PALO ALTO, Calif. - Increasing interest of the government in the health conditions of animals due to the outbreak of bird flu and foot-and-mouth disease has boosted demand for high-quality ingredients in animal feed. This demand is driving the growth of the animal feed additives industry.
Legislations such as the ban on antibiotic growth promoters (AGPs) in the European Union compel the industry to discover alternative feed ingredients, especially with pork producers increasingly demanding substitutes for growth promoters.
A number of tests on the replacing additive are likely to assure consumers about the robust properties of alternative ingredients. Manufacturers of alternative feed ingredients will have to recapture the benefits of AGPs and offer additional product advantages.
"These tests will also gauge the new ingredients' ability to effectively comply with the required standards," says Frost & Sullivan Research Analyst R. Srimathy. "Food safety in the case of animal feed is a complex issue, as it involves various factors such as animal welfare, animal health, environmental regulations and legal considerations."
Another upshot of government regulations on animal feed is the huge demand for phytase. The Environmental Protection Agency's (EPA) concerns about chemical emissions from the agricultural industry have forced farmers to reduce phosphate content in animal wastes, boosting the market for animal feed enzymes such as phytase.
One of the key drivers of feed additives is consumer demand for guaranteed safe foods. This forces the industry to comply with industry standards and produce quality foods, since animals reared for their meat require superior feed with optimum balance of different nutrients.
"The increased demand for naturally reared meat often results in the expansion of livestock production, which would, in turn, increase production of intermediate products such as animal feed and feed additives," notes Srimathy. "This requirement for meat is likely to improve sale of feed grains and protein meals."
Moreover, a continuous rise in demand for pig and poultry meat has encouraged the growth of the animal feed and feed additives industry, as these animal categories account for a bulk of its end-user segments.