Insight Focus
Intensive milk systems are boosting alfalfa production in Brazil. These production models require high-quality feed, driving expansion. In the international market, Middle Eastern demand is rising due to water-related farming restrictions and the need to supply growing herds.
Alfalfa, historically marginal in Brazilian agribusiness, is beginning to gain strategic relevance in the face of growing demand in domestic and international markets. Domestically, the use of intensive milk and meat production systems has been driving the cultivation of superior-quality alfalfa, which has high protein and mineral content — essential for good livestock nutrition.
The increase in milk production itself is driving the alfalfa market. In 2024, Brazil broke a record with 35.7 billion litres of milk. This year, considerable growth of 7% to 10% is expected, mainly due to increased productivity.
Source: IBGE
Remuneration for high-quality alfalfa has been following these positive indicators. Today, payment to producers varies between BRL 1,300/tonne (USD 260/tonne) and BRL 2,900/tonne (USD 580/tonne). The upper price range, paid for premium-quality alfalfa, is much higher than that for crops such as corn, sorghum, and wheat.
Production on the Rise
It is estimated that Brazil currently has around 35,000 ha of alfalfa — still a modest number, but one with the potential to grow. It is important to note that, unlike crops such as soybeans and corn, there are no detailed official statistics on the crop. The available information comes mainly from Embrapa and industry publications.
In any case, it is possible to infer that the planted area and production have been growing, reaching around 350,000 tonnes/year. The southern region of Brazil, with a climate more conducive to the crop, has stood out in cultivation of the plant.
Source: compiled by Celso Moretti. The adopted model assumed an average crop yield of 10 tonnes/ha, below experimental values (up to 30 tonnes/ha under irrigation), reflecting the mixture of irrigated and rainfed areas.
Regions like Northwest Rio Grande do Sul already operate areas with yields of 11-12 tonnes/ha in conventional systems. In irrigated systems, productivity is usually much higher.
With intensive management, irrigation and modern mechanisation, producers can achieve more than 25 tonnes/ha and up to 12 harvests per year. These indicators place Brazil on the radar of the most productive regions in the world.
The most promising opportunities for expansion include the growing demand for feed for high-performance dairy cows, with alfalfa price negotiations linked to nutritional parameters.
The increasing use of irrigation should also allow for greater supply stability and continuous harvests. Rising international demand, especially for high-quality alfalfa, completes this encouraging triad.
Arab Countries Invest in Alfalfa Imports
Externally, the growing demand from countries such as Saudi Arabia, the UAE and Iraq — driven by the scarcity of natural resources for agriculture — has been contributing to this encouraging growth.
In recent years, countries in the Middle East and North Africa have been restricting the use of water for agriculture. Saudi Arabia even banned the cultivation of green forage in 2018, opting instead for imports.
Source: Comex
The increasing use of irrigation should also allow for greater supply stability and continuous harvests. Rising international demand, especially for high-quality alfalfa, completes this encouraging triad.
Arab Countries Invest in Alfalfa Imports
Externally, the growing demand from countries such as Saudi Arabia, the UAE and Iraq — driven by the scarcity of natural resources for agriculture — has been contributing to this encouraging growth.
In recent years, countries in the Middle East and North Africa have been restricting the use of water for agriculture. Saudi Arabia even banned the cultivation of green forage in 2018, opting instead for imports.
This movement — observed in several Arab countries and in North Africa — is anchored in the need to supply demand for high-protein feed for ruminants, horses and camels.
In Morocco, water scarcity is also driving imports of alfalfa and other plant species. The UAE, in turn, is investing in large-scale dairy production as part of its food-security strategy, with increasing imports of feed for the herd. The goal is to reduce dependence on external purchases of dairy products.
Brazilian exports have grown largely because of this trend. Although they have not yet reached significant volumes, foreign sales have skyrocketed in the last three years.
Source: Comex
Alfalfa Challenges
One of the biggest challenges in the Brazilian market is the lack of standardisation. For decades, producers sold hay without guarantees regarding crude protein content and parameters such as Neutral Detergent Fiber (NDF), Acid Detergent Fiber (ADF) and Relative Feed Value (RFV), which are essential for determining product quality.
Buyers, in turn, accepted enormous variations in quality, paying farmers by weight — not by nutritional standard. This situation is changing.
An important indicator of this shift is the recent proposal to create a Brazilian alfalfa classification system. The topic was submitted to public consultation by the Ministry of Agriculture in April of this year. The measure is expected to be approved after analysis of the suggestions submitted by technicians, farmers and the market in general.
Alfafa
It is also necessary to continue expanding the use of alfalfa varieties in Brazil, with the development of cultivars adapted to various regions. The country has already been moving in this direction, overcoming excessive dependence on the Crioula cultivar, but more needs to be done.
Another challenge is drying alfalfa in more humid regions, such as the South. The plant needs to dry after cutting; otherwise, it risks losing nutrients and even rotting. The use of covered sheds is essential.
The crop is also vulnerable to several pests, requiring fine-tuned management and careful control of insects that cause crop diseases. But none of these challenges are insurmountable. They are known, measurable, and essentially depend on investment and strategy.
