Global feed production is expected to rise by 2.5% in 2024, according to the US-based consultant.
Key regions contributing to this growth include Europe, which continues to expand, albeit at a much slower rate than Asia, Latin America, and North America.
“Global protein consumption, driven by Asia and Latin America, is fueling the demand for feed.”
Meanwhile, Russia is achieving greater self-sufficiency in feed output, notes the consultant, who used to be behind Alltech’s yearly Global Feed Production Survey.
He acknowledges though that statistical accuracy in determining feed production per country can be limited by the methodology, which primarily tracks feed passing through mills rather than all feed consumed by animals.
Chicken remains the leading protein with robust growth, while pork is steady, and beef faces significant challenges, he continues.
Feed additives market
The feed additives market has seen mixed dynamics in 2024. While amino acids and vitamins have been experiencing volatility due to increased capacity in China, the broader market has performed well, believes the feed industry veteran.
International feed additive producers reported positive growth at EuroTier 2024, he outlines.
Read more about feed additives market dynamic
Specialty enzymes such as protease are showing robust performance, while more commodity style enzymes are growing incrementally, says Connolly.
DSM-Firmenich’s innovative additives, including the methane-reducing 3NOP product Bovaer, are reshaping the landscape, he contends.
“Advancements like Bovaer are lifting all boats,” Connolly comments. “However, companies are maintaining lean operations and avoiding major investments despite bullish market sentiment.”
Animal agtech: Opportunities and hurdles
The animal agtech sector holds tremendous potential but continues to face slow adoption. Connolly highlighted the complexity of the agricultural environment, including issues like dust, rodents, connectivity challenges, and the need for precise data collection through sensors, cameras, and robotics.
“The gap between where we are and where we need to be is massive,” Connolly said. “Measurement and data are essential for bridging this divide. Precision feeding, animal welfare monitoring, and environmental management are crucial for improving productivity and quality. Digital technologies are the way forward.”
The disparity in performance between top and bottom-tier producers remains significant. In Brazil’s poultry sector, for example, top farms outperform the bottom by 16%, even in a controlled industry. Similar gaps exist in dairy, pork, and aquaculture, illustrating the need for precision technologies and improved management practices.
Aidan Connolly, president of Agritech Capital
With 30 years in agribusiness, the feed and agtech industry specialist has tackled diverse executive and managerial challenges, including start-ups, high growth, turnarounds, and navigating varied political and economic systems.
Rethinking agtech funding
Connolly called for a reevaluation of the agtech funding model, emphasizing the role of agribusinesses, cooperatives, and associations in driving innovation. Pilot and demonstration farms are essential for highlighting technologies and fostering adoption.
“The industry agrees on the validity of many technologies,” he states. “The debate often centers around timelines. Continued investment from agribusinesses, producers, and integrated companies like Smithfield, Tyson, and JBS is crucial.”
Continued innovation in genetics, vaccination, nutrition, and feed additives as well as agtech are required to advance the sector, and greater levels of collaboration will be key, adds Connolly.