Animal and Livestock Feed Market Research Reports, Analysis & Trends
Animal feed manufacturers make food for livestock. Producers use remnants of flour milling, sugar production and other food processing as ingredient inputs to animal feed. This industry excludes pasture grazing, hay and silage feed. Most of the establishments in the animal and livestock feed industry are located within close distance to rural regions and large city markets. In the past five years, the industry's top producers concentrated their operations on a small number of sites that produce economies of scale through high output and automatic equipment.
Products are often transported in bulk to distribution centers across the country. Rising geographic concentration is consistent with trends across the overall food manufacturing sector as more consumers move to urban areas. The spectacular growth in global meat consumption and the number of American households that owned a cat or dog, benefited the Animal Food Production industry. Although feed prices rose during the past five years, producers invested in new equipment in order to offset these high costs. Additionally, the industry's future prospects appear optimistic, with faster revenue growth anticipated through the five years to 2018, supported by growing pet ownership and growing exports
Animal and Livestock Feed Trends
The animal and livestock feed industry manufactures livestock feeds, which can consist of soybean, corn, linseed and sunflower meals; wheat bran, oat hulls; and alfalfa meals and pellets, among other inputs. Ingredients of feed vary depending on the end-use. Livestock does not adapt well to changes in their diet, so downstream farmers typically maintain strict controls over the feed components. Alternatively, ranchers have the option to feed cattle with a mix of naturally growing grass and nutritional supplements. In addition, livestock owners sometimes generate and process their own feeds or use regional supply chains that cut out major players.
In the past several decades, marked changes in livestock production have paralleled shifts in farm animal feed formulation. Bolstered by spikes in feed prices and increasing demand from downstream farm supplies wholesalers, the Farm Animal Food Production industry's revenue has increased at an annualized rate of 3.7% to $31.7 billion during the past five years. Global population growth and expansion of developing economies have further boosted demand for meat, requiring greater supply of feeds to match growing production. Despite a decline in per-capita meat consumption in the United States, demand for farm animal feed was maintained by downstream industries, such as dairy farms. Consequently, industry revenue is expected to rise another 1.5% during 2012.
Major Animal and Livestock Feed Players
Major players in the animal & livestock feed industry include Cargill Animal Nutrition, Alltech, ADM Alliance Nutrition, Kay Dee Feed Company etc.
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