During the 26th European Compound Feed Manufacturers' Federation Congress, "How to Stay Profitable in Volatile Times," on June 5-8 in Cracow, federation members have provided final estimates for the compound feed production for the European Union in 2012. The total production estimate is now set at 152.7 million tons, or 0.7 percent above the 2011 figure. Pig feed has seen its production fall by 1.4 percent, whereas cattle feed recovered from its 2011 drop with a 2.4 percent rise in 2012. Poultry feed continued increasing by 1.5 percent.
Factors which have weighed on the EU feed demand in 2012 were the fragile economic situation of the pig sector and soaring feed material costs.
Among the largest producing countries, the United Kingdom and Poland performed well, with annual growth close to 3 percent and 5 percent respectively, boosted by the demand for cattle and poultry feed. The Netherlands and Hungary saw production fall between 1.5 and 2 percent. The production volume in France, Germany and Spain remained stable. Production of poultry feed in Southern Europe was affected by the implementation of the new welfare standards for laying hens.
The high cereals' prices over the last two years contributed to improving the competitive market position of industrial compound feed production versus home mixing. However, this gain was offset to a certain extent by the development of alternative pig feeding strategies based on roughly grinded feed and liquid feeding.
Overall, Germany's position as leading EU country in terms of total compound feed production was strengthened, ahead of France and Spain who are tied for the second position.
Federation market experts foresee a stabilization in poultry feed production, a further reduction in pig feed production and a slight increase in cattle feed demand. Compound feed production is expected to remain unchanged vs. 2012.
The demand for agricultural commodities is expected to remain high in 2013, with the main consequences of maintaining quotations at a high level. The quotations for agricultural raw materials increased significantly during the second half of 2012. After two major crop failures for soybean in South and North America, the positive impact on global quotations of the record harvest for soybean in Brazil in 2013 may be undermined by the storage and logistics challenges it could trigger. The record Brazilian corn harvest should also weigh on global quotations. The average cost for supply of feed materials is expected to remain firm in 2013 to 2012.
Factors which have weighed on the EU feed demand in 2012 were the fragile economic situation of the pig sector and soaring feed material costs.
Among the largest producing countries, the United Kingdom and Poland performed well, with annual growth close to 3 percent and 5 percent respectively, boosted by the demand for cattle and poultry feed. The Netherlands and Hungary saw production fall between 1.5 and 2 percent. The production volume in France, Germany and Spain remained stable. Production of poultry feed in Southern Europe was affected by the implementation of the new welfare standards for laying hens.
The high cereals' prices over the last two years contributed to improving the competitive market position of industrial compound feed production versus home mixing. However, this gain was offset to a certain extent by the development of alternative pig feeding strategies based on roughly grinded feed and liquid feeding.
Overall, Germany's position as leading EU country in terms of total compound feed production was strengthened, ahead of France and Spain who are tied for the second position.
Federation market experts foresee a stabilization in poultry feed production, a further reduction in pig feed production and a slight increase in cattle feed demand. Compound feed production is expected to remain unchanged vs. 2012.
The demand for agricultural commodities is expected to remain high in 2013, with the main consequences of maintaining quotations at a high level. The quotations for agricultural raw materials increased significantly during the second half of 2012. After two major crop failures for soybean in South and North America, the positive impact on global quotations of the record harvest for soybean in Brazil in 2013 may be undermined by the storage and logistics challenges it could trigger. The record Brazilian corn harvest should also weigh on global quotations. The average cost for supply of feed materials is expected to remain firm in 2013 to 2012.
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