FIAAA’s aspirations include advocating and promoting the safe use of feed ingredients and the interests of the members of the association and to cooperate with other stakeholders in the interest of the industry. This includes initiating moves for the alteration of, addition to, or improvement in legislation for the benefit of our industry.

We have since formation established and managed a Code of Practice for use by Feed Ingredients & Additives suppliers. We have currently 20 members certified to our Code and have commenced a program to promote its acceptance by our customer groups in their own quality programs.

FIAAA’s aspirations include advocating and promoting the safe use of feed ingredients and the interests of the members of the association and to cooperate with other stakeholders in the interest of the industry.

A key anomaly of Australian Veterinary Medicine regulation was the inappropriate inclusion of many feed additives in their registration system, imposing the same rules as for veterinary medicines and pharmaceuticals. Following consistent lobbying with government a new deregulated system has now been launched which still imposes compliance obligations but allows an industry led system to underwrite appropriate product safety consistent with the risk of our products. The system permits products to be sold without product registration provided 5 criteria are met: fed orally, product quality using an industry based code, listing of the ingredient on an international listing (including the EU ingredient register and AAFCO), claims limited to prevent/alleviate being supported by a technical dossier and appropriate labelling. The regulatory approach was presented by the Australian Government to the IFIF/FAO meeting in January 2015.

FIAAA has an active website with membership details, information on its Code of Practice and auditing at www.fiaaa.com.au.

FIAAA is proud to have been accepted as a new IFIF member in early 2015.

For more information please visit: www.fiaaa.com.au.

SFMCA operates FeedSafe as the industries national quality accreditation program for stockfeed manufacturers. The first mills gained FeedSafe accreditation in 2003. FeedSafe covers all feed, supplement and premix manufacturers, being based on a Code of GMP with all sites undergoing annual on-site audits by independent food safety auditors. Over time the FeedSafe minimum requirements have been increased with the emphasis on mills demonstrating continuous improvement.

A close liaison is maintained with federal department of agriculture regulators covering veterinary chemical products, ruminant feed ban, import quarantine controls and animal health issues. State regulators control stock feed regulations including feed labelling and feed standards, with SFMCA working with relevant state jurisdictions.

SFMCA operates FeedSafe as the industries national quality accreditation program for stockfeed manufacturers. The first mills gained FeedSafe accreditation in 2003. FeedSafe covers all feed, supplement and premix manufacturers, being based on a Code of GMP with all sites undergoing annual on-site audits by independent food safety auditors.

Our industry retains close working relationships with other supply chain partners including the grains, vegetable protein, animal protein and feed additive supply industries.

Industry training has been an area of additional focus across two aspects:

Basic training – provision of online interactive training in FeedSafe and mill hygiene. Further basic training units are to be progressively developed.

Advanced Mill Training – a pilot project is being completed writing resource training materials for feed pelleting. The next step is to implement online training delivery for SFMCA members. The intent is to add other training topics once the pelleting course is operational.

The last year has seen continuing dry conditions across much of northern Australia and record numbers of cattle moving through beef feedlots. The dairy industry has seen growth in milk volumes with concentrate feeding rates continuing to increase. The chicken meat and egg industries have seen further expansion due to population growth and higher consumption rates for poultry products. The pig industry is stable and competing with imported pig meats.

Raw material prices have been high due to dry grain growing conditions and higher grain demand. Growth in domestic grain demand in the eastern Australian states is seeing increased market volatility and greater potential for grain prices to rise above export parity pricing.

Feed Statistics

For more information please visit: www.sfmca.com.au.

In 2014, exports of beef, pork and chicken reached more than U$ 17 billion, and employed one million workers, promoted local economic development, contributed decisively to decrease the deficit of the trade balance and shipped large portion of its goods globally.

For this reason, every link in the animal protein chain seeks to implement technological solutions to ensure sustainable production combined with modern creation model. It aims to reduce most the animal staying into the production cycle, reduce costs, increase yielding and reduce the environmental impact.

In 2014, exports of beef, pork and chicken reached more than U$ 17 billion, and employed one million workersIn 2014, exports of beef, pork and chicken reached more than U$ 17 billion, and employed one million workers.

In summary, the effort has focused to produce more with less at the affordable price to the consumer's capacity (currently the Brazilian consumer spends an average of 16% on food, while four decades ago it used to spend 40%). Therefore, productivity advance has been the prerequisite for production successful and considered the cornerstone in order to assure better life style and environmental preservation. 

In fact, since the 70s (when Brazil was a larger importer of food), its agribusiness increased almost 200%. As an example, the beef production increased from 1979 to 2009 at 5.42% CAGR, pork at 4.66% CAGR, and poultry at 8.45% CAGR.

Nevertheless, Brazilian entrepreneurs continue making efforts to keep the attributes conquered and move forward with their agricultural surplus (about 30% of local production) beyond the current 180 markets around the world.

Since the 70s, Brazil's agribusiness increased almost 200%. As an example, the beef production increased from 1979 to 2009 at 5.42% CAGR, pork at 4.66% CAGR, and poultry at 8.45% CAGR.

The strength is such that GDP of its agribusiness reached over U$ 300 billion (over 21% of Brazilian overall GDP), even pushed down by the hulking "Brazil cost", which decreased the profitability and undermined the competitiveness of entrepreneurs. Consumer as well as supplier of industry inputs, a provider of capital for manufacturing expansion and resources for imports of non-agricultural sector, in addition to producing food and generating employment for the domestic population, the Brazilian agribusiness has been successful and surpassed records, despite the weakly public counterpart.

GDP of its agribusiness reached over U$ 300 billion (over 21% of Brazilian overall GDP).

Placed in this complex supply chain, the Brazilian feed industry also ends up facing the growing radical movement that dangerously rejects the influence of the natural sciences and disdains the real dangers that affect some more than others, and that makes apology to contradictory precautionary principle. These apocalyptic visionaries blame the animal nutrition model and contemporary menu, the myth of higher health risk factors to the human beings survival, including the addition of GMOs in the meal and nanotechnology, amongst others.

Despite the depressed confidence level of entrepreneurs and consumers, higher industry inventories, rise on domestic interest rate, slowdown of wages and the consciousness obstacles of radical activism, the feed industry remains responding to the production chain demand, as well as, it´s expected to produce nearly 70 million tons of feed and supplements during 2015.

Feed Statistics

Poultry Feed 

In 2014, the lower cost of poultry feed resulted in profitability for the raiser and the activity demanded 31.3 million MT of feed, with chicks housing staying stable, while poultry meat production increased slightly.

Layer Feed

The production of feed for laying hens, totaled 5.8 million MT during 2014, a growth of 4.6% compared to 2013, while the export of eggs decreased, as the prices paid to egg producers were not encouraging.

Beef Feed

The scarce supply of calves, as well as not finished bulls, both fairly valued all year long, jeopardized the herd reposition of finished ones. This scenario may last even longer, until the reversal of the livestock cycle, needed to rearrange the supply chain balance. Moreover, the atypical weather influenced differently the quality of pastures in different producing regions, favored mineral supplementation and feed consumption, which accounted for 2.4 million and 2.7 million MT, respectively.

Dairy Feed

Climatic factors greatly affected pastures in some dairy regions, while in others the excessive rain damaged the milk collection. However, solid prices paid to milk producers allowed greater investment in on farm feed, also stimulated by the relief price on corn and soybean meal added to feed concentrates provided by ordinary players. Feed demand reached 5.4 million MT and totaled 6.4% more, despite the weakening trend in dairy prices and high inventories at the wholesale and retail.

Swine Feed

Despite lower cost of corn and soybean meal and good prices paid to swine producers, the supply of hogs for slaughter remained aligned to demand, mainly because the limitation of the breeders herd and piglets produced. In turn, the production stimulus of pork, triggered by the expansion opportunities across foreign markets (because PED virus in China and United States, geopolitical conflict in Ukraine, among others) fueled the activity and resulted in demand of 15.2 million MT in 2014, a recovery of about 2.2% over 2013.

Fish and Shrimp Feed

The aquaculture production chain estimated a modest growth, in the order of about 9% at just over 800 thousand MT throughout 2014. The activity remained under pressure from shrimp health challenges and other factors, such advancing imports from Asian countries, influence of climate changes, and the lack of water capacity needed to raise fish. The rainfall shortage in the Southeast and Northeast regions, while excess rains in the North region inhibited the pace of demand for fish and shrimp feed which reached only 723 thousand and 83 thousand MT, respectively in 2014.

Dog and Cat Food

Despite the slowdown in the growth pace of retail, both dog and cat food added almost 2.5 million MT during 2014, still driven by the anthropomorphization phenomenon and increasing exercise of responsible ownership, as well.

For more information please visit: http://sindiracoes.org.br.

The China feed industry development had three stages:

• The first stage was from 1980 to 1990, called start-up and fast growing period, in which annual increase of feed, production was 40.1%;
• The second stage was from 1991 to 2000, regarded as structural adjustment period, in which annual increase of total feed production was 8.4%, with annual increase of compound feed 6.0%, concentrate 40.4% and pre-mixed 26.8% respectively;
• The third stage is from 2001 until now, deemed as integrating and upgrading period, in which annual increase of total feed production 7.4%, with annual increase of compound feed 8.2%, concentrate 3.3% and pre-mixed 6.0%.

Manufacture of Different Feed Products

Compound feed, in all different stages, has been a major product, however, the percentage is different. In the early 1990s, compound feed was 98% of the total feed production, With increasing use of more concentrate and pre-mixed feed, quantity of compound production declined, dropped in 2005 to 72%, the lowest amount in the history. However, with the subsequent development of large-scale animal farming and rise of prices of feed ingredients, compound feed began to increase again to 86% in 2014. Now, in China major feed products are pig and poultry feed. Feed for the ruminant is increasing and has big potential.

Total Quantity of Feed Production

In 1980, total feed production was 1.1 million tons, in 2005, total quantity increased to 107.32 million. In 2011, it reached 180.63 million. In 2014, total feed production increased to 197.27 million tons.

Feed Additives Production

From 2008 to 2014, amino acid, vitamin and minerals& clathrate increased respectively 452.4%, 72.3%, 227.8%; feed enzyme, antiseptic agent & preservatives and microorganism increased 174.2%, 1456.4%, 159.3%. Feed amino acid is sufficient for domestic use, with certain amount for export.

Mergers and Acquisition

There are more and more large-scale feed manufacturers appeared and feed industry concentration degree improved. In 2003, total number of feed producers were 13 874. In 2014, the total number of feed manufacturers decreased to 9 584, 30% less than that of 2003. In 2003, there were 67 manufacturers with production capacity of 100 thousand tons/year, while in 2014, there were 500 manufacturers with production capacity of 100 thousand tons/year. Now there are 31 feed enterprises with annual production capacity of 1 million tons.

The Development of Feed industry Has Promoted Development of Animal Husbandry

China has long history in raising domestic animals, it is now in the transitional period from traditional to modern animal husbandry.

Major Livestock Products Output

In 2013, total production of meat, egg and milk were respectively 85.35 million tons, 28.76 million tons and 35.31 million tons, with average per caput of meat, egg and milk was 62.9 kgs, 21.2 kgs and 26.1 kgs.

The Development Focuses On Large-scale Animal Farming

In 2014, pig farms with off take rate of more than 500 is 41.8% of the total, farms with dairy animals more than 100 on hand is 68.8%, poultry farms with more than 2000 chickens is 45.2% of the total.

The Development Goal, Trend and Resources Demand. In the next "five-year plan", which is called "the National Thirteen's Five-year-Plan, the goal of livestock products will be set, with production of meat, egg and milk by the year 2020 of 92.20 million tons, 30.50 million tons and 40.80 million tons respectively, compared with that of2014, increase of 5.8%,5.6%,9.5%. It is expected that, in this period of time, feed incremental demand each year will be about 5 million tons, which will cause the increasing demand of ingredients. Energy ingredients consumption will be 230 million tons, and 67.50 million tons of protein ingredients will be needed.

In recent years, the import of feed ingredients, particularly the protein ingredients increased each year. In 2014, import of soybeans increased to 71.40 million tons, 60.98 million tons more than that of 2003. In addition, rapeseed 5.08 million tons, soybean cake 1.19 million tons and fish meal 1.04 million tons was imported. From an overall point of view, protein resources import dependence is now more than 80%, and this trend will remain almost at this level for the next 5 years.

From now on, China feed industry will enter into long-term steady development period, the incremental speed will be slowing down, the number of enterprises will be decreased further. Product optimization will be achieved with upgrading of science and technology level and technical regulations systems will be improved. In this process, we will give more attention to international co-operations on resources use and protection of environment. (2015/10/8)

For more information please visit: www.chinafeed.org.cn.

Regulatory Modernization

ANAC has submitted formal comments to CFIA on the three major components of the new regulations: feed ingredient classification and authorization, labelling, and hazard identification and preventive controls. We are now working to resolve a number of outstanding issues, including removal of obstacles still present in the proposed labelling rules, improvement of ingredient categorization, clarification of the drug-nutrient interface including removal of regulatory overlap, and clarification of facility licensing conditions. We are also identifying any adjustments that might be needed in ANAC’s proprietary FeedAssure HACCP program in order for it to qualify as a preventive control program for regulatory purposes.

The feed industry, livestock producers and regulators have all agreed from the start that the new regulations should focus on safety, market access and consumer protection, and should be outcome-based rather than prescriptive. These are worthwhile objectives, and while not easily achieved, have guided industry-government dialogue aimed at the completion of a comprehensive regulatory framework in the first half of 2016.

The feed industry, livestock producers and regulators have all agreed from the start that the new regulations should focus on safety, market access and consumer protection, and should be outcome-based rather than prescriptive.

Antimicrobial Use and Resistance

For several years, ANAC has been working with poultry and livestock producer organisations on the issue of antimicrobial drug use in animal agriculture. Specifically, we have been evaluating the potential impact on the feed industry—and investigating the role our industry might play—as governments in North America implement measures to promote the prudent use of medically important antimicrobial drugs in food animal production.

Efforts are being directed toward the removal of growth promotion and/or production claims from product labels, and ANAC is now working with the Veterinary Drugs Directorate of Health Canada along with our colleagues on an industry-government task group on animal health product regulation. The process being followed in Canada is intended to align with similar measures in the United States, which are expected to be completed by December 2016. Porcine Epidemic Diarrhea (PED) Virus

When the PED virus first appeared in Canada in January 2014, industry and governments at both the federal and provincial levels launched a cooperative program to investigate the source of the virus, promote biosecurity throughout the pork supply chain and ensure that communications to stakeholders were complete, timely and focused on facts rather than speculation. In early February 2014, news emerged of a possible link to feed in Ontario, and specifically there were concerns that contaminated porcine plasma had found its way into the feed in question.

While scientific investigations and the expansion of biosecurity measures continued in Canada and the US, the Paris-based World Organization for Animal Health (OIE) in May assembled a group of experts on PED. Stemming from those discussions, the International Feed Industry Federation, of which ANAC is a member, was invited to submit information on the effectiveness of feed processing controls, and recommended industry production practices that could serve to prevent cross-contamination of feeds.

While some sources have cited feed and feed ingredients as a vector for the spread of the disease, OIE issued a statement in October discounting the likelihood of such a connection: “…contrary to earlier reports, pig blood products such as dried plasma are not a likely source of infectious porcine epidemic diarrhoea virus provided that good manufacturing practices and biosecurity standards are followed.”

Proposed Canadian Import Restrictions on US-Origin Grain

In 2012, CFIA published a draft directive aimed at preventing the entry of plant pests—especially weed seeds—into Canada. This directive, known as D-12-05, sought to impose phytosanitary restrictions on imports of US-origin grains and oilseeds by requiring either an import permit coupled with a CFIA compliance agreement, or a phytosanitary certificate issued by the US department of Agriculture.

For over two years, ANAC campaigned against the introduction of import restrictions in the form proposed. We argued that any risks presented by the entry of the specified pests did not justify such pervasive controls imposed at the border. We also questioned whether the measures proposed in D-12-05 would be effective in preventing weed seeds from entering Canada, given the fact that pests could be carried across the border by wild animals, birds or even the wind. ANAC was joined in its advocacy efforts by a number of Canadian stakeholders, as well as US grain exporters.

In late summer 2014, CFIA released a position paper and an amended draft of D-12-05, which proposed the complete exemption of corn grain to be used in feed manufacturing from all phytosanitary import restrictions. ANAC staff and its advisory group of members involved in grain imports reviewed the details of the draft directive, and subsequently provided feedback to CFIA.

The amended directive has now been sent for review by US government and industry stakeholders, who may suggest alternatives to the phytosanitary certificate required under the original D-12-05. Assuming any changes recommended by the US satisfy Canadian plant protection requirements, the next version of the directive should be ready for full public consultation and eventual WTO notification some time inthe first half of 2016.

Feed Statistics

For more information please visit: www.anacan.org.

Key Market Developments

The compound feed production in the EU-28  in 2014 reached an estimated level of 153.4 mio. t, i.e. 0.5% less than in 2013, according to data provided by FEFAC members. 

While pig feed and cattle feed production dropped by 1.2%, poultry feed has seen its volume of production grow by +0.3%. As a consequence, poultry feed consolidated its position of leading segment of EU compound feed production now well ahead of pig feed.

The compound feed production in the EU-28  in 2014 reached an estimated level of 153.4 mio. t, i.e. 0.5% less than in 2013. 

The most important factor having impacted feed production in 2014 is certainly the Russian ban on imports of EU livestock products that started already in February 2014 as far as pigmeat is concerned, and put additional pressure on farmers, especially pig and dairy farmers. The good availability of forages due to favourable weather conditions and the sharp drop in dairy prices affected significantly the demand for compound feed for dairy cows, which did not benefit at all from the 5% increase in milk deliveries in 2014.

Poland has been among the only well performing countries among the largest producing countries, with annual growth close to 7%. Germany recorded also a significant increase (+2.3%) while all other major producers, France, Spain, Italy, UK and The Netherlands, saw their production fall by -0.3 to -4.5%.

FEFAC market experts foresee a 0.7% decrease in compound feed production in 2015 vs. 2014.

Germany strengthened its position as leading EU country in terms of total compound feed production before France and Spain shoulder to shoulder.

FEFAC market experts foresee a slight increase in poultry feed production (+0.5%) and a further -1.5% reduction in pig and cattle feed production, in case the dairy market does not recover quickly. Overall, this would lead to a 0.7% decrease in compound feed production in 2015 vs. 2014.

A number of CAP & trade policy measures may impact performance of the feed market in 2015: the entry into application of the CAP, with the application of the greening measures that may affect the supply of grains and oilseeds, but also the end of the milk quota system.

Key Regulatory & Policy Developments

Antimicrobial resistance and medicated feed

It is a well-established scientific fact that a balanced animal diet is a key component of a successful prevention strategy to reduce the need for antibiotics in livestock production. Providing safe and nutritionally balanced feed meeting requirements of farm animals preserves their animal health status while delivering best performance. The recently published legislation proposal on medicated feed suggests that imposing stricter rules to the production of medicated feed is the right way of tackling the excessive use of antibiotics in animal husbandry. It is important to highlight, however, that medicated feed is only one of many distribution routes of antibiotics prescribed by veterinarians to treat sick animals. Increasing the regulatory burden on one distribution route may only make veterinarians favour the other routes, which are less burdensome and less controlled. 

FEFAC  reminds that producing medicated feed holds no commercial interest for feed manufacturers, as it is in fact a very demanding service provided to livestock farmers. When it comes to fighting antimicrobial resistance, the feed industry is thus very much part of the solution rather than part of the problem. FEFAC, therefore, recommends to the legislator to stimulate innovation on the effect of nutrition on the immune system and gut health, and better training of livestock farmers, which in turn can facilitate the use of modern feed solutions and thereby help reducing the need for antibiotics. 

Producing medicated feed holds no commercial interest for feed manufacturers. When it comes to fighting antimicrobial resistance, the feed industry is thus very much part of the solution.

Reduction of food waste

The feed industry has extensive experience in providing effective solutions with regard to achieving the EU policy goals of reducing food waste. It gives value to 90 mio. t of co-products from the food industry like sugar beet pulp, wheat bran or soybean meal, which are unsuitable for food consumption and would otherwise have to be discarded. FEFAC, therefore, asks for a revision of the definition of food waste explicitly excluding food losses destined to animal feed, which still have a potential high value in animal nutrition and whose traceability and safety can be guaranteed. FEFAC, therefore, also supports the efforts taken by DG SANTE to facilitate the integration of former foodstuffs into the feed chain, which currently account for approximately 3.5 mio. t of high-value feed materials and potentially could reach 6 mio. t for the entire EU. The EU Catalogue of feed materials is the most appropriate regulatory tool for former foodstuffs to provide further clarification and transparency for the important legal borderline between feed and waste in order to preserve the integrity of the feed chain. 

The feed industry has extensive experience in providing effective solutions with regard to achieving the EU policy goals of reducing food waste. FEFAC, asks for a revision of the definition of food waste explicitly excluding food losses destined to animal feed.

Renationalisation of GM feed and food policy

Compound feed manufacturing in Europe is inherently linked to sourcing feed materials available on the global market. Farmers in key exporting countries, supplying the world market with critical feed materials such as soy and maize, have practically all switched to the cultivation of GM varieties motivated by individual agricultural benefits. For European feed manufacturer and its trade partners, GM-derived feed materials and the low level presence thereof are a reality of commodity trade they have to deal with. On the global market for feed materials, such as soy, the EU no longer holds a dominant position, therefore exporting countries no longer take EU-driven precautions before bringing a new GM variety onto the global market. Minute traces of GM varieties still awaiting EU approval can appear in consignments in any European harbour, thereby potentially blocking trade by non-compliance. EU decision makers need to realise that it is impossible for the EU to enforce on third countries what kind of crop breeding technique they can and cannot use, especially while the EU is so import-dependent and not dominant.

FEFAC and other EU organisations are committed to put all their energy to convince decision makers of the risks for the EU agriculture and  EU economic growth of a renationalisation of GM feed and food policy.

To overcome the political stalemate that resulted in a virtual moratorium on authorisation of GMOs, the EU Commission proposed in April 2015 to allow EU Member States to restrict or ban, in all or part of their territory, the use of “GMOs and GM food and feed” that have been authorized at EU level. This is not only a breach in the internal market but is also a source of market disturbance and legal uncertainty for all operators, whether importers, feed manufacturers and farmers and a license left to national authorities to kill their livestock sector. FEFAC and other EU organisations are committed to put all their energy to convince decision makers of the risks for the EU agriculture and  EU economic growth of a renationalisation of GM feed and food policy.

Feed Safety Management

FEFAC supports the idea of an integrated feed and food chain policy, placing the responsibility for the safety of the products placed on the market on feed and food business operators. Communication of information on contamination levels throughout the chain is a significant element to optimise monitoring plans at feed company levels. In particular, the most cost-effective way to control chemical contamination in the feed chain is preferably at the “top of the pyramid”, i.e. at the level of suppliers of feed materials upstream in the feed chain.

the most cost-effective way to control chemical contamination in the feed chain is preferably at the “top of the pyramid”, i.e. at the level of suppliers of feed materials upstream in the feed chain.

More than half the incidents in the sector of feed for farmed animals in the EU that trigger a notification to the Rapid Alert System for Food and Feed result from own checks performed by feed business operators. The proportion of own-check based notifications to the RASFF has grown steadily from 22% in 2007 to reach 54% in 2014, showing a high degree of maturity in the feed chain, and placing operators and authorities on an equal footing as regards the effectiveness of their controls. This should pave the way for a greater recognition of the value of auto-controls by authorities. This is why FEFAC upgraded its vision on feed safety management structured on three pillars: capacity building, optimisation of risk management along the chain and cooperation with control authorities.

More than half the incidents in the sector of feed for farmed animals in the EU that trigger a notification to the Rapid Alert System for Food and Feed result from own checks performed by feed business operators, showing a high degree of maturity in the feed chain.

Environmental footprint

The feed industry is conscious of its share to the environmental footprint of consumer goods produced with livestock farming. The Feed Product Environmental Footprint is one of the approved pilots under the European Commission’s Environmental Footprint initiative, which aims to develop a horizontal methodology that allows to measure and communicate the lifecycle environmental performance of consumer products in a harmonized way. The technical secretariat for the Feed PEF is coordinated by FEFAC and comprises several of its members (AIC, NEVEDI, SNIA, DAKOFO, ASSALZOO, FHL). The project is currently in the phase of conducting its first screening study. In April 2015 the FAO-led Livestock Environmental Assessment and Performance Partnership (LEAP) released the Global Feed LCA Guidelines, which have been developed with a strong input of IFIF, AFIA and FEFAC. It is FEFAC’s objective to maintain consistency and alignment between the global and European methodological rules.

The Feed Product Environmental Footprint is one of the approved pilots under the European Commission’s Environmental Footprint initiative, which aims to developed a horizontal methodology that allows to measure and communicate the lifecycle environmental performance of consumer products in a harmonized way.

A next step will be the establishment of a Global Feed LCA Institute which aims to make a credible and transparent attempt at creating a publicly available environmental footprint assessment database and tool, supported on different continents.

Responsible Soy

European feed manufacturers interested in purchasing responsible soy are faced with many different private schemes, though very similar in most aspects. To bolster the mainstream supply of responsibly produced soy to Europe, FEFAC published Soy Sourcing Guidelines in March 2015, which consist of a set of minimum criteria on legal compliance, responsible working conditions, environmental responsibility, good agricultural practices, respect of land rights and the protection of community relations.

To bolster the mainstream supply of responsibly produced soy to Europe, FEFAC published Soy Sourcing Guidelines in March 2015. With the publication of the guidelines, FEFAC has shown its commitment to the topic of responsible soy production ever since it started to engage with the Round Table of Responsible Soy in 2006.

Responsible soy scheme owners can benchmark their programme against the FEFAC Guidelines online, allowing feed manufacturers with the overview of which available programmes meet the feed industry’s minimum requirements. The guidelines have so far been positively received by the key trade partners, as well as some environmental NGO’s. With the publication of the guidelines, FEFAC has shown its commitment to the topic of responsible soy production ever since it started to engage with the Round Table of Responsible Soy in 2006.

Feed Statistics

For more information please visit: www.fefac.eu.

FEFANA’s overall mission is to promote, safeguard and defend the common and general interests of the industry of SFIs and their Mixtures. It represents the views of its Members to the EU authorities and the Competent Authorities of the Member States. All over the years, FEFANA has gained a strong positive reputation across Europe to key decision-makers and it has built close contact with other stakeholders of the feed and food chain. Though being a European organisation, FEFANA has an implicit International responsibility and it has been engaged more and more in projects and platforms at international level.

FEFANA is a well-recognized IFIF full member, playing a significant role in the feed & food chain, sharing a common responsibility with the compound feed industry. IFIF is the interface to certain key international organisations, such as Codex and FAO, and the ideal platform to meet with other actors of the feed chain, as well as the right place where to run FEFANA international projects, such as the SFIS Project on sustainability and the Convergence Project on common regulatory principles, of which an update is provided here below.

FEFANA-IFIF SFIS project

The Specialty Feed Ingredients Sustainability (SFIS) Project was designed to measure and establish the role of Specialty Feed Ingredients on the environmental impact of livestock production using amino acids and phytase as pilots. The project brought together for the first time a consortium of international companies and associations dedicated to reducing the environmental impact of livestock through innovative specialty feed ingredients. 

The overall results of the study show that the use of Specialty Feed Ingredients in animal diets reduces the consumption of basic feed ingredients.

Due to their functionality, Specialty Feed Ingredients are recognised to have not only the potential to improve animal performance, but also to reduce the environmental impact of animal production and the consumption of resources. By setting up a standard approach to measure this role and delivering a manual of nutritional practice, the project enables Specialty Feed Ingredients to be included in the evaluation of the mitigation measures to reduce the environmental impact of animal production on a global basis. 

The overall results of the study show that the use of Specialty Feed Ingredients in animal diets reduces the consumption of basic feed ingredients. Furthermore the study demonstrates that the use of Specialty Feed Ingredients results in clear reductions of the Global Warming Potential, as well as the Eutrophication Potential and Acidification Potential during livestock production due to less nitrogen (N) and phosphorus (P) in manure.

The rigorous SFIS analysis employed life cycle assessment (LCA) to examine the use of low protein diets (Nitrogen) and phytase (P) in pigs and poultry. In addition to the positive results, the study also points towards future developments, such as improved feed conversion driven by advancing technologies in animal feeding through using SFIs.

The results of the study were supported by an independent Scientific Council made up of global experts in the fields of LCA methodology and animal nutrition to ensure scientifically robust feed formulations for the analysis. This prepared the ground for a peer reviewed publication of the study report following the recommendations of ISO 14044:2006. A manuscript for publication in a scientific journal is just submitted. Another outcome of the consortium initiative is the first setup of product category rules (PCR) to give guidance for future applicants for tabling LCAs for SFIs.

The next objective will be now to start a Phase III of the SFIS Project to validate the PCRs for SFIs established in the pilot study comparison of LCAs of other ingredients than amino acids and phytases. This will broaden the ecological database for SFIs which is rather important for future sustainability discussions end environmental mitigation options along the feed to food value chain.

FEFANA-IFIF Global Regulatory Convergence Project

This initiative aims at facilitating access to regulation and enforcement practices in different regions of the world, fostering mutual understanding of the regulatory framework applicable to feed ingredients. In a globalised world the feed industry feels the need to understand better and to gain access to regulatory and enforcement practices in different regions of the world.

IFIF and FEFANA are joining forces in this respect: the global regulatory convergence project aims at comparing the regulatory systems applicable to feed ingredients in various parts of the world to provide regulators with a basis of convergence. This is in order to avoid as much as possible to lose industry and public resources in repetitive evaluation and authorisation processes and ease global trade while reinforcing food and feed safety. The project is conceived on a stepwise approach that can be applied to groups of countries, allowing working at adapted pace according to the local needs.

In a globalised world the feed industry feels the need to understand better and to gain access to regulatory and enforcement practices in different regions of the world.

The Convergence Project is the concrete next step from the 2013 IFIF "Comparison of Regulatory Management of Authorized Ingredients, Approval Processes, and Risk-Assessment Procedures for Feed Ingredients" report that covers Brazil, Canada, China, European Union, Japan, South Africa, and United States. This study was drafted based on expert input and support by government feed regulators and feed and feed ingredients associations in the 7 regions covered.

EU Commission Regulation on Additives consisting of Preparations: additional labelling requirements

In March 2015 the European Commission published Regulation (EU) 2015/327 amending the Regulation on Feed Additives (No 1831/2003) as regards requirements for the placing on the market and conditions of use of additives consisting of preparations. In particular “additional labelling and information requirements for certain additives consisting of preparations and premixtures containing such preparations” are introduced to take into account the use of preparations. 

This has been the result of many months of negotiations among FEFANA, the EU Commission and the Competent Authorities of the EU Member States. FEFANA is currently working on guidance for its members regarding the practical implementation of this Regulation. These rules will certainly have an impact on third countries importing into the EU as far as labelling of these products is concerned.

Consortia of feed additives

Back in 2010 - through the Consortia that FEFANA promoted – 100+ dossiers, covering over 1000 feed additives, were tabled to the EU authorities.  These are now progressively being evaluated by European Food Safety Authority (EFSA) for re‐authorisation by the European Commission. The evaluation phase of the dossiers submitted by our members through the Consortia is still on-going and its completion might take a few more years. The various dossiers are at different stages in the re-authorisation process and FEFANA is committed not only in the daily management of the dossiers, but also on the practical implications that each re-authorisation may carry; as this was the case of the Regulation on preparations mentioned above.

Booklets

Being the technical expert on Specialty Feed Ingredients and their Mixtures, FEFANA aims at providing technical and scientifically sound information on the benefits and safety of the products of its industry. Over the last two years FEFANA has published five booklets on different categories of products: Premixtures, Organic Acids, Carotenoids, Amino Acids, and Vitamins. These and other publications are available on the FEFANA Virtual Library. 

“FEFANA has always been committed to the promotion of the benefits and safety of its industry’s products, but has certainly gone a step further with the publication of the booklets’ series that are now shared within the supply chain, the EU and Member Stated authorities and also with the general public.” Marco Bruni, FEFANA President.

FAO LEAP Guidelines

FEFANA contributed to the development of Global Feed Life Cycle Assessment (LCA) guidelines developed by the FAO-led Livestock Environmental Assessment and Performance Partnership (LEAP) led by IFIF and FEFAC.

EC PEFCR Pilots linked to feed

FEFAC and FEFANA also currently participate in the European Commission pilots on the Product Environmental Footprint Category Rule (PEFCR).

For more information please visit: www.fefana.org.

In the case of broilers, it is estimated that around 10 million MT of feeds was produced in 2013 of which almost 80% is produced by the feed industry in pellet form and the remaining 20% is produced in mash form by the farmers. During 2013, around 48–50 million tonnes of concentrate feed ingredients were available for feeding dairy animals. Out of this, only 7.3 million tonnes were used for compound cattle feed production by cattle feed plants from the dairy cooperatives (3.33 MMT) and private sectors (4 MMT). Total compound cattle feed produced in India is sufficient only to feed about 7% of the total breedable animals. Farmers use compound cattle feed as one of the ingredients of the ration along with several other locally available concentrate feed ingredients. If only compound feed is fed to dairy animals, then requirement will be 70 MMT.

“Livestock GDP is growing at 3.5 per cent. To support this growing industry, about 28 million tonnes of compound feed was produced in 2014-15 and it is likely to grow to around 40 million tonnes by 2020. Currently, about one third of the total animal feed requirement of 80 million tonne in India is in the form of compound feed and it is growing at about 8 per cent in India." Amit Saraogi, Chairman, CLFMA.

"Factors like growing urbanization and income growth is contributing to changing food consumption patterns. In a few years, the growing population is expected to consume almost twice the amount of animal protein than today. To face the challenges in enhancing and sustaining productivity to ensure food and nutritional security, the industry requires research & development in scientific and technological innovation along with the right policy approach”
Mangesh Wange, Dy. Chairman, CLFMA.

Poultry Feed

India ranks 3rd in egg production and 5th in broiler production in the world. Broiler placements were 59 millions per week (2013) and expected to reach 100 million per week by 2020. State-wise broiler feed requirements per year are given in following table. Broilers are usually grown to 2 kg BW within 40-42 days requiring 3.2-3.6 kg feed with a feed conversion ratio of 1.6 to 1.8. Most of the poultry integrators manufacture their own feeds. Some of them purchase premix, specialty feeds or concentrates. Most of the independent poultry farmers buy feeds from commercial feed millers. Current egg production is around 69 billion eggs (2013) and is anticipated to reach 93 billions by 2020.85% of the feed required is made by farmers at the farm by using basic feed mill structure (grinders and mixers). 15% of the total feed is sold by commercial feed millers. Poultry feed consists of grains like maize, wheat, sorghum (jowar), pearl millet (bajra), finger millet (ragi) and broken rice; grain byproducts like rice polish, deoiled rice bran and maize gluten meal; oilseed meals from soybeans, mustard, groundnut and sunflower, animal protein sources like fish meal, whole fish, meat & bone meal, blood meal, leather meal, squid meal, poultry by-product meal; vitamins, minerals and various feed additives. In broilers, three types of feeds – pre starter, starter and finisher are used. In layers, chick mash, grower mash and two/three types of layer mash are used. In case of broilers, it is estimated that around 10 million MT of feed was produced in 2013 of which almost 80% is produced by the feed industry in pellet form and the remaining 20% is produced in mash form by the farmers. Commercial broiler and layer feed is distributed through distributors & dealers to small/medium farmers. In few states, feed millers are supplying directly to large farmers.

Dairy Feed

Low productivity of dairy animals could be attributed mainly to improper utilization of available feed resources, imbalanced feeding and shortage of feed resources for feeding growing and non-milking breedable animals. Shortage of feed resources in India has been documented by various organizations but several locally available feed resources used for feeding milk animals are not taken into account. These include industry by-products, horticulture and vegetable wastes, local grasses, tree leaves, weeds and other nonconventional feed resources. Crop residues are abundantly available in India and there is apparently no competition for these resources between other species and dairy animals. Dairy animals convert these crops residues, which otherwise have limited economic value, into milk. Feeding systems in smallholder dairying are primarily based on grazing of native pastures of low nutritive value. In India, cattle and buffalo are usually fed on wheat, paddy, millet, sugar cane tops and other straws and stovers. These are supplemented with small quantities of grass available from scanty grazing, or cut grass. Generally very little amount of concentrate is fed to the growing, working, pregnant and dry animals. Only lactating animals are given better feeding (home made mix) through supplementation of by-product concentrates such as, oil cakes, brans, and milled pulses, as farmers receives the immediate returns on their investment through saleable milk. The total area of permanent pasture and grasslands is about 6% of the country's geographical area. Forests are another major source of grazing and fodder collection. The grassland based production system is prevalent in the Himalayas where there are several nomadic tribes. Animals are moved to sub-alpine and alpine pastures during summer, while during winter they are grazed on adjoining plains. Small scale mixed crop livestock farming is the common and most dominant form of animal husbandry in India. Peri-urban and urban livestock production systems contribute significantly to milk production, and they are typically located in and around metro cities, where milk is sold, but are facing problems due to expansion of cities, limited space for storing dry fodder and environmental

Compound cattle feed for dairy animals

Compound feed plays important role to exploit the production potential of dairy cattle and buffaloes to its maximum, as it is nutritionally balanced ration, prepared with quality feed ingredients, which enhances consumption without waste and allows high efficiency of feed utilization. Feed quality assurance is one of the keys to higher livestock profitability and productivity. During 2013, around 48–50 million tonnes of concentrate feed ingredients were available for feeding dairy animals. Out of this, only 7.3 million tonnes were used for compound cattle feed production by cattle feed plants from the dairy cooperatives (3.33 MMT) and private sectors (4 MMT). Total compound cattle feed produced in India is sufficient only to feed about 7% of the total breedable animals. Farmers use compound cattle feed as one of the ingredients of the ration along with several other locally available concentrate feed ingredients. If only compound feed is fed to dairy animals, then requirement will be 70 ΜΜΤ.

Aquaculture feed

Due to rapid changes seen in the shrimp and fish farming sectors, India's ability to produce modern feed has stepped up significantly (Table 6). The country has 26 feed mills that can produce 2.88 million tons of aquaculture feed of which 1.25 million tons and sold in 2013 (43.40% capacity utilization).

Feed Statistics

For more information please visit: http://clfmaofindia.org. 

The Israeli Feedmill Association

The Israeli Feedmill Association (IFA) represents approximately 75%-80% of the commercial Israeli feed industry. The estimated total annual feed production during 2014 was 3.0 million tons.

IFA partners include 6 feedmills located throughout the country. The Israeli feed industry manufactures broilers, layers, turkeys  breeders, dairy cattle, beef cattle, swine and aquaculture.

The estimated total annual feed production during 2014 was 3.0 million tons.

IFA plays an active role in the Israeli feed industry. Its major objectives include education, regulation, emergency situations.

Education

Involvement in providing nutritional knowhow within the industry by:

• Encouraging international relations
• Setting up joint trials in IFA experimental facilities
• Providing its workers with feed milling training courses. Local and invited speakers discuss current industry issues. Hands on training courses are organized on an annual basis.

Regulations

IFA advocates on behalf of the industry with government regulators and policy makers. In joint cooperation with government policy regulators IFA is working to update an archaic system. Together the goal is to provide reliable mechanisms for assuring feed and food safety. An additional up and coming issue is the Clean Air Legislation at discharging at ports. IFA is motivated to work jointly with regulators to provide appropriate legislations.

The aim of IFA is to provide healthy affordable food to the Israeli market.

Emergency Protocols

Raw material for the feed industry is imported and therefore adequate supplies must be maintained at all times. IFA plays an important role in establishing an emergency protocol for a grain shortage situation.

The aim of IFA is to provide healthy affordable food to the Israeli market.

Industry Outlook

During 2014 feed industry showed a decrease in production in several branches mostly due to depressed economic circumstances.  Unfortunately, this seems likely to be the situation within the 2015 fiscal year. 

Issues and Challenges for 2015

• New feed and food regulations, which need clarification in order to be implemented successfully.
• Salmonella monitoring from farm to fork, reducing significantly the current levels.

Currently, JFMA has 49 member companies and 74 feed mills, which produce formula and mixed feed in Japan. JFMA’s total feed production by member companies is approx. 15.7 million tons, which accounts about 65.7% in Japan.

Currently, JFMA has 49 member companies and 74 feed mills, which produce formula and mixed feed in Japan. JFMA’s total feed production by member companies is approx. 15.7 million tons, which accounts about 65.7% in Japan.

Overview of Japanese livestock market

Japan has been relying on imports for most feed grains such as corn, sorghum, barley, wheat –1,332 thousand tons a financial year (decreased by 4.7%) of which most are imported from United States and Brazil, Australia, Argentina.

Japan used to import most corn, which accounts for about 44% of formula and mixed feed, from the United States (more than 80%) but now imports from diversified countries, including Ukraine, Brazil, and Argentina due to the soaring international prices of corn.

Japanese livestock producers have been suffering from high prices for feed, raising prices of feed grains and the effects of currency exchanges (yen depreciation).

Japanese total formula and mixed feed production in 2013 was 23.93 million tons (decreased by 0.6%) which was caused due to decline of number of dairy farms (19,400 decreased by 3.5%), number of heads for dairy cows 1,423,000 (decreased by 1.8%). Number of beef cattle farms was 61,300 (decreased by 6%), number of heads was 2,642,000 (decreased by 3.0%). Number of pig farms was 5,600 (decreased by 4.6%). Number of pigs was 9,685,000 (decreased by 0.5%). Feeding number of poultry was dropped by 5.7% in 2013 and feeding wings decreased by 5.7%.

Japanese total formula and mixed feed production in 2013 was 23.93 million tons

The JFMA’s Code of Practice for Safe Feed

To reduce the influence to feed price, feed business operators in Japan import their feed ingredients from diversified countries, in a viewpoint of feed self-efficiency ratio by increasing usage of eco-feed and feed rice and others.

Feed business operators in Japan have been working with the feed safety management according to the four guidelines stipulated by MAFF, which aims to prevent each hazard.

Japan’s Four Guidelines

1. Guidelines on Salmonella Countermeasures in Feed Manufacture. 
2. Guidelines for Prevention of Intermixing of Animal Origin Protein in Ruminant Feeds. 
3. Enactment of Guidelines on Manufacturing Control and Quality Control for Formula Feed and Feed Additive Formulations Containing Antibiotic Feed Additives. 
4. Enactment of Guidelines on the Prevention of Contamination of Feed and Other Materials with Toxic Substances.

The international approach to ensure the safety of food is a shift from the inspection of the end products into implementing good manufacturing practices including GMPs and HACCP at each stage of the food chain.

Prior to governmental efforts to encourage industry to follow GMPs, JFMA established “JFMA’s Code of Practice (the practice)” in October 2012. The practice aims to improve the mechanisms for assuring feed safety by incorporating the substance of ISO and HACCP mechanisms into the current four guidelines stipulated by the Ministry of Agriculture, Forestry and Fisheries (MAFF).

MAFF’s GMP

At present, MAFF is undertaking procedures which aim to reorganize the four guidelines into the united GMP guideline, taking into account of HACCP principles and international GMP standards（Codex: CAC/RCP 54-2004, EU: Regulation (EC)No183/2005, USA: cGMP, HACCP).

Labeling

The current labeling system requires feed business operators in Japan to renew the labeling whenever composition (proportion) of compound feed has changed, even if it does not compromise safety and quality (nutrition value). This regulation causes difficulties to the feed business operators importing from diversified countries.

MAFF is considering new labeling system in response to the diversification of feed ingredients.

• The new labelling system may allow flexibility in selecting diverse ingredients depending on quality and price.
• The new system also allows quick response to use a new feed ingredients which is requested by livestock farmers as well as reduction in label-changing costs in feed business operators.

MAFF is considering new labeling system in response to the diversification of feed ingredients.

Standard Setting

Establishment of new standards o undesirable substances. In addition, MAFF is studying to establish “Maximum Limits” and “Advisory Level” in consideration of “ALARA-principles”.

MAFF will shift its monitoring focus from the end products to feed ingredients and the compliance of GMPs in order to ensure feed safety more effectively through feed chain.

MAFF will shift its monitoring focus from the end products to feed ingredients and the compliance of GMPs in order to ensure feed safety more effectively through feed chain.

Project of Feed Rice

At the end of 2013, the Japanese government released a new agriculture policy and review of rice production adjustment and made rough tentative calculation to expand production of feed rice for livestock feed to 4,530 thousand tons.

In the “Basic Plan for Food, Agriculture and Rural Areas” released in April 2015, the Japanese government announced that Japan aims to raise its feed self-sufficiency ratio to 40% by 2025. The Japanese government tries to make stable livestock business by maintenance feed infrastructures and machine, expanding feed rice production for feed and promoting eco-feed (i.e. feed including industrial food waste as ingredients) usage.

In the “Basic Plan for Food, Agriculture and Rural Areas” released in April 2015, the Japanese government announced that Japan aims to raise its feed self-sufficiency ratio to 40% by 2025.

It is an important goal to secure reasonable domestic feed ingredients and stable supply, which are not affected by international market for Japanese feed and livestock industry.

Feed Statistics

For more information please visit: www.jafma.or.jp.

The Association seeks to strengthen the image of Latin America to the consumers, and enable developing countries to join forces and strengthen their representation.

FEEDLATINA works to promote increased dialogue between the feed industry and regulatory agencies and is based on a further sharing of responsibilities between them in order to promote compliance with technical and commercial regulations ("co-regulation"). FEEDLATINA works to support a robust, integrated and strong Latin America.

Our members include:

AUDINA, CAENA, CAPENA, CONAFAB, SINDIRAÇÕES, UECAN, ADISSEO, AJINOMOTO, ALLTECH, APC, BASF, BIOFARMA, CARGILL, DSM, DUPONT, EVONIK, IMPEXTRACO, MARS, MCASSAB, NOVUS, POLI NUTRI, QUIMTIA.

FEEDLATINA works to promote increased dialogue between the feed industry and regulatory agencies and is based on a further sharing of responsibilities between them in order to promote compliance with technical and commercial regulations ("co-regulation"). FEEDLATINA works to support a robust, integrated and strong Latin America.

STDF/PG/345: Feed and Food Security Program

As one of our key priorities, FEEDLATINA is implementing its STDF/PG/345: Feed and Food Security Program - A project for regulatory harmonization and feed safety in Latin America and the Caribbean. 

The STDF/PG/345 program is supported by the Standards and Trade Development Facility (STDF) a global partnership that supports developing countries in building their capacity to implement international sanitary and phytosanitary (SPS) standards, guidelines and recommendations as a means to improve their human, animal, and plant health status and ability to gain or maintain access to markets. 

Started in 2013, STDF/PG/345 also has support from FAO office in Latin America, the OIE Americas, the Inter-American Institute for Cooperation on Agriculture (IICA), Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay in addition to the feed industries and national associations.

The Project is indented to contribute to the harmonization/equivalence of the regulatory framework for the production and commercialization of animal feed, ensuring its safety and access to markets, based on the relevant international organizations, through public-private cooperation, using a value chain approach, boosting regional integration and facilitating trade within Latin American countries.

Harmonized regulations will contribute to strengthening public and private institutions on production and good animal feeding practices, through the development of national coordination mechanisms between the industry and regulatory authorities.

The multi stakeholder project has three components: 

1. Coordination mechanisms and coordination between public and private actors linked to the animal feed sector

2. Development of tools to promote harmonization of standards and equivalence of measures

3. Capacity building (feed industry and government agencies).

Harmonized regulations will contribute to strengthening public and private institutions on production and good animal feeding practices, through the development of national coordination mechanisms between the industry and regulatory authorities.

Specific instruments/tools to harmonize and strengthen the current regulatory frameworks for animal feed will be developed, based on the regulatory frameworks of some of the participating countries. Technical capacity at the industry and regulatory levels will be enhanced in the region through training on Regulatory Affairs, Good Manufacturing Practices, HACCP and other related topics.

The project also promotes public-private collaboration as it is based on the development of coordination mechanisms and the sharing of responsibilities between the feed industry and the regulatory authorities in order to promote compliance with technical and commercial regulations, increase intra and inter-regional trade and foster regional integration.

Feed Statistics

For more information please visit: www.feedlatina.org.

Activities 2014/15 

The New Zealand Ministry for Primary Industries has completed a wide-ranging review of the NZ animal feed industry. Its preliminary report supports the submissions of the NZFMA and is very complimentary about NZ feed manufacturing practices.

By 2016, the NZFMA board is proposing to require that all NZFMA feed manufacturers and blenders are FeedSafeNZ-accredited.

The NZFMA has developed a feed quality accreditation scheme called FeedSafeNZ. This scheme is independently audited against the NZFMA Code of Practice. To be eligible to participate in this scheme, you have to be a current member that either manufactures or blends complete stockfeeds. We have seen good uptake of this scheme and over 50% of our feed manufacturing sites are now FeedSafeNZ-accredited, with more waiting to be audited.

By 2016, the NZFMA board is proposing to require that all NZFMA feed manufacturers and blenders are FeedSafeNZ-accredited (this scheme is voluntary at present).

Our feed training course continues to see good uptake and commitment from members.

We are seeing a drop in dairy feeds produced, which coincides with the drop in milk payout. Dairy still remains the second largest contributor (by species) for commercial feed tonnes produced.

Feed Statistics

For more information please visit: www.nzfma.org.nz.

Through its membership and positioning within the larger Agricultural environment, AFMA is closely linked to related industries in the feed and food value chain where it plays a major role in strategically directing and aligning the feed industry in the larger agriculture sector.

The capacity in the AFMA Office over the past decade increased by more than 200% to keep-up with the ever expanding needs of its membership both locally as well as regionally.

The capacity in the AFMA Office over the past decade increased by more than 200% to keep-up with the ever expanding needs of its membership both locally as well as regionally. The AFMA Office also hosts the full secretariat of the South African Cereal and Oilseed Trade Association (SACOTA) and the Southern African Feed Manufacturers Association (SAFMA) established in 2013 at the 4th Global Feed & Food Congress (GFFC), held in Sun City, South Africa.

Feed Statistics

General Market Conditions

Growth in the South African agricultural production showed a substantial increase, reaching 5 % in 2013, compared to the 3.1 % in 2012. This was mainly attributed to growth in real income in the sector, as derived from growth in animal products, horticulture and field crops. Real income from animal products during 2013 was mainly made up by poultry meat (40.1 percent), cattle and calves slaughtered (19.7 percent), milk (13.8 percent) and eggs (10.8 percent), constituting 84 percent of this category. Prompted by the projected growth in production and firm domestic prices for chicken, beef and eggs, the real gross income from animal production was expected to increase by 7 percent in 2014.

Growth in the South African agricultural production showed a substantial increase, reaching 5 % in 2013, compared to the 3.1 % in 2012. This was mainly attributed to growth in real income in the sector, as derived from growth in animal products, horticulture and field crops.

While 2013 marked a return to profitability in the global context, local producers did not have the same benefit due to a substantial depreciation in the exchange rate, combined with severe drought conditions in South Africa and its neighbouring countries. While competitively priced imports prevented significant increases in local chicken prices in 2012, it placed extreme pressure on producer margins. However, a substantial depreciation in the exchange rate and higher international prices increased the cost of imported chicken in 2013. Domestic prices followed, yielding an increase of 7.7 % in the weighted average net sales realisation for frozen chicken in 2013. Chicken still remains the most affordable source of protein and although local consumption is projected to increase by only 34 % in the next decade, it continues to dominate the protein market.

Local Commodities Situation

After three seasons of constant increases in local commodity prices, it showed significant decreases due to positive global conditions and an estimated bumper summer grains and oilseed crop in 2013/14 season (ready for marketing in 2014/15). The combination of the estimated bumper summer grains and oilseed crop and the declining international maize price was expected to drive the local maize price much lower than in 2014. In fact, it was expected that the maize price would have to fall well below export parity levels to secure sufficient levels of exports that can clean out local surpluses resulting from the bumper crop, to enable a better price to producers.

The local maize price thus remained under pressure during 2014, largely as a result of weak international prices. In response to the lower expected maize price, both white and yellow maize plantings were expected to decrease marginally over the medium term until 2016. Local human consumption of white maize is projected to remain relatively constant over the long term, and any significant growth in white maize production will have to be absorbed by the export market or will have to substitute yellow maize in the feed market at a discounted price.

Feed demand has increased by 42 % over the past decade and it is expected to increase by a further 39 % during the next decade, which implies that more than 7 million tons of maize will be go to animals feeding, compared to human consumption of around 4.7 million tons.

According to the South African Bureau for Food and Agricultural Policy (BFAP), a strong growth is projected for maize from feed demand over the next decade, which will support the local yellow maize price over the long term. Feed demand has increased by 42 % over the past decade and it is expected to increase by a further 39 % during the next decade, which implies that more than 7 million tons of maize will be go to animals feeding, compared to human consumption of around 4.7 million tons.

The current local consumption of Soybean meal (SBM) is estimated at approximately 1.2 million tons, of which local production will provide 50 % of domestic demand, with the balance to be imported to fulfil local market demand.

Consumption is projected to increase to approximately 1.8 million tons in the next decade, with the largest part of local demand to be supplied by local production due to the expansion of local SBM crushing capacity.

The current local consumption of Soybean meal (SBM) is estimated at approximately 1.2 million tons, of which local production will provide 50 % of domestic demand, with the balance to be imported to fulfil local market demand.

Despite the increased local production, local SBM prices will remain a function of international prices and the exchange rate until sufficient SBM is produced in the local market to break away from import parity levels.

Domestic consumption of Sunflower meal is projected to increase from approximately 400 000 tons in 2014 to 550 000 tons in the next decade. As local production is expected to remain relatively constant, most of the increase in consumption will have to be provided by imports.

Domestic consumption of Sunflower meal is projected to increase from approximately 400 000 tons in 2014 to 550 000 tons in the next decade. As local production is expected to remain relatively constant, most of the increase in consumption will have to be provided by imports.

Associations Activities — Agricultural Regulatory and Policy Environment

Aniam Feeds Forum (AFF) (Act 36 - liaison meeting)

AFMA as leading livestock and feed association attends bimonthly liaison meetings with the Registrar of Farm Feeds, the Pet Food Industry (PFI) and Renderers Association of South Africa to discuss matters of importance to the feed industry. Through this forum, pertinent issues such as the new Feeds Bill, Regulations, Guidelines and Feed Registrations, Inspection Services, Rendering Facilities, and Trade issues are discussed in an open and transparent manner. 

The year 2014 started off with the Registrar appointing an Assistant Technical Advisor to assist with the tremendous volume of feed registrations and to address the ever-increasing backlog of applications that require market approval. Despite this attempt, it was clear that the backlog will remain a critical concern for a sustainable feed industry and that it needs to be addressed as a matter of priority. 

As part of the process to assist the Feed Regulator, AFMA facilitated a registration workshop in cooperation with the Feed Regulator on feed additives towards the end of 2013. The workshop was designed to provide the delegates with all the necessary information to successfully register a feed additive as either a farm feed or a stock remedy. 

Simultaneously, it aimed at improving the quality of feed additive applications received by the Registrar, and thereby improving the workflow process within the division. The workshop was held over 2 days and was attended by more than 150 people from the animal feed and animal health industries. AFMA will continue to participate in these registration workshops in the coming year in an effort to keep its members equipped with the necessary information to submit accurate registration applications.

During 2014, a working group was formed within the AFF to specifically look at the manner in which the registration status is reported at the meeting and to ensure that relevant and accurate information is available to industry bodies. Historically, it has been a major obstacle for member companies to manage their business and marketing strategies without proper guidance on the expected lead times for registration approvals. The working group is therefore tasked to design a status report that will provide a true reflection of the number of submitted, completed and outstanding applications within the various categories of livestock feed, pet food and feed additives. AFMA is actively participating in this working group and will continue its involvement in the next period.

Following the successful example of the registration-working group, a scond working group has recently been formed to look at an Inspection Services Report, which is to be presented at the bimonthly Act 36 liaison meetings. This working group consists of representatives from the industry associations and the Head of Inspection Services in the Agriculture Inputs Control Division. The aim of the report is to provide feedback to industry on general trends of compliance and non-compliance.

The Feeds Bill

In March 2013, the Feeds Bill was tabled before the Parliamentary Portfolio Committee on Agriculture, Forestry and Fisheries, and all industry stakeholders and senior officials of the South African Department of Agriculture, Forestry and Fisheries (DAFF) were given an opportunity to present their comments and concerns in this regard. The Bill was referred back to DAFF to address the major issues raised in terms of the legal framework and to embark on a thorough consultation process that will involve all stakeholders and affected parties in South Africa.

During 2014, however, the consultation process has not progressed much, apart from confirmation that fertilizers will be excluded from the scope of the Bill. AFMA will assist the Feed Regulator in initiating a meeting between all the relevant stakeholders before the end of 2014 in order to convene a workshop where the principles of the Feeds Bill will be discussed and potentially agreed on.

Regulations and Guidelines of Act 36

The proposed regulation amendment of Act 36 was not implemented during 2014. AFMA submitted extensive comments on this legislation, and the Registrar’s office was tasked with amending the regulation accordingly. AFMA views this amendment as an interim measure until the Feeds Bill is approved, after which a revised set of regulations will be required. AFMA strongly recommended that the regulations to the Farm Feeds Act (Act 36) be diversified to accommodate the various types of manufacturing facilities and establishments, each with its unique requirements. This will enable the inspectors to customise their facility audits in line with Good Manufacturing Practices at each type of establishment, and to potentially minimise the disputes between industry and government about the interpretation and intention of the law. Progress on the proposed regulation is being discussed as a standing agenda item at the Act 36 liaison meetings, and feedback will be provided to members via the AFMA Technical Committee during the next reporting period.

The slow progress on the regulation amendment mentioned is an unfortunate consequence of the limited technical resources at the Registrar’s office. The Registrar encouraged industry to assist where possible and AFMA envisions that the technical expertise of the Technical Committee will increasingly be utilised in this regard in the coming years.

A draft guideline document on the registration process and requirements was circulated to the Act 36 liaison members at the beginning of the reporting period. This guideline is critical to communicate all requirements and procedures necessary for the successful registration of farm feeds. AFMA provided comprehensive comments on the draft document and it is expected that the final guideline will be published before the end of 2014. 

Additional guidelines on specific data requirements such as stability testing, efficiency trials and related matters are planned for the next reporting period. AFMA encourages the effort to provide the public with relevant information that will improve the quality of registration applications. The AFMA Technical Committee will once again avail their technical resources to assist in this matter.

GMOs

Synchronisation of GMO events remains a huge challenge in the South African commodity trade and consequently feed and food environment. The Report of the National Agricultural Marketing Council (NAMC) – “Supply and Demand Estimates Committee Report”, indicated stock availability for processing of white maize for 15 days and yellow maize for 22 days at the end of April 2014. Certain GMO events not yet registered for commodity clearance in South Africa prevented imports of maize from traditional exporting countries such as Brazil, Argentina and the USA. Maize could, however, be imported from the Black Sea countries, but at higher prices and freight charges. In order to address the situation, AFMA, SACOTA, the South African National Seed Organisation (SANSOR) and Monsanto met with the GMO Registrar on 25 November 2013.

At the meeting, it was agreed that Monsanto would submit their outstanding application for commodity clearance and that the GMO Registrar would do its utmost to expedite the approval of the application. The Executive Council under the Genetically Modified Organisms Act (Act No. 15 of 1997) approved the Monsanto event at their meeting on 18 March 2014, which cleared the way for maize imports from one of South Africa’s traditional trading partners, Argentina.

In order to prevent a similar occurrence in future, AFMA and SACOTA met with SANSOR on 3 April 2014, where it was agreed that technology developers would be requested to synchronise GMO commodity import approvals in South Africa and major exporting countries. A proposal will also be drafted via the Maize Forum Steering Committee to the GMO Registrar to expedite the review of applications for GMO commodity imports, as well as to streamline the approval process for stacked events.

Self-Regulation

AFMA Code of Conduct

Since its inception and approval by the Annual General Meeting (AGM) in 2008, the AFMA Code of Conduct (AFMA Industry Certification Programme) has entered into its sixth year of implementation. Most of the AFMA members have already entered their third round of the Code of Conduct Compliance audit.

During 2014, the AFMA Technical Committee, as caretaker of the technical content of the Code and its auditing checklist, requested a review of the code and its auditing checklist to keep it up to date with the latest developments in the technical and legal environment, as well as the latest developments that impact on the feed and related industries.

The sub-committee responsible for the technical content has worked on the possible expansion of the Code, as well as on the audit checklist and its content. This sub-committee’s goal is to review and set the latest standard for the Code before engaging a second or third auditing and certifying service provider.

AFMA Transport Protocol

The AFMA Transport Protocol (laying down a set of rules on transporting of feed raw materials from the suppliers to the feed manufacturers) has been implemented. Its aim is to provide a mechanism for auditing transport providers against certain criteria in order to adhere to the principles of food safety.

Skills Transfer and Training Commitee Matters

Feed Miller curriculum development

The Feed Miller Curriculum had not yet been approved by the Quality Council for Trades and Occupations (QCTO), which means that the curriculum could not officially be registered with the South African Qualifications Authority (SAQA). AFMA’s Training Committee however, decided to proceed with the development process of learning material, despite the fact that the approval and registration process has not yet been finalised. AFMA has subsequently applied for funding from the Maize Trust, the Oilseeds and Protein Development Trust and the Agricultural Sector Education and Training Authority (AgriSETA) to fund the development of the learning material for the Curriculum.

AFMA has also embarked on a process to establish a training feed mill at the University of Pretoria (UP). This project has three objectives, i.e. the practical assessment of learners according to the Feed Miller qualification, feed processing research projects and academic programmes for undergraduate and postgraduate students. It is envisaged that the training feed mill will be financed by grants, sponsors and investments from different groups or a variety of role players currently involved in the South African feed industry. These could include suppliers of equipment and machinery for feed manufacturing, suppliers of IT products used in the feed mill environment, suppliers of software programmes used in the feed manufacturing environment and other input suppliers and service providers to the feed industry.

A joint initiative between AFMA, UP and the Kansas State University (KSU) will be the presentation of specialised short courses for the continuing professional development of the animal feed industry’s workforce. Short courses on feed milling technology will be aimed at current four-year animal science students.

Short courses will be presented by way of a weekly webinar by the faculty at KSU working with a faculty proctor at UP, while learning material will be made available through the distance education (DE) platform at KSU. Practical sessions will be conducted at the training feed mill, once established. Other universities and technical colleges will also be accommodated. Once the total project is up and running, it is envisaged that the initiatives will also be rolled out to feed manufacturers in other countries north of South Africa.

AFMA/Bühler/Swiss Institute of Feed Technology (SFT) Training

The AFMA/Bühler/SFT training course was presented from 6 to 17 October 2014. Other Southern African countries expressed an interest to also attend the training course.

AFMA Annual Symposium

The AFMA Annual Symposium hosting top local and international technical speakers is growing in stature every year it takes place, tabling excellent presentations on the most prominent and relevant topics which keep the South African industry informed on the latest development world-wide. Its prominence has over the years grown to such an extent, that other related industries and activities industries are using the AFMA Symposium as a corner stone event and are arranging other event before or after the Symposium.

For more information please visit: www.afma.co.za.

The U.S. feed industry makes a significant contribution to food safety, nutrition and the environment, and plays a critical role in the economical production of healthy, wholesome meat, milk, fish and eggs. More than 75 percent of the commercial feed in the U.S. is manufactured by AFIA members.

AFIA is particularly proud of the Safe Feed/Safe Food Certification Program, an independent, third-party certified program that promotes accountability and leadership at feed facilities. To date, the Safe Feed/Safe Food program has more than 300 certified feed mills and feed-ingredient facilities operated by 147 companies in the U.S. and Canada.

A similar program is the International Safe Feed/Safe Food Certification Program, launched in 2010, when an alliance was formed with FEFANA, the Feed Additives and Premixtures Association of the European Union. FEFANA is the developer of the Feed Additives and Premixtures Quality Systems, or FAMI-QS, program. International Safe Feed/Safe Food is designed to help facilities’ trade with European customers by illustrating compliance with the EU’s Feed Hygiene Regulation (183/2005). There are 26 facilities with certification. Several other companies are undergoing the process.

The U.S. feed industry makes a significant contribution to food safety, nutrition and the environment, and plays a critical role in the economical production of healthy, wholesome meat, milk, fish and eggs. More than 75 percent of the commercial feed in the U.S. is manufactured by AFIA members.

In addition, AFIA proudly offers two certifications that are benchmarked with the Global Food Safety Initiative—FSC32, Manufacturer of Pet Food and FSC34, Manufacturer of Animal Feeds. Both programs are administered by the Safe Quality Food Institute. The pet food program has more than 80 certified facilities from around the world—U.S., Canada, Brazil, China, Australia and Korea. The animal feed program has 27 certified facilities in the U.S., Canada, Australia, Mexico, Japan and Guatemala. 

AFIA’s staff strives to provide members with the highest level of service and advocacy on a range of complex issues. While much of AFIA’s focus is on the federal government, which includes the U.S. Congress, the U.S. Department of Agriculture, the U.S. Food and Drug Administration and the U.S. Environmental Protection Agency, the association also works with agencies and legislatures in individual states.

AFIA tackled a variety of concerns on behalf of its members in 2014. The Food Safety Modernization Act (FSMA), the ingredient approval process, trade-policy related items and the use of animal-health products in livestock and poultry are only a few of the issues the association addressed. 

Outreach to FDA officials on a number of issues is a matter of consistent engagement for AFIA. The organization has continued to provide feedback on the FSMA and the use of antibiotics in feed as well as issues surrounding ingredient approvals.

AFIA tackled a variety of concerns on behalf of its members in 2014. The Food Safety Modernization Act (FSMA), the ingredient approval process, trade-policy related items and the use of animal-health products in livestock and poultry are only a few of the issues the association addressed. 

In addition, the association has been very active in representing the industry with input on the negotiation of free trade agreements, including the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP), and opening doors for the feed industry to gain needed assistance with the development of new global trade markets. The U.S. trade offices are much more aware of the feed industry and the opportunities for global feed trade. Trade is an exciting area that will provide growth opportunities for expansion of the U.S. feed and feed ingredient industries.

Overall, 2014 was a year of mixed results for the U.S. livestock and poultry production industries, which trickles down to the feed industry. Throughout the year, grain and ingredient prices moderated with positive crop year expectations and the increased grain and soybean stocks resulting from the final harvest. This had the combined effect of lowering market prices for feed ingredients, which led to an improved profitable production scenario for poultry, swine, dairy and beef producers.

Overall, 2014 was a year of mixed results for the U.S. livestock and poultry production industries, which trickles down to the feed industry. Throughout the year, grain and ingredient prices moderated with positive crop year expectations and the increased grain and soybean stocks resulting from the final harvest.

Exports helped the dairy industry achieve record prices for milk, but on the other hand, swine producers saw their exports decline. The poultry industry experienced increases across the board in broilers, eggs and turkey production as well as consumption. The beef industry continued to decline in production, but appears now to be closer to turning the corner. Higher retail prices helped all of the production sectors. The pet food industry continues to increase in sales of approximately 5 percent over 2013, with increases in both domestic and export markets.

A Preview of AFIA’s Key Issues in 2015

Regulatory and legislative issues, both domestic and international, will continue to be of utmost importance for the association in the coming year. Below is a list of selected issues: 

Food Safety Modernization Act (FSMA)

Since this massive piece of legislation was signed into law on Jan. 4, 2011, the FDA has released drafts and re-drafts of the rules. AFIA provided feedback in formal comments during the past 18 months and began training programs for the U.S. feed, pet food and ingredient industries. The FDA released the final rule on September 17, 2015.

The centerpiece of the new food safety law is amendments made to Section 418 of the federal Food, Drug and Cosmetic Act. This section mandates FDA to draft rules for hazard identification and preventive control programs at every feed, pet food and ingredient facility. This is an entirely new approach to the regulation of feed, and one requiring a tremendous training program and outreach to the industry.

The centerpiece of the new food safety law is amendments made to Section 418 of the federal Food, Drug and Cosmetic Act. This section mandates FDA to draft rules for hazard identification and preventive control programs at every feed, pet food and ingredient facility. This is an entirely new approach to the regulation of feed, and one requiring a tremendous training program and outreach to the industry.

AFIA is working with the Food Safety Preventive Controls Alliance to develop guidance documents for the following industry segments: dry feed, liquid feed, pet food, plant products, animal products and vitamins/minerals and micro products. These documents will be used by FDA to train its investigators and provide industry a clear direction in implementing FSMA rules. 

Ingredient Approvals—Both federal and state laws require all ingredients to be pre-approved prior to use, unless they are the commonly or usually-named, or generally recognized as safe (GRAS) for use in feed. For more than 30 years, the Association of American Feed Control Officials (AAFCO) and FDA have worked in tandem with strong AFIA support to review, approve and list these ingredient definitions in AAFCO’s annual Official Publication (OP). Most state feed laws reference this publication as the official list of approved ingredients. However, the Food and Drug Administration Amendments Act of 2007 used the term “ingredient standards,” which FDA announced would greatly alter the legal requirements from previous rules. It has resulted in a threat to the AAFCO/FDA system of review. At AFIA’s strong urging, FDA and AAFCO recently renewed their memorandum of understanding to allow the current process to continue until Oct. 1, 2017.  

In the interim, AFIA is negotiating with the U.S. Congress and FDA to place the AAFCO OP into federal law, so FDA will recognize those feed ingredients listed therein. There have been mutual concessions on all sides and AFIA is hopeful this will be achieved this year. 

Veterinary Feed Directive and Antibiotic Resistance

According to FDA, the agency has concluded antibiotics useful in human medicine cannot be judiciously used for growth promotion, feed efficiency or milk production claims in animals. Drug sponsors must change these claims by submitting data for prevention-type therapeutic claims. Moreover, FDA believes such uses should be under the control of a veterinarian via the Veterinary Feed Directive (VFD), an AFIA-led initiative enacted into the Animal Drug Availability Act of 1996.

AFIA believes the VFD rules have had administrative problems in need of repair. In 2012, FDA published a draft proposed rule to amend the VFD rules and make significant changes, such as removal of the amount of medicated feed that needed to be manufactured and removing the veterinarian’s license number and state of license, among other changes. AFIA agreed with all the changes, but various issues remain and AFIA will continue to work on these issues in 2015 as the VFD begins its implementation stage.

Labeling of Genetically Modified Foods

Although state-enacted GMO labeling laws and state ballot referenda have thus far excluded animal food, livestock and poultry feed, as well as pet foods, these may easily get grouped with human food in future efforts. New state labeling proposals are introduced each legislative cycle and often do include animal food. AFIA was founded over 100 years ago to harmonize state feed laws. The association is an active member in the Coalition for Safe Affordable Food, more than 40 groups—from farming to food retailing—working to ensure a federal solution to the GM labeling debate rather than a patchwork of varying state labeling laws. 

In 2014, the U.S. exported more than $10 billion of feed, feed ingredients and pet food, including soybean meal, corn co-products, and other feed additives.

Trade Policy

In 2014, the U.S. exported more than $10 billion of feed, feed ingredients and pet food, including soybean meal, corn co-products, and other feed additives. International trade offers the greatest potential for the U.S. animal food industry’s future growth, both through direct feed and ingredient exports and the increased overseas sale of livestock, poultry and dairy products. Free trade agreements have the potential to open international markets for more U.S. feed, pet food and livestock exports, allowing the U.S. feed/pet food industry to continue to grow. 

The U.S. is actively negotiating two important free trade agreements: The Trans-Pacific Partnership (TPP) and the Transatlantic Trade & Investment Partnership (T-TIP). To facilitate finalization of both agreements, the U.S. Congress must pass trade promotion authority (TPA, also called “fast track authority”) allowing Congress to set priorities and the president to negotiate trade agreements. While Congress would retain its authority to review and approve or disapprove those trade agreements, it would do so only with an up-or-down vote. AFIA will be very active advocating for TPA as well as TPP and T-TIP. 

Feed Statistics

For more information please visit: www.afia.org.