U.S. Animal food industry marches toward resilient future

Constance Cullman
AFIA President and Chief Executive Officer

For several decades, our efforts to innovate in the animal food space to meet the changing needs of producers have been met with both obstacles and slow steps toward progress. Recently, the animal food industry has seen positive movement on key issues at the federal and international levels that reflect a shift toward aligning regulations with scientific advancements, crucial for addressing global needs such as sustainability and food security. Yet, challenges persist, including bureaucratic inaction and the threat of ongoing supply chain disruptions.

At the American Feed Industry Association (AFIA), we are committed to change, advocating for necessary regulatory modernization, interventions to head off supply chain bottlenecks and funding for programs to support market access in key countries. As the 2024 U.S. presidential election approaches, work may slow, but the march toward a resilient future for the industry will continue.

ALIGNING ANIMAL FEED INGREDIENT REVIEWS WITH GLOBAL SYSTEMS
On Feb. 2, the U.S. Food and Drug Administration (FDA) Center for Veterinary Medicine (CVM) announced the withdrawal of its 1998 Program Policy and Procedures Manual Guide 1240.3605. The unprecedented action sent a clear signal to animal food innovators that the CVM’s former way of regulating animal food ingredients with certain non-nutritive benefits is finally changing to keep pace with scientific innovation.

Previously, many novel feed ingredients that act within the gut of animals to bring about environmental, food safety or production benefits have endured overly burdensome yearslong reviews and approval processes since the CVM deemed them to be drugs, not feeds. This timely, costly process led many innovators to look abroad first, in places such as Europe, Brazil and Australia, where they were more appropriately regulated as feed, when bringing their ingredients to market. Farmers in these countries are already realizing the quantifiable benefits from using these ingredients in animal diets, yet in the United States, the same ingredients languish in the CVM’s review process.

Since 2020, the AFIA has been leading an effort, with stakeholders, to change this outdated policy. Support for the change has also been building in the U.S. Congress, where in 2023, both the U.S. Senate and U.S. House introduced companion legislation—the Innovative Feed Enhancement and Economic Development (Innovative FEED) Act (H.R.6687/S. 1842)—aimed at codifying the regulatory pathway for animal food ingredients impacting the microbiome of animals, food safety or byproducts from the animal’s digestive process.

The CVM shared that its latest action to withdraw from the nearly 30-year-old policy is intended to facilitate and encourage the development of safe, novel animal food ingredients for unmet human and animal needs, in line with its innovation agenda. However, the agency acknowledged that this action is only part of the solution and urges Congress to pass the Innovative FEED Act.

HEADING OFF POTENTIAL CRISES IN THE SUPPLY CHAIN
Despite recent improvements in the domestic supply chain and a slight decrease in U.S. food prices and inflation, business leaders across the animal food industry continue to express their concerns about the threat of global supply chain disruptions that could impact their ability to deliver products to the marketplace in a timely and affordable way or invest in future research and development.

Currently, the association is working with its members to identify where other supply chain stumbling blocks could occur. The AFIA has assembled a task force that is looking at all imported ingredients that are essential for the development of complete animal diets, for example, vitamins or minerals, which are sourced from single suppliers to identify areas of focus for the U.S. federal government as it engages in trade conversations. The task force will also be looking at identifying potential solutions for diversification to enhance the resiliency of the animal food industry.

BUILDING MARKET ACCESS ABROAD
Under the Biden administration, the AFIA has seen traditional trade agreements eschewed in favor of “economic frameworks,” making it difficult for the industry to maintain or build access in other markets. Through several market access programs administered through the U.S. Department of Agriculture (USDA), the AFIA is working to overcome the lack of negotiated free trade agreements by collaborating with the U.S. government to overcome trade barriers and promote U.S. products further in key markets of interest, including China and Vietnam.

Using recently awarded funding through the USDA Foreign Agricultural Service’s Market Access Program, the association is facilitating more opportunities for the industry to expand market access and support the export of goods to Vietnam and China. In particular, the AFIA aims to expand the $13.1 billion-worth of animal food industry exports by conveying the benefits (e.g., utility, safety and quality) of American-made animal food products to Vietnamese and Chinese stakeholders looking to improve their animal production and health. In Vietnam, the AFIA is also working to provide pet owners with information about the importance of complete and balanced pet diets for the longevity and health of their pets.

2024 ELECTIONS LOOM
With it being a presidential election year, the AFIA acknowledges that any substantive work on Capitol Hill will be limited, but it is urging Congress to forge ahead on enacting a new farm bill. This bill is crucial for securing funding essential for boosting the United States’ agricultural research and development opportunities as well as for blocking foreign animal diseases, investing in infrastructure and fostering opportunities for market growth.

The U.S. animal food industry is an over $267 billion sector that touches many industries throughout the food and agricultural value chain at the local, state and national levels. It is imperative that legislators understand how their votes will impact farmers, the U.S. economy and the agriculture industry’s ability to meet future food and sustainability goals.