All About Feed and Feed Additive Prices are partnering to provide All About Feed readers with high quality feed additive market intelligence. Martijn de Cocq, the founder and driving force behind the new global platform, spoke to All About Feed about the current feed additives market and the history behind the new platform.
Has your interest always been in feed additive markets?
After graduating from the University of Amsterdam with a Bachelor’s degree in Supply Chain Management I started working in the animal feed industry back in 2004. First as a buyer and trader of feed additives at the Cargill animal feed premix plant in Rotterdam. After that in various positions such as, procurement, sales, supply chain, and market intelligence, always linked to animal feed additives. And still to this day I am actively involved in feed additive trading, supply chain and market intelligence.
When did you decide to branch out by yourself?
Over the last nearly 20 years, I developed a deep passion for these markets and enjoyed helping market participants linked to the feed additive industry gain access to the high-quality information they needed. But I was missing a certain level of accuracy in price points, a sparring partner with industry experience and a future market outlook at the existing service providers, so I decided to launch a service myself. And then in May 2022 the platform was launched.
Your platform focuses on China, Europe and the USA, why those regions?
As a big portion of feed additives are manufactured in China nowadays, that is the starting point of the supply chain and therefore FOB China prices are published. And next to that Europe and the USA are major animal feed regions as well and the home for many market participants. But looking to the future, other key areas such as South East Asia, Latin America and upcoming markets in Africa are being considered to be taken along in the scope as well.
China is notoriously difficult for sharing data with the outside world – what is your secret?
Although information transparency has improved a lot over the past years, it is still a challenge to place that data into the right context indeed. By having worked as a purchaser for many years, sourcing feed additives out of China, and also having travelled extensively in China, I learned the ropes of sourcing out of China and put things into context. At the same time, I have been able to build up a trusted network of people in that region and that helps a lot.
What makes Feed Additive Prices stand out from the crowd?
It is backed up by nearly 20 years of actual market and trading experience and therefore market understanding. Collecting market prices and market info is one thing, but to understand the context and translate that into price points and information that is accurate, consistent and trustworthy, that is how this platform stands out. And there is a view, opinion and context provided. And above all, it comes from passion and the desire to share really good market information with others.
Have there been any major changes in the markets since the pandemic?
Yes, just to name a few examples. We have seen huge volatility in the container market, leading to record high prices, and now again very low prices, and that for sure had an impact on the bottom line price for several feed additives. Also there has been a change in (feed)consumption patterns since the pandemic and we have experienced a significant increase in raw material prices and energy costs. And after the pandemic there has been quite a lot of oversupply for feed additives, leading to significant price decline.
What is your view on the market outlook for 2023 and potentially beyond that?
Prices for most vitamins and amino acids have significantly declined over the past year at least, as a result of less feed consumption and therefore an imbalance in supply and demand. This has led to high stocks and more hand to mouth purchasing behaviour in the animal feed industry. Despite the higher cost prices for several feed additives, compared to previous years, the current weak trend may carry on still further into 2023. Longer term that is not a sustainable situation for the manufacturers and a balance between supply and demand at a reasonable price level will have to be found again.
How can our readers stay up to date on the market for these specific feed additives?
Every week a market summary will be published for several amino acids and vitamins via the All About Feed platform and high-level market prices will be shown as well by means of price graphs on the All About Feed website.
More detail on price points, contract prices, contract cover, future market outlook, supply and demand numbers and other data, that can be found on the Feed Additive Prices platform itself.