INDUSTRY SURVEY GOOD PROBLEMS A recent market survey of processors commissioned by Pet Food Processing revealed a forecast of mostly positive with a chance of challenges for pet food and treat manufacturers. By Jennifer Semple | jsemple@sosland.com The market shift to super premium pet food and treats is forcing processors to pivot and adapt production. Processors hope to chase trends with a conservative approach to capital expenditure until it's clear the trend they are chasing is here to stay. But 2019 served up some curveballs as quality grains gained prominence in new product offerings and grain-free took a hit from the US Food and Drug Administration's (FDA) inquiry into canine dilated cardiomyopathy (DCM). It's a challenge to confidently commit capital dollars toward a niche product when, to borrow a phrase from Heidi Klum, "One day you are in, the next you are out." Overall, processors expressed excitement for the opportunities they see in the industry. Expanded distribution into new sales channels, continued market growth and a shift to premium products are contributing to the positive outlook for this year. While 100% of industry executives surveyed reported an overall positive outlook for pet treats, the outlook for pet food was still nothing to bark at with 96% of executives giving it a thumbs up. The challenges threatening to cloud the skies in 2020 were reported to be the lack of a skilled workforce (47%), food safety (39%) and rapidly changing consumer attitudes (35%). The survey reached out to US pet food and treat companies that either manufacture products in companyowned processing facilities (71%), co-manufacture for other companies (43%), utilize other manufacturers to www.petfoodprocessing.net | 2019 | PET FOOD PROCESSING 9http://www.petfoodprocessing.net