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Brazil Feed Forecast Up 2.8 Per Cent in 2012

29 May 2012

BRAZIL - Brazilian feed production is projected to grow 2.8 per cent in 2012 compared to the previous year, with production of 66.2 million MT of feed and 2.58 million MT of mineral supplements, according to the Brazilian Feed Industry Association (Sindirações).

In 2011, the sector saw growth of 5.2 per cent as well as turnover of $25 billion in feedstuffs and additives while producing 64.5 million MT of feed and 2.35 million MT of mineral supplements.

"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," explains Ariovaldo Zani, CEO of Sindirações.

According to Mr Zani, the Brazilian livestock production chain has seen successful cycles of expansion, thanks to the continuous mobilization of technology and fostered by the global voluptuous appetite for animal protein. It already represents 6.5 per cent of GDP, has generated millions of jobs and is responsible for 18 per cent of the overall agribusiness exports.

Fish, Shrimp Feed

The demand for fish feed in 2011 was 500,000 MT, representing a 33 per cent increase over 2010. This growth is in response to increasing continental fish production.

The marine segment, however, was far less productive due to the shrimp industry which fell to 71,000 tons, impacted negatively by health challenges, trade embargoes, a global price reduction, environment licensing bureaucracy and an industry unable to invest appropriately in technology and more productive and sustainable farming systems. In response, the consumption of shrimp feed dropped almost 17 per cent and ended 2011 at just 70 thousand MT.

The feed industry perspective for 2012 is to produce 560,000 MT of fish feed and not more than 75,000 MT of shrimp feed.

Further Reading

You can view the full report by clicking here.

TheFishSite News Desk



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