February 21, 2011


EU's poultry feed takes over pig feed 



EU's poultry feed overtook pig feed for the first time ever, to become the principal segment of compound feed as 2010's compound feed production in the EU-27 may have attained a level of 149 million tonnes.


That level is about 0.5% above 2009's figure and the data is according to the preliminary statistical data provided by members of the European Feed Manufacturers' Federation (Fefac).


This positive result is exclusively due to an increased demand for poultry feed (+3%), whereas the pig feed production fell back by 1% and the cattle feed production remained stable.


The most important factor which has weighed in on the EU feed demand in 2010 was the dramatic crisis affecting the pig sector, aggravated by the high feed materials costs, which triggered a contraction of the demand for efficient pig feed.


Germany and France are shoulder to shoulder for the position of EU leading country in terms of total compound feed production, preceding Spain.


The final estimate and detailed breakdown of the 2010 results will be presented on the occasion of the next Fefac Annual General Meeting on June 8-9, 2011 in Bruges, Belgium.


Fefac experts foresee a stabilisation in cattle feed production, a slight increase in poultry feed demand (+0.5%) and a further set back in pig feed production (-1.5%).


Overall, compound feed production may decrease by 0.5% compared to 2010. Fefac President Patrick Vanden Avenne stressed, however, that "demand for pig feed may be further depressed if the quotations for the key feed materials (in particular cereals) in the second half of 2011 remain high".


"Unless EU authorities do urgently adopt market management measures to allow imports of cheaper feed grains and the 'technical solution' to avoid soya trade disruptions due to low level presence of non-EU approved GMOs, many livestock farmers, especially pig holdings, will have to close down their operations since they cannot pass on higher feed costs to the consumer in the present market context," he said.

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