Learn the projections for the sector and stay ahead of challenges with ICC Brazil’s solutions contributing to animal production profitability.

The value and availability of grains, such as corn and soybeans, reflect directly on animal production’s final cost and profitability. Due to several factors in the current scenario, inputs’ production has been varying and may reach even higher values, thus directly influencing the final product’s price. Therefore, information about the sector’s projections becomes key for production planning.

What about you? Are you following the projections for corn and soybean production?

Brazil is known worldwide for the efficiency of agribusiness and biosecurity of animal origin products. Thus, producers must anticipate this and other challenges imposed by the field, seeking alternatives that ensure quality diets with lower production costs in order to increase profitability in the final product. With that in mind, we present some data on grain production, which may influence business results and solutions that contribute to those who need to face adverse conditions in the sector.

Since most of the production cost is concentrated in feeding, it is necessary to find alternatives that improve the animal’s intestinal health to better use nutrients. With this, it is possible to prevent and control diseases, mycotoxins, use of antibiotics, mortality, etc., which may result in more losses or make the final cost of producers even higher.

 

2020/21 Harvest

According to the Center for Advanced Studies in Applied Economics – ESALQ-USP (Cepea), uncertainties in corn supply remain in 2021; however, some projections show that the domestic market prices will surpass 2020. This increase is related to the crops of the first harvest affected by the dry climate, the high demands of the foreign market and exports, favored by the rise in the dollar. Even so, estimates indicate a record increase in corn production, favored by increased consumption by animal production and high export demand.

Companhia Nacional de Abastecimento (Conab) forecasts a 2.3% increase in production for the second harvest 2020/21. In addition to the output of the first harvest, the United States Department of Agriculture (USDA) estimates that Brazil can produce a record total average of 109 million tons, maintaining the position as the second-largest exporter in the world. A worldwide increase in consumption and production is expected; however, inventories are 6% below the previous season, which most likely will keep prices high. A relevant fact is that Brazil may be favored by the increase in exports in the coming months, as there is an estimated growth of 130% in imports from China.

USDA projections for Brazilian soy production generate record expectations of +5.6%, on average 133 million tons. With an internal consumption higher than in the previous period, due to the higher demand for soybean meal, there is an estimate of a 3.46% increase, with a record average of 48.1 million tons in the 2020/21 harvest.

Although soybean prices are on the rise this year, caused by the interruption of shipments from Argentina and the exchange rate appreciation (Cepea), Brazil should reduce its exports by 7.7% compared to the 2019/20 harvest. According to the USDA, this is due to the fact that China, the world’s largest soybean importer, is expected to increase the purchase of soybeans from the United States, driven by a trade agreement between the countries.

Considering the production of crops, which were partly affected by the climate, the significant increase in the exchange rate, and the increase in exports due to high demand from China, it is possible to understand the instability of prices and availability of grains, and these factors have a direct impact on animal production.

Discover alternatives to maintain quality and avoid production losses

After briefly learning about 2021 projections for the sector, it is key to invest in planning that involves alternatives that contribute to profitability while maintaining health, welfare, and animal production quality.

With a focus on the best improvements for animal health and nutrition, ICC Brazil continues to innovate its products, processes, and services, with a portfolio of solutions that mitigate external factors’ impacts on production. Besides having an excellent cost-benefit ratio, products ensure quality and food safety in such a challenging picture.

Adopting measures to control mycotoxins is a mandatory measure. The basis of animal’s animal’s diet is made of corn and soy, and most of the grains are contaminated at some point in the feed manufacturing process. Mycotoxins are a constant threat and may represent severe harm to the health of animals, impairing performance and compromising the final results. To this end, ICC Brazil introduces the Fix Line, which comprises broad spectrum adsorbent and high technology, thus meeting the demands of different stages of animal production: ZeniFix®, BetaFix®, StarFix®, and MegaFix®.

Also, there is also the ImmunoWall®, which is a consolidated product on the market, composed of β-glucans, which – in addition to adsorbing polar and apolar mycotoxins – provides a faster and more efficient response of the immune system, and MOS, which prevents colonization and multiplication of pathogenic bacteria with fimbriae in the intestinal tract.

For ruminants, RumenYeast® is the perfect solution because, in addition to nourishing the ruminal flora, it also stimulates the activity of cellulolytic bacteria and controls the rumen pH. All of these action mechanisms result in greater production of milk and meat and an improvement in the general health and welfare of ruminants.

Do you want to discover more alternatives that contribute to overcoming the current challenges? Visit our website: https://www.iccbrazil.com/linha-produtos/.