GLOBAL FEED PRODUCTION REMAINS STEADY IN 2022

Pet feed shows most significant growth while reduction in beef feed production begins to moderateAn assessment of compound feed production and prices was conducted using information gathered by Alltech's global sales team in partnership with local feed associations.The Alltech Agri-Food Outlook also offers a holistic view of the state of the industry, using responses from our corresponding qualitative survey to identify trends and technologies impacting the agri-food industry, highlight growth opportunities and assess expectations for 2023.

http://grain-feed.ontu.edu.uaGrain Products and Mixed Fodder's,Vol.22,I.3 (87) / 2022 The role of technology A variety of technologies are providing growth opportunities for the agri-food industry, survey respondents said.Among the technologies making the biggest impact are nutritional solutions, biosecurity and the automation of labor/robotics.Of nutritional solutions, respondents noted enzymes (32%), technologies impacting rumen function (14%) and the management of mycotoxins (14%) as being the most significant to their market.The use of enzymes to improve the digestibility of nutrients, decrease the cost of production and reduce the environmental impact of agriculture are having a significant positive impact, said one respondent from Spain.Innovative technologies that increase efficiency and improve sustainability were cited by many participants as being highly promising and important."The biggest opportunities for growth are sustainable solutions for production costs, research and development for more durable and productive agricultural products [to mitigate] climate change, and new agricultural production technologies," said a respondent from Turkey.
Becoming more efficient with new-to-market technologies will improve profitability and help mitigate environmental impacts, a Canadian representative said.

Biggest challenges
Inflation and the overall state of the economy -particularly the increased prices of raw materials, feed and food -have been the biggest challenges affecting the agri-food sector in 2022, respondents said.The state of the economy will remain one of the biggest factors influencing the success of the industry, said a participant from South Africa.Changes in consumer habits such as point of purchase and dietary trends are also making an impact."Due to the (COVID-19) epidemic, consumers' behavior has changed significantly and continuously, and they have taken a more proactive approach to health," said a survey respondent from FEED, QUALITY, TECHNOLOGY AND ANIMAL FEED China.Supply chain disruptions remain an obstacle for the agrifood industry across all regions.Many regions reported that geopolitical tensions -particularly the invasion of Ukraine -have affected imports and exports, the supply chain and raw materials prices."The war in Ukraine has had a significant impact on raw material supplies across the region," said a survey participant from Belgium.The direct impact of the war was reported in Moldova and in Ukraine, where feed production fell by over 35%.The invasion of Ukraine also indirectly affected feed production throughout the rest of the world.

Disease disruptions
Animal diseases have disrupted feed production in more than 80% of countries.Avian influenza affected all regions' feed production in 2022.In Africa, this disease manifested most significantly in Egypt, Morocco and South Africa.In Asia, nearly all countries were affected.In Europe, the affected countries included Belgium, Bosnia and Herzegovina, Bulgaria, France, Ireland, Moldova, the Netherlands, Poland, Russia, Serbia, Turkey, the U.K. and Ukraine.In Europe, African swine fever (ASF) has most significantly affected Ireland and countries in the East.In the Americas, the Dominican Republic was affected most significantly.In Asia, ASF has played a significant role in China, Indonesia, Malaysia, Myanmar, Nepal, the Philippines, Singapore, South Korea, Thailand and Vietnam.In Africa, Kenya, Mozambique and Namibia were affected.Foot and mouth disease (FMD) was an issue in Africa, particularly in Egypt, Mozambique, Namibia and South Africa.In Asia, Indonesia, Mongolia, South Korea and Thailand were affected.Finally, in the Americas, FMD was an issue in Bolivia.Swine flu was an issue in Namibia, China, Myanmar, Belgium and the U.S. Overall, Latin America and the Middle East did not report many instances of disruption due to animal diseases.

Sustainability insights
Efforts to improve environmental sustainability are impacting the feed/animal agriculture sector in most regions, survey respondents said.The majority of respondents said sustainability efforts are being driven by the government (50% of respondents), food producers and processors (47.27%), consumers (44.74%) and retailers/ food service companies (39.47%).The top sustainability measures being implemented include reducing antibiotic usage and antimicrobial resistance (AMR), improving animal welfare, producing food more efficiently, reducing water pollution, creating renewable energy, reducing greenhouse gas emissions, and enhancing nutritional value and food security.Survey respondents said that some of the biggest agrelated opportunities are new technologies like smart-farm applications, increasing efficiency, incorporating more nutritional solutions and continuing to make efforts to become more sustainable.

Feed tonnage by region
Based on data collected in November 2022, Alltech estimates that the total global feed tonnage in 2022 decreased slightly -by 5.381 million metric tons (MT), or 0.42% -to approximately 1.266 billion MT.The survey showed a 3.86% decrease in feed tonnage in Africa, mainly because of reductions reported in Egypt, Morocco, Kenya and Nigeria.South Africa, on the other hand, saw an increase of more than 2%, and Namibia also reported higher feed tonnage in 2022.The Asia-Pacific region was flat.Reductions in China, Pakistan, Thailand and Malaysia were offset by increases reported by Vietnam, the Philippines, Mongolia and South Korea.Despite the challenges faced there, Vietnam has been a growth market for feed in Asia.The biggest retreat in feed tonnage was seen in Europe, where it was down nearly 5%, or over 12 million metric tons (MMT).Some of the primary factors for this decreased production include the invasion in Ukraine and the spread of animal diseases, such as ASF and avian influenza.Among the big four regions, Latin America came out on top this year as the winner in terms of growth in feed tonnage, with an increase of over 3 MMT.Most of this growth was reported by Mexico, Brazil and Chile.

According to the materials of the Alltech company
The Middle East region is also up significantly, as a result of more accurate reporting and efforts by the Saudi Arabian government to increase broiler production as part of its Vision 2030 plan.North America (the U.S. and Canada) reported an increase of more than 2.4 MMT (all in the U.S.).Growth was reported in the broiler, beef and pet food sectors.The region of Oceania was flat, with a small reduction reported by Australia that was offset by a slight increase reported by New Zealand.The majority of respondents, 59%, said that feed production in their country met their expectations in 2022.Feed tonnage fell below expectations for 28% of survey respondents and exceeded expectations for 13%.Looking ahead, over half of respondents (52.5%) said they are optimistic that feed production in their country will grow in 2023.

Feed production estimates by sector
Globally, feed tonnage increased in the broiler, layer, aquaculture and pet food sectors.Volume growth in feed tonnage came predominantly from the broiler feed sector.Percentage wise, the biggest growth was in pet food.The pig, dairy and beef sector experienced decreased feed tonnage.*Million metric tons **Grand total includes listed species as well as calf, other ruminants, turkeys, other poultry and other species.*According to the materials of the Alltech company, 2022