MARKET REPORT FEED & ADDITIVE MAGAZINE September 2023 87 FEED PRODUCTION BY COUNTRY According to the report of Mordor Intelligence, United States dominates the North America animal feed market. The country is one of the major compound feed markets in North America. The domestic animal food manufacturing industry largely relies on the free-trade agreement with Canada and Mexico (North American Free Trade Agreement’s (NAFTA) implementation), which has allowed exports of feed ingredients, feed and pet food. This trade agreement coupled with increasing livestock industry is driving the market for animal feed. The country remains the one of the world’s largest animal feed producers and exporter as well as home of many world’s leading animal feed producers. According to data from The American Feed Industry Association (AFIA), there are more than 5,800 animal feed manufacturing facilities in the U.S. producing more than 284 million tons of finished feed and pet food each year. The mill sizes vary tremendously from a small on-farm mixer to a modern, computerized system with few human operators making more than 1 million tons of feed each year for swine or poultry operations. In Canada, the other major player in the region, according to the 2021 data of The Animal Nutrition Association of Canada (ANAC), 470 commercial mills across the country supply roughly 19.3 million tonnes of feed. In the country, approximately 28.9 million tonnes of feed were consumed by livestock (not including forages) in 2021. It is estimated that 96.5% of total feed is consumed by swine, beef cattle, dairy cattle and poultry. FEED PRODUCTION BY SPECIES Beef feeds are in the first place in compound feed production in North America on a species basis. North America, which is also the world's largest beef feed producer, alone accounts for 57% of the world's beef feed production, which is approximately 118.2 million tons. The region's total beef feed production, which was 66.7 million tons in 2021, increased by 0.6% to 67.3 million tons in 2022. According to the Alltech report, the region 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. Pig feeds rank second in North America's feed production. The pig feed production of North America, which was 63.6 million tons in 2021, decreased by 0.97% in 2022 to 62.9 million tons. According to the Alltech report, in North America, the pig feed production decreased by nearly 1% because of a reduction in pork supply, aggressive outbreaks of porcine reproductive and respiratory syndrome (PRRS), high feed and trucking costs, disruptions in trade due to shipping costs, labor shortages and input cost volatility aggravated by the invasion of Ukraine.
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