South African feed market continues optimisation

The South African animal feed industry is comprised of three sectors: feed manufacturers, feedlots, and informal feed milling. Feed manufacturers are further divided into balanced feed and pre-mix manufacturers, and contribute to 60% of South Africa's total animal feed production of 13 MMT. The poultry industry is the largest consumer of feed, with five major companies accounting for 70% of production. Feedlots produce 75% of beef consumed in South Africa. Feed manufacturers source various raw materials to create scientifically formulated feed for different animals, and the poultry industry consumes 40% of total feed sales.

The South African animal feed industry can be divided into three important groups, namely the feed manufacturers (dedicated processors of feed for direct sales), the feedlot sector, and informal feed milling, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report. Feed manufacturers can further be divided into balanced feed manufacturers and pre-mix manufacturers. The local feed manufacturers are represented by the Animal Feed Manufacturing Association (AFMA). The feed manufacturers contribute to most feed sales in South Africa and represent about 60% of South Africa’s total animal feed production of approximately 13 million metric tons (MMT). Feed manufactures play a particularly important role in the poultry industry. The South African poultry industry is highly concentrated and dominated by vertically integrated companies with the five major players producing approximately 70% of local poultry. These vertically integrated ...