Compounders are planning for pig feed sales reduction in 2016

Europe’s animal feed compounders are budgeting for a “significant” reduction in pig feed demand in 2016 on the back of expert forecasts of lower pigmeat production in the EU.

According to Fefac, the European animal feed industry body, the outlook is “relatively pessimistic” concerning industrial compound feed production in 2016.

Although they foresee the upward trend on poultry feed demand continuing this year, albeit at a lower level than in 2015, Fefac’s forecast for pig feed includes a downturn in demand of 2-3%, in comparison to last year.

Overall, Fefac is predicting a 0.5% decrease in compound feed production in 2016 versus 2015, although this view is subject to a number of parameters which could still deliver changes.

Current unknowns are listed as the impact of El Niño in the Southern hemisphere; the risk of rain deficit in South Europe and various disease outbreak threats, including avian influenza, bluetongue and African swine fever.

“In addition, the ongoing negotiations with Russia on sanitary aspects, if concluded positively, could reactivate exports of certain pig products to Russia and alleviate the pressure on the pigmeat market,” said Fefac.

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