By Simon Duke, Managing Editor - EMEA
The first round of US tariffs on Canadian goods has already had a tangible and immediate impact on the cost of certain feed ingredients, the Animal Nutrition Association of Canada (ANAC) has informed Expana.
Some of the feed products most affected by the initial phase of tariffs include molasses, whey and whey protein products, complete feeds and feed supplements containing 50% or more by weight in the dry state of non-fat milk solids, barley, and various types of rice (husked, semi-milled, and wholly milled rice). These products are essential components of animal nutrition, and their increased costs could have broader implications for the Canadian feed industry, warned ANAC Executive Director Melissa Dumont.
“As tariffs have only been applied for a couple days, the impacts have not yet been widely felt. But we do expect both raw material and finished product costs to increase if the tariffs remain in place,” Dumont said, echoing the feedback obtained from ANAC member companies.
“Members are still able to purchase feed ingredients and products from the US, but we are unsure of what the future of the supply chain of US products to Canada will look like,” Dumont added. “At this time, it is not an instance of availability of product but one of cost for products imported since tariffs have been applied. Many feed ingredients and additives currently being tariffed and those on the proposed list are critical for feed manufacture.”
Dumont went on to say that some ANAC member companies are looking to source certain ingredients from other countries, although this is not possible in all instances. “For the situations where it is possible, there are lead times of weeks to months to consider so it is not possible to pivot overnight to another source,” she said.
Although the tariffs have only been in effect for a short period, ANAC anticipates rising costs for both raw materials and finished products if the trade restrictions persist. In addition, the uncertainty surrounding tariffs makes it difficult for businesses to plan effectively.
