Market Size of south america forage seed Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 541.9 Million |
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Market Size (2030) | USD 695.2 Million |
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Largest Share by Breeding Technology | Hybrids |
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CAGR (2024 - 2030) | 4.24 % |
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Largest Share by Country | Brazil |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
South America Forage Seed Market Analysis
The South America Forage Seed Market size is estimated at 541.9 million USD in 2024, and is expected to reach 695.2 million USD by 2030, growing at a CAGR of 4.24% during the forecast period (2024-2030).
541.9 Million
Market Size in 2024 (USD)
695.2 Million
Market Size in 2030 (USD)
5.12 %
CAGR (2017-2023)
4.24 %
CAGR (2024-2030)
Largest Market by Crop
13 %
value share, Alfalfa, 2023
Alfalfa is one of the major forages in high demand in the region by dairy farmers for animal feed due to its high nutritional value, short duration, and high palatability.
Largest Market by Country
75.65 %
value share, Brazil, 2023
The increasing cattle population, government support for livestock farmers, and higher seed replacement rates aid Brazil's high market share.
Fastest-growing Market by Crop
5.46 %
Projected CAGR, Forage Corn, 2024-2030
The high demand for alfalfa is due to its high protein content. It can be used as fresh fodder as well as hay. It can be harvested 10-12 times per crop season.
Fastest-growing Market by Country
4.58 %
Projected CAGR, Argentina, 2024-2030
The increasing demand for alfalfa hay among cattle farmers and the rapid growth of GMO (herbicide-tolerant) alfalfa cultivation are driving the country's fastest growth.
Leading Market Player
11.91 %
market share, Bayer AG, 2022
The company offers high-yielding hybrid forage crops, mainly alfalfa and forage corn. It has collaborated with multinational companies for seed genetic improvement programs.
Increasing forage crop cultivation area and cattlemen preferring non-transgenic seeds with ethanol processing are expected to help in increasing the demand for hybrid seeds in the region
- In South America, the area under the cultivation of forage crops in 2022 was 8.7 million hectares, which was about 7.8 million hectares in 2017. It is an increase of 11.5% from 2017 to 2022 due to an increase in the demand for animal feed.
- In 2022, South America accounted for 9.3% of the global forage seed market due to the increase in the production for export to neighboring countries as a raw material for feed production.
- Brazil is the largest user of hybrid seeds for forage cultivation, which accounted for 59.7% of the region's hybrid forage production area in 2022. However, transgenic hybrid penetration is more prevalent in Argentina.
- Some cattlemen have a preference for forage crops produced using non-transgenic hybrid seeds because they are easily digestible by the cattle. Corn silage is being used for corn ethanol production in Brazil, which led to forage corn becoming the fastest-growing crop in the region.
- The share of forage crops cultivated using open-pollinated varieties and hybrid derivative seeds in the country was 26.1% in 2022. It is largely contributed by native grasses of the Brachiaria genus.
- The Brachiaria grasses are grown either wild or as cover crops or rotation crops for extra for farmers between two seasons, which helps in nutrient cycling. Therefore, OPVs are expected to grow over the forecast period owing to those factors. However, commercial cultivation is done by hybrids and GM varieties that require lesser inputs and more productivity, which is expected to register a CAGR of 2.4% in South America during the forecast period.
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Brazil holds the largest share of the South American forage seed market due to government support programs for forage cultivation and robust demand from the livestock industry
- Brazil is the largest country in the South American forage seed market due to the increased demand for beef production, the growing livestock population, and government support programs for the cultivation of forage crops.
- According to the USDA, beef production in Brazil is estimated to grow from 2023 to 2030 due to the increasing availability of cattle and improved margins for slaughterhouses. For instance, the number of cattle in Brazil was 372.8 million in 2021, an increase of 4.2% from 2017. The increasing livestock will likely increase the demand for meat in the country and boost the production of forage crops.
- Argentina is anticipated to register a CAGR of 4.6% during the forecast period as it is globally the second-highest consumer of beef, with a yearly consumption of 55 kg per person. In 2019, Argentina had about 400 slaughter plants. Over the past several years, industry investments have grown to increase slaughter capacity due to increasing consumption. Therefore, the demand for feed is expected to increase and boost the market's growth in South America during the forecast period.
- The Rest of South American market held the smallest share in the region because of the low-quality seeds available in these countries, but the Lianos of Colombia and Venezuela are major commercial centers for livestock in South America. Therefore, the demand for seeds is anticipated to grow during the forecast period.
- Therefore, government support in funding the cultivation of forage crops, an increase in the livestock population, and increasing meat consumption in the region may boost the growth of the forage seed market during the forecast period.
