- Improvement of +1%

hatchability

• That means 4.1 and 100 chicks more per housed hen and per MT of feed respectively

• At 0.30 € per chick and 6€/Mt inclusion rate, that means an ROIof 5 to 1

CAROPHYLL® and Profit• CAROPHYLL® Red (as part of the MaxiChick® solution for breeders)

maximize the profit of the breeder farmer

Low quality paprika

High quality paprika

Stable Paprika extract, 5 g/kg

Pure capsanthin/capsorubin

CAROPHYLL® Red, 10%

Canthaxanthin

0 200 400 600 800

700

600

500

2.5

10

1

Equivalent of 1 kg of pure Can-thaxanthin from Carophyll®, to

different sources of red carotenoids for Egg pigmentation

Tagetes 2% low quality

Tagetes 2% High quality

tagetes, 2% stable

Lut/Zea pure

CAROPHYLL® yellow, 10%

Apo-ester

0 50 100 150 200 250

210

180

150

3

10

1

Equivalent of 1 kg of pure Apo-ester from Carophyll®, to differ-ent sources of yellow carotenoids

for Egg pigmentation

CAROPHYLL® and Profit• CAROPHYLL® is more cost effective than chemically extracted

carotenoids

The high replacement rates and the superior performance of the CAROPHYLL® carotenoids, make them the most economical solution to

improve the quality of eggs

Where CAROPHYLL® Fits into the Sustainability Equation?

Triple check: Sustainability is the business driver for CAROPHYLL® as well!!

Enhance the quality of poultry products via the use of safe nature identical carotenoids in order to make them more nutritious and appetizing

Production of nature-identical carotenoids with a lower carbon footprint than chemically extracted carotenoids and with thepotential to reduce the carbon foot print of the poultry via betterfeed efficiency

CAROPHYLL® boast high Return on Investment when used as part of the egg quality enhancement package and the breeder flock


CAROPHYLL® and Planet

CAROPHYLL® and Profit

✓

✓

✓

Food

Vms carophyll sustainable animal production april 2014