Market Trends of Forage Sorghum Seed Industry
This section covers the major market trends shaping the Forage Sorghum Seed Market according to our research experts:
Increased Demand for Meat, Dairy, and Poultry Products
The main industries using sorghum seeds are animal feed manufacturers, alcohol distilleries, and starch industries. Only rainy-season sorghum is used for industrial purposes. The sorghum varieties available in the United States are completely tannin-free. As a result, sorghum can be used in poultry diets with only minor changes to the other dietary ingredients. In developing countries, such as India and Indonesia, sorghum is produced on a commercial basis and is used exclusively as an animal feed, either in the domestic market or in export destinations. According to the FAO, the annual growth of meat production and milk production in developing countries is projected at 2.1% and 2.3%, respectively, from 2017 to 2030. This factor is anticipated to bolster the developing countries' share in the global meat production to 66% (247 million metric ton) and milk production to 55% (484 million metric ton) by 2030.
Sorghum forage is mainly used for feeding livestock. The continuous increase in the production of animal products has resulted in the demand for more feed to rear them. The rising demand for animal products in the global commodity market and the higher prices in the international markets are encouraging farmers to take up sorghum forage cultivation.
The United States Dominates the Global Market
The US forage sorghum seed market is projected to witness a CAGR of 6.2% during the forecast period. The United States cornered the largest share, accounting for 84.8% of the total North American forage sorghum seed market in 2019. A steep fall in sorghum seed sales was observed, especially during the period 2016-17. This is primarily attributed to severe drought conditions, while the production ramped up in the latter part of 2016, and hence, the demand for forage sorghum seed increased drastically. According to statistics provided by the United States Department of Agriculture(USDA) over the period of 2017-20, the contribution of major sorghum-producing states in the United States, such as Kansas and Texas, accounted for nearly 58% of the sorghum seed sales in 2019. The United States is one of the major exporters of sorghum silage, and China, Japan, the UAE, Saudi Arabia, and South Korea are the top five export destinations for the product. Thus, the rising export demand for the seed sorghum, especially from the massive Chinese feed industry, is anticipated to boost forage seed sales from the commercially operated sorghum forage farms in the country. Allied Seed LLC, S&W Seed Co., and Legend Seeds are a few major market players offering a huge line-up of forage sorghum seeds in the United States market.
