Trading for non-GMO soybean meal soars in Europe
Grows from zero to 25%
in one year: suppliers receiving requests from other regions
Europe's
growing appetite for meat products from animals fed non-GMO feed has
created a rapid demand for non-GMO soybean meal. According to AgJournal,
the current demand for certified non-GMO soymeal has grown from nearly
zero to nearly 25% of the European soymeal market in just one year.
Further increases are expected in the coming year.
The demand has resulted
from major European retailers' decision to sell meat products made from
animals fed non-GMO feed. In a domino-like effect, U.K. retailers including
Iceland Foods, Sainsbury, Waitrose, Marks & Spencer's, Safeway, Tesco,
and ASDA, have asked their meat suppliers to source non-GMO ingredients
for feed. Tesco and ASDA alone control 42% of the U.K. market. Other European
retailers committed to selling non-GMO meat products include France's
Carrefour, Superquinn in Ireland, Danish Crown in Denmark, Coop Italia,
and SPAR in Austria, to name a few.
"Tesco is doing this because
our customers ask for it," says Martin Cooke, Tesco's manager of technical
and strategic development. "If our customers want non-GMO, then that is
what we'll provide."
Requests worldwide
The bulk of the EU's non-GMO
soymeal comes from Brazil where plantings of genetically modified crops
are currently prohibited. A group of Brazilian soy suppliers, including
IMCOPA, Cotrimao, Braswey, BREJEIRO, and Caramuru are a few companies
meeting the EU's demand. U.S. agribusiness giant, Cargill, will establish
a river port terminal at Sanatarem in the state of Para to handle non-GMO
soybeans from Mato Grosso state.
However, Brazil's non-GMO
status may change. Monsanto aims to introduce its GM Roundup Ready soybeans
there if the government decides to allow commercial production, which
could happen this year. Consumer and environmental groups aim to prevent
this. Introduction of GM soy may increase the price for non-GMO soy due
to extra costs needed for segregation and identity preservation.
European
feed groups are contacting North America sources also. A delegation from
the European Feed Manufacturers recently visited soybean growers in Minnesota
to determine whether they can meet their needs for non-GMO. The group
also visited Clarkson Grain, in Cerro Gordo, IL, a supplier of non-GMO
and organic grains. Lynn Clarkson, president, says Greenpeace is focusing
its efforts on removing GMOs from feed in Europe and will have an impact. "They
are a credible market force in Europe, and consumers pay attention to
them," he says.
Other U.S. non-GMO suppliers
are getting calls from the EU and other countries. "We're getting requests
from big retailers in the U.K. and Europe," says Amy Nankivil, export
manager for Northland Foods, based in St.Paul, Minnesota. "They are looking
for large quantities." Nankivil says Northland has also received requests
for non-GMO soy meal and corn gluten from companies in Korea, Taiwan,
South Africa, and Israel. Jim Skiff, president of US Soy, LLC, says he
has received calls from China, Hong Kong, and the Middle East, including
Iran, about non-GMO feed. "The feed issue is spreading beyond Europe," he
says.
Other non-GMO soy exporters
India's Soybean Processors
Association recently sent a delegation to meet trade officials in several
EU nations and discuss purchasing non-GMO soymeal. Canada also exports
non-GMO soymeal to Europe. According to Feedstuffs, Australia's Industrial
Supplies Office is considering ways to capitalize on its non-GMO soy crop.
It
remains to be seen whether non-GMO soy exporters, such as Brazil and
India, will impact U.S. soy exports containing GM varieties, to Europe.
William George, of U.S. Department of Agriculture's Foreign Agricultural
Service, told AgJournal that U.S. soy exports are unaffected by the European
demand for non-GMO, but could have a negative impact if the demand continues
to grow.
The USDA's attache in London
recently issued a report predicting that if more supermarkets in Europe
commit to selling non-GMO based meat products, the demand could outstrip
the supply and force Brazil to raise its prices for soymeal. With the
burden of higher costs, retailers could be forced to allow their meet
suppliers to source soybeans and soymeal of "any origin" including GM,
according to the report.
Want "hard IP"
Another development that
may spur the demand for non-GMO soy meal is proposed EU labeling regulations
on animal feed containing GM ingredients. The proposal requires traceability
of feed at all stages of production.
If implemented, the labeling
regulations may require non-GMO suppliers to implement "hard IP" systems in order
to comply. Gerald Fowler, president of Manna International, a Canadian
traceability firm, says the trend is for European retailers, such as Tesco
and ASDA to require hard IP systems with full traceability and tight tolerances,
such as 0.1%, for non-GMO soymeal. A "soft IP" system relies on the fact
that a crop is grown in an area free of GM crops and requires little or
no GMO testing. Fowler says the growing European market for non-GMO soymeal
will belong to the countries and suppliers that can effectively provide
hard IP systems.
(July 2001)