MARKET REPORT 88 FEED & ADDITIVE MAGAZINE November 2023 Peru reported a double-digit feed production decrease in 2022 due to a reduced commercial dairy population in the region. Brazil’s dairy feed production dropped in 2022 because of unfavorable weather that resulted in poorer pasture conditions, as well as lower consumer demand, economic challenges, low consumer disposable income and elevated milk retail prices, according to the Alltech report. Beef Latin America is the world's second largest producer of beef feed, although it has a much lower production volume compared to North America, the world's largest producer of beef feed. The region's beef feed production, which was 15.6 million tonnes in 2021, increased by 2.3% to 16 million tonnes in 2022. In Latin America, according to Alltech report, the high prices of bovine animals and meat in 2022 provided a steady incentive for cattle growers to expand production. In terms of other feed species, the outlook in the region is as follows: • Aqua feed production, which was 5.6 million tonnes in 2021, reached 5.9 million tonnes in 2022, a significant increase of 4.7%. • Pet food production, which was 7.4 million tonnes in 2021, reached 8.8 million tonnes in 2022, a record increase of 19.2%. • Horse feed production in Latin America is around 1 million tonnes. COMMERCIAL VALUE OF THE MARKET AND EXPECTATIONS Data for the South American animal feed market is often analysed as South America or Latin America. This situation causes differences between the countries included in the reports and makes it difficult to obtain more comprehensive and consistent data. While reports on South America include countries such as Brazil, Argentina, Peru and Chile, reports on Latin America include Mexico, which is a power that will affect the data considerably. As a result, reports give different estimates of the size of the market. The following two examples can be considered consistent, given the different countries covered. One of these is Research and Markets' June 2023 report titled South America Animal Feed Market. Latin America Compound Feed Production (MMT) Source: 2023 Alltech Agri-Food Outlook **Latin America includes all Central American countries, including Mexico Broilers Layers Pigs Dairy Beef Aquaculture Pets Equine TOTAL PRODUCTION 2021 66.717 23.629 35.450 25.738 15.642 5.652 7.434 1.093 187.904 2022 67.561 24.506 36.167 25.461 16.015 5.922 8.863 1.043 190.910 Growth (%) 0.845 0.877 0.717 (0.277) 0.373 0.271 1.429 (0.050) 3.006 Growth (%) 1.27% 3.71% 2.02% -1.08% 2.39% 4.79% 19.22% -4.54% 1.6%
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