Market Trends of Forage Feed Industry
Ruminants Hold a Significant Share by Animal Type
The consumption of animal products, such as milk and meat, is increasing across the world, which is attributed to the increasing awareness of the health benefits of milk and the higher demand for meat protein. The demand for quality products is increasing the demand for quality feed, which, in turn, is driving the market for forage crops, as farmers are choosing good-quality forage for livestock to produce high-quality animal products.
Furthermore, there has been an increasing demand for milk around the world, and to meet this demand, the cattle population is increasing, which, in turn, is driving the market for forage feed. For instance, as per FAOSTAT, the number of cattle in stock globally stood at 1,531.4 million in 2021, which increased to 1,551.5 million in 2022.
Moreover, ruminants are herbivorous animals that are highly dependent on forage crops. Thus, to meet the growing need for ruminant feeds, farmers are resorting to forage feed to keep these animals healthy so that nutritious and good-quality animal products can be provided to the consumers.
In addition, forages act as the base ingredient in dairy cattle, providing them with fiber and roughage. The quality of forage helps in increasing animal production and health. Ruminants such as cows are fed with forage-silages- and hay with high feed value, which enhances nutritional needs in the diet. In turn, the nutritional diet will enhance the quality of milk in ruminants, thus driving the forage feed market during the forecast period. Increasing consumption of milk in developing countries is one of the major drivers that is expected to gear up the forage feed market during the forecast period.
North America Holds a Significant Share
North America is one of the significant regions in the forage feed market due to its well-organized agricultural industry, considerable livestock sector, and focus on technology-enabled farming research. All this is facilitated by the sizable amount of arable acreage and favorable climatic conditions that are conducive to the growth of various forage crops, such as alfalfa and corn silage, along with multiple types of grass.
Canada and the United States have a large number of producers and consumers. Thus, the two countries have extensive dairy and beef production. They satisfy their own needs and export significant amounts of high-quality products to markets across the world.
Furthermore, technology, such as precision farming, GM crops, and hi-tech machinery for harvesting, are anticipated to increase the yield and quality of forage in the countries in North America. With active protection of the environment and one of the most sustainable agriculture and livestock production due to the regulatory policies, the region holds a significant forage feed market share.
In addition, initiatives are taken in the region that are anticipated to support the growth of the market studied. For instance, in May 2023, the United States Department of Agriculture (USDA) announced the modification of the Annual Forage Insurance Program to make it more sustainable and to allow producers more flexibility. This includes allowing producers to choose the areas that they insure rather than being required to insure all eligible acres.
Moreover, there is a surge in the livestock population due to the increased demand for animal products in the region. Along with this, the protein content of forage feed that is considered beneficial in livestock farming is anticipated to support the growth of the forage feed market in North America.
