The forage seed market was valued at USD 20,328. 7 million in 2020. It is projected to reach USD 30,906. 3 million by 2026, registering a CAGR of 7. 5% during the forecast period. The COVID-19 has led to severe restrictions on the movements of people and goods imposed in the initial months are having widespread negative effects on the industry across the globe with international forage seed trade particularly affected.
New York, Dec. 23, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Forage Seed Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06192759/?utm_source=GNW
The forage seed trade is highly international with large volumes of seed shipped across borders to meet farmers’ demand across the globe. Yet shipments are affected by lockdowns imposed by governments across the region to stem the Covid-19 pandemic. Although many governments have since recognized seeds and other agricultural inputs as essential items effectively exempting them from lockdown restrictions seed companies have been reporting a number of supply-chain challenges. However, the market is anticipated to rise back in the coming months.
In crop type, the cereals segment is expected to witness the fastest growth as cereal crops can be successfully used as a source of forage for livestock. Among the product type, fresh forage held the largest share in the market. Mostly, forage grasses, such as sorghum Sudangrass, bermudagrass, orchardgrass, and ryegrass, are consumed as fresh forage.
By Geography, North America dominates the market. Favorable weather conditions and an ever-increasing domestic and international demand for forage crops are driving the growth of the market in the North American region. In the United States, the low futures prices for corn and soybean have caused some farmers to consider alfalfa as a more profitable crop in the current year. ?Furthermore, many regions in the United States now have access to contract seeding and harvesting operations. Therefore, the farmers need not invest huge amounts on equipment for seeding and harvesting alfalfa and can rather opt for contracting these operations.
The high economic value, coupled with the contribution of forages to improve water quality, rotation benefits, wildlife habitat, and several ecosystem benefits, is expected to boost the demand for forage seeds across the world.
Key Market Trends
Increasing Demand for the Animal Products
With a large population and recent growth in consumer income, the demand for food has increased across the world. Within the livestock products group, milk and milk products hold the dominant share due to their demand. The global consumption of animal products, such as milk and meat, is increasing, attributed to the increasing awareness of the health benefits of milk and the higher demand for protein. The high demand for quality products is increasing the demand for quality feed, which, in turn, is driving the market for forage seed. To obtain high-quality products from their cattle, farmers choose good quality forage for them.
According to the FAO, the annual growth of the meat and dairy market in developing countries is projected to be valued at 2.1% and 2.3%, respectively, from 2015 to 2030. This factor is expected to bolster the share of developing countries in the global meat production to 66% (247 million metric tons) and milk production to 55% (484 million metric tons) by 2030. Increasing awareness about the health benefits and growing demand for meat and dairy products are promoting the forage seed market, as farmers prefer good quality forage crops for their cattle to produce high-quality milk and meat.
North America Dominates the Forage Seed Market
Currently, North America is the largest forage seed market. Alfalfa is the largest traded seed among all the categories, and in the United States alone, it accounted for a major share of the market value in 2020. The United States occupies the largest market share with around 46% share in the North America. The United States is one of the major exporters of alfalfa hay to the international market, especially the Middle East. This scenario has led to an augmented demand for forage seeds in the region.? The increase in R&D by several companies in the country led to a surge in the revenue of forage seeds. For instance, in May 2019, AgReliant Genetics launched a research and testing expansion center in the corn belt located in the north-western part of the United States, focusing on corn hybrid production (silage).
In Canada, forage crops supply approximately 80% of the diet of beef cattle, contributing to 60% of the diet of dairy cattle, which increases the demand for forage seeds. The per capita consumption of chicken, beef, and pork increased from 73.21 pounds, 39.48 pounds, and 34.83 pounds in 2017 to 76.32 pounds, 39.82 pounds, and 36.31 pounds, in 2018, respectively, as revealed in Statistics Canada. The increase in per capita consumption of cattle meat positively impacted the domestic demand for forage seeds in Canada.
The domestic consumption of dairy products is rising in Mexico, particularly cheeses and dairy drinkables, which are commonly considered healthy meals by Mexican consumers. The demand for milk and dairy products in Mexico will continue to grow in the country, increasing the animal nutrition requirements, which is expected to boost the demand for the forage seed in the coming years. Overall, the increasing investments and dairy products in the market studied are anticipated to grow during the forecast period.
The global forage seeds market is a fragmented market with the presence of various players in the market. In the forage seed market, Advanta Seeds, Corteva Agriscience, DLF seeds AgReliant Genetics and Barenbrug Holdings are some of the players in the market These players are investing heavily in this market, in order to develop new products.
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