Process Management

News 750 views last update:6 Aug 2012

European compound feed production slumps 4%

The total production estimate for compound feed production in the European Union is now set at 147.6 million tonnes, which is 3.8% below the figure for 2008 (153.4 mio. t).

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%).

Four key factors have weighed on the EU feed demand in 2009:

1) The dramatic crisis affecting the dairy sector, which triggered a severe contraction of the demand for efficient cattle feed, i.e. compound feed; mainly in the 3rd and 4th quarter;
2) The continuation of the downward slope of the pig production cycle, amplified by the financial difficulties of pig farmers;
3) The low market quotations for cereals, with the consequence that farmers had few incentives to put their cereals on the market rather than using them on the farm; and
4) The financial crisis, which led to lower consumer demand for products of animal origin, i.e. to a switch to less expensive animal proteins sources.

As far as countries are concerned, Spain and France are now shoulder to shoulder for the position of EU 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.
 
 
 
Cattle
Pigs
Poultry
Others
Total
 
 
 
 
 
 
 
 
+/-
Country
2009
2009
2009
2009
2008
2009
%
Spain
6,740
9,500
4,400
909
22,117
21,549
-2.6
France
5,003
5,894
8,472
1,539
22,679
21,292
-6.1
Germany
5,876
8,923
5,169
716
21,825
20,829
-4.6
Netherlands  
3,330
5,920
3,600
450
14,577
14,040
-3.7
UK
4,799
1,494
6,239
1,303
14,001
13,836
-1.2
Italy
3,480
3,180
5,445
1,570
14,349
13,830
-3.6
Poland
670
1,370
4,340
370
7,129
6,750
-5.3
Belgium
1,097
3,580
1,326
138
6,288
6,185
-1.6
Denmark
997
2,867
550
174
4,960
4,588
-7.5
Hungary
530
1,580
1,755
205
4,125
4,070
-1.3
Ireland
2,131
633
486
400
3,693
3,656
-1.0
Portugal
805
955
1,380
270
3,510
3,410
-2.8
Romania
130
1,400
1,530
12
3,044
3,072
0.9
Czech Rep.
502
929
1,039
367
2,979
2,841
-4.6
Sweden
930
385
525
150
2,127
1,991
-6.4
Finland
600
345
305
65
1,385
1,315
-5.1
Austria
393
232
446
235
1,305
1,306
0.1
Bulgaria
35
205
410
18
710
668
-5.9
Slovakia
206
214
223
12
834
655
-21.5
Slovenia
95
110
260
12
495
477
-3.6
Lituania
32
71
245
13
401
364
-9.2
Latvia
38
111
159
17
329
325
-1.2
Cyprus
111
13
62
109
292
295
1.0
Estonia
40
140
48
2
236
230
-2.5
 
 
 
 
 
 
 
 
EUR 27 *
38,570
50,051
48,414
9,056
153,390
147,574
-3.8
*Malta, Greece and Luxembourg excluded. Milkreplacers are included in total figure.
 
Outlook for 2010
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 EU 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 dollar/euro exchange rate.
 
As a consequence, FEFAC experts foresee a further reduction in cattle feed production (-2%) and pig feed (-1%) and a stabilisation in poultry feed production. Overall, compound feed production may decrease by 1% compared to 2009.

 

Dick Ziggers

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