NovaNews June 2022

NOVA News 28. edition. June2022

28th edition!

Novadan´s international e-newsletter to partners!

Innovators in Cleaning

PHASING OUT EDTA = NOVA NEWS: In this edition of NovaNews, you REA can read about starting up our participating on exhibitions again.

Furthermore, we are thrilled to share with you our celebration of 500 days accident free!

A raw materials update is included and we explain how the situation looks.

And... please be aware about summer holidays - and order well in advance.

We hope you find it interesting and useful.

GOODBYE TO A MORE AND MORE UNWANTED SUBSTANCE Since the early 00s, Novadan has offered a complete range of EDTA-free cleaning agents to the food industry. Since then, the consumption of EDTA has been declining, and recently several manufacturers have reduced their production of EDTA while there have been shortages of raw materials for some time now.

Many municipalities in Denmark have for many years wanted to phase out EDTA, as the substance particularly has affected the efficiency of wastewater treatment in an unfortunate way that increases the risk of unwanted substances in our aquatic environment.

EDTA can also contain the substance NTA. NTA is on the list of carcinogens. Therefore, Novadan has always bought a version without NTA. This version will no longer be produced in the quantities we need, and we have consequently primarily access to EDTA containing NTA, which we do not want to use - both for the sake of our customers and our employees in the production here at Novadan.

Based on the above, we have chosen to completely phase out EDTA from the majority of our products, as our development of new products for several years has been based on developing cleaning agents containing substances with the greatest possible concern for the environment while not compromising quality.

If you have any ”stories/experiences with Novadan products” from your country that could be of interest to our other partners/ distributors, please share it with us by emailing details (and images) to hoy@novadan.dk

The latest development in the availability of EDTA has once and for all closed most products containing EDTA at Novadan, and for many customers this means changes.

Changes that meet the requirements for wastewater discharge but do not disregard the desired cleaning result.

Please welcome the changes and do not hesitate to ask your Novadan consultant if any additional questions.

CELEBRATION OF 500 DAYS ACCIDENT FREE! Or if you are anxious to know more about some topics, which you would like us to write about - again please contact hoy@novadan.dk

This May, ITW Fluids Europe has reached a milestone of 500 days across all of our businesses without an accident. Together with all operational sites, Novadan celebrates this great landmark.

Thanks to all employees for raising the standards we raise a cup to a great safety culture!

by Jens Ole Jensen Sales Manager Food

THE AZORES

6 MILK PRICES CHALLENGE FARMERS

GLOBAL FARMING

The Danish magazine: “Effektivt Landbrug” has recently published a series of articles from the Azores which Novadan has been part of. Jaõa Pereira, Novadan’s consultant in Portugal/ Spain joined when the magazine visited a number of farmer on the Azores.

Mountains surrounding large areas of green agriculture land with grazing cows, vulcanos and subtropic nature. The warm Gulf Stream provides a seawater temperature of 16-26 0C all year round.

Four dairies purchase milk from the 7,700 farms with dairy cows on a total of nine islands.

The dairy farms include large, top-modern farm to small farms almost without any building - only with a milking parlor on a wagon in a corner of the grassland.

Half of the area of the fertile vulcanic islands are used for farming, and 88 percent of this area is used for fodder crops - predominantly grass.

Azoerne:

One of the farmers visited by Effektivt Landbrug is Jorge Alberto who states: ”We are too many farmers and we produce too much milk”.

He is President of the Island’s all-dominating farmers’ association. ”Therefore the dairies offer a catastrophic settlement for the milk - at moment only 2,10 Dkr/kg (=0,28 Euro/kg). This is really a challenge.

Malkekøernes øer midt ude i

Another farmer, Roberto Ponte is part of a Milk Quality program from the dairy where they have to meet and tick some requirements in the daily routines. When we can tick a certain number of requirements, we get a price supplement of 0,20 kroner /L. (=0,3Euro/L). The program is called Happy Cow and one of the requirements is to get the cattle out to grass.

The Quality program is tailored to every farm.

Roberto Ponte suggests: ”We need to get the number of cows down on the Azores in order to get the milk price up” and he continues” Furthermore, the dairies have to be better to innovate and develop new high value products - for instance cheece and to brand the Azores as a quality area far away from pollution.

Så næsten halvdelen af alle køer i

brug, og 88 procent af dette land-

i Stillehavet.

ONSDAG DEN 8. DECEMBER 202

Azoerne Et meget typisk syn på Azoerne: En mælkeproducent med den friskmalkede mælk fra køerne ude på marken på vej til mejeriet - eventuelt med et kreaturtrailer.

De grønne græsmarker ligger som skakfelter overalt på Azoerne - her i den af en sammensunket vulkan.

Få nyheder GRATIS hver dag! - Tilmeld dig vores nyhedsbrev på www.effekt

Havvandet omkring Azoerne by Hans Erik Nielsen16 grade kommer aldrig under Market Manager celcius,Agro og køerne går typisk ude på græs året rundt. Fotos Jørgen P. jensen

Update on the raw material situation and expectations for Q3

by Jens Bramsen Sales Director

2022 is more turbulent than ever and expectations for Q3 likewise.

Since our latest update where we thought the situation couldn’t get any worse, we have to conclude we were wrong again. Unfortunately!

The raw material prices continue to increase and is furthermore challenged by the politicial situation in Europe and deliveries from Asia. The world is not normal in terms of prices and raw material deliveries.

The situation has not changed and we have received massive price changes in Q2. There are many explanations for the situation and the most general are: • • • • • • •

High price increases in energy costs (gas and electricity) pushes the production costs on raw materials up as almost all raw materials require intensive energy to produce.

The increased oil costs put pressure on packaging.

The war in Ukraine is creating concern in the market and raw material supplies from the Asia to Europe will not be delivered due to sanctions.

Continuously higher freight rates (especially from Asia) pushes the prices up and causes delays in the supply chain due to shutdowns in Asia (CV19) High freight rates on tank deliveries due to limited capacity and drivers.

Generally very high inflation rates (incl. wage increases) in all countries are putting pressure on the deliveries.

Force Majour announcements from several large manufacturers (eg. American Acetic acid manufacturers)

50 largest raw material products

Top 50 raw materials (only chemicals)

This curve is an illustration of the development of the price on our 50 largest raw materials in Novadan (only chemicals). As you can see, we have data since Q1 2014 and until now. There is no doubt that what we have seen the recent 9 months is an explosive trend on raw material prices - which we impossibly could have guessed 12 months ago.

HOW IS THE DELIVERY SITUATION? We foresee many and continuous delivery problems and longer delivery times for this Q2 and probably also for Q3.

Some products are more impacted than others. Right now, we foresee most challenges on these raw materials: • PHOSPHORIC ACID: On stock again, prices are 4-5 times higher than normal which affect the end-products very much.

• SODA LYE (NAOH): Was affected by an extreme price increase in the spring which is due to increased energy costs and also shut downs of facilities due to maintenance.

Unfortunately, this raw material is contained in many goods.

• NITRIC ACID: Nitric acid is affected by the high energy prices and a monthly charge is added. The raw material can be delivered again but at higher prices.

• POTASSIUM HYDROXIDE (KOH): High demand for the product and limited access for raw materials has increased the price significantly. Work is underway to get deliveries to Europe from overseas markets but the price has more than tripled the recent 6 months.

• ACETIC ACID: The price on Acetic Acid is still high and the amounts which previously came from overseas markets are currently not shipped to Europe. The overseas suppliers are challenged as to delivering the raw materials.

• MSA ACID: As the Phosporic Acid disappeared from the market, demand on MSA Acid has increased significantly.

Therefore the product is difficult to procure at the moment.

• GLYCERIN: The price has increased a lot as it contains raw materials (typically rapeseed, soy etc.) which have been extremely affected due to lack of sufficient amounts in the market.

• CHLORINE: The product is affected by the high energy- og production costs.

The above mentioned products are just a selection of products where we see the highest delivery challenges at the moment.

However, it also affects ingredients such as surfactants, tensider,silicates, solvents, acids, phosphates, silicone oils etc.

Is it only chemical products that are affected by price increses?

We see price increases all over - in packaging, carton, IBCs, wooden pallets, foil, freight, energy-costs (Novadan’s own consumption of electricity and gas in production). It is more or less the “Perfect Storm” we are up against as to price increases - all aspects are affected in Q2 and it seems to continue in Q3 at the time of writing.

When can we expect to see more “normal” prices again?

It is hard to say. One thing is sure, however. As long as we have high energy prices, we will still see a high price level on raw materials.

The war in Ukraine and the unstable supply chain does not make things easier with regard to the development and pricing.

We cannot set a date for when the situation has normalised but hopefully, we will face better times in Q4 - but noone knows.

We thank for your understanding when we have to increase prices continuously as it is necessary due to the very high price increases from our suppliers. We hope and cross all fingers in Novadan that we get normal times again in the industry.

by Annette Høy Marketing Manager

EDUCATION - VIDEO

During the recent years, we have recorded several videos about Novadan products/applications, cleaning procedures, educational videos (microbiology, hygiene etc). The purpose is to use these in training sessions, to create awareness about products and solutions etc, We wil be happy to share these videos with you, so let us know if you would like to get links to the videos in order to show them in your sales efforts - see an example below regarding Nova X-Dry - Novadan’s hygiene powder for the agriculture industry.

WELCOME TO OUR NEW EMPLOYEES

Jan Ditlevsen Factory Manager

Anja og Chrisstine Customer Service/Export

Anja Jessen

Chrisstine Toft Purchasing Manager

My name is Jan Ditlevsen, and I live in Vejle with my wife and my 2 youngest sons. In total I have 4 kids.

I am 46 and lives in Almind - on the outskirts of Kolding with my husbond and our two children.

Previously I worked 12 years with another ITW company “NKT” in Middelfart, where I spent my time within Operations.

Earlier in My career I also worked just across the street at Platinvej No 8, and before that 13 years within LEGO, all the time within Operations. In my spare time I enjoy time with my family, and I am playing both Golf and Paddle.

I look forward to joining Novadan on the journey ahead. Thank you all for welcoming me so well.

I am educated freight forwarder and since 2001 I was trained at Blue Water Shipping and the recent 15 years at Dachser, where I was mainly in our Service Dept.

My hobbies are family and friends.

Camping is our great passion but I also enjoy a long run and to relax with a good book.

Chrisstine Toft, 56 years old. Live in Kolding with my husband Bo who is within the Transport industry. Together we have 4 grown up children.

I recently worked within the Personal Care business and Food Industry and have been involved with purchase for the last 20 years.

Looking forward to being a part of Novadan and ITW Fluids Europe.

TECH MILK -

DAIRY SEMINAR POLAND

by Konrad Lisiecki Manager Poland

Novadan sp.z o.o. Poland took part as one of the co-organizers in the “TechMilk” seminar organized by the University of Warmia and Mazury (Agricultural University - a technological education center with a known reputation for dairy technology and techniques). There were 48 companies participating in the seminar, including 3 competitors (Ecolab, Diversey and Kersia), which cooperate closely with dairy plants. All dairy plants (≈70) operating in Poland were invited to participate as listeners and visitors. The attendance regarding dairy plants, according to the information provided by the University as the main organizer, was 123 people (Management Board, technologists, production managers, technicians, etc.) and in the opinion of Novadan it was low due to the specific situation regarding the war in Ukraine and still different views on CV- 19.

In the previous years before the pandemic, the turnout was around 500 people from dairies. Our company had a small stand (Photo) and presented a video presentation for the participants of the seminar. The subject of the presentation was “Technical and technological solutions for hygiene maintenance in the era of the global increase in raw material prices”. The topic met with great interest on the part of dairy representatives and even the desire to meet at the production plants in order to discuss the possibilities of using the proposed solutions.

by Torben Jensen Key Account Manager

Tellabs Chemical – Novadan’s Indian distributor participating at Dairy Asia Expo 2022, Lahore targeting Pakistan farmers with hygiene products.

Pakistan is considered among the leading raw milk producing countries in the world, and Pakistan’s dairy industry has great potential and converting to more commercial and large-scale production systems.

Dairy Asia Expo brought together the latest in dairy innovation and the best dairy technology. Crowds of thousands of dairy farmers and dairy professionals, from all over the country on March 21-22., 2022 for Expo Center Lahore, Pakistan where Pakistan’s largest dairy-focused trade show, seminars, dairy chat rooms, digital innovations and lot more was on display....

Diary Asia Expo 2022

ANUGA FoodTec 2022, Cologne Germany At Novadan, we looked forward to restarting our participating on international exhbitions in the food- and drink technology industry after Covid-19.

Once again, Novadan chose to be part of the common Pavillon of Denmark which we find is right for us - both regarding the number of visitors but also due to synergies among the companies.

From Novadan, we participated with four people - Jens Bramsen, Lars Daugaard, Torben Jensen, and myself.

We made a schedule with maximum staffing two days, and the rest of the time we all got to see the distributors in the other halls in shifts.

We are happy to conclude that we got great visits from several customers and consequently many good discussions across the organisations. Furthermore, we talked to several potential customers.

Our overall impression of the exhibition was that is was great to start up exhibitions again. And even though the number of visitors was low, it was relevant and potential visitors we met on our stand. Also, I am excited that a lot of our guest got the chance to taste Danish sausages which is a well known touch, the Danish Pavillon is known for.

My hope is that the exhibition will grow to the same size again as we all felt it was too empty in the corridors between the stands.

Cool Facts…, which also confirms the challenge it is to restart the business life from before Covid-19.

All in all, 1,034 suppliers participated from 44 different countries among which 60 percent (617) came from abroad and 416 came from Germany.

Visitors: Appr. 25,000 visitors from 120 countries came to Anuga FoodTec 2022 among which 57 percent came from abroad.

Compared to the previous Food Tech exhibition in Cologne, the number of visitors was above 50,000 and 1,657 supplier were exhibiting with 1,002 from abroad and 655 from Germany.

I hope to see you in Cologne in March 2024.

by Jens Ole Jensen Sales Manager Food

Nutrifair DK

by Hans Erik Nielsen Market Manager Agro

After two years and four months delay, Novadan participated at the Nutrifair exhibition on May 17–18., 2022 which was the 10th time this rather young exhibition took place.

It was good to shake off the “exhibition dust” a bit. We had updated our graphics and expanded our video show.

The change from January to May was absolutely not conducive for the number of visitors. The first day was very quiet - however, things got better on the second day. As everyone knows, it is not only the number of visitors that matters but more who the visitors are. We actually got some very good leads/contacts to follow up on.

We plan to participate next time - in January (conditional on Covid 19 though) - on a hopefully more well-attended exhibition.

SUMMER HOLIDAY