bruce ross · ewaba/nra fight back •rebutted report and the commission agreed ... •nra to...

Bruce Ross

October 21, 2016 RGC at NRA Convention International Market Forum 1

Major EU issuesRemember – 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, 2016RGC at NRA Convention International Market Forum 2

BREXIT – “sunlit uplands”?


Or a sort of hell?


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%!

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiqwKmv8-nPAhXDKCYKHYO7D24QjRwIBQ&url=http://www.selfishmother.com/its-like-marmite/&psig=AFQjCNHsDDW9mg3_FyMMlFMjTqRTGb_qEA&ust=1477070723127340

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


BSE cases in graphic form


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


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


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


German anti-globalisation protest


http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjezOWpgurPAhWEgCYKHbeWBV0QjRwIBw&url=http://www.channelnewsasia.com/news/world/thousands-demonstrate-in/2183714.html&bvm=bv.136499718,d.eWE&psig=AFQjCNHxqLurLUE2MZXrNT2kh_5fzE52bw&ust=1477074677397411

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


LET’S LOOK AT CURRENT TRADE


Existing Trade in UCOUCO 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


The 2030 Strategy & biofuelsBinding 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


RED II & biofuelsPossible 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


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


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


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?

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjC7_3e8enPAhUDQyYKHSbVD3cQjRwIBw&url=http://www.freerepublic.com/focus/chat/3322705/posts&psig=AFQjCNF4I3fSIsJ6a2CEuDjaLTg2fDT5ag&ust=1477070279906909

To follow anything up ……

Bruce Ross

Ross Gordon Consultants SPRL

17, rue Dekens

B-1040 Bruxelles

Tel : 00 32 2 736 5094

GSM/cell : 00 32 476 423 942

E.Mail : [email protected]


mailto:[email protected]

bruce ross · ewaba/nra fight back •rebutted report and the commission agreed ... •nra to...

Documents