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USA Animal Food Market: Key Insights

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USA Animal Food Market: Key Insights

IndexBox has just published a new report, the U.S. Animal Food (Except Dog And Cat) Market. Analysis And Forecast to 2025. Here is a summary of the report’s key findings.

The revenue of the animal food market in the U.S. amounted to $30.5B in 2018, falling by -2.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). Over the period under review, animal food consumption, however, continues to indicate a measured reduction.

The most prominent rate of growth was recorded in 2015, with an increase of 2.7% year-to-year. Over the period under review, the animal food market reached its peak figure level at $34.8B in 2013; however, from 2014 to 2018, consumption stood at a somewhat lower figure.

Animal Food Production in the USA

In value terms, animal food production totaled $30.8B in 2018. Over the last decade, animal food production, however, continues to indicate a measured curtailment. The most prominent rate of growth was recorded in 2015, with an increase of 2.4% year-to-year.

Exports from the USA

In 2018, animal food exports from the U.S. stood at 864K tonnes, standing approx. at the previous year. The total export volume increased at an average annual rate of +3.0% over the period from 2013 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations over the period under review.

In value terms, animal food exports totaled $506M (IndexBox estimates) in 2018.

Exports by Country

China (163K tonnes), Japan (137K tonnes) and South Korea (110K tonnes) were the main destinations of animal food exports from the U.S., together accounting for 47% of total exports. These countries were followed by Indonesia, Trinidad and Tobago, Vietnam, the Philippines, Colombia and Taiwan, Chinese, which together accounted for a further 37%.

From 2013 to 2018, the most notable rate of growth in terms of exports, amongst the main countries of destination, was attained by Colombia, while the other leaders experienced more modest paces of growth.

In value terms, China ($115M) remains the key foreign market for animal food exports from the U.S., comprising 23% of total animal food exports. The second position in the ranking was occupied by Japan ($48M), with a 9.5% share of total exports. It was followed by Indonesia, with a 9.4% share.

Export Prices by Country

In 2018, the average animal food export price amounted to $586 per tonne, dropping by -2.3% against the previous year. Over the period under review, the animal food export price continues to indicate a slight decrease.

Export prices varied noticeably by the country of destination; the country with the highest export price was Taiwan, Chinese ($850 per tonne), while the average price for exports to South Korea ($306 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of export prices was recorded for supplies to Taiwan, Chinese, while the export prices for the other major destinations experienced mixed trend patterns.

Imports into the USA

In 2018, the amount of animal food (except dog and cat) imported into the U.S. amounted to 291K tonnes, growing by 7.4% against the previous year. Over the last decade, the total imports indicated a prominent increase from 2013 to 2018: its volume increased at an average annual rate of +10.2% over the last five year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the animal food imports decreased by -1.8% against 2016 indices. The growth pace was the most rapid in 2014, when the imports increased by 27% against the previous year. Over the period under review, animal food imports attained their maximum at 296K tonnes in 2016; however, from 2017 to 2018, imports stood at a somewhat lower figure.

In value terms, animal food imports amounted to $428M (IndexBox estimates) in 2018. The total import value increased at an average annual rate of +4.3% from 2013 to 2018; however, the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed over the period under review. Over the period under review, animal food imports attained their peak figure in 2018, and are likely to continue its growth in the near future.

Imports by Country

In 2018, Malaysia (87K tonnes) constituted the largest supplier of animal food to the U.S., with a 30% share of total imports. Moreover, animal food imports from Malaysia exceeded the figures recorded by the second largest supplier, China (38K tonnes), twofold. The third position in this ranking was occupied by India (34K tonnes), with a 12% share.

From 2013 to 2018, the average annual growth rate of volume from Malaysia totaled +20.6%. The remaining supplying countries recorded the following average annual rates of imports growth: China (-1.2% per year) and India (+137.4% per year).

In value terms, France ($69M), China ($64M) and Malaysia ($58M) appeared to be the largest animal food suppliers to the U.S., with a combined 45% share of total imports. These countries were followed by Germany, India, the Netherlands, Norway, Belgium, Italy, Indonesia, Ireland and South Korea, which together accounted for a further 30%.

Import Prices by Country

The average animal food import price stood at $1.5 per kg in 2018, coming down by -5.7% against the previous year. Over the last decade, the animal food import price continues to indicate a deep shrinkage.

There were significant differences in the average import prices amongst the major supplying countries. In 2018, the country with the highest import price was France ($7,787 per tonne), while the price for South Korea ($132 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of import prices was attained by Germany, while the import prices for the other major suppliers experienced mixed trend patterns.

Companies Mentioned in the Report

Southern States Cooperative, Jbs United, Inc., Valley Proteins, Furst-Mcness Company, Hi-Pro Feeds, H.J. Baker & Bro., Milk Specialties Company, Stillwater Milling Company, Cooperative Producers, Kent Nutrition Group, Provimi North America, Purina Mills, Reconserve, ADM Alliance Nutrition, American Proteins, Goldsboro Milling Company, Farmers Union Industries, O.K. Industries, Vp Holdings Corporation, Equity Group – Kentucky Division LLC, Heartland Pet Foods Manufacturing, Blue Buffalo Pet Products, Inc.

Source: IndexBox AI Platform

Calls Growing to Ease Ban on US Petroleum Exports

Washington, DC – International pressure is growing on Washington from several major trading partners to ease, or end, the long-standing ban on US crude oil exports.

Mexico said recently that it could enter an agreements with the US on crude oil swaps or on direct imports, while one of South Korea’s leading refiners has opened discussions with the government in Seoul over how to encourage Washington to end the ban on ‘ultra-light sweet crude,’ and the European Union wants US oil and natural gas exports covered by the proposed Transatlantic Trade and Investment Partnership.

 

According to Petroleos Mexicanos (PEMEX), Mexico’s state-owned oil company, the country is seeking US-sourced oil because of a sharp decline in its own reserves.

 

South Korea, which relies on imports to cover more than 95 percent of its energy needs, has had to curb oil imports from major supplier Iran, due to US and EU sanctions introduced in 2012, and the EU is eagerly looking for an alternative to petroleum supplies from Russia.

 

Japan, while not pushing for an ease on the current ban, has said it’s interested in importing more of what can be pumped out of gushers in such states as Texas, Alaska and North Dakota, but only “if the supplies are economically feasible.”

 

While fully overturning the ban would require Congressional action that most consider unlikely in the near-term, many argue that the White House could gradually allow for more oil to flow abroad through existing means.

 

Due in large part to the increase in shale oil production, the US is soon expected to surpass both Russia and Saudi Arabia as the world’s largest oil producer.

 

In March, the US Department of Commerce approved the export of 500,000 barrels of lightly processed condensate exports to South Korea from two domestic companies. Three additional applications have been put on hold as the White House reviews its policies on the ban.

 

09/11/2014

 

Investigation of Steel Pipe Imports from Korea Urged

Washington, DC – More than 150 members of the House of Representatives have signed a letter to US Commerce Secretary Penny Pritzker urging a “thorough investigation of the dumping of Oil Country Tubular Goods (OCTG) steel pipe in the US market by South Korea.”

The bipartisan group behind the letter was jointly organized by Reps. Tim Murphy (R-Pennsylvania) and Pete Visclosky (D-Indiana). The correspondence comes a month after a similar letter was sent to the Commerce Secretary by a majority of members of the US Senate.

The same month, a preliminary ruling was issued by the Commerce Department (DOC) charging that eight countries are dumping OCTG pipe in the US at below fair-market value in response to a filing by US Steel and several other US-based steel makers and manufacturers.

“Notably absent, however, in the Commerce Department determination was any finding of wrongdoing by South Korea, the primary source of imported OCTG products,” the latest letter read. “With no market of its own, South Korea exports nearly all of its OCTG production – often at well-below market prices – to the United States.”

With a final decision set for July, the House letter is urging Pritzger “to fully investigate concerns regarding the accuracy of data submitted by South Korean steel companies.”

“As the surge continues, domestic steelmakers’ production, capacity utilization, shipments, and sales all fell in the first quarter of 2013, with operating income slashed by nearly $191 million,” the letter read.

Last week, the U.S. Steel Corp. announced it would “indefinitely” shutter its seamless tubular manufacturing facilities in McKeesport, Pennsylvania, and Bellville, Texas, as “unfairly traded tubular products imported into the US has affected business conditions.”

The company said it “remains committed to the tubular products business and to serving its tubular customers and has taken this decision so that the company can return to sustainable profitability.”

According to industry sources, OCTG imports from South Korea and the eight other countries targeted in the DOC determination more than doubled since 2008 and have grown by 61 percent thus far in 2014 compared to 2013.

Seamless OCTG pipes are primarily used for domestic oil exploration, including shale development.

06/24/2014