June 11, 2010
EU feed manufacturers see lower production for 2010
Production by the EU compound feed industry, a leading global soy importer, is likely to drop by 1% on-year in 2010 as tough times for livestock farmers continue, according to industry association FEFAC.
Compound feed output is likely to fall to 146.12 million tonnes from 147.57 million tonnes in 2009, the association said at its annual conference in Hamburg. Output in 2009 had fallen by 3.8% or about five million tonnes against 2008.
Cattle feed output in 2010 was likely to fall 2.2 % to 37.71 million tonnes, it estimated. Difficulties for EU dairy farmers were expected to continue in 2010 despite rising milk prices.
EU dairy farmers in several countries have staged repeated protests about low prices in past years, with some claiming EU reforms removing milk production limits meant farmers were earning less.
Pig feed output in 2010 was likely to fall 1.2% to 49.45 million tonnes although there were signs of an end to the weak trend in pork production, it said.
Poultry feed output this year was likely to rise 0.3% to 48.55 million tonnes with signs of greater EU poultry meat consumption, it said.
Current forecasts of large upcoming grain harvests this year meant cereals prices were likely to be weak. But soymeal prices were likely to be little changed for Eurozone buyers. Falling soy prices following bumper crops in South America this year were likely to be offset by the falling value of the euro against the dollar, it said.