The Institute for Feed Education & Research (IFEEDER) has carried out a study together with the Decision Innovation Solutions (DIS) firm, to know Covid-19\u2019s impact on the growth of feed industry over the next five years.<\/p>\n
In 2019, pets and domestic livestock in the United States consumed approximately 284 million tons of feed (Mt). The three largest consumers were: Beef cattle (64.5 Mt), hogs (61.8 Mt) and broilers (60.8 Mt).<\/p>\n
Based on the U.S. Agriculture\u2019s Department November 2020 data, DIS established a baseline value for six major categories of livestock and poultry (broilers, layers, turkeys, hogs, dairy cows, and beef cattle) and subsequently provided three possible economic scenarios for the feed sector (post coronavirus).<\/p>\n
At the beginning of 2020, DIS estimated the baseline consumption at 252.6 mt of feed (excluding forages and roughages) with an estimated value of 66.7 billion dollars, before the pandemic. During Coronavirus, the consumption fell 1.7%, reaching an estimate of 248.4 Mt (4.2 mt less than in 2019) with a total value of 47.5 billion dollars post-Covid-19.<\/p>\n
In the worst-case scenario, where the industry encounters major manufacturing and trade problems, the DIS estimated a 4.5% decrease to 237.2 Mt of feed with a value of 45.4 billion dollars in 2025.<\/p>\n
In the second scenario (the expected one), where the industry continues running smoothly, DIS estimated feed consumption at 254.6 Mt (2.5% increase) with an approximate value of 48.8 billion dollars in 2025.<\/p>\n
In the best-case scenario, where all sectors recover quickly and travel and trade conditions improve, DIS estimated that feed consumption would reach 263.1 Mt (5.9% more) with a value of 50.4 billion dollars by 2025.<\/p>\n