Business 12 Jun, 2026

Soybean meal supply crunch puts pressure on livestock, poultry sectors: CLFMA

Business To Business, Mumbai, 12^th June, 2026:   The Compound Livestock Feed Manufacturers Association (CLFMA) has expressed concern over a shortage of soybean meal, a crucial protein-rich ingredient used in animal feed, warning that the supply crunch is increasing production costs and putting pressure on the poultry, aquaculture, and livestock sectors.
According to the association, soybean meal prices have surged by more than 40% in recent weeks, reaching around ₹65-66 per kilogram.
The increase has significantly raised the cost of manufacturing feed, which is one of the largest input expenses for animal husbandry and aquaculture operations.
The shortage is affecting industries that depend heavily on protein-rich feed, including:

• Poultry farming.
• Aquaculture and fish farming.
• Dairy and livestock production.
• Animal protein supply chains.

Higher feed costs can directly affect farmers' profitability and may eventually influence the prices of products such as poultry, eggs, fish, and dairy.
Industry Concerns
Divya Kumar Gulati said:
"India's poultry, aquaculture and livestock sectors are critical contributors to food security, rural livelihoods and exports. A sustained shortage of soybean meal and escalating feed costs can adversely impact farm productivity and profitability across the value chain."
Soybean meal is widely used because of its:

• High protein content.
• Nutritional value for animals.
• Importance in improving growth and productivity.
• Role as a key ingredient in compound feed formulations.

Any disruption in its availability can have ripple effects throughout the agricultural and food production ecosystem.
The livestock and poultry sectors play a major role in India's:

• Food security.
• Rural employment.
• Agricultural income generation.
• Export earnings.

Industry stakeholders fear that if soybean meal supplies remain constrained and prices continue to rise, farmers may face shrinking margins, while consumers could eventually see higher prices for animal protein products.
CLFMA has urged policymakers and stakeholders to address the supply situation to ensure adequate availability of soybean meal and maintain the competitiveness of India's livestock and aquaculture industries.