What's up? Feed Industry news!

The animal nutrition market is expanding with key products like MSM, urea, monocalcium phosphate MCP, and skimmed milk powder SMP, enhancing livestock health and productivity. MSM is valued for its anti-inflammatory properties, while urea supports ruminant digestion, and MCP and SMP provide essential nutrients for bone and muscle development. Geopolitical events and challenges, such as BRICS trade initiatives, the BASF explosion, and the Peste des Petits Ruminants outbreak in Greece, are impacting the market. The European Feed Manufacturers’ Federation FEFAC is pushing for greater feed autonomy and sustainability, reflecting the industry's evolving nature.

Methylsulfonylmethane (MSM)

The methylsulfonylmethane (MSM) market is expected to grow significantly, reaching $2.14 billion by 2030 with an annual growth rate of 3.68%. Major demand for MSM in animal nutrition comes from North America, Europe, and the Asia-Pacific regions. MSM, an organic sulfur compound, is increasingly incorporated into animal feed for its numerous health benefits. It is particularly valued for its anti-inflammatory properties and its ability to support joint health, making it an excellent supplement for animals suffering from conditions like arthritis. MSM also acts as an antioxidant, improving the immune system and overall well-being in animals.

Urea

Urea prices remained stable, continuing from the previous month. Urea is extensively used in animal nutrition for ruminants like cattle as a key source of non-protein nitrogen (NPN), enhancing microbial protein synthesis in the rumen. This optimization aids in digestion and overall health, especially during periods of low-quality grazing. Proper management of urea inclusion levels is crucial to prevent toxicity and ensure effective nutrient absorption. The global urea market is growing steadily due to rising agricultural demands and advancements in urea formulations, with the Asia-Pacific region, led by China and India, dominating production and consumption. Proper management of urea inclusion levels is crucial to prevent toxicity and ensure effective nutrient absorption.

Monocalcium Phosphate

Monocalcium phosphate (MCP) prices are anticipated to rise due to increasing costs of phosphoric acid, supply constraints, and global transportation challenges. MCP is a vital component in animal nutrition, particularly for poultry and ruminants, providing essential phosphorus and calcium necessary for bone development and overall growth. Its high solubility and digestibility enhance nutrient absorption, improving animal health and feed efficiency while reducing environmental impact from nutrient waste. The global demand for MCP is driven by its effectiveness in optimizing animal feed, contributing to more sustainable farming practices.

Skimmed Milk Powder

The market for Skimmed Milk Powder (SMP) in the Netherlands is showing a slight upward trend, driven by increased production costs and a preference among producers for liquid sales. Despite this, the global market remains subdued due to low demand from importing countries. In animal nutrition, SMP is essential for its high protein content, which is crucial for the growth and development of young animals such as calves and piglets. SMP supports muscle development, improves weight gain, and boosts overall health in these animals, making it a valuable component in their diets. Additionally, it provides an excellent source of digestible energy, enhancing feed efficiency and supporting the overall well-being of livestock.

The BRICS countries are pushing for increased agricultural trade cooperation, highlighted during the BRICS 2024 conference on food security in Moscow. Officials noted that agricultural exports within BRICS grew by 43% between 2018 and 2022. The bloc's members, which control a significant portion of global agricultural land and production, are considering establishing an inter-BRICS grain exchange to regulate prices akin to OPEC for oil. This move could significantly impact global feed markets by altering price-setting mechanisms for key commodities like wheat, corn, and rice. However, despite the potential, challenges remain due to the varied interests of BRICS members as both exporters and importers.?

An explosion and fire at BASF's Ludwigshafen facility on July 29, 2024, caused by an organic solvent leak, led to the shutdown of a significant production area. While environmental monitoring confirmed no contamination, the incident is expected to disrupt the supply of key chemicals and vitamins, including vitamins A and E, crucial for the global feed market. The affected area is vital for producing precursors used in carotenoids and vitamins synthesis. Although partial access has been restored and some aroma ingredient production continues, market uncertainty persists, with potential price increases of 30-60% for vitamins A and E due to anticipated supply shortages.?

Greek farmers, already reeling from last year's devastating floods, now face a new challenge as the highly contagious Peste des Petits Ruminants (PPR), or goat plague, spreads across the country. Detected for the first time in Greece last month, the virus has led to the culling of 12,000 animals and testing of over 300,000, with 22 farms affected. The government has imposed a temporary ban on the movement and slaughter of sheep and goats to contain the outbreak. Farmers who lost nearly all their livestock to floods, are now incurring additional costs for disinfectants to protect their remaining animals. The situation exacerbates the struggles of Greek farmers already battling climate change and economic pressures.

At its 68th Annual Public Meeting in Brussels, the European Feed Manufacturers’ Federation (FEFAC) emphasized the need for increased feed autonomy and circularity amid ongoing geopolitical tensions disrupting EU feed and food supply chains. FEFAC President Pedro Cordero highlighted 12 recommendations for the EU Strategic Agenda 2024–2029, urging policies that reduce dependency on imported feed proteins and enhance domestic production. The meeting underscored the importance of national feed protein balance sheets, investments in alternative protein sources like algae and single-cell proteins, and the development of circular feed strategies to improve sustainability and reduce carbon emissions. Despite progress, achieving self-sufficiency remains a challenge, with a combination of strategies needed to bolster feed security and resilience.