Market Trends of Brazil Maize Industry
This section covers the major market trends shaping the Brazil Maize Market according to our research experts:
Increasing Demand for Animal-based Protein Sources
Population growth, rising incomes, and urbanization in the country have led to a surge in meat consumption. Consumption of animal protein is directly correlated to the consumption of milk, meat, and eggs, which is increasing as part of staple foods. The pressure on the livestock industry has intensified in recent years to meet the country's rising demand for meat and high-value animal protein.
Maize is one of the key ingredients of almost every type of compound feed for animals, such as ruminants, poultry swine, and aquaculture. Hence, the rising demand for animal-based protein sources in the country will likely drive the market for maize over the forecast. For instance, according to USDA data, 9,588 thousand metric tons of chicken was consumed in Brazil in 2018, which increased and reached 9,780 thousand metric tons in 2022.
Therefore, the growing demand for animal-based protein sources indirectly contributes to the growth of the maize market, as maize is one of the primary constituents of all types of feeds prepared for animals.
Growth in Exports is Driving the Maize Production
According to the FAO, Brazil's maize production and exports have undergone a tremendous boom over the past few years. Total production increased from 82,366,531 metric ton in 2018 to 88,461,943 metric ton in 2021. This output growth has enabled the country to increase its maize exports continuously.
The Brazilian economy is heavily dependent on agricultural exports, which may positively impact the country's maize exports. This increasing export opportunity encourages maize production, positively impacting the market's growth.
Brazil has been advancing the export of various commodities to many countries. It is one of the world's largest producers of agricultural and food products, leading the world in several commodities production. Also, as per ITC Trade Map, Brazil ranked fourth in the list of top 10 exporters of maize in 2021.
Brazil has seen good results in commodity exports, including maize. The increasing exports also indicate the high demand for the product worldwide. The country's government is taking several initiatives to boost maize exports, which can be witnessed by the crop's increasing export value. For instance, as per ITC Trade Map, the export value of maize was USD 4,109,859 thousand in 2018, which increased and reached USD 4,188,846 thousand in 2021.
