Market Trends of Argentina Feed Additives Industry
This section covers the major market trends shaping the Argentina Feed Additives Market according to our research experts:
Expansion in Animal Production
Increasing meat-based product consumption resulted in a surge in livestock production. According to the Chamber of Industry and Commerce of Meat and Derivatives of the Argentina Republic (CICCRA), in 2017, Argentina recorded one of the largest per capita beef consumption levels in the world, at 55.9 kg per head, and the poultry consumption was 39.9 kg per capita. According to the Food and Agriculture Organisation (FAO), in 2016, the poultry bird population was 116.8 million which increased to 119.3 million in 2018. Also, in 2016, the cattle and buffaloes population was 52.6 million heads which increased to 53.9 million heads in 2018. The poultry industry accounts for the maximum share in the Argentinian feed additives market, and it also utilizes most of the feed. Poultry market is growing by 10% each year and is focused on exporting as the cost of chicken meat produced in Argentina is one of the cheapest in the world. To meet the demand, meat and milk producers tend to increase their supply by boosting productivity. Feed additives are one of the ways by which meat and milk production can be increased.
Attractive Export Market for Meat is Driving the Market
The meat production industry is moving towards consolidation to increase meat production with reduced land usage. According to the ITC Trade, in 2019, the poultry meat export was valued at USD 414,624 thousand as compared to USD 237,602 thousand in 2016 and is expected to grow further. China is the major export destination for the Argentina meat market with a share of 50.1%. In 2018, Argentina witnessed a large shipment of its exported meat destroyed by China, due to antibiotics contamination, which will force the country to reduce feed antibiotics, thereby, fuelling the market for feed prebiotics in the country.
