A
radical shift in the socio-cultural behavior occurring due to
globalization has impacted the forage feed market. Dairy farms,
animal husbandry, and poultry sectors are focusing on the purchase of
value added, high quality forage feed products, finds Transparency
Market Research (TMR) in a new study. Environmental considerations
are expected to play an important role in influencing the buying
decision of consumers. Major players operating in the global forage
feed market have their presence across the value chain. Some market
players such as BASF, Allied Seed LLC, and Cargill Incorporated have
wide experience in the forage feed industry. These companies are
working towards providing innovative solutions in the field of pest
management, forestland management, and improvement in the quality of
seeds.
Many
companies are focusing on the manufacturing of improved nutritional
herbicides and bio-based forages which increases the yield and
reduces the risks. Many international players are adopting
technologies that help improve land management. This is helping them
achieve intensive grassland production and is thus, intensifying
competition in the market.
Demand
for Organic Meat Drives Adoption of Forage Feed
There
has been a growing concern over meat consumption among consumers
across the globe. People have become more health conscious and are
increasingly demanding organic meat. Since for organic meat, animals
are fed on corn forages or grass, with no use of growth regulators,
fertilizers, pesticides, or additives, this type of meat is
healthier. Moreover, organic meat overcomes issues associated with
meat such as cholesterol, obesity, cancer, fat, and hypertension.
This is in turn driving the demand for forage feed.
The
worldwide meat production has increased by 20% in the last decade as
an increasing number of people are consuming meat. This has led to a
surge in animal breeding for livestock. Livestock or farm animals
consume forage as their primary feed. This is propelling the demand
for forage
feed.
The
health benefits of forage are also fueling the demand for this feed.
Forage consumption has several benefits such as increasing the
rumination among the cattle, increasing the fiber content, and
supplying 75% of the protein required in the diet of animals.
Moreover, forage consumption increases the performance of animals,
including reproduction.
Lack
of funding in Forage Research Restricts Growth of Forage Feed Market
Forage
research becomes necessary so as to have innovation that ensures
long-term profitability and sustainability for the producers.
However, due to budget insufficiency and non-replacement of retiring
personnel, the forage research has been on a decline. Another factor
that holds the potential to dampen the demand for forage feed is the
rising use of forage substitutes. Forage substitutes such as beet
pulpin low starch or high quality by-product diets can threaten the
demand for forage feed. Sand draught is another factor that has
surged the demand for substitutes. Choice of alternative feeds is
also done in order to decrease the dependency on grass forage feeds,
when there is shortage of harvested forage owing to drought, frost,
nutrient or soil deficiency, and excessive soil nitrogen.
Product
Innovation to Create Opportunities in Forage Feed Market
One
of the emerging key trends in the market is the development of forage
feed that is low in fat. Product innovations in forage feed such that
the feed is composed in a special way to reduce the fat content can
open many growth opportunities in the market. Extensive research is
being carried out to determine the composition of ingredients in
forage feed to provide maximum nutritional benefit to the animals.
Consumers
are increasingly demanding that livestock products have no
antibiotics, no growth hormones, and are organic. This is shifting
the focus of the companies towards developing products that are
energy rich and reduce the need for various other supplements. Case
in point. Triple Crown Nutrition Inc. has developed Equimix, a
product which is a unique blend of supplements for horse, eliminating
the need for many other additional supplement required for improved
digestion of horses.
Based
on product type, the stored forage segment led in 2013, accounting
for 41.51% of the global forage feed market. Asia Pacific accounted
for 30% of the global forage feed market in 2013, in terms of
production volume. By livestock, the poultry segment led in 2013,
accounting for 33.1% of the global forage feed market. The cattle
segment is expected to show a healthy growth in the coming years.
The
global forage feed market is expected to expand at a CAGR of 11.4%
from 2013 to 2019. The market which was valued at US$85.06 bn in 2013
is expected to be worth US$162.87 bn by 2019, as per TMR.
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