Ruminant livestock are the second largest consumers of compound feed in the world. Increasing global cattle meat production will bolster this trend. Global cattle meat production is expected to reach 65.1 million tons by 2017, with an estimated CAGR of 1.8% from 2012 to 2017. Demand for compound feed in cattle meat production is expected to remain stagnant in developed countries in Europe while a healthy growth rate is expected in developing nations of the region due to increasing demand for meat products.
Source: Mordor Intelligence Analysis
Awareness Regarding Safety of Milk Products
Food safety has become an important issue for many governments around the world, especially in Europe. The use of feed, particularly those containing antioxidants, antibiotics, enzymes, and vitamins provides balanced nutrition to animals and protects them against environmental influences, which cause diseases. Certain pathogenic and parasitic contaminations in meat products such as salmonella, listeria and E. coli, along with various disease outbreaks in livestock animals, such as swine flu and foot and mouth disease, in the past decade, have raised concerns over meat quality and safety. For example, in January 2011 a meat quality issue rose in Germany, where cancer causing dioxin was found in meat products’ prompting the country to take safety steps toward tightening food safety, many countries including South Korea and Slovakia banned pork imports from Germany, due to the health risks involved.
Increased awareness among consumers around the world is increasing the demand for safe meat and animal by-products, this is prompting the livestock industry and meat manufacturers to use additives and premixes in their compound feed to prevent diseases and malnutrition in livestock, ensuring that food reaching the consumer is safe and wholesome.
Stringent Regulatory Structure
Regulatory issues are the biggest constraints in the animal feed industry. Animal feed production comes under feedstuff regulations in most countries. Concerns about development of antibiotic resistance in humans by consumption of meat and animal by-products by livestock fed with antibiotics has led to the withdrawal in use of antibiotics in animal feed. Since 2006, the European Union has imposed a stringent regulatory framework for use of antibiotics in animal feed. This was followed by a similar ban in the United States in 2009, where the use of antibiotics as growth promoters in livestock was banned. Europe had also recently imposed a ban on the use of animal proteins in aqua feed further tightening its ban on feed additives. Moreover, recent controversies about ban of GM food and feed import can affect the supply of raw materials for compound feed.
The following ingredients were banned in 2006 to complete the totally ban of feed antibiotics from the EU Register:
- Monensin sodium used for cattle for fattening
- Salinomycin sodium used for piglets and pigs fattening
- Avilamycin used for piglets, pigs for fattening, chickens for fattening and turkeys
- Flavophospholipol used for rabbits laying hens, chickens for fattening, turkeys, piglets, pigs, calves and cattle for fattening
Legislation on the labelling and composition of animal feed covers:
- The information to be provided to purchasers on feed labels
- The nutritional claims that can be made for certain feed products
- The names and descriptions to be applied to various feed materials (that is, ingredients either fed singly or included in compound (manufactured) feeds)
- The additives (including vitamins, colorants, flavorings, binders) authorized for use in animal feed
- The maximum levels of various contaminants (e.g. arsenic, lead, dioxins and certain pesticides)
- Tertain substances that must not be used in feed
The principal provisions contained in the EU measures are:
- Regulation 1831/2003 on additives for use in animal nutrition
- Directive 2002/32 on undesirable substances in animal feed
- Directive 2008/38 establishing a list of intended uses of animal feeding stuffs for particular nutritional purposes
- Regulation 767/2009 on the placing on the market and the use of feed
Stringent regulations in the European Union will drastically effect the feed Industry across the world due to restrictions in import and export. Many countries including China, Thailand, and Vietnam that export meat to European nations do not have such strict regulatory framework against antibiotics or animal proteins usage in animals or in feeds. Such disparities in regulations have adverse effects on the global feed trade especially between developed and developing economies. Producers of animal feed in the developing nations are required to follow strict regulations related to regional and national health and safety for their products approval in the developed nations. This ultimately affects the cost of the final products. Such regulatory initiatives are posing challenges for existing feed products and increasing the cost of new feed development.
Key Developments in the Market:
- June 2016: Cargill introduced preventive offering to help animal producers manage mycotoxin risk.
- March 2015: DLG and DCC Energy enter a Joint energy collaboration in the Danish Market.
Major Players include - Charoen Pokphand, Cargill Inc., Land O Lakes Purina, Alltech Inc. (U.S.), Archer Daniels Midland (U.S.) amongst others.
Reasons to Purchase this Report
- Study on the adoption of ruminant feed in Europe and its effects on the global compound feed industry.
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis.
- Study on the players expected to dominate the market during the forecast period.
- Study on the region expected to witness fastest growth during the forecast period.
- Identify the latest developments, market shares and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in excel).
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1.1 Study Deliverables
1.2 General Study Assumptions
2. RESEARCH METHODOLOGY
2.2 Analysis Methodology
2.3 Study Assumptions
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW AND TECHNOLOGY TRENDS
4.1 Current Market Scenario
4.2 Technology Trends
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Threat of Substitutes
4.3.3 Bargaining Power of Suppliers
4.3.4 Bargaining Power of Buyers
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
6. EUROPE RUMINANT FEED PREMIX MARKET SEGMENTATION, BY TYPE
6.4 Amino Acids
7. EUROPE RUMINANT FEED PREMIX MARKET SEGMENTATION, BY GEOGRAPHY
7.1.2 United Kingdom
7.1.6 Rest of the Europe
8. COMPETITIVE LANDSCAPE
8.2 Market Share Analysis
9. COMPANY PROFILES
9.1 Cargill Inc
9.2 Land O Lakes Feed
9.3 DBN Group
9.4 Archer Daniels Midland
9.6 For Farmers
9.7 DLG Group
9.8 DSM NV
9.9 De Heus
9.10 Lallemand Animal Nutrition