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Manufacture Prepared Animal Feeds Pet Food South Africa

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2021

Kate Shand | South Africa | 27 February 2021

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2018

Marc Gavin Bosman | South Africa | 06 July 2018

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2016

Marc Bosman | South Africa | 24 November 2016

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2014

Brenda Young | South Africa | 18 February 2014

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Report Coverage

This report focuses on the manufacture of prepared animal feeds and pet food and includes information on the state and size of these industries and the factors that influence them. There are profiles of 21 companies including major animal feed manufacturers such as PhilAfrica Foods, Astral Operations, RCL Foods, Nutri Feeds and Quantum Foods, and pet food manufacturers including Royal Canin, Montego Pet Nutrition and Martin and Martin.

Introduction

South African is the biggest producer of animal feed on the continent and the animal feed industry is the biggest consumer of grain products in South Africa. In 2019, agriculture contributed 1.88% to GDP. The Animal Feed Manufacturers Association (AFMA) reports a 0.3% per year increase in feed volumes in South Africa, and in the 2019/20 production year, total animal feed sales of its members amounted to 6.72 million tons (Mt) – 57.5% of South Africa’s feed production of 12Mt. The value of imported animal feed products and related raw materials remained steady at R5.5bn in 2019 compared to 2018. Exports declined by 12% to R4.3bn in 2019 from R4.9bn in 2018. South Africa’s pet food production was 315,000 tons valued at R5.9bn in 2019. The coronavirus pandemic, which followed fresh outbreaks of African swine fever in China, affected the global animal feed industry, and in South Africa new outbreaks of foot and mouth disease (FMD) in early 2020 affected the beef export industry, resulting in reduced demand for animal feed.

Strengths

• The formal industry has strict quality control systems.
• There will be demand for animal feed as long as people eat animal protein.
• Well-established agricultural financial markets.

Weaknesses

• Delays in product registration.
• Increasing dependence on imported inputs.
• Large informal manufacturing sector which does not adhere to formal standards and practices.
• Low investment in research and development.
• Poor agricultural support, policy uncertainty and a regulatory environment that applies only to the formal sector.

Opportunities

• As global populations continue to grow so does the demand for animal feed.
• Increasing use of by-products and alternate feed sources could reduce input costs.
• Lessons learnt during the pandemic could lead to greater innovation.
• Manufacture of feed using technological advances will provide more precise and effective feed.
• Opportunities for production of feed ingredients for niche products.
• Rise in pet ownership in Africa.

Threats

• Climate change and increased natural disasters and increased awareness of impact of meat production on the environment and changes in food choices.
• Continued raw material volatility and price increases in input costs.
• Economic crisis from the pandemic poses a threat to food production with a slowdown in the food supply chain, and reduced consumer disposable income.
• Impact of African swine fever and foot and mouth disease.
• Increasing low-cost poultry imports.
• Pandemic will lead to a drive for more efficient and cost-effective animal feed production.
• Regulatory requirements and processing delays.
• Unreliable electricity and water supply.

Outlook

The animal feed industry will be focused on sustainability with research and development focused on feed production using fewer resources in order to reduce greenhouse gas, carbon footprint and water consumption impacts. Chicken meat production is expected to increase but the industry remains affected by cheap, imported poultry meat. The benefits of consuming seafood have positioned aquaculture as a growth opportunity. Despite a dire economic outlook and the pandemic, there are indications that animal feed consumption in the animal feed industry in South Africa will increase by an average of 2.54% annually to 14.63Mt by 2022. Animal feed industry stakeholders believe the lessons learnt during the pandemic can transform into a more efficient industry and supply chains. Smaller producers, however, indicated they are surviving month by month.

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The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2021

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2018-07-06

R 1 900.00(ZAR) estimated $99.43 (USD)*

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The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2016-11-24

R 1 900.00(ZAR) estimated $99.43 (USD)*

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The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2014-02-18

R 1 900.00(ZAR) estimated $99.43 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 13
4.1.2. Regulations 14
4.1.3. Enterprise Development and Socio-Economic Development 16
4.2. Continental 16
4.3. International 18
5. INFLUENCING FACTORS 22
5.1. Economic Environment 22
5.2. Input Costs 22
5.3. Technology, Research and Development (R&D) and Innovation 23
5.4. Labour 24
5.5. Environmental Concerns 27
5.6. Coronavirus 28
6. COMPETITION 30
6.1. Barriers to Entry 31
7. SWOT ANALYSIS 32
8. OUTLOOK 33
9. INDUSTRY ASSOCIATIONS 33
10. REFERENCES 33
10.1. Publications 33
10.2. Websites 34
APPENDIX 1 36
Summary of Notable Players 36
COMPANY PROFILES 42
AFRESH BRANDS CAPE (PTY) LTD 42
AFRESH BRANDS KZN (PTY) LTD 44
ALZU ONDERNEMINGS (PTY) LTD 46
ASTRAL OPERATIONS LTD 49
CHAMP'S CHOICE FEEDS (PTY) LTD 52
CHEMFIT FINE CHEMICALS (PTY) LTD 54
COLGATE-PALMOLIVE (PTY) LTD 56
CROWN CHICKENS (PTY) LTD 58
MARLTONS PET CARE (PTY) LTD 60
MARS CONSUMER PRODUCTS AFRICA (PTY) LTD 62
MARTIN AND MARTIN (PTY) LTD 64
MONTEGO PET NUTRITION (PTY) LTD 66
NUTRI FEEDS (PTY) LTD 68
OCEANA GROUP LTD 71
PHILAFRICA FOODS (PTY) LTD 76
PROMEAL (PTY) LTD 80
QUANTUM FOODS (PTY) LTD 82
RCL FOODS LTD 85
ROYAL CANIN SOUTH AFRICA (PTY) LTD 90
SMITH ANIMAL FEEDS CC 92
VOERMOL FEEDS (PTY) LTD 94

Report Coverage

The report on the animal feed and pet food sector discusses current conditions, recent developments and factors that impact feed production and sales. Twenty-one industry players are profiled, including the four local feed producers that feature in the Alltech 2017 top 100 global feed producers’ list: Astral Meadow Feeds, Quantum Nova Feeds, RCL Foods and Sovereign Food Investments. Also profiled is Promeal (Pty) Ltd which asserts it is the country’s leading wet dog food manufacturer with a market share of more than 55%.

Introduction

This report focuses on the increasingly competitive animal feed industry, which may well contract in 2018 for the second year running following 20 years of continuous growth. The Alltech Global Feed Survey 2018 reported total 2017 South African feed production at 11.136 million metric tons (MMT) down from 11.74MMT in 2016 with the country still ranked the 22nd-largest global animal feed producer. The estimated value of national feed production for 2017 remained at 2015 levels, at R50bn per annum, as did the pet food industry, at R5bn. The promulgation of the new Animal Feeds and Pet Food Bill expected in 2018 will introduce risk-based principles for animal feed production, fundamentally changing the way the industry operates to ensure sustainably-produced safe feed and food for livestock, people and pets.

Strengths

• The formal industry has strict quality control systems.
• There will be demand for animal feed as long as people eat animal protein.
• Well-established agricultural financial markets.

Weaknesses

• Delays in product registration.
• Increasing dependence on imported inputs.
• Large informal manufacturing sector which does not adhere to formal standards and practices.
• Low R & D investment.
• Poor agricultural support, policy uncertainty and a below par regulatory environment.

Opportunities

• Animal feed demand forecast to rise by 80% between 2006 and 2050.
• Increasing use of by-products and alternate feed sources could reduce input costs.
• Manufacture of feed using technological advances such as nutrigenomics and molecular probes will give a new level of precision to effective feed manufacturing and livestock production.
• Rising population and GDP locally and in Africa.

Threats

• Climate Change.
• Continued raw material volatility and price increases in input costs.
• Electricity and water supply security.
• Impact of Avian Flu and outbreaks of other diseases on operations.
• Increasing poultry imports.
• Regulatory requirements and processing delays for the formal and informal sectors.
• Rising unemployment and reduced consumer disposable income reducing spending on meat products and pet food.

Outlook

The 2017/18 market perception of AFMA feed sales indicates sideways movement showing little to no growth over the following year and AFMA believes the industry will remain economically challenged into 2020 despite lower raw material costs as the livestock industries rebuild. AFMA chairman Louwtjie Dunn estimates 2018 annual feed volume at 6.5MMT rising to 6.762MMT by 2020 and concludes that a difficult period lies ahead for the industry. Stakeholders predict that in the short-term feed prices will remain under pressure, competition will continue to intensify and a further reduction in industry players is expected.

Read More..
The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2021-02-27

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2016-11-24

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2014-02-18

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 12
4.1. Local 12
4.1.1. Corporate Actions 16
4.1.2. Regulations 16
4.1.3. Enterprise Development (ED) and Social Economic Development (SED) 18
4.2. Continental 19
4.3. International 20
5. INFLUENCING FACTORS 21
5.1. Economic Environment 21
5.2. Government Initiatives 22
5.3. Operating Costs 23
5.4. Labour 23
5.5. Feed Safety, Health and Quality 25
5.6. Technology, Research and Development (R&D) and Innovation 26
5.7. Cyclicality 28
5.8. Environmental Concerns 28
6. COMPETITION 29
6.1. Barriers to Entry 30
7. SWOT ANALYSIS 31
8. OUTLOOK 31
9. INDUSTRY ASSOCIATIONS 32
10. REFERENCES 32
10.1. Publications 32
10.2. Websites 33
COMPANY PROFILES 35
AFGRI OPERATIONS (PTY) LTD 35
AFRESH BRANDS CAPE (PTY) LTD 40
AFRESH BRANDS KZN (PTY) LTD 42
ALZU ONDERNEMINGS (PTY) LTD 44
ASTRAL OPERATIONS LTD 47
CHAMP'S CHOICE FEEDS CC 50
CHEMFIT FINE CHEMICALS (PTY) LTD 52
COLGATE-PALMOLIVE (PTY) LTD 54
CROWN CHICKENS (PTY) LTD 57
MARLTONS PETS AND PRODUCTS (PTY) LTD 59
MARS CONSUMER PRODUCTS AFRICA (PTY) LTD 61
MARTIN AND MARTIN (PTY) LTD 63
MONTEGO PET NUTRITION (PTY) LTD 65
NUTRI FEEDS (PTY) LTD 67
OCEANA GROUP LTD 70
PROMEAL (PTY) LTD 75
QUANTUM FOODS (PTY) LTD 77
RCL FOODS LTD 80
ROYAL CANIN SOUTH AFRICA (PTY) LTD 85
SMITH ANIMAL FEEDS CC 87
VOERMOL FEEDS (PTY) LTD 89

Report Coverage

The report on the animal feed and pet food sector discusses current conditions, corporate actions and factors influencing the success of the sector. Twenty industry players are profiled, including major companies Astral Operations Ltd with its Meadow Feeds Division, Quantum Foods and AFGRI Animal Feeds. Also profiled are SA Premix, which manufactures premixes for animal feeds, and wet and dry pet food manufacturer, Martin and Martin (Pty) Ltd.

Introduction

This report focuses on the highly competitive animal feed industry. The Animal Feed Manufacturers’ Association (AFMA) reports total national feed production during 2015/2016 was estimated at 11.66 million metric tons (MMT), with AFMA members contributing 61%. The Alltech 2016 Global Feed Survey ranked South Africa the 22nd largest animal feed producer in 2015 with national feed production gross turnover value estimated at R50bn per annum. Feed industry players continue to report good results despite the ongoing challenges faced over the last two years as a result of reduced rainfall in 2014, the drought of 2015/2016, the ensuing shortages of raw materials and significant raw material cost increases.

Strengths

• The formal industry has strict quality control systems.
• There will be demand for animal feed as long as people eat animal protein.

Weaknesses

• Large informal manufacturing sector which does not adhere to formal standards and practices.
• Product registration delays.
• Some raw materials have to be imported.

Opportunities

• Animal feed demand forecast to rise by 80% between 2006 and 2050.
• Increasing use of by-products and alternate feed sources could reduce input costs.
• Manufacture of feed using technological advances such as nutrigenomics and molecular probes will give a new level of precision to effective feed manufacturing and livestock production.
• Rising population and GDP locally and in Africa.

Threats

• Continued increases in raw material prices.
• Fewer local poultry industry players.
• Increasing move to grass-fed beef production.
• Increasing poultry imports from the EU, USA and Brazil.
• Regulatory requirements and processing delays for the informal sector.
• Rising unemployment and food inflation reducing growth in spending on pet care products.
• Smaller living space per household reducing pet ownership growth.

Outlook

By 2030 the world population is expected to have increased by more than another 1 billion people, which will require an additional 43% more food to be delivered with limited available additional arable land and shrinking farming area per capita. Locally, feed companies and on-farm mixers will require new, more resilient climate adaptable cultivars capable of generating higher yields to produce the feed required to meet growing food production requirements. Maize stocks are limited and expensive, maize imports are continuing and this situation will continue at least until the next harvest in the summer rainfall area in mid-2017 when an above-average maize crop is expected. Although local feed manufacturers have reported solid financial results despite the difficult operating environment, the approval process for genetically modified organisms and feed registrations and renewals are regulatory matters that are expected to continue impacting the domestic animal feed industry.

Read More..
The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2021-02-27

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2018-07-06

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2014-02-18

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 11
4.1. Local 11
4.1.1. Corporate Actions 14
4.1.2. Regulations 16
4.1.3. Enterprise Development and Social Economic Development 18
4.2. Continental 19
4.3. International 20
5. INFLUENCING FACTORS 23
5.1. Economic Environment 23
5.2. Poultry Industry Performance 23
5.3. Rising Operating Costs 24
5.4. Population Growth and Rising Incomes 24
5.5. Labour 25
5.6. Feed Safety, Health and Quality 26
5.7. Government Initiatives 27
5.8. Technology, Research and Development (R&D) and Innovation 27
5.9. GMO Approval Process 28
5.10. Cyclicality 29
5.11. Environmental Concerns 29
6. COMPETITION 30
6.1. Barriers to Entry 31
7. SWOT ANALYSIS 32
8. OUTLOOK 32
9. INDUSTRY ASSOCIATIONS 33
10. REFERENCES 33
10.1. Publications 33
10.2. Websites 34
COMPANY PROFILES 36
AFGRI OPERATIONS (PTY) LTD 36
AFRESH BRANDS CAPE (PTY) LTD 40
ALZU ONDERNEMINGS (PTY) LTD 42
ASTRAL OPERATIONS LTD 45
CHAMP'S CHOICE FEEDS CC 48
CHEMFIT FINE CHEMICALS (PTY) LTD 49
COLGATE-PALMOLIVE (PTY) LTD 51
CROWN CHICKENS (PTY) LTD 54
MARS CONSUMER PRODUCTS AFRICA (PTY) LTD 57
MARTIN AND MARTIN (PTY) LTD 60
MONTEGO PET NUTRITION (PTY) LTD 62
NUTRI FEEDS (PTY) LTD 64
OCEANA GROUP LTD 66
PROMEAL (PTY) LTD 70
QUANTUM FOODS (PTY) LTD 72
RCL FOODS LTD 75
ROYAL CANIN SOUTH AFRICA (PTY) LTD 80
SMITH ANIMAL FEEDS CC 82
VOERMOL FEEDS (PTY) LTD 83

Introduction

This report focuses on the highly competitive animal feed industry, where 40% of national feed production is manufactured by companies in the informal sector who are not members of the Animal Feed Manufacturers’ Association (AFMA). National feed production is approximately 11.146 million tons with a gross value of an estimated R48bn. The pet food sub-sector has an estimated value of R5bn per annum at retail level.

Strengths

• The formal industry has strict quality control systems.
• There will be demand for animal feed as long as people eat animal protein.

Weaknesses

• Large informal manufacturing sector which does not adhere to formal standards and practices.
• Product registration delays.
• Some raw materials have to be imported.

Opportunities

• Increasing population and GDP locally and in Africa.
• Increasing use of by-products and alternate feed sources could reduce input costs.
• Manufacture of feed using technological advances such as nutrigenomics and molecular probes will give a new level of precision to effective feed manufacturing and livestock production.
• Pet humanisation is driving the growing pet food market.

Threats

• Continued increases in raw material prices.
• Increasing poultry imports from Europe and the failure of the local poultry industry.

Outlook

As far as raw materials are concerned, maize stocks are expected to be “tight” in the first half of 2014 and imports of yellow maize will be necessary. However, imports of soya oilcake supply should decrease as local manufacture increases. According to De Wet Boshoff, Executive Director of AFMA, the approval of genetically modified organisms, and feed registrations and renewals are two major regulatory matters that will continue to impact on the feed industry.

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2021-02-27

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2018-07-06

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

The Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2016-11-24

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 1
3. SIZE OF THE INDUSTRY 2
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 10
4.1.2. Regulations 10
4.1.3. Black Economic Empowerment 12
4.2. Continental 13
4.3. International 14
5. INFLUENCING FACTORS 15
5.1. Economic Environment and Rising Input Costs 15
5.2. Success of the Local Poultry Industry 16
5.3. Feed Quality and Contaminant Risk 16
5.4. Growing Population and Consumer Demand 16
5.5. Labour Resources 17
5.6. Technology and Information Technology 17
5.7. Environmental Concerns 17
6. COMPETITION 18
6.1. Barriers to Entry 19
6.2. Research and Development (R&D) 19
6.3. Innovation and Substitute Products 19
7. SWOT ANALYSIS 20
8. OUTLOOK 20
9. INDUSTRY ASSOCIATIONS 20
10. REFERENCES 21
10.1. Publications 21
10.2. Websites 21
APPENDIX 1 23
Raw Material Usage (April 2008 to March 2013) – AFMA Members (Tonnes) 23
ORGANOGRAM 25
COMPANY PROFILES 27
AFGRI OPERATIONS LTD 27
AFRESH VENTION 1 (PTY) LTD 30
ASTRAL OPERATIONS LTD 32
CHAMP'S CHOICE FEEDS CC 34
COLGATE-PALMOLIVE (PTY) LTD 35
FOODCORP (PTY) LTD 37
KANHYM ESTATES (PTY) LTD 39
MARS CONSUMER PRODUCTS AFRICA (PTY) LTD 41
NESTLE PURINA PETCARE (DIVISION OF NESTLE (SA) (PTY) LTD) 43
NUTRI FEEDS (PTY) LTD 44
OCEANA GROUP LTD 46
PROMEAL (PTY) LTD 48
QUANTUM FOODS (PTY) LTD 49
RAINBOW FARMS (PTY) LTD 51
ROYAL CANIN SOUTH AFRICA (PTY) LTD 53
SMITH ANIMAL FEEDS CC 55
VOERMOL FEEDS (PTY) LTD 56