In an epoch of geopolitical uncertainty, rising feed cost is one perennial issue that is unlikely to subside in the long term.

 

This explains why the actions of major corporations, to take a piece of the global grains pie, are viewed with suspicion. ADM's future takeover of Glencore's grain handling subsidiary, Viterra, is a case in point; this development led to a suggestion for the establishment of cooperatives, that could split control of the grain market with these industry players (pages 4-5).

 

Without cooperatives and their likes, there would be fewer checks on the influence of corporations in the agricultural commodities sector.

 

As the Centre for Research on Multinational Corporations stated in a press release last January, the "interconnectedness and market power" of the world's five largest traders of agricultural commodities enable them to substantially boost profit margins, "leading to a tripling of their profits" and escalating inflation. It's another way of saying, if the big players are winning, it may come at the expense of smaller ones who have to think of more creative ways to navigate today's higher production costs.

 

Furthermore, an intense global economy has only rendered every bit of feed grain more precious. With feed additives, every value can be extracted from this commodity, translating to better return on investment, cost saving and profitability for livestock producers down the road.

 

To help achieve certain economic advantages, feed additives must have a high tolerance of various feed processing conditions in order to still deliver beneficial effects to livestock. EW Nutrition's xylanases-based Axxess XY is created to meet this requirement, a demonstration of "full flexibility in feed performance" as the company states (pages 8-9).

 

Such a solution supplements the many ways of surmounting inflated production costs. When we consider the scarcity of resources (in terms of tight supply, cost, feed quality and other relevant factors), the positive impact of feed additives might be proportionately bigger than previously thought.

 

The full article is published on the March 2024 issue of LIVESTOCK & FEED Business. To read the full report, please email to inquiry@efeedlink.com to request for a complimentary copy of the magazine, indicating your name, mailing address and title of the report.