Compound feed demand is about to decrease by 5 Mio tons in 2022. At the EU level, all of the major feed sectors will face a reduction. The spread of animal diseases and the economic impact of the war in Ukraine are the main factors reducing demand.

EU compound feed production for farmed animals in 2022 is estimated to decrease by 5 Mio tonnes to a level of 145 Mio t., FEFAC reported. The pig feed sector is likely to be the most affected. The production is estimated to decrease by 5.6%. This is mainly due to increased production costs and animal health issues such as ASF.

The EU poultry feed sector will see a fall in production by 3.4% in 2022 mainly due to bird flu. The EU trade policy offering temporary “zero tariff, zero quota” access for Ukrainian products entering the EU led to significant imports of poultry meat and eggs in July and August. Finally, due to inflation pressures on incomes, farmers have difficulties selling high-value products.

The cattle feed production is projected to decrease by  1.3% compared to the previous year despite increased sales of compound feed over the summer months when grass yield has been negatively impacted in the EU.

The increasing utility costs, economic uncertainty, increasing costs linked to environmental and animal welfare policy measures & expected persistence of animal diseases are being identified by FEFAC experts as the main market drivers for ICFP 2023. A key challenge for the grain and oilseeds market remains the uncertainty over the Black sea grain trade.