Europe’s compound feed production for the poultry industry is thought to have expanded slightly in 2021, in contrast to that for the sector as a whole.
Industry association the European Feed Manufacturers’ Association (FEAC) notes that, despite the continuing spread of avian influenza (AI) in Europe during 2021, poultry feed production across the 27 European Union (EU) member states is through to have risen by 0.8% from the 55.5 million metric tons produced in 2020.
Compound feed production for use across food-producing animals, however, is thought to have contracted by 0.16% to stand at an estimated 149.9 million metric tons.
The association, reporting in early November, said that the upturn in demand for poultry feed in Europe was due to the improved situation in the hotel, restaurant and catering sectors, the result of a gradual lifting of COVID-19 lockdown restrictions.
This was particularly the case in summer tourist destinations, such as Portugal and Spain, but also in Hungary and Romania.
European Commission forecasts, made the same month, indicated that the EU’s broiler production would rise by almost 1% to year-end, while egg production would end the year almost 2.5% higher.
Despite this upturn, poultry feed is no longer the leading segment of EU industrial compound feed production due the departure of the United Kingdom from the EU. The leading segment is now pig feed.
Other species
Compound feed production for the pig sector is thought to have fallen last year, contracting by 1.3%. FEFAC attributes various factors to this decline, including reduced demand from key pig meat export markets, the high cost of feed grains and the impact of African swine fever. The countries most affected were Germany, Austria, Portugal, Finland and Hungary, however some EU member states have been depopulating their pig herds to lower emissions.
Cattle feed production is thought to have risen by 0.1% last year, mainly due to production increases in Italy, Poland and Romania. The situation in other EU countries was stable or decreased slightly.
Despite the difficult operating environment, in general, FEFAC notes, demand for compound feed in 2021 was lifted due to the continuing grain market rally, making industrial compound feed economically more attractive over home-grown feed cereals.
Outlook
Several factors, on the other hand, are expected to continue from 2021 into 2022 and impact production negatively. FEFAC cites reduced opportunities for pig meat producers, a continuation of the global grain market rally, the ongoing impact of COVID-19 and associated lockdown measures, and environmental concerns putting pressure on lower greenhouse gas and other emissions.
Forecasts made in 2021 by the European Commission suggested that Europe’s demand for poultry meat should grow by 1.2% in 2022 compared with 2021. The same estimates suggested that exports would decline in 2021 and then stabilize in 2022, provided that AI-related export bans were lifted.
Although expected to ease as 2022 progresses, supply chain issues, labor shortages and rising costs are all expected to impact numerous sectors as 2022 progress, and there remains the risk of renewed COVID-19 restrictions.
