The added value of pet food production

Pets are humanized, but the owner decides

Today, the growing trend of treating pets as family members is driving demand for higher-quality and more diverse pet products. You can now buy almost anything for pets, including clothes, toothpaste, sleeping bags, toys and cupcakes. When it comes to purchasing pet food, it’s the owners who make the decisions based on their preferences, not necessarily what’s best for the pet. This is why marketing is crucial in the pet food industry. The more appealing the food looks and smells to humans, the better it will sell. While dogs don’t care if their treat is red, yellow, or purple due to their limited color spectrum, owners do. They also choose based on price, quality, and attractive packaging.

How big is the pet food market?

Globally, one in three households has a dog, and one in four has a cat, creating a substantial demand for pet food. The global pet food production volume is around 35 million metric tons annually, valued at approximately $125 billion. This market is growing at an average rate of nearly 8% per year, outpacing the growth of the general food industry. Consequently, many food processors are venturing into pet food production. They recognize the opportunity to add value to their by-product streams and utilize them more sustainably and effectively. Marel can assist with such projects, helping processors benefit from the potential of this expanding market.

What are the drivers for poultry processors to enter the pet food market?

Maximizing carcass value means utilizing every part of the animal. This includes exporting chicken parts that European consumers typically avoid, such as feet or knees, to markets in Asia. Additionally, other byproducts, like the final remnants of carcasses after most meat has been removed, as well as livers, gizzards, hearts, lungs, kidneys, intestines (when there is no other market for these products) can be transformed into valuable pet food. Carcass balance is a crucial reason for poultry processors to enter the pet food market. As sustainability becomes increasingly important, valuating the entire supply chain and reducing waste streams makes sense. This approach is also profitable, as many poultry processors are now converting raw materials previously considered low-value into high-value pet food products with good margins. Pet food (especially treats), can yield up to $25 per kilo of meat that is otherwise typically and traditionally considered as low-value.

Dedicated pet food lines

Pet food production is strictly regulated in most countries, such as by the FDA in the US, requiring it to be produced on a separate line from human food. Additionally, consumers are uncomfortable with the idea of their food being made on the same line as pet food. Consequently, pet food processors who also handle human food must install a dedicated pet food line, often in a separate building, to prevent any mixture. Then again, a typical pet food processing line could physically be identical to a human convenience food line. Installing such a pet food line is almost always an excellent idea. Given the high yield, the return on investment for this line is very fast.

Four types

The preparation phase is often similar for all types of pet food, with grinding and mixing to make a homogeneous meat mass. In the mixer, other ingredients, such as salt, pepper, herbs and spices, can be added as needed. After meat preparation, typically four different pet food applications can be configured.

• Dehydrated snacks
  This snack market is probably the most popular market. It may be the smallest in volume, but with the highest value per kilogram of products.
  For dehydrated snacks, the preparation is followed by forming with the RevoPortioner, heating with Marel LinearOven or ModularOven and drying with the Wenger Dryer. Marel equipment, such as Multihead Weighers and Weigh Price Labelers, can be used for batching, weighing, and end-of-line processes.

• Dried pet food (kibbles) 
  Wenger extrusion and drying solutions are extremely strong and leading in this market. In the extrusion process, like in the PetFLEX, the meat mass is heated under pressure, then pushed through a die machine that cuts the kibbles while they expand due to the pressure change.
  For extruded products like kibbles, which are small, dry, bite-sizes pieces, marination is also a specialty of Wenger. Batching, weighing, and end-of-line operations can be done with Marel solutions.
    
• Raw frozen pet food (BARF)
  BARF stands for Biologically Appropriate Raw Food (or Bones and Raw Food). A typical BARF line includes meat preparation and a RevoPortioner former. Then, cooling and freezing come in, followed by batching, weighing and end-of-line processes.
  
  
• Wet pet food
  For wet pet food products, liquids or gravy are added. Emulsifying, cooking and portioning into chunks are part of Marel’s and Wenger’s scopes. The process is finished with Marel batching, weighing and end-of-line solutions.