Price of feed

The feed price index is projected to reach 120.68 in 2025, representing a continued decline from 129.98 in 2024. This downward trajectory reflects ongoing normalization of feed costs following the exceptional price surge experienced during the global supply chain crisis. The current performance indicates feed prices remain elevated compared to pre-pandemic levels but are adjusting toward more sustainable levels as market conditions stabilize. Livestock producers are benefiting from this price moderation, which is helping restore profit margins that were severely compressed during the peak inflationary period. The declining trend suggests agricultural input markets are successfully adapting to normalized supply chain conditions, though feed costs continue operating above historical baseline levels that prevailed throughout the 2010s.

Feed prices have experienced extraordinary volatility over the five-year period from 2020 to 2025, characterized by one of the most severe inflationary episodes in agricultural input history followed by substantial correction. The period began with feed prices at 105.40 in 2020, representing relatively stable conditions that masked the impending supply chain disruptions. However, prices surged dramatically through 2021-2022, reaching a historic peak of 160.08 in 2022 that represented a 60% increase above the base year level.

The unprecedented price spike reflected multiple converging factors including pandemic-related supply chain bottlenecks, extreme weather events that disrupted crop production, and global commodity market volatility that affected grain and protein meal availability. Transportation disruptions, port congestion, and labor shortages throughout the agricultural supply chain created persistent shortages that drove feed costs to levels not previously experienced. The Russia-Ukraine conflict further exacerbated grain market tensions, as both countries represented significant sources of feed grains and protein meals for global markets.

The inflationary surge created severe financial pressure across livestock sectors, with producers facing unprecedented input cost increases that significantly compressed profit margins. Many operations were forced to implement cost reduction strategies, adjust feeding programs, or reduce herd sizes to manage financial sustainability. Government support programs provided some assistance, but the magnitude of feed price increases overwhelmed most mitigation efforts.

However, feed prices have undergone substantial correction since the 2022 peak, declining consistently through 2025 as supply chain conditions normalized and commodity markets stabilized. This adjustment reflects improved agricultural production, restored transportation efficiency, and stabilized international trade relationships that have increased feed ingredient availability. Despite this welcome moderation, feed prices remain approximately 15% above pre-pandemic levels, indicating structural cost increases have been retained within agricultural input markets.