Compound feed

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EU: 2015 compound feed up slightly on 2014 level

According to data provided by FEFAC members, compound feed production in the EU-28* in 2015 reached 157.3 million tonnes. This is 0.6% more than in 2014.

Feed costs remained low and even decreased compared to 2014. This was due to a good 2015 cereals harvest in the EU, both in terms of quantity and sanitary status, and a largely sufficient supply of oilseed meals globally, especially soybean meal. This compensated the still decreasing pigmeat quotations to a certain extent, while pigmeat production continued to increase by close to 4% in 2015.

Breakdown per animal species

While cattle feed production dropped by 0.7%, pig feed and poultry feed grew by respectively 0.6% and 1.2%. Poultry feed thereby further enforced its leading position in EU feed production. With regard to cattle feed, the picture is as usual very contrasted across Europe, depending on weather conditions for forages production. The effect of the lifting of the quota regime, with a +2% milk delivery in 2015 vs 2014, was hardly visible for the compound feed industry EU‑wide, with the exception of Ireland and the Netherlands. Finally, poultry feed production continued to grow, boosted by an increase per capita in meat consumption (+2.7%), which primarily benefited poultry meat (+4%). As a consequence, poultry feed consolidated its position as the leading segment of EU compound feed production, now well ahead of pig feed.

Germany and Spain: current leaders in compound feed production

Poland and Spain have been the only well performing Member States among the largest EU producing countries, with annual growth close to 4%. Germany recorded a significant decrease (-2.9%) after 5 consecutive years of growth, whereas the UK was set back by more than 4%, especially because of bad results in poultry feed. All other major producers – France, Italy and the Netherlands – saw limited changes in their production records. Germany and Spain are shoulder to shoulder in their position as leading EU countries in terms of total compound feed production, well ahead France.

Forecast for 2016

FEFAC market experts are relatively pessimistic concerning industrial compound feed production in 2016. They do foresee that the upward trend on poultry feed demand will persist, though at a slower pace than in 2015 (+0.5%), but also a significant reduction in pig feed demand (-1.5%), in line with expert forecasts on pigmeat production in the EU. Overall, this would lead to a 0.7% decrease in compound feed production in 2016 vs 2015.

On the feed materials side, concerns regarding the quality of the EU cereals harvest 2016 due to the humid and cold weather conditions in several EU Member States may result in higher supply of feed wheat. However, prudence will be required with regard to the sanitary quality. Concerning proteins, after the lower than expected South American soya harvest 2016 combined with a higher global demand for soybean meal, the attention is put on the US soya harvest forecast, which is relatively good for the time being.

*Greece, Malta and Luxembourg excluded.

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