Commission suggests incentives to reduce dependency on protein in animal feed

4 months ago 21

EU-specific support for oilseed production and a joint public-private effort in research are the key elements to increase the supply of EU-made proteins for animal feed, the bloc’s executive recommended in a study published today (24 May).

Faced with increasing dependence on third countries for its protein supplies, the European Commission drew up a strategy that focuses on diversification.

“The challenge of diversification is to implement different combinations of levers adapted to the needs and conditions of the agricultural sectors and adapted to the various EU regions and the various types of farms,” stressed the authors of a study, commissioned by the directorate general for agriculture of the Commission and published on Friday (24 May).

Animals’ feed, particularly pigs and poultry (monogastric animals), is the sector most dependent on protein imports from third countries. Only 29% comes from within the EU, the study states.

According to the released data, 23% of oilseed cake and 3% of soya cakes are produced in Europe, the rest being largely imported from the Americas for the conventional sector, and from Africa or Asia for the organic sector. The organic sector is less dependent on imports.

This strategy follows the publication in July 2023 by the European Parliament Research Service (EPRS), of an initial EU protein strategy, followed by a European Parliament resolution, 19 October 2023.

Coupled aid

The study points to the lack of competitiveness for European grown protein crops (soya, sunflower, rapeseed and legumes), as a major obstacle to reduce dependency from 3rd countries, both in relation to imported soya and to cereal crops in competition with vegetable proteins in crop rotation.

A “substantial increase” in existing “coupled income support” for oilseed crops, “to provide a real incentive for farmers”.

Coupled aids is a particular type of subsidy, linking the Common Agricultural Policy support to specific productions, instead of being an integration to farmers’ income as the greatest part of CAP subsidies.

Once the main type of support, coupled subsidies have been marginalised in the CAP, as they can cause overproduction, undermining farmers’ efforts to follow market led demands.

Coupled aid within the CAP currently covers one million hectares, and can be extended to 7.8 million hectares. The maximum limit was set out in a 1992 agreement between the EU and United States, known as the Blair House agreement, part of the multilateral negotiations that ultimately led to the creation of the World Trade Organisation.

Fully exploiting the 7.8 million hectares potential, the “EU could provide support to an area equivalent to roughly half of the present importations, which would be already very significant,” says the study.

Harvest insurances are another available policy tool to boost protein crop production, the document highlights, recommending increases to CAP support for that solution.

Oilcakes, algae and insects

The strategy proposes promoting the production of protein-rich plants within the EU, such as soya, sunflower, rapeseed and legumes

“Most of the identified alternative raw materials intended for livestock feed are already produced in the EU and used in most member states,” the study points out.

In the interests of diversification, however, the specialists recommend replacing soya, the most widely imported feed, with “improved meals” from high-protein sunflower or rapeseed (HiPro) – or legumes, such as beans, grown in the EU.

This must be accompanied by a selection of animals that are more ‘robust’ and adapted to more diversified diets.

In the longer term, the Commission is calling for the development of alternative proteins, complementary to cultivated proteins, such as insects and algae. In a circular economy approach, the study also promotes the use of processed animal proteins (PAP) and “former foodstuff”.

All these actions must be part of “a significant research plan associating public and private research” to increase protein crops yields and “develop innovative raw materials,” the study states.

Moving livestock farms away from ports

Industrial livestock farming is currently concentrated around Europe’s major ports, and this gives “imported protein sources a competitive advantage over domestic production in the EU,” the study states.

Moving away from this pattern is part of the recommendations in the document, calling the entire industry to adapt to protein sources diversification, from collectors to processors.

The authors of the research call for the development of transport infrastructures such as trains, canals and river facilities, in order to reduce costs and “bring the protein sources from the production zones to the consumption zones”.

Developing the partnership with Ukraine

The Commission acknowledges, however, that even with a strong political will, achieving “zero importation of protein-rich products would necessarily take decades.”

The study also proposes diversifying and securing protein sources with “close partners,” such as Ukraine, in order to diversify suppliers and protect against international transport disruptions.

Reducing dependence on imported proteins requires “an organised and balanced implementation” of all the alternatives at the EU, national and regional level, concluded the experts praising the “protein plans” already put in place by Belgium, Denmark, Finland, France, Germany and the Netherlands.