Profile: Darling Ingredients Inc (DAR)
14 Jun 2019
Darling Ingredients Inc. (Darling), incorporated on December 13, 1962, is a developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy and fertilizer industries. The Company operates through three segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The Company also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. In addition, the Company provides grease trap services to food service establishments, environmental services to food processors and sells restaurant cooking oil delivery and collection equipment.
The Company is a provider of animal by-product processing, used cooking oil and bakery residual recycling and recovery solutions to the United States food industry. As of December 31, 2016, it operated over 130 processing and transfer facilities in the United States to produce finished products, such as protein (primarily meat and bone meal (MBM) and poultry meal (PM)), fats (primarily bleachable fancy tallow (BFT), poultry grease (PG) and yellow grease (YG)), bakery by-products (BBP) and hides, as well as a range of branded and value-added products. Darling sells these products in North America and throughout the world, primarily to producers of animal feed, pet food, biodiesel, fertilizer and other consumer and industrial ingredients, including oleo-chemicals, soaps and leather goods, for use as ingredients in their products or for further processing. In Canada, the Company operates under the name Rothsay, which is a recycler of animal by-products and producer of biodiesel. Rothsay processes raw materials into finished fat and protein products for use in animal feed, pet food, biodiesel, fertilizer and other ingredients and manufactures biodiesel for domestic and international markets.
Feed Ingredients Segment
The Company's Feed Ingredients segment consists principally of its United States ingredients business, including its used cooking oil, trap grease and food residuals collection businesses, the Rothsay ingredients business, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, technical fats and blood products) and its bakery by-products business. The Company's North American animal by-products operations collect beef, poultry and pork by-products, which are collected primarily from slaughterhouses, grocery stores, butcher shops and food service establishments. In North America, the Company also collects used cooking oil from and service grease traps at restaurants, food service establishments and grocery stores. Used cooking oil is heated, settled, and purified for use as an animal feed additive or is further processed into biodiesel. Products derived from used cooking oil include YG, biodiesel, and Fat for Fuel, which uses grease as a fuel source for industrial boilers and dryers. The Company sells approximately two types of containers, called CleanStar and B.O.S.S., for used cooking oil collection to food service establishments, both of, which are self-contained collection systems that are housed either inside or outside the establishment, with the used cooking oil pumped directly into collection vehicles through an outside valve. The Company also collects non-hazardous liquid and semi-solid waste streams from the food processing industry and reprocesses and recycles these residuals, primarily by permitted land application to enrich soils in accordance with applicable environmental regulations.
The Company produces finished products primarily through the grinding, cooking, separating, drying, and blending of various raw materials. The process starts with the collection of animal by-products, including fat, bones, feathers, offal and other animal by-products. The animal by-products are ground and heated to evaporate water and separate fats from animal tissue, as well as to sterilize and make the material suitable as an ingredient for animal feed. The Company's ingredients and specialty products businesses are operated under the Sonac name by its Sonac C3, Sonac Bone and Sonac Blood business activities. The Company is a processor of bakery residuals in the United States. The bakery by-products division, which operates solely in the United States, collects bakery residual materials and processes the raw materials into BBP, including Cookie Meal, an animal feed ingredient primarily used in poultry and swine rations. Bakery by-products are collected from commercial bakeries that produce a variety of products, including cookies, crackers, cereal, bread, dough, potato chips, pretzels, sweet goods and biscuits. The Company collects these materials by bulk loading onsite at the bakeries utilizing equipment. The automated bakery by-products production process involves sorting and separating raw material, mixing it to produce the appropriate nutritional content, drying it to reduce excess moisture, and grinding it to the consistency of animal feed.
The Company's Feed Ingredients segment also includes the Company's hides businesses, including that operated under the Best Hides name by Darling Ingredients International, and the organic fertilizer business conducted under the Nature Safe name. The Company's hides operations process hides and skins from beef and hog processors, respectively, into outputs used in commercial applications, such as the leather industry. It sells treated hides and skins to external customers, such as tanneries. Best Hides sources, sorts and processes hides from slaughterhouses, renderers and traders in Western Europe. Fresh and salted hides and fresh skins are sold to tanneries, automotive companies, leather processors and to the shoe and furniture industries in Italy, Germany and China. The Company's fertilizer operations utilize finished products from its animal by-products division to manufacture organic fertilizers from ingredients approved by the United States Department of Agriculture that contain no waste by-products (sludge or sewage waste). The Company's North American fertilizer products are sold to golf courses, sports facilities, organic farms and landscaping companies.
Food Ingredients Segment
The Company's Food Ingredients segment consists principally of the gelatin business conducted by Darling Ingredients International under the Rousselot name, the natural casings and meat by-products business conducted by Darling Ingredients International under the CTH name and specialty products businesses conducted by Darling Ingredients International under the Sonac name. Rousselot is a global market provider of gelatin and hydrolyzed collagen for the food, nutritional pharmaceutical and technical (photographic) industries with operations in Europe, China, South America and the United States. Rousselot has a network of approximately 10 production plants and over 10 sales locations, covering sales into approximately 80 countries.
The CTH business of Darling Ingredients International is a natural casings company for the sausage business with operations in Europe, China and the United States. The activities of this business are divided into approximately two categories, such as CTH Casings harvests, sorts and sells hog and sheep casings for worldwide food markets, particularly sausage manufacturers, and harvests, processes and sells hog and beef bowel package items for global pharmaceutical, food and feed market segments; CTH Meat By-Products harvests, purchases and processes hog, sheep and beef meat by-products for customers in the global food and European pet food industries. The Company's Food Ingredients segment includes the heparin and edible fat businesses operated by Darling Ingredients International under the Sonac name. Sonac Heparin extracts crude heparin from hydrolyzed mucosa for application in the pharmaceutical industry. Sonac Fat primarily melts, refines and packages animal fat into food grade fat for the food markets.
Fuel Ingredients Segment
The Company's Fuel Ingredients segment consists of its biofuel business conducted under the Dar Pro and Rothsay names and the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names. The Company produces biodiesel at its facilities in the United States and Canada. In the United States, it uses a portion of its rendered animal fats and recycled greases, as well as third-party additives, to produce Bio G-3000 Premium Diesel Fuel. Its facility in Sainte-Catherine, Quebec also processes tallow and recycled oils produced by it into biodiesel. Its biodiesel product is sold to its internal divisions, as well as to commercial biodiesel producers in the United States and Canada, to be used as biodiesel fuel, a clean burning additive for diesel fuel, or as a biodegradable solvent or cleaning agent. In Europe, Ecoson produces green power from biogas production out of organic sludge and food waste for combined heat plant installations. Ecoson is the industrial digestion operation in the Netherlands. Ecoson's fat refinery produces refined fats and fatty acids.
The Company competes with Cargill, Inc., Tyson Foods, Inc. and Swift & Company.
Darling Ingredients Inc
5601 N Macarthur Blvd
IRVING TX 75038-2616