News last update:6 Aug 2012

European feed supply security threatened

On behalf of COCERAL, FEFAC and the UECBV, Cardy-Brown and Co Ltd reviewed the impact of the zero tolerance rules for Europe's feed and meat sector.

The results of the CB&CLtd report will be used to persuade the European Commission to adjust their authorisation process of new GM events. The world's centres of grain and oilseed production are set to plant the next generation of biotech seeds.

This 'second generation' includes a new and improved version of Monsanto's herbicide tolerant soybeans –RoundUp 2 Yield (RR2Y) which is expected to enjoy even greater penetration of soybean acreages. The majority of the US, Argentine and Brazilian soybean acres in 2010 will be planted with seeds containing the RR2Y event.

Pressure grows between industry trade associations (representing grain traders, meat processors and the feed industry) and the European Commission to authorise soybeans containing RR2Y.

More traits to come
RR2Y represents the tip of the iceberg in terms of new traits. Within the next coming years more than 20 new traits are expected to enter the market in the US, Brazil and Argentina for soybeans alone.

With Europe highly dependent on imports of soybeans from these locations the outlook looks murky for the European meat industry which has suffered devastating feed prices over the last 18 months.

Biotech events for other crops are also developing rapidly – with not only new generation technology coming through but many different biotech events are now 'stacked' within one seed, particularly seen in corn seeds, some of the events are approved for import into the EU, some of them not.

Loss of imports
The result is; a massive loss of imports of corn, maize gluten and DDG's that Europe could use in feed or food. This will result in a major loss of competitivity for the European meat industry as it will be forced to use only expensive raw materials for feed.

Not only are GM crops becoming the norm in the world outside the European Union but supply of non-GM is also threatened as the Zero tolerance of GM content rules imposed on grain and oilseed imports are impossible to live up to.

Cardy-Brown&Co Ltd was commissioned by COCERAL, FEFAC and UECBV to complete a review of the current situation facing the European meat market. The report was delivered for the European Commissions Sherpa group and feedback is expected soon.

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