[Music] so this session I'm gonna kick it off with one of a broader topic here sustainability goals and approaches of the German not only the German also the European feet industry and I've got the pleasure and the privilege to author rips than the European a fitment effective association fee faq and to kick it off I want to give you an overview what the production is like in the EU 28 member states you see in in red color are the members here we've got associate members full members with observing members and in total we are responsible for production of roughly 160 million tonnes and you see and Germany is currently number one of the producing countries and it's a and pacient always has been a neck-and-neck arise with our Spanish colleagues but I want to don't want to go too deep into the production numbers we want to talk about sustainability and when we talk about sustainability we always have to keep in mind what the future numbers will be like when we talk about the demand of me that we have to supply and that we have to supply the feed for and this is numbers that don't come as a surprise we more or less are all aware of these ones but they're quite important to understand in the context of the history of the German meat consumption and I want to show you and these numbers with you so we've got we've got it a total meat consumption beef pork and poultry and you clearly see in the history of Germany we are a meat consuming nation and we are mostly dominated by the consumption of pork and you see that as after the Second World War when consumption came down we had like a period where skyrocketed more or less for the next decades and I want to show you the the compound food production as well so the meat contention overall flattened in the past years but we see also that the comp production curves some man leaped off and started somewhere in the early 1990s and which is still growing today I'm summing all that because I want to skip those quickly so the current situation not only on the German free market but also in the European market is the following we do have a very high competitive and promising market but there a level of competitiveness is quite unique here so because of that there also if you tie compound feed as a commodity it's not really transport worthy it's a different sort of middle feed but when talking about compound feed it's not really transport were see so you have to produce and sort locally the increasing numbers of regulations for those uses at 90 doesn't come as a surprise me we do you live in the EU and so number some numbers of regulation kept on rising but the most important thing is the change becomes zoomit announced and perception I'm going to show you this on the graph that you already know this is and the overall meat consumption again here and if you take it over time from from the 1930s to now you basically have three phases three stages of a development so the first one is right after the war when we call the area somewhere from the 50s to the late seventies where and the situation was dominated about market saturation so and people who are hungry for me too eager for consuming and we call it in German that's a period of the big feast so this basically were the time where basic needs have to be supplied and then followed as starting with with when the market was satisfied completely and we also had the rise of discounters reshaping the world of modern grocery stores and this way where price sensitivity are took place and there's also the area where we experienced the highest number of consolidation within the feet or compound feed industry so the number of molds decreased symmetrical during this part time here of cries sensitivity and the time we are now is the time of sustainability want to be sustainable but what does that really mean unfortunate we do have to work with terms that do you have a legit claim to sustainability but but some of them are just or don't fit into that so it's and the problem is here that we have to deal with all of them more regardless of they're really sustainable or not so we have an industry have have after have answers to these questions here and going forward we do encounter that it's not only in the question but about sustainability itself but also the lifestyle people people want to live and you have to be these these questions that are raised that as I said do you ever alleged climb to you sustainability but as some of them are just claims what is also important and to note is when he when we talk about distilling and modern dice that people still drew up on the face of price sensitivity so these aspects always drag on inform the next base for the next period of time this is also true for the market saturation we all want to have full ourselves in the grocery stores and we want to have the cheap and now it's a question of sustainability so these are the mountain aspects that we have to encounter we've driven the production today just to put things into perspective if you if you follow me of this assumption if you assume for a moment that this consumption curve is a typical curve of an industrialized country or a developing country if this is true it's just as something but please follow me on that then if you put China there you would be ending up China's currently depending on the title you use consumption of 50 to 60 kg per capita and that brought my China somewhere in the area of Germany meat consumption years in the late 50s early 60s and that just gives you just a hint where we are where we're moving in next years and not mentioning India and India is not even on the list because this guy doesn't go back far enough when we talk him about India we're talking about a meat consumption roughly about 4 kg per capita and this is a population we're not talking about buildings we're talking about billion people here that are eager to consume meat and that experience economic growth and wealth and with that wealth we do see an increase in meat consumption and we have to find the right answers from the industry side s from the research side so what do we understand as an association about sustainability or always use that very traditional triangle here socio economic and ecological aspects and it is important to understand that sustainability is dynamic so what we define is sustainable today will be or probably will be over holding a couple of years maybe decades so this is always shifting and moving and this is just important to note what we're looking at and yes we as an industry we want to we want our companies to sell their products because we believe or we more we know that we have a unique selling proposition in the European Union and especially in Germany when it comes to we when it comes to quality or price reduce things that we have a unique selling proposition that we're going to use we want to use our competitive advantage we want to export our products because it's it's a good client that we have going further and when we talk about social effort aspects connecting with our economic levels we want to afford offer offer affordable products we want to export them we want to it that every social class has access to meat as a product as a food and of course yes we also want to offer of a variety of quality intracellular levels that can supply this demand on certain levels going further but also on the last week we have to focus on the ecological aspect we want you have access to the lightest breeding technology that will enable us to reduce the land use to reduce the use of pesticides in water and we also want to have access to the commodity markets worldwide and we also with our products we do have the answer to certain aspects like in Germany I come to that in a moment where problems for insular phosphate and nitrogen emissions are caused for those of you now the EU Commission push charges against Germany we are constantly exceeding our fast foot phosphate and nitrogen threshold and dr. Mirim and professor - roots but we'll put the spotlight on these topics later on but what is also important here if our consciousness sustainability for us has limits we can't become more sustainable if we can't assure the quality of our products in the safety of our products and this is very important to understand that this is absolutely it sounds like like a Trump slogan food safety comes first but this is also very important for us and we can't stress this enough so I wonder in in in following slides I want to show you three aspects that we're currently working with or that you experience when we're talking about sustainability in in the European context and it was mentioned in in the first session when we were talking about a protein sources and it's always a problem about how do we how do we supply ourselves with sustainable commodities and obviously saw a is what one of the commodities that is highly controversial discussed when it comes to many cultures when it comes to deforestation violating labor laws and so on but you understand the issue around that when these problems are wall evolved and we had a couple of services and consultancies and NGOs offering their services and certifying commodities and there's nothing wrong with that you can certify but what you have to understand certification is not the Holy Grail it is a tool in the toolbox that we can use to become more sustainable and most of all what is also very important but what some people don't like to hear certification is also a business model and there's nothing wrong with that again certification is a market as any other which has a suppliant the demand and we don't want to tamper with the supply and the demand especially not with the supply create the demand the supply will follow so we had to fill out the deserts guys I am for for a fee fact this was initiated by by FIFA we had a couple of these certification standards and no one and create a lot of chaos so what what eventually was the idea okay we have a lot of certification the the one focus and this one that I don't focus on that aspect so let's put a benchmark here that defines a limited standard and this what called the sourcing guidelines and this list this list is actually not complete we've done dry fish company also stepped into this and we have these so we define a sustainability standard that goes across a lot of already implied certifications to ensure that we supply ourselves with sustainable and reliable protein sources and s in which is most important so your meal so this certification standard is verified by the ITC it's like International Trade Council and having a website we can look at on what are the standards like ever look at this in Germany I can say we have about sixty sixty to seventy percent of our commodities are under these sorts of guidelines and what you follow I will the next topic this topic is is a very German one in Germany we have that Association called flock and that flock is is the organization that or Association that focus on the promotion on non GM food and that thing leaves us with a problem is it's a double-edged sword for us so because there the market in Germany and the EU is so highly contested the GM food which obviously needs GM GM free feed is another market so where our companies can supply to you but at the same time the same certification negates the positive effect of the latest breeding technology which we favor so but nevertheless this GM free food or a new GM free frite is was highly pushed by the poultry industry and by the German dairy industry and we see it slowly but surely moving on through all product groups here and as I said it leaves us not in bewildering but it's a challenge for us to fight around balance here but we as I said again we do have to stress this that for us gmo-free g GM free food is not the way forward for us because we want to supply also in the terms of international markets we want to have access to you to the crops that are grown in the years after they are grown in South America so this is very important for us that we do understand that GMO free food although it's very controversial discussed but in for us it has nothing to do with the actual effect of sustainability so let's move on we do have this also a very important thing when we coming through this actually one of the three lost option wanted create here the the modern livestock production is very much under critical observation and they're good legit claims that why it's the case but when you talk about how do you access that through science how we do we make it picture bull that what are the effects and there have been a couple of variety of models being used for the livestock production and what all the problem is that we see all these model have been against against the the modern production size and never have been created entire a lifecycle assessment and this is what we try to promote here we call it the product environmental fruit on the path this what we've working on it's quite ambitious project here the Eco EU Commission launched that Prout program and we followed in there was a tender for who can supply a system that can assess the co2 emissions caused by animal husbandry so the idea the body call it the GFL I we will provide a harmonized methodology to assess the co2 emission of our compound feet and I come to that later how that works we collected up front roughly about 2200 data set run all over the world and the idea is basically that we that year as a compound free tradition now when a back of compound fit is produced on your facility and it's transported to the farmer there is a check on the back that clearly claims this back of compound fee created a certain amount of co2 emission when it right when it reaches the farmer so with all that we want to improve the International comparability and to do and that eventually will alter the formulation process it will change the formulation process because now we do have the extra number behind this and it's not only for for for for the feed production matters also we certain bruit sector so the EU Commission is putting these these category rules as we say through all product groups here and just to give you an idea how that works here we do have a website it's a software we're operating so it basically comes down you are a producer of a certain compound feed your mill is located in a certain area you define it by the the geo coordinates longitude altitudes and so on and you say I purchased my commodities through that harbour in North America through that harbour in in Brazil I imported through the hub of Hamburg through the harbor of Rotterdam and my facility is somewhere maybe close to the Dutch border and I have to transport the and it has a certain amount of kilometers when that feed is processed and we go get a bit cheaper you to give you an understanding this is a snapshot from the program I made this from the pilot phase here you see that you can define your compound feed up to the smallest ingredients here and and you can put the folks on this one here and you have it can change it what your what your commodity looks like you if you don't amaze your other product put it in you can alter these ones and by the end of the day what the literary comes down to is that we want you there or defeat industry do you have if a CEO to feed print what we call it so it clearly says the okay for transportation you have in this case yeah eighty-five equivalent are co2 emissions here and you break it down you you put it on a tag you put it on your back and you bring it to the farmer and this is a service we want to offer and we put it into market very soon we always be operating with the pilot face now that it's now more or less closed but it's again we this just one of the tools wanna put to the market and we don't and the market should decide where that want to use this tool or not we as an association we can highly recommend this stuff because the University of our hunting and has been highly involved in this topic and I think they did an excellent job here and very very much important is that what we do see this international comparability but also we are also dependent on the data that we get from countries and that will help us so the data is either supplied by the countries south or its purchase through the EU Commission to find a proper solution how we really make sustainable efforts in the future and and the thing is it's not only about sustainability but how to make products in terms of sustainability marketable that's a most important thing if you have if you in science and you have a great product that's one thing but you met to make that product marketable that's the biggest issue that we have and that's also the biggest challenge we have but there's also the most important thing that we have to so and already come to you to my last slide here when you talk about sustainability we talk about certification and I've mentioned that again certification is one tool in toolbox and we want a debater as a at the thriving market please don't oversupply we see it in Paul Moyer we also see it and certified soya beans that to certain act extends the market are satisfied because the demand is not given and NGOs push for that yeah you must certify you mister - yes you can certify all night long but if you don't have the demand for certified commodities then you won't progress and that's the biggest problem and this is where the consumer comes in by the end of the value chain above the consumption chain the consumer has to pay a premium because these efforts that we put in in in certification measures in the transportation in programs that we develop have to have additional price and that price is paid by the consumer eventually and people forget about that or maybe want to forget about it in the era where people are very price sensitive this issue is very hard to push on their agenda as a city if you reimagine my on that slide that I showed you where the German feed comes and slowly slows down but we come from it from price incentive ET and total market satisfaction and now we want to put that as well but people don't really want to put them where they want to pay the premium this may because I also tea to those of you come from overseas that I mean you look at the German consumption curve that you might know what lies ahead of us so please please do learn from us from our advances but also please do learn from our mistake I think this is the most important issue when you encounter steady growth in consumption pull the right triggers now better now then then later so this is this one I give you at hand also when we talk about sustainability the most sustainable thing is reliable a reliable political environment a reliable market environment especially in times of these where and was mentioned in the first plenary session where commodities become a weapon and all this efforts for instance that that we we put in place with the Brazilian farmers here and we negotiate please process I'm the sustainability please sign here please improve this please improve that and also that is gone in a blink of an eye he's someone I don't want to mention name you all know them know him by the way twittered Twitter the wrong things stepped in a trade war with another very promising economy here and this is just very unfortunate for us very unfortunate I don't see the point why this had to happen it could have been avoided let's move on the third pillar or the fourth pillar when we talk about sustainability we have to always we're always in the danger of especially it's a very German thing that we try to create spot markets and this really the biggest area we shouldn't create spot markets we should create a global market when comes to sustainability in order to do so we have to have common environmental safety standards and so the sourcing garden is just one aspect we want to stress here but more important that we go into the producing countries going to additionally in North America sorry guide North and South America to get an understanding what the sustainability should look like a year in our terms and so and see what they can agree on to come to common consensus otherwise as I said spot markets here that will not maybe will benefit single industries in a single country but are definitely not the answer to the challenge that we will face in the near future and I'm going to close who were with that image here I won fair thank you very much for your attention [Applause]