August 5, 2005

World wheat consumption to soar with FSU and EU feed use

2005-06 world wheat consumption was expected at 614 million tonnes, an eight million tonnes rise from the year before and 23 million tonnes above the 5-year average, according to the US Department of Agriculture (USDA).

High availability and use of feed-quality wheat in the Former Soviet Union (FSU-12) and the European Union (EU-25) were considered the cause of the increase.

The USDA forecasts 98 percent of the increase in world wheat use would be attributed to the FSU-12 and EU-25 in 2005-06, most of which would be used for animal feed.

Feed would account for 4 of the 4.5 million tonnes increase in total use in the EU-25 and 3 of the 3.7 million tonnes increase in the FSU-12.

Good harvests this year were expected from increased production incentives for member states in the EU-25, and favourable weather in the FSU-12.

Feed use in the FSU-12 and EU-25 accounted for 32 percent and 50 percent of total wheat use in the two regions respectively, far exceeding the 18 percent world average and the US 17 percent feed use rate.

However, total FSU-12 wheat use for 2005 was forecast to reach 77 million tonnes, with only 24 million tonnes going to feed.

On the other hand, the EU-25 has steadily increased the percentage of wheat use for animal feed.