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The global dairy cattle feed market is a substantial sector of the agricultural industry and is expected to witness significant growth in the future. Globally, there’s a growing demand for milk, cheese, yogurt, and other dairy products due to changes in consumption behavior and growing demand for protein-rich food, rising disposable incomes, and urbanization, particularly in developing countries. According to the Food and Agricultural Organization (FAO), in 2022, world milk production accounted for 930 million tons, up by 0.6% from the previous year. To meet this rising demand, dairy farms must produce more milk, necessitating feeding their cattle with nutritious and high-quality feed. This, in turn, fuels the demand for dairy cattle feed in the market. Manufacturers are responding to this growing market requirement with the launch of new products. For instance, in September 2023, Cargill Inc., a company providing food, ingredients, agricultural solutions, and industrial products, launched a new dairy feed, ‘Milkgen 10000, in India. The new product was launched for the dairy industry in the state of Maharashtra to enhance milk quality, overall animal well-being, and milk productivity.
Nowadays, there is a rising focus on animal health and welfare in the dairy industry. Rising food contamination and increasing animal health issues are major factors affecting milk yield. This leads to a demand for cattle feed that promotes good health, prevents diseases, and optimizes overall cattle well-being. Feed manufacturers are implementing several strategies in order to spread awareness among farmers regarding animal health and well-being. For instance, in June 2023, Godrej Agrovet Ltd. (GAVL), one of the leading cattle feed industry players, launched a new campaign. The new campaign aims to spread awareness among the farmers about good quality feed, which is important for the better health of the cattle and can lead to more milk output.
The report covers the following key insights:
Cattle Type | By Ingredients | By Geography |
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By cattle type, the market is divided into dairy cattle, beef cattle, and others. Dairy cattle accounts for the highest market share owing to the increasing demand for dairy products among consumers and industries. Hence, farmers spend a significant proportion of their funds on purchasing high-quality feed to yield better milk from such cows.
In beef-producing countries such as the U.S., Europe, and Asia, the demand for specialized feed to improve cattle health and weight is rising. As demand for animal protein in developing countries, specifically in Asia, is increasing, the demand for beef is also growing to suit market needs. Hence, the demand for high-quality feed in beef cattle is also expected to increase in the future.
By ingredients, the market is divided into forages, concentrates, and minerals and vitamins. The forage feed segment is expected to hold a significant share of the global market. These feed products are a natural source of fiber, which is crucial for a healthy ruminant digestive system. Cows have a four-chambered stomach designed to break down tough roughage. Grasses and legumes help them feel full, promote gut health, and aid nutrient absorption. Moreover, they are less expensive than others, making them an attractive option for dairy farmers, especially in regions with readily available forages.
The concentrated feed segment is expected to grow significantly over the forecast period owing to easy storage, transportation, and handling. This makes it a convenient option for dairy farmers, especially those managing large-scale operations.
The minerals segment is expected to grow considerably over the forecast period. Mineral deficiencies can significantly impact the dairy cow's health, fertility, and milk production. Mineral feed offers essential minerals such as calcium, phosphorus, magnesium, and trace elements that are crucial for strong bones, proper muscle function, and optimal milk quality.
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The global market is geographically segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. Europe is expected to hold a major share of the global dairy cattle feed market. Europe has a long-standing tradition of dairy production, with well-established dairy farms and a strong focus on quality milk products. According to the European Commission, the total milk production in Europe is estimated to be around 155 million tons per year. This translates to a high demand for high-quality dairy cattle feed. European feed manufacturers are at the forefront of technological advancements in animal nutrition. They develop and produce specialized feed formulations that cater to the specific needs of dairy cattle breeds and optimize milk production.
Asia Pacific is expected to grow significantly over the forecast period. The Asia Pacific region, particularly countries, such as China and India, has a large and rapidly increasing population, leading to a significant demand for dairy products such as milk, cheese, and others. Government organizations are also actively supporting the development of the dairy industry, involving subsidies for dairy farmers, investments in infrastructure, and programs to improve dairy cow breeds. Such initiatives create a favorable environment for the growth in the dairy cattle feed market.
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