United States Alfalfa Hay Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The United States alfalfa hay market is expected to register a CAGR of 8.7% during the forecast period.

Key Highlights

• The use of alfalfa hay has become critical to poultry feed, followed by animal feed in recent years, due to the need for crude protein content. Dependence on alfalfa hay for animal feed may continue to drive the alfalfa hay market over the forecast period. The major factors influencing the alfalfa hay market in the United States include the increasing demand for quality hay for livestock and cattle population, prices of alfalfa hay, and price trends in alternative feed and forage.
• The increasing demand for dairy and animal products, shrinking of the land for animal grazing, and growth in high-yielding cattle and bred cattle demand for feed are driving the alfalfa hay market. Growing investment in huge-scale dairy operations to meet the demands of commercial dairy operators is expected to aid the market growth during the forecast period.
• However, the decreasing land acreage due to drastically growing urbanization, competition regarding high crop value crops, and water restrictions are some of the critical factors hindering the growth of the alfalfa hay market.

United States Alfalfa Hay Market Trends

Increasing Demand for Dairy and Meat Products

• The US livestock sector is projected to increase production over the next decade, an expansion that reflects several factors. The United States and Spain are major exporters of alfalfa hay livestock globally. The use of alfalfa hay is considered essential, particularly for poultry feed, followed by animal feed, due to its crude protein content.
• Dependence on alfalfa hay for animal feed may continue to drive the alfalfa hay market globally over the forecast period. Annual growth of meat and milk production in developing countries is expected to drive the market’s growth. Alfalfa, a good nutrition source, is the main feed for cattle and poultry. The dairy sector is essentially boosting the demand for alfalfa hay in the United States.
• Livestock products remain a desired food for nutritional value and taste across major parts of the world. The US dairy products manufacturers focus on catering to the increasing demand for alfalfa hay, which has been primarily aided by changing consumer preferences due to high-income levels.

Increasing Export Opportunities from the United States

• Some of the alfalfa hay-producing states in the United States are California, Idaho, Montana, and Minnesota. China, Japan, Saudi Arabia, and the United Arab Emirates are the top export destinations of the United States. China is expected to remain the key market for US alfalfa hay exports shortly.
• Furthermore, almost half of the country’s alfalfa hay exports are to China. The domestic production of alfalfa hay in Saudi Arabia declined. As the country needs to satisfy the demand for alfalfa hay from the dairy market, it mainly relies on imports. Furthermore, it is expected to remain one of the key buyers from the US alfalfa hay market.
• For the export market, three-string and big bales are compressed into smaller, more densely packed bales to load more hay into the containers and reduce ocean freight costs. ​ Two-string bales normally sell for higher prices but have higher handling costs. Small bales are preferred for retail and small farm operations. Round bales are typically fed to animals at producers’ operations. Thus, the importance of alfalfa hay in the US export market due to its nutritional value is anticipated to drive the segment during the forecast period.

United States Alfalfa Hay Industry Overview

The alfalfa hay market in the United States is fragmented. In the United States, alfalfa hay supply is concentrated in California, Idaho, Montana, and Minnesota, and consumption is concentrated in China, Japan, the United Arab Emirates, and Saudi Arabia. Some of the key players in the market are Al Dahra ACX Global Inc., Alfalfa Monegros SL, Border Valley, Bailey Farms, and Anderson Hay & Grain Inc. The companies have been involved in various strategic activities such as product innovations, expansions, partnerships, and mergers and acquisitions.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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