Livestock production trends show that growth varies by geography. Estimates indicate that global compound feed production is approaching one billion metric tons.

1. Growth trends
Soybean, corn, wheat, barley and sorghum are the most
commonly used raw materials to produce compound feed. The
development of industrialised global compound feed market grew
13.8 percent between
1990 and 2000, which
represents a 1.3 percent
compound annual rate
(CAGR). From 2000 until
2010 the market CAGR
reached 1.72 percent then
between 2010 and 2013 the CAGR
fell back to 0.5 percent (Figure 2).
The global market for compound feed
is estimated to grow at CAGR of 1.5 percent
between 2014 and 2020. Asia Pacific and South
America are estimated to be the fastest growing regions with
estimated CAGR of 1.7 percent and 1.8 percent respectively (PR
Newswire, 2014). Within the compound feed market, the swine
feed segment is poised for a CAGR of 3.92 percent between 2012
and 2017, making it the fastest growing segment within animal
feed market, followed by poultry and aqua feed. Asia has the
most promising growth potential in the compound feed industry
as the consumption of animal-based and animal-derived products
escalates with higher disposable incomes.
Feed market by species
The estimated share of industrial compound feed production
is highest for pet and aqua feed (95 percent to 100 percent),
presumably due to greater requirements regarding technological
know-how and investment. The industrialised animal feed
production’s share of total feed production is expected to be
lower for poultry (85 percent to 95 percent), swine (70 percent to
75 percent) and ruminant (65 to 70 percent) industries.
Global poultry production requires around 500 million tons
of compound feed (industrial and on-farm production) taking
into consideration the annual meat and egg production data.
The
Global Compound
Feed Market
... in Numbers
by Richard Markus, Assistant Director of Development, Biomin
Figure 1. Global compound feed production by region.
Source: BIOMIN
Figure 2. CAGR of the compound feed market.
Source: WATT, 2014; PR Newswire, 2014
L
ivestock production trends show
that growth varies by geography.
Estimates indicate that global
compound feed production is
approaching one billion metric
tons.
The estimated industrial
compound feed production reached
nearly one billion tons in 2014,
generating around US $380 billion in annual sales. In
addition to feed industry production, a further 250 to 300
million tons on-farm mixed finished feed is also produced.
A regional breakdown of the nearly one billion tons of
global industrial compound feed production shows that Asia
Pacific accounts for 35 percent of production, followed by
Europe and Russia (24 percent), North America (20 percent),
Latin America (15 percent), and Middle East and Africa (6
percent) (Figure 1).
According to the Food and Agricultural Organisation
(FAO) the world will have to produce about 60 percent
more food by 2050 due to human population growth (from
7.3 billion today to 9 billion) and higher annual meat
consumption per capita (from 41.9 kg today to 52 kg).
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2. The industrial feed
production accounts
for roughly 430 out of
500 million tons. Annual
broiler meat production
reached nearly 92 million
tons in 2014, which is
around 12 percent less than
global pork production. Global
egg production is estimated at
about 1250 billion eggs (Figure 4).
Considering average feed consumption
for broilers and layers/breeders and average
yearly egg production of layers and breeders,
the estimated total poultry feed consumption
(industrialised and on-farm), including turkey and duck
production is around 500 million tons.
Poultry production is expected to grow intensively further. In
broiler meat production the highest growth is estimated in Qatar,
Kazakhstan, Ghana, Jordan and Saudi Arabia with 30 percent;
11.5 percent, 11 percent; 9.3 percent, 9.3 percent besides Russia,
USA, Brazil, EU and Mexico is expected to grow between 2.5-
4.5 percent in the following years. In China the growth rate of
broiler meat seems to be more flat.
Swine
The world second biggest feed market is the swine industry,
which consumes around 354 million tons of feed (industrialised
and on-farm) based on meat production, animal number and feed
consumption data.
World swine livestock is already above 1.2 billion tons, of
which more than 55 percent belongs to China, 20 percent to the
EU and 10 percent to the US (Figure 6). Altogether those regions
are giving more than 85 percent of the total swine production.
The CAGR in swine production is predicted to be the highest in
Figure 4. Global egg production
Source: Watt media, 2014
Figure 3. Compound feed consumption by species, worldwide
Source: Watt media (2014), FAO (2015), BIOMIN
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3. Belarus, South Korea, US, Canada and Brazil (8.89 percent; 4.69
percent, 4.29 percent, 1.77 percent; 1.51 percent respectively).
The estimated growth in EU, Russia and Mexico is slightly
above 0.5 percent. In China a more than six percent reduction is
expected (Figure 7).
Ruminants
Ruminants make up the third largest segment of the total global
feed industry, consuming more than 280 million tons. Since
intensification within the ruminant sector is highly variable the
calculation is based on animal numbers and production stage
(dairy, heifer, beef cattle), and on production intensification
(extensive, semi-intensive, and intensive production).
India, Brazil, China, USA and EU, the five biggest players in
the dairy industry, account for 80 percent of total dairy livestock.
India has more than 20 percent of the total dairy livestock.
The biggest growth (1-2 percent) concerning dairy livestock is
expected in China, India, Mexico, US and Brazil. In the EU the
expected growth is around 0.5 percent. Russian market estimated
to narrow by 3 percent (Figure 8).
In case of beef production the biggest growth is expected from
Belarus, India and from Central and South America contrary to
China and Russia where markets are projected to narrow. North
America and EU market estimated to grow only slightly in the
following years (Figure 9).
With human population growth and meat and dairy
consumption all rising, livestock and compound feed production
follow in turn. On a global level, meat and dairy production
appears set to increase further in the coming years, though
geographical differences mean that some markets will experience
stronger growth than others.
Table 1. Regional industrial compound feed (CPF) production, 2014
Region High estimate
[million metric
tons]
Low estimate
[million metric tons]
Europe & Russia 233.0 225.6
North America 206.4 193.0
Asia Pacific 350.0 326.4
Middle East & Africa 59.0 54.7
Latin America 146.8 145.0
TOTAL 995 945
Source: Watt media (2014), FAO (2015), BIOMIN
Table 2. Breakdown of industrialised animal feed consumption
Animal
species
High
estimate
[million
mton]
Low
estimate
[million
mton]
Total
animal feed
consumption
(industrial +
on-farm)
[million mton]
Industrial
CPF share
of total
consumption
[%]
Poultry 439 426 500 85-90
Swine 256 248 354 70-75
Ruminants 196 194 283 65-70
Aqua 43 41 41 95-100
Pet 22 - 22 95-100
Equine 11 - - -
Total 967 909 1200 -
Source: Watt media (2014), FAO (2015), BIOMIN
Figure 5. Estimated growth in broiler meat production (%)
Source: USDA, 2015; Index Mundi, 2015
Figure 6. Distribution of swine production by country (%)
Source: USDA, 2015; Index Mundi, 2015
Figure 7. Swine production annual growth rate (%)
Source: Index Mundi estimates, 2015, based on USDA data, 2015
Figure 8. Estimated growth in dairy cow stock (%)
Source: USDA, 2015; Index Mundi, 2015
Figure 9. Estimated growth in beef production (%)
Source: USDA, 2015; Index Mundi, 2015
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