INCREASING AWARENESS AND CONCERNS ON FEED SAFETY
Food safety is increasingly becoming an important issue for feed producers in the country, as the Brazilian government is taking measures to ensure quality of meat and animal-by products. Brazilian consumers are now more aware and informed than earlier, due to improved socio-economic factors and education levels in the country over the past few decades. Numerous government agencies are ensuring the safety of the Brazilian food supply. The Ministry of Agriculture, Livestock, and Food Supply (MAPA), Ministry of Health (MS), and the National Agency of Sanitary Surveillance (ANVISA) are the primary regulators of meat and animal by-products. MAPA regulates and enforces a large number of regulations about production, marketing, import and export of animal origin products. International organizations like the Food and Agricultural Organization (FAO) have laid down guidelines with the objective of ensuring the safety of food for human consumption, by adhering to good animal feeding practices at the farm level, and through Good Manufacturing Practices (GMPs) during the procurement, handling, storage, processing and distribution of animal feeds and feed ingredients for food producing animals.
The increase in certain pathogenic and parasitic contaminations in meat products, such as salmonella, listeria, and E. coli, along with various disease outbreaks in livestock animals, such as swine flu and foot and mouth disease across Brazil in the past decade, have raised concerns over meat quality and safety, thereby impacting trade. The 2014 outbreak of E. coli severely affected trade with the European Union and the United States, causing immense losses to the country’s beef industry. The use of high-quality feed ingredients, such as antibiotics, enzymes, and vitamins, provides balanced nutrition to the animals and protects them from harmful environmental influences that cause these diseases. Moreover, the use of veterinary medicines, which leave harmful residues of the drug in meat, milk, and eggs, is deterring livestock manufacturers away from these drugs and further encouraging the use of high-quality feed ingredients, to ensure that meat and animal by-products reaching the consumer are safe, wholesome, and free from diseases.
AGGREVATED DEMAND FOR HIGH VALUE MEAT AND ANIMAL BY-PRODUCTS
The increase in industrial production of meat over the past few decades has made the Brazilian animal feed industry one of the largest in the world in terms of volume, ranking third behind the United States and China. Brazil produced more than 68.70 million metric tons of animal feed in 2015, twice as much as India, the world’s fourth largest producer. Such volume is primarily attributed to Brazil’s long history of production and consumption of meat. Brazil is among the world's fastest growing economies, witnessing rise in per capita income and health consciousness, resulting in a shift of dietary preferences towards protein rich diets. Changing diet patterns and population growth have further increased the demand for meat in the country.
Brazil produced 25.9 million metric tons of meat in 2015, which is estimated to grow to 33.7 million metric tons in the next ten years. Considering the high consumption of meat, the role of the country's commercial feed companies is to supply compound feeds for a wide range of species. The largest of these are poultry and pork, as these species not only have a high demand for local consumption but also in export, generating a revenue of USD 1.220,316 million in 2015.
Brazil Feed Ingredient, Market by Livestock Application
ANCO OPENS SUBSIDIARY IN BRAZIL
Austrian feed additive company, Anco, is likely to open a subsidiary in Sao Paulo, Brazil. The company feels appropriate to enter the Brazilian market as of now, since livestock producers are looking for products which would help them to cater the demands for an alternative to antibiotic growth promoters (APGs). Anco Fit is expected to be the main attraction in this regard and the product completely relies on bioactive substances in the formula, which help to reduce negative stress reactions, like that of oxidative stress, inflammation, reduced gut integrity, and reduced feed intake. The product line was developed to boost gut agility in farm animals and empower them to adapt to the nutritional stressors efficiently. The feed additive manufacturing firm is leveraging the growing migration away from AGPs, within the Brazilian livestock production sector.
Some of the major players are:
Novus International Inc
Archer Daniels Midland Company
Sodrugestvo Group S.A.
NOTABLE MARKET DEVELOPMENTS
Adisseo introduced a new enzyme - Rovabio® Advance, with a combination of enzymes, amino acids, phosphorus, and calcium
In Brazil, Cargill developed new ingredient Ultra Oils, by combining natural properties of vegetable oils with their exclusive technology
Bunge began the production of non-GMO corn ingredients on a large scale, becoming one of the key global suppliers
Novus launched a new product - SPORULIN®, to improve poultry nutrition levels
Two new products - Biomin® PRO and Biotronic® Top3 were launched by Biomin at the World Pork Expo in Des Moines
Our report on the Brazilian feed ingredients market covers the following:
How the increasing demand for high value animal protein is influencing the Brazilian feed ingredients market
How increased awareness regarding safety of meat and milk products is affecting the market.
Will Brazil continue its dominance in the South American feed ingredients market? What are the emerging sectors?
Acquisitions taking place
Top players in the Brazilian market and their strategies
1.1 STUDY DELIVERABLES
1.2 GENERAL STUDY ASSUMPTIONS
2. RESEARCH METHODOLOGY
2.2 ANALYSIS METHODOLOGY
2.3 STUDY PHASES
2.4 SECONDARY RESEARCH
2.5 DISCUSSION GUIDE
2.6 ECONOMETRIC MODELLING
2.7 EXPERT VALIDATION
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW & TRENDS
4.2 OVERVIEW FOR FEED INGREDIENTS IN BRAZIL
4.3 MARKET TRENDS
4.3.1 GLOBAL AND BRAZILIAN TRENDS
4.3.2 EFFECTIVENESS AND SAFETY FOR NUTRITION AND HEALTH
4.3.3 QUALITY IMPROVEMENT AND PRODUCT DESIGN
4.4 PORTER’S FIVE FORCES ANALYSIS
4.4.1 BARGAINING POWER OF BUYERS
4.4.2 BARGAINING POWER OF SUPPLIERS
4.4.3 DEGREE OF COMPETITION
4.4.4 THREAT OF NEW ENTRANTS
4.4.5 THREAT OF SUBSTITUTES
4.5 FEED INGREDIENTS DISTRIBUTION CHANNEL ANALYSIS
5. MARKET DYNAMICS
6. BRAZIL FEED INGREDIENT MARKET, BY TYPE
6.2 CEREAL BY-PRODUCTS
6.3 OILSEED MEAL
6.6 SOY MEAL
6.7 WHEY PRODUCTS
7. BRAZILIAN FEED INGREDIENT MARKET, BY SUPPLEMENT TYPE
7.1 AMINO ACIDS
7.13 MYCOTOXIN DETOXIFIERS
8. BRAZILIAN FEED INGREDIENTS MARKET SEGMENTATION, BY ANIMAL TYPE
9. BRAZILIAN FEED MARKET, BY GEOGRAPHY
9.3 CENTRAL WEST
10. COMPETITOR ANALYSIS
10.1 MARKET SHARE OF GLOBAL PLAYERS
10.2 BRAZILIAN MARKET SHARE ANALYSIS
10.3 STRATEGIES ADOPTED BY LEADING GLOBAL PLAYERS
10.4 STRATEGIES ADOPTED BY BRAZILIAN PLAYERS
11. KEY VENDOR PROFILES
11.7 INGREDION INCORPORATED
11.9 NOVUS INTERNATIONAL INC.
11.12 ARCHER DANIELS MIDLAND COMPANY
11.13 EVONIK INDUSTRIES
11.14 SODRUGESTVO GROUP S.A.
12. KEY TRADER/DISTRIBUTOR PROFILES
13. BRAZILS’S INVESTMENT ANALYSIS
13.2 OPPORTUNITIES FOR VALUE-ADDED FEED INGREDIENTS IN THE MARKET
13.3 RECOMMENDATIONS ON MARKET DEVELOPMENT ACTIVITIES TO CAPITALIZE ON THE OPPORTUNITIES