Feed Strategy - December 2019 - 16

16 ❙ FeedStrategy
WATCHLIST FOR 2020

Organic animal feed could face tight market
in 2020: https://bit.ly/32VRAhO

are already under severe regulatory
pressure. In other words, feed manufacturers should rethink their positions toward small and
medium animal producers as part of their own "sustainable" business model for the near future.

4

The questionable
future of mega-farms

It is interesting to note that lists of mega-farms
abound in the press. In fact, it remains the
dream of every salesperson to enter in business with such
entities. It is not so much for the profitability, because
such huge enterprises always squeeze the ever-shrinking
margins and they seldom remain loyal to one supplier, but
the sales instinct and the marketing fascination emanating
from such interactions are hard to beat.
Nevertheless, several politicians have started talking
about the restriction of mega-farms or, as some call it, the
banning of factory farming.
Feed manufacturers with a very narrow client basis,
and one that is composed of high-volume clients would do
best if they devoted some of their interests in expanding
their clientele to include a wider variety of customers, for
obvious reasons. In addition, feed manufacturers could
also benefit from rethinking the type of products they can
(or cannot) offer to future mega-farms.

5

ASF and the prospect
of severe quarantines

The devastating spread of the ASF virus does
not appear to be abating. If anything, the
disease continues to spread with alarming speed not only
within countries but also among non-neighboring regions.
Some veterinarians even discuss when (and not if) it will
cross the oceans spreading to the American continent.
One major issue that is already being discussed is the
quarantining of certain susceptible ingredients, especially those sourced from already affected areas. This

will increase stock and expenditure in capital for additives and ingredients, but it can prove disastrous if the
same is applied to complete feeds due to the enormous
volumes involved.
Already, some entities have increased their stockpile of
sensitive materials and complete feeds - always taking
into account the sensitive nature and expiration deadlines
of any such products. Others enter into alliances to ensure
flow of products will continue through alternate routes, yet
others prefer to bring feed production much closer to home.

6

Availability and volatility
of micro-ingredients

These suppliers are recent players in the
animal nutrition industry. They arrived with a
big bang and they seem to disappear as noisily. Although
we see more sellers of micro-ingredients (including
additives) today, this does not mean business volume is
increasing. It means that such micro-ingredients are now
sourced very cheaply and easily from east Asia.
We are experiencing a fatigue in this area and a lack
of new and enterprising concepts. This segment of the
industry remains largely dependent on the recent initiative
to abandon antibiotics and coccidiostats in some parts of
the world, something that cannot be sustained indefinitely.
The recent ASF issues, coupled with a trend toward
convincing humans of the benefits of plant-based food
protein, might indicate a less profitable or contracted
animal industry, at least short term, that will force highmargin seekers out of this industry. Most of these companies have a human division branch and they have just realized there are even greater margins there and as such, they
have been divesting from their animal nutrition divisions.
It is simply a matter of margins and this might translate a shift in availability for certain additives in the
animal nutrition industry. ■

Ioannis Mavromichalis, Ph.D., is an animal nutrition industry consultant. To contact Mavromichalis, email
imavromichalis@icloud.com.
www.FeedStrategy.com ❙ December 2019


https://www.bit.ly/32VRAhO http://www.FeedStrategy.com

Feed Strategy - December 2019

Table of Contents for the Digital Edition of Feed Strategy - December 2019

Feed Strategy - December 2019
Contents
In the Mix
Industry Happenings
Mar-Jac Poultry feed mill built for capacity, expansion
A feed manufacturer’s watchlist for 2020
What feed formulators need to know about organic rations
Marketing nutrition by writing the article
Updating thinking on bioactive fatty acids in pig nutrition
Examining the components of optimal dairy cow nutrition
4 programs for the feed industry at 2020 IPPE
Advertisers’ Index
Feed Strategy - December 2019 - CT1
Feed Strategy - December 2019 - CT2
Feed Strategy - December 2019 - Feed Strategy - December 2019
Feed Strategy - December 2019 - Cover2
Feed Strategy - December 2019 - Contents
Feed Strategy - December 2019 - In the Mix
Feed Strategy - December 2019 - Industry Happenings
Feed Strategy - December 2019 - Mar-Jac Poultry feed mill built for capacity, expansion
Feed Strategy - December 2019 - 5
Feed Strategy - December 2019 - 6
Feed Strategy - December 2019 - 7
Feed Strategy - December 2019 - 8
Feed Strategy - December 2019 - 9
Feed Strategy - December 2019 - 10
Feed Strategy - December 2019 - 11
Feed Strategy - December 2019 - 12
Feed Strategy - December 2019 - 13
Feed Strategy - December 2019 - A feed manufacturer’s watchlist for 2020
Feed Strategy - December 2019 - 15
Feed Strategy - December 2019 - 16
Feed Strategy - December 2019 - 17
Feed Strategy - December 2019 - What feed formulators need to know about organic rations
Feed Strategy - December 2019 - 19
Feed Strategy - December 2019 - 20
Feed Strategy - December 2019 - 21
Feed Strategy - December 2019 - Marketing nutrition by writing the article
Feed Strategy - December 2019 - 23
Feed Strategy - December 2019 - Updating thinking on bioactive fatty acids in pig nutrition
Feed Strategy - December 2019 - 25
Feed Strategy - December 2019 - 26
Feed Strategy - December 2019 - 27
Feed Strategy - December 2019 - 28
Feed Strategy - December 2019 - 29
Feed Strategy - December 2019 - Examining the components of optimal dairy cow nutrition
Feed Strategy - December 2019 - 31
Feed Strategy - December 2019 - 32
Feed Strategy - December 2019 - 33
Feed Strategy - December 2019 - 34
Feed Strategy - December 2019 - 35
Feed Strategy - December 2019 - 36
Feed Strategy - December 2019 - 37
Feed Strategy - December 2019 - 4 programs for the feed industry at 2020 IPPE
Feed Strategy - December 2019 - 39
Feed Strategy - December 2019 - Advertisers’ Index
Feed Strategy - December 2019 - Cover3
Feed Strategy - December 2019 - Cover4
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