According to Agri-Food Outlook 2023 report, prepared by Alltech, global feed tonnage totaled 1.266 billion metric tons in 2022. 251.9 million tons of this is cattle feed. This corresponds to about 20 percent of the total compound feed production in the world. On the other hand, the global commercial scale of the cattle feed market is estimated to be between US$ 80 and 90 billion. According to the report of Future Market Insights, the value size of the global cattle feed market was US$ 81.7 billion in 2022. The market is anticipated to reach a market valuation of US$ 125.8 billion in 2032 reaching a CAGR of 4% during 2022-2032 forecast period.
By Derya Yildiz
As different animal types have different nutritional needs, feeds often differ from one another. Compound cattle feed is one of the most important types of animal feed for a cattle’s overall health. It includes a blend of concentrated ingredients, such as molasses, mixers, vitamins, minerals, grains, protein cakes, and agro-industrial by-products in suitable proportions. Also, cattle feed is a rich source of omega-3, fibres, acidifiers, carbohydrates, antibiotics, enzymes, and antioxidants. In other words, it contains protein, energy, minerals, and vitamins that animals require for growth, maintenance, and milk production. The primary aim of feeding quality feed to cattle is to improve the animals’ health and thus enable quality animal produce. At present, they are commercially available in the mash, pellets, crumbles, and cube forms.
GLOBAL CATTLE FEED PRODUCTION
According to Agri-Food Outlook 2023 report, prepared by Alltech, global feed tonnage totaled 1.266 billion metric tons in 2022. 251.9 million tons of this is cattle feed. This corresponds to about 20 percent of the total compound feed production in the world. Cattle feed is also divided into two groups as beef and dairy feed. In its report, Alltech explains that globally, decreases in feed tonnage were reported in the beef and dairy sectors. According to the data in the report, global dairy feed production, which was 135.6 million tons in 2021, decreased by 1.3% in 2022 to 133.8 million tons. Beef feed production decreased by 0.3% in 2022 compared to the previous year and amounted to 118 million tons.
Dairy Feed Production on Regional Basis
Europe has the largest share in world dairy feed production with a production of 42.1 million tons in 2022. In the region, many countries among others had reductions in dairy feed tonnage, including the Netherlands, Turkey, Spain, Poland, Sweden, Belgium, Ukraine and Bulgaria. There was a 6% increase in feed production in Ireland, where summer droughts necessitated the need for supplementary feed. Increases also were reported in Portugal, the Czech Republic, Austria, Lithuania, Hungary and others.
North America follows Europe with 28.5 million tons in world dairy feed production. In North America, feed tonnage dropped slightly in 2022, with the U.S. and Canada reporting a 0.82% and 0.70% decline in dairy feed production, respectively. A reduction in dairy cows slowed feed production in the U.S., where high building costs and feed costs have limited expansion.
Latin America ranks third in world dairy feed production with 25.5 million tons. According to the Alltech report, Peru reported a double-digit feed production decrease in 2022 due to reduced commercial dairy population in the region. Brazil’s dairy feed production dropped in 2022 because of unfavorable weather that resulted in poorer pasture conditions, as well as lower consumer demand, economic challenges, low consumer disposable income and rising milk retail prices.
The total dairy feed production in the Asia-Pacific region in 2022 is 24.1 million tons. In the region, Vietnam reported a 16% growth in feed production. Smaller increases were reported in India, China, Japan, Thailand, Malaysia, Taiwan and Mongolia. Nepal, Pakistan, Sri Lanka and Bangladesh reported decreases in dairy feed tonnage because of reduced milk consumption and reductions in breeder stock.
The Middle East has achieved a very serious increase of 7% in dairy feed production in 2022. In Africa, dairy feed tonnage dropped or remained flat in most of the feed-producing countries.
In Oceania, which produced 1.5 million tons of dairy feed in 2022, there is a decline of nearly 5% compared to the previous year. According to the 2023 Alltech Agri-Food Outlook, there was a 23.7% (0.028 MMT) increase in New Zealand’s dairy feed tonnage. High milk prices encouraged farmers to feed more but this was tempered by high feed prices. Australia’s dairy feed production fell by over 7%, resulting in an overall regional decline of around 5%.
Beef Feed Production on Regional Basis
North America is the largest producer of beef feed with 67.3 million tons. According to the report of Alltech, North America is in its fourth straight year of declining herd population caused by drought and economic issues, but it has not affected feed production. Experts anticipate 2023 to be the tipping point, with a predicted decline of 2-3%. Additional economic pressure will be put on the American producer; the American dollar is expected to remain strong and exports are likely to decrease.
In Latin America, which ranks second in world cattle feed production with 16 million tons, the high prices of bovine animals and meat in 2022 provided a steady incentive for cattle growers to expand production. Latin America is followed by Europe with 15.7 million tons. In Europe, though several countries reported significant increases, overall feed production was down over 10%. Bulgaria reported a small shift from dairy to beef production because of low milk prices. In many cases, drought and higher beef prices incentivized feed additive.
The amount of beef feed produced in the Asia-Pacific region in 2022 is 14.2 million tons. In its report, Alltech shares the following details about the countries in the region: Feed millers in Bangladesh are focusing more on cattle feed while the market for concentrate feed is growing significantly. As a result, that country reported a 56% increase in its beef feed production, from 0.261 MMT to 0.408 MMT. South Korea reported a 3% increase in feed production, from 4.06 MMT to nearly 4.2 MMT. China and Japan also reported small increases.
In Africa, beef feed production grew nearly 4% in 2022, with the biggest increases happening in Namibia and Mozambique. In Middle East, there was very little growth in beef feed production in 2022. Finally in Oceania, production dropped in both Australia and New Zealand. The region reported a 12% decline in beef feed tonnage. In Australia, the reduction in feed tonnage was a result of plentiful grass, not a reflection of any changes in the demand for beef.
MARKET GROWTH EXPECTATIONS
There are different forecasts of the global commercial scale of the cattle feed market. For example, according to the Future Market Insights (FMI) report, the value size of the global cattle feed market was US$ 81.7 billion in 2022. The market is anticipated to reach a market valuation of US$ 125.8 billion in 2032 reaching a CAGR of 4% during 2022-2032 forecast period.
According to the Expert Market Research (EMR), the global cattle feed market attained a value of about US$ 63.95 billion in 2020, driven by the increasing demand for animal products. Impact of rising concerns regarding animal welfare, the market is expected to grow at a CAGR of 3.80% in the forecast period of 2023-2028 to reach approximately US$ 79.8 billion by 2026.
According to another report by IMARC Group, the global cattle feed market size reached US$ 84.9 billion in 2022. IMARC Group expects the market to reach US$ 104.3 billion by 2028, performing a growth rate (CAGR) of 3.28% during 2023-2028.
DataBridge Market Research also expects the global compound cattle feed market to grow at a rapid pace during the forecast period of 2022-2039. Data Bridge Market Research analyses that cattle feed market was valued at US$ 80.73 billion in 2021 and is expected to reach the value of US$ 117.47 billion by 2029, at a CAGR of 4.80% during the forecast period of 2022-2029.
MARKET DRIVERS & RESTRICTIONS
The global market for cattle feed is being driven by the increasing demand for animal-based products, such as dairy and meat products. According to the EMR, this can be attributed to the increasing world population and the benefits associated with animal-based products. In addition, in order to meet the rising demand for animal-based products, the number of cattle stocks are rising, subsequently invigorating the demand for cattle feed. This is contributing to the growth of the market. Furthermore, due to the increase in herd sizes, scientific methods of organising and managing farms are propelling farmers to embrace cattle feed, which is high in nutrition, thereby promoting larger yields and hence supporting the overall growth of the market. Moreover, trends surrounding the gradual shift from unorganised livestock farming to the organised sector in developing countries, majorly due to the growth of the industrial sector, is boosting the market for cattle feed. In addition to the aforementioned factors, regulations centred around sustainability are expected to boost the market growth of cattle feed. Restrictions on nitrogen run-off are expected to stimulate lower protein diets, and precision diets evaluated by data-driven technology in order to boost the green economy, promote animal health, and increase animal yields which are expected to drive the market growth of cattle feed over the forecast period.
Drawing attention to similar factors in its report, DataBridge Market Research also touches on restrictions. According to the report, volatility in the prices of raw material along with stringent regulatory policies which will likely to inhibit the growth of the cattle feed market in the 2022-2029 forecast period. Monitoring mycotoxin contamination will become the foremost challenge in the market growth.
Some of the major players:
AB Agri
Abalıoğlu Group
ADM Animal Nutrition
AFGRI Animal Feeds
Agrofeed
Alltech
Ambar
ANCO
Arab Company for Livestock Development (ACOLID)
Arasco Feed
Associated British Foods
Avril/Sanders
Beijing Goke Agriculture
Betagro Group
Cargill
COFCO Meat
CP Group
Danish Agro Group
DBN Group
De Heus Animal Nutrition
DLG Group
DTC Deutsche Tiernahrung Cremer
East Hope Group
Farmer’s Grain Company
Felleskjøpet Rogaland Agder
ForFarmers
Godrej Group
Grupo Vall Companys
Haid Group
Harim Group
Hi-Pro Feeds
Italcol
Itochu Feed Mills Co.
J. D. Heiskell & Co.
J.R. Simplot Company
Japfa Comfeed
JBS S.A.
Kent Nutrition Group
Kyodo Shiryo Co.
Land O’lakes
Marubeni Nisshin Feed Co.
Masan Nutri-Science
Masterfeeds L.P.
Matli
Megamix
Neovia
New Hope Group
NongHyup Feed Inc.
Nutréa Nutrition Animale (NNA)
Nutreco
Perdue Farms
Provita Eurotech
Purina Animal Nutrition
Quantum Foods
RCL Foods Ltd.
Ridley Inc.
Royal Agrifirm Group
Scratch Peck Feeds
Shaanxi Chia Tai
Shanthi Feeds
Southern States Cooperative
Sunopta
Tongwei Group
Toyohashi Feed Mills
Triskalia
TS Corp.
United Farmer’s Cooperative
Wellhope Agri-Tech
Wen’s Food Group
Woosung Feed Co.
Yuetai Group
Zambeef Products PLC
Zemach Feed Mill
MARKET STATUS BASED BY TYPE AND REGION
There are typically two types of cattle—beef and dairy. Their feeds are specifically made as beef cattle feed and dairy cattle feed. According to the report of FMI, India, Brazil, and China are the three countries with the highest level of cattle production in the world, with around 300 million cattle piled up in their respective countries together, followed by Africa with 200 million. In spite of the fact that Americans only make up 10% of the world’s cattle, this nation is responsible for nearly 25% of the world’s beef production. So, cattle feed market growth is more likely to be driven by these factors.
Germany is home to approximately 12.9 million cattle, mostly dairy cows. There are 4.2 million dairy cows and 0.7 million suckler cows. According to the European Union’s statistics, Germany is the country with the largest herd of dairy cattle and the second largest population of cattle. It is estimated that the German animal feed market will reach $15.429 billion by 2024. With rising consumer health concerns and expanding dietary practices in raw and processed meats, Germany is one of Europe’s top markets for animal feed.
According to the report of Allied Market Research, global beef feed increased by 1% in 2019. The highest growth was seen in the Oceania region at 13%, or 95,000 metric tons. This was primarily caused by droughts in the region, which reduced forages and forced beef producers to rely on finishing their herds in feedlots. Dairy feed estimations for 2019 recorded very minimal declines globally. The sale in Latin America and Oceania regions decreased by 3% and 12%, respectively. Argentina’s dairy feed is estimated to be down 870,000 metric tons; other countries in Latin America, such as Venezuela and Costa Rica, also recorded declines. The dairy industry faced challenges in Oceania, including in New Zealand, where the government has set new, lowered target emissions.
Asia-Pacific is known to be the dominant region in the cattle feed market share. Asian countries have witnessed higher rate of traction for dairy products, owing to its increased demand from vegan consumers. Some key macroeconomic factors such as rise in social media usage and surge in per-capita income also play an important role in contributing toward the overall growth of the cattle feed market. However, LAMEA is expected to expose significant growth in the future, owing to rise in demand for meat and dairy products in child nutrition. In addition, the region has witnessed considerable surge in number of millennials, who are forefront consumers of new food & meat products. Therefore, rise in millennial population is anticipated to offer remunerative cattle feed market opportunities.
DataBridge Market Research also draws attention to the role of the Asia-Pacific region in the market. According to the report of the research company, Asia-Pacific is widely recognized as the dominant region in terms of cattle feed market share. Dairy products have gained traction in Asian countries as a result of increased demand from vegan consumers.
Resources:
1. Alltech, Agri-Food Outlook 2023, https://www.alltech.com/agri-food-outlook/
2. DataBridge Market Research, Global Cattle Feed Market – Industry Trends and Forecast to 2029, Jul 2022, https://www.databridgemarketresearch.com/reports/global-cattle-feed-market
3. Future Market Insights (FMI), Cattle Feed Market Outlook – 2022-2032, October 2022, https://www.futuremarketinsights.com/reports/cattle-feed-market
4. Expert Market Research (EMR), Global Cattle Feed Market Outlook, https://www.expertmarketresearch.com/reports/cattle-feed-market
5. IMARC Group, Cattle Feed Market – 2023-2028, https://www.imarcgroup.com/cattle-feed-market
6. Allied Market Research, Cattle Feed Market – Global Opportunity Analysis and Industry Forecast 2021–2027, Published Date: Feb 2021, https://www.alliedmarketresearch.com/cattle-feed-market-A09494
Global Cattle Feed Market yazısı ilk önce Feed & Additive Magazine üzerinde ortaya çıktı.