Global coarse grain use in 2011/12 is projected to increase 1.8 percent to 1,142.8 million tons. This is a faster rate of growth than in 2010/11, when total use is estimated up 1.3 percent and global feed and residual use is forecast to actually decline. In 2011/12, feed use is projected up 1.5 percent to 657.6 million tons. World wheat feed use is expected to increase 1.1 percent from relatively high levels in 2010/11, limiting the growth in coarse grain feeding. However, strong meat prices, supported by increased meat trade and global economic growth, are maintaining the profitability of feeding grain to animals despite the high level of feed grain prices.

World food, seed, and industrial use of coarse grains in 2011/12 is projected up 2 percent to 485.2 million tons. This is slower than the growth in 2010/11 when large crops across Sub-Saharan Africa encouraged increased food use. The slowdown in growth of U.S. corn use for ethanol is also a factor.

While U.S. coarse grain domestic use is expected to decline in 2011/12, foreign use is projected up 3 percent to 837.1 million tons. China’s coarse grain use is forecast up 2 percent to 176.2 million tons despite the Government’s measures to restrain growth in industrial use of corn. Feed use is projected up 2.1 million tons to 116.4 million as disease problems in the hog sector limit growth. EU coarse grain use is projected to decline 3.6 million tons to 148.4 million. Sluggish meat production and an increase in wheat feed use explain the decline. In the FSU, coarse grain domestic use is forecast up 9.5 million tons to 51.5 million due to increased grain production, expansion of meat production, and reduced use of wheat for feed. While Japan is expected to continue to have a small decline in coarse grain use, most countries are expected to experience modest increases in line with modest growth in meat production.