EU feed sector faces disease, regulation hurdles, FEFAC says

The European animal feed sector is grappling with disease outbreaks and regulatory uncertainty that threaten to reshape demand patterns and trade flows, industry executives highlighted at the European Feed Association conference in Bucharest, Romania, from May 19-21.

EU pork production declined 1.3% from 2025 to 2026, primarily driven by African swine fever outbreaks in major producing nations including Spain, where cases emerged in November 2025, FEFAC President Pedro Cordero said at the event.

Spain's National Association of Pig Producers said domestic farms have not been significantly affected, but any future outbreaks could substantially impact the market.

Beyond disease concerns, the EU Deforestation Regulation is adding complexity for feed ingredient importers, according to the industry executives who attended the conference.

Representatives from the US Soybean Export Council and North American Export Grain Association noted that the EU's position as the world's second-largest soybean importer and leading buyer of soybean meal makes compliance critical for US exporters. A UK feed association member said the market awaits clearer implementation guidelines as the regulation takes effect.

Meanwhile, the Netherlands' feed association reported a drop in pork production, attributing it to government efforts to reduce methane emissions by limiting pork output.

EU compound feed production is forecast to reach 152 million mt in 2026, down a marginal 0.06% from 2025, according to the EU Compound Feed Production Market Forecast released by FEFAC on May 20. Pig feed production is expected to fall 1.3%, while poultry feed will rise 1.2% and cattle feed will remain nearly unchanged.

A corn trader at the conference said corn prices in Spain and the EU may soon decline as barley harvests begin in Spain and Romania, prompting feed buyers to switch from corn to barley. Fertilizer and transportation costs have pushed prices higher than typical seasonal patterns, the trader said.

Platts, part of S&P Global Energy, reported that FOB Netherlands soybean meal prices are unchanged at Eur377/mt, with steady demand. EXW soybean meal prices in Spain were down by Eur1/mt at Eur377/mt, and EXW Tarragona corn prices were down by 50 cents/mt at Eur227.50/mt on May 21, week over week, due to low demand.