MERCOSUR: Market for Lucerne (Alfalfa) Meal And Pellets 2024

Market Size for Lucerne (Alfalfa) Meal And Pellets in MERCOSUR

In 2021, the MERCOSUR lucerne meal and pellets market was finally on the rise to reach $X for the first time since 2018, thus ending a two-year declining trend. Overall, consumption, however, recorded a noticeable descent. Over the period under review, the market attained the peak level at $X in 2012; however, from 2013 to 2021, consumption remained at a lower figure.

Production of Lucerne (Alfalfa) Meal And Pellets in MERCOSUR

In value terms, lucerne meal and pellets production expanded sharply to $X in 2021 estimated in export price. Overall, production, however, saw a abrupt decline. The pace of growth appeared the most rapid in 2015 with an increase of 19% against the previous year. Over the period under review, production reached the maximum level at $X in 2012; however, from 2013 to 2021, production failed to regain momentum.

Exports of Lucerne (Alfalfa) Meal And Pellets

Exports in MERCOSUR

In 2021, after two years of growth, there was decline in overseas shipments of lucerne (alfalfa) meal and pellets, when their volume decreased by -1.8% to X tons. Total exports indicated resilient growth from 2012 to 2021: its volume increased at an average annual rate of +6.5% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, exports increased by +87.8% against 2018 indices. The pace of growth was the most pronounced in 2019 with an increase of 54% against the previous year. Over the period under review, the exports attained the peak figure at X tons in 2020, and then reduced slightly in the following year.

In value terms, lucerne meal and pellets exports fell to $X in 2021. Over the period under review, exports continue to indicate a mild contraction. The pace of growth appeared the most rapid in 2019 when exports increased by 25%. The level of export peaked at $X in 2015; however, from 2016 to 2021, the exports failed to regain momentum.

Exports by Country

Argentina dominates exports structure, reaching X tons, which was near 89% of total exports in 2021. It was distantly followed by Chile (X tons), committing a 9.1% share of total exports. Uruguay (X tons) held a relatively small share of total exports.

Argentina was also the fastest-growing in terms of the lucerne (alfalfa) meal and pellets exports, with a CAGR of +19.6% from 2012 to 2021. Chile (-12.4%) and Uruguay (-17.1%) illustrated a downward trend over the same period. While the share of Argentina (+58 p.p.) increased significantly in terms of the total exports from 2012-2021, the share of Uruguay (-13.7 p.p.) and Chile (-44.1 p.p.) displayed negative dynamics.

In value terms, Argentina ($X) remains the largest lucerne meal and pellets supplier in MERCOSUR, comprising 82% of total exports. The second position in the ranking was held by Chile ($X), with a 15% share of total exports.

From 2012 to 2021, the average annual rate of growth in terms of value in Argentina totaled +12.8%. The remaining exporting countries recorded the following average annual rates of exports growth: Chile (-14.9% per year) and Uruguay (-17.2% per year).

Export Prices by Country

The export price in MERCOSUR stood at $X per ton in 2021, which is down by -5% against the previous year. Over the period under review, the export price recorded a deep downturn. The most prominent rate of growth was recorded in 2018 when the export price increased by 5.5%. Over the period under review, the export prices hit record highs at $X per ton in 2012; however, from 2013 to 2021, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was Uruguay ($X per ton), while Argentina ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Uruguay (-0.2%), while the other leaders experienced a decline in the export price figures.

Imports of Lucerne (Alfalfa) Meal And Pellets

Imports in MERCOSUR

In 2021, lucerne meal and pellets imports in MERCOSUR skyrocketed to X tons, increasing by 80% compared with 2020 figures. In general, imports saw a prominent increase. As a result, imports reached the peak and are likely to continue growth in the immediate term.

In value terms, lucerne meal and pellets imports skyrocketed to $X in 2021. Over the period under review, imports saw resilient growth. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports by Country

Chile represented the major importing country with an import of about X tons, which accounted for 67% of total imports. Colombia (X tons) took a 19% share (based on physical terms) of total imports, which put it in second place, followed by Brazil (10%).

Chile was also the fastest-growing in terms of the lucerne (alfalfa) meal and pellets imports, with a CAGR of +63.0% from 2012 to 2021. At the same time, Brazil (+9.3%) and Colombia (+8.8%) displayed positive paces of growth. From 2012 to 2021, the share of Chile increased by +64 percentage points.

In value terms, Chile ($X) constitutes the largest market for imported lucerne (alfalfa) meal and pellets in MERCOSUR, comprising 60% of total imports. The second position in the ranking was held by Colombia ($X), with a 27% share of total imports.

In Chile, lucerne meal and pellets imports expanded at an average annual rate of +54.1% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Colombia (+6.1% per year) and Brazil (+4.7% per year).

Import Prices by Country

The import price in MERCOSUR stood at $X per ton in 2021, dropping by -5.4% against the previous year. Over the period under review, the import price showed a abrupt decrease. The pace of growth was the most pronounced in 2019 when the import price increased by 7.7% against the previous year. Over the period under review, import prices reached the maximum at $X per ton in 2012; however, from 2013 to 2021, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2021, amid the top importers, the country with the highest price was Colombia ($X per ton), while Brazil ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Colombia (-2.5%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform