CPM to grow in aquafeed and pet food markets after IDAH acquisition
CPM plans to expand its capabilities in Asia and introduce the IDAH brand into Latin America where CPM has a growing and influential presence.
After the announcement of the acquisition of IDAH by CPM, Aquafeed.com talked with Charlie Spearing, general manager at CPM Process Solutions, to get insights on how both companies and the aquafeed industry will take advantage of the move.
The acquisition of IDAH enables CPM to make inroads in markets where the company has growth ambition. “Specifically, IDAH has great strength and presence in the aquafeed and pet food markets with strong relationships with customers in the Southeast Asia and China markets. IDAH joining CPM is a perfect fit,” said Spearing.
CPM is currently operating in several global markets in the Feed, Fuel and Build categories. The Feed Market includes animal nutrition (aquafeed, pet food and animal feed) and consumer food (food processing, oilseed extraction and plant-based protein).
“We see growth opportunities in many of these markets and especially in the aquafeed, pet food and plant-based protein markets, all of which are aligned with the acquisition of IDAH,” Spearing said.
CPM has been providing value-added equipment and automation in the diverse aquafeed market for many years, particularly in size reduction (milling), conditioning, pelleting, crumbling, cooling, automation, and other unit operations. “CPM is increasing its product portfolio and its partnership capability to match the diversity of specifications that the aquaculture industry requires to be successful,” Spearing said.
The IDAH team and business will integrate within CPM’s Process Solutions business unit. Process Solutions is focused on innovative solutions for food, animal feed and advanced materials industries. CPM Process Solutions is now comprised of the following product brands: Century Extrusion, Extricom, Ruiya, Wolverine Proctor, Planet Dryers, TSA Griddle Systems and now IDAH.
By joining CPM, IDAH and its stakeholders benefit in several ways. “The first benefit is economies of scale and global purchasing power to enable the best cost solutions for customers. Secondly, best practice sharing and standardization of processes and equipment will drive manufacturing efficiency and improve quality and service capabilities,” Spearing explained. “Moreover, an expanded global footprint will increase capacity to satisfy customers’ expanding needs and provide the ability to scale and service customers around the world, including but not limited to Asia. Finally, it will allow enhanced capabilities to improve services and expand solution portfolio and capacity as well as cross-training and career growth opportunities for employees.”
CPM will focus the IDAH brand on the protein-based markets of aquafeed, pet food, and alternative proteins. “There are two topics we intend to cultivate. First, develop full process solutions that incorporate all the relevant capabilities and solutions from our product brands IDAH, CPM, and Beta Raven, for the benefit of our clients,” Spearing explained. “And second, leverage the IDAH brand name in targeted geographies that require consultative partnerships to solve processing complexities.”
In terms of markets, CPM intends to leverage and expand its existing manufacturing capabilities in China to support aquafeed and pet food solution growth in China, Southeast Asia and South Asia. Furthermore, the IDAH brand and its capabilities will be introduced into the strategic geography of Latin America where CPM has a growing and influential presence.
CPM plans to keep the innovation path IDAH had over the past few years. “Innovation is very important to CPM and yet another reason why the acquisition of IDAH made perfect sense,” Spearing stated. “One of our core values at CPM is to Be Innovative. Our team is encouraged to be innovative by identifying a problem or need, listening to customers, exploring, testing new ideas, and implementing solutions while being open to change.”