FEFAC

Outlook poultry sector

Aurelio SebastiaDeputy President of FEFAC

• Created in 1959

• Industrial compound feed and premixtures manufacturers

• 28 Members:– 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– Animal Nutrition– Industrial Compound Feed Production– Premix & Mineral Feed– European Feed Manufacturers Guide (EFMC)– Fish Feed– Milk Replacers

FEFAC in a nutshell

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Industrial compound feed production per country 150 mio. t in 2010 in the EU-27

Source: FEFAC

BE6.4

CZ2.8

DE21.7DK

4.5

ES20.5

FR21.4

HU3.9

IT13.8

IE3.7

NL 13.8

PT3.4

RO3.3

PL7.6

UK 14.6

AT1.4

CY0.3

EE0.2

FI1.4

LT0.4

LV0.3

SE2.0

SI0.5 SK

0.7

BU0.9Others

8.0

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Industrial compound feed production in the EU-27 in 2010150 mio. t (per category)

Source: FEFAC

Cattle26%

Pigs33%

Poultry & eggs34%

Milk replacers1%

Others6%

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Feed material consumption by the EU-27 feed industry in 2010

Source: FEFAC

Feed cereals47%

Tapioca0.5%

Co-products from Food Industry

12%

Oils & Fats2%

Cakes & Meals27%

Pulses1%

Dairy products1%

Dried forage2%

Minerals, Additives & Vitamins

3%

All others 5%

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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%• Reduction of Fish meal & Fish oil in fish feed >40%

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Evolution of the global Feed Conversion Ratio from 1923 to 2001

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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

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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

• Only solution is to improve resource efficiency29 June 2011 9COPA-COGECA

The challenges for the CAP towards 2020

• The EU agriculture must– 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

• The EU must produce more, better, everywhere and at an affordable price

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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)

• Multiplication of « cahiers des charges »

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The key challenges of feed material supply for the EU feed industry

1. Elimination of 0-tolerance for Low Level Presence of non-EU approved GMOs in imported feed materials

2. Re-authorisation of PAPs

3. Buying feed materials from sustainable sources

4. Managing volatility

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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,

- « feed » scope only,

- 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

– FEFAC supports FFC position in favour of food and feed scope for the future

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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 tolerances

– Need for level playing field (vs. home mixers, 3rd countries)

• Who may use the 1.0 mio. T of pig&poultry meal?– EU Petfood: 200,000 t?– EU Fish feed: 250,000 t? – EU industrial pig&poultry feed: 200,000 t?– EU Home mixers: 50,000 t?– Export: 300,000 t?

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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.

• The EU compound feed industry is willing to responsibly contribute to the sustainable development of livestock and aquaculture production systems.

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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;

– Further optimisation of use of co-products from the food industry, biomass and non-organic raw materials to alleviate the

pressure on natural resources.

Sustainability: The FEFAC Credo (2)

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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

• Objectives:– Develop common view on issues– Develop sustainability criteria

• Practically applicable • Verifiable

– Develop control system at production level– Organise chain of custody• http://www.responsiblesoy.org/

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Controlling extreme volatility

• Review of MiFID– 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

• Farm Ministers G20

• More transparency on global agriculture data

• Index based price formation: which model: France, Belgium other?

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FEFAC

Thank you for your attention

www.fefac.eu

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