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THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN

THE DUTCH OILS AND FATS INDUSTRY AN … · an international and sustainable chain 1 the dutch oils and fats industry an international and sustainable chain ... oil seeds, oils and

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Page 1: THE DUTCH OILS AND FATS INDUSTRY AN … · an international and sustainable chain 1 the dutch oils and fats industry an international and sustainable chain ... oil seeds, oils and

AN INTERNATIONAL AND SUSTAINABLE CHAIN 1

THE DUTCH OILS AND FATS INDUSTRYAN INTERNATIONAL AND

SUSTAINABLE CHAIN

OP WEG NAAR DUURZAME ONTWIKKELING

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2 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 3

TABLE OF CONTENTSWORKING TOGETHER 3

PART OF OUR DAILY LIFE 6

A LEADING POSITION IN EUROPE 8

A GLOBAL PLAYER 10

OUR ECONOMIC SIGNIFICANCE 14

SUSTAINABILITY ON ALL FRONTS 16

CONFIDENCE AND INVESTING IN THE FUTURE 20

PRECONDITIONS AND ACTIONS 24

WORKING TOGETHERThe companies in the Netherlands that form the chain for oils and fats:

• combinetorepresentoneofthelargestagrofoodsectorsintheNetherlands;• operateinahighlyinternationalenvironmentandhavealeadingpositionin

Europeandtheworld;• haveinvestedheavily(€2billion)inrecentyearsinastrongcompetitiveposition;• worktogethertogivetheNetherlandsastrongeconomicpositionintheglobal

oilsandfatssector;• workforsustainablegrowthwithresponsibleproductionprocessesand

products;• dothistogetherwithpartnersinothersectors,withthegovernmentandwith

knowledgeinstitutes;• believestronglyintakingresponsibilityforsocietalproblemsandself-regulation.

TOTAL IMPORT VALUE € 7.1 BILLION

TOTAL EXPORT VALUE € 4.8 BILLION

TOTAL PRODUCTION VALUE € 6.1 BILLION

In 2013 the margarine, oils and fats companies in the Netherlands took the initi-ative to establishMVO - Dutch oils and fats industry.MVO represents 95% of alltradeinandproductionofoilsandfatsintheNetherlands.Thispublicationhasbeenrealised in collaborationwith Berenschot and themembers and partners ofMVO.©2014

Alldatarepresent2013,unlessotherwisestated.

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4 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 5

CULTIVATION

AGRICULTURE

PRODUCTION AND STORAGE

CRUSHING AND REFINERY

STORAGETRANSPORT

PRODUCERS

CONSUMERS

BIOFUEL

OLEOCHEMICALS

FEED

FOOD

OIL SEEDS, OILS AND FATS

FROM SUSTAINABLE SOURCES

TRANSPORT

IMPORT AND TRADE

ANIMAL FATSFAT

COMPOUNDERS

RECYCLING

PART OF OUR DAILY LIFE

SERVICES

PART OF A BIOBASED ECONOMY

NATURAL RAW MATERIALS

PROCESSED INTO OIL AND MEAL

TRANSPORT TO THE NETHERLANDS

A MODERN CHAIN WITH A WIDE SCOPEAllthelinksintheoilsandfatschain,exceptforthegrowingofthecrops,arelocatedintheNetherlands.Thechainincludesimport-ers,specialisedstorageandtransshipmentcompanies, crushing and refinery compa-nies,animalfatcompanies,fatcompound-

ers, transport companies (road and inlandwaterways), food companies, feed busi-nesses, theoleochemical industry,biofuelmanufacturers, specialised service provid-ers,surveyors,laboratoriesandknowledgeinstitutes.

KeyinternationalplayershaveoneormorebranchesintheNetherlands.Togetherwithitssize,thisscopeanddiversityensurethattheDutchchainisuniqueintheworld.Thecompaniesformingthechainemploymorethanfivethousandstaff.Withtheirknowl-

edgeandexpertise,theyarethetrueforceandcharacterbehindthechain.Thisiswhythe companies invest in the developmentandtransferofknowledgethroughe-learn-ing,workshopsandcourses.

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6 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 7

Everyday,oftenwithoutevenbeingawareofit,weuseproductscontainingvegetableandanimaloilsandfats.Oilsandfatsplayakeyroleinourdailylifeandoureconomy.This role will only increase in the nearfuture due to the risingworld population,increased prosperity and the increasingimportance of a biobased economy.Veg-etableandanimaloilsandfatsarerenew-ableresources.

Naturaloilsandfatshaveroughlyfourkeyapplications.Thefirstandmostsignificantapplication is inourfood.Oilsandfatsareanimportantbasisformanyproducts:frommargarines,cookingproductsandfryingoilto bakery products, chocolate, baby food,soup,saucesandicecream.Oilsandfats

provide energy and are important for thetaste, consistency, texture and shelf-lifeof foodstuff.But also, and above all, theyprovideourbodywith importantnutrientsthroughessentialfattyacidsandvitamins.Health authorities throughout the world,such as theWHO and the FAO and theDutch Health Council, recommend thatbetween 20 and 35% of our necessarydailycaloriesconsistof fats.Oilsandfatsareessentialelementsofourfood.

Infeed, too,oilsandfatsarean importantcomponent. Just as they do people, theyprovideanimalswithnutrientsandenergyand they ensure the taste and texture ofthefeed.

PART OF OUR DAILY LIFEDEEL VAN HET DAGELIJKS LEVEN

FOOD

FEED

OLEOCHEMICALS

BIOFUELS

VOEDSEL VOER OLEOCHEMICALS BIOBRANDSTOFFEN

Bestemming olie en vetten in Nederland

IN M

ILJO

EN T

ON

0

0.5

1

1.5

2

2.5

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Approximately half the productssoldinsupermarketscontainoilsorfats. In addition to foodstuff, theyare also used in all kinds of con-sumer products that havenothingtodowithfood.Examplesincludecosmetics (skin care), shampoo,laundry and cleaning products,candles and paint. This applica-tion field is called the oleochemicali ndustry.

Finally,oilsandfatsareincreasinglybeingusedasrawmaterialsforthemanufactureofbiofuels(specificallybiodieselofbiokerosene)andtheythus offer an alternative to fossilfuels.

Oleochemicals are substances made from vegetable and animal oils and fats. They have diverse unique functional qualities and are an alternative to mineral oils. Renewable oils and fats are also increasingly being used for the manufacture of paints, varnishes, lubricants, glue, insulation materials and biodegradable plastics.

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8 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 9

The Netherlands has been strong in theprocessingofvegetableandanimaloilsandfatsformanyyears.Thisisbecauseofourgeographic location, but also because ofouragriculturalbackgroundandourentre-preneurial spirit. As early as the MiddleAgesthereweremanyoilmillsintheNeth-erlands and butchers melted animal fats.In 1871 the firstmargarine factory in the

worldwasbuilt in theNetherlands.Sincethenwehave takenmaximumadvantageoftheexcellent logisticpossibilities intheNetherlands.ThemajordevelopmentoftheRotterdam andAmsterdam ports and thegood connectionswith the European hin-terlandofferedopportunities.Thescopeofthechainandtheaccumulatedexpertiseisexceptionalandvaluable.

A LEADING POSITION IN EUROPE

IMPORTin millions of tonnes

Ger

man

y

the

Net

herla

nds

Spai

n

Belg

ium

Italy

Fran

ce

13.411.8

6.1 5.1 4.8 4.1

EXPORT

THE NETHERLANDS =

in millions of tonnes

the

Net

herla

nds

Ger

man

y

Fran

ce

Belg

ium

Rom

ania

Spai

n

6.0

3.73.0 2.9

2.2 2.0

OUT OF 28 EU COUNTRIES

NUMBER 1

IN REFINERY

NUMBER 4

IN CRUSHING

NUMBER 1

IN STORAGE

NUMBER 4

IN MARGARINE

NUMBER3

IN BIODIESEL

IMPORTin millions of tonnes

Ger

man

y

the

Net

herla

nds

Spai

n

Belg

ium

Italy

Fran

ce

13.411.8

6.1 5.1 4.8 4.1

EXPORT

THE NETHERLANDS =

in millions of tonnes

the

Net

herla

nds

Ger

man

y

Fran

ce

Belg

ium

Rom

ania

Spai

n

6.0

3.73.0 2.9

2.2 2.0

OUT OF 28 EU COUNTRIES

NUMBER 1

IN REFINERY

NUMBER 4

IN CRUSHING

NUMBER 1

IN STORAGE

NUMBER 4

IN MARGARINE

NUMBER3

IN BIODIESEL

OILS AND FATS REACH THE VERY CAPILLARIES OF OUR SOCIETY AND OUR ECONOMY

THE PRODUCTS OF THE OILS AND FATS CHAIN CAN BE FOUNDIN A WIDE RANGE OF (CONSUMER AND INDUSTRIAL) PRODUCTS AND ECONOMIC SECTORS. THE NETHERLANDS HAS PLAYED

A KEY ROLE IN THIS EXCITING, DIVERSE AND GROWING ECONOMIC SECTOR FOR MANY YEARS. INDUSTRY, TRADE AND SERVICE PROVIDERS

FORM A POWERFUL AND PROFESSIONAL CHAIN. TO MAINTAIN A GOOD POSITION WITHIN THIS CAPITAL AND KNOW-LEDGE-INTENSIVE CHAIN, COMPANIES INVEST IN SUSTAINABLE DEVELOPMENT, EXPERTISE AND INNOVATION AND WE WORK TOGETHER WELL. IN COLLABORATION WITH CHAIN PARTIES, KNOWLEDGE INSTITUTES, UNIVERSITIES, GOVERNMENT AUTHORITIES AND SOCIAL ORGANISATIONS, WE WORK FOR A

SUSTAINABLE AND INTERNATIONALLY COMPETITIVE CHAIN.

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10 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 11

United States of America

Canada

Brazil

Australia

Indonesia

Ukraine

Malaysia Philippines

Russia

China

India

European Union

Argentina

Paraguay

Global production of oil seeds, oils and fatsX 1,000 TONNES

Nigeria

Papua New Guinea

Columbia

Uruguay

Thailand

17,960

5,198

89,507

81,499

92

8,2023,200

48,000

2,850

8,808

21,258

10,000

12,000

1,750

11,700

1,492

1,970

19,217

2,270

3,950

28,400

3,062

868 37

8,900

7,000

376

960

1,306

Mexico129 Honduras

425

43

1,041

Ivory Coast 415

117

179

53500

53

10,800

2,450

A GLOBAL PLAYER

Thefiguresshowtheproduc-tionvolumesinthecountryoforigin.Theimportfiguresareshownonpage12.

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12 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 13

TheDutchoilsandfatsindustryistradition-allyinternationallyoriented.Mainlysoybeans,rapeseedandsunflowerseedsand tropicaloils(palmoil,coconutoil,andpalmkerneloil)areprocessed.Thecropsaregrownindiffer-entpartsoftheworlddependingonclimaticconditions.Soybeansaregrownprimarily inNorth and South America, palm oil comesfrom Southeast Asia (especially IndonesiaandMalaysia),sunflowerseedsfromEasternandSouthernEurope,andrapeseedcomesmainly from the European Union, but alsofromCanada,ChinaandAustralia.Oliveoil,linseedoil,peanutoil,riceoil,castoroilandsesameoilarealsoexamplesofoilsthatareprocessedandmarketedintheNetherlands.CrudevegetablerawmaterialsusuallyarrivebyboatinDutchportsasseedsorafterinitialprocessing in the country of origin. Giventhisglobalfield, it isnotsurprising thatourcompanieshaveastronginterestinanunre-strictedimportofrawmaterialstotheEuro-peanUnion,theabolitionofexportdutiesandbarriers,andtradeliberalisation.

Thesecondflowofrawmaterialsisformedbyanimalfats.Slaughterby-products(mainlyfrom Dutch abattoirs which slaughter, forexample,cattleandpoultry forhumancon-sumption)andimportedfishoil(e.g.sardinesorherring)areprocessedbyrenderingplants,refineries and fat compounders (for com-poundfats).

TOTAL IMPORT VOLUME 11,756

TOTAL RAW MATERIALS

2,8341,598

Import into the Netherlands *

320

SOYBEANS SOY OIL PALM OIL RAPESEED RAPESEED OIL SUNFLOWER SEEDS SUNFLOWER OIL COCONUT OIL PALM KERNEL OIL OTHER OIL SEEDS OTHER VEGETABLE OILS

3,628

X 1,000 TONNES

85

358632

411181

296 249

ANIMAL FAT 317

USED COOKING OIL (UCO) 207FISH OIL 19OTHER 706

DOMESTIC PRODUCTIONOIL SEEDS 9ANIMAL FAT 189

11,954 X 1.000 TONNES

A GLOBAL PLAYING FIELD DUTCH IMPORTS PER COUNTRY

SOYBEANSBRAZIL

UNITED STATES

PARAGUAY

CANADA

URUGUAY

RAPESEED OILGERMANY

BELGIUM

UNITED KINGDOM

RUSSIA

POLAND

RAPESEEDUKRAINE

AUSTRALIA

LITHUANIA

ROMANIA

UNITED KINGDOM

SUNFLOWER OILHUNGARY

FRANCE

GERMANY

UKRAINE

BELGIUM

SUNFLOWER SEEDSBULGARIA

ROMANIA

HUNGARY

FRANCE

SLOVAKIA

PALM OILINDONESIA

MALAYSIA

PAPUA NEW GUINEA

HONDURAS

COLUMBIA

COCONUT OILPHILIPPINES

INDONESIA

PAPUA NEW GUINEA

MALAYSIA

BELGIUM

PALM KERNEL OILINDONESIA

MALAYSIA

COLUMBIA

PAPUA NEW GUINEA

BRAZIL

RAPESEED SUNFLOWER SOY

OIL FLOUR

40 4020

60 6080

*Transitisnotincluded.

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14 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 15

TheDutchoilsandfatschainrepresentsaproduction value of € 6.1 billion (2013)and is important for the Dutch economy.It is one of the largest agrofood sectorsin the Netherlands.The Netherlands is aleading producer of refined oils and fatsand of natural oils and fats processed inotherways.TheDutch oils and fats chainhas a leading position in Europe and is akeyworld-classplayer.

Withan importof11.8million tonnesandan import value of € 7.1 billion in 2013,theNetherlandsisEurope’ssecondlargestimporterofoilseeds,oilsandfats.98%ofour rawmaterials are imported andmorethan2/3ofthisoriginatesfromoutsidetheEuropeanUnion.

OUR ECONOMIC SIGNIFICANCEIn Europe the Netherlands is the largestexporterofoilsandfats.After China and

India, the Netherlands is the world’s

largest importer of palm oil. In thepastdecade the export of oil seeds, oils andfats has increased by 50% to more than6milliontonnes.The export valueofoilsandfatshasmorethandoubledinthesameperiod, from€2.2billion to€ 4.8 billion.Oilsandfatsthereforebelongtothemost

important agricultural export products

in the Netherlands. Ourmost importantsalesmarketsareprincipallylocatedwithintheEU(92%).

Onaworldscale, in termsofvolumetheDutch oils and fats sector is the sixth

importer and the fifth exporter. Ourcapacity for crushing (pressing) oil seedsputsusatnumber four inEurope. Inthepast decade the refining capacity in theNetherlandshasincreasedby50% tomorethan3.2milliontonnes,makingourrefiningactivitiesthelargest in Europe.

The largest margarine factory in Europe

is located in Rotterdam.The Netherlandsis the fourth largest producer of marga-rine in Europe.The Netherlands occupiesthird place in Europe for the productionof biodieselwith1.4 million tonnes.TheDutch storage and transshipment compa-niesformthekey logistic linkforoilsandfats in Northwestern Europe. Of the 2.5millionm³storagecapacity1.5 million m³is located in theNetherlands.With its1.3millionm³,theportofRotterdamisbyfarthelargest in Europeforthestorageandtransshipmentofvegetableandanimaloilsandfatsandbiodiesel.50%ofallEuropeanimportgoesthroughtheDutchports.

2013

REFINING CAPACITY

2003

+50% 3.2 million tonnes

LARGEST IN EUROPE

2.1

THE PORT OF ROTTERDAM 1.3 MILLION m3

FOR THE STORAGE AND TRANSIT OF VEGETABLE AND ANIMAL OILS AND FATS.

50% OF ALL EUROPEAN IMPORTS GO THROUGH THE DUTCH PORTS

IS THE BIGGEST PORT IN EUROPESTORAGE CAPACITY IN THE NETHERLANDS IS

1,500,000,000 LITRESTHIS IS APPROXIMATELY 100 LITRES PER HEAD OF THE POPULATION

2013

EXPORT VALUE OF OILS AND FATS

2003

€ 2.2

€ 4.8+120%

billion

2013

EXPORT OF OIL SEEDS, OILS AND FATS

2003

+50% 6 million tonnes

4.1

TOTAL IMPORT VALUE € 7.1 BILLION

TOTAL EXPORT VALUE € 4.8 BILLION

TOTAL PRODUCTION VALUE € 6.1 BILLION

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16 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 17

Sustainabilityandsustainabledevelopmenthaveahighpriorityforourcompanies.Weachieve this through practical actions andpolicy. Indeed, social responsibility goeshandinhandwithakeynationalandinter-nationaleconomicposition.Wearehappytotaketheinitiativeandaskchainpartnerstojoinin.Thisappliesforfieldssuchastheenvironment, food safety, healthy eatingand the sustainability of our rawmaterialchainsatanationalandinternationallevel.

We have highlighted several examplesto the side that illustrate how we areengaged, both nationally and internation-ally,inmakingtheoilsandfatschainmoresustainable.

TheoilsandfatschainisactivelyinvolvedininternationalRoundTablesforthesustain-abilityofpalmoil(RSPO)andsoy(RTRS,ISCC). Our companies are the initiatorsofthe Task Force Sustainable Palm Oil

and are actively involved in the Foun-

dation for the Transition to Responsi-

ble Soy. By theendof 2015we aim to

ensurethatallpalmandsoyoilintendedfortheDutchfoodmarketoriginatesfromsustainablesources.In 2013 61% of the

palm oil processed in the Netherlands

and 50% of the soy oil was produced

sustainably.

In recentyearstheDutchcrushingcom-panies have invested heavily in convert-ing theprocessingcapacityofsoybeansto rapeseed. As a result the depend-

ence on the import of vegetable (soy)proteinfromSouthAmericahasdeclinedand the supply of European (rapeseed)protein for the intensive cattle farm hasincreased.

Forourchainsustainabledevelopmentalsomeanstheresponsibleuseofoilsandfatsinahealthylife-style.Ontheinitiativeofourindustry, theTask Force for Responsible

Fatty Acid Compositionhasbeenactivelyengagedinimprovingthefattyacidcompo-sitionoffoodsince2003.Withresult.The

content of trans fatty acids in the Dutch

diet has fallen to very low levels.TheTaskForceisrecognisednationallyandinterna-tionallyastheepitomeofawell-functioningformof self-regulation.An initiativeundertheTaskForce is theHealthyFryingcam-paign launchedtogetherwithRoyalDutchCatering (KoninklijkeHorecaNederland) in2004.In10yearstheuseofliquidfatoroilincafeterias increased from51% in2003to85%in2013.

We lead theway in improving theenergyefficiencyofourmanufacturingprocesses.Since its start in 1993, the oils and fatschainhassignedup to thecovenantwiththeDutchgovernmentaspartoftheMulti-

Year Agreement Energy-Saving (MJA3).In the past 20 years, the chain has suc-ceeded in improving its energy efficiencybyanaverageof2%eachyear.Currently,intotalapproximately40% less energy per

processed volume of oil or fat is used

than in 1993.

SUSTAINABILITY ON ALL FRONTS

OP WEG NAAR DUURZAME ONTWIKKELING

RESPONSIBLE FRYING: LIQUID FRYING FAT OR OIL

INCREASED SIGNIFICANTLY

2003 2013

FROM51% TO

85%

THE USE OF

IN CAFETERIAS IN ONE DECADE HAS

SUSTAINABLE PALM OIL

30%53% 61%

2011 2012 2013

100%

2015Ambition

IN FOOD

40%

ENERGY-SAVING 1993 2013

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18 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 19

We encourage the recycling of oils andfats.Thecollectionofusedfatscontributestoabetterenvironment.Ontheonehandbecauseusedfryingfatsdon’tendupinthesewerswheretheycancausedamage,andontheotherhandbecauseusedfryingfatandcookingoilcanbegivenasecondlifeasbiofuel.In2012thecampaign ‘Recycle

Frying Oils’was launched,whichaimstoreclaim 10 million kilogrammes of usedfryingfatfromconsumersin2020.This ishalfofallthefryingfatusedinhomes.Cur-rently40%ofthistargethasalreadybeenachieved.

Biodieselproductioncontributestoachiev-ing the government’s sustainability objec-tiveofobtaining10%ofallenergyfortrans-portfromrenewablesourcesin2020.Thetotal Dutch biodiesel production in 2013was1.4milliontonnes.All raw materials

meet the sustainability requirements

set by the EU. 75% of the biodiesel fortheDutchmarketusesrawmaterialsthatareresiduesofotherindustrialprocesses.These are mainly used cooking fat or oilfrom the industry, the catering sector orfromconsumers,andanimalfat.Inadditiontoastrongincreaseintheuseofoilsandfatsforbiofuels,theuseofoilsandfatsbytheDutchfoodindustryhasalsoincreasedinthepastdecade(+17%).

In2012, additionalproductioncapacity forbiodiesel became available in the Nether-lands for theEuropeanmarket.We investheavily in new applications for oils andfats inthebiobasedeconomy.Inthiswaywearehelping to reducedependenceonmineraloil.Goodexamplesaretheinvest-

mentsinalgaeoilandthemarketforbiode-gradableplastics,wherevegetableoilsandanimalfatsplayagrowingrole.Becauseoftheirproperties,oilsandfatsareverysuit-ableforuseintheautomotiveindustry,forexample.

4,000,000 KILOGRAMMES OF USED FATS COLLECTED

OP WEG NAAR DUURZAME ONTWIKKELING

FOOD FEED OLEOCHEMICALS BIOFUELS

Use of oils and fats in the Netherlands

USE

IN M

ILLI

ON

S O

F TO

NN

ES

0

0.5

1

1.5

2

2.5

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

SUSTAINABILITY ON ALL FRONTS

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20 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 21

Thegrowingdemandforoilsandfatswillcontinue in the coming decades. Up to2050 global demand for oils and fats isexpected to increase by approximately35%toover250 million tonnes. It isanenormouschallenge tomeet this increas-ingdemandinasustainablemanner.

Thedrivingforcesbehindthisdevelopmentareworldpopulationgrowthandincreasedprosperity in emerging economies. Thegrowing need for biofuels and develop-ments and new applications for energy,chemical and technical products within amorebiobasedeconomyalsoplayarole.

The Dutch oils and fats chain has grownsignificantly in recent years and thepros-pects for the futurearegood. In thepastdecade the industry has invested over€ 2 billion (on averagemore than € 200millionayear)intheNetherlandsinexpan-sion,modernisationandsustainability.

TheDutchoils and fats industryhas thusanticipated thegrowingdemand.We lookto the futurewith confidence. In additiontohigherimports,weseeopportunitiesforincreasing exports in the EUmarket.Wealsoexploitopportunitiesforexportingtheknowledge and experience gained in thepastdecadesinourcountry.

FOOD SAFETYA major responsibility lies with the indi-vidualcompanies,butfoodandfeedsafetycanonlybeguaranteedbyachainapproach.Theoilsandfatssectordevelopsriskanaly-sesandcodesandcoordinatessafetyandqualitysystemsthatformthebasisforsafefoodproduction.

In addition to European and Dutch regu-lations, the chain takes private initiativesin the field of food and feed safety. Forexample, our training programme Food

& Feed Safety of Oils and Fats annuallyattractsparticipantsfromhomeandabroadandtheprogrammehasbecometheinter-nationalstandardfortraininginthisarea.

INVESTING IN GROWTHGlobaldemandforoilsandfats isgrowingfast. In the past 15 years, the global pro-duction of oils and fats nearly doubled toatotalof185 million tonnescomparedtoapopulationgrowth rateof 11%.The fourmajor vegetable oils (palm, soy, rape andsunfloweroil)accountfor76%oftheworldproduction of oils and fats and animal fatforabout9%.15%of thetotalproductioncomesfromcoconut,olives,flaxseedandalargenumberofspecialityseeds.

CONFIDENCE AND INVESTING IN THE FUTURE

2013 2050

+ 35%

250 MILLION TONNESANTICIPATED GROWTH IN GLOBAL DEMAND

IN THE PAST DECADE THE INDUSTRY HAS INVESTED OVER EUR 2 BILLION IN EXPANSION, MODERNISATION AND SUSTAINABILITY

THE 4 MAIN VEGETABLE OILS

COLLECTIVELY ACCOUNT FOR 76%OF WORLD PRODUCTION

OUR TRAINING PROGRAMME FOOD & FEED SAFETY OF OILS AND FATS HAS BECOME AN INTERNATIONAL STANDARD

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22 THE DUTCH OILS AND FATS INDUSTRY AN INTERNATIONAL AND SUSTAINABLE CHAIN 23

Theoilseeds,oilsandfatssectorisfacingtheenormouschallengeatagloballeveltoprovidethegrowingworldpopulationwithsufficientfoodwhileminimisingtheimpacton nature and the environment throughmaximising yield per hectare, per cubicmeterofwater,perkilogrammeoffertilizer,andpergramofpesticide.

Newtechniquesarebadlyneededforthis.The development and approval of newvarietiesinEuropelagsbehindtherestoftheworld.Itisimportantthatcivildialogueabout genetic modification takes placein a transparentmanner and on scientificgrounds.

Investments in innovative and good agri-cultural practices (GAP) are needed. Theknowledge and expertise of the Dutchknowledgeinstitutionsanduniversitiesareofgreataddedvalue.

GOOD COMPETITIVE POSITIONThe competitiveness of the Dutch MVOchain is good: our excellent geographicallocation,good infrastructure and logistics,modern factories, international orientationandgreatcapacity for innovation togetherwithourknowledgeandexpertiseandthepresenceofglobalplayersinallthechain’slinks are valuable.We have everything inplacetocapitaliseontheopportunitiesandchallengesthatthefuturepresentsus.Thechallenges aremainly in the field of ena-blingworldproductiontogrowsustainablytomeetgrowingworlddemandandfurtherdevelopingabiobasedeconomy.

Partly becauseof theeconomic crisisweareseeinggrowingsupportforprotection-istmeasures.Freetradeandalevelplayingfield are of paramount importance to thepositionoftheNetherlands.IntheNether-lands,too,therearechallengeswehavetofacetogetherwithourpartners:clearinfor-mationabouttheroleofoilsandfats inahealthydietandthesupplyofwell-trainedtechnical personnel are examples of this.Thephysicalinfrastructureandinvestmentsin innovative developments also requireconstantattention.

COLLABORATION AS A STARTING POINTThe companies in the Netherlands thatcollectively form the chain for oils andfats believe strongly in collaboration andtaking responsibility.This is why in 2013they took initiatives for a private relaunchof the Product Board forMargarine, FatsandOilsinMVO.Withinthechainorganisa-tionforoilsandfats,partiesworktogetherfor amore sustainable and internationallycompetitivepositionoftheNetherlandsintheglobaloilsandfatssector.Wewanttoachieve this togetherwithour partners inother sectors, the government and withknowledgeinstitutions.

INDUSTRY

GOVERNMENTNGOs

COLLABORATION

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6 Close collaboration in the field of riskassessment and management byexchanging trade and production details between organised business andgovernment is anabsolutenecessityto ensure food and feed safety.Thegovernment must ensure that thedetailed insights into the trade andproductionflowsofour chaindonotdisappearwiththediscontinuationoftheProductBoardMVO.

7 Safeguarding food and feed safetyremainsakeypriorityforourchainandthegovernment.Wemustcontinuetoinvest in the quality and quantity ofsupervisorybodies,fewerandclearerrules,andharshpenaltiesforcompa-niesthatdonotfollowtherules.

8 We are well underway with therecycling of used frying and cookingoils. To substantially increase theshare of fats collected from house-holds,(local)governmentsandindus-trymustworktogetherandcomeupwithanactionplan.

9 The oils and fats chain is againstmandatory country-of-origin labelling.Companiesrecognisetheimportanceoftransparency,butbelievethatman-datory country- of-origin labelling doesnot provide consumers with clarity.Theindicationofthecountryoforiginofaningredientismeaninglessfortheconsumer and the indication of theplaceoforigin isunworkable inprac-tice.

10 Incollaborationwith thegovernmentand chain parties, the oils and fatschainwants towork forahealthy dietamongst consumers and specificallythe youth. Cooperation between theDutchNutritionCentre (Voedingscen-trum)andMVOcanplayanimportantroleinthis.

1 The industry needs a consistent gov-ernment policy at national, Europeanandinternationalleveltomakeinvest-mentsyieldandtocreateconfidenceintheNetherlandsasabusinessloca-tion.This applies in particular for thedevelopmentofabiobasedeconomy(including biofuels). European guide-lines for waste act as a hindranceratherthanastimulus.

2 Constantinvestmentinphysicalinfra-structureintheNetherlandsisneeded.Aninternationallycompetitiveburdenon our ports and investments in thetrainingoftechnicalpersonnelarenec-essary preconditions for keeping theinvestmentclimateintheNetherlandsuptostandard.

3 We call for an honest internationalplaying field. The Dutch oils and fatschain (and thus the Dutch economy)will benefit from the liberalisationof trade, including the unrestrictedimport of rawmaterials in the Euro-peanUnionandtheabolitionofexportduties and barriers by Argentina,

Russia,Ukraine,IndonesiaandMalay-sia.Inatimeofeconomicrecession,weseetheriseofprotectionistsenti-mentsandlawsandregulations.It isessential that (implementing) legisla-tion in Europe is more harmonisedandthatnoadditionalnationalregula-tionsareintroduced.

4 We are convinced that genetic modification can contribute to a sus-tainable world food production andincreased food security.We stronglybelieve that decisions on themarketauthorisationofnewGMOsmustbetakenonscientific grounds.Wecallforpoliticalcouragetobreaktheideologi-calimpasseinthisarea.

5 We see the government as a keypartnerinmakingourchainsustainable.We call for continued support of oursustainabilityprocesses,atanationallevel forexample through theMJA3,and internationally through, forexample, IDH, the SustainableTradeInitiative.

PRECONDITIONS AND ACTIONS

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MVO-DutchoilsandfatsindustryLouisBraillelaan802719EKZoetermeerTheNetherlands

[email protected]

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OP WEG NAAR DUURZAME ONTWIKKELING