Aquafeed production declines as global farmers face disease outbreaks, extreme weather, and thin margins

According to the latest Global Feed Survey by Alltech, a Kentucky-based agritech and animal nutrition company, aquafeed production in North America declined by 3.7% in 2024, raising concern for the aquaculture sector.

Salmon and shrimp producers have scaled back operations due to disease outbreaks, oversupply, and declining profit margins.

North America’s shrimp industry was further impacted by the early 2025 bankruptcy of American Mariculture Inc. (AMI), previously the largest shrimp farming company in the United States.

Alltech’s global outlook indicated that the decline in North America contributed to a 1.1% drop in global aquafeed production, from 53.6 million metric tons in 2023 to 53 million tons in 2024.

While feed volumes increased in most livestock sectors, aquaculture and swine feed were the only two segments to register year-on-year declines — highlighting how aquafeed demand responds sharply to farming conditions, with fish and shrimp producers able to downsize operations quickly when conditions deteriorate.

Mixed Global Trends

Worldwide, the decline in aquaculture has also been linked to cost pressures and environmental disruptions, such as flooding and heatwaves. Reductions in feed volumes often reflect operational decisions by producers to slow growth, stock fewer animals, or switch to more affordable feed formulations.

In contrast, Europe saw a 2.1% increase in aquafeed production, driven by lower feed costs and sustained demandfor species like Atlantic salmon, grouper, and seabream. The report noted that aquafeed output in the region has steadily grown over the past five years, supported by regulatory changes and consumer preferences for more sustainable production.

The Asia–Pacific region — the world’s largest aquaculture producer — posted a 1.7% decline in aquafeed output, marking the second consecutive year of decline. While Vietnam grew 3.3% thanks to strong export demand and improved farm operations, several countries in the region saw setbacks due to disease outbreaks, weather-related challenges, and a shift toward lower-cost inputs.

Meanwhile, Africa and Oceania recorded the strongest percentage growth in aquafeed volumes, up 9.1% and 9.3% respectively, though from smaller base volumes. In Africa, commercial feed adoption and demand for affordable protein drove the gains, while Oceania benefited from new farming operations and broader species diversification.

Despite regional highlights, confidence in aquafeed growth remains modest. Only 40% of survey respondents expressed optimism about aquaculture’s trajectory in 2025 — lower than poultry (67%) and pet feed (60%), and only slightly ahead of cattle and swine feed.

While Latin America may see recovery in selected markets due to improved export demand and better biosecurity, the report emphasized that disease management, economic volatility, and environmental uncertainty will continue to challenge production.

Alltech’s outlook concludes that a uniform recovery in aquafeed output is unlikely in the near term. Sustainable growth will likely depend on region-specific improvements in biosecurity, cost structures, and regulatory support.

Source: VASEP