Figures just published by the Agricultural and Horticultural Development Board (AHDB) confirm a 1.4% increase in animal feed output across the UK.
The data covers the ten months up to April 30 this year.
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 up marginally (+1.4%) year-on-year, and up 2.2% on the previous five-year average.
The key driver of this climb in feed demand is the cattle sector, and to a lesser extent the sheep sector.
Cattle and calf feed demand has seen a 5% rise this season so far, with climbs in both dairy and beef feed production, and improved beef and milk prices supporting growth in 2024/25.
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 such, total cereals usage (excl. maize used by IPUs) is relatively unchanged on the year (+0.2%).
Maize
In terms of cereal splits, maize usage has remained firm throughout the season so far, with usage by GB compounders up 37% (109 kilo tonnes (Kt)) on 2023/24 levels.
As maize imports were priced competitively earlier in the season, large quantities were bought forward, and as such, firm imports and usage have continued as we head towards the end of the season.
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.
However, the price relationship between cereals and alternative raw materials will be key to overall usage.
Additionally, price movement of imported maize against domestic wheat will be something to watch in the new season beginning in July.
Current grain markets
Meanwhile, international grain markets have remained in the doldrums this week.
Pressure has come from better-than-expected US crop conditions and steady EU export demand. However, Black Sea supplies and any updates on tensions in Ukraine and Russia remain in focus.
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.
In terms of development, 83% of the crop has now headed, with harvest well underway in Texas and other southern states.
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.
