It is seen that the Middle East and Africa have the lowest share in the world compound feed production with a production of approximately 75 million tons and a share of 5.9%. According to Alltech’s data, the feed production of the Middle East, which was 25.5 million tons in 2021, increased to 31.8 million tons in 2022. But there is a decline in feed production in Africa. According to the report, African compound feed production, which was 44.5 million tons in 2021, decreased to 42.8 million tons in 2022. Growth expectations in the market vary between 3% and 6%. According to a report, the total value of the animal feed market of the two regions will reach $2,130 million by 2028.
By Derya Yildiz
The Middle East and Africa are far behind in compound feed production compared to other regions in the world, but they also attract attention as the regions most open to development. According to the Agri-Food Outlook 2023 report by Alltech, 74.6 million tons (5.9%) of world compound feed production, which was 1.266 billion tons in 2022, was realized by Middle East and Africa countries.
When we compare the years 2021 and 2022 in the Middle East, there has been a huge increase in total compound feed production by 24.7%, which surpasses other regions. According to the Alltech report, the Middle East increase is also due in part to an initiative by the Saudi Arabian government to expand broiler chicken production to meet the country’s self-sufficiency goals.
In Africa, there was a 3.86% decrease in feed tonnage, mainly because of reductions reported in Egypt, Morocco, Kenya and Nigeria, according to the report. South Africa, on the other hand, recorded an increase of more than 2%, and Namibia also reported higher feed tonnage in 2022.
FEED PRODUCTION BY COUNTRY
When the Middle East countries are evaluated in the light of current data, they have a low potential in the world compound feed production.
The most remarkable countries in the region in feed production are Iran and Saudi Arabia. According to Alltech data, Iran’s total compound feed production is approximately 10 million tons. In this production, the highest share on the basis of feed type belongs to broiler and dairy feeds. The estimated total production amount for both is around 6.5 million tons.
The total compound feed production of Saudi Arabia, which is the other major producer in the region, is around 7 million tons. Broiler feed is the most produced feed type in the country with 4.5 million tons.
Africa appears to be far behind in the world compound feed production. However, it should be kept in mind that it is very difficult to provide a healthy data flow from the region. As seen in the Alltech reports, the production data currently presented does not reflect the entire region. Based on the data we have; it is seen that the total compound feed production in the region is around 43 million tons. Approximately 11 million tons of this belongs to South Africa, the most developed country in the region. The prominent feed type in South Africa is broiler feed with 3.8 million tons. It is followed by dairy feeds with 2.1 million tons and beef feeds with 2.1 million tons.
Egypt is the second largest producer in the region. It is estimated that Egypt’s total compound feed production is around 6 million tons. Broiler feed is the most produced feed type in the country with 2.3 million tons.
Nigeria is another country that can be included among the major producers in the region. It is estimated that Nigeria’s total compound feed production is around 5,5 million tons. Layer feed is the most produced feed type (2,7 million tons) in the country.
FEED PRODUCTION BASED ON TYPE
Broiler feeds are in the first place in compound feed production in Middle East on a species basis. The region’s total broiler feed production, which was 8.2 million tons in 2021, increased to 11.4 million tons with a large increase in 2022. According to the Alltech report, in Saudi Arabia, local broiler production is expanding to lower the country’s dependence on chick imports.
Dairy feeds rank second in Middle East’s feed production. The dairy feed production of Middle East, which was 6.5 million tons in 2021, increased by 7.1% in 2022 to 6.9 million tons. Dairy feed production increased in nearly every country in the region, according to the Alltech report.
Layer feeds rank third in feed production in Middle East. The region’s layer feed production, which was 4.6 million tons in 2021, increased by 7.7% in 2022 to 4.9 million tons.
In the region, another important item on the basis of species is beef feeds. The beef feed production of the region, which was 1.4 million tons in 2021, increased by 6.8% in 2022 to 1.5 million tons.
Broiler feeds are the most produced feed type in Africa as well as in the Middle East. The total broiler feed production of the region, which was 13.9 million tons in 2021, decreased by 5.9% in 2022 to 13.1 million tons. According to the Alltech report, in Africa, there were increases in broiler feed tonnage in some countries, but those were offset by a big reduction in Kenya, where feed production dropped over 44%.
Layer feeds rank second in Africa’s feed production. The dairy feed production of Africa, which was 9.5 million tons in 2021, decreased by 3.3% in 2022 to 9.2 million tons. According to the Alltech report, Kenya reported a 42.5% (0.3 MMT) reduction in layer feed tonnage because of high production costs. Over 40 layer producers have closed their operations there in recent months.
Dairy feeds rank third in feed production in Africa. The region’s dairy feed production, which was 5.6 million tons in 2021, decreased by 9.1% in 2022 to 5 million tons. Dairy feed tonnage dropped or remained flat in most of the feed-producing countries, according to the Alltech report.
In the region, another important item on the basis of species is pig feeds. The pig feed production, which was 3.3 million tons in 2021, decreased slightly due in part to ASF and high feed costs. Better pork prices in South Africa led to an increase of 0.175 million tons of pig feed production, according to the Alltech report.
In Africa, beef feed production, which was 2.5 million tons in 2021, grew nearly 4% (2.6 million tons) in 2022, with the biggest increases in Namibia and Mozambique.
Aquaculture feed production, which was 1.5 million tons in 2021, was down 2.38% in 2022, though increases were reported in South Africa, Zimbabwe, Zambia, Ghana and Seychelles.
MIDDLE EAST AND AFRICA FEED INDUSTRY
The Middle East and Africa are behind in terms of the presence of feed mills compared to other regions in the world. According to 2022 data, there are 799 feed mills in the Middle East. This number was announced as 795 for the previous year. In other words, between 2021 and 2022, it is seen that 4 new factories started operating.
There are many more feed mills in Africa compared to the Middle East. According to the data that Alltech has been able to partially recover, the number of feed mills in the region, which was 2309 in 2021, reached 2357 in 2022. However, this increase in the number of feed mills is due to the increase in data reflected in the surveys, rather than the opening of new feed mills. In its report, Alltech explains this increase as follows: Feed mill numbers in some African countries (Ghana, Mozambique and Namibia) were previously underreported, when only the largest feed mills were included in the survey.
COMMERCIAL VALUE OF THE MARKET AND EXPECTATIONS
Data Bridge Market Research analyses that the Middle East and Africa animal nutrition market, including compound feed production and feed additives, is growing with a CAGR of 6.5% in the forecast period of 2021 to 2028 and is expected to reach USD 2,130.01 million by 2028.
The research report “Middle East and Africa Animal Feed Market Outlook, 2027” published by Bonafide Research estimates that the MEA animal feed market will register a CAGR of 5.01% during the forecast period 2022-2027.
MarkNtel Advisors’ research report “Middle East & Africa Animal Feed Market Analysis, 2021” points to a slower growth rate. According to the report, the market is likely to witness around 3.4% CAGR during 2021-26.
MARKET DRIVERS & RESTRICTIONS
According to the report of Data Bridge Market Research, grow in awareness regarding animal health, increase in demand for meat and its by-products, rising nutritional requirements of existing livestock, the rise in disposable income is increasing the consumption of animal-based products acts as driver for the animal nutrition market growth in the Middle East and African countries.
According to the same report, the factors expected to restrain the market’s growth are high prices of animal nutrition products, and environmental challenges impacting livestock production. The growing technological advancements in the feed industry will create opportunity for the market in the forecasted period. The availability of counterfeit products in the market for animal nutrition can create a massive challenge for the market.
According to another report by Bonafide Research, South African feed market has created opportunity for feed manufacturers to grow in the market. The increase in meat consumption per capita in South Africa increases the demand for animal products and indirectly for beef feeds. This has created opportunity to enhance animal productivity which in turn has led to growth in livestock production. Aquaculture feed is becoming more popular in Middle East countries where the government is even increasing focus to strengthen the trade ties regarding sales of meat, between the Middle East countries and other regions. Increasing consumption of sea food and rising per capita income with increase in sea food trade between the countries and region are proving as major factor driving the growth of the market.
References:
1.Bonafide Research; Middle East & Africa Animal Feed Market Outlook, 2027; February 2022; https://www.bonafideresearch.com/product/220129766/middle-east-africa-animal-feed-market
2.MarkNtel Advisors; Middle East & Africa Animal Feed Market Analysis, 2021; June 2021; https://www.marknteladvisors.com/research-library/middle-east-africa-animal-feed-market.html
3.Data Bridge Market; Middle East and Africa Animal Nutrition Market – Industry Trends and Forecast to 2028; November 2021; https://www.databridgemarketresearch.com/reports/middle-east-and-africa-animal-nutrition-market
4.2022 Alltech Agri-Food Outlook, https://www.alltech.com/agri-food-outlook
