Animal Feed Industry

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The global Animal Feed Industry, as of early 2011, was estimated at output of US$240 billion annually.[1] In 2010, the industry produced an estimated 717.6 million metric tons of complete animal feed globally.[1] The United States accounted for just under 155.3 million metric tons, or 21.6% of world production. The industry has grown in the past several decades, from global production of 290 million metric tons in 1975 to 626 million metric tons in 2005.[2] Animal feed can contain rendered animal products, manure, plant- and animal-based fats, antibiotics, and metals.[3] For more information on the ingredients used in animal feed, see the article on Animal Feed.

Industry Structure

According to a 2007 report:[3]

"The structure of the U.S. animal feed industry is complex with a multitude of industries and individual producers contributing to the production, mixing, and distribution of feed ingredients and complete feed products. However, there are a few firms that play principal roles in the manufacture of U.S. feeds, including feed mills, rendering plants and protein blenders [U.S. General Accounting Office (GAO) 2000]. Feed mills combine plant and animal based feed ingredients in order to produce mixes designed for specific animal species (U.S. GAO 2000). Rendering plants transform slaughter by-products and animals that are unsuitable for human consumption into animal feed products using grinding, cooking and pressing processes [U.S. GAO 2000: National Renderers Association, Inc. (NRA) 2005a]. Protein blenders mix processed plant and animal based protein ingredients from many sources into animal feeds (U.S. GAO 2000). Once animal feed ingredients are mixed, an estimated 17,500 U.S. animal feed dealers distribute the final feed products to individual feeding operations (Feedstuffs 2005)."

Production Statistics

In 2010, animal feed production in select countries was as follows:[1]

  • United States: 155,275,000 metric tons (21.6% of world production)
  • EU-27: 146,125,000 metric tons (20.4% of world production)
  • China: 108,940,000 metric tons (15.2% of world production)
  • Brazil: 60,400,000 metric tons (8.4% of world production)
  • Mexico: 27,300,000 metric tons (3.8% of world production)
  • Japan: 23,855,000 metric tons (3.3% of world production)

Top Feed Companies

The top world feed manufacturers based on production per year of complete feeds in 2010 included:[4]

Land O'Lakes Purina reported $3.9 billion in animal feed sales in 2008 and $3.4 billion in 2009.[5] In 2009, Land O'Lakes Purina produced 10.1 million metric tons of complete feed, compared to 15.9 million by Cargill, 10.1 million by Tyson Foods, 3.4 million by Smithfield Foods, 2.9 million by ADM Alliance Nutrition, and 2.4 million by Perdue Farms.

Animal Feed Additive Industry

Animal feed additives include: Antibiotics, Vitamins, Minerals, Amino Acids, Pre-Mixes, and Other Animal Feed Additives (Feed Enzymes, Feed Acidifiers, Probiotics). Major feed vitamins include vitamin A (retinol), vitamin E (tocopherol), vitamin B1 (thiamin), vitamin B3 (niacin), and vitamin D3 (cholecalciferol). Amino acids include methionine, lysine, threonine, and tryptophan. Feed enzymes include non-starch polysaccharides (NSPs) and phytases.[6]

A 2007 report estimated that the worldwide animal feed additives market would reach US$15.4 billion by 2010.[7] As of that time, the three largest animal feed additives markets were the U.S., Europe, and Asia, "collectively accounting for about 75 percent of the worldwide share."[7] As of 2007, the U.S. market was estimated at $3.9 billion.[7] The world market for animal feed antibiotics alone was estimated to reach US$4.2 billion by 2010.[7] Additionally, the animal feed amino acids market was estimated at US$3.4 billion 2007 and was projected to grow at least through 2010.[7] The U.S. was the largest animal feed additive producer as of 2007, followed by Japan, Mexico, Brazil, and China.

While the European Union banned Antibiotic Growth Promoters in January 2006, the U.S. continues to allow their use."[7] The industry noted following the EU ban that the "restricted use of antibiotics has spurred growth in alternatives such as feed acidifiers and probiotics. Enzymes are yet another category that have a bright outlook since they reduce phosphorous content in manure."[7]

"The market is relatively concentrated with the top ten companies accounting for about 60 percent of total output. In the US, segments such as feed antibiotics, vitamins, and enzymes are dominated by leading five players. The global landscape is characterized by a number of regional and international players including Adisseo, Ajinomoto, Alpharma, Alltech, Archer Daniels Midland, BASF, Cargill, Chr. Hansen A/S, CJ Corporation, Danisco A/S, Degussa Feed Additives, DSM Nutritional Products, Eli Lilly's Elanco Animal Health, Evialis, Kemin Industries, Kyowa Hakko Kogyo Co, Lallemand, Lesaffre Yeast, Novozymes, Novus, Nutreco, Phibro, Provimi Holding and Tessenderlo."[7]

Resources and Articles

Related SourceWatch Articles

References

  1. 1.0 1.1 1.2 World Feed Panorama: Expensive grain slows industry expansion, Feed International, January/February 2011, p 10, Accessed September 25, 2011.
  2. Peter Best, "World Feed Panorama: China Leads a Late Recovery," Feed International, January/February 2010, p. 12.
  3. 3.0 3.1 Amy R. Sapkota, Lisa Y. Lefferts, Shawn McKenzie and Polly Walker, "What Do We Feed to Food Production Animals? A Review of Animal Feed Ingredients and Their Potential Impacts on Human Health," Environmental Health Perspectives, doi:10.1289/ehp.9760, February 8, 2007.
  4. Top Companies Build Bigger Presence, Feed International, Accessed September 24, 2011.
  5. Peter Best, "Top Feed Companies Report Positive Market Signals," Feed International, September/October 2010, p. 12, accessed September 25, 2011.
  6. Overview Of The Market Size For The Total Animal Feed Additive Market Of Australia & New Zealand., Allbusiness.com, Accessed September 24, 2011.
  7. 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 "World Animal Feed Additives Market to Reach US$15.4 Billion by 2010," The Poultry Site, July 9, 2007.

External Resources

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