As Lithuania's agricultural sector undergoes a new phase of change and prepares to meet sustainable development and European Green Deal goals, the country's feed industry is also evolving. One of the largest food and feed companies in Lithuania, AB "Kauno Grūdai," declares its commitment to sustainability in all areas of operation, including the production of compound feed and premixes. The company aims to reduce its environmental impact while maintaining increasing production volumes and profitability.
"Sustainability is often something that has long been forgotten," says Šarūnas Valys, Head of Non-Food Business at AB "Kauno Grūdai." "Our clients, large Lithuanian livestock, poultry, and pig farming enterprises, face new sustainability challenges. I am convinced that the primary way to address these challenges is to find ways to do more with less. This means seeking optimal, efficient solutions in all farming processes, including feed production."
According to Valys, "Kauno Grūdai" has been actively refining its sustainability strategy for several years, applying sustainability principles across all areas of operation. Supplying high-quality feed to Lithuanian farms for over 30 years, the company continually invests in improving working conditions, updating equipment, and increasing productivity, with efficiency, high product quality, and targeted feed formulas tailored to client needs as key goals.
From Local Raw Materials to Globally Recognized Certifications
The company sources mostly local raw materials for its products. "For feed production, we purchase locally grown cereals such as wheat, corn, rapeseed, oil, triticale, and barley. We only import crops that cannot be grown in Lithuania or are insufficiently available, such as soybeans or a supplemental quantity of corn. By selecting local suppliers, we shorten supply chains, reduce transportation emissions and costs, resulting in lower prices for the end user. Some studies indicate that using local crops can reduce feed costs by up to 25%. Utilizing local farmers' products strengthens the regional economy and helps avoid international trade risks, like price fluctuations or supply disruptions," says Valys.
An equally significant part of "Kauno Grūdai’s" sustainability strategy is ensuring transparency throughout the supply chain. Valys adds that the company works exclusively with certified suppliers who can ensure that raw materials are sourced responsibly and sustainably. For example, the company uses soybean meal from farming practices that do not harm forests or biodiversity. The company holds sustainability certifications such as ISCC, RTRS, and CCS, which guarantee raw material safety, quality, and traceability.
"One certificate we're proud of is the GMP+ standard, covering premix production and raw material trading and verifying our place in a globally recognized safe and sustainable supply chain. Our clients highly value raw material traceability, and this certification ensures all suppliers are certified. Achieving this requires adjustments that ensure quality control from production and storage to transport and delivery," Valys explains.
Valys notes that this globally recognized certification enhances client trust and increases opportunities to expand operations worldwide.
Promoting Principles of Sustainable Feed Production
According to Valys, one of the key success factors is the ability to address not only their sustainability challenges but also those of their clients. "Kauno Grūdai’" team of experts works closely with farms to offer customized, optimal solutions.
"This involves constant client consultations and the creation of individual feeding rations. We work with unique methods and technologies that accurately assess animals' nutritional needs and select optimal feed compositions, thus reducing feed waste and optimizing animal health and productivity. In feed production, we use natural feed additives, such as probiotics and prebiotics, to enhance animal health and growth. We also use phytase, an enzyme that improves phosphorus absorption in animals, reducing the need for fossil-based phosphorus additives. This approach increases feed efficiency and decreases environmental pollution from phosphorus compounds. Our principle is that feed should meet animals' nutritional needs while supporting their health and well-being," Valys states.
Valys adds that equipment renewal investments are an essential part of implementing the sustainability strategy. The company recently invested in improving working conditions at its compound feed and premix production facility, automation of the production process, and solutions to enhance product quality.
"Six months ago, we installed micro-dosing equipment for premix ingredients in the factory, which allows for precise and responsible dosing of all ingredients required for specific recipes. The micro-dosers measure ingredients with 2-3 grams precision per ton of final product, reducing raw material waste and improving product quality. We also use a heat exchanger that conserves energy," says Valys.
For packaging compound feed and premixes, the company uses recycled or biodegradable materials to reduce plastic waste and its environmental impact. In addition, only recyclable packaging is used for poultry feed.
Education and Continuous Measurement Are Essential
A primary strategic goal in modern livestock farming is meeting consumer needs without harming future generations. With increasingly stringent environmental requirements, every feed-producing company will soon be required to calculate and disclose the environmental impact of its production.
"We are preparing for this step now and will soon implement a CO2 footprint calculation program for feed production. This program will allow us to monitor and evaluate CO2 emissions throughout the production process, from raw material supply to final product manufacturing. What you can’t measure, you can’t control, so we hope that with this technology, we can accurately calculate the carbon footprint of all our compound feeds and better understand where in the production chain we can reduce it," Valys shares.
The company's representative also mentions active collaboration with the Lithuanian University of Health Sciences, with plans to invest in developing feed additives that reduce methane emissions. "Such innovation would contribute to global sustainability goals, and we are currently working on these feed formulas with scientists," adds Valys.
Valys emphasizes that educating both clients and society in general on sustainability is equally important. The company plans to actively pursue the use of by-products in feed production, thus contributing to more efficient resource use and creating a circular production cycle.
"This is successfully done by leading global companies that incorporate by-products like beet pulp, bread crumbs, molasses, and other ingredients into feed. This approach reduces food waste and adds value to by-products. Overall, it reduces production costs and conserves natural resources," Valys states.
In conclusion, Valys highlights that the company's goal is not only to produce high-quality feed but also to set an example for other industries on how innovation and technology can help address global climate challenges: "While this may seem like an additional burden today, in the future, it will become a standard for all companies. We aim to be among the first manufacturers actively contributing to creating a more sustainable and transparent business model."