European compound feed production slumps 4%

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 3^rd and 4^th 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.