Growing demand from biofuels and biogas production is increasing competition for limited animal by-products used in pet food and feed. Industry representatives warn that current EU policy incentives risk diverting valuable resources away from their highest-value use in the food chain.

Competition for Category 3 animal by-products (ABPs) is intensifying in the EU, as demand from subsidized biofuel and biogas production continues to rise. In a new position paper, FEDIAF (European Pet Food Industry Federation) calls for greater policy coherence to ensure sustainable access to these materials for the pet food and feed sectors.

Category 3 ABPs—materials not consumed by humans but suitable for animal nutrition—play a key role in the circular economy by being transformed into pet food products, supporting both animal welfare and resource efficiency. However, policy incentives linked to renewable energy frameworks are increasingly directing these inputs toward energy use.

“Category 3 animal by-products are a finite resource and play a critical role in pet nutrition and animal welfare,” said Franco Garbelotto, Deputy Secretary General of FEDIAF. “EU policies should ensure that these valuable materials remain available for their highest-value uses within the feed chain before being directed to energy applications.”

According to the federation, diverting feed-grade animal fats and other ABPs toward energy could reduce availability for pet food production, potentially increasing reliance on alternative raw materials with higher environmental footprints and greater import dependency.

The paper comes as the EU advances key policy initiatives, including its Bioeconomy Strategy and Circular Economy Act, which will shape how biomass resources are prioritized across the region.