EU Compound feed production expected to decrease

FEFAC (the European Compound Feed Manufacturers’ Federation) expects the cattle feed production to decrease by 4.1% in the EU. Due to the fact that the production has been affected by the closure of the Horeca (Hotel/Restaurant/Catering) and its reduced demand for meat and dairy products.

“Farmers have started to reduce milk production, by lowering compound feeding. In addition, stricter environmental regulations are creating additional pressures on livestock herds,” states FEFAC.

Poultry sector’s reaction to Covid-19

Also the poultry sector reacted to the Covid-19 measures and reduced production, resulting in a significant reduction in demand for poultry feed. According to FEFAC the EU poultry feed production is expected to decrease by 5.2%, ending the positive trend over the past decade.

The federation explains that this negative trend is not only driven by the immediate Covid-19 impacts, but also by other factors:

• ongoing import of poultry products into the EU from third countries, currently causing an oversupply and
• new outbreaks of avian influenza not only in Central and South-Eastern Europe (PL, HU, RO) but also in Ireland.

The production of pig feed in the EU-27 is, according to FEFAC, expected to decrease by 2.3 % this year compared to 2019, in line with the general downward trend observed over the past few years.

“Although several countries are still impacted by ASF outbreaks (PL, HU, RO, BU) other countries (still “ASF-free”) benefit from continued export opportunities for pigs, mainly to Asian countries due to their recovery from ASF and delays in rebuilding their own pig herds.”

As a result, the total compound feed production is expected to decrease in 2020 by a range of -3% to -6%, although uncertainty levels still remain high due to many unpredictable parameters, including continued animal disease outbreaks and national Covid-19 deconfinement measures, indicates FEFAC.