Brussels, 19/03/2001 (Agence Europe) - To answer the additional demand for proteins for animal feed, it would be more simple and less costly to increase by 5% (from 1 to 1.5 million tonnes) the imports of Soya meal rather than to increase Europe aid to oilseeds, indicates the European Commission in a report, adopted on Monday, on the various approaches aiming to replace meat meals (banned since 1 January). The various options to promote plant proteins, put forward by politicians and professional organisations, are considered to costly, or difficult to conciliate with the requirements of the CMO. "The ban on animal meals in feed will not lead to any shortage of protein in the EU or in the world markets. Should the markets become short because of other reasons in the longer run (e.g. unexpected increases in world demand or reductions of supply), prices would increase and set strong incentives to increase production of oilseeds and protein crops, in the EU and elsewhere", asserts the Commission. The four opinions examined by the Commission are as follows:
Increase the production of oilseeds by maintaining the crop specific oilseeds aid scheme and to fix aid at a level sufficiently attractive to increase the area cultivated with oilseeds. This solution would lead to an additional cost of EUR 474 million per year and a opportunity cost of EUR 1,270 per additional ton of Soya meal equivalent.
Promote the production of protein crops (peas, beans, sweet lupins) by increasing by EUR 6/tonne the crop specific aid (which will increase it to EUR 78.49/tonne): the main disadvantage of this measure would be its very limited efficiency (relatively high cost, very modest increase in protein supply), not counting the increased risks of nitrate leeching into agricultural lands.
Authorise the production of protein rich crops on set aside land: "allowing growers to fulfil their set aside obligations by growing protein crops would seriously weaken set-aside as a tool for regulating the supply of cereals", feels the Commission. Moreover, according to WTO regulations, this measure would be in contradiction with the requirement to limit production to be able to grant aids as part of the "Blue Box" category.
Promote the production of dried fodder by increasing the maximum guaranteed quantity by 10% or some 440,000 tonnes and by decreasing the aid slightly, for example 5%: the Commission recalls that dried fodder is mainly fed to ruminants and that is not suited for pig and poultry feeds. And that, the production of dried fodder presently exceeds the maximum guaranteed quantity by about 200,000 tonnes in 1999/2000 and 600,000 in 2000/2001. Furthermore, the problem of "ecoaccounting" (the surface areas are often irrigated in hot countries and, in all the Member States, the dehydration process costs money), would present itself.