Cereal usage data have recently been published by Defra completing the series for the 2004/05 July/June crop year. It shows an overall decrease in total compound feed production. With respect to wheat and barley, both GB retail compounders and Integrated Poultry Unit (IPUs) saw higher wheat usage and lower barley usage, reflecting the relative supply and demand balances and therefore price relationships.

Total Animal Feed Usage

The animal feed sector is the largest single user of wheat in the domestic market. Feed is produced by various processors, the largest being retail compounders and Integrated Poultry Units (IPUs).

Defra data show a decrease of 4% (0.42Mt) in total feed produced by the retail compound sector from 9.51Mt in 03/04 to 9.09Mt in 04/05 (Table 1). This is the lowest level since records began in 92/93, and is some 1.5Mt lower than production levels of the mid-90s.

GB Retail Compounders

Cattle and Calf feed production by GB retail compounders shows the largest decline, down 0.26Mt to 3.61Mt in 04/05, a drop of 7% on 03/04, but similar to production in 01/02 and 02/03.

Total poultry feed production by GB retail compounders is seen 0.13Mt lower to 2.67Mt in 04/05, a drop of 5% on 03/04. Feed production for pigs is seen slightly higher, up nearly 0.02Mt to 1.51Mt, a result of a moderate increase in pig numbers following the more significant drop the previous season.

UK animal feed cereal usage by GB compound retailers shows wheat usage 0.13Mt higher in 04/05 at 2.78Mt. Barley usage is however seen over 0.12Mt lower at nearly 0.6Mt in 04/05. Oat usage, although representing a small proportion of total cereal usage at 0.04Mt, is unchanged on 03/04 when oat usage nearly doubled on the 02/03 season.

Integrated Poultry Unit Cereal Usage

IPU feed production is estimated to have seen a moderate 0.08Mt rise to 3.02Mt, the highest usage level since 00/01, which corresponds with the rise in broiler chick placings (Graph 1). Wheat usage by the IPUs is at its highest since 95/96 (when records began) at 1.73Mt. Barley usage by IPUs was half of that of 03/04 at 0.11Mt.