Market Trends of Africa Compound Feed Industry
Need for Increasing The Livestock Productivity
- Due to the rapid growth of urbanization, globalization, increasing health concerns, and disposable income, meat consumption is increasing in the region. Rising preference towards quality and protein-rich diet patterns is shifting consumers towards increased meat intake, particularly poultry. Hence, the consumption of poultry meat has been increasing over the years. For instance, according to the Organization for Economic Co-operation and Development (OECD), the per capita Poultry meat consumption was 31.8 kg in 2021, an increase of 0.10 kg from the previous year. The consumption is also driven by the lower price of poultry compared to other meats.
- Furthermore, livestock is an important asset in Africa, helping improve the nutritional status of its owners and contributing to economic growth. Livestock Productivity in the country was observed to be increased to meet the demand for meat and dairy products. Hence, to meet domestic consumption and reduce import dependency necessitates the livestock producers to feed quality food to the animals, thus driving the market for compound feed.
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South Africa Dominates the Market
- The South African compound feed market is recording steady growth, with increased production and demand for livestock products, a rise in the population, consumption levels, and urbanization. According to the Animal Feed Manufacturers Association (AFMA), the South African compound feed industry is primarily classified into five major categories: pig, broiler, beef and sheep, dairy, and layers. In the last few years, local soybean and oil production has ramped up, resulting in economical raw materials such as oilcake and meals supplied to the animal feed industry.
- According to an Altech survey, in 2022, there was a 3.86% decrease in feed tonnage in Africa, mainly because of reductions reported in Egypt, Morocco, Kenya, and Nigeria. South Africa, on the other hand, saw an increase of more than 2%. Feed production in South Africa by animal feed manufacturers has grown yearly due to increased spending on food, especially among the middle-class, robust demand for quality meat, and recovering tourism sector. Further, according to the Alltech feed survey, the country is equipped with 74 feed mills with a total compound feed production of 12.05 million metric tons in 2021, out of which 3.5 million metric tons is for broilers, 2.3 million metric tons for dairy cows, 2.0 million metric tons for beef.
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