The global livestock and meat industry is expected to register a significant CAGR over the forecast period.
The highest growth of meat consumption is expected from the Asia-Pacific and Latin American regions, because of changing diet patterns, urbanization, population, and economic growth. For example, China consumes around 28% of the world’s meat, including half of its pork, and an average Chinese person consumes around 63 kg of meat a year.
The worldwide economic downturn has had a very limited effect on the global meat market, which has maintained its positive outlook. Globally, increasing population trends are also supporting the growth of the world meat and seafood market. Limited availability of land and water resources for animal feed production, and increasing use of these resources for food are increasing the demand for animal feed in the global meat industry.
Countries such as India, China, Brazil, and Russia are among the world’s fastest growing economies; rise in per capita income is expected to shift dietary preferences toward protein-rich diets. However, meat consumption patterns are expected to remain significantly different in various parts of the world because of cultural, religious, and other consumer preference factors in different countries.
Environmental regulations surrounding the global compound feed industry, and strict regulations on few feed additives, like antibiotics, are acting as challenges to the compound feed market, thereby effecting the livestock industry.
Locally grown and easily available plant sources, such as soybean meal, rice bran, corn, wheat, cottonseeds, etc. are used as the main ingredients in compound feed. The choice of other ingredients depends on their ready availability. These ingredients are used widely for human consumption as well as for the production of feed, causing the price of feed raw materials to rise.
Additionally, due to an alarming growth of the global population, an increased demand and steady supply, along with unpredictable weather, have led to a rise in the prices of secondary raw materials.
The major concern for the compound feed industry is a severe pressure in procuring raw feed, such as maize, wheat, barley, etc., and the rising prices of these major ingredients, as animal feed accounts for 60-80% of the total cost of livestock production.
However, this scenario is not very pronounced in countries like India, post the political fight on cow slaughtering. Hence, the raw material costs remained at a five-year low and the Indian poultry producers have shown record profits on rising chicken demand after cattle slaughtering restrictions were enacted in the country.
This trend continued in 2016-17 due to the ample monsoon rains that lifted corn and soybean production. However, Indian farmers are struggling to export crop surpluses as the rupee has appreciated and grain and soymeal values are pressured by a global glut.
Major Players: Super Meat, Purely Meat Co., Seaport Meat Co., and the Ventura Meat Company, among others.
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