Supply Chain Opportunities and Challenges: A Global Feed Industry perspective

Alexandra de Athayde, IFIF Executive DirectorAMC 2018 – Session: Feed milling meeting supply chain demand04 June 2018| Golden Coast, Australia

Agenda

I. IFIF – one global voice for our industry

II. Global Feed Production

III. Global challenges we face

IV. Working together at regional & global level

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I. IFIF – one global voice for our industry

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IFIF’s Vision One global voice for our industry

“IFIF’s vision is to provide a unified voice and leadership to represent and promote the global feed industry as an essential participant in the food chain that provides sustainable, safe, nutritious and affordable food for a growing world population.”

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IFIF is a global organisation – One Voice

• Established in December 1987 – 30 years• IFIF is made up of :

• National and regional feed associations • Corporate members• Feed related organizations

• IFIF represents over 80% of the global compound feed produced

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IFIF is a global organization & represents over 80% of compound feed production worldwide

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National & Regional Associations Corporate Members

Feed-related Organizations

AdisseoAFIA, USAAFMA, South AfricaAjinomoto EurolysineAlltechANAC, CanadaBASF SECargillCFIA, ChinaDiamond VDSMElanco

EvonikFeedlatina, Latin AmericaFEFAC, EuropeFEFANA, EuropeJFMA, JapanKaesler Nutrition GmbHNuscience, Agrifirm Group NutrecoSFMCA, AustraliaSindirações, Brazil

IFIF Board of Directors 2018-2019

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IFIF’s Mission• Represent the global feed industry with international governmental

organizations and agencies, including the FAO, WTO, WHO, OIE and CODEX Alimentarius, on crucial global feed and food issues.

• Promote science-based solutions and information sharing for the feed industry by facilitating global forums, such as the Global Feed & Food Congress (GFFC) and the International Feed Regulators Meeting (IFRM).

• Promote a balanced regulatory framework to support a fair global playing field, facilitate market access and support the competitiveness of the feed and livestock industries.

• Expand the global network of national and regional feed associations and promote the adoption of international standards and global equivalency.

• Continue to support and encourage the sustainable development of animal production.

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IFIF’s 3 strategic Pillars of work & priorities

Sustainability Regulatory & International Standards Education and Sharing of Best Practices

II. Global Feed Production

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Source: IFIF / FEFAC

Global Animal Feed Production over 1 billion tonnes worth over $ 400 billion

Source: 2017 IFIF estimates / National & Regional Associations 12

4 countries produce 60% of compound feed

Source: 2017 IFIF estimates / National & Regional Associations 13

Asia Pacific region produces ca. 368 million tons – 36% of global total

Source: IFIF estimates / National & Regional Associations

4%

36%

24%

15%

3%

18%

Feed prod. % of global total

Africa

Asia Pacific

Europe

Latin America

Middle East

North America

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Australia in top 30 Producers globally -ca. 9 million tons

Source: IFIF estimates / National & Regional Associations

9 1418

18

18

187

Feed prod. Million mt

Australia

Philippines

Vietnam

Thailand

Indonesia

China

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Almost half of compound feed goes to poultry

Source: 2017 IFIF estimates / National & Regional Associations 16

World Protein Production 2016-2017Million metric tons

Source: FAO Global Food Outlook October 2017 / * 2017 FAO forecast

2017* 118.2 83.669.5 117.0 1221.8833.5% ch 0.9% 4.5%1.1% 1.0% 1.6%1,4%

Poultry AquaBovine Pigs

2016 117.2 80.068.3 115.8 1203.1Total

821.8

Milk

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III. Global challenges we face

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United Nations

The Key Drivers For Meat Demand

Global Population Increase+

Global Rise in Per Capita Income(GDP)

World Population Growth & Meat Consumption

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World Population Growth & Meat Consumption

Source: UN

Billion people Million Tons

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Global Food outlook 2050 – regional trends

• IFIF anticipates significant feed production growth in Asia, Africa and Latin America.

• Expect to see wider geographic Europe, such as Russia, Romania and Ukraine, and certain regions in Africa catching up quickly on feed and food production.

• Continued strong population & animal protein growth in Asia. • Changing consumption habits:

– e.g. Chinese consumer eating more sugar , coffee, and meats (including processed).

– Indian consumer moving from only 4Kg meat / year upwards.

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In 2050 we will be 9 billion people in the world…

…and the need for food will be 60% higher than today

How do we feed this population?

The FAO forecast

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FAO Outlook 2010 to 2050: times 1.6! Animal protein / million metric tons

2050 201.9 113.7107.5 150.3 1,693.11,119.7

Poultry AquaBovine Pigs

2010 98.9 59.966.7 109.3 1,057.7Total

722.9

Milk

Source: FAO Global Food Outlook November 2012/ FAO World agriculture towards 2030/2050 - 2012 Rev / OECD FAO Ag Outlook 2013

1.6XIn 2050: meats 433.1 million tonnes - + 1,3% APRaqua 113.7 million tonnes - + 1.6 % APRmilk 1119.7 million tonnes - + 1.1 % APR

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FAO Stats

Meat & Fish production will increase almost 2 fold ...

…will this represent the production of feed,

grains and cereals at the same rate?

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The sustainability challenge:

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• Produce more • Using Less • At an affordable cost to consumer

6FsMany competing for the same resources

Feed Food

Fiber Fuel

Forests (planted) Farma

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Keeping it affordable

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% share of family income spent on food 20% 5% 70%

Brazil Europe / US Africa

What does this mean for feed industry?

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• Efficiency, Science & Innovation • International Standards, e.g. CODEX • Good Manufacturing Practices

But sustainable is also: Safe Feed & Safe Food

• Sustainable also means: feed safety and quality, and adhering to international standards

• Animal feeding plays a leading role in the global food industry and feed is the largest and most important component to ensure the sustainable production of safe and affordable animal proteins.

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IV. Working together at regional & global level

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The challenge: Sustainable Feed & Food

• How to meet increased demands by consumers given increase in world population to 9 billion by 2050 sustainably, safely and affordably

• IFIF works on: 1. Facilitates Expert Dialogue at regional & international level with

industry & regulators 2. Expert Input to Feed Standards Development 3. Work with Codex on Feed Safety4. Work on Risk Management & Capacity Development

• IFIF aims to strengthen communication with the whole feed & food chain to achieve the above and promote our industry

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IFIF works with partners along the chain Supporting the global feed industry

International Feed & Food

Safety

WTO

(IFIF STDF grants)

FAO

(IFIF FAO MOU)

OIE

(IFIF OIE Collaboration

agreement)

Codex Alimentarius

(IFIF Codex recognized

NGO)

IFIF

Regional & National Associations

Corporate Members

Feed related Companies

Agri-Chain Partners

Global groups

Private Sector

WHO

(Feed expert group with

FAO)

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Agri-Chain partners include: • International Dairy Federation (IDF)• International Egg Commission (IEC)• HealthforAnimals• International Fertilizer Association (IFA)• International Marine Ingredients Organization (IPPE)• International Meat Secretariat (IMS)• International Poultry Council (IPC)• World Farmers Organisation (WFO)

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IFIF’s 3 strategic Pillars of work & priorities

Sustainability

Regulatory & International Standards

Education & Sharing of Best Practices

Specialty Feed Ingredients Sustainability (SFIS) project

International Feed Regulators Meetings (IFRM)

FAO IFIF Manual of Good Practices for the Feed Industry

Global Feed LCA guidelines Institute - globally applicable feed LCA and metrics

International Cooperation for Convergence of Technical Requirements for the Assessment of Feed Ingredients (ICCF)

IFIF Global Animal Nutrition Programme 'Train the Trainer'

Partnership on Livestock Environmental Assessment and Performance (LEAP)

Engage with Codex to establish science based standards for feed safety and trade

Feed Safety Multi-Stakeholder Partnership

Global Agenda for Sustainable Livestock

OIE collaboration

6th Global Feed & Food Congress

Nutritional Innovation to Promote Animal Health WG

Guidance on implementation of the Global Harmonized System (GHS) Project

Guidance on International standards for contaminants in feed Project

Sustainability

Regulatory &

International

Standards

Education &

Sharing of

Best

Practices

Specialty Feed Ingredients

Sustainability (SFIS) project

International Feed Regulators

Meetings (IFRM)

FAO IFIF Manual of Good Practices

for the Feed Industry

Global Feed LCA guidelines

Institute

-

globally applicable

feed LCA and metrics

International Cooperation for

Convergence of Technical

Requirements for the

Assessment of Feed

Ingredients (ICCF)

IFIF Global Animal Nutrition

Programme 'Train the Trainer'

Partnership on Livestock

Environmental Assessment

and Performance (LEAP)

Engage with Codex to establish

science based standards for

feed safety and trade

Feed Safety Multi

-

Stakeholder

Partnership

Global Agenda for Sustainable

Livestock

OIE collaboration

6

th

Global Feed & Food Congress

Nutritional Innovation to

Promote Animal Health WG

Guidance on implementation

of the Global Harmonized

System

(GHS) Project

Guidance on International

sta

ndards for contaminants in

feed

Project

Sustainability

Regulatory & International

Standards

Education & Sharing of Best

Practices

Specialty Feed Ingredients

Sustainability (SFIS) project

International Feed Regulators

Meetings (IFRM)

FAO IFIF Manual of Good Practices

for the Feed Industry

Global Feed LCA guidelines

Institute - globally applicable

feed LCA and metrics

International Cooperation for

Convergence of Technical

Requirements for the

Assessment of Feed

Ingredients (ICCF)

IFIF Global Animal Nutrition

Programme 'Train the Trainer'

Partnership on Livestock

Environmental Assessment

and Performance (LEAP)

Engage with Codex to establish

science based standards for

feed safety and trade

Feed Safety Multi-Stakeholder

Partnership

Global Agenda for Sustainable

Livestock

OIE collaboration 6

th

Global Feed & Food Congress

Nutritional Innovation to

Promote Animal Health WG

Guidance on implementation

of the Global Harmonized

System (GHS) Project

Guidance on International

standards for contaminants in

feed Project

Pillar 1: Sustainability

• IFIF/ FEFANA Specialty Feed Ingredients Sustainability Project (SFIS) – establish positive role of SFI’s on the environmental impact of livestock production (poultry / pigs)

• Global Feed LCA Guidelines Institute (GFLI) - develop global Feed LCA Guidelines database to measure environmental performance of the livestock sector

• FAO-led Partnership on Livestock Environmental Assessment and Performance (LEAP) - developed Feed LCA Guidelines & improve environmental performance of the livestock sector

• Global Agenda for Sustainable Livestock – addressing UN Sustainable Development goals with stakeholders at global level

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Pillar 2: Regulatory & International Standards

IFIF collaborates with the FAO, WTO, WHO, OIE and CODEX, to help set effective international regulatory standards for the whole feed chain, and aims to harmonise these globally, ensuring its safety and access to markets in order to provide safe feed & food and facilitate fair trade.

• International Feed Regulators Meeting (IFRM)

• International Cooperation for Convergence of Technical Requirements for the Assessment of Feed Ingredients (ICCF) covering Canada, European Union, and United States

• Codex Alimentarius Feed related work

• OIE formal collaboration

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Regulatory and International StandardsE.g. Work with Codex on Feed Safety

• Feed safety is relevant to Codex work as it impacts on the safety of food

• Participation of feed experts in Codex work providing information & data to allow Codex to take into account the animal feed sector and also contributes to keep feed safety high in the agenda of Codex– Task Force on Animal Feeding; input into Guidelines on

Application of Risk Assessment for Feed (CAC/GL 80-2013) & Guidance on Prioritizing Hazards in Feed (CAC/GL 81-203)

– Committee on Contaminants in Foods (CCCF) – Committee on Pesticide Residues (CCPR) – Committee on Residues of Veterinary Drugs in Foods (CCRVDF)

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Guidance for implementing GHS standards

GHS: Globally Harmonized System of Classification and Labelling of Chemicals.

Background: GHS is under implementation worldwide.Scope and requirements for feed ingredients and their mixtures not clear, which leads to different positions between countries and between operators which can create unfair level playing field.

Objective: Provide guidance and tools to operators and countries on implementing GHS requirements worldwide to support an harmonized approach.

Assessment status of implemention in the countries

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Contaminants Project- global project

Background: At international level recommended standards exist for contaminants in food additives but not for feed additives, making risk management decisions difficult. This may also impact on regulatory compliance of internationally traded specialty feed ingredients.

Objective: To establish and maintain an appropriate international list of contaminants standards for ingredients and their mixtures for safe feed manufacture reflecting a risk based approach.

Database covers: Australia, Brazil, Canada, Chile, China, Colombia, Europe, South Africa, USA and Vietnam. Limits/tolerances/action/guidance levels (“limits”) for contaminants in feed. Thank you to FIAAA and the graduate students at the University of Melbourne !

Pillar 3: Education & Best practices

• IFIF & FAO “Feed Manual of Good Practices”

• Capacity Development: IFIF Global Animal Nutrition Programme

• Annual IFIF FAO Meeting

• 6th Global Feed & Food Congress 2019 in Bangkok, Thailand

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Education & Best practicesE.g. IFIF FAO Feed Manual

• 2010: IFIF – FAO Feed Manual

– An unprecedented collaboration between private sector and International body delivering practical guidelines to implement the Codex Alimentarius Code of Practice on Good Animal Feeding

– Promotes the spreading of good manufacturing practice and general principles on the production of safe feed ingredients and their mixtures

– An unprecedented collaboration between private sector and International body

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Education & Best practicesE.g. Capacity Development • Capacity Development for Feed Safety

– IFIF / FAO “Feed Manual of Good Practices for the Feed Industry” to increase safety and feed quality at the production level.

– IFIF Global Animal Nutrition Programme 'Train the Trainer’: Develop the capacities of the relevant stakeholders to ensure the production and supply of safe feed (Nigeria, Tanzania, and Ghana)

• Support setting up of feed regional associations– e.g. Feedlatina, SAFMA, ASEAN

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Our challenge is a global one . . .

IFIF Members represent over 80% of global feed production.45

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Location & date

• Where: Bangkok, Thailand - heart of a fast-growing region for the feed and food sector.

• When: Monday to Wednesday, 11-13 March 2019.

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48

Location

‘The future of feed & food – are we ready?’

6th GFFC Theme

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6th GFFC Theme

The theme ‘The future of Feed & Food – are we ready?’ links to the global challenge to provide safe, affordable, nutritious and sustainable animal protein sources through innovative solutions to feed 9 billion people by 2050.

50

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1. Digital Revolution 2. Sustainability3. Feed & Food Safety4. Nutritional Innovation5. Global Regulations & Policy 6. Markets & Trade 7. Leadership 8. The future of Farming Systems 9. Global Leaders Panel: “The future of feed & food”

6th GFFC Plenary topics

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How can we work together? Looking ahead

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• Promote national & regional feed Associations cooperation

• Speak as one voice to international stakeholders

• Promote science-based decision making

• Continue to defend new technologies & innovation

• Work towards Fair Trade

• Work together to measure & benchmark envi. impacts of the feed chain

• Work towards regulatory harmonisation

How can we work together? Looking ahead

• You are building a stronger unified voice for the Asia Pacific region.

• And we can help bring your voice to international stakeholders and facilitate the collaboration with the other world regions.

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Thank you!

alexandra.athayde@ifif.org

www.ifif.org

For more information please contact:

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mailto:alexandra.athayde@ifif.org

Supply Chain Opportunities and Challenges: A Global Feed Industry perspectiveAgendaSlide Number 3IFIF’s Vision �One global voice for our industryIFIF is a global organisation – One Voice IFIF is a global organization & represents over 80% of compound feed production worldwide Slide Number 7IFIF’s Mission�IFIF’s 3 strategic Pillars of work & priorities� �Slide Number 10Global Animal Feed Production over 1 billion tonnes worth over $ 400 billionSlide Number 124 countries produce 60% of compound feed Asia Pacific region produces ca. 368 million tons – 36% of global total Australia in top 30 Producers globally - ca. 9 million tonsAlmost half of compound feed goes to poultryWorld Protein Production 2016-2017�Million metric tonsSlide Number 18Slide Number 19Slide Number 20Slide Number 21Global Food outlook 2050 – regional trendsThe FAO forecastFAO Outlook 2010 to 2050: times 1.6! �Animal protein / million metric tonsFAO StatsThe sustainability challenge: 6Fs�Many competing for the same resourcesKeeping it affordableWhat does this mean for feed industry? But sustainable is also: Safe Feed & Safe Food Slide Number 31The challenge: Sustainable Feed & FoodIFIF works with partners along the chain �Supporting the global feed industryAgri-Chain partners include: IFIF’s 3 strategic Pillars of work & priorities� �Pillar 1: SustainabilityPillar 2: Regulatory & International Standards Regulatory and International Standards�E.g. Work with Codex on Feed SafetyGuidance for implementing GHS standardsAssessment status of implemention in the countriesContaminants Project- global projectPillar 3: Education & Best practicesEducation & Best practices�E.g. IFIF FAO Feed ManualEducation & Best practices�E.g. Capacity Development Our challenge is a global one . . . Slide Number 46Location & date �Location�6th GFFC Theme�6th GFFC Theme��6th GFFC Plenary topics �How can we work together? �Looking aheadHow can we work together? �Looking aheadThank you!