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Compound feed production in 2014 vs 2013: -0.5%

While pig feed and cattle feed production dropped by 1.2%, poultry feed has seen its volume of production grow by +0.3%.

Tuesday 16 June 2015 (3 years 1 months 30 days ago)
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FEFAC members have provided final estimates for the compound feed production for the EU-28 in 2014. The compound feed production in the EU-28 in 2014 reached 153.4 mio. t, i.e. 0.5% less than in 2013. While pig feed and cattle feed production dropped by 1.2%, poultry feed has seen its volume of production grow by +0.3%. As a consequence, poultry feed consolidated its position of leading segment of EU compound feed production now well ahead of pig feed.

The most important factor having impacted feed production in 2014 is certainly the Russian ban (sanitary & economic) that started already in February 2014 as far as pigmeat is concerned and put additional pressure on farmers, especially pig and dairy farmers. The good availability of forages due to favourable weather conditions and the sharp drop in dairy prices significantly affected the demand for compound feed for dairy cows, which did not benefit at all from the 5% increase in milk deliveries in 2014.

Poland has been the only well performing Member State among the largest EU producing countries, with annual growth close to 7%. Germany recorded also a significant increase (+2.3%) while all other major producers, France, Spain, Italy, UK and The Netherlands, saw their production fall by -0.3 to -4.5%.

Germany strengthened its position as leading EU country in terms of total compound feed production before France and Spain shoulder to shoulder.

Market Outlook for 2015

FEFAC market experts foresee a slight increase in poultry feed production (+0.5%) and a further -1.5% reduction in pig and cattle feed production, in case the dairy market does not recover quickly. Overall, this would lead to a 0.7% decrease in compound feed production in 2015 vs. 2014.

A number of CAP & trade policy measures may impact performance of the feed market in 2015: the entry into application of the CAP, with the application of the greening measures that may affect the supply of grains and oilseeds, but also the end of the milk quota system. The ongoing negotiations with Russia on sanitary aspects, if concluded positively, could reactivate exports of certain pig products to Russia and alleviate the pressure on the pigmeat market.

 

Friday June 12, 2015/ FEFAC/ European Union.
http://www.fefac.eu

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