Update on vitamin A and E situation

This will have a direct effect on both the price and the global availability of these products in the coming months. With this newsflash, we want to inform you about the following:

• The current situation regarding the supply of Vitamin A and E.
• The current impact on prices and our expectations for the future.
• Possible strategies to mitigate the negative effects of higher prices and potential availability issues of Vitamin A and E in poultry, pigs, and ruminants

As BASF is one of the largest producers of Vitamin E in the EU, with a world market share of approximately 20% for Vitamin E and 10% for Vitamin A, a force majeure declared by such a major player has a significant impact on the market. Immediately after the announcement, all other producers stopped offering, and a few days later, spot prices at traders had doubled and were still increasing. Currently, the price for Vitamin E is above €20/kg for prompt delivery, and Vitamin A is over €55/kg. Previously, these prices were €8.30 and €20/kg, respectively.

It appears that for Vitamin A, there is more production capacity globally, with the shortage mainly affecting local supply. Because of the dominant position of BASF, other suppliers have been shortening their stocks in Europe, meaning it will take a few weeks for the market to overcome this shortage. For Vitamin E, the situation is different. Due to summer maintenance at the factories of various suppliers, an increase in production capacity is not expected in the short term. Last Friday, BASF informed their customers of the volumes they could still deliver in the remaining part of Q3 and Q4. The result for Koudijs is that we need to purchase extra from the market or other (certified) suppliers to meet our needs.

Although prices are expected to increase in the coming period, we at Koudijs expect to be able to supply premixes to all our loyal customers in the volumes they normally order. At the moment of writing, it is still difficult to predict what prices will look like in Q4. Will they remain at current spot levels, increase further, or will there be sufficient supply from other producers in the market, leading to slightly lower prices in Q4?

Effect on feed pricing

Price effects in premix and feed can be calculated based on the following assumed prices: Vitamin E increasing from €8.30 to €18/kg, and Vitamin A increasing from €20 to €50/kg.

Possibilities to mitigate the effects of high prices of Vitamin A and E
Before considering the minimum requirement levels of Vitamin A, Vitamin E, and potential alternatives, it is important to understand the roles these vitamins play in the metabolism of animals. Below is a brief summary of both vitamins, as well as an alternative to Vitamin E, followed by species-specific minimum recommendations and advice.

Vitamin A – short update

Vitamin A (retinol) is an essential fat-soluble vitamin that plays a key role in bone formation, growth, energy metabolism, immunity, the formation, protection, and maintenance of epithelial tissue (skin and mucous membranes), fertility, embryonic and fetal development, and vision.

Vitamin A is mainly stored in the liver and can be transferred to eggs or offspring. In cases of dietary deficiency, stored Vitamin A is easily mobilized. Infections can negatively affect the amount of Vitamin A stored in the liver. Deficiency symptoms are quite general, except for poor vision/night blindness and lesions around the eyes. Furthermore, slower growth, abnormal bone development, incoordination of the legs, and rough, dry, scaly skin or feathers can result from a deficiency. More generally, fertility problems (in both males and females), increased abortion/stillbirths, and reduced appetite can also be observed.

Vitamin E (alpha-tocopherol) – short update

Vitamin E is also a fat-soluble essential vitamin. In nature, eight different tocopherols and tocotrienols can be found, with alpha-tocopherol having the highest activity. The main effect of Vitamin E is as an antioxidant, closely related to selenium. It reduces oxidative stress by scavenging free radicals at the intercellular and intracellular levels. Additionally, Vitamin E plays a role in regulating DNA synthesis within cells, protecting against heavy metal toxicity, and preventing muscle degeneration. Vitamin E also affects immunity, the quality of end products like meat, milk, and eggs, and the development of reproductive organs and reproduction. Selenium must be taken into account when considering Vitamin E requirements. Vitamin C has a positive effect on the regeneration of Vitamin E.

Vitamin E is stored in the liver, as well as in fat and muscle tissue within the body. The most characteristic symptom of a deficiency is muscle degeneration. The less specific symptoms are mostly related to fertility disorders or a reduced immune response.

Polyphenols – a short introduction

Polyphenols are secondary plant metabolites that contain bioactive components and are characterized by multiple phenol units. Polyphenols are an important group of exogenous antioxidants, with antioxidant capacity comparable to that of Vitamins E and C. The hydroxyl group on the phenolic ring of polyphenols can transfer a hydrogen atom to a free radical without the polyphenol becoming unstable. Depending on the structure of the polyphenol, more than one donation to a free radical can occur. Additionally, polyphenols can donate an electron to already used antioxidants, such as Vitamins E and C, allowing these vitamins to regenerate and regain their functions.

At Koudijs, we have carefully selected and tested the best polyphenols in relation to their antioxidative capacity. After three years of research, this resulted in a blend of polyphenols on a carrier, which we call OxiGuard. OxiGuard, as a product, is comparable on a 1-to-1 basis with Vitamin E 500.

Vitamin A

Vitamin A (and also Vitamin E) is essential for offspring to have a good start. This is provided via the yolk. We do not recommend aiming for the lowest limits in breeders, as it can lead to future problems with day-old chicks, young broilers, and rearing laying flocks.

In broilers, based on our own R&D dose-response trials, we know that Vitamin A can be lowered significantly, but not during the starter phase for day-old chicks. Therefore, we advise maintaining the same level in (pre)starter feeds and possibly reducing Vitamin A in the subsequent phases. After rearing, Vitamin A is well stored in the liver. However, due to the challenging changes towards production peak, it is recommended to consider lowering Vitamin A levels only after the peak period.

Vitamin E

For Vitamin E, it is important to evaluate its ratios with other oxidative stress-reducing molecules, such as selenium and polyphenols. When Vitamin E is used as an antioxidant, it is possible to reduce part of that Vitamin E and add a natural source of polyphenols, like OxiGuard, to ensure an adequate antioxidative status in the animals. At Koudijs, we have developed a matrix with a standard recommendation for Vitamin E, as well as selected polyphenols (see Table 2a).

Depending on the level of Vitamin E in the feed, selenium, the quality of the raw materials used in the feed, production circumstances, and challenges at the farm level, up to 50% of the Vitamin E can typically be reduced to the levels mentioned in Table 2a and complemented with OxiGuard.

Vitamin A

Vitamin A is often provided at levels higher than strictly required from a nutritional point of view under “standard conditions.” Because it is declared on the feed label, there is a ‘commercial perspective,’ but it also ensures that there is sufficient Vitamin A under all circumstances at the customer level.

Vitamin E

Vitamin E, like Vitamin A, is a label vitamin, and the inclusions used are often clearly higher than the minimum recommendations found in the literature. This is partly for commercial reasons but often to support the health and fertility of the animals or to improve meat quality. A typical example is the higher inclusion used for the prevention of Mulberry heart disease. Higher Vitamin E levels can also be beneficial under stressful circumstances. In relation to meat quality, levels up to 150–200 mg/kg feed can positively affect meat color due to the protection against oxidation.

Table 2b provides an overview of typical standard recommendations. For Vitamin E levels higher than those mentioned in Table 2b, we recommend replacing that portion with 50% Vitamin E and 50% OxiGuard.

• Vitamin A and E both play important roles in immunity and fertility in ruminants. Therefore, a wide range can be found between the minimum required levels of Vitamin A and E for normal functioning under “standard” conditions and the levels used to support maximum immunity (health) and fertility.
• The supply of Carotene, a precursor of Vitamin A, and Vitamin E in dairy and beef rations varies greatly. Fresh green forages contain high levels of Beta Carotene and Vitamin E, while byproducts and hay/haylage/silage from green forages and corn silage contain much less Vitamin A precursors and Vitamin E.
• Sunlight is detrimental to the levels of Vitamin A and E in forages; therefore, the longer the field period, the lower the Vitamin A and E content. Fresh green forages contribute significantly to the total supply of Vitamin A and E in the diet, but their exact contribution is difficult to quantify.
• The absorption rate of carotenes can vary greatly (10-50%), as can the conversion to Vitamin A (17-45%). There are differences between breeds; Holsteins are more efficient than Jerseys and Guernsey cows. As a rule of thumb: 1 mg beta-carotene = 400 IU Vitamin A.
• Typical levels in forages
  
  

• Due to the variability in the forages/feed materials often only with synthetic Vitamin A and E is calculated.

In Table 2c, an overview of typical levels used in the industry is provided. As mentioned, there is a lot of variation depending on the objective: supporting production and/or maximizing health.

Ad*: higher vitamin E levels can be used for many reasons. For levels above mentioned requirements it is possible to replace vit E by 50% Vit E and 50% OxiGuard.

Due to the accident at the BASF factory, the prices of Vitamin A and E are currently much higher and may remain high until the end of the year. We expect to be able to supply premixes to you, our customers, based on the anticipated volumes. The higher prices have a significant impact on both premix and feed prices. Therefore, it is recommended to review your Vitamin A and E premix levels and consider the option of using polyphenols as antioxidants (such as OxiGuard). Our technical specialists are more than happy to review your situation with you.