German millers obtain higher feed sales

The increase was mainly obtained with cattle feed (+4.8% to 6.2 million
tonnes) and specifically with pig feed, which increased by 7.5% to 8.4 million
tonnes, according to data of the German Feed Millers Association DVT.

The
increase in sale of compound feed for pigs is a result of the increased number
of pigs on German farms.

Fewer cows, more feed
The increased
production of cattle feeds cannot be explained by an increased number of cows,
because the German cattle herd decreased.

DVT thinks the higher output is
a result of a poor roughage harvest in 2006 which forced farmers to feed more
compound cattle feed. Because of an improved milk market dairy farmers also fed
more compound feeds to their cows.

Poultry feed down
With layer
feed the downward trend of the last couple of years was continued with a 1.7%
decrease to 2.2 million tonnes.

Broiler feed also saw a decline in
production and with 3 million tonnes ended 3.2% below previous market
year.

Cereals most important
Cereals were the most important
ingredient in the animal feeds. Around 9.5 million tonnes were used, which
represents a share of 45.8% of total feed.

Oil cakes with 26.2% are
another important ingredient in German feeds. The use of corn gluten has
significantly been reduced.

Despite increased production marketing year
2006/07 has not been satisfying to the feed millers, DVT said. Especially the
rising prices for cereals as a result of competition for energy crops with the
biofuel industry have put margins under pressure.