Darling Ingredients Inc Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Donald Delray McLee - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Just to kick things off. I'm curious to know how comfortable you are with the overall level of capacity additions in the U.S. market that are expected over the next couple of years? And any potential for oversupply? And then within that backdrop of increasing competition, do you think that could highlight some differentiation within the space between Darling and its peers?

Question: Donald Delray McLee - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. That's really helpful. And then just one more on the feed and food side of the business. Could you talk a bit about where you think livestock inventory levels ended at the -- ended up, winded up at the end of the quarter relative to historical levels following that round of depopulation in Q2? And is there any concern about a potential headwind from reduced near-term demand amid all that depopulation?

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : You talked earlier about some tweaks to how you think about capital deployment. I know this year's CapEx is lighter, given the uncertainty. But going forward, how might we think about your CapEx plans? Were you suggesting CapEx might be lower than in past years? Or is it more that you're changing the types of projects that you're investing in? Or maybe how you're thinking about the project that you would invest in?

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : Thanks for that. I also wanted to follow-up on the new collagen plants opening. Could you just remind us how much your production capacity of collagen increases? What you're assuming in terms of volume growth as we think about the second half of the year, including the ramp? And then just what you're seeing on the demand side to support that supply growth?