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Brazil feed industry forecast, growth expected in 2012

Published on 11 June, 2012, Last updated at 22:06 GMT
Brazil feed industry forecast, growth expected in 2012

Feed production in Brazil is expected to grow by 2.8% this year compared to 2011, with output of 66.2 million metric ton of animal feed and 2.58 million metric ton of mineral supplements, reported by the Brazilian Feed Industry Association, Sindirações.

In the last year, the feed industry saw growth of 5.2% In addition to turnover of $25 billion in feedstuffs and feed additives while manufacturing 64.5 million metric ton of animal feed and 2.35 million metric ton of mineral supplements.

CEO of Sindirações, Ariovaldo Zani said "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,"

In the 1st quarter of this year, feed production reached 14.9 million metric ton, a reduction of 2 percent likened to the same period last year. Broiler and swine feed requirement represented greater than 70 percent of total feed and both dropped down 1.1 percent and 6.1 percent respectively. Dairy cattle and beef cattle exhibited a small gain of 1.2 percent and 1.1 percent, while at the same time egg-laying hens continued roughly unaltered.

The Brazilian livestock production chain has seen flourishing cycles of expansion, thanks to the continual mobilisation of technology and furthered by the worldwide strong demand for animal protein. It currently makes up 6.5 percent of GDP, has provided millions of jobs and is accountable for 18 percent of overall agribusiness exports, Zani said.

He went on to warn, "Since last winter, however, some husbandry segments have exposed too much and nowadays they have suffered more intensively the effects of the contemporary economic environment that has been impacting business in general, and this scenario can damage the whole production chain,"

Broiler production made up 50 percent of total feed demand last year and it is anticipated to consume 33.2 million metric ton in this year, which represented an growth of 3.1 percent.

The production layers feeds increased at a rate of 2.6 percent and progressed to 5.1 million metric ton last year in answer to average housings of 79.7 million chicks In addition to domestic egg consumption growth of over 9 percent and a avaerage per capita consumtion of 162.5 eggs.

Egg exports for Brazil shrank 45 percent. The low egg price and the increasing trend of chicks housing has driven the feed industry to predict an increase of less than 3 percent for layer feed, predicting around 5.1 million metric ton in this year.

Brazil's beef cattle feed industry manufactured 2.7 million metric ton of feed and 2.35 million metric ton of mineral supplements, an growth of 7.1 percent and 9.8 percent respectively last year. Feedlots passed 2.8 million head and were defined by a low supply of bulls but counterbalanced by the slaughter of more cows. In spite of comparatively good prices paid for finished cattle, the cost for feeding the cattle accounted for 35 percent of the overall feedlot costs and pressure on cattle farmer's profitability.

This year, the feed industry is expected to manufacture 2.9 million metric ton of cattle feed and 2.6 million metric ton of mineral supplements, an growth of 5.6 per centum and 9.8 percent respectively. This growth is credited to larger feedlot rate of growth of at least 5 percent. All the same this forecast is also dependant on the calves replacement market, potential cows retention cycle reversion, export opportunities for beef, etc.

Brazil's dairy feed, were affected by increasing prices of feedstuffs that forced up the price of production more than 20 percent, the increase of 9.3 percent resulting in 5.1 million metric ton of dairy feed last year can be explained by the limited availability of milk in answer to poor pastures and bad logistics that reinforced prices paid to milk manufacturers and put pressure on the profitability of dairy by-products producers.

This year, the feed industry is expecting an increase of 2.7 percent and output of 5.2 million metric ton of feed for the diary industry, due to the balance amid the stimulation of milk production, lower prices paid to farmers and the continuous rate milk imports on.

Swine feed. The volume of pork exported from Brazil last year fell more than 4 percent as a result of local currency overestimates during the 1st half of the year and also due to trade embargoes enforced by usual purchasers. Brazil's domestic market absorbed more than 180,000 tons of pork and per capita pork consumption exceeded 15 kg.

The swine feed industry manufactured 15.4 million metric ton last year, and it is expected to produce the same quantity in this year, although higher exports to China and new export markets such as Japan and South Korea, are expected to push pork production higher.

Fish, Shrimp Feed. The demand for fish feed in the last year was 500,000 metric ton, representing a 33 percent growth over the year before. This increase is in reply to growing continental fish production.

The aquaculture segment, on the other hand was far less productive, largely affected by the shrimp industry which dropped to 71,000 tons, impacted negatively by health challenges, trade embargoes, a global price drop, environment licensing bureaucracy and an industry not able to invest suitably in technology and more productive- sustainable farming systems. Because of this the consumption of shrimp feed fell almost 17 percent and consumption for last year ended at just 70 thousand metric ton.

The feed industry expects to produce 560,000 MT of fish feed in 2012 and up to 75,000 metric ton of shrimp feed.


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