Total compound feed production by GB retail compounders has risen for the third consecutive year, while production by Integrated Poultry Units (IPUs) was also higher. Less wheat has been used in compound feed while the usage of other cereals and oil meals and cakes has increased.
GB Retail Compounders
Total feed produced by the GB retail compound sector was again higher last season, at 9.4Mt, the highest since 2003/04 and 0.2Mt above 2006/07 production. Cattle and calf feed production made up most of the increase, with a 0.14Mt rise to nearly 4Mt. Cattle and calf feed production is now at its highest level since 1995/96. Poultry feed output continued the recovery seen in 2006/07, with production rising by 3% to 2.6Mt. Less compound feed was produced for the sheep sector and for the pig sector. Pig feed production was 18,000t down on 2006/07, at 1.56Mt, reflecting in part the economic difficulties the pig sector faced following the steep rise in feeding cost.
Integrated Poultry Unit
IPUs feed production increased slightly (up 38,000t) on 2006/07 to just over 3Mt. The higher output can largely be attributed to higher broiler feed production (up 66,000t to 2.3Mt), easily offsetting lower turkey and layer feed output.
Cereal Usage
GB retail compounders used less wheat and barley last season, as prices for both commodities rose sharply following tight supply. A total of 2.6Mt of wheat was used in compound feed, which was some 6% below last season's inclusion and the lowest since 1995/96. Slightly less barley was also used, but, at 0.65Mt for the season, remains above the usage seen prior to 2006/07. Significantly more maize has been included instead, at 0.2Mt (up by 0.1Mt). In addition, trade data indicate increased imports of sorghum into the UK in 2007/08. Sorghum appears to have been used as competitively priced feed alternative to wheat and barley last season. As expected, the overall cereal inclusion rate for 2007/08, at 36.6%, is again lower than in the previous season.
IPUs used about 10% less wheat last season when compared to 2006/07, at 1.5Mt while 10% more barley has been used, at 0.12Mt. Overall cereal usage by IPUs fell only slightly on 2006/07 to 1.82Mt, but remained well above the 5-year-average of 1.79Mt. The cereal incorporation rate remained at about 60%.
The usage of non-cereals by GB compounders continued to rise in 2007/08. More oilseed rape meal and soya meal was included in compound feed, rising by 19 and 17% to 0.78M and 1.18Mt respectively, as both were competitively priced when compared to wheat and barley. In contrast, last season's very high sunseed prices are reflected in the lower usage of sunflower meal in 2007/08 at 0.18Mt compared to 0.31Mt in 2006/07. More molasses (up 27%) to 0.35Mt was used.
