"Feed costs did not change much in 2017, which would be seen as a positive by many in the industry. Certainly, it has been good for producers of milk, meat and eggs," the annual survey conducted by the feed company found.

Alltech's chief innovation officer and vice president Aidan Connolly commented that global progress made by tillage farmers in combating disease and drought had delivered cheap, plentiful harvests of grain and soy, translating into lower input costs for feed mills.

"In general, feed costs are low and, for the foreseeable future, will remain that way," he said.

Pigs drive growth

The fastest-growing feed market globally was for pigs, with a 6% expansion in the market. Dairy and broiler feed sales grew by 3%, while the trade in feed for laying hens was broadly stable. Beef feed was the only category to decline globally, shrinking by 1% as "more consumers turn to “white

meats such as chicken, pork and fish," the study noted.

European feed mills grew their production by 3% in 2017, with much of this concentrated in the the eastern part of the continent. Russia boosted its feed output by 19% as "government policy favours internal production and import displacement," according to Alltech. Ukraine and Romania are also expanding.

While Asian growth was on a par with Europe's, global leader China saw its production fall slightly as its domestic livestock industry faced multiple challenges. Instead, new players have emerged, with India growing its feed production by 9%.

Read more

Hikes in feed and fertiliser costs are ‘unjustified’