Transcript
Speaker: Hi everyone.
Speaker: Welcome to Feed Strategy Podcast.
Speaker: I'm your host, Jackie Remke, Editor-in-Chief of Watts Feed Brands and Feed Strategy.
Speaker: This edition of Feed Strategy Podcast is brought to you by FeedStrategy.com.
Speaker: FeedStrategy.com is your source for the latest news and leading edge analysis of the global animal feed industry.
Speaker: Today we're joined by Constance Coleman, President and CEO of the American Feed Industry Association, or AFIA,
Speaker: She's here to share her thoughts on how the first half of 2025 has impacted US feed producers and to discuss the outlook for the remainder of the year.
Speaker: Hi Constance, how are you today?
Speaker: Fantastic.
Speaker: Thank you so much for having me on the podcast, Jackie.
Speaker: Thank you so much for taking the time to be here today.
Speaker: So we'll jump right into it.
Speaker: Looking back to the beginning of the year, can you please share some of the highs and lows that AFIA members have dealt with the new administration?
Speaker: Along with everyone else here in the Washington, D.C.
Speaker: area, we were really focusing on what is the Trump administration going to be about in his second term.
Speaker: And so for the first 90 days, we saw a lot of activity happening from the White House, as well as initiatives being established by a new Congress.
Speaker: So the first 90 days, we were really working to make sure that
Speaker: that policy leaders both within Congress and within the Trump administration knew what issues were of concern for the animal food industry.
Speaker: We had a lot of our priorities that needed to be well understood by the administration, particularly as they took a lot of policy initiatives and made a lot of changes that meant they needed to understand how those decisions impacted the animal food industry.
Speaker: So we've talked a lot about what was the role that we played in the economy, what the role was we played in food security, and why we needed to be at the table visiting with them as they made their policies.
Speaker: So I think one of the big highs for the first half of this year was how well the administration and Congress paid attention to what we were sharing with them.
Speaker: And we have a lot of thanks to give to our members.
Speaker: One thing that's changed a lot in the last several years, Jackie, is that our members in the animal food industry recognize the need to be engaged.
Speaker: The thing I think that made me the proudest and that I found to be really reassuring about our role within the U.S. economy was how seriously our business owners and our members took participating in their governments.
Speaker: And so they were actively engaged with their congressional representatives.
Speaker: They visited offices with us.
Speaker: They're meeting with their members back in the district now.
Speaker: So that, I think, is a big high for us is that we really leaned in and we really engaged.
Speaker: Whenever we have new folks come into policy leading roles, it's an opportunity to gain new allies, engage on issues maybe a little bit differently than we had in the past, and find some new avenues and access points among the administration officials and Congress and fitting in with what their priorities might be.
Speaker: One of the big things that we've all seen are the many executive orders
Speaker: involving trade and the imposition of tariffs as a negotiating strategy by this administration.
Speaker: We really have been diving in deeply, looking at each of those countries and trying to identify how can we gain better market access for animal food products.
Speaker: So really honing in on those non-tariff barriers, those regulatory obstacles, non-tariff reasons to keep products out of the market.
Speaker: We see that a lot with trading partners.
Speaker: So we're really working hard in this opportunity that's been presented recently
Speaker: to negotiate with these trading partners how to reduce some of those non-tariff barriers.
Speaker: And with the changes at the federal government instigated by DOGE and the reductions in staffing that we're seeing, we're also really looking for efficiencies throughout the agencies, but identifying what's most important in each of those agencies to have properly staffed and to make sure our industry has what it needs to do business.
Speaker: One clear example that I'd like to share are the staffing reductions at APHIS, the Animal Plant Health Inspection Service.
Speaker: I know that we need to take a look at right-sizing government, but we definitely need to make sure that we have the expertise in those agencies that facilitate us doing business.
Speaker: There's different types of government employees.
Speaker: There's folks who keep businesses from doing things, and there are the people that help businesses do things and enable businesses to do things.
Speaker: And in the case of APHIS, we need them to sign off on all of those export certificates.
Speaker: So that's the type of thing we're looking at, and we're making sure that USDA, FDA, the White House,
Speaker: all understand how these changes are impacting the industry and where we need to push back a bit and make sure that we have the proper resources for our companies to do business.
Speaker: Based on the success of AFIA's conversations with the new administration and that engagement that you mentioned from AFIA members, how does that shape your thoughts on what to watch throughout the remainder of the year into 2026?
Speaker: The first two years of administration is when everything gets done.
Speaker: And if you don't get it done in the first two years, the pundits will tell you that you don't get much done in an administration.
Speaker: So we know that the push is going to be really hard for the president to leave the legacy that he wants to leave.
Speaker: And so we are going to be fully engaged through the end of 2026 to make sure that those initiatives reflect and create an environment where succeed.
Speaker: So our focus through the rest of this year and next year is to be at the right place with the right message at the right time.
Speaker: And that's going to really focus heavily on the trade conversations that are going on.
Speaker: The tariffs that the president put on many of the countries have incentivized those countries to come to the table and negotiate.
Speaker: We've seen a raft of agreements, handshake agreements that have been announced
Speaker: But the proof is going to be in how those are implemented and the adherence that both parties take to what they agree to in those negotiations.
Speaker: And there are more that are ongoing.
Speaker: So we're really going to be making sure that as those conversations happen, that they understand what our needs are in those international discussions, as well as being able to advance some of our needs.
Speaker: So that's going to be one of the big areas.
Speaker: Another area that we're going to be looking at, again, is communicating the need to have staff in the right places.
Speaker: In the last several years, we worked hard to get adequate staffing at the Food and Drug Administration Center for Vet Medicine.
Speaker: We had seen slowdowns in the approval of many ingredients.
Speaker: animal food ingredients that were going through the Center for Vet Medicine.
Speaker: And so we worked hard to get staffing resources built up there to make sure they had the right size team to review those new products.
Speaker: With some of the cuts, we still see them doing pretty well, but we are concerned about slowdowns in that.
Speaker: And so we are, again, making sure that they understand the difference between
Speaker: those regulators that help companies get out into the market and get products on the market.
Speaker: So that's one of the things we'll be working hard at.
Speaker: And then the other big area through 2026 is going to be making sure that the regulations and the policies that are put out by the administration adhere to a consensus of science adheres to risk-based regulations.
Speaker: and doesn't deviate into policies that are supported by research studies that are outliers, that may not have a robust scientific grounding in those approaches and policies, and that when those policies are determined and decided upon, that agriculture and indeed the animal food industry is at the table.
Speaker: So again, right place, right time, the right message, and making sure that we are there
Speaker: at the table when those conversations happen.
Speaker: The feed industry has long acknowledged that some regulations, as you mentioned, are outdated and can be costly without really enhancing feed safety.
Speaker: What's the current status of the Innovative Feed Act?
Speaker: So the Innovative Feed Act has currently been introduced in both the House and the Senate.
Speaker: It has strong bipartisan support because it makes sense.
Speaker: Jackie, the Innovative Feed Act simply modernizes our regulatory process to allow us to bring products to the market that do more than affect the taste, nutrition, and aroma of a feed ingredient or an animal food ingredient.
Speaker: These products offer a wealth of benefits, whether it may be production efficiency gains, improvements in animal health,
Speaker: better performance from an environmental standpoint, or even improve food safety by reducing things like salmonella shedding.
Speaker: These are really incredible innovations that our competitors are using throughout the world because their regulatory process allows them to be able to be brought to the market and have claims listed on the label.
Speaker: We can't do that here.
Speaker: So we are far behind Europe, South America, Australia, all other parts of the world because we don't have that modern regulatory system.
Speaker: The Innovative Feed Act would address that.
Speaker: It would give the Center for Vet Medicine the opportunity to review these products for other claims that are not nutritionally based.
Speaker: and allow farmers and ranchers to get these products in their hand.
Speaker: That's why it has bipartisan support.
Speaker: That's why there's no critics, real critics of this bill that is sitting there in Congress.
Speaker: What it is looking for is a way to move through Congress.
Speaker: And that requires both the House and the Senate to move forward on bringing bills up for votes and passing them so that they can get to the president's desk for a signature.
Speaker: That's all we're waiting for.
Speaker: It is something that we are placing a huge priority on.
Speaker: And those proper regulations of these innovative ingredients is really going to allow our feed industry and our customers to remain globally competitive.
Speaker: Earlier in the conversation, you mentioned trade, improving market access, and overcoming some of those non-tariff barriers.
Speaker: Can you please look a little closer at how AFIA is working with the Trump administration to reduce U.S. dependence on foreign suppliers, specifically for critical ingredients such as vitamins and minerals, and how are they doing that while making sure the trade actions don't hurt export markets?
Speaker: Yes.
Speaker: During COVID, we found out a lot about our supply chain and about our ability, the resiliency of that supply chain.
Speaker: And it quickly came to light that one of the things that we were struggling with is predictability and setting ourselves up and the resilience to navigate any sort of disruptions that would occur in the market.
Speaker: And that came and shown a bright spotlight on vitamins and amino acids.
Speaker: When we took a look at where the majority of those were coming from, we realized that the vast majority, over 80% of our vitamins, or just around 80% of our vitamins, are produced in China.
Speaker: And it's not a China problem, it's a sole supplier problem.
Speaker: So when we took a look at what could we do to raise the awareness of that, we started having conversations with the Congress and with the administration.
Speaker: That's why we are supportive of the Securing American Agriculture Act,
Speaker: We're asking USDA to look into where we source products, from where we source products, and to make sure we're not dependent on specific countries.
Speaker: And that will take a look at the entire food chain and agricultural chain.
Speaker: For us, we know vitamins and amino acids, minerals are probably right behind that.
Speaker: We see concentration also of key ingredients in the manufacturing of pesticides and crop protection products.
Speaker: We also see that in the area of antibiotics.
Speaker: And so when you have a particular part of your ingredient list or the products that you need to source to make animal food come from one source, it ought to raise some concern.
Speaker: And indeed, it is raising that concern.
Speaker: So we're really passionate about making sure that there's some awareness that this does have an impact on food security.
Speaker: If something were to happen to disrupt our trade with China, even a small
Speaker: decline in supply of these important ingredients can have a huge impact on animal health and productivity and our ability to secure a safe food supply system.
Speaker: So we're asking for opportunities for us to be able to relocate some manufacturing back to the United States.
Speaker: but also to friendly countries, friendshoring is what we call it, or nearshoring, but essentially diversifying where we get so many of our vitamins and amino acids.
Speaker: And I want to point out also, this isn't just vitamins for animal food consumption.
Speaker: This is all vitamins.
Speaker: And so those that are used in human food production as well.
Speaker: And so we find a lot of allies across the supply chain and the food and agricultural system that share similar concerns.
Speaker: The agri-food industry has been pushing for improved and science-based amendments to regulations for quite some time.
Speaker: How do you suggest the feed industry balance that push without giving the impression that it supports weakening safety standards?
Speaker: We live and die by safe supply.
Speaker: Our number one priority is a safe supply.
Speaker: supply of animal food and animal food ingredients.
Speaker: That is our first priority.
Speaker: We want it to be high quality.
Speaker: We want it to be sustainable.
Speaker: We want it to be all of these things, but safe is our first priority.
Speaker: So we have never been opposed to regulations.
Speaker: We do believe that government has a role in oversight to assure that and to assure the public
Speaker: What we're asking for is regulation that is predictable, consistent, fosters increased production,
Speaker: And that is efficient for both the government and for the companies that are seeking approval for their products that they want to bring to market.
Speaker: There's nothing more frustrating for a company than to submit the information it needs with all of the demonstration of the efficacy and the safety of a product.
Speaker: only to have all of a sudden different requirements or a study is conducted in a slightly different way.
Speaker: Things where the goalpost is moving as they're looking to go through the regulatory process.
Speaker: So that's what we're really looking for.
Speaker: We're also looking for regulations that are fit for purpose.
Speaker: regulations that actually accomplish what we're trying to achieve, which are effective and safe products out there to be used within the supply chain.
Speaker: So we are holding ourselves up to increased safety standards and focusing those standards on science-based human health.
Speaker: and animal food production standards, and really being able to make sure that we have some idea of what the needs are, what the requirements are, and that they actually meet the intended purpose.
Speaker: That's what we're looking for.
Speaker: And I think every consumer should be looking for that as well.
Speaker: So to explore the link between human food and human food production and animal feed,
Speaker: Earlier this year, the Trump administration launched the Make America Healthy Again movement, so aiming to improve public health through different means.
Speaker: Those, of course, impacts the agri-food industry.
Speaker: And since this initiative targets food production, does it threaten to complicate feed production?
Speaker: And which issues would you suggest industry stakeholders keep on their radar?
Speaker: I think that when a lot of these initiatives were first discussed, the intention was to focus on human food.
Speaker: But I think what wasn't clearly understood is that in all of the regulatory statutes and in all of the legislation, food, the word food,
Speaker: applies to both human food and animal food.
Speaker: And so many of the initiatives, as you rightly observed, are really intended towards human food, but are certainly catching the animal food industry up in the topic and the issue.
Speaker: So when we are watching a lot of the conversation in that area, we have laid out two major requests.
Speaker: One is that any work that's done in this area is based on good consensus of science, looking at long-term the scientific evidence and that it be risk-based.
Speaker: That's one of our first requests and criteria.
Speaker: The second one is that the animal food industry and indeed the U.S. agricultural and food industry be at the table for those discussions.
Speaker: We know these industries.
Speaker: We're intimately familiar with how they're regulated, where some of the challenges are, and we need to be at the table for that conversation rather than brought in after a conversation or sitting on the sidelines.
Speaker: So those are our two primary requests.
Speaker: But as the conversation has evolved, we have really focused in on a couple of things.
Speaker: One is definitely
Speaker: grass ingredients as an area of major concern.
Speaker: Grass, generally recognized as safe, is one of the essential regulatory pathways for safe ingredients that address animal well-being,
Speaker: human food safety, and animal food biosecurity.
Speaker: So there are a couple of different pathways under GRASS.
Speaker: There's the notified GRASS, which means you notify the FDA, and then independent conclusions of GRASS, which are conclusions that are drawn by the manufacturers of those different products.
Speaker: Let's take a little stroll down history lane if we can, Jack.
Speaker: Yes, please.
Speaker: Grass is a very confusing pathway for a lot of folks.
Speaker: When we started putting regulations in place back on some of these things, and we can go back to the 1950s.
Speaker: That was before I think either one of us were born.
Speaker: And we know that there were a lot of things that were on the plate, both on the plate for humans and in the feed bowl.
Speaker: of animals that we've been feeding, quite frankly, in many cases for millennia.
Speaker: And so there was a recognition that not everything needed to be reviewed for safety because we knew it was safe.
Speaker: We'd been consuming it.
Speaker: We had been eating these products.
Speaker: So grass was a way to, in a common sense way, acknowledge, hey, we don't need to look at everything.
Speaker: Let's look at ingredients that actually pose a higher risk.
Speaker: of safety or concern for the ultimate consumer, whether that's a human or an animal.
Speaker: And so it allowed us to focus and take a look at the things that really mattered and really posed a real risk.
Speaker: So grass is an incredibly useful tool and it still is a useful tool.
Speaker: So that's why we say, look, if we start looking at every single thing
Speaker: We'll never get to those products that are of real concern and that really deserve to be looked at closely to make sure that it is a safe product to be put onto the market.
Speaker: So I am not saying that nothing should be looked at on grass.
Speaker: I'm certainly open to ways to be able to make sure that folks understand what's in their food, but restricting access to that pathway for animal food ingredients would really increase
Speaker: the burden of the timeline to get products out and the cost of animal-based protein without any real improvements to overall health.
Speaker: So that's one of the reasons that we are taking a look at that.
Speaker: We know that FDA has stated an intention to review certain ingredients that have been safely in use for many years.
Speaker: But their efforts, as I would argue, and as I've said, are best focused on the pre-market approval of animal food ingredients to address animal and human food safety, rather than a post-market review of products that have been out there and have already had proven safety records.
Speaker: Our global competitiveness of our agricultural industry really depends on that.
Speaker: And making sure we don't miss the things that really matter to the ultimate consumer depends upon that as well.
Speaker: Now to switch gears a little bit from the external to the internal, can you tell us a little bit about what's happening within AFIA?
Speaker: I recently saw someone, I was talking with someone recently and they said, change is not something to brace against, but rather something to embrace.
Speaker: And I liked that, Jackie, and it got me thinking, we're in a world of a lot of change right now.
Speaker: And so when we looked at how we could best equip AFIA to be resilient and adapt to a lot of those changes, we decided to take a look at how we were structured.
Speaker: So we've realigned and we've redeployed our internal resources to be able to lean into a lot of these emerging challenges that are coming at the industry today.
Speaker: So this realignment is going to allow us to more rapidly respond with cutting edge tools and information for our members and with our stakeholders.
Speaker: And as I'd like to say, it's really about allowing us to lean in and at the end of the day, be more proactive.
Speaker: We want to be able to quickly respond to things, but we're most excited when we can proactively work on the things that matter to our members.
Speaker: So we've made a few changes.
Speaker: We have a new director of communications, Cornelia Pocu, who just recently started.
Speaker: We're also adding an expert exclusively dedicated to bringing educational programs to our members.
Speaker: So this will be the first time that AFIA has had someone solely focused on making sure that our education program is programming is meeting member needs and is going to be focused on delivering the first class programming across all of our areas of expertise.
Speaker: In September, we're welcoming a new animal nutritionist that's going to be working with Laura Moody with our Institute for Feed Education and Research, and is going to be bringing another expertise to that organization and AFIA to be able to fulfill some of our research needs and focusing on making sure that we have the right information to advance the right policy agenda.
Speaker: And then over the next few months, we're also bringing in an individual who's going to be helping our members become more involved in political activity and engagement and really working to get the voice of our members out there with Congress, with the administration, and with state governments.
Speaker: And to wrap up our conversation, are there any upcoming AFIA events that you'd like our listeners to know about?
Speaker: We're coming up on the most exciting time of the year for AFIA.
Speaker: We have our Liquid Feed Summit.
Speaker: It's going to be in Fort Worth, Texas, September 9th through the 11th.
Speaker: So all things Liquid Feed will be discussed there.
Speaker: And we've got some great educational programming lined up as well as some excellent member networking.
Speaker: From October 14th to November 18th,
Speaker: We're going to be offering our Fundamentals of Feed Manufacturing online courses, and those are really popular.
Speaker: They're really useful and really helpful for our members and their team members within their companies.
Speaker: The Equipment Manufacturing Conference, always a fun conference, is going to be in Rancho Mirage, California.
Speaker: That's happening November 5th through the 7th.
Speaker: And if anyone's ever been to an equipment manufacturers conference, you'll find out there's a lot more conversations about a lot more than just equipment manufacturing.
Speaker: So it's a good conference.
Speaker: And then I think people are going to be really excited about our Preventative Controls Qualified Individuals Refresher Course.
Speaker: So PCQI.
Speaker: This is the first time we're offering a course for those that have already gotten education on PCQI but need a little bit of a refresher.
Speaker: And we're having that December 9th to the 10th in Nashville, Tennessee.
Speaker: But big event of the year is coming up January 27th to the 29th, our IPPE in Atlanta, Georgia.
Speaker: You can join 30,000 of your great friends in the animal food space and join us down in Atlanta for acres and acres of trade show floor.
Speaker: As always, I'm looking forward to IPPE coming up here soon.
Speaker: With that, if you would like more information on some of the topics that we discussed today or other AFIA initiatives, please visit www.afi.org.
Speaker: Thank you again, Constance, and thanks to you for tuning in.
Speaker: Thank you.
