Environmental legislation puts pressure on food prices from 2030 onwards: Gazeta Rural

Portuguese Association of Compound Feed Industries for Animals, brings together the sector on May 8th, at the General Industry Meeting (RGI). The meeting takes place at a time when European Union legislation on deforestation causes uncertainty in the supply and prices of one of the most important raw materials for animal feed, soy. 60% of the soy consumed by this sector in Portugal originates in Brazil, country that should not accept the superimposition of international legislation on its own legislation. This is one of the topics being analyzed at RGI, where ways of promoting the circular economy and reducing dependence on raw materials from external markets are also being discussed, namely through the inclusion of insect proteins in animal feed. In this context, studies indicate availability of Portuguese manufacturers to include insect protein in their products.

With regard to the deforestation law, analyzes point to a scenario in which, from 2030 onwards, the restrictions caused by the deforestation law combined with the dynamics of supply and demand could cause increases of up to 50% in the price of commodities originating in Brazil, including soybeans, from which Portugal annually imports around 640,000 tons for animal feed, 60% of all soybeans imported for this purpose.The sector argues that the application of the European Union Regulation on Deforestation (EURD) as recommended, has harmful consequences, both for the agricultural sector and for European consumers. Based on this position, 21 Member States of the European Union, including Portugal, have already requested the review or postponement of its entry into force, claiming the impossibility of its application in a timely manner and are awaiting a decision from the European Commission. To detail the predictable consequences of implementing the law, the meeting of industrialists includes the participation of Roberto Molinari, an analyst of agricultural markets in Brazil. According to the analyst at the leading consultancy in the area of ​​Brazilian agribusiness, among other predictable impacts, an international judicial discussion is expected regarding this legislation between Europe and Brazil within the framework of the World Trade Organization and the relocation of Brazilian exports to Asia, to the detriment of Europe, if this is the only region to impose restrictions. An additional cost of 25% in the price of raw materials is also expected, exclusively attributable to traceability and certification costs.

The context justifies the presence of Pedro Cordero, president of the European Federation of Animal Feed Manufacturers (FEFAC) to address the “Future of Animal Feed in the European Union” which includes the sector’s strategic option of promoting the circular economy and being increasingly less dependent on protein from foreign markets.

In this context, the General Directorate of Food and Veterinary (DGAV) also presents a study that reveals that the inclusion of insect protein in animal feed, an option that promotes the circular economy and reduces dependence on imports, is an option viable for some feed producers in Portugal.

The meeting also reserves a relevant moment for the discussion of topics related to communication, which includes the presence of Susana Fonseca, representing Plataforma Zero. By the way, Jaime Piçarra, Secretary General of IACA, says «It is also people who don’t think like us, who help us to do better. This presence can help us find a common communication platform that points us towards ways to make food production compatible with environmental protection.”

Romão Braz, President of IACA, states «This year the themes under analysis at RGI already implement some of the solutions we have been working on that respond to the challenge of environmental sustainability. However, there is a warning: until these solutions can be at cruising speed, it is necessary to ensure the food sovereignty of Portugal and Europe and this implies commitments in the transition, namely a simpler European deforestation law that gives operators more time to adapt to new demands”.