Feed & Additive Magazine Issue 24 January 2023

MARKET REPORT 72 FEED & ADDITIVE MAGAZINE January 2023 opposite effect was seen in the Philippines, however, where production decreased due to COVID-19. China and India accounted for the most significant increases in Asia-Pacific. In Latin America, Peru, Brazil, Paraguay and Mexico contributed significantly to the region’s 5% increase. Layer feed production, which was around 161 million tons in 2020, decreased by 1.4% to 158.7 million tons in 2021. The largest production region in this group, again, is Asia-Pacific with 75.8 million tons. According to the 2022 Alltech Agri-Food Outlook, several countries experienced challenges due to the high costs of raw materials, combined with flat or reduced retail prices for eggs. In Europe, the most significant decreases occurred in Norway, Russia, Ukraine and Poland. Asia-Pacific also saw a decrease, while tonnage in Australia grew by 4%. Pig feeds take the second place in feed production with a share of 25.1%. The Asia-Pacific region stands out again with 138.9 million tons in pig feed production, which was 310.2 million tons globally in 2021. Asia-Pacific region is followed by Europe with 75.2 million tons and by North America with 57.1 million tons in pig feed. According to the 2022 Alltech Agri-Food Outlook, the pig sector displayed a significant comeback, with a feed tonnage increase of 6.6%, which was primarily boosted by Asia-Pacific’s recovery from ASF. Japan, South Korea, Malaysia and China demonstrated a recovery from ASF, but Indonesia, Myanmar, the Philippines, Thailand and Vietnam continued to feel the impact of the disease. In Europe, countries where ASF is not or is no longer a problem are still impacted by a pork surplus due to a reduced demand from China. World dairy feed production, which was 130.4 million tons in 2020, reached 132.9 million tons in 2021 with an increase of 1.9%. Europe has the largest share in world dairy feed production with a production of 44.3 million tons in 2021. It is followed by Asia-Pacific with 25.6 million tons. The Asia-Pacific has achieved a very serious increase of 8.6% in dairy feed production in 2021. According to the 2022 Alltech Agri-Food Outlook, Asia-Pacific recorded the biggest increase, which is mostly attributed to growth in India. As COVID-19 lockdowns eased around the world, the reopening of the hospitality industry and in-person classroom education helped boost milk consumption overall. In Australia and New Zealand, dairy feed tonnages were down 6.7% and 2.5%, respectively. Beef feed production decreased by 1.9 percent in 2021 compared to the previous year and amounted to 115.4 million tons. North America is the largest producer of beef feed with 66.7 million tons. It is followed by Europe with 16.8 million tons (down 13.7% from the previous year) and Asia-Pacific with 13.7 million tons. This decline in production is thought to be partly due to challenges incurred through greenhouse gas (GHG) regulations. According to the 2022 Alltech Agri-Food Outlook, European markets are especially focused on reducing GHG emissions in an effort to align with COP26, the EU Green Deal and the FEFAC Feed Sustainability Charter 2030. The U.S. experienced an increased steer and heifer harvest due to carryover from 2020, as well as a record demand for beef exports. Argentina saw a significant reduction due to reduced exports, and high inflation and the devaluation of the local currency are also affecting Argentinians’ purchasing power. TurThe Share of Feed Types in Total Production Source: 2022 Alltech Agri-Food Outlook - Million metric tons. Type Broiler Feed Pig Feed Layer Feed Dairy Feed Beef Feed Aqua Feed Pet Food 2020 343.098 290.904 161.073 130.433 117.758 49.530 31.587 2021 350.921 310.214 158.789 132.946 115.486 51.355 34.165 Growth 2.3% 6.6% -1.4% 1.9% -1.9% 3.7% 8.2%

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