Bio-economy between Food and non Food: The Italian Way

Bio-economy between Food and non Food: The Italian Way Bio-economy in Europe András Sebők Chairman of Research and Development Expert Group of Food&DrinkEurope

Bio-economy concept An approach for integrating all inputs from primary production sectors agriculture, forestry, fisheries processing industries food, bio-based products, bioenergy along the whole value chain to develop the most efficient and sustainable production and exploitation of biological resources for food, feed, bio-based products, bioenergy to address mayor interconnected societal challenges food security, managing natural resources, sustainably, reducing dependence on non-renewable resources, mitigation of climate change, job creation, enhancing economic growth and competitiveness through use of transdisciplinary approach and innovation Adapted from A. di Giulio (2014) Milan, 26.05.2015 2

EU Bio-economy Strategy Need for a coherent, supportive Research and Innovation policy environment Resource efficient use of biomass Trade offs between food, feed, bioenergy, bio-materials Increase agricultural productivity while protecting biodiversity, eco-systems and the environment Improving coherence and synergy between policies related to the bio-economy at EU level and encourage a similar initiative at regional and national level Support to the development of consumer markets for biobased products through market instruments Better informing consumers about product properties to promote more sustainable lifestyle Adapted from A. di Giulio (2014) Milan, 26.05.2015 3

2014 EU BIO-ECONOMY EU bio-economy turnover of 2.690 billion with 22 million employees. Sector Turnover (Billion ) Employees (million) Source Food & Drink Industry 1.186 4.4 FoodDrinkEurope Agriculture 430 12,0 COPA-COGECA Fisheries 14 0.5 FAO Paper, Leather etc. 428 1,8 CEPI Forestry 337 2,0 CEI-BOIS Others 227 1,0 CEFIC Bio-based materials Chemistry 60 (est)* 0,15 (est)* USDA, Arthur D Little, Festel, McKinsey, CEFIC Enzymes 1 (est)* 0,005 (est)* Amfep, Novozymes, Danisco/Genencor, DSM Biofuels 7 0,15 EBB, ebio Total 2.690 22 Milan, 26.05.2015 Source: CE 2014

European Manufacturing Sectors FOOD MANUFACTURING SECTOR First sector of EU Manufacturing Accounts for about 15% of EU turnover and employment 4,2 million employees 285.000 enterprises Source: Data & trends of the European Food and Drink Industry 2012 (FoodDrinkEurope)

Source: Data & trends of the European Food and Drink Industry 2012 (FoodDrinkEurope)

Maximising values from efficient, sustainable use of biological resources Identification of the benefits provided and the needs for knowledge, solutions and skills, necessary raw materials, energy, infrastructure, costs and risks, drawbacks for the main outputs for each sector, Application of transdisciplinary approach to develop new business models, evaluation of feasibility each sector should give priority on those areas, in which its value generated and performance is the best, and the types of outputs are non-replaceable leading to demand identify priorities as a starting point review, combine, adjust sector priorities to joint bio-economy priorities Improving yield, efficiency of using resources Circular economy - identification of main sources of waste generation and potential for prevention/reduction, reuse and recycling of waste Cascading exploitation of material over the whole life-cycle Transfer of knowledge, training, investment into innovation Milan, 26.05.2015 8

Role of the ETP Food for Life An operating network at EU, national and transdisciplinary level -36 National Technology Platforms (NTPs) Definining joint industry led R+I strategy : Improving resource efficiency and sustainability along the whole food value chain is one of the main priorities Systematic application of the transdisciplinary approach of innovation is one of the key methods practical experience is available and formalised NTPs involve large number of SMEs NTPs are hubs for knowledge transfer, training

Transdisciplinary chain approach: Developing new core competencies Exploring opportunities in systematic combination and exploitation of complementary resources capabilities competencies of businesses and knowledge providers along the food, feed, bioenergy, bio-based product value chains between different sectors including high-tech industry sectors (advanced manufacturing, ICT, biotechnology, materials, etc.) between industry and innovation networks to develop new, joint core competencies leading to products, services, processes with distinguishable benefits for the users, consumers resulting in a competitive edge Milan, 26.05.2015 10

Value chain approach of innovation Knowledge and solution providers from different sectors are suppliers and customers along a value chain Core competencies of supplier Key Strategic resources capabilities Core competencies of Strategic firm Key resources capabilities Core competencies of customer Key Strategic resources capabilities Core competences Core competences Core competences Core competences Sustainable Chain competitive advantage Milan, 26.05.2015 11

Main benefits provided by the food for consumers Food security: availability, affordability, accessibility - priority Nourishment/nutrition Pleasure variability, diversity Nutrition and health Tradition, culture Convenience Ethics Employment Socialisation Income for the community for public spending Milan, 26.05.2015 12

Strategic themes and the drivers for food industry needs Primary production, raw materials and ingredients Manufacturing and supply Product and packaging Food, drink and the consumer Safety Minimising contamination in production Managing safety hazards and risks in processing, distribution and sale Delivering products that are safe throughout shelflife Protecting the consumer through appropriate guidance Quality and value Ensuring suitability for purpose and proportionate cost Maintaining and enhancing quality through effective process technology Maintaining product quality throughout shelflife Exceeding consumer expectations Nutrition, health and well-being Enhancing nutritional potential Preserving and enhancing nutritional value in processing, distribution and sale Delivering nutritious products that meet dietary needs Responding to nutritional requirements and dietary habits Resilience and efficiency Securing supply and assured integrity at proportionate cost Assuring resilience and efficiency throughout manufacturing, distribution and sale Delivering safe, authentic and compliant products and packaging Building consumer trust in the supply chain Environmental sustainability Producing more with less Enabling efficient use of energy and materials with minimal environmental impact Designing product and packaging waste Minimising waste and environmental impact Skills and knowledge Developing and maintaining skills, knowledge and tools in production Developing and maintaining skills, knowledge and tools in manufacture and food service Anticipating and responding to regulatory and technical changes and their impacts on product and packaging Engaging consumers on production, process, product and packaging knowledge Source: Innovation for the food and drink supply chain, Scientific and technical needs, 2015-2017, Campden BRI 2014 13

Horizon 2020 Societal challenge 2 Sustainable Food Security Major systemic risks to the supply and quality of food and animal feed Direct impacts on the daily access to sufficient, safe and nutritious food on health and well-being of citizens and on environment. Related risks from climate change, natural hazards, energy& resource scarcity, inapproprie practices, pollution, plant and animal diseases, unsuitable manufacturing technologies, food waste, population growth, demographic changes, unsuitable dietary patterns. Need to better understand and limit risks& environmental impacts, Cope with fluctuating conditions, seize opportunities for new ways of production, processing, consumption. Focus on More resilient value chains for food and bio-based products Environmental smart and climate smart and primary production A competitive food industry Healthy and safe foods and diets for all Milan, 26.05.2015 14

Bio-based Industries PPP A major public- private effort (3.7billion EURO) investment in bio-based innovation till 2020 (Horizon 2020) Focus: - Feedstock: foster a sustainable biomass supply with increased productivity and building new supply chains - Biorefineries: optimise efficient processing through R&D and demonstrate their efficiency and economic viability at large- scale biorefineries - Markets, products&policies.develop markets for bio-based products and optimise policy frameworks Milan, 26.05.2015 Source: Bio-based Industries consortium 15

Bio-based Industries PPP- Benefits for Europe Develop the potential of waste as well as agriculture and forestry residues. Diversify and grow farmers incomes: up to 40% additional margins with existing residues. Replace at least 30% of oil-based chemicals and materials with biobased and biodegradable ones by 2030. Create a competitive bio-based infrastructure in Europe, boosting job creation, 80% of which will be in rural and underdeveloped areas. Deliver bio-based products that are comparable and/or superior to fossil-based products in terms of price, performance, availability and environmental benefits. The new bio-based products resulting from the BBI will on average reduce CO2 emissions by at least 50% compared to their fossil alternatives. Source: Bio-based Industries consortium Milan, 26.05.2015 16

Management approach to ensure resilience for sustainable bio-economy Need for monitoring and risk reduction strategies to tackle hazards (immediate shocks + long term changes) effects on animal, plant and human health hazards disturbances, shortages in availability of resources and in market demands development, applicability of the technology, unfavourable trends in unexpected environmental impacts Sustainability of use of resources Management system approach Identification of hot points, where measures can be applied and are essential to prevent an adverse situation. Milan, 26.05.2015 17

Illustration of the concept of management system approach of risk management strategies for the bio-economy Factors influencing the bio-economy - hazards Intervention actions and contingency plans Drivers (Cause of a hazard/incident) Monitoring - Who - When - What - Records Measures to support the bio-economy system - Contribution of the businesses, knowledge and solution providers and other stakeholders - Policies, systems, services, infrastructures Critical limit/level of the indicator Milan, 26.05.2015 18

Conclusions Using a chain approach for re-evaluation of the processes along whole chain of biomass production and processing - exploitation to make optimal use of available renewable resources Exploration of using transdisciplinary knowledge and available/emerging solutions from the bio-based primary production sectors and industries and high tech sectors/kets (manufacturing, ICT, biotechnology, advanced materials etc.) Identification of sources and volumes of waste and potential for reduction and valorisation Establishing and maintaining an inventory of valorisable materials Supportive policy environment, eliminating policy and legal barriers Creating demand, markets for existing and new products Considering concerns of consumers/ users consumer education and transparency Repeated evaluation of feasibility of solutions demand, costs,prices technologies may change Milan, 26.05.2015 19

Thank you for your attention Further information: Andras Sebok,- a.sebok@campdenkht.com