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Corona-virus And Animal Feed Market

(, January 12, 2021 ) Post COVID-19, the global feed market size is estimated to grow from USD 282.8 billion in 2020 and is projected to reach USD 289.0 billion by 2021, recording a CAGR of 2.2% during 2020–2021.

The increasing awareness about livestock nutrition, modernization of the livestock industry, and the rise in the consumption of meat & other livestock-based products have led to an increase in the market size of feed additives. However, due to COVID-19, feed manufacturers and producers are becoming more aware of techniques and strategies to cope up with the situation. This, in turn, is projected to lead to an increase in demand for feed additives, as the market growth starts stabilizing.

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Supply chain disruptions and impact on feed production have affected the feed market.

The poultry industry is battling rumors of coronavirus spreading through the consumption of meat and meat products. In some regions, lockdowns have been announced to control the coronavirus pandemic, which has been impacting the movement of vehicles carrying livestock, feed, and feed ingredients. On the other hand, raw material price volatility is a major challenge faced by feed manufacturers worldwide during COVID-19.

Shutdowns are leading to a loss in demand for meat, dairy, and animal products impacting the feed market.

Due to the COVID-19 pandemic, the demand for basic food or essentials has been on the rise. Despite the strong demand for meat, dairy, and aquaculture products amidst the coronavirus pandemic, the supply chain has witnessed a host of disruptions, which are stopping producers from providing their products in the market. For instance, disruptions in the supply chains are causing wastage of fresh produce in the US, even though there are a high demand and food shortage for dairy produce. Due to these factors, the market leader in the dairy industry, the Dairy Farmers of America, had to ask farmers to dump their milk.

The global export for beef and chicken meat trade has been reduced due to the emerging threats from the spread of COVID-19 pandemic. Furthermore, the economic growth in 2020 and the impact on consumers of the pandemic will dampen the demand for animal protein, subsequently affecting the feed market.

Key Market Players

Some of the major players in the feed market are Cargill (US), ADM (US), and BASF (Germany). Cargill is involved in the manufacturing and marketing of food products, agricultural produce, financial & industrial solutions, and animal nutrition & protein products. The company offers feed ingredients through the animal nutrition business segment. Cargill’s animal nutrition segment provides feed additives through its brand, Promote, for poultry, swine, beef, and dairy products.

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As the COVID-19 pandemic spreads across the world, the agriculture industry’s supply chain focuses on keeping employees and consumers safe while still providing vital equipment, services, commodities, feed products, and food products. According to the World Health Organization, Cargill has stopped all the non-essential and international business travels for the coming few weeks, due to which the supply for feed additives & ingredients is projected to decline in the coming years. However, the demand is projected to revive after the third quarter, as the impact of COVID-19 is projected to reduce. Despite various challenges and hindrances faced by the company, Cargill is delivering essential services globally by providing feed and food ingredients.


Mr. Aashish Mehra


Source: EmailWire.Com

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