AAK Annual Report 2020

Annual Report 2020 28 AAK Demand and volume development for our feed products remained strong throughout 2020 without any significant impact from the pandemic. We did, however, experience a negative financial impact from the volatility in the raw materials market which erased some of the gain from the good demand. Our rapeseed crushing business benefited from favorable market conditions and good margins and delivered significant growth in 2020. Solutions AAK supplies ExPro ® , a rapeseed meal, which is exposed to a special heat treatment process to improve the protein quality for ruminants. ExPro is a perfect soybean meal replacer. We also supply by-pass fats, which are used in dairy cattle feeds to increase milk yield, as well as simple liquid fats. Trends The consolidation trend with farms getting bigger and fewer contin- ues. As a consequence, more farms are producing their own feeds and demand is turning to more concentrated feed products. These require smaller volumes of higher quality, containing more protein and energy. In addition, we are seeing more customers turning to non-GMO feeds. New products During the year, we have launched a new rumen-protected fat and added a new and smaller packaging size for our distributors to better meet the demand from farms producing their own feeds. Future growth In 2021, we aim to continue to grow with our rumen-protected fats and widen our product portfolio. The most interesting opportunities are in some of Sweden’s neighboring countries where our market share is low. We have grown in these countries over the past years, but there is still good potential for continued growth. Feed