Animal Feed: What’s at Stake & Tech’s Role

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.

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.

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.

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.