national renderers association fall convention ritz ...€¦ · sustainability –a market trend...
TRANSCRIPT
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“State of the Rendering Industry& NRA”
Tim GuzekChairman
National Renderers AssociationFall Convention
Ritz Carlton – Amelia Island, FLOctober 19th, 2016
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The Rendering Industry This Year and Opportunities Ahead….
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What’s Happened in the Past Year….
Large soybean and corn crops = low prices
Sustained low energy prices (biofuels, fuel, and natural gas)
FSMA feed rule finalized & compliance starting
Sustainability is a growing market trend
Food waste – a rendering issue – gaining national traction
NRA focus on helping our members
National elections in less than 3 weeks
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Crop PricesFarm Futures - Bottom line: The crop is big and soybeans may provide only limited help. Look for futures to grind lower into 2017 unless concerns about South American weather emerge.
Ag Web - Corn and Soybeans Post Key Reversal Lower After October 12 USDA Report
Wall Street Journal - Soybean, Corn Prices Fall as Record Harvest Looms
Government raises U.S. production forecast and export prospects
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Finished Product PricesFats
Source - The Jacobsen Company
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Finished Product PricesProteins
Source - The Jacobsen Company
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Energy PricesNymex Crude Oil vs. the Henry Hub Natural Gas
spot price
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Food Safety Modernization Act
• Mandatory compliance started in September
• NRA informing, training and assisting membership
• Rendering Code of Practice training
- Held June 21 - 23
• Rendering Code of Practice “201” training
- Online FSMA training curriculum course
- 1st session started July 11
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Food Waste – Trend and Rendering Concern
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Food Waste “Food Recovery Act,” H.R. 4184
• Goal - Save money and feed more Americans by reducing food ending up in landfills
– Would provide new federal loans/grants for composting and anaerobic digestion projects
– Could divert animal by-products and UCO to “less green” uses, reducing our raw materials
• NRA supports EPA’s Food Hierarchy
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Sustainability – A Market Trend
• 72% of Consumers want to learn more about
corporate sustainability initiatives
•75% of Consumers would be more likely to buy a
product or service if the company is making an effort to be sustainable
•82% of Consumers are more likely to purchase a
product that represents Corporate Social Responsibility than one that does not
•93% of Consumers have done something to
conserve energy in the last two years
Source: Clean Edge
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NRA Highlights - 2016
• Implementing 2020 Strategic Plan
• 2020 plan driving NRA programs
• New sustainability focus
• More communications telling our story
• Strong regulatory response
• Growing export markets
• Advocacy in Washington,
D.C.
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2020 Strategic PlanKey Stakeholders Told Us…
• Sustainability is a market driver, here to stay• Looking ahead - must be sustainable to be
competitive• Rendering sustainability offers
a solution for customers and suppliers to improve their green footprint
• We must enlighten them!
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2020 Strategic Plan
• Desired state: Our global community trusts the unique social, environmental and economic value NRA members deliver
• Vision: To deliver sustainable rendering solutions to our global community
• Mission: NRA advocates for a sustainable food chain, public health and the environment via production and marketing of rendered products and services
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To Accomplish This, NRA …
• Promotes effective public policy, regulation and technology
• Encourages responsible business practices • Supports free movement of rendered
products in domestic and international markets
• Improves stakeholder awareness and understanding of the value rendering delivers
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Rendering is Sustainability
• Rendering plays a critical role in sustainability of the food chain and consumer goods
• It must be economically viable while socially responsible and ecologically sustainable
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Principles of Rendering Sustainability
• Produce safe animal food
• Practice environmental stewardship and operate efficiently
• Care for local communities and employees
• Help feed a hungry world by providing nutritious feed ingredients for animal production by recycling responsibly
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NRA & Sustainability
• New Sustainability Committee
• Developing industry-wide profile
• Producing tools for individual companies to create their own sustainability profile
– Identified sustainability attributes for rendering
– Carbon footprint calculator measures energy efficiency (developed by FPRF-funded research)
– New infographic on rendering’s sustainability vs. other disposal methods (also from FPRF)
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NRA’s Future Focus from 2020 Strategic Plan
• Sustainability is our brand
• Communications
– Promoting
– Defending
– Managing crises
• Improving biosecurity & quality
• Sustain and increase membership
• Encourage future industry talent stream
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Spreading the “Sustainability Message” and More …
NRA Communications in 2016
• Promoted our sustainability brand
• Engaged with social media
• Produced new feed safety video with posters for plant use & FSMA compliance
• Upgraded NRA website with FAQ’s
• Developing “Rendering 101” curriculum for university professors
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Regulatory Offense … and Defense
• Created tools for members to comply with FSMA
– Popular APPI Code of Practice Training in June, On-line course at Kansas State this summer & fall
– Wrote thermal validation paper for FSMA audit use
• Gained workable changes in AAFCO definitions –UCO, yellow grease, animal fats
• Working with APHIS on new animal disease management plan
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NRA in Washington, D.C.Priorities This Year
• FSMA implementation, training, compliance
• Strong biodiesel RFS, tax credits
• Sensible environmental regulations
• Food Waste
– Prevent meat/bone loss
• Exports & international trade
• Washington, D.C. Fly-In,
June 13-15, 2016
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Promoting Exports-Growing Trade
• Small ruminant rule proposed, NRA submitted comments
• China - AQSIQ team visit mid-November
– Reopened market for U.S. poultry meal, feather meal, and tallow. Over $70M market
• Goal: U.S. ruminant MBM to Mexico
• Assisted members fix export
obstacles (trade servicing)
• Rendering information for new
APHIS vets
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NRA-APPI-FPRF PartnershipOne Staff
FPRF
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International Marketing and Promotion
• 18% of rendered products are sold overseas
• NRA receives $1.8 million/yr. from USDA to grow exports
– 70% industry funding match
• Hong Kong, Mexico City offices
• Consultants in aquaculture, poultry, dairy, pet food and EU policy
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NRA Challenges Ahead
• FSMA compliance starts September
• Biofuels
– Must prevent “Stop Animal Fat Tax Credits Act”
– Promote robust RFS
• New president & Congress support
• Expand exports via more foreign market access
• Food waste becoming important
– Seek level playing field among recyclers
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NRA Looking Forward• 2020 Strategic Plan will continue to drive
programs, resources
• Expand strategic alliances to increase understanding and support for rendering
• Work so FDA inspectors know COP means FSMA-compliant
• Assist members wanting to develop sustainability profiles
• Increase membership
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NRA Looking Forward
• Promote rendering’s sustainability
• Expect AAFCO change in feeding fat definition affecting uses of trap grease
• Provide member tools for more community outreach
• Defend the industry and marketplace
• New “NRA Update” member newsletter
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Future Industry Challenges
• Human food trends driving pet food purchases
– No byproducts, raw diet, natural, organic, grain free
• All animal food - Increased attention on additives, residues, FM, consistent quality
• Further strengthen community relations to ensure continued ability to operate
– Promote sustainability, jobs, tax base, volunteer commitment and civic involvement
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Years 2017 - 2020
Opportunities or Challenges?
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Thank You