Damon Mcknight
Australia has a large animal feed market, estimated at US$4.761 billion in 2021, and is expected to reach US$5.878 billion by 2028. The market is supported by the government, which has invested in initiatives to improve the productivity and efficiency of the cattle industry, such as the Cattle Industry Structural Adjustment Program (CISAP). The country's animal feed market is segmented into swine, aquatic animals, cattle, poultry, and others. The demand for animal feed in Australia is driven by the increasing consumption of meat and aquaculture, with a rise in population and disposable income. The market is heavily regulated by the Australian Pesticides and Veterinary Medicines Authority (APVMA), which controls feed additives and ensures that no hormones are used in stockfeed. The APVMA also provides guidelines for labelling and registration of animal feed products, including medicated feed and feed supplements. Australia also has a ruminant feed ban, which prohibits the feeding of restricted animal material (RAM) to ruminants such as cattle, sheep, and goats, to prevent the spread of diseases like bovine spongiform encephalopathy (BSE) or 'mad cow disease'. The country imports plant-based animal feed, but this poses a high biosecurity risk, leading to strict import conditions and domestic alternatives.
| Characteristics | Values |
|---|---|
| Market Size in 2021 | US$4.761 billion |
| Market Size in 2028 | US$5.878 billion |
| CAGR | 3.06% |
| Major Types | Hay, Processed Stockfeed, Pet Food, Aquaculture Feed, Bulk Grain |
| Major Livestock | Swine, Aquatic Animals, Cattle, Poultry |
| Raw Material Ingredients | Cereal Grains, Legume Grains, Vegetable Protein Meals, Animal Protein Meals, Cereal Milling Co-products, Minerals and Vitamins |
| Feed Additives | Controlled through the Australian Pesticide and Veterinary Medicines Authority (APVMA) |
| Hormones in Stockfeed | None |
| Feed Manufacturers Employ | Animal Nutritionists |
| Annual Feed Use in 2017-18 | 13.58 million tonnes |
| Feed Manufacturers | Ridley Corporation Limited, Aus Organic Feeds |
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What You'll Learn
- The Australian animal feed market was valued at US$4.76 billion in 2021
- The market is expected to grow at a rate of 3% to reach US$5.87 billion by 2028
- The demand for animal feed is driven by the increasing consumption of meat and aquaculture
- The Australian government supports the cattle industry through various initiatives and investments
- The animal feed industry in Australia follows strict guidelines for product safety and quality assurance
The Australian animal feed market was valued at US$4.76 billion in 2021
The rise in meat consumption, particularly poultry, is a significant driver of the animal feed market in Australia. The increase in population, disposable income, and consumer awareness about the benefits of meat and milk products have led to a shift in preference towards meat. This, coupled with a growing number of slaughterhouses and the relatively lower cost of poultry, has resulted in a boost for the animal feed industry.
Cattle feed is one of the largest segments of the Australian animal feed market, with beef production in Australia reaching high volumes. The demand for beef, both domestically and for export, is expected to drive the cattle feed market. The Australian government's focus on improving the productivity and efficiency of the cattle industry, through initiatives like the Cattle Industry Structural Adjustment Program (CISAP), will also contribute to the increased demand for high-quality cattle feed.
The Australian aquatic animal feed market, which includes feed for fish, shrimp, and other aquatic species, is smaller in comparison to other segments but is experiencing growth due to the increasing demand for seafood. The government's investment in aquaculture is expected to further drive the demand for aquatic animal feed.
The Australian animal feed market is also influenced by advancements in feed formulation technologies and the rising demand for high-performance, nutritionally balanced feed. Corn remains the primary feed ingredient due to its nutritional value and adaptability. The market is expected to continue its growth trajectory, reaching US$5.398 billion in 2025, according to forecasts.
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The market is expected to grow at a rate of 3% to reach US$5.87 billion by 2028
Animal feed is a crucial component of global food production, providing essential nutrition for animals and enabling the efficient production of animal-based products. In Australia, the animal feed market is a significant sector, with an estimated market size of US$4.761 billion in 2021. This market is projected to experience steady growth, with a compound annual growth rate (CAGR) of 3.06% from 2023 to 2028. As a result, the market size is expected to reach US$5.87 billion by 2028.
The growth of the animal feed market in Australia is driven by several factors. Firstly, there is an increasing demand for meat and aquaculture products globally, particularly in countries like China, the United States, Japan, and the Republic of Korea. This rising demand for meat is also evident within Australia, where per-capita annual consumption of meat, especially chicken and pork, has been on the rise. Health consciousness among consumers has contributed to this trend, as people seek protein-rich foods, including meat and seafood.
The Australian government's initiatives further support the growth of the animal feed market. Investments in the cattle industry, such as the Cattle Industry Structural Adjustment Program (CISAP), aim to improve productivity and efficiency, leading to an increased demand for high-quality cattle feed. Additionally, the government's focus on aquaculture development is expected to drive the demand for aquatic animal feed.
The compound feed market in Australia is highly consolidated, with key players such as Charoen Pokphand Foods, Cargill Inc., Alltech Inc., Archer Daniels Midland, and Land O Lakes (Purina) employing strategic mergers, acquisitions, and partnerships to strengthen their market position. The market is also witnessing the development of new feeds to cater to the increasing demand for lean and affordable protein sources, such as poultry and swine.
The projected growth rate of 3% highlights the expanding nature of Australia's animal feed market. This growth is underpinned by the harmonious relationship between the livestock industry and the animal feed market, where the increasing consumption of meat products drives the demand for nutritious feed to support animal health and growth. As a result, the market is anticipated to reach a significant size of US$5.87 billion by 2028.
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The demand for animal feed is driven by the increasing consumption of meat and aquaculture
Animal feed is an essential component of worldwide food production, providing animals with the necessary nutrition for improved immunity, accelerated growth, and good health. The demand for animal feed is closely linked to the increasing consumption of meat and the growth of the aquaculture industry. This relationship is particularly evident in Australia, where the animal feed market is expected to expand.
The rise in meat consumption is a significant driver of the animal feed market in Australia. As consumers become more health-conscious and seek protein-rich diets, the demand for meat products, including beef and poultry, is increasing. This trend is further bolstered by the growing population, rising disposable income, and the increasing number of slaughterhouses in the country. Consequently, the demand for animal feed, especially for cattle and poultry feed, is expected to increase to meet the growing need for meat.
Aquaculture, or the farming of aquatic organisms, is the fastest-growing food sector globally. It contributes significantly to the upward trend in per capita animal protein consumption. The expansion of the aquaculture industry, driven by technological advancements and investments, increases the demand for aquatic animal feed. In Australia, the aquatic animal feed market segment is small but growing due to the increasing demand for seafood.
The production of meat and aquaculture products is closely interconnected with animal feed. Feed conversion ratios (FCR) measure the amount of feed required to produce a certain quantity of meat. For instance, it takes approximately 25 kilograms of feed to yield one kilogram of beef, highlighting the significant role of animal feed in meat production. As the demand for meat and aquaculture products rises, so does the need for efficient and sustainable feed sources.
To meet the increasing demand for animal feed, efforts are being made to optimize biomass use and reduce competition between food and feed systems. Upcycling food system by-products and residues, such as crop residues, processing by-products, and livestock by-products, can increase the availability of feed resources and potentially enhance global food supply. Additionally, identifying alternative feed ingredients, such as protein and lipid-rich crops, yeasts, and microalgae, is crucial for reducing the reliance of the aquaculture industry on wild fish in feeds.
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The Australian government supports the cattle industry through various initiatives and investments
Animal feed is crucial for worldwide food production, as it enables the economic production of animal additives and is the most important source of nutrition for animals. The Australian animal feed market was valued at US$4.761 billion in 2021 and is expected to grow at a CAGR of 3.06% to reach US$5.878 billion by 2028. Cattle feed is one of the largest segments of the Australian animal feed market. The Australian government supports the cattle industry through various initiatives and investments.
The government is focusing on improving the productivity and efficiency of the cattle industry, which will increase the demand for high-quality cattle feed. The Australian government has invested in initiatives such as the Cattle Industry Structural Adjustment Program (CISAP), which provides funding for farmers to improve their productivity and efficiency. The government is also encouraging the production of poultry, which is expected to drive the demand for poultry feed. The Cattle Industry Fund, for instance, supports South Australian cattle farmers by funding projects and activities that benefit the industry. The fund is collected through payments of $1.50 per permanent identification device (tag) purchased by cattle owners.
The government also offers low-interest loans to help the agricultural economy grow and support farm businesses in preparing for and recovering from disruptions. Australia's beef industry is crucial to the economy, contributing to the agriculture sector's goal of reaching a $100 billion industry by 2030 and supporting thousands of jobs in regional and rural areas. The government works closely with project supporters throughout the entire project cycle, providing bespoke financing to drive public benefit and boost the economy and population in northern Australia.
Additionally, the government partners in research and development, offering financial advice and support to farmers. They help farmers prepare for droughts and adopt climate-smart practices, aiming to strengthen sustainable agriculture, fisheries, and forestry for all Australians. The government also supports the industry with strong biosecurity measures and works to improve export controls and services, enhancing the trust in the quality and safety of Australian meat products.
Furthermore, the government provides resources and factsheets to help producers advocate for the beef industry at the community level. These factsheets cover topics such as environment and sustainability, animal welfare, and the nutritional value of beef. The government also facilitates connections and referrals to government support networks, such as the AusIndustry Business Outreach Network, which has provided integral funding and support to businesses like Black Box Co.
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The animal feed industry in Australia follows strict guidelines for product safety and quality assurance
The animal feed industry in Australia is a significant sector, with an estimated market size of US$4.761 billion in 2021, and it is expected to grow further. The industry is subject to strict guidelines and regulations to ensure product safety and quality assurance.
One of the key priorities for the Australian animal feed industry is biosecurity. The country has strict measures in place to prevent the spread of diseases and pests through animal feed. This is especially important as imported animal feed can pose a high biosecurity risk, potentially introducing exotic pests and diseases that can harm humans, animals, crops, and the environment. Australia has a ruminant feed ban in place, which makes it illegal to feed restricted animal material (RAM) to ruminants such as cattle, sheep, goats, deer, camels, and alpacas. This ban was introduced to protect against bovine spongiform encephalopathy (BSE), also known as 'mad cow disease'.
The Australian Pesticides and Veterinary Medicines Authority (APVMA) plays a crucial role in regulating animal feed products. Feed additives are controlled by the APVMA, and only registered products are approved for use by stockfeed manufacturers. It is important to note that no hormones are used in any stockfeed manufactured within Australia. Animal feed products must meet specific labelling requirements, including clear statements about their intended use and a list of ingredients. They should not make therapeutic claims or be represented as containing any active constituents.
Additionally, the Australian animal feed industry has quality assurance programs such as FeedSafe and adheres to standards like AS 5812-2023. These programs and standards ensure that animal feed products meet the necessary safety and quality criteria. The industry also focuses on nutritional balance, employing animal nutritionists who formulate feed rations to meet the specific nutrient requirements of different classes of livestock.
The Australian government actively supports the animal feed industry, particularly the cattle industry, through initiatives such as the Cattle Industry Structural Adjustment Program (CISAP). This program provides funding to farmers to improve their productivity and efficiency. The government's investment in aquaculture is also expected to drive the demand for aquatic animal feed. Overall, the animal feed industry in Australia is committed to maintaining high standards of product safety and quality assurance through rigorous regulations, quality assurance programs, and a focus on nutritional expertise.
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Frequently asked questions
The Australia animal feed market was estimated at US$4.761 billion in 2021 and is expected to grow at a CAGR of 3.06% to reach a market size of US$5.878 billion by 2028.
The Australian Pesticides and Veterinary Medicines Authority (APVMA) controls feed additives, and only registered products are approved for use by stockfeed manufacturers. Feed manufacturers employ animal nutritionists who are scientifically qualified in animal nutrition. No hormones are used in any stockfeed manufactured within Australia.
The Australia animal feed market is segmented into swine, aquatic animals, cattle, poultry, and others, based on livestock. The major types of plant-based animal feed are hay, processed stockfeed, pet food, aquaculture feed, and bulk grain.
In Australia, it is illegal to feed restricted animal material (RAM) to ruminants (cattle, sheep, goats, deer, camels, and alpacas). This is known as the "ruminant feed ban" and was introduced in 1996 to prevent bovine spongiform encephalopathy or 'mad cow disease'.
