According to OMR Research, Asia-Pacific is the largest contributor to the global animal feeds market and is expected to grow at an exponential rate in the near future. The reasons behind the region’s growth include its livestock farm capacity and continuous growth, the growing export and import of meat products, and government support to farmers, among others.
Production, Consumption, and Expansion of Animal Feeds in Asia-Pacific
Governments are launching various schemes to support feed producers in the Asia-Pacific region. For instance, according to an article posted by the Ministry of Fisheries, Animal Husbandry & Dairying of India in February 2022, the Central Government gives a 50% capital subsidy (up to Rs. 50 lac or $61,117.93) to beneficiaries of the National Livestock Mission Scheme for the establishment of a feed or fodder value addition plant for Hay/Silage/Total Mixed Ration (TMR) TM preparation, fodder block construction, or fodder storage facilities.
Besides that, the Animal Husbandry Infrastructure Development Fund (AHIDF), a flagship scheme of DAHD, encourages Eligible Entitles (EE), that is, individual entrepreneurs, FPOs, MSMEs, private companies, and Section 8 companies, to establish animal feed manufacturing plants. The scheme also encourages strengthening existing units and plants in types such as feed supplements and feed premixes; the establishment of mini, medium, and large animal feed plants; by-pass protein units; enrich silage making units; total mixed ration block making units; mineral mixture plants; and the animal feed testing laboratory. Eligible borrowers can borrow up to 90% of the project cost to set up a feed production plant. Under the plan, the central government provides a 3.0% interest subsidy with a two-year moratorium.
Another factor driving the region's animal feed market growth is the region's increasing meat production capabilities. According to Our World in Data, in 2020, Asia-Pacific produced approximately 134.96 million tonnes of meat, of which China had the highest market share with 75.37 million tonnes of meat production. This shows the growing needs of feed management and feed products in the region.
Key Market Players
The key companies in the market include Shintoa Corporation, Godrej Agrovet Limited, KSE Limited, Uttara Foods & Feeds Pvt. Ltd., Wudi Deda Agriculture Co., Limited, PT Nubika Jaya, and others. These corporations are increasing their presence in the Asia-Pacific region to fulfill demand in the region. For instance, Bioiberica partnered with feed ingredient providers Aska Animal Health Co. and Shintoa Corporation in October 2022 to offer its Nucleoforce lines, and subsequently its Palbio portfolio, in Japan. The Spanish firm stated that the agreement with the two local partners allows Bioiberica to compete in a difficult and demanding market while also expanding its footprint in the Asia-Pacific region.