Challenges in animal feed production - focus on sustainable raw material supply



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Challenges in animal feed production - focus on sustainable raw material supply Cycle meeting 26. may - 2014 Hallgeir Sterten Felleskjøpet Fôrutvikling AS

Outline Global trends feed and food Situation in Norway Possibilities how can we increase self sufficiency and sustainability

Global trends Fast expansion of animal production in South East Asia and India. Expected increase of animal protein consumption of 80 % in the next 15 years. Increased volatility of feedstuff prices. Increased competition for cereals between food, feed and fuel. Increased pressure on water and agricultural soil sources. Sustainability (animal welfare, antibiotics, environment) become global issues Genetic potential of livestock animals increases. Political drive in EU for less dependency for protein Increase world population 3

Soya beans, Chicago

Global trends Fast expansion of animal production in South East Asia and India. Expected increase of animal protein consumption of 80 % in the next 15 years. Increased volatility of feedstuff prices. Increased competition for cereals between food, feed and fuel. Increased pressure on water and agricultural soil sources. Sustainability (animal welfare, antibiotics, environment) become global issues Genetic potential of livestock animals increases. Political drive in EU for less dependency for protein Increase world population 5

Etanol, 4- times increase in few years

Corn the most important feedstuff USA - 1/3 of the corn harvest is used for biofuel production Corn is food for the poor, fuel for the rich There is no politician that will turn down the corn based biofuel in the USA it is a politically suicide

Global trends Fast expansion of animal production in South East Asia and India. Expected increase of animal protein consumption of 80 % in the next 15 years. Increased volatility of feedstuff prices. Increased competition for cereals between food, feed and fuel Sustainability (animal welfare, antibiotics, environment) become global issues Genetic potential of livestock animals increases. Political drive in EU for less dependency for protein Increase world population 8

Situation in Norway Growth in production of meat, milk and eggs Pork and poultry entirely based on compound feed Milk production Milk yield increases Less forage and increased compound feed Compound feed - change in composition More concentrated in respect of energy and protein content

SLF Growth in compound feed production - ca. 20 000 t per year 2 000 000 1 800 000 1 600 000 1 400 000 1 200 000 1 000 000 800 000 Annet Fjørfe Svin Drøv 600 000 400 000 200 000-2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Protein Soybean meal 410 000 tons Increased by 150 000 tons since 2000 Rapeseed meal approx. 100 000 tons Corn gluten approx. 40 000 tons Norwegian livestock production has become dependent of imported soya and rapeseed meal Self sufficient degree below 10%

Imported soya protein «Norwegian agriculture is just a boatload away from the accident. A monthly ship delivery of soybeans from Brazil is what keeps our livestock production running (Aftenposten, mars-2013)

World cereal production( million tonnes) and utilisation (FAO,june 2013) 2600 2400 2200 2000 1800 1600 1400 1200 1000 1997 2001 2005 2009 2013pro utilisation production Schothorst Feed Research 13

Datafra SLF O. N Skuleberg. Norske Felleskjøp Økt husdyrproduksjon - forbruket av kraftfôr har økt med 233 tonn fra 2003 2 000 000 1 800 000 1 600 000 1 400 000 1 200 000 1 000 000 800 000 Annet Fjørfe Svin Drøv 600 000 400 000 200 000-2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Norwegian grain and compound feed in the future 3 500 000 60% 3 000 000 Increased demand for grain and compound feed 50% 2 500 000 40% 2 000 000 1 500 000 Lack of grain (import) 30% 1 000 000 500 000 Decrease in Norwegian production 20% 10% - 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Andel norsk Kraftfôr & matkorn Norsk korn "Underskudd" 0% Kilde: SLF, Norske Felleskjøp og egne vurderinger

Possibilities how can we increase self sufficiency and sustainability Protein Use of co-products will become more important Protein of animal origin Meat and bone meal - Forbidden in animal feed since 2001 Products approved Blood meal, gelatin, Ca-phosphates, egg shells Hydrolyzed protein from monogastrics - poultry and swine (viscera, cuttings, bone, feathers/bristles)

Enzymatic hydrolysis Protein hydrolyzate

Products Protein Oil Bone/minerals

Hydrolyzed animal and marine protein Highly digestible protein Ideal aminoacid profile (biological value) Possible bioactive properties Low processing cost compared to meal

Give the cows Norwegian grain instead of palm oil (Nationen, march 2014) The drive of today for increased milk yield and larger farm units, makes it difficult to utilize Norwegian feed recourses

Animal and marine oil Animal fat used in feed for monogastrics today Marine oil Positive due to EPA and DHA Risk of off flavour and reduced shelf life Hydrogenation? (herdet marint fett) Alternative to imported palm oil, rape seed oil, soy bean oil

Carbohydrates Starch and different fibre fractions DDGS - Distiller s dried grains with solubles (ethanol production) Protein, fat, fibres

Summary Is it possible to produce animal feed in Norway in a more sustainable way Use of co-products (Cycle-project) Protein (animal and marine) Novel feed materials Macro- and micro algae Celluloses fermented and fed directly Yeast production based on celluloses Insects Drivers society more concerned about Recycling, less import, C foot print