Dr. Ariovaldo Zani - CEO Sindiracoes
29 May 2012 – Brazil’s animal feed production in 2012 is expected to increase but a slower rate compared to 2011. According to data obtained from Sindiracoes, the Brazilian Feed Industry Association, total feed produced during the year could rise 2.8% – less than the 5.2% growth recorded for 2011.
Dr. Ariovaldo Zani, CEO of Sindiracoes, believes that the Brazilian feed industry may produce more than 66.2 million tons of complete feed plus 2.58 million MT of mineral supplements this year.
According to Dr. Zani, output growth in 2012 will vary depending on livestock producer performances, who have been impacted by the higher cost of agricultural commodities, low domestic prices and by a slowdown in meat exports due to embargoes and an overvalued currency.
In Q1 2012, feed production is recorded at 14.9 million MT, a 2% decrease when compared to the same quarter a year ago. Although cattle feed demand has slightly increased in the quarter, broiler and swine demand (both accounting for over 70% of total feed demand in Brazil) dropped 1.1% and 6.1% respectively.
Dr. Zani said that, despite Brazil’s leading role in catering for global demand for animal protein, some animal husbandry segments have been harder-hit by the economic slowdown than expected. He is afraid that if this scenario continues, the whole production chain could be affected.
Regarding raw material prices, Dr. Zani also remains cautious: “The recent pricing reduction for corn this year and the generous winter harvest are supposed to keep prices under the average displayed last year. Nevertheless the price of corn has skyrocketed since mid-2010 and continues to impact livestock production costs. Soybean meal prices have increased nearly 40% through April this year due to reduced international liquidity, while the minimum wage rate adjustment impacted the payroll of labour employed”.
Representing about 50% of the overall feed demand in 2011, the broiler industry is expected to consume 33.2 million tons of feed this year, up 3.1% from 32.2 million tons recorded in 2011. Meanwhile, the production of feed for laying hens could reach 5.1 million tons in 2012, up 1.4% from 4.9 million tons in 2011.
The amount of pork exported by Brazil in 2011 decreased by 4% due to the overvalued exchange rate in H1 and trade embargoes. As a result, the feed industry is expected to produce about 15.4 million tons of swine feed in 2012, more or less the same amount produced in 2011.
Dairy cattle and beef cattle feed output, meanwhile, are both expected to increase in 2012, by 2.7% to 5.2 million tons and by 5.6% to 2.9 million tons respectively, due to increased milk production and feedlot growth.
2012 pet food production could increase 6% at 2.3 million tons as the Brazilian middle class continues to grow and increases its pet food purchases as pet owners move from table scraps to packaged pet food.
Finally, the production of aqua feed in 2012 could amount to 560,000 tons (fish) and 75,000 tons (shrimp), up from 500,000 tons (fish) and 70,000 tons (shrimp) reported for 2011.
Source: Feedinfo News Service
(dated 29/05/2012)
