South America Forage Seed Market Size

The South America Forage Seed Market is projected to experience growth driven by factors such as increased livestock populations, rising meat consumption, and government support for forage crop cultivation. Brazil stands out as the largest market due to its demand for beef production, while Argentina is expected to grow significantly due to its high beef consumption. Although the Rest of South America holds a smaller market share, there is potential for growth, particularly in commercial centers like Colombia and Venezuela. The market's expansion is supported by the cultivation of hybrid and GM varieties, which offer higher productivity and require fewer inputs.

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Market Size of south america forage seed Industry

South America Forage Seed Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 541.9 Million
svg icon Market Size (2030) USD 695.2 Million
svg icon Largest Share by Breeding Technology Hybrids
svg icon CAGR (2024 - 2030) 4.24 %
svg icon Largest Share by Country Brazil

Major Players

South America Forage Seed Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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South America Forage Seed Market Analysis

The South America Forage Seed Market size is estimated at 541.9 million USD in 2024, and is expected to reach 695.2 million USD by 2030, growing at a CAGR of 4.24% during the forecast period (2024-2030).

541.9 Million

Market Size in 2024 (USD)

695.2 Million

Market Size in 2030 (USD)

5.12 %

CAGR (2017-2023)

4.24 %

CAGR (2024-2030)

Largest Market by Crop

13 %

value share, Alfalfa, 2023

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Alfalfa is one of the major forages in high demand in the region by dairy farmers for animal feed due to its high nutritional value, short duration, and high palatability.

Largest Market by Country

75.65 %

value share, Brazil, 2023

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The increasing cattle population, government support for livestock farmers, and higher seed replacement rates aid Brazil's high market share.

Fastest-growing Market by Crop

5.46 %

Projected CAGR, Forage Corn, 2024-2030

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The high demand for alfalfa is due to its high protein content. It can be used as fresh fodder as well as hay. It can be harvested 10-12 times per crop season.

Fastest-growing Market by Country

4.58 %

Projected CAGR, Argentina, 2024-2030

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The increasing demand for alfalfa hay among cattle farmers and the rapid growth of GMO (herbicide-tolerant) alfalfa cultivation are driving the country's fastest growth.

Leading Market Player

11.91 %

market share, Bayer AG, 2022

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The company offers high-yielding hybrid forage crops, mainly alfalfa and forage corn. It has collaborated with multinational companies for seed genetic improvement programs.

Increasing forage crop cultivation area and cattlemen preferring non-transgenic seeds with ethanol processing are expected to help in increasing the demand for hybrid seeds in the region

  • In South America, the area under the cultivation of forage crops in 2022 was 8.7 million hectares, which was about 7.8 million hectares in 2017. It is an increase of 11.5% from 2017 to 2022 due to an increase in the demand for animal feed.
  • In 2022, South America accounted for 9.3% of the global forage seed market due to the increase in the production for export to neighboring countries as a raw material for feed production.
  • Brazil is the largest user of hybrid seeds for forage cultivation, which accounted for 59.7% of the region's hybrid forage production area in 2022. However, transgenic hybrid penetration is more prevalent in Argentina.
  • Some cattlemen have a preference for forage crops produced using non-transgenic hybrid seeds because they are easily digestible by the cattle. Corn silage is being used for corn ethanol production in Brazil, which led to forage corn becoming the fastest-growing crop in the region.
  • The share of forage crops cultivated using open-pollinated varieties and hybrid derivative seeds in the country was 26.1% in 2022. It is largely contributed by native grasses of the Brachiaria genus.
  • The Brachiaria grasses are grown either wild or as cover crops or rotation crops for extra for farmers between two seasons, which helps in nutrient cycling. Therefore, OPVs are expected to grow over the forecast period owing to those factors. However, commercial cultivation is done by hybrids and GM varieties that require lesser inputs and more productivity, which is expected to register a CAGR of 2.4% in South America during the forecast period.
South America Forage Seed Market

Brazil holds the largest share of the South American forage seed market due to government support programs for forage cultivation and robust demand from the livestock industry

  • Brazil is the largest country in the South American forage seed market due to the increased demand for beef production, the growing livestock population, and government support programs for the cultivation of forage crops.
  • According to the USDA, beef production in Brazil is estimated to grow from 2023 to 2030 due to the increasing availability of cattle and improved margins for slaughterhouses. For instance, the number of cattle in Brazil was 372.8 million in 2021, an increase of 4.2% from 2017. The increasing livestock will likely increase the demand for meat in the country and boost the production of forage crops.
  • Argentina is anticipated to register a CAGR of 4.6% during the forecast period as it is globally the second-highest consumer of beef, with a yearly consumption of 55 kg per person. In 2019, Argentina had about 400 slaughter plants. Over the past several years, industry investments have grown to increase slaughter capacity due to increasing consumption. Therefore, the demand for feed is expected to increase and boost the market's growth in South America during the forecast period.
  • The Rest of South American market held the smallest share in the region because of the low-quality seeds available in these countries, but the Lianos of Colombia and Venezuela are major commercial centers for livestock in South America. Therefore, the demand for seeds is anticipated to grow during the forecast period.
  • Therefore, government support in funding the cultivation of forage crops, an increase in the livestock population, and increasing meat consumption in the region may boost the growth of the forage seed market during the forecast period.

South America Forage Seed Industry Segmentation

Hybrids, Open Pollinated Varieties & Hybrid Derivatives are covered as segments by Breeding Technology. Alfalfa, Forage Corn, Forage Sorghum are covered as segments by Crop. Argentina, Brazil are covered as segments by Country.

  • In South America, the area under the cultivation of forage crops in 2022 was 8.7 million hectares, which was about 7.8 million hectares in 2017. It is an increase of 11.5% from 2017 to 2022 due to an increase in the demand for animal feed.
  • In 2022, South America accounted for 9.3% of the global forage seed market due to the increase in the production for export to neighboring countries as a raw material for feed production.
  • Brazil is the largest user of hybrid seeds for forage cultivation, which accounted for 59.7% of the region's hybrid forage production area in 2022. However, transgenic hybrid penetration is more prevalent in Argentina.
  • Some cattlemen have a preference for forage crops produced using non-transgenic hybrid seeds because they are easily digestible by the cattle. Corn silage is being used for corn ethanol production in Brazil, which led to forage corn becoming the fastest-growing crop in the region.
  • The share of forage crops cultivated using open-pollinated varieties and hybrid derivative seeds in the country was 26.1% in 2022. It is largely contributed by native grasses of the Brachiaria genus.
  • The Brachiaria grasses are grown either wild or as cover crops or rotation crops for extra for farmers between two seasons, which helps in nutrient cycling. Therefore, OPVs are expected to grow over the forecast period owing to those factors. However, commercial cultivation is done by hybrids and GM varieties that require lesser inputs and more productivity, which is expected to register a CAGR of 2.4% in South America during the forecast period.
Breeding Technology
Hybrids
Non-Transgenic Hybrids
Transgenic Hybrids
Herbicide Tolerant Hybrids
Other Traits
Open Pollinated Varieties & Hybrid Derivatives
Crop
Alfalfa
Forage Corn
Forage Sorghum
Other Forage Crops
Country
Argentina
Brazil
Rest of South America
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South America Forage Seed Market Size Summary

The South America forage seed market is experiencing a steady expansion, driven by increasing demand for animal feed and the cultivation of forage crops. The region's market is characterized by a significant area dedicated to forage crop cultivation, with Brazil and Argentina leading in production. Brazil, in particular, is the largest user of hybrid seeds for forage cultivation, benefiting from government support and a growing livestock population. The market is also influenced by the preference for non-transgenic hybrid seeds among some cattlemen due to their digestibility. The use of corn silage for ethanol production in Brazil has contributed to the rapid growth of forage corn, while the Brachiaria genus grasses play a crucial role in nutrient cycling as cover and rotation crops. The market's growth is further supported by the increasing demand for beef production, particularly in Brazil and Argentina, which are major consumers of beef globally.

The South American forage seed market is fragmented, with several key players such as Advanta Seeds - UPL, Bayer AG, Corteva Agriscience, Deutsche Saatveredelung AG, and DLF holding significant shares. The market is witnessing a shift towards genetically modified and herbicide-tolerant alfalfa varieties, which are being developed to address challenges like weed infestations and changing climatic conditions. The demand for these advanced traits is expected to continue growing, driven by the need for disease resistance and adaptability. The acquisition of DuPont’s Pioneer Alfalfa seed business by S&W Seed and collaborations for genetic development, such as the one between Barenbrug and Uruguay’s National Institute for Agricultural Research, highlight the ongoing efforts to enhance forage seed varieties in the region. As the market evolves, the focus on improving seed traits and expanding cultivation areas is anticipated to sustain the growth trajectory of the forage seed market in South America.

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South America Forage Seed Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Breeding Technology

      1. 1.1.1 Hybrids

        1. 1.1.1.1 Non-Transgenic Hybrids

        2. 1.1.1.2 Transgenic Hybrids

          1. 1.1.1.2.1 Herbicide Tolerant Hybrids

          2. 1.1.1.2.2 Other Traits

      2. 1.1.2 Open Pollinated Varieties & Hybrid Derivatives

    2. 1.2 Crop

      1. 1.2.1 Alfalfa

      2. 1.2.2 Forage Corn

      3. 1.2.3 Forage Sorghum

      4. 1.2.4 Other Forage Crops

    3. 1.3 Country

      1. 1.3.1 Argentina

      2. 1.3.2 Brazil

      3. 1.3.3 Rest of South America

South America Forage Seed Market Size FAQs

The South America Forage Seed Market size is expected to reach USD 541.86 million in 2024 and grow at a CAGR of 4.24% to reach USD 695.22 million by 2030.

In 2024, the South America Forage Seed Market size is expected to reach USD 541.86 million.

South America Forage Seed Market Report Snapshots

South America Forage Seed Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030