European Union faces soybean meal shortage in 2025

Published Oct 21, 2024

Tridge summary

The European Union's Deforestation-Free Supply Chain Regulation (EUDR), which will be implemented in 2025, is anticipated to create supply challenges for soybean meal, as highlighted by the European Feed Association (FEFAC). This regulation could result in a 10% shortfall in the annual demand of 30 million tonnes of soybean meal, with additional costs ranging from EUR 750 million to EUR 1.5 billion annually. The risk of supply disruption is particularly high in countries like Nigeria, India, and China. The regulation's impact is significant due to the crucial role of soybean meal in animal nutrition, especially for high-yielding dairy cows. The European Commission is still developing a benchmarking system to assess country-specific risks.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Annual demand for soybean meal is 30 million tonnes A study shows that the EU’s Deforestation-Free Supply Chain Regulation (EUDR) could lead to supply bottlenecks for soybean meal. Will the EU’s Deforestation-Free Supply Chain Regulation (EUDR), which comes into force next year, lead to supply bottlenecks for soybean meal? At least that is what the European Feed Association (FEFAC) fears. According to a survey of members conducted in September, the annual demand for around 30 million tonnes of soybean meal will no longer be fully covered by purchases from third countries after the EUDR comes into force. Compound feed producers fear a shortage of up to 10 percent. The regulation will enter into force in 2025 The additional costs of EUDR-compliant soybean meal are estimated by local feed producers at 5 to 10 percent, or between EUR 750 million and EUR 1.5 billion per year. As is known, the regulation is to enter into force at the turn of the year. Several Member States and various ...

Source: Farmer.pl