World Grain -- December 2015 - 12

NEWSREVIEW

News review
Brought to you by World-Grain.com

Tiger pulls financial support from
Dangote Flour Mills
JOHANNESBURG, SOUTH AFRICA - In
mid-November, Tiger Brands Ltd. informed the
board of Tiger Branded Consumer Goods Plc
(TBCG) - formerly Dangote Flour Mills Plc
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support with respect to its investment in TBCG.
Additionally, Alhaji Aliko Dangote, owner of Dangote Industries who also holds a
10% stake in Dangote Flour Mills, as well as
Dangote
Olakunle Alake, Asue Ighodalo and Arnold
Ekpe, have resigned their appointments as directors of TBCG.
Tiger Brands has said it is "currently exploring various alternatives with regard to its investment in TBCG."

In 2012, Tiger Brands bought a majority stake of 63.4% in DanJRWH)ORXU0LOOVD1LJHULDQÀRXUSDVWDDQGULFHFRPSDQ\IRU
million. This purchase has cost investors millions in write-downs.
This latest turn of events follows the Oct. 8 announcement that
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is stepping down on Dec. 31.
Also in 2014, executives at Haco Industries, a Kenyan subsidiary
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sales to reach operational targets. This preinvoicing and manipulation
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For more on Tiger Brands, see article on page 18.

European Parliament rejects national GMO bans
STRASBURG, FRANCE - The European Parliament on Oct. 28
rejected a draft E.U. law that would enable any E.U. member state
to restrict or prohibit the sale and use of E.U.-approved genetically
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The members called on the European Commission to table a new
proposal and expressed concern that the law might prove unworkable
or that it could lead to the reintroduction of border checks between
pro- and anti-GMO countries.
"Today's vote gave a clear signal to the European Commission. This
proposal could turn on its head what has been achieved with the single
market and the customs union," said rapporteur Giovanni La Via (EPP,
IT), whose recommendation to reject the proposal was approved by
YRWHVWRZLWKDEVWHQWLRQV³2YHUWKHODVWIHZPRQWKVVHULous concerns have been expressed about the lack of any impact assessment, the proposal's compatibility with the single market, and also
whether it is actually feasible. There was no evaluation of the potential
consequences or of other available options. I believe that this proposal
could have negative consequences for agriculture in the E.U., which
is heavily dependent on protein supplies from GMO sources. It could
also have indirect negative effects on imports. Finally, there are concerns over whether this proposal could even be implemented, because
there are no border controls in the E.U."
COCERAL, FEDIOL and FEFAC, representing commodity collection and trade, oilseed crushing and compound feed and premix
manufacturing, said on Oct. 28 they are relieved by the decision of
the Plenary of the European Parliament to reject the commission's
proposal.
COCERAL, FEDIOL and FEFAC now urge the E.U. Farm Council to follow suit and equally reject the commission's proposal in
order to maintain the needed legal certainty for business operators in
the E.U. feed and livestock sectors, which are already facing a very
challenging market situation.
12

Photo courtesy of European Union.
The rejection is in line with the opinion of the relevant parliamentary committees and echoes the concerns voiced by affected food
and feed supply chain industry sectors, the groups said. COCERAL,
FEDIOL and FEFAC recently issued an economic impact assessment
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non-GM soy would lead to an increase in feed costs of around 10%
for the livestock sector (i.e. €1.2 billion if four E.U. countries optedout or € 2.8 billion in the event that all E.U. countries did so), making livestock production in "opting-out" countries uncompetitive
vis-à-vis not only non "opting-out" countries but also third countries,
whether on the home or global market.
The proposal, which would amend existing E.U. legislation to enable member states to restrict or prohibit the use of E.U.-approved
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the E.U. Commission April 22.
The Commission suggested that this proposal should be modeled
on another E.U. law, on GMO's intended for cultivation, which enWHUHGLQWRIRUFHLQHDUO\$SULO
This allows member states to ban the cultivation of E.U.-approved
GMOs on their territory.
December 2015 / World Grain / www.World-Grain.com

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World Grain -- December 2015

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