FEFAC warns of disruptive impact of US/EU tariffs on feed sector

BELGIUM – The European Feed Manufacturers’ Federation (FEFAC) has voiced strong concerns over the looming trade dispute between the United States and the European Union, warning that the proposed tariffs could undermine feed security and threaten the competitiveness of the EU livestock sector.

The dispute stems from the US decision to impose tariffs on EU steel and aluminium products, prompting the EU Commission to retaliate with counter-tariffs on US imports worth €26 billion (US$28 billion). 

Among the affected goods are crucial agricultural commodities, including durum wheat, beef, poultry, and soybeans—an essential feed component for European livestock production.

Pedro Cordero, president of FEFAC, emphasised the long-term impact these measures could have on the feed sector. 

“The US and EU feed sector organisations have invested for many decades in long-term strategic partnerships contributing effectively to global feed and food security and resilient feed and livestock production systems at a regional level,” he said. 

He explained that the proposed new tariffs could undermine these joint efforts and may disrupt vital feed supply chains, as the EU will continue to rely on essential feed imports—particularly for protein-rich products like soybeans, maize, and key feed additives such as lysine.

The European livestock sector already faces a structural deficit in these critical feed components. 

FEFAC warns that higher feed costs and supply disruptions could put additional pressure on farmers, making EU livestock products less competitive in the global market.

Cordero urged policymakers in both regions to engage in urgent negotiations to resolve the tariff dispute. 

“Both sides should explore alternative targeted trade agreements to strengthen transatlantic trade in agricultural products, particularly feed grains and essential feed additives,” he said. 

“This trade flow can easily be doubled from the current €4 (US$4.36) billion to €8 (US$8.73) billion, helping to reduce the US agricultural trade deficit with the EU.”

Inspired by past triumphs

Drawing on past successes, Cordero referenced the 2018 “Trump/Juncker” agreement on soy products, which significantly boosted US soy exports to the EU, making the United States the leading supplier. 

He suggested that a similar agreement could be extended to include a broader range of US feed grain products, such as corn and co-products, and essential feed additives.

He argued that Such a move would stabilise the transatlantic feed trade and reduce the joint EU/US dependency on China for key agricultural commodities. 

“This is a critical moment for both parties to prioritise feed and food security,” Cordero stated. “We must work together to safeguard resilient feed supply chains.”

Sign up HERE to receive our email newsletters with the latest news updates and insights from Africa and the World and follow us on our WhatsApp channel for updates.