Another difficult year awaits the feed market
Avian influenza and foot-and-mouth disease infections significantly affect the volume of livestock farming – thus indirectly also the turnover of the feed industry. “A non-existent animal does not eat feed,” said Ákos Varga, Chairman of the Board of Directors of the UBM Group, in an interview with the Agrarszektor. 2024 also brought serious challenges for the sector, but there are positive signs on the raw material market – albeit moderately. However, market players are still planning cautiously for 2025.
Infections and feed demand: close connection
Recurrent avian influenza epidemics in the poultry sector and foot-and-mouth disease that emerged at the end of 2024 caused a serious decline in livestock. The resulting decrease in feed demand made its impact felt in a short time: livestock farmers are planning for increasingly shorter periods, typically only purchasing feed for 1–3 months. Due to the uncertainty, long-term contracts have practically ceased to exist.
After forced culling, it can take years to repopulate a farm, while the movement of surrounding farms is also limited – this affects the entire value chain, including feed manufacturers – highlighted Ákos Varga.
A more balanced year on the raw material market
However, 2024 showed relative stability on the raw material side. The price of soybean meal and cereals decreased moderately, even if prices temporarily jumped at the end of the year – for example, due to the prospect of the introduction of the EUDR. However, a rapid correction began after the EU postponement. The price of lysine on the amino acid market rose spectacularly after the EU imposed anti-dumping duties on Chinese imports.
The weather was also favorable: although the precipitation arrived late, it ultimately supported the development of the autumn and spring crops. An above-average grain harvest is possible in 2025, if there is no significant drought until the harvest, the UBM head added.
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