2017 Global feed output reaches new heights

by Arvin Donley
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Global feed production in 2017 exceeded 1 billion tonnes, marking the second consecutive year that it has eclipsed the 1-billion-tonne mark, according to the seventh annual Alltech Global Feed Survey released on Jan. 25.

Alltech said global feed output was a record 1.07 billion tonnes, an increase of 2.57% over 2016’s total of 1.032 billion tonnes. The feed industry, valued at $430 billion, has seen 13% growth over the past five years, equating to an average of 2.49% per annum. This growth is supported by the higher reported consumption of meat, milk and eggs, it said.

The survey covers 144 countries and more than 30,000 feed mills. The results show that China and the United States remain the top two countries, producing one-third of all animal feed, and that predominant growth came from the pig, broiler and dairy feed sectors as well as the European and Asia-Pacific regions.

The top seven feed-producing countries in 2017, in order of production output, were China, the United States, Brazil, Russia, Mexico, India and Spain. These countries contain approximately 54% of the world’s feed mills and account for 53% of total production. These countries can be viewed as an indicator of the trends in agriculture, Alltech said.

Russia made the biggest jump, rising from No. 7 to No. 4 in the feed production rankings with an output of 37.6 million tonnes, a 19% increase over 2016.

Aidan Connolly chief innovation officer and VP of corporate accounts for Alltech
Aidan Connolly, chief innovation officer and vice-president of corporate accounts at Alltech.

“There is a desire by President (Vladimir) Putin to focus on self-sufficiency,” said Aidan Connolly, chief innovation officer and vice-president of corporate accounts at Alltech. “He wants to see that in broilers, eggs, milk and pork, to replace imports with local production.”

India also made a big jump in 2017, increasing its feed production by 7%, and this growth is expected to continue through the foreseeable future, Connolly said.

For the first time since 2011, when Alltech conducted its inaugural survey, China saw a fall in feed production, albeit a slight decline of 0.4%. Connolly said China saw a decline in dairy and beef feed production due to cheaper imports and the country also witnessed consolidation in the layer industry.

Noting that feed costs reflect food costs, Connolly said the price of feed is expected to stay low as farmers improve their response to crop disease and drought and with bumper harvests predicted in the world’s primary grain-producing regions.

The Alltech Global Feed Survey assesses compound feed production and prices through information collected by Alltech’s global sales team and in partnership with local feed associations in the last quarter of 2017. It is intended to serve as an information resource for policymakers, decision-makers and industry stakeholders.

“Now in its seventh year of analysis, the Alltech Global Feed Survey continues to serve as a valuable report on the state of the global feed industry,” Connolly said. “In addition to its insights into the feed industry, it serves as a barometer for agriculture as a whole and oftentimes demonstrates the economic strength of the countries included in the survey.”

Alltech Feed survey
Source: Alltech

Regional results

North America: The United States remains the second-largest feed-producing country globally, behind China. North America produces a third of the beef feed, five times that of the next-largest producer. The United States and Canada are two of the top horse feed producing countries. Feed prices in North America are lower than when compared to other regions.

Latin America: Brazil remained the leader in feed production for the region and third overall globally. Brazil, Mexico and Argentina account for almost 75% of regional feed production. Mexico leads the region in beef and layer feed production. Latin America as a region has had the third-highest growth rate over five years, seen primarily in aquaculture, horses and pets.

Europe: Tied with Asia-Pacific for the fastest-growing regions, Europe saw a 3% feed tonnage growth, resulting from increases in pig, broiler and aquafeed production. The region was led by Russia with 37.6 million tonnes produced. Russia increased its estimated pig feed, including more private production. Russian broiler feed production also increased by 3%, while Ukraine, Romania, the U.K. and Belgium also reported higher numbers, supporting growth in the European region. Europe is the top pet food producing region.

Asia-Pacific: The Asia-Pacific region accounts for more than 35% of the world’s feed tonnage. China remained the top feed-producing country in the world with 186.86 million tonnes, a slight decline in overall feed production compared to last year. Asia-Pacific increased by 3% over the 2016 results, primarily due to increases in pig and pet food production. Vietnam grew 4% over the past year and is the second-highest producer of pig and aquafeed in the Asia-Pacific region. About 70% of all aquafeed and 44% of all layer feed is produced in Asia-Pacific countries.

Africa: Africa remains the fastest growing region in the world for dairy and broiler feeds. With a regional average growth rate of nearly 30% over the last five years, it did not show growth in 2017. Pig, dairy, layer and boiler feed production increased, while decreases occurred in beef and aquaculture. Also, on average, Africa is the most expensive region for feeding pigs, layers and broilers. Smaller countries such as Botswana and Mozambique led the growth for pig, dairy, layer and broiler feeds. Beef feed production decreases were reflected in countries such as Zambia and Morocco. While many African nations showed a small increase in aquaculture feed production, the region overall was down primarily because of lower reported feed production in Egypt, which has now been surpassed by Nigeria.

Species results

In the poultry industry, broiler feed production increased across all regions, with the largest growth found in Africa with 10% and Europe with 7%. Romania, Russia and Ukraine all reported steady growth, contributing to Europe’s overall production, while Africa’s growth came primarily from Egypt, Uganda and Mozambique.

Global leaders in pork production, China and Russia, led the way in pig feed production in 2017. Many smaller African countries, particularly Kenya, Tanzania, Mozambique, Uganda and Namibia, also showed increases.

Global dairy feed production saw growth across all regions. Europe, a global leader in dairy production, grew on average by approximately 2%. Africa as a region saw the largest dairy feed production increase by 10%.

Beef feed production reported an overall global decline of approximately 1%, primarily in regions such as Latin America, Africa and Europe. This global downward trend generally has been felt by the industry for some time as more consumers turn to “white” meats such as chicken, pork and fish.

Overall aquaculture feeds showed a slight increase, particularly in the European and Asia-Pacific regions. China reported a decline of 5% this year and in 2016, which could be linked to government controls on feeding practices and food safety, such as the administration of antibiotics.