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Brazilian feed industry expected to rebound after 2012 reduction

Published on 9 June, 2013, Last updated at 01:11 GMT
Brazilian feed industry expected to rebound after 2012 reduction

After a reduction last year, the Brazilian feed industry expects a recovery in feed production in the current year.

Sindiracoes, the Brazilian Feed Industry Association, estimated that Brazil's animal feed production this year could reach 64.6 million tonnes of feed while production of mineral supplements may reach 2.24 tonnes.

This would represent a 2.6% increase in the production of animal feed and 15% increase in the production of mineral supplements. Although these figures are increases over last year, 2012 saw a 2.3% decrease in feed production and 17% decrease in mineral supplement production. So the increase this year will just help to offest the decrease in production the year before.

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.

CEO of Sindiracoes, Dr. Ariovaldo Zani said "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"

Talking of specifics feeds, Sindiracoes said layer poultry feed production, could amount to 5.4 million tonnes this year, up 2.6% from last year.

Beef cattle feed could amount to 2.7 million tonnes this year, up 4%.

Dairy cattle feed may rise 3% to 4.9 million tonnes.

Pig feed consumption could grow by 2.5% to 15.5 million tonnes, if production costs do not suffer too badly from volatility during the year.

Feed for dogs and cats, could grow approximately 5% in 2013 and exceed 2.4 million tonnes.

While finallym fish and shrimp feed production this year could rise to more than 740,000 tonnes, an increase of at least 14%.


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