Compound poultry feed production declines across Europe

Production of compound poultry feed across Europe fell by 0.8% in 2020, according to new data published by The European Feed Manufacturers’ Federation (FEFAC).

The decrease of 0.8 % in the poultry feed production, which is the first recorded in 10 years, is a result of the combined effect of the spread of Avian Influenza (HPAI) and COVID-19 lockdown measures, the organisation said. In 2020, there were two seasons of the HPAI epidemic in Europe, depressing the poultry sector. The most affected country was Hungary after the virus entered the area with a high density of ducks and geese holdings. COVID-19 lockdown measures and overall decrease in tourism had a negative effect especially in Spain where the poultry sector decreased its production substantially by almost 20% compared to 2019.

Across all animal sectors, compound feed production in the EU remained stable in 2020 despite the combined effect of the spread of animal diseases, including African Swine Fever (ASF) in pigs.

EU compound feed production (EU 27+UK) for all farmed animals in 2020 is estimated at 164,9 Mio t., an incremental increase of 0.1% compared to 2019, according to data provided by FEFAC members.

Despite the COVID-19 pandemic and its heavy impact on several sectors including hospitality and tourism, the European compound feed industry managed to keep its production at a stable pace, contrary to early predictions. While cattle & poultry feed saw a decline, all other sectors experienced production growth compared to 2019.

Looking at the market outlook for 2021, very low profitability characterised the pig and poultry sector the first months due to higher feed prices, linked to the global grain market rally starting in Q4 of 2020. An increasing number of Member States faces problems for EU exports of animal products due to the evolving AI and ASF situation.

The EU Green Deal policy agenda and national authorities initiatives to tackle environmental emissions, including ammonia, will continue to create additional pressure on the European livestock and feed sector.

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