Market Trends of Europe Maize Industry
Increasing Demand for Animal-based Protein Sources is Driving the Market
- Maize is one of the key ingredients of almost every type of compound feed for animal types, such as ruminants, poultry, swine, and aquaculture. Hence, the rising demand for animal-based protein sources will likely drive the trade and the market for maize globally. According to Eurostat, there has been a significant increase in the areas planted with grain maize in Russia and Ukraine. The data suggests that in Russia, the area planted with grain maize has increased by 9 percent to 2.8 million hectares, while in Ukraine, the area has gone up by 8 percent to 5.4 million hectares.
- The increasing pressure on the livestock industry has intensified recently to meet the rising demand for meat and high-value animal protein. Population growth, rising incomes in developing nations, and urbanization have led to global livestock consumption surging. The income levels and animal protein consumption have been found to be directly correlated to the consumption of milk, meat, and eggs, which is increasing at the expense of staple foods.
- According to Eurostat, European countries' meat consumption per capita was about 77.1 kilograms. The European Union has a sizeable livestock population; in 2021, there were 146 million pigs, 76 million bovine animals, and 75 million sheep and goats. According to Food and Agriculture Organization (FAO), the livestock sector consumes about 6 billion tons of feed materials annually in dry matter, including one-third of the global cereal production in 2021.
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Rising Maize Exports across the Region
- Ukraine is one of the world's major grain producers, including maize. According to the European Commission, in 2021, Ukraine accounted for 42.1 million metric tons, followed by France with 15.3 million metric tons, Romania with 14.8 million metric tons, and Poland with 7.3 million metric tons. In August 2022, the United States Department of Agriculture (USDA) also raised its estimates for Ukraine's corn production and export. For 2022-23, the USDA estimates Ukraine's corn production to be 30 million metric tons, up 5 million metric tons from the July estimate. Meanwhile, Ukraine's corn export is projected to be 12.5 million metric tons from the 9 million metric tons estimated earlier.
- According to the International Trade Center (ITC) Trademap, in the year 2021, the major importer countries in Ukraine were China with 7.9 million metric tons, Spain with 2.4 million metric tons, Netherlands for 2.2 million metric tons, Egypt for 2.2 million metric ton, and Iran for 1.6 million metric tons.
- Maize consumption is projected to increase slower than in the past decade, in line with global production. This is a result of a combination of factors, including feed demand, biofuel policies, and human consumption, which will boost more exports of maize from the region. The increasing popularity of drought-resistant corn varieties in France and Romania will escalate crop yield and further propel exports in the global trade market.
- In 2020, Ukraine exported 27.9 million metric tons of corn, making it the world's fourth-largest exporter of corn. Corn exports' main destinations from Ukraine are China, Netherlands, Egypt, Spain, and Turkey.
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