ARLINGTON, VA. — The American Feed Industry Association (AFIA) released its annual “Our Industry, Our Promise” report on Aug. 26, detailing its continued support of the animal nutrition industry, as well as the industry’s economic impact.
According to the association, in 2023, there were approximately 5,650 US animal food manufacturers, including pet food processors. The industry generated an estimated $267.1 billion in total sales, as well as $98.4 billion in value-added contributions, and $18.5 billion in local, state and national taxes. Overall, the industry directly paid $6.9 billion in wages to more than 80,3000 employees in 2023.
Regarding its role in the industry, the AFIA highlighted its major focuses, including ensuring safety, modernizing regulatory practices, developing a more resilient supply chain, promoting global competitiveness and advancing sustainability.
During the past year, the association advocated for the Innovative Feed Enhancement and Economic Development (Innovative FEED) Act.
“Modernizing the regulatory process for new animal food ingredients is essential for innovation,” wrote Constance Cullman, president and chief executive officer of the AFIA, in the report. “This past year, the AFIA successfully advocated for the introduction of the Innovative FEED Act in Congress and encouraged the Food and Drug Administration to rescind its outdated policy guide that wrongly regulates some animal feed ingredients as drugs versus feed additives. Both efforts will help the United States regain its competitive edge in animal production.”
Addressing supply chain challenges also continues to be a focus for the association. The AFIA continues to raise awareness of the imperative need for the US to diversify input supplies and markets. In the pet food industry specifically, the association is working to address the United States’ dependency on Chinese production of essential vitamins, as about 78% of total vitamin imports to the United States are from China, according to the AFIA.
“Recognizing the need for resiliency, the AFIA formed a task force to develop strategies for reducing risks in our supply chain and launched initiatives to expand industry’s presence in new markets,” Cullman wrote. “Through member visits to Congress and representation on Cabinet-level task forces, the AFIA is raising awareness of the need to diversify input supplies and markets for US food and animal food security.”
Enhancing exportation
Among its many initiatives to support the industry, the AFIA continues to promote US products in international markets in hopes of strengthening the industry’s global competitiveness. According to the association, from 2022 to 2023 the value of US animal food exports rose 79% to $13.4 billion, and export volume increased 120% to 19.8 million tonnes. The industry’s top export destinations continue to be Canada, Mexico, China, Japan and South Korea. Pet food was the industry’s second top export, generating $2.4 billion in value and second only to corn coproducts, which generated $4 billion.
Looking toward the future of US animal food exports, the AFIA will continue to focus on Brazil and Vietnam. In Brazil, the AFIA recently completed an assessment on the country, examining opportunities for the overall animal food industry.
According to the US Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS), Vietnam’s pet population continues to rise. During the past five years the dog and cat populations have risen 30% and 20% respectively. To help promote US pet food products in Vietnam, the AFIA recently partnered with the Vietnamese Small Veterinary Association to promote pet parent education on the importance of complete-and-balanced pet foods.
Seeking sustainability
Additionally, the AFIA is also working toward helping the industry become more sustainable. According to the association, more than 40% of ingredients used in animal feed are coproducts from other industries. This means that about 113.6 million tons of materials are diverted from landfills annually, avoiding about 61.3 million tonnes of carbon dioxide and 7.4 million tonnes of methane emissions.
To continue this, the AFIA launched many new sustainability policies in 2023 aimed at promoting global collaboration and partnerships with industry stakeholders, governments and non-governmental organizations to address challenges in reducing environmental impact.
“Whether it is called conservation, sustainability, regenerative agriculture or smart resource use, the need to do more with less is part of our industry’s culture and future,” Cullman wrote. “The AFIA’s work on sustainability continues to gain momentum with the development of policy priorities that emphasize animal nutrition in environmental solutions, while balancing food security needs. The association is leading efforts to shape sustainability agendas and dialogues at international fora on climate change and through international standard-setting, all while supporting members on their sustainability journeys.”
Additionally, the association’s Institute for Feed Education and Research (IFEEDER) launched its Animal Food Industry Sustainability Toolkit in early 2023 to help industry members with their environmental journeys. IFEEDER intends to expand the resource, adding additional information and resources.
“We owe the AFIA members and staff a debt of gratitude for their dedication to our industry and for encouraging us to continue improving and innovating,” wrote Carlos Gonzalez, Ph.D., vice president of Global Regulatory Affairs at Hill’s Pet Nutrition and AFIA’s Board Chair. “Our future is bright, and it will be brighter with your participation.”
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