Southeast Asia's feed-to-meat value chain is navigating one of its most demanding periods in recent memory.

 

Rising input costs, geopolitical disruption, and accelerating structural consolidation are reshaping how producers across the region source, formulate, and plan.

 

Against this backdrop, eFeedLink spoke with three Novus sales managers covering Southeast Asia - Nannapas Moonsap, Senior Regional Sales Manager for Thailand and Indochina; Rika Riantika, Senior Regional Sales Manager for Indonesia, Malaysia, and Singapore; and Elbert Platon, Executive Sales Manager for the Philippines - to get a ground-level view of what is changing and how intelligent nutrition solutions are helping producers respond.

 

With ongoing geopolitical tensions and policy shifts, what longer-term structural changes are you seeing across the feed-to-meat value chain?

 

Rika Riantika: Across Indonesia, these tensions and shifts are driving a structural reshaping, not just cyclical pressure. The changes are appearing at every level of the industry: raw material sourcing, feed milling, farm economics, and downstream protein pricing.

 

Elbert Platon: In the Philippines, we are seeing significant changes in feed formulation through precision nutrition and data analytics designed to optimise feed efficiency and improve livestock productivity. Where inputs are concerned, the long-term effects of price volatility are accelerating the adoption of technology as producers focus on products that can convert reduced feed inputs into greater meat production.

 

Supply chain dynamics are also evolving the way meat is distributed and sold, facilitating direct-to-consumer models that may bypass traditional market routes and offer farmers better margins.

 

Nannapas Moonsap: Thailand is undergoing significant long-term structural transformation, driven by geopolitical fragmentation, rising energy costs, and the need for greater supply chain resilience.

 

The industry is transitioning from a just-in-time model to one focused on secure, localised, and technologically advanced production, with accelerated vertical integration and consolidation to address risks from volatile raw material prices and logistics disruptions. Larger, fully integrated firms are dominating the landscape, with traceability and food safety standards increasingly important for export markets including the EU and Japan. Producers are moving away from commodity meat products toward value-added, specialised items to secure better margins.

 

In Vietnam, the feed-to-meat value chain is undergoing a rapid shift from small-scale, fragmented production toward large-scale, integrated, and technology-driven systems, driven by high input costs, geopolitical volatility, and stricter food safety regulations.

 

Are there shifts in sourcing, risk management, inventory strategies, or production planning that you believe will remain even after current disruptions ease?

 

Rika Riantika: Many of the adjustments companies in Indonesia made during recent disruptions are becoming long-term strategies rather than temporary responses.

 

Businesses are building stronger domestic supplier networks to reduce import dependency while also taking a more proactive approach to risk management as regulations, trade policies, and infrastructure challenges continue to evolve.

 

Companies are also rethinking inventory and production planning through more flexible manufacturing models, closer supplier integration, and long-term partnerships that support greater resilience and supply continuity. The government's Makan Bergizi Gratis programme - providing free nutritious meals for children - has also had a positive impact on the industry, helping to reduce the gap between supply and demand.

 

Elbert Platon: In the Philippines, the market is adopting changes to sourcing, risk management, inventory, and production planning that are expected to become the new normal.

 

Animal producers tend to lean on the strength of commercial feed producers to provide economies of scale and technology to relieve small-scale farmers of these aspects. Meanwhile, large-scale integrators hold the advantage in pricing, production dynamics, and market reach.

 

Nannapas Moonsap: In Thailand, companies are diversifying from single-source, long-distance suppliers and strengthening local and regional networks within ASEAN to shorten supply chains. Stronger, long-term partnerships are replacing transactional sourcing models, with shared risk management becoming standard practice.

 

In Vietnam, multi-sourcing has become a priority, with many companies actively reducing dependence on any single supplier or country. Suppliers are adopting partnership models that share risks with feed producers rather than passing all costs downstream.

 

There is also a permanent shift toward utilising local by-products such as rice bran and bagasse to reduce reliance on expensive imported raw materials.

 

In practical terms, what is actually driving the market today, and which factors may be overstated?

 

Rika Riantika: All factors - grain prices, logistics, raw materials - apply, but the most impactful is meat and egg pricing. When production costs are high and meat or egg prices trend low or remain unstable, the effect on the market is significant.

 

Nannapas Moonsap: Market expansion in Thailand is driven by increased livestock production, rising meat consumption, and the adoption of compound and functional feed. However, producers continue to face pressure from high feed, fuel, ingredient, and logistics costs.

 

In Vietnam, feed prices rose 10% to 14% in some areas in early 2026 due to rising raw material and logistics costs. The rapid shift from smallholder operations to large-scale commercial farms is the primary structural driver, with industrial feed now accounting for 80% to 85% of total consumption. African swine fever remains a significant risk across the swine sector.

 

In practical terms, the market is being driven primarily by the high cost of production - feed ingredients, energy, and imported raw materials - combined with continued demand growth from rising meat consumption across the region.

 

Producers are under pressure to protect tight margins while remaining competitive against lower-cost imports. Some broader macroeconomic narratives, such as inflation trends or logistics costs, may be overstated relative to the more immediate and sustained impact of feed costs, input availability, and production efficiency on day-to-day business decisions.

 

Are customers becoming more defensive and short-term in their purchasing decisions, or are they still investing in long-term performance and efficiency? What changes are you seeing in formulation and feed management strategies?

 

Rika Riantika: Integrators are still investing in long-term performance and efficiency. The changes we are seeing are mostly in the flexibility to use raw materials available in the market to improve cost efficiency. There is also growing use of enzymes to support nutrient utilisation. Integrators are supplying day-old chicks and running one-package feeding programmes.

 

Elbert Platon: Integrators in the Philippines tend to remain cautious but focused on production efficiency. Commercial feed manufacturers, on the other hand, are taking a more defensive approach, allowing a wider selection of authorised suppliers and seeking competitive and lower-cost alternative products. The industry is finding ways to utilise alternative ingredient sources, and enzyme use is creating greater flexibility in feed formulation and cost management.

 

Nannapas Moonsap: Rising operational costs - energy, transport - and an uncertain economic outlook for 2026 are pushing Thai producers to prioritise cost-effective inputs. At the same time, there is a strong shift toward precision nutrition to maximise animals' genetic potential, particularly for export-oriented livestock in swine and poultry. There is growing recognition that high-quality, efficient feed reduces waste and improves sustainability.

 

Customers in Vietnam are adopting a hybrid approach - defensive on cost control, but strategic on long-term performance efficiency. Inflationary pressures are encouraging short-term budget tightening, but investment in performance solutions continues.

 

How has the role of enzyme technologies evolved in feed formulation, and what changes are you seeing in how customers utilise enzyme solutions today?

 

Rika Riantika: The fluctuating price and unstable quality of protein sources have made enzyme use increasingly important to our customers. We have also seen enzyme use generate cost savings that producers are reinvesting into additional feed additives to support overall performance.

 

Elbert Platon: Enzymes are now an integral part of precision nutrition, used to address specific nutrient requirements across each phase of animal production. Basal diets are being assessed against specific feed programmes to optimise utilisation.

 

CIBENZA^® DP100 Enzyme Feed Additive continues to deliver value through feed consistency, maximising the utility of a wide array of nutrients and helping to reduce the risk of anti-nutritional factors such as trypsin inhibitors.

 

Nannapas Moonsap: By breaking down anti-nutritional factors and fibre matrices, enzymes provide precision matrix values that release energy and amino acids, neutralising the impact of raw material variability.

 

CIBENZA^® DP100 allows producers the flexibility to use more cost-effective ingredients without compromising performance.

 

Beyond nutrient release, CIBENZA^® DP100 also supports intestinal health by promoting gut flora diversity, immune function, and intestinal integrity.

 

With increasing cost pressure across the industry, how is Novus helping customers balance performance, efficiency, and profitability?

 

Novus supports customers through a portfolio of nutrition solutions designed around their specific needs.

 

Enzyme technologies, including CIBENZA^® Enzyme Feed Additives, support alternative feed formulation strategies and nutrient optimisation to help reduce feed costs while maximising nutrient utilisation. Gut health solutions are designed to support animal health and production efficiency.

 

The MINTREX^® Bis-Chelated Trace Minerals provide a highly available and absorbable source of organic zinc, copper, and manganese to support breeder, layer, broiler, and livestock performance across all production stages.

 

Together, these solutions help customers reduce waste, optimise efficiency, and support long-term profitability through science-based nutrition strategies.

 

Do you see growing demand for organic trace minerals, gut health solutions, and performance additives as producers work to optimise efficiency under tighter margins? What are the key factors driving adoption, and have customer expectations evolved?

 

Rika Riantika: Producers considering organic trace minerals should look closely at breeder diets, where bis-chelated forms are recognised for superior absorption compared with inorganic trace minerals, directly benefiting progeny quality.

 

In layers, bis-chelated organic trace minerals support better eggshell quality, which adds market value. In broilers, bis-chelated trace minerals support meat quality, footpad condition, and gut health.

 

Producers looking to reduce mineral inclusion levels can use bis-chelated trace minerals at lower rates than inorganic alternatives while achieving the same or better results.

 

Elbert Platon: Beyond gut health and immune function benefits, bis-chelated organic trace minerals also offer a sustainability advantage. Because they can be included at lower levels than inorganic trace minerals and are better absorbed with less interaction with antagonists in the gut, less is excreted into the environment - a consideration that is becoming increasingly relevant for producers with export or food safety commitments.

 

Nannapas Moonsap: MINTREX^® Bis-Chelated Trace Minerals offer an efficient approach to trace mineral nutrition. As a bis-chelate, the mineral is protected from antagonists in the digestive tract, allowing more efficient absorption in the small intestine. The result is greater bioavailability, digestive tract stability, and a residual methionine-sparing effect that can reduce the required level of supplemental methionine per tonne of feed.

 

Gut health continues to receive significant attention across the industry. What are the main factors driving this focus, and how have customer priorities evolved?

 

Nannapas Moonsap: The ban on antibiotic growth promoters and the move toward antibiotic-free production are now industry standards, driven primarily by food safety concerns and the global effort to reduce antimicrobial resistance. As a result, gut health has become the foundation for animal performance and producer profitability.

 

Rika Riantika: Customers are increasingly aware of gut health and its direct impact on productivity. Since the ban on antibiotic growth promoters, the industry has been working to find effective alternatives for managing bacterial challenges. Eubiotics solutions have become a widely adopted option to support gut integrity and promote microbiota balance in poultry.

 

Elbert Platon: While Novus offers eubiotics solutions like organic acid blends, products such as enzymes and bis-chelated organic trace minerals can also support gut health. Used in combination, these solutions deliver synergistic effects, offering producers a range of options to suit the specific goals of different operations.

 

Looking ahead, what developments or risks could most significantly reshape the market over the next 12 to 24 months?

 

Elbert Platon: Importation remains a persistent threat to local farm production in the Philippines. As long as the cost of local production remains high, producer margins are constrained.

 

While local distribution and value-added margins remain elevated, consumers will continue to be drawn to imported products.

 

Nannapas Moonsap: In Thailand and Vietnam, geopolitical volatility and trade disruptions pose ongoing risks, particularly given the reliance on specific regions for critical feed ingredients - a dynamic that continues to affect raw material costs. Exchange rate instability remains a challenge, especially for broiler exporters. In the swine sector, African swine fever remains a serious and ongoing threat.

 

Rika Riantika: Against a backdrop of high production costs, the industry is developing additional strategies around poultry and egg production management, feed technology, and expanding into exports and food processing.

 

A further risk for local markets is competition from imported chicken, which is offering consumers alternatives that can draw sales away from domestic producers.

 

What role does Novus see itself playing in supporting customers and the broader livestock industry, and what should customers take confidence in moving forward?

 

Customers can rely on Novus for high-quality, consistent products backed by a global supply chain team working to ensure availability where and when it is needed.

 

The dedicated regulatory and quality assurance teams help ensure every batch meets Novus' standards. Beyond product supply, Novus is committed to direct customer engagement - sharing knowledge from the global technical services and R&D teams alongside insights from external opinion leaders on industry trends and challenges.

 

Novus' goal is to serve as a trusted, long-term partner for each customer it works with across the region.

 

- eFeedLink