Brazil Compound Feed Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.10 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Brazil Compound Feed Market Analysis
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 enhanced consumption of meat. The domestic consumption of feed in Brazil is very high as it is a hub for meat production. As corn and soybean meal prices continue to rise and put pressure on the animal feed industry plays a critical role in relieving financial pressure and instability, while ensuring a nutritious and complete diet for the animals.
- The Brazilian Association of Animal Protein (ABPA) and the Union of Industries of Poultry Products of the State of Paranaa both organizations has sent a list of demands to the federal government of Brazil for asking for immediate support for Brazilian poultry and pork producers as the industry is confronted with a spike in feed prices never seen before in last year soybean prices have increased by 73%, and corn 140% and both are representing about 51% of production costs in poultry farms and the current situation is putting pressure on the industry.
- Some factors driving market are increasing livestock population worldwide, rising widespread of animal diseases, and increased population especially in the developing countries will encourage the growth of the compound feed market in the coming years. In addition to this, increasing demand for good quality dairy and meat products, rapid increase in industrialization and focus of the advancements are other important factors that are anticipated to boost the compound feed market growth.
Brazil Compound Feed Market Trends
This section covers the major market trends shaping the Brazil Compound Feed Market according to our research experts:
Demand for Quality Compound Feed to boost Balanced Diet in Animals
Brazil is well suited for specialist markets, such as feed additives and ingredients from the U.S. animal feed industry, owing to the country's expanding livestock, poultry, and aquaculture sectors. Feed additives and ingredients play a crucial role in reducing financial pressure and volatility while ensuring that the animals receive a balanced and nutritious diet when the price of maize and soybean meal rises and puts pressure on the animal feed sector.
According to the AllTech feed survey, In 2021, the total compound feed production is 80.0 million metric ton which increased from the previous year's production of 78.4 million metric ton in 2020. The compound feed market in Brazil faced a few challenges, 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 a high-quality compound feed from the livestock industry, due to increased industrial production of meat and dairy products has elicited the growth in the consumption of compound feed and feed additives. The raw materials used for compound feed production, such as maize, barley, and soybean, are used for human consumption and the production of ethanol. In this scenario, the feed industry competes with the food industry for raw materials. All above factors are driving the compound feed segment in the industry and will anticipated to grow during the forwcast period.
Increased Meat Consumption is driving Compound Feed Market
The demand for 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. Brazil, the world's top halal chicken exporter, sold 1.915 million ton of chicken meat to the Islamic market in 2021 which will boost the sector in the country in forecast period.
Chicken meat is the most exported from Brazil and is present in a total of 158 countries worldwide. The largest consumer of Brazilian chicken is now Saudi Arabia, which holds 17% of exports, followed by China with 11.5%. According to the Brazilian Association of Animal Proteins (ABPA), Brazilian production of chicken meat may grow by 1% in 2022 compared to 2021, reaching 14.5 million ton. In 2022, Brazilian poultry and pig meat production will increase, but exports will increase by 5% for broilers, while pork meat shipments may decline by 3%. Beef consumption in Brazil has dropped while consumers are focusing on cheaper protein alternatives such as chicken meat and eggs. Furthermore, this trend is expected to continue in the coming years.
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.
Brazil Compound Feed Industry Overview
The Brazil compound feed market is highly consolidated with Alltech, Cargill, Land O'Lakes, Nutreco N.V., and Archer Daniels Midland Company, which are some of the major players, together accounting 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 acquisitions of small and regional players, providing technical support to small players, and expanding the research and development capabilities of the respective companies.
Brazil Compound Feed Market Leaders
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Cargill inc.
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LAND O’ LAKES INC. (PURINA MILLS)
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ALLtech inc.
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Archer Daniels Midland Company
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Nutreco N.V
*Disclaimer: Major Players sorted in no particular order
Brazil Compound Feed Market News
- October 2022: Cargill has acquired Integral Animal Nutrition, a cattle feed producer in Brazil with this the company will purchase 100 percent of Integral's assets, including a production plant located in Brazil, a portfolio of products ranging from Free Choice minerals to premixes, will help the company further develop its Free Choice Mineral and premix capabilities to better serve its customers across the country's mid-west region.
- January 2022: Archer Daniels Midland Co. has announced the opening of its Aquaculture Innovation Lab at the Animal Nutrition Technology Center (ANTC) in Illinois and with this the company laboratory extends ADM's international research and development capabilities to a new region, building on existing aquaculture research facilities located in Brazil, Mexico, and Vietnam.
Brazil Compound Feed Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions & Market Definitions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porters Five Force Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Animal Type
- 5.1.1 Ruminants
- 5.1.2 Poultry
- 5.1.3 Swine
- 5.1.4 Aquaculture
- 5.1.5 Other Animal Types
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5.2 Ingredient
- 5.2.1 Cereals
- 5.2.2 Cakes & Meals
- 5.2.3 By-products
- 5.2.4 Supplements
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Archer Daniels Midland
- 6.3.2 DeKalb Feeds
- 6.3.3 Heiskell & Co.
- 6.3.4 Kent Feeds
- 6.3.5 Nutreco
- 6.3.6 Cargill Inc.
- 6.3.7 Land O Lakes Purina
- 6.3.8 Alltech Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Brazil Compound Feed Industry Segmentation
Compound feed is a mixture of raw materials and supplements fed to the livestock, sourced from either plant, animal, organic or inorganic substances, or industrial processing, whether or not containing additives. While soybean, corn, barley, wheat, and sorghum are the most commonly used raw materials, vitamins, minerals, and amino acids are the most common additives blended to form compound feed. The Brazil Compound Feed Market is Segmented by Animal Type (Ruminants, Poultry, Swine, Aquaculture, and Others), Ingredients (Cereal, Cakes & Meals, By-Products, and Supplements). The report offers market sizing and forecasts in terms of value (USD million) for all the above segments.
| Animal Type | Ruminants |
| Poultry | |
| Swine | |
| Aquaculture | |
| Other Animal Types | |
| Ingredient | Cereals |
| Cakes & Meals | |
| By-products | |
| Supplements |
Brazil Compound Feed Market Research FAQs
What is the current Brazil Compound Feed Market size?
The Brazil Compound Feed Market is projected to register a CAGR of 5.10% during the forecast period (2024-2029)
Who are the key players in Brazil Compound Feed Market?
Cargill inc., LAND O’ LAKES INC. (PURINA MILLS), ALLtech inc., Archer Daniels Midland Company and Nutreco N.V are the major companies operating in the Brazil Compound Feed Market.
What years does this Brazil Compound Feed Market cover?
The report covers the Brazil Compound Feed Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Brazil Compound Feed Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Brazil Compound Feed Industry Report
Statistics for the 2024 Brazil Compound Feed market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Compound Feed analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
