Peru Animal Feed Market - Forecasts from 2023 to 2028

The Peru animal feed market is evaluated at US$1,114.294 million for the year 2021, growing at a CAGR of 2.42% to reach a market size of US$1,317.253 million by the year 2028.

The increasing demand for meat and meat products is driving the market for animal feed in Peru. The market in the nation is also being driven by rising knowledge of animal health, the availability of various feed options with various vitamins and supplements, and other factors. For instance, Cargill operates three animal feed production plants and a grain and oilseeds trading office in Peru. They supply the entire range of NutreBeef® cattle feeds and minerals, which are expertly formulated to meet the specific nutritional requirements that match the animal's performance requirements, stage of development, and phase of production.

Products for steers, feeder heifers, heifers, bulls, and calves are all available from them. They take into account seasonal and geographical differences in forage in addition to the optimal nutrition that their products offer, as well as the elements that make up feedlot rations or backgrounding. Cattle consistently perform well as a result.

Growing drivers of the market

Moreover, the industry is also growing as a result of changing consumption habits and growing purchasing power. Accordingly, the market is expanding because of strict regulatory frameworks and standards about the production and distribution of animal feed. In addition, the rapidly growing agricultural sector and the simple supply of feed ingredients, advances in technology, environmental concerns, and growing awareness of sustainability are also leading to the market growth of animal feed in Peru.

Furthermore, to enhance the quality of animal feed produced domestically, Peru additionally imports distiller's dried grains with solubles (DDGS). Industry sources indicate that there are promising market possibilities for DDGS; Peru is thought to be a 100,000 MT market for U.S. DDGS.

Increasing demand of high-quality animal products

The nation's use of poultry feed and feed additives increased as a result of increased production of meat and dairy products, which created a demand for premium poultry feed from the livestock industry. Furthermore, Peru uses raw materials like maize, barley, and soybeans that are used to generate complex feeds for human consumption.

Further, the increased demand for low-cost additives was a result of the region's growing need for raw resources. Home mixers and large farm owners employ livestock additives, which have improved the production of chicken feed, to ensure a steady supply of high-quality meat, dairy, and related products.

Moreover, the country is also generating additional raw materials for animal feed to meet the increasing demand brought on by an increase in livestock production. For instance, the production of corn in MY 2022/2023 (October/September) is predicted to reach 1.7 MMT, a marginal rise over the previous year's expected levels because of favourable weather, record-high global prices, and rising demand from the animal feed business, especially the poultry sector. Additionally, Peru's predicted per capita consumption of poultry meat in 2021 was 52 kg (113 lbs), making it one of the highest in the area.

The corn segment is projected to grow steadily.

Corn acts as a nutrient-dense source for animals thereby improving their overall growth efficiency and end products. Moreover, corn with high flavonoid content when added to animal feed, especially for poultry, prevents them from intestinal disease. With the growing demand for chicken meat, the demand for efficient nutrition to improve the chicken quality has propelled the need for corn feed in Peru. According to the “Grain and Feed Annual” report issued by the United States Department of Agriculture in April 2023, approximately 70% of the yellow corn available in Peru is used in chicken feed in the country’s poultry farms are currently numbered over 1,000. Furthermore, as per the same source, in 2022, the average per capita poultry meat consumption in Peru stood at 52 kilograms per person.

However, the poultry production in Peru decreased due to the spread of Highly Pathogenic Avian Influenza (HPAI) owing to which the consumption of corn feed has also decreased. For instance, as per the same source, in 2022, corn feed consumption stood at 4,500 MT which represented an 11.7% decrease in the consumption scale of corn feed in comparison to 2021. Peru’s Sanitary Agency (SENASA), in February 2023, to combat HPAI established a nationwide emergency.

Furthermore, due to the HPAI Peru’s dependency on imported corn feed has increased which has increased the country’s imported price. For instance, according to the USDA, in CY 2022, Peru’s imported price of Argentine corn feed stood at US$293 MT which represented a 19% increase over 2021, likewise average US corn feed price reached US$298 MT representing a 17% increase.

Market Key Developments

• In February 2020,Palbio 50 RD was launched by Bioiberica Animal Nutrition for use in Peruvian poultry farming. This product is a high-quality protein source that was extracted using enzymatic hydrolysis and then desiccated from the pig intestinal mucosa fluid bed. Palbio 50 RD enhances food consumption and diet digestibility, enhancing the intestinal health and productive characteristics of laying hens and broilers.
• In December 2021,the new enzyme product Natupulse® TS for animal feed was introduced by BASF. Natupulse® TS is an NSP enzyme (non-starch polysaccharide). It breaks down ß-mannans into smaller parts, such as manno-oligosaccharides (MOS), as an endo-1,4-ß-D-mannanase. ß-mannanase improves digestibility, lowers digesta viscosity, and promotes more sustainable production when added to feed.

Segmentation:

By Type

• Fodder & Forage
• Compound Feed

By Raw Material

• Corn
• Wheat
• Others

By Livestock

• Swine
• Aquatic Animals
• Cattle
• Poultry
• Others