The Composite Food Manufacturers Association (AFAC) warned that prices for all inputs for the animal feed industry are constantly rising in international markets, especially the main ingredients representing 80% of feed formulas for livestock and poultry alone. in this case, corn and soybean meal.
The graphs below show the evolution of the prices of these two materials (excluding premiums) when imported from the Chicago market.
The Federation recalls that from November 2020 to the end of March 2021, the increase in corn prices ranged from 35% to 40%, and soybean meal prices ranged from 15% to 32%.
Which upward variations should have significant repercussions on the production cost of compound feeds in Morocco.
As long as the increase in raw material import prices continues to deteriorate, it is likely to continue.
The bullish context of world markets over the past 12 months can be explained, among other things, as:
- A general psychosis associated with the arrival of Covid-19 disrupting international trade;
- Decrease in export volumes due to the primary restocking of securities stocks by exporting countries;
- Decline in production due to summer drought;
- Increase in Chinese demand.
- A very significant increase in freight costs.
Of course, in the context of this rise of world markets, there will inevitably have repercussions on the production costs of the entire animal sector (poultry, egg and ruminant), a sector whose financial situation is very fragile. Therefore, we call on the Government to support this sector through any assistance that can reduce the impact of these increases on a global scale.