Cordoba, November 12th 2018

Situation of the Alfalfa Dehydration Sector in Europe

Eiko Jan Duursema, The Netherlands

C.I.D.E asbl

1. Introduction On behalf of the European Dehydration Association (CIDE) I will present you the situation of the alfalfa and greenforage sector in Europe.

• CIDE has 6 national associations as member: Spain, France, Italy, Germany, The Netherlands and United Kingdom. CIDE was formed in 1957 as representation for the European Dehy Industry.

• In 2018, the alfalfa drying industry in Europe included 181 plants and 40.000 farmers cultivating 400.000 hectars. We produce 3.200.000 tonnes of dehydrated alfalfa and green forage.

• In this presentation I will express the benefits of alfalfa and greenforage crops for the EU growers and environment.

• The advantages of dehydrated alfalfa and green forage.

• Focus on the different markets for alfalfa products

• Reports of our national associations

• EU-vision Common Agricultural Policy

Alfalfa and greenforage production regions in Europe

Production dehydrated alfalfa and greenforage in Europe in Mt

plants 2016 2017 2018

Spain 70 1.550.000 1.400.000 1.300.000

France 29 750.000 840.000 700.000

Italy 29 790.000 710.000 800.000

Germany 37 195.000 228.000 220.000

The Netherlands 6 116.000 130.000 120.000

The United Kingdom 10 31.000 31.000 31.000

T: 181 3.432.000 3.339.000 3.171.000

Source: CIDE, Brussel

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

2016 2017 2018

production in tonnes

Source: CIDE, Brussel

Dehydrated alfalfa and greenforage in Europe

Spain

France

Italy

Germany

The Netherlands

The United Kingdom

2. Benefits Alfalfa and green forage crops in Europe

• Multi annual nitrogen fixing crop (2 to 4 years)

• 2000 to 2700 kg of protein pro hectar

• GMO – free crop

• Less/no insecticides/fungicides used.

• Necessary in crop rotation.

• Best crop on ecological focus areas (40% is alfalfa)

• Financial saldo almost the same as wheat and barley

• Very positive environmental impact on

• Soil and structure, activates soil life

• Combating soil erosion

• Protecting the quality of water (roots are a filter)

• Positive impact on biodiversity f.i. birds, bees and butterflies

• Mentioned benefits are counting double for organic farming. Those farmers grow 1/3 or 1/6 of their acreage with nitrogen fixing crops (alfalfa or grass/clover)

2. Benefits Alfalfa and green forage crops in Europe

3. Advantages dehydrated alfalfa and green forage • Dehydration keeps all nutritional values of the product retained on site by quickly drying

(ca. 5 min.) the fresh alfalfa after harvesting.

• The high air temperature in the drying drum (min. 250°C) sanitizes the forage. Dehydrated forage is free from micro organism.

• Dehydrated product has stable low moisture content (max. 12%)

• Dehydrated alfalfa has proteins that are naturally tanned by heat (positif polygastrive effect)

• Optimal conservation for long period

• Easy to transport and store

• Easy to feed in bales or pellets

• GMO – free products from Europe

• Good tracking and tracing. Products are under cerification (f.i. GMP+)

• Standardized quality products (guaranteed protein, fibre and moisture content)

Harvest of alfalfa

Krone Alfalfa mower Container chopper

Fresh chopped Alfalfa at the dehy plant

4. Markets for our dehy products

• Contract drying farmers of their own alfalfa, grass, clover in bales (400 kg), pellets (6mm) or cobs (12mm). Service is stimulated by demand for: • Regional produced proteins (government)

• Trend to GMO-free raw materials (dairy producers)

• Trend to growing conversion to organic farming

• Alfalfa compact bales (20kg) for: • Animal welfare concepts for pigs and poultry

• Horse feed

4. Markets for our dehy products

• Alfalfa as stable green fiber source in compound/mixed feed for horses, sheep, goats, rabbits, camels and ruminants

• Alfalfa in structure bales (350 – 800kg) • Dairy cows

• Sheep, goats, camels, and horses

• export to demanding markets inside Europe and f.i. Middle-East, China, Japan, South-Korea

Alfalfa bales in storage, each bale unique nr.

Consumers like dehydrated alfalfa pellets

The situation in each European production country

1. Spain

2. France

3. Italy

4. Germany

5. The Netherlands

6. The United Kingdom

SPAIN: • Spain is the main alfalfa producer in Europe with more than 1.300.000 tonnes pro year.

Our cultivation area is more than 250.000 ha. 50% is destined to the dehydrated sector, which means that our sector could produce more than 2.000.000 Tons pro year.

• Spain exports represents between 70-75 % of its total production, being the 2nd world’s largest exporter of alfalfa.

• We dehydrate alfalfa with an industrial process. Using the dehydrating drum and cooling tunnel makes it very difficult for stones or heavy materials to enter the bales and our product are free of live insects and contaminating micro-organisms. This fast dehydrating process using 250°C air, allows us to manufacturer a product with a lower humidity between 8-12 % turning into a very stable and homogeneous, easy to transport and keep in good condition for long time periods.

FRANCE : • France is a beautiful country producing high quality dehydrated alfalfa thanks to high level

professionals.

• In France, the entire dehydrated alfalfa sector is member of the Coop de France Dehydration trade union. The union's actions include work in animal nutrition, agronomic research, industrial expertise and, above all, excellent lobbying.

• The relations with the Ministry of Agriculture are excellent and favored by proactive actions and unfailing credibility.

• This producer unit is also reflected in marketing with Désialis, which sells over 80% of the french production. This structuring of the market is carried out with perfectly standardized products, certified by the highest quality standards and available all year long. Most of the production is reserved for intra UE trade. Almost all of the production, 95%, comes from agricultural cooperatives, a guarantee of resilience and sustainability.

• Cooperatives are owned by farmers and allow them to receive market value and fair income. A large majority of French processors dehydrate sugar beet pulp. This is an industrial and commercial advantage because there is a good nutritional complement between these two products.

• French alfalfa acreage has been rising for three years and new investments are ready to meet the agronomic demand of farmers and especially the explosion of global demand for perfectly traced and non-GMO plant proteins.

• France is BACK

ITALY:

• The dehydrated Italian fodder is produced with state-of-the-art industrial plants about 800,000 tons / year, located in the northern and central regions on a collection area of about 85,000 hectares.

• The processing process takes place respecting the environment and protecting the land.

• Part of the Italian production is GMP+ certification, Organic and NO GMO.

• The dehydration process makes it possible to obtain batches of production, traceable and homogeneous, the finished product contains a greater quantity of nutrients and can count on a superior practicality of administration; the procurement, handling and storage operations are greatly facilitated. Dehydration preserves and enhances the superior organoleptic qualities of alfalfa.

• The aspects to be taken into consideration are: • the health safety of the dehydrated product that with methane gas fuel at a temperature of not less than 100°C

which sanitizes the forage eliminating the risks due to fermentations or molds; • the removal of foreign bodies (metals, sand, wood, glass or stones); • the compression of bales, which is very efficient at the factory, allows reductions in transport costs and reduced space for

stable storage; • transformation into flour and pellets to enhance the plant protein; • traceability, determining control in the production of quality meat or milk.

• In Italy the fields are sown with Italian Seed Certified NO GMO.

• Increasing quantities for exports is our goal!

• Italian product equal to quality guarantee!

GERMANY: • The German association has 32 members with 37 drying plants.

• The most of the members are cooperatives with an average of 500 farmers

• Up to 20.000 farmers support the drying plants in cooperatives

• Taking back production; the farmers supply the ressources (gras, lucerne, maize, …) on drying plants. The framers taking back as final products like cobs or bales 70 % of the amount

• A regional circulation

• In 2017 the german drying plants have produced in total 0,22 Mio. tons of gras/lucerne cobs and bales.

• 80 % percent of the total production are gras and lucerne products; the rest is maize/corn and wheat products

• Because of strict requirements on emission values, in Germany the plants have to produce with low emissions. The emissions depends on the drying temperature.

• All plants have to certified in a quality management and control system: QS and ISO 9001

• Vision

• further reduction of vegetable protein import

• increase of production

• looking for alternative uses (physical use/ non animal feed?)

The Netherlands: • In the Netherlands there are 6 producers with a production of 120.000 Mt.

• The production is ca. 45.000 Mt bales and 75.000 Mt pellets.

• Ca. 40% of the production is contract drying. This is a service: the dairy farmer gets his own grass/clover/alfalfa back in 6mm pellets or structure bales (400kg).

• Two sites produce compact bales for pigs and poultry. This fits in animal welfare concepts. They also produce products for the EU horse market.

• Ca 15% of the Dutch production is organic. This will grow in the comming years. These farmers use alfalfa or grass/clover in a 2 or 3 year crop rotation

• All our products are certified GMP+ and Secure Feed

The United Kingdom: • 10 production sites, from 500 till 18.000 Mt production.

One of them is a cooperative.

• Stable year production: 31.000Mt

• The production is sold on the domestic horse and pet food markets with a high added value.

EU vision on Common Agricultural Policy: • 1962 The Common Agricultural Policy was created.

• 1973 Aid for producing plant proteins in the EU, to improve the low self sufficiency grade (30%)

• 2012 The Aid for our dehydrated products stopped.

• 2012-2020 CAP has focus on “greening and biodiversity”. Arable Farmers must have 5% ecological focus areas on their farm. Nitrogen fixing crops are a good option for these hectars.

• 2021 New CAP will be adopted - Soil improvement by crop rotation is one of the items. Challenge for Alfalfa crop - Protein Plan will be implemented - Stimulans for EU-vegetabel protein product, soya, pulses, beans, alfalfa and clover.

There is a Focus on Protein Crops in Europe

Challenge for Dehydrated Alfalfa