Market Trends of South America Compound Feed Industry
This section covers the major market trends shaping the South America Compound Feed Market according to our research experts:
Shift in Consumer Preference Towards Animal Sourced Protein
Changing demographics and lifestyles of the consumers have resulted in preference towards meat, egg, and other animal products. According to the Organisation for Economic Co-operation and Development, Argentina witnessed one of the largest per capita beef consumption levels in the world, in 2019 the consumption was 39.7 kg as compared to 39 Kg in 2016 and also the poultry consumption was 38.2 kg which has remained almost the same for the last few years. On the other hand, poultry consumption is the highest in Brazil with the per capita consumption of 40.3Kg in 2019 as compared to 39.8Kg in 2018. This has led to the intensive production of livestock to meet the consumption demand. According to the Food and Agriculture Organisation, in 2018 the cattle and buffaloes population was 358.6 million as compared to 358.1 million in 2017 and the poultry population in 2016 was 2521.7 million units that increased to 2684.7 million units in 2018. Thus the rising livestock population and the concern about the diet requirements will drive the compound feed production in the region.
Brazil Dominates the Market
The feed segment in Brazil is the third-largest feed sector in the world. This is mainly attributed to the high production of raw materials in the country coupled with the enhancing consumption of meat within the country. According to the Alltech feed survey, in 2019, the total compound feed production from around 1,580 feed mills situated in Brazil amounted to 70 million metric ton out of which 32.1 million metric ton was for broilers, 17.0 million metric ton for pigs, 7.0 million metric ton for layers, 6.2 million metric ton for dairy cows, 2.6 million metric ton for beef, 2.8 million metric ton for pets, 0.59 million metric ton for Equine and 1.2 million metric ton for aqua. There are
The domestic consumption of feed in Brazil is very high as it is a hub for meat production, globally. According to the ITC Trade, in 2016, beef export amounted to 938.3 thousand metric tons which have raised to 1,356.6 thousand metric tons with a value of USD 5,610.76 million in 2019. China and Hong Kong continued to dominate as the top two destinations for Brazil's beef exports, accounting for 60.8% of total beef shipments in 2019.
