Forecasts for a decline in compound feed demand from the EU pig sector in 2016 are providing further evidence that a herd contraction may occur this year, eventually leading to tighter supplies, according to AHDB Pork.
Following the release of compound feed projections for 2016 from FEFAC, the EU feed manufacturers association, AHDB Pork has pointed out that the association’s forecast of a 2-3% fall in pig feed demand has now been “reiterated” by the International Grains Council (IGC) in its latest monthly report.
“The council forecasts global grain consumption being up for the 2015/16 season but, moving into 2016/17, grain usage is expected to decline due to a reduction in feed demand,” said AHDB Pork.
At the same time, however, it is noted that the USDA is currently predicting higher global pork production for 2016, a view which, if correct, would rapidly drive the hope of tighter supplies back into doubt.
