NORTHERN Ireland Grain Trade Association (NIGTA) President Garth Boyd has expressed outrage at the European Commission's decision not to include the issue of zero tolerance levels for non approved Genetically Modified Organisms (GMOs) at the upcoming meeting of EU farm ministers.
"There is no excuse for this," he told Farming Life.
"Yet again it puts the future prospects of the intensive livestock sector here in Northern Ireland at great risk. NIGTA has been working closely with its sister organisations throughout the UK and Ireland on this matter for a considerable period of t
ime. Local feed companies are already paying over the odds for their protein supplies. However, given the current state of global protein markets, this problem may well be exacerbated further. No local miller will take the risk of importing soya from North America until the zero tolerance issue has been resolved at Ministerial level within the EU in a sensible manner."
He added: "Dr. José Manuel Barroso has been re-elected as President of the European Commission. In addition, the recent referendum in the Republic of Ireland has, hopefully, paved the way for the full ratification of the Lisbon Treaty. Given these two developments I was hopeful that the GMO tolerance issue would now be actively addressed by Brussels, hence my deep disappointment on hearing that the issue will not be discussed at the next Farm Council meeting."
Structurally, the EU is dependent on the global market for its protein supply and none of the EU member states is self sufficient in proteins. The EU has to source its imports of soybeans and soybean meals in those countries that produce predominantly GM soybeans (and other GM crops like maize) i.e. the USA, Canada, Brazil, Argentina and other South American countries. This dependency on the global market exposes the EU feed and food chain to trade disruption and possible shortages.
This is particularly the case in 2009 as, unlike in previous years, supplies of soybeans from South America will not be available for EU operators due to a considerable production shortage (19 million tonnes less) because of a drought earlier this year. There is no significant alternative supply of soybeans as a source of protein on the global market available. Therefore, between mid September 2009 and the next South American harvest starting in March 2010, the EU industry will have to import about 6 to 7.5 million tonnes of soy beans from North America to cover the needs of the food and feed markets. However, these imports can only take place if a solution is found to avoid the minute (less than 0.1%) presence of a GM event not yet authorized in Europe blocks consignments.
But GM is not the only issue that has been addressed by the Northern Ireland Grain Trade Association over recent months.
"The Dioxin scare earlier this year highlighted the fact the Province's feed and food assurance standards actually work, with full traceability a key component of these provisions," he further explained.
"However, we have not rested on laurels where this matter is concerned. There is always room for improvement and with this objective in mind we have been working closely with colleagues in the Republic of Ireland and Belgium in order to draw up more comprehensive agreements that will give the feed and food industries even greater levels of re-assurance."
On the issue of future feed prices Garth Boyd indicated that a number of factors will come into play over the coming months.
"If the GM issue is not resolved quickly, it will put a big question mark over the future price and availability of soya," he stressed.
"The downside of a weak sterling is that it makes imported grain and other feed inputs significantly more expensive."
Garth Boyd concluded: "We have seen raw material prices rising over the past few weeks by between £12 and £14 per tonne. However, at farm levels it should be a case of steady as you go for the next couple of months. I am not in a position to predict how markets will fare beyond this point."
