EU strategy on livestock and protein explained

1. The European Commission is proposing changes to livestock production, including moving pigs from crates to pen systems, with a proposal due by Q2 2027
2. The Commission is also considering measures to strengthen sector resilience, such as a potential dedicated risk-management scheme under the post-2027 Multiannual Financial Framework covering climate-related and animal disease risks
3. The EU protein action plan aims to increase the share of protein from EU-grown oilseeds and protein crops used in feed from 25.8% in 2025 to 35% by 2035

The EU Livestock Strategy is the first of its kind, setting out a long-term action plan to help livestock farmers address economic, environmental and market challenges.

The Commission estimate that livestock accounts for around 40% of EU agricultural added value and generates €400 billion in annual turnover across 4 million farms. It also highlights falling livestock numbers as a potential risk to the sector. France's bovine population has fallen by 16% over the past decade, while Germany's pig population has declined by 22%. Profitability is cited as a central challenge, with Fi-Compass estimating a financial investment gap of over €18 billion for the livestock sector. Other challenges include nutrient pollution in areas with high livestock concentrations. Linking to territorial diversity, the Commission will ask Member States to use the CAP to reduce nutrient pressures in these areas, while developing a plan for regions at risk of land abandonment.

When addressing fairness for producers, in the EU and with global competition, the Commission states a reduction in EU production and import of products produced to lower standards does not necessarily reduce global environmental impacts. It therefore sees maintaining a viable livestock sector within the EU as important for both food security and resilience.

The strategy sets out five principles: building resilience, strengthening competitiveness, supporting sustainability, recognising Europe’s territorial diversity and promoting excellence across production systems. The strategy places emphasis on the sector's contribution to food security, rural economies and the resilience of the EU food system. A number of actions are outlined by the Commission to address the five principles, including a potential risk-management scheme covering climate and animal disease risks, a harmonised method for measuring farm-level livestock emissions, and a European Excellence scheme to recognise higher-standard EU production.

More broadly, the Commission intends to consider financial support and preferential lending to help producers invest in new systems.

The most tangible proposals relate to animal welfare. The Commission explain where welfare gains translate into measurable health, productivity or premium price benefits, improvements can deliver improved economic results, reduced disease risk and broader support. The Commission outlines proposals to revise rules to phase out cages and address practical on farm welfare indicators for laying hens and broilers by end of 2026, including equivalent import requirements. This will be followed by a similar proposal covering pigs transitioning from crates to pen systems by Q2 2027.

The scale and cost of these changes will depend on the final legislation. The Commission is preparing its own impact assessment but cites estimates from farmer organisations suggesting that around €6.7 billion of investment could be required for the EU pig sector to transition away from crates. These estimates remain indicative and will depend on transition timelines, any exemptions and the availability of financial support.

EU livestock use around 74 million tonnes of protein feed each year. Around 26% is imported, while 74% of high-protein oilseeds and protein crops are imported. Dependence is particularly high for soya, with 94% of soya protein imported.

The Commission aims to increase the share of protein from oilseeds and protein crops originating within the EU and used as feed from 25.8% in 2025 to 35% by 2035.

To achieve this goal, the Commission sets out principles including: providing farmer incentives to promote production of pulses and soya through CAP tools, strengthening EU protein value chain through infrastructure funding and contracts, enhancing grassland and livestock integration, introducing demand side measures (e.g. origin labelling, campaigns, public procurement), advancing research and innovation, as well as policy coordination through market monitoring and integration through National and Regional Partnership (NRP) plan.

This could create greater opportunities for EU arable producers to grow pulses and oilseeds, although the Commission recognises that higher protein content protein crops generally produce lower yields than many of the crops they could replace, limiting impact on the crude plant protein balance. They can, however, provide wider agronomic benefits through nitrogen fixation, improved soil fertility and reduced fertiliser requirements.

The plan does not seek complete self-sufficiency. The EU will continue to import protein while looking to diversify its sources; Ukraine is identified as having significant potential, with EU accession potentially increasing EU plant protein self-sufficiency from 76% to 86%.

The newly launched EU initiatives are at an early stage, with details to follow around implementation across the EU, funding and costs.

As a close trading partner, changes to EU livestock production methods and plant protein supply will be important going forward to understand cost of production implications, market competitiveness, as well as what is required for imported products into EU.

In England, Defra recently released England’s Farming Roadmap up to 2050, setting out the Government ambition to maintain domestic food production alongside delivering environmental improvements. Similarly, the Roadmap centres principles to build an industry which is profitable, productive, sustainable and resilient. Defra set out the ambition to achieve this through Environmental Land Management Schemes, greater use of private finance, strong regulation in some areas and improvements to productivity.

Implications of the EU Livestock Strategy will largely depend on the outcome of a UK/EU sanitary and phytosanitary agreement, which is currently under negotiation and expected to take effect in mid-2027. Defra have published areas in scope to dynamically align with the EU, in the proposed agreement. These areas include animal health, breeding and aspects of welfare as well as labelling. As a result, on agreement of a deal, any legislative changes from the EU Livestock Strategy could directly impact UK farmers, as well as treatment of third-party imports.

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