Feedsectortakesadvantageoflower
grainprices,butendedupsuffering
theconsequencesoftheeconomic
scenariointhefirsthalfof2017
FEEDFORDAIRY CATTLE
Despite the favorable effects of the climate and the lower prices of the cereals that are
components in the feed for lactating cows, milk production suffered a decline in the
milk production hubs in the first half of 2017 andwas responsible for some kind of
competition between the dairy products that depend on the collection of rawmilk for
recomposing the retail stocks. Ariovaldo Zani, executive vice-president at Sindirações,
makes it clear that the concentration of activities in huge enterprises has considerably
improved the productivity rates, mainly because of the use of quality nutrition.
As a result, the production of feed for dairy cattle droppedmore than 3%and
amounted to 2.56million tons. “The rising imports of dairy products, in turn,
should limit the profitmargins derived frommilk in the second half of the year and
encourage consumption at the end of the chain, thus encouraging the resumption in
the production of feed”, says Zani. In agriculture, the production of feed for fish and
shrimp amounted to around 547 thousand tons, representing a 5-percent decrease,
whilst the demand for dog and cat food demonstrated resilience and soared 0.5%,
coming to a total of 1.3million tons.
D
emand for industrialized feed
reached 33.1 million tons, but
dropped 1.5% in the first half of
2017, in comparison to the same
period in 2016. These numbers
come from the National Union of the Animal
Feed Industry (Sindirações). Ariovaldo Zani,
executive vice-president of the association,
understandsthatthelowerpricesofcornand
soybean meal were not enough to encour-
age cattle confinements, prepared feed for
the dairy cattle, and for the confinement of
youngchickenandpiglets.However,eggpro-
ducers took advantage of the lower prices of
these inputs throughout the first sixmonths.
“The recovery of the shipment rhythm
and the still slow resumption of the pur-
chasing power, resulting from the small-
er inflation rate and lower interest rates,
already seemtohave reflections on the sup-
ply chain, whose perceptible reaction, since
July, could intensify in the secondhalf of the
year, although unemployment rates contin-
ue resilient and the business environment
is still rather unstable”, he ponders. In the
analysis of the first half of 2017, the market
demanded16.5milliontonsoffeedformeat
chickens, down 1.7%, in response to young
chicken confinements, which dropped 6%.
The production of feed for laying hens,
in turn, totaled 2.9 million tons, up almost
10%. The official maintains that the growth
comes as a response to the robust confine-
ment of young laying hens and to the pro-
duction of eggs, which, for their nutritive
Eager to
grow
Demand for industrialized feedamounted to 33.1million tons
Until December, however, the expecta-
tion is for a recovery in the pig farming op-
erations. The same holds true for the feed
for beef cattle, which decreased by 8% in
the first half of the year. “The reaction dur-
ing the second half of the year, although
not very promising, is credited to some in-
dications of higher values per arroba, but
recovery greatly depends on the resump-
tion of the domestic consumption levels
and on the unfolding of the North-Ameri-
can embargo, which could set a model for
the interests of other importers.
n
properties and affordable price, replace a
huge portion of the animal protein tradi-
tionally consumed by the families. Demand
for pigsdropped3.3%in the first half of 2017
and amounted to 7.7 million tons, a reflec-
tion of the 3-percent drop in pork exports
and3.5% in thenumber of pigs slaughtered.
58
Variação no custo do farelo se soja:
Junho de 2016: R$ 1.526,00 por tonelada; Julho de 2017: R$ 990,00 por tonelada.
Fonte:
JOX, elaborado pelo Sindirações.
ESFOMEADOS
hungry
Demanda por farelo de soja no Brasil - (emmilhões de toneladas)
Janeiro/junho
Frangos
Poedeiras Suínos Gado corte Gado leite Outros Total
de corte
2017
16,5
2,9
7,7
1,09
2,56
2,43 33,1
2016
16,8
2,6
7,9
1,18
2,65
2,44 33,6
%
-1,7
9,6
-3,3
-8,2
-3,4
-0,5 -1,5
