The global animal feed industry is confronted with a multifaceted crisis as it contends with the repercussions of a global economic deceleration, which has moderated growth expectations to 2.7% in 2025. Inflationary pressures present a significant challenge, with food prices increasing by 11.4% year over year and exhibiting no indications of abatement. This inflation has diminished profitability margins for feed manufacturers and escalated costs throughout the supply chain, further straining stakeholders across the agricultural and livestock sectors. Persistent supply chain disruptions, characterised by logistical bottlenecks and transportation delays, continue to exacerbate operational inefficiencies and increase production costs.
The energy crisis within the European Union has introduced an additional layer of complexity, with escalating energy costs compelling feed producers to transfer these increases to farmers and end consumers. This dynamic has generated a feedback loop of rising expenses in agricultural production and retail food prices, amplifying the financial burden on both industries. Compounding these economic challenges, the prevalence of disease outbreaks, particularly in poultry, has resulted in substantial losses and underscored the vulnerability of the feed sector to external perturbations. Amidst these challenges, sustainability has emerged as a critical priority, driving innovation and investment in alternative feed ingredients and additives. The industry is increasingly exploring sustainable solutions such as insect-based protein, algae, fermented products, and other low-impact feed sources to address environmental concerns while maintaining nutritional quality. The impetus for sustainability is also encouraging the adoption of circular economy principles, wherein waste products are repurposed into valuable inputs for feed production. However, feed manufacturers are under mounting pressure due to persistent raw material shortages, which have been exacerbated by climate change-induced disruptions, such as droughts and floods, as well as geopolitical tensions that limit access to critical resources. These shortages have led to price volatility in key inputs such as corn, soy, and wheat, challenging producers to balance cost management with the imperative to ensure quality and safety. In this volatile environment, feed producers are adopting advanced technologies, such as precision fermentation and data-driven supply chain management, to mitigate risks and optimise operations. Collaboration with farmers, researchers, and policymakers is also becoming increasingly important to address systemic challenges and promote resilience across the industry. The convergence of these economic, environmental, and social factors is redefining the animal feed industry, propelling it towards a future where adaptability, innovation, and sustainability are essential for long-term success.
In this sence, FEFAC | European Feed Manufacturers’ Federation and its members commit to 5 ambitions (https://fefac.eu/wp-content/uploads/2020/09/FEFAC-Feed-Sustainability-Charter-2030-Two-Pager-1.pdf) to contribute to further sustainable livestock and aquaculture production.
- Contribute To Climate-Neutral Livestock & Aquaculture Production Through Feed
- Foster Sustainable Food Systems Through Increased Resource & Nutrient Efficiency
- Promote Responsible Sourcing Practices
- Contribute to Improving Farm Animal Health & Welfare
- Enhance the Socio-Economic Environment and Resilience of the Livestock & Aquaculture Sectors
Source: WATT Global and FEFAC
