In general terms, demand for compound feed was lifted due to the continuing global grain market rally making industrial compound feed economically more attractive over home-grown feed cereals.
EU 27 compound feed production for farmed animal production is estimated at 149,9m tons, a slight decrease of -0.16% compared to 2020, said FEFAC.
The estimate is based on forecast data provided by EU feed manufacturing member companies, members of that trade association.
Reduced pork meat demand in key export markets, due to sanitary import bans, the high costs for feed grains and the impact of African swine fever (ASF) means EU pig feed production is predicted to decrease by -1.3%. The countries most affected are Germany, Austria, Portugal, Finland and Hungary.
In addition, pig culling is underway in countries like the Netherlands and Belgium as societal and government pressure increases to lower agricultural environmental emissions, noted FEFAC.
Lift for poultry feed production
There is better news, though, on the poultry feed front.
Despite the continuing spread of Avian influenza (AI) in several parts of Europe in 2021, poultry feed production is set to slightly increase by 0.8%. This is mainly due to the improved situation in the food service market, following the post-lockdown reopening of hotels, restaurant and catering services across Europe. The impact of that recovery trend was felt most keenly in key tourist destinations: Portugal, and Spain, but FEFAC also noted a foodservice market boom in Hungary and Romania.
However, with the UK leaving the EU in 2021, poultry feed production lost its position as the leading segment of EU industrial compound feed production to pig feed.
Rising cattle feed output
Cattle feed production is estimated to increase, by only slightly, by +0.1% compared to the previous year. That hike is mainly due a boost in production in Italy, Poland and Romania (+3-5%), reported FEFAC.
The situation in other EU countries is either stable or showing a minor decline due to higher forage production lowering demand for cattle feed.
Market outlook for 2022
FEFAC members expect a continuation of those market drivers with potential to weigh in on demand for compound feed in 2022:
- Reduced export opportunities for pig meat producers
- The continued spread of animal diseases (ASF and AI)
- COVID19 pandemic and lockdown measures
- Environmental concerns (pressure on lowering GHG and other emissions)