Outlook poultry sector Aurelio Sebastia Deputy President of FEFAC
Industrial compound feed and premixtures manufacturers 21 Member Associations from 20 EU Member States 4 Observer members (Turkey, Croatia, Serbia, Russia) 3 Associate Members (Switzerland, Norway, EMFEMA) 150 mio. T of compound feed /year Total EU turnover estimated between 45 and 50 Bio € 6 Technical committees to assist the FEFAC Council Industrial Compound Feed Production FEFAC in a nutshell 29 June 2011 COPA-COGECA
European Feed Manufacturers Guide (EFMC)
I ndustrial compound feed production per country 150 mio. t in 2010 in the EU-27 Source: FEFAC 29 June 2011 COPA-COGECA
Industrial compound feed production in the EU-27 in 2010 150 mio. t (per category) Source: FEFAC 29 June 2011 COPA-COGECA
Feed material consumption by the EU-27 feed industry in 2010 Source: FEFAC 29 June 2011 COPA-COGECA
Improvements in modern animal production From 1975 to 2010, animal output increased significantly Milk production per cow >65% Piglets raised per sow per year >65% Egg production per hen >45% Body weight gain broilers >25% And animal production became more efficient and sustainable Pig Feed Conversion Ratio improvement >20% Reduction of P, N and ammonia emissions per ha ≈50% 29 June 2011 COPA-COGECA
Reduction of Fish meal & Fish oil in fish feed >40%
Evolution of the global Feed Conversion Ratio from 1923 to 2001 29 June 2011 COPA-COGECA Source: World Poultry Science Journal Vol. 67 June 2011 kg / kg
Evolution of the Feed Conversion Ratio for poultry in Denmark from 2002 to 2011 29 June 2011 COPA-COGECA
The challenges ahead: Meeting increasing demand for animal products World population increasing Living standards improving Demand for food increasing every year Competition for land with non-food use and urban development 29 June 2011 COPA-COGECA
Only solution is to improve resource efficiency
The challenges for the CAP towards 2020 Produce more (to meet the increasing world demand) Be more resource efficient ( stopping discrimination regarding public support between modern / intensive and traditional / extensive / organic) Secure the supply of the EU feed & food chains Be developed everywhere in Europe Be competitive and economically viable for farmers and related sectors Generate safe, diverse, affordable products 29 June 2011 COPA-COGECA
The EU must produce more, better, everywhere and at an affordable price
The factors affecting the production costs of EU compound feed Feed materials prices (up to 85% of the compound feed costs) Availability of feed materials (sufficient volumes, regularity of supply, etc) Legal restrictions to Feed materials (asynchronous authorisations GMOs, PAPs, etc.) Feed safety legislation (HACCP, monitoring of contaminants, etc.) Environmental constraints (restrictions on N or P emissions, Carbon Footprint) 29 June 2011 29 June 2011 COPA-COGECA
Multiplication of « cahiers des charges »
The key challenges of feed material supply for the EU feed industry Elimination of 0-tolerance for Low Level Presence of non-EU approved GMOs in imported feed materials 29 June 2011 COPA-COGECA
Buying feed materials from sustainable sources
Asynchronous GM approvals EU Commisison proposal for « Technical Solution » MRPL of 0.1% & analytical uncertainty For events for which a dossier for authorisation has been tabled (at least 3 months) and a method of analysis is validated by EURL Also covers no longer authorised GM events, EP Scrutiny until 15 June – entry into force early July 2011 Possible future review taking into account impact on feed and food chains FEFAC position on draft « Technical Solution » FEFAC supports « feed » only proposal as a first step in the right direction 29 June 2011 COPA-COGECA
FEFAC supports FFC position in favour of food and feed scope for the future
Feed ban: FEFAC views Supports lifting of the feed ban but not at any price: Need for good communication Need for proportionate measure Single species goes too far (what is an animal species?) Should be possible also for mills producing non-ruminant feed Need for level playing field (vs. home mixers, 3rd countries) Who may use the 1.0 mio. T of pig&poultry meal? EU industrial pig&poultry feed: 200,000 t? 29 June 2011 COPA-COGECA
EU Home mixers: 50,000 t?
Sustainability: The FEFAC Credo (1) FEFAC believes that products of animal origin form an integral part of the European diet providing key nutritional benefits to the European population. Nutritionally optimised feed meeting the physiological requirements of animals and fish raised for food production purposes is essential to mitigate the environmental impact of production and consumption of animal products. 29 June 2011 COPA-COGECA
The EU compound feed industry is willing to responsibly contribute to the sustainable development of livestock and aquaculture production systems.
FEFAC believes that the key drivers for such improvements are: Promotion of ecologically intensive production systems for farm animals and fish, oriented towards maximisation of resources efficiency and minimisation of GHG emissions; Changes in diet patterns and composition for farm animals and fish to significantly reduce the GHG emissions attributed to livestock production systems (e.g. methane ); Improvement of feed efficiency , i.e. the conversion of feed into animal products, in order to control the use of resources and to reduce the loss of nutrients; Sustainability: The FEFAC Credo (2) 29 June 2011 COPA-COGECA
Further optimisation of use of co-products from the food industry, biomass and non-organic raw materials to alleviate the pressure on natural resources.
Illustration: Round Table on Responsible Soy (RTRS) Goal and Mission: to build up a global and participatory process that promotes economically viable, socially equitable and environmentally sustainable production of soy Develop common view on issues Develop sustainability criteria Develop control system at production level Organise chain of custody 29 June 2011 COPA-COGECA
Controlling extreme volatility Key target: convergence between futures and cash markets Transparency: Weekly public information on positions taken by categories of operators No need at this stage to set up position limits by categories of operators More transparency on global agriculture data 29 June 2011 COPA-COGECA
Index based price formation: which model: France, Belgium other?
www.fefac.eu Thank you for your attention 29 June 2011 COPA-COGECA Workshop