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E.U. compound feed production drops 4%
07.06.2010 12:38 "Agro Perspectiva" (Kyiv) —
In the wake of the XXV European Compound Feed Manufacturers’ Federation (FEFAC) Congress on competitive sustainability of the E.U. feed and livestock sector in Hamburg, Germany June 10–11, FEFAC members provided final estimates for the compound feed production for the E.U.-27 in 2009.
The total production estimate is now set at 147.6 million tonnes, for example 3.8% below the figure for 2008 (153.4 million tonnes). The significant downturn has affected all animal species, in particular cattle feed (around -6%), pig feed (-5%) and, to a lesser extent, poultry feed (-1%).
As far as countries are concerned, Spain and France are now shoulder to shoulder for the position of E.U. leading country in terms of total compound feed production, preceding Germany. Spain indeed registered a lower decrease, i.e. -2.6% whereas Germany, France, Italy and The Netherlands experienced a downturn within a range of -3.6/-6.1%. Cattle and pig feed production went down in almost all countries, whereas poultry feed production increased in Italy, Belgium, Hungary, Poland and Portugal but dropped in France, Germany, The Netherlands and Spain.
FEFAC experts identified as key drivers for the compound feed market in 2010 a continuation of difficulties in the dairy sector despite a modest increase in milk prices, the end of the downward trend in the pig production cycle and a continued recovery in consumer demand for poultry products. The current forecasts for the E.U. cereals harvest 2010 indicate relatively low quotations for new crop grains in 2010, while soybean meal prices are expected to remain stable: the announced decrease in global quotations due to record harvests in South America is likely to be offset by a less advantageous $/€ exchange rate.
As a consequence, FEFAC experts said they foresee a further reduction in cattle feed production (-2%) and pig feed (-1%) and a stabilization in poultry feed production. Overall, compound feed production may decrease by 1% compared to 2009.
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