The farm animal feed market - France (2024)

1.2 Global market size

The livestock feed market will be worth $*** billion by **** (***), and is expected to grow at a CAGR of *. *% to ****. This growth is driven by increasing demand for animal feed worldwide. While the emergence of new trends such as vegetarian and vegan diets or a focus on animal welfare, including farm animals, is potentially detrimental to the the industry, these trends are more than offset by global population growth,urbanization and the general increase in consumption of meat and other animal products such as milk and eggs.

Livestock feed market size World, ****-****, billions of dollars researchanmarkets

Geographically, production is heavily concentrated in China and the United States, with other producing countries, albeit widely spaced, including Brazil, India, Mexico, Spain, Russia, Turkey, Japan and Germany.

According to the Alltechthese ** countries accounted for **% of global farm animal feed production in ****:

Country Production in thousands of tonnes *. China *** *** *. united States *** *** *. Brazil ** *** *. India ** *** *. Mexico ** *** *. Spain ** *** *. Russia ** *** *. Turkey ** *** *. Japan ** *** **. Germany ** ***

France ranked among the top ** producers, with production of **,*** thousand tonnes in ****.

1.3 The European market

Source: ****

According to FEFAC members, compound feed production in the EU reached ***.* million tonnes in ****, down -*.*% on ****. This decline affected all feed sectors, with a notable-*. *% drop in the pig sector and -*.*% in the poultry sector. This downward trend is largely attributed to the prevalence of animal diseases such as avian flu and African swine fever.

The economic crisis linked to the Russian invasion of the Ukraine and the resulting energy crisis has led to higher inflation and lower demand for animal products. Consequently, this drop in demand has had a direct impact on feed production. However, some countries such as Austria, Finland, Ireland, Poland, Slovenia and Sweden have managed to stabilize or increase their feed production levels, albeit modestly.

In ****, poultry feed production fell by *.* million tonnes due to a number of factors, including the impact of avian flu in some countries and the high cost of utilities during the winter. The pig feed sector also saw a notable drop, with a reduction of almost * million tonnes compared to ****, due to the closure of many small farms in certain regions.

Poland stood out as the country with the most significant growth in compound feed production, while other major ...

1.4 The domestic market

Sales in the French farm animal feed market have grown significantly in recent years. In ****, sales amounted to *.** billion euros, and have steadily risen to reach **.** billion euros in ****, representing an average annual growth rate of *.**% over this period.

This upward trend testifies to a positive dynamic in the French livestock and animal feed sector. However, it is important to note that the market stagnated in ****, with sales of **.** billion euros. This could be attributed to the war in Ukraine and the ensuing energy crisis, which have led to economic instability and disruption in global supply chains, particularly in the agricultural sector.

Sales and production value of farm animal feed France, ****-****, billions of euros INSEE

As the third largest producer in the European Union, France plays a key role in the European farm animal feed market. Its leading position reinforces its influence on European market trends and its importance in the global supply chain. Sustained sales growth testifies to the resilience and competitiveness of the French agricultural sector, as well as its commitment to innovation and sustainability.

1.5 Trade balance analysis

Between **** and ****, imports rose significantly, from *,*** million euros to *,*** million euros, an increase of **% in * years.

At the same time, exports also increased over the same period, rising from *,*** million euros in **** to *,*** million euros in ****, an increase of **% in * years. This increase indicates the growing competitiveness of French products on international markets.

The coverage rate has risen slightly from *.** in **** to *.** in ****. It indicates France's strong capacity to cover the cost of its imports through its exports.

Feed imports and exports France, ****-****, millions of euros UNCOMTRADE

The Netherlands, Belgium and Germany are the main suppliers, together accounting for almost **% of total imports over the ****-**** period. This heavy dependence on these three neighboring countries reflects strong economic and logistical ties. Imports from the UK and Spain are less significant, each accounting for *.*% of the total. The rest of the world contributes **.*%, suggesting a diversification of supply sources to meet the varied needs of the French market.

Breakdown of feed imports France, ****, (***) France's feed exports show a more balanced breakdown with a diversity of trading partners. Between **** and ****, the main destinations were Spain, Italy and Belgium, together accounting for almost **.*% of total exports. Compared with imports, where the Netherlands, Belgium ...

1.6 Market specifics

Dependence on raw materials: The farm animal feed market in France is sensitive to variations in the prices of agricultural raw materials such as corn and soy, which influence production costs and sales prices. Fluctuations in the prices of these raw materials can have a significant impact on the profitability of companies in the sector.

Sensitivity to climatic conditions: adverse weather conditions such as droughts or floods affect the availability and prices of raw materials used in animal feed, leading to market disruptions. Farmers and feed companies must constantly adapt to changing weather conditions to ensure a stable supply of feed.

Specialized distribution via agricultural cooperatives: Animal feed is often distributed via large agricultural cooperatives in France. These cooperatives bring together producers to facilitate the supply and distribution of products to the market. They play a crucial role in supplying quality feed to livestock farmers, while ensuring efficient management of the supply chain.

European regulations: The farm animal feed market in France is also influenced by European regulations, particularly with regard to food safety, animal health and environmental sustainability. European directives impact farming practices and production standards in France, forcing market players to comply with high standards of feed quality and ...

2.1 Analysis of demand through breeding operations in France

The breakdown of French livestock into livestock units highlights the predominance of cattle, poultry and pigs. These three categories account for **% of French livestock, with cattle in the lead(***).

Breakdown of French livestock in livestock units* France France, ****, in percent Source: INSEE *UGB: Unité Gros Bétail (***) based on feed consumption. one LU corresponds to the feed consumption of one dairy cow.

Since ****, the French livestock population has declined significantly, with a loss of around * million livestock units(***)

french livestock trends France, **** - ****, in thousands of head Source: ****

The above table shows a significant reduction in the French livestock population. In fact, total livestock numbers have fallen from **,*** thousand head in **** to **,*** thousand head in ****, a total decline of *,*** thousand head over this period. This represents areduction rate of around **.*% over * years.

This downward trend is particularly marked in the cattle category, which is a major player in farm animal feed consumption. The cattle herd has fallen significantly, from **,*** thousand head in **** to **,*** thousand head in ****, a decrease of *.*% in * years.

Several factors may explain this downward trend in French livestock numbers. These include animal disease outbreaks such as bird flu and other epidemics, as well as economic pressures on ...

2.2 Analysis of demand through consumption of meat and dairy products

Individual consumption of meat and eggs is directly correlated with demand for farm animal feed . In France from **** to ****, it is fairly constant, with minor variations from one year to the next. Overall demand therefore depends on the evolution of the French population. Individual meat consumption e

Analysis of dietary trends in France shows a decline in fresh butcher's meat consumption, with significant reductions in the **-** (***) age groups. This decline is amplified by inflation and reduced purchasing power, forcing households to reassess their spending. In addition, the rise of plant-based diets, notably veganism, reflects a shift in food preferences, especially among younger people.

Fresh poultry and fresh rabbits are seeing an increase in consumptionparticularly among the under-**s (***), suggesting an inclination towards meats considered healthier or more economical. The ham and charcuterie are seeing an increase in consumption among the elderlythis may indicate a different appreciation of processed meats by this age group. Thefrozen meats and poultryare declining across all age groups.

Between **** and ****, consumption of fresh meat fell by **%. This meat is often of French origin, implying support for the local agricultural sector. Consumption of dairy products decreasedby *.*%, confirmingconfirming a downward trend in the consumption of animal products.

evolution ...

2.3 International challenge

The French farm animal feed industry is facing an increase in the use of ingredients imported from China, particularly for poultry and pigs. France's Metabolic Explorer, Europe's leading producer of amino acids by fermentation, is directly affected by this competition, as its Amiens plant is under-utilized following a reduction in orders and a price cut by China, which has halved prices. As a result, Chinese imports of lysine, an essential amino acid, have risen from **% to over **% of European requirements in three years.

This situation is impacting the competitiveness of the French agri-food industry, already under pressure from a **% increase in food prices by **** and unprecedented volatility in grain prices. The sector could see its production reduced to **.* million tonnes this year, indicating a loss of one million tonnes over five years.

Manufacturers, aware of thedecarbonization challenge, see amino acids as a sustainable alternative to soy imported from South America, potentially reducing soy imports by * million tonnes a year, i.e. a reduction of * million tonnes of CO*. To maintain its competitiveness, the industry is calling for European protection measures, such as taxes on amino acid imports.Source: ****

3.1 Farm animal feed value chain

The main raw materials are

Cereals are the mainstay of animal feed, accounting for **% of total dry matter consumption by livestock[***]. The most widely used are: rice, wheat, barley, maize, sorghum, rye and oats Proteins, mainly soybean Food waste

Additives are then added to complete the food. Additives are substances, micro-organisms or preparations intentionally added to feed or drinking water to perform one or more functions, according to which they are divided into specific categories:

technological additives e.g. to protect foodstuffs against spoilage, homogenize, adjust pH, increase viscosity, reduce or increase binding between feedstuffs and water.to reduce or increase binding between food particles, improve the mechanical properties of foods (***), but also shelf life, etc. organoleptic, for example, to confer or restore the organoleptic and visual properties of animal feed, or to favorably influence coat color and livery nutritional, to respond more effectively to the specific nutritional needs of animals zootechnical animals, to promote digestion or stabilize intestinal flora, to favorably influence the environment coccidiostats and histomonostats, to maintain the health of certain "sensitive" species

Focus on cereals: in recent years, numerous environmental associations have raised the issue of the high consumption of cereals by the animal feed industry. It ...

3.2 Production characteristics

French feed production from **** to **** shows an overall downward trend, with a total drop of around *. *% over this five-year period. After a marginal increase of *.*% in **** compared to the initial year ****, the sector experienced a slight regression in ****. Although there was a small rise in ****, the significant drop of *.*% in **** suggests a notable change in trend.

This downward trend can be attributed to the adaptation of agricultural practices to environmental standards, changes in consumer preferences and, above all, the rise in raw materials linked to agricultural production and livestock breeding.

Farm animal feed production France, ****-****, in thousands of tons FEFAC

An analysis of farm animal feed production in mainland France reveals significant regional disparities in terms of both the number of companies and the number of employees. Thedistribution logically reflects the concentration of the industry in traditionally agricultural regions, where the proximity of raw material suppliers and consumer markets can favor the development of the farm animal feed sector.

Brittany clearly stands out as the main industry hub, with the highestnumber of companies (***), underlining its leading role in the field.

Auvergne-Rhône-Alpes is also a key region, with ** companies and *** employees, testifying to a well-established industry. Pays de la Loire ...

3.3 Distribution

As far as distribution is concerned, there are three possible scenarios:

The feed producer may be the same farmer, who then has a factory close to the farm. Feed is produced and shipped to farms in large quantities, often by land, as the distance between producer and farm is generally small. A smaller proportion of feed is marketed through large retailers.

Productshipmentis one of the most important elements in gaining a competitive edge in the sector, which is why many companies have decided to internalize this function, by purchasing trucks and logistics centers, in order to guarantee a fast and punctual service.

From a legislative point of view, the emphasis is on transport safety from a hygiene point of view; Regulation (***) ***/**** governs this phase of the sector's value chain. Article *.* states: "Feed business operators shall ensure that all stages of production, processing and distribution under their control are carried out in accordance with Community law, national law compatible therewith and good practice. In particular, they shall ensure compliance with the relevant hygiene requirements laid down in this Regulation"

Summary of the chain of players in the farm animal feed market

4.1 Type of offer

European legislation defines and identifies different types of feed on the basis of multiple aspects linked in particular to the satisfaction of energy and nutritional requirements, certain desired functionalities and the specific nature of the ingredients used in the recipe or production process. and nutritional requirements, certain desired functionalities, and the specific nature of the ingredients used in the recipe or production process.The main types are listed below: Simple feeds : these are products ofplant or animal origin whose main purpose is to satisfy the nutritional needs of animals. They may be in their natural state, fresh or preserved, and include the by-products of industrial processing. They are organic or inorganic substances, with or without feed additives. They can be fed directly to animals, used in the preparation of compound feeds or as a carrier for additives in premixes. Compound feed : a mixture of at least two feed materials, whether or not containing feed additives, intended for the oral feeding of animals in the form of a complete or complementary feed. Complete feeds are compound feeds whose composition is sufficient for the animal's daily ration. Complementary feeds are compound feeds with a high content of certain substances but which, due to ...

4.2 Production prices

Farm feed production price index France, ****-****, price index base *** in **** Source : INSEE The year **** has seen notable inflation in production costs, influenced byescalating prices for keyraw materials such as wheat and corn. We see an average increase of **% in animal feed prices in ****, following an already notable rise of **.*% in ****. The **% decrease in the price index from **** to **** is, for the time being, a sign of the beginning of a return to normality. (***).

4.3 New trends

Among the trends that will characterize animal feed production in the future, the most interesting is linked to the use of insects.numerous studies have shown that their introduction into animal feed not only has no negative effects on animal growth and production performance, but could alsopromote animal welfare while reducing the risk of antibiotic resistance .

The main advantages of using insects for feed production are as follows:

Ease of breeding : insects are incredibly hardy and adaptable, and multiply rapidly, making them very easy to rear. What's more, they often feed on waste products, and could therefore be an important step in the implementation of a type of circular economy such as that promoted by the latest EU directives. Environmental impact: numerous studies have shown that insect farming has less impact in terms of greenhouse gas emissions and water and land use than other traditional production methods[***]

On the other hand, one possible drawback to take into account is the quantity of insects needed to produce the amount of food required by the market. However, this consideration is only partly of concern, as insects have a high concentration of nutrients, comparable to soy or fish meal, and it should not be ...

5.1 Regulations

The animal feed industry is governed by a series of regulations covering production site hygiene, marketing and product labeling. Market players must comply with these rules, which are checked by local authorities such as the Directions Départementales de la Protection des Populations (***), depending on the département.

Additives in animal feed: Regulation (***) no. ****/**** regulates the use of additives. Since ****, antibiotics used as growth promoters have been banned, demonstrating a commitment to food safety and public health. Managing undesirable substances and residues: Directive ****/**/EC and Regulation (***) no. ***/**** limit the presence of harmful substances and pesticides in animal feed, setting maximum thresholds to protect animal and human health. Placing feed on the market: Regulation (***) dresse un catalog des matières premières autorisées. Approval and registration of establishments: The "Hygiene Package" and Regulation (***) n°***/**** require the registration or approval of establishments and primary producers, with regular inspections to verify compliance. Import authorization: Establishments outside the EU wishing to export to the Union must comply with Regulation (***). Feedcontrol: Regulation (***) n°****/*** organizes official controls on feed, and monitoring plans are in place to detect any presence of prohibited substances. Source: ****

6.1 Segmentation

• CP Group
• 新希望集团 New Hope Group
• Cargill France
• Avril Groupe
• Terrena (Coopérative)
• Cooperl Arc Atlantique
• Eureden Group
• LDC Groupe
• Tromelin Nutrition
• Adisseo
• Olmix
• Neovia
• Serval
• Synthèse Elevage
• Duynie Feed Group (Royal Cosun Cooperativ)
• Metabolic Explorer
• Metex Nutrition Animale - Eurolysine
• Triskalia (Coopérative)
• NextAlim
• Prodia Alimentation Animale
• Vitalac Biotech
• Huddle Corp
• Bellavol (groupe Huttepain)
• Provimi France (Groupe Cargill)
• Denkavit France
• Nealia
• Nealia
• Oriade-Noviale
• Nor-Feed