Production of compound feed for the poultry industry in the European Union is expected to be flat this year, with avian influenza affecting poultry producers and influencing demand for poultry feed.
The forecast is in contrast to the sector’s expansion in 2016, when output of compound feed for the poultry sector grew by 2 percent, reports the European Feed Manufacturers’ Association (FEFAC), building on growth of 0.6 percent in 2015.
Poultry feed has now become the leading segment for the European compound feed industry, despite poultry meat being way behind pork when measured by per capita consumption in the region.
While avian influenza may be forecast to halt growth in poultry feed production this year, its presence in several European countries last year had less of an impact on feed producers, FEFAC notes, adding that producers of compound feed for the poultry industry performed “rather well.”
Poultry feed production was able to continue building on the growth recorded in previous years, outperforming cattle feed production, which was flat, and pig feed production, which was down by 2 percent.
Demand from the poultry industry was the principal driver in pushing overall European compound feed production 0.4 percent higher last year to reach 1.55 million tons.
Europe’s largest poultry producer
Poland has become Europe’s largest poultry meat producer and has seen demand for feed growing strongly. According to European statistical agency Eurostat, Poland will account for 18 percent of European poultry meat production in 2017, and is expected to produce 2.7 million tons, 50 percent more than either France or Germany, the bloc's second largest producers, tied at 12 percent market share.
Positive for feed producers, the expansion in the country’s poultry industry is expected to continue over the decade ahead but, already being 150 percent self-sufficient in poultry meat, growth is expected to be at slower rates than over previous years.
Where production of compound poultry feed is concerned, Poland increased output of compound poultry feed by 6 percent last year, helping to push total production 4.7 percent higher.
Unclear outlook
Looking longer term, the picture for compound poultry feed is unclear.
Production of poultry meat is expected to continue expanding throughout the decade ahead. Forecasts made by the Association of Poultry Processors and Poultry Trade in the EU countries (AVEC) during the second half of 2016 suggest that growth in poultry meat production to 2025 will be in the region of 3.8 percent, which potentially bodes well for feed producers.
However, FEFAC cautions that the evolution of avian influenza in Europe will have a significant influence on poultry production, particularly on exports, and that will impact on demand for feed.
At almost 34 percent, poultry feed production pushes Europe's pig feed production into second place, despite European's preference for pig meat. | FEFAC
EU poultry production forecast positive over next decade
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