The North America compound feed market was estimated at a value of about USD 117 million in 2017. The industry is estimated to register a CAGR of over 2.67%, during the forecast period.
Increased Awareness Regarding Safety of Meat and Milk products
Food safety has become an important issue for many governments around the world, especially in North America and Europe. The use of supplements in compound feed, particularly those containing antioxidants, enzymes, and vitamins provides balanced nutrition to animals, and protects them against environmental influences, which cause diseases. Certain pathogenic and parasitic contaminations in meat products in the past decade have raised concerns regarding meat quality and safety. For example, in the year 2014, the US alone had 75 million cases of food poisoning, with 5,000 of these cases being fatal. The US Department of Agriculture (USDA) reports that 70% of the food poisoning is caused by contaminated animal meat. Hormones, pesticides and toxins found in meat and animal by-products despite regulations by agencies, such as the USDA and EPA, modify cell functioning, potentially causing a wide range of effects, including cancer, depressed immune response, nervous system disorders, miscarriages, and birth deformities.
Increased awareness among consumers about the ill effects of consuming chemical laced food products is creating the demand for safe meat and animal by-products in the region. The increasing demand for safe meat and animal by-products is prompting the livestock industry and meat manufacturers to use additives in their compound feed. These supplements prevent diseases and malnutrition by increasing immunity in livestock, and thereby ensure that the food reaching the consumer is safe, and wholesome.
Stringent Regulatory Structure
Regulatory issues are one of the biggest constraints in the animal feed industry. Animal feed production comes under feedstuff regulations in most developed countries. Concerns about the development of antibiotic resistance in humans, through the consumption of meat and animal by-products of animals fed with antibiotics, have led to the ban on antibiotic growth promoters. Since 2006, the European Union has imposed a stringent regulatory framework on the use of antibiotics in animal feed. This was followed by a similar ban in the United States, in 2009. Recent controversies about ban of GM food and feed import can affect the supply of raw materials for compound feed.
In 2013, the US implemented a voluntary plan to phase out the use of certain antibiotics by asking pharmaceutical companies to change the labels on feed antibiotics to state a warning that uses for growth promotion was not allowed. The rule also stated that all antibiotics would have to be issued by a veterinarian, giving the livestock producer’s limited control over the use of antibiotics in livestock.
Stringent regulations in North America will drastically affect the feed industry, across the world due to restrictions in import and export. Many countries, including China, Thailand and Vietnam, which export meat to North America, do not have such strict regulatory framework against antibiotics or animal proteins usage in animals or in feeds. Such disparities in regulations have adverse effects on the global feed trade, especially between developed and developing economies. Producers of animal feed in the developing nations are required to follow strict regulations pertaining to the regional and national health and safety for their products approval in the developed nations. Meeting these mandates it ultimately affects the cost of the final products. Such regulatory initiatives are posing challenges for existing feed products, and increasing the cost of new feed products development.
Key Developments in the Market:
- August 2017: Cargill reached an agreement to acquire the animal feed business of Southern States Cooperative Inc., Richmond, Viginia.
- January 2018: Godrej Agrovet Ltd, bought a majority stake in Israel’s Maxximilk Pvt Ltd.
- June 2017: Netherland’s Agrifirm Group, signed a deal to acquire Poland’s Bacutil to cater to the Central and Eastern Europe market
Major Players: Cargill Inc., Land O’ Lakes, Inc., Alltech, Inc., Archer Daniels Midland, De Heus B.V., Nutreco Nv, among others.
Reasons to Purchase this Report:
- Provides latest insights into the North America Compound Feed Market
- Gives a detailed analysis of the competitive landscape in the compound feed industry segmented by ingredients, by supplements, by animal type, and by geography
- Analyses the market scenario with the help of Porter’s Five Forces Analysis
- Forecasts the market volume and value by assessing the impact of the market drivers and constraints
- 3-month analyst support, along with the Market Estimate sheet in excel
- This report can be customized to meet your requirements. Please connect with our analyst, who will ensure you get a report that suits your needs
1.1 Research Methodology
1.2 General Study Assumptions
2. Research Methodology
2.2 Analysis Methodology
2.3 Study Assumptions
2.4 Econometric Forecast Model
3. Executive Summary
4. Market Overview and Technology Trends
4.1 Current Market Scenario
4.2 Porter's Five Forces Analysis
4.2.1 Bargaining Power of the Suppliers
4.2.2 Bargaining Power of the Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products and Services
4.2.5 Competitive Rivalry within the Industry
5. Market dynamics
5.1.1 Growing Demand for Meat and Aquaculture Products
5.1.2 Increased Awareness Regarding Quality Meat and Milk Products
5.1.3 Increased Industrial Livestock Production
5.2.1 Rising Cost of Raw Materials
5.2.2 Government Regulations
5.3.1 Organic Feed
6. North America Compound Feed Market Segmentation, by Ingredient Type
6.2 Cereal By-products
6.3 Oilseed Meals
7. North America Compound Feed Market Segmentation, by Supplement
7.2 Amino Acids
7.7 Prebiotics & Probiotics
8. North America Compound Feed Market Segmentation, by Animal type
9. North America Compound Feed Market Segmentation, by Country
9.1 United States
10. Competitive landscape
10.2 Market Share Analysis
11. Company profiles
11.1 Cargill Inc.
11.2 Land O’lakes
11.3 Alltech Inc.
11.4 Archer Daniel Midland (Adm)
11.5 Kent Feed
11.6 Tyson Feed
11.7 Southern States Coop