The European Feed Manufacturers Federation’s (FEFAC) recent report on compound feed production in the EU-27 offers several insights into the current state and future trajectory of the agritech sector, as well as potential implications for investors.
The overall stability in compound feed production, with a slight decrease of 0.34% expected in 2025, suggests a resilient sector that is navigating through multiple challenges. This stability is a double-edged sword for agritech companies. On one hand, it indicates a steady demand for feed, which is crucial for businesses operating in this space. On the other hand, the slight decline could signal a need for innovation to drive growth, particularly in areas like feed efficiency, sustainability, and disease management.
For investors, the varied national trends present both opportunities and risks. Countries like Spain, Portugal, and Poland are showing growth in specific feed sectors, which could be attractive for targeted investments. However, the significant declines in countries like the Netherlands and Hungary due to regulatory policies and disease outbreaks serve as cautionary tales, highlighting the importance of understanding local market dynamics and risks.
The cattle feed sector’s forecasted decrease of 1.4% in 2025, driven by environmental policies and disease outbreaks, underscores the need for agritech solutions that can help farmers adapt to these challenges. This could open up opportunities for companies developing innovative feed formulations, disease management tools, or precision farming technologies that can improve feed efficiency and sustainability.
In the pig feed sector, the marginal decrease of 0.8% masks significant variations among countries, with some like Spain and Portugal showing growth, while others like the Netherlands and Hungary face declines. This variability could present opportunities for agritech companies that can tailor their solutions to specific market needs, such as disease management tools for African swine fever or feed formulations that comply with local regulatory requirements.
The poultry feed sector’s expected growth of 0.9% in 2025 is a positive sign for agritech investors. The sector’s growth, particularly in countries like Spain, Portugal, and Poland, could be driven by increasing demand for poultry products, presenting opportunities for companies operating in this space. However, the stability in countries like Ireland, Austria, and Slovenia suggests that innovation will be key to driving growth in these markets.
In summary, the FEFAC report paints a picture of a stable but varied compound feed sector in the EU-27. For agritech companies and investors, this means understanding and adapting to local market dynamics will be crucial. Opportunities exist in areas like feed efficiency, sustainability, disease management, and precision farming, but navigating the regulatory and disease-related challenges will be key to success.