The South America Forage Seed Market is projected to register a CAGR of 2.36%
- Largest Segment by Crop - Alfalfa: Alfalfa is one of the major forage having high demand in the region by dairy farmers for animal feed due to its high nutritional value, short duration, and high palatability.
- Largest Segment by Country - Brazil: The high share of Brazil is due to the increasing cattle population in the country, government support to the livestock farmers, and higher seed replacement rate.
- Fastest-growing Segment by Crop - Alfalfa: The high demand for alfalfa is due to its high protein content and it can be used as fresh fodder as well as hay. Also, it can be harvested 10-12 times per crop season.
- Fastest-growing Segment by Country - Argentina: Argentina is the largest producer of Alfalfa in South America due to the high demand for alfalfa as hay by the cattle farmers and high profitability for growers.
Key Market Trends
Hybrids is the largest segment by Breeding Technology.
- In South America, the total area under the cultivation of forage crops in 2021 was 9.02 million ha, which was around 7.3 million ha in 2016. It is an increase of almost 24% from 2016 to 2021, which is due to an increase in the demand for animal feed.
- In 2021, South America had a market share of 9% of the global forage seed market, which is due to the increase in the production for export to neighboring countries as a raw material for feed production.
- Brazil is the largest user of hybrid seeds for forage cultivation, which accounts for 67% of the total hybrid forage production area in South America. However, transgenic hybrid penetration is more in Argentina.
- Some cattlemen have a preference for forage crops produced by using non-transgenic hybrid seeds because it is easily digestible by the cattle and the productivity of corn is high, and corn silage is being used for corn ethanol production in Brazil, which leads to becoming the fastest growing crop among hybrid forages.
- Among the South American countries, the share of forage crops cultivated using open-pollinated varieties and hybrid derivatives seeds is approximately 27% of the total forage seed market value. It is largely contributed by native grasses of Braccharia species.
- The Braccharia species are grown either wild or as cover crops or rotation crops for extra for farmers between two seasons, which helps in nutrient cycling. Therefore, OPVs are growing in the forecast period owing to those factors. However, commercial cultivation is done by hybrids and GM varieties that require lesser inputs and more productivity, which will be growing at a CAGR of 3% in South America in the forecast period from 2022 to 2028.
Brazil is the largest segment by Country.
- Brazil is the largest country in the South American forage seed market because of the increase in the demand for beef production, the increase in livestock, and government support programs for the cultivation of forage crops.
- According to USDA, beef production is expected to grow from 2020 to 2028 in Brazil due to the increasing cattle availability and improved margins for slaughterhouses. According to research by DSM consulting firm, the number of livestock animals in Brazil was 6.19 million in 2020, an increase of 6% from 2019. The increasing livestock will increase the demand for meat in the country, and it will help increase the production of forage crops in Brazil.
- Argentina is anticipated to register a CAGR of 3% during the forecast period because it is globally the second-highest consumer of beef, with yearly consumption of 55 kg per person. In 2019, about 400 slaughter plants were in Argentina. Over the past several years, industry investments have grown to increase slaughter capacity due to increasing consumption. Therefore, the demand for feed will increase and help in the growth of the market in South America during the forecast period.
- Rest of South America has the smallest share in the region because of the low-quality seeds available in these countries, but the Lianos of Colombia and Venezuela are major commercial centers for livestock in South America. Therefore, the demand for seeds is anticipated to grow during the forecast period.
- Therefore, government support in funding the cultivation of forage crops and an increase in livestock will help in the growth of the market during the forecast period.
Competitive LandscapeThe South America Forage Seed Market is fragmented, with the top five companies occupying 28.37%. The major players in this market are Advanta Seeds - UPL, Bayer AG, DLF, Peman and Royal Barenbrug Group (sorted alphabetically).
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Table of Contents1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Area Under Cultivation
4.2 Most Popular Traits
4.3 Regulatory Framework
4.4 Value Chain & Distribution Channel Analysis
5 MARKET SEGMENTATION
5.1 Breeding Technology
184.108.40.206 Non-Transgenic Hybrids
220.127.116.11 Transgenic Hybrids
18.104.22.168.1 Herbicide Tolerant
22.214.171.124.2 Other Traits
5.1.2 Open Pollinated Varieties & Hybrid Derivatives
5.2.2 Forage Corn
5.2.3 Forage Sorghum
5.2.4 Other Forage Crops
5.3.3 Rest Of South America
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Advanta Seeds - UPL
6.4.2 Bayer AG
6.4.3 Deutsche Saatveredelung AG
6.4.5 Groupe Limagrain
6.4.6 KWS SAAT SE & Co. KGaA
6.4.7 Northstar Seed Ltd.
6.4.9 Royal Barenbrug Group
6.4.10 S & W Seed Co.
7 KEY STRATEGIC QUESTIONS FOR SEEDS CEOS
8.1 Global Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Global Value Chain Analysis
8.1.4 Global Market Size and DROs
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
A selection of companies mentioned in this report includes:
- Advanta Seeds - UPL
- Bayer AG
- Deutsche Saatveredelung AG
- Groupe Limagrain
- KWS SAAT SE & Co. KGaA
- Northstar Seed Ltd.
- Royal Barenbrug Group
- S & W Seed Co.