Livestock Feed of European Origin - Agrifirm · PDF file2 Code: Livestock Feed of European...
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June 2017
Livestock Feed of European Origin
2 Code: Livestock Feed of European Origin
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 protein-
rich raw materials from South
America, North America and Asia.
Agrifirm believes thatraw 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
Livestock Feed of European Origin
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/sub-
tropical 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 ImplementsSustainable 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.
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.
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 theinquiry 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.
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Micro-c
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Regional Livestock Feed RequirementsThe 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
European Origin 1.0' Code, Agrifirm makes a contribution
to the development of new supply chains.
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.
Cereal co-products
Sunflower kernel and rapeseed products result from processing sunflower kernels and rapeseed. The key products are sunflower kernel, rapeseed meal and oil products.
Sunflower kernel and rapeseed Meal
80%
Soy products are protein-rich raw materials that result from processing soy beans. Key soy products are soy meal, oil, husks and beans.
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.
Primary Raw Materials
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 mate-rials 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. Suppliers must demonstrate that more than 80% of the raw materials from theproduction sites from which the animal feed producer acquires raw materials comes from Europe. These raw materials are not subject to any additional requirements.
80%
Legend
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).The use of raw materials such as citrus pulp, cane sugar molasses and palm oil is excluded.
Processed Raw Materials
4 Code: Livestock Feed of European Origin
Premixes are raw material mixes composed of the above-referenced raw materials. Together with vitamins and minerals (micro-components) these mixes are added to livestock feed.
Micro- components
Primary Raw Materials
C
o-products
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.
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.
6 Code: Livestock Feed of European Origin 7
Livestock Feed of European OriginVersion 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.
ScopeThe raw material requirements only apply to compound feed administered during the animal's productive phase (in other words not to young livestock).
Definition of Europe
Agrifirm defines Europe as continen-
tal 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 materi-
als originate in Europe.
Co-products
More than 80% of dairy cattle feed
consists of co-products. This con-
cerns 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 pri-
mary 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 avail-
able 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 ker-
nel and rapeseed produced outside
Europe. This is why a Massa Bal-
ance 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, vita-
mins 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. Restrain-
ing 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.
Background to the Code 'Livestock feed of European Origin'
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Agrifirm Group [email protected]
T +31 (0)88 488 10 00 www.agrifirm.nl
PO Box 200007302 HA Apeldoorn, The Netherlands