Global Alfalfa Hay Market Growth
The global alfalfa hay market was valued at USD 799.9 million in the year 2016 and is expected to record a steady CAGR of 4.9% during the forecast period from 2018 to 2023.
North America, particularly the United States, dominates the alfalfa hay exports market. Weather conditions in 2017 and the decline in global dairy product prices have largely affected the production of alfalfa hay in the country. Irrespective of the decline of production in the United States, the market for alfalfa is expected to grow as demand in the Asian and Middle Eastern countries continues to rise. Livestock is a major factor responsible for the growth of the global alfalfa hay market. The world food economy is being increasingly driven by the shift in diet and food consumption patterns towards
livestock products. In developing countries, consumption of meat has been growing at 5-6% per annum and that of milk and dairy products at 3.4-3.8% per annum over the past few decades. As per the National Center for Biotechnology Information (NCBI), the annual growth of milk production in developing countries is projected at 2.5% by 2030.
Exporters of alfalfa hay are expected to drive the market ahead of dairy buyers, owing to weak dairy product prices and decreased usage of hay in the milk and dairy production business. The export market is expected to offset the demand for alfalfa hay from the dairy segment. Demand is on the rise in Asian countries like Japan and China, while government regulations on water conservation in the Middle Eastern countries have resulted in increased demand from the region as well.
Lower milk prices through 2015 and 2016, coupled with weather-related forage quality issues, caused hay stocks to build and put downward pressure on hay prices. However, the top five importers, consisting of China, Japan, South Korea, the United Arab Emirates, and Saudi Arabia, responsible for buying over 95% of US hay exports, are increasing their import volumes and paying a premium for higher-quality hay, supporting prices at their current levels.
Saudi Arabia’s decision to phase out forage production is expected to drive the demand for high-protein alfalfa. The country wants to severely upsurge compound feed production so that domestic livestock producers have ample quantities of nutritional processed feed at competitive prices. The demand for high-quality alfalfa hay is likely to be about 1.2 million metric ton per year once the transition is complete.
The Alfalfa Hay market size to maintain the average annual growth rate of 2.64% from 25800 million $ in 2014 to 27900 million $ in 2017, Research analysts believe that in the next few years, Alfalfa Hay market size will be further expanded, we expect that by 2022, the market size of the Alfalfa Hay will reach 29600 million $.