The Irish Grain and Feed Association, IFGA, is the representative body of the grain and feed industry in Ireland. Our members utilise 1.3 million tonnes of the Irish cereal crop, we import 2 million tonnes of feed ingredients and we manufacture 3.5 million tonnes of compound feed. Farmers spend approximately €1 billion a year on compound feed and that represent 35% of their total input costs. Feed is still the major input cost in Irish agriculture.
We are very grateful for the invitation to appear before the committee and we would like to avail of this opportunity to highlight two very important issues that are coming down the track very fact, first, the serious deficiencies in the current EU approach to the approval of genetically modified cereals and protein crops and, second, the consequences of these deficiencies for the competitiveness of Irish farming and food production.
Ireland is more reliant on imports of compound feed ingredients than any other country in the EU. More than 50% of our feed ingredients are imported. By comparison, less than 40% of ingredients are imported in the UK. In mainland Europe, France and Germany import less than 30% of their ingredients. The problem for Ireland is that these imports are sourced almost exclusively in countries that are experiencing significant increases in the planting of GM crops. Therefore, any shortcomings in the EU system of approving GM varieties have a much greater impact on the Irish feed industry than on our neighbours.
Worldwide there are now more than 250 million acres of GM crops grown. Between 2005 and 2006, the year-on-year increase in acreage was more than 30 million acres. In the four major exporting nations, the USA, Canada, Brazil and Argentina, GM varieties now account for 90% of the soya crop and 60% of the maize and rape crops. As this trend continues, Ireland must rely to an ever-increasing extent on GM varieties in order to meet its feed ingredient needs.
It can take between two and a half and ten years for the EU to approve a GM variety. In fact, the standing committee in the EU has never approved a GM variety, it has always gone through by default and the Commission had to sign the varieties off. If one compares GM approval rates in Ireland with Japan — and consumer reports show Japan as even more GM phobic than Ireland — the approval of a new variety in Japan can take less than one year. Both approval systems adhere to the same robust internationally agreed standards which are aimed at ensuring consumer safety while at the same time protecting free trade and international competitiveness. The ever-increasing disconnect between the global growth in GM crops and the tardiness of the EU approval system is now causing serious damage to the Irish livestock industry. Unless corrective action is taken, long term damage will be done to the Irish livestock industry, to farm incomes and to our food exports.
All GM materials approved for use in the EU are rigorously and independently assessed by the GMO panel of the European Food Safety Authority, EFSA. The delays in approval are not just caused by EFSA but by the refusal of the political and administrative systems in the member states to accept scientific opinion coming from EFSA. Since June, this now includes Ireland. As well as creating problems for the supply of essential feed ingredients, this also has a detrimental effect on the consumer, as we are sending conflicting messages to them and, therefore, further confusing them about GM technology.
Feed materials are what we call bulk traded commodities. The zero tolerance policy for non-approved EU GM varieties within our legislation creates serious problems for the trade. This means in effect that no trace of an unapproved EU variety can be found in our imported consignments. With the massive increase in GM varieties, this operates as a virtual trade block. The delay in EU approvals exacerbates this problem. The problem is now reaching crisis proportions. Imports of essential GM feed ingredients will slow down or halt if the situation is not improved. The new generation of soya going on commercial release to farmers will give them between a 7% to 11% yield advantage. At today's soya prices, this is a differential of over $28 per acre when compared with conventional soya. At the present rate of approvals, we will not be ready for this switch to Roundup Ready 2. Soya imports will halt, Irish livestock production will be displaced by third-country imports fed on these same GM materials. Ireland must take a lead in ensuring that approvals of GM varieties are based on scientific facts.
The Government was a willing signatory to the Lisbon Agenda. This committed us to the protection and improvement of the competitiveness of all our industries. Current practices within the EU approval system for GM crops are not in harmony with the Lisbon Agenda. The Irish Grain and Feed Association would welcome the support of this committee in confronting what is now a major problem for Irish farming and food production. I have brought with me Dr. Pat Shiels from the mill and two of the importers. I urge committee members to address the issue of how they are trying to deal with pricing and providing nutritional rations for the future.