Argentina Compound Feed Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 10.41 Billion |
| Market Size (2029) | USD 13.69 Billion |
| CAGR (2024 - 2029) | 5.63 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Argentina Compound Feed Market Analysis
The Argentina Compound Feed Market size is estimated at USD 10.41 billion in 2024, and is expected to reach USD 13.69 billion by 2029, at a CAGR of 5.63% during the forecast period (2024-2029).
- The demand for higher-value and quality foods, such as meat, eggs, and milk, is increasing in the country. This shift is due to the rising demand for greater food variety and protein intake. These changes in consumption patterns, coupled with significant population growth, have led to substantial increases in the total demand for animal products in Argentina. This trend is anticipated to continue in the coming years.
- The compound feed market for beef animals is likely to experience slower growth in the country due to decreased per capita consumption resulting from high prices caused by inflation. According to a United States Department of Agriculture report, the per capita beef consumption in 2024 is estimated at approximately 45 kilos, the lowest in the past 110 years. This declining trend is forecasted to continue due to competition from price-competitive poultry and an anticipated continued expansion of pork and poultry production and consumption. However, beef consumption is likely to rebound in 2025 as a result of expected larger supplies, which would lead to increased consumption and exports. Additionally, stronger purchasing power is anticipated to encourage greater overall consumption.
- As beef prices rise during the economic recession, consumers have shifted towards poultry as a protein source, expanding the consumption of poultry feed. In recent years, chicken prices have increased more slowly than beef, encouraging a switch from beef to chicken in price-sensitive markets. Beyond economic factors, chicken has gained a reputation, particularly among younger consumers and women, as a healthier alternative to beef. This is likley to pushing the consumption of poultry feed in the country as the production is likley to increase with the trend.
Argentina Compound Feed Market Trends
Poultry Feed is Witnessing Higher Growth
- Argentina's ongoing issues of sluggish growth and elevated inflation have diminished purchasing power for large segments of the population, resulting in reduced consumption of costly meats. However, the poultry feed sector is witnessing significant expansion as domestic poultry meat consumption increases, driven by its competitive pricing compared to other meats. Consumers are increasingly turning to poultry as a more affordable protein option in response to economic pressures.
- In February 2023, Argentina's poultry industry encountered a significant setback due to an avian flu outbreak, resulting in a decline in poultry exports. The sector responded promptly by implementing rigorous biosecurity measures at the farm level. These efforts proved effective, as farms successfully declared themselves avian flu-free by August 2023, a status acknowledged by the World Organization for Animal Health (WOAH). Subsequently, poultry meat exports have experienced a substantial increase. The USDA estimates that poultry exports will likely rise by 18%, reaching 170 thousand metric tons in 2024, which is expected to drive growth in the poultry feed market.
- Since August 2024, the Argentine government has reduced the export tax on all poultry products and beef, setting the rate for poultry at 6.75%, down from the previous 9%. This measure is part of a broader initiative to deregulate the local economy by lowering tariffs on agricultural inputs and opening international markets, thereby stimulating poultry production. This policy change is expected to positively impact the poultry feed market in the country.
Ruminant Feed Dominates the Market
- According to the Food and Agriculture Organization, the dairy cattle stock in the country exceeds 1.56 million. The distribution of milk production is concentrated, with approximately 5 percent of dairy farms accounting for 24 percent of the country's dairy cows. The presence of large farms also indicates a higher use of compound feed in maintaining herd populations and well-being.
- Argentina dairy farmers heavily rely on domestically produced inputs, including feed and other supplies. Weather effects and supply chain disruptions have increased feed prices, intensifying financial pressure on farmers. This has compelled many to reduce production or seek additional capital, with some operating at a loss, thereby slowing the consumption of ruminant feed in the country. Consequently, milk production in Argentina has declined significantly in 2023 and 2024. According to the Ministry of Agriculture of Argentina, milk production totaled 11.3 million tons in 2023, and this figure is forecast to fall 7% as production from January 2024 to September 2024 has witnessed a 9.5% decline. As a result, ruminant feed, although dominating the segment among other animal types, is likely to experience slow growth until the country's dairy sector recovers.
- The Argentina Government has implemented various measures to support the dairy industry amid challenges. In December 2023, it reopened agricultural export registrations to increase exports and generate foreign currency revenue. Farmgate milk prices have increased by over 45% since the beginning of the year, and producer margins have improved, with profitability reaching 4.3% or higher. These developments indicate a potential recovery for Argentina's dairy industry despite initial economic challenges.
Argentina Compound Feed Industry Overview
In the Argentina Compound Feed Market, a handful of players command a significant share. Dominating the landscape are key players such as Archer Daniels Midland Company, United Animal Health, Alltech Inc, Land O'Lakes Inc (Purina Mills), and Cargill Inc. These industry leaders are making substantial investments to bolster and broaden their production facilities, emphasizing upgrades in both capacity and technology across a diverse product range.
Argentina Compound Feed Market Leaders
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Archer Daniels Midland Company
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United Animal Health
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Alltech Inc
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Land O'Lakes Inc (Purina Mills)
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Cargill Inc
*Disclaimer: Major Players sorted in no particular order
Argentina Compound Feed Market News
- March 2024: The Argentina Government initiated a program to certify certain livestock as carbon neutral. With this official certification in hand, farmers are now able to sell their livestock at premium prices. To obtain this coveted certification, farmers are implementing emission-reducing practices, including the use of specialized feeds.
- March 2023: The Ministry of Agriculture, Livestock and Fisheries of Argentina implemented Resolution 321/2023, establishing the Argentine Productive Strengthening Programme for the Cattle Sector (Corral Programme). This initiative allocates ARS 15 billion (USD 73 million) to support beef producers facing high animal feed prices due to drought conditions.
Argentina Compound Feed Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Meat Consumption and Exports
4.2.2 Expansion in Dairy Sector
4.2.3 Higher Focus on Animal Health
4.3 Market Restraints
4.3.1 Increasing Raw Material Prices
4.3.2 Shift Towards Vegan Diet
4.4 Porters Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Ingredient
5.1.1 Cereals
5.1.2 Cakes & Meals
5.1.3 By-products
5.1.4 Supplements
5.2 Animal Type
5.2.1 Ruminants
5.2.2 Poultry
5.2.3 Swine
5.2.4 Other Animal Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Archer Daniels Midland
6.3.2 DeKalb Feeds
6.3.3 Heiskell & Co.
6.3.4 Kent Feeds
6.3.5 Nutreco N.V.
6.3.6 Cargill Inc.
6.3.7 Land O Lakes Inc (Purina Mills)
6.3.8 Alltech Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Argentina Compound Feed Industry Segmentation
Compound feed is a mixture of raw materials and supplements fed to the livestock, sourced from either plant, animal, organic or inorganic substances or industrial processing, whether or not containing additives. While soybean, corn, barley, wheat, and sorghum are the most commonly used raw materials, vitamins, minerals, and amino acids are the most common additives blended to form compound feed. The Argentina Compound Feed Market is Segmented by Animal Type (Ruminants, Poultry, Swine, and Others), and by Ingredients (Cereal, Cakes & Meals, By-Products, and Supplements). The report offers market sizing and forecasts in terms of value (USD) for all the above segments.
| Ingredient | |
| Cereals | |
| Cakes & Meals | |
| By-products | |
| Supplements |
| Animal Type | |
| Ruminants | |
| Poultry | |
| Swine | |
| Other Animal Types |
Argentina Compound Feed Market Research FAQs
How big is the Argentina Compound Feed Market?
The Argentina Compound Feed Market size is expected to reach USD 10.41 billion in 2024 and grow at a CAGR of 5.63% to reach USD 13.69 billion by 2029.
What is the current Argentina Compound Feed Market size?
In 2024, the Argentina Compound Feed Market size is expected to reach USD 10.41 billion.
Who are the key players in Argentina Compound Feed Market?
Archer Daniels Midland Company, United Animal Health, Alltech Inc, Land O'Lakes Inc (Purina Mills) and Cargill Inc are the major companies operating in the Argentina Compound Feed Market.
What years does this Argentina Compound Feed Market cover, and what was the market size in 2023?
In 2023, the Argentina Compound Feed Market size was estimated at USD 9.82 billion. The report covers the Argentina Compound Feed Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Argentina Compound Feed Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Argentina Compound Feed Industry Report
Statistics for the 2024 Argentina Compound Feed market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Argentina Compound Feed analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
