2008 Sustainability Report
Contents                          COMPANY PROFILE ...........................................................................
Novus International, Inc. is a global leader in creating science-based        health and nutrition solutions. Over 2,500 c...
l Global Headquarters                            of its key product lines and with the                                    ...
Overall growth since 2002                                                    Novus Board has made clear through           ...
I’m proud to say that this is Novus’s first ever Sustainability Report                              and that we will be fo...
balancing environmental concerns.                                                        We are committed to protecting th...
Novus believes that doing business sustainably is an ongoing                                  process, and we are committe...
discussed with external stakeholders              staff, distributors, consultants and                                    ...
As we finish our first 17 years, we have created a global                                                              org...
At Novus, we believe in empow-                                                                                            ...
is about finding new ways of living,                                                                                      ...
In order to grow responsibly, Novus identified four Critical            Success Factors — Growth, Profitability, People an...
not-for-profit organization formed  Corporate Council on Africa                                                           ...
cult to absorb through an animal’s      Reduced EnerGy                                digestive system. Novus created     ...
by lowering feeding costs while             The use of local by-products                                                 r...
Novus ReceivesNASC’s BestManufacturingPracticesCertification     Arenus joined the National AnimalSupplement Council (NASC...
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
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2008 Novus Sustainability Report

  1. 1. 2008 Sustainability Report
  2. 2. Contents COMPANY PROFILE ................................................................................. 3 MESSAGE FROM THE PRESIDENT ....................................................... 6 SCOPE OF REPORT .................................................................................. 8 VISION FOR SUSTAINABILITY ........................................................... 10 INDUSTRY CHALLENGES, ACTIONS AND FUTURE PLANS ........ 11 CRITICAL SUCCESS FACTORS ............................................................ 13 GROWTH ............................................................................................. 13 PROFITABILITY ................................................................................. 15 PEOPLE ................................................................................................. 18 REPUTATION ...................................................................................... 20 SUMMARY ................................................................................................ 24 ABBREVIATIONS, REFERENCES, AND TABLES ............................. 25 GRI INDEX ................................................................................................ 26 CONTACT US ........................................................................................... 28 | NOVUS International
  3. 3. Novus International, Inc. is a global leader in creating science-based health and nutrition solutions. Over 2,500 clients in more than 80 countries trust the Novus product family to be an integral part of their daily animal agricultural operations. The company is privately owned by Mitsui Co. (U.S.A.), Inc. and Nippon Soda Co., Ltd. and is headquartered in the Saint Louis, Missouri, USA area. Novus’s Mission is to “help feed the world affordable, wholesome food.” to deliver sustainable solutions that improve performance for ourCompany Profile customers. We feel a deep responsi- bility to transfer the knowledge we gain as well as the technology and At Novus, we believe that sound innovations we develop to people research development is the foun- around the world who can use them dation for success in developing and to improve agricultural practices in delivering solutions to customers. their local communities. We believe in Performance through Novus provides products and Innovation, which is why we employ programs for the poultry, pork, dairy, more than 50 scientists, engineers, beef, equine, and companion animal nutritionists and Doctors of Veterinary industries. At the end of fiscal year Medicine to create new products and 2008 (March 31, 2008), Novus had programs. In addition to our in-house approximately 400 employees located expertise, Novus has developed a in 20 different countries, selling close global network of university profes- to 70 products to support livestock sors and academics, which helps performance, improved animal well- to ensure that our products are being, food safety and the environ- grounded in science and fact. Novus’s ment. Our products promote nutrition primary research development and health, and can be divided into center is located at the company’s technology platforms: amino acids, headquarters near Saint Louis, but organic acids, organic trace minerals, we also employ a global network of antioxidants, vaccines, mycotoxin university and industry collaborators control, and enzymes and yeasts. For to develop and test solutions for local specific information about Novus, its needs. products and solutions, please visit As Novus continues to grow, we our Web site at www.novusint.com. will continue to expand our profes- Novus continues to grow through sional networks and affiliations the innovation and performance Company Profile |
  4. 4. l Global Headquarters of its key product lines and with the guidance of senior management l Regional Headquarters and its Board of Directors. Under l Manufacturing Plant the guidance of President and CEO l Major Sales Office Thad W. Simons Jr., Novus respon- l Research Facility sibly grew sales to more than $700 million in fiscal year 2008. With the support of our parent companies and the Chairman of the Board, Shinji Tsuchyia, Novus has been successful in expanding its business by devel- oping and providing safe, environmen- tally-friendly products and solutions that improve our customers’ business performance. Novus Corporate Governance Statement Corporate governance at Novus International, Inc. is the responsi- North America South America Asia - Pacific Beaumont, Texas, USA Bogotá, Colombia Bangkok, Thailand bility of the Board of Directors. The Chocolate Bayou, Texas, USA Buenos Aires, Argentina Beijing, China Novus Board represents the inter- Lincoln, Nebraska, USA Caracas, Venezuela Hyderabad, India ests of the Novus shareholders and Little Rock, Arkansas, USA Indaiatuba, Brazil Jakarta, Indonesia stakeholders, including employees, Mexico City, Mexico Porto Alegre, Brazil Seoul, South Korea Ottawa, Ontario, Canada Santiago, Chile Shanghai, China customers and the public. The Novus Saint Charles, Missouri, USA Europe Singapore Board, with the advice of the execu- Bergamo, Italy Sydney, Australia tive management team, determines Brussels, Belgium Yunnan, China the company’s long-term strategy, Gudensburg, Germany while the Novus management team Madrid, Spain Nantes, France defines the company’s short-term Warsaw, Poland strategies and handles day-to-day business and operations. In 1998, the Novus Board of Direc-Novus products responsibly serve all of animal agriculture Novus’s health and nutrition products and the gut and metabolic processes to develop, products to help producers improve the programs serve virtually all of animal agricul- manufacture and support multiple lines health and nutrition of dairy cows. Based ture –designed with our goal of sustainability of nutritional and health products for the on sound scientific research, our products in mind. Novus’s programs consist of tailored, poultry industry. Novus serves the broiler, are safe, reliable, and efficacious. Novus complementary combinations of products broiler breeder, game bird, layer, turkey, provides products and solutions for the and services to maximize its customer’s turkey breeder and duck segments. transition, early-lactation, mid-lactation, performance, addressing concerns such late-lactation and replacement heifer as gut health and oxidative balance. These Swine markets. programs take advantage of the science, Novus has developed a unique range skills and knowledge at Novus to address of programs for pork producers to support Beef concerns in all the markets we serve. animal health and performance. Novus can Novus’s complete production cycle help producers improve animal wellbeing, programs and products for livestock deliver Poultry increase performance rates, and direct optimal animal health and performance. Novus has a broad range of complete feed to high-value, lean gain. Novus serves Novus helps producers effectively manage production cycle programs and products to the swine nursery, growing, grow-finish, the health of their cattle from calf to feedlot, meet the needs of modern poultry produc- finishing and sow segments. ultimately improving their bottom lines. tion. Novus has over five decades of basic Novus provides products for cow/calf oper- and applied research, development and Dairy ations, feedlots, stockers, backgrounders manufacturing expertise in amino acids and Novus offers a diverse family of and for the receiving markets segments. antioxidants. We utilize our understanding of complete production cycle programs and | NOVUS International
  5. 5. Overall growth since 2002 Novus Board has made clear through the NIS and other Novus policies and procedures that the companyFY 02 Debt to Equity ratio will strive at all times to make deci- sions that are not only lawful but also 2008 ~1.3 morally and ethically sound.FY 03 In 2005, the Board chartered the Novus Compliance Committee,FY 04 comprised of all members of Novus’sFY 05 senior management team as well as shareholder representatives.FY 06 The purpose of this committee is to review and evaluate complianceFY 07 issues and concerns throughout the Novus organization. It also focusesFY 08 on prevention, detection, response and security, as well as to propose 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 actions for the continuous improve- ment of Novus’s business manage- (USD 000) ment and operations. The matters within the scope of the Compliance Sales by Region FY08 tors approved and adopted the Novus Committee’s review include all legal Integrity System (NIS), containing and regulatory matters that impact Australia written policies to ensure that all or may impact Novus’s operations employees understand that good worldwide. The Committee also Latin America ethics and good business are synony- oversees compliance and conformity North America mous when viewed from moral, by Novus with the requirements of legal and practical standpoints. The organizations in which the company Asia NIS is a constant reminder of the maintains memberships and for Board’s commitment to corporate and standards, policies or programs to EAME personal integrity, and prompts every which Novus subscribes. The Compli- employee of the need to conduct the ance Committee manages compli- business of Novus within the ethical ance issues and reports to the Board framework adopted by the Board. The on a periodic basis.Aquaculture bilities in the equine, pet, human and other ingredients (i.e. MINTREX, ZORIEN and Novus Aqua is dedicated to developing non-food animal markets. NNB is focused MHA).products with performance and innovation on developing and delivering unique,that exceed customers’ expectations in the value-added products and technologies that Novus Pet Nutrition (NPN)global aquaculture market. Novus Aqua can optimize the health, performance and Novus Pet Nutrition serves pet food manu-focuses its efforts on providing products and longevity of individual animals or people. NNB facturers and ingredient suppliers to the petservices based on sound scientific studies. is divided into three distinct business areas: food industry. Novus Pet Nutrition productsWe are sensitive to current and future social, are animal health solutions that include plat-economic, and environmental conditions. Arenus: forms for the improvement of gut health andWe offer efficient alternatives, products, ARENUS is the umbrella brand for a line reduction in oxidative stress. Novus Pet Nutri-and services for sustainable aquaculture of finished dose form equine, canine and tion products include organic trace minerals,and business practices. Novus products and feline dietary supplements. Arenus products methionine analogues, antioxidants, omega-3programs address nutrition, health and the are marketed to horse and pet owners and fatty acids, enzymes and others.environment through water treatment, probi- are sold through veterinarians, select retailotics, hatchery products, fish meal replace- affiliates and direct to consumers via www. Novus Human Nutrition (NHN)ment and sustainable antibiotic-free culture. arenusperformance.com. The first product Novus Human Nutrition has been group sold under the ARENUS brand is chartered to develop and deliver unique,Novus Nutrition Brands STEADFAST by ARENUS, a line of structural science-based products and services to Novus Nutrition Brands (NNB) is a health products. STEADFAST products other businesses within the human dietarysegment of Novus with marketing responsi- leverage the science of Novus’s proprietary supplement and food industries. Company Profile |
  6. 6. I’m proud to say that this is Novus’s first ever Sustainability Report and that we will be following the G3 Guidelines set out by the Global Reporting Initiative. Even so, monitoring environmental, economic, and social factors were a part of our core values from the inception of our company back in 1991. meet the global challenges facing Message from the President animal production. Animal wellbeing, efficiencies of production, food safety and environmental issues are impor- tant challenges and critical to our Novus is very much a customer- customers. If properly addressed, focused company. With a reputation they provide benefits for all stake- built on quality and reliability, we holders, not just Novus. We positively strive to exceed customer expec- influence the industry by supporting tations. We make every possible a shift towards responsible produc- effort to maintain or improve our tion of food through using fewer corporate citizenship on a global resources and offering animal protein basis, each day earning the business producers options to reduce their of our customers and the respect environmental impact. of our stakeholders. We do this by supporting and promoting compli- Critical Success Factors ance with laws, regulations and At our annual 2008 strategic voluntary industry standards that planning conference, we identified protect our community, workplace four factors critical to the future and the environment. success of Novus: Growth, Profit- Corporate Social Responsibility ability, People and Reputation. (CSR) or Sustainability has become Novus decided to build on these an increasingly important part of four factors, developing strategies doing business. We understand that and tactics to meet our goals as an for Novus to be successful, we must organization while providing benefits Thad Simons Jr., President ensure that our sustainability values to our stakeholders in a sustainable are embedded in every employee’s manner. These factors are guideposts daily activities — what employees to our people and help us deliver on want in order to improve Novus’s our ethical, social and environmental outlook. This ‘natural symbiosis’ responsibilities while operating with between company and employee fiscal accountability. activities builds new, repeatable and sustainable business practices that Serious about food safety help achieve the goal of “meeting the Looking first at food safety, Novus needs of the present without compro- is very serious about this concern mising the ability of future genera- and realizes that it is a global public tions to meet their own needs. 1 ” health issue. Outbreaks of food-borne This report intends to outline our disease have been documented recent sustainability efforts as well on every continent within the past as endeavors to make sure we are decade, some with devastating always acting in the best interests of social and economic consequences. our stakeholders. Sustainability at Producers at every level of the food Novus is founded on the triple bottom supply chain are being called upon line: social, economic and environ- to actively participate in the delivery mental factors. While the environ- of safe products to the public. At the mental and social factors are vital same time, consumers want to mini- to satisfying the demands of stake- mize the use of antibiotic drugs. holders, they also must be economi- Safe food begins at the farm cally justified to be sustainable. level. As an example, Novus’s We strive to assist our customers gastrointestinal health products in finding sustainable solutions to used in drinking water and/or feed | NOVUS International
  7. 7. balancing environmental concerns. We are committed to protecting the environment in all areas where we conduct business. Our organization works through scientific research and development. We do this both by using our own scientists and on a larger scale, our global partnerships with university and independent scientists and experts – to create nutritional programs that reduce the environmental impact of animal agriculture. Novus raises standards of animal wellbeing The wellbeing of farm animals is an increasingly important public andSection headline here, please. political issue throughout the world and is important from both ethical and business perspectives. Animals in less stressful environments have help reduce the colonization of better performance, a lower occur- salmonella in poultry and swine. rence of disease, and higher repro- The animals are healthier, resulting duction rates. in enhanced animal comfort and Novus collaborates with optimum production efficiency. producers throughout the world to Used in combination with our raise the standards of animal well- coccidiostat, poultry can be effi- being. For example, Novus worked ciently produced in a drug-free with a leading poultry producer environment. to improve the quality of life for turkeys that were experiencing high Safe sourcing of rates of structural abnormalities ingredients and mortality associated with rapid growth. To approach this common Safe sourcing of product ingredi- challenge for poultry producers, ents is particularly important for the Novus created a customized nutri- global food chain. Novus has a high tional strategy. The result: More than quality network of vendors supplying a 40% overall decreased occurrence the ingredients for our products, of foot pad lesions, leg weakness and in many cases we manufacture and leg fracture. With this signifi- the ingredients ourselves. Novus cant increase in structural health, maintains traceability in all products the animals were able to express we produce, so producers can rest normal behavior and had greater assured that their animal nutrients alertness, mobility and freedom are safe. of movement. In addition to these Novus offers solutions for anti- health benefits, the producer microbial safety. Our antimicrobial increased his profitability. products reduce pathogens, mold In summary, we are delivering and resulting mycotoxins. To be clear, a “triple bottom line. As we look ” Novus’s solutions for health and towards the future, Novus’s goals safety do not contain antibiotics. We and objectives will include contin- enable producers to competitively uous improvements to build on increase performance and profits our exceptional performance and through the use of antibiotic-free creation of business practices that health and nutrition programs. are truly sustainable, which will help Novus also strives to help to feed the world affordable whole- producers meet the nutritional some food and achieve a higher demands of modern livestock while quality of life. Message from the President |
  8. 8. Novus believes that doing business sustainably is an ongoing process, and we are committed to embedding and implementing sustainable practices in our everyday activities. This report covers Novus International, Inc. and its major subsidiaries from 1 January, 2007 to 30 June, 2008. It is prepared for all stakeholders, including business partners, customers, residents of our local communities, government agencies, non-governmental organizations (NGOs), and our employees. Section headline here, please. ence. Changes in these activities will require ongoing cooperation with Scope of Report our customers, suppliers, and value chain partners. These changes offer all parties opportunities to improve the In this report, we describe Novus’s “triple bottom line. ” approach to sustainability, relevant The specific topics within the spec- data, programs, projects and key trum of activities on which Novus can activities we are executing. This focus its efforts are the environment, includes Novus’s activities in procure- food safety, animal wellbeing and ment, manufacturing, distribution performance. These have been four and sales of products that are directly tenets of Novus’s operations almost under the control of Novus’s manage- since inception and are critical to our ment. Often, Novus can measure, industry and stakeholders. estimate and assess the benefits and This report describes and reviews burdens that result from our actions. activities and topics that Novus has Where sustainable benefits are avail- pursued, in line with our Vision, able and it is appropriate for Novus Mission and Core Values. Topics, to influence their capture, we can projects and proposals for future institute improvements. action will expand and continue to This report covers selected activi- evolve within the company. They will ties along the value chains that are take into account relevant, current controlled by Novus, but not directly issues relating Novus’s activities and managed by us. These are activi- our relationship with stakeholders. ties that Novus has identified both In the future, it is possible that topics as important and that we can influ- and projects could be presented and | NOVUS International
  9. 9. discussed with external stakeholders staff, distributors, consultants and to ensure that we are focused on the any other non-permanent employees items of greatest impact for the indus- working with Novus under long- or tries in which we operate. short-term contracts (e.g., consul- Over time, Novus will be able tants). to develop a basis for deriving Key Environmental parameters in Performance Indica- this report and on our website are tors (KPIs) that can calculated from the data supplied by be used to monitor Novus’s production sites. Most of the progress in sustain- data reported has been recorded by ability activities and Novus staff or corporate management reporting. Reporting teams as part of our normal manage- will likely be based ment processes. Some, such as ‘Total on information held workforce by employment type, (or already reported) employment contract, and region’ and by corporate offices ‘Operations identified as having signif- and on informa- icant risk for incidents of child labor, tion gathered from and measures taken to contribute the businesses and to the elimination of child labor’ are operating compa- gathered specifically for this report. nies that are fully owned by Novus. All the data was checked, collated and Acquisitions will be included in future confirmed by Novus management. sustainability reports when they are Assembly and reporting of the 100% owned by Novus before the end above data and activities constitute of our fiscal year, which is currently qualification for Report Application 31 March. Divestments during a fiscal Level C of the current guidelines of the year and activities or operations of Global Reporting Initiative (G3). A GRI Novus’s contract manufacturers and index and an Application Level Grid distributors are not included in this on pages 26-27 list the performance sustainability report. A review of indicators reported in this sustain- our agreements will be made and a ability report. future determination provided as to Novus is also addressing issues Novus’s ability to report on third party that are external to the boundaries manufacturing partner’s operations or of its activities and includes activities activities. such as support for advanced degrees Statistics on social data reported, in agricultural education, certification such as number of employees, relate programs, environmental funding and to all Novus sites, excluding agency partnerships, and responsible andHow Novus helps customersEnvironment past decade, some with devastating economic Performance Novus strives to help producers meet and social consequences. Producers at every Performance can be measured in manythe nutritional demands of modern livestock level of the food supply chain are being called ways and has many different definitions. Atwhile balancing environmental concerns. We upon to actively participate in the delivery of Novus, we focus on things that matter to ourare committed to protecting the environment safe products to the public. customers. Challenges that customers facein all areas where we conduct business. can come from many directions: economic,The organization works, through scientific Animal Wellbeing the environment, competitors, regulators,research and development, to create nutri- The wellbeing of farm animals is an consumers, and their own internal hurdles.tional programs that reduce the environmental increasingly important public and political Given the global nature of our business andimpact of animal agriculture. issue throughout the world and is important variation of the issues across species we from both ethical and business perspectives. serve, Novus has many opportunities to helpFood Safety Animals in less stressful environments have our customers. Food safety is a global public health issue. better performance, a lower occurrence ofOutbreaks of food-borne disease have been disease and higher reproduction rates.documented on every continent within the Scope of Report |
  10. 10. As we finish our first 17 years, we have created a global organization with strong commitments to sustainable business practices. We will continue to grow and expand, all while using our Vision, Mission and Core Values as tools for aligning our activities and improving our leadership role in the industry. Novus’s business strategies and Vision for Sustainability actions flow directly from the Vision, Mission and Core Values – this includes embedding sustainable prac- tices in every employee’s activities. Novus takes the industry’s challenges: performance, the environment, food Vision • Mission • Core Values safety, and animal wellbeing very seriously and as such, they form an integral part of our corporate objec- tives regarding growth, profit, people Performance Growth and reputation. Environment Profit Food Safety People Vision ■ To help feed the world afford- Animal Wellbeing Reputation able, wholesome food and achieve a higher quality of life. Mission ■ Make a clear difference inNovus’ business strategies and actions stem directly from the company’s vision, mission and core values. This includes sustainably meeting theembedding sustainable practices in every employee’s activities. growing global needs for nutrition and health. Core Values ■ Maximize long-term customer satisfaction: anticipate their needs and exceed their expectations. ■ Provide products with demonstrable value: research leading-edge concepts and supply preferred products and services. ■ Act with integrity: treat all stakeholders – employees, customers, suppliers, business partners, our owners and the public – in a fair and ethical manner. ■ Protect our employees, the public and the environment: make health, safety, security and environmental considerations a priority in all that we do. ■ Seek excellence from all employees: expect and support alignment, diversity, individual growth, initiative and teamwork.10 | NOVUS International
  11. 11. At Novus, we believe in empow- ering those working in animal agriculture – from farm to table – with the tools and knowledge to make a positive impact in their local communities and the world. Our core vision: “help feed the world affordable, wholesome food and Industry Challenges, Actions achieve a higher quality of life” helps us realize scientifically-based and Future Plans innovations that address the key challenges facing the global animal agriculture industry. Sustainability Objectives: Highlights: 2007-08 Directions: Focus on things that matter to our Partnered with the University 2009 and Beyond customers because their challenges of Illinois to demonstrate the value Provide innovative health, impede them from achieving optimal of amino acid supplementation nutrition, safety and quality solutions performance. in commercial dairy herds and that improve performance andPerformance Address challenges that come concluded that quality and volume deliver benefits to our customers and from many directions and stake- of food could be increased while their stakeholders. holders: economic, environment, lowering the cost of production. Develop new and/or improved competitors, regulators, consumers Developed the IDEA screening solutions that provide a higher and customers’ own internal hurdles. tool to enable producers who use ROI for our customers as well as Use and share knowledge and Distillers’ Dried Grain with Solubles sustainability characteristics. skills to improve performance against (DDGS) as a feed ingredient to easily Continue implementing the Novus any number of factors, globally and accurately test the nutritional Management System so we can across all species served. value of the raw materials. improve our managerial leadership, Launched Steadfast Equine, a which will result in improved total structural health supplement that performance for Novus and its helps horses of all ages maintain their customers. peak performance and wellbeing. Objectives: Highlights: 2007-08 Directions: Through scientific research and Successfully passed the Amer- 2009 and Beyond development, create nutritional ican Chemistry Council’s Responsible programs that reduce the Care audit of Novus’s headquarters Long-term plans are to continue environmental impact of animal and Chocolate Bayou sites - no major reporting using the GRI format, and agriculture. findings. continue to attain a high-level ofEnvironment Help producers meet the Invested $20 million in a new disclosure across Novus’ s own nutritional demands of modern global headquarters and expansion operations. livestock while balancing of the Research Center, designed Regularly review the opportunity environmental concerns, including within the environmentally-focused to develop new sustainability improved use and management of framework of the U.S. Green Building projects in each of our world inputs and waste. Council’s LEED program. areas to develop win-win-win As feasible, protect the Novus’s blending plant in Indaia- opportunities for Novus, our environment in all areas where we tuba, Brazil sustainably designed. customers and other stakeholders. conduct business. Facility collects, cleans and or sepa- Continue developing and investing rates water, waste, and recyclables in solutions that reduce consumption and minimizes energy use through of natural resources, improve use or smart control systems. conversion of nutrients and reduce waste to the environment. Industry Challenges, Actions, and Future Plans | 11
  12. 12. is about finding new ways of living, working and innovating that meet individual, business, and society needs without compromising the needs of future generations. We continually work as an orga- nization to assess how we can gear ourselves through innova- tive thought and action towards sustainable business practices and product offerings. Objectives: Highlights: 2007-08 Directions: Increase awareness and oppor- Developed a test model with the 2009 and Beyond tunities to improve management and University of Georgia for measuring Deliver quality to our customers control of food safety as it is a global the effectiveness in reducing trans- by being present for initial new public health issue. mission of Salmonella in broilers. product processing and trials at our Reduce the outbreaks of food- The tests showed organic acids are customers’ locations. Food Safety borne disease globally, by providing an efficient tool for improving food Expand our geographic reach, appropriate preventative and inter- safety. especially in underserved markets, vention-type products and advice. Grew ADVENT® sales in the where we can improve animal Actively participate in the delivery poultry market for control of agriculture and key aspects of food of safe products to the public and coccidiosis. ADVENT® coccidiosis safety. help producers develop efficient control vaccine stimulates high Continue to work with our systems to meet current and new protective immunity, reducing drug network of partners and customers regulatory food safety requirements. resistance and allowing antibiotic to understand their issues and free production. develop solutions and programs that Introduced CapturaTM AF, a free will improve food safety, globally. flowing mycotoxin binder specifically designed for the African market to control aflatoxins in animal feed. Objectives: Highlights: 2007-08 Directions: Ensure that our customers Worked with customers in China 2009 and Beyond understand all the resources Novus to reduce skin infections on poultry has to improve the wellbeing of farm farms by using a combination of Our long term plans are to Animal Wellbeing animals. education, advice and training, continue reporting using the GRI Based on the local hierarchy of resulting in better overall health and format, and eventually reach needs, work with producers to inte- lower mortality rates. complete disclosures in all areas. grate valid, global public and political Worked with producers to Work on establishing new concerns as well as balance ethical improve their sourcing by using tools for sharing Novus’s and our and business perspectives. IDEATM, a non-intrusive test kit devel- industry’s knowledge in a non- Develop programs that provide oped by Novus, to help producers commercial setting. less stressful environments for determine amino acid digestibility of Expand training and education animals and this will result in better proteins for animal consumption. efforts with universities and our performance, a lower occurrence Expanded sales of OASIS® customers in order to raise standards of disease, and higher reproduction hatchling supplement, which is a as well as gain insights to key global rates. hydrated nutritional formulation and regional issues facing them. specially designed for the first days of life for poultry.12 | NOVUS International
  13. 13. In order to grow responsibly, Novus identified four Critical Success Factors — Growth, Profitability, People and Reputation — that are the cornerstones in keeping our organization focused on factors important to our stakeholders. partners to develop and innovate value chains, discovering new ways of improving the food supply. OurCritical Success Factors teams also identify methods to upgrade food quality and nutritional value in emerging economies. One example of growth is through Growth our partnership with Martek Biosci- ences Corporation. Novus sells their Continually assess and high-quality, all-vegetarian source develop our portfolio of of omega-3 fatty acids used for products, customers and enrichment in food production. The suppliers, and implement product is a dried, non-GMO, whole- performance-enabling cell algae that offers an eco-friendly programs and technologies sustainable supply instead of relying to achieve a long-term on fish oil. It has a higher efficiency competitive position. of DHA incorporation than fish oil. At Novus, we are constantly This makes it a more environmental looking for new ways to grow our source of DHA enrichment, and company responsibly and in line it still delivers the proven human with our critical success factors. We health benefits of DHA. endeavor to expand our product line with new products in new markets, Increase Animal-Based and become even more sustainable Food Supply in all that we do. The company’s growth will involve: partnerships -To increase animal productivity and/or licensing agreements, acqui- while lowering operating costs. sitions, organic development and To demonstrate the value of geographic expansion. amino acid supplementation, Novus As part of organic growth, our partnered with the University of Research and Development depart- Illinois to conduct field demonstra- ment diligently works to create new tions in commercial dairy herds. The products that are environmentally goal of the study was to explore the friendly yet deliver the best quality effect of simple methionine supple- and economic returns possible. Our mentation. The study concluded Marketing, Sales and Operations that a producer could generate teams are exploring viable opportu- a 5:1 increase in milk and milk nities to meet the needs of currently components by following the Novus underserved markets around the program. The program can help world. They do this by working with increase the quality and volume Critical Success Factors | 13
  14. 14. not-for-profit organization formed Corporate Council on Africa to build trust and confidence in the U.S. food system. It was formed The Corporate Council on Africa (CCA) is at the forefront of strength- to serve as a resource where ening and facilitating commercial consumers and other stakeholders relationships between the United could find accurate, balanced infor- States and the African continent. mation about the food system and CCA works closely with govern- engage in constructive dialogue ments, multilateral groups and on important issues affecting the businesses to improve Africa’s production and supply of food in the trade and investment climate, and United States. to raise the profile of the conti- Globally, today’s food systems nent within the U.S. business are comprised of many interdepen- community. CCA’s June program, dent segments, from the farmers “Investing in Agriculture Links in and ranchers who grow and raise Africa, brought together potential ” our food, to the processors and business partners and provides food companies that package food Novus an opportunity to develop a products, to the restaurants and sustainable business in nations that retail outlets that make it available to will need to improve food quality consumers. and supply for nearly 1 billion The food system is constantly people. changing and we want to provide As a gold sponsor for the event, Thad Simons and United States Secretary of information that helps consumers Novus hosted a workshop titled, Agriculture Edward T. Schafer understand those changes and a “Education and Knowledge Building in Agriculture Production. Novus ” forum for stakeholders to discuss brings together partners that are investing in reducing risk and expanding them. their business presence in Africa. Novus and the CFI believe the “At Novus, we work to empower emerging markets by transferring our entire system can learn from indi- knowledge in the latest research and technologies related to animal health vidual companies or associations and nutrition, explains CEO Thad Simons. “The Corporate Council on ” that have embraced sound principles Africa is providing a platform for this type of open knowledge exchange. and model best practices in agri- We applaud their efforts and are proud to be in partnership. ” culture. Sound principles and best practices can help the entire system improve performance and reduce of food while lowering the cost of the number of food safety incidents. production. This makes wholesome Novus acts as a guide and offers food accessible to a greater number products, principles and best prac- of people. Improving performance tices that enable food chain partici- in animal agriculture and thus food’s pants to meet regulatory challenges affordability and accessibility is in their operations, and achieve particularly important today, with profitable and responsible business increasing hunger becoming a more solutions. Our involvement in the important global issue every year. CFI underscores Novus’s commit- Novus has practical experience ment to provide sustainable solu- in improving overall performance tions that positively influence the and reducing structural problems, food chain, environmentally, socially, increasing yield in both poultry and and economically.Improving performance in animal agriculture and thus pork industries.food’s affordability and accessibility is particularly Improved Sustainableimportant today. Food Safety Environment - Helping build consumer trust and confidence in contemporary -Help producers meet nutritional food systems by sharing practical demands of modern livestock while information with customers and balancing environmental concerns. consumers to help them under- Minerals in the diet of farm stand how to prevent the spread of animals are essential for optimum disease. nutrition and performance, but Novus is an active participant they pose real environmental and Board Member of the Center challenges. Many nutritionally- for Food Integrity (CFI). The CFI is a important minerals are very diffi-14 | NOVUS International
  15. 15. cult to absorb through an animal’s Reduced EnerGy digestive system. Novus created Consumption special formulations of organic trace minerals (OTM) that have high In 2007, Novus identified that one digestive absorption rates. of its products, a key product in the Novus’s OTMs are more bioavail- performance management area, had able to the animal at the point more benefits than its intended use of absorption compared to other of moisture management through sources of trace minerals. This emulsification. Working with a product provides higher mineral German customer, we found that the availability to the animal, better product’s emulsifying action helped performance and a significant posi- reduce their energy consumption at tive financial impact for the farmer. the feed mill. The resistance of the Users reduce the amount fed to feed produced in the mixer/pelleter their animals, while getting better was lower and there was less wear performance and a calculated ROI of and tear on their equipment. about 5:1 from using Novus’s OTM solutions. Novus’s mineral programs achieve farmers’ goals of animal profitablility performance and profitability with a positive environmental impact with Implement improved busi- reduced levels of minerals that enter ness processes, measures the environment. and supporting systems that will move Novus closer to its customers and deliverNovus has implemented quality programs and maintains increased year-over-year market value.traceability for the products we produce, so producers can rest Profitability is a key ingredient to sustainability as it is part of the tripleassured that the Novus products ingested by animals are safe. bottom line that includes social and environmental factors. Renewable Fuel Sources Amino acid nutrition is extremely -Create solutions that help important in protecting the environ- producers get the maximum value ment. Novus works with customers of by-products from renewable fuel to develop feed formulations that production. deliver specific nutrients required Novus is developing technologies by livestock. When the feed achieves to help customers get maximum this, the precise dosing results in a value of the by-products from reduction in the amount of manure renewable fuel production. Novus produced and minimizes the impact developed a screening tool to on the environment. enable producers who use Distillers’ Novus is co-sponsor of the Dried Grain with Solubles (DDGS) as Responsible Nutrition Project with a feed ingredient to easily and accu- Sindirações, a trade organiza- rately test the nutritional value of tion in Brazil. This project brings the product. DDGS, the by-product together producers, academia and of corn-derived ethanol produc- allied industry partners around tion, offers both opportunities and nutritional strategies to reduce challenges for livestock producers. environmental impact of pork and DDGS are an inexpensive livestock poultry production. A Responsible feed alternative, but their nutritional Nutrition Guide combining the content is highly variable. In order to findings of the group’s research optimize muscle gain for a produc- and practical suggestions to er’s livestock, Novus developed a reduce nitrogen, phosphorus and test kit that helps determine amino trace mineral pollution is being acid digestibility of DDGS. The finalized and is expected to be result is more precise formulation published in early 2009. of diets that improve profitability Critical Success Factors | 15
  16. 16. by lowering feeding costs while The use of local by-products reducing nitrogen excretion into the and feedstuffs can help producers environment. Additionally, Novus greatly reduce their operating costs. offers a line of enzymes to make the However, one of the challenges is DDGS more digestible. assuring the quality and nutritional Novus also recognizes that the value of these products. Novus helps issue of non-fossil energy sources by applying a deep knowledge of is an important concern facing our food quality control with the use of global community. We have made antioxidants. Our technologies help producers leverage local resources. One example: Novus is helping Novus: An Active Member of Key Associations aquaculture producers develop Name Description Role/Activity programs to support community- ACC American Chemistry Council Member based fish meal production. The rapid growth of aquaculture as an ADSA American Dairy Science Association Member industry has spurred the demand Member and for, and price increases of, fish meal. AFIA American Feed Industry Association Committee Member Novus offers sustainable solutions Arbeitsgemeinschaft Qualitätsmanagement that allow our customers to reduce AGQM Biodiesel e.V. (Biodiesel Quality Member fish meal use and offer improved Management Association) animal nutrition. Novus’s platforms CCA Corporate Council on Africa Member to improve lean muscle gain and CFI Center for Food Integrity Board Member gastrointestinal health of aquacul- Feed Additive and Premixture Quality System ture resulted in the development of FAMI-QS Asbl Member a product that partially substitutes European Association FEFANA EU Feed Additives Premixture Association Member fish meal without compromising performance. The fish meal is GAA Global Aquaculture Alliance Member supplemented with a Novus product NASC National Animal Supplement Council Member that is a source of methionine, NCC National Chicken Council Allied Member organic calcium and organic acid to NPPC National Pork Producers Council Member optimize overall performance at a PFI Pet Food Institute Associate Member lower cost. By leveraging Novus’s products and approach, fish meal PSA Poultry Science Association Member that is both consistent in quality and Safe Supply of Affordable Food affordable can be produced at the SSAFE Member Everywhere, Inc. local level. Producers can also enjoy UEP United Egg Producers Allied Member the business benefit of significantly WAC World Affairs Council Member reduced feed expenses because the WAF World Agricultural Forum Board Member transportation and possible importa- tion costs are reduced. WAS World Aquaculture Society Member Fresh Water Conservation alternative fuels an area of strategic - Create new technologies to development and created a unique protect water and its conservation. biodiesel stabilizer based on our Aquaculture represents the deep knowledge of antioxidants. fastest growing sector of global food Novus’s biodiesel stabilizer prevents production and is highly dependent oxidation from exposure to air, heat, on the use of fresh water. Novus light, trace metals, and temperature is contributing to the conservation variations - allowing customers to of fresh water through our new utilize biodiesel over a longer time aquaculture initiative that helps period. This makes biodiesel a more producers lessen the environmental practical alternative. impact of aquaculture. For example, Novus developed Use of Local By-products an amino-acid based dietary supple- -Help producers greatly reduce ment that makes feed highly digest- their operating costs through the ible for carp, the most farmed fish use of local by-products and feed- species in the world. With the Novus stuffs that are of high quality with solution, the level of undigested nutritional value. food passing into the water from16 | NOVUS International
  17. 17. Novus ReceivesNASC’s BestManufacturingPracticesCertification Arenus joined the National AnimalSupplement Council (NASC) in November2006 and successfully completed the initialBest Manufacturing Practices Certificationaudit from NASC in June 2008. Arenusreceived an “A” in the audit, which isthe highest possible rating. The NASCis a voluntary certification organizationthat provides guidance to the companionanimal health products industry for compli- fish as pollution is reduced. From Responsible Careance with regulatory standards. Members a business perspective, producers ManaGement Systemmust demonstrate compliance by: using enjoy higher performance in their (RCMS)accurate labels with complete ingredient fish populations and improved feedlistings, not making unsubstantiated claims costs through optimized rations. -A managed approachon labels or in advertisements, manufac- The result: better returns for farmers to environment, health,turing products under rigorous quality and less of an impact on the envi- safety and security.standards, and ensuring the safety of the ronment. Novus is also working on Novus is RCMS-certi-the ingredients by tracking adverse events. a complementary product line to fied by the AmericanEven though this certification is not obliga- improve water quality at the pond Chemistry Council (ACC).tory to sell supplements in the companion that will further contribute to fresh Novus passed the RCMS, third-partyanimal industry, Novus completed this water conservation. audit of our Chocolate Bayou, Texasrigorous audit. Novus also sees opportunities and Headquarter facilities. An RCMS to improve conservation at its own framework helps deliver results in facilities. Working together with the community awareness and emer- city of Indaiatuba, Brazil, Novus gency response, security, distribu- installed a system for collecting tion, employee health and safety, rainwater to be treated and reused pollution prevention, process safety by our plant and municipality. We and product stewardship. are expecting to collect over 80,000 liters of rainwater per year. Certifications Chocolate Little Gudensburg, Brussels, Indaiatuba, Shanghai, Headquarters, Bayou, Rock, Germany Belgium Brazil China Missouri Texas Arkansas FAMI-QS 4 4 4 4 4 4 GMP+ 4 4 4 4 ISO14000 4 ISO9001 4 4 4 4 4 4 NASC 4 Safe Feed/ Iso22000 4 4 EUREPGAP Safe Food (HACCP) Critical Success Factors | 17