Feed & Additive Magazine Issue 50 March 2025

INTERVIEW 84 FEED & ADDITIVE MAGAZINE March 2025 Most of this feed is formulated using corn and soybean meal, which are the backbone of American animal nutrition. The U.S. produces enough of these crops to support domestic demand and still export millions of tons. However, as I mentioned earlier, the additives that go into this feed—vitamins, amino acids, enzymes—are largely imported, with China being our dominant supplier. One of the big advantages of the U.S. system is its efficiency and consistency. Feed mills are highly automated, using precision nutrition and advanced analytics to formulate diets that maximize growth rates, feed conversion ratios (FCR), and overall animal health. The industry is always optimizing— looking at alternative proteins, sustainable ingredients, and better feed efficiency strategies to reduce costs and environmental impact. Overall, the U.S. feed and livestock sector is a global leader in volume, efficiency, and innovation, but it faces growing challenges in supply chain security and regulatory hurdles, especially in sourcing critical feed additives. We see that such a strong and productive market is noticeably dependent on imports for some raw materials, especially feed additives and additive components. Can you tell us the reason for this, and specifically which raw materials require importation? The strength of the U.S. feed and livestock industry is undeniable, but it does have a critical weak spot—its reliance on imports for essential feed additives. While the country produces an abundance of key feed ingredients like corn and soybean meal, it depends heavily on foreign suppliers, particularly China, for vitamins, amino acids, and other additives that optimize animal nutrition and performance. The reason for this dependency is largely economic and regulatory. China has dominated the global market for amino acids and vitamins by offering lower production costs, thanks to government subsidies, large-scale manufacturing, and fewer regulatory constraints on chemical plants. Producing these additives domestically would require significant investment in infrastructure, but more importantly, it would involve navigating a complex web of environmental and regulatory restrictions that make building or expanding chemical plants in the U.S. incredibly difficult. For amino acids like lysine, threonine, and valine, China supplies over 70% of what the U.S. feed industry uses. The same goes for vitamins—more than 90% of certain key vitamins such as Vitamin C and B12 come from Chinese manufacturers. The problem isn’t just about cost; it’s about capacity. The U.S. simply doesn’t have large-scale production of these critical ingredients, and setting up that infrastructure would take years. This reliance on imports introduces a major vulnerability. Trade tensions, geopolitical instability, or supply chain disruptions—like those seen during the pandemic—can create significant risks for feed manufacturers and, by extension, the entire livestock sector. Without a steady supply of these additives, feed formulations would have to be adjusted, potentially impacting animal performance, feed efficiency, and costs for producers. With the high dependence on Chinese imports, we have seen the prices of certain essential additives skyrocket by up to 40% over the past five years. This cost is passed on to producers and, ultimately, to the end consumer. Without a clear mitigation strategy, we could face even greater challenges. That’s why industry leaders, are advocating for policies that encourage domestic production and supply chain diversification. If the U.S. wants to maintain its leadership in livestock and feed production, it needs to address this dependency, either by incentivizing local manufacturing or forming stronger trade partnerships beyond China. Otherwise, this Achilles’ heel could become a major industry-wide challenge in the years ahead. Your biggest supplier in the feed additives group is China. What is the size and content of your dependence on China for the feed additives

RkJQdWJsaXNoZXIy MTUxNjkxNQ==