Animal feed: The reasons for the “forced” price increase

2023-06-16 08:11:41

A few days before Eid El Idha, soaring sheep prices reign over all the country’s livestock markets. This increase, estimated at 20% for this year, is mainly due to the high cost of livestock feed, the drought, etc., but also to the rise in world prices of the raw materials needed for livestock farming.

Today, everyone is aware that breeding is extremely expensive, especially since we have had two difficult years due to the health crisis linked to the Covid-19 pandemic. A national context which is no exception to the rule since each year, as Eid El Idha approaches, everyone agrees that the feast of sacrifice will be more expensive this year because of the increase in price of sheep feed, which has had an impact on the price of mutton.

In Tunisia, three major industrial groups (Poulina, Alco-Rose Blanche Group and Alfa) have established themselves as leaders in the supply of raw materials, namely corn and soybean meal. But these companies themselves obtain the soybean meal from the company “Carthage Grains”, which is the only local supplier.

Follow state policy

Faced with this situation, the company in question finds itself in the dock, given that, according to information circulating on the Web, it is the only company responsible for importing raw materials for these foods (soya and maize), which fixes the prices as well as the quality as it wishes and which, to this end, holds the monopoly of this market. It is therefore at the origin of the excessive increase in the cost of production and the lack of compound feed for livestock.

Contacted by The Press to comment on this case and enlighten public opinion, a reliable source within “Carthage Grains” told us that there is confusion regarding the role of the company in this sector and that, since its creation in 2008 , it follows the policy of the State in this area.

“Specialized in the local processing of oilseeds into vegetable oils and proteins, “Carthage Grains” has ensured, since its creation, non-stop production to cover the needs of the country in order to meet its food needs”, we were told. entrusts.

In order to further explain the details of this case, our source indicated that the current distribution network was not created by “Carthage Grains”. Let’s go back in time. Until 1996, the Cereals Office was officially and exclusively responsible for the import and distribution of maize and soybean cake on the Tunisian market.

But after this date, the Office withdrew and disengaged from this activity and a specification was developed to govern imports of corn and soybean meal.

In 2008, “Carthage Grains” became the only supplier of soybean meal in the country. And since February 19, 2021, the Ministry of Commerce has imposed on “Carthage Grains” to open its sales to the general public by applying the same profit margin to large companies and farmers. From now on, any producer has the possibility of obtaining soybeans without going through intermediaries.

An economy 100 million dinars

“Carthage Grains started its activities on the Tunisian market in 2008, with two products that were 100% imported, namely oil and soybean meal. It is therefore an industrial unit which, over the years, has created added value since it imports soybeans which it processes to produce oil and soybean meal locally… The fact of Importing the seeds and processing them locally saves the Tunisian State each year between 80 and 100 million dinars in terms of imports. As a result, “Carthage Grains” has taken the place of foreign suppliers, but it has nothing to do with maize, whereas, according to some allegations, we hear that we have a monopoly on the import of grains of soybeans and corn…, and that the company sets the prices according to its will, especially since there is no fair competition! Still according to the allegations, “Carthage Grains” has only five customers, while we have a list of about a hundred customers, including almost all compound feed producers. Today, 30% of our production is intended for small compound feed producers and small breeders and 70% for the three major groups on the market,” we were told.

On another level, our source added that the Ministries of Agriculture and Trade follow a daily report from “Carthage Grains” on daily production, integration of new seeds, sales, customers…, to allow the State to manage the strategic stock well, and thus avoid deficiencies on the market in order to better manage the needs of the market… All this effort is followed by a series of continuous meetings to determine the situation of stocks, the need for import or not…

“Despite all the difficulties (unloading, supply of seeds, etc.), “Carthage Grains” manages to supply the market under good conditions. By way of example, in May 2023, the company supplied 34,000 t of soybean meal against an average national consumption estimated at 35,000 t… The company is therefore part of the solution and not of the problem and, contrary to what has been written, “Carthage Grains” is not the cause behind this increase in feed prices in the country. Today, “Carthage Grains” provides soybean meal at a price that is controlled and set by the State. This product is accessible to everyone and we continue, always, to work to produce products of Tunisian origin, which is in conformity with the general policy of the country, because with a price fluctuating according to the international market and according to the offer and demand, the solution lies in the local production of substitute products, meal or soybean oil,” he explained.

The use of imports, an increasingly unsustainable measure

It is in this same approach that the company has taken in hand, since 2014, the project to revive the rapeseed sector in Tunisia, in the spirit of getting out of dependence to ensure food security in the country and give a second blow to this industry.

“Each ton of rapeseed produced locally is a substitution for a portion of meal and soybean oil, but with 100% national production. Especially since rapeseed oil is a very good quality oil, better than soya and sunflower…, in addition to the fact that rapeseed cake is rich in protein. To do this, “Carthage Grains” has invested heavily in rapeseed and we have moved forward on this path. In this same context and in the continuity of these efforts, this year, the company signed partnerships with Utap, Inrat, Inat…, for scientific research and for the search for local seeds with more than 200 field trips organized in collaboration with the Crda…, we also have a lot of synergy with the various actors and we have done upstream work to further develop the sector and ensure proximity with producers to support them, supervise them, ensure the necessary follow-up… All gave extraordinary performances in addition to technical assistance to farmers. This crop has proven its effectiveness with doubled yields and confirmed resilience compared to cereals, which is in line with the general guidelines of the country and the government to assert food sovereignty. And for the first time, the public authorities have shown their determination to support this sector with a 2023-2025 projection for the cultivation of rapeseed, to go from 28,000 ha of rapeseed cultivated in 2023, to 42,000 ha in 2024, and reach 52,000 ha. by 2025. In this regard, rapeseed has become a component of the State’s national strategy. Furthermore, within the ministry, there is an entire commission to monitor the harvest, another to ensure and support the technical monitoring… There is even an “ad hoc” commission which brings together all the actors to identify the production constraints between the transformer, the collector and the producer”, explained our interlocutor.

And to add: “This year, we introduced an insurance mechanism with the Ctama. “Carthage Grains” has insured the farmers who grow rapeseed, all in a perspective of cooperation with the insurance company, for the sustainability and sustainability of the sector. We are, therefore, very committed upstream with the various players, because rapeseed is an answer for tomorrow, it is the future in the face of the challenge of agricultural production and the country’s needs in cereals, oil plant and livestock feed.

To conclude, our source told us that the use of imports is an increasingly unsustainable measure with, in particular, the food shortages which are multiplying, the devaluation of the Tunisian dinar, the increasingly growing demands, the soaring prices at the imports… Hence the urgent need for a global strategy centered on food sovereignty. “The latter requires our country to mobilize its natural, human, economic and technological resources to increase and improve its local food production and reduce its external dependence. To this end, encouraging a territorial sector is a relevant tool. The aim is to create a virtuous circle for the country’s economy where the emergence of local production of vegetable oils and proteins not only makes it possible to improve the productivity of cereal rotations, but also to limit the use of imports. .

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