Market Trends of South America Feed Minerals Industry
This section covers the major market trends shaping the South America Feed Minerals Market according to our research experts:
Increased Industrial Livestock Production
The growing demand for livestock products has been driving significant changes on the supply side that are aimed at improving livestock product yields. New capital-intensive technologies have made the production of poultry and pig meat in industrial style production facilities possible across region, especially in countries where land is limited. While herd sizes are being optimized across production systems, such as dairy and poultry, the investments by large groups of small-scale farmers remaining sub-par is still a challenge. This limits the growth of livestock production. However, enabling policies by various governments are expected to go a long way in maintaining or enhancing the supply, in order to meet the demand. With the adoption of industrial-scale livestock production by a larger number of farmers, the production of feed additives like feed minerals needs to improve, in order to cater to this large production base of high-quality compound feed. This is expected to boost the feed minerals market during the forecast period.
Increased Meat Consumption
Increasing meat-based product consumption resulted in a surge in livestock production. According to the Chamber of Industry and Commerce of Meat and Derivatives of the Argentina Republic (CICCRA), in 2017, Argentina recorded one of the largest per capita beef consumption levels in the world, at 55.9 kg per head, and the poultry consumption was 39.9 kg per capita. According to the Food and Agriculture Organisation (FAO), in 2016, the poultry bird population was 116.8 million which increased to 119.3 million in 2018. Also, in 2016, the cattle and buffaloes population was 52.6 million heads which increased to 53.9 million heads in 2018. The positive outlook for the crop industry and the high demand for compound feed from the livestock industry provide great leverage for the feed ingredients industry in Brazil. The rising demand for meat products, expansion of the processed meat industry, and the growth in meat exports are the major demand driving factors in the market.
