European feed producers warn of severe impact from proposed lysine tariff

EUROPE – The European Commission’s (EC) recent decision to impose a provisional anti-dumping tariff on lysine imports from China has sparked strong opposition from European feed manufacturers. 

The tariffs, which range from 58.3% to 84.8%, aim to counter alleged dumping practices but have raised alarm within the feed and livestock sectors over potential economic disruptions.  

Pedro Cordero, president of the European Feed Manufacturers’ Federation (FEFAC), voiced significant concerns about the high tariff levels and their potential to destabilise the market. 

With 60% of the European Union’s annual lysine consumption of approximately 500,000 metric tons sourced from China, no alternative suppliers within or outside the EU can meet demand.  

“FEFAC wants to alert the EU Commission that the provisional import duties may disrupt lysine imports, inflating prices and creating market distortions with third countries,” said Cordero. 

He emphasised that the tariffs could weaken the competitiveness of EU livestock farmers, particularly in the poultry and pig sectors. FEFAC has called on the EC to implement financial compensation measures to mitigate the impact on farmers.  

While FEFAC opposes unfair trade practices like dumping, the organisation urges the EC to strengthen the competitiveness of the EU’s feed additive manufacturers. 

Cordero proposed that essential amino acids like lysine, as well as vitamins, be classified as “critical materials” in the EU. 

Such recognition could spur investment in local production and reduce dependence on Chinese imports, diversifying the supply chain for critical feed additives.  

The anti-dumping investigation into lysine imports began in May 2024. The EC’s findings highlighted the dumping of lysine products by Chinese manufacturers, including specific L-lysine sulfate formulations. 

The resulting tariffs apply to the cost, insurance, and freight (CIF) price at the EU border before customs duties.  

The EC has invited stakeholders to submit written comments or request hearings on the proposed measures. 

While these consultations are ongoing, European feed producers fear that the tariffs could undermine the region’s livestock industry at a time when global markets for feed ingredients remain volatile.  

In a similar move last year, the United States introduced legislation to secure supplies of key nutrients for its feed industry. This signalled a growing global focus on supply chain stability for essential feed components.