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Cargill (us) And Adm (us) Are The Key Players In The Compound Feed Market

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By Author: MarketsandMarkets
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Compound feed is a mixture of various animal- and plant-based nutrients to provide a complete nutrition to the animals. They are complete feeds and provide all the required nutrients, which results in increased performance and high production of animal based products.

The compound feed market includes players such as Cargill Inc. (US), Archer Daniels Midland Company (US), New Hope Group (China), Charoen Pokphand Group (Thailand), Land O'Lakes, Inc. (US), Nutreco N.V. (Netherlands), Guangdong Haid Group Co., Ltd. (China), ForFarmers N.V. (Netherlands), Alltech Inc. (US), Feed One Co., Ltd. (Japan), J. D. HEISKELL & CO (US), and Kent Nutrition Group (US). The compound feed market is projected to reach USD 530.92 billion by 2022, at a CAGR of 4.4% from 2017. In terms of volume, the market is projected to reach 1,159.39 MMT by 2022.

The key market players adopted investments and strategic alliances-through mergers & acquisitions, expansions, new product launches, agreements & partnerships, collaborations & joint ventures, and investments & divestments-with other players to strengthen their businesses, ...
... to explore new and untapped markets, expanding in local areas of emerging markets, and developing a new customer base for long-term client relationships.

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Cargill (US)

Founded in 1865 and headquartered in Minnesota, US, Cargill is engaged in producing and marketing food, agricultural, industrial, and financial products & services. The company operates through four major segments—animal nutrition & protein, food ingredients and applications, origination & processing, and industrial & financial services. It provides compound feed through its animal nutrition & protein segment for different livestock such as ruminants and swine.

The company has a vast distribution network and an effective supply chain to deliver specific ingredients to various application industries, and it has 9 R&D facilities around the world.

The company operates through subsidiaries such as Cargill Australia Limited (Australia), Cargill Ghana Limited (Ghana), Cargill Specialty Canola Oils (US), The Mosaic Company (US), and Cargill Investments (China) Ltd (China). It has its presence in 70 countries based in North America, Asia Pacific, Europe, South America, North Africa/Middle East, and Sub-Saharan Africa. In September 2017, the company acquired the animal feed business of Southern States Cooperative, Inc. (US). This acquisition strengthened the distribution of the company in the Southeast, Mid-Atlantic, and Northeast regions of the US. It also helped the company to expand its presence in the region.

ADM (US)

ADM produces food & beverage ingredients, animal feed & feed ingredients, biofuels, and naturally derived alternatives to industrial chemicals. ADM is one of the largest agricultural processors in the world. Its main business segments are oilseed processing, corn processing, agricultural services, and WILD Flavors & Specialty Ingredients. The agricultural segment includes the processing of wheat, processing-distribution of formula feeds and animal feed, and procurement-processing-distribution of edible beans. ADM offers high-quality feed ingredients and premixes for cattle, poultry, goat, and equine. Animal nutrition, under the corn processing segment, provides compound feed.

The company has a wide network of transportation in about 265 locations, which helps it to tap into different markets worldwide. Its network spans more than 160 countries. Globally, the company operates through 253 ingredient manufacturing facilities along with 38 innovation centers and more than 470 crop procurement facilities, where cereal, grains, and oilseeds are processed into products used in food, beverage, nutraceutical, industrial, and animal feed markets.

The company operates its business through several subsidiaries such as Golden Peanut Company LLC (US), ADM Milling (US), ADM do Brazil Ltd a (Brazil), Wild Flavors, Inc. (US), and ADM Hamburg AG (Germany). In January 2017, it acquired Crosswind Industries (US). The acquisition helped the company to increase its presence in the pet food industry.

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Asia Pacific is one of the largest producers of livestock and animal-based products in the world, with China being a major producer. Growing production, as well as the consumption of livestock and livestock-based products in this region, has enabled livestock producers to utilize compound feed. The major drivers in this region are growth in the regional population, rise in disposable incomes, and rapid urbanization, especially in China, India, and Japan, and continuous modernization in the feed industry. Apart from this, the increasing feed production and huge potential for the aquaculture segment have boosted the scope of compound feed in the region.

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