MVO - The Netherlands Oils and Fats Industry © All rights reserved, September 2019 Louis Braillelaan 80 2719 EK Zoetermeer The Netherlands +31 79 363 43 50 [email protected] www.mvo.nl Netherlands: imports of soybeans and soybean meal Soybeans and soybean meal Global cultivation, EU and Netherlands imports in 2018 MVO on soya sustainability and trade 1. MVO considers that the European Commission’s Protein Strategy and the Dutch Ministry of Agriculture’s Vision on Circular Agriculture are interconnected. We acknowledge the need for continuous evaluation of our global (soya) supply chains. True Circular Agriculture can only be achieved by taking an integral and international approach. 2. The Netherlands is an international forerunner when it comes to sustainable soya sourcing. 83% of soya used in the Netherlands is compliant with the FEFAC Sourcing Guidelines, which do not permit any illegal deforestation (source: IDH/IUCN European soy monitor). According to the Dutch Feed Industry Association (www.nevedi.nl), all the soya products used for the Dutch feed industry in 2018 (1.74 million tons) are produced in agreement with these guidelines. 3. To reduce the impact of commodities on deforestation, the sustainability of imported soya at global level must continue to be promoted and linked to the SDG framework. Efforts should build on initiatives taken at both public and private (industry and NGO) level. 4. Imports from Mercosur countries (in particular Brazil and Argentina) represent 39% and 87% of the EU’s imports of soybeans and soybean meal respectively. 5. The EU-Mercosur trade agreement must ensure a level playing field through better market access for sustainably produced soya, the phasing-out of export duties and elimination of trade restrictions. This agreement will not lead to a further liberalization of EU imports of soybeans and soybean meal. The EU bound its import duties on these products at 0% more than half a century ago (GATT Dillon Round). 6. MVO believes that a possible shift towards more EU-grown soybeans should be based on market demand rather than on government subsidies and/or regulations. 7. EU’s soybean cultivation is limited and meets only 7% of its total soybean meal demand. About half (48%) of so-called ‘Donau soja’ is of non-EU origin, mainly Ukraine and Serbia. The EU is not and cannot be self- sufficient in soya. It can increase its domestic soybean cultivation but it is not realistic to expect that EU-grown soybeans can fully replace EU’s current imports. Imports of soybeans and soybean meal 2014-2018 0 3 4 5 2 1 2014 2015 2016 2017 2018 x 1,000,000 tons x 1,000,000 tons Source: Eurostat Source: Eurostat / Oil World Source: Eurostat Imports by country of origin (2018) Imports from: Non-EU member states soybeans 4.2 soybean meal 2.6 EU member states soybeans 0.1 soybean meal 0.1 Exports to: EU member states soybeans 1.0 soybean meal 3.1* Non-EU member states soybeans 0.0 soybean meal 0.1 Processing Crush of imported soybeans 3.3 Output soybean meal 2.5 Total: 4.2 million tons soybeans soybean meal Total: 2.6 million tons 24% 72% 2% 2% United States Brazil Ukraine Argentina soybeans soybean meal China Paraguay Other 12% 79% 4% 3% 2% * Excluding compound feed that consists of a mix of various ingredients, including soybean meal. The Dutch feed industry used 1.74 million tons of soya products in 2018 (source: www.nevedi.nl).