Commercial compound feed manufacturing within the EU remained solid in 2021. Having a look ahead, the unfold of animal illnesses and the continued international grain marketplace rally fuelled by means of the Russian invasion of Ukraine is predicted to scale back compound feed call for in 2022 by means of 4–5 Mio lots.
EU compound feed manufacturing (EU27) for farmed animals in 2021 is estimated at 150,2 Mio t., an build up of 0.03 % in comparison to 2020, in line with knowledge equipped by means of FEFAC participants. Except for for the pig feed sector, all different sectors controlled to stabilize/or moderately build up their manufacturing regardless of the continued Covid-19 pandemic, international grain marketplace rally, provide chain disruptions and unfold of animal illnesses in 2021.
Following the 2021 EU essential pigmeat scenario, dealing with demanding situations of decreased meat call for in key export markets, prime prices for feed grains, the affect of African Swine Fever and considerably greater 2020 manufacturing, the pig feed manufacturing lowered by means of -1.5% in 2021.
The EU poultry feed sector controlled to extend its manufacturing by means of 1.1% in comparison to the former yr, getting better partly from losses related to Covid lockdown measures (HORECA) in 2020. Eire, Spain, Italy, Portugal, Austria, Finland and Romania loved enlargement of greater than 5% whilst a lower was once reported in Germany, France, Belgium, Sweden, Poland and Lithuania principally because of prime prices of uncooked fabrics (farmers now not beginning a brand new cycle/rotation), Avian Influenza and flat or decreased retail costs for eggs impacting the poultry sector.
Farm animals feed manufacturing moderately greater by means of 0.2% in comparison to the former yr because of the next build up in manufacturing in Eire, Bulgaria and Austria (+6%) following a critical drought impacting grass enlargement.
Marketplace outlook for 2022
Having a look on the marketplace outlook for 2022, the EU pig and poultry sector are anticipated to scale back their actions because of the prime value of feed fabrics, decrease marketplace call for and increasing Avian Influenza outbreaks in different nations. Therefore, FEFAC participants’ estimates lower by means of -4.2% for pig feed and -3% for poultry feed. The livestock feed manufacturing is predicted to lower by means of -1.6%. Total, the commercial compound feed manufacturing is estimated to lower by means of -2.9% (i.e. 4.3 Mio tonnes) in comparison to 2021. Alternatively, marketplace uncertainties stay very prime because of ongoing Russian aggression in Ukraine. The rapid lack of feed maize, sunflower meal and different feed fabrics from Ukraine and Russia may just simplest be partly compensated by means of greater feed imports, principally from the USA and Canada. Key logistical demanding situations are persisting on find out how to transfer present grain shares out of Ukraine and can proceed to affect marketplace availability within the new Advertising Yr.
Key marketplace drivers which might weigh in in opposition to call for for compound feed in 2022:
– the ongoing unfold of animal illnesses (AI & ASF);
– financial uncertainties principally related to battle within the Ukraine;
– farm-gate costs for animal merchandise underneath prices value;
– different EU coverage choices (drive on reducing GHG and different emissions, welfare coverage & deforestation-free provide chains);
– disruptions in provide chain because of Covid (restrictions in China impacting export of additions and different feed elements).
Supply: FEFAC