The year 2023 has already begun and the feed producers, the farmers, and other input producers in the agribusiness chain are already paying attention to the forecasts for the sector, which should go through uncertain times in view of a new government that starts its work now, besides, of course, the constant devaluation of the real against the dollar and the energy crisis in Europe.
These notes were disclosed by Sindirações, in the annual meeting held with important names in the segment at the end of the year. On the occasion, the numbers reached in 2022 were also presented. Let’s go to the main highlights pointed out by the CEO and other representatives of the organization that brings together feed producers in Brazil.
Positive scenario in 2022
Despite having been a troubled year when we analyze the political scenario in Brazil and the financial situation inside and outside the country, we can say that the results of 2022 were positive for those who produce and sell animal feed.
Facing a growth of 1.3%, Sindirações CEO, Ariovaldo Zani, highlighted and congratulated the Brazilian entrepreneurs for their resilience in the face of an unfavorable perspective at the beginning of 2022 and that even with all the problems involving labor, shortage of inputs and inflation, they managed to close the year in a positive way and contributing with almost 25% dthe general growth of the Brazilian GDP.
Figures for 2022
In the annual disclosure, Sindirações highlighted some interesting numbers to be analyzed by producers of animal feed. Among them is the growth of three very important segments, which are: pig feed, with an increase of 4% em over 2021, beef cattle, with 3% a more, and the cat dog sector, with more than 6%.
On the other hand, the alarm bells have been ringing for the production of dairy and egg-layer feed, which fell by 3% e 4%, respectively.
And in general, the data point out that until the beginning of December, when the numbers were released, Brazil had produced approximately 82 million tons of feed, considering all segments, which are: poultry, broilers, layers, pigs, cattle, milk, beef cattle, dogs and cats, horses, aquaculture, and others.
Evolution of the cost of feed
As mentioned earlier, the disparity between the real and the dollar has greatly affected the production cost of animal feed, especially for poultry and pigs. The reflex of this, however, is felt throughout the consumer chain, i.e., the supplier of raw material sells to the producer the inputs at a higher price, the producer sells to the cattle raiser or final consumer for a higher value.
In a comparative manner, Sindirações elaborated a graph that shows the evolution in the increase in prices of the above mentioned segments (poultry and swine), analyzing the price per ton of feed in the Brazilian and North American currencies.
Graph taken from the Sector’s Newsletter – December/2022, available on the Sindirações website.
While the cost of feed increased by 48% in foreign currency, here in Brazil there was a growth of 120% in the value of the product. Over here, the largest peaks, since 2019, were noted in the months of March and May 2022. Although they closed the year down, costs are still very high compared to the United States.
What does Sindirações say?
Already thinking about the prospects for the year 2023, the president of Sindirações, Ricardo Ribeiral, highlighted an extra concern with the preservation of the environment, a topic that has been discussed in events about the preservation of the ecosystem all over the world. For him, it is necessary to be within the conservation agenda, regardless of the government that is in charge in the country, and agribusiness is extremely relevant for the national economy, so it needs to be aligned with these discussions.
Besides, Ribeiral highlighted the growth in productivity caused by technology, “with technology, we have been gaining a lot of productivity and we are able to feed our population and the whole world more and more.
This is why cost optimization and data analysis systems to decrease variability for better resource utilization are becoming crucial for any company, from small to large corporations.
Expectation for 2023
For this year, the organization’s recommendation is caution, because it is natural that when there is a change in government the market reacts in different ways, until everyone understands the new policies and adapts to them. Ariovaldo Zani defined that the moment is one of “certainty over uncertainty”.
Besides this governmental change, there are still the tensions involving Russia and Ukraine, which have destabilized Europe since the beginning of 2022. All these facts result in the Brazilian GDP growth projection of at most 1%.
