2022 Spring Farm Outlook

Page 24 Spring 2022 Logan County Farm Outlook LINCOLN DAILY NEWS March / April 2022 Spring 2022 Logan County Farm Outlook LINCOLN DAILY NEWS March / April 2022 Page 25 COVID-19, the consumption rate fell roughly 1.7% to an estimated 248.4 million tons, a difference of 4.2 million tons less feed consumed worth $1.6 billion, leaving the industry with a total post-COVID-19 value of $47.5 billion.” Furthermore, these same reports suggest that in a worst-case scenario, “where the industry encounters further disruptions in processing and slaughter numbers or potential trade issues, DIS estimated 2025 animal food consumption could further decrease 4.5% to 237.2 million tons at a value of $45.4 billion.” However, this is not the scenario experts are envisioning for the food market. The expected-case scenario, where the industry continues on with less disruptions, suggests that by 2025 animal food consumption could increase by “2.5% to 254.6 million tons worth roughly $48.8 billion.” The best-case scenario, where trade conditions across the world improve, DIS estimated that by 2025, “feed consumption could increase 5.9.% to 263.1 million tons, valued at $50.4 billion.” This scenario is unlikely, but consistently viewed by experts as being more likely than the worst-case scenario. These analyses also point to health concerns as a likely reason for animal feed market to grow. Health is on everyone’s mind, and that includes farmers working with livestock. Experts suggest there is a “rising focus on animal health and growing momentum of proponents of natural growth will also drive animal feed market growth…Increasing consumer awareness of the benefits associated with the use of feed additives to reduce disease decline has supported the need of the animal feed market.” This means that it’s not enough to track the feed market; we also have to consider the mineral market. Minerals additives included in the animal feed for optimal growth, development, overall health, and well-being, and for the prevention of diseases can tell us a lot about the current state of agricultural finances. Such minerals are not usually produced in an animal’s body, and need to be added in the feed externally for better standards and quality of animal-derived products. These minerals include salt, calcium, phosphorus, sulfur, magnesium, potassium, iron, and so on. But the spirit of economic competition is also a reason for the market to continue to increase. China, one of our top competitors in both markets, is heavily influenced by the governmental initiatives. China’s efforts to “modernize and find efficiencies in its structure and practices, and the increasing demand for meat and animal products to meet the protein needs of the growing population are among the major factors driving the growth of the animal feed additives market.” Continue 8