Germany's animal feed industry is expected to stabilize in 2013, and a large summer European harvest will lower grain prices, according to the industry.
The German Farm Cooperatives Association has forecast Germany's 2013 grain crop of all types at 44.39 million metric tons against 45.17 million metric tons harvested in 2012 and 45.22 million metric tons forecast in March. German feed producers are also expecting overall stable demand from livestock farmers. Sales of feed for poultry and beef production are expected to rise in 2013 and compensate for expected lower sales of pig feed.
Germany's feed industry is mostly only buying feed grain supplies for nearby delivery dates on belief prices will fall as big harvests in 2013 are likely, said Heinz Daske, head of the north-east German section of German feed industry association DVT. "The industry is expecting a good harvest in Europe this summer and so falling prices. This means the industry is not buying forward supply cover. I think the harvest prospects are still good despite the long winter." Germany and much of west Europe suffered a long winter with frosts and cold weather well into the normal spring period, which hindered crop growth.
