development of a contingency plan to ensure food supply
TRANSCRIPT
SUSTAINABILITY INNOVATION
FEED SAFETYANIMAL HEALTH AND WELFARE
SAFE FOOD
Development of a contingency plan to ensure food supply and food safety in the EU in times of crises – crisis preparedness in the inputs sector
Séverine Deschandelliers / FEFANA President
Introduction: The Specialty Feed Ingredients Industry and FEFANA
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Manufacturers, traders and premixers of specialty feed ingredients
Animal productsConsumers
Feed materials (basic nutrition)
Compound feed
AnimalsRetailers
Only 3.5% of the volume but 10% of the value
of compound feed
Total EU turnover = 5 billion Euros
Our place in the feed & food chain
SFIs for safe, efficient and affordable feedmaking animal farming sustainable
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Safety Nutrition Sustainability
Feed preservation and hygiene
Essential nutrients and optimal digestibility
Emission and waste reduction
Protecting human and animal health
Resource efficiency, animal welfare,
reduction of antibiotics
Decreasing environmental footprint
Our Industry is…
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Driven mainly by European based
companies
Globalised
Addressing societal concerns
(e.g. AMR, welfare)
Innovative
High proportion of EU based SMEs
Diverse
Approx.50% of worldwide
industry
Solutions driven
About 2/3 of FEFANA
members
Case study: Adisseo – lessons learnt from the COVID-19 crisis
Some context
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Adisseo - EU business operator – EU Productions
Chemical process
• Amino-acid (Methionine)
• Vitamin (Vitamin A)
• Trace elements (Selenium)
Bioprocess
• Enzymes
• Plus is a global supplier for various feed ingredients (vitamins, probiotics, amino acids, palatability, organic acids, mycotoxin binders)
General considerations about current feed additives business model
• Global Market – numerous feed additives and chemical ingredients located in China
• Global supply chain and “Just in time”/as needed model
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Global Supply Chain Issues encountered during the COVID-19 crisis and mitigations
1. Supply chain / logistics: 2021 worse than 2020
Sea transportation: big issue due to insufficient containers capacities & lines. Consequence of 2020.Q1Q2 reduction of demand – market demand exceeds sea transportation offer from Q32020Congestion and prioritization at ports (dockers’ COVID-19 disease and demand exceeding offer)
Intra EU road & train : no issue thanks to food chain flagged as essential business (fast lane)Mitigations : shipping slots booked 6 weeks in advance instead of 3 previously, engage in partnerships with alternative carriers and forwarders, when possible use of railway versus road or ocean shipping, preference for Premium lines and services when available and shipping via air freight in the most critical cases.
Challenges and mitigations
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2. Goods Supply: delays but no disruption
Raw materials (& energy): Good resilience due to adequate level of stock and ability to find alternative solutions/mitigation for (critical) raw materials thanks to Crisis management experience in EU chemical sites
Mitigations : no “mono-supplier”. Implementation of a “Supplier life cycle management” (supplier qualification, selection, supplier risk management). Readiness of a suppliers list for critical and associated ingredients.
! Warning no possible mitigation on raw materials that are by-products/waste of other (upstream) industries e.g. Sulfur coming from petrochemical industry.
Challenges and mitigations
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2. Goods Supply: delays but no disruptionFinished products:Mitigations to limit the impact/delays on business activities, deployment of measures in inventory management and distribution, such as increasing stock at regional level (to be closer to customers) 3. Demands (customers orders) impacts
Over reaction of the market to the crisis - customers built stocks to prevent lack of ingredients supply at their end
Feb, Mar, Apr 2020: massive EU customers orders increase (25-30% increase) - Then May, Jun: massive orders drop
Mitigation : contingency on orders not needed here (no global shortage of the finished ingredients we supply)
Challenges and mitigations
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EU Production site - Human resources: Issues and mitigations
European (and Chinese) manufacturing platforms produced at standard levels ; additional measures applied to mitigate impacts in production schedules.
Our continuity plans for our production units includes:
• Local pandemic management team and identification of essential functions. • Crisis monitoring with follow up of the spread on sites following International (WHO), national and regional authorities’ recommendations. • Hygiene and protection measures & quarantine rules recommended by the national authorities for our employees. • If needed, call for retired employees to back-up staff for associates having family obligations. • Increase offices and facilities cleaning/disinfection frequency• Strong limitation of inter-sites/plants visits, public transportation use. • Mandatory remote work for European employees working on administrative and support functions. • Hygiene and protection measures for external visitors on site, as for example for raw materials supply and transport of finished goods.
Key aspect is early consideration of the feed additives industry as essential for food chain and coordination at national level (authorities & business operators)
Challenges and mitigations
Contingency plan to ensure the EU’s food supply and food security in the
event of future crises
Proposals from the feed sector
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1. Take into account particular requirements and vulnerabilities of the whole agri-food supply chain: develop analytical tools to identify potential EU supply shortages of critical raw materials from other sectors required by the feed and food sector.
2. Ensure close coordination and communications amongst Member States, particularly important in the context of fast lane border control measures.
3. Recognize priority status for employees in the food, feed and its supplying industries and connected transportation business reg. supply with protective clothing, masks, tests etc.
4. Establish a central crisis management coordination point for critical feed and food sector associations at national level.
Proposals from the feed sector
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5. EU wide coordination of private sector monitored stocks of critical raw materials
6. Impact assessment extending to food security impacts related to planned policy measures in the context of Green Deal / F-2-F.
7. Coordinate with other jurisdictions and sectors to mitigate against artificial shortening of containers capacity and lines for sea transportation by ship owners in time of crisis.
