May 6, 2010
World feed producers to use more grains on growing meat consumption
Feed manufacturers around the world are projected to use more grain in harvest year 2010/11 as global economic expansion resumes and encourages more meat consumption, which in turn promotes extra demand for animal feeds.
The projection is contained in the latest market report from the International Grains Council (IGC), which says that 481 million tonnes of corn is likely to be used in feeds worldwide compared with 476 million tonnes in 2009/10.
The feed sector's demand for all grains is increasing, but large availabilities of distillers dried grains and high-protein oilseed meals could restrain corn incorporations. Although industrial uses of corn are expected to increase by 8 million tonnes over this season to 214 million tonnes, this would be the smallest rate of growth in 10 years - reflecting the slowing expansion of the US ethanol industry.
The report suggests that an expansion of the feed market will also help global wheat consumption in 2010/11 to reach a total of 654 million tonnes, about 9 million tonnes more than in 2009/10. However, this is two million tonnes down from earlier IGC forecasts, because of larger supplies of competing feeds.
World production of corn in 2010 is forecast at a record 809 million tonnes, some 6 million tonnes more than in 2009, while the projection for this year's wheat output is a reduction of 17 million tonnes to 658 million tonnes.