27 May 2013 – Brazil’s animal feed production in 2013 could amount to 64.6 million tons, up 2.6% from 2012. The production of mineral supplements, meanwhile, may rise by 15% to 2.24 million tons, according to data obtained from Sindiracoes, the Brazilian Feed Industry Association.
Dr. Ariovaldo Zani, CEO of Sindiracoes, however, stressed that such rises must be put into context as 2.3% less feed and 17% less mineral supplements were produced last year (in comparison with 2011). 2013 production will help offset the losses accumulated in 2012, he said.
2012 was impacted by weakened demand and bankruptcy of ventures without working capital, among them, independent farmers, cooperatives, integrated feed millers and feedlots. Demand dropped mainly due to skyrocketing prices of soybean meal and corn that pressured the animal protein producers and meat exporters.
Dr. Zani warned that persistent domestic inflation rates, the loss of Brazil’s domestic and international competitiveness, as well as gaps in technology, greatly hampered Brazilian production chains.
Dr. Ariovaldo Zani - CEO Sindiracoes
“Nevertheless, an expected reaction of the Brazilian economy in the second half may still give the feed industry a push of 3% in production, enough only to offset losses accumulated last year. In Q1 2013, total feed production amounted to just over 14.6 million tons, nearly 1% lower than the same period of 2012″, he said.
Sindiracoes forecasts that Brazil’s poultry industry can produce over 13 million tons of chicken in 2013, if domestic demand regains force and exports reach new overseas destinations. From January to March, the sector consumed 4.2% less feed than in the same quarter of 2012. Broiler feed production is expected to reach 31.7 million tons by the end of the year, an increase of 2.1% compared to 2012. Layer feed production, meanwhile, could amount to 5.4 million tons, up 2.6% on the year.
Beef cattle feed could amount to 2.7 million tons this year, up 4%, whilst dairy cattle feed may rise 3% to 4.9 million tons. Q1 demand for beef cattle feed is seen as stable. Also in Q1, dairy cattle feed consumption increased by 3% compared to Q1 2012. However, compared to Q4 2012, consumption is down by almost 20%.
The decline in pork exports and weakening of domestic pork prices continued to put pressure on profit margins and cooled demand for feed in Q1 2013, which only increased by 1%. Pig feed consumption could grow by 2.5% to 15.5 million tons if production costs do not suffer too badly from volatility during the year.
Brazilian dog and cat food production grew 4% in 2012 at 2.3 million tons. Feed for dogs and cats, meanwhile, could grow approximately 5% in 2013 and exceed 2.4 million tons. Finally, fish and shrimp feed production this year could rise to more than 740,000 tons, an increase of at least 14%.
