Betagro's new lab offers feed testing services [20 August 2008] The Betagro Science Centre, a subsidiary of Thailand's Betagro Group, has received THB 112 million (USD 3.29 million) for feed testing services. The lab will provide services to affiliates in the group and also external customers located in Lopburi, Nakhon Ratchasima, Phetchabun and other surrounding areas. Besides chemical and microbiological testing of animal feed, its capabilities also cover raw materials, raw meat, cooked products and water testing.
Rabobank launches F&A company stock indices [20 August 2008] Rabobank International has identified the next investment opportunities beyond commodities by launching Asia’s newest F&A (food and agriculture) company stock indices. Rabo Fastracks Index Series is designed to meet the investment community’s needs for F&A benchmarks to capitalise on the opportunities in this sector, which is poised to grow rapidly on the back of the ongoing commodity boom. Based on a basket of 20 F&A-related stocks in Asia Pacific, the indices evolve and intelligently introduces new underlying stocks at optimal times within the F&A cycle. This makes them unique compared to other commodities-based indices.
China food safety official committs suicide [20 August 2008] Wu Jianping, a senior Chinese official in charge of food safety committed suicide after being involved in an investigation, said a report from Caijing Magazine. The Director-General of the ministerial-level AQSIQ's Department of Supervision on Food Production had been questioned a day earlier by Beijing municipal prosecutors about his "economic problems", the report said. Wu, 42, gave details about his property, which included several apartments in Beijing, it said.
Asia Aquaculture ups production [19 August 2008] Asia Aquaculture, a subsidiary of Thailand based CP Group and the largest producer of shrimp in Sabah, Malaysia, aims to produce about 1,700 tonnes of shrimp this year, 400 tonnes higher than last year.General manager Pornphot Churod said with the company's six farms comprising 93 ponds in Sungai Abas, it harvested about 1,100 tonnes by July. He said 80% of the produce is for export to countries like Japan, United States and the European Union.
Asean-India FTA expected in December [19 August 2008] Asean and India are expected to ink an Asean-Indian free trade agreement in December after the pending issues of crude palm oil is resolved, said Director-General of Thailand’s Department of Trade Negotiations Chutima Bunyapraphasara. Under the pact, Asean and India aim to gradually start reducing tariffs on 80% of goods traded in 2010. Tariffs will be phased out to zero by 2012. Tariffs on another 10% of goods will be decreased to 5% by 2015.
Saha Farm foresees continued growth in exports [19 August 2008] Saha Farm Co in Thailand foresees growing cooked chicken exports. President Panya Chotitawan said Saha Farm’s exports keeps growing since it shifted focus from fresh to cooked chicken after the first bird flu outbreak in 2004. Its exports in the first six months of this year grew 12% to 21,783 tonnes and the whole year exports is expected to reach 50,000 tonnes.
Better US soybean harvest [18 August 2008] The USDA forecasts a soybean harvest of 2.97 billion bushels in 2008, a 15% increase from last year. It lowered its forecast for the US season-average price for soybeans by USD 0.50 to USD 11.5-13 a bushel and cut soybean meal price projection to USD 330 - 390 per short tonne, down USD 25 on both ends of the range.
China encourages pig production with subsidies [18 August 2008] China’s Ministry of Finance (MOF) has earmarked USD 41 million for the construction of more standardized pig farms and pig breeding farms. Before the new funds, the MOF extended about USD 14.7 for every fertile sow for the period July 1, 2008 - June 30, 2009. It also offered subsidy and insurance for fertile sows, as well as a subsidy on vaccination programs and compensation as a result of the mass culling after the PRRS outbreak.
Bulk ocean freight rates fall [18 August 2008] Ocean freight rates for shipping bulk commodities fell for four consecutive weeks as demand for bulk shipments weakened and port congestions around the world improved. The Chinese government's decision to temporarily postpone construction near the Beijing area due to the Olympics also contributed to the better rates. As of August 8, the cost of shipping grain from the US Gulf to Japan was USD 112/mt, down 6% from the previous week. The rate from the Pacific North West to Japan was USD 58, down 11% from the previous week.
Japan bans Swedish pork imports [18 August 2008] Japan's Agriculture, Forestry and Fisheries Ministry has barred exports from two Swedish companies after 8kg of fillet beef was discovered in a shipment of 24 tonnes of pig bones sent by the companies. Japan has not allowed beef imports from the European Union since 2001 because of BSE concerns. The beef did not enter the Japanese retail market and the ministry has asked the Swedish government to investigate how the mistake occurred.
US corn crop second-largest in history [15 August 2008] The US is expected to harvest 12.3 billion bushels of corn in 2008, according to the latest forecast by the US Department of Agriculture, making it the second-largest corn crop in history and above the average trade estimate of about 11.94 billion bushels. It also lowered the season-average farm price forecast for corn by USD 0.60 cents to USD 4.9-5.9 a bushel.
HK resumes poultry imports from UK [15 August 2008] Hong Kong has resumed poultry imports from Suffolk and Norfolk of the United Kingdom as the counties have taken control measures and no more avian flu cases have been reported. A ban was imposed after AI cases were detected in the region in November 2007.A ban is still in place for imports from Oxfordshire and Warwickshire counties following cases of AI in poultry farms there in June this year.
Malaysian delegation inspects Thai poultry plants [15 August 2008] Delegates from the Department of Veterinary Service in Malaysia are visiting Thailand currently to inspect poultry slaughter houses, poultry processing plants and milk products manufacturers totaling 10 facilities prior to accepting exports of Thai fresh and processed chicken meat and milk. The inspection is focused on sanitary and halal practices.
Chinese pork prices steady [15 August 2008] Retail pork prices across China remained flat week ending August 7 with beef and egg prices rising slightly. Chicken and mutton prices fell. A report from the National Development and Reform Commission (NDRC) said the retail price of pork averaged CNY 29 per kg for the period. Food costs, which make up a third of the consumer price index climbed 17.3% from a year earlier in June. An industry professional with New Hope Group said increasing pork imports from the US have helped stabilise prices.
Xinchang opens new chicken processing plant [14 August 2008] Xinchang Group in China’s eastern province of Shandong recently kicked off production at its newly established chicken slaughter house. The plant has an annual capacity of 300,000 birds per day and is equipped with state-of-the-art facilities from Meyn, Hi-Cook, and SFK. Xinchang has signed an agreement with Tyson Food for a JV in Weifang, Shandong province.
Korea imports more DDGS [14 August 2008] Korea's imports of dried distiller's grains with solubles (DDGS) have more than tripled during the first half of this year compared to the same period last year. The US Grains Council said in the first half of 2008, Korea imported 281,900 tonnes of DDGS, a 259% increase over the 75,500 tonnes imported during the same period in 2007.
Indonesia works towards meat imports from Brazil [14 August 2008] Indonesia’s Department of Agriculture appears keen on importing beef from Brazil although the regulation on meat imports from FMD infected countries has not been revised. It denied rumors that the Department had approved meat imports from Brazil.Brazil itself through its embassy to Indonesia exposed the potential of its meat production and expressed its optimism to penetrate the national meat market soon, adding that the country had no problem regarding the quality of its cattle products.
Pig farmers, meat processors oppose buffalo meat importation [14 August 2008] Philippine pig farmers and meat processors have denounced an order by the Department of Agriculture (DA) opening up buffalo meat (carabeef) importation to more users like food chains and hotel and restaurant businesses. The National Federation of Hog Farmers Inc and the Philippine Association of Meat Processors said that allowing the importation of carabeef from India will threaten the health of the livestock population since the country has not been declared FMD-free by the OIE. They also charged that the new DA regulation will be difficult to monitor and the meat is likely to find its way into wet markets and pull down pig and pork prices.
UK Pig industry strikes 'gold' in China [13 August 2008] In the midst of the Olympic Games in China, the UK pig industry has won a confirmation that China has lifted all restrictions on imports of livestock and meat from the UK which have been in place since the FMD outbreak last year. The Department for Environment, Food and Rural Affairs (DEFRA) in the UK is working on export health certificates for breeding pigs, pig meat, skins, hides, greasy wool and dairy products to allow trade to re-start. This will give British pig meat producers access to the biggest and fastest growing food market in the world.
Philippine pig producers calls for pork import ban [13 August 2008] Philippine pig producers have called on the government to impose a ban on pork imports from China, Vietnam and Cambodia to prevent the spread of PRRS. While the Philippines is currently not importing pork from these countries, there is currently no policy banning products from them. PRRS severely affected local hog populations last year, and the National Federation of Hog Farmers Inc said that allowing the entry of pork imports from these countries would further expose the local hog industry to this strain of virus and pose a serious health problem to the people.
Malaysia sets up goat research centre [13 August 2008] Malaysia plans to establish a USD 2.9 million goat technology and research centre in Terengganu. It will be located over 10 hectares within a Permanent Food Production Park and will work towards achieving self-sufficiency in mutton as the country needs 10 million goats a year. Currently, Malaysia imports about 15,000 tonnes of mutton and 50,000 goats annually, mostly from Australia.
Vietnam to import meats [13 August 2008] Vietnam may need to import pork, chicken and beef by the end of the year as rising feed prices and high interest rates are forcing farmers to abandon their businesses, said the Vietnam Animal Feed Association. This coupled with disease risks and a 20% interest rate, is forcing farmers, especially in the south, to leave the business. The association plans to invest in feed manufacturing and import raw materials to make feed and sell to farmers. It will also ask the banks to lower interest rate and urge the Finance Ministry to remove the value added tax on raw produce.
India’s soybean exports hit record high [12 August 2008] India’s soybean meal exports next year will exceed this year's record of 5 million tonnes according to the Soybean Processors Association of India. Rising exports is due to increased sales to Vietnam, Japan, Thailand and South Korea together with an increase in planting areas.By the end of July, soybean planting areas in India were at 8.8 million hectares or an 11% increase from a year ago.
Bill filed for duty-free import of feed ingredients [12 August 2008] To address the increasing prices of meat and poultry products in the Philippines, Representative Rufus Rodriguez has filed a bill seeking to provide zero tariffs on feed ingredients and farm equipment. If passed, it will ease the production woes of local pig and poultry raisers, who have been reeling from increasing production cost. Mr Rodriguez said the government should help farmers by providing better breeds and cheaper and readily available corn, noting that in other countries such as China, the US and parts of the European Union, farmers are subsidised to help them increase production.
Dalian Chengda invests in poultry processing [12 August 2008] China's Dalian Chengda Food Group has invested CNY 1.2 billion (USD 175 million) in the Chengda table chicken processing plant in Shenyang City's Xinmin Economic and Technological Development Zone. The first phase of this project will see the establishment of the Shenyang Chengda Husbandry Development Co Ltd which will have 400,000 heads in daily slaughtering volume and 120 million heads in annual slaughtering volume. In addition, it will develop 'Green' chicken products and will establish 30,000 quality chicken bases and 400 table chicken science and technology promotion bases.
Blue ear disease in Phu Tho [12 August 2008] Porcine reproductive and respiratory syndrome, PRRS has been detected in four communes in Vietnam's Phu Tho province. The Centre for Veterinary Diagnosis said 5 out of 6 samples sent by the veterinary service centre tested positive to PRRS. About 130 pigs in the four communes have died from the disease.
Goldman Sachs ventures into China’s pig industry [11 August 2008] Goldman Sachs recently invested some USD 300 million in acquiring more than 10 pig farms in China’s Hunan and Fujian province but no details of the deal have been released. Goldman Sachs currently owns a 46% stake of China’s Shineway Group and 23.7% stake of Henan Shuanghui Investment and Development Co Ltd. Industry professionals said the move will not have an impact on the domestic pork price.
Feed prices may drop [11 August 2008] Traders and feed producers are hoping for a respite from high feed costs as prices of grains and soybeans have fallen a little. Corn futures prices have dropped 12% over the past four sessions at the Chicago Board of Trade, after having surged 59% in the past year while soybeans, which rose 56% in the past year, fell by over 8%.
China unlikely to import more corn and wheat [11 August 2008] The US Department of Agriculture has forecast that China will not import corn and wheat in the coming months due to the higher international prices. The estimated CIF price for US wheat in August shipments to southern China was more than twice the price of domestic wheat. Similarly, the estimated CIF price for US corn in August shipments was about 60% higher than domestic corn.
Yurun Group to set up chicken processing plant [8 August 2008] Nanjing-based Yurun Group has earmarked CNY 160 million (USD23.5 million) for a chicken processing plant in the northeast of central China’s Henan province. The plant, which is designed to slaughter 30 million broilers per year, will produce 42,000 tonnes of fresh chicken products, with more than 120 varieties annually. The project is scheduled to be operational by the end of this year.
TUF reports sales growth of 31% [8 August 2008] TUF reported encouraging operations in the second quarter of this year, registering a sale growth of 30.7% in dollar terms to USD 518.2 million from USD 396.4 million a year ago. Good sales of tuna products, frozen shrimp and shrimp feed as well as canned sardine contribute to the growth. With current expanding sales, TUF expects total sales this year to exceed its original target of USD 1.8 billion and reach USD 2 billion.
Thai government allows feed price increases [8 August 2008] Thailand’s animal feed meal committee has allowed feed prices to rise by 10-20% after several requests were made by feed mills, citing higher costs of raw materials. Pig and chicken feed price increases took effect on August 1 and shrimp feed prices will go up on August 15.
PPA wants immediate ban on corn exports [8 August 2008] The Pakistan Poultry Association is lobbying with the government to place a ban on corn exports beause of the rising feed prices. Rising production costs has pushed the price of chicken and eggs up and banning exports will help stabilise local prices at an affordable level.
CPF to focus on foreign operations [7 August 2008] Over the next five years, the largest portion of Charoen Pokphand Foods' annual budget of nerrly approximately USD 119 - 148.7 million, will be shifted to foreign operations. The increased offshore investments are set to help lift sales revenue from exports and overseas operations to half of the total, up from the 35% it is at present.To widen its reach in Europe, CPF will add one sales office each in Poland, Portugal and Greece, bringing the number of its sales offices to 21.
Japan's Itochu in tie-up with COFCO [7 August 2008] Japanese trading house Itochu Corp has signed a cooperation agreement with COFCO, China's largest agricultural trading and processing company, to buy grain and other food around the world as well as to sell Japanese rice and other products and support Japanese food makers intending to operate in China. Itochu hopes to improve its buying power through the alliance. Japan is the world's biggest net food importer.
CPF to focus on brand building [6 August 2008] Over the next five years, Charoen Pokphand Foods will follow US based ConAgra Foods and focus on brand building, distribution, distribution and new food products. President and CEO, Adirek Sripratak said this would mean decreasing upstream activities and focusing more on downstream activities.
NECC wants ban on maize exports extended [6 August 2008] India's National Egg Coordination Committee, NECC has appealed to the Central Government to extend the ban of maize exports to one year to prevent exporters from holding the stock until exports resume. It has also appealed to the Government to impose a ceiling on the stock holding by traders so as to avoid hoarding. The Indian government banned the export of maize till October 15, to ensure adequate availability for poultry feed and to rein in the spiralling price of the commodity.
US beef ribs ready for Korea [6 August 2008] South Korea's National Veterinary Research and Quarantine Service (NVRQS) has cleared US beef ribs that were imported late last month. This will be the first time in almost five years that Koreans will have access to the imported cuts. NVRQS said 1.35 tonnes of short ribs, chuck ribs, rib finger intercostal and flanks have been issued inspection-cleared permits.
Industry experts address quality and price of soybean meal [5 August 2008] Nine speakers addressed topics that dwelt on the rising sbm price, the varying quality and determining the energy values, amino acids and amino acids digestability of sbm at the Soybean Meal Quality Conference (sbmQC) in Bangkok, Thailand yesterday. The event organised by Asian Poultry and Asian Feed Magazines produced by Asian Agribusiness Media, concludes today with another nine presentations by global industry experts.
Vietnam's seafood exports grow [5 August 2008] Vietnam is estimated to have exported USD 2.343 billion worth of seafood products in the first seven months of 2008, a 17.7% year on year rise. The country's General Statistics Office (GSO) said Vietnam’s aquatic product output was around 427,500 tonnes, up 15% against the same month last year. The figures brought the country’s total aquatic product output in the first seven months of 2008 to more than 2.55 million tonnes, up 11.4% year on year.
Malaysian feed producers widen corn sources [5 August 2008] Malaysia has begun sourcing corn from Thailand, Mynmmar, Pakistan and Bangladesh in an effort to diversify its sources after India banned corn exports. Until last month, Malaysia was sourcing nearly 90% of its corn from India. Malaysia imports around 250,000 tons of corn each month, mainly to be used in poultry feeds.
TNI Feed additives to manage branded products [5 August 2008] All the proprietary branded feed additives from Nutreco owned Trouw Nutrition International (TNI), will be managed by TNI Feed Additives in The Netherlands. The TNI Feed Additives Sales and Marketing structure groups the Selko and TNI Feed Ingredients forces. Among its selected product brands are Selko, TNIbetain, Optimin, and Fibosel.
Conference challenges traditional concepts of sbm quality [4 August 2008] Bangkok, Thailand plays host to a two day Soybean Meal Quality Conference starting today that will challenge traditional concepts of soybean meal quality and offer new ideas about how to measure the quality and major nutrients in soybean meals. Renowned speakers will assess the economics of different soybean meals and suggest how feed producers can best formulate to get maximum value out of their poultry diets.The conference is organised by Asian Agribusiness Media.
Hypor finalises acquistion of Franch Hybrides [4 August 2008] Hypor has finalised its acquisition of France Hybrides (FH) from Groupe Glon. France Hybrides now legally becomes part of Hendrix Genetics s.a.s., although distribution of FH in France will remain with the current network that includes Groupe Glon/France Genes. The acquisition fits with Hypor’s strategy to have leading positions in signifiant pork production markets in the world.
SFI announces a good 2nd quarter [4 August 2008] Singapore Food Industries has announced a Group revenue growth of 4.7% in Q2 of 2008, while its post tax profit increase by 29%. CEO Roger Yeo said the strong performance was led by strong growth in the Singapore operations which saw a 22% increase in turnover.SFI's UK operations also posted strong pre tax gains of 31.6%.
WTO talks collapse [1 August 2008] The World Trade Organization's Doha Development Round talks have collapsed dealing a blow to US exports of meat and poultry. Blaming India's refusal to compromise, it is viewed as a major setback. The success of the talks would have seen US red meat exports enjoy lower duties in many top foreign markets.
Japan secures marine resources [1 August 2008] Japan’s Nippon Meat Packers Inc, a major meat processor, has set up a joint venture in Uwajima, Ehime Prefecture with a seafood processing firm and other local partners to cultivate bluefin tuna as a first step toward entering the farming business for the top-quality tuna. The joint venture expects to start supplying the fish to domestic sushi restaurants and supermarkets by end 2009. It is targeting sales of JPY 1 billion (USD 9.3 million) in fiscal 2010.
Thailand on AI alert [1 August 2008] Thailand’s Department of Livestock Development has tightened surveillance across the nation for any possible new outbreak of the bird flu especially in the lower-north. The DLD's move followed report of mysterious deaths of chicken in Pichit province this week. It has not been confirmed yet whether the birds were affected by the bird flu. The last outbreak in Pichit province was early this year and it resulted in the culling of 59,000 birds.
Malaysia offers incentives to boost local meat production [31 July 2008] Malaysia's Ministry of Agriculture and Agro-based Industries has introduced a financial incentive program for producers of beef, dairy, goats, sheep, chickens, ducks, quails and pigs. This is to help increase local production and reduce imports. Details of the program was revealed at the third International Conference on Animal Nutrition 2008, held in Kuala Lumpur, Malaysia on July 29 and 30.
Pakistan to build dedicated grain and fertiliser terminal [31 July 2008] A consortium of banks led by the National Bank of Pakistan has agreed to lend PKR 6.52 billion (USD 91.51 million) to Fauji Akbar Portia Marine Terminals to build Pakistan’s first dedicated grain and fertiliser terminal at Port Qasim in Karachi. Scheduled to be operational in 2010, the terminal will be able to handle more than four million tonnes a year for all dry bulk cargos and will be equipped with fully automated unloaders, silos for grain storage, fertiliser storage, conveying systems and automated bagging lines.
Preregistration for IPE / IFE opens [31 July 2008] Online preregistration for the 2009 International Poultry Expo and International Feed Expo opens on August 1 at the show website, www.ipe09.org. The preregistration fees us USD 30 for online registration and USD 40 for registration via mail or fax. On-site registration will remain USD 50. The 2009 edition of the show will see the introduction of an Asian to showcase the poultry and feed industries in this region.
Bangladesh to build more warehouses [31 July 2008] Bangladesh will build new warehouses to increase its storage capacity of emergency food stock in the event of natural calamaties. Floods and cyclones recently damaged about 3 million tonnes of rice. Bangladesh presently has the capacity to store some 1.4 million tonnes of food grains but more warehouses are needed.
Thai shrimp farmers calls for government assistance [30 July 2008] Shrimp farmers in eight southern provinces of Thailand have threatened to demonstrate against the government if their calls for assistance is not met, as earlier promised by the government, by the end of July. Shrimp farmers, who are suffering from low prices have asked the government to reduce the price of shrimp feed by 10%, offer electricity assistance for small farmers, extend the debt moratorium for another year.
Malaysia looks for new corn sources [30 July 2008] Malaysia is looking at new sources of corn supply after being hit by the sudden ban in corn exports from India. Speaking to Asian Feed Magazine, Director General of the Department of Veterinary Services, Dato' Dr Aziz Jamaluddin said one potential is cooperation with Myanmar. He said the country needs up to 100,000 acres annually to farm two harvests of corn and will look at domestic as well as neighbouring potential, plus the use of technology to ensure quality.
Schools can help alleviate egg crisis [30 July 2008] India’s National Egg Coordination Committee said introducing eggs at mid-day meals in schools can help the egg industry overcome the crisis of rising production cost and low egg price. This will help create a market of 50-55 million eggs/week for egg producers in the state. It advised egg producers in Andhra Pradesh to follow suit in a bid to boost egg sales in the state.
Pakistan’s poultry industry shifts to wheat [30 July 2008] Corn exports from Pakistan are likely to create a shortage of wheat in the country as the poultry industry will shift from corn to wheat in producing poultry feeds. Pakistan’s corn production reached 3 million tonnes this year, while the demand for corn in the country is about 4 million tonnes. The poultry industry, which produces about 5.5 million tonnes of feed a year, consumes about 3.3 million tonnes of corn.
Singapore to farm premium fish [29 July 2008] Singapore's Agri Food and Veterinary Authority, AVA has embarked on a project to farm premium fish locally following its success with locall bred seabass last year. This is aimed at cutting reliance on imports.The cobia, also known as the black kingfish, ling, or lemon fish, is among the six species of fish identified as suitable for local farming by AVA. Singapore consumes about 89,000 tonnes of fresh fish annually. More than 90% comes from farms in Malaysia, Indonesia and Thailand, as well as from fishing vessels from around the world.
Sri Lanka affected by India's corn export ban [29 July 2008] Sri Lanka's poultry industry is facing a crisis after India banned maize exports and the All Island Poultry Association (AIPA) said the industry would collapse if a solution is not identified soon. The industry depends heavily on Indian maize imports and millers are short of stocks.The total demand for maize in the country is around 200,000 tonnes a year and the local production is limited to 25,000-30,000 tonnes per year.
Record wheat harvest in Henan province [29 July 2008] Henan province in central China, which produces one quarter of the country's wheat, harvested a record 30.6 billion kg of wheat this summer, a rise of 660 million kg over last year. The record harvest was attributed to extra funds of CNY 1.07 billion (USD153 million) spent in offering farmers subsidies for using improved varieties of wheat and purchasing farm machines plus additional acreage farmed.
DA allows more carabeef imports from India [28 July 2008] The Philippine Department of Agriculture (DA) has issued an administrative order allowing more carabeef imports from India. Under the order, duly accredited by the National Meat Inspection Service (NMIS) registered meat processors, meat traders, hotels and restaurants, and other end-users are allowed to import fresh frozen boneless and deglanded manufacturing grade and table cut buffalo meat, also known as carabeef. The carabeef is used in producing processed meat products like corned beef, hot dogs and luncheon meat. Importation will be done according to guidelines set by the OIE on the importation of buffalo meat.
IPC to discuss issues in poultry production [28 July 2008] The International Poultry Council's annual meeting will be hosted by the China Poultry Association in Beijing this year from September 24-26. Members will discuss issues affecting poultry production, consumption and trade plus a proposed global study on international salmonella-testing standards, an update on the OIE's avian influenza compartmentalization program, and the impact of grain prices on global poultry production. Member organizations from more than 20 countries will also present status reports on the state of their poultry industries.
Guyomarc’h to build new feedmill in Vietnam [28 July 2008] Guyomarc’h of France will build an aqua feedmill in Vietnam’s southern province of Dong Thap. The plant will have a capacity of 20,000 tonnes a month and will mainly produce pangasius catfish supplying fish farmers in the Mekong Delta.
CP Indonesia doubles profit [25 July 2008] Charoen Pokphand Indonesia has more than doubled its first semester year-on-year net profit, despite the higher costs plaguing the industry. The company realised an IDR 209.6 billion (USD 22.8 million) net profit which is 120% higher than the IDR 95 billion profit in the same period last year. Profits were mainly from sales of animal feed, day-old chicks and processed chicken meat.
CPF invests in huge grain terminal project [25 July 2008] Charoen Pokphand Foods Plc (CPF) is developing an animal-feed operation in Nakorn Ratchasima, Thailand as a grain terminal with a storage capacity of 200,000 tonnes. This will help the company tap into the sizeable corn production in the northeastern provinces. This represents the company’s biggest integrated feed operation with a capacity to produce 1.2 million tonnes of poultry feed a year.
Hong Kong finds beta-agonist in Thai pork [25 July 2008] Hong Kong inspected and recently found beta-agonist in pork exported from Thailand after having found no contamination of this substance in the meat for many years, revealed Director-General of Department of Livestock Development of Thailand Sakchai Sriboonsue. Hong Kong, however, did not suspend imports of Thai pork. DLD will tighten measures to prevent smuggling of beta-agonist from China into the country.
Vietnam plans for self-sufficiency in feed grains [25 July 2008] Vietnam plans to expand corn and soybean production to help its feed industry wean itself off from imports of these commodities. Imports amount to USD 1 billion/year. The livestock Breeding Department will prepare intensive farming areas for corn, soy-bean and grass using high yielding varieties. Under the project, the department plans to produce 11.5 tonnes a year and initiate contract farming for soybean to ensure that the farmers get a fair price.
DSM kicks off swine seminar tour for Asia [24 July 2008] DSM kicked off this week its swine seminar tour 2008 in Asia to extend service and promote its products to the swine industry in the region. The company held the seminar entitled “Unlimited Opportunities for the Swine Industry” in Thailand on Tuesday and will continue the swine seminar in Vietnam, the Philippines, Taiwan, Japan and South Korea.
AVA honours SFI with food safety award [24 July 2008] Singapore Food Industries Limited (SFI) was awarded the prestigious Agri-Food and Veterinary Authority of Singapore (AVA) Food Safety Partner Award for 2008. The Food Safety Partnership Scheme was developed by AVA to recognize food manufacturers and importers, supermarkets operators and food retailers, who have displayed commendable food safety assurance and food safety consumer education efforts in Singapore.
Sunzen goes 'green' [24 July 2008] Malaysia's Sunzen Biotech Bhd, an animal biotechnology specialist and feed additives manufacturer plans to develop more "green" or non-antibiotic animal healthcare products to improve food safety for consumers. Managing director Tan Kim Sing said the agricultural industry has turned to non-antibiotic animal feed additives and the trend is picking up in the region.
Peking Duck to be taken out of UK menu [24 July 2008] The popular Peking Duck could be off restaurants' menu in the UK owing to a EU ban on the ovens traditionally used to make it. UK officials are busy inspecting restaurants and sealing the ovens because they do not carry a CE (Conformit Europenne) mark to meet the standards on carbon-monoxide emission. Mu Dongliang, of the World Association of Chinese Cuisine said, "No matter what happens, I don't think Peking Duck will lose its international market. Traditional Peking Duck is delicious and healthy food." The clampdown comes despite officials conceding that no health problems linked to the ovens made in China have been reported.
More ready meals from S Khon Kaen [23 July 2008] S Khon Kaen Food Industry, a leading meat-based processed food company in Thailand, will launch more Thai and Chinese style ready-to-eat meals next month in an attempt to boost sales. The company will also expand its franchise noodle shops overseas, in particular in Eastern Europe, and will use meatball products of the company as a major ingredient.
Cofco to invest more on agri-products processing [23 July 2008] China National Cereals, Oils & Foodstuffs Import & Export Corporation's (Cofco) announced recently that it had signed a strategic cooperation framework agreement with central China’s Henan government. According to the company, it will over the next five years invest CNY 10 billion (USD 1.5 billion) in the province, primarily on agricultural product deep processing, grain and oil trade, food research and development, agricultural product storage and logistics, as well as commercial services industries through new constructions, acquisitions, joint investment and cooperation.
Pakistan to boost wheat production [23 July 2008] Pakistan’s Punjab government will spend PKR 900 million (USD 12.7 million) in the current fiscal year to convert saline land into fertile areas to boost wheat production in a move to overcome the wheat shortage in the country. It will also ask the central government to increase the wheat price next year to encourage wheat production.
China’s pork exports continue to slide [23 July 2008] China saw a sharp decline in pork exports in the first five months of this year, due largely to mounting pig production. China exported 30,000 tonnes of pork for the first five months, down 56% from the same period of last year. The export value was USD 100, down 17%. However, the average export price rose 90% year-on-year to USD 3,345 per tonne. Of the total exports, Hong Kong made up for 78%, or 23,345 tonnes, down 38% year-on-year.
Henan Poultry sets up pig processing line [22 July 2008] China's Henan Chuying Animal and Poultry Development Co Ltd has funded a CNY 120 million (USD 17.6 million) facility for a 150,000 tonnes per year live pig slaughtering and fresh pork processing production line in Zhengzhou, capital of Henan province. The project is said to be the largest in the city with annual slaughtering capacity of 2 million heads.
Pakistan starts exporting corn [22 July 2008] Pakistan has exported corn for the first time as production has exceeded domestic demand. The country expects to have a bumper stock of 3.7 million tonnes of corn this year, about 0.7 million tonnes in excess of domestic demand for food and poultry feeds.So far, the country has exported over 1000 tonnes of corn to Malaysia, Indonesia and other countries. Corn Pakistan is priced at USD 280-300/tonne.
Shandong’s live pig in stock up 45.6% [22 July 2008] The number of live pigs in stock in China's eastern province of Shandong for the first five months of 2008 jumped 45.6% year-on-year, guaranteeing a steady pork supply. Contributing to this is the preferential policy and rising profits. The provincial government expects that the total live pigs in the province to reach 33.4 million by the end of the second quarter of this year, rising 45.6% over a year earlier.
Compartmentalization to prompt raw chicken exports [22 July 2008] Thailand expects its compartmentalization system to encourage major buyers from Japan and the European Union to resume imports of fresh chicken meat. The Department of Livestock Development will next month raise the issue of poultry compartments with major importers including the EU, Japan, Singapore, South Korea, Hong Kong and Taiwan. At present, DLD has approved 11 poultry compartments covering 80 poultry farms or around 35 million birds/ one cycle of production.
Vietnam switches to white shrimp [22 July 2008] Vietnam is encouraging shrimp farmers to produce white shrimp (P. vannnamei) in addition to black tiger shrimp (P. monodon) to diversify shrimp products for exports. So far, the country has farmed the white shrimp on 12,411ha out of the total shrimp farming area of 369,094ha. So far this year, Vietnam has produced 12,300 tonnes of white shrimp and 78,300 tonnes of black tiger shrimp.
Suguna expands retail stores [21 July 2008] Indian poultry integrator Suguna Group will expand its “Daily Fressh” retail stores to 150 outlets in Tamil Nadu and Kerala states through franchise contracts by the end of the year. It started with 15 outlets at its headquarters in Coimbatore. Daily Fressh sells processed chicken, cooked and semi-cooked chicken products as well as fish and mutton. The group recently invested INR 60 million (USD 1.6 million) to install further processing lines at its plant in Bangalore to increase the range of its chicken products for the shops.
Vietnam’s feedmillers want VAT on raw materials removed [21 July 2008] Feedmillers in Vietnam have urged the government to remove the value added tax on feed raw materials to lower feed production cost. They said the government should set feed raw materials such as corn and soybean under a list of important commodities and allow the feedmillers to have access to the government’s credit for raw material purchase. Vietnam has removed and lowered import taxes for certain materials, but the feed price is unlikely to drop.
China Resources and Ng Fung in joint-venture [18 July 2008] China Resources Enterprise Ltd said its wholly-owned subsidiary Ng Fung Hong Ltd has set up a pig farm joint venture with Henan Cereals, Oils & Foodstuffs Import & Export Group Corp. The new venture has a registered capital of CNY 350 million (USD 51.3 million) with Ng Fung Hong contributing CNY 245 million (USD 35.9 million) in cash for a 70% stake in the venture. Henan Cereals will inject all of its pig farming, feed processing and livestock trading business as the remaining 30%. The joint venture will have an initial annual production capacity of 190,000 live pigs.
India’s corn exports ban unlikely to ease the price [18 July 2008] Corn price in India is likely to increase even though the country has imposed a ban on corn exports from July 2008 to the middle of October, said traders. They said the corn price plunge is temporary. After the ban was imposed last week, the spot price of corn lowered slightly by 1% to INR 957 (USD 26)/quintal and futures price dipped 8% to INR 894 (USD 24.2)/quintal. But traders forecast that the supply crunch will send the price beyond INR 1000 (USD 27)/quintal in a month.
AI in Vietnam again [18 July 2008] Specimens from dead chickens in Vietnam's southern Long An province have been tested positive to bird flu virus strain H5N1. Some chickens of a 3,000-fowl flock raised by a household in Can Duoc district were infected and died 10 days ago after developing bird flu symptoms.
PPA urges ban on corn exports [18 July 2008] The Pakistan Poultry Association (PPA) has demanded that the government impose a ban on corn export in the Trade Policy that will be unveiled today. The country produces 3.08 million tonnes but consumes 4.28 million tonnes annually. Despite this, Pakistan exports corn to Afghanistan and other countries of the Central Asia and imports from India, but now India has imposed a ban on corn exports. The association said that if an immediate ban is not imposed on corn exports, the commodity prive would rise sharply and would certainly push up the cost of chicken and eggs.
Tyson plans for major stake in Xinchang Group [17 July 2008] Tyson Foods Inc. plans to acquire a 60% interest in China-based Xinchang Group, China’s fifth-largest poultry producer. A company spokesman confirmed that a preliminary agreement had been signed in June with Shandong Xinchang Group, based near Qingdao in Shandong Province and the agreement is subject to further due diligence and government approvals. Once completed, the deal would give Tyson Foods 60% ownership in a vertically-integrated poultry operation consisting of Xinchang’s existing assets and a new complex currently under construction. Tyson is currently building a plant outside Shanghai to process and package chicken meat from 40-million chickens a year. Click here for a profile of Shandong Xinchang.
Japan to inspect one more Thai plant [17 Juy 2008] Delegates from the Ministry of Agriculture, Forestry and Fisheries of Japan (MAFF) will visit Thailand from July 21-23 to inspect one more poultry plant here prior to accepting exports of cooked chicken produced from the facility. MAFF officials will also perform re-inspection for the other 17 plants that Japan approved two years ago.
FTC clears Cofco for Smithfield purchase [17 Juy 2008] Cofco, China's largest agricultural trading and processing company, has been cleared by the Federal Trade Commission to purchase a 5% stake in Smithfield Foods Inc.The sale by Smithfield is to raise cash and pay down its current debt. The FTC said it granted early termination Monday of the waiting period required under the Hart-Scott-Rodino antitrust law, clearing the way for the sale.
Thailand’s GDP in farm sector to grow 4.1% [17 Juy 2008] Gross Domestic Product for the agricultural sector in Thailand is forecast to grow 4.1% in 2008, thanks mainly to good prices of alternative fuel crops like tapioca, sugar cane and oil palm that has encouraged farmers to expand growing, said Agriculture Minister Somsak Prissananantakul. Livestock production is forecast to grow 20.72%, fisheries 2.3% and plant crop 5.3%.
CP expands feed production in India [16 July 2008] Thailand's Charoen Pokphand Group is preparing to expand its operations in India with two more animal feed plants to be set up in Assam and Gujarat. Both facilities are expected to be operational late 2008 or early 2009. The company has so far invested USD 60 million in two feed plants in India employing 400 people.
Indonesia lifts bans on New Zealand beef [16 July 2008] Indonesia has lifted the temporary ban on imports of beef from New Zealand and poultry from the US after both exporting nations gave assurances their products met halal requirements. Indonesia banned imports of beef from New Zealand from July 7 over packaging that raised concerns the meat didn't follow halal requirements. Poultry imports from the US were banned from July 1 after reports that hens in Arkansas were exposed to low-pathogen strain of avian influenza.
Thailand, World Bank works towards waste management [16 July 2008] Thailand and the World Bank are working together to reduce air pollution from pig farms. The “Livestock Waste Management in East Asia” (LWMEA) project is to help participating pig farmers secure funding to improve their waste management systems and install technology to convert waste into power. It is estimated that ten swine farms will participate in the project. With a total pig population of 131,000 these farms will generate 6,250 kWh of electricity per day, reducing carbon dioxide emissions by 58,000 tonnes per year.
Thai feed committee yet finalize price issue [16 July 2008] The Thai government committee overseeing feed products has deferred its meeting to next week. The committee was expected to meet last week to discuss an increase in feed prices, especially formulations that contain high portion of feed ingredients with volatile prices like soybean meal and fish meal. The committee was also to discuss the import tariff on soybean meal.
US Department of Agriculture forecasts higher soybean meal prices [15 July 2008] The USDA has raised its soybean meal price forecast for 2008/09 (September-August) by USD 60 per short ton to a range of USD 355 - 415 based on expected lower soybean stocks this year and next year. The agency dropped its soybean production, acreage and yield forecasts after flooding in the Midwest. Consequently, USDA raised its 2008/09 soybean price forecast by $1.00 per bushel to a range of $12.00 to $13.50 per bushel.
Philippines bans birds and poultry from Arkansas, Haiti and the UK [15 July 2008] Following separate reports of avian influenza virus in the US state of Arkansas, Haiti and the United Kingdom, the Philippines has slapped a ban on imports of domestic and wild birds including poultry from these areas. Issuance of veterinary quarantine clearance for imports these places is also under suspension. The Philippines has existing bans against poultry imports from Denmark, South Korea, Saudi Arabia, Poland and Benin.
China supports redevelopment of pig production [15 July 2008] China is supporting the rebuilding of pig production with a CNY 2.8 billion allocation (USD 420 million). The funds will be used to promote pork production, ensure market supply and to build breeding and large scale hog farms particularly in snow and earthquake-hit regions. The National Development and Reform Commission has already channelled CNY 5.6 billion (USD 840 million) from its central budget to livestock farm construction so far this year.
Corn usage drops in the US, but prices forecast to rise [15 July 2008] The US Department of Agriculture has raised its forecast of 2007/08 corn ending stocks by 165 million bushels due to lower use expected for food, seed, industrial, feed and residual use. Use for ethanol production in 2007/08 dropped by 50 million bushels, following delays in plant startups and construction, as well as lower expected plant capacity utilization. However, the USDA raised its 2008/09 corn price forecast by 20 cents a bushel to an average of USD 5.50 - 6.50 a bushel in 2008/09, up from an expected average of USD 4.25 - 4.45 a bushel in 2007/08.
Indonesia bans NZ beef [14 July 2008] New Zealand beef exports worth NZD 94 million (USD 71.3 million) annually has hit a snag with Jakarta’s recent ban.Indonesian authorities claimed that New Zealand companies have failed to meet the importing country’s halal certifications and regulations on dual language labeling. Trade Minister Phil Goff will meet Indonesian officials in Wellington this week to discuss the ban which he says is unacceptable as until now, New Zealand has supplied Indonesia with halal beef, killed according to Islamic ritual.
Philippine government urges creation of halal agency [14 July 2008] The Philippine Department of Agriculture is pushing Congress for the creation of a national agency that will focus on the halal industry and has called on its industry partners for support. The proposed agency would regulate the halal industry as well as coordinate among various stakeholders to fully develop the sector. The Philippines already has the Philippine National Standards for Halal Foods that works in tandem with the National Halal Accreditation Board of the Philippines and other recognized regional accreditation entities such as the Muslim Mindanao Halal Certification Board.
Thai pig farmers encounter high feed cost, low consumption [14 July 2008] Pig farmers in Thailand are facing losses as feed prices keep rising while prices and consumption have been shrinking. Production cost is currently at THB 53/kg (USD 1.57/kg) but the farm-gate price of live pig is hovering around THB 50-52/kg (USD 1.49-1.55). Surachai Sutthitham, President of the Swine Raisers Association of Thailand said the raisers, however, have no plans to raise the pig price at the moment, as that would further discourage consumption. The price of feed ingredients are expected to continue to soar and swine production cost is forecast to increase to THB 55/kg (USD 1.63).
Thailand projects higher corn sales [11 July 2008] India's recent ban on corn exports has turned positive for Thailand, with exports projected to double in 2008/09. The price of Thai corn has moved up from USD 280/tonne in late June to USD 350/tonne. It is expected to rise further if demand continues to outpace supply. Main buyers are from Malaysia, Vietnam and Indonesia.
Feed prices in Thailand may be allowed to rise [11 July 2008] A meeting of the Thai government's committee that oversees feed could result in the approval for feed producers to raise prices, said the Director-General of the Internal Trade Department Yangyong Phuangrach. The increase, however, would be allowed only for some formulations, especially those that contain high portion of feed ingredients that experienced sharp price hikeslike soybean meal and fish meal. The committee will also discuss the import tariff on soybean meal.
CPF turns to overseas swine operations [11 July 2008] Charoen Pokphand Foods Plc, Thailand’s leading chicken and pig producer, has turned its focus on overseas investments in swine in Russia, Philippines and Ukraine, said Senior Vice President Rewat Hathaisattayapong as the local market is saturated. The live pig price has dropped to around THB 50/kg (USD 1.48) from THB 58-59/kg (USD 1.72-1.75) in April-May. Pork consumption has also dropped by 30%.
US beef back in South Korea [11 July 2008] US companies eligible to export beef to South Korea were allowed to begin slaughter after 5 am on Thursday, said the American Meat Institute. In Korea however, the reopening of the market is still being questioned. The opposition United Democratic Party has launched a probe into the current administration's negotiations with Washington on the new beef-import protocol.
Cofco to finalise Smithfield investment in August [10 July 2008] China National Cereals, Oils & Foodstuffs Import & Export Corporation's (Cofco) agreement to purchase a 4.95% stake in Smithfield Foods Inc., the largest pork producer and processor in the world is expected to be finished in August.Cofco has been enlarging investment in live pig breeding and pork processing in the past two years and will spend CNY 9.7 billion (USD 1.4 billion) building a 10-million live pigs breeding base in China's central south Hubei Province within five years. Chairman Gao Ning said that the company hoped to deepen its cooperation with Smithfield an in attempt to boost the development of the Chinese food processing industry.
20% higher yields from drought resistant wheat [10 July 2008] Drought-tolerant wheat developed in Victoria, Australia is returning yields up to 20% higher than non-GM controlled crops and this will contribute significantly to the demands of the global wheat market.Drought significantly reduced Victoria's wheat crops in 2006-07. With average yields worth approximately AUD 300 million (USD 286.7 million), a 20% boost could provide as much as AUD 80 million (USD 76.5 million) to the wheat industry. About 35-50% of wheat-growing areas are under drought risk and experts say this is likely to increase with the effects of climate change.
Malaysian farmers to cut production [9 July 2008] Malaysia's chicken farmers have been advised to cut production or cope with higher maize prices after India stopped exporting maize. Maize from India form 95 % of the chicken feed in Malaysia. In just two days, the price of maize jumped from MYR 980/tonne (USD 270) to MYR 1,200 (USD 370),said Lee Ah Fatt, President of the Federation of Livestock Farmers Associations of Malaysia. He urged members to cut chicken production by between 10 - 15% to reduce losses.
Thai feed producers allowed to raise price [9 July 2008] Thailand's Commerce Ministry has allowed feed companies to raise feed prices. Feed producers have been seeking a price hike ever since the prices of raw materials shot up last year, but the government held back for fear of its effects on related industries. Shrimp and pig feed will be the first feeds that will be sold against a higher price.
Vaccination may help restore Bangladesh egg industry [9 July 2008] Egg price hike in Bangladesh could be curbed by allowing vaccination of layers against the bird flu, helping the farmers improve biosecurity and providing them with low interest loans to encourage them to resume their business, said Moshiur Rahman, Managing Director of Paragon Poultry Limited. He said shortage of eggs is a problem in Bangladesh as about 60% of layer farmers have left the business after the bird flu hit the country early this year. At the same time, remaining farmers dare not to place more layer chicks for fear the disease would resurface in the winter.
Poor weather threatens Peking duck supply [9 July 2008] Storms in Beijing and its outskirts have destroyed a poultry farm killing 80,000 ducks, placing a damper on the availability of China's famous dish, Peking Duck, as the farm is a main supplier to Beijing's restaurant chain, Quanjude. The storm caused losses of around CNY 3 million (USD 440,000). A manager said 12,000 breeding ducks were in another place and survived and the company would restore the farm in a month.
13 Thai plants approved by Canada [8 July 2008] The Canadian Food Inspection Agency (CFIA) has approved 13 poultry production plants in Thailand, allowing them to export chicken to Canada. Of the total, 3 are poultry slaughter plants, 6 are poultry products plants and the rest are poultry slaughtering and production plants. Export of Thai chicken to Canada is likely to grow with this approval.
India’s SBM exports to hit record high [8 July 2008] India expects its soybean meal exports to hit a record of 4.8 million tonnes in the current market year from October 2007 to September 2008 based on high demand from Southeast Asia. The Soybean Processors’ Association said soybean meal exports from India jumped 55% to 4.3 million tonnes in the first nine month of the market year. In June alone, exports increased fourfold to 241,000 tonnes year-on-year.
Hen egg farmers in Thailand suffer losses [8 July 2008] Hen egg farmers in Thailand are suffering from losses as the continued oversupply problem has caused the selling price to fall below production costs. Farm-gate price of hen eggs is currently at THB 2.10/egg (USD 0.06) compared with the average production cost of THB 2.60/egg (USD 0.08). Eggs entering the market is around 27-28 million units a day, while consumption is between 25-26 million.
Indonesia renews import of U.S. beef [7 July 2008] The Indonesian Ministry of Agriculture has issued four beef import permits to U.S. firms and this could translate to USD 15 million of U.S. beef imports this year, the first full year of imports since a ban due to mad cow concerns was lifted in January. Indonesia relies on imports to meet about a quarter of its meat consumption needs. The country bought USD 17.7 million of U.S. beef in 2005 before banning the meat from July that year, according to the USDA.
Thai corn exports likely to fall [7 July 2008] Thailand’s corn exports this year is forecast to fall markedly from a year earlier due to high demand and price of the commodity in the domestic market. According to the Office of Agricultural Economics, the price of corn has risen from an average of THB 6.84/kg (USD 0.20) in 2007 to an average of THB 7.63/kg (USD 0.23) in the first five months of this year and at THB 8.31/kg (USD 0.25) in May alone. In early June, prices were hovering at THB 8.30-9.20/kg (USD 0.25-0.27).
Bangladesh restricts meat imports [7 July 2008] Bangladesh has begun restricting meat imports from countries affected by mad cow disease for fear that it could lose export opportunities of animal bones and hooves, if any meat consignment is found positive to the disease. Customs officers have been told to keep watch on meat imports, which are mainly taken by hotels and meat chains.
Philippine meat processors target Taiwan [4 July 2008] Exports of Philippine food companies is expected to grow after the Philippine delegation to the Taipei International Food Show bagged some USD 8-10 million worth of orders. Manila Economic and Cultural Office (MECO) deputy director for commercial affairs said that the participation of leading food and meat processors is significant as the Philippines is targeting Taiwan’s booming market for processed meat products. He said the country has begun the import risk assessment process and once Taiwan gives clearance, local meat processors can start exporting products like hot dogs, corned beef, and longganisa (local sausage) to Taiwan.
Cobb and Hendrix form alliance [4 July 2008] Cobb-Vantress and Hendrix Genetics are forming an alliance that will strengthen the former's positions in the broiler breeding industry and the latter's in the egglayer, turkey and swine genetics arena. Both parties have also started to investigate a possible joint venture in which part or all activities may be combined in the future.
Note of optimism at World Poultry Congress [3 July 2008] “Is it possible to provide food and energy at levels adequate to meet the needs of the world’s growing population? Yes. Is the technology there? Yes. Can we do it? Yes, if we are passionate, if we strive for excellence, and if we perform at the highest level.” This was the challenge thrown down by Pearse Lyons, President of Alltech Inc, during the opening sessions of the 23rd World Poultry Congress in Brisbane this week. The Congress has drawn a significant number of Asian delegates.
USFDA to open offices in Asia [4 July 2008] The United States’s Food and Drug Administration plans to establish offices in Asia and Latin America - three in China, two in Latin America and one in India. The move is part of an effort to tighten safety standards and stop tainted food products being imported into the U.S.
GFPT hope for better sales [4 July 2008] GFPT, a Thai chicken processor and exporter, expects its sale revenue to grow 15-20%, thanks to rising export prices triggered by higher feed costs. GFPT sales totaled THB 8.24 billion (USD 246.5) in 2007. The 30% higher chicken price should cover the rising feed cost that averaged 20%, said Chairman of the Executive Committee Anan Sirimongkolkasem. Growth in Japan and the EU market as well as softening competitive pressure from China also has benefited GFPT.for example, has risen to THB 35-36/kg (USD 1.05-1.08), from THB 28-29/kg (USD 0.84-0.87). The ministry hasn’t yet responded to the request.
Investors not happy with Smithfield's sale to COFCO [3 July 2008] The decision by Smithfield Foods Inc to sell a 5% stake to COFCO Ltd, China's largest agricultural trading and processing company, has not been received well by investors. The company’s stocks have lost 40% of their value this year. An analyst said the deal with COFCO would provide Smithfield with funds to pay down debt and offer cash to tide it over until the expected sale of its beef operations to Brazil based JBS.
San Miguel Pure Foods eyes USD 33.46M expansion [3 July 2008] San Miguel Pure Foods Company (SMPFC) is setting aside PHP 1.5 billion (USD 33.46 million) to expand its pig business in Sumilao, Bukidnon province. SMPFC President Francis Alejo III said this following the settlement of the dispute over the property with local farmers, the company is now pursuing the expansion of its piggery, drying facility and feed mill operations in the area.
US sees opportunity in DDGS exports to Southeast Asia [3 July 2008] Progressing trade ties between the US and Southeast Asia has opened doors for the US to boost export of distiller’s dried grains with solubles (DDGS) to the region, said US Grains Council’s President and CEO Ken Hobbie. He said demand for DDGS in the Philippines, Thailand and Indonesia is growing and the signing of trade pacts between these countries and the US and their livestock development departments would boost DDGS exports to the region.
CPF wants prices increase to cope with rising cost [3 July 2008] Charoen Pokphand Foods Plc (CPF) has asked the Commerce Ministry to approve a proposal to increase prices of its products by up to 30%, citing rising costs. Chicken production cost for example, has risen to THB 35-36/kg (USD 1.05-1.08), from THB 28-29/kg (USD 0.84-0.87). The ministry hasn’t yet responded to the request.
250 companies at Indo Livestock 2008 [2 July 2008] Indo Livestock 2008, Indonesia's premier agriculture and livestock show that opened in Jakarta yesterday, figures as a much bigger show than in previous years. Featuring more than 250 exhibitors from 33 countries, the 3-day event has 'Milk, Meat and Eggs' as its theme, in support of the industry's efforts to improve protein consumption among Indonesians.
Tyson acquires India’s Godrej Foods [2 July 2008] US-based Tyson Foods Inc has acquired Godrej Foods Ltd, the broiler processing arm of India’s Godrej Agrovet Ltd. Tyson bought a 51% share in Godrej Food and has named the joint-venture Godrej Tyson Foods. Both parties estimated annual sales from the joint-venture to be in the range of USD 50 million and the sales will grow as operations are expanded. Godrej Foods owns two processing plants, each in Mumbai and Bangalore, with a combined capacity of 60,000 birds/day.
Corn planting up by 1.31m acres [2 July 2008] The USDA has said that corn planting has increased by 1.31 million acres above the March planting intention. Its Acreage and Grain Stocks report also stated that the additional acreage did not come at the cost of planted soybean acreage, which was estimated at 74.5 million acres, up 17% from a year ago.
San Miguel Pure Foods posts USD 356.74M in 1st qtr [2 July 2008] San Miguel Pure Foods Company (SMPFC) has reported revenues of PHP 16 billion (USD 356.74 million) for the first quarter of 2008m up 18% from its year ago level, thanks to higher volume from most of its businesses and favorable selling prices. SMPFC Chairman Eduardo Cojuangco Jr said that despite tight conditions, the company is likely to attain its growth targets as the company has been able to manage its costs.
South Korea starts inspections of US beef imports [1 July 2008] South Korea has begun inspections of US beef imports. "We've started by x-raying the 5,300 tonnes of frozen beef that has been in storage since October when the ban was imposed," said Kim Jung Wook of the Agricultural Ministry. Renewing beef exports to South Korea, previously the third- biggest market for American meat, may pave the way for a USD 29 billion free trade deal.
AgFeed strengthens presence in premix production [1 July 2008] Nasdaq-listed AgFeed Industries Inc that operates a few premix plants in China, has acquired in cash 100% ownership of Hopejia Feed Co Ltd, the largest premix feed company in the country’s southernmost province of Hainan. The move is to support and expand AgFeed’s exisiting pig production in the province. The company now owns five premix feed plants in China.
High fertilizer prices could lead to corn shortage [1 July 2008] High prices of inorganic fertilizers may temper the gains made by the Philippine corn industry, and might lead to a major corn shortage that would adversely affect the country’s poultry and livestock industries and lead to a meat shortage. Department of Agriculture (DA) Undersecretary Dennis Araullo said that the high prices are forcing many farmers from planting corn or to cut their planting by half. To counter the problem, the DA is encouraging farmers to start using organic and microbial fertilizers, while cutting down on the quantity of chemical inputs. The agency is also planning talks with the Land Bank of the Philippines to provide financing for corn farming and the production of organic fertilizers.
Thai processed chicken exports forecast to grow in 2009 [30 June 2008] Thai processed chicken exports will grow in 2008 and the momentum will continue to 2009, thanks to demand from major importers Japan and the European Union, Thaiand’s Kasikorn Research Center (KRC) forecast. Exports to the EU in the second half of next year, however, are likely to dip as Thai exporters might have used up their quota in the first half and exports outside the quota have to face higher tariffs. KRC suggested Russia and countries in the Middle East as new potential markets for Thai processed chicken.
Corn damage from typhoon reaches USD 3.72M [30 June 2008] Damage to corn crops in the Philippines due to typhoon Frank (Fengshen) have reached PHP 166 million (USD 3.72M), with the volume lost estimated at 14,142 tonnes. According the Department of Agriculture, some a total of 16,064 hectares of corn-planted areas were affected. The agency’s recovery program is earmarking subsidies for the corn industry that will include PHP 18.1 million (USD 405,425) for hybrid seeds, PHP 4 million (USD 89,596) for open-pollinated seed varieties, PHP 5.1 million (USD 114,235) for fertilizers; and PHP 2.7 million (USD 60,477) for program management.
India’s soybean output to grow [30 June 2008] India expects its soybean planting areas to increase by 20% with the yield rising to a record high. Dinesh Shahra, Managing Director of Ruchi Soya Industries Ltd, said rising soybean price and good weather have encouraged farmers to expand their soybean acreage especially in Madhya Pradesh state, which produces half of the soybean meal in India. India’s soybean meal exports in the current market year is expected to increase by 10% to 4.5 million tonnes, while soybean production is expected to increase by 32% to 9.47 million tonnes.
Filipino Muslims not prepared to declare cloning ‘halal’ [30 June 2008] Filipino Muslims are not yet prepared to adopt a ruling declaring experimental animal cloning as ‘halal.’ The Muslim Mindanano Halal Certifyibng Board Inc (MMHCBI) said it was still reviewing the opinion of the Islamic Fiq Academy of Pakistan that said Academy members “reached the conclusion that cloning is permissible in case of plants as well as in case of animals except human beings.” Ustadz Esmael Ebrahim, MMHCBI spokesperson, said Islam does not allow human cloning. Mr Ebrahim said the MMHCBI, the Philippines' halal certifying body, will conduct a briefing on the religious and technical aspects of producing halal foods.
Grampian sold to Dutch processor [27 June 2008] UK meat processor Grampian Country Foods, has been bought by Vion a group controlled by the Dutch southern farmers' union for USD 3.4 billion. In addition to its UK activities in poultry and pork, Grampian also owns a poultry operation in Thailand that employees 4500 people and supplies UK supermarket chains Tesco and Marks & Spencer.
Indian corn exports surge on rising US price [27 June 2008] The rising price of US corn is boosting exports of Indian corn, which is cheaper by 25%. The US Grains Council reported that Indian corn is increasingly preferred by buyers in Asia and Australia because of the lower price and freight charges. It said since the start of market year in October 2007, India has exported 2.5 million tonnes of corn to Southeast Asia, the Middle East and even Australia, which in the past relied solely on corn from the US.
Price of eggs up following typhoon [27 June 2008] Egg prices in Cebu province as well as in other areas served by Bantayan Island are expected to increase as Typhoon Frank (Fengshen) damaged some 70% of the poultry (layer) farms in the area. Known as the egg basket of the Visayas and Mindanao, the island is the major supplier of eggs in Cebu, Western Visayas, Eastern Visayas, and Mindanao, and also ships eggs to Metro Manila. Bantayan Island Mayor Geralyn Escario Canares has called on the national government to provide soft loans to poultry farmers to help them recover from their losses and revive their business.
World Bank says food crop prices to fall this year [27 June 2008] Prices of food crops have mostly peaked and will begin falling this year as supply catches up with rising demand, said a senior World Bank economist. Prices, however, aren't likely to retreat to their 2000 level and could still be 25% higher than their 2000 levels due to additional demand from the biofuels sector for crops such as corn, rapeseed and soybean.
11 broiler compartments in Thailand approved [26 June 2008] Thailand’s Department of Livestock Development approved 11 poultry compartments guaranteeing that farms in these compartments have stringent biosecurity and are free of bird flu. All these 11 compartments comprise 80 poultry farms– 76 broilers farms with 34.74 million birds/cycle of production and four duck farms with 311,600 ducks/cycle. The DLD is trying to negotiate with importers especially Japan and the EU for exports of Thai raw chicken. It met with Japanese officials on June 12-14 and will be meeting with EU officials from July 10-12.
S Korea reopens market to U.S. beef [26 June 2008] Inspections of U.S. beef bound for South Korea is expected to start today after the government announced that it would reopen its market to imports from the U.s.This follows two months of meetings between officials from both sides that concluded last week. The U.S. beef industry has assured South Korea that it would limit its exports to product from cattle younger than 30 months of age.
WPSA Malaysia calls for government support [26 June 2008] The Malaysian Chapter of the World Poultry Science Association organised a seminar yesterday that focused on the feed and energy crisis. It was attended by industry leaders and graced by WPSA President Prof Dr Ruveyde Akbay. Dato' Dr Vincent Ng, Preisdent of the Malaysian Banch called on the government to introduce policies that work in tandem with the thrust of making agriculture the nation's third growth engine and establishing the poultry industry as a sustainable industry in the light of the present challenges.
More calls for cut in ethanol mandate [26 June 2008] Agricultural economists in the U.S. have joined the American Meat Institute, National Chicken Council and National Turkey Federation in a call to the Environmental Protection Agency to cut the ethanol mandate by 50% in an effort to reduce the diversion of corn from food to fuel. The parties submitted analyses that showed the effects of ethanol on food prices, saying it has created a serious concern with food costs and it needs to be re-examined.
Mystery disease continues to plague Philippines pig industry [25 June 2008] The unidentified disease that hit the Philippine hog industry last year remains a big threat to the industry, says the National Federation of Hog Farmers Inc (NFHFI). The disease wiped out 30% of the backyard raisers while affecting up to 20% of the commercial raisers. NFHFI officials have called on the government to put up at least one well-equipped diagnostic laboratory that could positively and immediately identify the virus to help local stakeholders properly control and prevent the disease.
Thai seafood processor expands [25 June 2008] Thai Ocean Venture Co, a seafood processor and exporter in Thailand’s southern province of Phuket, has invested in a new production plant, to support growth in domestic sales and exports, said General Manager Sathaporn Bhuyarthorn. The company’s second plant worth THB 350 million (USD 10.47 million) will help double the company revenue to THB 1.5 billion (USD 44.70 million), when the plant starts operating in 2009.
Quezon province commits chicken and eggs for Metro Manila [25 June 2008] Quezon province, which recently inaugurated a trading hub for agricultre products, has committed to supply the bulk of the chicken, eggs, fish, and vegetable requirements of Metro Manila. Agriculture Secretary Arthur Yap said that the province’ growers have committed to supply 95% of the 62,000 tonnes of chicken as well as 98% of the 137,000 tonnes of eggs required by the National Capital Region.
Filipinos seek zero tariff on feed inputs [25 June 2008] Philippine hog raisers are calling on the government to impose zero tariff on feed ingredients and farm equipment to help the local industry recover from the diseases that hit many pig farms last year. National Federation of Hog Farmers Inc Chairman Gabriel Uy said that the petition for the tariff reduction was filed in March but there still has been no action from the Tariff Commission.
US food and drug inspectors head for China [24 June 2008] The United States expects to have food and drug inspectors placed in three Chinese cities by the end of this year said Health and Human Services Secretary Michael Leavitt as saying. However, the head of China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), said the issue had not been totally resolved because US authorities have not given permission to allow Chinese food and drug inspectors in the US.
Oversupply leads egg producers to seek gov’t regulation [24 June 2008] The National Federation of Egg Producers of the Philippines (NFEPP) has asked the government to monitor and regulate the expansion of poultry farms and the entry of new players in the egg industry to control and prevent oversupply in the country. NFEPP President Gregorio San Diego said that while cost production has been on the rise, egg producers cannot increase the price of eggs mainly because of oversupply. He said that failure to do so could mean further expansion in the industry, which could lead to existing egg producers to downscale or stop operations altogether, which would have a “ripple effect” on the farming sector.
Campaigner urges India to scrap chicken cages [24 June 2008] The US-based Humane Society is encouraging Indian poultry producers to give up farming chicken in cages. Claiming that raising the birds on the floor is more humane, the society recently brought Indian poultry producers including Skylark Hatcheries to visit its headquarters in the US to learn about the benefits of cage-free poultry production.
Zinpro seminar addresses sow lameness [24 June 2008] Zinpro Animal Nutritions Inc held a seminar in Thailand last week that looked at the reasons for the early exit of sows, swine lameness and lesion pathology and lesion scoring. It also covered the awareness of the disease, effects and cost of lameness and how this can be corrected and the role of nutrition in overcoming the problem.
U.S agrees to S Korea's demands [23 June 2008] Three associations representing the US beef industry have agreed to limit exports to Korea to only products from cattle less than 30 months of age under a program verified by the US Department of Agriculture as a transitional measure to full market opening consistent with OIE guidelines.The statement that was released on Friday came after Korea Import Beef Association declared that they would only import US beef from cattle less than 30 months. Earlier, South Korean President Lee Myung-bak appologising to his people for the April decision, said he told President Bush that Korea 'would not be able to import U.S. beef' if demands about restrictions on older cattle were not met.
Jollibee to acquire 70% stake in Taiwan restaurant [23 June 2008] The Philippines’ leading fast food chain, Jollibee Foods Corp (JFC), has agreed to buy a 70% stake in Lao Dong, a Taipei restaurant chain, for USD 1.4 million. JFC, through its wholly-owned unit Jollibee Worldwide Pte Ltd (JWPL) signed the agreement with the owners of Lao Dong, and will infuse USD 688,997 for Lao Dong’s expansion, while the current owners will also invest USD 294,978 to the joint venture. The terms of the deal are expected to be completed within the year. Lao Dong, which has annual sales of TWD 4 million, has eight stores and a commissary in Taiwan and also has operations in China.
CKE to open 15 restaurants in Pakistan [23 June 2008] CKE Restaurants Inc of the US, owner of Hardee’s hamburger chain, has signed franchisee agreements with MDS Foods Pte Ltd and Global Food Connection LLC to open 25 Hardee’s restaurants in Pakistan. MDS Foods will open 15 Hardee's restaurants in Lahore over the next five years and Global Food will open 10 Hardee's restaurants in Karachi over the next four years. CKE has 294 international units under its Carl’s Jr and Hardee’s brands, 184 of which are in the Middle East.
Sichuan feedmillers face raw material shortage [20 June 2008] Feedmills in China’s southwestern province of Sichuan have been forced to limit or shut down production due to lack of feed ingredients after the earthquake said the Sichuan Animal Husbandry and Food Bureau. An official at the bureau said prices of raw materials have been on the rise. To solve the problem the bureau plans to get soybean meal from every possible channel and use some 200,000 tonnes corn from national reserve.
EPA urged to revisit ethanol fuel mandate [20 June 2008] With flooding in the U.S. expected to claim 3.3 million acres of corn farmland, the Chicago Board of Trade is calling on the Environmental Protection Agency to revisit its ethanol fuel mandate. The group plans to submit a study commissioned by the National Chicken Council, the National Turkey Federation and the American Meat Institute that ties ethanol policies to escalating food prices. It is asking the EPA to suspend half of this year's ethanol mandate.
New measure to curb corn & soy price [20 June 2008] India's National Egg Co-ordination Committee (NECC) has urged the government to limit the volume of corn and soybean meal in traders' warehouses with a view to increase availability of these commodities for feedmillers and poultry farmers.The move was made after the government began looking into the committee's proposal to ban corn exports, which is said to be responsible for rising corn prices in India. Although India's corn production in the current crop year increased by 31% to 18.4 million tonnes, corn price in the country has doubled to almost INR 1000 (USD 27)/quintal or 100kg.
CKE restaurants to bring 100 Carl's Jr outlets to China [20 June 2008] US-based CKE Restaurants Inc plans to open a minimum of 100 Carl’s Jr restaurants in China over the next eight years. It will bring together SGX-listed BreadTalk Group Limited and Aspac F&B International Pte Ltd together with CKE, to exercise franchise rights for the Carl’s Jr brand in the cities of Beijing, Shanghai and Tianjin as well as the provinces of Zhejiang and Jiangsu in China.According to Dr George Quek, Chairman of BreadTalk Group, the average consumer in China’s first line cities, having been exposed to western fast food and are now primed for more discerning menu items such as premium burgers.
Taiwan Sugar to build second pig farm in Vietnam [19 June 2008] Taiwan Sugar Corporation plans to build its second pig farm in Vietnam, said CEO Huang Chung-jung. He said the company is looking to establish farms in the southern province of Binh Phuoc with a total capacity of 40,000 pigs. Taiwan Sugar currently operates a pig farm with a 60,0000 pigs capacity in Vietnam’s southern province of Binh Duong.
Johnsonville Sausage to expand in China [19 June 2008] US based processor Johnsonville Sausage hopes to open another 15 bratwurst restaurants in China over the next three years. The company currently operates two bratwurst restaurants in Shanghai, called Orya. It ships sausage to China, Japan, Korea, Taiwan, Canada, France, Spain, Latin America and the Caribbean. International sales represented USD 35 million of its total USD 700 million in 2007.
PRRS hits Vietnam’s Bac Lieu province [19 June 2008] Porcine Reproductive and Respiratory Syndrome has hit Vietnam’s southern province of Bac Lieu for the first time, causing almost 200 pigs to be culled. However, the number of PRRS-affected provinces has come down from 10 to seven. The disease has caused losses in Thai Binh and Thai Nguyen in the north, Thua Thien Hue and Lam Dong in the central and Vinh Long, Binh Phuoc and Bac Lieu in the south.
Philippines bans poultry from Denmark [19 June 2008] Following reports from the Office International des Epizooties (OIE) that confirmed the presence of low pathogenic avian influenza in a poultry farm in Southern Denmark, the Philippine government has issued a temporary ban on poultry and poultry products imports from the European country. Meanwhile, Philippine President Gloria Macapagal Arroyo has ordered the DA to remain vigilant against diseases that might enter the country through imported poultry and meat products. Smuggling of these products continue to be rampant in the country.
Philippines fails to get FMD-free status [18 June 2008] A missing test, along with the OIE’s prioritisation of other countries, left the Philippines in the list of countries with foot-and-mouth disease (FMD) even though there have been no cases reported in the last two years. Bureau of Animal Director Davinio Catbagan said that the OIE (Office International des Epizooties) has requested that a new blood examination be conducted to ensure that the disease has truly been eradicated. Dr Catbagan said that test is expected to be finished this year, after which the country will once again apply with the OIE in December for its declaration as an FMD-free country. Mindanao and the Visayas have been declared FMD-free by the OIE.
Egg price in Thailand lower than production cost [18 June 2008] Hen egg farmers in Thailand are still suffering losses as the price of hen eggs in Thailand has been at THB 2.26/egg (USD 0.067) since early this year, lower than the production cost of THB 2.43/egg (USD 0.073), said Mongkol Pipatsattayanuwong, the new President of the Association of Hen-Egg Farmers, Traders and Exporters. The association is working to promote consumption of eggs among children in schools in an attempt to stabilize egg prices.
Thailand to improve cassava yield for food and fuel [18 June 2008] Thailand’s Ministry of Agriculture and Cooperatives is working on its plan to improve its cassava crop to obtain a yield of 5.5 tonnes per rai (1 rai=1,600 square metes) by 2012 from the current 3.7 tonnes/rai as an attempt to produce sufficient output for food and fuel. This is to be done without enlarging the country’s cassava cultivation area, which totals 7.42 million rais at present, and produces 27.4 million tonnes of cassava.
Flooding in US Midwest pushes corn to record highs [17 June 2008] Corn prices have continued to rise on the Chicago Board of Trade as the US Midwest suffered its worst flooding in 15 years. The price of corn for delivery in July before next year's harvest jumped to a record USD 8.07 a bushel before retreating to close at USD 7.87, the eighth consecutive day of record prices. Soybeans for July delivery neared the record of USD 15.96 before closing at USD 15.34.
New dams in Laos may upset Cambodian farms [17 June 2008] An explosion of dam building projects along the Sekong River in Laos could pose a danger to fisheries, riverbank agriculture and animal husbandry downstream in Cambodia. Cambodian and foreign experts are calling for new approaches to governing the cross-border issues that arise from the use of the Mekong River's water resources. The Sekong is the Mekong's largest tributary.
Food prices to continue to rise [17 June 2008] Food prices are likely to rise by an average of 9% annually between 2008 and 2012 as the rising raw material and input costs are passed on to consumers. Advanced Economic Solutions of the US said rising agricultural commodity prices are contributing to the highest rates of food inflation in decades.It cited the use of corn to produce ethanol as the most significant factor driving corn and other agricultural commodity prices to record levels.
Prices of canned goods to go up [17 June 2008] Prices of canned goods in the Philippines will likely go up again in July after tin can makers announced a 10% increase in the price of cans. Prices have already gone up following an increase in prices of tin cans in April this year. Henry Tañedo, Chairman and President of the Tin Can Manufacturers Association of the Philippines said the price increase is due to higher cost of raw materials. Earlier this year, the price of tin plates was USD 1,350/tonne but has since gone up to USD 1,600/tonne. Mr Tañedo said one of the reasons for the rising prices is the big demand for tin plate in the world market because of China.
Food prices to start falling [16 June 2008] The World Banks expects food crop prices to begin falling this year as supply catches up with rising demand. However, additional demand generated by the biofuels sector means prices aren't likely to retreat to their 2000 levels, said a senior World Bank economist.Prices for food crops this year have nearly doubled from their levels in 2000, a benchmark year the World Bank uses to compare prices from 1970 to 2020.
Japan to raise meat prices [16 June 2008] Japan, the world's biggest corn importer, will increase domestic meat price
