3 March 2014 – Earlier this year, Brazil’s Feed Industry Association (Sindiracoes) warned that the domestic animal feed industry’s performance would be jeopardized in 2013. Dr. Ariovaldo Zani, CEO of Sindiracoes, previously said that total 2013 output figures for Brazil’s feed industry could be impacted by the loss in competitiveness recorded by the livestock production sector, and that offsetting 2012 production losses in 2013 seemed unlikely.
According to Dr. Zani, the degradation of the macro economic situation in Brazil last year affected the performance of many supply chains. Brazil’s animal feed production in 2013 reached 64.6 million tons, only slightly below the 2012 amount recorded.
Sindiracoes is, however, predicting the industry will produce 66.6 million tons of feed (64.4 million tons of complete feed plus 2.2 million tons of mineral supplements) in 2014 (up 3%) as the expected rise in meat consumption this year, spurred in part by the FIFA World Cup, has sparked optimism in Brazil.
Feed demand by broiler producers decreased by 1.5% (30.3 million tons) in 2013, mainly due to the scarce supply of chicks for housing. As a result of a forecasted production increase as well as export demand during 2014, demand for feed is estimated at 31.3 million tons, an increase of approximately 3.4%.
Production of laying hen feed grew by 5.1% in 2013 (5.5 million tons). However, an oversupply in eggs pushed farm prices in Q4 and forced a reduction in the activity in December. Demand for feed for layers in 2014 is expected to grow nearly 4% and reach 5.7 million tons.
Demand from the beef cattle sector amounted to 2.52 million tons in 2013, down 1.9 %. 2.59 million tons of feed for beef cattle are expected to be produced this year, up approximately 3%.
In 2013, 5 million tons of feed for dairy cattle were manufactured, an increase of 4.1%. Moderate growth is predicted during 2014 at 5.2 million tons.
Dr. Ariovaldo Zani
CEO
Sindiracoes
A forced liquidation of some hog breeders in Brazil led to a scarce supply of piglets and a drop in pork exports last year. This contributed to the falling demand in swine feed (down 1.5% at 14.9 million tons). Given the continuous and uninterrupted consolidation of independent farms and that pork supply remains extremely adjusted to demand, Sindiracoes estimates swine feed production in 2014 to be virtually unchanged at 14.9 million tons.
In 2013, feed demand from the fish and shrimp sector grew almost 14% to reach 740,000 tons. 2014 production is predicted to amount to 840,000 tons.
Finally, pet food production grew 5.3% in 2013 at 2.4 million tons, driven by the emerging middle class that now represents more than half of the Brazilian population. Pet humanization trends and the growing concern for health and wellness are expected to continue driving demand for pet food in Brazil. Sindiracoes expects 2.5 million tons will be produced in 2014, an increase of 5%.
