Market Trends of Asia-Pacific Ruminant Feed Industry
Beef Cattle Dominates the Market
The livestock industry in Asia has experienced significant growth over the past few decades, becoming a crucial component of agricultural development. Large-scale ruminant production has emerged to meet the increasing demand for animal products, particularly beef and veal. Farm animals such as buffalo and cattle also play vital economic and social roles in Asian countries. Rapid economic growth has led to a substantial increase in the demand for ruminant meat protein across Asia. According to FAOSTAT, Asia's meat of cattle with bone production reached 15.7 million metric tons in 2022, representing a 2.6% increase from the previous year's volume of 15.3 million metric tons.
Recent decades have seen an uptick in beef consumption, driven by perceived health benefits and its role as a protein source. The OECD-FAO Agricultural Outlook Report 2023 projects that per capita beef consumption in the Asia-Pacific region will increase by 0.4 kg/year over the next decade (2023-2032). The Australian Bureau of Statistics reports that in 2023, red meat production increased by 3.8%. Specifically, cattle slaughtered in the June 2023 quarter rose by 0.9% to 1.7 million metric tons, while beef production in the same quarter increased by 1.9% to 534,207 metric tons. These trends are anticipated to further boost demand in the beef cattle segment of the market in coming years. Increasing awareness among cattle farmers about livestock nutritional requirements has led to high demand for ruminant feed in Asian countries. This trend aligns with the overall growth in ruminant production and consumption across the region.
China Dominates the Market
Ruminant feeding has become crucial in China, offering significant benefits to livestock producers. It enhances cattle's digestive efficiency through pH adjustment and metabolic changes while providing essential nutrients like amino acids and vitamins for optimal growth. At a broader level, population growth, rising per capita meat consumption, and the adoption of intensive farming practices are driving the demand for ruminant feed in the market.
The China Feed Industry Association (CFIA) reported that the country's industrial feed production reached 302.2 million metric tons in 2022, a 3% increase year-on-year. Feed mills increased corn usage in their rations by 30% compared to 2021. While wheat and barley use decreased, the utilization of sorghum, wheat bran, rice bran, and domestically produced DDGs saw significant growth in ruminant feeds. Notably, annual ruminant feed production rose by 9.3%, outpacing swine, and broiler feed growth, indicating potential market expansion in the coming years.
China is experiencing an increasing demand for beef, valued for its high-quality protein content. FAOSTAT data shows beef production in 2022 reached 7.2 million metric tons, up from 6.9 million metric tons in the previous year. This production increase reflects the growing beef demand in the country. In a significant development, the World Wild Fund for Nature (WWF) Beijing Office and the China Meat Association (CMA) launched the "China Sustainable Meat Supply Chain Promotion Plan" in May 2023. This initiative addresses key issues such as forest and land conversion, and greenhouse gas emissions, and provides tools and standards for the sustainable development of China's meat industry. Notably, the growing demand for beef and dairy products is anticipated to drive the ruminant feed market in China during the forecast period.
