MARKET REPORT 66 FEED & ADDITIVE MAGAZINE February 2023 Africa, dairy feed tonnage dropped or remained flat in most of the feed-producing countries. In Oceania, which produced 1.5 million tons of dairy feed in 2022, there is a decline of nearly 5% compared to the previous year. According to the 2023 Alltech Agri-Food Outlook, there was a 23.7% (0.028 MMT) increase in New Zealand’s dairy feed tonnage. High milk prices encouraged farmers to feed more but this was tempered by high feed prices. Australia’s dairy feed production fell by over 7%, resulting in an overall regional decline of around 5%. Beef Feed Production on Regional Basis North America is the largest producer of beef feed with 67.3 million tons. According to the report of Alltech, North America is in its fourth straight year of declining herd population caused by drought and economic issues, but it has not affected feed production. Experts anticipate 2023 to be the tipping point, with a predicted decline of 2-3%. Additional economic pressure will be put on the American producer; the American dollar is expected to remain strong and exports are likely to decrease. In Latin America, which ranks second in world cattle feed production with 16 million tons, the high prices of bovine animals and meat in 2022 provided a steady incentive for cattle growers to expand production. Latin America is followed by Europe with 15.7 million tons. In Europe, though several countries reported significant increases, overall feed production was down over 10%. Bulgaria reported a small shift from dairy to beef production because of low milk prices. In many cases, drought and higher beef prices incentivized feed additive. The amount of beef feed produced in the Asia-Pacific region in 2022 is 14.2 million tons. In its report, Alltech shares the following details about the countries in the region: Feed millers in Bangladesh are focusing more on cattle feed while the market for concentrate feed is growing significantly. As a result, that country reported a 56% increase in its beef feed production, from 0.261 MMT to 0.408 MMT. South Korea reported a 3% increase in feed production, from 4.06 MMT to nearly 4.2 MMT. China and Japan also reported small increases. In Africa, beef feed production grew nearly 4% in 2022, with the biggest increases happening in Namibia and Mozambique. In Middle East, there was very little growth in beef feed production in 2022. Finally in Oceania, production dropped in both Australia and New Zealand. The region reported a 12% decline in beef feed tonnage. In Australia, the reduction in feed tonnage was a result of plentiful grass, not a reflection of any changes in the demand for beef. Dairy Feed Production by Region (MMT) Beef Feed Production by Region (MMT) Source: 2023 Alltech Agri-Food Outlook - Million metric tons. Type Africa Asia-Pacific Europe Latin America Middle East North America Oceania GRAND TOTAL 2021 5.580 24.136 43.416 25.738 6.528 28.700 1.518 135.616 2022 5.071 24.154 42.199 25.461 6.992 28.500 1.446 133.823 Growth -9.12% 0.07% -2.80% -1.08% 7.11% -0.70% -4.74% -1.32% Type Africa Asia-Pacific Europe Latin America Middle East North America Oceania GRAND TOTAL 2021 2.479 13.810 17.542 15.642 1.456 66.772 0.740 118.441 2022 2.575 14.279 15.765 16.015 1.556 67.355 0.650 118.042 Growth 3.84% 3.40% -10.13% 2.39% 6.89% 0.64% -12.16% -0.34%
RkJQdWJsaXNoZXIy MTUxNjkxNQ==