Select Committee on Environment, Food and Rural Affairs Minutes of Evidence


Memorandum submitted by Defra

INTRODUCTION

  1.  The EU Animal By-Products Regulation was adopted on 3 October 2002. It entered into force on 1 November 2002 and most of its provision will apply in Member States from 1 May 2003.

  2.  It is very wide ranging in its effect. This memorandum does not address all of the implications. However, it does cover the key issues of concern.

PURPOSE OF THE REGULATION

  3.  The Regulation is intended to avoid animal by-products being a risk to public and animal health. Accordingly, it controls the collection, transport, storage, handling, processing, use and disposal of animal by-products, as well as imposing certain restrictions on their marketing and import.

WHY WAS A REGULATION NEEDED?

  4.  The European Commission's proposals are based on opinions from the EU Scientific Steering Committee (SSC) recommending the safe sourcing, safe processing and safe utilisation of animal by-products and on the results of Commission inspection visits to Member States. The Commission sees the proposed Regulation as a step towards the prevention of feed-borne crises such as BSE and the dioxin contamination of feed.

SCOPE

  5.  The Regulation controls:

    —  animal carcases, parts of animal carcases (including blood) and products of animal origin which are not intended for human consumption;

    —  manure and gut contents;

    —  ova, embryos and semen which are not intended for breeding purposes; and

    —  catering waste.

CATEGORISATION OF ANIMAL BY -PRODUCTS

  6.  Within the Regulation animal by-products are categorised according to the risks they pose to public or animal health.

  7.  Category 1 is high risk material and must be destroyed. It includes the carcases of animals suspected or confirmed as having a TSE, the carcases of zoo and pet animals, Specified Risk Material and catering waste from means of international transport.

  8.  The permitted disposal routes for Category 1 material are:

    —  incineration;

    —  rendering, followed by incineration;

    —  rendering to 133C and 3 bar pressure followed by landfill; and

    —  for catering waste from international transport, landfill.

  The Regulation does however provide a derogation which permits the burial of dead pet animals. We intend to exercise this derogation.

  9.  Category 2 is moderate risk material, for example gut contents and manure, screenings from the wash water at pig and poultry abattoirs, condemned meat from abattoirs, and animals which die on farm where the SRM has been removed at point of disposal.

  10.  The permitted disposal routes for Category 2 material are:

    —  incineration;

    —  rendering followed by incineration;

    —  rendering to 133C, 3 bar pressure followed by disposal to landfill, use as a fertiliser or treatment in a biogas or composting plant;

    —  for fish, ensiling or composting in accordance with rules which have yet to be established; and

    —  for rendered fats, use in an oleochemical plant to produce tallow derivatives for technical use only.

  11.  Category 3 material is low risk material, essentially that which is fit for human consumption.

  12.  The permitted routes for Category 3 material are:

    —  incineration;

    —  rendering followed by incineration or landfill;

    —  rendering followed by use in feedingstuffs or fertiliser;

    —  use in a petfood plant;

    —  use in a technical plant for production of products such as glue, pharmaceuticals, medical devices, cosmetics etc;

    —  treatment in a biogas or composting plant;

    —  for fish, ensiling or composting in accordance with rules which have yet to be established; and

    —  for rendered fats, use in an oleochemical plant to produce tallow derivatives.

KEY EFFECTS

  13.  The Regulation:

    —  bans the routine burial of fallen stock;

    —  allows the treatment of animal by-products in approved composting or bio-gas plants;

    —  maintains the existing UK ban on swill feeding;

    —  introduces controls on animal carcase incinerators; and

    —  requires the treatment of some previously uncontrolled animal by-products.

CONSULTATION PROCESS

  14.  This Regulation has been a long time in gestation, negotiations with the Commission having begun four years ago. Throughout that period we have tried to forewarn those likely to be affected of the Commission's evolving thinking and to collect information from the industry to inform the UK's negotiating position. We have used both informal and more structured consultation processes to engage industry representatives in discussions on particular sectoral difficulties and how they might be overcome. On some of the key issues, such as fallen stock and composting, we established working groups with industry involvement, and wider steering groups consisting largely of external stakeholders.

  15.  The first written consultation was issued on 10 November 2000 (with a draft RIA. Further consultations followed on 19 February 2001, 17 April 2001, 20 November 2001, 17 April 2002 and 3 July 2002 and made available on the Defra website (http://defraweb/animalh/by-prods/letters-press.htm), culminating in a consultation on a draft enforcing SI and Regulatory Impact Assessment, which was issued on 27 January 2003. Copies of the consultation issued on 27 January have been placed in the Library of the House. Over the same period, explanatory memoranda were also submitted to Parliament and a debate was held on the proposal on 7 March 2001. The scrutiny history is at Annex 1.

  16.  Despite the wide and early consultation, some unforeseen issues have emerged very late in the day. This has happened in all Member States. As many as 17 transitional and implementing measures required by Member States were being considered by the Standing Committee on the Food Chain and Animal health as late as 16-17 April 2003. This was just two weeks before the Regulation was to take effect in Member States.

UK'S ACHIEVEMENTS IN EU NEGOTIATIONS

  17.  Whenever European legislation with this degree of impact is proposed, questions inevitably arise about how the eventual decision was reached. The UK is very supportive of the overall aims of this package of measures and has worked very hard to influence the Commission's thinking in a number of areas.

  18.  We succeeded in the following:

    —  removal of the proposed controls on the transport of manure between farms;

    —  the inclusion of proportionate controls on animal carcase incinerators;

    —  the inclusion of controls to allow specified risk material to be burnt in low capacity incinerators;

    —  avoiding a complete ban on the burial of ruminant carcases, and allowing burial in remote areas;

    —  allowing burial as a disposal route for ruminants, as well as other animals, in the case of a major disease outbreak on sites supervised by the competent authority; and

    —  obtaining a change in the requirement to have a 2 mm to a 6 mm screen for the treatment of waste water from abattoirs and rendering plants.

  19.  In addition we obtained transitional measures in the following areas:

    —  The use of used cooking oil in animal feed until 31 October 2004 to allow time for alternative disposal routes such as biodiesel production to come on stream, thereby avoiding environmental problems associated with blocked drains, fly tipping etc.

    —  The separation of Category 2 and Category 3 oleochemical plants. The Regulation requires plants processing tallow derived from Category 2 material to by physically separate from plants which process tallow derived from Category 3 material.

    —  The use of small (less than 50 kg/hr) incinerators which do not burn SRM. The transitional measure will allow light controls rather than the European standard to continue to apply to existing incinerators until 31 December 2004.

    —  The rendering of mammalian blood at atmospheric pressure rather than the required pressure cooking standard until 31 December 2004. This is to deal with concerns about the capacity for treating blood to the required standard within the UK.

    —  The rendering of mammalian by-products at atmospheric pressure rather than the pressure cooking standard, if it is to be used in the production of petfood, until the feed restrictions in the TSE Regulations are lifted.

    —  The collection and disposal of waste food until 31 December 2005. This will allow food waste, other than raw meat, to continue to go to landfill, giving time for the development of composting and other approved disposal options.

SIGNIFICANT ISSUES

  Ban on burial of fallen stock

  20.  The rationale for this comes from three SSC opinions. The first, an opinion on fallen stock (25 June 1999), notes that there is little reliable information on the extent and rate of infectivity reduction of BSE/TSE following burial.

  21.  The second, (28-29 June 2001) applied a framework for assessing the risk from different waste disposal processes to burial. It used three criteria: characterisation of the risk material involved, risk reduction and the degree to which the risks could be contained.

  22.  The evidence relating to those criteria was re-considered at the SSC meeting on 16-17 January 2003. The following uncertainties were identified:

    —  location of burial sites;

    —  potential for transmission of TSEs from specified risk material buried near the surface was poorly characterised;

    —  extent to which infectivity would be reduced by burial;

    —  penetration of prions into leachates and groundwater; and

    —  dangers arising from "re-engineering" in areas where previous burial of TSE contaminated material had occurred.

  Given these uncertainties, the Committee confirmed their earlier view that the burial of animals poses a significant risk.

  23.  The risks of burial were also considered by the Spongiform Encephalopathy Advisory Committee (SEAC) during the foot and mouth disease outbreak. They pointed to the importance of considering the potential for animal re-infection by TSEs through contaminated drinking water or pasture land, particularly in the immediate vicinity of a burning or burial site. This applied to both BSE in cattle and scrapie in sheep.

  24.  We were aware that a ban on burial would have significant consequence for the livestock industry, particularly with respect to the costs of disposal. We therefore established a stakeholder group consisting of members of the UK farming unions, representatives of sectoral groups and the collection and disposal industries to discuss the feasibility of establishing a national collection service for the disposal of fallen stock.

  25.  This met for the first time in April 2002. A smaller subset of this group, representing the collection and disposal industries prepared an outline proposal for such a service. The total estimated cost of this was just over £50 million, nearly £30 million of which covered the collection and disposal of cattle which Government already funds for TSE testing purposes.

  26.  The proposal was considered by Defra Ministers in October 2002, alongside a letter from the farming unions arguing the case for 100% government funding for the scheme.

  27.  At the first meeting of the stakeholder group it was made clear that Government could not fund this scheme, although it might be prepared to offer some funds for pump priming to get the scheme off the ground. Such a scheme would be likely to encourage compliance. However, Government policy remained that the polluter pays. In this respect the livestock industry was no different from any other.

  28.  A period of stalemate ensued when the farming unions refused to enter into further discussions on any scheme which required payment by farmers. As the date for implementation drew nearer the Government decided to produce a proposal for a voluntary subscription scheme with payments structured according to the number of livestock units on the holding as a way of breaking the impasse. This results in payment of £100 subscription for an average holding, £200 for a large one and £50 for a small one. The scheme would be topped up by a government subsidy digressive over three years with a maximum contribution of £10 million in the first year. Farming unions were consulted on the proposed scheme and have now lent their support to the proposal. We have now written to all livestock producers to explain what they need to do to comply with the Regulation and to invite expressions of interest in such a scheme. Our initial view is that we will need something approaching a 50% up take for the scheme to be viable, but we will also be looking at the type and size of holdings which express interest in joining the scheme in assessing its potential viability. The closing date for reply was 6 May. At the time of writing the viability of the scheme is not known.

  29.  Even if the response to our letter is very positive, there is a lot of work to do before a scheme is fully operational. We anticipate that it will take a minimum of three months from the date when the decision is taken on whether to proceed to get a scheme up and running.

  30.  The ban on burial has generated a great deal of concern. It is also surrounded by a number of misconceptions. The first is that we are the only Member State not to pay for the collection and disposal of fallen stock. A paper issued by the Commission in November 2001 (Annex 2) indicates the position in other Member States at that time. This shows a high level of variability, ranging from no government funding in some cases to funding through levies.

  31.  The second is that the UK is not making use of derogations available to it. The Regulation allows Member States to permit the burial of pet animals. The burial and open-burning of the carcases of fallen stock may be permitted only:

    —  in remote areas; or

    —  during an outbreak of notifiable disease if there is a lack of capacity at rendering plants and incinerators, or because transport would spread the disease.

  32.  We will be exercising these derogations. However, "remote areas" will be interpreted as the Scilly Isles and Lundy Island in England and the Highlands and Islands of Scotland. This is because the definition of remote areas in the EU Regulation is "where the animal population is so small and where facilities are so far away that the arrangements necessary for collection and disposal would be unacceptably onerous compared to local disposal". We do not believe that there are any areas other than those mentioned that could be said to comply with both parts of this definition.

  33.  The third misconception is that a scheme is needed if farmers are going to be able to comply. This is untrue. The infrastructure of knackers, renderers and incinerator operators is already in place. We are assured by industry that it has the capacity to deal with the estimated increase in the fallen stock requiring collection as a result of this ban. We have established a help line to give farmers the contact details of their local knackerman for those who may not have used such a service in the past. The telephone number was included in the letter that was sent recently to all producers.

  34.  The fourth misconception is that this is a completely new requirement. It is not. Current legislation permits burial and open burning only where there is genuinely no alternative outlet, such as a knacker or hunt kennel, available.

  35.  We will expect farmers to make every reasonable effort to comply with the Regulation as soon as it takes effect. We have also written to our enforcement bodies to ask them to take a reasonable approach to enforcement initially to allow time for the new arrangements to settle down.

COMPOSTING OF CATERING WASTE

  36.  Existing domestic legislation (The Animal By-Products Order 1999 (as amended)) prevents the disposal of catering waste which might contain meat in a way that enables livestock or birds to have access to it. Although this does not prevent composting or treatment in a biogas plant, it prevents the treated material being spread to land, so has effectively banned these treatments. The aim was to prevent the spread of animal diseases such as Foot and Mouth and Classical Swine Fever.

  37.  The EU Animal By-Products Regulation will permit the treatment in composting and biogas plants of catering waste containing meat and Category 3 animal by-products. The treatment standard in the Regulation for animal by-products is 70C for one hour in a closed system. However, for plants processing only catering waste with no other animal by-products mixed in, the Regulation allows national standards to be set.

  38.  The UK is required to meet stringent targets under the EU Landfill Directive for reduction of biodegradable municipal waste going to landfill. By 2020 the amount of biodegradable municipal waste must be reduced to 35% of that produced in 1995. The UK Government has also set recycling and composting targets under Waste Strategy 2000. By 2005, at least 25% of household waste should be recycled or composted. Composting and biogas treatment are expected to be a vital tool in achieving both these targets and in increasing the sustainability of biodegradable waste.

  39.  In permitting these practices we had to be careful not to increase the risks of spreading animal diseases. We therefore commissioned a risk assessment to examine the potential risk to public and animal health from the composting/biogas treatment of catering waste containing meat. Pathogens considered in the risk assessment included TSEs, exotic diseases and endemic pathogens such as E. coli and salmonella.

  40.  The risk assessment concluded that the composting/biogas processing of catering waste containing meat could be done safely provided that certain minimum treatment standards were applied.

  41.  Four common themes emerged from the consultation on our proposals for national standards. These were:

    —  they were too prescriptive and would severely restrict the development of the composting industry preventing the UK from meeting its landfill and recycling targets;

    —  the costs of the proposed laboratory testing requirements would be too high;

    —  the standards should not be applied to mechanical and biological treatment plants (MBT) when composting is used to stabilise the organic matter of material destined for landfill; and

    —  the length of the proposed ban on grazing following the application of compost/digestate to land did not fit in with farming practice, particularly in relation to digestate from biogas plants.

  42.  We have been able to meet most of the concerns expressed on these issues and have amended our draft implementing SI accordingly.

DISPOSAL OF BLOOD

  43.  Certain products (eg blood, feathers, hides and skins) are exempt from the scope of current EC legislation, (the Animal Waste Directive), as long as they come from animals that have passed ante-mortem inspection and are not to be used in animal feedstuffs. This exemption will end and these products will fall within the scope of the Animal By-Products Regulation.

  44.  In the case of blood this means that operators will not be able to apply untreated blood from abattoirs to land, nor will abattoirs be able to dispose of blood to the sewers.

  45.  As a consequence the costs of blood disposal for some abattoirs will increase, although the magnitude of the increase will depend on the local circumstance. However, we have worked very closely with the Meat and Livestock Commission and other industry experts to develop guidance on simple, low cost ways in which slaughterhouses could comply with the requirements. This guidance, along with some Q & A material about the Regulation, was issued to all red meat slaughterhouses on 21 February 2003.

  46.  Concern has also been expressed about the capacity existing within the disposal industry to process the blood. However our success in obtaining a transitional measure to allow blood to be processed at atmospheric pressure rather than to pressure cooking standards is important. We have been advised by the rendering industry that given this temporary measure the capacity is available.

WASTE FOOD

  47.  The ban on burial of animal by-products includes landfill. Thus waste food from retail outlets and food manufacture will no longer be able to go to landfill if it contains meat or other products of animal origin.

  48.  Although the British Retail Consortium was consulted on this Regulation in August 2001, the full impact on retailers has only recently come to the fore. We therefore asked the Commission for a transitional period to the end of 2005 during which time certain types of waste food could continue to go to landfill. This has been obtained.

  49.  The transition period will not apply to raw meat waste from supermarkets or to animal by-products that are already required to go to rendering or incineration under the Animal By-Products Order 1999, as amended. We do not believe that there is any justification for exempting supermarkets from a legal requirement that has long been complied with by butchers' shops.

  50.  Much of the waste food from food manufacture is already considered to be an animal by-product and is disposed of to rendering. However, due to differences in the definition of catering waste in the Animal By-Products Order (1999) and in the new EU Animal By-Products Regulation some additional material will become an animal by-product and will need to be disposed of by an approved route. The transitional measure will also apply to this material.

  51.  The Commission has issued a declaration confirming that it does not consider that the Regulation should apply to waste food such as biscuits, pastry and bread which do not contain meat, but which may contain material of animal origin, such as butter or lard. The Commission intends to come forward with a proposal to this effect but until this clarification is secured we intend to allow this material to continue to be incorporated into animal feed.

TIMETABLE FOR IMPLEMENTATION

  52.  The Regulation will be directly applicable in the UK and national legislation will not repeat its provisions, but will give effect to the Regulation by providing for offences, powers of entry etc. Until the various statutory instruments are in place enforcement of the Regulation will not be possible. In the meantime the enforcement provisions within the Animal By-Products Order (1999) will remain in force.

  53.  The enforcing SI for England has been delayed to take account of the implementing and transitional measures which were agreed in mid-April but have not yet been formally adopted by the Commission. A press notice was issued on 30 April to advise people of the position.

  54.  We recognise that there are many practical issues for those affected to resolve, and we have written to LACORS, the Meat Hygiene Service and the Environment Agency to ask them to take a sensible approach to enforcement during the first few months to enable the new arrangements to settle down and to give those affected time they may need to comply.

  55.  Because of the elections in Scotland and Wales the consultation on the implementing legislation was delayed. As yet it is not known exactly when the legislation will be in place in the devolved areas.

May 2003


 
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