Market Trends of Argentina Compound Feed Industry
This section covers the major market trends shaping the Argentina Compound Feed Market according to our research experts:
Increased Consumption of Meat Products
The demand for higher value and quality foods, such as meat, eggs, and milk, is increasing in the country 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. According to the United States Department of Agriculture, the Poultry business in Argentina is growing by 10% annually, primarily focused on exportation as the cost of chicken meat in Argentina is the cheapest compared to the other countries in the region. The poultry industry accounts for the maximum share in the Argentinian compound feed market, and it also utilizes most of the feed. The rising demand for animal products and processed meat has created an opportunity for feed manufacturers to enhance animal productivity. An increase in demand for various animal products, such as milk, dairy products, meat products, eggs, and other non-food items, has led to the growth in the usage of feed additives, thereby, boosting the growth of compound feed in the animal feed market.
Industrialization of Livestock Sector
According to FAO in 2018, meat production valued at 5930.063 thousand tonnes up from 5397.908 thousand tonnes in 2016. According to the AllTech feed survey, The country is equipped with 900 feed mills with the total compound feed production of 21 million metric tons in 2019. out of which 5.5 million metric ton is for broilers, 2.9 million metric ton for pigs, 1.9 million metric ton for layers, 4.9 million metric ton for dairy cows, 5.2 million metric ton for beef, 0.7 million metric ton for pets, 0.009 million metric ton for Equine and 0.004 million metric ton for aqua. According to the Food and Agriculture Organization, About 40% of the corn available in the country is used in the feed industry. The ruminants in Argentina are still following the method of grazing, However, the country is changing to a more intensive model as the revenue associated with the land in the country is increasing.
