Cereals usage for animal feed forecast to climb

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Demand for cereals for UK animal feed production this season (July 16 – June 17) is expected to increase by 1% on the year at 12.36 million tonnes.

Year on year growth in total animal feed production is expected to be driven predominantly by the poultry sector and, to a lesser extent, the sheep sector.  Cattle feed demand (dairy and beef) is expected to remain relatively stable on the year, despite reductions during the first four months of the season, due to a partial recovery in milk prices. Pig feed demand is forecast lower on the year, driven by an assumed contraction in the herd and increased productivity.

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Wheat usage in animal feed is expected to rise year on year, by 2% to over 7.2 million tonnes. The current growth in the poultry industry is one of the key drivers of overall demand for wheat this season as poultry diets consist of around 60% wheat. Usage of barley is expected to remain similar to last season, at 3.6 million tonnes. Barley inclusions in certain diets, such as pigs and ruminant, are expected to be at relatively high levels, due to the price competitiveness of barley, compared to wheat. Maize usage in feed production is expected to decrease by 6% on the year to 1.3 million tonnes. Oat inclusions are expected to be 12% higher on the year at 265,000 tonnes, driven by an expected increase of the grain being fed on farm this season.

To view the latest forecasts for UK cereals supply and demand, click here.

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Millie Askew, Analyst

millie.askew@ahdb.org.uk, 024 7647 8968