The 2018 "Alltech Global Feed Survey," released Jan. 25, estimates that international feed tonnage has exceeded 1 billion metric tons for the second consecutive year, with a total of 1.07 billion mt of feed produced in 2017.

The growth seen in 2017 was strong, at 2.57% over the previous year. The feed industry, valued at $430 billion, has seen 13% growth over the past five years, equating to an average of 2.49% per annum, Alltech said, noting that this substantial growth is supported by the increased reported consumption of meat, milk and eggs.

The seventh edition of the annual survey is the most comprehensive ever, now covering 144 countries and more than 30,000 feed mills, according to the company.

The results show that China and the U.S. remain the top two countries, producing one-third of all animal feed, and that predominant growth came from the pig, broiler and dairy feed sectors as well as in the European and Asia-Pacific regions.

“Now in its seventh year of analysis, the 'Alltech Global Feed Survey' continues to serve as a valuable report on the state of the global feed industry,” said Aidan Connolly, chief innovation officer and vice president of corporate accounts at Alltech. “In addition to its insights into the feed industry, it serves as a barometer for agriculture as a whole and oftentimes demonstrates the economic strength of the countries included in the survey.”

The survey assessed compound feed production and prices through information collected in the last quarter of 2017 by Alltech’s global sales team and in partnership with local feed associations. It is intended to serve as an information resource for policy-makers, decision-makers and industry stakeholders.

The top seven feed-producing countries in 2017, in order of production output, were China, the U.S., Brazil, Russia, Mexico, India and Spain. These countries contain approximately 54% of the world’s feed mills and account for 53% of total production, Alltech said, and they can be viewed as an indicator of the trends in agriculture.

Regional results

Alltech's global report includes the following regional results:

North America -- The U.S. remained the second-largest feed-producing country globally, behind China. North America produces one-third of all beef feed -- five times that of the next-largest producer. The U.S. and Canada are two of the top horse feed-producing countries. Feed prices in North America are lower than other regions, Alltech noted.

Latin America -- Brazil remained the leader in feed production for this region and ranked third overall globally. Brazil, Mexico and Argentina accounted for almost 75% of regional feed production. Mexico led the region in beef and layer feed production. As a region, Latin America had the third-highest growth rate over five years, seen primarily in aquaculture, horse and pet feeds.

Europe -- Tied with Asia Pacific for the fastest-growing region, Europe saw feed tonnage growth of 3%, resulting from increases in pig, boiler and aquaculture feed production. The region was led by Russia, which produced 37.6 mmt in 2017 and moved up in the country rankings from number seven to number four. Russia increased its estimated pig feed, including more private production. Russia's broiler feed production also increased by 3%, while Ukraine, Romania, the U.K. and Belgium also reported higher numbers, which supported growth in the European region.

Asia Pacific -- The Asia Pacific region accounted for more than 35% of the world’s feed tonnage. China remained the top feed-producing country in the world, with output of 186.86 mmt, a slight decline compared to last year. Asia Pacific production increased 3% over the 2017 survey results, primarily due to increases in pig and pet food production. Increased production in the region also came from India, with 7% growth, and Thailand with 8% growth. Vietnam grew 4% over the past year and is the second-highest producer of pig and aquaculture feed in the Asia Pacific region.

Africa -- Africa was the fastest-growing region in the world for dairy and broiler feeds. However, despite a regional average growth rate of nearly 30% over the last five years, it did not show growth in 2017. Production increased for pig, dairy, layer and boiler feeds but decreased for beef and aquaculture feeds. Also, on average, Africa is the most expensive region for feeding pigs, layers and broilers.

Species results

Alltech said the survey highlighted the following species results:

* In the poultry industry, broiler feed production increased across all regions, with the greatest growth found in Africa at 10% and Europe at 7%. Romania, Russia and Ukraine all reported steady growth, contributing to Europe’s overall production, while Africa’s growth came primarily from Egypt, Uganda and Mozambique.

* China and Russia — the global leaders in pork production — led the way in pig feed production in 2017. Many smaller African countries, particularly Kenya, Tanzania, Mozambique, Uganda and Namibia, also showed increases.

* Global dairy feed production saw growth across all regions. Output from Europe, a global leader in dairy production, grew approximately 2%, on average. Africa, as a region, saw the largest dairy feed production increase, at 10%, with countries such as South Africa, Morocco and Zimbabwe showing significant increases from their reported 2017 dairy feed production.

* Beef feed production had an overall global decline of approximately 1%, primarily in the regions of Latin America, Africa and Europe. This global downward trend has generally been felt by the industry for some time as more consumers turn to “white” meats such as chicken, pork and fish.

* Aquaculture feeds showed a slight increase overall, particularly in the European and Asia Pacific regions. China reported a decline of 5% in 2017 and in 2016, which could be linked to government controls on feeding practices and food safety, such as the administration of antibiotics. Brazil, Chile and Peru led the increase in production in Latin America, as did Iran in the Middle East. Feed for carp led aquaculture feed production, followed by shrimp/prawns and tilapia. Catfish, salmon and trout also ranked on the species feed indicator, albeit to lesser degrees.

* The pet food sector had a strong year across all regions. Asia Pacific pet food production rose 13%, with China, Thailand and Taiwan as the primary contributors to the increase. Europe's production increased 17%, with Russia, the Czech Republic, Romania, Poland and Hungary producing more than 580,000 mt of additional pet food.

“The 'Alltech Global Feed Survey' provides valuable data and insights on the health of the feed industry and agriculture as a whole,” Connolly said. “As such, we will continue to offer the findings of the feed survey freely in an effort to demonstrate the significance of the animal feed industry in feeding a growing global population, sustainably and affordably.”

To view more data from the 2018 "Alltech Global Feed Survey," including the results booklet, an interactive global map and a presentation of the results, fill out a form at this link for access.