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EU, UK compound feed production stable in 2020

Tuesday, June 8, 2021

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, according to data provided by FEFAC members.  

Despite the COVID-19 pandemic and its heavy impact on several sectors including HORECA and  Tourism, the European compound feed industry managed to keep its production at a stable pace, contrary to early predictions. While cattle and poultry feed saw a decline, all other sectors experienced production growth compared to 2019.  

Looking at the market outlook for 2021, very low profitability characterized the pig and poultry sector in the first few months due to higher feed prices, linked to the global grain market rally starting in Q4 of 2020. An increasing number of member states face 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 African Swine Fever 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) and welfare issues continue to create additional pressure on the EU livestock and feed sector.

 

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