FEFAC warns of looming soy supply chain disruptions under EU deforestation rules

EUROPE – The European Feed Manufacturers’ Federation (FEFAC) has warned that the European Union’s soy supply chain faces major disruptions and cost hikes due to ongoing legal uncertainty surrounding the European Union Deforestation Regulation (EUDR). 

The federation is urging EU policymakers to immediately postpone the regulation’s application to all operators to avoid severe consequences for the feed and livestock sectors.

In a letter sent to the Danish EU Farm Council Presidency, FEFAC raised alarm over the “imminent risk” of disruptions linked to the European Commission’s recent “targeted simplification” proposal on the EUDR.

The correspondence, titled 25_INST_40, included supporting data showing soybean meal price fluctuations in recent months and FEFAC’s updated Economic Impact and Feed Supply Chain Disruption Risk Assessment. 

According to the federation, market instability has already emerged following conflicting signals about potential EUDR postponements.

Market paralysis and price hikes

FEFAC President Pedro Cordero said the EU’s feed industry is once again facing a standstill in soy trading. 

“European compound feed manufacturers once again face a ‘frozen’ soy market,” he stated. “Suppliers have withdrawn offers for 2026 deliveries; while remaining 2025 offers have become scarce and subject to sharp increases of respective EUDR price-premiums.”

Cordero added that the European Commission’s proposal to delay enforcement of checks and penalties by six months has created more confusion than clarity. 

“Existing purchases of soy products for Q1–Q2 2026 are now clouded by legal uncertainty,” he said, warning that retroactive enforcement could still occur. 

FEFAC estimates that resulting disruptions could cost the EU livestock sector up to €1.5 billion (US$1.73 billion), undermining the EU’s own vision of strengthening agricultural competitiveness.

Call for immediate political action

The federation’s letter urges the EU Council and the European Parliament to act swiftly to prevent trade breakdowns and further inflationary pressures. 

FEFAC argues that without clear regulatory guidance and a uniform postponement of the EUDR’s application, soy imports from key sourcing countries could be severely affected, disrupting feed supply for Europe’s livestock sector.

“Immediate postponement 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,” FEFAC concluded.

The appeal underscores growing industry concern that the EUDR, intended to combat global deforestation, could inadvertently destabilize Europe’s feed supply chains if implementation proceeds without addressing current legal ambiguities.

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