NZFSA Review of the Feed Industry in Zealand

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1 NZFSA Review of the Feed Industry in Zealand Presentation to the New Zealand Feed Manufacturers Association 17 March 2010 Antonia Aloe, Programme Manager

2 NZFSA s mandate..to protect consumers by providing an effective food regulatory programme covering food produced and consumed in New Zealand as well as imported and exported food related products

3 NZFSA s role is to ensure that: Farmers, growers, processors and manufacturers know what they must do to produce safe food Importers and exporters understand their responsibilities in ensuring the safety of the food and food-related products they trade in, and

4 NZFSA s role is to ensure that: Our trading partners can rely on the credibility of NZFSA s assurances that food New Zealand produces meets their safety

5 Animal feeds - background Key input into the food supply chain Current, emerging and novel feed sources Changes in feeding practices New and emerging technologies used by industries Incidents in NZ and internationally Plant based feeds

6 Activities Registration of agricultural chemicals Policy development Regulatory consistency and interventions Manage incidents and compliance Risk evaluation activities e.g. risk profiling, surveys, pilot studies

7 Study Gather reliable and comprehensive data set New Zealand s current and changing feed sources and feeding practices for production animals Plant and animal origin Fish, pigs, poultry and ruminants Commissioned Prime Consulting Ltd to carry out the work

8

9 Questions Animal feed components Plant and animal sources Domestic or imported Their associated normal feeding practices Availability Feeds potentially used in abnormal circumstances

10 Literature review Questionnaire Stakeholder Interviews 25 Industry / Feed Manufacturing Representatives Nine End Users of Feed. Customs Data imports/ exports Approach

11 Literature Review Themes Causes of contamination and toxins arise from two sources: Human factors and Naturally arising causes Mainly affect feed types: Cereals Complete feeds (either plant or animal based) Forages

12 Literature Review Themes Contaminants heavy metals, antibiotic residues, mycotoxins, microbial pathogens Incidents critical failure or incomplete standard operating procedures in commercial and/ or on-farm feed mills

13 Literature Review Themes Incidents Europe and North America: organic pollutants e.g. dioxin in Irish pork incident Copper toxicosis associated with supplementary feeding of palm kernel, especially if additional salt licks were also being provided

14 Literature Review Themes Global supply chain e.g. melamine contamination of farmed fish High risk periods e.g. drought, feed shortages

15 Interview Findings Interviewees: NZ Feed Manufacturers Association Industry Associations & Companies Animal nutritionists NZ Customs import and export data

16 Interview Findings Interviewees: Contextual information e.g. current and new feeds sources, feeding practices Verification by end users for context NZFSA is in the process of validating some of these findings

17 Key findings New Zealand s production animal industries are reliant on a broad range of core and supplementary feeds Productivity gains Cost savings

18 Industry sector trends Dairy Industry Growth and intensification of the dairy industry Large increases in the manufacture of complete dairy feeds and supplementary feeding of dairy cattle

19 Industry sector trends Palm kernel imports in 2008 were 1.1m tonnes (142% increase on 2007) 90% of palm kernel fed to dairy cattle Up to 70% goes straight to dairy farms and consumed directly by cattle Copper toxicosis appears to be associated with supplementary feeding of palm kernel, especially in conjunction with salt licks

20 Industry sector trends Pastoral based industries (beef, sheep, deer, goats) Very little change in feeding patterns Limited range of single feed commodities Traditional feed regimes

21 Industry sector trends Intensive livestock industries (poultry, pigs and aquaculture) Use of different feed ingredients from time to time Often driven by changes in the price of comparative feed commodities. Amount of feed dependent on livestock numbers which is a relatively stable base General growth trend in the aquaculture sector

22 Feeding trends Industrial by-products and commercial food by products e.g. fruit and vegetables, used as livestock feeds. Pork Industry Poultry and dairy industries lesser extent New feeding systems on farms to maximise the use of these products

23 Feeding trends New and novel feeds Blended feeds Distiller s dried grains with solubles By-product of the ethanol industry Inconsistent quality Antibiotics routinely used in the production process

24 Quality assurance & risk management issues Plant based commodities Post-harvest storage Transport conditions Mycotoxin growth Supplier assurances

25 Quality assurance & risk management issues Customs data Accuracy of tariff classifications Country of Origin (Overseas hubs) Traceability

26 Quality assurance & risk management issues Anecdotal suggestions of potential risks around some practices of home millers Labelling of feeds

27 Summary Animal feed sources and feeding practices have changed in some sectors Imported and domestic sources

28 Summary Wide fluctuations in feed commodity types, their ingredients, and sources due to: Climactic variations from year to year/ region to region Commodity prices and Profitability Adverse events

29 NZFSA s work programme Existing regulatory and non-regulatory programmes in place to manage animal feeds across the supply chain We re in the process of validating some of the findings highlighted through the study

30 NZFSA s work programme Risk profiles: Palm kernel Copra Distiller s Dried Grains with Solubles

31 NZFSA s work programme Further consultation with industry bodies, feed manufacturers and end users to validate and quantify any risks Verification audits Communications Plan

32 Acknowledgments NZ Feed Manufacturers Association Prime Consulting International Ltd

33

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