March 16, 2006

Strategie Grains trims EU feed-use forecast

European Union poultry feed consumption estimates have been lowered for the 2005-06 and 2006-07 crop years due to bird flu, according to the Strategie Grains monthly analytical report released Thursday.

The report also says that 2006-07 European Union industrial feed production has the potential to decrease further.

"We are now working on the basis that demand for poultry meat for human consumption will return progressively to the pre-bird flu crisis level at some point in the first half of 2007," the report said.

However, the report also added that a decline in actual consumption would be partially limited as EU cereals are now more competitively positioned in several countries.

Strategie Grains lowered 2006-07 projections the most in corn feed consumption, which is now estimated at 37.9 million tonnes, down 600,000 tonnes from last month's forecast.

For 2005-06, the corn feed consumption estimate was trimmed by 500,000 tonnes to 38.0 million tonnes.

The 2006-07 wheat feed consumption estimate was trimmed by 400,000 tonnes to 54.0 million tonnes.