Market Trends of Canada Compound Feed Industry
Increasing Meat Consumption and Export Growth
Meat consumption in Canada has been steadily increasing. Several factors influence the level and type of meat consumption, including population growth, urbanization, demographic shifts, income levels, price fluctuations, and environmental and health considerations. This trend is driving demand in the compound feed market. According to Government of Canada statistics, total poultry availability in 2023 reached 25.5 kilograms (boneless weight) per person, with poultry production increasing by 3.6% from 2022. Red meat availability rose by 1.2% in 2023 compared to 2022, reaching 32.7 kilograms (boneless weight) per person. Notably, pork availability surpassed beef in 2023, with 16.7 kilograms (boneless weight) available per person, a 14.4% increase from 2022. Additionally, standard milk availability increased by 3.0% to 11.5 liters per person. These trends are projected to positively impact the feed industry in the coming years.
The increasing demand for various animal products, including milk, dairy, meat, eggs, and non-food items, has driven the growth in compound feed usage, consequently boosting the compound feed segment in Canada. According to Statistics Canada, the export value of beef and veal rose from USD 4,068 million in 2022 to USD 5,022 million in 2023. Feed quality plays a crucial role in animal product exports by enhancing overall quality, safety, and competitiveness in international markets. High-quality feed ensures that meat, dairy, and eggs meet strict international standards, making them more appealing to foreign buyers. It also helps producers comply with regulatory requirements, reducing the risk of export rejections. Consistently high-quality products build a strong market reputation, potentially increasing demand and commanding higher prices. Furthermore, better feed quality improves feed conversion ratios, leading to more efficient production and lower costs, which enhances profitability and competitiveness. Therefore, investing in high-quality feed is essential for producers aiming to succeed in the global market, as it directly influences the quality, safety, and marketability of animal products, thus driving market growth.
Poultry Leads the Market
Poultry demand in Canada has been increasing, driven by higher domestic consumption and product prices. This growth is attributed to poultry's affordability compared to other meats, its versatility, and nutritional benefits. Strong demand from both in-home dining and food service sectors is projected to maintain high poultry consumption in the coming years.
Per capita consumption of poultry products has risen significantly, as consumers across various demographics increasingly view them as an essential source of protein and nutrition. According to the United States Department of Agriculture, per capita poultry meat consumption in Canada increased from 37.9 kg/person in 2022 to 38.2 kg/person in 2023. The livestock sector has experienced robust growth in response to globalization and the increasing demand for animal-sourced foods. This commercialization of livestock has led to a higher volume of animals in recent years.
According to Statistics Canada, in 2023, Canada had 2,853 regulated chicken producers, 513 registered turkey producers, 243 broiler-hatching egg producers, and 1,243 egg producers. Beyond these 4,852 commercial poultry and egg producers, numerous businesses supported these production activities. The country's poultry industry infrastructure included hatcheries, feed manufacturers, feed supplement suppliers, and drug suppliers. Additionally, many processors, further processors, egg grading facilities, and egg processing establishments in Canada relied on the poultry industries for a significant portion of their business. Consequently, the increasing demand for high-quality feed is driving growth in the compound feed market for the poultry sector during the forecast period.
