Jaime Piçarra, Secretary General of the Portuguese Feed Compounders Association (IACA), discusses the importance of pragmatic, science-driven strategies for the European feed industry. Amid conflicting perspectives on sustainability and innovation, Piçarra emphasizes data-driven communication, critiques the EU's ambitious organic production targets, and highlights the potential of innovative solutions like insect-based proteins.

Interview by Cemalettin Kanaş

Jaime Piçarra
Secretary General
Portuguese Feed Compounders Association (IACA)

Jaime Piçarra, Secretary General of the Portuguese Feed Compounders Association (IACA), brings decades of experience to his role, representing around 80% of Portugal's feed market. IACA's broad scope covers not only compound feed but also additives, premixes, and emerging sectors like pet food. Under Piçarra's leadership, IACA actively collaborates with FEFAC and engages in vital policy discussions within the EU and NATO, emphasizing the need for sustainable agriculture.

In our exclusive interview held on the sidelines of IDMA Istanbul, Piçarra shared insights on key challenges, including deforestation and antimicrobial resistance. He emphasized, “When shaping public opinion, it's essential that opinion makers and politicians base their views on science.” His approach underscores the importance of data-driven communication in addressing opposition to the livestock industry.

Piçarra also highlighted IACA’s innovative initiatives, such as the FeedInov consortium and the InsectERA project. While exploring the use of insects as a protein source, he noted the significant cost challenges: “Perhaps in ten years, insects could become the protein of the future.”

His candid reflections on the EU’s Farm to Fork strategy also stand out, as he questions the feasibility of increasing organic production to 25% by 2030, calling for a more balanced approach.

Below, you can find our questions and his frank and wise answers:

First of all, thank you for accepting and making time for this interview. Could you please start by introducing yourself?

Certainly. Thank you for the opportunity. It’s a great pleasure and a honor to be here in Istanbul at IDMA 24. My name is Jaime Piçarra, and I’m based in Portugal. I serve as the Secretary General of IACA, the Portuguese Feed Compounders Association. Our association represents not only compound feed companies but also those involved in feed additives, components, and premixes. We aim to integrate, in the future, all sectors connected to the feed industry.

We represent approximately 80% of the market share in Portugal, producing around 4.2 million tons of feed annually. The largest portion of this is for poultry, followed by nearly equal amounts for pigs and cattle, and then other species. Additionally, the pet food sector is now growing significantly.

We are very active within FEFAC, where we hold membership. Our President, Romão Braz, is a Board member, and I serve as the Vice Chairman of the Industry Compound Feed Committee (IFCP), focusing on economic and political matters. In this capacity, I was representing the European feed industry in various Civil Dialogue Groups, including those within the European Commission (DG AGRI), such as CAP (Common Agricultural Policy), International Aspects on Agricultural and Arable Crops groups. For example, in April, I traveled to Washington with Pedro Cordero, representing FEFAC because we are involved at the CPA, a Platform to discuss very important transatlantic issues, between EU and US. Recently, I was nominated Portuguese’s expert on food security at NATO. 

That’s impressive. Could you share more details about your trip to Washington and the discussions you had there?

In Washington, we organized an event that addressed a very important issue—Deforestation. Deforestation has become a significant concern in Portugal, and it's something I can discuss further in this interview. As part of our work with FEFAC, where we are actively involved in all the committees, our mission is to support our members in finding solutions to this challenge.

In Portugal, we have taken a proactive approach by creating a consortium with our member companies. IACA is the main shareholder of this consortium, called FeedInov. The goal of FeedInov is to introduce innovative solutions to the sector by collaborating with companies, researchers, and universities. The consortium includes IACA, several companies, researchers, and universities, with the aim of leveraging projects both in Portugal and through the European Commission to explore and develop new solutions.

DEFORESTATION AND AMR PRESSING CHALLENGES

It seems that contemporary issues played a role in establishing this consortium. How would you categorize these issues?

Key issues include deforestation, animal welfare, reducing greenhouse gas emissions, and introducing additives to modify feed formulations. I believe Pedro Cordero might have mentioned the GFLI (Global Feed LCA Institute) project during his interview with Feed Planet; it's a tool we use to measure carbon footprints. In Portugal, we are actively using this tool. We also have a project aimed at reducing antimicrobial resistance (AMR). The focus is on lowering antibiotic doses, particularly in pigs, as this is where we produce the most medicated feed. The goal is to reduce antibiotic usage overall. Additionally, with the circular economy in mind, we have another project that incorporates co-products from the food industry. We are also working on a project to utilize manure from livestock, as it's essential to valorize this for use in the field.

FeedInov serves as the umbrella project under which all our initiatives fall. Our goal is to develop solutions and gather data to strengthen our narrative because, in Europe, there is significant opposition to us and the livestock industry.

Yes, indeed. In my interviews with Mr. Pedro Cordero and Hsin Huang, Secretary General of the International Meat Secretariat (IMS), it became clear that, unlike in Turkey, there is a notable segment of public opinion in Europe that strongly opposes livestock production. Impressively, they both emphasized the importance of respecting public opinion, as it is crucial in a democratic context.

Absolutely. Even if we don’t agree with everyone, we still have to respect their views. That’s why communication is vital. Communicating with data to persuade opposing parties.

When shaping public opinion, it's essential that opinion makers and politicians base their views on science. Take the opposition to GMO (Genetically Modified Organisms) use, for example. I can say that it’s driven more by ideology and emotions than by scientific evidence. We advocate for new breeding and genomic techniques (NGT), which are major issues in European agriculture right now. We’re currently waiting for a final decision from the European Parliament, which has already voted in favor. However, the Council hasn’t reached a qualified majority yet, so the matter remains unresolved. The Belgium presidency couldn’t convince Poland and now we have Hungarian Presidency and next Poland. So, I admit that we’ll loosing time until achieve a common position. And we need those tools to develop a more sustainable agriculture and livestock sector.  

FOOD SECURITY IS A MAJOR CONCERN FOR EUROPE AMID RELIANCE ON IMPORTS

When a major grain-producing region like Ukraine or Russia experiences conflict, price increases are often inevitable. What are the other impacts of such disruptions beyond just higher prices? 

When the war in Ukraine began on February 24, 2022, we were importing 45% of our corn from Ukraine. This situation forced us to seek alternative markets due to rising prices. We turned to suppliers in South Africa, Brazil, the United States, Canada, and Argentina. However, our options are limited, so we requested assistance from our government to address some issues in Brussels.

One challenge we face is with pesticide residues. The maximum residue limits in Europe differ from those in other regions. For instance, some South American countries use pesticides that exceed European limits. As a zero-tolerance policy is impractical, we requested permission for certain pesticides that are safe for human consumption but not currently permitted in Europe.

We have managed to import some raw-materials from South America, including Brazil, but it has largely been a matter of price rather than a complete loss of supply. The main difficulty was that our stock levels were only sufficient for two weeks. It’s also a big issue for us in terms of price volatility and food security. Strategic stocks, in particular, on cereals are essential for Portugal.  

Food security is a significant concern in Europe. In Portugal, for example, we depend on imports for 80% of our raw materials, primarily cereals. We source these materials from North America, South America, France, and occasionally Spain. Ukraine is still very important on corn, as Romania or Poland. We also import a large number of soybeans due to the critical need for protein, represents more than 550 million €.

INSECTS COULD BECOME THE PROTEIN OF THE FUTURE

Before we move on to other topics, I’d like to ask about any innovative projects you’re involved in.

One of our notable projects is called InsectERA. It focuses on using insects in feed, but it also explores applications in other sectors, including medicine, cosmetics and food. We are actively researching the use of insects (on aquaculture, petfood) and algae in feed for pigs and cattle. We recently conducted a survey among our members to gauge their opinions.

The majority of our members is open to using insects in poultry and pig feed, though there is more resistance in the aquaculture sector. Ultimately, it comes down to competitiveness and cost. We are committed to exploring these innovative solutions to enhance feed efficiency and sustainability.

The challenge with using insects as a protein source is primarily cost-related. Soybean protein is currently cheaper than insect protein, and we need to achieve a larger scale of production to make insects a viable alternative. Perhaps in ten years, insects could become the protein of the future, but it depends on market developments.

I’ve been in close contact with Danish institutes and companies that are successfully using insects in both feed and food production. Major companies like Cargill are also investing significantly in this area. Their investment suggests they see potential in this technology.

CAP MUST BE SIMPLIFIED TO EASE FINANCIAL STRAIN ON FARMERS

What are some of the current issues and challenges you are facing?

While I believe insects have a promising future, we need to continue investing and scaling up production. For now, the European Union’s protein plan focuses on more than just protein crops, which is also an important aspect of our strategy.

Our goal is to utilize all available protein sources, including biofuels, insects, and algae, to enhance sustainability. While soybean remains an essential source, we need to develop alternative proteins to reduce our reliance on imports.

However, achieving this requires scaling up production. We need to advance protein crop development in Europe to decrease our dependency on suppliers from Brazil, the United States, or China. For some additives, as Pedro has mentioned, we are currently 100% dependent on imports.

Currently, issues like the Red Sea situation are driving up prices, and we face risks that prices for premixes might fluctuate in the coming months. Notably, around 95% of feed additives are imported, with many coming from Chinese companies, which creates challenges for us.

The dominance of Chinese firms is problematic, particularly because European regulations are stringent and often restrictive. As a result, some companies have relocated their operations outside Europe due to these regulatory pressures. This shift impacts us and European farmers, who are also frustrated with the perceived double standards in import regulations. While regulations for domestic production within the EU are strict, imported products may not always face the same scrutiny, leading to complaints and calls for simplification of the regulatory framework.

Can you elaborate on the need for simplification?

The Common Agricultural Policy (CAP) needs simplification to reduce the administrative burden on farmers. The current bureaucracy related to payments, rules, and paperwork places a significant financial strain on farmers. It’s perplexing why the complexities and restrictions faced by farmers aren’t better understood. While they face numerous rules and limitations, imports can sometimes bypass these stringent requirements. This disparity has led to growing frustration among farmers, and the public is starting to realize the unfairness of the situation.

If European farmers were to stop production, it would have widespread negative effects, as the subsidies are intended to lower food prices. The current system is flawed and needs reform.

25% ORGANIC PRODUCTION TARGET BY 2030 UNREALISTIC

What about the EU’s Farm to Fork strategy and organic production targets?

The target to increase organic production to 25% by 2030 seems unrealistic due to costs, market competitiveness, and the fact that many farmers are not willing to adopt organic practices voluntarily. We have asked the Commission to reconsider this target. The new Commission should recognize the impracticality of these targets and find a balance between food & feed production and environmental concerns.

Sustainable agriculture requires both environmental protection and investment in new research. Without adequate support, many farms may struggle or close. It’s crucial to incentivize sustainable practices and ensure food security. Europe’s role in the global food supply chain is significant, and we must demonstrate our commitment to both sustainability and food production.