Albany, NY -- (SBWIRE) -- 12/07/2018 -- Oat hulls are high fiber, low energy, low-protein feedstuff that can be used as roughage extenders when forages are in short supply. Oat hulls are the byproducts of the oat milling process. They are pelletized for ease of transportation and use. They are considered a source of insoluble fiber for ruminants. Oat hulls contain significant amount of starchy endosperm. Oat hulls are sources of insoluble fiber for ruminants. Oat hulls have continued to gain popularity in the cattle feeding and cow-calf industries. They are replacing ground straw in rations. Oat hulls ammoniated at a rate of 5% of dry matter is an effective method of adding feed value.

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Demand for oat hulls is increasing due to their high nutritional quality. Fodder industry is the key market segment driving the oats hulls market, as oat hulls are used as food supplements. Demand for animal protein and dairy products is also fueling the market for oat hulls. They often outperform other sources of fiber because they have a higher passage rate through the animal. Advancements in technology can also be considered a factor boosting the oat hulls market, as the process of formation of oat hulls from raw oat requires some processing steps.

Based on ingredients, the oats hulls market can be classified into NDF (Neutral Detergent Fiber), ADF (Acidic Detergent Fiber), crude fiber, and lignin. Based on origin, oat hulls can be segmented into ground and unground oat hulls. Unground oat hulls have a feed energy value at least 20% greater than that of hay in calf growing diets. Unground oat hulls have larger particle size compared to ground oat hulls and have decreased dustiness. However, ground oat hulls are usually less expensive, largely due to the lower handling and freight costs.

The global oat hulls market has expanded decently in 2015. It is estimated to expand promisingly during the forecast period. Oat hulls are primarily consumed in Europe and North America, as the growth of oats take place at comparatively cool temperatures. The market in Europe is expected to expand, as the demand for healthy cattle feed is increasing in the region. Oat hulls play an important role in modern agriculture and are a focus of the European Union regulatory frame work. North America uses approximately 110 million bushels of oats; of this, about 90% is grown in Canada.

Demand for oats hull is expected to continue to rise in North America because of the reduced use of the grain for feed, and failure of yields to keep pace with increase in maize and soybean yields. The U.S. imports more than 70% of its oat products from Canada. In Asia Pacific, China leads the market in terms of production and consumption of oat hulls. With the development of China's agriculture and livestock husbandry, oat hulls are becoming promising fodder crop in the areas where climate is favorable, especially in the remote, cooler mountain areas. Demand for oat hulls is high in Mexico and Argentina in Latin America. The market for oat hulls is likely to expand in Middle East & Africa due to the improvement in lifestyle of consumers in the region.

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Key players operating in the oat-hulls market include JGL Grain, Quaker Oats Company, and LaBudde Group , Incorporated.