Market Trends of south america forage seed Industry
An increase in the demand for healthy animal feed, growing livestock farming and meat industry are driving the cultivation area for forage crops
- The area cultivated under forage crops has increased by about 13.6% between 2017 and 2022 because of the increase in the demand by cattlemen, the meat industry, and the increase in livestock in the South American region. In 2022, the cultivated area for alfalfa was about 50.1% of the total cultivated area of forage crops. This domination of alfalfa is mainly attributed to the crop's high protein content, which provides healthy feed for livestock.
- Argentina held the largest area under forage crops, with 4.7 million hectares in 2022, which accounted for 53.9% of the region's forage crop area. This is followed by Brazil with 40.2% in the same year. Despite Argentina holding the largest area under forage cultivation, the commercial forage cultivation area is less in Argentina compared to Brazil. For instance, the commercial cultivation area of forage crops in Argentina was 0.5 million hectares compared to Brazil, which had 1.1 million hectares in 2022. This variation is mainly attributed to the large area of natural pastures in Argentina. Furthermore, the forage area in Brazil has increased by about 14.3% between 2017 and 2022. This increase is mainly attributed to the growing demand for the forage crops from the livestock industry. Moreover, Brazil had about 12.0 million hectares of degraded pasture land as of 2021, and the conversion of this pasture to cultivated pastures could generate an additional production of 17.7 million bovines while reducing the need for new agricultural land. This may drive the overall forage crop area in the country during the forecast period.
- The increasing demand for forage crops from the livestock industries is anticipated to drive the overall forage crop area in the region during the forecast period.
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Different climatic conditions and higher weed concentrations are driving the demand for wider adaptability and herbicide-tolerant alfalfa seed traits
- Alfalfa is the primary forage crop in the South American region, predominantly grown in Argentina and Brazil. In South America, over 50% of the alfalfa varieties cultivated possess disease resistance, herbicide tolerance, and adaptability to various growing conditions. In 2019, Argentina began cultivating genetically modified (GM) alfalfa to mitigate yield losses caused by weed infestations. These GM alfalfa varieties, developed by Bioceres, are tolerant to glyphosate herbicides. These herbicide-tolerant cultivars help reduce weed infestations, resulting in a 20-30% reduction in crop losses. Currently, herbicide-tolerant varieties are widely offered in the region by Bayer AG, Corteva Agriscience, and Limagrain.
- Similarly, there is a growing demand for alfalfa varieties with wider adaptability and disease-resistant traits. These traits enable crops to withstand various growing conditions and provide resistance to root and crown diseases. Companies such as DLF, S&W, Limagrain, and Bayer offer varieties with these multiple traits in their seeds. Some commercially available varieties with these traits from DLF include PGW 931, ACA 903, and Crioula, while S&W offers SW 3407, SW 6330, and SW 10.
- Other popular alfalfa traits in the region include dormant and non-dormant cultivars suitable for different seasons, lodging resistance, and high dry matter content. Consequently, the increasing prevalence of diseases, weed populations, and changing climatic conditions are major factors driving the demand for these traits to combat these challenges, and this demand is anticipated to continue growing during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Hybrid breeding dominated the market due to its advantages of high yield, disease resistance, and improved quality traits
