Market Trends of Mexico Feed Additives Industry
This section covers the major market trends shaping the Mexico Feed Additives Market according to our research experts:
Increased Production of Compound Feed
Demand for a high-quality compound feed from the livestock industry due to increased industrial production of meat and dairy products elicited growth in the consumption of compound feed and feed additives in the country. Further, raw materials used for compound feed production, such as maize, barley, and soybean, are used for human consumption and ethanol production in the country. In this scenario, the feed industry competes with the food industry for raw materials. This situation generated a demand for cost-effective additives as the region's need for raw materials increased. Home mixers and large farm owners provide livestock additives to ensure a steady supply of high-quality meat, dairy, and derived products.
In addition, the country is engaged in increased animal feed production to meet the growing demand caused due to rising livestock production. According to Mexico's National Council of Manufacturers of Balanced Feed and Animal Nutrition (CONAFAB), the cattle feed market accounts for approximately 20% of Mexico's national feed production (10% beef cattle and 10% to 11% dairy cattle). Hence, the increased production of compound feed in the country increases the demand for quality and cost-effective feed additives.
Increasing Demand from Poultry Sector
The poultry sectors (chicken, turkey, and eggs) are Mexico's pillars of animal protein production. According to USDA, broiler meat production is expected to continue to increase as vertical integration spurs improvements in genetics and biosecurity. This production growth is meeting the rise in broiler meat consumption.
In the coming years, continued growth is anticipated in the poultry meat and egg sectors, building on expansion and vertical integration. Mexico has witnessed steady growth in poultry and egg production as chicken meat is still the preferred animal protein for domestic consumption due to Mexican cuisine's lower price and versatility. Mexico is also the number one consumer of eggs in the world.
Further, most feed grain consumption in Mexico is from the poultry industry, accounting for most of the costs associated with producing chicken meat and eggs. According to the Mexican Association of Feed Producers (AMEPA) and the National Council of Producers of Balanced Feed and Animal Nutrition (CONAFAB), about half of animal feed is fed to poultry. Additionally, feed additives are critical for achieving success in poultry farming in terms of production and health, increasing the demand for additives from the sector.
