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According to FEFAC, EU compound feed production (EU 27+UK) for farmed animals in 2020 is estimated at 164,9 Mio t., an incremental increase of 0.1% compared to 2019. While cattle & poultry feed saw a decline (-0.2% and -0.8%, respectively) all other sectors experienced production growth compared to 2019.
Despite the spread of African Swine Fever (ASF) in Europe and its impact on the pig sector, pig feed production increased by 1.3 % in 2020. This was mainly because several countries increased their exports to China benefiting from Germany´s export ban. Furthermore, due to the COVID-19 problems with slaughterhouses capacity, many farm animals stayed on the farms longer than necessary, which led to higher feed consumption. Compared to young animals, finishing animals have a higher feed conversion ratio (more feed is needed to produce one kg of meat/maintain the weight).
Looking at the market outlook for 2021, very low profitability characterised the pig and poultry sector the first months due to higher feed prices, linked to the global grain market rally starting in Q4 of 2020. An increasing number of Member States faces problems for EU exports of animal products due to the evolving AI & ASF situation. Overall, it is expected that market problems for animal products resulting from the combination of COVID-19, avian influenza, and ASF impacts will continue and as such impact the industrial compound feed production. Next to that, the impact of the EU Green Deal policy agenda and national authorities initiatives to tackle the environmental emissions (BE, NL – ammonia emissions) & welfare issues (DE) continue to create additional pressure on the EU livestock and feed sector.
June 7, 2021/ FEFAC/ European Union.
https://fefac.eu
