How to make feed business thrive

Competitive companies will flourish by adopting new technologies and increasing transparency

As the industry and regulatory pressures continue to increase, consumer preferences continue to change, and technological progress, the feed industry will change dramatically in the next 5 years. In order to maintain competitive advantage, feed companies will have to adapt to the new environment, redefining the best system in almost every phase of the company's operations - from farm and batching procurement to supply chain management and customer requirements.

There is no doubt that consumer concerns over food safety, laws and regulations (such as food safety Modernization Act) and other changes that occur around the world are affecting the food supply chain.

The challenge of feed industry

In addition to these growing regulatory challenges, feed producers must be prepared to cope with the following trends in the feed industry:

1. inequality is increasing in competition

Feed supply is always a price sensitive business, but tend to look at the global level feed food standards, so the main feed suppliers in compliance with such as "food safety Modernization Act" and other new regulations will face strict scrutiny, this will increase the cost of. At the same time, small companies will continue to engage in low price competition.

2. the looming food crisis

Meeting the global human needs for food is a long-term challenge that will directly affect livestock food supplies.

The rise of 3. consumers

Along with the food challenge, consumers are increasingly interested in animal health and animal feed and more attention. Consumers are learning more about the entire supply chain. They ask more and more questions like this: are animals treated with humanity? Are they fed on local feed? What quality and safety measures do manufacturers take?

4. the increase of new technology applications

Compared with the past, the animal feed industry is now more dynamic, multifaceted and complex, changing faster, which lays the foundation for the introduction and use of more advanced technologies, especially the quality control technology. Regardless of the freshness and evaluation of ingredients, moisture control or traceability of products, companies will have to find unique applications for their modern technologies to address the challenge of feed supply, and to strengthen the current production process and production system.

Considering the complexity of the problem and the current trend, each company will invest a lot of time, capital, human resources to maintain its competitive position. In order to stand out and grab market share, feed companies will redouble their efforts to exceed customer expectations.

Take measures to win the lead in 5 years

Companies that will best understand the challenges of the future and respond to the challenges ahead of time will become leaders and win the trust of customers and consumers.

Manufacturers can take the following steps to make their business thrive, not just to survive in competition:

1. develop stable and effective internal and system and control

Advanced data systems are key to managing supply chains and controlling quality, process, and regulation. The data system should allow the company to transmit data to the upstream and downstream of the supply chain to meet the needs of product information, product acquisition, product attributes, product use, process performance and infrastructure management.

2. professional and technical investment

To ensure that the leading position in the feed industry, and to ensure safe, reliable and meet the requirements of the product, the company must be in the supervision, quality control, enterprise risk management and environmental health and safety and other areas of skilled personnel to carry out key investments.

3. focus on Education

Given the changes in all sectors of the industry, continuing education for employees, suppliers and customers will be more important than ever. Education and training are critical to ensure that new technologies for quality control and supply chain management can be adequately and effectively utilized and maintained.

4. improve transparency

Almost every industry's customers, consumers, regulators and other stakeholders are demanding transparency in the industry, and the feed industry is no exception. They wanted to know more about ingredients, production processes, safety, quality, and so on.

Companies that can fully understand the changing environment of the feed industry, and quickly adapt to the new situation of the market, regulatory pressure and consumer demand will be able to play a favorable position in the competition now and in the future. Although it takes a lot of resources to respond to these challenges, this is the only option for companies that want to gain market share and become industry leaders.