June 21, 2012
EU 2011 compound feed output forecast slides 0.3%
Total output projection for the 2011 compound feed production of the EU-27 (Greece, Malta and Luxembourg excluded) is pegged at 151 million tonnes, or 0.3% below the figure for 2010, according to FEFAC members.
Cattle and pig feed have seen their production fall, respectively by -2.1 and -0.6%, whereas poultry feed increased by 1.1%, thereby confirming its position of leading segment of compound feed slightly above pig feed.
The most important factors which have weighed on the EU feed demand in 2011 were the still fragile economic situation of the pig sector and the high feed material costs. With regard to ruminants, the severe drought in the first months led to a lower forage harvest during the spring cut but this was offset by the good autumnal weather conditions that favoured grass growth.
EU Member countries recorded very different performances, with some experiencing dramatic falls of their compound feed production such as Czech Republic (-14%) or Denmark (-6.6%), whereas several countries such as Germany, Poland and, to a lesser extent, Italy, managed to buck the general market trend with positive growth around 3%, supported by a surprisingly quick recovery of pig farming activity.
The high cereal prices over the last two years contributed to improving the competitive market position of industrial compound feed production vs. home mixing. However, this gain was offset to a certain extent by the development of alternative pig feeding strategies based on roughly grinded feed and liquid feeding.
As a result, Germany's position was strengthened ahead of France as the leading EU country in terms of total compound feed production, with Spain scoring third.
As a consequence, FEFAC experts foresee a stabilisation in cattle feed production, a slight increase in poultry feed demand (+1%) offset by a reduction in the demand for layer feeds (-5%) and a further setback in pig feed production (-0.5%). Overall, compound feed production is expected to remain stable vs. 2011.
