Nourishing Agriculture: Analyzing the Dynamics of the Compound Feed Market

The growing awareness regarding the quality of livestock products is a crucial factor expected to enable growth of the global compound feed market, says Fortune Business Insights™ in a report, titled “Compound Feed Market Size, Share And Global Trend By Ingredient Type(Feed grains, Cakes & Meals, By-Products, Supplements), By Source(Plant-sourced, Animal-sourced), By Livestock (Ruminants(Calves, Dairy, & Beef Cattle), Swine(Starter, Grower, and Sow), Poultry(Chicks, Broilers, and Layers), Aquatic animals(Molluscs and Fish)), And Geography Forecast Till 2026” the growing storage issue with traditional feedstuffs is likely to fuel demand for compound feed during the forecast period.

Compound feed, also known as complete feed or manufactured feed, refers to a type of animal feed that is formulated by combining various ingredients to provide balanced nutrition for livestock, poultry, and aquaculture species. Compound feed is typically produced in large quantities by feed manufacturers or feed mills and is a convenient way to meet the specific nutritional requirements of different animal species at various life stages.

Compound feed is formulated to provide a balanced combination of energy, protein, vitamins, minerals, and other essential nutrients that animals need for growth, maintenance, reproduction, and overall health. The formulation of compound feed varies depending on the species, age, size, and production stage of the animals being fed.

The main ingredients used in compound feed can include grains (such as corn, wheat, barley, and sorghum), oilseeds (such as soybeans, canola, and sunflower), protein sources (such as fishmeal, meat and bone meal, and soybean meal), and various additives (such as vitamins, minerals, amino acids, and enzymes). These ingredients are carefully selected and combined to meet the specific nutritional requirements of the target animal species.

The production process of compound feed involves grinding, mixing, and pelleting or extruding the ingredients to produce a uniform and easily consumable feed. The feed manufacturing industry follows strict quality control measures to ensure the safety and nutritional integrity of the feed. This includes testing raw materials for quality, monitoring the manufacturing process, and implementing proper storage and handling practices.

Compound feed offers several advantages over feeding animals with individual ingredients or home-mixed rations. It provides a convenient and consistent source of nutrition, simplifies feeding management, ensures that animals receive a balanced diet, and can enhance animal performance, productivity, and overall health. It is widely used in commercial livestock and poultry production systems, where high-quality nutrition is crucial for efficient production and optimal animal welfare.

According to the report, the surge in commercial livestock producing units & scope to enhance the productivity to cater to the increasing demand is expected to contribute positively to the compound feed market revenue during the forecast period. According to the Food and Agriculture Organization (FAO), global milk production is projected to increase by 22% during the medium-term forecast period (2018 to 2027). Furthermore, increasing awareness about the nutritional requirement of livestock animals and balanced feeding practices will further create new growth opportunities for the market in the foreseeable future. In addition, the wide-range of compound feed products offered by key players is expected to accelerate the growth of the market.

The report offers profound insights into all the prevailing trends of the compound feed market. It shares an all-encompassing study of all the segments and provides authentically procured data. It is put together after extensive research followed by descriptive analysis to assist companies, stakeholders, financers, and potential investors. It is designed with an aim to provide a perfect depiction of the market size. Moreover, it also covers parts such as product launches, acquisitions, collaborations & partnerships, and innovations and industry developments.

Acquisition of Cargill by AURELIUS to Spur Sales Opportunities

AURELIUS Equity Opportunities SE & Co, an asset management group and a leader in animal nutrition, acquired Cargill’s animal nutrition business in Switzerland. The Swiss product offering includes specialty feed for pets, horses, zoo animals and medicated feed. Cargill employs about 250 people who will be transitioned under existing contracts, and operates three well-equipped, state-of-the-art animal feed production sites across Switzerland, among them a new facility constructed in 2016 at its location in Lucens. The new project is expected to aid Cargill in the management of employees and entirely focus on its customers. The acquisition of Cargill by AURELIUS is predicted to stimulate the healthy growth of the market during the forecast period.

Furthermore, the acquisition of Philippines-based Aboitiz Equity Ventures is predicted to boost the compound feed market share during the forecast period. For instance, Philippines-based Aboitiz Equity Ventures acquired a 75% stake in Asia's largest animal feed company Gold Coin Management Holdings in 2018. Moreover, the increasing demand for feed materials due to declining grazing land is expected to foster the growth of the market. The collection and storage issues with traditional feedstuffs is also predicted to bode well for the market.

However, availability & use of cheaply priced substitute products grown at the farms (ease of access) is predicted to hamper the growth of the market. The low purchasing power, inadequate extension, along with poor infrastructure are factors predicted to inhibit the growth of the market in the forthcoming years.

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https://www.fortunebusinessinsights.com/industry-reports/compound-feed-market-100525