INTERVIEW: Import dependency, EUDR, disease challenges for EU feed sector: FEFAC

The EU feed sector is at a crossroads, facing heavy reliance on third-country imports for key micro-ingredients while adapting to regulatory and market changes.

With up to 100% dependence on external sources for essential vitamins and amino acids -- mainly from China -- any disruption threatens animal health, farm profitability, and food security. The sector also faces challenges from the evolving European Deforestation Regulation, or EUDR, and ongoing disease outbreaks, both of which are causing price volatility and uncertainty.

As these pressures grow, Platts, part of S&P Global Energy, interviewed Pedro Cordero, president of the European Feed Manufacturers' Federation, or FEFAC, to discuss sector vulnerabilities, recent policy impacts, and the steps needed to strengthen the resilience of the EU feed sector.

Reliance on third-country micro-ingredient imports

The EU feed sector's high dependency on third-country imports for micro-ingredients such as vitamins and feed additives is a "concrete, imminent challenge" Cordero said, stressing the need to assess vulnerabilities and implement risk mitigation measures.

"FEFAC found that the EU feed chain imports 35-100% of the vitamins and more than 95% of the essential amino acids produced by fermentation it needs. For certain vitamins (B9, C, K3) and threonine, the EU is even completely dependent on Third Countries and since China holds 34 to 99% of the global market, there is simply no or very limited alternative for EU operators but to buy from China," Cordero said.

To mitigate these risks, Cordera said action must be taken both at the level of individual operators and at the macro-economic level.

"Operators should aim at diversifying their sourcing, whenever possible, from these countries with which the EU has preferential trade relationships. But behind this dependency is a critical question of competitiveness of EU producers, due partly to high production costs, especially regarding carbohydrates for fermentation and energy costs," Cordero said.

FEFAC urges authorities to consider measures to reduce production costs, support existing capacity, and encourage investment in domestic production of critical micro-ingredients that are not produced in the EU and cannot be sourced from "like-minded" trade partners.

The recent formal recognition by the EU Commission in the December 2025 Economic Security Communication highlighted that key feed additives represent extreme feed and food security vulnerabilities to the EU.

"This represents a significant policy shift: the sector's dependency on third countries (primarily China) for essential feed additives such as vitamins and amino acids has not previously been analyzed in detail at the EU strategic level, but now features prominently in the Commission's economic security risk assessment, pointing to the need to address risk mitigation measures," Cordero said.

Meeting EU feed demand with EUDR-compliant soy

The EUDR has been postponed to Dec. 30, 2026, for all operators and now includes simplified traceability measures, including a shift in focus to "first placers" of soy and palm products on the EU market and the first downstream operator, removing EUDR obligations for most compound feed manufacturers.

For FEFAC, the main area of concern is whether there will be enough EUDR-compliant soy to meet EU feed demand.

"The key concerns for FEFAC are linked to the readiness of the soy supply chain to be able to supply sufficient quantities of EUDR-compliant soy to meet EU feed sector demand. For two years in a row, we have witnessed clear cases of supply chain disruption due to a lack of legal EUDR certainty," Cordero said.

"We have strong expectations of the announced EU simplification report and updated EC guidance to resolve some unresolved issues... FEFAC remains committed to work together with other partners in the value chain on specific solutions that can work for all parties and serve the ultimate goal of tackling deforestation," he added.

Soymeal prices were highly volatile in late 2025 due to shifting EUDR expectations, rising sharply after initial statements but falling after the postponement. On Oct. 29, the Platts FOB Netherlands and EXW Spain soybean meal assessments increased by over Eur25/mt following the European Commission's statement that EUDR would still proceed from December. However, in November, as the European Parliament voted for the delay, prices fell by over Eur15/mt.

Managing disease risks

Disease outbreaks in the EU protein sector directly impact the feed industry, with the "compounding effect volatile and unclear", Cordero said, while the industry also plays a key role in risk reduction and response.

"Avian influenza triggers poultry production restrictions, which reduces poultry sector feed consumption. Foot and Mouth Disease imposes strict movement prohibitions on susceptible animals within and beyond affected zones, creating supply chain disruptions that depress regional demand...In some regions, consumer preferences for poultry products have driven feed prices up 28% or more, affecting farm profitability and their capacity to maintain production volumes...African Swine Fever is also still a key issue in many countries, affecting pork trade globally," Cordero said.

FEFAC is working to help mitigate these issues, focusing on prevention and preparedness through research and innovation.

FEFAC has participated in meetings of the European Board of Agriculture & Food since February 2025 and the new EU Livestock Workstream since May 2025. FEFAC has made direct contributions to these platforms that deal with the strategic angles related to enhancing prevention and preparedness against animal diseases, and on leveraging research and innovation for a more competitive, resilient and sustainable livestock sector," Cordero said.