June 15, 2007

Marginal increase seen on 2007 EU animal feed production

Production of animal feed in the European Union is expected to post slight gains mainly due to better demand for poultry feed, according to the European Feed Manufacturers Association (FEFAC) on Thursday (June 14).

EU-25 output of compound feed is seen to reach 142 million tonnes in 2007, the same volume as two years ago but a touch higher than the 141.7 million produced in 2006, FEFAC said.

Bulgaria and Romania, the EU's two newest member countries, together produce around 2.5 million tonnes of animal feed.

However, for this year's production outlook, the main issues would be the effect of high cereals prices and biofuels demand on the livestock sector and the availability of material for feed.

Competition for land had begun between grain for biofuel production or cattle in countries such as Germany, FEFAC said.

FEFAC also stated the spectacular increase in cereal prices in the EU may also encourage farmers to put their cereals on the market and purchase compound feed.

FEFAC, based in Brussels, represents 21 national feed associations in 20 EU member states.