Growth in Brazilian Meat Exports, Animal Feed Industry Drives Demand for Feed Additives28 February 2007
BUENOS AIRES - Brazil's position as one of the most important meat exporters in the world and one of the leading animal feed producers is driving strong growth of its animal feed additives market. The country's average annual production of animal feed is 47 million tons, while its export of chicken and pork meat is steadily rising from year to year, as is the internal consumption of these products. These factors have done much to boost the Brazilian market for animal feed additives.
New analysis from Frost & Sullivan, Brazilian Animal Feed Additives Market, reveals that the market earned revenues of $277.8 million in 2005, and estimates this to reach $383.1 million in 2012.
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"As demand for feed additives is related to animal feed production, the steady demand for poultry and swine is expected to drive the growth of the animal feed industry and consequently, the additives market in Brazil from 2006 to 2012," remarks Frost & Sullivan Research Analyst Victoria Verdier. "The animal feed industry expects to increase its production to 61 million tons, which implies a growth of 30 percent in four years, while the per capita meat consumption is likely to reach around 37 kg over the next 20 years."
The rise in Brazil's meat consumption can be attributed to increasing demand from a growing population that has higher disposable incomes, with even the poorest sections of society able to purchase and consume poultry and cattle meat. The year 2005 represented one of the best years for the poultry industry, both for exports and internal demand. Revenues from the export of chicken meat to 142 countries touched $3.5 billion, up 35 percent from the previous year. Internal consumption also increased by 4.69 percent reaching 35.4 kg per person.
Among the various segments of the feed additives market, amino acids are the largest in terms of both volume and revenues, but the spotlight is increasingly shifting to enzymes. Enzymes offer an excellent alternative to antibiotics, particularly in light of the strict regulations introduced by the European Union (EU), one of the Brazilian meat industry's biggest customers, which ban the use of antibiotics as growth promoters.
"Enzymes help to reduce the cost of feed and aid in the digestibility of feed, especially those with high fiber content, thus increasing the output of energy per metric ton of feed," says Verdier. "This reduces the feed conversion rate into meat and increased feed efficiency, allowing an animal to grow to full efficiency with less feed."
However, the threat of diseases such as avian flu and foot-and-mouth disease is a constant source of concern due to their potentially harmful effects on the livestock industry. Even though these diseases have not actually struck Brazil, the constant possibility that they might poses a major challenge. In Malaysia, for example, there was a 30 percent drop in the sales of poultry meat following the outbreak of bird flu in the country.
"The challenge for market participants, therefore, is to find ways to sustain the use of feed additives amid the threat of these diseases, because they create significant fluctuations in meat product sales volume and consequently, impact livestock numbers, feed volume and eventually feed additive volume," says Verdier. "Sustenance of disease-free status calls for the continuation of existing precautionary measures and the implementation of new systems, if required."
Brazilian Animal Feed Additives Market, part of the Food and Beverage Ingredients subscription, is an in-depth study of this market, offering revenue and volume forecasts as well as an analysis of the major drivers, restraints and trends governing the market. It also provides an overview of the competitive landscape in the region. Interviews with the press are available.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities for your business. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics.
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