TABLE OF CONTENTS
         
         Chapter 1 Introduction
         
           1.1 Introduction to the livestock industry
              1.1.1 Categories of livestock
           1.2 Feeding of farm animals
           1.3 Approaches to performance enhancement
           1.4 Regulatory issues
         
         Chapter 2 Medicated performance enhancers
         
           2.1 Introduction
           2.2 Medicated feed additives
              2.2.1 Antibiotics
                2.2.1.1 Ionophore antibiotics
                2.2.1.2 Nonionophore antibiotics
              2.2.2 Anti-coccidials
              2.2.3 Companies and products
                2.2.3.1 Ionophore antibiotics
                2.2.3.2 Nonionophore antibiotics
                2.2.3.3 Anti-coccidials
              2.2.4 Risk to human health
              2.2.5 Regulatory changes
           2.3 Hormones and hormone-like enhancers
              2.3.1 Sex hormones
                2.3.1.1 Naturally-occuring steroids
                2.3.1.2 Synthetic steroids
                2.3.1.3 Synthetic non-steroidal estrogen
              2.3.2 Growth hormone
              2.3.3 Beta-agonists
              2.3.4 Companies and products
              2.3.5 Risk to human health
              2.3.6 Regulatory changes
         
         Chapter 3 Non-medicated feed additives
         
           3.1 Introduction
           3.2 Nutritional requirements of livestock
           3.3 Nutritional additives
              3.3.1 Amino acids
                3.3.1.1 Companies and products
              3.3.2 Vitamins
                3.3.2.1 Companies and products
              3.3.3 Trace minerals
                3.3.3.1 Companies and products
              3.3.4 Miscellaneous additives
                3.3.4.1 Carotenoids
                3.3.4.2 Betaine
                3.3.4.3 Other additives
           3.4 Zootechnical additives (pro-nutrients)
              3.4.1 Enzymes
                3.4.1.1 Companies and products
              3.4.2 Direct-fed microbials and prebiotics
                3.4.2.1 Direct-fed microbials
                3.4.2.2 Prebiotics
                3.4.2.3 Companies and products
           3.5 Technological additives
              3.5.1 Acidifiers
                3.5.1.1 Companies and products
              3.5.2 Silage additives
              3.5.3 Antioxidants
              3.5.4 Emulsifiers
              3.5.5 Ruminal buffers
         
         Chapter 4 Market considerations and forecasts
         
           4.1  Introduction
           4.2  Compound feed market
           4.3  Premix and specialty feed market
           4.4  Medicated feed additive market
           4.5  Nutritional feed additive market
           4.6  Regional market conditions
              4.6.1  Feed additives in general
              4.6.2  Europe
              4.6.3  Asia/Pacific
              4.6.4  North America
           4.7  Analysis and forecasts to 2011
         
         Chapter 5 Key companies
         
           5.0 Introduction
           5.1 Adisseo
           5.2 Alltech
           5.3 Alpharma
           5.4 BASF
           5.5 Danisco
           5.6 Degussa
           5.7 DSM
           5.8 Elanco Animal Health
           5.9 Intervet
           5.10 Ivy Animal Health
           5.11 Novozymes
           5.12 Novus International
           5.13 Nutreco
           5.14 Phibro Animal Health
           5.15 Schering-Plough
         
         Chapter 6 Trends and opportunities
         
           6.1 Trend away from medicated performance enhancers
           6.2 Marketing of additives as profit optimising tools
           6.3 Emergence of popular additives
           6.4 Performance enhancers in ruminants and nonruminants
           6.5 Corporate strategies for survival and growth
           6.6 Meeting the consumer demand for safety

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EXECUTIVE SUMMARY

In livestock production, stimulation of productivity was traditionally achieved with the use of medicated products such as antibiotics and anabolic hormones. Recently, emphasis has shifted towards the protection of human and animal health and to some extent to environmental protection which favours the use on non-medicated performance enhancers. This Report examines the current market and prospects for medicated and non-medicated livestock performance enhancers.

The use of medicated performance enhancers with perceived high risks to human health has already been banned in the EU. However, with an ever- increasing world demand for food, there is constant pressure to increase the rate of production of food. This has stimulated interest in safe and effective alternative erformance enhancing products. Feed additives offer an opportunity to improve animal productivity and health. Feed acidifiers, which may be added to feed or water, have already reduced antimicrobial use in livestock production in the US and other non-EU countries, while other non-medicated feed additives are emerging as potential performance- enhancing products.

We forecast that the global market for livestock performance enhancers will rise by a compound annual growth rate of 1.5% overall from $6.7 billion in 2006 to $7.3 billion in 2011. These figures do not allow for inflation or exchange rate fluctuations over the forecast period. Nutritional feed additives are the largest segment, with 65% of the market in 2006, followed by medicated feed additives (29%) and implants/injections (6.0%). The negative impact of safety concerns by regulators and consumers is expected to be offset by emerging opportunities for product diversification (most notably the development of alternatives to medicated performance-enhancing products), coupled with the influence of the growing economy and the increasing production and consumption of meat and other livestock products.

This Report first examines the market for medicated performance-enhancing products. Ionophore antibiotics are used to manipulate rumen fermentation, and to increase weight gain of growing cattle and other ruminants, while nonionophore antibiotics are used to selectively modify microbial gut populations and to combat low-level infections, particularly in intensive systems involving poultry and pigs. Most of the beef raised in the US today is produced with the use of anabolic hormones administered as subcutaneous implants: these products increase the efficiency of conversion of feed into meat, thus lowering producer's costs. Two other medicated performance-enhancing products - a bovine growth hormone and a beta-agonist product - are approved in the US.

Acidifiers (weak acids added to feed or water) are being actively promoted as replacements for antibiotics to improve the growth of livestock. Acidifiers have various functions in monogastric animals, including enhanced stimulation of protein digestion and reduction in numbers of harmful bacteria in the gut. Research results to date lend support to the use of acidifiers as replacements for antibiotic growth promoters in poultry and pigs.

This Report also examines the market for non-medicated feed additives that are emerging as potential alternatives to medicated performance-enhancing products. Such products tend fall into two categories - nutritional additives (which supply specific nutrient(s) required by the animal for optimal growth) and zootechnical additives (which improve the nutrient status of the animal by enabling more efficient nutrient extraction from the diet). In addition, feed additives belonging to two other categories - technological (which may indirectly influence the nutritional value of the feed indirectly) and sensory (which improve the palatability of food) have a role to play in the promotion of animal productivity and health.

Nutritional additives descussed in this Report include, in addition to essential amino acids, vitamins, and trace minerals. Increasingly, it is recognized that vitamin and trace mineral deficiencies do not have to approach clinical status before they compromise a producer's returns. Zootechnical additives discussed in this Report include enzymes, direct-fed microbials (probiotics), and prebiotics. The use of enzymes which improve feed digestibility is gaining popularity along with the realisation that indigestible feed components exert anti-nutritional effects on the animal and negatively affect production efficiency. The use of direct-fed microbials to achieve a healthy intestinal microbial balance is also growing in popularity along with the recognition of the adverse effects that stresses experienced by animals in modern intensive production systems have on this balance. In addition, use is growing of prebiotic oligosaccharides which may selectively stimulate the activity of beneficial gut bacteria.

This report also profiles 15 companies with a prominent presence in the market for medicated and/or non-medicated livestock performance enhancing products and examines strategic decisions being taken by companies dominating different segments of this market.