FEFAC warns of EU soy supply chain disruptions

The European Feed Manufacturers’ Federation (FEFAC) stated that the EU soy supply chain could face disruptions and higher costs due to legal uncertainty stemming from the European Union Deforestation Regulation (EUDR) proposal. The federation urged an immediate postponement of the EUDR’s application to all operators.

FEFAC warns of EU soy supply chain disruptions
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The European Feed Manufacturers’ Federation (FEFAC) sent a letter (25_INST_40) to the Danish EU Farm Council Presidency to share an urgent warning on the imminent risk of essential soy supply chain disruptions linked to the recent “targeted simplification” proposal on European Union Deforestation Regulation (EUDR) of the European Commission. The letter includes a chart on soybean meal price developments over recent months (25_INST_40_Annex I), illustrating the market reactions on September 23, 2025 (following the announcement of ‘imminent’ EUDR postponement) and on October 20, 2025 (when the Commission released its current proposal) as well as FEFAC’s updated EUDR Economic Impact & Feed Supply Chain Disruption Risk Assessment for soybean meal (25_INST_40_Annex II).

FEFAC President Pedro Cordero said, “European compound feed manufacturers once again face a ‘frozen’ soy market. Suppliers have withdrawn offers for 2026 deliveries; while remaining 2025 offers have become scarce and subject to sharp increases of respective EUDR price-premiums. Existing purchases of soy products for Q1–Q2 2026 are now clouded by legal uncertainty, as the commission’s proposed six-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, ensuing additional cost impacts for the EU livestock sector of up to 1,5 Bio €, thereby strongly undermining the EU Vision on Agriculture & Food, which precisely seeks to boost the competitiveness of the EU livestock sector.”

FEFAC urged the EU Council and the European Parliament to urgently pursue an immediate postponement of the EUDR’s application to all operators. This is essential to prevent severe trade disruptions for vital soy imports, avoid further cost increases for the EU livestock sector, and contain inflationary pressures on animal products, the federation concluded.