FEATURE
insights from Alltech's 7th Global Feed Survey by Aidan Connolly, Chief Innovation Officer and Vice President, Corporate Accounts
Last year's Alltech Global Feed Survey crossed the threshold of one billion metric tonnes of feed produced globally for the first time. This year affirmed that position with an estimate of 1.068 billion metric tonnes.
Aquaculture trends
Aquaculture trends tend to be amongst the most anticipated by the agricultural trade media. This is presumably because of the strong growth of farmed fish over the past 10 years and the degree to which aquaculture is replacing wild fishing as the primary source of fish for human consumption. Aquaculture feeds remained stable overall in 2017. The numbers showed a slight decline in the Asia-Pacific region, while Europe, Latin America and the Middle East regions all increased aqua feed production. African countries mainly increased aquaculture feed production, but one of the larger producers, Egypt, saw a decline. The continued weakness of aquaculture in China (-5%) reported this year and last, and to a lesser degree in the rest of Asia-Pacific, can be linked to changes in consumption, disease outbreaks and a consolidation of the industry. Additionally, government controls on feeding practices and food safety, particularly the administration of antibiotics, may be having an influence on production levels. Brazil, Chile and Peru led the increased reported production in Latin America, and Iran stood out from the pack in accounting for almost all of the reported growth in the Middle East. Carp leads the production of aquaculture feed, with shrimp/prawn and tilapia as the second and third places in total production. Catfish, salmon and trout also ranked, though to lesser degrees.
Global Feed Survey
Now in its seventh year of analysis, the Global Feed Survey continues to serve as a valuable report on the state of the global feed industry. In addition to its insights into the feed industry, it serves as a barometer for agriculture as a whole and demonstrates the economic strength of the countries included in the survey. So what lessons can we draw from the 2018 Alltech Global Feed Survey? I have identified seven highlights representing the key trends for agribusiness leaders – from small dairy farmers in India to the largest pig producers in China.
China - The bull takes a small step back
Since Alltech’s first survey in 2011, China has been identified as the clear leader in the global feed production. This year, a small decline in overall animal feed production was seen in China but registered at less than 0.4 percent of the total. For a country with a growing population such a decline in animal feed production might raise an eyebrow. What does this indicate? China’s dairy and beef feed production both declined by 17 percent. China’s dairy industry is struggling as milk farmers try to balance high priced inputs with poor returns from milk processors. The beef industry’s decline indicates the displacement of local production with both cheaper imports and higher quality imported meats. China’s layer and broiler industries also saw small declines of 11 percent and five percent in feed production, respectively. While the poultry industry as a whole is seeing improved efficiencies due to increased industrialisation, the layer industry has seen relatively rapid consolidation of the world’s largest egg market. Consumption of commercial “white” broilers has stagnated, and prices have been poor. One sector in China that has rebounded is pig feed production, increasing 11 percent this past year, as China’s rationalisation toward larger and more professional farms reaps rewards in costefficient pork production.
Russia leaps upward
The 2018 survey saw large increases in Russia’s overall feed production as the country grows increasingly self-sufficient and less reliant on 26 | August 2018 - International Aquafeed