In 2011, the sector saw growth of 5.2 per cent as well as turnover of $25 billion in feedstuffs and additives while producing 64.5 million MT of feed and 2.35 million MT of mineral supplements.

"The modest increase expected along 2012 will be gauged by livestock producers' performance that have suffered a lot because of higher costs of agricultural commodities and low domestics prices as well as exports slowdown for chicken, pork and beef," explains Ariovaldo Zani, CEO of Sindirações.

According to Mr Zani, the Brazilian livestock production chain has seen successful cycles of expansion, thanks to the continuous mobilization of technology and fostered by the global voluptuous appetite for animal protein. It already represents 6.5 per cent of GDP, has generated millions of jobs and is responsible for 18 per cent of the overall agribusiness exports.

Broiler Feed

Broiler production represented 50 per cent of overall demand for feed in 2011 and is expected to consume 33.2 million MT in 2012, i.e. an increase of 3.1 per cent.

The graphic below discloses data captured from the first months of 2012 and shows the deep fall on live birds prices that may be linked to the oversupply of meat since late 2011. The 5 per cent increase in chicks housing has resulted in about 13 million tons of poultry and consumption of 47.4 kg/capita, as well.

Layer Feed

The production of feed for laying hens increased 2.6 per cent and reached 5.1 million MT in 2011 in response to average housing of 79.7 million chicks as well as the domestic egg consumption growth of over 9 per cent and 162.5 eggs/capita.

Egg exports decreased 45 per cent. The supposed low egg price during the current year and increasing trends of chicks housing has driven the feed industry to forecast a growth of less than 3 per cent on layer feed, at around 5.1 million MT in 2012.

Further Reading You can view the full report by clicking here.