Livestock key trends and strategies explained

 
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Global Livestock Industry

 

The global livestock industry refers to the raising of animals and the processing of animal products. Animals raised for livestock industry purposes include pigs, sheep, cattle, horses and goats.

 

Industrialization has lead to significant changes within the livestock industry, allowing mass production of animal products to meet the growing needs of an expanding global population.

 

 

 

Challenges

 

The livestock industry is coming under increasing pressure due to stronger awareness of environmental issues. With many industries concentrating on reducing their carbon footprint, livestock product producers will also have to meet changing regulations. Industry emissions are mainly from manure handling, feed use and the use of good quality land-to-produce feed. Some solutions to limit environmental damage caused by the global livestock industry include using feeds that boost soil carbon sequestration to limit carbon emissions, using manure to produce bio energy and ensuring better feed conversion.

 

 

Key Segments

 

  • Demand for beef has been rising at a global level due to higher incomes and a preference for beef as a dietary source of protein. Koncept Analytics predicts beef production will continue to rise to meet growing consumption.

 

  • The global compound feed market is central to the livestock industry. Market growth is fuelled by climbing demand for of animal derived products. Human consumption of these products is rising in tandem with the global population and levels of disposable income in developing nations. Compound feed ensures healthy livestock nutrition and boosts livestock performance, reports Transparency Market Research. Technological advances in compound feed manufacturing processes have lead to superior nutritional value and better safety.

 

  • The feed additives market involves the manufacture of pharmaceutical or nutritional substances for addition to animal feedstuffs to fulfill different functions such as to control disease, boost feed digestibility and promote growth. Markets and Markets reports that the global feed additive market is recording steady growth, fuelled by rising demand for meat and meat products. Increased awareness following outbreaks, such as foot-and-mouth disease and the avian flu, is leading to higher animal consumption of feed additives. The US and the EU dominate as regional markets, and Asia is recording a high rate of market growth.

 

  • Demand for amino acids continues to rise due to greater awareness regarding their role in nutritional protein. Animal feed supplements represented the leading market segment, breaking the $1 billion mark in 2011. This segment is forecast to record almost 4% yearly growth through 2016 to reach $1.2 billion, reports BCC Research.

 

 

Regional Market Share

 

The Chinese livestock market has become increasingly lucrative due to low supply in sectors such as hog and chicken farming. The prices of broiler chicks and hogs have both broken historical records and remain high, reports CNAGRI. The layer chicken farming market segment is equally recording strong growth, with mutton sheep and beef cattle markets in a period of slow recovery.

 

Investment in China’s livestock farming industry has been rising over recent years. Industry-level changes have been sparked following the scandal of illegal use of the chemical clenbuterol in porcine feed, leading to stricter testing techniques and regulations. The government is subsidizing investment and supporting the building of standardized large-scale livestock farms.

 

The country is also reinforcing countervailing and anti-dumping policy against US chicken meat, which is leading to declining poultry imports. The Ministry of Commerce is maintaining the Traceable System for the Circulation of Meat Products pilot project to facilitate hog slaughter industry merger and reorganization.

 

 

Market Outlook

 

The farming and livestock slaughtering industries of China are set to continue undergoing significant change throughout 2012, creating numerous investment opportunities.

 

The livestock industry remains reliant on advances in farming technology to boost supply for a rapidly expanding global population with rising income and high demand for meat as a source of protein. The industry will continue to focus on the balance between meeting demand and respecting environmental concerns to reduce its carbon footprint.

 

 

Leading Industry Associations

 

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