April 9, 2008

New Zealand reports 6 percent surge in compound feed production

The New Zealand Feed Manufacturers Association (NZFMA) reported an increase of total compound feed production by its members at 47,597 tonnes or 5.7 percent for 2007.

Michael Brooks, executive director of the association, said the increase in production is the biggest annual increase by NZFMA members since 2003. "

Brooks added that the increased demand for dairy feed is one of the main reasons for the increase.

The relatively high dairy commodity prices and increased payouts to New Zealand dairy producers indicate that using a complete feed as part of the production system, rather than just relying on pasture or forages alone, is a more attractive and highly effective way for farmers to increase their overall returns, the association explained.

Furthermore, Brooks noted that supply constraints in the global grain market are making it increasingly difficult for livestock producers, who have traditionally manufactured feed on-farm, to source sufficient raw materials at a reasonable cost.