Market position and industry characteristics

The global animal feed industry is a fragmented industry; most compound feed producers operate on a national or regional scale. The concentration in compound feed markets is therefore low. Critical activities within the compound feed industry are sourcing, formulating, milling and supply chain management. The competitive advantage of feed manufacturers compared to home-made animal feed produced by farmers lies in global sourcing in combination with knowledge related to the substitution of energy and protein sources, feed technology know-how and quality control.
In Europe, the major feed producers are active on a national scale, often as cooperatives. We see some trends of consolidation. In 2009, Nutreco acquired Cargill Animal Nutrition in Spain and Portugal, to strengthen Nutreco’s leading market position and to play an active role in the consolidation of the Iberian feed industry.
The Dutch compound feed market is fairly concentrated; the six largest producers out of approximately 120 players account for 65% of the total market. The Dutch and German compound feed market has strongly positioned cooperatives (+/-50%) of the market, while the Belgian industry is mainly in hands of private companies (80%). Hendrix has a leading position in the Benelux with a market share of 12%. Main competitors are Cehave (11%) and Agrifirm (7%) (planning to merge), De Heus (11%) and For Farmers (7%). Some of these companies also supply substantial volumes to the German market.
The Iberian compound feed industry is fragmented; ten out of approximately 900 players account for about 35% of the total volume. The Iberian market is a multi-species market with a great importance in pig and poultry. Nanta is market leader in Iberia with an overall market share of 13% and a nationwide presence, strengthened by the acquisition of Cargill Animal Nutrition. Main competitors are Vall Co. (4%), Guissona (4%), Nuter (3%) and Coren (3%).

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