Market Trends of South Africa Alfalfa Hay Industry
High Meat Consumption is Boosting Demand for Quality Hay
- Meat consumption is a major factor responsible for the growth of the South African alfalfa market. The quality of meat products primarily drives the meat market in the country. Meat is the desired source of protein in major parts of the country. The consumption of animal products such as milk, cheese, and meat is increasing across South Africa. This can be attributed to increasing health consciousness among consumers who are reducing their consumption of fatty and high-calorie foods and shifting to healthy dairy and meat products.
- The Organisation for Economic Co-operation and Development (OECD) reported that South Africa consumed 2,392 thousand metric tonnes more poultry meat in 2022 than it did the year before, or a rise, compared to the previous year. This increased interest in high-quality meat and dairy is aiding the alfalfa market in the country.
- Alfalfa is considered one of the finest products in the international market owing to a good grading system in place that was developed by the National Lucerne Trust (NLT). The high demand for quality dairy and meat products is increasing the demand for quality feed, which, in turn, is driving the market for alfalfa, as farmers are choosing good-quality forage for cattle to produce high-quality animal products.
- The driving force for the booming dairy industry is the consistent adoption of technology, which aids in managing larger herds of cows for scalable profit. This will likely drive the general market for forage seeds specifically used for feed, which, in turn, will drive the market for alfalfa.
- Additionally, the growing demand for meat and meat-based products, such as processed burgers and sausages, is anticipated to have a remarkable penetration across the food service sector, prominently in the quick service restaurant (QSR) segment. This is futher likely to aid the market during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Increased Global Demand for South African Alfalfa
- South Africa's alfalfa is known globally because of its quality and grading. According to the Comtrade data, South Africa exported 149.3 thousand metric tons of alfalfa pellets globally in 2021. Also, the South African lucerne is graded number 1, as certified by the National Lucerne Trust (NLT) under the National Lucerne Trust's new lucerne hay quality index (NLQI) used to grade the quality of the lucerne depending on the amount of protein and fiber.
- The major importers of South African alfalfa pellets are Saudi Arabia, the United Arab Emirates, Botswana, Qatar, and Namibia. South Africa exports most of its alfalfa pellets to Namibia. The demand for alfalfa hay is increasing significantly in Namibia due to changing production practices in the Namibian dairy industry.
- Modern dairy farmers in Namibia and worldwide are raising an increasing number of dairy cows, and they prefer using South African alfalfa in cattle feed. Thus, the rising global demand for quality and protein-rich alfalfa hay from the country is expected to benefit the South African market in the near future.
