Brazil Compound Feed Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Brazil Compound Feed Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for compound feed in Brazil is projected to register a CAGR of 5.1%, during the forecast period. 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 domestic consumption of feed in Brazil is very high as it is a hub for meat production. According to the AllTech feed survey, There are around 1,580 feed mills situated in Brazil in 2019. Though the country has lagged in 2018, it has enhanced its feed sector by 3%, in 2019. This is mainly due to the increased grain production and the change of government within the country.

Key Market TrendsIncreased Demand For Compound Feed

According to AllTech feed survey, In 2019, the total compound feed production is 70 million metric ton out of which 32.1 million metric ton is for broilers, 17.0 million metric ton for swine, 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. The compound feed market in Brazil has faced few challenges in 2018, such as increasing food costs, higher grain prices, and agricultural resources, which are initiated by the United States and China. The tie breaks between the United States and Brazil have affected the compound feed market in Brazil. Demand for the high-quality compound feed from the livestock industry, due to increased industrial production of meat and dairy products has elicited the growth in consumption of compound feed and feed additives. The raw materials used for compound feed production, such as maize, barley, soybean, are used for human consumption and production of ethanol. In this scenario, the feed industry competes with the food industry for raw materials.

Increased Meat Consumption

The demand for the higher value and quality foods, such as meat, eggs, and milk, has increased compared to plant-originated foods, such as cereals, owing to the rising demand for greater food varieties and protein intake. These changes in consumption, together with sizeable population growth, have led to large increases in the total demand for animal products in many developing countries. Furthermore, this trend is expected to continue in the coming years. Due to the decline in prices of meat and meat products, developing countries are beginning to consume a large quantity of meat, at a much lower level of the gross domestic product than industrialized countries did two to three decades back. Urbanization has led to increased demand for meat and milk products in cities compared to the rural areas. Cities have varied diets, rich in animal protein and fat. Studies showed that compound feeds have increased the weight of broilers by 30%, as compared to traditional feeds. Thus, the rising demand for Meat products may boost the global compound feed market, during the forecast period.

Competitive Landscape

Alltech, Cargill, Kent Nutrition Group, Land O'Lakes, Purina Animal Nutrition, Tyson Foods (broiler), Smithfield Foods, Industrias Bachoco, and J.D. Heiskell & Co are some of the major players, together accounted for more than 47% of the market share in the South America Compound Feed Market. Collectively these companies are making significant investments to upgrade and expand their production plants in terms of capacity and technology for various products. These investments are being made in terms of mergers and acquisition of small and regional players, providing technical support to small players, and expanding the research and development capabilities of the respective companies.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Archer Daniels Midland
DeKalb Feeds
Heiskell & Co.
Kent Feeds
Nutreco
Cargill Inc.
Land O Lakes Purina
Alltech Inc.

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