Europe’s animal feed industry is warning of significant disruption in the soybean market as the European Union prepares to implement its new Deforestation Regulation (EUDR). Despite recent measures by the European Commission to simplify the regulation, feed companies say the sector is facing severe supply shortages and sharply rising prices for compliant soy.
The European Feed Manufacturers’ Federation (FEFAC) highlighted the challenges in a letter to the EU Farm Council, emphasizing that recent EC proposals for “targeted simplification” have not alleviated pressure on upstream operators, including feed importers. According to FEFAC President Pedro Castro, the soy market has effectively “frozen,” with little availability for 2025 deliveries and a rising price premium for EUDR-compliant material.
Looking ahead, uncertainty clouds early 2026 supply as the EC’s proposed six-month postponement of checks and penalties leaves potential for retroactive enforcement. Castro warned that these disruptions could add as much as €1.5 billion ($1.7 billion) in costs to the EU livestock sector, threatening competitiveness and driving food price inflation.
FEFAC has called on the European Council and Parliament to postpone EUDR enforcement for all operators. Other supporters of a delay include COPA-COGECA, representing European farmers and agri-cooperatives, and the European Livestock and Meat Trades Union (UECBV).
The EC’s proposed simplifications aim to reduce obligations for downstream operators, traders, and small-scale producers, while leaving upstream companies—those importing soy and other materials—subject to the original rules. Large and medium-sized firms face the original December 30 enforcement date, with only a six-month grace period for checks, while micro and small businesses receive a full 12-month extension until the end of 2026.
FEFAC and other industry stakeholders stress that without further postponements or adjustments, the EU’s livestock sector could experience both supply bottlenecks and financial strain, underscoring the delicate balance between environmental objectives and market stability.
