What have been the most recent investments and acquisitions at Behn Meyer?

Behn Meyer had a remarkable year in 2022, which marked over 180 years of its history, and we capitalized on this momentum to further invest in sustainable solutions. Towards the end of 2021, we acquired Myosyn Industries, an Australian food ingredient company. In 2022, our newly established company, Nutrivo Ingredients, obtained the FSSC 22000 food safety certification for its plant located in Thailand. Additionally, we acquired a stake in a Norwegian producer of marine calcified algae, which allows us to offer a completely sustainable and chemical-free natural ingredient to the food, feed, and cosmetics industries. Furthermore, we recently acquired a German enzyme producer, expanding our portfolio to include biocatalysts with applications in various industries, particularly the feed and food industries, as well as the pulp & paper industry.

What is your strategy behind these investments?

Our strategy is centered around strengthening our industry expertise across our four business pillars: Agricare, Ingredients, Performance Chemicals, and Polymers. To achieve this, we decided to invest in our own manufacturing and product development capabilities. The common theme driving these investments is sustainability. We aim to create a global network of integrated businesses that benefit from multiple synergies. For example, we can now introduce Nutrivo’s plant-based fiber and protein solutions from Thailand to the Australian market, capitalizing on the growing demand for vegan meat alternatives. Our investments in Europe complement our sustainable product range in Asia, and Nutrivo’s factory serves as a hub to tailor offerings to local needs. Collectively, we have developed a unique technology that converts meat processing off-cuts into a sellable retail product. This enables our food customers to turn a waste problem into a new revenue stream and increase their profits.

Southeast Asia represents a significant portion of Behn Meyer’s business. What are your top five markets in the region?

Behn Meyer has a strong presence in Southeast Asia, with more than 90% of our business conducted in this region. We are perhaps the only major chemical and ingredients distributor with such a substantial footprint in Southeast Asia. Out of our global workforce of over 1,300 employees, approximately 1,100 are based in this region. The company was founded in Singapore in 1840 and has since expanded its operations. Currently, our largest market is Malaysia, driven by Agricare’s robust fertilizer and crop protection business, as well as our extensive distribution and manufacturing network. Indonesia, Thailand, and Vietnam are also key countries for us, where we have diversified and sizable operations. The Philippines and Myanmar follow in terms of market size. Overall, our unique footprint in Southeast Asia allows us to provide comprehensive coverage of the ASEAN region with dedicated local sales teams and regional management.

What factors have contributed to Behn Meyer’s performance in FY22?

Behn Meyer, like the entire industry, experienced higher prices in 2022. This contributed to higher sales levels across all four business units. However, it is important to note that the first nine months of 2022 were marked by higher raw material costs, particularly within Agricare. Our Polymers and Performance Chemicals business units achieved double-digit growth due to substantial advancements in our rubber and water treatment businesses. The Ingredients business unit witnessed growth in line with the market, following exceptional growth during the pandemic. Additionally, the contributions from our recently acquired businesses played a significant role in the overall uplift in group sales volume and profit.

Can you tell us about the latest products Behn Meyer is bringing to the market in the fertilizer and crop protection space?

We have observed growing interest in organic fertilizers in recent years, and Behn Meyer is actively advocating a shift away from animal waste as the typical raw material for organic fertilizers. Animal waste-based fertilizers may still contain antibiotic residues, viruses, or other disease vectors. Instead, we focus on producing organic fertilizers from plant-based waste. For instance, palm oil mills generate organic waste in the form of empty fruit bunches and effluents with high biological loads. To expedite the composting of the dry residues, we utilize enzymes. Additionally, we are working on solutions for more salt-tolerant seeds and crops. In regions like the Mekong Delta in Vietnam, where high salinity levels due to seawater intrusion pose a challenge, we are exploring microbes that can tolerate salinity while providing nutrients to plants. This helps farmers in the region sustain their crop production.

Behn Meyer has achieved the EcoVadis Gold rating. Can you comment on this achievement?

The EcoVadis gold medal is a significant accomplishment for Behn Meyer, placing us among the top 5% of audited companies. This recognition validates our continuous efforts to advance the sustainability of our products and operations. It is noteworthy that as a family-owned company, Behn Meyer is now on par with publicly listed multinationals in terms of sustainability standards. Our commitment to sustainability reassures our business partners that we fulfill our responsibilities as industry leaders and support our customers’ own sustainability goals. We have already surpassed our 2025 target by reducing Scope 1 and 2 emissions by 25% compared to the 2021 baseline. Moving forward, we aim to achieve carbon neutrality by 2040, coinciding with the 200th anniversary of Behn Meyer.