EU Agribusiness Groups Seek Easing of Deforestation Rules, Warn of Feed Supply Shortages

European Union (EU) agribusiness organizations have urged the European Commission to ease requirements under the EU Deforestation Regulation (EUDR), which is scheduled to begin applying to large and medium-sized operators on December 30, 2026. The industry warns that the new requirements could disrupt supplies of raw materials used in animal feed, particularly soybean meal, and increase livestock production costs across the bloc.

The request was made in a letter signed by five organizations representing different segments of Europe’s agricultural and food industries: FEFAC (European Feed Manufacturers’ Federation), COPA-COGECA (European farmers and agricultural cooperatives), AVEC (poultry industry), EDA (dairy industry) and UECBV (meat industry).

According to the organizations, implementation of the legislation comes at a time when Europe is facing difficulties securing animal feed supplies due to the effects of drought on domestic forage production and disruptions to grain trade through the Black Sea.

Against this backdrop, the organizations argue that increased imports of feed ingredients are necessary to maintain supplies for European livestock.

One of the main concerns involves soybean meal imports, a product widely used in feed production for poultry, pigs and cattle.

According to information reported by Agência Safras, applying the environmental requirements could make it more difficult for Brazilian soybeans and soybean meal to enter the European market, creating opportunities for competing suppliers such as Argentina and the United States.

This shift is reportedly already being reflected in the difference between free-on-board (FOB) prices for soybean meal exported by Brazil and Argentina.

The European organizations argue that the problem is not a shortage of soybeans produced in deforestation-free areas, but rather the operational requirements established by the legislation.

According to the letter, compliance with the EU Deforestation Regulation requires substantial investment in logistics infrastructure and traceability mechanisms capable of maintaining dedicated supply chains.

In the organizations’ assessment, these conditions could artificially restrict the supply of soybean meal available to the European market, even when products meet the environmental criteria.

Industry Groups Fear Higher Livestock Production Costs Under the EU Deforestation Regulation

In addition to concerns about supply disruptions, the organizations warn of potential impacts on the competitiveness of European livestock producers.

The letter argues that EUDR requirements could make raw materials used in animal feed more expensive, increasing production costs for meat, milk and other animal products.

At the same time, exporters from countries outside the European Union could gain a competitive advantage by using feed ingredients that are not subject to the same regulatory compliance costs.

According to the organizations, this disparity could hurt European livestock farmers and lead to higher prices for consumers.

Industry Calls on European Commission for Contingency Plan

In response to these risks, the organizations have requested exceptional measures to safeguard supplies of animal feed ingredients during the 2026/27 marketing year.

Their demands include simplifying EUDR requirements, introducing more practical compliance procedures and developing a contingency plan to avoid trade disruptions.

The organizations argue that these measures should be adopted before the new rules begin to apply, to prevent supply difficulties from worsening the economic situation facing Europe’s livestock industry.

Source: Canal Rural

Sharing is caring!