Challenges in Global Raw Material Supply New Raw Materials

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1 Challenges in Global Raw Material Supply New Raw Materials Paul Featherstone EFFPA President Nevedi / Het Comité 'Challenges in global raw material supply' 12 May 2016

2 My Sincere Thanks What is EFFPA?

3 EFFPA - General Info Founded in January 2014 Close ties to FEFAC (European Feed Manufacturers Association) EFFPA associate member to FEFAC FEFAC hosts EFFPA secretariat Sector estimate: 3½ million tonnes former foodstuffs processed into feed in the EU Potential of 5-6 million tonnes taking into account future innovation and expansion

4 EFFPA Members & Estimated Tonnage National Associations Companies VIDO (NL) VALORIA (FR) UK-FFPA (UK) BFAN (DE) TROTEC (BE) DALMA (IT) PROMIC (ES) NUEVO (GR - Observer) SPB Solutions (CA Associate) Estimated tonnage in respective country

5 EU Compound Feed Production 2015: 156 million tonnes Feed cereals 48% All others 4.5% Minerals, Additives & Vitamins 3% Dried forage 1.5% Dairy products 1% Pulses 1% Cakes & Meals 27.5% Oils & Fats 2% Co-products from Food & Bioethanol Industries 11.5% Source: FEFAC

6 What are former foodstuffs?

7 Catalogue of Feed Materials (REG 68/2013) Former foodstuffs means foodstuffs, other than catering reflux, which were manufactured for human consumption in full compliance with the EU food law but which are no longer intended for human consumption for practical or logistical reasons or due to problems of manufacturing or packaging defects or other defects and which do not present any health risks when used as feed.

8 Characteristics Former Foodstuffs Unintentional/unavoidable food losses Intermediate or incorrectly packed/shaped/flavoured/labelled products Seasonal products (sports events, Easter, Christmas, Halloween) Removed from the human consumption market for commercial reasons Not waste high value feed ingredient All about high energy content (sugar, fats/oils, starch) Bread, biscuits, chocolate bars, cakes, pasta, confectionary, cereals, crisps, crackers, snacks...

9 Former foodstuffs: Food industry by-products

10 What aren t former foodstuffs? Animal By-Products (EU Regulation 1069/2009): Former foodstuffs with animal protein are not allowed in feed for food-producing animals, with the exception of milk, eggs, honey and porcine gelatine

11 Where do we source? What is the future?

12 Production Process

13 The Finished Product: A Feed Ingredient Safety & Traceability! General Food Law; REG 178/2002 Lawful! Feed Marketing; REG 767/2009 Hygiene! Feed Hygiene; REG 183/2005 Controls! Official Controls; REG 882/2004

14 Former Foodstuffs as a New Raw Material

15 Nutritional Value Processed Former Foodstuffs Processed former foodstuffs Barley Wheat Dry matter 88.0% 88.0% 88.0% Crude protein 10.9% 11.0% 12.4% Lysine 0.26% 0.38% 0.34% Crude fat 9.8% 2.8% 2.1% Crude fibre 2.2% 5.5% 2.7% Starch 41.9% 51.6% 59.2% Sugar 14.0% 2.2% 2.4% Metabolisable energy pig (ME) MJ/kg MJ/kg MJ/kg Source: NRG, VDLUFA, INRA

16 Nutritional Value Processed Former Foodstuffs Processed former foodstuffs Barley Wheat Metabolisable energy pig (ME) MJ/kg MJ/kg MJ/kg Product Equivalent: 3.5m tonnes 4.19m tonnes 3.75m tonnes 6.0m tonnes 7.17m tonnes 6.44m tonnes Not so insignificant?? Source: NRG, VDLUFA, INRA

17 Price developments Prices of processed former foodstuffs to feed industry linked to prices of grains (wheat, maize) Local Impacts: Influenced by harvests Storage availability Weather markets Worldwide Impacts US cropping patterns & yields Russian cropping patterns & yields Australian cereal yields Weather markets in any of the above

18 Sustainability aspect former foodstuffs

19 Source: WRAP

20 In the heart of the Food Chain Circular Economy Former foodstuff processors provide food manufacturers with a consistent & sustainable outlet for their losses (reducing their food waste and increasing revenues) feed producers with an alternative energy-rich ingredient to grains (reducing the need for landrequiring raw materials) Limits to former foodstuff processing: Environmental gains should never be made at the cost of feed safety and traceability

21 Legal constraints

22 How to increase former foodstuff use Clarify non-waste legal status former foodstuffs destined to feed Commission proposal in Circular Economy Package to exclude feed materials from scope Waste Framework Directive Harmonised Application of Legislation Cross Border Challenges within the EU Poor understanding of the status of Former Foodstuffs Tackle subsidised competition from bioenergy producers Revised Renewable Energy Directive agreed in September 2015 Create legal certainty & guidelines to build more trust in former foodstuff processing sector

23 Pause for Thought

24 Thank you for your attention Keeping food losses in the food chain