Covid-19 Impact on Feed Additives in the Agriculture and Global Feed Industry The coronavirus has had a huge impact on daily life from the man on the street to businesses. And the livestock feed sector, even more essential than ever, has not gone unscathed. Due to the pandemic and lockdown, the supply chain of the raw ingredient has impacted the consumption and production patterns worldwide. Animals cannot get enough nutrition from regular feed hence the feed additives are added in their regular meal containing vitamins, fatty acids, amino acids, and trace minerals. The COVID-19 outbreak from December 2019 have impacted more than 100 countries across globe and significantly impacted the compound feed and additives market in 2020. The pandemic have affected the overall animal nutrition in three different ways considering:
The demand of the meat products
The production of feed
The supply chain market disruption
The financial impact on feed vendors
Supply chain disruptions COVID-19 has printed a negative impact on global economic outlook in the first quarter of 2020. The immediate animal nutrition industry suffers from major supply chain disruption. The pandemic have affected countries such as Italy, Spain, France, China and other key countries and down chain supplier region and feed sector struggling to meet the demand. This is evident for the lack of supply of micro ingredients such as amino acids, minerals and vitamins. For instance, in March, one of the prominent vendor of feed market Evonik have forced majeure to fulfill the need of the amino acid especially threonine amino acid. The product of Evonik is manufactured by contract manufacturers in China and facing the issue in the procurement of threonine due to shut down of the city.
The below table shows the consumption pattern of meat regionally or country wise: CONSUMPTION OF MEAT (2018-2020) Country / Region
2018
2019
2020 (January)
2020 (April)
European Union
11,537
11,636
11,700
11,180
Brazil
9,671
9,865
11,175
9,903
India
4,059
4,347
4,900
3,998
Argentina
1,955
2,021
2,066
2,035
Thailand
2,354
2,459
2,500
2,000
POST COVID-19 CHALLE NGES AND OPPORTUNITIES IN-DEPTH REPORT AVAILABLE HER E From the above table, it is clearly visible that COVID-19 not only has impacted the production of meat in countries but also the consumption pattern. For instance,
American Feed Industry Association (AFIA) has cancelled their conference of Purchasing & Ingredients Suppliers Conference (PISC) which was supposed to hold in March 2020. Animal Health & Nutrition Conference held by Victam in Bangkok will be held in July and the U.S. Poultry and Egg Association (U.S. POULTRY) have been postponed. With this uncertainty caused by COVID-19, the regulatory bodies have taken initiatives to start their conference on digital platform. For instance,
Alltech one of the key player converted its annual ONE Ideas Conference to a virtual format.
The feed industry faces rapid loss in the demand and production of livestock, feed and supply chain, whereas the protein extracted from corn have been one of the major opportunity as the cost of corn have been lower and making an opportunity for compound feed producers. Request for Report Brochure: https://www.databridgemarketresearch.com/covid-19resources/covid-19-impact-on-feed-additives-in-the-agriculture-and-feed-animal-feedindustry The increasing awareness about livestock nutrition, modernization of the livestock industry, and the rise in the consumption of meat & other livestock-based products have led to an increase in the market size of feed additives. However, due to COVID-19, feed manufacturers and producers are becoming more aware of techniques and strategies to cope up with the situation. This, in turn, is projected to drive the demand for feed additives, as the market growth starts stabilizing.
Conclusion COVID-19 pandemic has taken a toll on the global population and economy. A collaborative effort on government, public health departments, and hospital fraternity to fight the coronavirus has led to economic slowdowns, global lockdowns, and extreme public safety measures. The public health measures include creating awareness about home quarantine measuring, maintaining food and healthcare supply, especially to the poor are being strictly followed by government across the world. Along with the food and healthcare industry, the feed industry is facing problems due to the non-working manufacturing industry. The demand for feed for livestock is high as the maintenance of livestock is an important aspect for breeders. This has increased the reliability on plain feed for animals without the addition of the nutritive value of the feed resulting in a loss in the business. The livestock industry has affected due to pandemic situations which in turn affected the feed additive industry as a result of reduced demand from breeders.
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