Inor Ag. Assmann
50
The expectation of the animal feed in-
dustry is for an increase of 2.9 percent
throughout 2016, even in light of the im-
minent North-American currency lower-
ing process, which is supposed to exert
even more pressure on the real. The fore-
cast by the National Union of the Animal
Feed Industry (Sindirações) refers to a
production of 71 million tons, consisting
of a sum of 68.5 million tons of feed, plus
2.5 million tons of mineral salt. In 2015,
the segment of feed and supplements for
production animals and pets totaled al-
most 69 million tons.
Demand for corn and derivatives,
which represents 60%, on average, of the
composition of feed for hogs and poultry,
should amount to some 44 million tons
throughout 2016. Veterinary physician Ar-
iovaldo Zani, CEO at Sindirações, analyzes
the interferences of the recent increase in
value of the kernel in the supply chain. In
the first quarter, the price of corn in our
national currency went up 30%, and soy-
bean meal, almost 20%. As a result, prices
of chicken and hog feeds soared 11%.
In spite of this, considering the same
comparison, farm gate prices for chicken
decreased by more than 2% and the pig
producers received only 3% more. Ac-
cording to the official, it corrodes their
profits and weakens the supply chain,
once additional increases have been re-
jected by most Brazilian consumers. The
problems of currency depreciation picked
up steam in 2015, pushing up prices of
raw materials used for manufacturing feed
for chicken, pigs, beef cattle and dairy cat-
tle, thus increasing all agricultural whole-
sale prices and undermining the financial
strength of the companies.
“It was the case of the imported addi-
tives, priced against the USD index, like
corn, whose price per ton soared more
than 30% in real”, he explains. In Zani’s
view, the situation contrasted with the rest
of the world, where the global cost of ani-
mal feed receded greatly, in particular, be-
cause prices of the cereal in dollar dropped
6%, whilst soybean meal prices went down
20%. Among the factors that exert pres-
sure on the prices, he mentions the good
crop in the United States and the favorable
weather conditions in South America.
With regard to the future, Zani argues
that, in particular, the livestock and agricul-
tural supply chains will continue ready to
absorb in a shared way the effects of the fis-
cal crunch, which he considers necessary if
growth is to be resumed, along with a re-
adjustment of public spending, and the re-
covery of the credibility in light of a global-
It hurts in the pocket
Despite the growth projected for 2016, the animal feed
industry is concerned about high corn prices in Brazil
ized world, whilst remaining in connection
with the commercial partners of interest.
“The much desired resumption of growth
does not accept any extra tax burden, but
the disposal of the failed development
model of the untimely and anticyclical poli-
cy, accounting tricks, fiscal maneuvers and
the deceased Mercosur”, he concludes.
Produção brasileira de rações – (Milhões de toneladas)
CONSUMO CRESCENTE
Soaring consumption
Fonte:
Sindirações, estimativa de junho de 2016.
Segmento
2015
2016
%
Aves
38,0
39,1
3,0
Suínos
15,8
16,3
3,0
Gado
8,0
8,2
2,6
Cães e gatos
2,44
2,50
2,6
Aquacultura
0,940
1,01
7,4
Equinos
0,58
0,59
1,7
Outros
0,83
0,83
0,0
Total
66,5
68,5
2,9
