A decline in UK poultry feed production levels has been confirmed by the Agricultural and Horticultural Development Board (AHDB).
Driving this trend has been a combination of factors including avian flu and the introduction of enhanced bird welfare standards, according to the board.
Animal feed production accounts for over 50% of total domestic cereal usage in the UK, the AHDB said.
Demand from the poultry sector continues to consume the largest share of this output.
However, the percentage share that poultry feed demand has slightly this season (July 2024-April 2025) compared with the previous five-year average.
Poultry feed production
In overall terms, total GB poultry feed production up to this point in 2024/25 is down 2% on the same period last year.
AHDB said there are a number of factors driving this decline.
From a broiler perspective, a number of large UK supermarkets have committed to reducing bird stocking densities to improve welfare standards.
This has led to a 21% reduction in stocking rates for some producers, down from 38kg/m² to 30kg/m², AHDB said.
In addition, avian influenza outbreaks and higher energy costs have impacted producer margins.
Feed typically represents around 50% of total broiler production costs. However, in 2023/24, feed accounted for 64.3% of total costs, according to data from the UK Farm Business Survey.
According to the AHDB, while there have been reductions in costs recently, these have not returned to pre-war levels.
Meanwhile, broiler chick placements within the UK poultry industry have fallen consistently since their peak in 2021 at just under 1.19 billion chicks. This is down 6.5% to 1.11 billion in 2024.
However, the AHDB said from January to May 2025, there has been the first signs of growth since 2021, with placings up 4.6% (477.3 million) compared to the same point last year.
Consumer demand
Significantly, there is no projected slowing in demand for poultry meat, with UK consumption levels estimated to increase by 250g/person/year by 2028.
For layers, 2020 was the peak of layer placings in the UK with 40.5 million head. Numbers dropped off after this to a nine-year-low in 2022 to 34.2 million chicks, the AHDB said.
Reasons hold parallel to that of the broiler industry, as the Farm Business Survey found that fuel and heat costs were up 12% and 19% respectively, with prices being paid by retailers not matching the rise in costs.
As for feed, layers make up a smaller proportion of total feed consumption compared with broilers, but still substantial, the AHDB said.
Looking forward, according to the board, the laying sector still has room for growth and is not yet back to 2020 capacity.
However, from January to May, UK layer chick placings were up 3% on year earlier levels, suggesting growth in the sector.
Meanwhile, the anticipated rise in demand for poultry meat is likely to drive increases in feed usage.
However, longer-term projections are complicated by external pressures, particularly the uncertainty surrounding future trade agreements and ongoing volatility in global energy and input markets.
