The global animal nutrition sector is entering a period of heightened complexity as volatile raw material markets, regulatory pressure, geopolitical tensions and sustainability requirements reshape operating conditions, industry executives said at Expana’s Agri-Food Europe 2026 event.
Simon Duke, Managing Editor EMEA at Expana, said the sector is being reshaped across regions and species. “The nutritional component already represents the lion’s share of livestock production costs,” he said. “Yet producers are being asked to deliver more precision, lower emissions, reduced antibiotic use and greater supply chain resilience — all at lower cost.”
An industry panel featuring Cornel Boere (Agrifirm), Christine Larsen (Salmon Group), Christos Antipatis (Cargill) and Kevin Truyts (dsm-firmenich) highlighted how trade fragmentation and supply chain disruption are affecting feed markets.
“We are in a value chain”
Boere said the sector remains closely tied to food security and global trade flows. “We are in a value chain. We provide feed which leads to food,” he said. “Europe needs to import. We need free trade to import raw materials.” He cited regulation, sustainability requirements and protectionism as growing barriers, alongside inflation and energy price volatility. “We rely on the world to provide feed for our farmers. It’s important we adapt constantly,” he said.
Larsen said Norway’s aquafeed industry remains heavily dependent on global imports. “We have no self-sufficiency in Norway. We are dependent on the world,” she said.
Sustainability requirements
Sustainability sourcing requirements add further constraints. “We use a lot of soy, but it has to be deforestation-free and meet strict requirements,” she said, adding that cost volatility has forced companies to reconsider volume commitments. “We find ourselves committing to volumes and later having to step back because costs run too high.”
Truyts said geopolitical tensions have significantly altered trade flows in vitamins. “The last 12 months were super challenging,” he said. “We’re constantly adapting supply routes.” He cited vitamin E as an example, noting a 35% decline in exports from China in 2025, alongside increases to Latin America and Europe. “The sense of urgency is really there now,” he said.
Antipatis said companies must shift from reacting to volatility to planning for it. “Global trade is becoming more complex and volatile,” he said. “We need to be prepared for what is to come instead of reacting.” He emphasized diversification, reformulation flexibility and precision nutrition. “Resilience and precision are key,” he said.
Taking tariffs into account
Tariff uncertainty is also affecting investment decisions. “When we plan mid- to long-term investments, tariffs are now an essential factor we take into account,” Truyts said.
Larsen said rising uncertainty is making long-term business cases harder to justify. “It’s increasingly hard to build a business case when risk becomes unmanageable,” she said.
Boere added that new compound feed plant investment in Europe has slowed, with capital redirected toward R&D and supply chain efficiency. Logistics vulnerabilities remain a concern. Larsen said efforts to increase Norwegian or European sourcing face structural limits. “We simply cannot source everything from Europe,” she said.
Boere warned that stockpiling essential raw materials during disruptions can create further instability. “Some raw materials are non-negotiable in feed,” he said. “Spreading risk is important.”
Panelists agreed that volatility is becoming structural rather than cyclical, requiring long-term adjustments in sourcing, formulation and investment strategy.
Written by Fei Thompson
