F E E D
The Global Compound Feed Market ... in Numbers
by Richard Markus, Assistant Director of Development, Biomin
ivestock production trends show that growth varies by geography. Estimates indicate that global compound feed production is approaching one billion metric tons. The estimated industrial compound feed production reached nearly one billion tons in 2014, generating around US $380 billion in annual sales. In addition to feed industry production, a further 250 to 300 million tons on-farm mixed finished feed is also produced. A regional breakdown of the nearly one billion tons of global industrial compound feed production shows that Asia Pacific accounts for 35 percent of production, followed by Europe and Russia (24 percent), North America (20 percent), Latin America (15 percent), and Middle East and Africa (6 percent) (Figure 1). According to the Food and Agricultural Organisation (FAO) the world will have to produce about 60 percent more food by 2050 due to human population growth (from 7.3 billion today to 9 billion) and higher annual meat consumption per capita (from 41.9 kg today to 52 kg).
Soybean, corn, wheat, barley and sorghum are the most commonly used raw materials to produce compound feed. The development of industrialised global compound feed market grew
Figure 1. Global compound feed production by region. Source: BIOMIN
38 | Milling and Grain
13.8 percent between 1990 and 2000, which represents a 1.3 percent compound annual rate (CAGR). From 2000 until 2010 the market CAGR reached 1.72 percent then between 2010 and 2013 the CAGR fell back to 0.5 percent (Figure 2). The global market for compound feed is estimated to grow at CAGR of 1.5 percent between 2014 and 2020. Asia Pacific and South America are estimated to be the fastest growing regions with estimated CAGR of 1.7 percent and 1.8 percent respectively (PR Newswire, 2014). Within the compound feed market, the swine feed segment is poised for a CAGR of 3.92 percent between 2012 and 2017, making it the fastest growing segment within animal feed market, followed by poultry and aqua feed. Asia has the most promising growth potential in the compound feed industry as the consumption of animal-based and animal-derived products escalates with higher disposable incomes.
Feed market by species
The estimated share of industrial compound feed production is highest for pet and aqua feed (95 percent to 100 percent), presumably due to greater requirements regarding technological know-how and investment. The industrialised animal feed productionâ€™s share of total feed production is expected to be lower for poultry (85 percent to 95 percent), swine (70 percent to 75 percent) and ruminant (65 to 70 percent) industries. Global poultry production requires around 500 million tons of compound feed (industrial and on-farm production) taking into consideration the annual meat and egg production data.
Figure 2. CAGR of the compound feed market. Source: WATT, 2014; PR Newswire, 2014