News last update:6 Aug 2012

More demand for feed additives in Brazil

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, according to new analysis from Frost & Sullivan.

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 reveals that the market earned revenues of $277.8 million in 2005, and estimates this to reach $383.1 million in 2012.

More people, higher incomes
"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% 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% from the previous year. Internal consumption also increased by 4.69% reaching 35.4 kg per person.

EU rules
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.

Disease impact
However, the threat of diseases such as avian flu and foot-and-mouth disease is a constant source of concern. 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% 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.

A virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the latest analysis of Brazilian Animal Feed Additives Market can be obtained from Jorgelina Pecina, Corporate Communications, at Please send your full name, company name, title, telephone number, fax number, e-mail address, city and country.

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Frost & Sullivan

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