What’s at stake for the animal feed industry & how can technology help?
The world is hyper-focused on sustainability. Livestock and the production of animal feed are among the industries that need to have a better grip on how resources are utilized pre- and post-production. This is why many animal feed businesses are turning to technology to make sure their manufacturing processes, supply chains, distribution flows and sales channels are better accounted for.
The global animal feed market is set to rise from a valuation of USD 570.5 billion in 2023 to reach a value of USD 751.24 billion by 2031. The rise in value is closely tied to the growing consumption of dairy, meat, and poultry products the world over. Protein-based meals, hay plants, mixed plant feeds, husks, pasture grasses, sugar beet pulp etc. are some varieties of animal feed products. It’s also important to note that the rules that govern food safety for humans also apply to animal feed production.
Why does the quality of animal feed matter? Because what the livestock consumes determines the quality of the food we eat, and in turn this impacts our health. It’s important to note that the feed component is about 70-75% of the carbon footprint of any chicken on the supermarket shelves. In addition, supply chains & labor are in a constant state of flux – this means business leaders need to consider what’s trending in tech to get ahead.
This blog discusses some key challenges that the animal feed industry faces and the technology solutions that industry leaders are falling back on.
Sustainability to the fore
Among the sustainability concerns that particularly weigh the industry are the chemical components used to produce the feed and the wastage of feed in farms. Data analytics and advanced monitoring systems can help feed manufacturers optimize the use of chemicals. By analyzing data on feed composition, animal health, and environmental impact, manufacturers can precisely control the amount and type of chemicals used, reducing the risk of overuse and contamination. Predictive analytics can also forecast the optimal feed composition for different animal species and growth stages, ensuring that only necessary additives are used.
A key example is phosphorus, where strict adherence to dosage limits is crucial to prevent leg problems and welfare issues in animals. However, this often leads to resource wastage. Due to the rising cost of nutrients, feed producers are now re-evaluating their safety margins and exploring ways to reduce the use of inorganic phosphate in phosphorus supplementation. This has prompted the industry to formulate diets using alternative sources of expensive ingredients while analyzing the relevant data better.
To address wastage during feeding, IoT devices and sensors are employed on farms to monitor feeding patterns and feed consumption in real-time. These technologies can provide farmers with detailed insights into the feeding behavior of their animals, allowing them to adjust feeding schedules and quantities to minimize waste. Automated feeding systems, integrated with data analytics, can ensure precise and timely delivery of feed, further reducing wastage as well.
Maintaining consistency across feed mills
Another area of concern for the animal feed industry is maintaining consistency across feed mills. Inconsistencies can lead to inaccurate representation of stocks, demand, and the financial health of the entity. ERP based Cloud technology addresses these challenges by providing real-time visibility and centralizing data across multiple locations, ensuring that all plants operate based on the same information and standards.
Take for example a market leader in animal nutrition and feed manufacturing in Asia. The manufacturer partnered with Fortude to move their operations to Infor M3 Food & Beverage. The company employs 2,400 people across 22 production facilities in 7 countries, with an annual milling capacity of nearly three million tonnes. Their diverse product range includes livestock and aqua feed, premixes, concentrates, and compound feed. Despite their extensive operations, they faced significant challenges in maintaining consistency and efficiency across their multiple sites.
This multi-site, multi-country solution provided the client with a unified platform to manage their complex operations, resulting in enhanced consistency, improved inventory accuracy, and better financial oversight across all their facilities.
Enhancing transparency and partnering with accountable suppliers
In the animal feed industry, a transparent supply chain is essential for ensuring product quality, meeting regulatory standards, and maintaining consumer trust. Among the central issues in the industry is the reliance on suppliers based on inter-personal & long-standing relationships – but these may not necessarily be the most sustainable and accountable suppliers. By fostering partnerships with responsible suppliers, businesses can trace the origins of their ingredients, monitor production processes, and ensure that ethical and sustainable practices are upheld throughout the supply chain. This transparency is not only crucial for regulatory compliance but also for building a reputation as a responsible and trustworthy company.
Technology plays a pivotal role in enhancing supply chain transparency. Utilizing advanced data analytics, blockchain, and IoT (Internet of Things) solutions, manufacturers can gain real-time insights into their supply chain operations. These technologies enable the tracking of raw materials from their source to the final product, ensuring that every step of the production process meets stringent quality and sustainability standards. For instance, blockchain technology provides an immutable record of transactions and movements, offering proof of the origin and handling of each ingredient.
Addressing labor challenges with process automation
The animal feed industry faces significant labor challenges, including workforce shortages, high turnover rates, and the need for specialized skills. These issues can lead to production delays, increased operational costs, and inconsistent product quality. To maintain efficiency and competitiveness, it’s crucial for businesses in this sector to find innovative solutions to manage their labor issues effectively.
Process automation offers a viable solution to many of these challenges. By automating routine and repetitive tasks, companies can reduce their reliance on manual labor, allowing their workforce to focus on more complex and value-added activities. For example, automated systems can handle tasks such as ingredient mixing, quality control, and packaging with greater precision and speed than human workers. This not only improves productivity but also ensures consistency and accuracy in the production process.
Recently, Fortude also supported a global leader in sustainable aquaculture feed migrate its system to the Cloud. The multi-site implementation aligns the company’s efforts across countries and factories while ensuring their digital transformation efforts are streamlined.
If you are keen on digitally transforming your animal feed business to make sure its operations are sustainable and future-ready – speak to our experts.
FAQs
Sustainability is crucial because the production of animal feed significantly impacts resource utilization, environmental health, and food safety. As the feed component accounts for a significant percentage of the carbon footprint in livestock, optimizing feed production through technology ensures reduced waste, controlled chemical usage, and improved overall sustainability in the supply chain.
Technology like IoT devices, data analytics, and automated feeding systems can optimize feed composition, monitor consumption patterns, and forecast needs, reducing wastage. By precisely controlling additives and feeding schedules, manufacturers can enhance feed quality and minimize environmental impact, ensuring more efficient and sustainable operations.
ERP-based cloud technology centralizes data across multiple feed mills, providing real-time visibility and consistency. It ensures accurate representation of stocks, demand, and financial health, allowing manufacturers to maintain uniform standards and operations across different locations, enhancing efficiency and productivity.
Technology such as blockchain and data analytics enables real-time tracking of raw materials from source to final product. This ensures compliance with quality and sustainability standards while fostering partnerships with accountable suppliers, ultimately building trust and transparency throughout the supply chain.
Subscribe to our blog to know all the things we do
