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The Italian feed sector in 2014

Assalzoo published its Annual report 2015 which reveals the data about the feed sector performance in 2014.
According to the estimates – made on the basis of on a survey carried out among the member companies, which represent about 70% of the national production – in 2014 the Italian overall production of complete and complementary feeds recorded a low increase (+0.3%) compared to the previous year. The Italian overall production is forecast to reach 14.09 million tonnes in 2014 (14,042,000 tonnes in 2013).
The growth, even small, highlights the good capacities of the feed sector that – even suffering the effects of the long term economic crisis that has affected, in particular, our Country, causing a fall in food consumption, with inevitable repercussions for the supply chain upstream – enable the production of the Italian feed sector to stay above the 14 million tonnes which represents one of the highest levels in the history of the feed sector.
The feed production is affected by the general crisis since 2008 and it is also affected by the performance of animals, bovine and swine. In recent years these significantly decrease the use of feed.
Some effects on feed production are also determined by the performance of the raw material market which in recent years registered high volatility, with considerable price fluctuations and in 2014 recorded a progressive decrease of shares.
In particular:
– Cereals register a significant decline in the average year (between 15% and 16%);
– Cereals products (bran, flour, etc.) register a decline (20% for the bran)
– The prices of the protein raw material register a reduction with a 6% annual average for soybean meal, 16% for the sunflower and up to 20% for alfalfa, while fish meal remains stable (-1%).
Another factor which affects the feed sector is related to the persistence of severe difficulties for the farmers and in general for almost all players in the livestock sector, that live a serious liquidity crisis, exacerbated by a series of difficulties for the companies. In fact, the credit access remains very difficult; the strong impact on the companies’ cost of labour, energy, transport, and influence of tax and bureaucracy costs represent an obstacle to the economic recovery and they inhibit investments and consequently the competitiveness.
With reference to 2015, in the first months of the year the feed production is forecast to increase.

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