Microalgae as feed ingredients and a potential source of competitive advantage in livestock production: A review

Abstract

This research aims to discuss a theoretical model for assessing whether the inclusion of microalgae-based feedstock into the heterogeneous resources of the livestock feed industry could help gain potential sustained competitive advantage (SCA). Microalgae refer to a large group of photosynthetic, aquatic organisms that lack the true roots, stems, and leaves of higher plants. The VRIN - value, rarity, imitability and/or not have substitutes framework is used to investigate whether microalgae feedstock could be of strategic relevance and a potential source of competitive parity, temporary and/or sustained competitive advantages, as well as superior economic performance in the feed market. If microalgae feedstock adds nutritional value to animal diets, they may provide competitive parity. If their nutritional properties are difficult to imitate and rare, they may provide temporary or sustained competitive advantage given that the organizations within the feed industry are organised in such a way that they could effectively and efficiently exploit the biomass and its bundle of nutritive contents. This paper points out the significance of microalgae feedstock in creating potential competitive advantage in animal feed products, based on the VRIN model. A wide-ranging literature review is conducted to extract and synthesise information from both empirical and theoretical articles concerning animal feed trials using microalgae and the nutritional values of microalgae. Although, feeding trials results appear to be promising, findings thus far do not allow to draw a conclusion on microalgae's capability to replace fishmeal as the main source of protein in animal feed products. Nevertheless, macro and micronutrients as well as the antioxidants present in microalgae could provide saving opportunities on other feed ingredients like corn and soybean meal. Additionally, animal wastewater containing significant amount of inorganic phosphorus and nitrogen, which are a major cause of eutrophication in water bodies could be bioremediated using microalgae, producing biomass in the process.