The war in Ukraine is sometimes the cause and often the aggravator of the feed shortages, especially in organic feed. That is why the sector is requesting a temporary exemption to be allowed to use non-organic raw materials. It is particularly prevalent in laying hen feed. Even animal welfare is a concern there.
An important point is that organic sunflower flakes are the only permitted source of methionine in this sector, an essential amino acid for the well-being of the animals, explains secretary Henk Flipsen of the Nevedi animal feed association. "There is no fallback option for this product. There are alternatives, but none of them meet the requirements for the organic sector." This is disputed by a number of traders in organic products. They point out that organic soy from India and China is also available, but it is more expensive.
In most other production chains, the problems are mainly a combination of shortage and price and the situation is less acute. Yet it is clear to all parties in the animal feed industry that 0% of common ingredients in organic animal feed will not work. That is why Bionext is asking Agriculture Minister Henk Staghouwer to argue in Brussels for an exemption to temporarily use up to 'at least 5% non-organic raw materials' and even up to 20% in emergency situations.
Not for ruminants
The latter seems far-reaching, but Flipsen points out that the original situation was also 80/20: 80% organic raw materials and 20% organic raw materials. The exemption that Bionext and other animal feed organizations are requesting is only for monogastric farm animals: therefore for poultry and pigs and not for ruminants.
The shortage on the animal feed market did not start with the war in Ukraine. There has been a shortage on the raw materials market for more than six months, but this has escalated due to the war in Ukraine. Prices have risen very sharply, as is also evident from Nevedi overviews, and replacement products have to come from much further away.
The story that livestock farmers are hoarding certain feed raw materials is not credible, according to Flipsen. In practice, 'hoarding' is difficult, because storing at your own company is difficult and purchasing for the long term is in fact not feasible. What price do you have to pay? Often it is not possible to determine a realistic price for far away destinations. Companies themselves are also struggling with this. Long-term prices and availability of raw materials often cannot be determined.
The Netherlands is relatively well off
There is no need to fear feed shortages, according to Nevedi. In most cases, alternative flows can be found, although the prices may be high. The Netherlands does not even need to tinker with the standards for (non-organic) animal feed, says Flipsen. "In the Netherlands, as strange as it may sound, we are much less affected by raw material shortages than, for example, Spain, Portugal or Italy. Even before the war in Ukraine, these countries asked the European Commission for broader (residue) standards in raw materials. The Netherlands benefits from its proximity to a large food industry that produces many by-products that meet strict standards."