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News 201 views last update:6 Aug 2012

Q4 2008: Less feed in Brazil

The credit crunch has also hit the feed sector in Brazil. According to local feed association Sindiracoes, feed production in Brazil is expected to fall by almost 3% in the final quarter of 2008.

Between January and September, feed production reached 43.3 million tonnes, up from 37.8 mln tonnnes in the same period in 2007 – a rise of 14.7%. But production from October through the rest of December is expected to fall to 15.3 million tonnes down from 15.77 million in the fourth quarter last year. The 470,000 tonnes produced of mineral supplements in the fourth quarter 2007 plunged to 360,000 tonnes during the same period this year.

Despite the slowdown, growth for the year as a whole should be 9.6% when compared to 2009, according to the association. "Caution will be needed for next year," said Sindiracoes president Mario Sergio Cutait. However, he does not expect the feed sector to contract in 2009. "The world will continue to eat," he said.

Traditionally, during an economic downturn, red meat is substituted with white – which is good news for the feed sector, as poultry feed accounts for around half of all feed produced in Brazil.

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