The balanced food industry will close 2023 with an approximate growth of 7.4%, according to figures from the Association of Balanced Food Producers (Aprobal), and despite the announcement of the arrival of the El Niño phenomenon, the sector is aiming for sustainable growth until 2024 until the increased chance of moderate rain.

According to Approbal, animal feed (for poultry, pigs, cattle and pets) had the highest growth with 10.1% (to 3.6 million tons), while shrimp feed reached a growth of 3% (to 2 million tons). . There are currently more than 50 commercial companies dedicated to the production of balanced feed for poultry, pigs, cattle and pets, and about 20 companies producing shrimp feed.

The agricultural sector warns of the possible occurrence of El Niño at the end of the year, which could affect rice, banana and corn crops

“If informal establishments that produce, on a smaller scale, balanced food for sale to third parties are included, the total figure could be approximately 90 companies. If we also include poultry and pig producers who produce balanced animal feed themselves, the total number of plants producing balanced animal feed can reach close to 200”, the union calculated.

In terms of volume, the shrimp and poultry sectors consume the most balanced feed, with approximately 2 million tonnes per year each in 2023. They are followed by the pork sector with 1.25 million tonnes in 2023. The livestock sector, which mainly includes dairy cows, consumes the least, with an estimated 0.3 million tons in 2023.

Balanced food production equals 4% of GDP

Consolidated balanced food production has an annual value of approximately 4.6 billion USD, which corresponds to 4% of Ecuador’s GDP. This important value represents the sum of the various goods and services that participate in the cost structure of the industry, indicated Approbal.

“Among those cost factors that participate, first of all, is human capital that operates at all levels of the production process. They are followed by raw materials, which are, first, agricultural materials, such as cereals and oilseeds, and then minerals and vitamins. Then you have to think about investing in equipment and machinery, and finally about transportation services, fuel and lubricants,” the union explains.

Pronaca invests 25 million dollars to increase the capacity of its factory for the production of feed for chickens and pigs by 50%

He also explained that if you take into account the link that comes after a balanced diet, which is the production of animal proteins: shrimp, chickens, eggs, pigs and others, the spectrum and economic impact of this cluster is even greater. The National Chamber of Aquaculture (CNA) reported that in 2022 shrimp exports were more than $7,000 million, while poultry reported sales of $1,800 million and pork $500 million, for a total of $9,300 million, which is equivalent to 8% of Ecuador’s GDP.

Concern over the lack of authorization to import corn

But despite the good balance of the year, Approbal is one of the unions in the animal protein production chain that is concerned about a possible shortage of hard yellow corn, a raw material for the production of balanced animal feed that the industry requires. production of animal proteins, such as chicken, pork and eggs.

Unions of the animal protein chain worried about the lack of authorization to import corn to cover the deficit

The union, along with the Association of Balanced Feed Producers (Afaba), the Association of Pig Breeders of Ecuador (ASPE) and the National Corporation of Poultry Breeders of Ecuador (Conave), issued a statement last weekend warning that there could be a shortage of grass during February and March 2024, which would threaten food security in the country.

After the advisory council, which was convened by the Undersecretariat for Marketing of the Ministry of Agriculture and Livestock (MAG), producers and industrialists of the corn sector presented their views and analyzes on the approval of corn imports to cover the industry’s annual deficit, but no agreement was reached. Local production covers only between 85% and 90% of the annual demand, which by 2022, according to the calculation of the industrial sector, was 400,000 tons, much more than that of 2021, which was 230,000 tons, but above the deficit calculated for this year, the sector he did not give details.