#101: Lina Toro and Mauricio Agudelo - Unlocking the Secrets of Precision Nutrition and AI in the Animal Protein Industry: Insights from BIALTEC's Founders

Are you ready to discover the secrets of precision nutrition and AI in the animal protein industry?

Join us as we speak with the founders of BIALTEC, Mauricio Agudelo and Lina Maria Toro, to gain exclusive insights on the industry's challenges and opportunities.

From tackling logistics and inflation to understanding the future of animal nutrition, this episode is packed with game-changing information you won't want to miss.

Tune in now and get ready to be inspired by the innovation and vision of BIALTEC.

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Christian Soschner
Mauricio Agudelo
Lina Toro

⏰  Timestamps:
(00:00) Introduction Lina Toro and Mauricio Agudelo, Founders at Bialtec
(05:54) Creating Microbiomes for Animals
(09:13) Big Challenges in 2022 for Bialtec – Logistics and Inflation
(11:38) How did Lina Toro, CFO of Bialtec, deal with the global environment 
(13:31) Perceived Inflation Rate in the Bialtec Eco-System
(14:19) Energy Prices in South America in 2022
(16:40) Bialtec’s Activities in Europe
(20:22) 3 Improvements for Founding a Company in Europe
(25:28) Trends in the Animal Nutrition Industry in 2023

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Transcript

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Christian Soschner 0:00

Are you curious about how precision nutrition and artificial intelligence are revolutionizing the animal protein industry?

SPEAKER_03 0:11

No, it's good. We could establish or set up our business there. Now we have a BV company, uh a Dutch company. You didn't come to Austria.

SPEAKER_01 0:26

Such a big yes.

Christian Soschner 0:30

Join me as I speak with Mauricio Agudello and Lina Maria Toro, the CEO and CFO of BeerTech, a company at the forefront of this innovation.

SPEAKER_01 0:44

Not yet.

Christian Soschner 0:45

Not yet.

SPEAKER_01 0:49

Okay, okay.

SPEAKER_03 0:51

Yes, even now we are um thinking about or restarting the possibility to transfer the IP. For sure, we are going to create the the IP in the in Europe, um, because we want to produce there also and develop some technologies and products there for the European market. But yeah, but uh further uh we are thinking to move um IP from Colombia to Europe and become our European company as a mother company or the headquarters.

SPEAKER_01 1:35

Yeah, and it's something that we are thinking about with having the same problems we had this year about concerning the raw material costs. Actually, uh when you're talking about this uh different protein uh alternatives earlier with Aline, I think it was this German word girl. It's like yeah, we're no matter which kind of protein you're you're you're offering to the market, we're all gonna face exactly the same problem with the costs and the logistics. And um it all began with COVID, and now it's with this Russia-Ukraine situation, even in South America, we're feeling it really strong with the costs of the raw materials.

Christian Soschner 2:26

With a combined 13 years of experience in the biotechnology and financial sectors, they will share insights on the big challenges facing the industry in 2022 and how they are tackling logistics and inflation and what to expect in the animal nutrition industry in 2023. Enjoy the show and promote Lina and Mauricio now to two speakers. Um to see you.

SPEAKER_01 3:03

Good to see you too.

Christian Soschner 3:04

Good to see you again. Brief introduction, Albert Mispicher is a business angel from Austria-Vienna. We were just talking about diagnostics, and uh Lina and Mauricio, maybe you can give an introduction about what you do.

SPEAKER_03 3:19

Yeah, uh we are working to support uh the production uh of animal protein in a more sustainable way. Our approach is design and produce the next generation of fed alities, and we call microbiomes. So we design a complete microbiome according to the diet and with a breed of the animals. The idea is to improve the absorption of nutrients, uh, replace antibiotics growth promoters, and even reduce the emission in greenhouse gases. Uh, all of this uh focus on improve the gut and the microbiome in the gut. So we are producing microbiomes uh in the lab and we standardize them, we microencapsulate them, and then we transfer to animals.

Christian Soschner 4:15

How do you do that?

SPEAKER_03 4:18

Yeah, we have these four technological units, the this uh fermentation. So we cultivate um microbial communities that are yeah, the microbiomes, uh, but also we have the sequency uh genomic part when we standardize the different genes and community involved in this microbiome. Uh also we have artificial intelligence when we use to predict different uh approaches in the fermentation process and even how this microbiome can be work in the field according to different variables. And finally, we have the microencapsulation technology uh when we can protect uh active principles such as microbiomes to protect against thermal and digestive processes until they reach the gut and release there in a controlled way. Yeah, basically, the chore part. But yeah, it's it's uh it's very challenging this process.

Christian Soschner 5:24

I believe that. Albert, it was a pleasure seeing you today. I wish you Merry Christmas and a good start into the next year, and let's catch up soon.

SPEAKER_00 5:33

Also, the best from my side. Have a nice holidays. Good luck for next year. Bye.

Christian Soschner 5:39

See you, bye-bye. As far as you understand your technology, you produce your microbiomes in the labs, and how do you get that back in the animal then? Uh what's is it uh bio nutrition basically?

SPEAKER_03 5:51

It's uh well we uh we we'll start with uh yeah, Fisher's married. This is the starter of the yeah, broth, and from there we'll start to develop this uh noble fermentation process and to understand and standardize, yeah.

Christian Soschner 6:13

And it's really tailor-made, so it's tailor-made for different animals, different outcomes. How much difference do you see between uh when you compare traditional nutrition and your nutrition? What's what's what are the big differences that you see?

SPEAKER_03 6:26

Yeah, and now we are improving the digestibility of the dry matter. Yeah, as you mentioned before, it's very tailor-made uh product or feed additive, and it depends on the raw materials that you are using in the diet. So, yeah, uh, what we are uh seeing here with this new technology, we started with the combination of different um strains like probiotics, uh, but then we keep moving on and um and start with the microbiomes with more complex communities and see uh how the digestibility of the dry matters changes time by time in the fermentation process. So, what we are doing is uh adapting this microbiome to this diet uh in the time, and like evolving the microbiome in order to become more efficient with this specific diet. And one of the ways to measure this is through the digestibility of the nutrients, um, and and all other ways to measure the is yeah, is through the genomic part to standardize what we are getting in the fermentation process. But then in the animal, we are improving also the feed conversion ratio, is the the the main um goal goal in the virtual that we measure in in field, and also replace antibiotics group promoters. Uh we are still working on that, improve the cost of the diet and maximizing the the diet. What we expect in with this is uh by time um improve the efficiency or the next generation of microbiomes. So, yeah, it has a huge potential, we see, because we we can change some raw material, for example, uh increase a little bit more fiber, uh, and in the lab evolve this microbiome to become more efficient or to express the uh the genes involved in the in this kind of uh hydrolysis or yeah conversion of these uh fibers instead of um the normal carbohydrates uh it's a great development.

Christian Soschner 8:56

Uh when we think about 2022, what were your big challenges for your companies?

SPEAKER_03 9:04

Yeah, we had a really huge challenges from different aspects, uh, from the sales part, also or from the market. We need to connect with the pain of the customers, the the animal protein producers, uh, or and try to find uh a good solution, a noble solution that because now this industry, the feed industry is really uh full of different competitors and different companies, huge companies that are offering a lot of different uh uh solutions. So it's really important to go deeper with the pain of the client to see how we can transform the way that they are um using the animal nutrition, and and and that was the biggest challenge that we have in 2020 to keep uh evolving also as a company, as a as a startup. Um and for sure the technical size is also a huge challenge. We hire people very high-skilled, professional in fermentation process and sequencing. And yeah, all all of these technical and market challenges was uh yeah, is is but is the kind of problem that we want to solve.

SPEAKER_01 10:39

So but I also would add in a not technical situation, this whole prices uh uh crisis we had all over the world because it it was difficult to determine which was going to be the selling price for our product because we didn't have like a lot of um we we weren't really certain about which were the prices of our of our raw materials because every month they were changing. So I would I would say that was for me, for example, in my role as a C as the CFO to face for 2022, which was the yeah, the the cost behavior was such a pain, I would say.

Christian Soschner 11:25

How did you take it as a problem as a CFO?

SPEAKER_01 11:28

Uh well what we did, it is it was like we were considering different suppliers from all over the world, and also we had to consider new logistics for transportation for the raw materials. And then well, Colombian government also made a lot of decisions trying to favor all the difficulties that we are local uh producers were facing. So we took advantage of all these national policies and also uh international uh uh trades. So um, yeah, still we had to fix the price, which is not very good in animal industry because we are all in the same crisis. So if you had to make an adjustment in your final product price, then the market is going to feel it too. And then we were kind of uh feeling uh insecure about doing this change in the price of the product. But then the price the market accepted it because it's not just uh a normal feed additive what we're offering right now, but something really tailor-made, which is really offering them the opportunity to uh at the same time share this benefit to their final customers. So it's like when when we understand what's the the the pain of our client, as Marisa was telling, and then we we give them a solution, a tailor-made solution, then it's kind of difficult for them to switch your value proposition to any other supplier. So yeah, but however, we we made our best to not to affect our customers in in this subject.

Christian Soschner 13:15

Which inflation rates did you observe in your environment? How high were they?

SPEAKER_01 13:21

Well, were they were actually some rates that increased in 170 percent?

Christian Soschner 13:26

170 1.0.

SPEAKER_01 13:30

Yeah, yeah, yeah, yeah. So we had to really deal with it, but we not all the raw materials or not all the supplies, but but then we had to really, really, really make a huge turnaround in many of our processes and and stuff to to to being able to face the situation.

Christian Soschner 13:51

I think in in Europe the biggest cost driver was energy prices. So I think the average was four or five hundred percent increase, and I think at the peak it was up to 1400 percent, if I remember it right. Um, but this what about the energy prices in Colombia? How are they? Nothing.

SPEAKER_01 14:10

Uh in South America we didn't feel it that way. Let's say that the the biggest uh uh impact was in the material costs and the transportation costs. Uh but energy, well, maybe fuel or or um but but electricity, we didn't feel it.

Christian Soschner 14:30

I'm curious to learn more from your perspective. Um when I think about transportation, I read very often in the news that uh there is almost no or has been almost no capacity in the last two years to ship goods around the world. How did you experience uh the transportation sector in your industry? Because you said that you buy purchase globally, basically. So, what was your perception of transportation capacity?

SPEAKER_01 14:58

Well, um huge companies such as FedEx or DHL, they had to change a lot of their policies about which goods they're receiving for transporting. And they're also changing, of course, the prices and all the logistics and everything, but uh they told us like with enough time for for for us to plan our costs in advance. So it was easy for us to to work with it. And then with different uh right cargo, they also uh informed us about the issues they were facing like months before. And it's and then we had to change because we were we used to plan our transportation like two months, three months in advance. Now we had to plan like nine nine months in advance. Um yeah, because you have to consider like not right now, but like at the beginning of 2022, it was like yeah, it and at the end of 2021, we we had to make a uh plans for a long-term perspective. Now it's getting like normal again, kind of. And um, yeah, but but but in in logistics, we had to change the the term we were making our plans.

Christian Soschner 16:15

What about I remember our podcast that uh you also had plans to come to Europe, um, create a subsidiary. Uh, how did that project evolve?

SPEAKER_03 18:08

That was good. We could establish or set up our business there. Now we are now we have uh a V V company, uh a Dutch company. No, um you didn't come to Austria, such a pity yet, not yet.

Christian Soschner 18:28

Not yet. Yeah, we have we have some we have some role, we would need you.

SPEAKER_01 18:32

Okay, okay.

SPEAKER_03 18:35

Yes, even now we are um thinking about or restarting the possibility to transfer the IP. For sure, we are going to create the the IP in the in Europe, uh, because we want to produce there also and and develop some technologies and and products there for the European market. But yeah, but uh further uh we are thinking to move um IP from Colombia to to Europe and become our European company as a mother company or the headquarters, yeah, and it's something that we are thinking about. We need to slip on.

Christian Soschner 19:25

What were your biggest learnings uh in creating a subsidiary in Europe while having the headquarters in Colombia?

SPEAKER_01 19:34

There were plenty of them.

SPEAKER_03 19:36

Yeah, I think Lina was more involved in the technical process, yeah, of creating this this company. Uh so I think we can talk.

SPEAKER_01 19:49

Well, the biggest learning is that we have to understand that are very different cultures, South American and European ones. So for us, it was uh just registering the uh the the the company what took like a month and a half.

Christian Soschner 20:06

Yeah, that was that was fast for Europe.

SPEAKER_01 20:09

Yeah, yeah, and yeah, and and and then they were asking for a lot of papers and a lot of information which were not used to it, but then we faced it the best way we could. We also were we did the process by being consulted with a Dutch company, so it it made it it made the process easier, and then opening the bank account was even harder. So it was like, wow, if it's just the beginning, what's gonna be the rest of the story, you know?

SPEAKER_03 20:40

Yeah, but but but I think the the setup the company was normal, easy and faster, but the bank account it was really challenging, and one of the uh things uh that made that harder was because the owner of the um Dutch company is a Colombian company, and the owner of the Colombian company are two entrepreneurs and another busy yeah, another company, so yeah, yeah, like it takes like the whole like the table from the whole structure made the banks to to really had to analyze a lot.

SPEAKER_01 21:20

It took months to to to have this bank account, but finally we did it. So we are now finally starting to to move our process and starting to move the office in the Netherlands.

Christian Soschner 21:36

What should, in my in your opinion, what should be better um to make it more easy for entrepreneurs who want to create a subsidiary in Europe? Uh, which free improvements would you recommend if you had the chance to talk to a politician? And he asks this question.

SPEAKER_03 21:53

Um I think to find a good advisor, uh, people that were in that field, and and as it's gonna be easier if you are an a natural person who is the owner of the company instead of have uh a company, yeah, company owning the the business.

SPEAKER_01 22:14

Really?

Christian Soschner 22:15

Yeah, is there such a difference between yeah, it's a huge difference.

SPEAKER_01 22:19

It's a huge if it's not it's just a person, then you can have a bank account in one week. If there's a company involved, then you will take months.

Christian Soschner 22:28

Why? Why your opinion, why is that so so tricky?

SPEAKER_01 22:32

Yeah, well, I think it's because of the Sarlaft policies, because people have to like the banks and the government have to take care of themselves about terrorism and and uh laundry, money laundering and and stuff like that. And by doing this, uh it's harder to to reach the information from companies than from natural peoples, you know.

Christian Soschner 22:57

So but but I always thought it's uh it doesn't matter really if it's uh it's a person or if it's a limited company that owns it because the process is pretty much the same, and it goes, you say it goes much faster, much quicker for people than for the yeah, because yeah, yeah, it's because people are fine are fineable, you know, they're they're touchable, and then it's fine, it's easier to have information about normal people, but about companies and abroad, which is our case, it's harder for for the local governments and and local banks to to find some information about our commercial behavior if we're doing the right businesses and stuff like that.

SPEAKER_03 23:40

Yeah, and it depends how. Is a owner company. If you are a startup and you are opening a subsidiary or a dollar company, so they need to take a look to the final uh owners, and maybe it takes more time. But if you are a big company, I think also it's gonna be easier. Um, but this more for the financial part for the bank account, yeah, because uh the chamber of commerce, yeah, you can just uh create this uh agreement and present, and it's not too difficult.

SPEAKER_01 24:27

Yeah, but regarding your question about these three um uh advice that I would give to local governments, I I would I wouldn't. I we respect local policies and we understand that European countries have to take care a lot out of how it's business running in every country. So it's like the only advice I would give the different authorities are or these organizations are all the time promoting uh foreign companies to open their businesses in European countries, to be more clear about this situation, about these conditions, because when we're discussing about which country are we going to have our subsidiary, if it's going to be Austria or if it's gonna be the Netherlands or Germany, France, Spain, none of them said about the conditions. If you had this cap table uh with a company owning your own company. So it's like I think it's lack of information while taking the decision. But afterwards, if those are the rules, then you just have to follow them.

Christian Soschner 25:42

Yeah, I always thought it's uh it's easy when you have uh set up the company, so when incorporated the legal entity, then going to the bank is just a matter of a few hours if you get a bank account and can start transferring uh funds into your legal entity. Um, because basically in 2022 we have a lot of advancements in fintech. And uh now I learned with your conversation that uh there is still a two-step process. So you have first to face the hurdle of creating the legal entity, and then there's a second hurdle, which means uh creating a bank account. Did I get the right understanding? So this is uh for basically for non-Europeans, a huge challenge.

SPEAKER_01 26:22

No, actually, uh opening the bank account, the the issue is for Europeans and non-Europeans. So it's like yeah, there we the registration of the company might it might be harder if you're come from abroad, but the up the opening of the bank account, it will take a lot of time, no matter where you're from. I just wondered if Actually, we made the process as being Dutch.

Christian Soschner 26:45

Yeah. Yeah. I I just I just wondered maybe just set up a PayPal account and use the PayPal account for a company. It's a it's a matter of a few hours. Um when when we when we think about 2023, where do you see the food industry, your industry, heading towards?

SPEAKER_03 27:07

Yeah, I think the industry is growing and it will keep growing. Um we have big challenges to solve, such as yeah, reduce the use of cereals, um reduce the emissions, the greenhouse gases, the menu, um, and also reduce the um the additives that can have side effects like antibiotics, or just to talk about the animal protein field that is where we are. But in general terms, uh I think it's keep growing, and but the other people are more conscious about the sustainability and try to how we can produce uh enough uh animal protein to nourish this growing population. So so yeah, and how to reduce the cost is very important now. The the raw material uh is is is high and I think it's going is keep high because the world and different things uh put high prices for important raw materials like corn or or other sources of protein. So the challenge is how we can produce more with less natural resources uh and in more sustainable ways. And yeah, I think there are too many startups and companies and huge companies uh innovating in that field, um looking at what they need to do in order to improve that efficiency. Um and hopefully we we will find good solutions, noble solution. So, yeah, is it's what I expect for the next year.

Christian Soschner 29:09

What's your expectations, Lina, for the financial part of the business? Where do you see the industry heading to regards to logistics, price development, inflation?

SPEAKER_01 29:21

Well, uh, we are all gonna keep having the same uh problems we had this year about concerning the raw material costs. Actually, uh when you were talking about this uh different protein uh alternatives earlier with Aline, I think it was this German word journal. It's like, yeah, we're no matter which kind of protein you're you're you're offering to the market, we're all gonna face exactly the same problem with the costs and the logistics. And um it all began with COVID, and now it's with this Russia-Ukraine situation, even in South America, we're feeling it really strong with the cost of the raw materials. And 2023, it's not gonna be very different. So it's like we have to be very creative and we have to be very serious about the possibility to keep um offering some solutions to the market that can be actually affordable for everyone. Because it's not only about producing, because we the human population is increasing, it's also how their how their like their familiar economy is also evolving, and we have to understand that. So all the time we have to be monitorizing all the all the costs all over the world. How can we find some solutions that can reach uh the different tables everywhere?

Christian Soschner 30:56

That sounds great. Lina and Mauricio, let's pull the next speaker in. It's uh Kimberly Cornfield from the UCL. So I can make a brief introduction. I hope you enjoyed this episode. If you did, I would be grateful if you could show your support by liking it, leaving a comment, and sharing it with others. And if you haven't already, please consider subscribing to my channels to stay updated on future episodes. Your support helps me reach more people who may benefit from the content. Thank you for being a part of our community. Enjoy your day.