Cargill spills the beans on rationale behind Diamond V buy
We caught up with Jamie Dolynchuk, strategic marketing and technology director for Cargill to find out a little more about the decision to sign a binding agreement to acquire Iowa-based Diamond V.
The decision to acquire the feed additive company is part of Cargill’s ongoing effort to be a leader in product offerings related to animal health and production, he said. The company anticipates the process closing in January, pending regulatory approvals.
“Cargill is very focused on developing and leveraging the best technologies and thinking in the world that supports the health, wellbeing of animals and production of wholesome food,” he told us. “Combined with our current capabilities, this is what Diamond V brings to us.”
Diamond V produces a range of feed additives based on products generated by several fermentation platforms including Saccharomyces cerevisiae and Lactobacillus acidophilus, the company said. The additives have been used in several types of animal production including for promoting active microbial balance, supporting rumen function in dairy and beef cows, boosting the immune system, improving intestinal structure in poultry and supporting digestive health in fish.
“Our focus is on technologies that best support the animal’s natural physiology,” said Dolynchuk. “So in this case the microbiome, digestive health and immune system balance and strength.”
Focus on natural products
Moving forward, the company is looking to offer natural products that support animal production, said Dolynchuk. “Diamond V and Delacon help us get there,” he added.
The announcement of the acquisition of Diamond V came after Cargill publicized a strategic partnership and a minority equity investment with Delacon.
The Austria-based company is known for its work with natural, plant-based products like phytogenics. It said that the partnership was a way to expand its global technical and go-to-market ability along with expanding the phytogenic feed additives category.
Cargill views work with both companies as a way to address consumer preference for the use of “natural and wholesome food production,” the company said. It also improves the company’s ability to work in the $20bn global animal feed additives market, along with new technical, research and development and regulatory capabilities.
Additionally, Diamond V’s culture offered a match for the work Cargill is doing, said Dolynchuk.
“Diamond V and Cargill have very aligned values and culture,” he said.
The arrangement with Diamond V will bring Cargill the entirely of Diamond V’s business – including the human health business Embria Health Sciences and its brands.
However, Diamond V's headquarters will remain in Cedar Rapids, Iowa and the brand will act as the platform for additional investments in natural product offers related to animal food production, said Cargill.
