The Brazilian animal feed industry shall grow 3.5% this year
May, 05, 2022 Posted by Gabriel MalheirosWeek 202219
The Brazilian animal feed is expected to grow by 3.5% this year, according to the National Animal Feed Industry Union (Sindirações). However, according to the group, the sector could have fared better if market uncertainty had not impacted production costs.
Sindiraçes stresses that the conflict in Ukraine created concerns about food security in various nations at a level that had not been seen since World War II.
Russia is, notably, one of the global leaders in natural gas and oil exports. When combined with Ukraine, both countries account for 29% of international wheat trade and 19% of global maize trade. “The market restrictions imposed on Russia may inspire a form of food nationalism. That, combined with exorbitant food price increases, could potentially spark revolts comparable to the Arab Spring of 2011,” comments Ariovaldo Zani, CEO of Sindirações.
As the conflict continues developing, logistical challenges will continue to be prevalent. “The cost of maritime transportation has already increased by 70%. These factors harm agricultural production chains, including grain crops, industrial processing, nutritional additive imports, feed production, livestock feeding, and consumer wholesale and retail pricing. For example, corn has doubled in price since January 2020, while soybean meal has already increased its price by 130%. Both grains are quantitatively added to animal feed at 70% and 20%, respectively,” informs the CEO of Sindirações.
Sindirações recalls that the records set in the Brazilian animal feed industry rely on competitive advantages (price and quality) that are dependent on the availability of corn, soy bran, and wheat derivatives that feed cattle, poultry, and swine herds.
In 2021, animal feed production reached 85 million tonnes, an increase of 4% over the 2020 volume.
Source: Canal Rural
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