Overview of the European by-products in 2005
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1 MUNICH The 12 May 2006 Overview of the European by-products in Members representing 19 countries Patrick COELENBIER
2 Overview of the European by-products industry in 2005 Prospects for meat markets Animal by-products & Structure in EU Processed animal by-products in EU Animal proteins and fats outlets in EU Turn over evolution
3 Overview of the European by-products industry in 2005 Prospects for meat markets
4 Prospects for meat markets Beef - pig - poultry - sheep/goat Beef production still lower than consumption in 2005 and expected to remain so throughout the projection period due to : - Declining cattle herd from dairy sector. - Impact of decoupling of direct payments. - Impact of market disruptions of 2001 BSE crisis. Poultry meat demand and production is globally good but will depend a lot in some countries in EU on the evolution of the Avian flue. Pig meat production expected to keep its slight growth thanks to : -Solid demand both in the EU 15 and in the new Members States. -Expected profitability with good pig meat prices and relatively low feed prices. Limited recovery in sheep/goat meat production after 2001 FMD results in high market prices. Source : European Commission 2
5 Prospects for meat markets EU to remain net importer of beef meat over the medium term EU production, consumption, trade and intervention stocks (mio t c.w.e.) 10 9 EU-12 Production EU-15 EU Production, Consumption Ending stocks Exports Consumption Imports Trade, Stocks Source : European Commission 3
6 Prospects for meat markets Growth rates for pig meat production and consumption are expected to be lower than in the 90s 3 0 E U -1 2 EU production, consumption, and (mio t c.w.e.) E U -1 5 E U Production, Consumption P r o d u c tio n C o n s u m p tio n Trade 5 1 E x p o rts Im p o rts Source : European Commission 4
7 Prospects for meat markets EU poultry production to keep its growth over the medium term in line with growing consumption except a possible evolution of the Avian flue EU production, consumption, and (mio t c.w.e.) E U -1 2 E U -1 5 E U Production, Consumption 9 6 P r o d u c tio n E x p o r ts C o n s u m p tio n 3 2 Trade Im p o r ts Source : European Commission 5
8 Prospects for meat markets EU sheep/goat sector not to fully recover from the 2001 Foot and mouth disease EU production, consumption, and (mio t c.w.e.) E U -1 2 E U -1 5 E U C o n s u m p tio n Production, Consumption 1.0 P ro d u c tio n 0.5 Trade 0.5 E x p o rts Im p o rts Source : European Commission 6
9 Prospects for meat markets Total EU meat consumption to resume its long term growth EU per capita consumption (kg/head, in carcass weight equivalent) B e e f a n d V e a l P o rk P o u ltry S h e e p /G o a t T o ta l NB : The consumption of poultry meat does not take in consideration a possible evolution of the avian flue. Source : European Commission 7
10 Overview of the European by-products industry in 2005 Animal by-products & Structure in EU
11 Animal by-products & Structure in EU EU Outside EU Total Production units Employees Evolution of the number of units between 2004 and 2005 (in %) Multi species category 1 and 2 units +12 Multi species category 3 units 126 Category 1/2 units 341 Category 3 units 467 Total +3 Blood category 3 units Main remarks from EFPRA Research of valorisation of more category 3 byproducts all over EU countries. Reduction of frozen products units due to the reduction of the market share of wet pet food products : availability of materials for category 3 activities. Source : European Commission 8
12 Overview of the European by-products industry in 2005 Processed animal by-products in EU
13 Processed animal by-products in EU EU 17 Processed animal by-products in 2005 (X 1000 Tons) Total with associates = Total EU 17 = units 341 units Category 1 et 2 Categorie 3 and Food 9
14 Processed animal by-products in EU EU 14 Evolution since 5 years (X 1000 Tons) Same area than in 2004 Category 1 and ,5% Category 3 and Food Total ,4% ,6%
15 Processed animal by-products in EU EU 14 EFPRA Main remarks 2005 % Category 1 and 2 = -2% 60 Category 3 and Food = -1% Ireland Belgium Spain Germany UK Portugal Finland -30 Finland Austria Germany Ireland Belgium UK NL 11
16 Overview of the European by-products industry in 2005 Animal proteins and fats outlets in EU Energy Pet food Fertilizers Feed Oleochemical and soap Food
17 Animal proteins and fats outlets 2005 EU 17 Category 1, 2, 3 and Food = Tons In % Energy Pet food Fertilizers Feed Soap & oleo 3 2 0,5 0,5 Food Others Storage Landfill 12
18 Animal meals & PAP and animal fats outlets EU 17 Main evolution between 2004 and 2005 Category 1, 2, 3 and Food (x 1000 Tons) % in 2005 Meals & PAP Fats Incineration 52% -3 Energy 29% 19 Feed 28% -4 Pet food 23% 17 Soap & oleo 26% -17 Fertilizers 20% 8 Pet food 8% Total 2005 = Total 2004 = Total 2005 = Total 2004 =
19 EU outlets ENERGY Market share = 43% Biomass incineration Tallow combustion Biodiesel Biogas Biofuels
20 EU outlets : Biomass incineration 80% Co TEP* 80% Co2 avoidance compared to conventional fuel case *Ton Equi Petrol Cimenteries 70% Power plants & waste incineration 30% Storage 01/01/06 = Tons Category 1 & 2 78% Category 3 22% Tons EC 1774/2002 & EC 2067/
21 EU outlets : Tallow combustion 80% Co TEP* 80% Co2 avoidance compared to conventional fuel case *Ton Equi Petrol Combustion in Steam raising boilers 62% Cimenteries Power plants 38% Category 1 & 2 94% C3 6% Tons EC 1774/2002 & EC 2067/
22 EU outlets : Biofuels Production in the EU since 1993 Main remarks from EFPRA Biodiesel from rapeseed predominates mainly in Germany, France and Italy (1,6 Million Tons) Ethanol mainly produced from wheat and to a lesser extent from sugar beet in France, Spain and Sweden with a total of nearly tons in 2004 Source : Eurobserv er
23 EU outlets : Biofuels Targets for 2005 (18 Member states reporting ; rounded to 1%) Source : Eurobserv er
24 EU outlets : Biodiesel From animal origin and frying oil 80% Co TEP* Taxe free in 2 countries Germany - Netherlands 80% Co2 avoidance compared to conventional fuel case *Ton Equi Petrol *A-F-G-SP SW-UK-Nl Use as such as fuel only in 7 countries* Use mixed only with mineral diesel in 1 country : FR Category 1 & 2 87% Cat 3 13% Tons From frying oil and animal origin 79% 21% EC 1774/2002 & EC 2067/
25 EU outlets : Biogas Possible competitor of our industry for the processing of animal by-products No global volume estimated in EU Biogas plants identified in EU mainly in Germany EC 1774/2002 EC 810/2003 EC 92/2005 EC 208/2006 EC 209/
26 EU outlets PET FOOD Market share = 17%
27 EU outlets : Pet food EU 17 PAP and meals between 2004 and 2005 (x 1000 Tons) % -9% PAP & meals Main remarks from EFPRA % Good growth of PAP in pet food in 2005 : % compared to % +3% +217% New balance between different PAP. 0 Multi species PAP Poultry PAP Pig PAP Feather meal Greaves meal Blood meal +550% Plasma powder Total 2005 = 866 Total 2004 =
28 EU outlets : Pet food EU 17 Animal fats between 2004 and 2005 (x 1000 Tons) 80 Animal fats 70 +3% Main remarks from EFPRA Poultry fats +25% +147% -70% +63% Pig fats Lard Tallow Multi species animal fats Bones fats Stability of animal fats in pet food. New balance between different animal fats increase of pig fats. Total 2005 = 188 Total 2004 =
29 EU outlets FERTILIZERS Market share = 12%
30 EU outlets : Fertilizers EU 17 Animal proteins (PAP) between 2004 and 2005 (x 1000 Tons) % Animal proteins (PAP) Main remarks from EFPRA Increasing of the fertilizers outlet in 2005 : +5% compared to 2004 particularly with : - multispecies PAP : +10% - poultry meal : +200% % +200% New regulation EC 181/2006 allowing the use of any PAP (even ruminants) on pasture land through specific conditions. 0 Multi species PAP -39% -85% Feather meal Poultry meal Pig meal Others Total 2005 = 736 Total 2004 =
31 EU outlets : Composting (Estimation) New regulation in 2006 to satisfy sanitary safety without any environmental requirements Competitor of our industry for the collection of raw material in slaughterhouses Tons of estimated animal by-products composted in EU 2005 but no market study in many countries EC 1774/2002 EC 209/2006 EC 809/
32 EU outlets FEED Market share = 12%
33 EU outlets : Feed Study of markers and species identification before lifting the feed ban PAP Animal fats mainly in : - milk replacers - pig and poultry feed Proteins : - feather meal - plasma - blood products Animal fats 96% 4% Proteins Tons Animal proteins and fats in feed EC 1774/2002 & EC 999/
34 EU outlets : Feed EU 17 Animal fats between 2004 and 2005 (x 1000 Tons) % Animal fats Main remarks from EFPRA % Feed remains an important outlet for animal fats % -14% % Total 2005 = Multi species animal fats Lard Poultry fat Pig fat Tallow Total 2004 =
35 EU outlets OLEOCHEMICAL & SOAP Market share = 10%
36 EU outlets : Oleochemical and soap Mainly from multi species animal fats and tallow 78% Oleo chemical Soap Mainly from tallow and multi species animal fats 65% Oleochemical 85% 15% Soap Category 3 96% Tons 4% Category 2 EC 1774/
37 EU outlets : Oleochemical and soap EU 17 Animal fats between 2004 and 2005 (x 1000 Tons) Animal fats Main remarks from EFPRA % Multi species animal fats -15% +68% OLEO CHEMICAL +12% -20% -9% Tallow Lard Pig fat Poultry fat Bone fat Decreasing of oleochemical and soap of 17% in 2005 mainly due : - multi species animal fats - tallow Total 2005 = 547 Total 2004 =
38 EU outlets FOOD Market share = 3%
39 EU outlets : Food Animal fats Lard 62% Tallow 38% Animal fats 79% 21% Gelatine and blood products Tons EC 92/5 28
40 Overview of the European by-products industry in 2005 Turn over evolution
41 Estimated turn over evolution In million Euros EU 14 EU 17 + Associates Category 1/2 Category 3 and food Total 0 Category 1/2 Category 3 and food Total NB : UE 16 in
42 Conclusion The future of our industry will depend on our capacity to answer to the new market demand.
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