Saturday, March 21, 2015

Some Animal Feed Additive Statistics

An extensive search of the Internet found that in the 2012 to 2013 time period, approximately $14 to $15 billion is the likely amount globally spent on animal feed additives.  The following table identifies most, if not all, of the major additive types, with estimated percentages (estimates found during the Internet search) spent on those types in the 2012 to 2013 time frame:
animal feed type
sales percentage  for the type
total recent sales  usd  (millions)
amino acids
32%
4,900
antibiotics
27%
4,200
other
16%
2,500
vitamins
9%
1,400
acidifiers
8%
1,200
enzymes
5%
730
minerals
3%
400
antioxidants
1%
170
100%
15,500


Compounded average growth rates of amounts spent per year on the animal feed additives are expected to be about 2% to 4% through 2019/2020.  Increasing uses of feed additives aid needed increases in the industrial production of meat.    Such increased production is the only way to meet the growing global demand for meat.  Feed additives also help to decrease environmental impacts of animal wastes and increase process safety and meat quality.  The additives can enhance weigh gain rates, prevent/control infectious diseases, and help to ensure healthy animals.

Chemcial companies (and chemical-liked companies) provide the major proportion of the animal feed additives.  Some of the publicly-traded companies that do so are identified in the following table, along with some financial data:

revenues (usd)   (millions)
gross   profit  (millions)
gpm%
operating  income (usd)  (millions)
operating income %
products
Balchem
238.5


34.1
14%
vitamins
CJ Corporation
246.0


11.4
5%
amino acids
DSM
2,471.0




vitamins  carotenoids  enzymes  minerals
Elanco
2,346.6
564.2
24%


antibiotics  growth enhancers
Evonik
2,570.0




amino acids
Novozymes
281.4




enzymes
Nutreco
2,300.0


161.0
7%
amino acids  vitamins  minerals  emulsifiers  anti-oxidants  digestive enhansers
Phibro
653.2
178.9
27%
56.7
9%
antibacterials  nutritional products  minerals
Zoetis
479.0




medicated feed additives


average
26%
average
9%




The financial data presented in the above table are found in annual reports published by the publicly-traded companies.  This data is available because the companies have only an animal feed additive business or have a segment doing substantial animal feed business and therefore this requires providing data on the business segment in the reports.  Absent amounts in the table indicate that no data is provided in the reports.  For example, in some cases a segment may include businesses other than animal feed additives, and in such cases, although revenues are provided for each business, only the total operating income for the segment is provided.

The average gross profit margin percentages (gpm%) and operating income percentages, shown in the table, seem to me to be fairly good results, but not outstanding, for a business. 

Other publicly-traded companies that have animal feed businesses but are not segment businesses and do not report financial results on the animal feed business include: Ajinomto; BASF; Biovet; Chr. Hansen; Church & Dwight; Darling Ingredients; Dow; DuPont; Mosaic; and Novus (part of Mitsui).  Private companies that have substantial animal feed businesses include: Addcon; Alltech; Adisseo; Chareon Pokphand; China Bluestar (part of ChemChina); Kemin; and Lallemand.


Even though a lot of companies are in the animal feed additive business, I found that available financial results for this business are difficult to find.

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