12% of EU maize6% of EU wheat2,35 million hectares of arable land.
Information exchange on the adoption process of the CAP2020 proposals Exchange of views on the conditions to apply to the end of the regimes on both sugar and potato starch. Visit of a nearby starch bio-refinery (e.g. Belgium or Northern France) with colleagues of DG Enterprise before end of March.
2012 06-27, aaf presentation roquette
THE EUROPEAN STARCH INDUSTRY ASSOCIATION - AAF AND ITS EU PUBLIC AFFAIRS PRIORITIES Jamie Fortescue – Managing Director 27 June 2012
Key figures* Processing 22 million tons of raw materials (i.e. 15 million tons of cereals and 7 million tons of starch potatoes) 9,9 million tons of starch products 24 companies - 69 plants €7,7 billion total annual turnover 14 400 direct jobs €860 million investment in Europe, * 2010 data except last line with R&D of €104 million 2008-2010
Members’ location AAF MEMBERS HAVEPRODUCTION FACILITIES IN 21 OUT OF 27 EUROPEAN UNION MEMBER STATESLegend: Producing Member States Non-starch producer Non-EU member
AAF’s membership Full Members - Agrana Stärke (*) - Skrobany Pelhrimov24 COMPANIES - AKV Landholt - Südstärke - Altia Corporation - Sveriges Stärkelseproucenter - Amilina Förening-Lyckeby Stärkelsen - Avebe Group - Tereos Syral (*) - Beneo Remy - Tate & Lyle - Cargill - Wielkopolskie Przedsiebiorstwo - Chamtor Przemyslu Ziemniaczanego (WPPZ) - Copam Associate Members: - Crespel & Deiters - Emsland Stärke - British Starch Industry Association - Finnamyl - Czech Starch AssociationLegend: - Hermann Kröner - Fachverband der Stärke Industrie- 12 companies - Hungrana - Finnish Starch Manufacturersproducing cereal based - Jäckering Associationstarch products- 9 companies producing - Kartoffelmelcentralen - Humaiz (Spain)potato starch - National Starch & Chemical - USIPA (France)- (*) 3 companiesproduce both cereals and - Roquette Frères (*) - VNFG (The Netherlands)potato starches
Starch production in the EU – 2010 Processed raw Starch products in starch materials equivalent31,7% 34,3% 14,2% 38,3% Potatoes Wheat Potatoes Wheat Maize Maize 34% 47,5% Total : 22 Mio tons Total : 9,9 Mio tons
Applications of starch and starch derivatives (EU market segments - 2010) Pharma. and chemicals Other non-food Confectionary and drinks 6% 4% 31% 29% Corrugating and paper making 1% 29% Feed* Processed food Total Market : 9 mio tons in 2010* Excluding co-products amounting to about 5 million tonnes
AAF public affairs priorities• Opportunities – End of EU sugar regime – Bio-economy – HLF on food supply chain• Threats – EU food/feed/environment law compliance costs – International competition – Potato starch
Opportunity -EU sugar quotas• Isoglucose – 5% of sugar quota equating to 690,000 tonnes• Full support to proposal to end quota in 2015• Potential of 2-3 million tonnes in EU quota free market• But no investment without certainty on timeline
Opportunity - Bio-economy• Established sector in replacing fossil-fuel components with renewable agricultural raw materials• Strong supporter of ‘Europe 2020’, ‘lead market initiative’, ‘Commission Communication on bio- economy’• Active support and participation in CEN work• EU has R&D knowledge base and other good foundations• Need to turn political support into concrete action or miss out, e.g CAP 2020
Opportunity - HLF• Supporter of the dialogue and the HLF recommendations• Not member but through PFP registered stakeholder in B2B and competitiveness groups• Keen interest in what concrete next steps are expected
Threat – international competition• ASEAN – Thailand – 2 million tonnes of tapioca starch p.a; government subsidised and particular threat to potato starch and bio-economy• Mercosur – Brazil – 1.8 million tonnes of starch p.a (cereals and tapioca); sugar cane in polyols; 100 million Euro investments planned• India – 5th largest grower of tapioca, overproduction of polyols, subsidised starch industry• China – Anti dumping/subsidy case – EU potat starch• EU/US HLG – massive economies of scale for US corn starch• Rules of origin• Customs duties needed to preserve EU competiveness
Threat – potato starch• End to EU support in July 2012• Likely 40% decline in market• Industry accepts end to EU support (as should sugar industry in sugar market !)• Any future recoupled Member State support must not distort fair competition in the EU