Market Trends of South America Swine Feed Industry
Increasing Pork demand in the Region
Brazil stands at the forefront of pork production in South America. Data from the Brazilian Institute of Geography and Statistics (IBGE) and COMEX STAT reveals that in 2023, Brazil's pork exports rose by 9.8% from the previous year, climbing from 1.10 million metric tons to 1.20 million metric tons. The affordability of pork, compared to other meats, significantly boosts its consumption. Moreover, consumers are drawn to its palatability, fat content, and texture. With a burgeoning middle class and evolving consumer preferences, pork demand is on the rise. Consequently, the growing popularity of pork in the region is poised to bolster the swine feed market during the forecast period.
Argentina has a growing pork production industry. Key regions for pork production in Argentina include Cordoba, Buenos Aires, Santa Fe, and San Luis. Data from the Argentinean Ministry of Agriculture, Livestock, and Fisheries indicates that 2022 pork production reached 723,388 metric tons, marking a 3.9% increase from the previous year. This rising appetite for pork is driving the expansion of the country's swine feed market. South American governments are bolstering the swine sector through subsidies and policies aimed at boosting productivity. For example, the Argentine government is channeling investments into the pig industry, viewing it as a value-added opportunity for local corn and soybean producers. Thanks to this governmental support, the pork industry is now adopting advanced measures, such as installing tunnel ventilation systems to combat summer heat.
Brazil has the Largest Market for Swine Feed in the Region
Among the South American countries, Brazil is not only the leading producer but also the leading exporter of live swine. Since pig meat quality is a major criterion in determining export value, Brazilian farmers prefer high-quality feed for growing their pigs. Export value of live swine increased from USD 1,628 in 2022 to USD 4,591 in 2023, as per ITC Trade Map. Rice bran, broken rice, maize, soya beans, cassava, and vegetables are commonly used in pig feed ingredients in the country. Export of swine is a significant part of the economy in the country and thus, investment of swine feed for producing high-quality hog can be expected to increase further during the forecast period.
The demand for pork in Brazil is increasing, leading to a rise in pig slaughter rates. According to the Brazilian Institute of Geography and Statistics (IBGE) and COMEX STAT, 56.8 million pigs were slaughtered in 2023, a 1.5% increase from the previous year's 56.0 million. In response, swine producers have expanded piglet production to meet the growing demand for pork. Additionally, Brazil's pig production costs are lower compared to other countries in the region. The Group for Comparison of Production Costs in Pig Farming (InterPig network) reports that Brazil has the lowest pig production costs among 17 significant producing countries.
