This article was published in the July 2024 issue of Pet Food Processing. Read it and other articles from this issue in our July digital edition.  

The US animal food industry remains a robust player on the global stage, backed by strategic initiatives and proactive measures to ensure its continued success and resilience. In 2023, this industry exported a remarkable $13.4 billion in feed, feed ingredients and pet food, equating to 19.8 million metric tons in total volume. Pet food alone accounted for $2.4 billion of these exports. 

The industry’s strength is bolstered by its commitment to quality, safety and innovation, which drives its competitive edge in international markets. US pet food manufacturers prioritize high standards in sourcing ingredients, maintaining stringent production processes, and adhering to regulatory requirements. Furthermore, strategic partnerships and trade agreements play a pivotal role in expanding market access and facilitating smoother trade flows. 

The American Feed Industry Association (AFIA), which represents the total animal feed and pet food industry, is engaged in several initiatives this year aimed at expanding market access abroad for US pet food exporters and ensuring a stable supply chain for the future.

Market Access Programs 

Under the US Department of Agriculture’s (USDA) Market Access Program (MAP), the AFIA has been working to expand US pet food exports, with targeted efforts in Vietnam. Leveraging MAP resources, the AFIA is collaborating with the Vietnamese Small Animal Veterinary Association (VSAVA) to support veterinary clinics in Vietnam, increasing awareness among dog and cat owners about the critical roles veterinarians and proper animal nutrition play in ensuring the wellbeing and longevity of pets.

Later this year, the AFIA and VSAVA will launch a “Pet Health Month” program uniquely targeting veterinarians, veterinary students and pet owners, when the associations will emphasize the importance of nutritious and complete pet foods in a market where many pets are still primarily fed table scraps. This initiative will be a groundbreaking effort in Vietnam, highlighting the essential connection between improved diets and pet health.

“Expanding Vietnamese pet food production can make pet food more affordable and available to Vietnamese pet owners,” wrote Gina Tumbarello of the American Feed Industry Association.

Recognizing that pet food is considered a luxury good and quite costly for many Vietnamese pet owners, the AFIA has also secured additional USDA funding through the Emerging Markets Program (EMP) to assess how US pet food ingredient manufacturers and suppliers might tap into the Vietnamese pet food market and support the expansion of its domestic pet food production. Expanding Vietnamese pet food production can make pet food more affordable and available to Vietnamese pet owners. This approach, combined with efforts to promote pet nutrition, health and the benefits of complete pet diets, could support a significant increase in the overall demand for pet food in Vietnam. 

The US animal food industry utilizes MAP and EMP funding, which, once again, is being debated under the Farm Bill this year. These programs have not seen funding increases since 2006, yet are instrumental in promoting animal food exports, particularly in key markets like Vietnam and China, especially since no new trade agreements are currently being discussed. A key policy priority for the AFIA is increasing funding for the MAP and EMP programs, as well as other market development programs, under the Farm Bill to promote the continued expansion of US agricultural exports, including pet food, particularly in emerging markets like Vietnam.

Supply chain resiliency

Recognizing the importance of securing vital inputs for feed and pet food production, such as vitamins and amino acids, the AFIA has been proactively working with the federal government to address potential supply chain vulnerabilities. 

“An estimated 78% of total vitamin imports to the United States are from China, creating an overwhelming dependency on this single country for its vitamin needs,” wrote Gina Tumbarello of the American Feed Industry Association.

As an example, an estimated 78% of total vitamin imports to the United States are from China, creating an overwhelming dependency on this single country for its vitamin needs, a concern underscored by the lack of feasible alternative sources for these essential nutrients. Where alternative suppliers exist, they simply cannot match China’s vast production capabilities or scale. China holds a commanding position in global vitamin production, reportedly exclusively manufacturing key vitamins such as thiamine, niacin, biotin, inositol, salicylic acid, cobalamin, cholecalciferol and K. This dependency poses significant risks, as demonstrated by the recent trends in the amino acids market, which follow a similar pattern to what has been observed with vitamins. According to some analyses, the US dependency on Chinese production now accounts for over 62% of the global capacity for amino acids, including 76% for lysine and 91% for threonine.

It goes without saying that pets need vitamins to support their wellbeing. Thiamine (B1) regulates energy and carbohydrate metabolism, while vitamin D facilitates the balance of minerals, like phosphorus and calcium, for robust bone growth, essential for maintaining strong muscles and bones. Vitamin E acts as an antioxidant, protecting cells from oxidative damage, further promoting pet health and vitality. 

In addition, pets require amino acids in their diets to maintain healthy and active lifestyles. There are more than 20 amino acids necessary for pets, with 10 deemed “essential,” meaning they must be provided through the diet, since pets cannot produce them internally. It is crucial that pets consume amino acids in the correct amounts daily to support immune function, brain function, metabolism regulation, stamina and weight maintenance. 

AFIA is working with the Vietnamese Small Animal Veterinary Association to help increase awareness among dog and cat owners in Vietnam about the important role proper nutrition and veterinarians play in the long and healthy life of pets. 

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Should a shortage of vitamins and amino acids occur, reformulating pet food diets is not a viable solution due to regulatory requirements that mandate pet food must provide complete and balanced nutrition. The Association of American Feed Control Officials (AAFCO) establishes nutrient profiles that set the minimum and sometimes maximum levels of vitamins and other nutrients necessary for pet foods to be labeled as “complete and balanced.” These profiles are based on scientific research and are designed to meet the dietary needs of pets at different life stages. Also, the Food and Drug Association requires that any pet food claiming to be “complete and balanced” meet AAFCO nutrient profiles.

While this is just one example of a potential supply chain challenge, there may be other instances where overwhelming reliance on a single supplier or a limited number of suppliers for vital inputs could create a precarious situation should geopolitical tensions, trade disputes, natural disasters or other unforeseen events in the supplier country occur. Diversifying supply sources is crucial to mitigating these risks, ensuring a more stable and resilient supply chain. Without feasible alternatives, the animal food industry could become susceptible to fluctuations in supply and pricing, potentially jeopardizing pet health, livestock and poultry health and production, and food security for our nation. 

These points underscore the need for strategic planning and investment in diversifying supply chains to enhance sustainability and reduce dependence on any single supplier. To ensure the resilience of both the US animal food and farm sectors, the AFIA is urging US policymakers to adopt a multi-faceted approach, balancing economic interests with broader strategic considerations to diversify and secure our vitamin and amino acid supply chains. 

Looking ahead

As the US pet food industry continues to flourish on the global stage, it faces myriad challenges and dependencies that require careful navigation and proactive solutions. Industry stakeholders are actively engaged in promoting US animal food exports and expanding market opportunities. 

The AFIA is committed to enhancing supply chain resilience and advocating for strategic initiatives geared toward improving pet nutrition and fortifying supply chain resiliency against potential shocks. By fostering partnerships around the world, embracing innovation and actively participating in policy and regulatory discussions, the AFIA and its counterparts are laying the groundwork for a resilient and thriving US pet food industry.

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