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A recent communication from the European trade organization FEFAC addresses urgent concerns
regarding the disruption of soy supplies impacting the feed and livestock sectors across Europe.
FEFAC warns that the European Commission’s latest proposal for “targeted simplification” under the EU Regulation on
Deforestation-free products (EUDR) comes with the potential for serious supply chain challenges.
Urgent Letter to EU Council
In a letter addressed to Jacob Jensen, president of the EU Council’s AGRIFISH (Agriculture and Fisheries Council),
FEFAC expresses strong disapproval of the Commission’s October 20 proposal. They argue that it undermines a prior public announcement from September 2025, which indicated a likely one-year delay in the regulation’s implementation due to unresolved IT challenges.
Market Reactions
The organization highlighted the adverse effects on market stability. The removal of the anticipated one-year postponement and the introduction of a “grace period” (January 1 to June 30, 2026) stirred significant legal uncertainty among suppliers.
According to FEFAC, this has led suppliers of soybean products to withdraw offers for 2026, while remaining offers for 2025 have become limited and are subject to substantial price hikes, affecting alternative proteins like rapeseed meal.
Wider Economic Consequences
FEFAC lamented the economic instability brought about by political fluctuations, arguing that they hamper the competitiveness of European livestock production. They note the evolving landscape of global feed commodity trade and escalating geopolitical tensions, such as the ongoing China-U.S. trade dispute, which are further complicating traditional soy trade flows.
This limits diversification avenues for European markets.
Frozen Soy Market
FEFAC President Pedro Cordero stated that compound feed manufacturers in Europe are now facing a “frozen” soy market. He pointed out that legal uncertainties surrounding existing purchases for Q1-Q2 2026 could arise from the Commission’s proposed six-month delay in enforcement by authorities, possibly impacting retroactive enforcement.
“This could lead to soy supply chain disruptions, costing the EU livestock sector up to €1.5 billion, severely undermining the EU’s agricultural and food vision aimed at enhancing competitiveness,” he added.
Request for Regulatory Delay
In light of these challenges, FEFAC is calling on the EU Council and Parliament to implement an immediate delay in the EUDR’s requirements for all operators,
aiming to prevent dire trade disruptions concerning crucial soy products, stave off further cost increases for the sector, and mitigate inflationary effects on animal products.
This HTML-formatted article addresses the concerns of FEFAC regarding the impact of the EUDR on the soy market and European livestock production, while ensuring clarity and ease of integration into WordPress.
