Strategic Review of the European Ban of Antibiotic Growth Promoters in Animal Feed

Published by: Frost & Sullivan

Published: Nov. 11, 2005

Table of Contents

1. Executive Summary

        1. Executive Summary

                1. Executive Summary

2. Introduction to the Animal Feed and Additives Industry

        1. European Animal Feed Industry

                1. European Animal Feed Industry

        2. European Feed Additives Industry

                1. Introduction to the Animal Feed Additives Industry

                2. Feed Additive Industry - Key Market Trends

                3. Global Perspective

3. Introduction to Antibiotics use in the Animal Feed Compound Industry

        1. History of the Antibiotics Ban

                1. History of the Antibiotics Ban

        2. Introduction

                1. Antibiotics Definition

                2. The Use of Antibiotics in Animals

                3. The Use of Antibiotics in Animal Feed

4. The Scandinavian Experience

        1. The Scandinavian Experience

                1. The Scandinavian Experience

5. The Impact of the EU Antibiotic Growth Promoter Ban

        1. The Impact of the EU Antibiotic Growth Promoter Ban on Specific Livestock Sectors

                1. The Impact of the EU Antibiotic Growth Promoter Ban on Specific Livestock Sectors

        2. The Impact of the EU Antibiotic Growth Promoter Ban on Specific EU Member States

                1. The Impact of the EU Antibiotic Growth Promoter Ban on Specific EU Member States

        3. The Impact of the EU Antibiotic Growth Promoter Ban on other Parts of the World

                1. The Impact of the EU Antibiotic Growth Promoter Ban on other Parts of the World

        4. The Impact of the EU Antibiotic Growth Promoter Ban on other Stake Holders in the Animal Feed Industry

                1. The Impact of the EU Antibiotic Growth Promoter Ban on other Stake Holders in the Animal Feed Industry

6. Minimising the Impact of the EU Antibiotic Growth Promoter Ban

        1. Minimising the Impact of the EU Antibiotic Growth Promoter Ban

                1. Minimising the Impact of the EU Antibiotic Growth Promoter Ban

7. Challenges and Opportunities Created by the EU Antibiotic Growth Promoter Ban

        1. Challenges and Opportunities Created by the EU Antibiotic Growth Promoter Ban

                1. Challenges and Opportunities Created by the EU Antibiotic Growth Promoter Ban

8. Alternatives to Antibiotic Growth Promoters

        1. Alternatives to Antibiotic Growth Promoters

                1. Introduction

                2. Alternative Products to Antibiotic Growth Promoters

                3. Success Factors

                4. Process for the Authorisation of a New Feed Additive

9. Strategic Recommendations

        1. Strategic Recommendations

                1. Introduction

                2. Feed Additive Manufacturers

                3. Feed Compounders

Abstract

Impact of the Ban Depends on a Number of Different Factors

Although the European Union (EU) has been moving towards a total ban on antibiotic growth promoters for some time, it was only in July 2003 that it finally adopted a new regulation banning their use completely. The remaining four growth promoters currently in use - flavophospholipol, monensin sodium, salinomycin sodium and avilamycin - will be gradually phased out. The ban becomes fully effective by January 2006. Many livestock producers are already preparing themselves for the changes that will come about as a result of the ban. This is expected to reduce its impact to a certain extent, which will be greater in the short term as livestock producers adjust to the change and negligible in the medium and long terms. Other factors such as the hygiene and animal husbandry standards employed in individual livestock units, as well as the size of units, will also determine the extent of impact. This is because antibiotic growth promoters are typically less efficient in units that have high animal hygiene and management standards.

This Frost & Sullivan research service provides a strategic review of the possible effects of the European ban on antibiotic growth promoters in animal feed on various stakeholders in the supply chain. It recommends potential options that participants in the animal feed industry could consider in relation to the ban.

Country-wise Variations Exist

Member states of the EU and different livestock sectors are at varying stages of preparation for the ban. In terms of livestock groups, the European swine industry is believed to be the most impacted, followed by the poultry industry. Southern Europe is likely to feel the effects of the ban most strongly. "This is because many farmers in these member states lack exposure to the range of alternative feed additives available and the benefits they offer," says the analyst of this research service. "Some of them are resistant to the changes taking place and are reluctant to explore new product opportunities."

On the other hand, Scandinavia is expected to be the least affected, since it is well prepared with bans already in place in Sweden and Denmark. Overall, the withdrawal of antibiotic growth promoters will impact countries in the EU in much the same way as it affected Sweden and Denmark - with reduced animal growth rates and decreased feed conversion efficiency.

Emerging Opportunities for Alternative Feed Additives

As the ban draws closer to full implementation, livestock producers are looking to identify new ways that stimulate production among animals and deliver the same benefits provided by antibiotic growth promoters. This creates a significant opportunity for alternative feed additives. Moreover, following the ban, countries outside the EU that import animal products such as chicken and pork meat will find it difficult to continue doing so. This opens up new opportunities for those within the European animal feed industry to supply such countries with alternative feed additives.

Several different feed additives such as amino acids, enzymes, prebiotics, probiotics, organic acids, and proprietary blends are emerging as potential alternatives. "However, the general belief is that there is no direct replacement available for antibiotic growth promoters and further research needs to be done on alternative products to prove their effectiveness," remarks the analyst. "Antibiotic growth promoters were considered both inexpensive and effective and alternative products are often expensive in comparison."

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