Dutch livestock sector to lose heavily on US soy ban

The Dutch livestock sector could lose between EUR13 million and EUR19 million due to an increase in feed prices if the Dutch feed industry could not import US soy, according to Agrarisch Dagblad.

The feed and food industries will lose EUR91 million to EUR208 million, said a report from Dutch agricultural economic institute LEI. For Europe it would mean a loss of EUR4.4 billion.

The Dutch animal feed industry is estimated to lose between EUR34 million and EUR86 million. The crushing industry is estimated to lose about EUR4 million, while the food and meat processing industries will each lose a maximum of EUR19 million.

The institute also said pig and poultry feed prices will between three to 11 percent. The shortage of available protein substitutes may also compromise feed quality. 

A lower protein level will lead to sub-optimal performance of fattening pigs and broilers. Other livestock such as layers, sows and cattle are less affected by this problem.

US soy have been recently blocked by the EU because traces of GMOs were detected in consignments. The EU's zero-tolerance policy meant that the Netherlands cannot import US soy.

The EU depends for about 50 percent on imports of US soy and soy cake. There are few soy available or in stock due to poor harvests in Argentina and early Brazilian deals with Chinese buyers.