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June 19, 2017

 

EU compound feed production increases 0.4% in 2016, to decrease this year
 

 

Compound feed production in the EU (excluding Greece, Malta and Luxembourg) in 2016 reached 155.4 million tonnes, or 0.4% more than in 2015, according to the European Feed Manufacturers' Federation (Fefac).

 

Poultry feed production grew 2%, while that of pig feed fell 1%. Cattle feed production remained stable.

 

The decrease in pig feed production can be partly explained by the effects of African swine fever in Eastern Europe-which weighed heavily on the development of pig-meat production-as well as the low market prices for pig meat in the first half of 2016 and large availability of feed grade cereals at low prices, which benefitted on-farm mixing.

 

Cattle feed production is highly contrasted, as the Netherlands and Poland have seen their production increase by over 8%, whereas France moved in the opposite direction. The diverging national milk production follows the abolishment of dairy quotas, Fefac explained.

 

With regards to poultry feed production's good performance in 2016, Fefac said this confirmed its position as a leading segment of EU industrial compound feed production, well ahead of pig feed, despite the avian influenza outbreak impacting several poultry-producing regions.

 

Poland best performer

 

For the third year in a row, Poland was one of the best performing countries in overall compound feed production, with annual growth of 4.7%, boosted by the demand for poultry feed (+6%), which has turned Poland into the largest poultry-producing country in the EU, and a +8% in cattle feed.

 

Among the other large EU producing countries, Italy, the Netherlands and Spain recorded positive results (+1.0-1.5%). Germany remained stable. France saw its production fall by 3 to 4% in all segments due to either the shrinking of dairy production after the withdrawal of the dairy quotas or the impact of avian influenza in the country's southern part.

 

Overall, compound feed production is expected to decrease 0.5% in 2017 compared with 2016.

 

Fefac predicts a reduction in cattle feed production also by 0.5% in 2017, as the dairy sector has yet to recover from the severe milk price crisis and adjust to meet environmental criteria.

 

The expected stabilisation of pig-meat production in Europe could also induce a 1% reduction in demand for pig feed, Fefac added.

 

Likewise, poultry exports would continue to be affected by bird flu, putting pressure on EU poultry production and subsequently the feed segment.-Rick Alberto

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