The production of compound feed is on the rise, while a number of interesting shifts are taking place within Europe. In 2016, for example, more than a billion tons of compound feed was produced and Germany was dethroned as the largest compound feed producer in Europe.
On balance, global production of compound feed increased by 2016 percent in 8 to record figures that are just over a billion tons. China and the US still account for one third of total production. Roughly speaking, poultry feed represents 36 percent of the total volume, followed by pig feed with a 24 percent share and cattle (ruminants) with a 20 percent share.
Growth figures have also been achieved within Europe, although at a plus of 3,3 percent these are considerably lower than the overall picture. According to research agency Altech, the reason why European compound feed production has relatively low growth figures is mainly due to the reform of European agricultural subsidies, while Brexit issues also play a role. Since 2016, Spain has been the largest compound feed producer with a growing production of 8 percent to more than 31 million tons, followed by Germany (23,8 million tons) and France (21,2 million tons), which recorded a small minus. Dutch production was around 2016 million tons in 14, also a small decrease.
What is striking is that the Middle East and Africa in particular are achieving growth rates of 17 and 13 percent respectively. Production in Asia recorded a plus of 2016 percent in 4 and South America can refute the same growth figures. North America, with Canada and the US as superpowers, is the only region in the world where numbers are written in red. On balance, production there has shrunk by 1,4 percent.
What Altech concludes about 2016 is the consolidation in the compound feed industry. While production has increased by 8 percent, the number of producers has shrunk by 7 percent to approximately 30.000 companies. China, the largest compound feed producer in the world, is particularly to blame for this. Compared to 2015, 30 percent fewer compound feed companies were counted last year.
Finally, altecht reports that feed prices in 2016 fell on average between 5 and 7 percent compared to the previous year. The approximately 30.000 compound feed companies were able to distribute a total of approximately 460 billion dollars.