Market Trends of South America Ruminant Feed Premix Industry
This section covers the major market trends shaping the South America Ruminant Feed Premix Market according to our research experts:
Increasing Feed Production Drives the Market
The demand for high-quality compound feed from the livestock industry due to increased industrial production of meat and dairy products has triggered an increase in the consumption of the compound feed and feed additives. According to the Food and Agriculture Organisation (FAO), in 2017 the cattle and buffaloes population in the region was 358.17 million that has increased to 358.61 million in 2018. Also, the poultry bird population increased from 2637.36 million to 2684.75 million during the same period. Furthermore, Beef is the highest consumed meat type in Argentina, according to the Organisation for Economic Co-operation and Development (OECD) in 2016 per capita beef and veal consumption was 39Kg that has increased to 39.7 Kg in 2019. Large-scale producers and meat manufacturers use additive premixes to ensure a steady supply of nutrients to the animals, enhance production and performance. Thus, the rise in demand for feed additives is driving the market for feed premixes.
Brazil Dominates the Market
According to the Brazilian Beef Exporters Association (ABIEC), in 2018, the beef cattle accounted for USD 116.22 billion, 8.3% up on the USD 107.31 billion posted in 2017. The beef cattle GDP thus grew to an 8.7% share of the overall Brazilian GDP. Furthermore, of the 10,959 thousand tons of beef meat produced 2,205.2 thousand tons of meat is exported which is 20.1% of the total beef produced in 2018. The domestic consumption of feed in Brazil is very high as meat production in the country is also high. According to the ITC Trade, in 2016, beef export amounted to 938.3 thousand metric tons which have raised to 1,356.6 thousand metric tons with a value of USD 5,610.76 million in 2019. China and Hong Kong continued to dominate as the top two destinations for Brazil's beef exports, accounting for 60.8% of total beef shipments in 2019. Thus, the rising meat production coupled with the increasing export market will drive the market for feed during the forecast period.
