Market opportunities

There are a number factors that GMP+ International looks for to decide whether a country has real potential or not, such as number of sectors, market trends, market size and feed safety culture. In many cases, countries vary from one another depending on the type of products they produce, while geographical, climate, technological or even natural resources may affect production. For GMP+ International, all of these have to be considered and understood in order to be able to characterize the market accurately.

As we are responsible for sharing knowledge on improving safety and quality in the animal feed chain, we also contribute to improving the safety and quality of food for human consumption, specifically products from animals and by-products. It is crucial to assess whether we are a suitable fit for the market - not only whether the country is acceptable to us but also whether the country is ready or willing to accept us.

"Identifying genuine market opportunities is one of the most complex procedures in this market report - what is left and how many? Every country uses different models in reporting their activities related to feed value and supply chain. Because we need to start somewhere, we dug up, collated and processed as much information as possible."

Olyn San Miguel

Business Development

Market inventory7

Clustering the segments/scopes into 5 major entities. We presented the estimated number of locations and or companies/units available in each country in order to identify the potential and or remaining potential for GMP+ FSA and for GMP+ FRA. However, these numbers were presented based on the availability of statistics online. Hence, they may differ from the actual numbers. We will work to adjust our presentation as and when we receive updated figures. In the meantime, this is our starting point for identifying opportunities.

It shows that we have real opportunities in the following segments: • Production of feed materials (and ingredients) • Production of animal feed (premix, compound feed, aqua) • Services like transport • Trade

Production of animal feed (premix, compound feed, aqua) is important because if these suppliers have GMP+ FSA certification, they will tend to pull the entire supply chain in that direction. Given the uncertainty, we cannot tell how big our opportunities are in terms of numbers for other services such as laboratory, transport, transhipment, affreightment and storage. This sector has limited information available online. However, if we look at the current development of GMP+ FSA, these scopes are continuously growing.

Potential Scopes & Market Considerations8

In the market report, we were able to identify the characteristics of each country: market leaders in terms of feed material production, those that are able to process, re-sell/re-export, are strong in the production of meat, eggs, dairy and fish, dependent on imported materials and/or end products, self-sufficient or massive producers. In order to guide us as to which segment is important in each country, we defined 2 categories. Category 1 are scopes and segments with the highest number of GMP+ FSA certificates, while category 2 are potential scopes for growth based on the actual activities of the country. Market trends and considerations are also included in order to guide us in choosing the markets/countries to expand to.

Trade, storage and transhipment Transport Processing and production of feed ingredients Production of premixtures and compound feed

7 See Annex 7: Estimated Number of Locations/Companies/Units 8 See Annex 8: Potential Scopes and Market Considerations