Global Feed Protein Ingredients Market Could Reach $220 Billion by 2026

Palm Beach, FL – April 3, 2020 – The feed protein ingredients market size is set to surpass USD $220 Billion by 2026, according to a new research report by Global Market Insights, Inc. The report said that “increased production of meat and aquatic based products coupled with R&D activities in meat processing industry has resulted in expanding high-quality meat demand. This will have a positive impact on animal feed protein ingredients industry growth. Consumer inclination towards high protein diets to meet their nutritional needs will further propel product demand.”  As per the market forecast, increase in livestock demand including cattle, swine, poultry, equine and aquaculture owing to rising consumption of animal derived products including milk, meat and eggs will promote the market outlook.  The report also said that the rising product demand for cattle feed application will accelerate the industry demand. Protein is an essential nutrient in diets of ruminants since it supplies ammonia necessary for microbial growth. Protein deficiency include depressed reproductive performance, poor growth, weight loss, lowered appetite, and decreased milk production. Offering adequate protein in cattle diets is necessary for animal productivity and ranch profitability. Rising milk requirements owing to its high nutritional value will foster cattle feed demand thereby stimulating animal feed Protein ingredients market growth.  Active stocks in news today include:  China Xiangtai Food Co. Ltd. (NASDAQ: PLIN), Mondelez International, Inc. (NASDAQ: MDLZ), Beyond Meat, Inc. (NASDAQ: BYND), Hormel Foods Corporation (NYSE: HRL), Archer-Daniels-Midland Company (NYSE: ADM).


Cattle protein requirement vary during different stages of production, size of animal and expected performance. During lactation, cattle require higher amount of protein, it is also required for higher milk production and reconditioning retractive tract after calving, thus driving product demand. Growing cattle feed demand on account of cattle health concerns will have a positive impact on global industry trends.  The report also projected that the rising utilization of animal feed protein ingredients in aqua culture may foster industry growth. “According to market analysis and trends, animal feed protein ingredients market from fish meal is expected to grow at CAGR of over 3% from 2020 to 2026.”


China Xiangtai Food Co. Ltd. (NASDAQ: PLIN) BREAKING NEWSChina ng Feed Co., Ltd. Enters into Definitive Agreement to Acquire Controlling Interest in Chongqing Ji Mao Cang Feed Co., Ltd.  – China Xiangtai Food (the “Company” or the “PLIN”), an emerging growth company primarily engaged in pork processing in China, today announced that the Company, through its subsidiary Chongqing Jinghuangtai Enterprise Management Consulting Co., Ltd., entered into a definitive agreement (the “Agreement”) to acquire a 51% controlling interest in Chongqing Ji Mao Cang Feed Co., Ltd. (“JMC”). JMC is a private enterprise specializing in feed raw material sales and providing feed formula solutions, and the acquisition is expected to help the Company expand its market in Southwest China.


As previously announced, the Company entered into a non-binding Memorandum of Understanding (the “MOU”) to acquire 51% controlling interest in JMC, one of the leading feed suppliers in southwest China. JMC has more than 200 customers in the farm industry and nearly 100 customers in the feed production industry. In 2019, JMC sold more than 200,000 tons of soybean meal, exceeding $70,000,000 (RMB 500 million) in sales. With the Company’s revenue of $102,545,152 in its last fiscal year, PLIN expects this acquisition to increase its gross revenue by 70% on an annual basis.


Pursuant to the Agreement, subject to certain milestones to be achieved by JMC, the Company agreed to issue to JMC a total of 2,000,000 shares of the Company’s ordinary share for consideration equal to $7,420,000 over the next two years.


Ms. Zeshu Dai, Chairwoman and CEO of China Xiangtai Food, commented, “We are thrilled to enter into a definitive agreement with JMC. Combining JMC’s capability in feed raw material and formula solutions with PLIN’s commercial strength as a leading provider of pork products will make a dramatic impact on our penetration and expansion into China’s southwest market. Looking ahead, we will continue to implement the Company’s growth strategy to create value for our shareholders.”


Mr. Xiaohui Wu, the President and Director of China Xiangtai Food, added, “The acquisition of JMC will further enable the Company to respond to the growing demand for pork in China. We believe that our business and profitability will benefit from this expanded vertical integration of the industry supply chain and network. Further, this transaction will accelerate our already impressive growth in this vital market.”    Read this entire press release and more news for PLIN at:     

In other industry news this week of note includes:


Mondelez International, Inc. (NASDAQ: MDLZ) recently announced it has completed its previously announced agreement to acquire a significant majority interest in Give & Go, a North American leader in fully-finished sweet baked goods and owners of the famous two-bite® brand of brownies and the Create-A-Treat® brand, known for cookie and gingerbread house decorating kits.


“As we continue to establish foundations in fast-growing snacking adjacencies, this is an important acquisition for our company that supports our ambition to lead the future of snacking,” said Glen Walter, Executive Vice President and President, North America for Mondelēz International. “We look forward to working with the Give & Go management team as they build on their leading position in the large and fast-growing in-store bakery channel.”


Hormel Foods Corporation (NYSE: HRL) announced this week that it will host a virtual live concert featuring Chris Kroeze, runner-up on season 15 of NBC’s Emmy Award Winning television show, The Voice. The live concert is the latest way the company is thanking team members for their continued efforts to provide food to the world during the COVID-19 outbreak.


The virtual concert will take place this Friday, April 3 at 7 p.m., CT, and will feature live performances by award-winning global artists Chris Kroeze, Natalie Murphy and Nick Hoffman. Kroeze was runner-up on season 15 of the hit NBC show The Voice and captured the hearts of millions during his time on the show. The artists have toured the world, appeared at the Grand Ole Opry and shared the stage with music legends like Blake Shelton, Kenny Chesney, Travis Tritt, the Doobie Brothers and more. Hoffman is also the host of the Outdoor Channel television series “Nick’s Wild Ride”, which airs on Outdoor Channel and is also co-founder of his band, The Farm.


Beyond Meat, Inc. (NASDAQ: BYND)  a leader in plant-based meat, recently reported financial results for its fourth quarter and full year ended December 31, 2019.  Fourth Quarter 2019 Financial Highlights Compared to Prior Year Period were: Net revenues were $98.5 million, an increase of 212%, compared to net revenues of $31.5 million in the year-ago period; Gross profit was $33.5 million, or 34.0% of net revenues, compared to gross profit of $7.9 million, or 25.0% of net revenues, in the year-ago period; Net loss was $0.5 million, or $0.01 per common share, compared to net loss of $7.5 million, or $1.10 per common share in the year-ago period; and Adjusted EBITDA, which is a non-GAAP financial measure, was $9.5 million compared to an Adjusted EBITDA loss of $3.8 million in the year-ago period.


Archer-Daniels-Midland Company (NYSE: ADM) recently announced an ambitious new plan to reduce its absolute greenhouse gas emissions by 25 percent and its energy intensity by 15 percent by 2035.


“Every single day, ADM is focused on keeping its employees healthy and safe while simultaneously ensuring we are continuing to support the world’s food supply,” said Chairman and CEO Juan Luciano. “At the same time, we believe it remains vitally important that we continue to plan for the future and remain good long-term stewards of our company and our planet. We know that the health of our natural resources is critical to our future. Consumers around the world know it as well, and they are making it clear that they expect their food and drink to come from sustainable ingredients, produced by companies that share their values. We care deeply about our partners, our customers, our employees, our shareholders, and the planet, and that is why we are setting these ambitious emissions and energy goals for ourselves. Our future will be stronger for these goals.”


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