November 6, 2020

 

EU compound feed production 2020 to fall 2.2 %: FEFAC

 


EU compound feed production (EU 27 + UK) for farmed animals in 2020 is estimated at 161.4 million tonnes, a decrease of 2.2% compared to 2019, according to forecast data provided by FEFAC members.


All main feed categories are set to decrease, mainly as a result of the combined indirect impact of COVID-19 affecting consumer demand for products of animal origin and the direct effects of the spread of animal diseases (African swine fever, avian influenza).


Cattle feed production, which is estimated to decrease by 2.9% compared to the previous year, is suffering most from the COVID-19 measures applied during the first and second waves, in particular the closure of the HORECA chain (Hotel/Restaurant/Catering). The decreased demand for more expensive cuts of meat, like veal, fresh meat and added valued dairy products, have impacted the whole supply chain. Farmers have reduced usage of compound feed in their feed ratios, in order to reduce milk output and slowing growth of livestock. This was only partially compensated by rising demand in Eastern Europe where drought conditions led to poor forage harvests.


Concerning EU swine feed production, a decrease by 1.1% has been forecast. Spreading ASF triggered the Chinese import ban of pork from Germany. Spain can only partially replace Germany in exporting to China, due to limited production capacity. A knock-on effect of the ban is that pork initially destined for export to China will stay in Europe, impacting swine feed production. On top of ASF, some member states, (e.g. The Netherlands), are depopulating their swine herds in order to lower agricultural environmental emissions.


Poultry feed production is set to decrease by 2.7% after several years of steady increases. The poultry sector reacted to the COVID-19 lockdown measures launched in spring 2020 by reducing its production, leading to significantly lower demand for poultry feed. Following a period of partial recovery during the summer months, a further decrease is expected by the end of the year, mainly in Romania, Ireland and Spain. Avian influenza spreading in several parts of Europe will hamper any recovery on the ground. Poultry feed production may possibly lose its position as the leading segment of EU compound feed production to swine feed, for the first time after more than a decade, as a result of a continuous downward trend.