The Colombian Feed Ingredients Market was valued at USD 838.47 million in 2016 and is expected to reach USD 1189.42 million by 2022, registering a CAGR of 6.09%. The market is directly proportional to the growing demand for animal feed market and animal nutritional, obtained from livestock producers, owing to the rising awareness about food quality and safety, along with the growing emphasis on the importance of quality meat and animal by-products by population. The thriving poultry industry in the country is not only increasing its production capacity, but also serving exports to the countries such as China, Vietnam, and Thailand, thus, adding an impetus to the market.
RAPID GROWTH IN POULTRY PRODUCTION AND EXPORT POTENTIAL OF THE MARKET
Poultry meat is a preferred animal protein in the Colombian diets. Poultry was the second-largest source of protein, which accounted for around 40% of the total meat consumption in 2015. The production of poultry doubled in the last decade, with an annual production of 1.46 metric ton in 2016, and a per-capita consumption at 29.6 Kilogram. Moreover, the poultry industry contributes to about 6.9% of agriculture GDP and generates around 389,000 jobs, including 176,000 direct. Approximately, 67% of Colombian animal feed comes from the poultry sector.
Since 2012, Colombia has been increasing the meat quality to accelerate the trade of poultry. The country signed a free-trade agreement with the European Union (EU) and Peru in June 2012, which was started on August 1, 2013, in order to increase the poultry export. Meanwhile, Customs Union (Russia, Belarus, and Kazakhstan) has resolved to allow poultry imports from Colombia. The US-Colombia Free Trade Agreement started in May 2012, allows poultry products to receive immediate duty-free treatment. Colombia and the United States worked together to solve sanitary and phytosanitary barriers, in order to increase the agricultural trade that includes food safety inspection procedures for poultry.
A major portion of Colombian chicken meat export has been into countries such as China, Vietnam, and Thailand, since the last decade. During this same period, Venezuela, and Ecuador were the main export nations for Colombian egg products. The value of poultry product export is expected to reach USD 5 million by 2017, an increase from USD 1.2 million in 2007, in the country.
Colombia Feed Ingredient Market, by Livestock Application
CONCERNS OVER ANTIBIOTIC RESISTANCE
Regulatory issues, regarding antibiotic use in animal feed, are the biggest restraints to the global compound feed industry. Animal feed production is placed under the feedstuff regulations in most countries. Concerns about the development of antibiotic resistance in humans, by the consumption of meat and animal by-products, have led to the withdrawal of their use in animal feed. Since 2006, the EU has imposed a stringent regulatory framework, regarding the usage of antibiotics in animal feed, followed by a similar ban in the United States in 2009, where the use of antibiotics as growth promoters in livestock was banned. Moreover, Europe had imposed a ban on the use of animal proteins in aquafeed, further, tightening its ban on feed additives.
The rapid development of Colombian socio-economic status, increasing per-capita income and growing animal production industry have raised food safety issues among the population, including the negative impacts of antibiotic resistance. Established in 2015, the Colombian Integrated Surveillance Program for Antimicrobial Resistance (COIPARS) was a pilot project to monitor antimicrobial resistance among bacteria (AMR) on poultry farms, livestock farms, slaughterhouses, and retail markets.
CARGILL TAKES OVER COLOMBIA COMPANY POLLOS EL BUCANERO
International Animal Nutrition Company, Cargill made its presence in Colombia with the acquisition of Poultry firm Pollos El Bucanero SA and taking over Pollos El Bucanero, which added 5,000 staff to the company. Moreover, Cargill is pushing forward its strategy to buy new businesses through this acquisition.
Pollos Bucanero manufactures a wide range of chicken products including fresh, frozen and value-added items, which are sold to retailers and foodservice firms, across the country. Pollos Bucanero operates as a subsidiary of Cargill Protein Latin America, which includes meat-processing companies in Costa Rica, Guatemala, and Honduras and Nicaragua. The global company is expected to bring expertise in the quality standards and understanding of consumer taste and preference to the venture.
MAJOR MARKET PLAYERS INCLUDE
ADISSEO CARGILL BASF ALLTECH BUNGE DSM INGREDION INCORPORATED YARA NOVUS INTERNATIONAL INC. BIOMIN NUTRECO ARCHER DANIELS MIDLAND COMPANY EVONIK INDUSTRIES NUTRIAD NOTABLE MARKET DEVELOPMENTS
Adisseo introduced a new enzyme named Rovabio® Advance, with the combination of enzymes, amino acids, phosphorus, and calcium Cargill acquired Ewos, one of the global salmon nutrition company BASF introduced a new enzyme named Natuphos® E for animal nutrition Alltech acquired, the leading animal nutrition company, Ranch-Way Feeds that has been doing business for more than 60 years DSM launched a new app for 2016 Vitamin Supplementation Guidelines and thus, adding to its Optimum Vitamin Nutrition™ (OVN™) Our Colombia Feed Ingredients Market report covers:
How increasing demand for high-value animal protein is changing the Colombia Feed Ingredients market? How increased awareness regarding safety of meat and milk products affecting the Columbia feed additives market Will Colombia continue to dominate the Latin America Feed Ingredients market? What are the emerging markets? Acquisitions taking place in the year Major players in the Colombian market and their strategies.