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Asia’s Growing Appetite for Feed Additives

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India and China are currently the top feed additives exporters worldwide, while Russia is a relatively new market for Asian feed additive suppliers. However, feed additive exports from Asia to Russia have increased significantly over the past year, as the country is highly dependent on the Asian market due to western sanctions. This trend is expected to continue in the long term, making Asia a permanent feed additives market for Russia if suppliers can consistently meet their demand. 

The Asia Pacific feed additives market is expected to achieve a compound annual growth rate (CAGR) of 4.69 per cent from 2019 to 2024, having been valued at $10.21 billion in 2018. A report by Market Data Forecast attributes the growth of the meat industry in emerging economies such as India and China as the major driver of this market expansion.  

According to Volza’s Global Export data, India is a major exporter of feed additives, having exported 6500 shipments in the first two months of 2023 to countries such as Bangladesh, the Philippines and Vietnam. As per the report, China is the top feed additive exporter with 16,818 shipments, followed by the United States with 15,290 shipments. India stands third with 6474 global shipments of feed additives.

In 2022, western countries faced significant sanctions, resulting in Russia importing almost all feed additives from Asia. During the first nine months of 2022, Russia imported 136,000 tonnes of feed additives, marking a 25 per cent increase from the previous year.

Russian companies were initially hesitant to buy feed additives from Chinese firms, but the sanctions imposed by western countries led to a reversal of the situation. In 2022, 86 per cent of feed additives imported by Russia came from China, while imports from other Asian countries such as Indonesia and South Korea also increased. Indonesia’s feed additive export to Russia increased by 27 per cent from the previous year, while South Korea saw a 37 per cent rise in exports to Russia. In contrast, Japan’s export dropped by 77 per cent from the earlier year. 

Feed additives are products that are added to livestock feed to enhance health and performance. The growing consumption of meat and concerns regarding animal diseases have driven the market’s growth. Feed additives play a crucial role in enhancing the metabolic system and providing essential nutrients to animals, improving the quality of food derived from them. Soybean and wheat are commonly used as raw materials for animal feed, while fish meals and fish oils are used for animal-based products. In dairy and beef production, feed additives account for approximately 36 per cent and 55 per cent of greenhouse gas emissions respectively. Hence, feed additives play an essential role in the environmental impact of the human diet.

Cattle feed additives

According to a report by the Business Research Company the cattle feed and feed additives market is projected to reach $68.51 billion in 2027 at a CAGR of 3.5 per cent. The ongoing Russia- Ukraine conflict has resulted in economic sanctions being imposed on a number of countries, disrupting the supply chain and causing inflation across the globe. Despite this, the global cattle feed and feed additives market is expected to grow from $57.12 billion in 2022 to $59.74 billion in 2023 at a CAGR of 4.6 per cent.

In 2022, Asia Pacific was the largest region in the cattle feed and feed additives market. Cattle feed and feed additives are used on farms to raise livestock and animals, providing them with essential nutrients to promote faster growth. The increasing demand for livestock and animal husbandry are driving the growth of the cattle feed and feed additives market.

Cattle feed additives refer to products that increase cattle nutrition, which are added to cattle feed to provide complete nutrition. These feeds are balanced for various nutrients based on cattle needs. Feed additives are compounds fed to cattle for reasons other than supplying nutrients, such as promoting good cattle health and improving their growth. These additives are ground, pelleted, crumbled, or offered as mixed feed for cattle.

The main types of ingredients used in cattle feed and feed additives include corn, soybean meal, wheat, oil seeds, grains, and others. Corn is used as livestock feed, biofuel, and raw material in the farm industry.

Corn is a tall American cereal grass plant widely grown for its large ears of starchy grain, which come in a wide variety of products including antibiotics, vitamins, antioxidants, amino acids, feed enzymes, and acidifiers.

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