EU produces 2.4 million tons less compound feed

That’s according to data forecasts provided by members of Fefac, the European Feed Manufacturers’ Federation.

Decrease trend reflects market challenges

EU compound feed production for farmed animals in 2023 is estimated at 144.3 million tons, a 2% decrease compared to 2022.

The EU feed market this year reflects continued political and market crisis management pressures and a growing demand for providing sustainable feed solutions to address market dynamics and regulatory considerations

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These trends are a response to the adverse impacts of climate change and animal diseases on the supply of raw materials, such as droughts and floods, and on animal production capacity, including Avian Influenza (AI) and African Swine Fever (ASF).

Moreover, shifts in production methods, as well as reduced or shifting demand due to changing consumer preferences (the impact of food price inflation), are affecting compound feed production differentially across European countries. While countries such as Germany, Ireland, Denmark, and Hungary have witnessed approximately a 5% decline in feed production, other countries like Austria, Bulgaria, Italy, and Romania, have experienced a modest increase.

Pig feed sector

The pig feed sector was most affected with a further decline of almost 2.5 million tons. Germany, for instance, faced a reduction in pork production due to the loss of Asian export markets as well as negative media campaigns. Denmark witnessed a substantial drop of 13.6% in pork production.

Poultry compound feed production

Poultry compound feed production saw a more positive trend, with production increasing by 0.9 million tons as some countries were recovering from AI impacts in 2022.

Cattle feed sector

Cattle feed production experienced a decrease of 0.8 million tons. Countries like Spain and Portugal faced water scarcity issues leading to farm closures, particularly in ruminant sectors, while challenges such as low milk prices and cattle diseases further affected the industry.

Fefac: 2024 – remains uncertain

Key factors, such as the impact of animal diseases, economic uncertainty, persisting high food price inflation, ongoing weather irregularities, and the increased imports of poultry meat products from Ukraine, are affecting local production. The influence of “green and animal welfare” policies is expected to adversely impact the market outlook for livestock and feed production, although costs for key feed materials, mainly feed cereals, have fallen back to levels before the Russian invasion of Ukraine.