Turkey Animal Feed Market - Forecasts from 2023 to 2028

Turkey's animal feed market is estimated to grow at a CAGR of 2.76% to reach TL87.091 billion by 2028, up from TL71.994 billion in 2021.

Turkey is experiencing a huge increase in animal feed costs, which has led Turkish cattle farmers to send cattle to slaughterhouses earlier than usual. According to the USDA, beef production will rise annually to 1.5 million metric tonnes (MMT) in 2023, up 200,000 MT from 2022, assuming cattle slaughter numbers remain strong.

Further, the rising global commodity prices and the ongoing devaluation of the Turkish Lira (TL) versus the US dollar are increasing feed and other related input costs. The TL has lost half its value versus the dollar in the past year (Aug 2021-Aug 2022) alone. Since the majority of the compound feed produced in Türkiye is derived from imported materials, the price of animal feed is particularly susceptible to these external economic forces.

Growing consumption of meat and other animal-based goods to drive market growth.

The potential expansion of the industry is sparked by the increased consumption of meat and other animal-based goods. The market is developing as a result of the rising consumer demand for foods with high nutritional value. According to the data provided by FAO, Türkiye’s poultry production has seen an increase at a steady pace from 2.2 million tonnes in 2020 to 2.3 million tonnes in 2021.

According to the USDA report, chicken meat hit the 2.23 MMT mark in 2022, a hike of 3% in 2021. The growth is constrained due to insufficient production, increasing exports, and high market prices. Despite the growing demand for chicken meat in Türkiye due to the growing population, broiler production grew slightly at 1.5% to reach 2.17 million metric tonnes (MMT). Moreover, the production of soybeans and corn is not at the levels needed for the poultry sector. For instance, around 40% of the corn and 97% of the soy used are imported into Türkiye.

In February 2021, Türkiye’s Ministry of Agriculture and Forestry (MinAF) approved four GE soybean events and one GE corn event for feed as a result of applications by the Turkish Poultry Meat Producers and Breeders Association (Besd-Bir).

Further, with the rise in inflation, many Turkish cattle producers are struggling to make ends meet as input expenses, particularly feed, rise faster than farm gate prices for carcass meat and milk. According to a USDA FAS report, beef production is expected to increase year on year to 1.5 million metric tons (MMT) in 2023, up 200,000 MT from the previous year, based on the expectation that cattle slaughter numbers will remain robust, but also in large part due to the Turkish ministry of agriculture and forestry's recent decision to allow 160,000 head of imported feeder cattle over the coming months, according to the USDA.

Nonetheless, despite increased cattle and carcass imports, Turkey lacks sufficient red meat output. The per capita consumption of red meat for people is only 11.1 kg/capita in 2022. According to Turkish Animal Pro, Türkiye is estimated to have a meat shortfall of approximately 1.5 million tons, with beef accounting for 34% of red meat output. To rectify the situation of deficit supply, cattle stock production needs to be pushed up. With the expected increase in livestock population and demand for meat products, the demand for compound feed is projected to grow further during the forecast period.

Market Developments:

• In June 2022, BASF Turkey and Kartal Kimya collaboratively launched a new feed offering for aquatic animals, BalanGut Aqua. According to the firms, aquafeed protects intestinal health in fish. The product was unveiled in the two-day product launch program organized by the duo in Izmir. The field study and trials have demonstrated the beneficial effects of BalanGut Aqua. It aids in the optimum development of the fish by safeguarding its health and welfare on yield parameters, product quality, and farmer expenses. The mono-, di-, and triglycerides in the formulation provide bacteriostatic and bactericidal actions and help in maintaining every stage and area of the digestive tract.
• In January 2022, Orffa, a world leader in the animal feed industry committed to research and innovation, announced that it had expanded its direct operations to include South Korea and Turkey. Orffa's strategic goal is to directly serve the animal feed industry with its cutting-edge, scientifically based Specialty feed solutions while maintaining a presence in the top feed-producing nations. The acceleration of this strategic direction is supported by the opening of additional companies in South Korea and Turkey. Orffa's local technical sales staff is devoted to driving value creation for the animal feed sector by engineering and marketing its top-notch product offerings.

The Turkish economy grew at a robust pace in 2022, with private consumption expanding by 19.6%. Additionally, the labor market, supported by strong economic growth, rebounded fully from the pandemic, which led to an increase in income levels, and, consequently, the purchasing power of consumers, which led to an increased demand for animal feed, including soya-based feed. Soya is an important source of protein for animal feed, especially for poultry. This increased demand for animal feed positively impacted the growth of the soya-based animal feed market in Turkey.

The services sector and industry were the primary drivers of value-added growth in Turkey, with growth rates of 9.7% and 3.3%, respectively, which resulted in an increase in demand for animal feed, including soya-based feed. This is because the services and industry sectors often rely on animal products as ingredients in their products or as a source of revenue, thereby increasing the demand for animal feed.

Market Segmentation:

By Type

• Fodder & Forage
• Compound Feed

By Livestock

• Aquatic Animals
• Cattle
• Poultry
• Others

By Raw Material

• Soya
• Corn
• Others