Argentina Animal Feed Market - Forecasts from 2023 to 2028

Argentina animal feed market is forecasted to grow at a CAGR of 2.37% during the forecast period.

Increased demand for meat in the nation led to the mass production of livestock. Growing animal production and international demand for meat have created export opportunities. In the upcoming years, rising disposable income and the nation's quick urbanization are anticipated to boost market growth potential.

Moreover, due to the rising opportunities and the government's focus on improving the nation's beef production, the animal feed business is predicted to develop throughout the projected period. Along with a shift in beef consumption, a rise in poultry sales has been seen, which presents a chance for the industry to grow during the predicted period. However, the growing concern about greenhouse gas is impeding the market growth during the forecast period. Modern agricultural practices such as overfeeding cows and cattle have significantly influenced the environment, particularly due to the high methane levels released by the animals. In the upcoming years, this is anticipated to impact the expansion of the animal feed market in Argentina.

The Argentina animal feed market is driven by increased meat consumption.

Due to the rising need for more food variety and protein intake, the demand for higher quality and cost-effective foods, such as poultry, eggs, meat, and milk, is rising in Argentina compared to other meals, such as cereals. The demand for animal products has increased significantly in Argentina due to these changes in consumption patterns and sizable population expansion. For instance, 2.15 million metric tonnes of poultry meat were consumed in 2021, an increase of 4% from 2020 as per Argentina's Ministry of Agriculture, Livestock, and Fisheries estimates. Each person in the country consumed 50.2 kg of beef,15.6 kg of pork, and 45.9 kg of poultry annually in 2020.

Further, this trend is anticipated to persist in the upcoming years. For instance, as the United States Department of Agriculture reported, Argentina's poultry industry expanded by 10% annually in 2021 and is mostly focused on export because the country has the lowest chicken meat prices in the region. For instance, as per the Foreign Agriculture Service, U.S. Department of Agriculture, production of chicken meat in Argentina is expected to reach 2.38 million metric tonnes by the end of 2023, increasing from 2022 levels, while exports are anticipated to reach 190,000 tonnes, up by 4% in 2022. In 2020, Argentina produced 3.17 million tonnes of meat, of which 900,700 tonnes were exported, with China receiving 75%. With 109,000 tonnes in 2021, China continued to be the primary market, followed by Chile at 8,300 tonnes and Israel at 11,000 tonnes.

Additionally, Argentina's beef and veal production increased from 1,878 thousand MT in 2022 to 2,210 thousand MT in 2023, per the 2023 report by the Foreign Agriculture Service and USDA.

The pork segment will witness strong demand for animal feed.

The country's ability to export pork has increased due to rising governmental and private investment in cold storage facilities, which is anticipated to drive the market for animal feed for the pork sector throughout the projected period. Simultaneously, the consumption of pork in Argentina has been steadily significantly increasing. According to OECD data, pork meat consumption stood at 11.542 kilograms/capita in 2021.

Pork production in Argentina has several benefits, including the availability of maize and soybeans. These two commodities are the foundation for feeding pigs and represent the majority of the production cost, a suitable environment, the accessibility of fresh water, and the absence of health risks. As a result, Argentina has the lowest manufacturing costs, which has influenced the growth of pork production. According to the Food and Agriculture Organization of the United States, Argentina's livestock for pigs was 5.4 million tonnes in 2021, upsurging from 5.3 million tonnes in 2020. The growth in pigs' stock in Argentina will impact the upsurge in demand for pork in the country.

The fodder and forage demand continues to remain robust.

Argentina has emerged as a significant player in the global animal feed market, with a notable surge in demand for fodder and forage in recent years. The primary factor driving this growth is the increasing demand for meat and dairy products, both domestically and internationally. Consequently, livestock producers in Argentina are expanding their operations to meet this demand, leading to a higher need for animal feed.

Argentina's agribusiness industry significantly contributes to the country's economy, with agriculture, livestock, and dairy products being the primary drivers. According to a 2022 report by the Embassy of India in Buenos Aires, Argentina is a prominent global supplier of food and raw materials, with over 3 million employees working in the agribusiness chains. According to INDEC, Argentina has seen a significant increase in the import of various agricultural products, such as oil seeds, oleaginous fruits, multiple seeds, industrial or medicinal plants, straw, and fodder. The imports grew from US$ 2,069 million in 2020 to US$ 2,726 million in 2021. Fodder and forage are crucial in meeting the nutritional needs of livestock, and their growth in the animal feed market highlights the country's commitment to producing high-quality feed for its livestock. This growth in Argentina's animal feed market plays an important role in reinforcing the country's position as a significant supplier of agricultural products worldwide. With a dedicated focus on the production of high-quality feed, Argentina's agricultural exports continue to rise in the global market.

Market Segmentation:

BY PRODUCT TYPE

• Fodder & Forage
• Compound Feed

BY LIVESTOCK

• Pork
• Aquatic Animals
• Cattle
• Poultry
• Others

BY RAW MATERIAL

• Soya
• Canola
• Rendered Meal

BY PRODUCTION SYSTEM

• Integrated
• Commercial Mills