Pet Food Institute aiming to expand reach of US pet players after funding boost

The Pet Food Institute (PFI) will receive $1.65 million (€1.6M) from the Department of Agriculture’s Regional Agricultural Promotion Program (RAPP). The program, created in 2023, aims to boost American businesses abroad.

The money comes as US companies are concerned about proposed tariffs and trade barriers. The group is also receiving $1.34 million (€1.3M) from the Market Access Program, a USDA program with similar goals.

PFI specifically plans to focus on “regulatory engagement, consumer education and compliance support.”

Target markets

The group represents pet food manufacturers and will concentrate on Brazil, Central America, South Africa, South Korea and Taiwan.

While PFI did not explain why it has prioritized these specific markets individually, it said, “Inconsistent or varying import requirements, long processing times for import registrations and high tax rates all pose barriers to entry for U.S. pet food companies that wish to export.”

It said PFI does not push specific brands, and all US pet food companies, including non-members, can benefit. Member brands include major players like Purina, Mars and General Mills.

International scope

PFI’s target countries are growing, and in many cases, domestic producers are helping meet increased demand.

Pet food accounted for R$38.1 billion ($6.2B/€6B) industry-wide turnover in Brazil. However, growth has slowed due to high taxes.

South Korea represents a particular challenge for US manufacturers. The USDA reported that in 2023, pet food exports to South Korea declined 11.4% year-on-year (YoY) to $307 million (€276M). Local production was likely to blame, as the country’s government is planning to boost the domestic pet food industry.

Notably absent from the list of countries are China and India, the world’s two largest nations and the sites of rapid growth in the pet industry.