Transcription

Pet Food Production and IngredientAnalysisPreparedfor:Preparedby:March 2020

Pet Food Production and Ingredient AnalysisJanuary 2020ContentsList of Figures . 3List of Tables . 6Executive Summary. 7Introduction . 9Results . 12Total National Pet Food Retail Volume and Sales . 12Summary of Total Ingredient Analysis . 13Upstream Volumes and Values . 13Upstream Impacts of Ingredient Purchases by Pet Food Manufacturers . 30Sales Analysis. 40Total . 40Cats . 42Dogs . 43Ingredient Analysis . 44Standardizing of Pet Food Ingredients . 44Ingredient Quantities. 46Appendix A, Methodology . 72Data Acquisition . 72Sales Analysis. 73Volume. 74Value . 75Ingredient Analysis . 75Recipe Reverse Engineering . 76Upstream Volumes and Values . 77Appendix B, Ingredient List and Categorization Used for Upstream Analysis . 80Appendix C, Guaranteed Analysis for Pet Food Products. 89Appendix D, Total Reported Retail Volume vs. Calculated Ingredient Volume . 98Appendix E, Additional Ingredient Volume and Value Detail . 99

Pet Food Production and Ingredient AnalysisJanuary 2020List of FiguresFigure 1, Pet Food Ingredients by Category. 13Figure 2, U.S. Total Pet Food Animal-based Ingredients . 15Figure 3, U.S. Total Pet Food Value Animal-based Ingredients . 16Figure 4, U.S. Pet Food Rendered Protein Meal Ingredients (Aggregated) . 17Figure 5, Value of U.S. Total Pet Food Rendered Protein Meal Ingredients (Aggregated) . 18Figure 6, U.S. Total Pet Food Rendered Protein Meal Ingredients . 20Figure 7, U.S. Total Pet Food Value Rendered Protein Meal Ingredients. 21Figure 8, U.S. Total Pet Food Ingredients from Slaughter/Rendering . 23Figure 9, U.S. Total Pet Food Value of Slaughter/Rending Ingredients . 24Figure 10, U.S. Total Pet Food Ingredients from Farm and Mill-based Products . 25Figure 11, U.S. Total Value of Pet Food Farm and Mill-based Ingredients . 26Figure 12, U.S. Total Pet Food Ingredients from Fishery . 27Figure 13, U.S. Total Value of Ingredients from Fishery . 27Figure 14, U.S. Total Pet Food Ingredients from Broth . 28Figure 15, U.S. Total Value of Pet Food Ingredients from Broth . 29Figure 16, Total Pet Food Ingredients Purchased (Tons) . 33Figure 17, Pet Food Processor Purchases of Farm and Farm Product Processor Ingredients( 1,000) . 34Figure 18, Farm Input Purchases Resulting from Pet Food Ingredient Purchases ( 1,000) . 34Figure 19, Farm Supplier Input Purchases Resulting from Pet Food Ingredient Purchases( 1,000) . 35Figure 20, Average Pet Food Ingredients Purchased Per Pet Food Manufacturing Facility (Tons). 37Figure 21, Average Farms and Processors Sales Resulting from Pet Food Ingredient PurchasesPer Pet Food Manufacturing Facility ( 1,000) . 38Figure 22, Average Farm Input Purchases Resulting from Pet Food Ingredient Purchases Per PetFood Manufacturing Facility ( 1,000) . 38Figure 23, Average Farm Supplier Input Purchases Resulting from Pet Food Ingredient PurchasesPer Pet Food Manufacturing Facility ( 1,000) . 39Figure 24, Total Pet Food Sale Analysis – By Volume (Tons) . 41Figure 25, Total Pet Food Sale Analysis – By Value . 41Figure 26, Cat Food Sales – By Volume (Tons). 42Figure 27, Cat Food Sales – By Value . 42Figure 28, Dog Food Sales – By Volume (Tons). 43Figure 29, Dog Food Sales – By Value . 43Page 3

Pet Food Production and Ingredient AnalysisJanuary 2020Figure 30, Major Food Ingredients for Cats, by Mention on the Ingredient Label . 45Figure 31, Major Food Ingredients for Dogs, by Mention on the Ingredient Label . 45Figure 32, Distribution of Food Ingredients in Nutrient Groups . 46Figure 33, Total Ingredients in Cat and Dog Food as Sold at Retail, Allocation by State . 47Figure 34, Animal Protein Quantities by Commodity Type (Total) . 49Figure 35, Animal Protein Volumes by Ingredient (Total) . 50Figure 36, Animal Fat Quantities by Commodity Type (Total) . 51Figure 37, Animal Fat Volumes by Ingredient (Total) . 51Figure 38, Plant Related Aggregations Quantities by Commodity Type (Total) . 52Figure 39, Plant Related Aggregations Volumes by Ingredient (Total) . 53Figure 40, Specialty Crop Quantities by Commodity Type (Total) . 54Figure 41, Specialty Crop Volumes by Ingredient (Total) . 55Figure 42, Total Ingredients in Cat Food as Sold at Retail, Allocation by State . 56Figure 43, Animal Protein Quantities by Commodity Type (Cats) . 57Figure 44, Animal Protein Volumes by Ingredient (Cats) . 58Figure 45, Animal Fat Quantities by Commodity Type (Cats) . 59Figure 46, Animal Fat Volumes by Ingredient (Cats) . 59Figure 47, Plant Related Aggregations Quantities by Commodity Type (Cats) . 60Figure 48, Plant Related Aggregations Volumes by Ingredient (Cats) . 61Figure 49, Specialty Crop Quantities by Commodity Type (Cats) . 62Figure 50, Specialty Crop Volumes by Ingredient (Cats) . 63Figure 51, Total Ingredients in Dog Food as Sold at Retail, Allocation by State . 64Figure 52, Animal Protein Quantities by Commodity Type (Dogs) . 65Figure 53, Animal Protein Volumes by Ingredient (Dogs) . 66Figure 54, Animal Fat Quantities by Commodity Type (Dogs). 67Figure 55, Animal Fat Volumes by Ingredient (Dogs) . 67Figure 56, Plant Related Aggregations Quantities by Commodity Type (Dogs) . 68Figure 57, Plant Related Aggregations Volumes by Ingredient (Dogs) . 69Figure 58, Specialty Crop Quantities by Commodity Type (Dogs) . 70Figure 59, Specialty Crop Volumes by Ingredient (Dogs) . 71Figure 60, Minimum Crude Protein Content in Cat Food Products . 90Figure 61, Minimum Crude Fat Content in Cat Food Products . 91Figure 62, Maximum Crude Fiber Content in Cat Food Products . 92Figure 63, Maximum Moisture Content in Cat Food Products . 93Figure 64, Minimum Crude Protein Content in Dog Food Products . 94Figure 65, Minimum Crude Fat Content in Dog Food Products . 95Figure 66, Maximum Crude Fiber Content in Dog Food Products . 96Figure 67, Maximum Moisture Content in Dog Food Products . 97Page 4

Pet Food Production and Ingredient AnalysisJanuary 2020Figure 68, U.S. Total Pet Food Ingredients from Fam and Mill-based. 100Figure 69, U.S. Total Pet Food Value of Farm and Mill-based Ingredients . 101Figure 70, U.S. Total Pet Food Ingredients from Fishery – Detail. 103Figure 71, U.S. Total Value of Ingredients from Fishery – Detail . 104Figure 72, U.S. Total Value of Pet Food Ingredients from Broth . 106Page 5

Pet Food Production and Ingredient AnalysisJanuary 2020List of TablesTable 1, Acronym . 6Table 2, Total U.S. Retail Pet Food Volume and Sales . 12Table 3, U.S. Total Pet Food Ingredients by Category . 14Table 4, U.S. Total Pet Food Animal-based Ingredients . 15Table 5, U.S. Total Pet Food Rendered Protein Meal Ingredients (Aggregated) . 17Table 6, U.S. Total Pet Food Rendered Protein Meal Ingredients . 19Table 7, U.S. Total Pet Food Ingredients from Slaughter/Rendering . 22Table 8, U.S. Total Pet Food Ingredients from Farm and Mill-based . 25Table 9, U.S. Total Pet Food Ingredients from Fishery . 26Table 10, U.S. Total Pet Food Ingredients from Broth . 28Table 11, Impacts of Pet Food Ingredient Purchases on Farms, Farm Product Processors andFarm Suppliers . 31Table 12, Average Impact Per Facility to Farms, Farm Product Processors and Farm Suppliers forPet Food Ingredient Purchases . 36Table 13, Total Pet Food Volume and Sales. 40Table 14, U.S. Total Pet Food Ingredients from Farm and Mill-based . 99Table 15, U.S. Total Pet Food Ingredients from Fishery – Detail . 102Table 16, U.S. Total Pet Food Ingredients from Broth . 105Table 1, AcronymName or EntityInstitute for Feed Education and ResearchPet Food InstituteNorth American Renderers AssociationAcronymIFEEDERPFINARAPage 6

Pet Food Production and Ingredient AnalysisJanuary 2020Executive SummaryThe pet food manufacturing industry is an increasingly important partner in the agriculturalindustry. The production of animal and plant-based protein and energy sources for use in petfood is tremendously diverse, providing nearly countless opportunities for creating recipes forthe nation’s pets. This research has sought to quantify the influence, from a volume and valuestandpoint, of the pet food manufacturing industry on the broader agriculture community.Consider the following findings from sales in 2018: 1Farmers and farm-product processors sell 6.9 billion worth of products to pet foodmanufacturers every year that are used as ingredients.Sales made by farmers and processors of farm products to pet food manufacturersstimulates further upstream economic activity, leading to the purchase of 5.3 billion ofmaterials and services from farm suppliers providing necessary inputs such as seed,fertilizer, fuel, labor, machinery and repairs to produce high quality products that areused as pet food ingredients.In addition, farm suppliers buy 4.1 billion in materials and services such as fuel,fertilizer, equipment and labor that they in turn sell to suppliers of farmers.The data analyzed indicates that 2018 U.S. retail dog and cat food sales were estimatedto be 30.3 billion from 9.8 million tons of product sales.Among all pet food products, the lead product was dry dog food by both volume andvalue, with 5.6 million tons (57% of total) and 11.2 billion dollars (37% of total).Pet foods use a wide variety of ingredients. The “reverse engineering” of the pet foodingredients from the retail product labels identified 542 standardized food ingredientsused in dog and cat foods. These ingredients were further categorized into 353 similaror combined ingredient classifications for which quantities and prices were determined.There are 164 ingredients shared by both cat and dog foods.There were 8.65 million tons of food ingredients used in U.S. dog and cat foodmanufacturing with an ingredient value of 6.9 billion1.o There were 4.0 million tons of farm and farm-product processor ingredientsvalued at 1.4 billion.o There are more than 3.8 million tons of animal-based products with a value of 4.6 billion used in dog and cat foods. There were 1.83 million tons of meat and poultry products valued at 3.1billion. Rendered protein meals contributed 1.5 million tons with a value of 563million.See Appendix D for additional information regarding comparison to total reported volumes.Page 7

Pet Food Production and Ingredient AnalysisJanuary 2020 There were 289,037 tons of animal and poultry fats with a value of 153million. Broth ingredients account for 166,851 tons with a value of 834 million.o Fishery ingredients contributed 198,671 tons with a value of 893 million.o Water and minerals contributed 571,164 tons with a value of 13.7 million.By weight, whole grains (1,869,087 tons) are the most used ingredients in dog and catfoods. This is followed by chicken (854,988 tons), meat and bone meal (635,652 tons),corn gluten meal (476,599 tons) and soybean meal (437,251 tons).By value, beef ( 1.22 billion), lamb ( 691 million), chicken ( 650 million), salmon ( 430million) and chicken broth ( 353 million) are the top five ingredients.Among all the 542 standardized food ingredients, 280 of them were aggregated intonutrient groups such as animal protein, animal fat, plant protein, plant carbohydrate,fruit and vegetable crop ingredients, etc. Animal protein ingredients comprised amajority of the total number of ingredients, followed by fruit and vegetable cropingredients such as apples, blueberries, peas, spinach, etc.Page 8

Pet Food Production and Ingredient AnalysisJanuary 2020IntroductionAs shown in the following map, there are pet food manufacturing facilities in 42 of 50 states.The pet food produced throughout these facilities is diverse in quantity, type and the inclusionand prevalence of many types of ingredients. In many ways, the production and marketing ofpet food is not all that different than the food sold to pet owners.Page 9

Pet Food Production and Ingredient AnalysisJanuary 2020There have been numerous efforts to quantify the volumes and value of pet foods sold. Tomeet the needs and expectations of pet owners, maintain profitability and still providenutritionally-balanced food for dogs and cats, substantial efforts are routinely conducted by petfood manufacturers to better understand trends in consumer preferences and their ability andwillingness to pay for diverse ingredients.Understand