The UK Department of Agriculture, the Environment, and Rural Affairs has released its 2016 analysis of the British livestock and poultry markets. The data includes a study of animal feed markets, which shows that overall the value of the feed market fell 4.4% from 2015 to 2016, as prices for basic animal foodstuffs dropped (actual consumption remained static). It is believed prices fell due to fluctuations in general commodity prices and through currency exchange rate fluctuations.
Here is more of the data from the ‘Agriculture in the United Kingdom’ report (pdf);
In 2016 compared with 2015:
Summary of UK 2016 Livestock and Poultry Market
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The dairy herd remained almost unchanged at 1.9 million.
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Total pig numbers have seen an increase of 2.7% from 4.7 million to 4.9 million.
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Sheep and lamb numbers increased by 1.8% to 33.9 million, largely due to a 1.9% increase (0.3 million) in the number of lambs under one-year old.
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The value of beef and veal increased by 0.3% to £2.76 billion; the volume of production increased by 3.8% whilst prices fell by 3.4%.
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Pig meat value of production increased by 1.8% to £1.10 billion; the volume of home-fed production increased 3.0% but was offset by a 2.0% (3 pence per kilo) fall in prices. The fall in prices in 2016 follows a 17% fall (27 pence per kilo) reduction in 2015.
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The value of mutton and lamb increased by 3.0% to £1.15 billion where an increase of 5.7% in prices was offset by a decrease of 3.2% in the volume of production.
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Poultry meat value increased by 1.2% to £2.25 billion. Increased production, except turkeys, was offset by falling prices across most categories.
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The value of milk and milk products fell by 11% (£395 million) to £3.30 billion as the average farmgate milk price fell by 7.8%.
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The value of eggs fell by 12% to £603 million with increased production offset by a fall in price; the third consecutive annual fall in prices.
Summary of UK 2016 Animal Feed Market
In 2016 the total cost of intermediate consumption (inputs) fell by £427 million to £14,953 million compared to 2015. Reduced animal feed and fertiliser costs were the main contributors to this fall.
The cost of animal feed, the largest item of expenditure recorded in the production and income account, fell by 4.4% to £4.5 billion between 2015 and 2016.
The cost of animal feed is the largest item of expenditure recorded in the production and income account. Usage remained broadly level from 1993 to 2008 (around 21 million tonnes) before rising steadily since then to reach nearly 31 million tonnes in 2016. Despite this increased usage the value of animal feed used within the agricultural industry has closely followed trends in commodity prices, shaped by exchange rates and world prices.
The total value of all animal feed decreased by 4.4% between 2015 and 2016 to £4.52 billion, mainly due to the fall in feed prices. The total volume of all ‘purchased’ animal feed decreased by 0.3% to 31 million tonnes.
Total compound feed production increased by 2.2% with significant increases for poultry and sheep compound feed offsetting decreases in cattle and pig feed production. These increases were due to strong growth in the broiler and layer sector and in the case of sheep a larger 2016 lamb crop and poorer pasture conditions led to higher compound feed requirement.
The cattle sector suffered from the effects of lower milk prices in the early part of the year and pig sector was weak which together with increased performance and stabilising weights led to decreased feed demand.
Besides compound feed usage, there was a decrease of 7.0% in purchased straight concentrates and a 1.3% increase in inter/intra farm sales.
To learn more about animal feed markets and feed additive products, please contact one of our feed additive specialists.
Photo credit: children'sministry
