ARTICLE FEED & ADDITIVE MAGAZINE February 2026 99 time, the potential reopening of the Suez Canal will lead to short-term disruption. Couple that with the unpredictable nature of tariffs and volatility in pricing and availability is going to be the only certainty in the new year. ENERGY COSTS: DOWNWARD TREND OIL & GAS Gas and electricity are important cost factors in the production of fertilizers – resulting in an indirect impact on feed costs – and in the production of animal nutrition and feed specialties. Oil is an important driver for transportation costs and to produce certain feed commodities. 2026 will see pressure on oil and gas prices due to expected oversupply. Oil because of OPEC ending its voluntary production cuts and gas due to new liquefied gas (LNG) capacity being brought on stream. Electricity pricing is expected to see an upward trend, following increased demand. The ongoing war in Ukraine, an unstable ceasefire in the Middle East and the potential for further escalation in Venezuela will keep supply chains and energy security exposed to sudden disruptions. On the other hand, we could see Europe benefit from a cease to hostilities in Ukraine and normalization of energy supply from Russia. While the energy transition advances, it does so at a slower pace following recent policy changes and lack of storage capacity in major markets. Still wind and solar energy are set to become ever more important in the energy mix. LABOR MARKET: RISK OF SHORTAGE OF SKILLED WORKERS In 2026 the industry’s work force will continue to shrink. A rising number of retirements, slowdown in attracting new talent, and restrictive migration policies will put pressure on animal protein and animal nutrition producers alike. Automation may be part of the answer, but the industry will need to focus on highlighting the importance of producing safe feed for food and how young professionals can contribute to feeding a growing global demand. Feed mills, farms, and integrators alike should have a strategy in place to cover their future work force, invest in hiring, training, and retaining skilled workers, and offer compensation packages that allows them to compete with other industries. DISEASE OUTBREAKS: IMPACT CONTINUES Where, and to what extent, diseases will affect markets, is impossible to predict. That we will experience disease outbreaks in 2026, and that this will affect animal protein supply chains should be considered a certainty. Outbreaks in local markets will disrupt export flows, drive up costs for producers and impact price levels. African Swine Fever (ASF) and Avian Influenza (AI) will be the most widespread diseases that will impact local and export markets. Combined with emerging diseases like New World Screwworm, Foot and Mouth Disease and Bluetongue, the risk of these outbreaks will drive increased bio-security measures. REGULATION: MAJOR POLICIES UNDER REVIEW The implementation of the European Deforestation Regulation (EUDR) was delayed by another twelve months in December 2025. The legislation targets seven key commodities, amongst which cattle and soy are directly related to animal protein and animal nutrition. On April 30th, the EU will review reporting demands under the EUDR, and during the year a clearer timeline for its implementation is expected to be confirmed. An important adjustment that has been announced already is that the responsibility for EUDR compliant sourcing will be limited to the company that introduces SBM on the European market. In the US, the Innovative Feed Enhancement and Economic Development (FEED) act is pending in Congress with bipartisan support. The legislation aims to modernize the current FDA's regulatory framework to allow approval of feed ingredients offering benefits beyond basic nutrition. This will mean a huge step forward for US manufacturers and importers alike, to communicate more effectively on the health and performance impact of feed additives.
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