Global Cattle Feed Market Overview, 2024-29

Market Dynamic

Market Drivers • Growing Global Demand for Protein: One of the primary drivers of the global cattle market is the increasing demand for protein, particularly beef, driven by population growth and changing dietary preferences. As emerging economies, especially in Asia and Africa, experience rising incomes, more consumers are shifting towards diets that include more meat, leading to heightened cattle production. This demand is not only limited to traditional markets but is expanding in regions where beef consumption has historically been low, creating significant growth opportunities for cattle farmers worldwide. • Technological Advancements in Farming: The integration of technology in cattle farming is revolutionizing the global industry. Innovations such as precision agriculture, advanced breeding techniques, and health management systems are enhancing productivity and efficiency. Farmers are increasingly using data analytics, artificial intelligence, and IoT devices to monitor livestock health, optimize feed efficiency, and improve overall herd management. These technological advancements help producers meet the rising demand for beef while ensuring sustainability and profitability. Market Challenges • Climate Change and Environmental Concerns: Climate change poses a significant challenge to the global cattle market. Extreme weather events, such as droughts and floods, adversely affect cattle health and productivity. Additionally, the cattle industry faces scrutiny due to its environmental impact, particularly regarding greenhouse gas emissions and land use. As consumers and governments push for more sustainable practices, cattle farmers must adapt to changing regulations and societal expectations, which can increase operational costs. • Health and Safety Regulations: The global cattle market is subject to stringent health and safety regulations aimed at preventing diseases, such as bovine spongiform encephalopathy (BSE) and foot-and-mouth disease (FMD). Navigating these regulations can be challenging for farmers, especially smallholders who may lack the resources to comply with complex safety standards. The need for compliance can lead to increased production costs and market access barriers, particularly in regions with less developed regulatory frameworks. Market Trends • Sustainable and Ethical Farming Practices: There is a growing trend towards sustainability and ethical farming practices within the global cattle industry. Consumers are increasingly concerned about animal welfare, environmental sustainability, and the impact of cattle farming on climate change. As a result, many producers are adopting practices such as regenerative agriculture, organic farming, and humane treatment standards to meet consumer expectations. This trend not only enhances brand reputation but also opens up new market opportunities for sustainably produced beef. • Emergence of Alternative Proteins: The rise of alternative proteins, including plant-based meat substitutes and lab-grown meat, is becoming a significant trend in the global cattle market. As consumers become more health-conscious and environmentally aware, the demand for meat alternatives is increasing. This shift poses both a challenge and an opportunity for traditional cattle farmers, who may need to adapt their strategies and explore diversification into alternative protein sources to remain competitive in an evolving market landscape.

Key Development

• January 2023: De Heus Animal Nutrition starts its new greenfield animal feed factory in Ivory Coast, with an installed capacity to manufacture 120,000 metric tons of feed to cattle and other animals. • May 2022: Archer Daniel Midland Co. acquires a feed mill in Southern Mindanao, Philippines to continue expansion efforts for its Animal Nutrition business in the country. • November 2021: De Heus Vietnam signed a strategic partnership with Masan, after which De Heus took complete control over the feed business of MNS Feed. The feed business owned by MNS Feed operates thirteen animal feed mills and has nearly 4 million metric tons of production capacity, further solidifying De Heus' dominance in Southeast Asia's largest animal feed market.