Feed Strategy - February 2018 - 8
8 ❙ FeedStrategy
LIVESTOCK PREMIXES EVOLVE
Other factors shaping today's premixes
Beyond consumer pressure and reductions in medicated
mixtures, the premix industry is faced with several challenges and overarching trends that are changing the way
they do business and formulate their products.
1. Emphasis on safety and traceability: Feed safety is
the top priority for premix manufacturers. Ensuring their
customers receive the exact, quality formulations is paramount in premix production. To do so, suppliers utilize
barcode systems, RFID technology and dosing automation
to ensure ingredient traceability.
"Now, more than ever, we're seeing that it's critical to
invest in technology that provides customers the highest
level of assurance in the traceability of ingredients, additives and other animal nutrition products," Taylor said.
2. Ingredient availability struggles: Beyond the current
vitamins E and A shortages, supply chain issues and ingredient availability are a challenge for premix manufacturers.
"The premix industry has two drivers: the supply chain,
i.e., ingredient availability; and the nutritional knowledge
and capability to formulate quality premixes to meet the
needs of an animal throughout its life cycle," de Wildt said.
PREMIX SUPPLIERS ARE
INVESTING in dedicated
lines and facilities to
When premix ingredient supplies are volatile, manufacturers may reformulate as a temporary solution or rely
on support from long-term suppliers.
"With the recent vitamin crisis, we see the importance
of securing our sourcing and increasing preventive actions
to reduce sourcing risks," Fernandez said.
3. Consolidation narrows competition: Consolidation is
an ongoing trend in the animal feed industry.
Premix manufacturers will be challenged by the growing segment of professional farming and further consolidation at the integrator level, de Wildt said.
Cargill Animal Nutrition's new medication-free
facility in Lewisburg, Ohio, will open in spring 2019.
4. Influx of automation: Aside from shortages of qualified labor, the need for precision measurements without
risk of human error or injury is spurring a surge in automation among premix manufacturers. Investments range
from state-of-the-art micro-ingredient systems to robotic
5. Leveraging technology: Large premix manufacturers are
expanding and investing in specialized services, such as inline NIRs, animal production data management, farm expansion planning and environmental services, Marcon said.
"We are changing the nutrition focus from least-cost
formulation to animal profitability optimization through the
new animal production economic models," he said. "The
digital nutrition and analytics revolution will both complement and enhance our animal production solutions."
Opportunities for premix manufacturers
Asia-Pacific promises the most growth potential for
the premix industry. By 2022, it will hold more than 33
percent of the premix market, Mordor Intelligence reports.
The Middle East and Africa are also flagged as accelerated growth markets.
De Wildt said this development will be fueled by increased animal protein consumption happening mainly in
developing economies. Sources suggest the investment in
modernized production systems and further feed industry
consolidation will also contribute to this growth.
In mature markets, like North America and Europe,
sustainable feed solutions, intensification and complex
feed formulations will drive premix sales. ■
www.WATTAgNet.com ❙ February 2018