European feed industry warns of soy supply disruption risks

European trade organisation FEFAC has written to the Danish EU Farm Council presidency warning about the disruption of soy supplies to the feed and livestock sectors.

It says the European Commission’s recent “targeted simplification” proposal on the EU Regulation on Deforestation-free products (EUDR) poses an imminent risk of essential soy supply chain disruptions.

In a letter to the EU Council AGRIFISH (Agriculture and Fisheries Council configuration) president Jacob Jensen, FEFAC says the proposal put forward by the Commission on 20 October is completely unacceptable and a blatant breach of trust: “It contradicts the earlier public announcement in September 2025 on a likely 1-year postponement of the [regulation’s] entry into force due to unresolved IT issues.”

FEFAC said the loss of the anticipated 1-year postponement, combined with the proposed “grace period” (1 January to 30 June 2026), where national government would allegedly not impose any penalties, had created significant legal uncertainty.

Markets reacted heavily to the news. FEFAC said: “Suppliers of soybean products have withdrawn their market offers for 2026, while the offers of the remainder of 2025 have been strongly limited and subject to sharp price increases. These price hikes are also felt in protein alternatives such as rapeseed meal.”

FEFAC added that it deeply regretted the economic turbulence caused by the political deliberations, which were damaging the competitiveness of European livestock production. It cited the broader context of global feed commodity trade and other dynamics, such as the ongoing China-US dispute, as significantly reshaping traditional soy trade flows, which were limiting diversification options for Europe.

And it stressed there was a need for the EU to adopt a more pragmatic approach to the requirements of deforestation-free supply chains, one that reflected the realities of global commodity trade and Europe’s position on the world market.

FEFAC president Pedro Cordero said European compound feed manufacturers faced a frozen soy market: “Existing purchases of soy products for Q1-Q2 2026 are now clouded by legal uncertainty, as the Commission’s proposed 6-month postponement of checks and penalties by competent authorities, which may or may not see retroactive enforcement.

“FEFAC expects that this will translate into soy supply chain disruptions for key soy sourcing origins, ensuring additional cost impacts for the EU livestock sector of up to €1.5 billion euros, thereby strongly undermining the EU Vision on Agriculture and Food, which precisely seeks to boost the competitiveness of the EU livestock sector.”

It is urging the EU Council and the EU Parliament to pursue an immediate postponement of the EUDR’s application to all operators to prevent severe trade disruptions for vital soy products, avoid further cost increases for the sector and contain inflationary pressures on animal products.

Tags: soy, supplies, FEFAC, livestock sector, Feed