Agribusiness needs to step up investment in technology: Diamond V

US fermentation technology specialist, Diamond V, has been engaging with academia to ensure curriculum development within agriculture industry orientated education programs reflects the needs of the marketplace.

“It has been a challenge in the past to attract students to the agri-sciences as the sector was not viewed as one that was growing but there has been a sea change in the last number of years.

With precision farming tools being applied to the whole feed and food chain, it is being seen as a new high tech industry, but we need to accelerate investment in technology within agribusiness and really be at the forefront of innovation in order to tackle the projected growth in world population and subsequent protein demand.

Industry has been engaging with the deans of agriculture schools to inform them of global trends, to ensure a relevant syllabus and to establish public/private partnerships,” Diamond V CEO Jeff Cannon told FeedNavigator.

He said US universities are also increasingly involved in collaborative projects with Chinese agriculture educational establishments in order to bridge the knowledge gap between regions.

Cannon said Diamond V has invested heavily in R&D, on both the technology and recruitment sides, taking in around 80 students with either PhDs or Masters in Sciences in the past few years. It is looking to recruit 30 additional employees in 2015. “Our research budget represents 10% of our annual revenue,” he said.

Last year, Diamond V reported sales for its fermentation portfolio had jumped in recent years averaging around 20% annually from 2011 to 2014. It puts part of that sales performance down to the US poultry industry's demand for additives to reduce salmonella contamination.

Capacity expansion

A $30m capacity expansion project at the producer's manufacturing facility in Iowa is also set to come online this year, said the CEO, with the animal nutrition player looking to use that additional output to extend its global footprint and also to tap into the antibiotic reduction trend in livestock production.

It will add storage, spray drying, grinding, bagging and transportation equipment.

The Iowa Economic Development Authority (IEDA) board awarded the company tax benefits for the capital investment project.

Cannon said Diamond V has also joined a coalition of feed suppliers that wants to push home “the role agribusiness plays in ensuring a safe, sustainable and abundant supply of food” through a communication strategy that aims to engage millions of consumers.

“We want to address the many misconceptions that exist about the agribusiness model. Instead of relying on typical outreach tactics, such as scientific studies, which are generally just read by the agri-community, we are leveraging a mass communications model – film. We have supported the production of a movie to ensure consumers better understand the challenges around future food security,” said the CEO.

The Ivy League Farmer will premiere on US cable networks in the autumn, he said.