Animal Feeds

Animal feed demand to rise

  • Significant expansion is occurring in intensive animal production in South Australia.
  • Demand for cereal feed grains will increase by 75% to 925 000 tonnes annually by 2010.
  • Demand for protein components of feed rations to increase by 80% to 284 500 tonnes annually.
  • Expansion will primarily occur within a 150 km radius of Adelaide close to modern processing facilities developing in Murray Bridge, Port Wakefield and Adelaide.
  • Fodder demand growth of 6-8% per annum until 2010 in both domestic and international markets driven by domestic dairy industry and from Asian and Middle East markets.

Feed supply

  • Average seasonal production of feed grains is anticipated to grow from 1.75 million tonnes in 2003 to 2 million tonnes by 2010 due to yield increases of approximately 1 to 2% per annum.
  • 2002 drought, grain production within a 150 km radius of Adelaide totalled 1.1 million tonnes.
  • Slow yield growth of 1–2% per annum to continue.
  • By 2010 feed grain demand is anticipated to have grown from 25% of available cereal production to nearly 50%.
  • Demand for pulses to meet the protein component of livestock rations shows that by 2010 demand will exceed production. Currently the human food value of pulse grains limits their use in stock feeds. Other cost effective protein sources will be sourced to fill shortfall.

Challenges and Opportunities

  • Opportunity to examine the feed grain value chain looking at collaborative opportunities between grain growers and animal industry.
  • Bio-diesel and bio-ethanol fuel production will compete for feed grain supplies.
  • Both bio-fuels have significant high protein bi-products suitable for use in livestock rations, potentially reducing dependence on high value pulses for ration protein.
  • Biofuel plant co-location with livestock enterprises an economic opportunity.
  • Expansion in demand will reduce the amount of cereal feed grain available for export from South Australia and result in more seasons of low grain supply in which grain prices will rise above world parity prices.
  • Increasing competition from North America fodder sources, prospects of new markets and maintenance of current markets demands improvement in fodder quality and consistent supply.