The European Feed Manufacturers’ Federation (FEFAC) has released its Feed & Food Report 2024, which focuses on the role of feed industry as a vital part of the EU feed and food supply chain and its contribution to the livestock and aquaculture economies in the region.
The Feed & Food Report 2024, recently published by the European Feed Manufacturers’ Federation (FEFAC), offers a comprehensive overview of the economic trends shaping the European feed sector, highlighting the industry’s vital role within the EU feed and food supply chain and its contribution to the livestock and aquaculture economies.
Current report presents key data from the 2023 calendar year, covering areas such as compound feed production, feed material usage, industry turnover, as well as meat production and consumption statistics.
The industrial compound feed industry is a dynamic sector with slow but steady growth over the past two decades. According to FEFAC, this growth reflects market preferences of livestock and aquaculture farmers on efficient compound feed to meet increasingly stringent performance and quality standards. While the decline recorded in 2020 can be primarily attributed to the UK’s withdrawal from EU production totals, subsequent decreases in production reflect broader global disruptions. Stating that factors such as the COVID-19 pandemic, geopolitical tensions, notably the conflict in Ukraine, and member states’ environmental policies, have reverberated throughout the EU livestock sector, the federation adds that these challenges have cast a shadow over the EU feed industry, contributing to a recent decline in production.
SOME NOTABLE POINTS FROM THE REPORT:
• In 2023, compound feed production in the EU reached 146.9 million tons, marking a marginal decrease of -0.22% compared to 2022. This decline was observed across the pig sector, experiencing a notable decrease of -4.1%, mainly caused by African Swine Fever (ASF). The poultry sector increased by 2.5% despite the prevalence of animal diseases such as Avian Influenza (AI).
• The EU economy faced significant challenges due to the Russian invasion of Ukraine and the ensuing energy crisis, resulting in heightened inflation and decreased demand for animal products. Consequently, this downturn in demand had a direct impact on feed production.
• In 2023, poultry feed production increased by 1.4 million tons due to several factors. The pig feed sector faced a notable decline, witnessing a production drop of nearly 2 million tons compared to 2022. The production of cattle feed slightly increased by 0.9 million tons compared to the previous year.
• Spain, Germany, and France continue to hold the top positions in compound feed production within the EU.
• Overall, and contrary to 2022, the poultry feed sector now stands out as the largest segment of industrial compound feed production in the EU27, accounting for 49 million tons, followed closely by the pig feed at 47.7 million tons and cattle feed at 42 million tons.
• The EU-27’s compound feed production accounts for 13% of the global total industrial feed production, estimated at around 1,400 million tons.
• The EU’s global market share has experienced a 12% decline over the past 6 years, primarily attributed to the notable surge in feed production experienced in Asia-Pacific and North America during the same period.
• Animal feed stands out as the single most significant cost factor in livestock production. In 2023 up to 50% of the farm gate value of poultry, 55% of the farm gate value of pigs and 17% of the farm gate value of cattle.
• The yearly feed consumption of farm animals in the European Union amounts to about 640 million tons, comprising both feed materials. Among these, 395 million tons are roughages sourced directly from farms. The remaining amount of 250 million tons of feedstuffs consumed, includes cereals cultivated and utilized on the farm of origin, as well as feed purchased by livestock producers to supplement their resources, encompassing both feed materials and compound feeds. It’s estimated that around 100 million tons of feed materials are utilized directly on the farm. Additionally, in 2022/23, 145 million tons of compound feed were produced, constituting 22% of the total feed basket.
• Turnover of the EU-27 industrial compound feed industry was 73 billion euros in 2023.
