Analysis of Brazilian Feed Industry Market

Feed production in South America is mainly from Brazil which ranks the third in the global feed production countries. Animal husbandry is one of the mainstay industry of Brazilian agriculture. And Brazil is the world’s first major exporter of beef, the second major exporter of chicken. The increasing trade demand and domestic needs stimulate the rapid development of feed industry. Among the feed structure the proportion of poultry feed and swine feed exceeds 80%.

Corn and soybean meal are the main feed ingredients in Brazil. About 80% of the corn production is used as raw materials and the soybean meal supply is sufficient in Brazil. The reason why Brazilian feed industry develops rapidly is that the low-profit primary agricultural products promotes producers to further process the agricultural products. Animal feed additives are the core of animal feeds. The increasing demands of meat products promotes the market needs of animal feed and feed additives. Amino acids and vitamins are the main feed additives used in Brazil and the market

demand is great. The other feed additives such as mycotoxin adsorbent, prebiotic etc have great prospects. Their application and importance will be recognised by the market in the future.Data shows that production in the Brazilian animal feed industry decreased about 3% in 2012.

The broiler feed accounts for half of the feed market share but was down 2% compared with the previous year. The fish feed is improved though the market share is still low. The dairy feed production is declined by 2.5% as a result of reduced investment in dairy activity in an attempt to improve its gross margin that has been hurt by high feed costs and low prices paid for milk. There are various factors which will impact the Brazilian feed manufactures and animal feed production in the coming years including. The factors include fears over La Nina delaying soybean harvests in Brazil and Argentina, the strong appetite of China which will become a major corn importer, and the contradiction between people’s increasing demands for foodstuffs and feed ingredients. Feed ingredients has great impact on animal feed industry. The solution is to fully improve the feed utilization and avoid feed waste.

Complete feed is widely used in Brazil because of the high utilization. Our company can supply first-class feed pellet mills to produce high quality complete feed pellets.

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