The Rendering Situation in Australia

75th NRA Convention Presentationby Tim JuzefowiczARA Vice PresidentARA Vice President

29th October 2010

Presentation Overview

• Overview of the Australian Rendering Industry

• The Australian Renderers’ Association

• The Australian Rendering Industry Marketg y

• Recent and ongoing ARA Activities– ARA Workshopsp– Australian Rendering Industry Benchmarking Study– AUS/NZ Joint Marketing Partnership – Accreditation of rendering plantsAccreditation of rendering plants– 11th ARA International Symposium

• ChallengesChallenges

Overview of the Australian Rendering Industry

• ~100 Rendering plants employing 600 - 700 people

• Produces ~1,200,000 tonnes of product

• Value of products ~$800 million

• ~30 35% of protein meals exported• ~30 - 35% of protein meals exported

• ~65% of tallow exported

• ~Value of exports $400 million

The Australian Renderers’ Association

• 63 rendering establishments accredited by the ARA including Service and Abattoir renderersService and Abattoir renderers

• The ARA have listed 2 plants for the Collection, Processing d R li f F t d Oil f i f d t i land Recycling of Fats and Oils for use in feed material

• The ARA represents 102 of the 114 rendering plants

• ARA represents 54 of the 95 rendering companies

• ARA plants account for ~80% of Australian production

The Australian Rendering Industry Market

• Global Recession – did not affect trade “Animals don’t know the recession”

• Strong economy with high value of AUS $

• Meat protein consumption in Asia good

• Local demand strong with increases in all rendered productsLocal demand strong with increases in all rendered products

• Market steady if not flat

• Lower kill rates over the last 12 months (restocking, increased live exports, better pastures, better wool value)

The Australian Rendering Industry Market

• Export volumes down due to lower supply and high $A. US collecting demand and price benefit.

• Big increases in exports to China but down in Indonesia (USA & Canada competition)

• Poultry meal exports are well up due to use in pet and aqua feeds

• Blood meal static

• Very good Prices in last 12 months for poultry and MBM, flat on blood meal and healthy feather meal

• Excellent prices for fats and oils

ARA Workshops

• First workshop conducted in August 1991 and was preceded by the first symposium held also in August p y y p

• 25 workshops have been conducted with 677 people accredited and ~700 who have attended

• Lead Lecturer Bill Spooncer and Peter Husband as primary support primary support

• All attendees are tested through an examination to confirm competenceconfirm competence

ARA Workshops

• Rendering Plant Training– HACCP, Salmonella, GMP , Rendered Products, Laboratory

Testing, Plant Process and Equipment workshops

– Training provided to Plant Operations people, Customers and Regulators.

• Reference Hygienic Rendering of Animal Products – Australian Standard AS5008 &

The ARA Code of Practice– The ARA Code of Practice

Graduation

In the Lab

In the Plant

BENCHMARKING SURVEYSURVEY

Benchmarking Resource Use in The Rendering Industryg y

• Rendering plants are essential to the community – manage large volumes of animal by-products– manufacture animal protein meal fats & oils

BUT…………….

• Rendering plants are big users of resources– Gas Electricity WaterGas, Electricity, Water

• Rendering plants discharge large quantities of GHG (CO2) and effluent

Benchmarking Resource Use in The Rendering Industryg y

Figure 1: Energy use per tonne water removed

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Establishment

2008 2009 2010

Benchmarking Resource Use in The Rendering Industryg y

Figure 2: Energy used per tonne of raw material (2010 only)

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A C D E H Ia Ib N MeanEstablishment

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AUS/NZ Joint Marketing Partnership

• Early 2009 ARA & NRG conducted China and Phili i ti l i it f d d Philippines promotional visits for rendered products.– Chinese experiences of using rendered products p g p

in dietary formulations

– Pig and poultry diets– Pig and poultry diets

– Use in aquacultureq

– Generating profit from use of rendered productsproducts

ARA Rendering Plant Accreditation Program

ARA 11th International SymposiumSydney Exhibition & Convention CentreDarling Harbour 28th & 29th July 2011g y

ARA 11th International SymposiumDraft Program

• Drivers of tallow demand and price • Investment for growth • Investment strategies for cost control • Opportunities for International marketing specialty protein pp g p y p

meals• Rendering investment strategies in Brazil • Fire risk control – protecting investments Fire risk control protecting investments. • Pet food ingredients now and for the future• Heat recovery applications

A d • And more…..

Challenges

• “The Climate Crisis” and now another tax?– Emissions Trading Scheme (ETS)?– Emissions Trading Scheme (ETS)?– Carbon Pollution Reduction Scheme (CPRS)?– Carbon Tax?

"the government has neither studied nor explained thoroughly enough why such a carbon tax is needed, how effective and fair it is and how the payments are to be used." payments are to be used.

• Increasing energy, water and waste charges

Challenges

• The rendering industry needs to make clear to regulators the comparative value of the industry to the environment and society.

– Consideration to $ cost of finished products ie: Gold mining $/oz vs Rendering c/kgg g g

– Consideration to process & product evaluation ie: ld l d d i ti l igold a luxury and rendering an essential service

Thank you