South Africa Alfalfa Hay Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 336.86 Million |
| Market Size (2029) | USD 485.85 Million |
| CAGR (2024 - 2029) | 7.60 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Alfalfa Hay Market Analysis
The South Africa Alfalfa Hay Market size is estimated at USD 336.86 million in 2024, and is expected to reach USD 485.85 million by 2029, growing at a CAGR of 7.60% during the forecast period (2024-2029).
- Alfalfa hay has become critical to both dairy animal feed and poultry feed in recent years due to its crude protein content. For instance, South Africa imported 3,801 metric tons in 2023 from Namibia to meet the demand for alfalfa hay from other countries. Further, the relatively dry and warm climate, good water quality through irrigation, and fertile soils in the Northern Cape are ideal for producing high-quality lucerne hay. Therefore, dependence on alfalfa hay for animal feed is expected to continue to drive the South African alfalfa hay market during the forecast period.
- Moreover, South Africa's growing appetite for high-quality meat fuels the alfalfa hay market. For instance, according to the Sabinet African Journal, the citizens of South Africa consume around 4 million metric tons of meat annually, and poultry meat is the major contributor, accounting for 65% of total meat consumption. Farmers need nutritious feed to raise healthy livestock, and alfalfa hay delivers excellent protein and vitamins. This translates to better meat production and quality, further driving the demand for alfalfa hay.
- Furthermore, reducing grazing land for animals has led to an increased demand for forage crops, including alfalfa. For instance, according to Our World in Data, the grazing land in North America reduced from 357.2 million hectares in 2019 to 353 million hectares in 2023. These crops are essential for meeting the nutritional needs of livestock. As a result, the area dedicated to harvesting alfalfa has expanded in the region. South Africa has emerged as a market leader, driven by heightened demand caused by severe drought conditions in Africa. The country's high-quality and well-graded alfalfa is exported globally. The growing demand for premium feed is expected to fuel the market's growth during the forecast period.
South Africa Alfalfa Hay Market Trends
Increasing Meat Consumption is Boosting the Alfalfa Hay Market
- Meat consumption is a major factor responsible for the growth of the South African alfalfa market. The quality of meat products primarily drives the meat market in the country. Meat is the desired source of protein in major parts of the country. According to a journal named Appetite, published in 2023, meat consumption is often seen as a symbol of prosperity and success in urban areas. People associate it with affluence and social status. As a result, there is a strong preference for meat-based dishes. Furthermore, the Organisation for Economic Co-operation and Development (OECD) reported that South Africa consumed 2,392 thousand metric tons more poultry meat in 2022 than it did the year before, or a rise compared to the previous year. Therefore, the rising demand for high-quality meat puts pressure on South African farmers to produce alfalfa hay.
- Alfalfa is considered one of the finest products in the international market owing to a good grading system developed by the National Lucerne Trust (NLT). The high demand for quality dairy and meat products is increasing the demand for quality feed, which, in turn, is driving the market for alfalfa, as farmers are choosing good-quality forage for cattle to produce high-quality animal products. Additionally, the increasing demand for meat and meat-based products, including processed burgers and sausages, is anticipated to impact the food service industry significantly. This influence is expected to be particularly pronounced in the quick-service restaurant segment.
Increased Global Demand for South African Alfalfa
- South Africa's alfalfa is known globally because of its quality and grading. According to the ITC Trade Map data, South Africa exported 151.6 thousand metric tons of alfalfa pellets globally in 2023. Also, the South African lucerne is graded number 1, as certified by the National Lucerne Trust (NLT) under the National Lucerne Trust's new lucerne hay quality index (NLQI) used to grade the quality of the lucerne depending on the amount of protein and fiber.
- The major importers of South African alfalfa pellets are Saudi Arabia, the United Arab Emirates, Saudi Arabia, China, and Botswana. South Africa exports a majority of 64.7% of its alfalfa pellets to the United Arab Emirates. The demand for alfalfa hay is increasing significantly in the United Arab Emirates due to changing production practices in the UAE dairy industry.
- Modern dairy farmers in the United Arab Emirates and worldwide are raising an increasing number of dairy cows, and they prefer using South African alfalfa in cattle feed. According to the UAEStat, the total population of livestock is on the rise from 100,914 in 2019 to 112,370 in 2021. Thus, the rising global demand for quality and protein-rich alfalfa hay from the country is expected to benefit the South African market shortly.
South Africa Alfalfa Hay Industry Overvview
The South African alfalfa hay market is extremely fragmented, with some key players including AL Dahra ACX Inc., Alphaalfa (Pty) Ltd, General Overseas Traders Pty Ltd, Agritrade Global(Pty) Ltd, and Grains For Africa (Pty) Ltd. Increased livestock farming has fueled the demand for alfalfa hay suitable for different types of animals. This has prompted companies to invest in developing new products to capture larger market shares. Additionally, companies are broadening their product portfolio to meet the demand for alfalfa hay for different species of animals. Furthermore, as the global demand for quality lucerne is rising, the major players in the country are investing in technology to ensure quality and cost-effectiveness.
South Africa Alfalfa Hay Market Leaders
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Alphaalfa (Pty) Ltd
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Al Dahra ACX Inc
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Agritrade Global(Pty) Ltd
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General Overseas Traders Pty Ltd
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Grains For Africa (Pty) Ltd
*Disclaimer: Major Players sorted in no particular order
South Africa Alfalfa Hay Market News
- April 2024: According to the Department of Agriculture, Land Reform, and Rural Development, lucerne hay production during 2022-23 increased by 327,000 metric tons compared to the previous year. South Africa exports alfalfa to Saudi Arabia, the United Arab Emirates, China, Botswana, and Lesotho.
- December 2022: Terradam expanded its business by constructing a new depot in Jan Kempdrop in the Northern Cape, South Africa. The depot spans an area of 60,000 sq. m consisting of a National Lucerne Trust-certified quality laboratory, warehouses, weighbridge, and under-roof storage.
South Africa Alfalfa Hay Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Demand for Meat Consumption is Boosting the Alfalfa Hay Market
4.2.2 Decreasing Grazing Area is Driving the Alfalfa Hay Production
4.2.3 Growing Livestock Population is Fueling the Alfalfa Hay Consumption
4.3 Market Restraints
4.3.1 High Cost of Production Compared to Other Forage Crops
4.3.2 Adverse Climatic Conditions and Invasion of Locusts
4.4 Porter's Five Forces 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 Application
5.1.1 Meat/Dairy Animal Feed
5.1.2 Poultry Feed
5.1.3 Horse Feed
5.1.4 Other Applications
5.2 Type
5.2.1 Bales
5.2.2 Pellets
5.2.3 Cubes
6. COMPETITIVE LANDSCAPE
6.1 Market Share Analysis
6.2 Most Adopted Strategies
6.3 Company Profiles
6.3.1 Alphaalfa (Pty) Ltd
6.3.2 Al Dahra ACX Inc.
6.3.3 Agritrade Global(Pty) Ltd
6.3.4 Hulmac Trading SA Pty Ltd
6.3.5 General Overseas Traders Pty Ltd
6.3.6 Terradam
6.3.7 Cherangani Trade And Invest 102 (Pty) Ltd (Multi Feeds)
6.3.8 RCL Foods Consumer (Pty) Ltd (Epol Equine)
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
South Africa Alfalfa Hay Industry Segmentation
Alfalfa hay is obtained from the alfalfa plant, scientifically known as Medicago sativa. Alfalfa, also called lucerne, is a perennial flowering plant in the legume family Fabaceae.
The South African alfalfa hay market is segmented by type (bales, pellets, and cubes) and application (meat/dairy animal feed, poultry feed, horse feed, and other applications).
The report offers the market size and forecasts in value (USD) for all the above segments.
| Application | |
| Meat/Dairy Animal Feed | |
| Poultry Feed | |
| Horse Feed | |
| Other Applications |
| Type | |
| Bales | |
| Pellets | |
| Cubes |
South Africa Alfalfa Hay Market Research FAQs
How big is the South Africa Alfalfa Hay Market?
The South Africa Alfalfa Hay Market size is expected to reach USD 336.86 million in 2024 and grow at a CAGR of 7.60% to reach USD 485.85 million by 2029.
What is the current South Africa Alfalfa Hay Market size?
In 2024, the South Africa Alfalfa Hay Market size is expected to reach USD 336.86 million.
Who are the key players in South Africa Alfalfa Hay Market?
Alphaalfa (Pty) Ltd, Al Dahra ACX Inc, Agritrade Global(Pty) Ltd, General Overseas Traders Pty Ltd and Grains For Africa (Pty) Ltd are the major companies operating in the South Africa Alfalfa Hay Market.
What years does this South Africa Alfalfa Hay Market cover, and what was the market size in 2023?
In 2023, the South Africa Alfalfa Hay Market size was estimated at USD 311.26 million. The report covers the South Africa Alfalfa Hay Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Alfalfa Hay Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Alfalfa Hay Industry Report
Statistics for the 2024 South Africa Alfalfa Hay market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Alfalfa Hay analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
