EU compound feed production down slightly in 2013

The compound feed production in the EU in 2013 reached an estimated level of 153.8 million metric tons, slightly less than in 2012, according to data provided by members of the European Feed Manufacturers' Federation (FEFAC). Greece, Malta and Luxembourg were excluded from the estimate.
While pig feed production dropped by 1.7 percent, cattle and poultry feed have seen their production grow respectively by 0.8 percent and 0.6 percent. As a consequence, poultry feed consolidated its position of leading segment of EU compound feed production slightly above pig feed.
The most important factors which have weighed on the EU feed demand in 2013 were the cool weather in spring, which impacted on availability of forages in a large number of countries and the still fragile economic situation of the pig sector which, along with the implementation of the group housing requirements for sows, affected the resilience of the pig production.
Among the largest-producing countries, U.K. and Poland performed rather well, with annual growth of 5 percent and 3 percent respectively, while Germany and Italy remained stable and France, Spain, and The Netherlands saw their production fall by 1%. Germany strengthened its position as leading EU country in terms of total compound feed production before France and Spain.

2014 outlook
FEFAC market experts foresee a stabilization in poultry feed production, a further reduction in pig feed production and a more significant reduction in cattle feed demand due to better expected weather conditions for grasslands and forages production. Overall, this would lead to a 1% decrease in compound feed production in 2014 vs. 2013.
The general export-led market demand for livestock markets, mainly dairy products, is improving while agricultural markets for grain and key protein ingredients have softened compared with the previous year. This generally more favorable economic context is however contrasted by the still very fragile economic situation in many livestock farm holdings in EU and political uncertainties linked to the situation in Ukraine and with regard to the impact of future free trade agreements both regarding tariff concessions for livestock imports to the EU and market access to raw materials.

European Feed Manufacturers' Federation releases environmental report

The European Feed Manufacturers' Federation has released the second edition of its environmental report, expanding upon the initial overview of the environmental benefits and burdens that result from activities under the direct control of the EU compound feed industry, outlined in its 2009 report.
“The European compound feed industry has to focus on the further increase of resource efficiency and its contribution to safe and healthy feed and food," said Ruud Tijssens, chairman of the federation's task force. "This is the added value that the feed compounder can bring to its customers. The EU feed industry is taking its responsibility towards society: given the global growing demand for animal products and the shrinking availability of natural resources, it is absolutely vital for the feed industry to take care of its social and environmental impact. These are the guiding principles of FEFAC actions in the area of sustainability."
The first chapter of the report describes the overall feed industry's vision of sustainability and focuses on responsible supply. The second chapter presents the federation's activities in the area of harmonization of methodology, and the final chapter is dedicated to the major political challenges identified by the federation at the EU level. The report also provides examples of national initiatives aiming at improving environmental performances. 

EU wheat futures reach six-month low due to Japan concerns

European wheat futures have hit a six-month low, dropping 6% on the Euronext exchange in Paris, amid a sell-off prompted by concerns over the impact of the nuclear and earthquake disasters in Japan.
Milling wheat futures dropped to €13.75 to €203 per metric ton. Rapeseed also dropped, to €412.50 per metric ton, down 5%. "We don't believe prices can drop as low as in 2008 and 2009," said Michel Portier, founder of French consultancy Agritel. "We think the economy is much more solid than in 2008." According to traders, the drops apply to the futures market only — the cash market, they said, is far more stable.

European feed output declined in 2009

Analysts at European feed federation FEFAC now estimate that compound feed production in Europe’s EU-27 zone fell by about 4.5% in 2009, to just under 144 million metric tons. Feeds for all farm animal species were affected, most notably those for cattle (down by 8% to about 35 million tons) and for pigs (lower by 6% to 49 million tons). A smaller percentage reduction was registered for poultry feeds, falling by 1% to about 48 million tons.
According to FEFAC, the cattle feed production results reflected a severe contraction in the demand for dairy cow diets, mainly in the final six months of 2009, as the milk sector in Europe continued to undergo a crisis. Other negative influences came from the poor profitability of pig production and from a tendency for grain growers to use their cereals on the farm rather than selling them at a low price. The market also suffered from the economic pressures that persuaded consumers in Europe to switch to less expensive sources of animal protein.
However, the federation’s experts say 2010 will bring a continued recovery in consumer demand for poultry products, as well as an end to the downward trend in the pig cycle. Current forecasts for the next EU cereals harvest indicate relatively low price levels for new-crop grains, while soybean meal prices are expected to remain stable. The federation forecasts a 2% increase in the European Union’s output of poultry feed this year, accompanied by a stabilizing of pig feed output. But a continuation of difficulties in the dairy sector is predicted to lead to a further 1% fall in cattle feed production.
FEFAC data show that the six European countries producing the most poultry feed in 2009 were France, the United Kingdom, Italy, Germany, Spain and Poland. France is still substantially the largest producer, at 8.2 million metric tons, despite a 6% drop in its own poultry feed tonnage last year. French feed industry associations SNIA and Coop de France have reported that the volume of broiler chicken feeds produced in 2009 by French mills decreased by only about 1%, to approximately 3.1 million tons. Bigger feed reductions were seen for turkeys (down 8.7% to less than 1.5 million tons) and for geese (lower by 6.2% to 1.3 million tons). Laying-hen feeds in France actually showed a production increase last year, rising by 0.3% to about 2.12 million tons.