Market Trends of North America Compound Feed Industry
This section covers the major market trends shaping the North American Compound Feed Market according to our research experts:
Growing Demand for Animal based Products is Driving the Market
The demand for higher-value and quality foods, such as meat, eggs, and milk rises, is increasing in the region. The increse in demand for these products and other non-food items, has led to the growth in the usage of feed additives, thereby, boosting the compound feed in the growth of the animal feed market. In Canada, the commercial chicken and turkey meat production totaled 1.43 billion kilograms in 2018. The demand for poultry and egg products is growing. over the last five years, food availability increased annually on average by 2.3% for chicken, 1.4% for turkey, and 2.5% for eggs. In Mexico, poultry is the most developed animal feed livestock subsector driven by high demand for poultry meat and eggs. According to the Mexican feed industry, 40 million tons of feed was produced in 2018, about 55 percent of which was used by the poultry industry. For each million ton of chicken meat produced, 72.5 % of the cost involved is from feed. The animal feed is the key component in the production of eggs, with a 63% share of the cost of eggs.
United States Dominates the Market
United States is one of the major compound feed market in North America. The domestic animal food manufacturing industry largely relies on the free-trade agreement with Canada and Mexico (North American Free Trade Agreement's (NAFTA) implementation), which has allowed exports of feed ingredients, feed and pet food. This trade agreement coupled with increasing livestock industry is driving the market for animal feed. The concentration of animals on feed and the production of necessary feed ingredients occurs in the Midwestern, Southern and Eastern regions of the United States which incldues, Iowa, Texas, Nebraska, North Carolina and Minnesota. The country remains the world's largest animal feed producer and exporter as well as home of many world's leading animal feed producers. The prominent feed manufacturers in the country includes Cargill, Land O'Lakes, Alltech, ADM Alliance Nutrition, Perdue Farms, J.D. Heiskell & Co. Kent Nutrition Group, Hi-Pro Feeds and Southern States Coop.
