5 major challenges in 2025 with the global animal feed manufacturing industry

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Source: nhachannuoi.vn

1. Raw material price fluctuates strongly, difficult to control

The price of maize and dried soybean – two key materials in the breeding diet – continues to fluctuate seasonal, weather and trade conflicts. From mid -2023 to early 2025, soybean dry price has decreased from 925–970 USD/ton to about 660–700 USD/ton. Meanwhile, the price of maize maintained around 165–170 USD/ton but still greatly influenced by ethanol policy and drought situation in Latin America.

Notably, the export of high salaries (sorghum) to China has decreased by 95 %, causing residues and causing farmers to adjust the crop structure. On the other hand, although Ukrainian cereal production has been improved in the 2024/25 crop, the risk of interrupting supply is still high due to the prolonged war.

2. Global supply chain continues to be unstable

The transportation crisis in Hong Hai since the end of 2023 has pushed the container rates to increase 3–4 times, sometimes exceeding 5,000 USD/Feu. The cost of transporting raw materials and additives from Europe and the Black Sea to Asia has increased, directly affecting product costs.

In addition, the Russian -Ukraine war continues to disrupt transport routes in the Black Sea, forcing exporters to move to roads and rivers with a cost of 25–30 %higher.

3. Pressure from sustainable policy and antibiotic control

Environmental and food safety regulations are tightening. From December 2025, the enterprise exporting raw materials to Europe is required to comply with the EUD regulations on “no deforestation”, with the demand for geographical traceability of each shipment.

At the same time, regulations on restriction of antibiotics in animal feed are also increasingly strict, especially in the EU. This forces food plants to switch to replacement additives such as organic acids, essential oils, enzymes and probiotics, leading to higher production costs.

In addition, methane emissions reduction programs in livestock are promoting the introduction of ferocious fermentation inhibitors – a new trend in cattle feed formula.

4. Animal disease continues to happen complicated

African pig cholera (ASF) still spreads in many Asian and European countries, affecting the needs of pig feed. The ASF virus is likely to survive in some types of raw materials such as rice bran, fishmeal, forcing the factory to upgrade the process of biological treatment and control.

In particular, the H5N1 avian influenza virus in 2024 exceeded the boundary of the species and appeared in the dairy herd in the US – a serious warning about the risk of piercing disease. At the same time, many countries such as France, Germany and Spain recorded tens of millions of poultry due to the flu, causing the supply of meat powder and bone flour to be affected.

5. Safety of raw materials and technological innovation is still challenges

Climate change causes abnormal hot and humid weather, increasing the rate of toxins of toxins (Mycotoxin) in corn and wheat – especially in Europe and Latin America. The rate of samples exceeding the threshold of toxins don and zea in some places up to 30 %, forcing factories to invest heavily in the testing and processing system.

In addition, alternative sources such as insect powder (Insect Meal) are thriving with growth rate> 11 % per year. However, high cost (1,800–2,800 USD/ton) and legal barriers still make this material difficult to apply widely in food for pigs and poultry.

Conclude

The production and trading of animal feed is operating in the environment with many risk factors: from price, logistics, policies to epidemics and environmental standards. Early identification of trends and flexible response strategies – especially in purchasing, product formulas and traceability – will be a vital factor that helps businesses maintain profits and meet modern market requirements.

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