European Raw Material Volume Declining

The European Fat Processors and Renderers Association (EFPRA) has released its annual review of Europe’s animal by-products industry. The statistics were presented by EFPRA Secretary General Dirk Dobbelaere at the group’s congress held in Prague, Czech Republic.

The 2012 beef market within the 27 member countries of the European Union (EU) continued its downward spiral, dropping to about 7.8 million metric tons (MMT) of production and 7.7 MMT of consumption. Predictions are for the decline to taper off in 2013 and begin a slight growth through 2016 before leveling off.

Dobbelaere reported an expected slight drop in the pork market due to legislation on sow housing. In 2012, pork production was just over 22 MMT with consumption at just above 20 MMT. Poultry slaughter and consumption was rather stable at around 12.5 MMT and 12 MMT respectively, a trend that should continue moving forward.

EFPRA represents 35 members in 26 European countries that process over 15 MMT of raw material into 2.5 MMT of animal fat and 4.3 MMT of animal proteins and employ some 15,000 individuals. Total category 3 material processed, which is meat fit for human consumption, was about 9.8 MMT, down from 10.7 MMT in 2011, while all other material accounted for just over 5.0 MMT. Category 1 meat and bone meal (1.4 MMT) is primarily used for combustion while 330,000 MT of category 1 fat is used for combustion and 400,000 MT is used in biodiesel, a big jump from the more than 235,000 MT that went for biodiesel in 2011.

Germany processes the most raw materials, about 2.8 MMT, followed by France at 2.5 MMT, Spain at 1.8 MMT, Italy at 1.6 MMT, and the United Kingdom at 1.5 MMT. Category 2 material is now processed in 10 member states, an increase, due to change in legislation.

Of the 1.8 MMT of category 3 fats produced, more than 60 percent is multi-species followed by poultry fat, pork fat, tallow, and lard. The multi-species fat is primarily used in terrestrial animal feed and the oleochemical market with about 190,000 MT going into biodiesel. Poultry fat is mostly taken by the pet food industry, pork fat is used equally in animal feed and oleochemicals, while tallow generally goes into oleochemicals.

EFPRA members reported a big drop in tallow and lard production with no real explanation. In 2011, 350,000 MT of lard was produced, plummeting to 50,000 MT last year. For tallow, almost 200,000 MT was produced in 2011, dropping to 150,000 MT last year.

Nearly 75 percent of the 2.8 MMT of processed animal proteins (PAPs) in 2012 were multi-species with the balance being mainly feather, pork, and poultry meals. The pet food industry took 1.6 MMT of the multi-species PAPs, double that of 2011. Dobbleaere cited two reasons for this. First, single species PAP prices jumped considerably because of the impending reopening of the use of PAPs in aquafeed so pet food manufacturers turned to multi-species. And second, several Middle Eastern countries removed bans on European pet food containing multi-species PAPs at the end of 2011. Pet food manufacturers also consumed about 220,000 MT of poultry meal and 190,000 MT of pork meal, both down from 2011.

About 400,000 MT of multi-species PAPs was used as fertilizer in 2012, down from almost 600,000 MT the previous year due to an increase in pet food use, and 105,000 MT of category 2 meat and bone meal went into fertilizer, double the amount from 2011.

In conclusion, Dobbelaere said the volume of animal by-products processed in the EU continues to go down slightly while the separate processing of category 2 material gets more important. There is also a better valorization of category 1 fats with a decrease in incineration and an increase use in biodiesel. This has led to a drop in the use of category 3 fats in biodiesel production. He noted that the fur industry is an important upcoming market as is the considerable growth in sales of multi-species category 3 PAPs to the pet food industry.

August 2013 RENDER | back