Healthy animal feed maker is flying high
NOT that long ago, the Chinese accounted for half the world’s consumption of antibiotics – 160,000 tons per year. More than 50 per cent of that was given to animals, in feed and as medicine.
In 2014, however, the Beijing government initiated reforms and last July began a ban on the use of antibiotics in animal production.
The decision almost certainly helped Chinese consumers, who eat more chicken and pork than any other nation in the world. But it was also welcome news for Anpario, which specialises in natural additives for animal feed.
Based in Worksop, Nottinghamshire, Anpario has experienced rapid sales growth in China, as farmers scramble for ways to keep their livestock healthy without using antibiotics.
The company has made good progress in other parts of the globe as well, including America, where demand for antibiotic-free poultry is growing fast. The US consumes some 20 million tons of chicken a year, just behind China, and over half these birds are now reared without recourse to antibiotics, an amount t hat will undoubtedly increase.
In Europe, formaldehyde was, until recently, widely used to try to enhance animal health. But concerns about the chemical’ s carcinogenic properties mean its use has now been severely restricted, forcing farmers to search for alternatives, such as Anpario’s products.
The company makes food additives based on natural ingredients such as organic acids and oregano. Its best-selling product Orego-Stim, enhances gut health in animals to help them absorb more nutrients and grow stronger.
To prove a point, Anpario sponsored a racing pigeon, Lady Oregon. Given Orego-Stim daily, she won the Sydney Gold Ring endurance race last month, flying 350 miles across Australia and coming in an hour earlier than the next bird.
The company has bought six pigeons of its own to race in the Royal Pigeon Racing Association’s One Loft Race this summer. With top birds sold for hundreds of thousands of pounds, good diets are imperative and pigeonfanciers are some of Anpario’s most enthusiastic customers.
Chief executive Richard Edwards is due to issue a trading update for 2020 this week and news should be encouraging. Brokers have pencilled in static sales and profits but Edwards has recently surprised on the upside and supporters hope he will continue in that vein.
In 2021, sales are forecast to rise 5 per cent to £31 million, with profits up 9 per cent to £4.9 million. Over the next few years, Anpario hopes to triple sales to £100 million with profits rising even faster, through a combination of organic growth and select acquisitions.
The company is proud of its dividend record, too, with the 2020 payout expected to increase by 6 per cent to 8.5p, rising to 9p for 2021.
Traded on: AIM Ticker: ANP Contact: anpario.com or 01909 537380