The North America maize market is projected to register a CAGR of 2.7% during the forecast period 2020-2025. North America is the largest producer and consumer of maize in the world. Maize is the major crop in North American countries like the United States, Mexico, and Canada. The growing meat industry in the region is creating a demand for more cereals, especially for maize and soybean, as both are highly nutritious in terms of protein is used for feeding the livestock. Corn is the primary United States feed grain accounting for more than 95% of the total feed grain production and use. More than 90 million acres of the crop is grown for maize production, primarily used for livestock and feed purposes. While the number of field farms for corn has declined in recent years, the acreage per corn farm has increased.
Key Market Trends
Production Analysis of Maize
According to the Food and Agriculture Organization, the total maize production in North America accounted for 406335.640 thousand tonnes in 2018 which is a 4.64% decrease from 2016. There are many opportunities for North America in global maize trading in various fields such as animal feed production, bio-fuel production, starch production, and corn food derivatives production. Most of the North American maize is utilized in the feed industry, followed by bio-fuel and starch industries. The increasing pressure on the livestock industry has intensified in recent years, to meet the rising demand for meat and high-value animal protein. Population growth, rising incomes in developing nations, and urbanization have led to a surge in increased livestock consumption. With the rise in usage of maize in a wide range of applications, the demand for maize is projected to grow during the forecast period.
United States Dominated the Export Market
In North America, the United States is the biggest producer and exporter of maize, contributing to 30% of the world’s maize exports. Mexico and Canada hold 1% and 0.5% of the global maize exports respectively. According to the International Trade Centre, The overall export value of maize was comparatively higher in the United States accounting for USD 12,920,884 Thousand than the other countries in the region. Mexico, Japan, Colombia, Canada are some of the major exporting markets. The levels of income and consumption of animal protein have been found to be directly correlated to the consumption of milk, meat, and eggs, which is increasing at the expense of staple foods. Since, Maize is one of the key ingredients of almost every type of compound feed for animal types, such as ruminants, poultry swine, and aquaculture. Maize is also used in processing into a wide range of food and industrial products including cereals, alcohol, sweeteners, and byproduct feed. With the rise in usage of maize in a wide range of applications, the demand for maize is projected to grow during the forecast period.
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