Aurelio Sebastia


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Aurelio Sebastia

  1. 1. Outlook poultry sector Aurelio Sebastia Deputy President of FEFAC
  2. 2. <ul><li>Created in 1959 </li></ul><ul><li>Industrial compound feed and premixtures manufacturers </li></ul><ul><li>28 Members: </li></ul><ul><ul><li>21 Member Associations from 20 EU Member States </li></ul></ul><ul><ul><li>4 Observer members (Turkey, Croatia, Serbia, Russia) </li></ul></ul><ul><ul><li>3 Associate Members (Switzerland, Norway, EMFEMA) </li></ul></ul><ul><li>150 mio. T of compound feed /year </li></ul><ul><li>Total EU turnover estimated between 45 and 50 Bio € </li></ul><ul><li>6 Technical committees to assist the FEFAC Council </li></ul><ul><ul><li>Animal Nutrition </li></ul></ul><ul><ul><li>Industrial Compound Feed Production </li></ul></ul><ul><ul><li>Premix & Mineral Feed </li></ul></ul><ul><ul><li>European Feed Manufacturers Guide (EFMC) </li></ul></ul><ul><ul><li>Fish Feed </li></ul></ul><ul><ul><li>Milk Replacers </li></ul></ul>FEFAC in a nutshell 29 June 2011 COPA-COGECA
  3. 3. I ndustrial compound feed production per country 150 mio. t in 2010 in the EU-27 Source: FEFAC 29 June 2011 COPA-COGECA
  4. 4. Industrial compound feed production in the EU-27 in 2010 150 mio. t (per category) Source: FEFAC 29 June 2011 COPA-COGECA
  5. 5. Feed material consumption by the EU-27 feed industry in 2010 Source: FEFAC 29 June 2011 COPA-COGECA
  6. 6. Improvements in modern animal production <ul><li>From 1975 to 2010, animal output increased significantly </li></ul><ul><li>Milk production per cow >65% </li></ul><ul><li>Piglets raised per sow per year >65% </li></ul><ul><li>Egg production per hen >45% </li></ul><ul><li>Body weight gain broilers >25% </li></ul><ul><li>And animal production became more efficient and sustainable </li></ul><ul><li>Pig Feed Conversion Ratio improvement >20% </li></ul><ul><li>Reduction of P, N and ammonia emissions per ha ≈50% </li></ul><ul><li>Reduction of Fish meal & Fish oil in fish feed >40% </li></ul>29 June 2011 COPA-COGECA
  7. 7. 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
  8. 8. Evolution of the Feed Conversion Ratio for poultry in Denmark from 2002 to 2011 29 June 2011 COPA-COGECA
  9. 9. The challenges ahead: Meeting increasing demand for animal products <ul><li>World population increasing </li></ul><ul><li>Living standards improving </li></ul><ul><li>Demand for food increasing every year </li></ul><ul><li>Competition for land with non-food use and urban development </li></ul><ul><li>Only solution is to improve resource efficiency </li></ul>29 June 2011 COPA-COGECA
  10. 10. The challenges for the CAP towards 2020 <ul><li>The EU agriculture must </li></ul><ul><ul><li>Produce more (to meet the increasing world demand) </li></ul></ul><ul><ul><li>Be more resource efficient ( stopping discrimination regarding public support between modern / intensive and traditional / extensive / organic) </li></ul></ul><ul><ul><li>Secure the supply of the EU feed & food chains </li></ul></ul><ul><ul><li>Be developed everywhere in Europe </li></ul></ul><ul><ul><li>Be competitive and economically viable for farmers and related sectors </li></ul></ul><ul><ul><li>Generate safe, diverse, affordable products </li></ul></ul><ul><li>The EU must produce more, better, everywhere and at an affordable price </li></ul>29 June 2011 COPA-COGECA
  11. 11. The factors affecting the production costs of EU compound feed <ul><li>Feed materials prices (up to 85% of the compound feed costs) </li></ul><ul><li>Availability of feed materials (sufficient volumes, regularity of supply, etc) </li></ul><ul><li>Legal restrictions to Feed materials (asynchronous authorisations GMOs, PAPs, etc.) </li></ul><ul><li>Feed safety legislation (HACCP, monitoring of contaminants, etc.) </li></ul><ul><li>Environmental constraints (restrictions on N or P emissions, Carbon Footprint) </li></ul><ul><li>Multiplication of « cahiers des charges » </li></ul>29 June 2011 29 June 2011 COPA-COGECA
  12. 12. The key challenges of feed material supply for the EU feed industry <ul><li>Elimination of 0-tolerance for Low Level Presence of non-EU approved GMOs in imported feed materials </li></ul><ul><li>Re-authorisation of PAPs </li></ul><ul><li>Buying feed materials from sustainable sources </li></ul><ul><li>Managing volatility </li></ul>29 June 2011 COPA-COGECA
  13. 13. Asynchronous GM approvals <ul><li>EU Commisison proposal for « Technical Solution » </li></ul><ul><ul><li>MRPL of 0.1% & analytical uncertainty </li></ul></ul><ul><ul><li>For events for which a dossier for authorisation has been tabled (at least 3 months) and a method of analysis is validated by EURL </li></ul></ul><ul><ul><li>Also covers no longer authorised GM events, </li></ul></ul><ul><ul><li>« feed » scope only, </li></ul></ul><ul><ul><li>EP Scrutiny until 15 June – entry into force early July 2011 </li></ul></ul><ul><ul><li>Possible future review taking into account impact on feed and food chains </li></ul></ul><ul><li>FEFAC position on draft « Technical Solution » </li></ul><ul><ul><li>FEFAC supports « feed » only proposal as a first step in the right direction </li></ul></ul><ul><ul><li>FEFAC supports FFC position in favour of food and feed scope for the future </li></ul></ul>29 June 2011 COPA-COGECA
  14. 14. Feed ban: FEFAC views <ul><li>Supports lifting of the feed ban but not at any price: </li></ul><ul><ul><li>Need for good communication </li></ul></ul><ul><ul><li>Need for proportionate measure </li></ul></ul><ul><ul><ul><li>Single species goes too far (what is an animal species?) </li></ul></ul></ul><ul><ul><ul><li>Should be possible also for mills producing non-ruminant feed </li></ul></ul></ul><ul><ul><ul><li>Need for tolerances </li></ul></ul></ul><ul><ul><li>Need for level playing field (vs. home mixers, 3rd countries) </li></ul></ul><ul><li>Who may use the 1.0 mio. T of pig&poultry meal? </li></ul><ul><ul><li>EU Petfood: 200,000 t? </li></ul></ul><ul><ul><li>EU Fish feed: 250,000 t? </li></ul></ul><ul><ul><li>EU industrial pig&poultry feed: 200,000 t? </li></ul></ul><ul><ul><li>EU Home mixers: 50,000 t? </li></ul></ul><ul><ul><li>Export: 300,000 t? </li></ul></ul>29 June 2011 COPA-COGECA
  15. 15. Sustainability: The FEFAC Credo (1) <ul><li>FEFAC believes that products of animal origin form an integral part of the European diet providing key nutritional benefits to the European population. </li></ul><ul><li>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. </li></ul><ul><li>The EU compound feed industry is willing to responsibly contribute to the sustainable development of livestock and aquaculture production systems. </li></ul>29 June 2011 COPA-COGECA
  16. 16. <ul><li>FEFAC believes that the key drivers for such improvements are: </li></ul><ul><ul><li>Promotion of ecologically intensive production systems for farm animals and fish, oriented towards maximisation of resources efficiency and minimisation of GHG emissions; </li></ul></ul><ul><ul><li>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 );   </li></ul></ul><ul><ul><li>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; </li></ul></ul><ul><ul><li>Further optimisation of use of co-products from the food industry, biomass and non-organic raw materials to alleviate the pressure on natural resources. </li></ul></ul>Sustainability: The FEFAC Credo (2) 29 June 2011 COPA-COGECA
  17. 17. Illustration: Round Table on Responsible Soy (RTRS) <ul><li>Goal and Mission: to build up a global and participatory process that promotes economically viable, socially equitable and environmentally sustainable production of soy </li></ul><ul><li>Objectives: </li></ul><ul><ul><li>Develop common view on issues </li></ul></ul><ul><ul><li>Develop sustainability criteria </li></ul></ul><ul><ul><ul><li>Practically applicable </li></ul></ul></ul><ul><ul><ul><li>Verifiable </li></ul></ul></ul><ul><ul><li>Develop control system at production level </li></ul></ul><ul><ul><li>Organise chain of custody </li></ul></ul><ul><ul><li> </li></ul></ul>29 June 2011 COPA-COGECA
  18. 18. Controlling extreme volatility <ul><li>Review of MiFID </li></ul><ul><ul><li>Key target: convergence between futures and cash markets </li></ul></ul><ul><ul><li>Transparency: Weekly public information on positions taken by categories of operators </li></ul></ul><ul><ul><li>No need at this stage to set up position limits by categories of operators </li></ul></ul><ul><ul><li>Farm Ministers G20 </li></ul></ul><ul><ul><li>More transparency on global agriculture data </li></ul></ul><ul><ul><li>Index based price formation: which model: France, Belgium other? </li></ul></ul>29 June 2011 COPA-COGECA
  19. 19. Thank you for your attention 29 June 2011 COPA-COGECA Workshop