The poultry industry plays a significant role in the animal feed sector, representing a large portion of feed sales in South Africa. The industry can be divided into three main groups: feed manufacturers, feedlot sector, and informal feed milling, as outlined in a recent report by the US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN).
Feed manufacturers in South Africa are crucial players in the industry, with two main categories: balanced feed manufacturers and pre-mix manufacturers. These manufacturers are represented by the Animal Feed Manufacturing Association (AFMA) and contribute to approximately 60% of the total animal feed production in South Africa, which amounts to around 13 million metric tons (MMT) annually.
In the poultry industry, feed manufacturers play a vital role, especially in supporting vertically integrated companies that dominate the market. These companies produce a large portion of their feed for internal consumption and sell the excess to non-integrated poultry producers. This integrated business model encompasses the entire production chain from breeding to processing, enabling economies of scale and efficiency in operations.
The feedlot sector in South Africa focuses on growing and fattening livestock for slaughter, particularly beef products. The South Africa Feedlot Association (SA Feedlot) represents around 100 locally operated feedlots, which collectively produce approximately 75% of all beef products consumed in the country. Informal feed milling is also prevalent, mainly for on-farm use.
Raw materials used by animal feed manufacturers include primary commodities like corn, oilseeds, and grains, as well as by-products from various processing industries. These materials are scientifically formulated to meet the nutritional needs of specific animals at different growth stages. The market for manufactured feed includes poultry, dairy, beef, sheep, and pigs, with poultry feed accounting for a significant portion of total feed sales.
The poultry industry, in particular, plays a crucial role in the feed sector, with broiler and layer feed making up a substantial portion of total feed sales in South Africa. These feed products are essential for the growth and development of poultry, supporting the production of high-quality meat and eggs for consumers.
Overall, the animal feed sector in South Africa is diverse and dynamic, with feed manufacturers, feedlot operators, and informal feed milling all contributing to the production and distribution of feed products for various livestock. The poultry industry stands out as a key player in the sector, driving innovation and growth in feed production to meet the demands of a growing population and evolving market trends.