World Grain - December 2007 - 25

FEATURE: SETTING THE FEFAC AGENDA

cases on the meat sector is minimal.
However, the incident provides a strong
reminder for the need for active animal
disease surveillance and strict biosecurity measures.
Poultry consumption improved markedly in the second half of 2006 and producers have been able to recover from
the sharp downturn in the first half of

WG: In what ways is FEFAC working to develop closer cooperation with
the livestock sector and the raw material
suppliers?
Corrêa de Barros: The shortage of

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WG: In what ways has the European
feed industry been impacted by the increase in demand for biofuels?
Corrêa de Barros: The demand for
biofuels produced from cereals and
oilseeds "fueled" by political decisions
at the national and E.U. level has led
to increased competition for these raw
materials, especially nearby biofuel
production units, and driving up land
prices, both of which could marginalize
livestock production not able to compete with subsidized biofuel production.
There also will be a strong energy deficit
on animal feed due to the intense use of
grains in ethanol production.
On the other hand, any increase of biofuel production could reduce the E.U.'s
protein deficit through increased availability of co-products such as rape meal
or DDGS. However, they cannot fully
substitute soybean meal due to their different nutritional profiles. They also present new feed safety hazards, which need
to be rapidly fixed by the producers.
WG: How is the recent outbreak of
foot-and-mouth disease (FMD) impacting the industry? To what extent has the
industry recovered from the Avian Flu
crisis of 2006?
Corrêa de Barros: While it is worrying to see that failures in own-control
and official control systems at the laboratory level could lead to a new FMD
outbreak, the incidence of the new

2006, although the total E.U. feed tonnage for poultry feed remained depressed in 2006.

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policy on GM events which are not yet
approved in the E.U. means that the E.U.
already lost supplies of U.S. corn gluten feed and DDGS and may, as early as
2008, lose the supply of soybean meal
from the U.S. and six months later from
South America. DG AGRI has estimated that this realistic worst-case scenario
could lead to a loss of up to 44% of the
pig and poultry production in Europe.
We believe that at least the European
Commission is fully conscious about
the urgency to address this issue, but the
main political challenge will be to convince certain Member States to support
a practical solution.

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800 t/h shiploader in Romania
150 t/h feedstuff unloader in Austria
600 m3/h biomass unloader in The Netherlands
180 t/h mobile unloaders in Egypt
2000 t/h ship loader in Brazil
500 t/h barge unloader in USA

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World Grain - December 2007

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