Presentation Transcript

1. Coexistence in maize and soybean supply chains in Portugal

   C. Trindade, J. Ponte, F. Quedas
2. Summary Portuguese SupplyofMaizeandSoybean Interviewees StructureofSupplyChains The Market of Primary Processed Maize and Soybean Supply Chain Deals and Pricing Mechanism GM Products, GM-Free Products and Segregation Conclusions
3. 1. Portuguese Supply of Maize and Soybean Imports, domesticproductionandexports
4. PT supply of grain maize and soybean (103 tons)
5. Maize grain imports: yearly shares of quantity (ton) and value (€) of major origins
6. Exports of Portuguese maize and maize products
7. Share of soybean products in Portuguese imports
8. Yearly shares of quantity (ton) and value (€) of major origins of soybean grain
9. Yearly shares of quantity (ton) and value (€) of major origins of soybean meal
10. 2011 shares of quantity (ton) and value (€) of major origins of soybean oil
11. 2. Interviewees AssociationofMaizeandSorghumProducers (ANPROMIS) AssociationofStorers, TradersandImportersofCerealsandOilseeds (ACICO) AssociationofCompoundFeedManufacturers (IACA) Importers: Acembex, Bunge Ibérica Portugal, S.A. and Louis Dreyfus Commodities Portoperator: Silopor Certifier: SociétéGénérale de Surveillance S.A. (SGS) Agriculturaltradingpost: AGROMAIS Wholesaler: Reagro Crusher: Nutrinveste SGPS, SA., Sovena Group Mill industries: AtlanticMealsand Carneiro & Campos Starchindustry: Portuguese CompanyofStarch (Copam) Compoundfeedindustries: PoultryCompanyofCenter, S.A. (Cac) andpigindustryRaporal.
12. 3. StructureofSupplyChains
13. Importersandcertifiers Mostimporters are international marketing companies (Bunge, L. Dreyfus, Noble, Cargill), usuallywith a verysimple local structure. National: Iberol, Acembex and the Cooperative of Compound Feed Manufacturers’ Supply (Caiaca). Cost, Insurance and Freight (CIF) imports Certifiers: SGS and Inspectorate (BureauxVeritas). Usually port operators act as service providers, under loyalty agreements. Tagol and Bunge have a contract à façon, and have a terminal port and elevators of their own.
14. Portterminalsandoperators Port terminals of Lisbon, held by Siloporand by Oilseed Company of Tejo, S.A. (Tagol): 80 to 90% of maize and soybean imports. Port of Leixões, in Porto: 10 to 20%. Small ports (ships up to 5000 tons): Aveiroand Figueira da Foz. Port operators are liable for: unloading, weighting, storage and delivery to buyers of the product and quantity indicated by the IMC. Lisbon - Silopor and Tagol: unloading and storage Leixões - Company of Traffic and Stowage (ETE): unloading; LeixõesElevators (SdL): storage.
15. Otherplayers Wholesalers: Reagro(80%) and Acembex (15 to 18%) Crushers: Sovena (edible oils), Iberoland Torrejana (biodiesel) Primary processors (maize): A single starch firm: Copam Main mills: Atlantic Meals and Carneiro & Campos’ Feed industry: 125 compound feed manufacturers Valouro, (15% share), Lusiaves(production of feed and broilers), SaprogalPortugal and ProvimiIbéria: 45 to 50% share Ten largest firms: 75% share
16. 4. TheMarketofprimaryProcessedMaizeandSoybean Primary processing products are directed to food industry or biodiesel, as feed industry uses 40 to 50% grains (maize and soybean) and 50 to 60% of by-products of mills and crushers.
17. Self-supply Imports Maizegrowers Crushers Exports Wholesalers Farmers’ associations Soybeanmeal Mills Starch Feedindustry Soybeanoil Brewing Integrated Free market Foodindustry Baby food Biodiesel Others Egg/Broiler Pig Beef/Milk
18. 5. Supply Chain Deals and Pricing Mechanism
19. SupplyChainDeals Maize supply of food industry Trade agreements between maize mills and maize producers’ organizations, both in Portugal and Spain. Deliveries usually made overland, and storage facilities of producers’ associations or of the mills themselves. Supply of feed industry and soybean crushers Dealt with the wholesaler (Reagro) or the importers.
20. PricingMechanism - 1 The prices of maize and soybean are established after the Marché à Terme International de France (MATIF), MATIF corn and MATIF soya, the Chicago Stock Exchange and the cost of transport. Freight rates: Maize: 20 $/ton (Ukraine) to 35 $/ton (Brazil) Soybean grain: 28 $/ton (USA) to 30 $/ton (Brazil and Argentina) Soybean meal: 32 $ to 38 $/ton Premium price for non-GM maize Imported maize: 20 to 30 €/ton Domestic maize: 10 to 20 €/ton
21. PricingMechanism - 2 Price of maize by-products: 15% lower than dry grain price. Some compound feed producers have their feed prices indexed to the stock Exchange of Lleida. Net margin of compound feed producers’ sales to animal producers: it rates 10% and 20% for, respectively, integrated and non-integrated customers. Price fluctuations are also effected by energy cost and, for feed, by competition between manufacturers.
22. 6. GM Products, GM-Free Products and Segregation
23. Labellingandthresholds In Portugal GM-labelledproducts include: All compound feed except organic compound feed Some soybean edible oil or soybean containing edible oil brands. No other food product is GM-labelled. Negative labelling is rare Non-GM products: Some food industries do simply comply with the 0.9% threshold, others are intended to be GM-free, and use thresholds as low as 0.01%.
24. IP of GM-free products Port operations are the most problematic for IP of GM-free products: Non-GM commodities may either be unloaded from cargo-ships to smaller ships that take them to a different port terminal (Lisbon port, used by Reagro) or be unloaded by non-continuous systems and stored in horizontal silos (Aveiro port, used by Acembex).
25. IP by IMC Neither Dreyfus nor Bunge import GM-free products, though they might import from non-GM producing countries, such as Ukraine. To prevent risks of non-authorized events IMC follow one of two options: take advantage of their own IP systems in the country of origin or change the country of origin. IMC are responsible for testing, that is run by certifiers that also oversee the loads, check the cleaning of the ship and check cross-contamination at the port. IMC usually manage certification at corporate level.
26. 7. Conclusions
27. Portuguese maize and soybean supply chains are decisively contingent on imports. Feed industry is by far the major customer of maize and soybean and given its low net margins took the option of GM-labelling its products. Edible oils are also currently GM-labelled when they contain soybean oil. Therefore, the bulk of maize and soybean imports does not require segregation of conventional and GM materials, but only demands certification for the absence of EU non-authorized events. However, millers and starch industry on one hand, and meal and starch importers on the other hand, have to deal with IP of non-GM products, coping with thresholds that might vary between 0.9% and 0.01%.
28. Millers and starch industry mainly rely upon conventional maize domestic or Spanish production, contracting directly with farmers or their organizations, or imports from other European countries, such as Ukraine or France. In their own processing plants millers and starch industry easily manage to succeed in IP, as they don’t process GM maize at all. Given the price premiums for non-GM maize, individual farmers and some farmers’ associations look consistently bind to millers, in spite of the absence of integration systems. On the other hand, maize large demand by feed industry and its GM-labelling option are pushing other farmers to adopt Bt-maize to minimize corn borer damages.
29. As the purpose of this research was a comprehensive look over the supply chains, some minor players haven’t been heard. In particular, the market niche of maize bread, that involves numerous small millers, will be the focus of the continuation of this research. Another further step will be the comparison of maize and soybean supply chains of different EU and third countries. Thankyouverymuch Graziemille
30. GM-free testing Besidescertifiers’ labs, such as SGS labs in France, GM-free productimportersandmaizemillsalso use customers’ referencelabs: AtlanticMeals: Danone lab in Germany Acembexand Carneiro & Campos’ Mill: Nestlé lab in Italy.