Brazil Feed Forecast up 2.8 Per Cent in 2012

29 May 2012, at 9:29am

BRAZIL - Brazilian feed production is projected to grow 2.8 per cent in 2012 compared to the previous year, with production of 66.2 million MT of feed and 2.58 million MT of mineral supplements, according to the Brazilian Feed Industry Association (Sindirações).

In 2011, the sector saw growth of 5.2 per cent as well as turnover of $25 billion in feedstuffs and additives while producing 64.5 million MT of feed and 2.35 million MT of mineral supplements.

"The modest increase expected along 2012 will be gauged by livestock producers' performance that have suffered a lot because of higher costs of agricultural commodities and low domestics prices as well as exports slowdown for chicken, pork and beef," explains Ariovaldo Zani, CEO of Sindirações.

According to Mr Zani, the Brazilian livestock production chain has seen successful cycles of expansion, thanks to the continuous mobilization of technology and fostered by the global voluptuous appetite for animal protein. It already represents 6.5 per cent of GDP, has generated millions of jobs and is responsible for 18 per cent of the overall agribusiness exports.

Swine Feed

The amount of pork exported in 2011 dropped more than 4 per cent due to local currency overvaluation during the first half and because of trade embargoes imposed by usual customers. The domestic market absorbed more than 180,000 tons of pork and per capita consumption exceed 15 kg.

The increase in production cost pulled by higher feedstuff prices set a fast pace in the slaughter of breeders and particularly lighter animals. These factors pushed the swine live price and discouraged increasing the herd.

Following the stability trend, the feed industry produced 15.4 million MT in 2011, and it has projected to deliver the same amount in 2012, although the increased shipments to China and recent open markets in Japan and South Korea are expected to move pork production higher.

Further Reading

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