President EU Flour Millers - Tusaf 2016 · Everything starts with the raw materials… Over 220 m...

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Transcript of President EU Flour Millers - Tusaf 2016 · Everything starts with the raw materials… Over 220 m...

THE TFIF CONGRESS 2016 1 APRIL 2016 ANTALYA, TURKEY

President EU Flour Millers

Gary Sharkey

THE EU : A HIGHLY-REGULATED ENVIRONMENT

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

➜ Country-of-origin labelling

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

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

Membership of Primary Food Processing sector in Brussels provides even greater representation

Feed compounders

Starch

Oil crushers

Rice millers

Euromaisiers Maltsters Traders

Sugar

EU Flour Millers

Semolina Bakery ingredients

Industrial bakers

Craft bakers

Confectionary

Breakfast cereals

Farmers

Cooperatives

Vegetal Protein

Cocoa

Snacks

Food Industry

The EU Primary Food Processors (PFP)

• 3 130 companies in 26 EU Member States • 123 500 persons employed • Over 60 billion euro turnover • Supplying sugar, flour, vegetable oil, starch

products, vegetable protein, cocoa-based products & other food ingredients like lecithin, protein meals, feed materials to variety of industries

Everything starts with the raw materials…

Over 220 m tonnes of agricultural raw materials

processed per year, mainly from EU domestic production, of which:

100 mil. tonnes of sugar beets 52 mil. tonnes of wheat and rye 22 mil. tonnes of rapeseeds 14 mil. tonnes of soybeans 7.5 mil. tonnes of starch potatoes 7.1 mil. tonnes of maize 6 mil. tonnes of sunflower seed 1 mil. tonnes of cocoa beans 0.5 mil. tonnes of linseed

GIRA Bread Consumption study: €75bln Industry

• EU 28 bread consumption is declining at -0.6% pa ➜ Fresh bread -1.0%

➜ Pre-packaged long life +2.0%

➜ Home-baking +4.8%

Trends

Reduced Loaf Size

More Wholegrains

EFM Study Tours

• Why do we go?

• There are several agendas

➜ Milling Technology

➜ Bakery trends and new products

➜ Industry Insight

➜ Industry Networking

Understanding a global business environment

EFM Study Tour 2016: Chicago

EFM Study Tour 2016: Chicago

EFM Study Tour 2016: Chicago

2016: Tokyo 26-29th September

• Milling Innovation

• Bakery products

• Industry insight

EFM Congress: 27 – 29th May Madrid

• Phil Hogan, EU Commissioner for Agric

• Dan Dye, CEO Ardent Mills

• Anne Fremaux, Bakery Director GIRA

• Fabien Guillot, Purchasing Director Barilla

• Jordes Galles, Executive President Europastry

• Eric Schubert, Head of Ingredients Lesaffre

• Prof BOCCHERINI, Head of the Food & Agribusiness Department at Instituto

Internacional San Telmo

Outlook for Harvest 2016

Recent weather events: cause 50 – 100% rise in wheat price

2007: US Drought & EU Flood

2008: UK Floods 2012: US Drought

2010: Russian Drought / Fires

946 950

905

849841 839 840

849 852 854 854 855867

780

800

820

840

860

880

900

920

940

960

2012/13 Corn Production Forecast

Summary

• We operate in highly competitive markets so we need to understand:

➜ Our cost structure & how new technology can help

➜ Our Bakery markets & trends

➜ Our major raw materials

• How can your Industry Organisations help?

22

Thank you

Gary Sharkey

gary.sharkey@hovis.co.uk