Constance Kalman, CEO of the American Feed Industry Association (AFIA).
He welcomed the introduction of new legislation, the U.S. Farm Protection Act, which he said would “help U.S. policymakers protect U.S. food and feed supplies as they manage the delicate relationship with China.” “This will help us better understand how intrinsically linked China’s input manufacturers are.” ”
U.S. Representative Ashley Hinson, who introduced the bill, argues that China has acquired a large market share of agricultural inputs essential to the U.S. domestic food supply, ceding influence and control to the country. “Iowa farmers have told me directly that food production could slow to a halt if China decides to cut off U.S. access to these inputs.”
There is not enough global production capacity outside of China.
The head of AFIA emphasizes: Vulnerabilities in the U.S. feed supply chainGiven that China dominates the vitamin market and there are few alternative sources of supply.
“In many cases, even if alternative suppliers exist, they cannot compete with China’s vast production capacity and scale. Equally concerning is the lack of alternative suppliers, with more than 78% of all U.S. vitamin imports coming from China. produced 73% and 62% of total vitamin A and vitamin E, respectively, and a whopping 94% of total feed-grade vitamin B2, meeting U.S. demand in the event of a disruption in vitamin supplies from China. There simply isn’t enough global production capacity outside of China to meet this demand.This heavy reliance not only raises questions about supply chain vulnerabilities, but also the nutritional profile of China in U.S. animal feed and food security. It also emphasizes the important role it plays.”
China has also cornered the amino acid market, with Chinese manufacturers controlling up to 85% of global production capacity for some essential amino acids used in animal feed.
Ensuring the resiliency of both the U.S. feed and agriculture sectors requires the country to take a multifaceted approach that balances economic interests with broader strategic considerations to diversify and secure its vitamin supply chain. AFIA states that it is essential to adopt a comprehensive approach.
In December, Kallman told us: “AFIA leadership is developing a strategy to reduce risks and diversify the nation’s vitamin supply chain, and Biden shares insights to prevent future dependence on other important animal foods, such as amino acids and trace minerals.” Given the rising geopolitical tensions and ongoing wars in Europe and the Middle East, these measures will be essential to prevent future supply disruptions. ”
opportunity
Feed industry representatives believe the United States can invest in domestic vitamin production facilities and research to reduce dependence on China, while strengthening the U.S. economy and creating jobs.
“Promoting public-private partnerships is critical to expanding domestic production capacity. Exploring opportunities to increase domestic production capacity by collaborating with other vitamin-producing countries will help diversify supply sources and establish a single supplier.” could lead to the creation of an interagency task force to assess the vitamin supply chain and develop long-term strategies.
