Workshop on responsible soy
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1 Workshop on responsible soy The view of the vegetable oil and proteinmeal industry Marta Zuluaga Zilbermann Chair FEDIOL Environment Working Group Brussels, 25 March 2015
2 Outline 1. FEDIOL structure and working areas 2. Facts and figures and importance of soy 3. Soy in the global scenery 4. Crushing business in the value chains 5. FEDIOL vision on the sustainability challenge
3 1. FEDIOL member associations FBVO VERNOF ADOP SE SCRO FI FOMA 12 Associations Companies in 5 other member states DK SCOPA PSPO UK BNL E DE CZ PL Huileries de France PT ES AFOEX FR AT IT HU OME RO OVID ASSITOL 3
4 1. FEDIOL priority and working areas Sustainability Environment food & feed safety food law, health & nutrition Trade, supplies & markets 4
5 2. FEDIOL in a few facts 38 million tons oilseed crushed 25 million tons meals produced 13 million tons oils produced from EU crush 18 million tons oils processed (including tropical oils) Soy facts 2013 Soybeans 85% of the market covered crushed 150 plants Share in EU 90%-95% Meals from ± 35 companies produced 20,000 direct jobs Oils marketed 12,5 million tons 10,9 million tons 1,6 million tons 5
6 2. Crushing of soybeans by FEDIOL members 1000 tonnes (Source: FEDIOL Statistics) 13172, , , , , , ,
7 2. Main origins of soybean sourcing ,1 4 3, ,1 1 0,8 0 Brazil USA Paraguay Argentina (Source: OilWorld Data)
8 Soybean Production, Crush & Meal Consumption ,3 13, Soybean Prod. (mil. tonnes) Soybean Crush (mil. tonnes) Meal Consumption (mil. tonnes) (Source: OilWorld Data)
9 Global Trade in Soybeans & Soybean Meal 1.6 4,5 16, 9 8, ,2 Soybean Imports (mil. tonnes) Meal Imports (mil. tonnes) (Source: OilWorld Data) (Source: FEDIOL, based on FAO & OilWorld)
10 Soybean Imports & Global Market Share , ,6 25, , ,02 22, , , ,4 15,4 14,1 14,9 15,2 13,4 13,3 12,9 12,5 13, / / / / / / / / / / /14 (Source: OilWorld Data) EU China Rest of the World
11 4. Crushing business in the value chain Food Feed Farming Collecting/ storing Trading Crushing/ refining Energy Technical
12 4. Crushing and refining activity Main characteristics processing of commodities, in a continuous process large volumes covered by medium term buying and selling contracts using international standard quality (mainstream) requiring timely operations, slik logistics and little admin trying to achieve economies of scale in a low margin business
13 5. The situation regarding sustainability General recognition of the need to reduce environmental impact of food production and to increase the sustainability of the different supply chains Definitions of sustainability vary Lack of effective consumer demand Sustainability objectives are driven by different factors Company own vision and initiatives Demand by industry and retail Government policy and legislation NGO pressure Many tools for promoting sustainability concepts Multi-stakeholder round tables (RTRS ) Commercial schemes (ISCC ) Initiatives by individual or groups of chain players (Soja Plus, CGF, )
14 5. EU Crushers vision on soy sustainability Convinced about the need to ensure sustainability of our soy production systems and industrial activity Committed to promote the production and up-take of sustainable soy Crushers/refiners are intermediates, between Customers in Europe with their vision and expectations & Chain players in origination countries, i.e. farmers, with different perspectives Strive for a balance between both interests to provide longlasting solutions that promote sustainable practices and encourage responsible economic development Favour realistic and workable solutions for the the supply chain Allow for continuous improvement in the sustainability journey
15 5. Support for FEFAC responsible soy approach Shared ambition to get mainstream volumes of sustainable soy to the EU market Without creating a new sustainability scheme Looking for set of essential requirements Allow a sufficiently broad base for soy sourcing Define key principles of verification Discussion of the guidelines with the producer side at origin Continuous improvement
16 5. FEDIOL action Engaging in sustainability debates (internally, with external stakeholders and with public authorities) including on deforestation Continue engaging with different platforms and roundtables such as RTRS, Soja plus, which promote farming practices at origin and strive towards more sustainable production and continuous improvement. Support for Soy Moratorium aimed at tackling deforestation as a transition towards longer lasting solutions Support FEFAC initiative for its ability to embark more farmers in the sustainability «journey» with a view to develop mainstream sustainable supply
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