AHPD Industry Overview

Feed additives are substances added in small or micro quantities to macronutrients of animal feed to provide specific health or nutrition effects in a concentrated manner and can be categorised as follows:

Feed Additives

Feed additives are crucial in ensuring the health of farmed livestock. Apart from safekeeping feed from harmful parasites, pollutants and mould, an optimal mix of feed additives into macronutrients plays an increasingly important role in guaranteeing the health and growth of livestock.

Thus, the growth of the animal feed additives market is driven by the growth of the livestock market, primarily poultry livestock which accounted for 74% of the livestock industry value in 2008 as depicted below:

Major Livestock Commodities

Notes:
p   Projection
*   Total includes total value of above as well as other livestock commodities
(Source: Department of Veterinary Sciences of Malaysia ("DVS"), Protégé Associates)

In Malaysia, the practice of using feed additives for the improvement of health and nutrition in livestock is well-cultured, having been used for over fifty (50) years. Globally, the phasing out of antibiotics feed additives has commenced in more developed countries, with meaningful strides made through the complete ban of antibiotics usage as growth promotants by the EU region in 2006. Malaysia is trending the same way, although at a lagged pace due to amongst others, the higher cost of non-antibiotic feed additives, low awareness of their benefits and lack of regulations to register and control feed additives used in the livestock industry.

Nonetheless, non-antibiotic feed additives are gaining favour due to its cleaner and greener impact on animals, the environment and food safety. Current environmental, animal welfare and health concerns related to antibiotic feed additives have accelerated the development and adoption of non-antibiotic feed additives.

 

Market Share Analysis

The non-antibiotics feed additives market is estimated to value at RM94.1 million in 2009, of which our Group's AHPD is estimated to have a market share of approximately 16.9%. Based on our market share, SCC Holdings Group is among the top ten (10) companies involved in the distribution of feed additives in Malaysia.

(source: Independent market research report by Protégé Associates)