The Midwest and Northeast regions of the United States are home to a variety of types of ingredients for the feed processing industry, supplying high quality products not only to the U.S. processors but to the world. The Midwest in particular is a top producer in the value-added feed segment accounting for approximately 40% of all value-added feed sales in the U.S.
Value-added feed products are the feed additives, functional feed ingredients, premixes and other mixtures of specialty ingredients that are used to augment traditional base feeds like corn, wheat, sorghum and soybean meal. These products can come in liquid or dry forms and be pre-mixed into existing feeds at a farm or manufacturing level.
There are many great export opportunities for U.S. feed ingredients producers around the globe. In this blog we will briefly explore 3 markets with great potential for U.S. exporters: Mexico, Brazil, and Colombia as well as some of our upcoming U.S. and worldwide feed-based Market Entry activities taking place in 2020!
Mexico
Mexico has a striving and modern balanced animal feed industry. Given the complexity and maturity of the Mexican market, its geographical dispersion and the large number of players in the market, distribution is the most important factor in the success of selling U.S. animal feed in Mexico.
American suppliers should consider working through one or more experienced local distributors who know the market well. Additionally, U.S. suppliers need to be committed to a long-term investment in developing the Mexican market through a local partner by providing the needed support and visiting the country on a periodic basis.
The best way to promote U.S. products in Mexico is by visiting the market and participating in annual trade shows and national livestock conventions, since they are the best showcases for animal feed in the country and provide an excellent venue for exhibiting new products. There are also several very good magazines to place advertisements once a company is firmly established in Mexico.
The Brazilian feed ingredient market is the largest market in South America considering its production volume and growth potential. This market offers great opportunities for foreign products, with low threat of substitutes. There are significant opportunities for U.S. suppliers in the feed ingredients market in Brazil for products such as enzymes, vitamins, acidifiers, prebiotics, and probiotics. The U.S. is a reliable source of ingredients to the Brazilian feed market, supplying products not available in Brazil, or products not completely supplied by domestic production.
The suppliers that offer value-added feed ingredients with top quality are differentiated in the market, which makes a great opportunity for U.S. suppliers in the Brazilian market.
Brazil presents a growing market for feed ingredients, which is led by the concern of offering higher quality products to the animals, providing animal welfare and better conditions in the production. As feed ingredients will mostly feed animals that will become food products for human consumption, it is important to remember that the regulations and quality control are very strict in Brazil.
By offering competitive prices, the worldwide market can compete in the Brazilian feed market.
Colombia
Colombia’s market relies heavily on imported U.S. products, due to the trust Colombian consumers have on the high-quality products from the U.S. Since the United States-Colombia Free Trade Agreement entered in to force back in 2006, a 15% increase of U.S. exports to Colombia has been seen. Colombians often favor U.S. products and services over other foreign competitors. With the FTA, the U.S. is already the greatest supplier to Colombia of feed ingredients and additives.
The feed ingredients and additives Colombian market offers great opportunities for foreign producers, especially from the U.S. with high bargaining power from the part of the suppliers and particular demand for the products. Colombia presents an increasing market for feed ingredients, which is led by the concern of offering higher quality products to the animals, greater meat consumption, providing animal welfare and rapid growth of poultry production and export.
Another important reason for the increase in the animal feed additives consumption is the profitability these supplements can provide in the production as they will reduce losses, improve the weight gain, and increase the animal welfare.
The United States is a reliable market that is able to help the Colombian feed market supply, by providing products not available in Colombia, or products not completely provided by domestic production. The products with the greatest opportunities in Colombia, with better market trends, are antioxidants, enzymes, binders and vitamins.
Every year we have a number of Feed specific activities that take place in the U.S. and around the world. See below for a list of all the 2020 feed activities we currently have planned!
Feed Show PLUS! at VIV MEA 2020 – Abu Dhabi, U.A.E – March 8 – 11, 2020
Feed Show PLUS! at Ildex Vietnam 2020 – Ho Chi Minh, Vietnam – March 17-20, 2020
Value-Added Feed Ingredients Buyers Mission at the 2020 World Pork Expo
Kansas City, Missouri – June 1, 2020
Des Moines, Iowa – June 3, 2020
Value-Added Feed Ingredients at the 2020 World Dairy Expo
Minneapolis, Minnesota – September 29, 2020
Madison, Wisconsin – October 1, 2020
Feed Show PLUS! at FIGAP 2020 – Guadalajara, Mexico – October 20-23, 2020
