Soy supply disruptions hit the EU amid EUDR uncertainty

The European Feed Manufacturers’ Federation (FEFAC) has reported growing disruptions in soybean supplies to the EU and rising costs for the feed industry due to legal uncertainty surrounding the European Commission’s proposal on the EU Deforestation Regulation (EUDR).

“European feed producers are once again facing a ‘frozen’ soybean market. Suppliers have withdrawn offers for 2026 deliveries, while the remaining 2025 contracts have become limited and are now subject to sharp price increases due to the so-called EUDR premium,” said FEFAC President Pedro Cordero.

According to him, existing purchase agreements for soybean products covering the first and second quarters of 2026 are now at risk because of the regulatory uncertainty. The European Commission recently proposed a six-month delay in enforcement and penalties by national authorities — which may or may not be applied retroactively.

The federation warns that the situation could cause major supply disruptions from key soybean exporters and add up to €1.5 billion in extra costs for the EU livestock sector, undermining the bloc’s strategy to strengthen the competitiveness of its agri-food industry.

FEFAC has sent a formal letter to Denmark, which currently chairs the EU Agriculture Council, issuing an urgent warning about the risks to the soybean supply chain caused by the proposed “targeted simplified” version of the EUDR. The federation highlighted how market prices have swung sharply in response to the Commission’s shifting positions on enforcement delays.

FEFAC has called on the EU Council and the European Parliament to swiftly consider postponing the application of the EUDR for all operators. “This is essential to prevent severe trade disruptions in the supply of vital soy, curb cost increases in livestock production, and contain inflationary pressure on animal product prices,” the association emphasized.

Tags: EU, soybean, imports, restrictions