Alltech estimates world feed production increase 3% with rapid growth in Europe

USA – Global feed production has grown by 3% to 1.103 billion metric tons in the year 2018, with Europe forming the second-fastest growing region around the world, according to the 2019 Alltech Global Feed Survey.

The survey, carried out on 144 countries and nearly 30,000 feed mills, indicated that the feed industry has grown 14.6% over the past five years at an annual rate of 2.76%.

Demand for protein, coupled with rising global population has seen the sector thrive led by countries like China, USA, Brazil, Russia, India, Mexico, Spain and Turkey.

These top producing countries accounted for 55% of the world’s feed, attributed to the fact that they are home to 59% of world’s feed mills.

The boost in the feed business was enabled by expanded agricultural activities and predominant growth in the poultry (layer, broiler) and dairy feed sectors.

Poultry industry was buoyant in Europe, Poland and Uzbekistan, each growing by around 200,000 metric tons.

Colombia, Peru, Brazil, Mexico, U.S.A, Canada, South Korea, India, Indonesia, all recorded a significant increase in production while Africa saw a small decrease in layer production due to declines in both Egypt and Seychelles.

Globally, broiler production increased by approximately 3% in 2018, recording growth in all regions including Africa which grew by 9% as a result of population growth, rising middle-class and interest in protein.

Dairy feed production grew by 4%, with growing regard in North America, Europe and Africa (primarily due to a significant increase in both Morocco and Nigeria).

The largest increase was in Turkey with 10%, while Ireland, Russia and the U.K. also contributed to the region’s growth.

Global beef feed production was led by North America estimated to have increased 3% in 2018, Europe came in the second place (-1%), followed by Latin America and Asia Pacific region (China and Australia were major contributors).

In North America, feed prices are the lowest globally across all species, and with the availability of land, water and other resources, the region is expected to remain a primary contributor to feed production.

In the African region, most of the major animal production species in ruminant and poultry contributed to the overall growth.

Aquaculture grows strong as pet and pig lag

According to the survey, aquaculture feeds showed growth of 4% over last year, attributed to strong increases in the Asia-Pacific and European regions.

China, the region’s leader, also saw an increase of 1% over last year.

Even as aquaculture remained relatively strong, Asia-Pacific, which is also the primary producing region for pig feed saw a decline with decreases in Mongolia, Vietnam, China, New Zealand and Japan.

Europe was the largest growth region at approximately 2.2 million metric tons, mainly contributed by Russia and Spain.

Latin America saw the greatest growth in pig feed as a percentage at 5%, with the largest growth seen in Mexico and Argentina.

Pet food production is gaining attention in the industry but the sector has been lagging in Latin America and African regions.

Europe, which has been the top-producer in the sector, has declined, producing 8.6 million metric tons in 2018, behind North America (8.8 million metric tons).

Africa saw a small decrease in production, but the actual tonnage is quite small compared to many of the other regions.

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