(February 10, 2020) Evonik collaborates with KPMG to measure the impact of aquaculture production on the economy, society, and environment
The use of innovative feed can reduce negative impacts by up to one-third
Evonik is committed to promoting positive and sustainable change
Global leading specialty chemical company--The latest publication from the collaboration between Evonik Industrial Group and KPMG examines the impact of poultry and pig production and outlines the potential social benefits of reducing protein content in feed through the use of feed additives.
The current livestock production has caused serious impacts globally, including climate change, land degradation, and pollution. Therefore, we urgently need more sustainable ways to meet people's growing demand for meat, fish, milk, and eggs.
In order to build a practical plan for innovative feed that can be implemented on a large scale, Evonik collaborated with financial and sustainable development experts from KPMG member firms to measure and evaluate the impact of livestock production.
This analysis utilized the KPMG True Value Methodology to compare the social impact of using innovative animal feed with traditional animal feed. It covers the economic, environmental, and social impacts of meat production throughout the entire value chain, from growing feed crops to livestock farming.
Analyze the market share of innovative feed in Brazilian broiler production and Chinese pig production in 2018, as well as the most advanced innovative feed formulas at that time. The analysis team quantified the impact category evaluation values obtained and selected from multiple sources into financial indicators.
Evonik/KPMG's true value quantification method assigns a financial value to each impact. Once the values of each impact are determined, the total impact value of 2 using innovative animal feed and traditional feed can be calculated. The calculation results show that there are significant differences in the social and environmental impacts of the two types of feed.
The analysis and evaluation show that the environmental and social impact of using traditional poultry feed in Brazil is 1345 euros per ton of live weight. The most serious impact is the land occupation for growing feed crops and air pollution caused by poultry excrement.
When using innovative animal feed, the negative impact of broiler production on the environment and society can be reduced by one-third. The most significant of these is reducing land occupation and its impact on biodiversity, decreasing air pollution, and reducing the likelihood of soil acidification and water pollution.
The net cost of using traditional animal feed mentioned above is 180 euros per ton of live weight. If innovative animal feed is used to replace traditional feed, it will increase Brazil's net income by 85 euros per ton of live weight. Martin G. Vieh, Senior Manager of KPMG Germany's Sustainable Development Services DepartmentÖ ver said, "The research results clearly indicate that innovative animal feed has great potential in promoting the creation of social value. In addition, there is a need to improve the transparency of the overall social value created by the product
The analysis of China's pig farming using KPMG's real value quantification method also showed similar results. The use of innovative pig feed will significantly improve the industry's impact on society and the environment, with the potential to reduce the "real" price of pork by nearly 12%.
Analysis estimates that if innovative animal feed is used to replace traditional feed, it will add 5.5 billion euros to the social value of the chicken market in Central and South America, and 1two3 billion euros to the social value of the pig market in North Asia. The social value of these two key markets will increase by a total of 18.3 billion euros annually.
The results of this analysis may change the way the livestock industry views itself, spark more discussions throughout the entire value chain, and help drive agriculture towards a more sustainable direction, "said Dr. Emmanuel Auer, Head of Animal Nutrition at Evonik.
We are sharing the results of this research with suppliers, customers, regulatory agencies, policy makers, academia, and others to drive positive sustainable change in the global livestock industry. Our goal is to promote and participate in discussions on how the livestock industry can work together to address its social and environmental impacts
The high protein content in traditional feed leads to high nitrogen content in animal excrement. The feed amino acid product solution developed by Evonik can reduce the protein intake of animals, thereby reducing nitrogen emissions. Innovative animal feed can also improve animal digestion, reduce crop and water consumption, and minimize waste generation.
We view this analysis as a tool to guide innovative research and manage product portfolios to develop new products and solutions that have a positive impact on society, "Dr. Auer added.
The impact of animal husbandry on the environment and society is receiving increasing attention. Evonik firmly believes that improving feed formulas can gain more recognition for the social value created by every farmer.
The Winning Plan will further expand its research scope to measure the impact of innovative feed in other poultry and pig production areas, and extend to the fields of ruminant and aquaculture.
one Including the US Environmental Protection Agency (EPA), the Organization for Economic Co operation and Development (OECD), and The Economics of Ecosystems and Biodiversity (TEEB)
twoIn analysis, it is referred to as "social value"
