Europe, Middle East & Africa poultry feed market is expected to grow at a compound annual growth rate of 2.71% over the forecast period to reach a market size of US$29,153.267 million in 2027, from US$24,183.984 million in 2020.
Poultry feed refers to the food supplied to farm animals such as chickens, turkeys, and other meat-producing animals. Poultry feed's goal is to make farm animals healthier so they can produce better meat or other goods like eggs. According to data provided by European Feed Manufacturers Federation (FEFAC) members, compound feed production in the EU reached 150.2 mt.1 in 2020, an increase of 1.3 percent over 2019. Despite the COVID-19 pandemic's devastating effects on various industries, including HORECA (Hotel/Restaurant/Catering) and tourism, the European compound feed industry modestly boosted production, contrary to expectations. The EU poultry feed sector is expected to grow by only 0.7 percent in volume in 2020. The spread of Avian Influenza (HPAI) and COVID-19 lockdown measures both had a significant impact on productivity. Overall, poultry feed output increased, owing to positive developments in Belgium, Portugal, Bulgaria, and Slovakia, which all had growth rates of more than 5% (FEFAC)
On the other hand, Chicken meat output in the Kingdom of Saudi Arabia was estimated at 730,000 MT in 2019 and was expected to rise to 750,000 MT in 2020. Chicken meat consumption was anticipated at 1.33 million metric tonnes in 2019 and was expected to reach 1.38 million metric tonnes in 2020 [source: FAO and USDA]. Thus, considering various areas and production and consumption trends, the livestock farming sector, despite inevitable volatility, is positioned to increase demand for animal feed, resulting in animal feed market growth in Europe, the Middle East, and Africa throughout the forecast period.
Maize is the most common feed grain used in chicken feeds worldwide. This is because its primary energy source is starch, which is easily digested by poultry. The key drivers driving market expansion include relatively low and competitive pricing of poultry meat compared to other meat, the absence of cultural or religious barriers, and dietary and nutritional (protein) attributes. With the escalating health crisis, consumers' attention has been drawn to production techniques and information reliability. Increasing feed output in the region resulted from increased chicken production. Growing fast service restaurants increased livestock diseases, and rising consumer demand for high-quality meat products have contributed to an increase in poultry feed consumption in the region over the projection period. Furthermore, the expanding livestock population, as well as the change from disorganized to organized livestock production, is predicted to propel the industry forward in the coming years.
According to European Feed Manufacturers Federation (FEFAC), Germany is the EU-27's biggest meat producer, with a share of 18 percent (7.8 million tonnes), followed by Spain (17 percent, 7.5 mt.). France (5.3 mt.) is in third place, and Poland is in fourth (5.2mt.). Italy (8%, 3.4 million tonnes), the Netherlands (7%, 3.1 million tonnes), Denmark (4%, 1.8 million tonnes), and Belgium (4%, 1.8 million tonnes) were all major meat producers in the EU-27 in 2020. As a result of the growing consumption and production of poultry products in the region, the need for poultry feed has increased.
Cereal consumption has constantly been increasing in the feed industry, except for 2020 when the consumption pattern saw a slight dip. They consumed 76078 MMT in 2020 in comparison to 82911 MMT in 2019. Cakes and meals account for the second-most dominated segment. As a result, the segment's expansion will be fueled by the expanding poultry population as well as intense production patterns over the projection period.
Poultry disease outbreaks, including avian influenza, Colibacillosis, and Mycoplasmosis, pose a significant threat to the feed business. The unchecked development of these illnesses has a severe influence on chicken productivity, causing the poultry feed market to suffer. Due to poor living conditions in Africa, outbreaks of diseases can hinder the development of the market as not only are animals posed with threat but also humans are under the threat of diseases.
Impact of COVID-19 Pandemic:
The USDA claims that the COVID-19 epidemic, as well as the lockdown in most EU-27 nations, caused a drop in HRI demand. COVID-19 influenced the worldwide poultry industry, especially in Europe, in terms of supply chain disruption, particularly in the foodservice sector and variable feed costs. As a result, the global pandemic has had a detrimental influence on the European poultry feed sector. COVID-19 lockdown measures and a general drop in tourism had a detrimental impact, particularly in Spain, where the poultry business had a nearly 5.1 percent drop in production from 2019 to 2020.
Royal Agrifirm Group
Roquette Freres SA
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