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Besides a small fall in the volume of feeds produced for horses,


the only other figure of note as regards feed production was in ‘other compounds, blends and concentrates’. This is thought to consist mostly of feeds for fish. Production during the first six months of 2017 amounted to 236,100 tonnes, accounting for 4.1 per cent of all production of compounds, blends and concentrates, compared with 3.3 per cent during the same period a year earlier. Production during the first six months of the year was higher by 51,100 tonnes or 27.6 per cent than during the equivalent period a year earlier; it is really time that we had more information as regards the constituents of this category. Altogether, a satisfactory outcome for the first six months of the


year, at least in volume terms. Data for the year as a whole is likely to become available in time for the March-April 2018 edition of this publication. At the time of publication of this issue of Feed Compounder, no


data was available for production of compounds, concentrates and blends in Northern Ireland during June; this will be discussed in a future edition of the E-Letter.


STERLING APPROACHING EURO-PARITY? Financial Directors in the feed industry will have been watching sterling’s exchange rate with increased nervousness, following the Brexit vote in 2016. And, according to the freebie CityAM, money has poured into the euro in recent months prompting talk among analysts of parity with the pound. The euro has risen to levels not seen since late 2014 on a trade-


weighted basis, according to figures tracked by the European Central Bank. Sterling, which forms a major part of that index, has lost more than seven per cent during the course of 2017. In recent trading, sterling has hit lows of €1.0827, leaving a


significant way for sterling to go before hitting parity, despite it briefly hitting an eight-year low in the last week of August. However, CityAM says that the prospect of a tightening of ECB monetary policy, albeit


PAGE 6 SEPTEMBER/OCTOBER 2017 FEED COMPOUNDER


excruciatingly gradual, at the same time that the Brexit process is starting to get heavy, has brought parity discussions back into play. While there has been no massive downwards trigger from the


sterling side, the resumption of Brexit negotiations has given investors little reason to buy sterling either.


ANIMAL FEED PRICES DEFRA’s latest data on average animal feed prices in Great Britain are now available for the three months up to June 2017 and these showed year-on-year increases across the board. In the April to June 2017 period, cattle and calf feed prices averaged


£213 a tonne (£194 a year earlier). Feeds for pigs averaged £232 a tonne (£210). Feeds for poultry averaged £254 (£225) while feeds for sheep and lambs averaged £224 (£206)


USDA UPDATE The United States Department of Agriculture has recently updated its 2017-18 production, supply and distribution projections for grains and oilseeds.


Compared to USDA’s July estimate, global wheat production has


been increased by 5.35 million tonnes or 0.7 per cent to 743.18 million tonnes. This reflects increases in Russia, Ukraine and Kazakhstan while projected production in the EU, Canada and the US has been reduced. Canadian production in particular has been reduced by 1.85 million tonnes or 6.5 per cent; this reflects the increasing intensification of drought conditions in major production areas of the Prairie Provinces. The reduced US wheat harvest reflects a variety of factors. Official US production data forecasts for durum and other spring wheat indicate a significant decline compared to last year, primarily due to continued severe drought conditions affecting the Northern Plains. Partially offsetting this decrease is higher winter wheat production from increased yields, with most of the production increase in what the US calls ‘white wheat’ and which the UK would call breadmaking wheat.


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