Market Trends of Africa Alfalfa Hay Industry
Rising Demand for Quality Feed in the Meat/Dairy Animal Feed Segment
- In the region, the alfalfa hay market is primarily driven by the increasing cattle population and the surging demand for milk production. As concerns grow over livestock productivity, the region's reliance on alfalfa hay for feed continues to rise. Data from the Western Cape government highlighted the significance of milk consumption among poorer households in South Africa. Furthermore, the country's dairy industry turnover saw a notable 32% increase in 2022-2023, underscoring the robust demand for milk.
- Urbanization and the rising population are fueling beef consumption in the region, further propelling the alfalfa hay market. Beef producers are increasingly turning to alfalfa hay, a shift largely driven by changing consumer preferences linked to rising income levels. As reported by SME Blue Pages, South Africa was the leader in terms of beef consumption in 2023, with a staggering 1.2 million metric tons. Given this trend, the global reliance on alfalfa hay for animal feed is poised to bolster the alfalfa hay market throughout the forecast period.
- Government initiatives, such as the Milk Offensive Support Project in West Africa (PAOLAO), spearheaded by the Economic Community of West African States (ECOWAS), are amplifying the demand for quality hay. This ambitious project aims to elevate local milk production to a staggering 10 billion liters annually by 2030. Central to its mission is the enhancement of the local milk value chain, starting from sourcing premium hay from domestic farmers to ensuring quality milk supply in the region.
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Increasing Alfalfa Hay Exports From South Africa
- As global demand for premium alfalfa hay surges, African nations stand poised to tap into lucrative export markets, particularly targeting the Middle East and Europe. Data from the ITC Trade Map revealed that South Africa's alfalfa hay exports reached 151,672 metric tons in 2023, marking a significant 57.2% increase from the 96,480 metric tons exported the previous year. In 2023, South Africa dominated the continent's alfalfa hay exports, commanding a substantial 56.85% share.
- Jankempdorp, Hopetown, Jacobsdal, and Douglas are the major lucerne hay-producing towns in the Northern Cape, owing to their favorable environmental conditions, such as adequate dry and warm conditions, better irrigation water, and high-quality soil. South Africa also exports lucerne hay to several countries, such as the United Arab Emirates, Dubai, Oman, and China.
- Companies in the market supply alfalfa hay to other countries from Africa, showcasing the export demand. For instance, African Agriculture Holdings Inc. agreed to supply alfalfa hay to Dr. Khan, a South Korean Company, in 2024. Therefore, the growing export demand for African alfalfa hay is driving the market’s growth.
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