68th FEFAC Public Annual Meeting – Summary Report 31 May 2024 – Brussels, Belgium “How to boost EU feed autonomy and strengthen the Circularity of the EU livestock sector?”

FEFAC organised its 68^th Public Annual Meeting to take place in Brussels, Belgium. The public conference on 31 May welcomed a large range of national, European and international speakers and was attended by over 120 participants. Two high-level sessions analysed the future direction of travel for the EU livestock, aquaculture and feed industry on the way to facilitate the green transition of the EU livestock sector, sustainably and profitably.

Patrick Pagani, Copa-Cogeca Deputy Secretary General

Opening remarks were delivered by FEFAC President Pedro Cordero, DG AGRI Acting Deputy Director General Pierre Bascou, and Copa-Cogeca Deputy Secretary General Patrick Pagani.

Pedro Cordero opened the event by highlighting the EU's priority setting and key policy objectives, culminating in the adoption of the Open Strategic Autonomy declaration under the Spanish EU Council Presidency in Granada last year.he expressed satisfaction with the recent publication of the EU feeding strategies study and the latest EU Protein Balance Sheet, which is expected to be key references for the new comprehensive EU protein plan. heshowcased the recently published FEFAC factsheet outlining 12 FEFAC Key recommendations to the EU Strategic Agenda 2024 - 2029, for a prosperous and competitive EU feed and livestock and aquaculture sector. Pierre Bascou emphasized that efforts at both the EU and national levels have led to significant progress in reducing dependency on imported plant proteins, particularly through increased EU production. The recommendations from the 2018 Commission report on the development of plant proteins in the European Union have resulted in improvements in the current Common Agricultural Policy (CAP). The Commission is also investing in research and innovation in protein crops and feeding systems through its research programs and the European Innovation Partnership on Agriculture, aiming to make livestock production systems more sustainable, resilient, circular, and efficient. Pierre Bascou referred to the European Commission's ongoing commitments to increasing transparency of the feed protein import dependency (updated EU Feed Protein Balance Sheet published on 24 May 2024) as well as the potential for feeding strategy solutions (study published on 24 May 2024).

Patrick Pagani applauded the improved political climate for talks about how to address sustainability concerns with farmers. By offering creative solutions to the EU livestock sector that can increase circularity and aid in achieving carbon neutrality by 2050, he called on the feed industry to support him. He highlighted the critical timing of this meeting, coming less than a week before the EU elections. He stated that this period of transition follows significant challenges posed by the COVID-19 pandemic and the war in Ukraine, which underscored the importance of food, feed, and energy security. The war has demonstrated that global market interlinkages can disrupt the supply of animal feed to EU farmers, emphasizing the need to diversify sources and reduce dependency on single importers. These issues are further exacerbated by concerns about generational renewal in the farming sector. To achieve true resilience in livestock farming, these realities must inform all dimensions of sustainability. He reminded us that the recent farmer protests across the EU have aimed to reposition agriculture at the core of EU policies, restoring its strategic importance alongside energy and defense. He called for a vision of a vibrant livestock sector that acknowledges its valuable contributions to landscape management, wildfire prevention, and its interconnection with crop production. He emphasized that animals play a crucial role by converting non-edible terrestrial agricultural biomass, which constitutes 75-80% of annual production, into edible food and bioavailable proteins.

1st Session: "How to boost EU feed autonomy: EU Open Strategic autonomy Objectives for the EU feed and livestock sector??"

In the first morning session, Andre Negreiros, the Central and Eastern Europe business leader at Corteva Agriscience, set the scene for the first session "How to boost EU feed autonomy: EU Open Strategic autonomy Objectives for the EU feed and livestock sector?" by emphasizing the urgent need for the EU to accelerate support for the development of protein crops suited to its agronomic conditions, to enhance EU self-sufficiency. Highlighting the longstanding discussions about the need for an EU protein plan, he pointed out that focus on genetic improvement of these crops within the EU, remains insufficient, with no effective plant protection solutions available. He called for a swift movement towards adopting new technologies, including New Genomic Techniques (NGTs), which require regulatory approval. He underscored the importance of setting realistic self-sufficiency goals and acknowledging the necessity of trade-offs, such as potentially reducing other cereal cultivation when focusing on protein crops. Considering that Italy and Romania are currently the only EU countries producing high-protein plants like soybeans, and noting that Brazil manages two crop seasons in one year, he advocated for an EU roadmap setting clear quantitative targets to guide research investments to ensure EU protein crop competitiveness.

Andre Negreiros, Central and Eastern Europe Business Leader at Corteva Agriscience

1st Panel on EU Open strategic autonomy objective for the EU Agri-food chain

The first-panel discussion, moderated by Rose O'Donovan, Chief Editor of AGRA FACTS, included speakers such as Pierre Bascou, Acting Deputy Director General of DG AGRI, Patricia De Clercq from the EU Belgian Council Presidency, Birthe Steenberg, AVEC Secretary General, Erik Wilbholm, Cargill Senior Managing Director of Oilseeds, and Pedro Cordero, FEFAC President. The panel primarily focused on the EU protein plan while also emphasizing the importance of maintaining EU livestock production within the region.

Patricia De Clercq, EU Belgian Council Presidency, pointed to the successful Flemish protein plan and the First Action Program, comprising 76 initiatives to craft a comprehensive protein strategy. The first progress report for 2023 has been released, with 27 targets set for 2030, and there is hope that the agrifood chain will demonstrate substantial progress towards these goals within the next year. She pointed to the recent discussion at the EU Agricultural Ministers informal council, where ministers exchanged on the necessity of integrating various elements of the protein plan at the EU level, hoping this would lead to the adoption of unanimous Council conclusions at the end of the Council Presidency. De Clercq emphasized the importance of supporting livestock agriculture through legislative measures and fostering consumer engagement. Personally, she believes that besides Common Agricultural Policy (CAP) addressing/tackling the production side efforts should be made also towards the consumption side to ensure a holistic future EU policy approach to be applied to the whole agricultural & agri-food chain sector.

Birthe Steenberg, AVEC Secretary General congratulated FEFAC for being a frontrunner in sustainability efforts, publishing its sector sustainability charter in 2020. In the meantime, AVEC has developed its sustainability charter and recently released its EU election manifesto aimed at bridging the gap between rural and urban Europe, with a focus on recognizing and supporting the pivotal role of farmers in food production. She stressed the distinction between animal welfare and sustainability, which encompasses environmental, social, and economic considerations. She underscored the findings of a recent AVEC study examining the Costs and Implications of the European Chicken Commitment in the EU. The study revealed a significant 37% increase in costs per kilogram of meat, along with elevated greenhouse gas emissions per kilogram of meat produced, as well as increased feed consumption. Emphasizing the urgency for ongoing research and development, she advocated for enhancements in feed digestibility, optimization of amino acid combinations for poultry, exploration of alternative protein sources, and the establishment of robust global partnerships for ensuring food security. Additionally, she presented the EU Livestock Voice initiative, which aims to reshape the narrative around agriculture through its members to engage with policymakers and the public. Stressing that the ELV objective is not to impose choices on consumers but rather to provide information for informed decisions. Finally, she highlighted consumers' reluctance to accept higher food prices (max 5% more) for more sustainable poultry products and emphasized the necessity for cost-effective solutions in addressing this challenge.

Erik Wibholm, Cargill Senior Managing Director Oilseeds, discussed the economic and environmental advantages of importing 30 million tons of soy into the EU, given the limited production capacity within the EU, and the benefits of soy's ideal amino acid composition. Additionally, he highlighted the current lack of readiness for alternative protein sources: the uptake of insect meal remains low, and algae cultivation faces significant challenges. Wilbholm also stressed the need for supply chain resilience and the importance of reliable alternative suppliers of oilseeds, such as Australia, Canada, and Ukraine. Regarding Ukraine, a key supplier of sunflower products, he noted a decline in sunflower production from 17 million tons to 13 million tons since the Russian occupation. He underscored the urgency of establishing a coherent EU trade policy to effectively address these challenges.

Pedro Cordero, President of FEFAC, emphasized the significance of embracing technology and fostering collaboration within the industry. He outlined FEFAC's 12 recommendations for a prosperous and competitive European Feed and Livestock And Aquaculture sector (available here). In addressing the protein discussion, Cordero highlighted the evolving landscape, noting a reduction from 18% to 12% in protein content within feed formulations in recent years. He underscored the importance of new genomic techniques in realizing a successful European protein plan. Furthermore, Cordero emphasized the feed industry's commitment to advancing circular economy principles, particularly through the effective utilization of co-products. Finally, he stressed the importance of providing and promoting tools such as the Global Feed LCA (GFLI), an initiative aimed at developing a high-quality feed LCA database and other related feed-related LCA tools to support sustainable practices within the industry.

Pierre Bascou, Acting Deputy Director General DG AGRI, underlined the importance of the EU livestock industry, highlighting its positive externalities and its essential role in the EU food system. He noted the industry's declining trend and advocated for a shift towards innovative practices and a change in behavior among both farmers and the supply sector. Addressing the EU protein plan and questions about quantitative targets, he emphasized that setting the right direction is more important than specific targets. Concerning the EU's progress on implementing regulations like the EUDR, he mentioned that the Commission services are working diligently to define the economic, social, and environmental guidelines necessary for the proper implementation of this regulation, meeting the December 2024 deadline. He acknowledged the concerns about the lack of readiness for the implementation of the regulation, including the EU's trade partners, and confirmed that regular discussions are being held with them on this topic. Jim Sutter, CEO of USSEC, highlighted the importance of using the GFLI Database as a key reference tool that underpins the sustainability performance of key feed ingredients, like soybean meal.

Pierre Bascou, Acting Deputy Director General of DG AGRI, Patricia De Clercq from the EU Belgian Council Presidency, Birthe Steenberg, AVEC Secretary General, Erik Wilbholm, Cargill Senior Managing Director of Oilseeds, and Pedro Cordero, FEFAC President. Moderated by Rose O' Donovan, AGRAFACTS Chief Editor

2nd Panel on Key market and regulatory drivers to increase the Circularity of the EU feed and livestock chain and reduce carbon emissions on feed ingredients

The second session, moderated by Anton van den Brink, Deputy Secretary General of FEFAC was dedicated to the identification of the key drivers to increase the circularity of the EU feed & livestock chain and reduce carbon emissions on feed ingredients.

Christian Holzleitner, Head of Unit in DG CLIMA, stressed that the EU cannot afford to contribute further to global warming and must reduce GHG emissions. Action already taken on renewable energy has already delivered very positive results but more is to be done, in particular on carbon sequestration, e.g. by fixing carbon from the atmosphere by biomass or making better use of carbohydrates in food waste. The bioeconomy will therefore play a key role in this equation. This poses several challenges, especially since biomass output is what is first affected by climate change. We need to decide now which type of trees should be planted for the viable forests of the next century. The policy makers have a role to play in supporting the transition in the agriculture sector, as is done for e.g. the fertiliser sector. But the starting point is to be able to measure and enable the bioeconomy to exploit existing solutions and stimulate innovation. Certification of carbon removal (carbon farming) and Emissions Trading Schemes are key initiatives in this regard. The EU Commission intends to design in 2025 a new module for certification of carbon sequestration for the livestock sector. This will require the characterisation of different techniques/strategies to better quantify the impact reduction and therefore be able to integrate these elements in business models.

Annick Pleysier from Bayer reminded us that feed represents the largest part of the impact of the livestock sector on the environment, in particular as regards land use. Hence the importance of innovation to increase land use efficiency, especially for protein crops. This requires improved breeds via traditional or new breeding techniques, access to plant protection products with a combination of chemicals and biological solutions, that can contribute to soil health (e.g. via no-tillage practice), precision crop farming tools, based on digitalisation, and carbon farming with new business models allowing farmers to cope with climate commitments. All of these actions aim at the end of the day to support the implementation of regenerative practices.

Severine Deschandelliers, President of FEFANA (feed additives sector), pointed to the many contributions that feed additives can make to foster sustainable livestock feeding practices (enzymes increasing the digestibility, amino acids to allow reducing the protein levels in diets, flavourings to use resources with unpleasant smell for the animals, hygiene condition enhancers to maintain gut health. This allows increasing also feed circularity as it makes it possible to better use resources from the bioeconomy and even possibly waste material. She stressed the importance of instruments to allow communication of relevant information along the chain as a key acceleration factor for the transition to more sustainable livestock production and also develop business models that involve the whole of the chain including consumers. However, to allow full exploitation of their potential, the current feed additive legislation requires a serious revision, e.g. moving away from the sole livestock performance criteria to evaluate the efficacy of feed additives and also to encourage operators to submit applications for authorisation. This supposes that they can get rewarded for their investments, e.g. by granting transitory market protection for feed additives not falling under the holder-specific authorisation regime, or a reduction of the length of the evaluation process and the end of the provisional authorisation systems. Indeed, the experience today is that the obligation for feed additives to undergo renewal of authorisation every 10 years (something that is not required for food additives) is responsible for the loss of access of the livestock sector to several feed additives and generates undue administrative burden.

Alexander Romme, president of the EFFPA (former foodstuffs processors) underlined the contribution of the former foodstuffs to the circular economy. With a carbon footprint 25% lower than wheat, former foodstuffs have also a higher nutritional value and therefore contribute to feed efficiency. At a moment when retailers are putting a lot of pressure on the livestock sector to reduce its environmental impact, former foodstuffs have a clear role to play. However, the current policy on bioenergy results in the diversion of highly nutritional resources from feed to biogas production. It is essential to secure consistency across sectoral policies to allow the spread of biomass resources across different uses in an optimised way. He stressed that the sector also faces some regulatory restrictions and hurdles that discourage operators from discarding former foodstuffs as waste or using them as biogas rather than feed.

Ruud Tijssens, IFIF chairperson, and member of the FEFAC Board, questioned the geographical dimension of the debate on sustainability. EU actions have also a global impact and the EU debate on food security and autonomy shows the importance of home production but also the importance of maintaining trade relations with the rest of the world. He also stressed the differences in terms of resource efficiency not only across production systems but also within individual production systems, which may well then be where progress may be achieved the fastest at minimum costs. He also noticed that several solutions exist but are not implemented yet (e.g. for feed additives). Likewise, the potential amount of former foodstuffs that could be directed to the feed sector is higher than what is used today. In his views, the conditions for a successful sustainable solution to be taken up by the chain are 4: economically viable, technically feasible, legally possible and socially acceptable. It is important to address these 4 conditions simultaneously to get a chance of success for driving circularity in the feed chain.

Christian Holzleitner (DG CLIMA) Annick Pleysier (Bayer) and Severine Deschandelliers (FEFANA President), Alexander Romme (EFFPA President), Ruud Tijssens (IFIF Chairman)

The event came to an end with the final closing remarks delivered by FEFAC President Pedro Cordero, who thanked all the sponsors, panellists and participants, who contributed to making this event a success. He called for more endeavours at the EU level to promote locally produced proteins that can lead to more sustainable agricultural practices, enhance the EU's agricultural sector competitiveness and reduce EU dependency on imported protein-rich products. Mr Cordero announced the recently published factsheet outlining 12 FEFAC key recommendations to the EU Strategic Agenda 2024-2029 that address issues like how to diversify and secure our strategic supply chains, how to foster innovation and research, including in the defence sector, to help Europe achieve climate neutrality, and how to ensure our food security through a thriving agricultural sector.

FEFAC wants to thank all sponsors for making the 68th Public Annual Meeting 2024 possible and a successful event!

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