Brazil Animal Feed Market - Forecasts from 2020 to 2025
The Brazil animal feed market is expected to grow at a compound annual growth rate of 3.29% over the forecast period to reach a market size of US$33.172 billion in 2025 from US$27.317 billion in 2019. For MY 2019/2020, CONAB forecasts that safrinha corn will account for 72% of total corn production. Inadequate infrastructure connections and the high price of transporting safrinha corn from the center-west have translated to the fact that livestock and poultry operators in southern Brazil are increasingly turning to corn imports for feed rations, which stands as stark contrast especially in a country that produces such great volumes of the grain. With regards to corn consumption during 2018/2019 total consumption is estimated at 67.5 MMT which is an increase in 5% from 2017/2018. Further, 2019/2020 consumption is forecast to grow by another 3%, to 69.5 MMT. Moreover, a great portion of the corn crop is consumed by Brazil’s large poultry sector. Further, it is expected that the poultry and pork sectors will witness increased feed consumption, due to the estimated growth of chicken meat production and pork meat production. Furthermore, egg production in Brazil has been growing. Sindiracoes, the Brazilian feed rations association has been reported to have estimated growth in feed demand for laying hens by 10% in 2018 and expects it to expand further [Source: USDA].
On the other hand, the poultry and livestock sector frequently imports corn from nearby Paraguay, as it is much less expensive to move corn overland from Paraguay than it is to transport corn domestically from high production areas in central Brazil. To facilitate imports, the government of Santa Catarina has been working with authorities in Argentina and Paraguay to plan for the construction of a “corn route” that would make it comparatively reasonable to procure Paraguayan corn by moving it across the sliver of Argentina that separates the two, rather than importing it via the direct Brazil-Paraguay land border in neighboring Parana state. More poultry and livestock operations are ramping up their use of dried distillers’ grains with solubles (DDGS), a protein-rich co-product of corn ethanol production. DDGS are reportedly competitive with soymeal as a feed ingredient, providing another option for the livestock and poultry sector and making corn ethanol even more profitable overall. On the other hand, the profitability of corn is more pronounced in southern Brazil, since producers in that region are significantly closer to the large swaths of the poultry and livestock sectors, as well as port facilities for exports. Also, according to the USDA, Domestic consumption of pork is likely to grow further in 2020 and reach nearly 3.1 million metric tons based on the assumption that the Brazilian economy will increase by over 2% next year. Additionally, producers will likely be able to keep feed costs under control thus making retail prices of pork more competitive. Moreover, Beef consumption in Brazil remains second to chicken meat around 40% of total animal protein consumption in Brazil [Source: USDA]. Thus, the aforementioned factors look favorable for the healthy growth of Brazil Animal Feed Market during the forecast period.
Segmentation
On the other hand, the poultry and livestock sector frequently imports corn from nearby Paraguay, as it is much less expensive to move corn overland from Paraguay than it is to transport corn domestically from high production areas in central Brazil. To facilitate imports, the government of Santa Catarina has been working with authorities in Argentina and Paraguay to plan for the construction of a “corn route” that would make it comparatively reasonable to procure Paraguayan corn by moving it across the sliver of Argentina that separates the two, rather than importing it via the direct Brazil-Paraguay land border in neighboring Parana state. More poultry and livestock operations are ramping up their use of dried distillers’ grains with solubles (DDGS), a protein-rich co-product of corn ethanol production. DDGS are reportedly competitive with soymeal as a feed ingredient, providing another option for the livestock and poultry sector and making corn ethanol even more profitable overall. On the other hand, the profitability of corn is more pronounced in southern Brazil, since producers in that region are significantly closer to the large swaths of the poultry and livestock sectors, as well as port facilities for exports. Also, according to the USDA, Domestic consumption of pork is likely to grow further in 2020 and reach nearly 3.1 million metric tons based on the assumption that the Brazilian economy will increase by over 2% next year. Additionally, producers will likely be able to keep feed costs under control thus making retail prices of pork more competitive. Moreover, Beef consumption in Brazil remains second to chicken meat around 40% of total animal protein consumption in Brazil [Source: USDA]. Thus, the aforementioned factors look favorable for the healthy growth of Brazil Animal Feed Market during the forecast period.
Segmentation
- By Type
- Fodder
- Forage
- Compound Feed
- By Livestock
- Swine
- Aquatic Animals
- Cattle
- Poultry
- Others
- By Source
- Organic
- Conventional
- By Production Systems
- Integrated
- Commercial mills
- By Form
- Liquid
- Dry
- By Raw Material
- Cereals & grains
- Wheat
- Maize
- Barley
- Oilseeds
- Soybean
- Rapeseed
- Others
- Pulses
- Others
1. INTRODUCTION
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. BRAZIL ANIMAL FEED MARKET, BY TYPE
5.1. Introduction
5.2. Fodder
5.3. Forage
5.4. Compound Feed
6. BRAZIL ANIMAL FEED MARKET, BY LIVESTOCK
6.1. Introduction
6.2. Aquatic Animals
6.3. Cattle
6.4. Poultry
6.5. Others
7. BRAZIL ANIMAL FEED MARKET, BY FORM
7.1. Introduction
7.2. Liquid
7.3. Dry
8. BRAZIL ANIMAL FEED MARKET, BY PRODUCTION SYSTEMS
8.1. Introduction
8.2. Integrated
8.3. Commercial Mills
9. BRAZIL ANIMAL FEED MARKET, BY SOURCE
9.1. Introduction
9.2. Organic
9.3. Conventional
10. BRAZIL ANIMAL FEED MARKET, BY RAW MATERIALS
10.1. Introduction
10.2. Cereals & grains
10.2.1. Wheat
10.2.2. Maize
10.2.3. Barley
10.3. Oilseeds
10.3.1. Soybean
10.3.2. Rapeseed
10.3.3. Others
10.4. Pulses
10.5. Others
11. COMPETITIVE ENVIRONMENT AND ANALYSIS
11.1. Major Players and Strategy Analysis
11.2. Emerging Players and Market Lucrativeness
11.3. Mergers, Acquisitions, Agreements, and Collaborations
11.4. Vendor Competitiveness Matrix
12. COMPANY PROFILES
12.1. Tyson Foods
12.2. Alltech
12.3. Cargill, Incorporated
12.4. Purina Animal Nutrition (Land O’Lakes)
12.5. Aurora Alimentos
12.6. Archer Daniels Midland
12.7. BASF SE
12.8. Hi-Pro Feeds
12.9. Kent Nutrition Group
12.10. De Heus
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. BRAZIL ANIMAL FEED MARKET, BY TYPE
5.1. Introduction
5.2. Fodder
5.3. Forage
5.4. Compound Feed
6. BRAZIL ANIMAL FEED MARKET, BY LIVESTOCK
6.1. Introduction
6.2. Aquatic Animals
6.3. Cattle
6.4. Poultry
6.5. Others
7. BRAZIL ANIMAL FEED MARKET, BY FORM
7.1. Introduction
7.2. Liquid
7.3. Dry
8. BRAZIL ANIMAL FEED MARKET, BY PRODUCTION SYSTEMS
8.1. Introduction
8.2. Integrated
8.3. Commercial Mills
9. BRAZIL ANIMAL FEED MARKET, BY SOURCE
9.1. Introduction
9.2. Organic
9.3. Conventional
10. BRAZIL ANIMAL FEED MARKET, BY RAW MATERIALS
10.1. Introduction
10.2. Cereals & grains
10.2.1. Wheat
10.2.2. Maize
10.2.3. Barley
10.3. Oilseeds
10.3.1. Soybean
10.3.2. Rapeseed
10.3.3. Others
10.4. Pulses
10.5. Others
11. COMPETITIVE ENVIRONMENT AND ANALYSIS
11.1. Major Players and Strategy Analysis
11.2. Emerging Players and Market Lucrativeness
11.3. Mergers, Acquisitions, Agreements, and Collaborations
11.4. Vendor Competitiveness Matrix
12. COMPANY PROFILES
12.1. Tyson Foods
12.2. Alltech
12.3. Cargill, Incorporated
12.4. Purina Animal Nutrition (Land O’Lakes)
12.5. Aurora Alimentos
12.6. Archer Daniels Midland
12.7. BASF SE
12.8. Hi-Pro Feeds
12.9. Kent Nutrition Group
12.10. De Heus
