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Growing Pet Food Market Is Cat's (and Dog's) Meow

Spanish production of dog and cat food, both dry and canned, has shown a dramatic increase over the past few years, offering opportunities for U.S. exporters of these items and the ingredients used to make them. Based on industry estimates, Spain's dog and cat food output doubled between 1986 and 1989, growing from 62,000 metric tons in 1986 to 110,000 tons in 1989. Production is expected to double again by 1992. The value of pet food sales amounted to 15.5 billion pesetas ($163 million) in 1989. During 1986-89, dog food was the largest category of pet food produced and consumed in Spain; more than three-fourths of output in 1986 was for dogs. Roughly two-thirds of this dog food was the dry type, the rest was canned.

The rapid expansion of the industry is attributed to a combination of sociological, status and security factors: An increase in the number of couples without children, one-child families and unmarried people has brought about a greater interest in the companionship of pets; owning pedigree animals is becoming a sign of social status; and more Spaniards also are buying dogs for protection. Spain had roughly 22.5 million pets in 1989, of which 10 million were fish and 5.5 million were birds. The number of licensed dogs increased from approximately 2.45 million 1986 to 3.5 million in 1989. The number of licensed cats rose from 1.5 million in 1986 to about 2 million in 1989. The number of non-licensed dogs, mostly large animals used as livestock shepherds and for the protection of farms, could well be as high as 1.5-2 million, many of which are now being fed pet foods, mostly low-priced dry food, which is cheaper than bakery and slaughterhouse leftovers.

Although roughly 45 companies produce dog and cat food in Spain, the market is dominated by nine or 10 sales leaders that use a variety of ingredients including 48 percent protein micronized soybean meal, full-fat soybeans, corn flakes, meat and bone meal and dehydrated vegetables such as carrots. Spain also imports an estimated $3 million worth of biscuits and mash food for dogs and cats annually, notably from European Community countries such as France, Germany, the United Kingdom, the Netherlands and Belgium. Import levies on pet food vary by dairy and cereal content. Current retail prices for the most common types of dog food available in the Spanish market are listed below. Cat food prices are generally 25 percent above those of dog food.

# posted by Medical Information : 2:59 AM