ASF Impacting Global Feed Production

The 2020 Alltech Global Feed Survey estimates that international feed tonnage decreased by 1.07 percent to 1.126 billion metric tons of feed produced last year.

Dr. Mark Lyons, president and CEO of Alltech, shared the results of the ninth annual Alltech Global Feed Survey during a livestream broadcast and panel discussion with industry experts.

Dr. Mark Lyons, president and CEO of Alltech (Photo Credit: Alltech)

The report is referenced throughout the global agriculture industry. Lyons says this year, they focused on the data, and trends that may provide market opportunities…

“It tends to be actually something that is referenced by a number of people and a number of policy makers. We see it in a lot of different reports. So, we have a lot of positive feedback around the data itself, but what we also look at is, there’s a lot of trends that can be kind-of brought out of this, and we can dig into those just a little bit more. That is why we made the change this year to not just present the data, but then to speak to some of those trends.”

He says the decline in global feed production is due largely to African swine fever (ASF) and the decline of pig feed in the Asia-Pacific region…

“The biggest trend I think we saw overall was really this impact of ASF, the impact it’s had in China, but also in Viet Nam. The loss of 35 to 40 percent of the production in China, higher than that in Viet Nam. So, we’re starting to see that born out in the feed data, and I think what’s going to be interesting is to see how does that continue into this coming year. So, globally, that meant that pig feed production was down 11 percent. It’s amazing just to think one region can affect things so significantly.”

Meanwhile, Lyons says alternative protein production and demand, a conversation point in agriculture for 2019, doesn’t seem to be impacting feed production…

“That was something that people talk an awful lot about, we’re hearing a lot in the media, and I think we have to realize a lot of that is being driven really by the people who are financing these businesses, not so much the real impact at the consumer level. It was interesting just to look within the data, and you start to think, okay, how much of these alternative proteins have been produced, and how much of an impact that’s having on feed production, it’s not. Maybe that’s something that’s born out in the future, but as of now I think it’s more of a emotive response than a financial response.”

Lyons says the biggest long-term trends focus on sustainability and health, where consumer demands are driving change…

“So, I think those are the big trends that are actually impacting producers. We had comments about how in Europe that regulations are coming in and those are being driven by consumers. There’s also a lot of pressure on food companies to be showing what the impact is of the products that they are selling on the environment. And, these are things that really we are seeing not just in Europe and North America, but also in Latin American and in Asia.”

To access the results of the ninth annual Alltech Global Feed Survey and a recording of the presentation, visit Alltechfeedsurvey.com