Brazil Could Be the Next Feed Market Opportunity

Written by: Guest   |   July 28, 2022

Trade, Brazil

By: Gracie Wagner, AFIA communications intern

Recently, the American Feed Industry Association applied for and was awarded funding through the Foreign Agricultural Service’s Emerging Markets Program (EMP) to do an animal feed market assessment in Brazil, which could foster identification of opportunities for the U.S. feed industry in the Brazilian marketplace. This assessment will provide a comprehensive overview and analysis of the Brazilian market for U.S. exports of feed additives and feed ingredients, excluding raw agricultural commodities (e.g., corn, soybeans, sorghum, etc.).

Why Brazil?

Brazil’s agricultural production has grown rapidly over the past two decades, driven by rising global demand, strong prices and technological advances. Overall, demand for Brazilian protein exports is growing, and the animal feed industry is increasing production and working to meet this demand, creating an opportunity for U.S. animal feed products. In 2021, Brazil imported a record $335 million worth of animal feed, with China being the largest supplier.

A growing livestock, poultry and aquaculture sector make Brazil suitable for niche markets like feed additives and ingredients from the U.S. animal feed industry. As corn and soybean meal prices continue to rise and put pressure on the animal feed industry, feed additives and ingredients play a critical role in relieving financial pressure and instability, while ensuring a nutritious and complete diet for the animals. However, the U.S. animal feed industry needs to distinguish itself from competitors and ensure that barriers to trade are eliminated. To do this, the U.S. animal feed industry must succinctly identify where the specific market opportunities lie, what the barriers are and how to overcome and/or address these barriers to take advantage of the opportunities.

What will the market assessment do?

The AFIA’s goals will be to: identify how feed ingredients and additives are currently used in Brazil; identify the challenges the Brazilian animal production industries face that can be addressed by U.S. feed ingredients and additives; identify competition within the marketplace; and outline technical, regulatory and sanitary and phytosanitary restrictions and challenges to entering and/or expanding into the Brazilian market.

What other efforts have we made in Brazil?

The acquisition of these EMP funds will undoubtedly play a large role in the future development of AFIA’s market development efforts in this market, adding to initiatives that the AFIA has already made in Brazil. Last year, in partnership with the U.S. Department of Agriculture, the AFIA developed a webinar titled, “U.S. Animal Feed Additives: Adding Value and Generating Results,” which garnered an audience of over 200 Brazilian professionals related to animal nutrition who work in the area of research and development, imports, buyers, technicians in animal nutrition and other related areas.