July 10, 2009
EU feed price may rise on zero-tolerance GM policy
Livestock farmers in the EU may see feed prices increase significantly soon due to the EU's zero-tolerance policy for the presence of trace levels of unapproved GM plants in imported feed, according to Pedro Correa de Barros, President of European feed manufacturers organisation Fefac.
Correa de Barros was referring to the potential loss of important US soy imports following positive testing by German authorities of traces of unapproved GM corn in US soy and soymeal.
That is of great concern to the EU livestock industry which needs to source soy and soymeal from the US at least until the next South American harvest in spring 2010.
Soy prices could increase by at least EUR20 per tonne due to additional risk premiums for US soy, and could go higher if the EU could no longer import from the US due to the lack of alternative supplies from South America.
The EU is dependent on imports for more than 80 percent of vegetable proteins for which there are no substitution alternatives in the short term.
In a letter to the EU Farm Council Presidency, Correa de Barros stated that at a time when most EU livestock producers face economic hardship, the EU zero-tolerance policy may drive the farmers and feed operators out of business.
Correa de Barros said the EU has to ensure vital protein feed imports for livestock farmers and food security for EU citizens while maintaining an economically viable and sustainable livestock sector.