Growing Importance of Clean Labels Impacting Poultry Feed Market Growth

Posted on 2019-02-12 by Mark Hub in Food & Beverage // 0 Comments

Rockville, USA, 2019-Feb-12 — /EPR Network/ — Shift towards high protein diet and increasing preference for poultry meat continues to influence the growth of the poultry feed market worldwide. Rising exports of poultry, particularly from the European Union and the United States, have remained instrumental in driving the need for enhanced poultry production, in turn fuelling sales of the poultry feed. Fact.MR envisages that the demand for poultry feed is projected to expand at a CAGR of 7.1% in terms of volume during the period of forecast, 2018-2027. The poultry feed market report also reveals that the sales volume of poultry feed are likely to cross 890,000,000 tons by the end of the assessment year.

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Government regulations regarding use of antibiotics in raising poultry are likely to impact the poultry feed market. For instance, European Union has banned the use of antibiotics in poultry feed owing to health risks associated with these formulations. FDA has passed various legislations, such as Guidance # 213 that have banned the use of antibiotics in poultry feed. This factor has opened new avenues for the use of other additives including enzymes and premixes to poultry feed to enhance productivity. Moreover, FDA has also allowed the use of insect proteins, such as use of BFSL (Black Soldier Fly Larvae), in poultry feed that can act as a sustained protein source.

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Conditioning to Gain High Significance in Pelleting of Poultry Feed

Conditioning of poultry feed is gaining traction on the back of increasing demand for high pellet quality and bird performance. High pressure steam during the conditioning process provides moisture and heat essential for gelatinization of starch, pathogen removal and particle adhesion in the poultry feed. Conditioning steam temperature and retention time are defined by PDI (Pellet Durability Index), effective control over which results in enhanced nutrient digestibility. Conditioning of poultry feed before pelleting, particularly for young birds, has gained high significance as young poultry has underdeveloped enzymatic system that requires highly digestible nutrients.

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Growing broiler production is likely to trigger the sales of poultry feed across the globe. USDA (United States Department of Agriculture) estimates that broiler production is anticipated to increase by 2 percent by 2018-end to touch 92.5 million tons. This aspect is expected to fuel use of poultry feed in broiler production during the period of assessment. However, the demand for poultry feed in layer production is projected to expand at a relatively high pace throughout the period of assessment, according to the report.

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Competitive Landscape

The poultry feed market report includes a dashboard view of the competition landscape providing detailed assessment on major companies involved in poultry feed production. The report has profiled key players including but not limited to Cargill Inc., ForFarmers N.V., BASF SE and Associated British Foods Plc.

Manufacturers and stakeholders in the poultry feed space are focusing on acquisitions and joint ventures to strengthen their position. For example, ForFarmers N.V has strengthened its position in poultry sector by acquiring Maatman that is involved in compound poultry feed. Further, ForFarmers is also focusing on extending its leadership position in Europe by initiating strategic joint venture with Tasomix, a Polish company. By signing a purchase agreement with the Polish player to acquire 60 percent shares, ForFarmers adds Poland as the fifth country of operation, consequently reinforcing its position as a leading feed company in the European land.

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