Market Trends of South America Feed Premix Industry
This section covers the major market trends shaping the South America Feed Premix Market according to our research experts:
Growth in Compound Feed Production
The demand for high-quality compound feed from the livestock industry due to increased industrial production of meat and dairy products has triggered an increase in the consumption of the compound feed and feed additives. According to the Food and Agriculture Organization (FAO), in 2017, the cattle population in the region was 358.17 million that increased to 358.61 million in 2018. This growing population is creating demand for feed. According to the Alltech feed survey, in 2019 Argentina produced compound feed amounting to 21 million metric tons of which 5.5 million metric tons was broiler feed and 5.1 million metric tons was beef feed. Furthermore in Brazil, compound feed production amounted to 70 million metric tons of which 32.1 million metric tons was a broiler feed. Large-scale producers and meat manufacturers use additive premixes to ensure a steady supply of nutrients to the animals and to enhance production and performance. Thus, the rise in demand for feed and feed additives is driving the market for feed premixes.
Brazil Dominates the Market
The need for increasing meat production capacity to cater to the local demand and export market has given a boost to the feed industry in the country. The feed premix market is expected to grow with increased demand for meat, as Brazil is one of the major exporters of meat. According to ITC Trade, in 2016 Brazil exported bovine meat that accounted for USD 3,587.6 million that has increased significantly to reach USD 5,610.76 million in 2019. China, Hongkong, and Egypt are the major export destinations for Brazil with a share of 47.7%, 13.1%, and 8.2% in 2019. Thus with the rising opportunity in the export market, the production in the country is increasing which in turn is driving the market for feed premix during the study period. This has led to leading players to invest more in the country. For instance, in 2016 June MiXscience formed a strategic alliance with Brazilian feed additive and premix player, Salus Group. The alliance will help the company to improve the feed additive portfolio and premix R&Ds.
