President EU Flour Millers

Transcription

1 President EU Flour Millers Gary Sharkey THE TFIF CONGRESS MARCH 2014 IN ANTALYA, TURKEY

2 Members are 26 EU national associations Associated members:

3 Executive Committee: Wide EU Representation Gary SHARKEY (Premier Foods Rank Hovis, UK), President Pekka MAKI-REINIKKA (Fazer, Finland), Vice-President Andrea CAMPIGLIO (Molino Fiocchi, Italy), Vice-President Bernard Valuis (ANME, France), Vice-President Michael Gutting (Saalemuhle, Germany), Vice-President Kristof DOSSCHE (Dossche Mills, Belgium) Joan MORETO REVENTOS (Fills de Moreto, Spain) Jim TRUDSLEV (Lantmännen, Scandinavian Countries) Gintautas MIGONIS (Malsena Plius, Baltic Countries) Martin KROPFITSCH (Kropfitsch Mills, Austria) Tadeusz KAPKA (Kapka Mills, Poland) Pavel HRDINA (Europasta, Czech Republic) Leonhard GOLLEGGER (Goodmills Group, Hungary)

4 Promoting our interests in Brussels

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6 THE EU : A HIGHLY-REGULATED ENVIRONMENT

7 Exchanges with many European Commission services DG Health & Consumer Protection Maximum levels for Deoxynivalenol, Ochratoxin A, Aflatoxins, Nivalenol, Zearalenone, T-2+HT-2 toxins, Lead, Cadmium, ergot, tricothecenes, Aluminium, pesticide residues etc. for wheat, flour, bread and feed materials Labelling, nutrition & health claims, food & feed hygiene, allergens, baby food, obesity & diets, etc. Zero tolerance for low-level presence of not-yet approved GMOs From voluntary to mandatory Country-of-origin labelling proposal under way DG Agriculture CAP Reform & market measures to apply to the cereal sector Secure supply of raw materials (wheat & rye) in quantity & quality Manage exposure to extreme price volatility

8 Exchanges with the European Commission services DG Competition services Food sector is high priority for European & national competition authorities! The CAP Reform and our opposition to the growing calls for exemption from antitrust rules for cooperatives/grouping of farmers DG Internal Market Revision of regulations in financial markets More transparency and better functioning of derivatives & spot markets DG Environment Sustainability, energy efficiency and waste Integrated pollution prevention & emission controls Best available techniques for the flour milling sector for emission limits

9 Membership of Primary Food Processing sector in Brussels provides even greater representation Feed compounders Rice millers Food Industry Oil crushers Sugar Snacks EU Flour Millers Vegetal Protein Industrial bakers Farmers Starch Cocoa Craft bakers Cooperatives Bakery ingredients Semolina Confectionary Traders Euromaisiers Maltsters Breakfast cereals

10 Understanding a global business environment

11 Industry Structures & Organisation Ministry of Agriculture Ministry of Trade & Industry Food Contract Corporation (state purchasing, processing and aid) Kazakhstan Grain Union Farmers Organisations Union of Grain Processors & Bakeries Strong scrutiny by state authorities (title, weights, quality, exports) General involvement of independent superintending Grain Trading Organisations

12 Chinese Milling Industry 2-3k mills = tpd (tonnes per day) k mills = tpd 350 mills = tpd Worlds larget milling business are in China Wudeli = 21k tpd COFCO = 13k tpd Yihai = 10k tod Industry capacity 250Mts 70 mills built per year! Industry usage 70mts 90% of mills privately owned 30% steam bread (30 min) 35% Noodle, 20-25% dumplings (boiled) Milling qualifications started last year. 3 Univ, 4 year course, 10 grain processing colleges with 2 year course

13 Dietary changes in China result in continued demand for Soft Commodities (2008 vs 2011) Source : USDA

14 Brasil 2013: Understanding the wider Agricultural factors influencing commodity markets

15 The Current Market Situation

16 Summary World wheat and corn fundamentals remain adequate, despite strong trade activity. The political crisis in Ukraine has sparked a sharp price rally, with feed consumers seen to switch to wheat, in case cheaper imports are not shipped from the Black Sea. Fund managers have bought large volumes of grain futures, building long positions, and adding to recent price volatility. New crop wheat, appears to have come through the winter very well in EU, but damaged by frost and drought in North America. 16

17 Funds Buy Corn & Soya Heavily; Wheat Short Shrinks Short 4 Mt wheat Long 12 Mt corn Long 24 Mt soya Funds net long 32 Mt Bought 28 Mt during Feb!

18 EFM-nabim Congress 2014 in Scotland from Thursday 29 May to Sunday 1 June

19 Updated Website statistics and general information

20 Thank you Gary Sharkey