Increasing Europe’s plant protein production: Commission adopts report to turnaround deficit and keep pace with demand

27 Nov 2018 --- Current European plant protein crop production is not sufficient to cover the growing demand, notes the European Commission, which is exploring how to harness the potential of the Union’s output. Responding to the needs of farmers, producers and consumers, the Commission has adopted a report which reviews the supply and demand situation for plant proteins like soybeans, legumes, rapeseed, sunflower seeds, lentils and other pulses.

One of the key findings is that “a sustainable way forward” is urgently needed to keep pace with the rising demand for plant proteins across food and feed sectors.

There is high demand for plant proteins in Europe. In 2016/17, the EU demand amounted to approximately 27 million tons of crude protein and the EU's self-sufficiency rate varies substantially depending on the source (79 percent for rapeseed and 5 percent for soya). 

As a consequence, the EU imports annually around 17 million tons of crude protein, of which 13 million are soya based. However, there are positive trends: the soya area in the EU has doubled to almost one million hectares since the Common Agricultural Policy (CAP) reform in 2013. Similarly, in the case of pulses such as field peas, faba beans, lentils, and chickpeas, production has almost tripled in the EU over the last five years.

Meanwhile, the market for plant proteins has experienced considerable segmentation, with demand in high-value food sectors growing. The food market for plant proteins is seeing double-digit growth, driven by demand for meat and dairy alternatives.

Indeed, there is a European boom in the plant-based dairy alternative segment with Innova Market Insights data showing how over the past five years, the number of new plant-based dairy alternative drinks launches reported in Europe has grown continuously, with a CAGR of +19.5 percent  (2013-2017).

Between 2013 and 2017, soy continued to be the top ingredient for plant-based dairy alternative drinks, however, the market penetration is decreasing. Almonds and oats also show strong growth over the years, with the CAGR of +39 percent and +36 percent, respectively (2013-2017).

The growth in this segment comes despite regulatory constraints on marketing these types of products as milk following a European Court of Justice ruling in June 2017. Purely plant-based products cannot be marketed with names such as “milk,” “cream,” “butter,” “cheese” or “yogurt,” as these are strictly reserved by EU law for animal products.

Growing consumer interest in health, sustainability and ethics are driving plant-derived ingredients and products into high popularity with plant-based innovation flourishing. Innova Market Insights also reports that plant-based product claims increased by 62 percent globally (CAGR, 2013-2017) with growth occurring on platforms such as plant proteins, active botanicals, sweeteners, herbs and seasonings and coloring foodstuffs.

“Plant protein intake is on the rise in many EU regions, especially in western and northern Europe. Particularly promising is the market for meat and dairy alternatives, with annual growth rates of 14 percent and 11 percent respectively,” says the report.

“This segment is no longer a niche market, as major food companies enter the market and major retailers under their own brands. Around 90 percent of meat alternatives are consumed by flexitarians. Retailers often promote plant-protein-based products on the same shelves as traditional meat and dairy products.”

The segment is expected to continue growing and in a bid to avoid a major deficit of plant protein production in the coming years the report presents a number of new policy proposals which could increase the potential of protein plants in the EU.

The five priorities include:

• Supporting farmers growing plant proteins via the proposed future CAP, by including them in national CAP strategic plans, in particular through rewarding the benefits of legumes for environment and climate objectives through eco-schemes and environmental/climate management commitments under rural development programs; mobilizing rural development support e.g. to stimulate investments and cooperation along the food chain; coupled income support;
• Boosting competitiveness through research & innovation from EU and member states' research programs and the doubling of the budget of the Horizon Europe program for 2021-2027;
• Improving market analysis and transparency through better monitoring tools;
• Promoting the benefits of plant protein for nutrition, health, climate and environment with the support of the Commission's promotion program, amounting to close to €200 million (US$227million) in 2019;
• Increased sharing of knowledge/best practice in supply chain management and sustainable agronomic practices through a dedicated online platform.

Agriculture and Rural Development Commissioner Phil Hogan says that plant protein is an essential component of the European agri-food sector.

“Due to a variety of market and climatic factors, European protein crop production is not sufficient to cover the growing demand,” he says. “In that regard, I also want to acknowledge the strong interest of the European Parliament in further supporting protein production in Europe. This report will serve as an important reference point for an EU-wide debate on how to chart a sustainable way forward, which cannot be done by the European Commission alone and requires the active input of all stakeholders."

Farmers welcome Commission’s plant-protein plans

European farmers have welcomed the Commission’s long-awaited plans that set out priorities in this sector.

European agriculture group, Copa-Cogeca, says there have been years of tensions on the European protein food and feed markets because of this issue. The group has been calling for a long-term strategy on this segment for some time.

“The Agriculture and Rural Development Committee’s overall approach to further developing plant protein in the EU is heading in the right direction, especially in terms of the specific support for farmers through national plans within the future CAP framework and the role of research and innovation in key protein crops,” says Pekka Pesonen, Copa-Cogeca’s Secretary-General.

“Nevertheless, one additional priority to add to the list drawn up by Commissioner is the importance of biofuel by-products, which contribute enormously to securing feed supply across Europe. Strengthening European plant protein production will partly rely on the guarantees offered by a secure and stable framework for European biofuel producers.”

By Gaynor Selby