North America Compound Feed Market - Analysis of Growth, Trends, and Forecast (2018 - 2023)
The North America Compound Feed Market is forecasted to grow at a decent CAGR over the forecast period of 2018 to 2023.
Increased awareness regarding safety of meat and milk products
Food safety has become an important issue for many governments around the world, especially in North America and Europe. The use of supplements in compound feed, particularly those containing antioxidants, enzymes and vitamins provides balanced nutrition to animals and protects them against environmental influences, which cause diseases. Certain pathogenic and parasitic contaminations in meat products in the past decade, have raised concerns over meat quality and safety. For example, in the year 2014, the US alone had 75 million cases of food poisoning, with 5,000 of these cases being fatal. The US Department of Agriculture (USDA) reports that 70% of the food poisoning is caused by contaminated animal meat. Hormones, pesticides and toxins found in meat and animal by-products despite regulations by agencies, such as the USDA and EPA, modify cell functioning, potentially causing a wide range of effects, including cancer, depressed immune response, nervous system disorders, miscarriages, and birth deformities.
Increased awareness among consumers about the ill effects of consuming chemical laced food products is creating the demand for safe meat and animal by-products in the region. The increasing demand for safe meat and animal by-products is prompting the livestock industry and meat manufacturers to use additives in their compound feed. These supplements prevent diseases and malnutrition by increasing immunity in livestock, and thereby ensure that the food reaching the consumer is safe and wholesome.
Strigent regulatory structure
Regulatory issues are one of the biggest constraints in the animal feed industry. Animal feed production comes under feedstuff regulations in most developed countries. Concerns about the development of antibiotic resistance in humans through the consumption of meat and animal by-products of animals fed with antibiotics have led to the ban on antibiotic growth promoters. Since 2006, the European Union has imposed a stringent regulatory framework on the use of antibiotics in animal feed. This was followed by a similar ban in the United States in 2009. Recent controversies about ban of GM food and feed import can affect the supply of raw materials for compound feed.
In 2013, the US implemented a voluntary plan to phase out the use of certain antibiotics by asking pharmaceutical companies to change the labels on feed antibiotics to state a warning that uses for growth promotion was not allowed. The rule also stated that all antibiotics would have to be issued by a veterinarian, giving the livestock producer’s limited control over the use of antibiotics in livestock.
Stringent regulations in North America will drastically affect the feed industry across the world due to restrictions in import and export. Many countries including China, Thailand and Vietnam, which export meat to North America, do not have such strict regulatory framework against antibiotics or animal proteins usage in animals or in feeds. Such disparities in regulations have adverse effects on the global feed trade especially between developed and developing economies. Producers of animal feed in the developing nations are required to follow strict regulations pertaining to the regional and national health and safety for their products approval in the developed nations. Meeting these mandates it ultimately affects the cost of the final products. Such regulatory initiatives are posing challenges for existing feed products and increasing the cost of new feed products development.
Key Developments in the Market: