Market Trends of africa feed additives Industry
The increasing per capita consumption of poultry meat and eggs with higher profit margins which is increasing the poultry production in Africa region
- The African poultry industry plays an important role in commercial activities and in providing quality protein to subsistence farmers and rural communities. Poultry birds accounted for 61.5% of the total animal headcount in Africa in 2022, primarily due to the rising demand for poultry meat and eggs in the region. The number of poultry birds increased by 8.8% from 2017 to 2.2 billion heads in 2022, driven by the growth of poultry farms in the region.
- Among poultry birds, broilers were highly raised due to the increasing demand for meat in the region. In South Africa, chicken meat production increased from 1,570 thousand metric tons in 2021 to 1,577 thousand metric tons in 2022 as major producers invested in the industry to capitalize on higher international and domestic poultry prices and profit margins.
- The African poultry industry is expanding due to the growing demand for poultry products from key importing countries, leading to increased investments in poultry farming. In 2021, Quantum Foods, one of South Africa's largest poultry producers, invested over USD 14 million in its poultry operations, including constructing hatcheries and upgrading broiler farms to boost productivity.
- The per capita consumption of poultry meat in South Africa rose to 35.09 kg in 2022 from 33.7 kg in 2017, and it is expected to grow by 7.5% during the forecast period (2023-2029), driven by the increasing prices of other animal proteins like beef and lamb. These factors are projected to increase the number of farms and headcount during the forecast period (2023-2029).
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Expansion of integrated fish farming and development of inland fisheries is increasing the demand for compound aqua feed
- Aquaculture farming has become one of the largest industries in the agriculture sector in many countries across Africa. Due to unfavorable climatic conditions and a reduction in fish catch, the usage of compound feed in the region decreased by 60% in 2019 compared to the previous year. The increase in freshwater and marine aquaculture farming in the region caused a surge in demand for compound feed, which grew by 152% from 2019 to reach 1.5 million metric tons in 2022. Despite this increase, aquaculture feed production accounted for 4.3% of the total feed production in the region in 2022.
- The rise in aquaculture production in recent years is credited to a significant expansion in the application of nutritional feed, including the use of extruded feed and improved farm management practices, as well as an increase in investments, which led to a 1.3% increase in the production of compound feed from 2020 to 2022. The Egyptian aquaculture feed industry underwent rapid development, with a shift from conventionally pelleted feeds (10%) to high-quality extruded feeds (90%). The Fish Farming Development Fund and similar government schemes in other countries, such as Nigeria, are expected to drive aquaculture farming in the region, thereby increasing feed production.
- Egypt's fisheries and aquaculture development plan aims to increase fish production to 3 million metric tons by 2025 through the expansion of integrated fish farming, development of inland fisheries, and mega-national productions. Thus, an increase in aquaculture production, a rise in the usage of high-quality extruded feed, and an increase in investments are expected to drive feed production in the region.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Kenya is leading consumer of milk and increasing demand for beef and dairy products is increasing the demand for ruminants production
- Broilers had the highest share as there is increase in demand for meat and increasing investments in poultry farming is driving the poultry feed production
- Countries such as Nigeria, South Africa and Kenya invested in swine farming is helping in increasing the demand for swine feed production in the region
- Increased demand for pork meat is increasing the demand for swine production and countries such as South Africa, Egypt and Nigeria have the largest swine population
- Government financial initiatives to meet the growing demand for meat and dairy products and crucial role of healthy feed in producing these products is increasing the ruminants feed production
