Analysis: The US increases funding for pet and agrifood players amid trade slowdown

Analysis: The US increases funding for pet and agrifood players amid trade slowdown

US dog and cat food exports declined by 3.5% in 2025, prompting industry players to accelerate diversification strategies in international markets.

The United States Department of Agriculture (USDA) has increased funding for trade organizations through the Market Access Program (MAP) in 2026 by 5.3%.

State departments benefited, such as the California Agricultural Export Council, whose funding increased by 33.7%. Specific product associations and councils were also positively impacted, such as those for soybeans (27.6%), dairy (27.6%), apples (27.2%), seeds (20.6%) and feed (20.4%).

The Pet Food Institute (PFI), responsible for promoting American pet food abroad, saw a small 1.5% increase, receiving $1.4 million (€1.2M), up from $1.3 million (€1.1M) last year.

The American Feed Industry Association (AFIA) also received $205,392 for market development activities that support the creation of new foreign markets.

Weak trade scenario

The increase comes amid worsening conditions for some crops and products in the American agrifood sector. For instance, the associations receiving the largest absolute amounts of funding represent the meat and cotton sectors. 

The pet food market was also affected last year: exports of dog and cat food fell by 3.5% YoY, according to U.S. Census Bureau Trade Data, totaling $2.4 billion (€2.1B). Among the 35 largest importers, the countries that reduced demand the most were Brazil (-30.7%), the UK (-30.1%), France (-26.9%), Malaysia (-26%) and Portugal (-23%).

Exports were also affected by a slowdown in demand from Canada. Although its decline was more modest, at 5%, the country accounted for nearly half (49%) of American dog and cat food exports, increasing its influence on the overall average. 

On the other hand, the countries that increased their imports the most were Thailand (30.5%), the Netherlands (29%), Taiwan (18%), Colombia (17.1%) and Singapore (14.3%).

Mexico, the second-largest destination for American dog and cat food, which accounts for 10.7% of total exports, increased its demand by 11.2% during the period.

Despite the overall drop in exports, the US reached the “highest export levels since at least 1970” to some countries, according to the USDA: Mexico, the Netherlands, Costa Rica, Singapore, Israel and Guatemala.

2026 strategy

According to the PFI, US pet food exporters aim to diversify their markets and explore opportunities in emerging regions. “Much of this work is centered on Central and South America, as well as select markets in Asia, where there is strong potential for longterm growth,” the association tells GlobalPETS. 

Central America, for instance, registered a 2.7% growth in exports in 2025 compared to 2024.

To assist producers in the 19 countries where the association is active, PFI says it will promote activities including “participation in major pet trade shows, ongoing engagement with veterinary communities in priority markets, and consumer outreach through both inperson and virtual events.”

“For example, in Brazil, PFI representatives have taken part in adoption campaigns that educate new pet owners on the importance of nutrition and introduce US pet food as an option. Similar activities will continue across multiple markets in 2026,” it adds.

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