Key Takeaways
- Elanco Animal Health announced that the FDA has approved Bovaer®, a methane-reducing feed ingredient, for use in lactating dairy cattle.
- Bovaer can reduce methane emissions by about 30% when fed to cows.
- Elanco is expanding its commercialization of Bovaer across North America, including the U.S., Canada, and Mexico.
- Bovaer aims to help dairy farmers reduce their carbon footprint and create new revenue streams.
- The approval and expansion of Bovaer are expected to accelerate market development and innovation in livestock sustainability.
Elanco Animal Health Announces FDA Approval of Bovaer® for Methane Reduction in Dairy Cows
Elanco Animal Health Incorporated (NYSE: ELAN) announced today that the U.S. Food and Drug Administration (FDA) has completed its comprehensive, multi-year review of Bovaer® (3-NOP). The FDA determined that Bovaer meets safety and efficacy requirements for use in lactating dairy cattle, marking a significant milestone for the methane-reducing feed ingredient.
Impact on Methane Emissions
Bovaer is designed to reduce methane emissions from dairy cows. Feeding one tablespoon of Bovaer per lactating dairy cow per day can reduce methane emissions by about 30%. Jeff Simmons, President and CEO of Elanco Animal Health, emphasized the importance of this development:
“This monumental announcement has the ability to accelerate the opportunity for climate-neutral dairy farming while creating a new revenue stream for dairy farmers across the country. We appreciate FDA’s commitment to maintaining high standards for science-based review, while balancing the need to quickly bring solutions to the market.”
Simmons added, “As global temperatures breach new thresholds, consumers demand more sustainable products and the farm economy battles profitability challenges, we are excited to bring Bovaer to the market as a potential solution. Bovaer will create value for farmers, while helping food companies meet consumer demands and deliver on their sustainability commitments.”
Expanding Access Across North America
Elanco and dsm-firmenich have agreed to expand Elanco’s commercialization of Bovaer across North America, including Canada and Mexico, where the product is already available for use in beef and dairy cattle. Dimitri de Vreeze, CEO at dsm-firmenich, highlighted the strategic collaboration:
“We congratulate Elanco and the U.S. dairy sector on this important milestone, and will support Elanco by providing initial supplies from Europe. This collaboration exemplifies how we can accelerate the expansion and adoption of Bovaer in North America to significantly decrease methane emissions on a large scale, and thereby support global efforts to combat climate change.”
Simmons also expressed appreciation for the partnership with dsm-firmenich, stating, “We appreciate the work dsm-firmenich has invested in this revolutionary product and are pleased they’ve recognized Elanco as the global farm animal health leader and the right partner to bring this solution to farmers across North America.”
Addressing Climate Change
Reducing enteric methane emissions from cattle, which are naturally generated through the enteric fermentation process, represents a key opportunity to address climate change. According to the United Nations, reducing greenhouse gas emissions is critical to preventing irreversible impacts on the planet. Dr. Frank Mitloehner, CLEAR Center Director and University of California Davis Professor, noted the significance:
“Reducing enteric methane is critical if we are to reach our climate goals. It’s exciting our farmers will have an important tool to do that, in Bovaer.”
Creating New Revenue Streams for Farmers
Feeding Bovaer to cows provides a scalable and credible way for dairy farmers to benefit financially from sustainability interventions. Katie Cook, Vice President of Livestock Sustainability and Farm Animal Marketing at Elanco, explained the economic benefits:
“At an added cost of a few cents a gallon of milk, Bovaer can help food companies meet their climate commitments and consumer desire for more sustainable dairy products. By engaging in voluntary carbon markets and securing USDA and state conservation programming, dairy producers have a scalable sustainability practice with the potential to create an annual return of $20 or more per lactating cow by feeding Bovaer.”
Dairy farmers can incorporate Bovaer into their rations and quantify the effect using carbon market-friendly tools like UpLook™ by Elanco. This insights-based engine helps quantify greenhouse gas emissions reductions and track sustainability efforts. Gregg Doud, President and CEO of the National Milk Producers Federation, emphasized the broader impact:
“Products like Elanco’s Bovaer will allow U.S. farmers to be rewarded for participating in voluntary, producer-led sustainability efforts. Bovaer is an innovation that can help U.S. dairy farmers remain globally competitive and maintain their role as leaders in more sustainable dairy production.”
Farmer Perspectives
Dairy farmers have expressed enthusiasm about the potential benefits of Bovaer. Greg Bethard, a dairy farmer from Kansas, shared his experience:
“Dairy producers have made great strides improving the sustainability of our operations. Today’s announcement provides access to a product that has been extensively studied and shown to reduce emissions from dairy cows. Bovaer is a value-creation opportunity for dairies—it’s about helping us provide product in a manner most of our consumers are wanting—a lower carbon footprint food.”
Elanco Animal Health Latest News
Sells Aquaculture Division to Merck for $1.3 Bn (2024/02/06)
Elanco Animal Health Incorporated has announced the sale of its aquaculture division to Merck Animal Health for $1.3 billion. This move allows Elanco to focus on more profitable market segments and invest in innovation within its core focus areas. Merck aims to enhance its offerings in the aquaculture industry and become a leader in this sector. The transaction includes transferring manufacturing sites and employees, and Elanco plans to use the proceeds to reduce its debt and improve its balance sheet.
Elanco Secures Permission to Launch Innovative Swine Health Product in Japan With Tonisity Px (2024/02/01)
Elanco Animal Health Incorporated and Tonisity International Limited have achieved a major advancement in the global animal health sector by receiving approval from the Japanese Ministry of Agriculture, Forestry, and Fisheries to import and sell Tonisity Px in Japan. Tonisity Px, a patented isotonic protein drink for piglets, is designed to improve nutrient absorption, leading to higher weight gain and lower mortality rates among piglets. This move is part of a strategic partnership between Elanco and Tonisity, making Japan an exclusive territory for distributing Tonisity Px, and aligns with their broader strategy to address the challenges in the swine market and promote sustainable production. Already sold in regions including Europe, Asia, North America, South America, and Australia, the introduction of Tonisity Px to the Japanese market is a significant step towards enhancing animal health and productivity, particularly in a region where the swine industry faces challenges such as high pre and post-weaning mortality rates.
Elanco & Tonisity Expand Partnership To Introduce Swine Products in the Philippines (2023/07/05)
Elanco Animal Health and Tonisity International have expanded their partnership to introduce Tonisity Px in the Philippines. Elanco is the exclusive distributor of Tonisity Px in several European countries and Brazil. Including the Philippines in the Strategic Partnership Agreement marks the first expansion of the parties into the Southeast Asian region. This partnership aligns perfectly with Elanco’s strategy to maintain intestinal integrity in their swine herds, contributing to producing safe, abundant, and affordable food for our growing population.
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