MARKET REPORT FEED & ADDITIVE MAGAZINE January 2025 69 ducing waste and promoting resource efficiency. The appropriate incorporation of all these into animal nutrition is possible with compound feeds. 4. Importance Given to Animal Health and Welfare: The inclusion of prebiotics, probiotics and other functional ingredients in animal feed helps to improve gut health, enhance immune function and reduce dependence on antibiotics. The use of high quality, nutritionally balanced compound feeds contribute to improved animal health, welfare and overall productivity. 5. Livestock Activities in Emerging Markets Developing economies, particularly in Asia Pacific, are experiencing rapid growth in livestock production. Countries such as China and India have large and growing livestock sectors, fuelling demand for animal feed. 6. Government Regulations and Subsidies: Government policies that promote sustainable livestock production, support research and development in animal nutrition, and encourage the adoption of innovative feeding practices can also significantly influence market growth. All these factors mean more demand for compound feeds that offer significant advantages in terms of animal health, performance and welfare and support sustainable food production, contributing to market growth. FACTORS LIMITING MARKET GROWTH While the global animal feed market offers significant opportunities, several factors could potentially limit its growth. According to analysts, these challenges are as follows: 1. Volatility in Raw Material Prices: Prices of key feed ingredients such as grains (corn, soybeans), oilseeds, and fishmeal are subject to significant fluctuations from time to time due to factors such as weather conditions, geopolitical events, and global supply and demand dynamics. These fluctuations can directly affect the profitability of feed producers and farmers, leading to higher production costs. 2. Competition for Resources and Environmental Concerns: Increasing demand for arable land and water resources for both food and feed production is creating a competitive environment. According to experts, this may limit the availability and affordability of key feed ingredients. In addition, the intensive use of resources leads to environmental concerns such as deforestation, water pollution and greenhouse gas emissions. Measures to address these concerns may increase production costs and potentially limit market growth. 3. Strict Regulations and Compliance Issues: Increasingly strict regulations on food safety, animal welfare and environmental sustainability may increase production costs and compliance burdens for feed producers. 4. Epidemics and Pandemics: Epidemics such as avian influenza and African swine fever can significantly disrupt livestock production, leading to reduced demand for feed and economic losses for farmers. Such outbreaks can also disrupt the supply chains of feed raw materials and finished products, thus affecting the availability and affordability of feed. 5. Economic Downturns: Economic downturns may lead to reduced consumer spending on animal protein, affecting feed demand and potentially slowing market growth. 6. Competition from Alternative Protein Sources: The increasing demand for plant-based and laboratory-produced meat products poses a challenge for the traditional animal feed market. As consumers turn to alternative protein sources, demand for traditional animal products, and hence animal feed, may decline. 7. Emerging Markets and Competitive Environment: The emergence of new players and technologies in the animal feed market may increase
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