July 31, 2015

 

Animal feed to beat biofuel in grain consumptions in 10 years: FAO

 

 

In the next decade, livestock feed will spearhead the growth in the world's grain consumption, taking over biofuel as a result, according to the United Nations Food and Agriculture Organization (FAO) and the Organisation for Economic Cooperation and Development (OECD).

 

Demand for animal feed could take up 70% of the rising consumption of coarse grains (mainly corn) in the period, leading to a doubling of its share over the previous decade.

 

The trend will be driven by increased consumption of animal protein among emerging nations as well as lower oil prices and policy changes affecting demand for crop-derived biofuel, Reuters reported. The change in dietary preference is expected to boost the performance of meat and dairy prices over crops, in turn raising demand for cereals and oilseeds for the production of livestock feed.

 

"The major changes in demand are in developing countries," an annual Agricultural Outlook report by the FAO and OECD noted. "Rising incomes prompt consumers to diversify their diets by increasing their consumption of animal protein relative to starches."

 

Coarse grain will represent more than half of an anticipated rise of 390 million tonnes to 2.8 billion tonnes in the worldwide usage of cereals, the most consumed category of agricultural products.

 

Soybean will be the bellwether of growing demand for oilseed to be used for animal feed. This development is likely to benefit Brazil which possess land resources to raise its soy production.

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