Europe’s feed market experts are “relatively pessimistic” concerning industrial compound feed production in 2016, largely based on projections of a “significant reduction” in pig feed demand this year which is forecast to decline by 1.5% in comparison to 2015.
According to the latest figures from the European Feed Manufacturers’ Federation (FEFAC), overall compound feed production in 2016 is set to decrease by 0.7% year-on-year, driven by falling pig sector demand and only partially offset by a projected rise of 0.5% in poultry feed output.
Based on data provided by FEFAC members, compound feed production in the EU-28 in 2015 reached 157.3 million tonnes, which was 0.6% more than in 2014. Within this overall performance, cattle feed production dropped by 0.7%, while pig feed and poultry feed grew by 0.6% and 1.2% respectively.
Commenting on raw material supplies in 2016, FEFAC has voiced “concerns” regarding the quality of the EU cereals harvest 2016 due to the humid and cold weather conditions in several EU member states, stating that while this may result in higher supplies of feed wheat, “prudence” will be required as regards the sanitary quality of available raw materials.
Concerning proteins, meanwhile, following the lower than expected South American 2016 soya harvest, combined with a higher global demand for soya-bean meal, FEFAC said the attention is now focused on US soya harvest forecasts. The FEFAC view on US crop prospects, however, is that things look “relatively good for the time being”.