When China imposed sudden tariffs on U.S. alfalfa hay, it reshaped the global forage supply chain overnight. In this article, we examine the impact, how Al Dahra helped restore balance and why supply diversification is now critical for buyers.
When U.S. alfalfa exports to China ground to a halt in early 2025, it caused major disruption across global alfalfa supply chains, exposing critical vulnerabilities. This article explores the trade shock, how it highlighted the fragility of single-origin strategies – and how Al Dahra leveraged its global multi-origin model to protect supply, ensure food security and support dairy producers across Asia.
For years, the global alfalfa trade flowed through relatively stable channels, with the U.S. acting as a dominant exporter to China, the Middle East, South Korea and Japan. This equilibrium was abruptly disrupted in early 2025, when China imposed a 125% tariff on U.S. alfalfa hay. It was a move that sent shockwaves across the global forage market and exposed the fragility of one-dimensional supply strategies.
As one of the world’s largest and most geographically diversified forage suppliers, Al Dahra had already invested in multi-origin sourcing platforms across Europe, Africa, the Middle East and beyond. This diversification enabled rapid adaptation, while many others were left scrambling.
A tariff shock that reshaped the market
Globally, around 11 million metric tonnes of alfalfa are traded each year. China alone accounts for an estimated 40-50% of this demand, with the U.S. historically supplying much of it. The cost-efficiency of backhauling U.S. hay in otherwise empty containers returning from China had long sustained the trade.
But when retaliatory measures emerged during the 2025 US-China trade dispute, U.S. alfalfa hay was suddenly subject to a 125% tariff, more than doubling the price and effectively halting exports to China overnight. This sudden shake-up saw U.S. hay virtually disappear from the Chinese market for nearly two months.
“With such a large portion of the market suddenly affected, the consequences were immediate,” says Tristan Zhang, Deputy General Manager at Al Dahra Trading. “Not only did the cost of logistics soar, but buyers across Asia were forced to urgently re-evaluate their sourcing strategies.”
How Chinese dairy farms were affected
U.S. shipments dried up, orders were cancelled and Chinese dairy farms – reliant on quality imported forage for their six million dairy cows – began rationing, reformulating feed and searching for alternatives. Many reduced daily forage input per cow from 3kg to as little as 1.5kg, directly impacting milk yield and herd health.
And while tariffs dominated headlines, a wave of accompanying non-tariff measures deepened the disruption further.
Although official tariff levels returned to baseline in May – with the 125% levy rolled back to the usual 7% – logistical challenges, risks and regulatory scrutiny have persisted, with buyers remaining cautious.
“In some ways, the non-tariff measures have an even longer tail,” notes Zhang. “They create uncertainty that makes long-term planning difficult, especially for producers reliant on a single export route.
Uniquely placed for a rapid response
Al Dahra’s global footprint allowed it to act decisively in response to the disruption. Within days, internal crisis teams were rerouting U.S. shipments to alternate destinations like Japan, Korea and the Middle East. Real-time updates kept clients informed, and coordination between sourcing, logistics and commercial teams ensured continuity for customers, even as others struggled.
More importantly, Al Dahra helped Chinese clients transition to new origins, with Spain, Romania and Egypt quickly stepping in to fill the gap when called upon.
“It was a very intense few weeks,” Zhang says. “We held daily meetings, monitored regulatory updates and diverted cargo in real time. Without our global sourcing and logistics platforms, it would have been impossible to respond at that speed.”
A turning point for diversified sourcing
The shock taught the market that reliance on one supplier or origin is no longer viable.
Buyers began shifting their strategies, not just in China, but across Asia. U.S. exporters, in turn, redirected shipments to Japan and South Korea, adding further volatility to the market.
“In the past, Chinese importers could rely almost exclusively on U.S. supply,” Zhang explains. “Now, we’re seeing stronger demand for European forage, and for products from countries like Egypt and Romania that were not previously top of mind.”
Spain: a strategic buffer in the global supply chain
Spain has emerged as a leading alternative, and not just in response to U.S. tariffs. As the largest forage supplier in Europe and the third-largest globally, the country offers a compelling combination of scale, expertise and logistics.
“Spain has a deep history in forage production, with a wide range of grades and over 50 factories and producers, many of whom have decades of experience,” says Xavier Villarroya, Al Dahra’s Operations Manager for Europe. “That gives us a consistent, high-quality product base to work with.”
Al Dahra works directly with six major Spanish facilities and maintains around 35-50% market share in the country, sourcing over 600,000 metric tonnes annually. This includes both internal production and trusted external partnerships, offering buyers supply security, flexibility and peace of mind.
“Our own production doesn’t always meet demand,” Villarroya adds, “but because of our strong external supplier network, we can adapt quickly without compromising quality.”
Spain also provides a key logistical advantage for Al Dahra’s customers. Its robust export infrastructure, coupled with Al Dahra’s experienced logistics team, ensures stable, timely shipments to Asia at competitive rates, even amid global supply chain volatility.
Romania: a cornerstone of controlled forage production
While Spain plays a central role, the emergence of Romania as a producer has added another powerful sourcing platform to Al Dahra’s portfolio. Over the past decade, Al Dahra has opened four new factories across Europe, including major farmland and facilities in Romania.
“We’ve taken the know-how from Spain and Italy and applied it to Romania,” says Villarroya. “The results have been excellent. Our Chinese customers are very satisfied with the Romanian product.”
With over 56,000 hectares of farmland under its direct control in Romania through Agricost, Al Dahra has built one of the largest vertically integrated forage platforms in Europe. Romania’s scale, fertile lands and favourable climate have enabled Al Dahra to produce consistently high-quality forage at volume, with complete visibility and traceability from field to shipment.
This direct ownership allows for precise control over farming practices, quality standards and logistics, which proved crucial when global disruptions emerged. “Romania has emerged as a cornerstone of our multi-origin model,” says Villarroya. “We can ramp up production in response to market shocks without relying on third parties.”
Romania’s location also gives Al Dahra logistical access to both European and Asian markets, making it a strategic link in the company’s global supply chain.
Egypt: strategic location meets sustainable growth
Egypt, too, is growing in importance in the industry thanks to its proximity to Asia and increasing forage output. The country offers yet another layer of security and flexibility.
Al Dahra’s early entry into Egypt in 2008 laid the foundation for one of its most important feed hubs today. With farms and processing facilities situated close to key transport corridors, Egypt offers a unique combination of geographic advantage, growing production capacity and cost efficiency.
Recent investments in regenerative agriculture and water-efficient practices have further enhanced the sustainability of Al Dahra’s Egyptian operations.
“Egypt is fast becoming a reliable and sustainable alternative to traditional markets,” says Villaroya. “It’s part of how we future-proof our feed supply.”
South Africa to Spain: responding to climate shocks
Recent floods in South Africa presented another major challenge for global forage supply. While many sellers were left without alternatives, Al Dahra was able to seamlessly the shortfall by quickly pivoting to Spanish production.
“That’s the benefit of having a multi-origin model,” says Zhang. “We’re not tied to one region. We can move quickly, whether it’s due to climate, geopolitics or customer preference.”
Investing in sustainable, future-proof supply
Alongside geographic diversification, Al Dahra is investing heavily in modernisation and sustainability.
One of its Spanish factories now dehydrates 100% of its forage using certified sustainable biomass, removing natural gas entirely from the process.
According to its 2024 Sustainability Report, Al Dahra continues to implement regenerative agricultural practices that accelerate soil carbon sequestration across its operations. In Romania alone, the company calculated that these practices removed and reduced a total of 53 kilotons of CO2e in 2023, which were submitted for certification.
“These investments are about more than just efficiency,” Villarroya says. “They’re a close reflection of our values of quality, sustainability and long-term resilience.”
Lessons for the dairy and feed sector
The past six months have shown that feed supply is not a given, it’s a strategic concern for which buyers have solid contingency plans in place.
Farms that were heavily dependent on U.S. imports have faced tough choices. But those with diversified supply strategies – and suppliers like Al Dahra who could pivot quickly – have emerged stronger.
Key takeaways for feed buyers:
- Don’t rely on a single origin or route – it’s too risky
- Diversification is not a luxury – it’s a necessity
- Build redundancy into your contracts and sourcing
- Prioritise suppliers with global logistics, regulatory insight and sustainable practices
Feed security is the foundation of food security
A trusted partner in an uncertain world
As the 2025 peak season approaches, Chinese buyers are cautiously rebuilding inventories. Demand is expected to climb from September through Lunar New Year, and securing consistent, affordable forage remains a top priority.
Al Dahra is stepping up, too, diversifying and expanding its supply options into Australia, Romania, Spain, Italy, Egypt, South Africa and Argentina, as well as offering flexible contracts and working closely with dairy producers to provide planning support.
In a world of shifting regulations, climate unpredictability and geopolitical risk, Al Dahra’s multi-origin model offers unmatched supply diversity along with long-term resilience.
Core hubs like Romania and Egypt provide vertically integrated, high-volume production with full control over farming and processing, ensuring stability even in the face of global shocks.
With ongoing investment in regenerative agriculture, water efficiency and carbon reduction, these platforms are aligned with the future of sustainable feed and make Al Dahra a reliable partner in true feed security.
“Our message to the market is simple,” says Zhang. “We’re not just a supplier, we’re your partner in food security.”
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