FEFAC, the organization representing European Union compound feed and premix manufacturers, has expressed deep concern regarding the recently announced US tariffs against EU steel and aluminum products. In response, the EU has implemented counter tariffs that cover a wide range of US agricultural products, including feed grain and other feed products. This development has raised fears about the potential impact on feed security and the competitiveness of the EU livestock sector, as highlighted in a recent press release by FEFAC.
Pedro Cordero, the president of FEFAC, emphasized the long-standing strategic partnerships between the US and EU feed sector organizations that have contributed significantly to global feed and food security, as well as resilient feed and livestock production systems at the regional level. He warned that the proposed tariffs could disrupt vital feed supply chains, particularly since the EU heavily relies on imports of essential feed products such as soybeans, maize, feed grains, and feed additives like Lysine, where the EU faces a structural deficit.
Cordero called for urgent direct negotiations between the US and EU administrations to address and potentially remove these tariffs, which could have adverse effects on the resilience and competitiveness of the EU livestock production systems. He suggested exploring alternative targeted trade agreements to boost transatlantic trade for agricultural products, specifically feed grains and essential feed additives. Cordero believes that by doubling the current trade value from 4 billion euros to 8 billion euros, the US agricultural trade deficit with the EU could be reduced.
He referenced the successful “Trump/Juncker” agreement on soy products in 2018, which led to a significant increase in US soy exports to the EU, positioning the US as the top exporter of soy to the EU for the first time. Cordero proposed expanding this agreement to include a broader range of US feed grain products, such as corn and other co-products, along with essential feed additives. This move aims to decrease the joint strategic dependency of the EU and US on China.
FEFAC’s stance underscores the importance of maintaining strong trade relations between the US and EU in the agricultural sector to ensure food security, competitiveness, and sustainability in livestock production. The organization’s call for targeted trade agreements and dialogue between the two parties reflects a commitment to finding mutually beneficial solutions that promote economic growth and stability in the global feed and livestock industry.
In conclusion, FEFAC’s position highlights the interconnected nature of the global agricultural trade and the potential consequences of trade disputes on feed security and livestock production. By advocating for collaboration and negotiation, FEFAC aims to safeguard the interests of its members and the broader agricultural community while fostering a more resilient and sustainable feed supply chain.
