Market Trends of South America Silage Inoculant Industry
This section covers the major market trends shaping the South America Silage Inoculant Market according to our research experts:
Growing Demand for Livestock Products
The per capita consumption of red meat and livestock products like milk has increased rapidly across the region, as they are considered to be an important source of nutrition/protein, by consumers in different demographics. This, in turn, has resulted in increased production of high-quality livestock products like milk and eggs as well as meat products, and therefore a high demand for livestock. The silage inoculant market thus comes into play which has been highly developed in South America to fulfill the growing demand for high-quality products. The use of silage inoculants in the region has boosted the productivity of the animals in Brazil and Argentina. The North America livestock sector has witnessed a robust growth rate in the past couple of years. According to FAO, the production of cattle meat sector increased from 15,066,457 tons in 2016 to 16,250,766 tons in 2018 owing to the enhanced nutrition resulted due to silage inoculants that the productivity of animals had witnessed an increasing trend in livestock products as well. Also, the cow milk increased from 61,295,130 tons in 2016 to 61,326,080 tons in 2017 in South America owing to the growing demand for milk by the growing population of South America. Thus, the use of silage inoculants has increased the nutritional efficiency of livestock and livestock products.
Brazil Dominates the Market
Increase in the number of livestock farms, rise in healthy meat consumption and production, and rise in awareness about the silage inoculants in emerging countries such as Brazil and Argentina are anticipated to fuel the South America silage inoculants market. Silage making is being traditionally practiced by the larger agricultural sector in Brazil. They convert failed crops into silage to overcome the production costs. Corn was the most widely grown crop for silage. Sorghum, tropical grasses, and sugarcane were the other species most grown. However, stringent regulations for the inoculant usage and lack of awareness about inoculants have hampered the silage inoculant market growth in the country. In Argentina, local experiments showed that 85% of processed sorghum grain yield response can achieve similar quality results to those obtained with corn silage only with the application of silage inoculants. Thus, the growth of the silage inoculant industry in the region will drive the market revenue in the years to come.
