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Adapting to Customer Preferences in the Dairy Cattle Nutrition Industry

Vijay Manoharan, Harrison Marisiddaiah, Charlie Miller, Lea Osman, Porter Richardson, Wesley Turner

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Agenda

Project Overview

Market Overview

Product Introduction Requirements

Consumer Journey

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Outreach

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Recommendations

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Project Overview

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Health and nutrition solutions for the animal protein production industry

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Scope and Goals

Tailor Portfolio Presentation Based on Customer Needs

Conduct Market Research on the Dairy Industry with a Focus on Essential Oils

Identify Requirements for Product Introduction (Beyond Data)

Design an Innovative Selling Process

Develop a Consumer Journey and Propose New Ways to Reach Potential Customers

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Market Overview

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Phytogenic Feed Additives Market Overview

2022: $813.4 million

Projected CAGR: 8.4% (2022-2030)

Estimated Market Size by 2030: $1549.5 million

Regional Market Share

Europe: Dominant Market
Projected North America Market size by 2030: $358.9 million

Key Market Drivers

Increasing Demand for Natural and Organic Products
Regulatory Pressure to reduce antibiotic use in livestock
Growing awareness of animal health and performance benefits

Market Segments

Form: Dry segment (largest and fastest growing)
Type: Essential Oils Segment (largest and fastest growing)

The phytogenic feed additives (PFAs) market is experiencing significant growth. It was valued at $813.4 million in 2022 with a compound annual growth rate (CAGR) of 8.4%, with the market expected to reach approximately $1549.5 million by 2030. Regionally, Europe remains the dominant market, but North America is emerging as a key player, projected to grow significantly, with a market size of $358.9 million by 2030. There are several factors driving this growth. Increasing consumer preference for natural and organic products, Stricter regulations on antibiotic use in animal feed, and the growing awareness of the benefits of PFAs, such as enhanced animal health and feed efficiency. In terms of market segments, the dry form of phytogenic feed additives is both the largest and fastest-growing. It is preferred by farmers and feed manufacturers mainly due to ease of handling. Also, In terms of type, essential oils are gaining popularity which aligns with the rising demand for natural additives.

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Based on product type

Based on different sectors

North America’s Animal feed phytogenics market trend forecast

Global animal feed phytogenics growth opportunities 2023

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Overview of Phytogenic and Non-Phytogenic Feed Additives: Market Players and Product Types

Phytogenic Feed Additive	Examples	Companies in North America
Essential Oils	Oregano oil, Thyme oil, Eucalyptus oil	Delacon, Phytobiotics, BIOMIN
Oleoresins & Plant Extracts	Capsaicin, Curcumin	Kemin Industries, Pancosma, Natural Remedies
Bioactive Ingredients (secondary metabolites)	Flavonoids, Tannins	Feedworks USA, Cargill, Alltech

Non-Phytogenic Feed Additive	Examples	Companies in North America
Probiotics	Bacillus subtilis, Lactobacillus spp.	Chr. Hansen, Novus International, Arm & Hammer
Prebiotics	Mannan-oligosaccharides (MOS), FOS	Alltech, Cargill, ADM
Enzymes	Phytase, Xylanase, Protease	DuPont, DSM, AB Enzymes
Organic Acids	Formic acid, Propionic acid	BASF, Perstorp, Kemin Industries

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Product Introduction

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Generally Recognized as Safe (GRAS)

Addresses:

Food Safety
Animal Safety
Environmental Impact
Utility
Manufacturing Chemistry
Labeling
Proposed Regulation

Food Additive Petition (FAP)

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Petition to the National Organic Standards Board (NOSB)

Petition is reviewed in a biannual public forum and voted upon

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Organic Label

Petition reviewed by sub-committee, along with a technical report provided by a third-party

National Organic Program (NOP) reviews recommendation

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Sub-committee publishes recommendation and requests comments

Substance added to the National List

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2,500+ US Certified Organic Farms

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4

Consumer Journey

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Consumer Journey for Natur’s Phytogenic Products

Awareness

2. Consideration

3. Evaluation

4. Purchase

5. Implementation

6. Post-Purchase Evaluation

Industry Publications, trade shows, social media

Website Research, case studies, product comparison, expert consultations

Product Trials, ROI analysis, compatibility check

Continued Purchases, Recommendations, Testimonials

Training, new feeding protocols, performance monitoring

Track improvements, monitor efficiency, ROI

7. Loyalty Advocacy

Sales rep contract, price negotiation, order placement

diving into the consumer journey for Natur's phytogenic products in the dairy industry. Our research has identified seven key stages in this journey, from initial awareness to becoming loyal advocates.

It all begins with awareness, where farmers encounter our products through various channels like industry publications and trade shows. They then move into the consideration phase, researching our offerings and comparing them with alternatives.

In the evaluation stage, decision-makers assess our products through trials and ROI analysis. If satisfied, they proceed to purchase, implementing our solutions into their operations.

Post-implementation, farmers evaluate the impact on their herds and operations. Positive results lead to loyalty and advocacy, where satisfied customers become the brand ambassadors.

Understanding this journey is crucial for tailoring the marketing efforts and product development to meet the evolving needs of dairy farmers at each stage.

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Reaching and Engaging Key Decision Makers

Dairy Farmers, Nutritionists, veterinarians, Feed Manufacturers, Milk Processors

Content Marketing, Partnerships, Trade Show presence, Educational Webinars

Economic Return, Scientific Evidence, Ease of Implementation, Performance Benefit, Consumer Trends

Clean label products, Sustainability, Natural Solutions in Dairy Products

Virtual Reality farm tours, mobile app for tracking product usage and ROI, Farmer to Farmer Mentorship Program

Key Decision Makers

Engagement Strategies

Purchasing Decision Factors

Consumer Trends

Innovation Outreach Methods

let's explore how we can effectively reach and engage key decision-makers in the dairy industry.

We've identified five primary decision-makers, ranging from dairy farmers to milk processors. Each plays a crucial role in the adoption of the products.

To engage these stakeholders, we've developed a multi-faceted strategy. This includes content marketing, trade show presence, strategic partnerships, and innovative digital marketing approaches.

It's important to note that purchasing decisions are influenced by factors such as economic return, scientific evidence, and emerging consumer trends. Speaking of trends, we're seeing a growing demand for clean label products and natural solutions in dairy.

To stay ahead of the curve, we're proposing innovative outreach methods. These include virtual reality farm tours, a mobile app for tracking product performance, and a farmer-to-farmer mentorship program.

By implementing these strategies, we aim to not only reach our target audience but also educate them about the benefits of our products, emphasizing transparency and sustainability throughout the process.

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Outreach

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Outreach Overview

Funnel Chart of Outreach Results

Heat Map of VOC and KOL Interviews

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Key Opinion Leader: Erinn Evangelista

Former Manager of Outreach Services at Dairy Records Management Systems

Director, Catalyst at CLUTCH Performance

Farmers learn about new additives at

World Dairy Expo, World Ag Expo, Professional Dairy Producers of Wisconsin, North Carolina Dairy Conferences

Have to consider the space at the feed mill to carry the product and their willingness to work with the product (product quality, ease of handling, quality packaging)

Obtaining organic certification can help attract farms that prioritize natural or organic practices

Dairy producers like to see several research studies. If ROI can be proven, they will be much more likely to be willing to try the product

Best ways to reach the industry are through social media, ads with click-through links, publishing an informational article, offering free product trials

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Jennifer Spencer: Assistant Professor, Texas Extension and Research Dairy Specialist

Key Opinion Leader: Agriculture Extension Agents

Marti Day: North Carolina Extension Agent - Dairy Specialized

Ashley Robbins: North Carolina Extension Agent - Dairy Specialized

NC

Nutritionists and farmers

ROI is most important

Animal Welfare is marketable

Heat stress relief could be huge influencer

Natur could help dairy industry reach sustainability goals

Southeastern region holds a small portion of organic farms

Research needs to be done locally

Create marketing literature and take out ads in magazines

Running special deals on product could acquire new customers

Working with dairy cooperatives could be strategic

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Voice of Customer: Feed Manufacturers

Gabriel Carpenter: KeyStone Mills- Dairy Specialist and Sales Manager

Frank Fagundes: Sales Manager, Associated Feed and Supply Co

Kentucky Organics: Organic Livestock Feed Manufacturers

Produce Organic Feed

Maximizing Profitability

Research is Needed

Value Cooperative relationships

Supply Chain Management is Critical

Rely on external nutritional consultation

Produce Organic and Conventional Feed

Ideal Feed Additives Can Fill Multiple Roles

Attend Dairy Conferences and Seminars

Can not currently utilize phytogenic products

Produce Solely Organic Feed

Actively use phytogenics

Form Partnerships

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Voice of Customer: Alex Tebbe

Nutritionist and Dairy Consultant for Land O’Lakes Inc

Feed additive suppliers will contact him as a nutritionist and try to sell him the product

Learn about feed additives from universities and through magazine articles and extension events

Most important factor in considering feed additives is if there is data from dairy cow administration.

Cost and support provided are also important factors. Maximize margins in farmer profitability

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Potential Partnerships

Animal nutrition company which serves the Eastern US and Midwest. Offer a range of dairy cow feed products. Do not appear to offer any phytogenic products or essential oil products as feed additives.

Specialize in providing value-added blended feed ingredients to the dairy and poultry industries to in-part improve milk components. Do not appear to offer any phytogenic products or essential oil products as feed additives.

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Partnerships: Dairy Cooperatives

Founded in 1938. Consists of over 600+ dairy farmers. Committed to sustainability and delivery of exceptional dairy quality.

America’s largest dairy cooperative. Consisting of over 10,000 dairy farmers. Divided into seven geographic regions which are overseen by a 48 member Board of Directors.

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Industry Leaders

Dairy Cooperatives

Partnerships

Forming partnerships with established players in feed manufacturing and development could aid in the rollout of Natur.

Forming partnerships with dairy cooperatives could offer a large potential market of dairy farmers.

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Key Insights from Industry Leaders

Cost and ROI are key decision factors for new product adoption.

Emphasis on research and data from U.S. farms to demonstrate benefits and product quality.

Feed manufacturers prioritize product quality, ease of handling, and reference trials over farm testing.

Nutritionists, veterinarians, and farmers are the primary decision makers in dairy cattle nutrition.

Product benefits such as sustainability and animal health are critical to market appeal.

Dairy events, conferences, and trade shows are vital for connecting with customers.

Marketing through dairy publications, informational articles, and ads is effective, along with offering free trials.

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Recommendations

CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, infographics & images by Freepik

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USE VISUALS

Innovative Selling Process for Natur

KEEP IT SHORT

Trust Building & Community Engagement

Research & Trials: Conduct and share documented trials to establish credibility.
Sustainability Certifications: Highlight eco-friendly practices and certifications.

Digital Discovery

SEO & Social Media: Enhance online visibility and engage dairy producers.
Webinars: Host educational sessions on dairy nutrition and sustainability.

Personalized Engagement

Virtual Consultations: Offer tailored support from nutritionists.
Targeted Email Campaigns: Provide personalized content and success stories

Ongoing Support & Education

Dedicated Support Team: Provide assistance and product advice.
Continuous Education: Share industry updates and usage tips through newsletters.

Key Sales Strategies

Research-Backed Selling: Use peer-reviewed studies for credibility.
ROI Focus: Emphasize potential financial benefits.
Build Relationships: Engage nutritionists and veterinarians.
Trade Show Presence: Network at key industry events.

Seamless Purchasing Experience

E-commerce Platform: Simplify online ordering with bulk options.
Mobile App: Enable easy reordering and access to resources.

We propose an innovative selling process for Natur that enhances engagement and builds trust with dairy producers. To boost digital discovery, we recommend improving SEO, social media presence, and hosting webinars on dairy nutrition and sustainability. For personalized engagement, virtual consultations with nutritionists and targeted email campaigns with success stories will be effective. We also suggest creating a seamless purchasing experience through an e-commerce platform with bulk options and a mobile app for easy reordering and resource access. Trust-building is key, so conducting documented trials and highlighting sustainability certifications will establish credibility. Ongoing support can be provided through a dedicated team and educational newsletters. Lastly, our sales strategies should include research-backed selling, emphasizing ROI, building relationships with nutritionists and veterinarians, and maintaining a strong trade show presence.

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Key Marketing Recommendations

1. Target Segmentation

2. Educational Outreach

3. Trust Through Research

4. Engaging Feed Manufacturers & Vets

5. Promotional Deals

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Focus on both dairy consultants, dairy cooperatives, and nutritionists, emphasizing sustainability, animal welfare, and positive ROI.

Attend industry events and sponsor workshops to engage directly with farmers, nutritionists, and other individuals involved in the decision making process.

Conduct and publish peer-reviewed studies, along with sharing testimonials and case studies from early adopters.

Offer free trials, and special promotional prices to obtain new customers for Natur

Distinguish Natur with additional marketing benefits of improving sustainability practices and maintaining organic status while improving overall production.

Collaborate with feed manufacturers for advocacy and provide clear educational materials on product benefits.

Take Advantage of Current Markets

In compiling our individual research and findings from our interviews, we’ve put together several final key strategic recommendations for bringing Natur to the next level.

First, we believe that you should target several different segments in dairy, such as consultants, cooperatives, and nutritionists. And amongst these groups, create an emphasis on how Natur improves animal welfare, creates sustainability, and how it can bring forth a positive return on investment.

Then we think a certain level of educational outreach should take place to increase engagement. This can be done by attending conferences or other events in the industry, or by sponsoring your own workshops to directly connect with farmers and nutritionists.

Third, as you know building trust is crucial, but it can be challenging to do this on a large scale. We believe one of the best ways to do this would be publishing some of your research to be peer-reviewed. Or another route could be sharing testimonials from early adopters of Natur.

Collaboration with those who have a strong presence within this industry may be beneficial too, or simply collaborating with veterinarians and nutritionists to gain clear educational materials or insights on those you have currently could be beneficial. Of course, you may already have access to such resources within the Iluma Alliance.

Offering free-trials, although consuming to both time and money, may prove one of the best ways to gain customers on a larger scale. Going back to the point on gaining trust, it’s these farms that could potentially provide credible data supporting the success of Natur. Or simply creating promotional deals for new customers could be another more straightforward path.

Lastly, obtaining relevant certifications or developing tools for farmers to monitor the environmental impacts of Natur could be helpful in distinguishing Natur from its competitors.

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THANKS!

Does anyone have any questions?

CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, and infographics & images by Freepik

Paula Barngrover, CEO

Maria Spindola, International Commercial Director

Isabel Cristina Mesa Santa Maria, CMO

CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, infographics & images by Freepik

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References

ADM Animal Nutrition. https://www.admanimalnutrition.com/webcenter/portal/ADMAnimalNutrition/pages_anhome
Cargill. https://www.cargill.com/animal-nutrition
Delacon. https://www.delacon.com/
Global Animal Feed Phytogenics Growth Opportunities (2023) frost & sullivan. Available at: https://research-frost-com.prox.lib.ncsu.edu
Intelligence, M. (no date) North America feed additives market size: Mordor Intelligence, North America Feed Additives Market - Size, Share & Companies. Available at: https://www.mordorintelligence.com/industry-reports/north-america-feed-additives-market-industry.
KentFeeds. https://kentfeeds.com/
Manepalli, B. S. and N. (2019, January 30). Phytogenics: An innovative new trend in animal feed. Market Research Blog. https://blog.marketresearch.com/phytogenics-a-surprising-new-trend-in-animal-feed
McEvoy M. 2020. Organic 101: Allowed and Prohibited Substances. USDA. U.S. Department of Agriculture. https://www.usda.gov/media/blog/2020/10/27/organic-101-allowed-and-prohibited-substances.
Perdue AgriBusiness. https://www.perdueagribusiness.com/animal-nutrition/
Phytogenics Market Strategy Framework, revenue - 2032: FMI. Future Market Insights. (2022, December 16). https://www.futuremarketinsights.com/reports/phytogenics-market
Product Regulation. US Food and Drug Administration. FDA. https://www.fda.gov/animal-veterinary/animal-food-feeds/product-regulation.
Purina Mills. https://www.purinamills.com/
Reus, Ann. Top 10 North American animal feed companies. 2018. Feed Strategy. https://www.feedstrategy.com/animal-feed-manufacturing/article/15440153/top-10-north-american-animal-feed-companies
Varol, B. (2024, October 9). The rise of phytogenic feed additives in animal nutrition. Feed & Additive Magazine. https://www.feedandadditive.com/the-rise-of-phytogenic-feed-additives-in-animal-nutrition/
2024. Phytogenic Feed Additives Market Analysis & Forecast | $2.14B by 2033. Evolve Business Intelligence. https://evolvebi.com/report/phytogenic-feed-additives-market-analysis/.
2022. Phytogenic Feed Additives Market Industry Analysis | Types, Advantages, and Forecast. MarketsandMarkets. https://www.marketsandmarkets.com/Market-Reports/feed-phytogenic-market-162036047.html
Burak Varol. 2024. Phytogenic Feed Additives and Global Market Status - Feed & Additive Magazine. Feed & Additive Magazine. https://www.feedandadditive.com/phytogenic-feed-additives-and-global-market-status/
SkyQuest Technology. 2021. Global Phytogenic Feed Additives Market Size, Share, Growth Analysis, By Form(Dry and liquid), By Type(Essential oils, herbs & spices) - Industry Forecast 2023-2030. Skyquesttcom. https://www.skyquestt.com/report/phytogenic-feed-additives-market.
Dairy Farmers of America . (n.d.). Dairy Farmers of America . https://dfamilk.com/
Prairie Farms. (n.d.). Prairie Farms Dairy, Inc. https://www.prairiefarms.com/

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Gabriel Carpenter:

Dairy Specialist/Dairy Sales Manager

Voice of Customer: Keystone Mills

Produce organic and conventional feed for swine, cow, poultry, and other farm animals

Have an in-house nutrition team and rely on outside nutritionists to make feed addition suggestions

Look for research backed products to add to their feed products

Ideal feed additive products will be able to fill multiple roles and reduce production inventory

Evaluate product additions by inventory movement

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Voice of Customer: Kentucky Organics

Learn about new organic options from nutritionist or industry sales people

Quality, Price, and Convenience are there top 3 decision making criteria

Reference trials are fairly significant. They do not require on-farm testing before implementation

They are not familiar with phytogenic products

Organic Feed Manufacturer

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Voice of Customer: Frank Fagundes

Sales Manager

Associated Feed & Supply Co

California

Mostly rely on data and research from the vendors. No external consultants.

Open to exploring new technology or blends with measurable results

Although on-farm testing is preferred but not mandatory.

Decision-making criteria:

Good valued service

Supply chain management

ROI to the customers

Familiar with phytogenic additives for several years

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Ashley Robbins: North Carolina Extension Agent - Dairy Specialized

Key Opinion Leader: Ashley Robbins - Marti Day

Marti Day: North Carolina Extension Agent - Dairy Specialized

Offers specialized help to stakeholders in the NC dairy industry and dairy foods.

The dairy industry is moving towards a more sustainable direction. Milk coops will partner with companies to label their products “reduced emissions.”

Nutritionist, Herd Manager, Feeder, Farmer is all who is involved in the selling process.

To connect with new customers: attend feed conferences, hold webinars, run special deals on new product.

ROI is the most important factor in determining if a feed additive is worth it.

Offers specialized help to stakeholders in the NC dairy industry and dairy foods.

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Jennifer Spencer: Assistant Professor, Texas Extension and Research Dairy Specialist

Key Opinion Leader: Jennifer Spencer

Assistant professor at Texas A&M University specializing in the dairy industry and extension.

Marketing for Natur should include attending trade shows, conferences, producing flyers, conducting seminars and outreach with consumers and extension.

Natur could be a strategic product in helping the dairy industry reach carbon zero by 2050.

Maintains that ROI is the most important factor when choosing a feed additive. Results must be tangible.

Capsaicin in Natur could contribute to animal welfare by reducing heat stress in dairy cattle.

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Marti Day: North Carolina Extension Agent - Dairy Specialized

Key Opinion Leader: Marti Day

Offers specialized help to stakeholders in the NC dairy industry and dairy foods.

Texas and California are bigger stakeholders in organic dairy farming and may be better markets for Nature

Cost of product and ROI is important for the farmer, however, herd health is the #1 priority.

Big emphasis on research with capsaicin on US dairy farms.

Southeastern region of US holds a very small portion of organic dairy farms.