Future of protein sourcing for feed use: promises and challenges for the EU feed industry Arnaud Bouxin Deputy Secretary General of FEFAC
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1 Future of protein sourcing for feed use: promises and challenges for the EU feed industry Arnaud Bouxin Deputy Secretary General of FEFAC EURL-AP 10 th anniversary 22 September 2016
2 FEFAC in a nutshell Created in 1959 Represents industrial compound feed and premixtures manufacturers Federation of national Member Associations 33 Members: 24 Member Associations from 23 EU Member States 2 Observer Members (Serbia, Russia) 7 Associate Members (Turkey, Switzerland, Norway (3), EMFEMA, EFFPA) 158 mio. t of industrial compound feed in EU-28 in Technical Committees to assist the FEFAC Council 22 September 2016 EURL-AP 10th Anniversary 2
3 The Agricultural business: unprecedented growth potential
4 Development of compound feed production (*1,000 t) EU-28 Global Increase in feed production ( ): EU feed production 5% Global feed production 35% Prospect 1500 million tonnes in September 2016 EURL-AP 10th Anniversary 4
5 Energy-rich vs. Protein rich ingredients Basis of compound feed is energy-rich feed materials Cereals Cereal by-products Tapioca Completed by protein-rich feed materials (>25% protein) Oilseed meals Processed Animal Proteins Pulses 22 September 2016 EURL-AP 10th Anniversary 5
6 Sources of proteins used for animal feeding in EU in 2012/13 Dried forages 3% Pulses 2% Others 6% Fish meals 1% Sunflower + rapeseed meal 29% Soya meal 60% (% of the total protein use, EU-production + imports calculated in protein equivalent) 22 September 2016 EURL-AP 10th Anniversary 6
7 EU-27 protein balance sheet for different feed in 2012/13 Products Sources: Prolea, FEFAC, WUR, For Farmers Self sufficiency (based on protein content) Soya (*) 2% Rapeseed + sunflower (*) 74% Pulses 94% Dried forages 106% Miscellaneous (**) 56% Fishmeal 67% Total protein-rich feed materials 31% Proteins in compound feed 52-56% Proteins in total animal feed consumption 73-76% (*) Seeds and meal, (**) Miscellaneous includes groundnuts, linseed, copra, plam kernel and cotonseed meals and corn gluten feed 22 September 2016 EURL-AP 10th Anniversary 7
8 Evolution of EU protein supply self sufficiency (protein-rich feed materials - %) September 2016 EURL-AP 10th Anniversary 8
9 Dependency of third countries visà-vis EU outlet for soya 40% Evolution of market share of global SBM equivalent imports (source:usda) 35% 30% 25% China EU 20% 15% 10% 22 September 2016 EURL-AP 10th Anniversary 9
10 Sustainability: meat and soya in the spolight 22 September 2016 EURL-AP 10th Anniversary 10
11 Price development of EU feed ingredients Price fishmeal: from tripled Price soybean meal: from doubled Since 2009: increasing contrast between price soybean meal and wheat Source: WUR, Agrimatie.nl, LEI 22 September 2016 EURL-AP 10th Anniversary 11
12 In short Global demand for feed proteins will increase but EU demand will remain stable EU dependency for its protein supply remains stable but dependency of third countries vis-àvis the EU market is decreasing Traditional resources get scarce and challenged for their sustainability What to do? 22 September 2016 EURL-AP 10th Anniversary 12
13 What to do? Improving the sustainability of existing protein sources Responsible soy Sustainable fisheries 22 September 2016 EURL-AP 10th Anniversary 13
14 A jungle of responsible soy standards 22 September 2016 EURL-AP 10th Anniversary 14
15 FEFAC soy sourcing guidelines 6 principles Legal compliance Responsible working conditions Environmental responsibility Good agricultural practices Respect for legal use of land / land rights Protection of community relations 59 criteria 37 essential criteria: all should be met 22 desired criteria: at least 5 should be met Verification is essential 22 September 2016 EURL-AP 10th Anniversary 15
16 What to do? Improving the sustainability of existing protein sources Responsible soy Sustainable fisheries Improving resource efficiency Use of amino acids Reduction of protein levels in feed Improving feed conversion ratio 22 September 2016 EURL-AP 10th Anniversary 16
17 Resource efficiency - Effective animal nutrition 22 September 2016 EURL-AP 10th Anniversary 17
18 What to do? Improving the sustainability of existing protein sources Responsible soy Sustainable fisheries Improving resource efficiency Use of amino acids Reduction of protein levels in feed Improving feed conversion ratio Looking for substitutes to traditional protein sources «Conventional» «Non conventional» 22 September 2016 EURL-AP 10th Anniversary 18
19 Alternatives to imported soya Conventional Non-conventional Processed Animal Proteins Soya (EU produced) Other oilseed meals Pulses Protein concentrates (soya, potatoe, pea) Alfalfa Fish trimmings Insects Algae Duckweed Jatropha Quinoa Sugar beet leaves Single cells proteins 22 September 2016 EURL-AP 10th Anniversary 19
20 Limits to substitutions Different requirements for different species Species Young animals / fish Level of proteins of protein rich feed ingredients Very high concentrations >60% Ruminants Moderate concentrations Monogastrics adults High concentrations Protein quality Very high digestibility Low digestibility High digestibility Antinutrients Very low levels Low levels Low levels 22 September 2016 EURL-AP 10th Anniversary 20
21 Levels of proteins in different high protein feed materials full fat soy Soybean meal Soybean meal HiPro Fermented soya protein Fishmeal 65 SPC Poultry meal Potatoe protein 22 September 2016 EURL-AP 10th Anniversary 21
22 Limits to substitutions Quality (digestibility, amino-acid profile) Concentration in proteins Price Legislation (processed animal proteins, insects) Public acceptance Environment Foot print 22 September 2016 EURL-AP 10th Anniversary 22
23 What alternatives to soya proteins? FEFAC workshop Piacenza Oct Cultivation, processing and nutritional aspects for pigs and poultry of European protein sources as alternatives for imported soybean products Wageningen University (Van Krimpen et al., 2013) 22 September 2016 EURL-AP 10th Anniversary 23
24 Van Krimpen et al., 2013: Main conclusions (1) European cultivated soybeans seems most promising long-term alternative for South American soybeans Requires crop yield -> 5 ton/ha Peas seems the most promising short-term alternative Plant is very sensitive for pathogens and pests Pea protein concentrate -> application in organic diets Lucerne/grass has high protein yield/ha Nutritional value is low Drying requires energy (Carbon footprint) Protein extraction?
25 Van Krimpen et al., 2013: Main conclusions (2) Leaf proteins probably potential in long-term Cost effective protein extraction technique Determination of nutritional value Aquatic proteins probably interesting in long-term (low land use, protein yield/ha) Determination of nutritional value Energy costs for drying/biorefinery Insects probably an alternative in long-term (low land use, conversion of wastes) Need for reducing costs of production Legislative aspects (catering waste / manure as feedstock?) Social acceptance
26 Van Krimpen et al., 2013: Main conclusions (3) In terms of CFP, potential alternatives are: European soybean meal Processed animal proteins Algae No or low land use for: Aquatic proteins Single cell proteins Insects Meat and bone meal
27 More on the future? Read FEFAC vision ( FEFAC vision on animal feed industry A knowledge driven, reliable partner of a competitive livestock sector Feed safety management Sharing responsibility for feed safety along the chain Animal nutrition A multifunctional science delivering solutions to a sustainable livestock sector Sustainability A responsible and resource-efficient feed industry 22 September 2016 EURL-AP 10th Anniversary 27
28 Happy birthday to the EURL-AP team 22 September 2016 EURL-AP 10th Anniversary 28
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