Market Trends of United States Alfalfa Industry
This section covers the major market trends shaping the US Alfalfa Market according to our research experts:
Increasing Demand for Dairy and Meat Products
- The US livestock sector is projected to increase production over the next decade, an expansion that reflects several factors. The United States and Spain are major exporters of alfalfa hay livestock globally. The use of alfalfa hay is considered essential, particularly for poultry feed, followed by animal feed, due to its crude protein content.
- Dependence on alfalfa hay for animal feed may continue to drive the alfalfa hay market globally over the forecast period. Annual growth of meat and milk production in developing countries is expected to drive the market's growth. Alfalfa, a good nutrition source, is the main feed for cattle and poultry. The dairy sector is essentially boosting the demand for alfalfa hay in the United States.
- Livestock products remain a desired food for nutritional value and taste across major parts of the world. The US dairy products manufacturers focus on catering to the increasing demand for alfalfa hay, which has been primarily aided by changing consumer preferences due to high-income levels.
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Increasing Export Opportunities from the United States
- Some of the alfalfa hay-producing states in the United States are California, Idaho, Montana, and Minnesota. China, Japan, Saudi Arabia, and the United Arab Emirates are the top export destinations of the United States. China is expected to remain the key market for US alfalfa hay exports shortly.
- Furthermore, almost half of the country's alfalfa hay exports are to China. The domestic production of alfalfa hay in Saudi Arabia declined. As the country needs to satisfy the demand for alfalfa hay from the dairy market, it mainly relies on imports. Furthermore, it is expected to remain one of the key buyers from the US alfalfa hay market.
- For the export market, three-string and big bales are compressed into smaller, more densely packed bales to load more hay into the containers and reduce ocean freight costs. Two-string bales normally sell for higher prices but have higher handling costs. Small bales are preferred for retail and small farm operations. Round bales are typically fed to animals at producers' operations. Thus, the importance of alfalfa hay in the US export market due to its nutritional value is anticipated to drive the segment during the forecast period.
