Bruce Ross
October 21, 2016
RGC at NRA Convention International Market Forum
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Major EU issues Remember – EU policy shapes the rendering industry’s business environment Most important events in the last year BREXIT (and not just because I’m a Brit) Continued low number of BSE cases Relaxation of EU TSE regulations
Major upcoming developments BREXIT and other trade opportunities Renewable energy policy post-2020 October 21, 2016
RGC at NRA Convention International Market Forum
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BREXIT – “sunlit uplands”?
October 21, 2016
RGC at NRA Convention International Market Forum
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Or a sort of hell?
October 21, 2016
RGC at NRA Convention International Market Forum
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Reality set in last week
UK consumers realise for the first time that BREXIT affects them when Unilever tells TESCO that it is hiking the price of Marmite by 10%!
October 21, 2016
RGC at NRA Convention International Market Forum
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Continued low n° of BSE cases In 2015 provisional n° is five cases (three classical) 11 cases in 2014 (three classical)
Seven cases in 2013 Positive background for developments Niels Nielsen
mentioned Allows: BSE status changes, SRM reduction, more domestic sales, possible trade opportunities
October 21, 2016
RGC at NRA Convention International Market Forum
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BSE cases in graphic form
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Relaxation of feed ban • Commission ready to allow poultry PAP in pig feed ….. • ….. and pig PAP in poultry feed
• Could reverse that order due to the lack of a reliable test to
detect ruminant protein presence in feeds • EFPRA wants ruminant PAP allowed for export for pet feed • Commission ready to make a proposal this year, but wants controls to ensure it’s CAT 3 and goes to pet feed • The last point is important for other trading countries
October 21, 2016
RGC at NRA Convention International Market Forum
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Invoking the OIE • On the ruminant PAP for pet food issue, and other issues,
Commission and EFPRA are invoking international standards, especially OIE guidelines • EFPRA wants the EU to follow OIE standards in domestic legislation and internationally • This is in line with NRA thinking • Obviously the NRA will seek to cooperate where possible
October 21, 2016
RGC at NRA Convention International Market Forum
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EU FTAs – difficult atmosphere • CETA hanging by a thread. Signing ceremony on Oct 27? • • • • •
There’s an EU Summit happening right now Will Trudeau be on the plane to Brussels? Donald Tusk (Council President) said yesterday it "could be our last free trade agreement, if we are not able to convince people that we negotiate to protect their interests" TTIP on hold; no recent discussion of tallow trade Other EU FTA talks include Australia, New Zealand, China, ASEAN, MERCOSUR, India etc at various stages of development But strong anti trade movement at present
October 21, 2016
RGC at NRA Convention International Market Forum
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German anti-globalisation protest
October 21, 2016
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More seriously about BREXIT • UK to leave the EU by Spring 2019
• Canada & US could negotiate FTAs with UK • But it will take time • Officials but not politicians talking for now
• Could there be opportunities for NRA members? I guess
more for fats than proteins
October 21, 2016
RGC at NRA Convention International Market Forum
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LET’S LOOK AT CURRENT TRADE
October 21, 2016
RGC at NRA Convention International Market Forum
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Existing Trade in UCO UCO exports are worth keeping – cf. Kent’s data UCO exports under threat – FOSFA action
• FOSFA put UCO/UCOME on ‘List of banned Immediate
Previous Cargoes’ in April • EWABA and NRA objected. EWABA might take legal action • UCO: continuing uncertainties in Germany …. UCO exports under threat – ePURE action
• • • •
ePURE (EU bioethanol org) undermining UCOME Trying to regain initiative lost in ILUC Directive Want crop-based fuels (esp bioethanol) favoured again Let’s look at why
October 21, 2016
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The 2030 Strategy & biofuels Binding target figures for 2030 were set in 2014 • Aims are GHG reduction of 40%; renewable energy & efficiency increase of 27% at EU level • Member states decide how to contribute • New renewable energy Directive RED II awaited • Plus an updated EU bioenergy sustainability policy Biofuels post-2020 – the current view if not changed • No longer target for renewable energy in transport • No more double-counting • Member states decide if they want to promote biofuels October 21, 2016
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RED II & biofuels Possible approach • Commission might respond to calls to promote some fuels • But unlikely to be mandates or targets post-2020 • RED II in December 2016 could contain: • volumetric minimum incorporation rate for biofuels, applied to oil companies • counted against the overall renewable energy target • tie this to existing availability of sustainable feedstock • Attacks on the availability or sustainability of feedstocks, eg. UCO, could therefore be very damaging • Tallow-based biodiesel could be attacked too October 21, 2016
RGC at NRA Convention International Market Forum
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ePURE and ECOFYS • Farmers and ePURE worried crop-based biofuels will be
forced off the market after 2020. Fighting back
Report on imported US UCO & ILUC • ePURE commissioned report (‘Importing used cooking oil for biofuels risks increasing transport carbon emissions – new study’) from ECOFYS • It targets UCO from the US to the UK • Claims UCO has ILUC factor as UCO exported to the EU for fuel is replaced by soya oil in US feeds EWABA/NRA fight back • Rebutted report and the Commission agreed • But these are just the first shots in a long battle October 21, 2016
RGC at NRA Convention International Market Forum
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How to prepare for battle? We need to respond. Here are some possible NRA actions (with EWABA) • NRA to provide basic data on UCO availability and trade in • • • • •
UCO for biofuel NRA to provide data to show UCO not replaced by soy in US feeds Might include nutritional info on replacement values NRA could contribute to a joint study with EWABA to prepare for future rebuttals of ePURE attacks Those attacks will come. Debate in European Parliament and member states will be difficult We’ll look at any other good ideas
October 21, 2016
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My parting shot Vegemite is a poisonous imitation from Australia. It should be avoided and is certainly not to be confused with the real thing – Marmite – right Andy?
October 21, 2016
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To follow anything up …… Bruce Ross Ross Gordon Consultants SPRL 17, rue Dekens B-1040 Bruxelles Tel GSM/cell E.Mail
October 21, 2016
: : :
00 32 2 736 5094 00 32 476 423 942
[email protected]
RGC at NRA Convention International Market Forum
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