BASF seeks partners to drive sustainable growth in feed enzymes

GERMANY – BASF, which produces a wide range of feed additives, has announced it is exploring strategic options for its feed enzymes business, seeking partners to help unlock growth opportunities in what it sees as a pivotal market for innovation and profitability. 

The business forms part of BASF’s Nutrition & Health division, which supplies ingredients and solutions for both human and animal nutrition.

“We are looking for partners for whom feed enzymes represent a strategic focus area to drive innovation and profitable growth,” said Dr. Martin Volland, President of BASF’s Nutrition & Health division.

BASF was a pioneer in the feed enzymes sector, introducing Natuphos® in 1991 as the world’s first commercial feed enzyme (phytase). 

Since then, the company has expanded its portfolio to include phytase, xylanase, glucanase and mannanase, positioning itself as a leader in this specialised market.

“This attractive business brings together a highly skilled team that combines market and technical expertise with pioneering experience in feed enzymes, globally established brands, and a robust innovation pipeline – all of which positions it for continued success,” Dr. Volland added.

Daniela Calleri, Head of Nutrition Ingredients at BASF, emphasised that the feed enzymes unit has outperformed the market in recent years. 

“Our feed enzymes business has significantly outgrown the market over the past years. We are proud of what the team has built. In our Nutrition Ingredients business unit, we will continue to strengthen our core product platforms for vitamins and carotenoids as part of BASF’s key value chains. We are confident that in an alternative setup, the feed enzymes business will be able to unlock its potential fully,” she said.

BASF stressed that the planned restructuring applies only to its feed enzymes business within Nutrition & Health and does not affect its enzymes portfolio for the home care and industrial sectors, which remains under its Care Chemicals division.

Recent portfolio moves

The announcement comes shortly after BASF completed the sale of its Food and Health Performance Ingredients business to Louis Dreyfus Company (LDC). 

The transaction, approved by relevant authorities, included a production site in Illertissen, Germany, three application labs outside of Germany, and the transfer of around 300 employees to LDC.

The divested portfolio covered food performance ingredients such as whipping agents, emulsifiers and fat powders; health ingredients including plant sterol esters, conjugated linoleic acid (CLA) and omega-3 oils; along with several smaller product lines.

Through this sale, BASF is sharpening its focus on key growth segments in its Nutrition & Health division, particularly vitamins and carotenoids, which it views as essential components of its long-term value chains. 

“By focusing on vitamins and carotenoids, we are reinforcing our strategic direction toward vital nutrition ingredients for both human and animal nutrition,” said Calleri.

For LDC, the acquisition strengthens its foothold in the fast-expanding plant-based ingredients market. 

“This move is a significant milestone in LDC’s growth journey in the plant-based ingredients space, enhancing and accelerating our capacity to develop innovative solutions for food, personal care and healthcare applications,” noted James Zhou, LDC’s Chief Commercial Officer and Head of Food & Feed Solutions.

BASF has not disclosed financial details regarding its evaluation of the feed enzymes unit or the sale to LDC. 

The company maintains that continuity for employees, customers and partners remains a priority as it reshapes its portfolio to align with its long-term strategy.

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