Indonesia Animal Feed Market - Forecasts from 2020 to 2025
Indonesia animal feed market is expected to grow at a compound annual growth rate of 5.13% over the forecast period to reach a market size of US$12.208 billion in 2025 from US$9.043 billion in 2019. The export forecasts for beef and chicken meat trade have been constrained due to the current threats from the spread of the COVID-19 virus. This has invariably dampened the demand for animal protein. Further, the widespread closure of the food and beverage establishments, especially those of food services as well as the reduction of tourism and travel has affected the demand for protein. Furthermore, disruptions in shipping have affected global trade resulting in creating choke points and ports and hampering container availability, for the time being. Reflecting on the Indonesian economy, during late February 2020, the economic growth estimates were revised from 5.1% to 5% [Source: Indonesia Central Bank (Bank Indonesia)] due to a global economic slowdown and COVID-19 pandemic. After the official announcement from the Government of Indonesia on confirmed cases of COVID-19 in Indonesia, it has implemented various measures to reduce to the spread, including limiting travel, social distancing, and banning large gatherings. Consequently, the weakening Rupiah, which reached Rp. 16,273 to the dollar, approaching levels last seen during the 1998 financial crisis which conveyed overall stress in the Indonesian economy. The Indonesian economy is expected to fall below 5% in 2020 [ Source: USDA].
on February 10, 2020, the Ministry of Trade (MOT) issued regulation number 7/2020 on Buying Reference Prices at Farmer’s Level and Selling Reference Prices at Customer Level for several commodities, to ensure stable supply and prices. The poultry industry consumes significant share of domestic animal feed supplies followed by aquaculture that consumes and cattle and swine the afore mentioned MOT regulation sets up buying prices of chicken meat, day-old chicks, and egg due to the fluctuating prices of poultry products. To support the MOT regulation, and to ensure a balance of supply and demand of day-old chicks, on February 20, 2020, the Ministry of Agriculture (MOA) issued a circular letter on hatching eggs. The letter requires integrated poultry farmers to withdraw a total of 15 millions of 19-days old hatching eggs from hatching machine every week for February 4 – 29, 2020. The policy is expected to reduce day old chick production by approximately 40 million head by the end of March 2020. At the end of December 2019, integrated poultry farmers produced a total of 262.9 million hatching eggs. The policy, combined with lower consumption due to COVID-19, is expected to lower overall poultry meat production in 2020.
Besides, On December 12, 2019, Minister of Agriculture Syahrul Yasin Limpo issued a Ministerial Decree declaring an African swine fever (ASF) outbreak in North Sumatera Province. The decree was followed by a notification from the Director-General of Livestock and Animal Health Service and Indonesia’s Chief Veterinary Officer to the World Organization for Animal Health (OIE). As of February 6, 2020, Indonesia had reported 857 outbreaks, in 18 of 33 districts of North Sumatera Province, resulting in about 42,000 dead hogs. The ASF outbreak began in Dairy District and spread to 17 other districts, including Medan, the capital of the province. Indonesia’s animal health authorities estimated the outbreak onset was September 4, 2019. An ASF outbreak would likely hamper the East Nusa Tenggara Province (NTT), (located next to Timor Leste) and its plan to become Indonesia’s hog production center. Besides, contrasting extensive economic headwinds, impacts from African swine fever in China, and other countries remain a dominant factor in the market for pork. [Source: USDA].
However, the combination of population growth and strong economic growth between 1998 and 2008 resulted in Indonesian meat consumption more than its double. Over the 20 years to 2018 from 1998, per person, meat consumption has grown strongly in Indonesia (by 89%). A rapid rise in fish consumption has been driven by strong growth in domestic fish production compared with other meats. Fish remains the significant source of protein in Indonesia, largely unchanged from 1998. Per person consumption in Indonesia increased markedly with small increases in income over the period [Department of Agriculture, Water and the Environment]. Thus, despite the current uncertainties the Indonesian animal feed market is poised for healthy growth during the forecast period.
Segmentation
on February 10, 2020, the Ministry of Trade (MOT) issued regulation number 7/2020 on Buying Reference Prices at Farmer’s Level and Selling Reference Prices at Customer Level for several commodities, to ensure stable supply and prices. The poultry industry consumes significant share of domestic animal feed supplies followed by aquaculture that consumes and cattle and swine the afore mentioned MOT regulation sets up buying prices of chicken meat, day-old chicks, and egg due to the fluctuating prices of poultry products. To support the MOT regulation, and to ensure a balance of supply and demand of day-old chicks, on February 20, 2020, the Ministry of Agriculture (MOA) issued a circular letter on hatching eggs. The letter requires integrated poultry farmers to withdraw a total of 15 millions of 19-days old hatching eggs from hatching machine every week for February 4 – 29, 2020. The policy is expected to reduce day old chick production by approximately 40 million head by the end of March 2020. At the end of December 2019, integrated poultry farmers produced a total of 262.9 million hatching eggs. The policy, combined with lower consumption due to COVID-19, is expected to lower overall poultry meat production in 2020.
Besides, On December 12, 2019, Minister of Agriculture Syahrul Yasin Limpo issued a Ministerial Decree declaring an African swine fever (ASF) outbreak in North Sumatera Province. The decree was followed by a notification from the Director-General of Livestock and Animal Health Service and Indonesia’s Chief Veterinary Officer to the World Organization for Animal Health (OIE). As of February 6, 2020, Indonesia had reported 857 outbreaks, in 18 of 33 districts of North Sumatera Province, resulting in about 42,000 dead hogs. The ASF outbreak began in Dairy District and spread to 17 other districts, including Medan, the capital of the province. Indonesia’s animal health authorities estimated the outbreak onset was September 4, 2019. An ASF outbreak would likely hamper the East Nusa Tenggara Province (NTT), (located next to Timor Leste) and its plan to become Indonesia’s hog production center. Besides, contrasting extensive economic headwinds, impacts from African swine fever in China, and other countries remain a dominant factor in the market for pork. [Source: USDA].
However, the combination of population growth and strong economic growth between 1998 and 2008 resulted in Indonesian meat consumption more than its double. Over the 20 years to 2018 from 1998, per person, meat consumption has grown strongly in Indonesia (by 89%). A rapid rise in fish consumption has been driven by strong growth in domestic fish production compared with other meats. Fish remains the significant source of protein in Indonesia, largely unchanged from 1998. Per person consumption in Indonesia increased markedly with small increases in income over the period [Department of Agriculture, Water and the Environment]. Thus, despite the current uncertainties the Indonesian animal feed market is poised for healthy growth during the forecast period.
Segmentation
- By Type
- Fodder
- Forage
- Compound Feed
- By Livestock
- Swine
- Aquatic Animals
- Cattle
- Poultry
- Others
- By Source
- Organic
- Conventional
- By Production Systems
- Integrated
- Commercial mills
- By Form
- Liquid
- Dry
- By Raw Material
- Cereals & grains
- Wheat
- Maize
- Barley
- Oilseeds
- Soybean
- Rapeseed
- Others
- Pulses
- Others
1. INTRODUCTION
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. INDONESIA ANIMAL FEED MARKET, BY TYPE
5.1. Introduction
5.2. Fodder
5.3. Forage
5.4. Compound Feed
6. INDONESIA ANIMAL FEED MARKET, BY LIVESTOCK
6.1. Introduction
6.2. Aquatic Animals
6.3. Cattle
6.4. Poultry
6.5. Others
7. INDONESIA ANIMAL FEED MARKET, BY FORM
7.1. Introduction
7.2. Liquid
7.3. Dry
8. INDONESIA ANIMAL FEED MARKET, BY PRODUCTION SYSTEMS
8.1. Introduction
8.2. Integrated
8.3. Commercial Mills
9. INDONESIA ANIMAL FEED MARKET, BY SOURCE
9.1. Introduction
9.2. Organic
9.3. Conventional
10. INDONESIA ANIMAL FEED MARKET, BY RAW MATERIALS
10.1. Introduction
10.2. Cereals & grains
10.2.1. Wheat
10.2.2. Maize
10.2.3. Barley
10.3. Oilseeds
10.3.1. Soybean
10.3.2. Rapeseed
10.3.3. Others
10.4. Pulses
10.5. Others
11. COMPETITIVE ENVIRONMENT AND ANALYSIS
11.1. Major Players and Strategy Analysis
11.2. Emerging Players and Market Lucrativeness
11.3. Mergers, Acquisitions, Agreements, and Collaborations
11.4. Vendor Competitiveness Matrix
12. COMPANY PROFILES
12.1. East Hope Group
12.2. Kemin Industries, Inc
12.3. Novus International
12.4. BASF SE
12.5. Novozymes
12.6. Simplot Company
12.7. Archer Daniels Midland Company
12.8. Royal DSM N.V.
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. INDONESIA ANIMAL FEED MARKET, BY TYPE
5.1. Introduction
5.2. Fodder
5.3. Forage
5.4. Compound Feed
6. INDONESIA ANIMAL FEED MARKET, BY LIVESTOCK
6.1. Introduction
6.2. Aquatic Animals
6.3. Cattle
6.4. Poultry
6.5. Others
7. INDONESIA ANIMAL FEED MARKET, BY FORM
7.1. Introduction
7.2. Liquid
7.3. Dry
8. INDONESIA ANIMAL FEED MARKET, BY PRODUCTION SYSTEMS
8.1. Introduction
8.2. Integrated
8.3. Commercial Mills
9. INDONESIA ANIMAL FEED MARKET, BY SOURCE
9.1. Introduction
9.2. Organic
9.3. Conventional
10. INDONESIA ANIMAL FEED MARKET, BY RAW MATERIALS
10.1. Introduction
10.2. Cereals & grains
10.2.1. Wheat
10.2.2. Maize
10.2.3. Barley
10.3. Oilseeds
10.3.1. Soybean
10.3.2. Rapeseed
10.3.3. Others
10.4. Pulses
10.5. Others
11. COMPETITIVE ENVIRONMENT AND ANALYSIS
11.1. Major Players and Strategy Analysis
11.2. Emerging Players and Market Lucrativeness
11.3. Mergers, Acquisitions, Agreements, and Collaborations
11.4. Vendor Competitiveness Matrix
12. COMPANY PROFILES
12.1. East Hope Group
12.2. Kemin Industries, Inc
12.3. Novus International
12.4. BASF SE
12.5. Novozymes
12.6. Simplot Company
12.7. Archer Daniels Midland Company
12.8. Royal DSM N.V.
