2010 Volumes of Animal Feed Production in US to Reach 2008 Levels

27 Sep 2010 • by Natalie Aster
2010 Volumes of Animal Feed Production in US to Reach 2008 Levels

Around 600 million tons of animal feed are produced annually around the world. The main ingredients used for the production are the feed grains, which include corn, soybeans, sorghum, oats, and barley. The feed industry is one of the most competitive businesses in the agricultural sector and is by far the largest purchaser of U.S. corn, feed grains, and soybean meal.

It is unnecessary to underline that the U.S. animal feed market is mature and supply-demand balanced. As for the first quarter of 2010 the prices on the U.S. animal feed market remained higher than in 2009. Rapid market fluctuations are not expected for the end of the running year. This year the volumes of the U.S. produced animal feeds are forecast to reach 2008 levels or even indicate an increase by 0.5%.

The U.S. feed industry has benefited from increased poultry production and exports. Poultry consume by far the largest category of feed in the U.S. Not surprisingly, the U.S. produces more poultry feed than any other feed type. When compared to beef/sheep, pork and dairy feeds, poultry feed (starter/grower/layer/breeder, broilers and turkeys) represents 54% of the total animal feed produced in the U.S. in 2008. However it is notable that the U.S. chicken production fell in 2009 year for the first time in 36 years due to a surge in feed costs and the recession in demand.

The American Feed Industry Association, a trade association representing the U.S. feed industry, estimates some 3,000 primary feed manufacturing plants exist in the U.S. as well as some 5,500 secondary or custom mix plants. US animal feed market is not really concentrated. Two major companies Land O’Lakes-Purina LLC and Cargill Animal Nutrition share 17.8%. The rest 82.2% is under small-capacity enterprises.

More information on the U.S. animal feed market may be found in the report Animal Feed Market in United States: Business Report 2010 recently published by TD The Market Publishers, Ltd.


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