MARKET REPORT 72 FEED & ADDITIVE MAGAZINE June 2023 prices are showing signs of recovery, according to the Alltech report. North America ranks third in world swine feed production with 62.9 million tons. In North America, feed production decreased by nearly 1% because of a reduction in pork supply, aggressive outbreaks of Porcine Reproductive and Respiratory Syndrome (PRRS), high feed and trucking costs, disruptions in trade due to shipping costs, labor shortages and input cost volatility aggravated by the invasion of Ukraine. The USA realized 86.8% of the total swine feed production in the region with a production of 54.7 million tons. Latin America follows North America with 36.2 million tons in world swine feed production. In 2022, swine feed production in the region increased by 2% compared to the previous year. According to the Alltech report, the pig industry expanded in Latin America, thanks to increased demand, decreases in the cost of food, favorable exchange rates and numerable opportunities to export to Asia. In Brazil, which represent most of the Latin American swine market, feed tonnage increased by 4% from 19.7 million tons to 20.5 million tons. In Africa, 3.3 million tons of swine feed was produced in 2022. Production in the region was down slightly, due in part to ASF and high feed costs. Better pork prices in South Africa led to an increase of 0.175 million tons of pig feed production. In Oceania, where 1.4 million tons of swine feed production is realized in 2022, the production remained steady in Australia and increased over 8% in New Zealand to 0.164 million tons. Finally, production remained steady in Israel, the only Middle Eastern country that produces swine feed. MARKET GROWTH EXPECTATIONS There are different forecasts of the global commercial scale of the swine feed market. For example, according to swine feed market report by IMARC Group, the global swine feed market size reached US$ 116.8 billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 141.2 billion by 2028, exhibiting a growth rate (CAGR) of 3.3% during 2023-2028. Mordor Intelligence also makes close predictions. According to the company's report, the global swine feed market size is expected to grow from US$ 103.49 billion in 2022 to US$ 128.96 billion by 2028, at a CAGR of 4.50% during the forecast period (2023-2028). Swine Feed Production by Region (MMT) Source: 2023 Alltech Agri-Food Outlook - Million metric tons. Region Africa Asia-Pacific Europe Latin America Middle East North America Oceania GRAND TOTAL 2021 3.319 143.537 81.871 35.45 0.007 63.6 1.401 322.185 2022 3.317 140.377 75.117 36.167 0.007 62.984 1.414 319.383 Growth -0.05% -2.20% -8.25% 2.02% 0.50% -0.97% 0.93% -2.98%
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