Global feed production of 1.07 billion tons in 2017, China's pig feed increased by 11%

Recently, according to the "2018 Global Feed Survey Report" released by Ottedge, the global feed production exceeded 1 billion tons for two consecutive years, and the total feed production reached 1.07 billion tons in 2017. Growth was strong in 2017, up 2.57 percent from a year earlier. The $430 billion feed industry has grown by 13 per cent over the past five years, equivalent to an average annual growth of 2.49 per cent. The increase was driven by high consumption of meat, milk and eggs, according to the report.

The survey is the most comprehensive in seven years, covering 144 countries and more than 30000 feed mills. The results show that China and the United States remain the two largest producers, accounting for 1/3 of all animal feed, with the main growth coming from the pig, broiler and dairy industries, with the main growth in Europe and the Asia-Pacific region.

Aidan Connolly, Chief Innovation Officer, Altech, said: "The Altech Global Feed Survey, now in its seventh year, continues to provide an authoritative status quo analysis of the global feed industry. In addition to providing an in-depth understanding of the feed industry, it serves as a barometer for agriculture as a whole and shows the economic strength of the countries covered in the survey."

The Altech Global Feed Survey assesses compound feed production and prices through information collected by the Altech Global Sales team and in collaboration with local feed associations during the last quarter of 2017. The project aims to provide a source of information for policy makers, decision makers and industry stakeholders.

The top seven feed producers in 2017 were China, the United States, Brazil, Russia, Mexico, India and Spain. These countries are home to 54% of the world's feed mills, accounting for 53% of total production, and can be seen as a bellwether for the direction of agriculture.

China-Slightly down after strong growth

Since 2011, when Altech conducted its first global feed survey, China has been recognized as a leader in global feed production. China has seen a small decline in animal feed production this year, but only 0.4 percent of the total. For a country with a growing population, the decline in animal feed production may be a cause for concern. What does this mean?

China's dairy and beef feed production both fell by 17%. China's dairy industry is struggling, with farmers trying to balance high-priced inputs with low returns from milk processors. The decline in the beef industry indicates a shift in local production, while imports are cheaper and imported meat is better.

In terms of feed production, China's layer and broiler industries also saw small declines of 11% and 5%. Due to the increase in industrialization, the efficiency of the entire poultry industry is increasing, and in this world's largest egg market, the integration speed of the entire industry is relatively fast. Consumption of commercial white feather broilers has stagnated and prices have been low.

In China, an industry that has rebounded ispig feedProduction, up 11% in the past year, has been rewarded by China's rationalisation of larger, more specialised farms in cost-effective pork production.

Regional results of the 2018 Altech Global Feed Survey

• North America: The United States remains the world's second largest feed producer after China. North America produces the 1/3 beef cattle feed, five times as much as the second-largest producer. The United States and Canada are the top two producers of horse feed. Feed prices in North America are lower than in other regions.

• Latin America: Brazil remains the leader in feed production in the region, with the third largest production in the world. Brazil, Mexico and Argentina account for about 75% of the region's feed production. Mexico is a leader in the production of feed for beef cattle and laying hens. Latin America has the third highest growth rate in the past five years, mainly in aquatic products, horses and pet feed.

• Europe: Compared to the fastest-growing Asia-Pacific region, feed production in Europe increased by 3%, driven by increases in pig, broiler and aquafeed production. The region, led by Russia, produced 37.6 million tons in 2017, rising from seventh to fourth place in the national ranking.

• Asia-Pacific: The Asia-Pacific region accounts for more than 35% of global feed production. China remains the world's largest feed producer with a production of 186.86 million tons, showing a slight decline in overall feed production compared with the previous year. Compared with the results of the 2017 survey, the Asia-Pacific region increased production by 3%, mainly due to the increase in pig and pet feed production. The increase in production in the Asia-Pacific region was also due to the 7% and 8% growth in India and Thailand, respectively. Vietnam's production grew by 4% last year and is the second largest producer of pig and aquatic feed in the Asia-Pacific region. Seventy percent of aquafeed and 44 percent of layer feed are produced in Asia-Pacific countries.

Africa: Africa continues to be the fastest growing region in the world for dairy and broiler feed. The regional average growth rate over the past five years has been about 30 per cent, with no growth in 2017. Pig, dairy, layer and broiler feed production increased, beef cattle and aquatic feed decreased. In addition, on average, Africa is the most expensive region to raise pigs, laying hens and broilers. Small countries like Botswana and Mozambique have brought growth in feed for pigs, cows, layers and broilers. In countries such as Zambia and Morocco, beef cattle feed production has decreased. While aquaculture feed production has increased slightly in many African countries, feed production has declined across the region, mainly due to lower feed production in Egypt, which has now been overtaken by Nigeria.

Breeds with significant results from the 2018 Altech Global Feed Survey

• In the poultry sector, broiler feed production increased in all regions, with Africa growing the most by 10 per cent and Europe by 7 per cent. Romania, Russia and Ukraine all grew steadily, contributing to Europe's overall production, while Africa's growth came mainly from Egypt, Uganda and Mozambique.

• In 2017, China and Russia, the global leaders in pork production, were inpig feedIt is in a leading position in production. Many small African countries, notably Kenya, Tanzania, Mozambique, Uganda and Namibia, have also experienced growth.

• Global Milkcattle feedProduction increased in all regions. Europe is the global leader in dairy production, with an average growth of about 2%. African Regional Milkcattle feedThe largest increase in production reached 10 per cent, with significant increases in production in countries such as South Africa, Morocco and Zimbabwe.

• Beef feed production declined by about 1% globally overall, mainly in Latin America, Africa and Europe. This global downturn has been widely felt in the industry as more and more consumers turn to "white meat" such as chicken, pork and fish.

• Aquaculture feed increased slightly overall, especially in Europe and Asia-Pacific. According to the report, China has dropped by 5% this year and 2016, which may be related to the government's control measures on feeding methods and food safety (such as the use of antibiotics).

• The pet food industry performed strongly in all regions. Pet food production in the Asia-Pacific region increased by 13%, with China, Thailand and Taiwan as the main growth drivers. Europe saw a 17 percent increase, with Russia, the Czech Republic, Romania, Poland and Hungary producing more than 580000 tons of complementary pet food. Uruguay, Ecuador, El Salvador, Chile and Argentina represented almost all of the growth in pet food production in Latin America, with a combined total of more than 725000 tons.

Connolly Aidan said: "The Altech Global Feed Survey provides authoritative data and insights on the health of the feed industry and agriculture as a whole. We will continue to provide the results of the feed survey in order to demonstrate the importance of the livestock industry and the importance of the feed industry in supporting the sustainable development of the world in the future."

(Original title: 2018 Otech Global Feed Survey Estimates World Feed Production Over 1 billion Tons for 2 Consecutive Years)