Global feed industry to utilize 1,048M tonnes of grains in 2024/25: IGC

GLOBAL – The global feed industry is projected to consume 1,048 million tonnes of grains in the 2024/25 season, according to the latest Grain Market Report from the International Grains Council (IGC).

This marks a modest 0.4% increase from the 2023/24 season but represents a 2.5% rise compared to 2022/23.

According to the report, in the upcoming season, the feed industry will account for 45% of the world’s total grain supply, estimated at 2,321 million tonnes.

Of the remaining supply, 768 million tonnes will be used for food production, while industrial applications will consume another 376 million tonnes.

The IGC report notes a slight reduction in global grain output for 2024/25, now forecast at 2,311 million tonnes, a 4-million-tonne drop from earlier projections. This decline is primarily attributed to downgraded forecasts for barley and wheat.

In contrast, global grain consumption is expected to rise by 4 million tonnes to 2,310 million tonnes, driven by increased demand across food, feed, and industrial sectors.

Despite the overall decrease, certain grains, such as sorghum, oats, and barley, are set to achieve higher production levels. The report suggests that while maize output has seen significant fluctuations in recent seasons, only modest year-on-year changes are anticipated across major grains in 2024/25.

Global grain consumption is expected to reach new record levels, with food, feed, and industrial usage all hitting fresh peaks.

However, the rising demand will lead to tighter carryover stocks, projected to decrease by 3% year-on-year to 576 million tonnes. Exporter inventories are expected to drop even more sharply, by 5%, to 135 million tonnes.

Global grain trade is forecast to decline by 8%, totaling 419 million tonnes. This is largely due to reduced import needs in Asia and Europe.

On the other hand, world soybean production is projected to reach a record 419 million tonnes, a 6% year-on-year increase. With anticipated gains across multiple regions, soybean trade is expected to rise to 180 million tonnes, buoyed by strong demand from Asia, Europe, and Africa.

The IGC report highlights a delicate balance in the global grains market, with production gains in select crops offset by tightening stocks and increased consumption.

While trade volumes may decline, robust production of soybeans and other grains offers a silver lining for global agricultural markets.

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