Brazil Maize Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on Brazil Maize Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Introduction to Brazil Maize Market

Brazil has been the third largest global maize producer for decades and the second largest maize exporter for the past 4 years. Brazil has more than doubled its maize production since 2000-01, reaching a record of 98.5 million metric tons in 2016-17. The production and productivity of maize have experienced a rapid growth due to the geographical expansion of the cultivated area as well as the adoption of technological innovations and genetically customized seeds. Area harvested to maize in Brazil has risen significantly to over 15.8 million hectares in 2015-16 from an average of less than 9 million hectares in the 1960s.

Depending on the technological level of production, the maize productivity varies between different Brazilian states. The production is mainly concentrated in the Centre-West region, principally the state of Mato Grosso; and South and South-Eastern regions, principally the states of Minas Gerais and Paraná. Ample land and a favorable climate with a long growing season enable two harvests per year. The majority of the first crop is planted in September and harvested in March whereas, for the second crop, planting begins in January after the soybean harvest. The second-crop “safrinha” maize now accounts for approximately 70% of Brazil’s total maize production. The state of Mato Grosso is the largest producer of the second crop maize. Most of Brazil’s first-crop maize is consumed domestically by the country’s large poultry and livestock industries, while the bulk of second-crop maize has traditionally been for export The prominent uses of maize include as an energy ingredient in livestock feed, as processed into a multitude of food and industrial products including starch, sweeteners, maize oil, beverage, industrial alcohol, and fuel ethanol.

 

Market Dynamics

The planted area has increased greatly due to technological improvements including the development of genetically modified seeds and hybrid seeds making it possible to cultivate in marginally suitable soils with higher productivity. The growing maize demand (grains in general) has complimented the Brazil seed industry which has undergone major changes since the second half of the 90s. There exists a healthy competition in the seed market due to the presence of a number of local players.

Owing to this there has been a tremendous increase of nearly 130.5 % in the planted area for the second crop maize over the last decade. This seasonal pattern in Brazil means more formidable competition in the U.S. maize export market. U.S. maize prices are normally lowest after harvest and the increased export price competition could exacerbate the harvest-time low.

The abundant supply of maize directly supports the maize ethanol industry. While maize ethanol production still accounts for only a tiny fraction of Brazil’s overall ethanol production, the growing domestic demand for ethanol, especially in the center of the country where gasoline prices are higher, likely mean that Brazil’s maize ethanol production will continue to expand. The recent announcement of a joint venture between Brazilian and US-based investors to build its second maize-based ethanol plant has reinforced investment trend. Six similar projects are envisioned in the upcoming two years by UNEM, a local association of maize ethanol producers.

But due to the recent unfavorable weather conditions and lower planted acres the maize prices are surging along with a huge growing demand base for Chinese maize-based ethanol. Based on the expected growth of the second crop maize, the maize production for 2018-19 is forecast at 90 million metric tons according to a report by the United States Department of Agriculture (USDA)

Market Segmentation

Segmentation based on seed type:

  • Open-pollinated
  • Hybrid seeds
  • Genetically modified seeds

Segmentation based on the source of seeds:

  • Domestic production
  • Imports

Segmentation based on the use of maize:

  • Retails
  • Livestock
  • Pharmaceutical industry
  • Food processors
  • Foodservice restaurants

 

Key Players

  • DuPont Pioneer
  • Syngenta
  • Louis Dreyfus Company
  • Monsanto
  • Cargill
  • Advanced Biological Marketing Inc,
  • Bayer CropScience AG
  • ADM

The report contains a comprehensive analysis on:

  • Brazil Maize Market Segments
  • Brazil Maize Market Drivers, Restraints and Opportunities
  • Brazil Maize Market Size & Forecast 2016 to 2022
  • Supply & Demand Value Chain
  • Brazil Maize Market Current Trends
  • Competition & Major Companies
  • Technology and R&D Status
  • Porters Five Force Analysis
  • Strategic and Critical Success Factor Analysis of Key Players

Regional analysis for Brazil maize Market includes:

  • Brazil

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macroeconomic factors, and other qualitative and quantitative insights. The impact of all such factors is delivered across multiple market segments and geographies.

Report Highlights:

  • Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
  • Consumer and Pricing Analysis
  • Market dynamics of the industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of volume and value
  • Recent market trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage

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