Livestock Feed of European Origin June 2017

Transcription

1 Livestock Feed of European Origin June 2017 CSR-F EN_Eisen_veevoer_EU_herkomst.indd :08

2 Livestock Feed of European Origin The origin of raw materials for livestock feed is the subject of debate. Debates concerning the growing soy production, the circular economy and protein self-sufficiency in Europe. For Agrifirm, this is a good reason to actively involve itself in this theme. Producing in the Best Possible Place Agrifirm believes that raw materials should be produced where this can be done most efficiently from a geological and climatological point of view. The raw materials for livestock feed originate in a large international network of product streams. This market has grown over recent decades. Raw materials originate in various regions throughout the world; cereals from Europe, Ukraine, Belarus and Australia, and proteinrich raw materials from South America, North America and Asia. Agrifirm believes that raw materials should be produced where this can be done most efficiently from a geological and climatological point of view. Global Market Dynamics Global markets have emerged for various reasons. A key driver is the difference in harvest times in the northern and southern hemispheres. Storing raw materials is expensive. This is why there is a global trade in which raw materials originating from the two hemispheres are used to supplement each other. The trade is also motivated by climatological differences. For example, soy is a tropical/subtropical crop. Of course it can also be grown at different latitudes, but generally this is less efficient. Conversely, crops that grow well at other latitudes do not grow as well in tropical/sub-tropical regions. Trade is also important for matching regional overproduction with regional underproduction. As well as for the purpose of eliminating the complexity of the difference in food safety requirements between Europe and North America, for example. To put it succinctly, the global trade is important for matching supply and demand, and to set a fair price on this basis. Naturally, there are concerns about the impact of the global trade in raw materials. Agrifirm Implements Sustainable Procurement Agrifirm realises that making the production of raw materials increasingly sustainable is important and wants to contribute to this in a structured way. Agrifirm is actively involved in the development of sustainable soy and in the research into possible alternatives. Agrifirm believes that the most effective way to exert influence on helping to achieve change is to be involved in a specific supply chain. Agrifirm consequently is a proponent of the global implementation of 'Sustainable Procurement'. Regional Raw Materials Market demand for regional raw materials is growing and needs professional support. Agrifirm is familiar with the debates concerning the regional supply of raw materials. 2 Code: Livestock Feed of European Origin CSR-F EN_Eisen_veevoer_EU_herkomst.indd :08

3 The company is regularly asked to think about participation in regional supply chains, or to study the impact of regional supply chains or initiatives. It is striking that the debate quickly zeroes in on the availability of European soy. In Agrifirm's view the inquiry into the availability of European soy is only a small part of the issue. European soy is available. The challenge does not lie in its availability. The challenge lies in the fact that European soy is significantly more expensive than world market soy. Given the way in which livestock feeds are currently composed, this automatically means that other sources of protein are used. For example, for dairy feeds the more expensive soy meal means that palm kernel expellers are more likely to be used. And the discussion then shifts to the next raw material. Generally speaking, the initiators consider this an undesirable development. This simple example illustrates that the demand for regional raw materials needs proper guidance. Because improper implementation will lead to uncontrollable processes, the unavailability of raw materials, and unwanted and unnecessary cost price increases. Agrifirm wants to generate measurable, relevant and sustainable value for the farmer and the farm. With the 'Livestock Feed of European Origin' Code, Agrifirm wants to contribute to the development of new supply chains, as they emerge. This is a first step. Different lists of requirements may also be developed. Agrifirm is prepared to assist in the thinking process, but believes that working with a well-thought-out cohesive list of requirements is essential. The undesirable effects in different situations can be major. 3 CSR-F EN_Eisen_veevoer_EU_herkomst.indd :08

4 Regional Livestock Feed Requirements Prim ary Raw Mater The origin of raw materials for livestock feed is the subject of debate. For Agrifirm, this is a good reason to actively involve itself in this theme. With the 'Livestock Feed of Demonstrability The origin of the supplied raw materials and the additional requirements for each raw material are demonstrated by the animal feed producer in cooperation with suppliers using an additional GMP+ module. Validity is ensured through means of GMP+ auditing. Non-GM Due to the selected implementation of the requirements, it is impossible to avoid GM (genetically modified) feed traces in the livestock feed of European origin. The primary raw materials produced in Europe are predominantly non-gm, however mixing regularly occurs in actual practice. For example, in case of cereal co-products. nts a e n o mp o -c o cr to the development of new supply chains. nd Premixes European Origin 1.0' Code, Agrifirm makes a contribution M i Scope The raw material requirements only apply to livestock feed administered during the animal's productive phase. In other words, the requirements do not apply to animal feed destined for young livestock. 4 Primary Raw Materials Processed Raw Materials Soy Products Primary raw materials are agricultural products that have not been subjected to industrial processes as a result of which a large part of the original raw material has a different destination than animal feed. Key raw materials are corn, wheat, barley, oats, lupines, linseed, rye, triticale and rapeseed. Many raw materials are subjected to industrial processes. This results in a main product and co-products. The co-products in particular end up in livestock feed. Key processed raw materials include beet pulp, vinasse and DDGS (dried distiller grains solubles). Soy products are protein-rich raw materials that result from processing soy beans. Key soy products are soy meal, oil, husks and beans. The use of raw materials such as citrus pulp, cane sugar molasses and palm oil is excluded. Code: Livestock Feed of European Origin CSR-F EN_Eisen_veevoer_EU_herkomst.indd :08

5 Raw Materia ls h m oy Legend A segregated raw materials stream means that the agricultural raw materials destined for the animal feed producer are separated segregated from the complete raw materials stream. These raw materials are harvested, stored and transported segregated and are fully traceable in the supply chain starting from the farm. A mass balance raw materials stream means that the agricultural raw materials destined for the animal feed producer are combined with the complete raw materials stream. The share of agricultural raw materials destined for the animal feed producer in the entire raw materials stream are fully traceable in the supply chain starting from the farm. Suppliers must demonstrate that a purchased quantity is equivalent equal to a quantity of original raw materials of European origin supplied to the supplier's production sites. Suppliers must demonstrate that the primary raw materials fully originate in Europe. Europe here is defined as continental Europe, including the large islands, such as the United Kingdom, but excluding peninsulas and small islands, such as Tenerife. Suppliers must demonstrate that the processed raw materials fully originate in Europe. 80% Suppliers must demonstrate that more than 80% of the raw materials from the production sites from which the animal feed producer acquires raw materials comes from Europe. These raw materials are not subject to any additional requirements. s ct u d ro p Co Sunflower kernel and rapeseed Meal Cereal co-products Microcomponents Sunflower kernel and rapeseed products result from processing sunflower kernels and rapeseed. The key products are sunflower kernel, rapeseed meal and oil products. Cereal co-products result from the industrial processing of grain. The key co-products are wheat gluten and feed, corn meal and feed, cookies and bread. Premixes are raw material mixes composed of the abovereferenced raw materials. Together with vitamins and minerals (micro-components) these mixes are added to livestock feed. 80% 5 CSR-F EN_Eisen_veevoer_EU_herkomst.indd :08

6 Livestock Feed of European Origin Version 1.0 Demonstrability Demonstrability of the origin of supplied raw materials, as well as additional requirements via an additional GMP+ module. The method of demonstrating that raw materials comply with the requirements is left up to the feed company, in cooperation with its suppliers. Confirming validity takes place through means of GMP+ auditing. Non-GM Due to the selected implementation, it is impossible to avoid GM traces (for example in cereal co-products). The primary raw materials produced in Europe are predominantly non-gm, however mixing regularly occurs in actual practice. Definitions Europe is defined as continental Europe, including the large islands, such as the United Kingdom and Iceland for example, but excluding peninsulas and small islands, such as Tenerife and Cyprus, for example. The following countries are covered by this definition: Albania, Andorra, Belgium, Bosnia and Herzegovina, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Finland, France, Greece, United Kingdom, Hungary, Ireland, Iceland, Italy, Kazakhstan (European part), Kosovo, Croatia, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Macedonia, Montenegro, Netherlands, Norway, Moldavia, Monaco, Ukraine, Austria, Poland, Portugal, Romania, Russia (European part) San Marina, Serbia, Slovenia, Slovakia, Spain, Turkey (European part), Vatican City, Belarus and Switzerland. Primary raw materials are raw materials that have not been subjected to industrial processing (other than cleaning, drying, etc.), as a result of which a significant portion of the original raw material has been given a destination other than animal feed. Micro-components are raw materials that are used in low concentrations in animal feeds, such as enzymes, vitamins, etc. The total concentration of micro-components may not exceed 5%. Co-products are raw materials that were subjected to industrial processing and whereby the residual products are destined for animal feed applications. Premixes are raw materials that may be composed of all of the above-referenced raw materials and that can be used as an ingredient in compound feed. Raw Materials Requirements All primary raw materials originate segregated in Europe. The following rules apply to co-products: Processed raw materials for which the main product has a local main destination or that are produced for the world market may not be used (such as citrus pulp, palm kernel expeller, palm oil, etc.). Soy meal and products (including oil) come segregated from Europe. Sunflower kernel and rapeseed meal and oil can be used without any further restrictions, as long as the supplier demonstrates that, measured on an annual basis, more than 80% of the raw materials from the production sites from which the feed company acquires its raw materials comes from within Europe. Cereal co-products may be acquired from production sites in Europe, whereby the supplier, on the basis of a closed system, must demonstrate that, measured on an annual basis, an equivalent quantity of the original primary raw material is supplied from Europe to the production site from which the feed company acquires its raw materials (Mass Balance). Micro-components and premixes are not subject to any additional requirements. Scope The raw material requirements only apply to compound feed administered during the animal's productive phase (in other words not to young livestock). 6 Code: Livestock Feed of European Origin CSR-F EN_Eisen_veevoer_EU_herkomst.indd :08

7 Background to the Code 'Livestock feed of European Origin' Definition of Europe Agrifirm defines Europe as continental Europe. > > There is no rational foundation for other definitions. A 500 km zone is an arbitrary choice. Defining Europe as 'Political Europe' is linked to the spirit of the times. Political Europe could very well look (very) different in a number of years. > > A considerable availability of raw materials is key to large-scale transitions. The Ukraine and Belarus are Europe's granary and furthermore also produce protein-rich crops. That means that they must not be positioned outside Europe. Europe is defined as continental Europe, including the large islands, such as the United Kingdom and Iceland for example, but excluding peninsulas and small islands, such as Tenerife and Cyprus, for example. The following countries are covered by this definition: Albania, Andorra, Belgium, Bosnia and Herzegovina, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Finland, France, Greece, United Kingdom, Hungary, Ireland, Iceland, Italy, Kazakhstan (European part), Kosovo, Croatia, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Macedonia, Montenegro, Netherlands, Norway, Moldavia, Monaco, Ukraine, Austria, Poland, Portugal, Romania, Russia (European part) San Marina, Serbia, Slovenia, Slovakia, Spain, Turkey (European part), Vatican City, Belarus and Switzerland. Primary Raw Materials It must of course be possible to demonstrate that these raw materials originate in Europe. Co-products More than 80% of dairy cattle feed consists of co-products. This concerns by-products from industrial processes, such as starch, beer, oil or bio-ethanol production. There are many co-products (such as rapeseed meal, brewers spent grain, palm kernel meal) that is imported into Europe. Often because it is a source of protein, or because it contains a great deal of fibre. In this approach it was decided not to allow those co-products, whose primary product is produced for a market outside Europe, to be imported into Europe. By this we mean processes, such as beer production in Russia, oil production in Asia (although this oil is partially imported into Europe). Soy and soy products must originate in Europe. Sunflower kernel and rapeseed meal are sufficiently available in Europe to be able to serve a considerable number of large-scale supply chains. Sunflower kernel and rapeseed crushers often supplement these quantities with sunflower kernel and rapeseed produced outside Europe. This is why a Massa Balance approach was selected in this case, whereby at least 80% of the original product must demonstrably come from Europe. The situation concerning cereal co-products, such as wheat yeast concentrate, is complex. In this case, the main product requirements (for example, starch production) is leading for the producer. It is known that these producers consciously mix cereals from different origins to ensure they have a stable production process and to enable them to supply consistent quality. This is why a Mass Balance approach is used in this case. Other Products In addition to the more important raw materials, animal feed includes many other products. This includes high-quality additives, such as health-promoting fatty acids, vitamins and minerals. The consumption limit of these products often is a maximum of 5% of the total ration. This involves hundreds of different and high-quality products. Restraining the origin of these products has an enormous impact on their availability and on animal health and efficiency. This is why it was decided not to constrain these products. 7 CSR-F EN_Eisen_veevoer_EU_herkomst.indd :08

8 CSR-F EN Agrifirm Group BV T +31 (0) PO Box HA Apeldoorn, The Netherlands CSR-F EN_Eisen_veevoer_EU_herkomst.indd :08