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AFIA Supports Legislation to Reduce US Dependence on China for Feed Ingredients - PISC


Source: Feedinfo by Expana

By Heather McGuire Doyle, Senior Market Reporter (North America)

 

The American Feed Industry Association (AFIA) is backing new bipartisan legislation aimed at strengthening the resilience of the US animal food supply chain by assessing vulnerabilities in key agricultural inputs. Since the US has no domestic vitamins production capacity and is heavily reliant on China for supplies of both vitamins and amino acids, US market participants have expressed concern about rising costs and potential disruptions to supply. Initial responses to a rapidly changing situation have included tariff clauses in contracts, limited stockpiling, and appeals for exemptions.

The Securing American Agriculture Act (H.R. 1995/S. 912), introduced in both the House and Senate, would require the US Department of Agriculture (USDA) to analyze global supply chains for critical agricultural products, including vitamins, amino acids, and other essential ingredients used in feed and pet food.

The bill has received bipartisan support from Representatives Ashley Hinson (R-Iowa) and Raja Krishnamoorthi (D-Ill.), as well as Senators Pete Ricketts (R-Neb.) and Elissa Slotkin (D-Mich.), among other lawmakers.

According to Expana's Feed Additives Supply & Demand Pro service, 73% of global lysine capacity is located in China, and 78% of global capacity is owned by Chinese companies. Looking ahead, Chinese lysine capacity is set to grow by around 1 million tonnes/year between 2023 and 2026, driving down operating rates and creating even more surplus capacity. China accounts for 92% of global threonine capacity.

The US imports all vitamins, with China dominating global production. US manufacturers heavily rely on China for key feed ingredients, including vitamins B vitamins, vitamin C and D3. According to Expana, 58% of global vitamin A production capacity is in East Asia and 42% is in Europe. China dominates global vitamin E capacity, holding 65%, with Europe at 35%. North America is the largest net importer of vitamin E globally. China also leads the vitamin D3 market, accounting for the top seven producers, while no biotin producers exist outside of China. In the case of D-Calpan, the two largest producers, Xinfa and Xinfu, make up 40% of global capacity, with no production in the Americas. For other vitamins, China controls 97% of global vitamin B1 capacity and a significant portion of vitamin B2 production.

The AFIA has long called for a strategic approach to mitigate risks associated with this reliance, particularly as geopolitical tensions and trade disputes raise concerns about supply disruptions.

"Without good data, our nation’s leaders are essentially shooting in the dark, unable to determine where they can make meaningful impact—whether by boosting domestic production or securing alternative suppliers," said AFIA President and CEO Constance Cullman.

Cullman added that ensuring access to essential feed ingredients is critical not only for animal health but also for the stability of the US food supply.

Concerns over reliance on Chinese feed additives were highlighted in a recent US House Agriculture Committee hearing as well. Reps. Brad Finstad (R-Minn.) and Josh Riley (D-N.Y.) questioned industry leaders about the feasibility of rebuilding domestic production capacity for vitamins and amino acids.

"Why exactly is that the case? Are there things we should be doing with the American public policy to start trying to lessen our dependence on China for this stuff?" Riley asked during the hearing.

National Pork Producers Council President Lori Stevermer testified that the US pork industry is almost entirely dependent on vitamins manufactured in China, with no viable alternative suppliers to meet current demand.

She explained that economic and environmental factors contributed to the offshoring of vitamin and amino acid production, but there is no scientific or technical barrier to bringing it back to the US.

Finstad echoed concerns, noting that food security is a national security issue and that reliance on a single foreign supplier poses significant risks.

"We have all our eggs in one basket when it comes to some inputs on the pork production side and, quite frankly, the livestock production in general," he said.

Both Finstad and Riley expressed interest in exploring ways to revive domestic production, though Stevermer cautioned that the process would require time, regulatory approvals, and investment.

The Securing American Agriculture Act is currently under review in both the House and Senate, with support from more than a dozen lawmakers across party lines.

AFIA and other industry groups are expected to continue advocating for policies that promote domestic investment in feed ingredient manufacturing, while also seeking diversification of foreign suppliers to reduce dependency on a single country.

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