Herceghalom, May 16, 2018
We took part in a unique initiative in mid-May organized by the Agricultural Economics Research Institute.
On the first day of the Outlook conference, international speakers talked about the expected agricultural and food changes and trends in the next ten years. The next day, practical participants of the domestic animal husbandry summed up the future of feed production.
our population, which will be 8 billion, will require increased supply mostly in developing countries - Ildikó Tikász, Dr,
Ildikó Tikász, Dr, the head of the Research Department for Crop Production and Feeding, gave a comprehensive overview of the topics of the day. She said that our population, which will be 8 billion by 2030, will require increased supply mostly in developing countries. In the European Union, nearly 12 million farmers live, providing around 46-48 million jobs for the citizens. The EU has already introduced the Life Cycle Assessment (LCA) of products as a basis for SMART AGRICULTURE and precision animal husbandry, which tracks the process of a product from raw material to waste recovery, with a strong emphasis on its environmental impact.
Increased attention is paid to reducing the use of antibiotics - Zoltán Pulay, Purchasing Director of UBM Ltd.
Zoltán Pulay, the purchasing director of UBM Ltd. and a member of the board of FEFAC (European Feed Manufacturers’ Federation) said that the United Nations aims to produce efficient feed production through appropriate formulations, as food is formed at the end of the process. Increased attention is paid to reducing the use of antibiotics and creating soy purchasing directives in the light of responsible consumption and production. They also want to focus on climate change and sustainable fish farming through meat meal and fish meal feeding. The EU plans to reduce its dependence on protein import through breeding methods, reducing the protein content of feed and increasing the use of amino acids, enhancing phytase application, technological innovations and promoting the cultivation of high protein crops.
We produce 100 million tons of food waste annually, said Witold Obidzinski, the Central and Eastern Europe Regional Director of the De Heus company. This could be easily used by the feed industry. In his view, their strong poultry sector is successful because, though they were members of the Eastern bloc, in the 80s, they put great emphasis on development (hatcheries, farms). Nowadays, within the framework of the “Polish Poultry Board”, they promote the market conditions of healthy poultry and the success of the sector with a long-term campaign.
The role of the feed industry is crucial for the success of the protein program - László BustyaházaT
László Bustyaházai pointed out that the role of the feed industry is crucial for the success of the protein program. He mentioned the possibilities of using bioenergy products in the protein program, which played a role in the reduction of soy use by nearly 200,000 tons last year. In Hungary, about 400 feed mixers have been registered this year, which, on average, have reached 42 years and produce only about 9000 tonnes of feed at a capacity of about 18,000 tonnes. Let me emphasize: on average. Considering this, a huge amount of money can be saved on more efficient production organization and on drying energy, for example by feeding wet DGS (cattle feed) or green alfalfa (rabbit feed). Since nearly 90% of premix raw materials are euro- or dollar-based, the feed industry carries out significant exchange rate management, while the economic efficiency of production can be further increased with high-efficiency products or cheaper food by-products.
The essence of CNCPS (Cornell Net Carbohydrate and Protein System), developed at Cornell University, was presented by Szabolcs Pócza, the Research and Development Director of UBM Kft.
When determining the nutritional requirements of cows, the type of litter, the placement conditions, the distance between the rest area and the milking parlour, the number of daily milkings, the desired milk yield and the milk content, the average cow size, their condition and, last but not least, the variety shall be taken into account. Afterwards, it shall be selected which group it should be optimized for in order to achieve the best result. Nowadays the feeding structure without phases is increasingly widespread, but we can also feed by phases or age groups.
Shortage on the raw material market - Zsolt Csavajda Zsolt, managing director of DSM
Shortage is more common on the raw material market, said Zsolt Csavajda, the managing director of DSM. This was partly achieved by the sector by not limiting the growth of Chinese raw material production. Thereby the market has become vulnerable to the Asian region. Today, the use of vitamins, microelements, amino acids and enzymes (phytase) is as common as morning coffee. The uniqueness of our feeds is given by complementary products such as different toxin binders, or omega fatty acids, which are becoming more and more common.. Regional differences between the East and the West have faded away, and practically can only be found in consumer society.
Sustaninability - Tibor Csitkovics, managing director of Agrofeed Kft.
The topic of sustainability was discussed further by Tibor Csitkovics, the managing director of Agrofeed Kft. The cost-effectiveness of production and the improvement of performance are the foundations. In addition, we can look at how we could produce sustainably at several points. A consensual question is zinc oxide, which has been mentioned often recently, among pig farmers. But we can start our reflection with a minimal investment like plumbing. For me, the biggest realization of the day was that no one thinks about the amount of water used when continuing the operation of a used plant. Strong maintenance can improve both water pressure and cleanliness, while we might even save the daily consumption of a small settlement for ourselves. What matters most is the need for change inside.
Competitiveness of pig industry in view of African swine fever- Gergely Pókos Depute CEO of the Bonafarm Group
In the afternoon session, representatives from various sectors shared their view on the possibilities of improving competitiveness, absolutely based on their practical experience.
Gergely Pókos, the Deputy CEO of the Bonafarm Group, started to analyse one of the most exciting topics by presenting the competitiveness of pig industry in view of African swine fever, which has caused the loss of many of our export markets. Price reduction is a fundamental fact that will have a negative impact on the producer and the industry, while it may even be an advantage for processors. ASF may have a market purifying effect in the sector, and the production structure undergoes reformation in about 6-9 months.
Through the example of the slaughterhouse of the company group in Mohács, we learned that the sector has favourable production capacities, which can be sustained in the long run. With adequate capital allocation and the use of labour, they have become able to further enhance processing in terms of efficiency and competitiveness. Our products and the production of our country may become suitable for international competition, we are catching up, but reaching the level of Germany with 60 million pigs is still a long way to go and is not a realistic goal yet.
Do you remember the ad? Coffee should be cheap, coffee should be tasty. Péter Bárány, the managing director of Baromfi-Coop Kft., listed a lot more criteria against production, which the authorities and consumers desire, not to mention the needs of a broiler. Feed should be cheap, GMO-free, placement density should be low, and many more animal welfare requirements shall be met.
Waterfowl sector - Sándor Újvári, director of agriculture at Tranzit-Kert Zrt.
Sándor Újvári, the director of agriculture at Tranzit-Ker Zrt. said that the waterfowl sector shall be ready for 2 types of customers. QS buyers want to purchase from caged hold, while traditional buyers swear for free range. Feeding shall be mastered accordingly. Since November 2016, the main focus has become the replacement of import soy with sunflower.
The sector has now got into a difficult situation - László Király, managing director of Zala-Cereália Ltd.
Turkey was flying high when the bird flu hit its head. In spite of this, we, Hungarians eat 5 kg turkey annually on average, said László Király, the managing director of Zala-Cereália Kft. However, the sector has now got into a difficult situation, similarly to the pig industry. About 6000 tons of frozen turkeys are waiting for their turn in Hungary.
The sector is nevertheless regarded as quite familiar, being able to synchronize production.
Launching an unique rating system - József Kardos, Commercial Manager of Hunland Trade Kft.
Compared to turkey, we eat even less beef with an average consumption of 3kg/person, while processing on the domestic market is covered by 4 larger slaughterhouses. After the brief market review, József Kardos, the Commercial Manager of Hunland Trade Kft. talked about their unique rating system, which was launched in 2017. With its help, besides the passport data, we also get daily information like the weather, feed consumption or the exact origin of the animal. Their significant export activity required the use of a unique ear chip that can be paired with the passport but does not get dirty and does not fall out at a more difficult moment. It allows you to perform loading easily and the information can be viewed on a phone and then “put into your packet”.
To close the day, the audience could ask questions from the presenters with an interactive application, giving them the opportunity to discuss such blue-sky, yet interesting things as “clean meat”, which was compared to driverless cars, and its appearance is seen to be realistic only in the distant future because of the lack of taste sensations. Not like insect-based feeding, which might be placed on the table in the next 4-5 years and is supported by FEFAC for its costly production and many animal welfare issues. Climate change has been found to be a central issue for all animal species, as the complications of the heat stress period can only be bridged through the introduction of a special feed program. Nowadays all respectable feed producers shall prepare for this.
The day was about competitiveness, sustainability and information flow. If we want to run a system well, we need to have as much information as possible. With this in mind, I hope that the initiation of the conference is not unique and in the future more market players will come up with their opinions, achievements and practical experiences to get closer to the desired catch-up.
Commercial Manager responsible for raw materials
NeoCons Plus Kft.