During this period, total production of Great Britain’s (GB’s) animal feed – including by integrated poultry units (IPUs) – has reached 11.4 mega tonnes (Mt).
This is slightly higher than the five-year average and is up 2.2% from the previous year (+1.4%). The key driver of this climb in feed demand is the cattle sector, and to a lesser extent the sheep sector.
Despite a 2.2% increase in total feed production on the back of more competitively priced alternative proteins, AHDB analysts are confirming a lower rate of cereal inclusion this season. As a result, the year-over-year consumption of cereals remains relatively constant (+0.2%), with the exception of maize used by IPUs. Maize
In terms of cereal splits, the use of maize by GB compounders has increased by 37% (109 kilo tonnes (Kt)) compared to levels in 2023/24. This usage has been consistent throughout the season so far. Due to the competitive pricing of maize imports earlier in the season, substantial quantities were purchased in advance. As a result, firm imports and usage have continued as we approach the season’s conclusion. In addition, the upturn in maize usage, as well as the lack of domestic supply, has seen wheat used by British compounders drop back 3% (89Kt) year-on-year.
Looking ahead for animal feed
In the short term, some increase in demand for cereals is envisaged on the back of a more positive cattle and sheep outlook.
Additionally, price movement of imported maize against domestic wheat will be something to watch in the new season beginning in July.
Current grain markets
This week, international grain markets have continued to languish. Better-than-anticipated crop conditions in the US and steady EU export demand have put pressure on the market. However, tensions in Ukraine and Russia remain a focus, as do Black Sea supplies. In addition, 52% of the US winter wheat crop has been rated as being in good or excellent condition, up from 50% a week earlier and above analyst expectations.The proportion of the US maize crop rated in good or excellent condition has reached 69% in Monday’s report, up from 68% the week before, but in line with expectations.
