AH Industry: Future is Feed
The recently concluded VIV Asia in Bangkok from 11 – 13th of March 2015 re-confirmed the overall trend of feed supplements, additives and premixes to be the most important segment of animal health industry now.
Out of a total of 871 listed exhibitors – an overwhelming majority of the exhibitors were feed ingredients / additives, feed premixes, feed products and feed milling companies.
Similar was situation in all the conferences and technical seminars – almost all the events were dominated by feed additives companies and none from the big animal pharma companies.
Floor space, mind share and social events wise – feed additive companies including pet food, stole the show and rightfully so.
Feed constitutes anything from 60% in ruminants to around 70% of the costs in poultry, these companies have an important and relatively bigger market to operate in.
Future belongs to feed and feed additive companies as new ideas on efficiencies, newer sources of proteins for feed and increased investments in production facilities are anything to go by.
The big animal pharma companies having exited the MFA segment in the late nineties of the last millennium may soon have to re-calibrate their strategies for a strategic representation in this increasingly important segment.