Global feed production remained steady in 2022 despite significant macroeconomic challenges that affected the entire supply chain, according to the Agri-Food Outlook 2023 published by Alltech.
According to the report, Europe bore the brunt of the impact, including significant disease challenges, severe weather and the impacts of the invasion of Ukraine.
Alltech’s Agri-Food Outlook estimates that global feed tonnage totaled 1.266 billion metric tons (BMT) in 2022, a decrease of less than one-half of one percent from 2021’s estimates.
Alltech Agri-Food Outlook
The annual survey, now in its 12th year, includes data from 142 countries and more than 28,000 feed mills.
It assesses compound feed production and prices by utilising information collected by Alltech’s global sales team in partnership with local feed associations.
It reveals that feed production increased in several regions, including Latin America (1.6%), North America (0.88%) and Oceania (islands of the Pacific, 0.32%).
As a result of improvements in the scale and accuracy of Alltech sources in the Middle East, its 2022 feed production numbers were nearly 25% higher than they were in 2021.
The company said that the Middle East increase is also due in part to an initiative by the Saudi Arabian government to expand broiler chicken production to meet the country’s self-sufficiency goals.
Feed production in Europe decreased by 4.67% and was down by 3.86% in Africa.
Production in the Asia-Pacific region also dropped 0.51%. Globally, increases in feed tonnage were reported in the aquaculture, broiler, layer and pet food sectors, while decreases were reported in the beef, dairy and pig sectors.
The report stated that although it experienced a narrow reduction in feed production, China remains the largest feed-producing country in the world, followed by the United States and Brazil.
Top 10 countries for feed
Together, the top 10 countries consume 64% of the world’s feed, and half of the world’s global feed consumption is concentrated in four countries: China, the U.S., Brazil and India.
Vietnam experienced a great recovery in terms of its feed tonnage in 2022, entering the top 10 ahead of Argentina and Germany and crowding out Turkey, which reported reduced feed tonnage, according to the survey.
Russia overtook Spain, where there was a significant reduction in feed production.
Role of technologies
A variety of technologies are providing growth opportunities for the agri-food industry, survey respondents said.
Among the technologies making the biggest impact are nutritional solutions, biosecurity and the automation of labour/robotics.
Of nutritional solutions, respondents noted enzymes (32%), technologies impacting rumen function (14%) and the management of mycotoxins (14%) as being the most
significant to their market.
The use of enzymes to improve the digestibility of nutrients, decrease the cost of production and reduce the environmental impact of agriculture are having a significant positive impact, one respondent from Spain stated.
Innovative technologies that increase efficiency and improve sustainability were cited by many participants as being highly promising and important.
Sustainability
Efforts to improve environmental sustainability are impacting the feed/animal agriculture sector in most regions, survey respondents said.
The majority of respondents said sustainability efforts are being driven by the government (50% of respondents), food producers and processors (47.27%), consumers (44.74%) and retailers/food service companies (39.47%).
The top sustainability measures being implemented include:
- Reducing antibiotic usage and antimicrobial resistance (AMR);
- Improving animal welfare;
- Producing food more efficiently;
- Reducing water pollution;
- Creating renewable energy;
- Reducing greenhouse gas (GHG) emissions;
- Enhancing nutritional value and food security.
Survey respondents said that some of the biggest agri-related opportunities are new technologies like smart-farm applications, increasing efficiency, incorporating more nutritional solutions and continuing to make efforts to become more sustainable
Disease
Animal diseases have disrupted feed production in more than 80% of countries, according to the Alltech outlook.
Avian influenza (bird flu) affected all regions’ feed production in 2022. In Africa, this disease manifested most significantly in Egypt, Morocco and South Africa.
In Asia, nearly all countries were affected. In Europe, the affected countries included Ireland, Belgium, Bosnia and Herzegovina, Bulgaria, France, Moldova, the Netherlands, Poland, Russia, Serbia, Turkey, the U.K. and Ukraine.
In Europe, African swine fever (ASF) has most significantly affected Ireland and countries in the east.
Biggest challenges
Inflation and the overall state of the economy – particularly the increased prices of raw materials, feed and food – have been the biggest challenges affecting the agri food sector in 2022, respondents said.
Changes in consumer habits such as point of purchase and dietary trends are also making an impact.
“Due to the (Covid-19) epidemic, consumers’ behavior has changed significantly and continuously, and they have taken a more proactive approach to health,” said a survey
respondent from China.
Supply chain disruptions remain an obstacle for the agri-food industry across all regions.
Many regions reported that geopolitical tensions – particularly the invasion of Ukraine – have affected imports and exports, the supply chain and raw materials prices.
The direct impact of the war was reported in Moldova and in Ukraine, where feed production fell by over 35%. The invasion of Ukraine also indirectly affected feed production throughout the rest of the world.
