Feed & Additive Magazine Issue 26 March 2023

MARKET REPORT FEED & ADDITIVE MAGAZINE March 2023 73 indirectly affected feed production throughout the rest of the world. Another factor is animal diseases. According to Alltech's report, animal diseases have disrupted feed production in more than 80% of countries. Avian influenza affected all regions’ feed production in 2022. In Europe, this disease manifested most significantly in Belgium, Bosnia and Herzegovina, Bulgaria, France, Ireland, Moldova, the Netherlands, Poland, Russia, Serbia, Turkey, the U.K. and Ukraine. In Europe, African swine fever (ASF) has most significantly affected Ireland and countries in the East. Also, swine flu was an issue in Belgium. Similarly, the data announced by The European Feed Manufacturers' Federation (FEFAC) for 2022 draws attention to the decrease in European compound feed production. According to the EU Compound Feed Production Forecast 2022 announced by FEFAC, compound feed production (EU27) for farmed animals in 2022 is estimated to decrease by 5 million tonnes to a level of 145 million tonnes compare to the 2021 level of 150 million tonnes (decrease of 3.5% y/y). Large producer countries are forecasting a production decrease ranging between -8.8 to -1.5 % y/y reflecting supply chain disruptions and the spread of animal diseases in 2022. Only feed manufacturers in the Baltics, Ireland, Poland, Bulgaria and Slovenia are expected to keep feed production at a similar level to the last year. At the EU level, all of the major feed sectors will face a reduction. FEED PRODUCTION BY COUNTRY On a national basis, Spain and Germany are the two largest compound feed producers in Europe. According to the Alltech report, Spain, which produced 35.8 million tons of compound feed in 2021, experienced a decrease of 12.8% in 2022 and produced 31.2 million tons. Despite the decline, the country managed to rank 7th in the world compound feed production in 2022. Germany, the other major producer of the region, ranked 10th in the world with a production of 24 million metric tons in 2021 and 2022. These countries are followed by France with approximately 17 million tons, Poland with approximately 15 million tons, Italy with approximately 14 million tons and the Netherlands with approximately 12 million tons. FEED PRODUCTION BASED ON TYPE Pig feeds are in the first place in feed production in Europe on a species basis. According to the Alltech report, Europe's pig feed production, which was 81.9 million tons in 2021, decreased by 8.25% to 75.1 million tons in 2022. It is stated that the biggest factor in this decline is African swine fever (ASF). According to the Alltech report, ASF affected the Eastern European countries and Ireland, where feed tonnage was down 2.16%. Germany reported an 8% reduction in feed tonnage due to a ban on exports to Asia. High production costs and

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