Market Trends of Argentina Feed Additives Industry
Expansion in Animal Production
Increasing meat-based product consumption resulted in a surge in livestock production. According to the Chamber of Industry and Commerce of Meat and Derivatives of the Argentina Republic (CICCRA), in 2017, Argentina recorded one of the largest per capita beef consumption levels in the world, at 55.9 kg per head, and the poultry consumption was 39.9 kg. According to the Food and Agriculture Organisation (FAO), in 2016, the poultry bird population was 116.8 million which increased to 119.3 million in 2018. The ruminant segment is the leading segment in Argentina's feed additives market, accounting for 49.3% of the market share in 2022. Argentina is one of the significant beef exporters in South America due to the low meat production costs, and the use of feed additives is essential to boost productivity and meet the increasing demand for meat and milk. The poultry and swine segments accounted for 30.9% and 14.5% of the Argentine feed additive market, respectively in 2022, due to the increasing population of these animals and the importance of feed additives in their growth and development. To meet the demand, meat and milk producers tend to increase their supply by boosting productivity. Feed additives are one of the ways by which meat and milk production can be increased.
Attractive Export Market for Meat is Driving the Market
The meat production industry is moving towards consolidation to increase meat production with reduced land usage. According to the ITC Trade, in 2019, the poultry meat export was valued at USD 414,624 thousand as compared to USD 237,602 thousand in 2016 and is expected to grow further. China is the major export destination for the Argentina meat market with a share of 50.1%. In 2018, Argentina witnessed a large shipment of its exported meat destroyed by China, due to antibiotics contamination, which will force the country to reduce feed antibiotics, thereby, fuelling the market for feed prebiotics in the country.
