GB animal feed manufacturing hits 6-year low

The Agriculture and Horticulture Growth Board (AHDB) has confirmed that animal feed manufacturing ranges in Nice Britain have hit a six-year low.

This conclusion particularly pertains to the interval July to November 2022.

The development is confirmed in AHDB’s most not too long ago revealed cereal utilization and animal feed manufacturing figures.

They present that whole Nice Britain animal feed manufacturing, together with built-in poultry items (IPUs), was down 5% on year-earlier ranges at 5.41mt.

That is the bottom degree of feed manufacturing for the primary 5 months of the season since 2016/17.

Whereas all main animal feed classes are decrease on the yr up to now (besides sheep feed), the principle driver of the decline, unsurprisingly, is the monogastric sector.

In comparison with July to November 2021, whole poultry feed manufacturing (together with IPUs) was down 184 kilotonnes (kt) (-7%) at 2.48mt.

Each layer and broiler feed manufacturing has lowered by roughly 50kt respectively over the identical interval.

This development displays the strain that many, each layer and broiler producers, have been below: A mix of squeezed margins, the avian influenza (chicken flu) outbreak and the cost-of-living disaster impacting shopper shopping for habits.

Feed manufacturing breakdown

At 814kt, whole pig feed manufacturing was down 9% on the yr, from July to November, pushed by drops in each finisher (-33kt) and breeder feed (-22kt) manufacturing.

The autumn in pig feed manufacturing comes because the backlog of pigs on farm, attributable to Covid-19 disruptions and labour shortages at abattoirs final yr, is now regarded as comparatively cleared.

For ruminants, whole cattle and calf feed manufacturing was down by 2% for the July to November 2022 interval. An increase was seen in dairy feed manufacturing, however it was outweighed by a drop in all different cattle feed.

Sheep feed is the one sector which has elevated on year-earlier ranges, with whole manufacturing 10kt increased year-on-year from July to November.

AHDB can be mentioning {that a} discount in animal feed manufacturing brings with it a fall in cereal utilization.

From July to November 2022, wheat utilization in whole animal feed manufacturing dropped by 3%, whereas barley utilization is down by 27% year-on-year.

Future

It’s anticipated that animal feed manufacturing in Nice Britain will proceed to say no over the approaching weeks.

This development will likely be largely pushed by reductions in poultry and pig feed manufacturing. With excessive enter prices anticipated to stay this feeding season, producer margins are going to proceed to be squeezed.

On prime of that, a shift in shopper shopping for habits is anticipated to proceed, because of the cost-of-living disaster.

Regardless of a projected decline in animal feed manufacturing within the November UK cereal provide and demand estimates, wheat utilization in animal feed (together with consumed farm) was estimated to stay comparatively unchanged on the yr.

It is because the proportion of wheat utilized in rations is anticipated to rise as a result of its availability and worth in contrast with different cereals. Then again, barley utilization hs been forecast to say no by 5%.

If animal feed manufacturing declines greater than initially anticipated, then we may see much less cereal utilization in animal feed.

This might add to the already substantial exportable surplus of grains from the UK, if different feed industry-related parameters stay unchanged.