Sanofi-aventis and Merck create new powerhouse in animal health [10 March 2010] Sanofi-aventis has exercised its option to combine Merial with Intervet/Schering-Plough, Merck’s Animal Health business, creating a new global leader in animal health. The new joint venture will be equally-owned by Merck and Sanofi-aventis and will be finalised within the next 12 months. "This merger presents an exciting opportunity for Sanofi-aventis to create with Merck a leading company in the Animal Health strategic and growing sector,” said Christopher A. Viehbacher, Chief Executive Officer of Sanofi-aventis. “I am convinced that, together, we will create strong value in bringing broader and improved offerings in both pet and production animal segments. It is another milestone in our diversification strategy to bring sustainable growth to Sanofi-aventis.”
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Thailand to export more halal goods and services [10 March 2010] Thailand is working to boost production and export of halal products and services to reach USD 50 billion in 2012, or a 5% share of world halal market, said Industry Minister Chanchai Chairungruang. A part of this attempt by the Thai government is the hosting of the World Halal Congress 2010 in Thailand from March 19-24 to project the country’s potential as a global center for halal trade. At the moment, halal products and services from Thailand account for only 1% of total global value, but ranking as the world’s seventh largest exporter of halal goods.
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Benefits of cassava boosts its use in Thailand [10 March 2010] The use of cassava in animal feeds in Thailand is expected to be stable at 1.5-1.7 million tonnes in 2010, nearly half of the amount used in 2007, but it has become a regular ingredient in the diet, said an expert. Prof Uthai Kanto of Kasetsart University Kamphaeng Saen Campus in Thailand said proven benefits of cassava in improving health and performance of the animals, especially pigs, has made its widely used among pig farmers and commercial feedmillers in the country. He said cassava is low in mycotoxins and contains many natural beneficial bacteria that are suitable for pigs and other animals. It also acts as an antioxidant and the starch contained in its roots is highly digestible by the animals.
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Pig price drops in Guangdong [10 March 2010] The price of live pig has fallen to about CNY 10/kg (USD 1.5) this week in Guangzhou, capital of south China’s Guangdong province, following an outbreak of foot-and-mouth disease. The city's price for live pig was about CNY 13/kg (USD1.9) in January. A local slaughterhouse worker said many pork traders had reduced the size of their orders because pork had become unmarketable in recent weeks. "Many residents have avoided or reduced consumption of pork after the foot-and-mouth disease outbreak," said the worker. An outbreak involving 1,474 pigs was reported in Guangzhou's Baiyun district at the end of last month. The outbreak led to the culling of 8,382 pigs in the district.
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China to become largest beef consumer [9 March 2010] China could become the largest consumer of beef in the world by 2015, accounting for over 50% of the world beef trade, said Sergey Yushin, head of the Executive Committee of the Russian National Meat Association. Mr Yushin predicted the surge in demand for beef in China and Southeast Asia could result in a sharp rise in prices. He added, that by 2015 China will be able to export up to 5 million tonnes of beef a year.
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Australia unable to satisfy Korea's demand for beef [9 March 2010] Australian beef traders reported solid demand and strong prices from Korea recently, but were unable to fully capitalise on this demand due to the lack of beef supply. Beef exports from Australia to Korea totalled 7,505 tonnes in February with 2,325 tonnes consisting of chilled beef products. The lack of Australian grass fed beef has triggered improved interest in grain fed beef in Korea – increasing 33% on last month and by 47% in the calendar year to February compared with 2009.
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Pamper pigs for better taste [9 March 2010] Pigs in Zhengzhou, capital of Henan province in cetral China will get a day of rest, pats and music before they visit the slaughterhouse - all this to improve their taste. An official in Zhengzhou said after a long trip, the pigs are tired when they reach the slaughterhouse and the rest will ensure the pork has the best taste and will prevent water-logged pork entering the market. The rules, posted on the Zhengzhou commerce commission's website, state that people who do not follow the rules will be severely punished.
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Proconco is the 2010 Asian Feed Miller of the Year [8 March 2010] Vietnamese feed miller Proconco is the 2010 Asian Feed Miller of Year. The award was organised by Asian Feed Magazine and sponsored by Addcon. Proconco was one of four finalists from Pakistan, Sri Lanka and Vietnam judged on five criteria: industry leadership, use of technology, quality control and safety, logistics and marketing. The award was presented during Victam Asia by Kurt Wegleitner of Addcon to Philippe Serene, Director General of Proconco.
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Drop in Indonesia's soy output [8 March 2010] Indonesia expects its soybean output to fall 1.1% to 962,539 tonnes this year, signalling a need to buy more on global markets and putting at risk its 5-year target of freezing imports. The government has said it wants to halt imports of the commodity by the end of 2014. The central bureau of statistics said the forecast of lower soy output was based on the assumption that the harvest area would drop 1.2% or by 12,430 hectares (30,710 acres). A top industry official also said Indonesia's soybean production could be further hit by a return of drier weather brought by the El Nino phenomenon. Indonesia imported nearly 1.2 million tonnes last year to meet domestic consumption, said Ali Basry, director of the Indonesian representative office of the American Soybean Association - International Marketing.
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China plans state food safety system [8 March 2010] China’s government is striving to establish a national food safety system in the wake of the 2008 baby milk scandal, Health Minister Chen Zhu told a state-run media on the sidelines of the annual session of the nation's top political advisory body in Beijing. The minister didn't give any details of the task and it is not known if it will be a reorganization of the current government agencies or a new network, said the report. The country was horrified in 2008 when six babies were killed and over 300,000 sickened, mostly due to kidney stones and renal failure, caused by melamine-tainted dairy products. Earlier this year the scandal reignited after parts of the original confiscated poisonous products reappeared on shelves.
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8% growth for Vietnam's livestock sector [8 March 2010] Vietnam's livestock sector targets growth of 8% this year, with total output of livestock meat reaching 4.1 million tonnes, according to the Department of Livestock Production under the Ministry of Agriculture and Rural Development. The sector will focus on setting up breeding areas under the model of industrial farms. These areas will have animal feed processors and waste treatment facilities.
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US consumers will pay for ‘ethical’ food [5 March 2010] Asian suppliers to the US are likely to do well if they can assure customers that their products are produced in an ethical manner. A recent survey by San Francisco-based marketing communications firm Context Marketing revealed that 69% of consumers will pay more for 'ethically produced' foods. Bob Kenney, Context Marketing Principal said that when asked to identify what they meant by 'ethical food', more than 90% percent of respondents identified three main qualities: protects the environment, meets high quality and safety standards and treats farm animals humanely. The survey was conducted in January among 600 adults aged 20 - 64, equally representing men and women living in major US markets.
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Debate on GM food continues in China [5 March 2010] The debate over the safety of genetically-modified (GM) food continues in China, as the government steps up its efforts to develop GM crops to ensure grain security. Supporters and opponents are stirring the debate after the Ministry of Agriculture granted safety certificates for the domestic production of two types of GM rice and one variety of GM corn. With the country facing increasing pressure to feed its growing population, the government hopes disease-resistant crops will help address the problem of food shortage. Chinese scientists have said GM rice and corn are as safe as non-GM varieties and pledged to expand their production. The commercialization of GM rice may be approved within the next three to four years, according to agricultural experts. In cutting down on the work required to spray crops, GM food has the potential to ease the labor shortage in China's countryside.
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Tyson improves competitive position [5 March 2010] Tyson's recent acquisitions in China and Brazil, further reducing debt and reinvesting in its business could help the company improve its competitive position. Chief Financial Officer Dennis Leatherby told investors the company also will explore opportunities for its Renewable Products Group, which includes pet products, renewable fuels, biotech and nutraceuticals. Tyson recently re-opened an idle plant and reconfigured it to produce high-end pet treats. Dynamic Fuels, Tyson's joint venture with Syntroleum Corp, is expected to bring its renewable diesel plant online this summer, he said.
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Paragon builds new feedmill [4 March 2010] Bangladesh's Paragon Group has started building a new feedmill to support growth in its broiler business.Managing Director Moushiur Rahman told Asian Feed Magazine that the plant is located outside capital Dhaka and it will have a capacity of 40 tonne/hour of broiler feeds. Scheduled for completion in the middle of 2011, the plant will support expansion of Paragon's broiler operations. Paragon is doubling the size of its broiler GP flock to produce 40,000 broiler PS/week and is building five new broiler PS farms and hatcheries, each consisting of 100,000 female birlds.
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London Biscuits completes acquisition of TPC [4 March 2010] Malaysia-based London Biscuits Bhd has concluded its acquisition of 32% of egg producer TPC Plus' shareholding. The block of 25.6 million shares was acquired in two tranches of 12.8 million shares each, for a total of MYR 7.7 million. London Biscuits CEO Datuk Seri Liew Yew Chung earlier stated that it would "benefit from cost-savings and consistent supply of quality eggs as well as a platform to develop and market new product varieties".Datuk Liew is TPC's new Chairman.
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Positive outlook for pork variety meats [4 March 2010] The share of pork in China’s meat consumption continued to fall as demand for variety is on an upswing, said a latest report by Robobank. Pork’s share stood at 66% in 2008 compared to 85% in 1985.The report pointed out that despite China’s large meat output, the pork value chain is characterised with spot market players, including suppliers, producers, processors and retailers as well as integrators. Live pigs supplied by backyard farms that normally raise less than 50 pigs per year accounts for 42% of the total supply, compared to 74% in 2001. While larger scale farms (annual inventory ranges 50 - 3000) and commercial farms (annual inventory exceeds 3000) are playing an increasingly important role in the value chain, especially in more developed regions. The report also noticed that high performance animal breeds and variety meats are likely to have great export potential for China, where the number of wealthy Chinese has been growing rapidly.
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China’s demand for food containers expected to grow [4 March 2010] World demand for food containers is forecast to increase 3.9% per year to USD 124 billion in 2013, said a report of World Food Containers from Freedonia Group, Inc, a US-based industry consultancy. Factors contributing to rising demand include growth in global food output and trends toward convenience food options as a result of fast-paced lifestyles. The most rapid increases will occur in the world’s developing regions, like Asia, Latin America, Eastern Europe and the Africa/Mideast region. China alone is expected to account for nearly one-quarter of global value gains in food container demand between 2008 and 2013. Rising consumer income levels and expanding middle classes will also generate robust internal demand for packaged consumer goods like processed foods. The report pointed out that products made from biodegradable materials will post robust advances due to increased pressure on packaging producers to reduce their environmental footprint.
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Nutritionists need to think laterally [3 March 2010] Nutritionists should think laterally to improve the company's bottom line. This was the message delivered to participants attending the Asian Nutritionist Briefing in Bangkok, Thailand yesterday. Key speaker Oliver Ryan said focusing only on nutrition is not enough because there are a number of factors in relation to the feed that affect the bottom line. Besides understanding all those factors, Mr Ryan said nutritionists should "think outside the box" to find ways to improve business efficiency and hence the bottom line. The event organised by Asian Feed Magazine in cooperation with Phytobiotics, Feed Management Systems and Van Aarsen drew nearly 100 nutritionists and feed industry personnel from Asia.
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FMD reported in southern China [3 March 2010] Chinese authorities have reported an outbreak of the highly contagious foot and mouth disease in Guangzhou and have destroyed more than 8,000 pigs, state media reported yesterday. Xinhua news agency quoted local veterinary officials in Guangdong province as saying a total of 8,382 pigs had been culled and disposed safely after the outbreak was reported in Baiyun district last month. The disease only rarely affects humans, but is very contagious among cloven-hoofed animals, including sheep, goat and cattle.
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Areas planted to BT corn expand [3 March 2010] Areas planted to the genetically modified (GM) BT corn in the Philippines expanded by some 14% to 400,000 hectares in 2009, a report by the International Service for the Acquisition of Agribiotech Applications (ISAAA) said. The group said the developing countries continued to increase their share of global biotech crop to almost 50% last year, with the Philippines being one of the top five countries exhibiting a growth in biotech crop area of at least 10%. The cultivation of GM crops have come under fire from various environment and food safety groups who question the safety of these products. Nevertheless, more and more GM crops are being produced globally, most especially in developing countries, where the biotech crop area last grew by 13% or seven million hectares as compared to industrialised nations where the growth was at 3% or two million hectares.
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US producer introduces natural Halal goat [3 March 2010] Coleman Natural Foods, the largest organic and natural meat company in the US has follwed in the footsteps of Australian and New Zealand processors, by introducing natural, Halal certified goat. This is in response to growing demand by ethnic consumers in the US and globally for Halal certified meat products.The animals are raised by pre-certified farmers, hand is animal welfare and food safety certified.
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Rationalisation expected for US hog industry [3 March 2010] The protein industry is expected to glow in 2010. "Losses in hog production will likely moderate as the year progresses due to reduced industry supply, lower feed costs and greater global pork demand,"revealed Fitch Ratings Director Carla Norfleet Tayolor a news release. She added that production discipline and supply levels will remain a critical factor,and cost pressures will vary across segments of the industry.
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Philippine feed wheat imports to reach 700,000 tonnes [2 March 2010] The Philippines is expected to bring in some 700,000 tonnes of feed wheat imports for the first half of the year to offset any possible shortage in corn supply, said Agriculture Assistant Secretary Salvador Salacup. He said that 300,000 tonnes have already been brought in by feedmillers and livestock and poultry producers who are anticipating the adverse effects of the current drought on corn production. Some industry players think the amount of imported feed wheat might be even be greater if there is a shortage in corn production which will likely pull the price of yellow corn up. Earlier this year, some traders said that despite the 7% duty on feed wheat, landed cost of the grains remains on par with the price of yellow corn. For now, local corn industry players are mum on the imports, with some saying that the amount is so far acceptable as this will simply fill any possible shortage.
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Salbutamal found in Thai pig farms [2 March 2010] The Department of Livestock Development has discovered from inspections of feed and pig urine, that five swine farms in Nakon Prathom province central Thailand have been using using Salbutamal, a prohibited substance under the Beta-agonist group. The DLD has complained to the police as the usage is illegal. The department has also ordered all 3000 pigs on the farms to be detained until their urine test returns negative results to the prohibited substance, to ensure the meat has no residue and is safe to consume.
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Thailand’s Prantalay seafood eyes 20% growth [2 March 2010] Thailand’s seafood processor under Prantalay brand targets to achieve a 20% growth in sales in 2010 or THB 1.3 billion (USD 39.51 million), up from last year’s sale performance of THB 1.1 billion (USD 33.49) or an increase of 10% from the year earlier. This results from its introduction of ready-to-cook and ready-to-eat seafood products, said Chief Executive Officer of Prantalay Marketing Co Ltd, Thongchai Tavanapong. Prantaly recently launched its highlight project for this year: “Good Health, Good Brain Nationwide With Prantalay in 2010” emphasizing the health benefits provided by seafood, with a marketing budget of THB 20 million (USD 609,106) as part of its effort to boosts sales.
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Global demand to benefit US poultry producers [2 March 2010] Fitch Ratings has issued a positive export forecast for poultry processors in the US based on growth in global demand for animal proteins and a possible uptrend in restaurant traffic in 2010. Companies likely to benefit include Tyson Foods, Smithfield Foods, JBS USA and Pilgrim's Pride. However Fitch said their success also will depend on continued debt reduction and supply management to match demand.
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Grain shipping challanges to continue in 2010 [1 March 2010] Containerized grain shippers suffered fewer vessel calls, slower transit times, and insufficient container availability at many inland locations in 2009 and the same is expected in 2010. In addition, ocean container carriers predict that in the first half of 2010 containerized agricultural shippers should expect several rounds of general rate increases, continued container availability challenges, and limited vessel space and service. As other non-U.S. trade lanes around the world show signs of economic recovery, ocean carriers will likely turn their attention to these trade lanes using the ships and containers they currently have in operation.
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CPF establishes links in Kenya, Tanzania [1 March 2010] Thailand’s Charoen Pokphand Foods Plc (CPF) has set up CPF Kenya Limited and CPF Tanzania Limited with registered capital of USD 5 million each as part of its expansion into Africa, according to President and CEO Adirek Sripratak. The company plans to invest in feed mills and livestock farms in these two African countries as they provide strong business potential thanks to huge demand for meat from the population of more than 700 millions while the places are also attractive for tourists, Mr Adirek said. Apart from Kenya and Tanzania, CPF is also studying investment opportunities in Nigeria and another two or three African countries, he added.
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China lifts ban on Canadian pork [1 March 2010] Canada's Agriculture Minister Gerry Ritz has confirmed that China has reopened its market to Canadian pork imports. This follows recent negotiations during a trade mission to China. Mr Ritz said the focus is always on the World Organization for Animal Health's (OIE) consensus that Canadian pork and beef is safe. "Access to the Chinese market is excellent news for Canadian pork producers and underlines the importance of recognizing international science-based standards," he said. China suspended pork imports from H1N1-affected countries in the spring of last year. Canada sold some USD 45 million worth of pork to China in 2008.
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New locations for poultry slaughterhouses in Jakarta [26 February 2010] The Jakarta administration in Indonesia has named five new locations for poultry slaughterhouses in the peripheral areas of the city, including Rawa Kepiting and Cakung in East Jakarta; Rorotan in North Jakarta; Petukangan in South Jakarta and Kalideres in West Jakarta.This is in response to the 2007 bylaw to curb the spread of bird flu by banning backyard farming and removing poultry slaughterhouses from inner city areas by April this year. Most vendors have objected to the plan stating that the new locations are far from the city center where customers are.
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Low hatch causes high DOC price in Thailand [26 February 2010] Price of DOC in Thailand remains high at THB 18 (USD 0.54) per head since its first increase in November last year due to the low hatch rate caused by adverse weather conditions and declining quality of local corn, mainly from the government stocks, said Chaisaks Boonprasopthanhachot, President of the Broiler Breeder Association. Average hatch has dropped to around 17-19 million chicks per week at the moment, from around 21 million chicks/week. Farm gate prices of broiler has increased as a result to THB 45-48/kg (USD 1.36-1.45), over a production cost of around THB 36-38/kg (USD 1.09-1.15).
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Bangladeshi poultry farmers cry foul over high chick prices [26 February 2010] Bangladeshi poultry farmers have urged the government to keep a close eye on smuggling of chicks and eggs from India, while calling on domestic poultry breeders to lower chick prices. Two poultry associations representing small and medium-scale farmers called for the government to set up a task force to monitor the smuggling of chicks and eggs from India as they could be infected with the bird flu virus. They also blamed excessive pricing of chicks and eggs of some breeders for inflated prices of these inputs, claiming the breeders gained three times more than the production cost.
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FAO calls for more investment in livestock sector [26 February 2010] The UN Food and Agriculture Organization has urged developing nations to invest more in the livestock sector, particularly among small and medium scale enterprises, to meet the rising demand for livestock.In its “State of Food and Agriculture,” report released recently, the FAO urged “substantial investments” to ensure that the world’s livestock sector responds to the growing demand for animal products.According to FAO, livestock is essential to the livelihoods of around one billion poor people, providing income and high-quality food. Greater investments and stronger institutions are needed to ensure that it continues to play a vital role in furthering food security and poverty reduction,it said.
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Shandong Yisheng builds a new PS farm [25 February 2010] Yisheng Group in China’s Shandong province has initiaed operations at its new parent stock chicken breeder farm. Costing CNY 150 million (USD22 million), the new farm is located in Weihai and is scheduled to introduce 210,000 PS breeders in total. The farm, consisting of 23 houses, is equipped with advanced automatic feeding and environmental control systems. To secure its feed supply, a new feedmill with an annual capacity of 100,000 tonnes of compound feed will be put into production.
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Bulk ocean rates decline further [25 February 2010] Ocean freight rates for shipping grain from the US Gulf to Japan has declined for the fifth consecutive weeks, mainly due to the Lunar New year festivities. As of February 12, the cost was USD 61/mt, down 15% from USD 72 inthe week ending January 8. Ocean rates are expected to continue falling until the end of the festivities next week as fewer cargoes are being shipped because of the temporarily reduced activity in China.
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Jollibee posts 14.6% income growth [25 February 2010] Philippine fast food giant Jollibee Food Corp (JFC) has managed to post a 14.6% growth in profit for 2009, despite the economic crunch. In its disclosure to the Philippine Stock Exchange, JFC reported a net income of PHP 2.66 billion (USD 57.78 million), which was attributed to strong sales, lower raw material costs and income tax, and efficient marketing expenditure. System-wide sales from both company-owned and franchised stores rose by by 9.6% to reach PHP 63.73 billion (USD 1.38 billion). JFC Chairman and CEO Tony Tan Caktiong said that the company “grew almost 10%, achieved its profit target and exceeded its cash flow objective.” in 2009. With the better perfomance, the company is set to double its capital expenditure to PHP 4.8 billion (USD 103.92 million) this year.
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Pork demand grows in Cambodia [25 February 2010] Pork shortage is likely to grow Cambodia if the domestic pig production cannot keep up with growing demand for pork in the country. Mong Reththy, Predient of the pig breeding firm Mong Reththy Group said demand for pork in Cambodia's capital of Phnom Penh grew 20% in 2009 to 1600 pigs/day last year. This year, he said, Phnom Penh would require 730,000 pigs worth USD 182.5 million. If the domestic pig production is not developed fast enough, shortage of pigs is likely to occur in the city and other parts of the country soon.
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China to ban direct sales of imported animal feed [24 February 2010] Foreign companies and individuals will not be allowed to directly sell imported animal feed and feed additives in China, a draft regulation made public said. The draft is now open to public opinion. It states that foreign companies and individuals should establish sales subsidiaries in China or entrust a Chinese agency to sell animal feed or feed additives in the country. These should be packed and labeled eligibly and subject to inspections and quarantine of Chinese entry-exit inspection and quarantine bureaus. Exporters of animal feed or feed additives to China for the first time should submit an application for registration. In response to the modified regulation, an official from Shanghai Feed Industry Association commented that this would have minimal impact as the market for direct feed sales is very small.
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Indonesia lifts ban on pig and pork imports [24 February 2010] Indonesia's trade ministry has lifted a year long ban on imports of pigs, pork and its derivatives. The ban was imposed in may last year following concerns over the A(H1N1) virus. Imports are now allowed as there has been no cases of swine flu spreading from pigs or pork to humans. Mangku Sitepoe, a senior veterinary expert from the Bogor Institute of Agriculture, said the import ban should not have been applied in the first place because it had been scientifically proven that the virus cannot spread from swine to humans.
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CPF achieves record high profits in 2009 [24 February 2010] Thailand’s Charoen Pokphand Foods Plc generated a record net profit of THB 10.19 billion (USD 307.7 million) in 2009, up 226% from the year before, thanks mainly to its move to higher-margin ready-to-eat food products and profitable performance of its oerations in Turkey. President and CEO Adirek Sripratak said sales revenue in 2009 increased 6% to THB 165.06 billion (USD 4.98 billion). CPF expects its revenue and net profit to grow by 10% this year following further expansion of ready-to-eat food products, distribution channels and foreign investments. The company has allocated THB 6 billion (USD 181.1 million) towards domestic and overseas expansion. The focus overseas ill be on pig production in Russia, broiler production in India, finished foods in Turkey and pig farms in the Philippines.
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India's corn price plunges [24 February 2010] Although Indian corn production in 2009/10 is expected to drop by 19% to 15.3 million tonnes, its corn prices both in the spot and futures markets are plunging, according to Amit Savdev, India's Representative of the US Grains Council. He said the average price of corn in India went down 2.3% to INR 8951/tonne (USD 194) last week. This price, however, is higher than last year by 8.8%. Futures market prices tumbled 1.51-2.4% to USD 192-205 for all contracts from March to June 2010. The spot market prices also declined with the Nizamabad price down 0.74% to INR 8786/tonne (USD 190) and the Davangere price lower by 2% to INR 8900/tonne (USD 193). The price increased slightly in Karimnagar by 0.33% to INR 8740/tonne (USD 189).
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Amrit ventures into broiler processing [23 February 2010] Indian feed manufacturer and poultry breeder Amrit Group has ventured into broiler processing aiming to sell half of its processed chicken in India and the rest for exports. Amitava Sarkar, Amrit's Head of Processing said the company plans to launch whole and portioned chicken as well as value added products such as salami, sausages and kebab at its base in Kolkata, Delhi and surrounding areas in the north and eastern regions of India. The products are branded "Fresco Pollo" or fresh chicken. For export, he said, Amrit will start by the end of the year to neighbouring countries in Southeast Asia, the Middle East and Europe. Amrit expects that the processing business would boost the company's total revenue to by 15% to INR 10 billion (USD 232.5 million) in 2010.
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S.Kalimantan sets 2012 target to be AI free [23 February 2010] South Kalimantan in Indonesia has set a 2012 target to be rid of the bird flu virus. The province which was free from new outbreak from 2006 saw a reemergence of the virus last year.Head of the province's veterinary office Serafina Ariani said in mid February that many measures are being put in place to achieve this target. “We are urging local chicken breeders to maintain bio-security around breeding complexes and tightening control of chicken transportation.” Ms Serafina said the trucks carrying chickens would be closely monitored to prevent infected chickens from entering virus-free areas.
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Bird flu resurfaces in Vietnam [23 February 2010] The bird flu has resurfaced in Vietnam's southern province of Soc Trang and in the northern province of Nam Dinh where two flocks of ducks tested positive to the H5N1 virus. In Soc Trang, the bird flu was detected at a farm in Trang's Thanh Thoi Thuan Commune. The disease killed 500 out of 630 ducks on the farm. In Nam Dinh, a flock of 7-month old ducks in Nghi An Commune was hit by the bird flu killing 270 ducks.
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Marel sells Carnitech to AIAC [23 February 2010] Marel has reached an agreement to sell Carnitech A/S in Stovring, Denmark to a private equity company – the American Industrial Acquisition Corporation (AIAC),as part of its plan to off-load its non-core assets. However, Carnitech’s former salmon and freezing divisions its operations in the United States are excluded from the sales and are now operated under the Marel name and management. AIAC will rename its new company and will phase out the use of the Carnitech brand name in 2010.
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Haid Group to build three new feedmills [22 February 2010] Haid Group, an aquatic and poultry feed producer based in Guangzhou, China,will spend CNY 249 million (USD36.6 million) to build three feedmills with a combined capacity of 640,000 tonnes of feed per year. The three plants, with the respective capacity of 240,000 tonnes, 220,000 tonnes and 180,000 tonnes will be located in Changzhou, Jiangsu province, Jieyang, Guangdong province and Chengmai, Hainan province. All are expected to be operational in 2011. In addition, the enterprise intends to invest up to USD 8 million to launch a wholly owned subsidiary overseas for materials purchase in the international market. Haid Group, was listed on ChiNext in November last year. It raised CNY 1.5 billion (USD220 million) through the initial public offering, CNY 861 million (USD127 million) more than its target.
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ERV diagnostic lab in Philippines gets upgrade [22 February 2010] The Philippine Bureau of Animal Industry (BAI) and the Food and Agriculture Organisation (FAO) recently inaugurated the renovated Ebola Diagnostic Laboratory at BAI's Philippine Animal Health Centre. The upgraded laboratory now has the capacity to conduct antigen and antibody detection of the Ebola Reston virus (ERV), and the BAI said the lab will provide vital support in the quick diagnosis, surveillance and monitoring of the virus in the field. It will also help establish the prevalence of the virus in pigs and help to better understand its animal-human-wildlife interface. Pork producers in the Philippines welcomed the development, saying this will help the Philippines in its plans to export its pork meat and pork products.
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LHHB acquires stake in Malindo [22 February 2010] Leong Hup Holdings Berhad of Malaysia plans to acquire a 1.3% stake in Indonesia's PT Malindo Feedmill Tbk for IDR 3.9 billion rupiah (USD 0.41 million). Malindo produces and trades animal feed and commercial day-old chicks, had been giving consistent dividends.Leong Hup sees potential growth in Malindo as chicken consumption in Indonesia is still low at about 5kg per capita versus Malaysia's 38kg per capita.The acquisition is expected to be completed by this week.
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Pakistan's new feed tax slammed [22 February 2010] Pakistan Poultry Association has slammed the government's move to impose a sales tax on poultry feed, saying this would ruin the country's poultry industry and unnecessarily raise the price of chickens and eggs. In a letter submitted to the government's Federal Board of Revenue, the association said feed cost accounts for 60-70% of the production cost. Therefore, imposing the sales tax would increase the production cost. The association said that the new sales tax scheme would negatively affect the industry that includes 285 hatcheries, 141 feedmills and over 25,000 layer, broiler and breeder farms as well as hundreds of thousands employed in poultry production.
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SMFI to grow chicken exports by 20% [19 February 2010] San Miguel Foods Inc (SMFI) is looking at increasing its chicken exports this year by 20%, said SMFI President Rita Imelda Palabyab. The country's main export market remains Japan, where Ms Palabyab said the Philippines is ranked 3rd in raw chicken exports after the US and Brazil. She pointed out that Philippine chicken products have earned a reputation in Japan as being “tastier and more tender because we use a smaller bird than Brazil or the US.” Last year, SMFI, which is currently the only Philippine company exporting products to Japan, exported some 6000 tonnes of yakitori-style chicken mostly to that country. Ms Palabyab also addressed the threat of the AFTA which has brought tariff rates on chicken and livestock products down to zero but said SMFI has been preparing for it.
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Thailand to see higher feed usage in 2010 [19 February 2010] The demand for animal feed raw materials in Thailand is forecast to be higher in 2010 in line with an expected rise in animal population that will be encouraged by growing local consumption and exports of meat, according to the Office of Agricultural Economics. Broken rice consumption is forecast at 720,000 tonnes, up from 2009 by 20,000 tonnes; corn at 3.26 million tonnes compared with 3.19 million tonnes a year earlier; soybean meal at 2.26 million tones from estimated 2.21 million tonnes the previous year and fish meal will be 180,000 tonnes, up from 170,000 tonnes in 2009.
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Kerala to increase feed subsidy for dairy farmers [19 February 2010] India's southern state of Kerala is considering increasing a feed subsidy for dairy farmers to boost milk output in the state. A study team appointed by the state government has proposed the feed subsidy to be increased from INR 0.5/kg (USD 0.01) to INR 3.0/kg (USD 0.07). Over 200,000 farmers will be eligible for the new scheme and this would result in an increase of 218,000 litres of milk.
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CPF, AKVA join hands in shrimp farming [19 February 2010] Thailand’s Charoen Phokphand Foods Plc (CPF) and AKVA group ASA, the Norwegian aquaculture technology supplier, have inked in an agreement to develop a new production system for white shrimp. This system will utilise AKVA's recirculation technology and CPF's knowledge in shrimp farming while CPF is working to improve their production methods and farming technology. With this project, CPF is addressing issues such as the level of which marine resource and land areas are utilized; the escape of shrimp from farms to interfering with wild stocks; and disease control, said Chingchai Lohanawatanakul, Chairman of the Executive Board of CPF. The project also has a potential to limit the carbon footprint of the produced shrimp, he said.
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Daewoo to plant grains in Southeast Asia [18 February 2010] South Korean trading firm Daewoo International Corp plans to launch farming and bio energy related businesses to boost growth in Southeast Asia.The company said it will soon launch projects to secure grains, soybeans, corn and other agricultural products, and expand businesses in the resource-rich Southeast Asia.Myanmar is likely to be a target country for its agricultural projects after its success in the natural gas business in the country.
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China’s 2009 wheat output estimated at 114.95m tonnes [18 February 2010] China's National Grain and Oils Information Centre (CNGOIC) has predicted that the amount of wheat production may reach 114.95 million tonnes in 2009, 2.49 million tonnes more than that of the previous year. The growth is mainly due to the increase in the sowing area and sound weather conditions, commented the NGOIC. The production of winter wheat is estimated at 108.7 million tonnes, 2.28 million tonnes more than in the previous year, while production of spring wheat is expected to be 6.25 million tonnes, up 220,000 tonnes year-on-year.
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Myanmar detects fresh bird flu case [18 February 2010] Myanmar has confirmed a fresh bird flu outbreak in a poultry farm in a suburban township of capital Yangon, prompting a ban on chicken and egg sales within a 7km radius around the infected farm. The Livestock Breeding and Veterinary Department said a test confirmed that samples of 2500 dead birds in the farm confirmed the bird flu virus strain H5N1. Myanmar was been free of the disease for two years. The department urged poultry farms surrounding the outbreak area to beef up biosecurity measures and avoid illegally imports, selling and transportation of the birds.
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Indian soybean futures soar as rapeseed crop plunges [18 February 2010] Indian soybean futures are climbing following a forecast that India's rapeseed crop in 2010 would drop 4.8% to 5.9 million tonnes due to droughts. The soybean March contract on the National Commodity and Derivatives Exchange increased 1.6% to INR 2135/100kg (USD 49.6). The March soyoil contract increased 1.32% to INR 268/10kg (USD 6.2) and rapeseed April contract increased 1.12% to INR 487.8/20kg (USD 11.3). A steady increase in Indian soybean price is hurting soybean meal exports from India that plunged 32% in January as Asian buyers are switching to cheaper SBM from South America and the US. It is also hurting Indian soybean crushers as the crush margin in getting lower.
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World's largest chicken processing facility commissioned in Anhui [17 February 2010] The world's largest chicken meat processing facility has been commissioned by Hecheng Agricultural Development Co, a subsidiary of the Hewei Group, Construction of the plant, in Feidong county in central China's Anhui province, began in September 2007 and occupies an area of approx 20 hectares. The first phase cost CNY 200 million (USD 29.2 million) and comprises three automatic chicken slaughter lines and affiliated processing equipment that allows the factory to slaughter 220 million chickens and produce 250,000 tonnes of frozen chicken annually with a value of CNY 3 billion (USD 439 million). A second phase will see a further CNY 100 million (USD 15 million) investment. Upon completion, the annual output value is expected to hit CNY 10 billion (USD 1.5 billion).
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Bounty to expand ‘Chooks to Go’ outlets [17 February 2010] Bounty Agro Ventures Inc is set to spend PHP 300 million (USD 6.5 million) to expand its 'Chooks to Go' roasted chicken outlets. There are currently some 600 outlets in the Philippines and Bounty President and General Manager Ronald Mascariñas said the company is planning to open 900 more by the end of 2010. Bounty quietly entered the roasted chicken market in 2008, and Mr Mascariñas said that the company is exploring the possibility of setting up Chooks to Go outlets in other Asean countries like Vietnam, Cambodia and Indonesia.
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China warns of diseased pork [17 February 2010] China's State Administration of Industry and Commerce issued an urgent notice last week to inform consumers and local law enforcement officers that 'diseased pork' is being sold in some regions of the country. According to Cai Jun, Director of the publicity department of the administration, the severe cold in January caused diseases to spread among pigs in several parts of the country. Although no region was specified, an online forum revealed that diseases among pigs were detected in Jilin, Gansu and Shandong provinces.
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Philippines await FMD-free certification from OIE [17 February 2010] The Philippines is hoping that the Office Internationale des Epizooties (OIE) will certify the whole island of Luzon as FMD-free when it evaluates the country's application in March. Bureau of Animal Industry Director Dr Davinio Catbagan said that experts from the OIE has helped craft the documents for evaluation, and have suggested the Luzon be divided into three zones. Dr Reildrin Morales, National Coordinator of the Bureau’s FMD program, said that FMD vaccination has been withdrawn for almost two years in two zones but less than 12 months in the third.
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CPF to invest USD 500m in Russia [16 February 2010] Charoen Pokphand Foods (CPF) of Thailand is planning a RUB 15 billion (USD 500 million) investment in Russia. The expansion of the company's meat business in Russia will involve the construction of a new large agricultural holding, which will complement an already existing feed-milling plant, piggeries and a meat-processing plant owned by CPF in Russia. In addition, CPF is currently in talks to launch its own retail chain in Russia. According to CP Russia Deputy Director General Surat Rakhimbabaev, the company is currently completing the construction of two pig complexes, which will include a multiplication farms designed for 2400 sows and fattening complexes for 28000 pigs.
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Cofco to set up agri bases in Shaanxi [16 February 2010] China's Cofco Group has inked a strategic cooperation framework with Shaanxi provincial government, to set up agricultural production bases in Shaanxi and northwest China over the next three to five years. The bases will focus on grain, oil, and foodstuffs processing and will entail an investment of CNY 10 billion (USD 1.5 billion). Not only is the agreement a boost to the province's economy, the cooperation will accelerate the agri-modernization and industrialization in Shaanxi province, commented Yao Yinliang, the Provincial Vice Governor.
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South Korea’s animal disease problems grow [16 February 2010] South Korea reported its sixth FMD case in a cattle farm north of Seoul in January, while it has been also reported that low-pathogenic avian influenza (LPAI) has infected some 26,000 ducks in Seosan City. The Philippines has banned pork and poultry imports from imports from South Korea. Also banned by the Philippines are poultry and live bird imports from Taiwan following a report in January that 7,000 chickens died of the virus in a farm in Changhua County. The Philippines has been strictly imposing bans on imports from FMD-affected country, especially as it is currently awaiting the approval of its pending application for FMD-free without vaccination status for Luzon from the Office Internationale des Epizooties. Meanwhile, the country is only one of two poultry producing countries in Southeast Asia that has managed to keep the AI virus at bay.
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Big market in Asia for Aussie beef [16 February 2010] Indonesia features as the destination with greatest growth potential for Australian beef exports based on last year's numbers. In 2009, Australia exported 51,800 tonnes of beef to Indonesia, or 56,9% more compared to 2008. However, Japan, the US and South Korea still emerged top buyers in 2009, importing 356,600 tonnes, 251,500 tonnes and 115,500 tonnes respectively.
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China launches new food safety initiatives [12 February 2010] New damaging revelations over melamine-tainted milk products from China has led authorities to launch a new national food safety drive. Vice Premier Li Keqiang said the campaign would focus on the food processing, food additives and health supplements sectors, as well as livestock slaughter, food circulation and farm products. He admitted serious problems remained with the country’s food safety system and that the situation was urgent. The new scandal involved milk that had been repackaged for sale and put back on the market instead of being destroyed after the 2008 scandal.
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Thai-German Meat to build new plant [12 February 2010] Thai-German Meat Product (TGM), specialising in a broad range of Western meat products such as sausage, ham, bacon, salami and dried ham, will start to construct its new plant this month. The new facility is expected to be operational by mid next year, said Vice President Watana Puapatanakajorn. The new processing factory will boost TGM's daily production by another 60-70 tonnes from 20 currently and will increase the company’s exports to around 255 of totals sales from around 15-18% this year. Total sales revenue of the company was around THB 1 billion (USD 30.14 million) in 2009.
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China to emerge as global grocery market leader [12 February 2010] China is likely to emerge as the world's biggest grocery market over the next five years, taking over from the US according to market research organization IGD. Using International Monetary Fund figures that forecast a real compound annual growth rate (CAGR) for China of 11.44% from 2009-2014, compared to growth of 4.07% for the US, IGD extrapolates that China could grow three times as fast as the US. By 2014, IGD predicts that the Chinese grocery market will be worth USD 1.046 trillion, compared to a forecast US market value of USD 1.024 trillion.
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Bali promotes integrated farming [12 February 2010] Funds in excess of USD 860,000 has been set aside by Indonesia's Bali provincial administration to develop 40 integrated farming locations.Made Putra Suryawan, head of Bali Agriculture office, said the integrated farming development was a breakthrough that would accelerate the integration of new farming technology with traditional farming systems.The technology is expected to allow farmers to combine their planting systems, growing major food commodities like rice, corn and soy within one specific location. He added that the technology would re-introduce farmers to the organic farming system, long forgotten by the locals.
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Bangladesh to import DOC and eggs [11 February 2010] Bangladesh has insisted that it will continue to allow poultry imports to ease the shortage in the country, but will not allow imports from India because of a fresh bird flu outbreak. Despite protests from local farmers, Bangladesh approved 17 traders in December, to import day-old-chicks (DOC) and eggs worth BDT 87.2 million (USD 1.25 million), saying the import was necessary to ease the shortage and high prices. The traders earlier planned to import DOC and eggs from India. New criteria however, states that poultry imports are allowed only from countries recognised by OIE to be free from the bird flu.
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Livestock in China are major water polluters [11 February 2010] Livestock and poultry are major sources of agricultural pollution in China stated the country's first national census of pollution sources. Zhang Lijun, vice minister of environmental protection said controlling pollution from agricultural sources is essential to solving the country's water pollution problem.Mr Wang said the MOA will work to help livestock and poultry breeding farms develop methane digesters. He added that measures will also be taken to limit the waste discharged in rural areas and improve the efficiency of agriculture chemicals.
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South Koreans warned against visiting farms [11 February 2010] South Korean authorities have warned residents travelling abroad not to visit farms or bird sanctuaries in an effort to prevent further outbreaks of livestock diseases in the country. Citing recent outbreaks of foot-and-mount disease in Beijing and bird flu in Vietnam and other parts of Southeast Asia, the Farm Ministry has said this could raise the possibility of such diseases entering Soith Korea has been hit by bird flu three times, with the latest outbreak occurring in April 2008. It resulted in a record 8.46 million birds being culled at the cost of around KRW 264 billion (USD 228 million).
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Chicken smuggling grows in Vietnam [11 February 2010] A growing number of unquarantined chickens are being smuggled into Vietnam's southern city of Ho Chi Minh City as demand soars during the Vietnamese New Year or "Thet" this weekend. The city's Animal Health Department seized and destroyed 1100 birds, 250kg of chicken meat and 5700 eggs a week before the Thet festival as they had not passed the quarantine by local health authorities before being moved into the city. In response, the city's People's Committee has appointed inspection teams to monitor the sale and transportation of chickens in the city.
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CP Cambodia to boost volume of feed sales by 20% [10 February 2010] CP Cambodia, a subsidiary of Thailand's Charoen Pokphand Group, plans to increase its feed sales by 20% to 144,000 tonnes in 2010 to serve a growing demand for animal feeds in the country, according to Vice President Wittaya Kreangkriwit. He said this would boost the revenue from feed sales by 30% to USD 72 million in the year with the feed price averaging at USD 500/tonne. CP Cambodia expects to buy 100,000 tonnes of corn, 6000 tonnes of cassava and 1500 tonnes of soybean for feed production in 2010.
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Thailand announces development plan for pig industry [10 February 2010] Thailand’s Pig Board, a core body overseeing pig industry policy, has agreed upon action plans to be implemented in associated with the earlier adopted master plan to develop the pig and pork industry as a whole. The plans require a budget of THB 1.5 billion (USD 45.2 million) for funding the implementation from this year through 2014. The focus is on upgrading the country’s pig production standard especially food safety and towards aestablishing disease-free status. Thailand is forecast to produce 17.6 million live pigs this year, or around 1.33 million tonnes of pork meat. Around 500,000 live pigs and 16,000 tonnes of pork are expected to be exported, said Minister for Agriculture Teera Wongsamutr.
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Sun Group advances ready-to-eat sector [10 February 2010] Thailand's Sun Food, has moved forward to tap into growing demand for ready-to-eat food in the local market by introducing more convenience ready-to-eat chicken menus to consumers. The products are marketed under two brands namely Gosun and Ginsun. The Gosun brand has been around for some time especially through the chicken rice franchise. Sun Food's focus now is more on supplying ready-to-cook and ready-to-eat products to food service operators while Ginsun will target consumers with ready-to-eat products that can be picked-up at supermarkets and convenience stores. Sun Group hopes to boost its portion of food products to 10% of its overall sales in the next five years from around 5%, said President Somkiert Tangjaiavorn.
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Independent broiler farmers grow in India [10 February 2010] Rising chicken prices in India has boosted the number of independent broiler farmers as they expect a higher profit from selling their birds at the market price. The bird price in India has almost doubled from last year to about INR 60/kg (USD 1.4) due to a shortage of chicks as major breeders cut the production of parent stock. Increasing numbers of independent farmers are motivating broiler integrators to diversify into commercial sales of chicks and feeds, which are normally used in their own operations.
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MFM in JV for trading of raw material for animal feed [9 February 2010] Malayan Flour Mills Bhd announced last week, the formation of Premier Grain Sdn Bhd, a joint venture with Japan's Toyota Tsusho Corporation and Toyoto Tsusho (Singapore) Pte Ltd. The newco will carry out trading of raw materials for animal feed. Premier Grain will also be able to leverage on Toyota Tsusho's global supply network to get more feed grains, said MFM Managing Director Teh Wee Chye. MFM will own 51% of the joint venture, with the remaining 49% held by its Japanese partners. "The joint venture will allow us to grow further in terms of economies of scale and with this, we can put more grains in the pipeline via their global network already established," Mr Teh said. "The feed grains will be used internally and be for sale in the Malaysian market.
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Corn prices ease in Thailand [9 February 2010] Corn prices in Thailand are expected to stand at a level that is acceptable by feedmillers even though demand for corn in the world market will continue to rise. Nopporn Vayuchote, Vice President of the Thai Feed Mill Association, said Thailand is expected to produce 4.43 million tonnes of corn in 2010. Of which, 3.89 million tonnes will be used locally and 500,000 tonnes exported. The country is likely to import about 300,000 tonnes of corn, mainly from neighbouring countries, for re-exporting. He said despite higher global demand for corn in 2009/2010, the economic downturn and low crude oil prices would cap the corn price in Thailand at THB 8-8.5/kg (USD 0.24 -o,25). Dr Nopporn said global corn production in the period is forecast to increase 0.16% to 792.55 million tonnes, while the demand in the period is expected to increase 3.67% to 803.14 million tonnes due mainly to the US policy to increase ethanol production by 14%.
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London Biscuits to acquire stake in TPC [9 February 2010] Malaysian-based London Biscuits Bhd, one of the biggest manufacturers of cake confectionery in Southeast Asia has proposed to acquire a 32% stake in TPC Plus Bhd a local egg producer. The acquisition worth MYR 7.68 million (USD 2.19 million) is aimed at ensuring a regular supply of eggs for London Biscuits expanding business. The shares are to be acquired from TPC Executive Chairman Yee Tiam Teck and Managing Director Jimmy E Pian. London Biscuits said the proposed investment would result in substantial savings and will enable it to ensure an adequate, regular and continuous supply of eggs at a “controlled price” to to meet its ongoing expansion plans.
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Uni-President Vietnam build new aqua feedmill [8 February 2010] Uni-President Vietnam will spend USD 140 million to build its third aqua feedmill in Vietnam to meet growing demand for aquafeed in the country.Located in the central province of Quang Nam, the ground-breaking ceremony of the plant was held last week and it is expected to be operational in March 2011.The new plant will have a capacity of 100,000 tonne/year and once completed it will increase Uni-President's overall aquafeed manufacturing capacity in Vietnam by 40% to 250,000 tonne/year.
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New feedmill to increase Betagro's capacity [8 February 2010] Thailand’s Betagro Group is in the process of building a new feedmill worth THB 650 million (USD 19.61 million) to meet growing demand for animal feed, said Senior Vice President Narongchai Srisantisaeng. The new plant will be sited at the group’s complex in the central province of Lop Buri and will have a maximum capacity of 24,000 tonnes/month. The facility will produce non-medicated pig feed and supply the food to swine farms under the group and is expected to start operation in June next year. The group is also considering setting up another new feed processing plant in the western part of the country, but the construction, if any, will only commence after the beginning of operations at the new Lop Buri plant. With these two new feed facilities Betagro will have 10 feed mills to produce food for animals at 2.5 million tonnes/year.
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Fortune GP Farm ventures into exports [4 February 2010] Sri Lanka's Fortune G-P Farms, an associate company of Bairaha Farms PLC, has ventured into the export market, with the export of two consignments of Parent Breeder Chicks to Nepal. The consignments consisted of 6,000 DOC. Until recently, 85% of Sri Lanka's annual requirement was imported, but now Fortune G-P Farms, has the capacity to supply nearly 50% of the local requirement. Bairaha is a vertically integrated poultry producer, engaged in all the aspects of breeding, production and processing with the exception of feed milling.
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China announces tariffs on US poultry imports [8 February 2010] China will impose tariffs ranging from 43.1%-105.4% on US poultry imports beginning end of this week. Chinese authorities announced the heavy anti-dumping taxes claiming that local producers are being sorely affected by the low-priced imports. The announcement has come at a time of mounting economic tension between both countries.
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Indian buffalo meat exports soar [8 February 2010] Buffalo meat exports from India increased 45% to around 1.94 million animals during April 2008 to January 2009 compared with the same period last year.The rise in exports boosted the meat price in the country by 57% in the period to INR 115/kg (USD 2.74). High export demand also encouraged the farmers to feed their animals, causing the cattle feed price to rise 90% between 2006-2009. India also saw its cattle feed exports soar 101% during the period. Increasing buffalo meat exports, however, is negatively affecting milk production in the country as the farmers sell their productive animals for slaughtering as the price is more attractive.
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Betagro chicken feed awarded carbon-footprint label [5 February 2010] Thailand’s livestock integrator Betagro was recently awarded the carbon-footprint labels for its chicken feed products from the Thailand Greenhouse Gas Management Organisation (TGO). The company's chicken-feed plant in Lob Buri was the first plant to join the carbon footprint program since may 2009 and three products from the plant met TGO criteria, with each kilogram of the feed producing a carbon footprint of between 330 to 360 grams, said Executive Vice-President Suthep Tirapipattanakul. The carbon footprint reflects the greenhouse gas emissions from each product over its entire life cycle. Betagro group plans to extend its low-carbon program to livestock farms and processing plants.
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CPF Kurobuta premium pork on sale at Tops [5 February 2010] Charoen Pokphand Foods Plc (CPF) has launched its premium-grade pork product “CP-Kurobuta Pork”. Distributed for the first time through the high-end branch of Top Supermarkets called Central Food Hall in Bangkok, the company is expecting sales of the product to help boost overall share of CP's packed pork in Tops to 45% this year from 30% in 2009, said Mr Somsak Hongsrichinda, Consultant. The innovative CP Kurobuta pork is a premium meat that is tender and more juicy compared to normal pork. CPF’s production capacity of Kurobuta pig is currently at 1,400-2,000 pig per week. The company targets sales at Tops to reach THB 2 million (USD 60,356) per month and will expand distribution of the product to other modern trades in the next six months, Mr Somsak said.
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US soy sales reach record level [5 February 2010] As of January 21, the 2009/10 U.S. soybean export sales have reached record levels—34.6 mmt, 92% of the projected annual total, with 10.3 mmt of that remaining to be shipped. The record levels are driven mainly by the Chinese demand. US soybean export inspections may continue through the same season as the South American export program, if all of the sales are shipped during the marketing year that ends August 31.
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Mindanao hog producers calls for separate biosecurity region [4 February 2010] Mindanao hog farmers are calling on the government to declare Mindanao as a separate biosecurity region in order to boost the development and growth of the industry in the island as well as boost the export potential of its pork meat and pork products. By doing this, Mindanao will avoid being tagged with Luzon and Visayas in reporting biosecurity issues. Pork producers in Mindanao has been looking forward to exporting pork meat and pork products to Singapore since the country expressed its interest in sourcing these products from the region, which the Office Internationale des Epizooties had declared and recognised as FMD-free for many years now. However, the initial shipment to Singapore that was scheduled to take place in December 2008 was halted when the Philippines voluntarily suspended exports following the that the Ebola Reston virus was detected in blood samples from pigs in Luzon.
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Bangladesh producers oppose DOC importation [4 February 2010] Poultry producers in Bangladesh have opposed the government's move to allow seven local firms to import DOC from India. The fear this time is that since the industry in India has suffered a new outbreak of bird-flu this might put Bangladesh's struggling poultry industry in danger with a fresh outbreak as well. The seven more local firms have been allowed to import some 35 million chicks from India without ensuring stringent avian-influenza virus protection measures to those chicks. In December last year, the ministry allowed 17 local importers to import some 83 million one-day chicks from India.
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Vietnam to focus on technology in livestock sector [4 February 2010] Vietnam’s Ministry of Agriculture and Rural Development’s Department (MARD) has set a growth target of 8%-9% in 2010 for its livestock sector. The industry will focus on big-scale production, farming model, industrial animal raising connected with big-scale processing and waste treatment to improve efficiency, easy control of diseases and secure food safety. At the same time, MARD plans to tighten control over illegal import of animals and animal products.In 2009, the husbandry industry produced 75,000 tonnes of buffalo meat, 257,800 tonnes of beef, 2.93 million tonnes of pig, 502,800 tonnes of poultry and 5.9 billion of poultry eggs.
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Thailand opens halal center in the south [3 February 2010] Thailand’s Industrial Estate Authority has opened a one-stop service center at the Halal Food Industrial Estate in the deep-southern province of Pattani to attract private investment to the southern region and promote the production of halal food. The center administrates the halal GMP/HACCP standard, promotes business and provides marketing and other services. Thailand has around 3 million Muslims, about 5% of its total population. The country’s halal exports, however, is around 1% of the global halal food market which is worth around USD 150 billion.
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Betagro commits to support Indian poultry industry [3 February 2010] Thailand's broiler integrator Betagro Group has committed to assist its Indian counterparts in lifting efficiency and competitiveness, said CEO Vanus Taepaisitphongse. Speaking at a seminar held by Novus International during VIV India 2010 in Bangalore, Mr Vanus said India needs strong demand for its poultry products both from overseas and domestic markets in order to push its growth. Through its experiences in the Thai and international markets, he said Betagro is confident that its knowhow gained from working with its Japanese partners can help Indian counterparts improve their operations towards a new stage of growth.
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CJ unveils live feed additive at VIV India [3 February 2010] Korean feed additive supplier CJ Group unveiled its latest feed additive designed to eliminate salmonella in poultry at VIV India 2010 in Bangalore. Called Biotector S1, it is a bacteriophage or a natural living organism that can destroy bacteria. Biotector S1 was selected from an organism that specifically destroys Salmonella gallinarum and Salmonella pullorum that causes fowl typhoid and pullorum disease respectively. Poultry feeding trials conducted in South Korea and India showed that Biotector S1 significantly reduces the salmonella load in the birds, resulting in a reduction in mortality due to the disease infestation and improvement in growth.
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FMPSA wants government to allow chilled pork imports [3 February 2010] The Federation of Malaysia Pork Sellers' Associations has urged the Veterinary Department to allow the import of chilled pork for all the three major Chinese festivals as demand is expected to rise by 50% then. The festivals are Chinese New Year on February 14, the Dumplings Festival on June 16 and the Hungry Ghost Festival between August 10 and September 7. FMPSA President Goh Chui Lai said the imports could cushion the impact of supply shortage, and the inevitable price hike which had become a norm during the festivals every year. For the Lunar New year, the department has allowed the imports of chilled pork from China and Thailand, and suckling pig from Vietnam. While the ex-farm price of pig in the country is MYR 760/100kg (USD 217) at present, the ex-farm price in China and Thailand is MYR 550 and MYR 600 (USD 157 & 171) respectively.
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New products at VIV India [2 February 2010] Feed additive and animal health products suppliers from the Far East and Southeast Asia are using VIV India 2010 to expand their market reach in South Asia. CIC Bio from South Korea exhibiting here for the first time aims to introduce their well-known CTCZyme or beta mannanase feed enzyme and other products to the Indian feed industry. Surprisingly, Vietnamese supplier of veterinary medicines from Vietnam's southern province of Cantho also took part, making it the first Vietnamese firm to penetrate into the Indian feed and livestock markets. The show also attracted a number of participants from China who are promoting their feed additives, poultry equipment and feed manufacturing machinery.
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Roxell unveils new male feeder pan at VIV India [2 February 2010] Roxell of Belgium chose VIV India 2010 to unveil its new pan feeder for male breeders. The show is currently underway in India's IT city of Bangalore. Named "Bozzter," it is Roxell's new generation pan feeder designed to allow cockerels to have access to feed in the pan freely without worrying that his comb would get stuck on the upper edge of the pan.Hugo de Ruyck, Roxell's Sales and Service Manager, said the oval-shaped pan for male feeders is larger and higher. It is able to accommodate 10 male breeders at a time with each feeder having his individual feeding space. He said the comb is a very sensitive organ of the cockerel, and once it is hurt the bird would be reluctant to eat. With this constraint eased proper body development and hence fertility can be assured.
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Philippine hog production inched up 1.2% in 2009 [2 February 2010] Philippine hog production rose by a mere 1.2% in 2009, but this is still better than the 1.6% contraction it suffered in 2008. Figures released by the Bureau of Agricultural Statistics (BAS) showed that hog production last year neared 1.88 million tonnes, better than 2008's 1.86 million tonnes but still less than 2007's 1.89 million tonnes. Valuewise, hog production grossed roughly PHP 161.15 billion (USD 3.45 billion), an improvement of 5.91% from 2008's PHP 152.15 billion (USD 3.26 billion). The sector remains the second leading contributor to the entire gross value of Philippine agriculture for the year, accounting for 13.56% of the total. The improvement has been attributed to increased production volume as well as better prices which grew by 4.7% to PHP 85.84 (USD 1.84)/kg in 2009 from PHP 81.99 (USD 1.76)/kg the previous year. BAS credited the industry's better performance in 2009 to the increase in the number of finishing stocks in the Visayas and Mindanao and the control of the Porcine Respiratory and Reproductive Syndrome (PRRS).
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Philippine poultry production up by 1.8% [2 February 2010] The Philippine poultry industry managed to post a 1.82% growth in production for 2009. Data from the Bureau of Agricultural Statistics show that chicken meat production topped 1.3 million tonnes, up 1.53% from 1.28 million tonnes the previous year. Chicken egg production likewise posted a hike of 5.04% from about 350,710 tonnes in 2008 to 368,460 tonnes in 2009. On the other hand, duck meat production and duck eggs production both posted contractions. Gross value for the entire industry topped PHP 144.3 billion (USD 3.09 billion), up 9.97% from the year before, with the gains contributed primarily by the chicken meat and chicken egg sectors.
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India sets up meat and poultry processing board [1 February 2010] The government of India has set up the National Meat & Poultry Processing Board (NMPPB) to oversee the growth and further promotion of the meat and poultry sector in the country. The board, consisting of 19 members including the CEO, is an autonomous body and would initially be funded by the government for two years and would be managed by the industry itself. Minister for Food Processing Industries, Subodh Kant Sahai, said the board will address all key issues related to the meat and poultry processing sector for the systematic and proper development of this sector.
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Philippine pork supply remains tight, higher prices expected [1 February 2010] Despite the improving output of the Philippine hog industry, the country will continue to experience a tight supply of pork meat at least until April 2010. Agriculture Assistant Secretary Salvador Salacup said that at least for the first four months of the year, pork supply will remain tight as many pig farms are still recovering from the PRRS outbreak that hit the country in the last few years. However, he added that there are currently no plans to allow special importation. Meanwhile, Bureau of Animal Industry Director Dr Davinio Catbagan said that pig and poultry production might be affected by the El Niño phenomenon that the country is currently experiencing, which could bring an extended drought. Dr Catbagan said the livestock and poultry sectors combined stand to lose as much as PHP 10 billion (PHP 214.13 million) as a result of the dry spell, which would stunt the growth of the animals.
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Hanoi beefs up surveillance on animals and meats [1 February 2010] Animal health authorities in Vietnam's capital of Hanoi are beefing up surveillance at main checkpoints to curb transportation of unquarantine animals and animal products. The move is aimed at ensuring food safety and hygiene for city consumers during the Lunar New Year, when chicken is served as a traditional dish by all Vietnamese families. According to the city's Animal Health Department, inspectors and market watch teams will conduct round-the-clock checks on poultry, livestock and other products at nine checkpoints throughout the city starting in January. Violators will face penalty with the severity depending on the degree of violations and their products seized.
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CPF plans new feed mills in six countries [29 January 2010] Thailand’s Charoen Pokphand Foods Plc (CPF) plans to invest as much as THB2.5 billion to THB 3 billion in setting up new animal feed mills in six countries namely Vietnam, Malaysia, India, Bangladesh, Kenya and Tanzania, said Virote Kumpeera, Senior Vice President of Bangkok Feedmill Co Ltd, a unit of CPF. The planned investments in Vietnam, Malaysia, India and Bangladesh are in addition to the existing facilities which are now mostly operating at maximum capacity. All mills in these four countries will have a production capacity of 100,000 tonnes/month combined, thus boosting production capacities at CP Group by another 1.2 million tonnes/year from 24 million tonnes/year at present.
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China’s soybean crushing capacity continues to expand [29 January 2010] China National Grain and Oils Information Centre (CNGOIC) has predicted that the country's soybean crushing capacity would reach 100 million tonnes (tonnes) by the end of 2010. The new crushing capacity is expected to top 6 million tonnes this year as several large processing projects will come on stream. Currently, China's soybean processing capacity remains at around 90 million tonnes, with less than half being utilized, the report said. The National Development and Reform Commission previously initiated a campaign to restrict a massive expansion of soybean crushing capacity in a bid to promote healthy development of the domestic soybean processing industry, nevertheless the government will still support the plants that process non-genetically modified soybeans, according to an expert with the Heilongjiang Soybean Association.
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AFTA draws foreign franchises to Thailand [29 January 2010] Regional franchise businesses, especially from Malaysia and South Korea, will now be able to enter the Thai market with the onset of the Asean Free Trade Area agreement this year. This would pose a threat to local franchise business here, the Franchise and Licences Association of Thailand said. Weak franchise operators, especially in food, coffee, spas, and car-care services, are likely to be put out of business by foreign operators coming into Thailand. Franchisers from South Korea, Malaysia and even Singapore are now actively expanding into Thailand. Secret Recipe, a Malaysian cafe chain, and Thai Express, a chain of restaurants serving Thai cuisine in Singapore, have already established a presence here, the co-founder of the association Krit Kranchannabatr said. Thailand currently has about 848 franchise and licensing businesses - 567 are Thai and 281 are international franchises.
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Japan lifts ban on Texas poultry [29 January 2010] The ban imposed by Japan earlier this month on pultry imports from Texas, USA has been withdrawn. The ban was lifetd after tests revealed that a flock of ducks in the state were not sick with avian influenza. Japan imposed the ban after tests at a live-bird market in the north-central region of Texas detected an 'initial week positive' for avian flu.
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Belgian pig breeder to expand in China [28 January 2010] Belgian pig breeder Rattlerow Seghers and its Chinese partner Hebei Yufeng Jing An Breeding have reached an agreement to increase the nucleus program in order to have and maintain a sow herd of 400,000 within a three year time frame. The Chinese nucleus herd of Rattlerow Seghers will therefore be expanded to 600 sows and farm construction has already begun. Both parties expect that in the summer of 2010, nucleus animals will be transported to China. In 2009, the joint venture’s 20,000 GP sows produced approximately 85,000 PS animals in 28 provinces of China. The joint venture Hebei Seghers Breeding Co Ltd was established 10 yeas ago in Hebei province, some 250km South of Beijing.
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Corn farmers want feed wheat to be taxed [28 January 2010] A group of Philippine corn farmers has called on the government to make sure feed wheat is not included in zero-tariff importation of wheat. Philippine Maize Federation (Philmaize) President Roger Navarro said that while the government has yet to issue its policy and order regarding wheat imports, it must make sure that the policy will not affect the local corn industry negatively, thus feed wheat should not be included in any tariff free importation. He cited the government's decision to allow the entry of tariff free wheat in January to June 2009 to address the increasing bread prices, which adversely affected the corn industry because feed wheat was included. Local feedmillers took advantage of the policy and brought in massive amounts of feed wheat that brought down demand for corn. Mr Navarro said that any influx of cheap feed wheat will pull down corn sales and discourage planting, which could eventually lead to low corn production and high corn prices.
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Vietnam to restructure its livestock industry [28 January 2010] Vietnam plans to restructure its livestock industry to ensure sufficient meat production for the growing populations and lift its competitiveness in the overseas market. The Ministry of Agriculture and Rural Development said it targets to increase the ratio of livestock production to 38% of the total agricultural output by 2015 and 42% by 2020 from 30% at the moment. Animal Husbandry Department's Head Hoang Kim Giao said by 2020 the department targets that the country's livestock industry would produce 5.5 million tonnes of meats, 14 billion eggs and more than one million litres of milk. This translates into 56 kg of meat, 140 eggs, and more than 10 kg of milk per capita per year. By then the population of pigs, chicken, and dairy cattle is expected to increase respectively by 2%, 5%, and 11% to 35 million pigs, 300 million chicken and 500,000 dairy cattle.
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TUF forecast to post record profit in 2010 [28 January 2010] Thai Union Frozen Products (TUF), Thailand’s leading producer and exporter of canned and frozen seafood products, is forecast to post a record high profit for its operations in 2010, Tisco Securities forecast. TUF is likely to report a record profit of THB 3.65 billion (USD 110.7 million) in 2010, a growth of 16% from estimated earnings in 2009, while profit is expected to increase 43%. Factors that will help to strengthen TUF’s operating performance include easing expenses, lowering production cost and a rising portion of value-added products that boosts profits while lessening fluctuating prices of tuna is also an important support to the rewarding operation, Tisco noted. TUF reported a dominant profit for the operation of the third quarter 2009 at THB 1.02 billion (USD 30.92 million) and for the nine-month operation in 2009 at THB2.63 billion (USD 79.73 million) due to higher sales and profitable operations of subsidiaries.
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Kasetsart to set up feed manufacturing and grain science program [27 January 2010] Kasetsart University's Kamphaeng Saen Campus in Thailand plans to launch a new program on Feed Manufacturing and Grain Sciences at its Animal Science Department in collaboration with the Agronomy Department. Called the Feed Manufacturing and Grain Science Program, it will be the first course in Thailand that offers an integrated knowledge on animal nutrition, feed processing and grain processing and management. It will be available for both under graduate and graduate levels. Dr Seksom Attamangkune, Head of the Animal Science Department, said the program aims to produce graduates that are knowledgeable in all subjects related to the feed industry, not just in animal nutrition. It will focus on quality assurance in feed manufacturing in relation to all the components of the feed and food supply chain. To support the program, the department is in the process of setting up laboratories for chemical, physical and biological analysis.
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International investors to tap into organic pork production in China [27 January 2010] Innorich International, a Hong Kong-based marketing company in the real estate industry together with a subsidiary of China International Industry & Commerce Co. Ltd (CIIC) and Weinan municipal government in western China’s Shaanxi province, plans to build the Yellow River International Food Industrial Park where more than 3 million pigs will be slaughtered annually and organic pork production will reach 230,000 tonnes. The total investment for the project will be USD 1 billion, with 31% coming from enterprises, 19% from the local government and the remaining 50% from overseas investors, according to Innorich International. Characterised by an eco-friendly production mode, the project includes a biogas facility that generates 18 million kilowatts of electricity a year and a fertiliser plant. Innorich claimed that the project aims to focus on providing quality pork for wealthy consumers who are not price sensitive thanks to the rising affluence in China.
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CPF to expand chicken rice franchise business [27 January 2010] CPF Food Products Co Ltd, a unit of Charoen Pokphand Foods Plc or CPF, plans to expand its recently-launched chicken rice business via the franchise model. The company anticipates that the quality and safety of the product will allow it to achieve a sale growth target of 12% in 2010. “We trialed the market last year and found that the market implication was terrific. Our target is to increase the number of chicken rice outlets to 140 branches this year from 30 last year and expect to raise the number to 500 outlets in the next five years,” Senior Vice President Sathit Sangkanarubordee said. The company hopes to achieve a sale of THB 4.1 billion (USD 124.1 million) this year, or a growth of 12%, for businesses under the Five Stars brand comprising grilled chicken, fried chicken, Five Stars Ready Meal, egg noodles and shrimp wonton and chicken rice. The company will expand the number of outlets of all businesses to 600 branches this year, with investment and marketing budgets set at THB 150 million (USD 4.54 million) and THB 130 million (USD 3.94 million), respectively, Mr Sathit revealed.
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China to relaunch feed safety campaign [27 January 2010] The Ministry of Agriculture (MOA) confirms it will continue the campaign on feed quality and safety, by relying on strengthening standardised management of producers, and highlighting monitoring on raw materials and the illegal use of additives in animal husbandry. The threshold of market access will be further lifted through efforts to promote good practices, foster law enforcement and crack down on the use of banned chemicals. MOA will also improve the competence of professionals in this field, intensify law enforcement and enhance the quality and safety of livestock products. An official from the ministry’s Department of Animal Husbandry stressed that in this year's campaign, administrative departments at all levels should focus on both short-term effects and long-term working mechanisms, to improve accountability, innovation, market access, supply capacity and development planning.
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Thailand’s A.F.E. sets up new feed plant [26 January 2010] Thailand’s A.F.E. Co Ltd has set up a new feed plant in Chonburi province that has a maximum capacity of 18,000 tonnes/month, President Norasih Trakulchang, told Asian Feed Magazine.“The test-run at the new plant is expected to commence in two or three month from now,” Dr Norasih revealed. The new plant, A.F.E.’s second, is automatic and PLC computer controlled, with a processing speed of 35-40 tonnes/hour. Products from the new plant will comprise layer feeds, poultry feeds and pig feeds, with pet feed especially dog food being considered for the future, Dr Norasih said.
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Pork to be listed as controlled item [26 January 2010] Malaysia's Domestic Trade, Cooperatives and Consumerism Ministry will list pork as a controlled item ahead of the Lunar New Year celebrations next month. Minister Datuk Seri Ismail Sabri Yaakob said this was to control the price of pork which was the main food item for the Chinese community during the celebration. He said a detailed announcement on the price and the full price list of controlled items would be made in early February. The price control will be in place from February 12-21.
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South Korea's grain demand stable [26 January 2010] South Korea expects its demand for grains to be stable this year as its livestock industry is registering higher production, said the Korea Feed Association. The Association's Director Kim Chi Young said growing domestic meat production in 2009 resulted in an 11% increase in corn and wheat imports for animal feed by 11% to 8 million tonnes. He said corn and wheat used for feed in 2010 would remain unchanged from the previous year as South Korea's economy is picking up and that would boost the demand for meats. The South Korean feed industry used 6.2 million tonnes of corn and 1.8 million of soy in 2009 and all of which were imported with the association being the biggest buyer of the grains, buying 70% of the total amount.
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Philippines lifts ban on tiger shrimp imports [26 January 2010] The Philippine Department of Agriculture has lifted the ban on black tiger shrimp imports to help increase domestic production and eventually allow the country to resume shrimp exports. The DA clarified, however, that imports would be limited to disease-free stocks and post-larvae black tiger shrimps, and that only “shrimp hatcheries accredited by the Bureau of Fisheries and Aquatic Resources shall be allowed to import.” Pacific white shrimp hatcheries will be allowed to import black tiger shrimps as long as they put up separate facilities that will breed and produce fry. The Philippines used to be one of the top producers and exporters of shrimps in the world, however diseases led to the collapse of its shrimp industry. However, if the industry can be resurrected, the country stands to earn as much as PHP 4 billion (USD 86.81 million) annually in shrimp exports particularly to areas like the US, Europe and Korea.
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Bangladesh passes feed safety bill [25 January 2010] The Bangladeshi Parliament has passed a bill banning the use of antibiotics, growth hormones, steroid and harmful pesticides in livestock and aquaculture feeds. The move is aimed at restoring the country's shrimp exports that were found to be contaminated with banned antibiotics by its major importer, the EU, and preventing the banned items from entering the food chain via the feed. The bill stipulates that importers, traders and manufacturers of feed must obtain a license from the livestock or fisheries departments to operate their business and they should follow the safety guidelines.
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Philippines looks to East Timor for tuna [25 January 2010] The Philippines is looking at East Timor to fill the supply gap that would result from a two-year international ban on tuna fishing that has been imposed on an area of the Pacific Ocean. Philippine Bureau of Fisheries and Aquatic Resources Director Malcolm Sarmiento said that a bilateral agreement with East Timor gives the Philippines the privilege to fish in an area in the former country that approximates the area that the Philippines will lose to the ban. This will allow Filipino fishers, canners and exporters to continue producing and marketing their products without fear of running out of raw materials. Earlier projections warned that the tuna catch from purse seine fishing will decline by 10-20% with the ban.
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South Korea detects fifth FMD outbreak [25 January 2010] South Korea has confirmed the fifth outbreak of foot and mouth disease (FMD) at a beef cattle farm north of Seoul. The farm is located in Yeoncheon, about 10km from the first outbreak area that was detected in early January. Authorities said all the farm's 34 cattle will be culled together with animals in a 3km radius around the affected area to contain the outbreak. The outbreak has halted all meat exports from South Korea that was recently recognized by the US to be free from the disease. It has also disrupted pork exports to Hong Kong.
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Malaysia to invest in feed crops to support cattle industry [25 January 2010] Malaysia’s heavy dependence on imported beef has led the government to initiate a move to build feedmills to support and develop the livestock industry in particular cattle. According to Agriculture and Agro-based Industry Minister, Noh Omar the government will offer an area in the southern state of Johor and will encourage farmers to grow feed crops like corn and tapioca on a contract basis. He added that farmers would be encouraged to grow fodder grass like 'napier' or corn to support the industry under the green earth project. They will be assisted with seed supply, fertilizers and marketing by the government.
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CP Group to invest more at home and aboard [22 January 2010] Charoen Pokphand Group (CP), the agribusiness giant in Thailand, plans to invest THB 40 billion (USD 1.12 billion) at home and aboard this year, with around THB 20-30 billion (USD 606.4 - 909.6 million) set aside for investment in Thailand where potential for growth still exists especially after the implementation of ASEAN and ASEAN-China free trade agreements, said Group Chairman and CEO Dhanin Chearavanont. The investment at home focuses on food, retail and mobile-phone businesses. Investment overseas involves China, India, Vietnam and Russia. CP Group expects total revenue to grow 20% this year. The group’s flagship Charoen Pokphand Foods Plc (CPF) is expected to beat 2009's record earnings this year as it sells more ready-meals and expands in India, Russia and Turkey, according to CPF Chief Executive Adirek Sripratak.
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Pig farmers manipulating supply [22 January 2010] Malaysia’s Department of Veterinary Services (DVS) has identified at least five farmers using beta-agonist, but this could be just the tip of the iceberg, said Federation of Malaysia Pork Sellers Associations President Goh Chui Lai. Pork sellers have blamed pig farmers, especially those in the central and northern region, for the wanton use of beta-agonist. They also allege that some farmers are culling female and suckling pigs to create an artificial shortage that has raised the price of pork. According to Mr Goh, the ex-farm price of pigs has risen from MYR 460/100kg in 2007 to MYR 760 at present, due mainly to manipulation of supply by farmers.
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URC posts PHP 4b revenue for 2009 [22 January 2010] Profits of Universal Robina Corporation (URC) for fiscal year 2009, which ended in September 2009, skyrocketed to PHP 4.10 billion (USD 88.97 million), up 12-fold from its 2008 earnings of PHP 341 million (USD 7.4 million). The company attributed the strong performance to higher operating income, lower foreign exchange losses, and gains in bond and equity holdings as a result of the recovery of prices in the financial markets. Among the strong performing businesses were snack foods and beverage products, which did well in both the domestic and the overseas markets such as Singapore, Hong Kong and Vietnam. Meanwhile, sales of URC's agro-industrial segment reached PHP 5.8 billion (USD 126.02 million), up 4.9% fiscal year 2008. Earnings from the farm business increased thanks to higher sales volume and better hog prices, as well as the increase in sales of commercial table eggs and broilers during the period. This offset the drop in feed sales, which slipped 1.2% to PHP 2.73 billion (USD 59.33 million) because of the increase in “internal transfers” to farms and as hog and poultry raisers dealt with the rising feed costs in the first quarter.
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FMD in Pahang, Malaysia [22 January 2010] The Pahang Veterinary Department in Malaysia has imposed a ban on the movement of livestock, especially in Kuantan and Pekan following an outbreak of foot and mouth disease (FMD) in the state. About 100 livestock are suspected of being infected with the disease. The department had carried out ring vaccination in the affected areas.
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Philippine farm output barely up in 2009 [22 January 2010] The Philippine agricultural sector barely grew in 2009, no thanks to the devastating typhoons that hit the country in September and October last year. Data from the Bureau of Agricultural Statistics showed that farm output grew a measly 0.37% for the entire year after the sector performance contracted by 2.43% in the fourth quarter of 2009. The crops subsector, which accounts for a big chunk of total agricultural production, contracted by 1.42%. The livestock subsector which accounted for 12.47% of total agricultural production grew by 1.24%, with hog production inching up by 1.16%. Meanwhile, the poultry subsector, which contributed 14.33% of the total agricultural output grew by 1.82%, with chicken production growing by 1.53% and chicken egg production rising by 5.04%. Fisheries also posted a growth of 2.45% for the year.
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Malaysian producer gives pork a new image [21 January 2010] Malaysia’s Tip Top Meat has taken the lead in upgrading the image and perception of pork meat in Malaysia through their An Xin’s Healthy Meat Shoppe outlets. The company’s 8th and most modern outlet in Kuala Lumpur was inaugurated on January 15. The outlets retail safe and hygienic products in clean and attractive freezers. The raw meat products at the outlets are retailed under the ‘Pearl Pork’ brand, that’s synonymous in Malaysia with high grade, locally produced pork. The entire production and supply chain is regulated to ensure the freshness and safety of the products. “Our pork is free from Beta-agonists, drug residue and antibiotics. It’s also rich in Vitamin B1 and low in cholesterol and fat,” said Wong Soo Soon, Business Development Manager of AA Meat Shop Sdn Bhd, the retail arm of the company. “In the past year, we have been retailing free range pork from our farm over the weekends only and hope to grow this segment of our business.”
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Kerala's new mill to support dairy industry [21 January 2010] Kerala Feeds Limited, a state firm owned by India’s southern state of Kerala, will invest INR 350 million (USD 7.6 million) to build its new feedmill designed to have a capacity of 300 tonnes/day for producing dairy and cattle feed.Located in Kerala’s Kollam district, construction started in July and the facility is expected to be operational in about six months, said Animal Husbandry ministery C. Divakaran. Kerala Feeds’ existing feedmill is running at 95% of its capacity of 650 tonnes/day and the company needs a new plant to fulfill the growing demand for dairy feed in the state.
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China’s corn stocks expected to slump [21 January 2010] China National Grain and Oils Information Center (CNGOIC) has forecast that the country's corn stocks in the 2009/10 crop year will reach 14.87 million tonnes, down 32.53% from the previous crop year. The agency predicted that domestic corn consumption would total 148.14 million tonnes in 2009/10, up 4.21 million tonnes year-on-year, thanks to recovering demand from the feed industry. It also estimated that the country's corn output would reach 163 million tonnes in 2009, down 1.8% from 2008, and the planting area would come to 30.46 million hectares, or an increase of 2%, while the production cut would be a result of falling yield, which is estimated at 53.51 kg/hectare, down 3.7% from the previous year.
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China Agri Minister addresses improvements [21 January 2010] In a recent interview, Han Changbin, China’s newly appointed Minister of Agriculture, shared his views on solving the “san nong problem” or the issues of agriculture, farmers and rural areas. As agriculture represents the core of the Consumer Price Index for the country, he believes the government should not have classifications on rural and urban regions. There are three fundamental improvements that must be undertaken in order to establish a solid agricultural sector. Mr Han has called for increased productivity, greater standardization and more industrialization. He also said that the government needs to promote infrastructure construction in rural areas.
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Thai Cabinet cancels fee for natural casings [20 January 2010] The Thai cabinet has agreed to cancel the fees for import permits for back fat, sheep intestine and pig intestine, the natural raw material used in producing sausage products for export. The move is to support processed pork products for export as it will help reduce the production cost of the sausage using this natural casing and back fat. The cabinet has also removed the permit fee for exports of raw cattle skins (bull and buffalo) in an attempt to ease the oversupply of the products locally.
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Nepal's Nimbus Group launches soybean de-oiled cake [20 January 2010] Nepali feed manufacturer Nimbus Group has launched the country’s first soybean de-oiled cake produced domestically and sold under the SoyaMax brand. SoyaMax is a 46% protein soybean de-oiled cake. It is produced by its subsidiary Probiotech that invested NPR 300 million (USD 4.01 million) to build the curing plant located in Birgunj, about 130km south of capital Kathmandu. Probiotech plans to produce 70,000 tonne/year,Of which, 20,000 tonne/year will be used for manufacturing feed by the group, 30,000 tonne/year for sale in Nepal and the rest for export mainly to India.
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Thai government attempts to shore up egg prices [20 January 2010] The Thai cabinet has comes up with measures to assist egg farmers suffering low prices. The measures include providing market places, which are government agency sites and communities, for farmers to sell their eggs directly to consumers and asking the government authorities such as the Ministry of Defense, the Ministry of Public Health and the Ministry of Education to buy the eggs directly from farmers for at least 30 days during January to February in an attempt to absorb from the market around 1 million eggs per day. The cabinet also asked the Ministry of Agriculture to accelerate the early-removal scheme to remove laying hens at age 78 weeks instead of 80 weeks as usual, to reduce egg production and shore up prices.
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India fears virus coinfection [20 January 2010] India has sent medical teams to areas affected by fresh bird flu outbreaks in West Bengal in search of patients with influenza-like symptoms. The search is aimed at isolating patients to diagnose them for possible co-infection of the virulent bird flu virus strain H5N1 and the H1N1 flu that broke out worldwide in 2009. Experts say if the H1N1 virus is circulating in areas affected by the bird flu virus, they could combine and genetically mutate into a more virulent strain, which could pose severe danger to the public health.
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More EU pork for China [19 January 2010] The EU has increased its market share of pork to China although overall pork import volumes in China has dropped. Last year, the EU’s share of Chinese pork imports rose 18% to 60% over 2008 figures. Imports from the US however, dropped by a combined 190,000 tonnes or more than 30%. Analysts say this was due to the A(H1N1) outbreak and the use of hormones in US pig production.
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Vietnam’s meat productions grows modestly [19 January 2010] Beef production in Vietnam posted the highest growth in 2009 followed by poultry and pork, official statistics showed. Farm census conducted in October by the government’s Statistics Office revealed that beef production increased 13.7% year-on-year to 257,800 tonnes live weight, followed by poultry meat 12.2% to 502,800 tonnes, buffalo meat 4.8% to 75,000 tonnes and pork 4.5% to 2.93 million tonnes. In terms of live animals, poultry population grew at the highest rate of 12.8% to 280.2 million heads, followed by pigs 3.5% to 27.7 million heads. The census showed that the number of livestock farms increased by 18.5%.
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Vitarich shares turned over to creditor [19 January 2010] Vitarich Corporation, which used to be a leading poultry producer in the Philippines, told the Philippine Stock Exchange that it has turned over 97.55 million shares, which represent about 23.7% of the company’s 409 million outstanding shares, to Metropolitan Bank and Trust Company (Metrobank), one of its creditors. The move erased the company's debts with Metrobank. The shares were auctioned off on January 7 by the Bulacan Provincial Sheriff. The entire block sold for about PHP 39 million (USD 853,459). Vitarich, which is also engaged in feed production, is currently undergoing a court-assisted corporate rehabilitation and has a market capitalisation of PHP 168 million (USD 3.67 million). It has been under corporate rehabilitation since 2006 after having difficulties settling PHP 3.23 billion (USD 70.6 million) in loans to various creditors. From January-September 2009, the company posted a net income of PHP 10.5 million (USD 229,508), an improvement from the PHP 25.2 million (USD 550,829) net loss the year before.
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Taiwan receives first shipment of US beef [19 January 2010] The first shipment of US bone-in beef has been approved for export to Taiwan following a protocol that was signed by the two countries in October last year. Taiwan banned US beef products in June 2005 on fears of BSE. A second shipment is expected to arrive in Taiwan later this week.
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West Bengal raises bird flu alarm again [18 January 2010] West Bengal in India has been hit once again by the bird flu, just three months after the country was declared free of the virus. The outbreak this time was identified in the Murshidabad district. Poultry samples collected from the area tested positive for the H5N1 strain of avian influenza. Culling is in progress and a high alert has been raised in and around Murshidabad where over 3000 birds have already been culled.
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Vietnam research firm commercialises hybrid corn [18 January 2010] Vietnam has developed a variety of high-yielding corn hybrids to supply to farmers at a lower cost and to export to neighbouring countries. The development is by the Consultation and Development Co, which was established in 2005 under the National Maize Research Institute. The company has developed 16 corn hybrids that yield 8-12 tonnes/ha for yellow corn and 1.5-2 tonnes/ha for sweet corn. Each year, the company supplies 3000-3500 tonnes of corn hybrid seeds to farmers at prices lower than the imported ones. It also exports to Laos, Cambodia, Bangladesh and the southern regions of China.
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McDonald’s Thailand targets families with children [18 January 2010] McThai Co, the operator of the McDonald's fast-food chain in Thailand is targeting families with children as its core customer rather than teenagers as they did before as this segment patronizes the restaurant more often and spends more. Spending per visit by families is around THB 200 (USD 6.09) compared to an average of THB 90 (USD 2.74) per visit paid by other customers. Families also tend to visit McDonald's 2.2 times per month, higher than the average of 1.6 times for others. CEO Hester Chew said McThai will spend THB 20 million (USD 608,550) as a marketing plan to achieve the target. One activity is the launching of McDonald's Game Comix - a comics, games and software package – for children. The company wants to increase the share of families with children of aged 3-11 years to 28% from 23% currently.
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South Korea free from FMD [18 January 2010] The US has recognized South Korea to be free from the foot and mouth disease (FMD), allowing the country to resume pork and beef exports to the US following a ban imposed in 2000. South Korea’s Foreign Affairs Ministry said pork and beef exports to the US will resume only if the US has evaluated that its inspection system on livestock sanitation is compatible with that of the US.
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Taiwanese hybrid corn tested in the Philippines [15 January 2010] A Taiwanese hybrid corn variety is currently being tested in demonstration farms in Central Mindanao, following efforts from regional agriculture officials to boost corn productivity in the area. DA Regional Director Tommy Ala said the trials are already in their second cropping season and “results are very encouraging.” Agriculture experts from Taiwan, led by Food and Fertilizer Technology Center Director Jen Chyuan-Lee recently paid the area a visit to check on the suitability of the hybrid corn, as well as to share their expertise and production technology with Filipino farmers. Central Mindanao is the third leading corn producing region in the Philippines, with about 462,617 hectares of corn fields. As of October 2009, the region has produced roughly 1.1 million tonnes of corn.
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CP Vietnam starts new broiler complex [15 January 2010] CP Vietnam Livestock Corporation has started its broiler complex worth nearly USD 100 million in South Vietnam. Vice President Suwes Wangrungarun said local authorizes have agreed to allow the company to arrange the project in the southern provinces of Binh Duong, Binh Phuoc and Tay Ninh. By 2010, he said, the project will be able to produce 65,000 tonnes of chicken meat a year for local consumption and exports. It will create 6000 jobs.
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Vietnam’s new corn tariff takes effect [15 January 2010] Vietnam’s new tariffs on feed raw material imports has taken effect with the tariff for imported yellow corn up from zero to 5%, imported fish oil from 5% to 7% and imported wheat flour from 10% to 15%. The government claimed the tariff hike for yellow corn was aimed at preventing false claims by importers who import corn for human consumption. However, since the quantity of sweet corn imports is very small, critics said it was not the right way to curb this problem at the expense of the livestock industry, which is being badly affected by the new taxing scheme.
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South Korea to build more animal testing facilities [15 January 2010] South Korea will build more reference laboratories for animal testing, aiming to in the top 10 league of the 30-member Organisation for Economic Cooperation and Development (OECD) in this area in years to come. After successfully operating an OIE-approved reference laboratory for testing brucella disease, the country plans to build three more facilities by 2013 consisting of a testing unit for Newcastle disease in poultry in 2010, a unit for testing Chronic Wasting disease in deer in 2012, and lastly the facility for testing antibiotic resistant bacteria in livestock in 2013. With these facilities in place, South Korea hopes its competency in animal testing will be lifted from 16th place in OECD at the moment to around 10th place, along with Switzerland, Spain and Poland that operate three OIE-approved reference laboratories each.
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Indonesia cultivates maggots to replace fishmeal [14 January 2010] Indonesia's Ministry of Maritime Affairs and Fisheries has allocated USD 500,000 to support the production of maggots as a cheaper source of fish feed to replace fishmeal that's currently imported from Chile at a high cost. The ministry plans to build 4,000 small aquafeed farms in Sumatra and Kalimantan because there are many palm oil plantations in those regions and maggots can be cultivated using a by-product of palm oil trees. Made L Nurdjana, the ministry’s director general of aquaculture, said using maggots as the basis for fish feed could cut feed costs by half.
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Thailand maintains import quota for layers [14 January 2010] Thailand’s Egg Board has agreed to keep the import quota for layer breeders in 2010 at 405,721 birds, unchanged from last year, according to Permanent-Secretary of the Agriculture Ministry Yukol Limlaemthong. At that number of breeders, the country’s laying hen population is expected to total 36.51 million birds and hen eggs are forecast at 10.81 billion eggs. The ministry will try to export 350 million eggs in 2010 and expects domestic consumption to pick up a little to 165 eggs/person from 160 at present. Egg price is currently hovering at a low level, around THB 2.10/egg (0.064). The price is lower than production cost of around THB 2.30/egg (USD 0.069).
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US expectes higher corn and soy harvests [14 January 2010] The US expects corn production to reach a record 13.2 billion bushels, up 230 million bushels from the last production year due to larger crop areas and higher yields. Despite the record harvest, prices are expected to rise to USD 3.40 - 4 per bushel, up USD 0.15 on both ends of the range. Meanwhile soybean production is also expected to reach a record 3.361 billion bushels, up 42 million bushels from last month based on higher yields. Soybean price range for 2009-10 is also projected to rise to between USD 8.90 - 10.40 per bushel, up USD 0.15 as well on both ends of the range.
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China may sell reserve grain, oils to stabilize prices [14 January 2010] China's National Development and Reform Commission announced that grain and oils would be sold from local reserves if necessary in a bid to curb sharp price rise after heavy snowfalls in some areas. The NDRC said in its announcement that the national reserves of major commodities such as grain, edible oils, meat and sugar are adequate to ensure market supply. Since the beginning of 2010, the strong snowfalls have caused traffic congestions and resulted in soaring prices of some agricultural products, especially for vegetables. Meanwhile, the NDRC requires local authorities to track the commodities prices to prepare for the release of reserves into the market.
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Thailand sells tapioca starch to China [14 January 2010] The Thai cabinet has approved a plan to sell 150,000 tonnes of cassava starch currently in government stock to China. "The deal will be made under a government-to-government basis at the price of THB 10,350 per tonne (USD 313.3),” Commerce Minister Porntiva Nakasai said. Tapioca starch in the domestic market is priced currently at THB 12,300-12,600/tonne (USD 372-381). The Commerce Ministry has often released crops in stocks at low prices so as to dispose stock and prepare inventory space for new rounds of price intervention for farm products.
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Grain movements continue lackluster trend [13 January 2010] Containerized grain shippers expect 2009's lackluster conditions to continue this yearand this may require further reductions in vessel capacity and persistent container availability. Exporters will likely have to contend with tight ocean vessel capacity and container supplies. Rates are projected by carriers to continue to go up as they attempt to reclaim revenue from the last year of low rates. Exporters are being encouraged by carriers to make advance reservations said the USDA in its weekly Grain Transport report.
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Carrefour expands in Malaysia [13 January 2010] Carrefour Malaysia will open three more hypermarkets by the end of January bringing to 22 the total number of hypermarkets it operates in West Malaysia. The three new outlets will be in the Klang Valley. They hope also to extend their presence in Kelantan and Terengganu as well as in the east Malaysian states of Sabah and Sarawak. According to Carrefour Malaysia CEO Guillaume de Colonges, Carrefour hopes to have 40 outlets in Malaysia by end 2012.
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Jubilant builds new Niacin plant in India [13 January 2010] Indian pharmaceutical firm Jubilant Organosys have started building a manufacturing plant for niacin/niacinamide (vitamin B3) and 3-cyanopyridine, which are basic ingredients for animal feed, food and pharmaceutical products. The plant will have a capacity of 10,000 tonnes/year and is expected to be operational by the end of 2010. Niacin/niacinamide is an important ingredient used in human nutrition (flour fortification, food enrichment, multi-vitamins), animal nutrition (poultry, dairy and pigs), pharmaceuticals (diabetes and cholesterol drugs) and manufacture of many life science intermediates. 3-Cyanopyridine is an intermediate for the manufacture of niacinamide.
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India’s chicken production to grow 5% in 2010 [13 January 2010] After flat growth over two years, broiler placements in India in 2010 are expected to increase by 5% from 40 million chicks/week in the previous year, according to R. Lakshmanan, Managing Director of Shanthi Poultry Farm and Chairman of the Broiler Coordinating Committee. He said although the overall meat consumption of India will be flat in the year, plunging supplies and rising prices of other meats such as beef and mutton would motivate consumers to switch to chicken. This would boost broiler production by 5% in the year, he added.
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First commercialised PCVD vaccine to be launched in China [13 January 2010] Boehringer Ingelheim Vedmedica GmbH may launch the first Porcine Circovirus Disease (PCVD) vaccine in China by February. The vaccine, Ingelvac CircoFLEX, has been approved by the Chinese regulatory authorities and contains a unique combination of purified circo-antigen with an especially designed adjuvant. It is licensed as a single shot vaccine recommended for convenient vaccination around weaning. Porcine circovirus disease (PCVD) is recognised as one of the most economically damaging pig diseases in the world. Acute infections with the Porcine Circovirus Type 2 (PCV2) compromise the immunity of the pig, leading to high mortalities, increased frequency of co-infections with other pathogens and reduced growth performance.
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Thailand mulls expanding chicken exports to neighboring nations [12 January 2010] Thailand’s Department of Livestock Development (DLD) plans to negotiate with neighboring countries in asking them to reopen their local markets to Thai raw chicken said DLD’s Director-General Preecha Somboonprasert. “Thailand has been free from the avian influenza virus for quite a long time and the OIE (World organization for Animal Health) has already accepted our bird flu-free status so Asean countries should consider revoking their bans on Thai chicken. Moreover, Asean should have really opened their market to Thai chicken this year in accordance with AFTA,” Mr Preecha said. He added Thai chicken exporters should also place their focus on Asean as a potential export destination thanks to increasing meat consumption following expanding economies. Countries with growing demand include Cambodia, Malaysia and Vietnam, he said. Thailand targets to export 400,000 tonnes of chicken worth THB 53.8 billion (USD 1.62 billion) in 2010.
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Sri Lanka cuts interest rates on farmers’ loans [12 January 2010] Sri Lanka’s Central Bank has cut lending rates on three types of loans for crop and livestock farmers to encourage fresh investments in agricultural and livestock production. The government said availability of the loans at lower interest rates would boost output of agricultural produce, milk and other livestock products. This will beef up the country’s food security and lift the livelihood and income of farmers.
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South Korea starts pork exports to Hong Kong [12 January 2010] South Korea has commenced commercial pork exports to Hong Kong. Discussions on this which started in 2008 finally came to fruition after Seoul provided Hong Kong with a list of 49 local companies that agreed to transport pork and by-products to Hong Kong. Chang Ki-yoon, head of the ministry's quarantine division, said to ensure food safety and quality, local meat processors will also have to receive oversight from the National Veterinary Research and Quarantine Service prior to the products being exported.
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VIV China to be staged in early September [12 January 2010] VNU Exhibitions Europe has announced a date change for VIV China 2010. The event will take place from September 6-8 at the New China International Exhibition Center and not later in the month as earlier announced, due to the Mid-Autumn Festival in China. Recognising industry growth and the demand for modern technology to drive this growth, the organisers began staging VIV China on an annual basis from 2009 onwards.
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Betagro to increase chicken production on growing demand [11 January 2010] Betagro Group of Thailand plans to increase its chicken production capacity by around 40% to tap into growing demand for exports in both existing and new markets namely Spain and South Africa. Senior Vice President Jakkrin Taepaisitphongse said te expansion involves an investment in a new cooked products plant worth THB 600 million (USD 18.1 million), an additional capacity of processed chicken at its joint venture Ajinomoto Betagro Frozen Foods (Thailand) to 15,000 tonnes per month from 10,000 tonnes at present and an increase in live chicken production of around 30,000 chicks per week. Betagro expects to export about 54,000 tonnes this year, up from 46,000 tonnes it shipped the previous year.
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Paragon builds biogas power generation plants [11 January 2010] Bangladesh’s poultry breeder and feedmiller Paragon Group will build the country’s biggest biogas plants for fueling power generators. The state-run Infrastructure Development Co has agreed to loand Paragon BDT 150 million (USD 2.17 million) for the project that will generate a total of 350KW from biogas fermented from chicken manure. Under the project, there will be three biogas plants in Bhaluka, Bhabanipur and Chamiadi in Gazipur and Mymensing districts. They will be installed with the latest biogas and power generation technology from China.
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India’s oil meal exports halved [11 January 2010] India’s oilmeal exports during the 2009-2010 crop year are likely to be halved to 3.5-4 milion tonnes as Asian buyers are switching to soybean meal and rapeseed meal from the US and Argentina that are offering higher quality products at cheaper prices. Indian exporters blamed stock-holding by large traders and futures trading of oil seeds for the hike in Indian oil meal prices. This curbs Indian soybean exports and suppresses crushing margins of Indian crushers. They added that Korea, Indonesia and Thailand have started buying soybean meal from South America due to a perception that it offers better quality at a lower cost.
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Japan bans poultry from Texas [11 January 2010] Japan has placed a ban on all poutry and related imports from Texas, USA following a 'weak' positive confirmation of avian flu at a live bird market. Texas is the sixth-largest poultry-producing state in the United States. According to a report, there has been no clinical illness at the market or in the flock. Additional testing is being done while the authorities continue with surveillance testing on other poultry flocks in the area.
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Vietnam pig exports to Cambodia rises sharply [8 January 2010] Vietnamese Customs Offices in the southwestern provinces said that pig exports to Cambodia has increased sharply in the past days to 1,000-1,500 heads daily, the Cong Thuong newspaper reported. The massive export of pigs to the neighboring country has caused pig prices to rise from VND 34,000-36,000/kg (USD 1.8-2.0) to VND 36,000 - 38,000/kg (USD 2-2.1). Meanwhile, pork prices have also surged in Ho Chi Minh City markets with one kilo offered at VND 42,000-46,000 (USD 2.3-2.50), up VND 4,000-5,000 (USD 0.2-2.7) from a week earlier.
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Thai egg industry to be challenged in 2010 [8 January 2010] Thai producers expect the volatile egg prices of 2009 to carry through into 2010, due mainly to an imbalance in supply and demand locally, said Manoch Chootabtim President of the Layer Farmer Association. The farm-gate price of egg is now around THB 2.20 per egg (USD 0.066) a drop from THB 2.60 (USD 0.78) earlier. Despite the government’s introduction of a five-year Egg Strategic Plan to boost per capita consumption to 200 eggs by 2012 from 160 eggs at present, local consumption remains unchanged since the implementation of the plan since 2008. High price of corn, the main raw material for layer feeds, and the challenged local economy added pressure to egg prices, said Mr Manoch.
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Rising mutton price lifts chicken price in Pakistan [8 January 2010] The high mutton price in Pakistan after the Eid-ul-Azha religious event has sent chicken prices soaring as Pakistanis are turning to chicken meat. Traders said an offering of hundreds of thousands of cattle for sacrifice late last year prompted a sharp increase in mutton prices in January. Supply shortage will continue until newly bred calves reach market weight. Mutton price in Punjab province increased from PKR 350/kg (USD 4.12) to PKR 370/kg (USD 4.36), sending chicken prices up at a similar level to PKR 150/kg (USD 1.76). An agronomist said red meat prices in Pakistan will continue to increase because prevailing droughts are limiting fodders in rain-fed areas, resulting in a dwindling cattle population.
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Bangladesh buys 30,000 tonnes of wheat [8 January 2010] Bangladesh has approved BDT 1.69 billion (USD 24.37 million) to buy 30,000 tonnes of wheat and 50,000 tonnes of urea fertiliser. Nurul Karim, Joint Secretary of the Cabinet Division said the food directorate has approved the procurement of wheat at USD 242/tonne and urea fertliser in sacks at USD 333/tonne. He said 18,000 tonnes of wheat will be shipped to Chittagong port and the remainder to Mongla port, while the procured fertilizer will be made through two shipments and delivered via the two ports.
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Dealers protest VAT on poultry feeds [8 January 2010] Suppliers of poultry feeds and feed additives in India’s northern city of Chandigarh are threatening to halt their business after the city’s administration imposed a 4% value added tax (VAT) on their goods. Effective December 2009, the administration ruled that all poultry feeds and feed additives would be subject to a 4% VAT, although they are exempted from VAT elsewhere in India. Dealers of poultry feed and supplements in Chandigarh called on the administration to remove the VAT or they would move out of the city to run their business in other cities or states.
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Sri Lanka allows 40,000 tonnes of corn imports [7 January 2010] Sri Lanka has allowed poultry feed producers to import 40,000 tonnes of corn to ease the shortage that is triggering hikes in feed, chicken and egg prices in the country. Livestock Development Minister R.M.C.B. Ratanayake said the government has issued import permits for half of this amount. Sri Lanka needs about 200,000 tonnes/year for poultry feeds. The shortage of corn has been existent since September 2009 after local stocks were depleted.Industry sources claimed that rising poultry feed price as a result of the corn shortage has pushed 40% of about 70,000 poultry farmers to give up their business, causing egg prices to reach a high of LKR 15/egg (USD 0.13).
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Philippines to get 250,000 tonnes of feed wheat until March [7 January 2010] A total of 250,000 tonnes of feed wheat is expected to begin arriving in the Philippines this month until March. The grains were contracted in November 2009 when prices went down to USD 210/tonne from USD 240/tonne. The wheat, which will come from the Ukraine and Brazil, has been slapped a 7% duty. A private trader said that despite the duty, landed cost of the grains was still only PHP 11 (USD 0.24)/kg, about the same as a kilo of yellow corn. In 2009, the Philippines brought in more than one million tonnes of feed wheat after the government allowed duty-free importation from January-June 2008. Last year, total feed production in the country dropped 26% to 5.5 million tonnes as demand fell due to inclement weather and lower livestock production.
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China imposes anti-dumping measures on food additives [7 January 2010] China's Ministry of Commerce (MOFCOM) announced this week that it is to impose temporary anti-dumping measures on food additives imported from Thailand and Indonesia. The preliminary ruling requires importers of disodium 5'-inosinate, disodium 5'-guanylate and disodium 5'-ribonucleotide to place deposits starting Tuesday, said a statement on the MOFCOM website. The statement said companies from the two countries had dumped the additives on the Chinese market and this has caused substantial damage to the domestic industry. The additives are mainly used in monosodium glutamate, soy sauce and other condiments to enhance flavor.
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Vietnam’s beef industry unaffected by AANZFTA [7 January 2010] Vietnam’s beef industry is unlikely to be affected by tariff cuts on meat imports that are expected to soar as a result of the Asean-Australia-New Zealand Free Trade Agreement or AANZFTA which came into effect on January 1, said a Vietnamese meat importer. Pham Hong Long, Director of the Import and Export Joint Stock Company No 2, said import tariffs on beef and lamb from Australia and New Zealand have been lowered by 5-10%, but that does not make their price competitive. He said the price is still high because they are premium products and specifically supplied to upscale restaurants and hotels.
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GFPT revenues up 10-15% in 2010 [6 January 2010] GFPT of Thailand, expects sale revenues in 2010 to grow around 10-15%, thanks to larger sales volume derived from selling live chicken to its new joint venture GFPT Nichirei (Thailand), said the company’s Investor Relation Manager Jutamas Ingpochai. The new joint venture has a processing capacity of 100,000 chickens/day and will commence operations around middle of this year or the second half of the year. As for performance in the past year, Ms Jutamas said it was better than expected and sale revenue is estimated at around THB 10 billion (USD 301.48 million), or a growth of around 5%. GFPT will invest around THB 400-500 million (USD 12.06-15.07 million) this year to continue to expand their broiler farm in Chonburi province and increase chicken production for the new venture.
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EU’s new rule dampens Vietnam seafood exports [6 January 2010] Vietnam’s seafood exports to the EU may hit a snag after its largest seafood importer imposed a new rule requiring a certificate of origin for every shipment of Vietnamese seafood. Effective January 2010, shipments to the EU should be accompanied by a certificate to show that fish or shrimp exported to its markets were captured in a transparent and responsible manner. Exporters said the rule may affect exporters who use wild catch or shrimp as raw material. The Ministry of Agriculture and Rural Development has pledged to develop the certificate of origin and will take this opportunity to restructure the country’s fisheries industry.
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CPF to buy pig processing plant in Russia [6 January 2010] Thailand’s Charoen Pokphand Foods Plc, or CPF, plans to purchase a pig processing plant in Russia as it sees high potential for growth there. A pig processing plant project came after the company opened a feedmill and swine breeder farm in Russia. “We are negotiating with 2-3 potential operators and expect everything to be finalised within the first quarter of 2010,” said President and CEO Adirek Sripratak. Mr Adirek said CPF is also looking for an investment in South Africa and he will be going there early this year to explore the market viability.
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India considers 100% subsidy for new poultry farm [6 January 2010] India may provide a 100% subsidy for the setting up of new poultry farms in a move to encourage farmers to transform their operations into large-scale ones, said Minister of State of Agriculture K.V. Thomas. He said the 100% subsidy is a measure towards expanding poultry farming operations and boosting the income of farmers.
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Thai broiler industry should expand overseas [5 January 2010] Thailand’s National Food Institute suggests the Thai broiler industry should look for expansion overseas as a long term strategy to maintain its competitiveness in the global market, where its main rival Brazil is developing fast to become an exporter of value-added products like Thailand. Thai broiler operators might go for integrated operations in potential destinations or secure from there raw materials for feed. The institute also forecast Thai chicken production may grow 4.17% in 2010 while exports will increase 9.1% from last year to reach 420,000 tonnes.
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Philippine feed industry output down [5 January 2010] Philippine feed production dropped in 2009 due to the combined effects of diseases and the typhoons that brought damaged to the animal production industry during the year, a report by the Philippine Star said. Based on soybean meal imports, which fell to only 1.1 million tonnes this year compared to 1.5-1.6 million tonnes in 2008, total feed production for the year was only about 5.5 million tonnes. Due in part to the zero-tariff on feed wheat during the first half of 2009, more feedmillers chose to import feed wheat and substitute this for corn. Total feed wheat import for 2009 reached 1.1 million tonnes. Of the total feed output, 60% went to the hog sector, 20% to the poultry sector, and 20% to aquaculture, other animals, and specialty feeds for fighting cocks. Feed production is expected to pick up in 2010 as the livestock and poultry industries are expecting higher demand with the coming national elections.
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Pork price dips in Vietnam [5 January 2010] Pork prices are plunging in Vietnam after large shipments of pork from China entered the country at the end of 2009. Rising supplies have caused pork prices to plunge by 10-15% in supermarkets in Ho Chi Minh City such as Citimart, Coopfood and Maximark. Live pig prices have also been affected, causing farmers to suffer a loss of about VND 100,000 (USD 5.5) for a pig sold.
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India tests dead birds in West Bengal [5 January 2010] India is expected to reveal test results of samples taken from over 2000 birds that were found dead in a remote village in West Bengal’s Burdwan district. Animal Resource Development Minister Narayan Biswas said there was no need to panic as the birds could have die from a number of other causes. District administration, however, promptly dispatched livestock officers to the village in question to study biosecurity and disease prevention measures among poultry farmers there. The village was one of the areas affected by the previous bird flu outbreak that hit West Bengal in early 2008. The outbreak incurred a loss of about INR 5 billion (USD 106.4 million).
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Thailand upbeat about trade with China [4 January 2010] Apart from the Asean Free Trade Agreement (AFTA) that came into effect on January 1, the Asean - China FTA also commenced with Thailand upbeat about prospects for trade with China. The Kasikorn Research Center indicated that Thai exports could benefit due to the increasing purchasing power of the Chinese consumers. The FTA has helped the trade value between Thailand and China in the past six years to expand at a rate of 27% per year, from USD 11.7 billion in 2003 to USD 36.3 billion in 2008. The Kasikorn Research Center added that Thai exports could gain advantage from the Chinese policy of expanding domestic consumption along with the economic recovery.
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World Bank helps Vietnam improve livestock productivity [4 January 2010] Vietnam and the World Bank will join forces to improve the overall competitiveness of Vietnam’s livestock production by addressing main constraints and risks faced by household-based livestock producers. The World Bank said in a statement that an agreement to this effect was inked last month in Hanoi between the State Bank of Vietnam and the World Bank, under which it will provide a credit of USD 65.2 million of the total USD 79.03 million for the Livestock Competitiveness and Food Safety Project. The project aims to achieve increased production efficiency of household producers through the adoption of Good Animal Husbandry Practices (GAHP). It will also reduce negative environmental impact by supporting livestock producers, markets and slaughterhouses to meet environmental standards, and improved food safety by supporting slaughterhouses and meat markets to operate at national hygienic standards.
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Import plans stymied by additional tax [4 January 2010] Philippines Customs has slapped on a 12% value-added tax on the imported eggs, fuelling an uproar among importers. The United Broilers and Raisers Association (UBRA) and the Philippine Association of Broiler Integrators (PABI) hoped to bring in 150,000 “hatching eggs” for broiler production to address a temporary shortage in chick production caused by the spate of recent destructive typhoons. This tax hurdle will make the cost of importation a burden to chicken growers, said UBRA’s Gregorio San Diego. UBRA has enlisted the help of Agriculture Undersecretary Bernie Fondevilla to appeal to the BoC and the Department of Finance to scrap the 12% VAT on top of the 5% tariff already imposed on egg imports.
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Vietnam conducts food quality inspection [4 January 2010] Vietnam's Ministry of Agriculture and Rural Development will conduct a series of inspections on food quality before the 2010 Lunar New Year with main foods including vegetable, meat, fish and fish sauce. The Department of Plant Protection will tighten management on vegetable quality, while the Department of Animal Health will manage meat quality to ensure farm produce quality before the 2010 traditional Tet festival. A large quantity of farm produce has been imported to Vietnam during the past month to make up for the shortage that resulted from the drought in the north.
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China-Asean FTA set to buoy trade [31 December 2009] The trade pact for the China-Asean Free Trade Area (CAFTA) that comes into effect this Friday is expected to accelerate bilateral trade and cut reliance on developed economies hit by weak import demand, said key officials from both sides at a press conference held by the China’s Ministry of Commerce in Beijing. Under the FTA framework, China and six Asean nations, namely Brunei, Philippines, Indonesia, Malaysia, Thailand and Singapore, will cut to zero the tariff on 90% of imported goods, or 7,000 product categories. The other four Asean members Vietnam, Cambodia, Laos and Myanmar will follow suit from 2015. China-Asean trade has outperformed that with other trade partners despite the global downturn. From January to November, the year-on-year decline in China-Asean trade was 4.3% less than the 17.5% decline in China's overall trade volume during the same period. Yet, some Indonesian enterprises have urged the government to delay the implementation, saying it would push up their unemployment rate, said Xu Ningning, Deputy Secretary-General and Chinese Secretariat at the China-Asean Business Council.
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Pig farms ordered to enhance hygiene standards [31 December 2009] Pig farmers in Perak, Malaysia have been ordered to enhance hygiene standards at their farms by March or face closure.State Public Health, Consumer Affairs and Environment Committee Chairman Datuk Dr Mah Hang Soon said the new directive follows the approval of the Control of Pig Farming (Licensing) Regulations 2009, which was passed by the Perak state executive council in October to streamline the various standards relating to health and the environment in the state's pig farming industry. There are 143 pig farmers in the state who supply 35% of Malaysia's pork demand. The production is valued at MYR 450 million (USD 128 million) a year.Dr Mah said the state government decided on the regulations after numerous complaints on environmental pollution caused by the pig farms and to safeguard the industry from collapsing due to disease.
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Betagro implements measures to prevent A(H1N1) [31 December 2009] The Betagro Group of Thailand has applied preventive safeguards at its pig farms to keep out the A(H1N1) virus. The company said its investment and sales expansion in the pork business remains on track, with no impact seen from the discovery A(H1N1) in Saraburi. betagro is proceeding with plans for an official opening early next year of its new venture with Japanese partners to process pork into ham and sausage products, mostly for export to Japan. "The Thai government and meat operators have ample experience handling bird flu in chicken over the past five years and quarantine systems for the livestock industry have been applied since," said Nopporn Vayuchote, executive vice-president of Betagro Group.
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Taiwan to re-impose restrictions on U.S. beef imports [31 December 2009] Taiwan has imposed new beef import restrictions, just two months after a bilateral agreement listed a more extensive list of U.S. beef products Taiwan that could be imported. Products banned by Taiwan now include gound beef, offal and possibly bone-in beef from any country found to have bovine spongiform encephalopathy in the past 10 years. The new rule which is likely to be voted into law on January 5, will negate the Taiwan-US bilateral agreement that was made in good faith.
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Yuhe's new breeder farm starts up today [30 December 2009] Yuhe International Inc, a leading supplier of day-old broilers in the eastern province of Shandong, China announced that it has completed the construction of a new breeder farm, bringing Yuhe's total number of breeder farms to 14. The new farm, covering an area of approximately 58 hectares, is expected to operational today. With the first batch of some 55,000 sets of parent breeders stocked on the farm, the company’s total PS capacity would be 1.205 million. There are three new breeder farms under construction, one of which is expected to start operations after mid-January 2010, with the other two to be completed by March 2010. Yuhe also plans to introduce a new hatchery with 40 sets of hatchers by February 2010. Zhentao Gao, CEO of Yuhe says these facilities will enable the company to achieve the 2010 production target of 150 million day-old broilers.
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Guangyang’s duck farm receives GAP certification [30 December 2009] Rongguang Eco-Agri Farm, a subsidiary of Fujian Guangyang Egg Industry Co Ltd, recently received the GAP accreditation for its duck farm located in Fuqing, Fujian. The farm, said to be the first with GAP certification in the province, covers an area of nearly 70 hectares and is capable of raising 100,000 ducks per year. Focusing on the duck egg production, Guangyang together with another duck egg producer Dongge in Fuqing produced 250 million duck eggs from January to November this year while exports reached more than 3000 tonnes, up 18% year-on-year.
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Shineway-Nippon Ham joint venture breaks ground [30 December 2009] Henan-based Shineway Group has started construction of its joint venture with Japanese Nippon Ham Group in Luohe, Henan province for a broiler integration project. In the first phase, according to Shineway, it will be capable of producing 300,000 tonnes of feed, raising and slaughtering 50 million broilers and turning out 120,000 tonnes of cooked meat per year. Costing CNY 1.72 billion (USD 253 million) and consisting of 40 sub-projects, the joint venture is touted as the largest of its kind in China. Chairman Wan Long expects it to achieve an annual sale of CNY 5.5 billion per year when it is operational in 2010.
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CPF to invest USD 147 million in 2010 [30 December 2009] Thailand’s Charoen Pokphand Foods Plc (CPF) plans to invest THB 5 billion (USD 147 million) in expanding its domestic and international businesses in 2010. President & CEO Adirek Sripratak said 50% will go towards expanding its food business in Thailand and the rest will be invested in its overseas operations in Russia, India and the Philippines. The investments in Thailand include expansion of CP Fresh Mart stores and Five Star roasted and fried chicken outlets as well as the establishment of retail chains for its new food products such as chicken rice and duck noodles. In the overseas business, Mr Adirek said CPF will invest in feedmilling and farming operations in Russia, India and the Philippines. The three countries have been identified as the growth area of the company.
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China's COFCO acquires Maverick Food [29 December 2009] China National Cereals, Oils and Foodstuffs Corporation (COFCO), the country's largest edible oil and food producer, announced that it has signed an agreement to take over a China-based foreign-invested food producer for CNY 194 million (USD 28.4 million). Called Maverick Food, the foreign-invested food producer was a joint venture between US-based Smithfield Foods Inc and Belgium's ARTAL Group in China since 2002. The 100% stake in Maverick Food would turn the company into a wholly-owned subsidiary of COFCO, and expand COFCO's meat industry production chain, according to COFCO. The group’s meat business currently contributes to only 2% of its annual sales of CNY 2 billion (USD 294 million).
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Greener pigs raised in eastern China [29 December 2009] A biological fermentation bed or bio-bed system, a new technology introduced by Japan and Korea to China to make pig manure biodegradable for intensive pig production, is being increasingly promoted in eastern China’s Zhejiang province. So far, some 20,000 finisher pigs have been raised with the system adopted in Xinfeng county, in the city of Jiaxing. Despite an increase of CNY 150/pig (USD 22/pig) in production cost, according to a local pig producer Fuxing Animal Husbandry Co Ltd, the technology has helped the company achieve zero-emission naturally and fetch a premium of up to 30% on pork prices compared to those produced in the traditional barn. However, some industry professionals say the system prohibits the use of disinfectants and antibiotics, leading to less protection against respiratory diseases such as PRRS. Fuxing claimed that the company has established three bio-bed pig farms and expects to get three new farms operational next year.
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Thai fishery exports forecast to rise on global economic recovery [29 December 2009] Thailand is expected to export more fishery products in 2010, thanks to the global economic recovery, according to the Thai Frozen Food Association (TFFA). Export value is forecast at USD 3.55 billion next year; or a growth of 2.2% from 2009. Shrimp will continue to contribute significantly to the total export. Processed and fresh shrimp is expected to account for as much as USD 2.3 billion; or about 65% of the total, and the US, Japan and the European Union will continue to be major market for Thai shrimp. Farm-raised white fish especially the tilapia has a strong export potential in many markets, according to TFFA.
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CPF’s shrimp wonton soup popular in the US [29 December 2009] Thailand’s Charoen Pokphand Foods Plc's (CPF) shrimp wonton soup is becoming a popular ready-meal item in the US. Its daily shipment to this market has reached two containers or about 16 tonnes in 2009, said CPF’s Executive Vice President Pisit Ohmpornnuwat. Contributing to this success, he said, is its taste and unique ingredients. Instead of using minced shrimp, it contains whole shrimp wrapped in wonton skin, bearing a luxurious item served in up-scale restaurants at an affordable price. CPF expects to export a total of 32,000 tonnes of shrimp in 2009. Due to its success in shrimp wonton soup and other shrimp-based ready meal items, its shrimp exports could grow by 50% in 2010. Exports of meats and food products contributed about 20% to CPF’s revenue in 2009 that is estimated to reach THB 160,000 (USD 4705 million).
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Bangladesh gets tough with antibiotic use [28 December 2009] Bangladesh is set to pass a new rule on the use of antibiotics such as nitrofurans and chloramphenicol in animal feeds after the EU detected the two drugs in freshwater prawn imported from the country. Bangladesh’s livestock and fisheries departments have drafted the Fish and Animal Feed Law to regulate antibiotics use in animal feeds and prevent them from entering the food chain. Rafiqul Islam, Director General of the Department of Fisheries, said the Parliament’s standing committee on fisheries has reviewed the draft and it is expected to be passed as a law soon. The detection prompted the EU to impose a ban on shrimp exports from Bangladesh. After tracing back the cause of contamination, authorities found that the drugs came from the feed and chicken manure in the water.
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Hypor forms joint venture with AgFeed [28 December 2009] Supplier of swine genetics Hypor BV has announced the completion of the joint venture with AgFeed Industries Inc, one of the largest commercial hog producers and animal nutrient companies in China. Called Hypor AgFeed Breeding Company Inc, the new company will develop, operate and market a genetic nucleus farm in Wuning, eastern China’s Jiangxi province. Hypor AgFeed Breeding is owned 85% indirectly by AgFeed and 15% by Hypor. Wuning farm will be stocked with the best pure-line animals and genetic material imported from Hypor's purebred facilities in Canada and France for cross-breeding purposes. Hypor said the farm will supply AgFeed's multiplier farms in Lushan and Ganda with genetically superior hogs that are bred to be productive and efficient, allowing AgFeed to maximize its hog production and improve feed conversions at these facilities.
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CPF domesticates new fish species [28 December 2009] After its success with “Pla Tabtim” or ruby fish, a cross-bred red tilapia, Charoen Pokphand Foods Plc has domesticated a new fish species and named it “Pla Yok” or jade fish in Thailand. Dr Sujint Thammasart, CPF’s Executive Vice President Aquaculture Research & Development, said Pla Yok originates from Africa. CPF brought the broodstock to domesticate in Thailand three years ago and has been able to breed and farm it locally. Unlike Pla Tabtim, Pla Yok is considered a premium item due to its unique taste and nutritional content, especially its high omega 3 content. Currently, CPF supplies Pla Yok to restaurants and hotels in Bangkok, but will soon be made available throughout the country once the fry and commercial production has been firmly established.
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Thai 7-11 to open more branches, distribution center [28 December 2009] CP All Plc, the operator of convenient store 7-Eleven in Thailand, will invest around THB 3.5-5 billion (USD 105.25 - 150.44 million) in 2010 to open 450 new branches and a new temperature-controlled combined distribution center (CDC). This is in addition to the existing three centers and improving its existing CDC. The company also plans to increase the portion of food products in the shop to 80% from 74% currently while maintaining the portion for other general goods at 20% from 26% at present. Now CP All has 5,123 outlets nationwide. It expects total sales to reach THB 100 billion (USD 3 billion) by the end of 2009.
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Vietnam increases import tariffs on feed raw materials [24 December 2009] Vietnam’s move to increase import tariffs on major feed raw materials will raise feed and meat prices in the country. Vietnam Animal Feed Association said the government will increase import tariffs for fishmeal and corn from zero to 5% and wheat from 10% to 15% in January 2010. A 5% increase in the tariff for corn means that corn price will increase from around USD 240/tonne to USD 252/tonne. Considering the corn price hike alone, the feed cost for producing one kilo of live chicken will increase by VND 110/kg (USD 0.006/kg). With feed prices in Vietnam ranging from VND 7200-7400/kg (USD 0.39-0.4), rising import tariffs for these raw materials will further raise the meat prices in the country in 2010.
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China targets higher grain output [24 December 2009] According to the Ministry of Agriculture (MOA), China's grain output in 2009 is expected to reach 500 million tonnes for the third consecutive year. Contributing to the growth is the increase in grain planting area, which was expected to grow 2.27 million hectares this year, also the biggest rise since 2006, said the Planting Industry Management Department of MOA. The growth was achieved under various difficulties including market fluctuations on farm produce, global financial crisis, unprecedented droughts and frequent plant diseases and pest infestations, said the head of the department.
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USD 15-M tuna cannery to rise up in Philippines [24 December 2009] Filipino owned RD Corp will build a USD 15-million new tuna canning plant in General Santos City for its canned tuna export business said RD Group Chairman Rodrigo Rivera Sr. Construction on the new plant, the company's seventh cannery in the city, is slated to begin in the first quarter of 2010. The new cannery will increase the company's daily production from 140 tonnes to 200 tonnes, and will generate an additional 1200-1500 new jobs. RD Corp is the Philippines' biggest exporter of canned tuna, shipping out 380 million tonnes annually. The company also has operations in Indonesia and Papua New Guinea, with capacities of 80 tonnes and 200 tonnes, respectively.
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US beef gains market share in South Korea [24 December 2009] US beef has achieved a 25% market share in South Korea, up from 15% in 2008. According to the U.S. Meat Export Federation (USMEF), the improved situation is due to the better economic situation as well and more intensive marketing efforts have enhanced prospects for U.S. beef in South Korea, U.S. Meat Export Federation CEO Phil Seng said after a recent visit overseas. USMEF made inroads into the retail market last eyar and is now seeing better performance in the food service sector as well.
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SKM builds new feedmill [23 December 2009] Indian feedmiller SKM Animal Feeds and Foods (India) Ltd will build a new feedmill in the southern state of Karnataka to support its market expansion. Managing Director Dr M. Chandrasekar said the company has bought the land for the plant and the project has started. It is expected to be operational in September 2010 and will have a capacity of 10,000 tonne/month and produce dairy and poultry feeds. SKM currently operates four feed plants located on the same site in Erode district of Tamil Nadu state. Its production in 2009 averaged 35,000 tonnes/month.
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Thai committee appoves tax cut for sbm imports [23 December 2009] The Thai government’s Food Policy Committee overseeing animal food stuffs has agreed to a cut in the import tariff on soybean meal under WTO’s tariff-rate quota (TRQ) to 2% from 4% previously for another year. Feed industry participants earlier criticized that the delay in the import policy might have triggered higher production cost. The tax reduction will result in a decline of feed price by THB 0.25- 1.62 (USD 0.008-USD 0.049) per one 50kg-bag. Production cost of live pig will decline by 15.37% from its 2008 level and broiler and layer cost will decrease by 3.67% and 2.88% respectively from 2008, said Commerce Minister Porntiwa Nakasai.
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DA bans poultry from France [23 December 2009] The Philippines has placed a temporary ban on imports of poultry and birds and their products from France after the Office Internationale des Epizooties confirmed an outbreak of a “low pathogenic avian influenza” in Saint Aubin du Plain. Department of Agriculture (DA) Secretary Arthur Yap said that the ban is necessary to protect human health and the poultry industry in the Philippines, which continues to be AI-free. The current ban calls for the immediate suspension of the processing, evaluation of the application and issuance of Veterinary Import Clearances to all imports covering these products from the banned area, as well as the halt and confiscation of all shipments of live birds, poultry and poultry product entering the country from France.
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China-Taiwan talks to boost free trade pact [23 December 2009] The fourth meeting to boost trade between mainland China and Taiwan kicked off this week in Taichung, Taiwan. Focusing on an Economic Co-operation Framework Agreement (ECFA), the meeting is expected to ink four agreements concerning fishing crew cooperation, farm produce quarantine inspection, avoidance of double taxation and industrial product standards, inspection and certification. The Ma Ying-jeou administration has said that the signing of an ECFA with mainland China was urgently needed because a free-trade agreement between China and ASEAN will take effect next year, and Taiwan hopes the pact will pave the way for the signing of more free-trade agreements with other countries.
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Bunge builds soybean crushing plant in Vietnam [22 December 2009] Bunge Vietnam, a subsidiary of US agricultural company Bunge Ltd, has started building an integrated soybean processing plant in Vietnam worth USD 100 million with production expected to start in 2011. It will have a crushing capacity of 3000 tonne/day in the first phase and is located about 70km southeast of Ho Chi Minh City in an area with significant feedmilling oil refining operations. Christopher White, CEO of Bunge Asia said Vietnam offers Bunge good growth opportunities. Despite the global economic downturn, Vietnam’s demand for vegetable oil for consumers and protein for livestock continue to grow at double-digit annual rates.
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JBS looks for options in Asia [22 December 2009] JBS SA, the world’s biggest beef producer is looking to acquire interests in Asia and Europe to process and distribute meat in a bid to cut the cost of selling its products worldwide. This is part of the company’s five-year expansion plan. JBS currently controls more than 10% of the world’s beef market after about 30 acquisitions since 1993, including Swift & Co. in 2007, Smithfield Foods Inc.’s beef business last year and Pilgrim’s Pride Corp. in September.
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Dayong to build new food park [22 December 2009] China's Dayong Group, one of the top 50 meat processors in central China’s Henan province has set aside CNY 2 billion (USD 294 million) for a food park in Qixian, some 100km east of the capital city Zhengzhou. The food park, touted as a local industrialization project, will be capable of housing some 1 million broiler PS, together with a hatchery with an annual capacity of 100 million DOC, 40 commercial contract farms each having a stock of 3 million birds, a 600,000 tonne/year feedmill and a slaughterhouse that handles 12,000 bird/hour.
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Weak demand dampens price rise for pork, chicken [22 December 2009] Weak demand has kept prices of pork and chicken in the Philippines from rising too much in the first two weeks of December, which traditionally is a season of high prices in the country. A report by the Philippine Star said that industry officials have confirmed that demand for the commodities remain relatively low for the season. Albert Lim of the newly-formed Pork Producers Association of the Philippines and Gregorio San Diego of the United Broiler Raisers Association are both hoping that demand will finally pick up this Christmas week and into the New Year. Prices of live hogs is currently at PHP 112-116/kg (USD 2.39-2.48) while retail prices hovers between PHP 130-180/kg (USD 2.78-3.86). Farm prices of chicken is currently at PHP 94-95/kg (USD 2.01-2.03) with retail prices at PHP 130-145/kg (USD 2.78-3.11). There is some good news for the poultry industry as the high price of pork has led some consumers to shift to chicken.
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Baodi quickens downstream expansion in north and central China [21 December 2009] Chinese pork integrator Baodi Agri & Tech (Group) Co Ltd broke ground for a CNY 1.5 billion (USD 220 million) food park in the northern city of Tianjin. Sited on a plot of more than 30 hectares, the park will be a duplicate of its new operation in Huaibei in the eastern province of Anhui, consisting of a 2-million-pigs/year slaughterhouse, a 50-million-broiler slaughterhouse, a 30,000-tonne/year cooked meat processing plant and a pig blood processing plant that handles 100,000 tonnes per year. Another food park under construction in Anlu in the central province of Hubei includes a GP farm besides primary and further processing units. The two projects are scheduled to be operational in 2010 and upon completion, the company aims to trigger export of blood plasma to overseas markets, mainly in Southeast Asia.
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India to build 10 food parks [21 December 2009] India has approved 10 out of 30 mega food park projects that the country is planning to establish to facilitate meat processing and trade. Food Processing Industry Minister Subodh Kant Sahai said infrastructure would be developed on a pre-identified cluster basis with a strong backward and forward linkage to provide value addition of agricultural commodities including poultry, meat, dairy, fisheries and others. He said financial assistance has been increased to INR 500 million (USD 11.1 million) or 50-75% of the project cost depending on locations. So far, he said, initial approval has been given for 10 mega food park projects in Andhra Pradesh, Assam, Jharkhand, Karnataka, Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal.
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Yukou Poultry speeds up expansion [21 December 2009] Beijing-based Yukou Poultry Co Ltd, a subsidiary of the Capital Agriculture Group, has turned out 100 million day old chicks of the newly developed breeds 'Jinghong No.1' and 'Jingfen No.1' until mid-December. Since its launch in April this year, Yukou has distributed 7 million packages of parent stock (one rooster and 40 hens) of the new breeds, an equivalent of 30% market share in China, claimed Mr Hao Sun, Chairman and President of Yukou Poultry. The company has good production sites and plans to establish six new bases up to 2012. By then, Yukou will reach annual sales of 11 million PS and 176 million day old layers.
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Bird flu resurfaces in Vietnam [21 December 2009] The bird flu has resurfaced in Vietnam’s northern province of Thai Nguyen, killing 405 poultry, reported the Animal Health Department. The disease broke out in the province’s two communes last week, prompting animal health authorities to cull nearly 5000 ducks and chickens, and destroy 18,000 eggs in the affected areas. Besides Thai Nguyen, the bird flu has also hit the southern province of Ca Mau in the Mekong Delta.
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A(H1N1) discovered in Thai pig [21 December 2009] A pig in a farm at Kasetsat University’s Tub Kwang Research Station in Saraburii province, around 100 km north of Bangkok, was reported to have contracted the A(H1N1) virus from a student. Although the pig has fully recovered, all pigs on the farms have been confined and are being monitored closely. More than 130 farm workers and local residents have been placed under medical observation for seven days. No one has fallen ill so far, confirmed Paichit Varachit, Permanent Secretary for Public Health. There were no reports of pig to human transmission so far, said Dr Paichit, adding that cooked pork is safe for consumption.
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Hainan is China's first disease-free province [18 December 2009] The Ministry of Agriculture (MOA) has announced that the southernmost province of Hainan has been declared the country’s first Specific Animal Epidemic-Free Zone (SAEFZ) after an 11-day on-site national examination and evaluation by a panel of experts. The island, touted as a national demonstration for SAEFZ since 1999, has in the past years invested more than CNY 200 million (USD 29.4 million) to forge six systems like veterinary service, animal epidemic prevention, prevention and supervision, epidemic surveillance, preventive shield, and laws and regulations, to achieve this status. The SAEFZ refers to a specific area free of specific animal epidemic diseases in a certain period.
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Singapore funds farm technology research [18 December 2009] Singapore's Agri-Food & Veterinary Authority (AVA) will set aside SGD 5 million (USD 3.56 million) for a food fund to research farming technologies and upgrade existing farms. According to Minister for National Development Mah Bow Tan the annual fund is part of Singapore’s effort to better buffer itself against food shortages in the long term. It will focus on efforts that strengthen Singapore’s supply of rice, chicken, pork, fish, eggs and leafy vegetables. It will also co-fund feasibility studies on investments in overseas food zones, overseas contract farming and sourcing from non-traditional sources.
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China works closely with New Zealand on food safety [18 December 2009] Chinese senior food safety officials have taken part in a two-week food safety study program with the New Zealand Food Safety Authority (NZFSA) to discuss and further understand New Zealand’s related food regulatory system. The delegation visited seafood, meat and dairy businesses and farms to see how food safety standards are applied there. NZFSA Senior Deputy Director Bill Jolly said the visit has been a great example of how China and New Zealand have worked closely on food safety since the Free Trade Agreement signed in 2008. He added that NZFSA will continue to work with the Chinese authorities on their implementation of the NZFSA-developed electronic certification (E-cert) system for managing secure assurances on foods exported from New Zealand to China. This may expand into China adapting E-cert for use in its own food control systems.
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Taiwan’s policy on agri imports unchanged [18 December 2009] Taiwan's Council of Agriculture (COA) has clarified a media report that blamed the government of covertly opening its doors wider to the Mainland’s agricultural goods by importing corn, saying the corn purchases were made to meet supply shortages. The Ma Ying-jeou administration announced that it will not open any further to Mainland’s agricultural products in a proposed economic cooperation framework agreement (ECFA), a pledge that has been criticized by industry insiders on the island. According to COA, Taiwan imports 99% of the feed corn consumed domestically, mostly from the United States and Brazil.
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US funds influenza research in Vietnam [18 December 2009] The US government allocated USD 100,000 for research on transmission of influenza viruses from animals to humans in Vietnam. Under the program, physicians and epidemiologists from the US Centers for Disease Control and Prevention (CDC) and Vietnam’s health and agricultural ministries will help local health workers to identify those infected with the H1N1 influenza virus in 2009 who lived close to pigs and poultry. Samples from the people and animals will be collected for laboratory analysis, the results of which will help scientists determine the human and animal groups at risk of transmission. This Animal-Human Interface initiative is part of CDC’s Influenza Program in which CDC professionals have been working with Vietnamese partners for the last several years.
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Godrej Tyson launches two new products [17 December 2009] Godrej Tyson Foods Ltd, a joint-venture between US-based Tyson Foods and India’s Godrej Agrovet, recently launched two new products in India: 'Curry Cut' chilled chicken and 'Tandoori Chicken Nuggets'. Curry Cut is packaged, chilled chicken cuts sold under its Real Good Chicken brand. It is chicken cuts with the size suitable for curries. A pack of Curry Cut contains 22-24 pieces. Tandoori Chicken Nugget is ready-to-cook, partially fried chicken nuggets with tandoori flavour. It is sold under Godrej Tyson’s Yummiez brand.
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Nelna Farm expands processing line [17 December 2009] Sri Lanka’s broiler integrator Nelna Farm (Pvt) Ltd will expand its processing plant outside capital Colombo with a plan to gradually increase the capacity to 40,000 birds/day. Managing Director W.G.E.G. Nanayakkara said the new line will be supplied by Meyn of the Netherlands and the installation will begin some time in 2010. Nelna Farm produces the birds through its 1200 contract growers. The company supplies them with DOC from its breeder farm which has five batches of 7,500 breeders each.
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Singapore targets for growth in fish farming [17 December 2009] Singapore's Agri-Food & Veterinary Authority (AVA) is to invest in aquaculture and agriculture to improve technology and research and improve food availability. Over the next five years the AVA wants to raise fish production from 4% to 15%. Singapore's largest commercial fish farm, the 18-month-old Barramundi Asia, is considering applying for a loan to improve its aquaculture technology and increase its annual production of barramundi - or Asian sea bass - to 3,000 tonnes by 2012, and 20,000 tonnes by 2020.
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Tesco to open more town-center malls [17 December 2009] Ek-Chai Distribution System Co Ltd, the operator of Tesco hypermarkets in Thailand, hopes to open more Plus Shopping Mall after the great success of the two branches in Bangkok and Chonburi in capturing B+ customers. Key ti its success was the positioning of the malls as a kind of town center; a place for shopping, eating and entertainment, said Senior Vice President Veena Arunyakasem. The Plus Shopping Mall model involves a hypermarket, food court and entertainment center. Initially, Tesco had intended to open two to three Plus Shopping Mall models per year.
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World Bank finances food safety project in Vietnam [16 December 2009] The World Bank has agreed to lend USD 65.3 million to help Vietnam improve food safety through its Livestock Competitiveness and Food Safety Project. Under the agreement, signed in December 2009 between the World Bank and the State Bank of Vietnam, the money will be spent on improving competitiveness of Vietnam’s livestock industry, mainly in the meat supply chain. Costing a total of USD 79 million, the project also aims to increase efficiency of small-scale farms through adoption of Good Animal Husbandry Practices.
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Thai livestock sector forecast to grow 2.2-2.3% [16 December 2009] The GDP for Thailand’s livestock sector is forecast to grow 2.2-2.3% in 2010, according to a recent prediction by the Office of Agricultural Economics. Factors for the growth include favorable prices in 2009 that encouraged expansion of chicken and pork production, the recovery of the global economy and the government’s supporting policies such as the appliance of e-traceability systems, compartmentalization of poultry farms and zoning for FDM-free pork production. Broiler production is forecast to reach 900.16 million birds in 2010, up from 890.67 million birds in 2009.
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India plans a massive food subsidy [16 December 2009] India is planning to increase its subsidy for some food items for the poor as rising food prices due to a weak monsoon in 2009 has driven up inflation to a record high. November’s wholesale price index rose 4.78% from the previous year, due mainly to the price hike of food items including poultry meat and eggs that soared 10% and 8% respectively. In response, the Finance Ministry is seeking approval from Parliament to spend an additional USD 741.7 million to subsidise some food items for the poor.
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Philippines bans poultry from Germany [16 December 2009] The Philippines has placed a temporary ban on imports of poultry and birds and their products from Germany after the Office Internationale des Epizooties confirmed an outbreak of a “low pathogenic avian influenza” at a farm in Thuringen. The ban includes imports of domestic and wild birds, including poultry meat, day old chicks, eggs and semen, as well as calls for the immediate suspension of the processing, evaluation of application and issuance of Veterinary Import Clearances to all imports covering these products from Germany.
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Vietnam’s imports more raw material from Argentina [15 December 2009] Vietnam’s soybean meal and animal protein meal imports from Argentina jumped both in quantity and value during January to October, reflecting rapid expansion of the country’s feed industry. Sbm imports from Argentina during the period soared 155% in quantity to 932,678 tonnes and 235% in value to USD 347.4 million tonnes. Animal protein meal imports from Argentina during the period surged 49% in quantity to 70,051 tonnes and 19% in value to USD 44.7 million. Over half of this amount was beef powder. Its import increased 75% in quantity to 49,028 tonnes and 103% in value to USD 20.3 million. Other meal imports in the period included 9,389 tonnes of chicken powder valued at USD 4.9 million and 2190 tonnes of cow by-products valued at USD 3.5 million.
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Kerala opens layer PS farm [15 December 2009] India’s southern state of Kerala has opened a layer breeding farm that will produce 300,000 layer chicks/year for local farmers. Built by the Kerala State Poultry Department Cooperation, the farm is located in Thrissur district and has 3000 female and 500 male layer PS, which will produce 300,000 layer DOC/year. The chicks will be distributed to local farmers that could generate 60 million eggs/year worth INR 200 million (USD 4.6 milion).
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Thai food exports may weaken [15 December 2009] The depreciation of Vietnam’s currency by 5% may affect exports of some Thai food products as Vietnam will become more competitive in terms of price, said Acting Director of the National Food Institute of Thailand, Amorn Ngammongkolrat. Thai products that would be hardest hit from the movement include seafood such as shrimp and surimi, rice, tapioca and instant noodles. Thai canned tuna may still maintain its competitiveness, but Vietnam has been showing strong growth in exports of this product recently.
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US, China reviewing terms of pork trade [15 December 2009] The US and China are still negotiating on terms of pork exports from the US to China although Chinese officials declared last week that it has lifted the embargo on pork imports. A USDA official said both parties are reviewing "lingering issues" in order to resume pork trade. China offers good potential to the US and its export last year were valued at USD 560 million boosted largely by demand during the Beijing Olympics. China imposed a ban on US pork in May following a H1N1 outbreak.
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Zhongpin announces early completion of pork plant [14 December 2009] China's Zhongpin Inc has set January 20 as the commencement date for production at its new chilled and frozen pork plant in Tianjin following eary completion of the fcaility. When al phases of construction are completed at the end of 2010, the plant will have an annual capacity of 100,000 metric tons for chilled and frozen pork.According to Xianfu Zhu, Chairman and CEO of Zhongpin, the early completion will help satisfy the nation's surging demand for chilled and frozen pork during the peak season of the Chinese New Year and Spring Festival in February.
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Swift Foods to cut debt by half [14 December 2009] Swift Foods Inc, the poultry unit of food and beverage conglomerate RFM Corp, expects to cut its debt by half by end 2009 to just PHP 600 million (USD 12.99 million), and targets to bring it down further to PHP 300 million (USD 6.49 million) next year. Swift President Bernardo Concepcion revealed that the reduction in debt, which is mostly owed to suppliers, will be made through the sale of non-performing assets, streamlining of operations and employee downsizing. Although the company is expected to do well in the last quarter of 2009, Mr Concepcion said that it will still post a loss this year. However, the outlook for the poultry sector is good next year, as consumer spending is expected to go up with the coming national elections, and Swift is taking advantage of the expected rise in demand by setting aside PHP 40 million (USD 865,800) for two facilities that can house a total 40,000 chickens.
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Growth in Japanese beef consumption [14 December 2009] Japan's beef consumption rose 17% in October to 80,838 tonnes compared to last year. The growth was attributed to the increased imports (up 33% on 2008). Apart from the imports, some meat that was held in stock was also released as Japan prepared for the high meat consumption season (October to December). Imported beef consumption surged 27% from 12 months ago to 48,571 tonnes,the highest volume since December 2003.
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Lower demand pulls down meat processing industry [11 December 2009] The Philippine meat processing industry expects its 2009 production volume to drop by 20% from 2008. However, Francisco Buencamino, Executive Director of the Philippine Association of Meat Processors Inc (PAMPI) said that while volume is down, higher prices will still mean a growth in sales, albeit a small one at less that 10%. PAMPI had earlier aimed for an 8-10% increase in sales this year, but Mr Buencamino said that “lower purchasing power of Filipinos” has dampened demand which led to lower volumes. He also said that the industry's imports of meat raw materials dropped by as much as 28%. Meanwhile, sales of Christmas hams is also seen to slow down this year, as Filipinos tighten their belts. CDO Foodsphere Inc President Jerome Ong said that unlike in previous years, when sales of Christmas hams posted double-digit growths, this year, they are expecting ham sales to increase moderately at about 8-10%.
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Rising corn exports may affect chicken prices [11 December 2009] Increase in corn exports will affect the chicken industry as production costs will rise on shortage of the raw material, said Chaweewan Kampa, President of the Poultry Promotion Association Of Thailand. Thailand has already exported 600,000 tonnes of corn during the first 10 months of this year, compared with around 340,000 tonnes exported the whole year last year; and exports are estimated to reach more than 1 million tonnes for the entire year in 2009, as demand in the global market escalates in the wake of crop damage in the US. As a consequence of higher exports, domestic corn price rose and chicken production cost will soar, Ms Chaweewan said, urging the government to look into the issue to prevent over-exports.
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CPI aims for higher ’09 sales [11 December 2009] PT Charoen Pokphand Indonesia Tbk (CPI) is targeting to achieve sales of IDR 13.1 trillion (USD 1,380 million) for 2009 due to higher utilization and sales volume. According to President Director Thomas Effendy, this represents a growth of 5%. He said that in the first three quarters of 2009, the sale of both DOC and feed rose in value particularly due to the soaring price that followed the market fluctuation trend. The price hike currently has exceeded 10%, he said. The company booked IDR6.72 trillion (USD 712 million) net sales in Q1 with IDR 631.44 billion (USD 66.9 million) net profit.
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Vietnam buys live cattle from Australia [11 December 2009] Vietnam has bought 1000 heads of beef cattle from Australia’s Northern Territory worth ASD 1 million (USD 0.905 million) recently. Khanh Hoa Trading and Investment Co, a state-owned firm in Khanh Hoa province, bought the cows from the North Australian Cattle Co. Once delivered, the cows will be sent to the firm’s feedlot in Nha Trang that can hold up to 15,000 cows.The size of the feedlot hints that more live cows, either from overseas or domestic suppliers, would be held for fattening.
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Thai chicken exports drop as China returns [10 December 2009] Exports of chicken from Thailand during the first 10 months of 2009 has fallen slightly by around 1% from the same period last year to total 324,833 tonnes after major buyer Japan returned to secure chicken product from China after concerns on the food safety issue eased, according to the Manager of the Thai Broiler Processing Exporters Association Kukrit Arepagron. Exports in 2009 is forecast at 394,000 tonnes worth THB 52.45 billion (USD 1.58 billion), close to last year’s performance. Exports in 2010 are seen steady at 390,000-400,000 tonnes and value at THB53.13 billion (USD 1.60 billion).
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Australian wagyu available in Thailand [10 December 2009] Australian Agricultural Company, Australia’s largest cattle farm, has launched Australian-produced wagyu beef in Thailand. Launched under its brand 'Kobe Cuisine', the wagyu beef is supplied by some of the company’s 25 cattle farms with more than 550,000 cows. According to Alastair Ronald, Marketing Manager of Australian Agricultural Company, its supply comes from only one supplier. With a complete supply chain from rearing cows to slaughtering, cutting and packing. He said the company can supply Kobe Wagyu beef with consistency in quality and quantity.
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China vows to promote agriculture development in 2010 [10 December 2009] The Chinese government will enhance efforts in 2010 to promote agriculture development, strengthen produce supply to the market, and expand rural demand, said a statement of the Central Economic Work Conference held this week in Beijing. Measures would be enacted to improve agricultural production capacity, and quicken steps to develop modern agriculture. The government would maintain relatively stable prices of produce next year, and increase the minimum purchase prices for major grain crops.
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Asia to continue leading global recovery [10 December 2009] Asian economies particularly China and India will grow faster than expected through 2010, far outpacing recoveries in the West, thanks to aggressive government stimulus spending and a pickup in global trade, said the International Monetary Fund (IMF). However, the region's rapid expansion will remain below the levels seen in the decade before the economic crisis as its economies are still tied to the rest of the world. Growth in Asia including Japan, Australia and New Zealand is likely to be 5.8% in 2010 from 2.8% in 2009, well below the 6.8% average over the past decade. IMF forecasts that China will lead the region, expanding 8.5% in 2009 and 9% in 2010. Bloomberg reported that India's gross domestic product will gain 5.4% and 6.5% respectively.
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China bans import and export of ractopamine [9 December 2009] The Ministry of Commerce and General Administration of Customs in China has imposed a ban on the import and export of ractopamine and ractopamine hydrochloride, effective today. An official with the Foreign Trade Division under the Ministry of Commerce, said ractopamine and ractopamine hydrochloride had no other major uses apart from the application in feed additives. The ban is aimed at reducing possible health risks. Ractopamine and ractopamine hydrochloride, known as beta agonist, are used as feed additives to promote leanness in pigs raised for their meat.
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Philippine corn output seen to rise despite typhoons [9 December 2009] The Philippines expect a 1.63% growth in corn production for 2009 despite its battles with typhoons and other adverse weather this year. The Bureau of Agricultural Statistics (BAS) projected that corn output would reach over 7 million tonnes this year. It earlier reported that the country's corn production for the first half of 2008 only reached 3.22 million tonnes, down 2.27% from the yearago level, but the Agriculture Department projects that corn production in the second half would rise by 5.16% to 3.82 million tonnes, boosted by the expansion of harvest areas and the improvement in per-hectare yields. Harvest areas grew by 3.1% from 921,000 hectares to 949,000 hectares in the third quarter of the year, while per-hectare yield rose 2.01% from 2.45 tonnes to 2.5 tonnes. Agriculture officials also noted that the adjustment in the support price for corn encouraged local farmers to plant more.
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Vietnam buys live cattle from Australia [9 December 2009] Vietnam's Khanh Hoa Trading and Investment Co, a state-owned firm in Khanh Hoa province has bought 1000 heads of beef cattle from Australia’s Northern Territory worth ASD 1 million (USD 0.905 million) recently. Once delivered, the cows will be sent to the firm’s feedlot in Nha Trang that can hold up to 15,000 cows. The size of the feedlot hints that more live cows, either from overseas or domestic suppliers, would be held for fattening.
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New vitamin C facility in Northeast China [9 December 2009] China Zenith Chemical Group Ltd has signed a Memorandum of Understanding (MOU) for a 25,000 tonne/year vitamin C production facility with Heihe Border Economic Cooperative District in the city of Heihe, northeastern China’s Heilongjiang province. According to the MOU, China Zenith will invest a total of USD 157 million. China Zenith, the Hong Kong-listed group is a leading coal-based chemical and biochemical raw materials manufacturer and supplier. Its wholly owned subsidiary Mudanjiang Gaoke Biochem Co Ltd in Heilongjiang province operates a corn processing plant capable of processing 300,000 tonnes of corn into products like starch, glucose, xanthan gum and vitamin C.
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