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Yum! to invest USD120m in India
[03 February 2012] Yum! Restaurants India, which operates Pizza Hut, KFC and Taco Bell restaurants in India plans to invest USD 100-120 million by 2015 to increase its presence and boost their business in the country. By then, it aims to increase its KFC stores to over 500, Taco Bell 100 and Pizza Hut 400. Niren Chaudhary, Managing Director of Yum! Indian Subcontinent, said along with store expansion, Yum! would also introduce new products specifically for Indian customers.
| 10% growth for Thai RTE sector
[03 February 2012] Thailand’s frozen ready-to-eat meals sector is likely to expand by 10% over the next five years. Vuthichai Rattanasumawong, Managing Director at General Mills International (Thailand) Co, said that there’s high potential for frozen ready meals in Thailand as currently only 16% of Thai consumers are enjoying it. Lifestyle of urban residents will also pave the way for the growth of the sector. Currently Thailand’s frozen ready-to-eat food industry is worth around THB 3 billion (USD 97 million). The company, which produces frozen Chinese foods, aims to gain market share of 15% by the end of next year, from 5% at present.
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| Indonesia relents with Aussie-NZ FTA
[03 February 2012] Indonesia recently became the last member to fully implement the Asean-Australia-New Zealand Free Trade Agreement which would help local producers propel themselves to a larger playing field as the country receives benefits from lower tariffs on various products covered by the agreement. Indonesia will slash 90% of 10,000 tariff categories including those for live animals, fruit, vegetables, meat, fish, milk, cheese, eggs, pharmaceuticals, and wood and paper products. Tariffs on goods on sensitive lists, such as beef and dairy products, will be removed by 2020 to give local producers more time to prepare. The Indonesian Cattle and Water Buffalo Breeders Association Secretary General Rochadi Tawaf said that local breeders were still unhappy as a zero tariff on milk, for example, would prompt milk processing plants to buy imported milk, which would be cheaper than local milk which does not receive government incentives.
| Metro opens fish warehouse in South Vietnam
[03 February 2012] Global wholesaler Metro Cash& Carry has opened a fish entrepôt or warehouse in Vietnam's southern city of Canto in the Mekong Delta as a hub for sourcing and distributing fish and seafood across the country. Products from the entrepôt will be distributed to its 15 wholesale centres and retail stores, and further delivered to its institutional customers. Metro's fish entrepôt is the first facility of its kind in Vietnam. It consists of a processing area, cold storage, and classification and by-product chambers. The infrastructure is part of a public-private project entitled 'Establishing high-quality fish supply chain for Vietnam domestic market', jointly implemented by Metro Cash & Carry Vietnam, Vietnam Challenge Fund (VCF), Cargill Vietnam, Fresh Studio Innovation Asia, and Ministry of Agriculture and Rural Development.
| Australian beef exports forecasts to rise 2.7%
[03 February 2012] Meat and Livestock Australia Ltd forecast a 2.7% increase in Australian beef exports for this year from the previous calendar year to a record 975,000 boneless tonnes. The MLA, which sees the US, Russia and Asia as its fastest growing beef export markets in 2012, predicts a growing demand in developing markets and a shortage of beef in key exporting nations which will push global beef prices higher. A US consultant predicts that the country will produce 4% less beef this year due to less cattle and lower weights.
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| India to increase export duty on deoiled rice bran
[02 February 2012] India plans to increase export duty on deoiled rice bran to deter export and increase its availability for the local feed industry. The Department of Animal Husbrandry proposed that the Ministry of Agriculture increase the export duty. Currently, India imposes a 10% duty on deoiled rice bran exports. The country is expected to export 170,000 tonnes of deoiled rice bran in 2011-12, out of the estimated production of 8-8.5 million tonnes in the year.
| Asian nations ban Australian poultry imports
[02 February 2012] Japan has banned imports from all parts of Australian after the south-eastern state of Victoria reported an outbreak of bird flu. Singapore, Vietnam, Indonesia and Hong Kong, meanwhile, have temporarily banned poultry imports from Victoria. Some 24,000 free-range ducks on farms in New Gisborne and Mickleham, northwest of Melbourne were destroyed after testing positive to a strain of the virus. Victorian Deputy Premier Peter Ryan said he does not think the outbreak will have a long-lasting effect for the state’s poultry industry.
| Starbucks to launch in India with Tata
[02 February 2012] Starbucks aims to open 50 outlets by end 2012 via a joint venture with Tata Global Beverages. The new entity, called Tata Starbucks Ltd, will invest 4 billion rupees (USD 80 million) with its first outlet to open in either Mumbai or New Delhi by September. Interestingly the 50-50 joint venture comes despite recent changes allowing 100% foreign ownership of single brand retail stores. Interestingly also the Starbucks Indian coffee shops are co-branded outlets with the strap line 'Starbucks, a Tata alliance'.
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| Understanding nutrient value key to controlling feed cost
[02 February 2012] Understanding the nutrient value of all ingredients in more detail is key to controlling feed cost, Dr Paul D. Matzat, PIC Director of Nutrition and Marketing said at the PIC Technical Forum 2012 held in Manila early this week, adding that technologies are available to evaluate feed ingredients. He also noted that it is important to set realistic expectations and to set intervention points. He underscored how critical having a healthy herd is, to manage feed/gain expectations. Also making a presentation during the forum was Dr Regalado Zamora, PIC Philippines’ Technical Consultant, who spoke on the use of alternative feed ingredients for pig diets. PIC is celebrating its 50th anniversary this year.
| Cargill sees double digit growth in 2012
[02 February 2012] Cargill Philippines expects double-digit growth in 2012 as its exports of coconut oil and its feed sales are both seen to rise this year. In a report by BusinessWorld, Cargill Country Representative Philip Soliven said that the company is looking at a 10-20% growth for the entire year, which would be 'driven by improvements in the animal feed business'. He said the Philippines has been a 'successful geography’ for Cargill, but ruled out company expansion this year. Instead, the company will grow its existing businesses, being particularly bullish in Mindanao. Cargill processes its coconut oil in General Santos City and manufactures animal feeds in Cagayan de Oro City, both in Mindanao.
| Vietnam to focus on Asia for shrimp exports
[01 February 2012] Vietnam will boost shrimp exports to Asia in 2012 as demand for seafood is forecast to increase in the region, according to Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers. He said although demand for shrimp is expected to decline in the EU and US markets, China, Japan and Korea are emerging as promising markets in the year. Vietnam exports seafood to 91 countries with shrimp being the biggest earner, earning USD 2.4 billion in 2011, up 13.7% year-on-year. In 2012, the Ministry of Agriculture targets to earn USD 6.5 million from seafood exports, of which USD 2.5 billion will come from shrimp exports.
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| Dubai's halal fast food chain moves to north India
[01 February 2012] Dubai-based halal fast food chain 'ChicKing' has opened its first outlet in north India. Located in Delhi's Rajouri Garden, the new outlet serves a range of fast food items from chicken to fish and other seafood. A.K. Mansoor, CEO of Al Bayan Group, which operates ChicKing, said the company plans to open 100 outlets in India by 2015. It currently operates 25 outlets, all in south India.
| Indonesia to dominate Australian beef exports
[01 February 2012] Meat and Livestock Australia Ltd says that its outlook for the live cattle trade in 2012 continues to be dominated by prospects to Indonesia, although total exports currently is forecast to decrease 16% . Last week Indonesian Agricultural Minister Suswono Arsyaf said that the government has started reducing live cattle imports as the domestic supply has been sufficient. The government had decided to gradually slash cattle importation from about 400,000 last year to 283,000 this year.
| South Korea open doors to Canadian beef
[01 February 2012] South Korea has agreed to lift a ban on Canadian beef imports put in place in 2003 after the bovine spongiform encephalopathy outbreaks in the country. Similar to the current restriction on US beef, South Korea will only allow beef from Canadian cattle less than 30 months of age. The Canada beef industry is positioned to export about 6,500 tonnes of beef to Korea by 2015, giving the country a 2% market share. South Korea was Canada’s fourth largest export market before the ban. Business with Japan, meanwhile, has rebounded back to its highest volumes since before 2003. The Canada beef industry estimates that this restored market access could mean more than USD 30 million for Canadian producers by 2015.
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| Thai exports will continue to grow
[01 February 2012] The Thai National Shippers’ Council forecasts that exports will grow by 12.2% in value and 6% in volume this year. Exports in value term should expand by 3.6% for the first quarter, followed by 9.7%, 2.7% and 32.7% for the second, third and fourth quarter. In volume terms, the expansion should be around 4.7%, 3.4%, 6% and 21.6%, respectively. Meanwhile, exports tend to grow in value as prices are increasing in world market. The forecast is lower than the 15% predicted by Commerce Ministry earlier. Sectors that are likely to expand well include shrimp, processed seafood products, fruit and vegetables, garments and electronic devices. The estimations for rice and chicken exports are still unclear.
| Jakarta to produce bird flu vaccine in 2013
[31 January 2012] Indonesia expects to be able to begin mass production of bird flu vaccines next year, said its Health Minister Endang Rahayu. State pharmaceutical company Bio Farma will start making the vaccine, which comes from the University of Indonesia, once its facilities are completed end 2012. Bird flu has hit Indonesia harder than any other country, with 150 deaths reported between 2003 and 2011, according to the World Health Organisation. The country recently stepped up efforts against the disease. The Central Jakarta Agricultural and Animal Husbandry Agency in mid-January destroyed birds in several residential areas. Don P Utoyo, Chairman of Indonesian Poultry Industry Forum, told Asian Agribiz that Jakarta’s Regulation No 4/2007 states that birds are not allowed to be reared in residential areas in the central part of Jakarta.
| Boost for India's fish processing industry
[31 January 2012] The government of India has started building a modern fish processing plant in Karnataka state to boost fish processing there. Costing INR 50 million (USD 1 million), the plant is designed to process frozen fish and valued added fish products for the domestic and export markets. It is due to be completed at the end of 2012. The plant will consist of a freezer with a 500 tonne capacity and related facilities for storage of chilled and frozen products. It will have a quality control laboratory that meets international standards and also implement HACCP (Hazard Analysis Critical Control Point). Shortage of fish processing plants in Karnataka has forced fishermen in the port town of Mangalore to ship their catch to other states for processing.
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| Bangladesh producers oppose tax on turnover
[31 January 2012] Poultry producers and feedmillers in Bangladesh have opposed a new turnover tax that the government will impose on total sales of feeds, saying it would raise prices of chickens and eggs, and force farmers to close their farms due to higher feed costs. The government has imposed 0.5% tax on turnover of poultry feedmillers from the current fiscal year. Normally, they have to pay a 5% advance income tax on imported corn and 5% import duty for pellet feeds. The feedmillers have demanded that the turnover tax be waived as feed costs are high and the farmers should not shoulder a higher cost.
| China suspends rapeseed and oil meal imports from India
[31 January 2012] China has imposed a ban on rapeseed and oil meal from India after synthetic dye malachite green was found in shipments. The dye, which is carcinogenic, at 0.5-1 ppb was detected in consignments of rapeseed and oil meal from India over the past six months. A representative of the Solvent Extractors' Association of India said the malachite green could have come from a green ink used for marking on jute bags that contain the meals. The association has asked its members to avoid using jute bags, especially those painted with the green ink. China's ban on the oil meal imports was seen as a counter measure against India's suspension of milk and milk products from China. In 2010-2011, China imported a total of 1.46 million tonnes of oil meals, of which 405,000 tonnes came from India.
| Thailand's rice mortgage program extended
[31 January 2012] The Thai government has decided to extend the rice mortgage program until the end of next month. According to Boonsong Teriyapirom, Commerce Minister, the mortgage program launched in October last year has been extended as only 5.3 million tonnes of paddy entered the program, half of the targeted 10 million tonnes. A contributing factor was floods last year which destroyed 11 million rai of plantation area. The Pheu Thai Government last year initiated the rice mortgage scheme by offering THB 15,000 (USD 476.5)/tonne for white paddy and THB 20,000 (USD 635.32)/tonne for fragrant paddy.
| CPF invests in brand building
[30 January 2012] Charoen Pokphand Foods Pcl (CPF) will spend THB 200 million (USD 6.4 million) this year in building its brands and image for its processed chicken products and frozen food. According to Supat Sritanatorn, Senior Vice President, the company will aggressively promote its brands and expand its marketing channels in modern trade, food centre, and fresh market. Particular groups of products that it will focus on include processed chicken and pork products and frozen food. This year, he said, the company plans to introduce more than 10 new product items. It will also extend into snacks and will do market testing on new product such as eggs with omega 3. Last year, the sales of its products under its various brands including CP brand, CP Fresh Mart, Five Star Chicken and Chester’s Grill grew by 15-20%. The company will continue to produce new products to supply the markets and its network stores including its CP Fresh Mart stores.
| Indonesian corn imports depends on yields
[30 January 2012] The Indonesian animal feed industry will use local corn as long as the harvest yield is enough to fulfil the industry’s raw material requirements. Industry players will wait for the harvest in April and stock up for the next three months then evaluate imports. Head of the Animal Feeds Entrepreneurs Association Mr Sudirman said that the animal feed industry will need some 500,000 tonnes a month, or some 6 million tonnes, for 2012. Last year the country needed 5 million tonnes for the animal feed industry. According to the Ministry of Agriculture domestic dry corn production fell 6% last year to 17.23 million tonnes compared to 2010’s 18.33 million tonnes. With demand standing at 22 million tonnes the remainder was met through imports. Last year Indonesia imported 3 million tonnes of corn, 57.9% more from 2010’s 1.9 million tonnes. Overall feed use in Indonesia last year reached 11.2 million tonnes, about 1 million tonnes higher than predicted in 2010. In 2010 feed consumption was 9.7 million tonnes. Feed consumption in 2012 is projected to reach 12.3 million tonnes.
| China suspends rapeseed and oil meal from India
[30 January 2012] China has imposed a ban on rapeseed and oil meal from India after traces of synthetic dye malachite green was detected in shipments. The dye, which is carcinogenic, at 0.5-1 ppb was found in consignments of rapeseed and oil meal from India over the past six months. An association representative said the malachite green could have come from a green ink used for markings on jute bags that contain the meals. China's ban on the oil meal imports was seen as a counter measure against India's suspension of milk and milk products from China. In 2010-2011, China imported a total of 1.46 million tonnes of oil meals, of which 405,000 tonnes came from India.
| Need for effective food safety checks
[30 January 2012] Some 14% of the adulterated milk samples in India contained detergent which is a serious health concern, revealed the Food Safety and Standards Authority of India (FSSAI). “Adding skimmed milk powder or water does not pose a threat but chemicals could cause serious health problems. The mechanism to check all types of adulteration is in place but there are issues regarding effective implementation,” said VN Gaur, Chief Executive Officer of FSSAI while revealing plans for 125 new food testing laboratories in the country, apart from the existing 72.
| Philippine clears way for Canadian cattle, sheep and goat imports
[30 January 2012] The Philippine government will now allow the import of live cattle, sheep and goats from Canada. The Canadian government said that the Philippines imports some USD 9 million worth of live cattle each year and about USD 300,000 worth of live sheep and goats from various countries, and now Canada can once again compete in the market. The Philippines had banned the entry of live ruminants from Canada in May 2003 after Canada’s first domestic case of bovine spongiform encephalopathy (BSE) was discovered. However in 2007, the Philippines lifted its ban on Canadian beef and in 2010 also lifted a BSE-related ban on meat and bone meal from Canada.
| Jollibee acquires 50% of SuperFoods Group
[27 January 2012] Jollibee Foods Corp (JFC) has completed the purchase of 50% of SuperFoods Group, which owns and operates Highlands Coffee shops in Vietnam, Highlands Coffee packaged products and Hard Rock Café franchised stores in Macau, Hong Kong and Vietnam, as well as the Pho24 restaurant brand in Vietnam, Indonesia, the Philippines, Hong Kong, Cambodia and Japan. In a disclosure, JFC said that pursuant to an agreement made with its partner Viet Thai International Joint Stock Co (VTI), it will invest USD 25 million for the 50% stake as well as extend a USD 35-million loan to VTI. JFC will also advance USD 5 million to SuperFoods. The company said it plans to serve Highlands Coffee in the restaurants of its various brands to upgrade the quality of its coffee at prices its consumers can afford.
| India’s corn exports up 7%
[27 January 2012] India expects its corn exports to grow by 7% to 3 million tonnes in the 2011-2012 marketing year (ending September 2012) due to adequate supplies and high demand due to competitive price. So far, India has exported 1 million tonnes of corn, an industry source. Demand for Indian corn is strong in Southeast Asia because its price is lower than US corn by USD 40-60%/tonne. India is forecast to produce 21 million tonnes in 2011-2012 crop year (July-June), slightly lower than the previous year's 21.28 million tonnes. Production is expected to drop because of lower rains in the summer and winter seasons, but output is sufficient.
| Buhler registers impressive growth
[27 January 2012] The Buhler Technology Group performed well in 2011, with an order intake of USD 2.4 billion. This translates into organic growth of 9% in local currencies. Sales (turnover) in local currencies rose by an even stronger 17% to USD 2.29 billion. Above all, the Advanced Materials and Grain Processing divisions were able to significantly grow their new order intake in local currencies (+35% and +11% respectively), while the Food Processing division was largely able to maintain its level of new orders. The increase is primarily due to Asia, but Europe and South American also developed well. Advanced Materials also reported the strongest turnover growth (+35% in local currencies) thanks to the positive development of the automotive industry. The Grain Processing and Food Processing divisions also succeeded in gaining new market share, up by 18% each in local currencies.
| Japan to buy more US beef
[27 January 2012] Japan is expected to review its trade restrictions to the US in the second quarter of this year. The restrictions were imposed after the mad cow disease outbreak in 2004 where Japanese imports of US beef dropped to almost zero from 298,039 tonnes in 2003 after the country joined South Korea and China in banning US supply after the discovery of bovine spongiform encephalopathy. The US expects Japanese sales to jump 43% to 202,100 tonnes, the highest since 2003. Shipments to Japan rebounded since Japan relaxed its ban in 2005 to allow meat from 20-month-old cattle or younger. The curbs on beef from older livestock meant about USD 1 billion a year in lost sales. Australia, meanwhile, is expecting a 4% drop in exports to 336,000 tonnes. The country attributes the drop to increasing US competition and stagnant demand from Japan.
| CPF to expand CP Market
[26 January 2012] Charoen Pokphand Foods Plc (CPF) plans to invest THB 500 million (USD 15.9 million) in opening 50 CP Markets, its new retail format, in the next three years. Virat Techanirattisai, CPF’s Vice President for retail operations, said that the first branch of CP Market launched in December last year has received good response from customers. So the company plans to add another nine stores by this year and reach 50 in the next three years. If the market turns out to be a success in Thailand, the company plans to move forward in other countries where the CP group has operations. Up to 80% of the products sold in the stores are from other companies and the remaining 20% are CP products.
| Stress has greatest impact on egg quality
[26 January 2012] Poor egg quality is more likely the result of stress rather than the result of diseases or poor environment. Chickens experiencing stress factors such as overcrowding, water shortage, house temperature, even sudden noise tend to lay eggs of poor quality. According to Dr Sally Solomon, a consultant on egg quality from the University of Glasgow Veterinary School, UK, research has shown that the simple movement of one bird from a cage of four to another cage for a period of one hour was sufficient to dramatically alter shell structure for some considerable time. “The shell is an adequate indicator of stress. Under stress the oviduct breaks down, meat spots increase and the shell invariably becomes thinner,” Dr Solomon told Asian Agribiz recently. “Correcting shell faults require detailed knowledge of the farm in question, its personnel and daily practices. It is, however, important to give birds a head start in terms of priming their immune system.”
| India to set up 125 food testing labs
[26 January 2012] India hopes to set up 125 food testing laboratories to test for adulteration in food, according to V.N. Gaur, CEO of the Food Safety and Standards Authority of India. He said the laboratories would test whether the adulteration in food is due to chemical, physical or microbiological contamination. India has established 72 primary food testing laboratories. Besides, the country has also had four central food laboratories that provide reference for the primary laboratories, undertaking research projects for the food industry. The authority also proposed that the government to upgrade and modernise existing food testing laboratories and open them to packaged food manufacturers, consumers and researchers.
| Growth of Philippine agriculture slows in 2011
[26 January 2012] Growth of Philippine agriculture fell short of government projections for 2011, Agriculture Secretary Proceso Alcala said in a press conference, expanding by only 2.3% instead of the expected 3-3.5%. The slowed performance was attributed to a decline in fishery production as well as losses that resulted from the storms that hit the country in the latter part of the year. The crop subsector, which account for nearly half of total agricultural output grew by 4.8% from the previous year, while livestock and poultry posted small growth of almost 2% and 4.3%, respectively. Mr Alcala said that together the three subsectors cushioned the effects of the more than a 4% drop in fisheries output. He is more optimistic for 2012, saying the government expects a 4-5% growth for the sector this year.
| Thailand to export more eggs
[26 January 2012] The Thai Commerce Ministry plans to push the export of 100 million eggs by February in order to ease the surplus in the domestic market which has brought the prices down in recent months. Bhumi Saraphol, Deputy Commerce Minister, said that the ministry plans to export eggs to Malaysia, Singapore and the Middle East. He will also push the surplus eggs into processing. On top of that the ministry will review the free import of layers into the country for a long-term solution.
| Indonesian DOC prices up 33.3%
[25 January 2012] The price of day old chicks in Indonesia rose 33.3% to IDR 4000 (USD 0.44) per chick from IDR 3000 (USD 0.33) recorded early this year. Suping Susanto, President Director of Cibadak Indah Sari Farm, told Asian Agribiz she attributes the higher prices to a shortage in supply which could be due to the current change in the climate. She, however, does not think that the high prices are due to the Chinese New Year festivities.
| Country Chicken opens first outlet in India
[25 January 2012] Australian fast food chain Country Chicken opened its first outlet in India this week with a plan to open 300 outlets in the country by 2015. The first outlet is in the southern city of Coimbatoire. Country Chicken (India) plans to invest INR 2000 (USD 39 million) for expansion in the next three years, said CEO Ramakrishna. He said Star Quick Service Restaurant (SQSR) (P) Ltd, the partner for Country Chicken in India, will provide the processed products to outlets in India. The processing plant in Chennai will supply products to the Coimbatore outlet and future outlets in the South, which would ensure standardised product quality across all outlets.
| Vinamilk exports milk to Thailand
[25 January 2012] Vinamilk, Vietnam's major milk producer will start exporting dairy products to Thailand in the first quarter of 2012. In 2011, Vinamilk exported USD 140 million worth of products to 15 countries all over the world, making an increase of 72% against 2010. The company recorded USD 1 billion in turnover in 2011 and contributed VND 2400 billion (USD 120 million) to the state budget. The figures represented a 37% and 38% increase, respectively, compared with 2010.
| Philippine agriculture up 3.5% in 2011
[25 January 2012] Although official figures have not yet been released, the Philippine agricultural sector is likely to post a 3-3.5% growth for 2011, Philippine Agriculture Secretary Proceso Alcala said. The government had earlier projected a 5% growth for the sector, but a series of typhoons that hit the country led to major damages in agricultural crops and livestock. Output of rice, the country’s top agricultural produce, is projected at 16.7 million tonnes, lower than the expected 17.4 million for the year. Corn production on the other hand, is still expected to reach nearly seven million tonnes for the year, up 10% from the 2010 output. Most of the corn produced by the country is used for animal feed production.
| TUF expects 20% jump in sales
[25 January 2012] Thai Union Frozen (TUF), the world’s largest canned tuna producer, expects its revenue to jump to USD 8 billion by 2020 on the back of growing global food demand. Krisorn Chansiri, the company’s Chairman, forecast that the total revenue for 2013 and 2015 at USD 4 billion and USD 5 billion, respectively. President Thiraphong Chansiri said that to achieve the target of USD 8 billion, the company will focus investments on its products including shrimp, tuna, salmon, sardines, squid, cat food and ready-to-eat food. Debt-to-equity ratio will be controlled at no more than 1:1. He expects sales growth this year to be around 20%.
| GFPT expects 10% growth in 2012
[20 January 2012] GFPT Plc plans to invest THB 800 million (USD 25.2 million) in expanding the number of its parent stock this year. Jutamas Ingpochai, Vice President of Investor Relations Department, told Asian Agribiz that the investment is aimed at boosting its production capacity to reach 300,000 broilers/day by 2015 from 250,000 currently. She said the investment will help build the group’s sustainable growth in the long-term. This year, the company will not build more farms or processing plants as it invested THB 1 billion (USD 31.5 million) over the past two years to build new broiler PS farms to boost supply to its joint-venture processing plant with Japanese partner under GFPT Nichirei (Thailand). Last year, the group’s total revenue stood at THB 14 billion (USD 440 million) and it expects a growth of 10% for this year.
| SMFI progresses with in-house genetics program
[20 January 2012] San Miguel Food Inc (SMFI) and Topigs yesterday signed a supply agreement for about 1116 GGPs that will support SMFI’s in-house genetics program. The GGP animals, consisting of 1110 gilts and six boars, will arrive via chartered plane tomorrow, and will be taken to SMFI’s nucleus farms in Isabela Province. Dr Bryan Retales, Country Manager of Topigs Philippines, told Asian Agribiz that the GGPs will allow SMFI to “produce their own grandparent and parent stocks for their strategic expansion program,” while Topigs Regional Director for Asia Pacific said that “SMFI can now make use of the most modern Topigs genetics.” For his part, Dr Leo Obviar, VP & GM of SMFI’s Poultry and Meats Business, said he is happy to have Topigs as a partner as the company continues its expansion program to 2020.
| DBE to raise funds through private placement
[20 January 2012] After a series of corporate restructuring exercises last year which included capital reduction, a share premium reduction and a rights issue to turn the loss-making company around, Malaysian integrator DBE Gurney Bhd has revealed plans for a private placement to further raise funds. Managing Director Alex Ding confirmed that the integrated chicken company was seeking to undertake a 10% private placement to raise funds for working capital. “We are in talks with a few interested parties but nothing has been finalised so we cannot confirm anything. The move would raise working capital which would be good for the company as well as its shareholders,” Mr Ding told Asian Agribiz.
| Meat import quota reaches 31,000 tonnes in H1
[20 January 2012] The Indonesian government issued permits for imports of meat and calves at 31,200 tonnes for the first half of the year, or 36.7% of the quota for this year. Some 20,400 tonnes, or 60%, is for frozen meat import while 60,000 heads or 10,8000 tonnes of calves has been issued in the first quarter. This makes 21.2% of the total calves import quota this year at 283,000 heads. According to the Executive Director of Indonesian Meat and Feedlot Producers Joni Liano, the government looks at the importers’ performance in the past three years, the pens capacity, the importers’ ability to absorb local cattle to support the cattle self-sufficiency program and the condition of slaughterhouses before issuing permits.
| AGR to invest in Cambodia
[20 January 2012] Asia Golden Rice (AGR), Thailand’s second largest rice exporter, plans to invest THB 1.5 billion (USD 47.3 million) in Cambodia. The move is to expand regionally, according to President Sombat Chalermwutinan. The investment will include fully equipped milling and processing plants with a capacity of up to one million tonnes of rice/year. The investment is in the form of a joint venture between AGR and a local Cambodian group. Mr Sombat said that the joint venture may include future activities such as contract farming to ensure future supplies. He continued that this new alliance will benefit the rice industry of both countries and will strengthen the region as a key global rice supplier.
| Dharma Samudera sees sales up on exports
[19 January 2012] PT Dharma Samudera Fishing Industries Tbk expects sales to increase between 15-20% in 2012 boosted by high volume and stronger selling price. “This is if the demand for various fish products is still there and we can adapt to the market request,” Marketing Director Herman Sutjiamidjaja told Asian Agribiz. Mr Herman is also optimistic as demand from the US and Japan has improved compared to end last year. The company sells tuna, red snapper, grouper and octopus to the US and squid, octopus, cuttlefish and shark fillets to Japan. The company plans to expand to South Korea and Australia as demand from the latter is high, almost 100 tonnes per month for fillet fish. Dharma Samudera makes about 95% of its sales from the export market. It recorded revenues of INR 171 billion (USD 18.69 million) last year.
| New Hope expands globally
[19 January 2012] China's feedmiller New Hope Group is expanding its business in emerging markets through a joint-venture with Japanese grain trader Marubeni Corp to tap into growing meat consumption in these markets. The group has signed a letter of intent to set up businesses in Africa, the Middle East, Eastern Europe and South America, according to Xiang Chuan, Secretary of New Hope Liuhe Co, a subsidiary. The company now has 16 feed factories overseas, and it plans to add four more annually. Each overseas factory will have a production capacity of between 100,000-200,000 tonnes annually. New Hope has completed the construction of an animal feed factory in Egypt. It will also begin work on a plant in Johannesburg, South Africa.
| India soybean meal exports up 12&
[19 January 2012] Indian soybean meal exports during April to December 2011 increased 12% to 2.6 million tonnes, according to the Soybean Processors Association of India. In December 2011 alone, the country shipped 77,838.2 tonnes of soybean meal, a 27% increase year-on-year. In the fiscal year starting April 2011, India primarily shipped soybean meal to Japan, Vietnam, Thailand, Indonesia and Iran. During current oil year, (October 2011- September 2012), exports during October - December slightly increased to 146,921.2 tonnes year-on-year.
| McDonald’s to expand franchise business in China
[19 January 2012] McDonald’s is to beef up investment in China, the company’s third largest market after the US and Japan. This year the company plans to set up some 250 new restaurants in the country and its investment (for new restaurant, upgrading corporate image and convenience service) is expected to increase by 50% from last year. McDonald’s opened 200 restaurants in 2011, setting a record since its inception in China. Apart from the direct-sale stores and traditional franchised stores, the company has adopted the new “developmental franchise” mode in Yunnan and Guangdong province in 2011. Kenneth Chan, CEO of McDonald's in China, said the franchise business model is one of the key drivers for McDonald’s future growth in China. “We are also promoting the new business mode in Jiangsu and Hunan provinces,” he said, adding that the company plans to have 2,000 stores in China by 2013.
| Malay Chamber offer rejected
[19 January 2012] Kulim (Malaysia) Bhd said it has turned down the offer made by the Malay Chamber of Commerce to acquire all shares in QSR Brands Bhd for MYR 6.90 (USD 2.21) a piece, according to a Kuala Lumpur stock exchange statement. Instead the group will stand by the offer made by its parent Johor Corp and its partner CVC Asia Capital to acquire all the QSR shares at MYR 6.80 (USD 2.18) a piece as well as its subsidiary KFC Holdings Bhd at MYR 4 (USD 1.28) a share. Johor Corp and CVC have formed a joint venture called Massive Equity Sdn Bhd. Johor Corp owns 55.9% of Kulim, which owns 53.9% of QSR which in turn has a 50.93% stake in KFC.
| Philippine meat processor sees increase in sales
[18 January 2012] Philippine meat processing firm, Mekeni Food Corp, sees higher sales and profits this year on the back of an upcoming election, increased government spending and growing export network, a report by BusinessWorld said. Mekeni Food President Prudencio Garcia noted that sales of processed meat normally increase in the last quarter of the year prior to an election. The Philippines is set to have its mid-term election in May 2013. He also noted that the government’s planned spending for infrastructure projects this year bodes well for the company, and the economy on the whole as this could result in increased consumer spending. Backed by these developments, Mr Garcia projects Mekeni’s profit to grow by 6-9% in 2012. Last year, the company had sales of over PHP 1 billion (USD 22.76 million).
| Vietnam to quarantine 100% of shrimp fry
[18 January 2012] Vietnam is to quarantine all the shrimp hatcheries in the country to ensure that the fry is disease-free before being released to grow-out ponds, according to the Ministry of Agriculture and Rural Development. Vice Minister Nguyen Thi Xuan said the move is aimed to prevent diseases that are hitting the country's shrimp industry. The Department of Animal Health will undertake the quarantine, test and issuance of animal health certification. It will also evaluate and certify laboratories. At the same time local animal health agencies will inspect the production conditions, environment protection, waste management and hygiene assurance of the concentrated shrimp hatcheries. They will also provide weather forecast, issue crop schedule and strictly control stocking size.
| Stall-fed goat milk launched in India
[18 January 2012] Indian goat milk producer Nadur Goat Farms has launched the country's first goat milk from stall-fed goats. It is available in Bangalore and Mumbai. The company said milk comes from healthy goats, raised in the stall-fed method. Goats raised this way are fed a balanced mix of nutrients as per their daily requirements and are kept in specially designed stalls, which ensure that the goats are healthy and clean, while producing odourless milk. Every goat is checked before it is milked to ensure that it is healthy; the milk then is instantly pasteurised, chilled and packed in 500 ml pillow pouch packets and transported through highly efficient cold chains.
| MAV meat import allocation nearly used up
[18 January 2012] The Philippine Department of Agriculture has allocated nearly all of its Minimum Access Volume (MAV) for pork and chicken imports for 2012. For 2012, the MAV quota for pork imports stands at 54,210 tonnes. Of this, the MAV Management Committee has allocated 52,184 tonnes to 101 firms. Pork imports falling within the MAV are levied a 30% tariff while the out-quota tariff is 40%. For poultry imports, the MAV is 23,490 tonnes, with 22,406 tonnes already allotted to 114 firms. Poultry imports, both within and outside of the MAV, are subject to a 40% tariff.
| Mekong Delta to produce 1.2mt of tra fish
[17 January 2012] Vietnam's southern region of the Mekong Delta is expected to produce 1.2 million tonnes of pangasius catfish or tra fish in 2012. To achieve this, the Ministry of Agriculture and Rural Development is planning to upgrade its four centres to aid catfish farmers in the region. It will build laboratories with modern facilities for fish quality control in An Giang, Dong Thap, Vinh Long, Hau Giang, Soc Trang, Tien Giang, Ben Tre, and Tra Vinh and Can Tho provinces. In 2011, the Mekong Delta is estimated to have earned a total o f USD 1.67 billion from exporting 607,000 tonnes of pangasius cat fish.
| VH Group stops selling eggs in bird flu hit areas
[17 January 2012] India's VH Group has stopped selling eggs in the North-eastern states of Orissa and Meghalaya following reports of bird flu last week. T. Venkateshwara Rao, Director of VH Group said the company has stopped supplying eggs to the affected areas as a precautionary measure. The company sells 40,000 eggs/day in these states. Satish Pal, President of the Poultry Federation of India said India has just received orders for eggs from the Middle East after the country was declared bird flu free earlier in the month. However, exports were suspended after the bird flu resurfaced last week.
| Grain prices recede
[17 January 2012] The threat of food inflation, a serious concern for emerging countries last year, is starting to recede as high prices for grains restrain consumption and better crop yields in Europe and Russia replenish stocks. Grain prices have also dropped with the US reporting higher than expected stocks of corn. Benchmark corn futures fell by their daily maximum limit to a three-week low of USD 6.11½ a bushel, down more than 6% last week while wheat, which had previously been supported by expectations of low corn stocks, fell 5.6%.
| Thailand’s shrimp industry continues to grow
[17 January 2012] Thailand’s shrimp trade is expected to expand by at least 10% in both production and export value this year. Somsak Paneetatyasai, President of the Thai Shrimp Association, still expects a promising outcome from the industry this year despite concerns on the economic downturn in US and Europe, possible viral outbreaks and natural disasters. He believes the global demand for shrimp is still strong. For the first 11 months of 2011, Thailand’s exports of shrimp stood at 361,460 tonnes, down 7.87% from the same period a year ago. However in value terms it increased by 9.78% to THB 101.13 billion (USD 3.2 billion), exceeding THB 100.94 billion (USD 3.18 billion) in 2010. The lower production was caused by the floods in late 2010 and early 2011 in the southern region.
| Cereal and meat prices decline
[16 January 2012] Cereal prices registered the biggest fall, with the FAO Cereal Price Index dropping 4.8% thanks to record crops and an improved supply outlook. Maize prices fell 6%, wheat 4% and rice 3%. The FAO Meat Price Index averaged 179 points, slightly down compared with November. The decline was mainly driven by pig meat, whose price dropped by 2.2%, with sheep meat also receding somewhat. By contrast, poultry and bovine meat prices recorded mild gains. On an annual basis, meat prices in 2011 were 16% higher than in 2010.
| Malay Chamber of Commerce outbids CVC’s KFC offer
[16 January 2012] The Malay Chamber of Commerce offered to buy a strategic stake in QSR Brands Bhd for MYR 6.90 a share outbidding the MYR 6.80 offer by Massive Equity Sdn Bhd, parent company Kulim Bhd said. The President of the Malay Commerce Syed Ali Alattas explained: “I had already met two banks actually. We must keep these restaurants under Malaysians, this is important.” On December 14, Massive Equity, consisting of JCorp and private equity firm CVC Capital, offered to take over Kulim’s assets. JCorp owns 55.9% of Kulim, which owns 53.9% of QSR which in turn has a 50.93% stake in KFC. Kulim said the offer by the Malay Commerce was unsolicited, and it came despite the independent directors of QSR already agreeing to accept the offer made by Massive Equity.
| Thailand’s egg prices drop
[16 January 2012] Thailand’s egg prices have dropped due to the surplus in the local market. Retail price of eggs have fallen to between THB 2.40-2.60 (USD 0.075-0.082) each, way below the regular price range of THB 3.30-3.90 (USD 0.1-0.12). Egg producers believe the drop in egg prices was caused by the free imports of layers into the country which started during mid 2010. The Internal Trade Department has decided to ask the government to control imports of layer parent stock in order to prevent long-term surplus of eggs which will bring down the local prices. Director General Vatchari Vimooktayon said that the recent surplus was at 2-3 million eggs/day.
| Jakarta on alert
[16 January 2012] The Central Jakarta Agricultural and Animal Husbandry Agency last Wednesday destroyed birds in several residential areas in a move to step up its efforts against avian influenza. The agency found more than 1,000 birds kept in backyard farms in the city and culled chicken, ducks and geese. “All poultry that were kept for food were slaughtered on the spot and the meat was distributed to the people living in the neighbourhoods,” the head of the Supervision and Control Division at the sub-agency Sarjoni said. The agency said it will continue its rounds in other parts of the city. A 23-year-old man from North Jakarta was confirmed to have died of the disease recently.
| FPI continues its downward trend
[13 January 2012] The UN Food and Agriculture Organisation has reported a 2.4% drop in the Food Prices Index in December 2011, a drop of five points from the month before. The Index was 11.3% (27 points) below its peak in February 2011. The decline was driven by sharp falls in international prices of cereals, sugar and oils due to bumper 2011 crops coupled with slowing demand and a stronger US dollar. However, although prices dropped steadily in the second half of 2011, the Index averaged 228 points in 2011 — the highest average since FAO started measuring international food prices in 1990. The previous high was in 2008 at 200 points. FAO Senior Grains Economist Abdolreza Abbassian said: “Although prices have declined, given the uncertainties over the global economy, currency and energy markets, unpredictable prospects lie ahead."
| India's broiler production up 2% in 2011
[13 January 2012] Broiler production in India is expected to increase by 2% in 2011 to 2.7 million tonnes, according to estimates by the US Department of Agriculture (USDA). In its International Egg and Poultry Review launched in January 2012, USDA said broiler production in India grew at an annual percentage growth rate of 8.35% from 2001 (1.25 million tonnes) to 2010 (2.65 million metric tonnes). Per capita consumption has grown from 1.22kg in 2001 to 2.26kg in 2010, an increase of 185%.
| Tuna fishing ban extended until March
[13 January 2012] The two-year ban on tuna fishing in the Pacific Ocean has been extended until March this year after the annual meeting of the Western and Central Pacific Fisheries Commission (WCPFC) was postponed last month and rescheduled in March. Marfenio Tan, director of the Socsksargen Federation of Fishing and Allied Industries Inc (SFFAII), said the deferment of the meeting means the ban on purse-seine fishing in pockets of the Pacific Ocean will continue until then. The ban has dampened the Philippine tuna fishing industry, which is a leading contributor to Philippine exports. Mr Tan said the meeting in March will discuss among others “whether the fishing ban will be extended or [purse-seine fishing in the Pacific] will be totally banned.” Tan said. The WCPFC imposed the ban on January 1, 2010 in an effort to replenish the dwindling stocks of the highly migratory tuna species.
| Halal certification guidelines up for the Philippines
[13 January 2012] The National Commission of Muslim Filipinos (NCMF) has issued a resolution listing the criteria and guidelines for the accreditation of halal certification entities. The guidelines were formulated by the Philippine Halal Development and Accreditation Board following consultations with various stakeholders, and covers both local and foreign companies seeking to certify Philippine food and non-food products as halal products.
| Venky's XPRS to launch in London
[12 January 2012] Venky's India Limited has found a place in London, England, to set up its first XPRS restaurant there that will be launched later in 2012. The company is planning to expand its Venky's XPRS fast food chain to 100 restaurants across India over the next three years and set up branches abroad, according to Managing Director B. Venkatesh Rao. Launched in 2011, Venky's XPRS now has 12 stores in Mumbai, Pune and Hyderabad. "First our aim is to set up 25 restaurants, and then we go to 50, 75 and 100. We invest about INR 560 million (USD 8.3 million) for these outlets," he said. Venky's XPRS targets health conscious customers by offering grilled chicken in Indian style.
| QL to double fish plant operations in Indonesia
[12 January 2012] Malaysia's QL Resources Bhd plans to spend USD 3 million this year to double the production capacity of its fish plant operations in Surabaya, Indonesia, while also targeting to multiply egg production in Indonesia and Vietnam by the first quarter of 2013. The group commenced its fishery operations in Indonesia in August 2011. The plant currently processes 5,000 tonnes of surimi (fish paste) and fishmeal per year respectively. "We will be adding two lines to the plant, each with a capacity of 5,000 tonnes for the processing of surimi and fishmeal," Freddie Yap, group accountant and investor relations.
| Henan Huaying to raise funds for expansion
[12 January 2012] China's Henan Huaying Agricultural Development Co Ltd, intends to issue 50 million shares to ten investors and raise CNY 613 million (USD 97.07 million). The funds will be used to invest in a chicken farm with a capacity of 20 million chickens, a duck breeding and slaughtering project with a capacity of 20 million ducks, a duck breeding project with a capacity of 40 million ducks, and to replenish working capital. The Henan-based company engaged in the cultivation, breeding, slaughtering, processing and distribution of poultry.
| Philippine feed prices to go up
[12 January 2012] Philippine animal feed producers will raise prices of animal feeds by PHP 20/50-kg bag (USD 0.45), citing the recent rise in the prices of raw materials including yellow corn, rice bran and coconut oil. Philippine Association of Feed Millers Inc (PAFMI) President Norman Ramos said that yellow corn is now sold at PHP 19-20/kg (USD 0.43-0.45) from PHP 13/kg (USD 0.30) a few months ago, coconut oil is now at PHP 72/kg (USD 1.64) in December and rice bran PHP 13/kg (USD 0.30) from PHP 11.50 /kg (USD 0.26) two weeks ago. Earlier, PAFMI had requested for the duty free importation of yellow corn, but it is no longer pursuing this option despite the current high prices since local harvest could begin by end-February this year.
| Yisheng signs USD32m deal in eastern China
[11 January 2012] Shandong Yisheng Livestock & Poultry Breeding Co Ltd, one of China’s largest supplier of parent stock broiler breeder and layer breeder, is set to invest more than CNY 200 million (USD 32 million) in eastern China’s Jiangsu province, to expand the output of DOC. According to the group’s Board of Directors, the project consists of nine PS broiler breeder farms, each with an annual rearing capacity of 100,000 birds. When completed the project is expected to turn out some 78 million day old broiler per year. Industry experts pointed out that the move will help the group expand its reach in eastern China, including the province of Anhui, Zhejiang and Shanghai, which are the major chicken consumption regions.
| Philippine meat processor to spend USD6.8m for upgrades
[11 January 2012] CDO Foodsphere Inc, one of the Philippines biggest meat processors, will upgrade its manufacturing plants to increase production capacity, a report by Businessworld said. The company will spend USD 6.8 million, to be funded by bank loans, to buy new equipment to expand hotdog and canned goods production by about 30% in terms of volume. CDO has two big production plants in Malvar, Batangas Province and in Valenzuela City, Metro Manila. Despite the upgrade, the company said there will not be any lay-offs in their workers.
| IPVS open for registration and submissions
[11 January 2012] The 22nd International Pig Veterinary Society Congress (IPVS2012) is open for registration and submission of abstracts. IPVS 2012 will be held during June 10-13, 2012 at the International Convention Centre, Jeju, South Korea. Themed 'Happy Pigs-Healthy People,' the congress comprises of keynote lectures, satellite symposia, oral presentations and poster sessions as well as social and tour programs. These sessions will address all aspects related to the swine industry, including economically important diseases, new and exotic diseases, production management, feed and nutrition, genetics, welfare, pork safety and more. This is its second staging in Asia since 1994 and is organised by the Korean Association of Swine Veterinarians.
| Korea loses self-sufficiency in pork
[11 January 2012] Self-sufficiency in pork in South Korea dropped to the lowest point ever in 2011 due to massive culling of pigs during countrywide outbreaks of foot-and-mouth disease (FMD) early in the year. The self-sufficiency ratio of pork dropped 20.6 percentage points to 60.3% at the end of 2011, according to the Ministry for Food, Agriculture, Forestry and Fisheries. As a result of the FMD outbreaks about 3.3 million pigs were culled, forcing South Korea to boost pork imports. South Korea produced 569,000 tonnes of pork in 2011, down 192,000 tonnes from a year earlier. Pork imports, meanwhile, more than doubled to 374,000 tonnes over the same period.
| Indon poultry sector up in 2012
[10 January 2012] Despite a rough ride for the Indonesian poultry sector integrators can expect a respite in 2012. The sector is expected to offer between 6-8% increase in turnover for the grandparent stock and chicken cultivation industries. The production of chicken meat, eggs and animal feed sectors will soon follow. “The consumption of chicken per capita in 2012 will increase to 7.9kg per capita from 7.2 kg per capita the year before,” Don P Utoyo, Chairman of Indonesian Poultry Industry Forum, told Asian Agribusiness Media. Between 2009 and 2011 Indonesia's imports of grandparent stock grew from 404,774 to 434,240. The animal feed sector, meanwhile, can expect turnovers totalling IDR 61.5 trillion (USD 6.7 billion) this year, from a total volume of 12.3 million tonnes in 2011.
| New bird flu case in India
[10 January 2012] India's eastern state of Orissa confirmed a bird flu outbreak yesterday. The state government had sent samples of 300 birds to a laboratory after hundreds of crows died. The results emerged positive for bird flu. Satyabrata Sahu, a fishery and animal resources department official, said local authorities were directed to stop movement of poultry from the affected areas. The last outbreak of bird-flu in India occurred in September in the eastern state of West Bengal. India has had several outbreaks of the H5N1 virus since 2007, but no reported cases of infections in humans.
| Vietnam targets 2.6% growth in agriculture
[10 January 2012] Vietnam's agriculture sector is likely to grow by 2.6% in 2012, according to the Ministry of Agriculture and Rural Development. In 2011, the sector grew at 5.2%. The seafood segment posted the fastest growth rate of 6.4%. Seafood output in 2011 reached 5.2 million tonnes, up 1.4% year-on-year, while seafood exports generated USD 6 billion. Vietnam's agricultural exports in the year increased 29% to USD 25 billion.
| Vietnam's vegetable oil exports up 51%
[10 January 2012] Vegetable oil exports from Vietnam increased 50% in volume and 51% in value in 2011, said the Ministry of Industry and Trade. Vietnam exports vegetable oils mainly to Cambodia, China and Australia. Vietnam Vegetable Oils Industry Corporation said the achievement is beyond expectation as the industry faced numerous challenges such as fluctuating prices of input materials and difficulties forecasting production trends. Besides, the packing price increased 32%, driving up export prices, and high interest rates also affected profitability of the exporters.
| Indian milk producer opposes FDI in multibrand retail
[09 January 2012] Indian milk producer Gujarat Cooperative Milk Marketing Federation opposed a move by the Indian government to allow foreign retailers to secure a majority share in multi-brand retail saying this would adversely affect local dairy farmers. Federation's Managing Director R.S. Sodhi said organised retail tends to be monopolistic and access to market often comes at a heavy price to both farmers and processors. "If FDI (foreign direct investment) in multi-brand retail is introduced in India, then Indian dairy farmers may end up suffering the same fate as their western counterparts," he said. He added that integration with global retail chains that operate across the world would directly expose Indian consumers as well as Indian farmers to any future global turbulence.
| Hi-Q focuses on ready-to-eat meals
[09 January 2012] Hi-Q Food Products Co, the Thai producer of Roza canned fish, plans to focus on ready-to-eat meals, hoping to reach THB 100 million (USD 3.17 million) in sales this year. The company has been in the canned fish business for the past 25 years and faced fluctuation in raw material prices every year. According to Marketing Director Suwit Wangpattanamongkol, the volatility of raw material prices has gotten worse in recent years due to the natural disaster and climate change. He said the shift to ready-to-eat food is a plan to boost its overall domestic sales in the next three years to THB 2 billion (USD 63.4 million). He believed the ready-to-eat meals have promising potential in both locally and internationally. The company will use Roza ready-to-eat products in retort pouch packages to penetrate the European markets and the US.
| Cofco to expand global logistics system
[09 January 2012] China National Cereals, Oil and Foodstuffs Corp (Cofco), the largest state-owned agri-food conglomerate, has made substantial progress in its overseas investment, said Chairman of the Board Frank Ning. Cofco plans to build up its global logistics and processing systems in 2012, handling products such as corn, soybeans, rapeseed oil, sugar and wheat. “Some deals are being negotiated and the group will invest wherever it is necessary,” Mr Ning said, suggesting the total amount could be huge. "We have laid the groundwork for expansion," he said, without giving further details. In November last year, Cofco announced plans to invest overseas through mergers and acquisitions over the next five years. The company will focus on a number of foreign markets including the United States, Australia and Southeast Asia.
| Thailand’s overall exports drop
[09 January 2012] Thailand’s exports of crops and agro-industrial products in November last year jumped by 11.3% year-on-year although overall exports fell for the first time in last year due to the floods and slower global economy. Exports of crops and agro-industrial products stood at USD 3.3 billion while industrial products dropped by 26.7% to USD 8.7 billion. Deputy Commerce Minister Siriwat Kachornprasart said that the drop in export volumes was likely to continue till the first quarter of this year. The country plans to focus on exports to Asia, Latin America and the Middle East in order to ease the impact economic slowdown in Europe.
| Disease drives Vietnam's meat imports up 30%
[06 January 2012] Meat imports into Vietnam jumped 30% to 107,000 tonnes in 2011, reflecting that blue ear disease and cross border trade of live pigs during the year resulted in a sharp drop in the country's meat supplies. Rising meat imports surprised the Animal Husbandry Department that earlier estimated that meat imports in 2011 would drop below the previous year to 83,000 tonnes. Imports were boosted to mitigate a hike in pork prices during June and July 2011. At that time, Vietnam was facing severe shortage of pigs due to outbreaks of blue ear disease and hoarding of live pigs by Chinese traders.
| Vietnam's farm exports up 28% to USD25b
[06 January 2012] Vietnam's exports of farm produce in December is said to have reached USD 2.2 billion, raising the total exports for the entire year to USD 25 billion or a 28% increase year-on-year. Of the total, exports of agricultural products such as rice, coffee and rubber posted the highest growth rate of 33% to USD 13.7 billion, followed by seafood products at 21% to USD 6.1 billion and forestry products at 13% to USD 4.1 billion.
| India free from bird flu
[06 January 2012] India has declared itself free from the bird flu virus after a country-wide surveillance found no evidence of the virus after the last outbreak was detected. India's Ministry of Agriculture announced the bird flu free status this week after notifying the World Animal Health Organisation or OIE. India detected the last two bird flu outbreaks in Assam and West Bengal states in September 2011.
| S. Khonkaen boosts its capacity for exports
[05 January 2012] S. Khonkaen Foods Plc, Thailand’s leading producer of Thai-style sausage and dried shredded pork, is investing in its facilities in order to boost its entire production capacity to 18,000 tonnes/year. CEO Charoen Rujirasopon told Asian Agribusiness Media that the company has invested THB 180 million (USD 5.7 million) in new equipment and other facilities of both processing plants located in Samut Prakarn and Samut Sakhon provinces. The plan has begun since last year and will carry forward till this year. “We plan to boost our production capacity from 12,000 tonnes/year currently to 18,000 tonnes,” he said. The investment is in line with new plans to supply its products to Keells Food Products Plc in Sri Lanka and to meet the rapid demand growth within the country. This year the company has set its growth target at 15%.
| CPF to invest USD64m in IT
[05 January 2012] Charoen Pokphand Foods Pcl (CPF) will invest up to THB 2 billion (USD 64 million) in IT development over the next 10 years. According to CPF’s President and CEO Adirek Sripratak, the company already has a good IT system in place but it plans to develop software to meet the standard of CMMI ML5 of the Software Engineering Institute (SEI), USA. As the company is expanding its base and markets into more countries, Mr Adirek said that the production capacity must be up to standard and accepted by the new generation of consumers worldwide who use IT as a quality control tool. “Therefore the development of IT is an essential plan to make CPF a reputable ‘world kitchen’,” he said.
| China bans ractopamine
[05 January 2012] A statement released by China's Ministry of Industry and Information Technology (MIIT) in late December said that the country has banned the production and sale of ractopamine, a controversial feed additive used to promote lean meat growth in pigs. Jointly issued by six government agencies, including MIIT, MOA, MOC, MOH and the General Administration of Industry and Commerce (GAIC) and AQSIQ, the ban took effect on December 5 and came after a major pork contamination scandal hit China's largest meat processing company, prompting a national crackdown on the use of what is referred to as 'lean meat powder' which contains 10 kinds of chemicals such as clenbuterol and ractopamine.
| No bird flu cases in Malaysia
[05 January 2012] Malaysia’s Federation of Livestock Farmers’ Association of Malaysia (FLFAM) said there’s been no case of bird flu in the country. “Farmers are always on the alert while taking all the necessary precautions in their daily operations,” Ms Chua of FLFAM told Asian Agribusiness Media. The Veterinary Services Department said Malaysia has been bird flu-free since 2007. The department carried out 1,600 H5N1 tests on poultry samples in 2011 and all the results were negative. Malaysia is closely following developments in the region in the wake of media reports of an outbreak in Hong Kong.
| CP Malaysia to acquire MKB's agrifood business
[04 January 2012] MKH Bhd of Malaysia, which was formerly known as Metro Kajang Holdings Bhd has announced a proposed disposal of Makin Jernih Sdn Bhd and its subsidiaries, Chau Yang Farming Sdn Bhd (CYF), Tip Top Meat Sdn Bhd (TTM) and AA Meat Shop Sdn Bhd (AAM), to Charoen Pokphand Foods (Malaysia) Sdn Bhd for MYR 64 million (USD 21.4 million). The proposed disposal is in line with MKH Group's objective of disposing of its non-core businesses and focusing on its core businesses in property development, property investment, and construction and oil palm plantations. CYF is involved in livestock farming and oil palm cultivation, TTM in food processing and trading, and AAM in trading of food and meat-related products. The proposed disposal will enable the Group to raise proceeds for the repayment of bank borrowings and working capital, it said.
| TUF strengthens exports with PPC acquisition
[04 January 2012] Thai Union Frozen Products Plc (TUF), a manufacturer and exporter of canned and frozen seafood, has decided to purchase shares in Pakfood Plc (PPC), a seafood and ready-to-eat products manufacturer. Under the agreement, TUF will not acquire more than 40% or 12 million shares of PPC’s total common stock. TUF will submit a tender offer to the existing shareholders with payment in cash. According to Thiraphong Chansiri, TUF’s President, the alliance will strengthen TUF’s shrimp and ready-to-eat business especially in the export market. The transaction is expected to be completed by the second quarter of this year.
| Vinamilk's turnover reaches USD 1 billion
[04 January 2012] Vietnamese milk processor Vinamilk or Vietnam Dairy Products Joint Stock Company's turnover in 2011 hit USD 1 billion, a year earlier than its target to achieve this level of turnover in 2012 or the 35th anniversary of the company. Its exports in 2011 also hit a record of USD 130 million from shipping a variety of milk products to 15 countries. In 2012, Vinamilk hopes to boost its sales by 30% through diversifying its product lines to meet increasing consumer demand both in Vietnam and globally.
| Jollibee opens 30th store in Vietnam
[04 January 2012] Philippine fast food chain Jollibee has opened its 30th store in Vietnam in a move to expand its footprint in the country. Located in Hanoi, the new store serves its popular meals that include Chickenjoy, Yumburger, Jollibee Spaghetti and Ice Cream Floats. “We are excited to bring another Jollibee store and its world-class delicious food offerings to Hanoi. Being a family-oriented fast food chain, we will provide Vietnamese and Filipino families alike with an alternative venue to enjoy each other’s company over meal time,” said Jollibee's President Ernesto Tanmantiong. “Opening another store in Hanoi expands Jollibee’s footprint as it is now present in most major cities and provinces in Vietnam,” he added.
| San Miguel and PIC expand strategic partnership
[03 January 2012] Just two years after signing a six-year supply partnership agreement, San Miguel Foods Inc and PIC Philippines have inked a second genetic supply contract. The new agreement will cover the stocking and maintaining a new 2,500 sow GP unit growing to 5,000 sows. PIC, a subsidiary of UK-listed Genus PLC, is organising two Boeing 747 plane loads of GGPs and GPs from PIC Nucleus herds in North America to stock the first phase of the new facility.
| Foreign equity warned of low profits in China’s agriculture
[03 January 2012] Despite robust investments by foreign venture capital and private equity companies in China’s agricultural sector, analysts have warned that the relatively small profits, harsh weather and other risks could hinder their plans, according to the Third Agricultural Investment Summit held in Chengdu. Foreign companies began investing in China's agricultural industry five years ago and have invested USD1.76 billion with a focus on crop farming, pesticides, fertilizer and animal husbandry. Investments totaled USD 305 million in the sector in the first half this year.
| Brazil to expand pork exports to Asia
[03 January 2012] Brazil is currently negotiating the sanitation qualifications of Japan, South Korea, Canada, and the European Union, and is close to finishing the approval of pork slaughterhouses for the US market, said Pedro de Camargo Neto, president of Brazil's association for pork processors and exporters, Abipecs. This follows approval by China for imports from specific works last year.
| Yum lifts China operating profit by 15%
[30 December 2011] Yum! Inc, the US-based international restaurant group, has increased global earning by 13% lead by a 15% lift in operating profit in China. Yum reported sales growth in China of at least 13% and same-store sales growth of at least 5%. The company expects to face 6% inflation for commodity prices in China in 2012 and believes the cost of labour will rise in the “mid-teens”, potentially narrowing its profit margins next year. Despite this Yum expects to deliver at least 10% global earnings growth in 2012 which would mark its eleventh straight year of meeting or exceeding this annual growth targets.
| Hong Kong bird flu outbreak under control
[30 December 2011] Hong Kong authorities have been unable to find any further evidence of bird flu following the culling of 17,000 chickens and the suspension of live poultry imports for 21 days after three birds tested positive for the deadly H5N1 strain of bird flu virus. “At this stage, I can only say that we are safer than what we suspected earlier on,” said Dr York Chow, Hong Kong’s Secretary for Food and Health. “But the avian flu season, particularly for wild birds, is still going on, the chance of wild birds infecting chickens can happen anytime. So the vigilance in both local and mainland farms needs to be maintained.”
| Bunge acquires edible oils and fats business in India
[30 December 2011] Bunge India Private Ltd, a wholly owned subsidiary of global trading group Bunge Ltd plans to acquire the Punjab-based edible oils and fats business of Amrit Banaspati Co Ltd. Christopher White, CEO, Bunge Asia, said, “This acquisition underscores Bunge’s long-term commitment to growing our consumer food business in India. It enables us to expand our distribution reach, manufacturing base and brand portfolio to serve a growing customer base.”
| Swine-to-human transmission of flu may be increasing
[30 December 2011] Swine-to-human transmission of flu viruses, while still rare, appears to have increased in frequency in the US during 2011, according to the Center for Disease Control and Prevention. Since 2005, the CDC reported only 35 cases of apparent swine-to-human transmissions of influenza however, from August 17 to December 23, 2011, the CDC received reports of 12 human infections with influenza A (H3N2)v viruses that have elements of the H1N1 viruses identified as the culprits in the flu outbreak in 2009. The case of a swine-industry employee in Indiana “highlights the risk for interspecies influenza transmission in occupational settings where humans are exposed to swine,” the agency said and underscores the importance of proper hygiene in the industry.
| Asians still prefer to eat out
[29 December 2011] Before shopping and surfing the web, Singaporeans, South Koreans, Taiwanese and Vietnamese choose eating out as their number one pastime, a MasterCard Survey on Consumer Purchasing revealed. In terms of preferred dining outlets, some 90% of Singaporeans picked the food courts and hawker centres as their top choice for eating out. Quick service or fast-food restaurants (71%), mid-range family restaurants and cafes (68%), and food courts (66%) came up as the most popular dining outlets visited by respondents across Asia Pacific in the past six months. In terms of the frequency of visit, though, the most favoured were food courts, seeing an average of six visits a month by those respondents across Asia Pacific who had visited a food court in the last six months. Topping the list were the Singaporean (16 times a month), Malaysian and Hong Kong (9 times each) and China (8 times) respondents.
| Santori falls short with cattle imports
[29 December 2011] Indonesian cattle importer PT Santosa Agrindo (Santori) will reach only 70% of its import target or 70,000 heads of cattle, less than last year’s import of 86,000 heads. The subsidiary of PT Japfa Comfeed Indonesia said the drop was because of the Australian government’s policy which banned imports for three months this year. Santori, which captures 20% of the domestic imported cattle market, has two cattle breeding centres in Lampung and Probolinggo, East Java, with 10,000 and 3,000 heads capacity, respectively. It also operates a 104,000-head-capacity slaughterhouse in Serang, West Java.
| Japan lifts ban on poultry from North Carolina
[29 December 2011] Japan has lifted a ban on imports of poultry originating in North Carolina that stemmed from concerns over low-pathogenic avian influenza in that state. Japan will now accept poultry slaughtered in North Carolina after 21 December, 2011. Japan and Russia halted poultry imports from North Carolina earlier this year after initial tests in a single flock of turkeys in North Carolina were positive for low-pathogenic avian influenza. Russia lifted its ban in June.
| Chinese-owned poultry plant starts production in Iowa
[29 December 2011] Iowa-based Cedar River Poultry has hired about 60 people to work in a local processing plant that will process about 50,000 spent hens a day and ship them to Asia. Cedar River Poultry is owned by two Chinese businessmen, one of whom also owns the meat wholesaler Charles Austin Ltd in Chicago. The plant is capable of processing up to 100,000 birds daily in one shift and the company may add further processing to its business within a few years as well.
| TFG expects revenue up 46% in 2011
[28 December 2011] Thai Foods Group (TFG) expects its revenue in 2011 to increase 46% to THB 22 billion (USD 709m) and plans to spend THB 5 billion (USD161m) to double capacity of its poultry breeder farms to two million DOC/week and build a new 200,000 bird/day processing plant. Dr Chaisaks Boonprasopthanachote, TFG's CEO said the jump in revenue was a result of expanding sales of fresh chicken. TFG's production facilities were not affected by floods that hit the country in November 2011.
| Indian banks should boost lending to agro-processing sector
[28 December 2011] Indian banks should give priority to loans to the food processing industry to ease financial constraints that have hindered growth of the sector in India. The Parliamentary Standing Committee on Commerce stated that financial support through low cost interest rates, high leverage and centralised policy would boost exports. “Government needs to draft policy in terms of availability of adequate finance, development of efficacious local market with right policies and inputs and clear division of products in terms of domestic consumption and exports,” it said.
| Soy protein processing emerges in China
[28 December 2011] Processing soybean protein has become an emerging business in China with exports of the product accounting for half of the traded world volume. Liu Denggao, Vice President of China's Soybean Association said that momentum behind the fast development of China's soybean industry in the past 10 years was the need for healthy and nutritious food. "Featuring non-GMO and high protein level, Chinese soybean protein products are expected to gain popularity in the international market and attract more overseas investment; but we need to strive on innovation," he added.
| South Korea to help Southeast Asia flight FMD
[28 December 2011] South Korea will spend USD 2.61 million in the next four years to help Southeast Asian countries fight foot-and-mouth disease (FMD). Under a joint prevention program with the United Nations Food and Agriculture Organization, the money will focus on Vietnam, Laos and Cambodia. The move comes after South Korea's most recent FMD outbreak that was thought to have originated from Southeast Asia. "The program will also help understand outbreaks of foot-and-mouth disease in the Southeast Asian countries and through which channels it travels to South Korea, the ministry said.
| China's meat production drops
[23 December 2011] China's Ministry of Agriculture said yesterday that meat production this year is expected increase 0.3% to 79.5 million tonnes, lower than last year's 3.6% rise due to a decline in pork output this year. Pork accounts for about 65% of China's meat consumption. The ministry also expects China's egg production to grow 0.4% to 27.75 million tonnes and dairy production to rise 2.1% to 38.25 million tonnes. China produced 54.53 million tonnes of meat in the first nine months of the year, up 0.2%, the National Bureau of Statistics said earlier. Pork production in the January-September period fell 0.6% to 35.68 million tonnes.
| Thailand’s food prices to rise
[23 December 2011] Thailand’s food prices are expected to rise by the middle of next year. According to Suwit Kingkaew, Senior Vice President of CP All Plc, the operator of 7-Eleven convenience stores, the price of rice and livestock are projected to surge by the second half of next year. Part of reason is the floods that hit many provinces in the central region. Vatchari Vimooktayon, Director General of the Internal Trade Department, said that there will be a revision of the 41 items that are on the list of price-controlled items. The criteria are its necessity, manufacturing structure and problems related to specific items.
| Pig prices continue upward trend
[23 December 2011] The average farm-gate pig price stood at CNY 17/kg (USD 2.7/kg) in China during the week of December 12, up 3.8% from the previous week and 25% from the same period last year, according to Soozhu.com. The live pig price monitor service predicted the growth to quicken and the price is likely to hit a new high of CNY 18/kg due to “comparatively concentrated” holiday season starting with the Winter solstice, then Christmas, New Year and the Chinese Lunar New Year.
| Indian soybean production rises
[22 December 2011] Soybean production in India next year, which started in October 2011, could increase to 11 million tonnes, up from 9.8 million tonnes in the previous year, according to the US Department of Agriculture. It added that Indian soybean meal production could increase slightly next year to 7.68 million tonnes, up from 7.52 million tonnes in the previous year. Meanwhile, output of soybean oil in India could increase to 1.69 million tonnes in the year, up from 1.65 million tonnes a year earlier.
| Hong Kong raises bird flu alarm
[22 December 2011] Hong Kong authorities have culled 17,000 chickens and suspended live poultry imports for 21 days after three birds tested positive for the deadly H5N1 strain of bird flu virus. Health chief York Chow announced this after a dead chicken at the city's main wholesale market and two wild birds tested positive for the virus. Authorities raised the bird flu alert level to "serious" and suspended live poultry imports while they trace the origin of the infected chicken, meaning major disruptions to poultry supplies over the busy Christmas period.
| Fujian Sunner announces new development
[22 December 2011] China's Fujian Sunner has signed an agreement with the government of Pucheng County of Fujian province, to develop a project with supporting facilities there, which is designed to yield 120 million broiler chickens annually. Up to CNY 2.7 billion (USD 426 million) will be invested in the project, which will be completed in three years. Pucheng County will provide the land for the construction and operation of this project. Fujian Sunner said this is its first step to expand its business outside its base, and this will help enlarge the company's production size to a large extent.
| KFC overtakes Pizza Hut as Yum!'s largest brand in India
[22 December 2011] KFC has overtaken Pizza Hut as the largest-selling fast food chain of Yum! Restaurants’, riding on the country’s increasing appetite for chicken. McDonald's, domestic fried chicken chain Bangs and T.G.I. Friday's restaurant chain too have reported a spike in chicken sales this year, confirming the widening appeal of the meat as eating out becomes a habit across the country. "KFC is growing faster than Pizza Hut," claimed Sandeep Kataria, Chief Marketing Officer of Yum! Restaurants India, while McDonald's said the McSpicy chicken burger range is the fastest growing product across its 240 stores. Driving this chicken mania is a number of factors including rising number of nuclear families, youngsters staying away from home, travel, rising incomes, changing lifestyles and mall culture that has boosted accessibility, competition and innovation.
| Skylark builds new feedmill in Rajastan
[21 December 2011] Skylark Hatcheries, a major feed and poultry producer in north India, has built a new feedmill in Rajastan in a move to widen its reach across the northern regions of India. Dr Vikas Dhull, Skylark's Director, told Asian Agribusiness Media that the plant will be operational in April 2012. It will produce poultry feeds for farmers in the state. "The Rajasthan plant will have a capacity of 500 tonnes/day with the majority of milling equipment sourced from Buhler," said Dr Vikas. Along with this Skylark is also building silos with a combined capacity of 10,000 tonnes to stock corn for use at the plant.
| Vietnam beefs up monitoring of meat trade
[21 December 2011] Vietnam is beefing up monitoring of animal slaughtering and meat imports to ensure that beef, chicken and meat to be consumed during the Vietnamese New Year is safe. Agriculture Minister Cao Duc Phat has instructed concerned authorities to tighten control of meat imports and sales of rotten meats and offal, either imported or produced locally. To ensure sufficient supplies of meat during the New Year, Vietnam has decided to allow imports of chicken legs and wings, but has banned imports of offal that fail to indicate production and expiry dates.
| Indonesia lowers beef imports
[21 December 2011] The Indonesian Government has lowered its import quota for beef although demand in 2012 is expected to rise to 484,000 tonnes from 413,000 tonnes this year. The Government has marked 34,000 tonnes as its quota for beef imports and 283,000 as its import of cows. The total is equivalent to 85,000 tonnes of beef, substantially lower than this year’s 140,000. The Livestock and Animal Health Department of the Agriculture Ministry said that importers will be tightly selected. Thomas Sembiring, Executive Director of Indonesian Meat Importer Business Association, said that there will be a shortage that could cause loss for the meat processing industry.
| China to see new wave of mergers in f&b
[21 December 2011] Rising production costs is likely to hasten mergers and acquisitions with which one fifth of the world’s food and beverage manufacturers including China, expect to develop new businesses and expand profits, according to a report by world’s leading accounting, business advisory and risk management firm Grant Thornton. China’s food and beverage industry has been on the track of soaring mergers and acquisitions for the last two year. The company’s survey showed that in 2009 and 2010, the country’s M&A in the sector recorded 22 and 20 with respective total value of USD 514 million and USD 943 million. Grant Thornton China’s Chairman and CEO Xu Hua said, “These mergers and acquisition will strengthen competence and expand production scale for Chinese companies, enabling them to profit and deal with retailers in a more flexible manner.”
| Tianli sees revenue growth
[20 December 2011] China's Tianli Agritech Inc that's based in Wuhan, central China’s Hubei province, expects its 2011 revenue and net income to range at around USD 28.5 – 29.5 million and USD 8.2 – 8.8 million respectively. Revenue consists of sales of breeder hogs, market hogs and sales from the company's on-going retail operations in cooperation with An Pu Luo Foods. Through this cooperation the Company sells refrigerated pork products to 45 supermarkets in greater Wuhan, including Wal-Mart and other major retailers. Ms Hanying Li , Chairwoman and CEO of Tianli said, "Retail sales and profits have added to our revenue and earnings streams as anticipated and we expect this segment of our business to grow meaningfully in 2012 as we introduce our Black Hog meat into our sales channels.”
| India restricts use of AGPs
[20 December 2011] India's Ministry of Health will strictly impose the withdrawal period of antibiotic growth promoters (AGPs) used in animal feed to ensure that meat, milk, eggs and seafood are free from antibiotic residues. The Ministry recently launched a regulation requiring that all AGPs be removed from the diet before harvest at a certain period, seven days for eggs and milk, and 28 days for other poultry species. The AGPs withdrawal period for aquaculture is more complicated with more parameters required. The new AGPs withdrawal rule is being drafted in response to the EU's request as India is a major exporter of seafood to this market. The Indian government is also concerned over antibiotic resistance that is increasingly rampant in India.
| KFC India eyes 500 restaurants by 2015
[20 December 2011] Riding on the growth of the middle class in India, KFC plans to have 500 stores by 2015, mostly built in smaller cities. “We are growing at a CAGR (compound annual growth rate) of 70%,” said Dhruv Kaul, KFC India’s Marketing Director. Currently it has 150-plus quick service restaurants in about 30 cities. “We’ll mainly expand within the metros but also in cities like Durgapur, Calicut, Kochi and other towns. The reception we are receiving in new towns is encouraging,” Kaul said. This year there has been a series of launches that included popcorn chicken, cappuccino, crushers, vegetarian and chicken rissoles and fiery grilled chicken.
| Thailand to monitor illegal rice imports
[20 December 2011] Thai authorities will closely monitor illegal imports of rice that are aimed at exploiting the government’s rice mortgage scheme. Apichart Jongsakul, head of the Office of Agriculture Economy, said there have been reports of increasing illegal imports of rice into the country in order to enter the mortgage scheme in which the government will guarantee the harvest at THB 15,000 (USD 480) a tonne for white rice and THB 20,000 (USD 639) for fragrant rice. Currently the price of rice in neighbouring countries is cheaper and this has prompted illegal imports.
| CPF to increase its pack-brand products
[19 December 2011] Charoen Pokphand Foods (CPF) will focus more on pack-brand goods using its CP logo in a bid to make CP a global brand. Somsak Hongsrichinda, the company’s Acting Senior Vice President for modern trade, said that the company plans to increase the ratio of pack-brand goods to bulk traders from 10:90 to 30:70 in the next three years. It also plans to launch five stock-keeping units (SKUs) of chicken and six of pork products. He said the strategy is to make CP a global brand in the food segment. Currently the company’s fresh chicken and pork is sold through supermarkets, hypermarkets, butcher shops and products on the shelf.
| Evonik announces major investment in Singapore
[19 December 2011] Evonik is to build a new methionine production complex for roughly EUR 500 million (USD 651.8 million) in Singapore. The new production plant for amino acid methionine will have a 150,000 metric tonnes annual capacity and start-up is scheduled for 2014. The investment will strengthen Evonik's core business with essential amino acids for animal nutrition. The new construction and the expansion of the four existing methionine production plants will raise Evonik's total annual capacity for this amino acid to 580,000 metric tonnes beginning in 2014—an increase of more than 60% in just five years. "Methionine is one of our core businesses, which we're now strengthening considerably in the Asian growth market by making this major investment. This also should bring us closer to our customers in Asia and makes us a solid, reliable, long-term partner," explained Klaus Engel, CEO of Evonik Industries.
| Vietnam to expand modern retail channels
[19 December 2011] Vietnam plans to expand its modern retail distribution system by twofold to 40% of the total retail trade by 2020, according to Deputy Minister of Industry and Trade Ho Thi Kim. She said currently the modern retail distribution channels accounted for only 20% of the total retail trade, including food, hardware, appliances and others. The rest is sold at traditional markets. Statistics from the ministry showed that the country now has more than 8,500 traditional markets, 615 supermarkets and 102 commercial centres. “The strategy would focus on developing the distribution system nationwide, creating favourable conditions to develop businesses in all economic sectors, while providing support for small and medium-sized enterprises,” she said.
| Pakistan and Thailand to collaborate on livestock production
[19 December 2011] Pakistan and Thailand can boost collaboration in the livestock and poultry industry in the form of halal meat preparation and exchange of human resources, according to Pakistan's Ambassador to Thailand Sohali Mahmood. He said Thailand’s biggest halal meat producer was interested in investing in farms, processing units and slaughterhouses in Pakistan. Collaboration with the company could lead to development of halal food production and an export hub in the country. He added that Thai investment would open a new avenue of employment.
| Thailand to address raw imports with EU again
[16 December 2011] Thailand will send a document to the European Union by the end of this month to confirm that the quality of Thai poultry export has been raised to a higher standard so that it will consider resuming poultry import from Thailand. Chairman of the Broiler Raisers for Exporting Association and Saha Farm President Panya Chotitawan, led representatives of Thai farmers and live poultry importers from the EU, in a meeting with Deputy Prime Minister and Commerce Minister Kittirat Na Ranong earlier this week. Mr Panya said he was assured by the EU importers that they did not want to suspend the import of live chicken and chicken products from Thailand since no new cases of bird flu have been reported in the country. The EU will reconsider the import of live chicken in February next year. If its ban on Thai chicken import is lifted, Thailand will likely resume chicken export to the EU by July next year.
| Sojitz buys 10% share in Cambodian feedmill
[16 December 2011] Japanese trading firm Sojitz Corporation has acquired a 10% stake in Sichuan New Hope Agribusiness (Cambodia), a feedmiller in Cambodia owned by China's New Hope Group. Costing USD 6 million, the plant is located in Phnom Penh Special Economic Zone in capital Phnom Penh. It has been operational since May 2011 and has a capacity of 200,000 tonnes/year. Sojitz earlier formed a joint-venture with Kyodo Shiryo Co to build a feedmill in Vietnam. They have set up Kyodo Sojitz Feed Co to operate the plant in which Sojitz has a 51% stake.
| Pollo Tropical eyes Vietnam
[16 December 2011] US grilled chicken chain Pollo Tropical is eyeing Vietnam as its first Asian country to venture into. J. Marc Mushkin, Senior Vice President of International Development of Pollo Tropical, said Vietnam has one of the highest rates of chicken consumption in the world. This appealing potential has led Pollo Tropical to venture into the Vietnamese market. “We have chains in eight countries, but Vietnam is the first Asian country,” he added.
| China ready to fine-tune food safety regulations
[16 December 2011] In response to mounting social concerns over food safety, China’s Ministry of Health will refine regulatory administration pertaining to food safety and help consumers better understand the national food safety standard, said the ministry’s spokesman Deng Haihua at a press conference this week. He said the ministry’s focus so far has been on framing food safety standards, and screening and assessing the food safety risk. “There are many different standards in place but before the food safety law is put in place, an integrated national food safety standard will be released by combining various standards,” he added.
| Vietnam targets USD 10 billion from seafood exports
[15 December 2011] Vietnam targets an export turnover of USD 10 billion by 2020 from seafood, transforming the country into one of largest seafood traders in the world. The Vietnam Association of Seafood Exporters and Producers say the target is largely based on the industry’s 15-20% annual growth rate over the past decade, the value of which has grown from USD 2 billion in 2002 to USD 6 billion in 2011. To reach its target, the industry needs to overcome challenges from shortage of raw material for processing, while promoting product quality, food hygiene and safety, competitive ability and the development of the export market, the association said.
| FDI in food processing drops 32% in India
[15 December 2011] Foreign direct investment (FDI) in the food processing sector declined 32% to USD 188.67 million in 2010-11, according to Minister of State for Food Processing Industries Charan Das Mahant. In the previous fiscal year, he said the sector attracted USD 278.89 million in FDI in food processing. FDI in food processing is important to India as it brings state-of-the-art technology and best managerial practices while providing better access to foreign technology to the domestic industry.
| China maintains ban on milk powder from Japan
[15 December 2011] China's ban on milk powder from Japan will remain after radioactive cesium was found in baby formula produced by a major Japanese food company, according to the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). The ban was imposed in April last year after the outbreak of foot-and-mouth disease was confirmed in cattle in Japan and extended due to radiation leaks from the nuclear power plants caused by the March earthquake. The AQSIQ said the move aimed to ease concerns of Chinese customers after the Japanese firm Meiji Co announced radioactive cesium of up to 30.8 becquerels per kilogram had been found in infant formula produced and sold by the company. Meanwhile Meiji's Chinese unit said infant formula sold in China does not pose a safety risk as it is produced in Australia. AQSIQ said the company's products made in Australia must be inspected before entering China and carry labels showing the origin of production.
| Saha Farm expands into layer operations
[14 December 2011] Saha Farm Co of Thailand is planning on expanding into layer operations. The company hopes to start with production of 100,000 eggs/day by next year. According to Chairman Panya Chotitawan, the company will continue to increase its capacity to reach one million layers in future. By diversifying into layer operations, Saha Farm hopes to stabilise and lower market prices.
| Pussalla wins national excellence award
[14 December 2011] Sri Lankan meat processor Pussalla Meat Products won first place of the National Excellence Awards 2011 in the livestock and fisheries sector from the National Chamber of Commerce of Sri Lanka. The award is presented annually to business enterprises that have demonstrated excellence in business, whilst contributing to the economic progress of the country. From a small broiler processor on the outskirts of Colombo two decades ago, Pussalla is now one of the largest integrated broiler producers in Sri Lanka, operating GP, PS and commercial broiler farms, broiler processing and meat retailing business.
| McCain Foods boosts Indian frozen food market
[14 December 2011] McCain Foods India, wholly-owned subsidiary of McCain Foods Canada, is to drive the growth of the frozen food market in India through affordability, variety and availability of products. Managing Director K S Narayanan said McCain Foods India is working with customers and keeping track of the evolving market trends based on the assessed requirements. "We attempt to develop customised products and solutions through our research and development arm, which is continuously engaged in trials of new products offerings in the market," he said.
| Pig prices start to rally in China
[14 December 2011] By the end of the week of December 5, live pig prices in China saw a continued uptrend. Industry experts expect the rally to last until the Lunar New Year. According to Soozhu.com, this is due mainly to rising demand and stable feed costs. The average farm-gate pig price stood at CNY 16.4/kg (USD2.6) during the week, up nearly 20% year-on-year. Soozhu analyst Feng Yonghui expects the price to peak at CNY 18/kg (USD2.9) during the festive season.
| Indian milk processor to produce mozzarella cheese
[13 December 2011] Indian milk processor Lakshya Food (India) Limited is improving its milk quality exclusively for producing mozzarella cheese for the Indian market and export. Managing Director Baljit Singh Redhu told Asian Agribusiness Media that Laksya Food is working with its Italian partner to import superior genetics of the murah buffalo breed for its integrated milk operations in Haryana, India. He said the genetics from Italy would improve milk quality of the local buffalos to be suitable for producing high quality mozzarella cheese.
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| Japfa invests to boost feed production
[13 December 2011] Japfa Comfeed Indonesia plans to set aside IDR 900 billion (USD 99 million) next year (28% more than this year), to boost its production, said Putut Djagiri, Senior Vice President. Mr Putut said that 90% of its capex next year will be used to expand production capacity at its chicken feed mills in Medan and Padang in Sumatra. It will also use the funds to convert its feed mills in Surabaya, East Java. The company will convert its fish feed factory to one producing chicken feed. He said the company’s revamped plants in Medan and Padang would each add 96,000 tonnes of feed annually. The Surabaya plant would add 120,000 tonnes of feed a year. Japfa’s existing plants will make an estimated total of 2.69 million tonnes of animal feed this year. Next year, the company wants to produce 3 million tonnes of animal feed.
| Thai Luxe acquires seafood processor
[13 December 2011] Thailand's listed aqua feed manufacturer Thai Luxe Enterprises Plc has acquired a majority stake in Thai seafood processor SMP Food Products Co, making the latter a wholly owned subsidiary. Thai Luxe's shareholders approved the acquisition for the total amount of 4,650,000 shares at the price per share of THB 5.50 (USD 0.17), with the total value of THB 25,575,000 (USD 082 million). Anurot Seneepakonkai, Thai Luxe's Managing Director, said the acquisition is to vertically integrate in order to add value and diversify its source of income. Thai Luxe's sales in 2010 amounted to THB 2.9 billion (USD 96 million), 87% of which came from shrimp and fish feed sales.
| SMFI sees higher chicken yakitori exports
[13 December 2011] San Miguel Food Inc sees a 50% hike in its chicken yakitori exports in 2012 as Japan’s demand for the product increases. SMFI Vice President and General Manager Rita Imelda Palabyab said the country’s demand for yakitori is on the rise as the number of restaurants serving the dish in Japan is increasing. She said for 2011, SMFI’s shipment of yakitori chicken to Japan rose 75%. Ms Palabyab also added that while Japan will remain the company’s biggest chicken export market, it is also looking at other Asian countries as well as the Middle East for its chicken products.
| Positive outlook for Philippines’ feed industry
[12 December 2011] The Philippines’ feed industry is expanding on the back of a fast growing population and increasing demand for consumption of livestock. At Livestock Philippines Expo 2011, Christian Quimbo, Chief Operating Officer at Innovative Animal Nutrition Philippines Inc (Biomin Phils), told Asian Agribusiness Media that the industry has been growing at 3-4% annually after the contraction caused by widespread of diseases several years back. Nielou Romero, Marketing Manager at Van Aarsen, shared a similar opinion saying the company’s sales this year has exceeded its target by 50% as there’s higher demand. “That means feed millers need better equipment to expand their capacity. And that’s why they are moving toward automation,” he said.
| Fish exporters stay shy of the EU
[12 December 2011] Most Malaysian seafood exporters prefer to sell to Asian countries like Japan, China, South Korea and Taiwan, Australia and the US – not to the EU – despite the lifting of the ban on Malaysian seafood to the EU in 2009. “The standards on bio-security and traceability are very high and local fishing vessels and aquaculture farms would need to make big investments to upgrade their facilities to enable them to comply with EU standards,” the Malaysia Shrimp Industry Association President Syed Omar Syed Jaafar told Asian Agribusiness Media. He said an average size farm with about 20 prawn-breeding ponds would require almost MYR 2 million (USD 0.6 million) to upgrade their facilities while a large fishing vessel would need roughly MYR 100,000 (USD 32,000) to have better features in place. Without collateral banks are not forthcoming with loans as the industry is deemed risky.
| DSM sets standard on egg quality in India
[12 December 2011] DSM Nutritional Products has set a new standard for quality eggs in India through the launch of OVN (Optimum Vitamin Nutrition) eggs. The company initiated the OVN concept to ensure that the animal receives vitamins and minerals at an optimal level for its growth and development. This has led to the production of OVN premixes for different farmed species such as layers. "When farmers feed OVN premixes to the layers, the optimum level of vitamins and minerals in the birds is reflected in the egg quality that is expressed through freshness, intense yolk colour and excellent albumen height," said Dr Sameer Sawant, AND Manager - South Asia of DSM.
| Imported food tested
[12 December 2011] Until August some 125,709 imported food have been tested by the Food Safety Information System of Malaysia, of the Ministry of Health. Of the amount, 9% were sent for analysis and 1.1% was found to have violated the Food Act 1983 and Food Regulations 1985. “We will continue to monitor local and imported food products to protect the health of consumers and will act against those who violate the regulations,” said Health Minister Datuk Seri Liow Tiong Lai.
| ISA Q. TAN reports from Livestock Phillipines 2011
[9 December 2011]
Livestock Philippines Expo 2011 holds inaugural show
The inaugural Livestock Philippines Expo 2011, an event focused on nutrition, health and production & the meat industry, opened yesterday in Pasay City, Philippines and will run until Saturday. Philippine Agriculture Secretary Proceso Alcala who officiated at the opening ceremony encouraged visitors and participants to take advantage of the learning and networking opportunities from the show, which has over 200 exhibitors from 23 countries. More than 5000 visitors from the livestock, poultry, aquaculture, feedmilling and allied industries are expected to attend the three-day event. The show is organised by UBM Malaysia Sdn Bhd and is being hosted by the Philippine Bureau of Animal Industry. UBM envisions positioning Livestock Philippines as a biennial event which will serve as a venue for livestock, poultry and animal producers especially in Asean, and in particular the Philippines, to exchange and upgrade knowledge and learn new developments aimed at improving animal production.
Big Dutchman sees further growth in Philippine market
As Philippine livestock and poultry producers move toward modernisation, Big Dutchman sees better growth opportunities in the Philippines. Mr Bartholomew Siu-Man Lo, Area Sales Manager of Big Dutchman Asia, said that the move by integrators requiring new contract growers to build modernised facilities has increased demand for their products. Similarly, new investors in animal production are more open to adopting new technology and are willing to invest in equipment that will help them achieve better production efficiencies. Mr Bartholomew said the company has seen growth in demand and is increasing its efforts in the country.
Lohmann relaunches in the Philippines
Lohmann Animal Health has relaunched in the Philippines, sporting a new logo and with the establishment of Lohmann Animal Health Phils Corp. Axel Foellmer, Lohmann Animal Health Sales Director Asean and Regional Managing Director said that the company will no longer have a nationwide distributor. Instead it has partnered with four new regional resellers who will allow it to have a wider reach in different parts of the country. Meanwhile from having no direct business with customers, Lohmann Animal Health Phils will now directly transact with the major integrators. The company is looking to launch new products, particularly feed additives in the country, while at the same time renewing product registration of its vaccines.
| Pig farmers’ pledge to deliver quality
[9 December 2011] The Federation of Livestock Farmers’ Association of Malaysia (FLFAM) has pledged not to sell low-quality or 'rubbish pork' with the handing over of a letter of commitment to the Agriculture and Agro-based Industries Ministry. The letter was signed by 98% of pig farmers. “The pig farmers want to gain the confidence of the consumer and ensure them that only quality pork is sold,” FLFAM pig unit Chairman Jeffrey Beh told Asian Agribusiness Media. “If any farmer is caught selling low quality pork the ministry can now take legal action against them,” he added. Six months ago the Malaysian Pork Sellers’ Association claimed 90% of pig farmers sell low quality pork. Since the issue was highlighted sales of pork-based products were on the decline. Currently livestock price for swine in Malaysia is MYR 8/kg (USD 2.80), up MYR 0.50 from a month ago.
| Marubeni sets up subsidiary in Ho Chi Minh City
[9 December 2011] Japanese trading firm Marubeni has established a subsidiary in Ho Chi Minh City to boost its activities in Vietnam. Named Marubeni Vietnam Co, the company is active in many fields including food, chemicals, pulp, energy, metals, mineral resources and machinery. It has also undertaken projects related to infrastructure such as power plants, communication networks and other factories. Apart from its main function of international trading, Marubeni Vietnam has also engaged in domestic business activities, including a plan to build a feedmill in Vietnam with Dong Nai Food Corp.
| India to triple processed food output
[8 December 2011] India plans to triple the size of the processed food sector by increasing the level of processing of perishables from 6% to 20%, value addition from 20% to 35% and share in global food trade from 1.5% to 3% by 2015. To realize the targets set for the growth of the food processing sector, the 11th Plan Schemes have been restructured with appropriate management/implementation arrangements in Public Private Partnership mode, with strong project implementation capabilities. The core elements of the strategy are better project selection, development and implementation, decentralized cluster based development, particularly for creation of infrastructure and fostering linkages to retail outlets, industry led capacity building and upgrading of standards, integrated food law and science based food standards.
| Salmonella found in imported pork variety meat
[8 December 2011] A report released by China’s Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said that it has found Salmonella in some pig heads imported from Denmark by a Henan-based meat trading company. The administration said it will undergo safe disposal of the contaminated pig heads. China imported 0.87 million tonnes of pork and pork variety meat during the first nine months of this year, up 44.6% year-on-year, with September import volume hitting a new record of 0.14 million tonnes. There has been a growing number of imports of unqualified pork variety meats during the period.
| Bangladesh promotes corn production
[8 December 2011] The government of Bangladesh will distribute incentive packages of hybrid corn seeds and fertiliser worth BDT 65 million (USD 0.84) to farmers to motivate them to grow corn in winter. Agriculture Minister Matia Chowdhury said 50,000 small and marginal farmers from shoal areas of 11 districts will receive the incentive. Each package includes 3kg of hybrid seeds and 50kg of fertiliser for cultivating. This is the first time the government is providing incentive for maize cultivation.
| Thailand’s inflation rises
[8 December 2011] The rise in food prices caused by severe floods pushed Thailand’s inflation to 4.19% year-on-year in November. Yanyong Phuangrach, the Commerce Permanent Secretary, said that prices of food and beverage rose by 10.21% year-on-year. The increase in meat, poultry and seafood was 10.8%, food ingredients 14.5%, fruits and vegetables 17%, ready meals 10.84% and eggs and dairy products 9.91%. Inflation for the entire 11 months rose by 3.83% year-on-year. The ministry believes purchasing power will drop as consumers will set aside money for home repairs.
| Lotteria to grow through franchising in Vietnam
[7 December 2011] South Korea's fast food chain Lotteria hopes to expand its presence in Vietnam through franchising, aiming to boost the number of its stores to 200 in the next five years and grow at 30-40% annually. It costs USD 250,000 to invest in a Lotteria store. Lotteria will give priority to superb locations as a prime decision in arranging the franchising deal. Lotteria is a successful fast food chain in Vietnam. As of November 2011, it had 100 stores in good locations in Hanoi and Ho Chi Minh City.
| India reverses decision on FDI in retail
[7 December 2011] The Indian government has suspended its decision to allow foreign retailers to own 51% in multi-brand retail stores due to opposition from various parties fearing that the move could force millions of mom-and-pop shop owners to close their business. The reversal, however, disappoints reform advocates such as the Indian Chambers of Commerce and Industry (FICCI) and food processors, saying that failure to boost foreign direct investment (FDI) and overhaul the retail infrastructure could raise inflation and ignite food price hike.
| China overhauls meat safety towards catering sector
[7 December 2011] The State Food and Drug Administration in Beijing recently launched a year-long campaign on meat safety for catering service providers across China. The notice released by the administration said that food safety watchdogs at all levels should keep a closer eye on fresh meat and meat product purchasing activities by this sector and they need to clarify responsible purchase. The overhaul, effective from December this year, has canteens at universities and construction sites, caterers for collective organization and central kitchens as its main focus because of the volume of meat they purchase.
| Thailand’s Burger King to expand
[7 December 2011] The Minor Food Group, Thailand’s local franchisee of Burger King, plans to expand its outlets to over 50 and double its revenue to THB 1 billion (USD 32.5 million) within the next five years. Currently there are 27 Burger King outlets in Thailand with a revenue of around THB 500 million (USD 16.25), according to John Heinecke, Vice President of Burger Thailand, a subsidiary of The Minor Food Group, which runs Burger King restaurants. He said the company plans to open three new burger restaurants next year in Bangkok and other provinces. The company also has plans for its other restaurant chain, Sizzler. It plans to open three more branches of Sizzler next year, which will add up to a total of 43 outlets.
| No price control for pork, chicken in the Philippines
[7 December 2011] Despite reports of a possible shortage of pork and chicken meat in the Philippines during the Christmas season, the Philippine Department of Agriculture (DA) has no plans to impose price controls on the commodities. Agriculture Assistant Secretary Salvador Salacup said that for now, the DA will let market forces set the price. He said a shortage is not likely as the DA will resume the release of veterinary quarantine clearances for imported meat, while local pork and poultry producers have assured the agency that there is enough supply not only for the coming Christmas season but even into the New Year.
| S. Khonkaen to expand abroad
[6 December 2011] S. Khonkaen Foods Plc, Thailand’s leading producer of Thai-style sausage and dried shredded pork, plans to expand its business both domestically and abroad. CEO Charoen Rujirasopon said that the company recently signed an MOU with Keells Food Products Plc, a subsidiary of John Keells Holdings which owns Sri Lanka’s Keells supermarket chain, for a distribution and joint venture agreement. Both companies also agreed to build a factory in Sri Lanka to produce Indian food. For domestic expansion, S. Khonkaen will invest in machinery and cold storage in Samut Sakhon and Samut Prakan provinces. Total investment should be around THB 80-130 million (USD 2.6-4.2 million).
| China’s grain output hits record high
[6 December 2011] China’s grain output this year climbed to a record high of 571.21 million tonnes, up 4.5% year-on-year, marking the eighth consecutive year of growth, according to a statement of the National Bureau of Statistics. Of the total, output of three major crops – corn, wheat and rice – hit 510 million tonnes this year. The latest figures echo an estimation made by vice minister of agriculture Chen Xiaohua, who predicted that the country's grain output will hit a record high of more than 550 million tonnes this year. However, experts warned that the growth of China's grain output may not continue next year due to the impact of climate change, limited farmland and technology restrictions.
| Pork and chicken producers say there is enough supply for the holidays
[6 December 2011] A claim by Philippine meat processors and importers that there will be a shortage of pork and chicken during the Christmas season has been refuted by producers. Pork producers said there is adequate hog production and in fact farm price of live hogs have gone down due to oversupply. National Federation of Hog Farmers Inc President Dr Zosimo de Leon said that there is no shortage of pork, but instead “there is a shortage of pork buyers.” The Philippine Association of Meat Processors Inc (PAMPI) and the Meat Importers and Traders Association (MITA) had earlier said the failure of the Agriculture Department to release import clearances for pork and chicken meat since November 3 will compromise the supply of meat during the holiday season. For his part, United Broiler Raisers Association Chairman Gregorio San Diego said the claims by PAMPI and MITA are “not true.”
| Nutreco completes acquisition of Shihai in China
[6 December 2011] Nutreco has successfully completed the acquisition of 100% of the shares in Zhuhai Shihai Feed Co. Ltd. (Shihai), a reputable and profitable fish and shrimp feed company in China. This acquisition will provide Skretting, the Nutreco fish feed business, with a production base in China, the world’s number 1 aquaculture feed market. The acquisition will capitalise on Nutreco’s leading fish feed positions by expanding in new regions and into feed for other species. Gaining USD 87 million in turnover in 2010, Shihai supplies a growing market and produced approximately 100,000 tonnes of fish and shrimp feed in the year. It has also commissioned a new feed plant with a capacity of approximately 150,000 tonnes.
| Rabobank predicts lower grain prices in 2012
[5 December 2011] Grain prices in 2012 are expected to weaken and this will level off food inflation, says a new report from Rabobank released last Friday. The dip in prices is due to larger harvests from South America to Eastern Europe. But the bank maintained that agricultural markets remain in a 'long-term bull run' as incomes rise and diets change in emerging markets. Even an economic slowdown will only modestly affect prices, the bank said. Rabobank’s base case of weak but positive economic growth would have little impact on food demand, other than consumers substituting red meat for cheaper chicken.
| Delisi targets premium cured ham market
[5 December 2011] China’s pig integrator Delisi Group which has geared up effort in modernizing dried and cured meat production at its headquarter in Shandong province, launched a new cured ham product recently. Bearing a premium brand called 'Paluosi', the product is expected to become a new growth point following the group’s success in promoting chilled pork and processed meat products. “We expect the launch of our new product to be a good start for us to enter into the premium meat market,” said Chairman, Zheng Heping. The cured ham is processed with advanced equipment from Italy. The new product is priced at CNY 500/kg (USD 78/kg), which is 20% lower than the imported cured ham. Targeting high end hotels and foreign-invested supermarkets, the first batch of some 5000 pieces will be put on the market in Beijing, Qingdao and Jinan this month.
| MOA approves more nucleus farms
[5 December 2011] China’s Ministry of Agriculture has enlisted 13 companies for the country’s swine genetic enhancement project. The companies include Liuma Pig Breeding Co Ltd, Beijing Swine Breeding Centre, Changzhou Kangle Animal Husbandry Co Ltd, Anhui Antai Breeding Co Ltd, Xiamen Guotao Breeding Co Ltd, Nucleus Farm of Hubei Animal Husbandry Bureau, Hubei Jinlin Nucleus Farm, Hunan Meishen Breeding Co Ltd, Guangdong Fengyuan Agriculture Co Ltd, Shantou Dexing Animal Husbandry Co Ltd, Guangxi Guining Breeding Co Ltd, Guangxi Yangxiang Animal Husbandry Co Ltd, Sichuan Tianzhao Animal Husbandry Technology Co Ltd. Launched in 2010, the genetic enhancement project has so far enlisted 37 nucleus farms and aims to have a total of 50 by 2012. The farms are required to have a minimum of either 600 sows or 300 boars.
| New mill for CP Malaysia’s growing operation
[2 December 2011] CP Malaysia expects work on its new mill in Tanjung Langsat, Johor, to be completed in the third quarter of 2012. The MYR 50 million (USD 15.6 million) facility will have a 180,000 tonnes/year capacity with the possibility to step-up production in future. “The new mill will supply feed to our farms, contract farmers and customers in the southern region,” President Prapoj Choakpichitchai told Asian Agribusiness Media. CP Malaysia currently has three mills in the country, in Penang, Port Klang and Morib. The new mill will incorporate new technology that would reduce its manpower needs.
| KFC Malaysia's earnings drop in Q3
[2 December 2011] KFC Holdings (Malaysia) Bhd reported a drop of 12.2% in its 2011 third quarter earnings to MYR 33.52 million (USD 10.67 million). The company’s revenue rose 10.5% to MYR 697.83 million (USD 222.10 million) while profit before tax (PBT) slid 13% to MYR 48.90 million (USD 15.56 million) year-on-year. While its Malaysian operations reported a PBT increase of 6.4% to MYR 148.60 million (USD 47.29 million), its Indian operations posted a loss of MYR 6.8 million (USD 2.16 million). For its Brunei operation, PBT declined to MYR 800,000 (USD 254, 615) while PBT for its Singapore operations increased to MYR 13.10 million (USD 4.17 million).
| Challenges aplenty for India's agrifood sector
[2 December 2011] While India’s economic growth is now projected to fall below 8% this year, its agri sector is forecasted to expand by 2.9%. Performance varies considerably among India’s food industries, reported US Grains Council consultant Amit Sachdev. Aquaculture, for example, increased production by 40 percent in 2010/11, and India may see its seafood exports increase as a result. India’s broiler industry is expanding production by 13-14% annually. The Indian food processing industry, expected to reach USD 320 billion in value by 2015, faces challenges from high packaging costs, consumer preference for fresh food and a lack of infrastructure. An additional challenge is the industry’s regulatory status; it does not qualify for agriculture’s priority lending program, and the industry faces high taxes that put processed food prices out of reach for many Indian consumers.
| India to restrict antibiotic use in feed
[1 December 2011] India is soon to introduce a law requiring livestock producers to strictly follow a withdrawal period in antibiotic use in feed in an attempt to make meat, milk and eggs free from antibiotic residue. Amit Sachdev, India Representative of the US Grains Council told Asian Agribusiness Media that the law will take effect within the next few months. The Ministry of Health proposed the law in response to concerns over antibiotic resistance. He said the law would force feed producers in India to find alternatives to antibiotic growth promoters and livestock producers. At the same time, livestock producers, especially small-scale farmers will have to follow the withdrawal period of drugs used in feed as prescribed by veterinarians.
| Skylark to venture into chicken further processing
[1 December 2011] Skylark Hatcheries, a major poultry integrator in northern India, plans to enter into the value-added, processed chicken market in response to growing demand for ready-to-eat and ready-to-cook products in the country. Jagbir S. Dhull, Managing Director of Skylark, told Asian Agribusiness Media, that demand for such products in India is growing at 20%/year. Their market is likely to be boosted by the rapid expansion of large retailers that are well equipped with cold chain facilities. "We will build a further processing plant in 2012 to make products such as sausages, burger patties, nuggets and kebabs. We will produce these products in big volume with the capacity of the plant initially set at five tonnes/day," he said.
| Central to expand mini supermarkets
[1 December 2011] Central Food Retail Co, the operator of Tops Supermarket, plans to invest THB 1 billion (USD 32 million) to boost the number of Tops Daily markets to 200 next year. Chiranun Poopat, Senior Vice President said Central aims to add the number of mini supermarkets to the existing 70 shops. She said the company expects its markets to reach 219 this year. Of the total, 118 branches are Tops Daily while the rest are Tops Market, Tops Supermarket, Central Food Hall or Central Wine Cellar. It also plans to increase the number of stores to 421 by the end of next year.
| New measures needed to help Thai rice exporters
[1 December 2011] The Thai government will need proper measures to support rice exporters as the higher price has made Thai rice less attractive in the global market. Niwat Sutemechaikal, Deputy Permanent Secretary of the Agriculture and Cooperatives Ministry, said that the mortgage scheme for paddy rice production proposed by the new government has reduced Thai rice’s competitiveness as it has brought up the price. Hence, he said the government should consider appropriate measures in the form of tax reduction and export facilitation to reduce logistics costs. He said the government should ensure that the farmers, millers, exporters and consumers move forward together.
| Suguna to build ready meal plant
[30 November 2011] Indian poultry integrator Suguna Poultry Farm plans to build a processing plant in Bangalore to produce ready-to-eat chicken products. K. Ravindran, Suguna's Director (Sales and Marketing), said the company will invest INR 250 million (USD 4.7 million) in building the plant. It is expected to be operational in 1.5-2 years. He said it will have a capacity of 300 tonnes/year and will generate items such as nuggets, fried chicken and biryani.
| China’s pig prices close to breakeven point
[30 November 2011] The average price of live pig in China fell at a relatively lower pace last week compared to the previous week and reached CNY 16.2/kg (USD 2.5). According to Feng Yonghui, an analyst with Soozhu.com, an online pig market monitoring service, profitability for finisher pig farmers closed to a breakeven point with the price ratio of pork and grain sliding to 7.3:1. The average feeding margin was CNY 420/pig (USD 69.90) with year-on-year growth declining to 38%. Mr Feng expects pork prices to rebound as slaughterhouses attempt to prepare for the upcoming festival season by hoarding pork.
| Philippines lifts ban on poultry imports from the Netherlands
[30 November 2011] The Philippines has lifted its ban on imports of poultry products from the province of Gelderland, The Netherlands after the area was reported as free of avian influenza. Agriculture Secretary Proceso Alcala ordered the lifting of the ban saying that “based on the evaluation of the BAI, the risk of contamination from importing poultry and poultry products from Gelderland, Netherlands, is negligible.” The ban was imposed in May this year after Gelderland reported the incidence of H7N7 low pathogenic avian influenza in the province.
| SHL Agro Foods expands processing plant
[29 November 2011] Indian meat processor SHL Agro Foods Ltd will invest INR 200 million (USD 3.8 million) to relocate and expand its chicken processing plant in India's northern city of Chandigarh. Managing Director Surjit Singh told Asian Agribusiness Media that the company has acquired a plot of about 20,000 square meters outside Chandigarh and construction of the plant would start in the next few months. The capacity of the plant will be expanded from 1000 birds/hour to 3000 birds/hour using equipment from Meyn of the Netherlands. Mr Singh said the expansion is aimed at exports to the Middle East as well as increasing chilled, portioned chicken sales under the 'Sagri’ brand in Delhi.
| CP Group’s Chairman awarded by Forbes
[29 November 2011] Dhanin Chearavanont, Chairman of the Charoen Pokphand Group, has been named Businessman of the Year 2011 by Forbes Asia. According to Forbes, the award was bestowed on Mr Dhanin because he has transformed the agri-business company and raised rural income. With USD 7.4 billion of his wealth, he has also been named the richest person in Thailand this year by the magazine. Today the group operates in 17 countries and exports to 40. The group’s key strategy ‘from farm to fork’ has doubled its annual revenue to USD 30 billion in the past four years.
| Corn demand growing in Asia
[29 November 2011] A delegation of US corn growers will visit Japan, China and Vietnam from today to December 9. The visit organised by the US Grains Council aims at developing an opportunity for two-way learning for US corn and processed corn products. Tom Sleight, vice president of operations at USGC said, “Japan is not only the largest US corn export customer but a mature market that may be in transition; whilst China is the number one growth market in Asia and the big variable in today’s world trade and Vietnam is still an ‘infant’ market but it is a good representative of the demand developing in Southeast Asia, where the US has struggled to gain a foothold.”
| Thai exports of farm and food products grow
[29 November 2011] Thailand’s exports of farm and agro-industrial products in October recorded a growth of 35.8% to USD 3.63 billion despite the floods. Exports of tapioca products expanded by 44.2%, food 28.9% and rubber 60%. The floods slowed export performance of the manufacturing sectors, dampening growth to only 0.3% year-on-year to USD 17.2 billion, the lowest in two years. Deputy Director-general of the Department of Export Promotion, Malee Choklumlerd, expects exports to expand by only 10% next year from the previous forecast of 15% as they are likely to shrink in the first half of the year.
| Chearavanont family transfer control of CP Pokphand to CPF
[28 November 2011] Thailand's Chearavanont family will transfer control of Hong Kong-listed CP Pokphand Co Ltd from their private interests to their Bangkok-listed Charoen Pokphand Foods Pcl (CPF). A mixture of shares and cash worth USD 2.1 billon will be paid by CPF for 74% of the shares of CPP in a deal that is scheduled to be completed by the end of March 2012. CPP operates feed milling and feed additive manufacturing businesses in China and recently purchased CP Vietnam from CPF. A full report will appear in the next issue of Asian agriFOOD Magazine.
| Philippines eyes South Korea for pork exports
[28 November 2011] The Philippines is looking to export its pork products to South Korea, said Philippine Agriculture Secretary Proceso Alcala following his meeting with South Korea's Minister of Agriculture, Forestry, Fisheries and Food Suh Kyu Yong last week. Mr Alcala said he has requested Mr Yong to send a team to inspect the country’s pork products, now that the country has been declared free of FMD. He added that the Philippines has been “seeking access to South Korea’s fresh market even before the Philippines was accredited as an FMD-free country without vaccination.” The South Korean government had already sent a team earlier to conduct a final analysis on Philippine poultry products.
| Thai chicken exports to meet target
[28 November 2011] Exports of Thai chicken products are likely to meet the earlier target as the flood crisis has caused minor damage to broiler farms. According to Trissadee Chaosuancharoen, Director-General of the Livestock Development Department, only 1% of broiler farms in Thailand were affected as 80% are built on higher ground or hills in Lopburi Province which was not affected by the floods. However, the floods in Ayutthaya and Pathumthani Provinces have affected six processing factories. This is likely to affect the total production capacity of chicken exports by 5.5%. Mr Trissadee expects production to resume soon and believes the country will meet the export target of 450,000 tonnes as earlier expected.
| Cargill completes acquisitions of Provimi
[28 November 2011] Cargill has completed the acquisition of Provimi, a global animal nutrition company for an enterprise value of USD 2.1 billion. The merger will bring together the complementary animal nutrition expertise and operations of Cargill and Provimi. Cargill’s expertise in compound feed, supply chain and risk management will come together with Provimi’s wide range of nutritional expertise, technology and portfolio of premix, additives and ingredients.
| India allows foreign retailers to own 51% share
[28 November 2011] India has approved 51% share ownership of foreign retailers in joint ventures in the country, saying this would create more jobs, lower food price and improve income for farmers. The approval was made on condition that retail stores are built in 53 cities with a population exceeds one million but the final decision in setting up the stores rests with state governments. The government claims that this policy would benefit farmers as foreign retailers have to source 30% of the produce from small-scale farmers. As half of the total investment has to be made to improve infrastructure such as warehousing, cold chain and logistics, this would create up to 10 million jobs and reduce wastage of agricultural produce.
| CHAKRIT RIDMONTRI reports from Poultry India 2011
[25 November 2011]
Skylark to launch broiler feeds in Jammu and Kashmir
Skylark Hatcheries, a major feed and broiler producer in north India, will launch its commercial broiler feeds in Jammu and Kashmir next week. Speaking on the sidelines of Poultry India 2011, Dr Vikas Dhull, Skylark's Director, said the company started commercial feed sales in 2011 and is expanding its market across the northern regions of India. He said Skylark is building a new feedmill with a 500 tonnes/day capacity in Rajasthan. It will be operational in April 2012.
Roxel's helps reduce labour
Roxell of Belgium is helping poultry breeders in India overcome the growing problem of labour shortage in inseminating poultry breeders artificially. Pradeep Kolte, Roxell's Area Sales Manager, said artificial insemination (AI) is no longer suitable for India as it is too labour intensive and presents a risk with disease transmission. "Sooner or later, Indian poultry breeders have to switch from cage rearing and AI to the floor system and natural insemination," he said. At the exhibition, Roxell put on show a new feed cone for its Kixoo pan designed for use with broiler breeders during the production stage. Besides efficiently preventing feed wastage, the new cone is easy to clean.
Jamesway appoints distributor for India
Jamesway Incubators from Canada has appointed Kishore Farm Equipment as its distributor in India. Both parties signed a distribution agreement just before Poultry India 2011. The company also appointed Prestige Feed & Ingredients as its distributor in Bangladesh and KPI in Sri Lanka. Jamesway is working to increase its presence in South Asia and promote its latest, most effective single stage incubation technology.
| Taiyang Poultry’s margin improves
[25 November 2011] Anhui Taiyang Poultry Co Inc, a vertically integrated duck breeder, processor and distributor, announced that gross profit for the first three quarters rose 5.5% to USD 6.5 million compared to the same period last year with gross margin improving to 27.9% from 20% a year ago. The company attributed the growth to an increase of 57.3% in revenue of its higher margin breeding Unit to USD 12.2 million from USD 7.7 million from a year ago. Mr Wu Qiyou, Chief Executive Officer and Chairman of Taiyang Poultry said, “This portion of our business accounted for 52.4% of total revenue during the 2011 period compared to 25.1% last year.”
| Thailand’s agricultural GDP drops
[25 November 2011] Thailand’s agricultural gross domestic product (GDP) is likely to expand by no more than 1% this year, a big slump from an earlier projection of 3-4% or USD 12.8 billion. Apichart Jongskul, Secretary-General of the Office of Agricultural Economics, said that the flood crisis is the major cause of the drop in agricultural products and outputs. Around 1.4 million farmers were affected by the severe floods costing more than USD 2.3 billion damages. Of total damages, 13.41 million were livestock. And among all crops, rice fields were seriously damaged. However, Mr Apichart said that the global prices of agricultural products are still high due to demand. This should raise next year’s agricultural GDP.
| Philippine meat professionals warn of meat shortage
[25 November 2011] Philippine meat processors and traders warned of a meat shortage in the Philippines during the Christmas season, a report by ABS-CBN said. The Philippine Association of Meat Processors Inc and the Meat Importers and Traders Association (MITA) said that since November 3, the Agriculture Department has not released import clearances for pork and chicken meat, thereby compromising the supply of meat products for the coming holiday season. MITA President Jesus Cham said that without the imports, local processor will compete with consumers for meat and this could lead to a 5-10% increase in prices of processed meat products by January.
| CHAKRIT RIDMONTRI reports from Poultry India 2011
[24 November 2011]
Poultry India 2011 expects more visitors
Poultry India 2011 the biggest and most widely acknowledged poultry event in the country opened yesterday Hyderabad, India, and will continue until Friday November 25. Nearly 180 exhibitors in all segments of the poultry industry from India are participating in the event. The number of visitors is expected to increase beyond the 15,000 registered at the previous show. Organised by the Indian Poultry Equipment Manufacturers Association, this year's event is happening at the Hyderabad International Trade Expositions (Hitex), Hyderabad.
Egg and chicken prices up in India
Egg prices in India have started to increase as winter approaches and the price of chicken is due to follow suit. The National Egg Coordination Committee (NECC) said eggs in Delhi now cost INR 3.12 apiece (USD 0.06) against INR 2.90 apiece (USD 0.05) a month earlier. NECC said egg price hike in the winter is common as consumers shift from vegetables to eggs. The Poultry Federation of India (PFI) said last week's drop in wholesale broiler price in Delhi was temporary. The price fell to INR 55/kg (USD 1.05), from INR 65/kg (USD 1.24) in the previous month.
Big Dutchman to establish India branch
Global farm equipment supplier Big Dutchman plans to set up a subsidiary in the country in early 2012 to strengthen its sales and technical services for its Indian customers. Bernd Meerpohl, Big Dutchman's Chairman of the Board of Management, told Asian Agribusiness Media on the sidelines of Poultry India 2011 exhibition in Hyderabad, that the new subsidiary in India would help Big Dutchman get closer to the Indian market and fine tune its products to match the needs of its customers. At Poultry India 2011, Big Dutchman put on show its broiler cage rearing and fully automatic breeder cages. Big Dutchman has also appointed Philip A Dye as Director Sales Asia.
Kemira appoints distributor for South India
Kemira, global supplier of organic acids for the feed and food industry, has appointed Sylon Biopharma as its distributor in south India. Han van der Broek, Sales & Marketing Manager Feed and Food, Asia Pacific, said Kemira is mapping out strategies to boost its sales in India with its range of newly developed organic acids. Kemira plans to widen its product reach to customers across India.
| Philippines targets poultry exports to South Korea
[24 November 2011] The Philippines is hoping to export chicken to South Korea within the first six month of 2011, Philippine Agriculture Secretary Proceso Alcala said during the Philippine-South Korea bilateral meeting on agriculture held in Manila on Monday. Mr Alcala said a team of South Korean government officials came to the Philippines in early November to conduct a risk analysis of Philippine poultry products. He has requested South Korean Agriculture Minister Suh Kyy Yong to fast track the final analysis on Philippine poultry products. Mr Alcala pointed out that the South Korean market presents huge opportunities for local poultry producers, adding that South Koreans prefer chicken from the Philippines because it is tastier.
| South Korea and US finalise FTA
[24 November 2011] South Korea has approved the Free Trade Agreement with the United States. A significant outcome would be that tariffs on US beef imported by Korea will drop from 40% to zero over 15 years, and duties on US pork, which range from 22.5- 25 %, will be phased out over two years starting January, 2014. The approval has been hailed by meat industry groups that predict that US beef exports to South Korea could double to USD 1.8 billion annually, while prospects for pork and poultry exports will also improve.
| Temasek backs New Hope agri fund
[23 November 2011] Singapore’s sovereign wealth fund Temasek Holdings has confirmed that it is one of the key investors in China’s largest animal feed producer New Hope Group’s USD 200 million overseas fund launched on November 21 in Beijing. Other investors include Archer Daniels Midland and Japan’s Mitsui and Co. The investment will focus on agricultural products and related businesses overseas and in China. New Hope recently set up an overseas investment centre in Singapore to organise its investments in Southeast Asia, where the company has more than 10 animal feed plants and poultry farms. It plans to double the number of plants it opens outside China to 8 each year. As of March 2011 Temasek’s net portfolio value stood at a record SGD 193 billion (USD 148 billion). China is its largest investment destination.
| Tianli registers 65% revenue growth in Q3
[23 November 2011] China's Tianli Agritech Inc, a leading producer of breeder and market hogs headquartered in Wuhan City has registered a 65% year-on-year growth in its Q3 revenue to USD 9.2 million due to higher selling prices and unit sales of breeder hogs and market hogs. Its market hog sales increased 88%, driven by a 58% increase in average price per hog. According to Tianli's Chairwoman and CEO, Ms Hanying Li , the strong Q3 results were driven by robust demand for pork in China . "Despite a shift toward market hogs this quarter, our sales and margins benefited from higher pricing. As we ramp capacity at our 10th farm, we expect continued growth in units and pricing for the remainder of 2011 and added revenue contributions from our AnPuluo Foods retail program," she said.
| High prices hurt Thai rice exports
[23 November 2011] Thai rice exports are facing obstacles due to the higher prices. According to Korbsook Iamsuri, President of the Thai Rice Exporters Association, exports of Thai rice to African markets have dropped by 70-80% from 3 million tonnes/year. He reasoned that Thai rice these days is competing with Indian rice which is USD 150-170 tonne cheaper. Exports to other countries including Indonesia, the Philippines, Bangladesh, and Iraq are also getting tougher because of the price. She said the outlook next year will depend on the government’s policy to promote exports.
| China-US make progress on US beef exports
[23 November 2011] The USDA has said that China's Ministry of Agriculture are finalising the framework of a five-year strategic plan focused on food security, food safety and sustainable agriculture. In recent discussions China and the US have made some progress on the issues of opening China to US beef exports and removing avian-influenza-related poultry bans. China is presently closed to all US beef although it made a unilateral announcement a few years ago that it was opening to boneless US beef muscle cuts from cattle under 30 months of age. That was never implemented because the two countries could not reach agreement on a workable trade protocol, according to US Meat Export Federation spokesman Joe Schuele.
| Betagro plans for 3 million pigs a year
[22 November 2011] Thailand’s Betagro Group has set itself a five-year business plan to achieve an integrated breeding cycle including 140,000 great-grandparent pigs (GGP). These high-quality GGP stocks will allow the group to breed high-quality swine through grandparent (GP) and parent stock (PS). Part of the group’s THB 3 billion (USD 96.2 million) annual investment budget will go not only into pig-farm development but also pork products. A GGP farm is being constructed at its current complex in Lop Buri. This integrated farm has been designed to produce GGP, GP and PS and will be completed before the end of the year. By the end of the group's five-year plan in 2016, the company plans to set up at least eight pig farms. If the plan succeeds, this will allow the group to have a supply of 3 million pigs per year for its processing plants. The plan will also ensure 3,000 pigs per day or 100,000 per month for its plants.
| South Korea warns of new FMD case
[22 November 2011] South Korea has reported a suspected case of foot-and-mouth disease (FMD) at a farm in Cheongsong. The Ministry of Food, Agriculture, Forestry and Fisheries said that 16 pigs at the farm showed symptoms and government officials are conducting quarantine inspections at the site. If confirmed, it will be the first outbreak of FMD in seven months after the latest case occurred at a pig farm in Yeongcheon on April 20 this year. South Korea was forced to kill about 3.5 million livestock, mostly cow and pigs, last winter because of the country's severest outbreak of FMD.
| China's pig prices continue bearish trend
[22 November 2011] The average price of live pig in China last week continued its downward trend that started in mid September. It reached a new low of CNY 16/kg (USD 2.5), a decline of 15% compared to two months ago. The bearish trend is mainly because of sluggish pork demand for making dried and cured sausages in south China as a result of warm weather. Last week, of the 30 provinces that are closely watched prices in all except Hunan, had slipped. Leading the price fall were Guangdong, Shanxi, Zhejiang, Jiangxi, Gansu and Jilin.
| China's agri trade records double-digit growth
[22 November 2011] During the first nine months this year, China's agri-products trade registered USD 110.7 billion in value, up 28.5% compared to the same period last year. Of the total, exports were USD 43.5 billion, up 26.6% year-on-year, imports was USD 67.2 billion, up 29.8%. While import value of livestock and poultry products registered USD 9.7 billion, up 37.9% year-on-year, export value of that was USD 4.3 billion, up 26.7%. Aquatic products also saw double-digit growth, with export value of USD 12.4 billion year-on-year, up 30.6% and import value of USD 5.9 billion, up 22.8% year-on-year.
| China to receive first shipment of Brazilian pork
[21 November 2011] China is set to receive its first shipment of pork from Brazil later this month from Marfrig Foods. This follows an agreement reached between the Brazilian and Chinese presidents in April and represents a milestone for Brazil's pork industry, as it has entered the world's largest pork market. China and Hong Kong are together expected to become the second largest importer of Brazilian pork, by the end of this year.
| Bad chicken stirs food-safety action
[21 November 2011] Vietnam's Minister of Agriculture and Rural Development Cao Duc Phat has called for the completion of criteria for unprocessed food imports by the end of this month. The urgency was raised after it found more than 100 tonnes of spoiled frozen chicken feet imported from India. The meat also carried no details of production date, expiry date and origin. The spoiled meat was later carried out of the port without permission of the department. Mr Phat asked relevant bodies to crack down on those responsible.
| Tripura on fresh bird flu alert
[21 November 2011] Fears over the resurgence of the bird flu has led India's Tripura government to impose a ban on import of poultry birds, ducks and other poultry products from West Bengal and Assam, following the outbreak of avian influenza in neighbouring Assam and West Bengal. Four states - Tripura, Meghalaya, Mizoram and Assam, which shares 1,880-km border with Bangladesh, have been affected in the past forcing the authorities to cull thousands of birds and ducks besides destroying huge quantities of poultry products.
| Dip in US grain exports
[18 November 2011] The USDA has projected that the 2011/12 corn, soybean, and wheat exports will drop 15.7% from last year to 3.9 billion bushels. Third quarter 2011 corn, soybean, and wheat exports are down 16% from the same period in 2010. Demand for US grain and soybeans decreased because of higher US prices and increased competition from Russia and other major exporting countries. In addition, domestic use is projected at 13.9 bbu, a decrease of 1.3% from last year. Corn, soybean, and wheat production is projected to reach 17.4 bbu, a 3.5% decrease in production from last year.
| Philippine pig and chicken production up
[18 November 2011] Pig and chicken production in the Philippines posted gains of 1.64% and 4.31%, respectively in the first nine months of 2011, a report by the Bureau of Agricultural Statistics (BAS) showed. Pig production was estimated at 180,360 tonnes for the period, slightly higher than last year’s 178,440 tonnes. The BAS attributed the growth to improved prices which encouraged producers to dispose their pigs. Meanwhile, chicken production rose from 990,550 tonnes in the first nine months of 2010 to 1.03 million tonnes this year as demand for chicken from households and fast food chains increased. The BAS also noted an increase in stocking capacity as contract farmers increasingly begins to use ventilated housing systems. Egg production also posted a 3.52% growth thanks to improved laying efficiencies and expansion among commercial layer farms.
| New posting for Tyson India's CEO
[18 November 2011] Sadiq Malik, CEO of Godrej Tyson Foods has been reassigned to Tyson Foods Chinese chicken processing operations. "We are now hiring a professional with experience in the foods industry to take over the CEO mantle,” a member of the Board of Directors of Godrej Tyson told the Financial Chronicle. Malik was appointed CEO of the venture in September 2008 and successfully turned it into a profitable growing firm with a line of ready to eat products complementing its fresh processed chicken range.
| MPI chalks out expansion plans
[18 November 2011] Meat Products of India (MPI) that's owned by India's Kerala state has chalked out various expansion initiatives, which includes setting up an automated poultry processing plant; a bio waste disposal facility; a chilling and freezing plant and a modern pig rearing farm at a combined cost of nearly USD0.5 million. The new poultry processing plant which will be commissioned by the end of this month will have a capacity to process 250 birds an hour.
| Vietnam addresses disease again
[17 November 2011] Vietnam is likely to see the bird flu resurface later this year as the cold weather is favourable for the disease, said Hoang Van Nam, head of the Ministry of Agriculture and Rural Development’s Animal Health Department. Mr Nam said the current vaccine is suitable for bird flu strains in the country’s southern region but not for strains in central and northern region. Meanwhile, blue-ear disease has been identified in three southern provinces Long An, Tay Ninh and Tien Giang and the central province of Quang Nam, the department said.
| Cargill acquires shrimp feedmill in Vietnam
[17 November 2011] Cargill has entered into the shrimp feed business in Vietnam after completing an acquisition of shrimp feedmiller Higashimaru Vietnam Co. The acquisition will add to Cargill's existing feed portfolio that includes swine, poultry and fish feed. Cargill is making additional investments to the plant that is expected to start producing shrimp feed for commercial sales in the next 2-3 months. “Shrimp farming is a growing industry, and this mill is a good complement to our existing feed business in Vietnam. It allows Cargill to quickly enter the shrimp feed manufacturing market in Vietnam with significant capacity and to begin to service shrimp producers,” said Pedro A Curry, Cargill’s General Manager for Aquaculture in Vietnam.
| New feed and vet medicine distribution centre in China
[17 November 2011] A modern industrial park combining industry cluster district, grain and feed distribution and agricultural demonstration broke ground recently in Xingyang, in Henan province. Touted as the largest wholesale and logistics centre for feed and veterinary medicine in China, the park is divided into regions for oilseeds processing, feed milling, grains, logistics of grains, oilseeds and feed ingredients. The park, which costs about CNY 1.4 billion (USD 220 million), covers an area of 55 hectares.
| Germany to assist China on biogas energy
[17 November 2011] China will boost cooperation with Germany in harnessing renewable resources to meet its ultimate goal - making non-fossil energy 15% of China’s total energy consumption by 2020, according to China’s Vice Agriculture Minister Zhang Taolin. “The period for the Five Year Plan is key to developing biomass energy and reaching the target, while biogas will be a strategic focus,” he says at a seminar jointly organized by the Ministry of Agriculture and Germany’s Federal Ministry of Food, Agriculture and Consumer Protection in Beijing. Before signing a Memorandum of Understanding of Biogas Cooperation between China and Germany next year, the two countries will first set up a biogas research centre and take on biogas demonstration projects.
| Thailand to regain investor confidence
[16 November 2011] Thailand’s economic growth in 2012 will depend largely on how the government regains foreign investor confidence by assuring them of a better plan to cope with disasters in the future, according to Dhanin Chearavanont, the Chairman of the Charoen Pokphand Group. He is confident that the heavy post flood spending by both the public and private sector will boost the country’s economic growth. He also believes that the revived operations of affected industrial estates could also push next year’s growth to as high as 7%, which was close to last year’s figure. He suggested that the government send out teams to attract more foreign investors particularly from China.
| Vietnam could dominate white fillet fish supply
[16 November 2011] Few countries, most probably none, will be able to compete with Vietnam for the supply of white fillet fish to the international market claimed Philippe Serene, a consultant speaking recently at Vietstock. Vietnam’s advantages include the large volumes of water available, the optimum water temperature, exceptional native genetics, favourable river bank conditions and a reserve of farmers with more than 50 years experience, he said.
| China’s animal health sector to reach USD6b
[16 November 2011] It is expected that China’s animal health industry will generate an annual production value of CNY 40.2 billion (USD 6.3 billion) by 2012, according to a report from China’s Feed Industry Association. The second largest animal health producer after the United States has benefited and will maintain growth momentum due to rising domestic livestock production and growing concerns over animal diseases such as foot-and-mouth disease, avian influenza, blue ear disease and mad cow disease. Revenue of the sector was CNY 23.6 billion (USD 3.7 billion) in 2009 with an annual average growth of 15% from 2005. The association expects that veterinary biologics, whose sales account for 20% of the total revenue, will enjoy increasing share in the next few years as China boosts mandatory vaccination.
| Anil Limited's profit jumps 29% in Q2
[16 November 2011] Indian agrifood firm Anil Limited reported a 29% increase in its net profit to INR 117.4 million (USD 2.32) in the second quarter ending September 30, 2011. The net sales in the second quarter at INR 1.5 billion (USD 31.54 million) was 28% higher than the corresponding quarter last year. For the first six months ended September 30, Anil’s profit after tax stood at INR 231.4 million (USD 4.6 million), a 29% increase year-on-year. The net sales in the period increased 27% year-on-year to INR 2.85 billion (USD 56.44 million). "The investments that we have made in R&D to constantly develop new products for our end-user industries, combined with our customer-focused approach have resulted in growth," said Amol S. Sheth, Chairman and MD of Anil Ltd.
| Indian venture cap invests in VKS Farms
[15 November 2011] Indian venture cap company Ventureast has invested INR 250 million (USD 4.9 million) in broiler integrator VKS Farms Pvt Ltd in a move to expand its partner's integrated broiler operations and processed chicken retail stores, targeting a fourfold increase in the next three years. The fund will help VKS' processed chicken retail chain 'Dola' to expand from 23 to 75 branches by March 2012. “The investment by Ventureast will fund the completion of the company’s backward integration and expansion of its meat-retailing initiative. These will enable VKS to deliver hygienic, processed meats to consumers,” said A Sivakumar, Founder & Managing Director of VKS Farms.
| Godrej Tyson Foods upgrades processing plants
[15 November 2011] Godrej Tyson Foods, a joint-venture between India's Godrej Agrovet and US Tyson Foods, plans to spend INR 400 million (USD 7.9 Million) to upgrade its two processing plants in Karnataka and Maharashtra. Managing Director B.S. Yadav said the budget would be spent on increasing production capacity and other utilities, such as the cold chain system. Once completed in six months, the capacity in primary processing of Godrej Tyson will increase by 60% from the current capacity of 50,000 birds/day and 25,000 birds/day at each plant.
| Investment potential in China’s catering sector
[15 November 2011] Deloitte China's 2011 Analysis Report says China’s catering sector is moving towards franchise, refinement and flow management and is becoming the target of venture capital and private equity. It says that catering has become the third largest industry in China with total revenue of CNY 1.76 trillion (USD 270 billion). The global auditing service provider expects the figure to continue to grow. Under the spotlight for investment is the booming restaurant franchise and logistics segment as a result of diversified consumption on rising economy. Restaurants with hotpot, western cuisine, Chinese cuisine and leisure foods are highly rated for investors together with cold chain logistics companies that provide low-temperature transportation conditions and service to reduce waste.
| Thai government to assist affected rice growers
[15 November 2011] Thailand’s Rice Department has decided to distribute 72,100 tonnes of rice seeds to farmers affected by the recent severe flooding in Thailand. Chairit Damrongkiat, the Rice Department’s Director-General, said that the government will distribute 10 kg of free rice seeds per rai to affected farmers. The total rice seeds are worth THB 1.72 billion (USD 55.4 million). Mr Chairit said that the distribution will start this month until next July. The first allocation of 33,166 tonnes will be for planting after the floodwater subsides. The remaining 38,934 tonnes will be used for the main crop in 2012. The latest report of the Agricultural Extension Department said that 9 million rai of rice crops nationwide have been damaged by the floods during the past three months.
| CPF’s net profit up 19% in Q3
[14 November 2011] Charoen Pokphand Foods Plc (CPF)’s net profit in the third quarter jumped by 19% year-on-year to THB 5 billion (USD 162 million) and 4% quarter-on-quarter. Exports, higher meat prices, and foreign operations were the reasons for the rise in sales for the first nine months to THB 153 billion (USD 5 billion). According to Adirek Sripratak, President and Chief Executive, the ongoing floods is unlikely to affect CPF’s operations this year which will grow by 10-15% from THB 189 billion (USD 6.13 billion) last year. However, the group will focus on investment and revenue from foreign operations over the next few years as the flooding is likely to impact the Thai economy and domestic purchasing power. Though CPF’s farms and production plans were not affected by the flooding, the company has closed 15% of its retail units including CP Fresh Mart and Five Star Chicken kiosks.
| MOC endorses Yum’s offer for Little Sheep
[14 November 2011] US-based operator of fast food restaurants Yum! Brands Inc (Yum) has obtained clearance from China's Ministry of Commerce to acquire a further 66.05% stake in Hong Kong-listed Little Sheep Group Ltd. The deal will increase Yum's holding in Little Sheep to about 93.2%, the remaining stake will be held by the co-founders of Little Sheep, Zhang Gang and Chen Hongkai. Yum said it would take over the management and operation of Little Sheep when all conditions are fulfilled and the share acquisition plan is implemented. Industry analysts said the deal would give Little Sheep improved international competitiveness and help the company expand its presence in the global market and bring better management experience to other companies. Little Sheep posted a revenue of CNY 1.9 billion (USD 299 million) in 2010, up 22.6% year-on-year.
| China revamps feed and feed additive regulations
[14 November 2011] China's State Council recently approved the revised draft of the Feed & Feed Additive Regulations, with which local governments will have to take on responsibility for indefinite supervision over the illegal use of feed additives and substandard feed quality. Severe punishment will be implemented for violations of the regulations and for local government’s lack of supervision. Over the past few years problems have kept emerging in the feed market, such as illegal use of additives, weak quality control in feed production and light punishment of offenders.
| Philippine government cool to duty free corn imports
[14 November 2011] Despite calls by feedmillers and hog producers for duty free importation of corn, the Philippine government is not likely to recommend zero-tariff corn imports. Department of Agriculture (DA) Secretary Proceso Alcala said that despite the consecutive typhoons that ravaged the country in late September and early October this year, a bumper harvest for corn is still expected. Both the Philippine Association of Feedmillers Inc and the Pork Producers Federation of the Philippines had called on the DA for zero tariff importation of corn, amid fears of higher corn prices and lower quality corn. But Mr Alcala said that quality corn is available, adding that hog producers and feedmillers can also use as a substitute the 400,000 tonnes of feed wheat imports due to arrive this month.
| TUF’s net profit jumps
[14 November 2011] Thai Union Frozen Products Plc (TUF) which manufactures and exports canned and frozen seafood products, reported a big jump in its third quarter net profit of 91% year-on-year to THB 1.56 billion (USD 50.82 million). The record sales and net profit was a result of the consolidation of MW Brands Holdings SAS that the company acquired last year. TUF President Thiraphong Chansiri said that sales in the third quarter rose significantly by 50% year-on-year in US dollar terms to USD 831 million and increased by 44% in Thai baht.
| CHAKRIT RIDMONTRI reports from Vietstock 2011
[11 November 2011]
Austfeed builds new poultry breeder farm
Vietnamese feedmiller Austfeed Vietnam Co has diversified into the poultry breeding business and is building its first poultry breeder farm that will supply broiler and layer DOC to farmers in the northern region of Vietnam. Austfeed's CEO Dao Minh Luong told Asian Agribusiness Media that the farm will stock 100,000 broiler PS from Ross and 30,000 Isa Brown layer breeders. The construction of the farm, located in the northern province of Hua Binh, has started and is scheduled for completion in early 2012. The farm will start producing DOC in July 2012. Mr Luong said the poultry breeder farm along with its new pig breeding farm being built in Hung Yen province is a stepping in transforming Austfeed into a food company.
Ba Huan to produce layer DOC
Vietnamese egg packer Ba Huan plans to produce layer DOC to support expansion of its commercial layer operations and step up control over its entire egg supply chain. Ba Huan's Project Manager told Asian Agribusiness Media that the company plans to double egg production at its own layer farms in South Vietnam. These farms currently produce 250,000 eggs/day or 25% of what it packs and supplies to Ho Chi Minh City daily. The construction of the breeder farm and the new commercial layer farm will start in December and the company is looking for a layer breed for its PS operations. He said the DOC produced from its own PS operations will initially be used internally and subsequently supplied to its allied farms that supply eggs to the company.
| Filipinos assured of enough food for Christmas season
[11 November 2011] Philippine Agriculture Secretary Proceso Alcala assured Filipinos that there is enough rice, chicken, pork and other basic food commodities for the coming holiday season, despite the strong typhoons that have hit the country and damaged farms. Mr Alcala pointed out that his agency has allotted over PHP 1 billion (USD 23.1 million) to assist typhoon-affected farmers, and pointed out that the current government is on track for food security targets.
| China to import 2.5 m tonnes of pork in 2012
[11 November 2011] China’s gap between pork supply and demand in 2012 could be between 2 and 2.5 million tonnes. This year some 1.1 to 1.4 million tonnes of pork products will be imported by the country, at least 25% more than the previous year, said Alltech’s founder and President Dr Pearse Lyons quoting a Rabobank report. According to Dr Lyons the animal health company has been growing at a rate of 20% year-on-year for three decades and this year it expects a global revenue of USD 700 million. Some 10% of this will come from China. “Our target is USD 4 billion by 2015, with USD 1 billion from China,” he added. Alltech plans to invest USD 9.5 million in its facility in Tianjin this year.
| CHAKRIT RIDMONTRI reports from Vietstock 2011
[10 November 2011]
Japfa Comfeed receives best breeder farm award
Japfa Comfeed Vietnam's broiler GP farm was recognised as the best poultry breeder farm in Vietnam at the Vietstock 2011 Expo & Forum that is being held in Ho Chi Minh City. The farm was awarded for its leadership in developing the poultry industry in Vietnam through its expertise in management, application of modern technology and excellence in productivity. Vice Minister of Agriculture Diep Kinh Tan presented the award to Adi Purnomo, Deputy General Director of Japfa Comfeed Vietnam at the opening ceremony of the event being held from November 9-11 at the Saigon Exhibition and Convention Center in Ho Chi Minh City. Along with Japfa Comfeed, CP Vietnam Livestock Corp was awarded the best feedmill, Emivest Vietnam was awarded the best broiler farm and Proconco was awarded for the best cattle feed producer.
Muyang targets USD15m sales in Vietnam
China's feedmilling equipment supplier Muyang targets to generate USD 15 million in sales in Vietnam in 2012. Speaking at Vietstock 2011 Expo & Forum, Mani Qian, General Manager of Muyang said Vietnam is one of the fastest growing markets for Muyang. It enjoys a 40% share in the milling equipment market in the country. Over the last one year, Muyang completed two installations of 20 tonnes/hour feed production lines in northern Vietnam. One is at Thai Way's feedmill (formerly named 'Damach') in Hanam province and the other at Thanh Hoa Agro in Thanh Hoa province. Muyang will also install a 30 tonne/hour feed production line at a feedmill of Tien Dai Phat Co. The machine for this plant has been shipped to Vietnam and is on display at Muyang's booth at Vietstock 2011.
| Prantalay to meet export target
[10 November 2011] Prantalay Marketing Co, a Thai frozen seafood producers, is confident that its exports will meet or even exceed the earlier forecast of THB 8.4 billion (USD 274 million) this year. According to Anurat Khokasai, the company’s Marketing and Chief Operating Officer, exports could reach THB 8.5 billion (USD 277 million) this year. Next year, it expects sales to grow by 10%. Given the concerns over the floods hitting Samut Sakhon province where the plants are located, the company has prepared a depot and cold storage in a neighbouring province. Mr Anurat said that the company has sped up operations to meet year-end orders. “So far supplies of shrimp mainly from the southern and the eastern regions have not been disrupted,” he said.
| Corn price unchanged on news of lower yield
[10 November 2011] December corn futures were unchanged at about USD 6.60 per bushel at midday yesterday on the Chicago Board of Trade despite the USDA's announcement that the nation’s corn fields yielded the least per acre in eight years, underscoring how tight supplies remain for the world’s primary feed grain. USDA forecast corn production for 2011-12 at 123 million bushels lower, and the yield 1.4 billion bushels per acre below last month. At 146.7 bushels per acre, this year’s yield would be the lowest since 2003-04, USDA said. Projected U.S. ending stocks were lowered 23 million bushels. “No matter how bullish the report could have been today, the grain market will be facing severe headwinds,” said Sterling Smith, market analyst at Country Hedging, a brokerage in Minnesota.
| Farm produce prices fall for third week
[10 November 2011] Farm produce prices in China continued to fall for a third week, according to a report released by the Ministry of Commerce. The report attributed the continuous drop in farm produce prices to an increase in market supply, due mainly to seasonal factors and government-led improvements in the country's distribution system. In the week ending 30 October, the wholesale prices of eight types of seafood products saw an average decline of 1% and the prices of pork and eggs fell 1% and 0.6% week-on-week, respectively. Pork prices have dropped 4.7% since mid-September, the report said. The price of chicken declined by just 0.1%, while that of beef and mutton posted a 0.5% increase during the week.
| New Hope’s capital reform aims to focus on livestock business
[9 November 2011] Capital reform by New Hope Group, one of China’s leading agribusinesses is set to place more emphasis on their livestock business. A capital reorganisation in October, which was completed through replacing, purchasing and selling assets, will spin off its dairy and real estate business. Meanwhile, the group will transform four companies namely Liuhe Group, Liuhe Shareholding Co Ltd, New Hope Animal Husbandry Co Ltd, Feng Lan Tech Co Ltd into its wholly-owned subsidiaries. The group also says it will separate its business in North China, South China and overseas markets in an effort to streamline its business portfolio in these regions.
| Thai chicken meat exports booked
[9 November 2011] Foreign importers have placed forward orders for Thai chicken meat till the third quarter of next year for fear of delivery disruptions. According to Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association, foreign importers particularly Japan and EU, have made advanced orders of chicken meat on fears that the floods could hinder delivery. He said though most broiler farms have not been affected, buyers are concerned about logistics and shipment delays. Export prices for chicken meat products to Japan and EU have risen. Last month, the prices for Japan increased to USD 5,000 a tonnes and the prices for EU reached USD 4,000.
| Seafood industry should focus on species
[9 November 2011] Southeast Asian seafood companies find it tough to succeed because the industry is fragmented. There is no single species which thrives in the region. This makes it tough for multinational animal health companies to tailor-make solutions for the industry, Alltech’s Dr Fuci Guo told Asian Agribusiness Media on the sidelines of its 24th Asia-Pacific Lecture Tour 2011. He opined that the industry should focus on species and added that marine fish such as seabass, grouper, and cobia will mark the future. Also holding back the industry is the use of ‘trash fish’, or fish of low nutrient value. He added that the industry can take off if companies use commercial diets. “The industry must regulate itself to cross over to commercial feed,” the Southeast Asia Aquaculture Manager said in Kuala Lumpur yesterday. On the issue of affordability, Dr Guo said: “The maths will prove that commercial feed is more economical. The feed millers are on standby. They are finding it hard to manufacture in small volumes. This is why commercial feed is expensive. But if they were to increase their production, the price of feed will come down.”
| Tighter inspection for Thai seafood exporters
[9 November 2011] Thai shrimp exporters are facing tougher quality inspections by importing countries who currently are concerned about possible diseases caused by the severe floods. According to Panisuan Jamnarnwej, President of the Thai Frozen Foods Association, though there are still no outbreaks, quality inspections have become much tighter for shipments to the US. The flood crisis has now reached the Samut Sakhon province where several key seafood processors have their operations.
| Food Security on WTO’s agenda
[9 November 2011] Food security will be a major issue on the agenda for trade ministers during the World Trade Organisation (WTO)’s 8th Ministerial Conference which will be held in Geneva during December 15-18. Srirat Rastapana, Director-General of the Trade Negotiations Department, said this year the trade ministers are concerned about rising food prices which have mostly been driven by natural disasters in food-producing countries this year. She said the floods in Thailand are another example. The country is a major global food supplier and flooding has destroyed more than 10 million rai of rice fields and million rai of farmland during the past months. The Food and Agriculture Organisation of the United Nations has forecast that prices of rice and other commodities could rise by 10% next year as a result of severe flooding in Thailand and other countries in Southeast Asia.
| DaChan Food’s turnover rises 16%
[8 November 2011] DaChan Food’s total turnover reached CNY 8.06 billion (USD 12.7 million) during the first nine months of this year, up 16% compared to the same period last year. The company attributed the growth to surging demand for meat and feed as a result of rising income, rising prices for pork and other meats due to inflationary pressure in the third quarter of 2011. The company expects that rising household income, increasingly diversified consumption patterns and the culture of dining out will boost market demand for chicken meat products and related processed food. Furthermore, DaChan continued to promote its second generation safety code, which has been well-received by customers and has enhanced their confidence in the company’s products.
| TUF’s sales up 40%
[8 November 2011] Thai Union Frozen (TUF) has seen a 40% jump in its sales in recent weeks as a result of rising demand for canned products in the domestic market. According to President Thiraphong Chansiri, canned products are among the best selling items in tough times. The floods in central Thailand have induced consumers to stock up on long shelf life food products. The company has attempted to increase its production capacity to meet rapid increase in domestic demand. But the main challenge has been the disruption to the supply chain and logistics nationwide. “Right now we have to follow up closely with our suppliers especially those in high risk areas and expand our reach in other less risky zones,” Mr Thiraphong told Asian Agribusiness Media. He continued that although TUF's facilities are safe, they are likely to encounter the risk of being shut down if employees are not able to travel to work.
| 13.3 million livestock dead in Thai floods
[8 November 2011] Thailand's Ministry of Agriculture and Cooperatives has reported an estimated losses of 13.3 million of livestock in the ongoing floods that have swept through central Thailand. As of end October, a total of 162,180 livestock farmers were affected and 13.3 million livestock were damaged. Of the total, 12.82 million were poultry, 254,706 were cattle and cows, and 189,904 were pigs. Estimated 194,012 fish farms were affected and about 11 million rai of plantation area were damaged. The government has approved an initial budget of THB 3.645 billion (USD 119.27 million) to three key departments including the Department of Agricultural Extension, Livestock Department and Fisheries Department.
| Venky's profit down 33% in Q2
[8 November 2011] Venky's (India) Ltd, the listed subsidiary of India's poultry conglomerate VH Group, reported a 32% decline in net profit to INR 145.3 million (USD 2.9 million) in the second quarter, ending September 2011, on top of net sales of INR 2414 million (USD 48.2 million), an 18% increase year-on-year. In the first half of the 2011-2012 fiscal year, its profit dropped 52.7% to INR 294.5 million (USD 5.8 million) on top of net sales of INR 4725.2 million (USD 94.4 million), a 13% increase year-on-year. The company said during the quarter, the poultry and poultry products segment registered lower profits due to high cost of feed ingredients and lower realisations from sales of day old chicks and live birds.
| Vietnam's vegetable oil production up 52.5%
[8 November 2011] Turnover of Vietnam's vegetable oil industry during January to October 2011 increased 52.5% to USD 939 million year-on-year, reported the Vietnam Vegetable Oils Industry Corp. It said the country produced 528,000 tonnes of vegetable oils in the period or a 10% increase year-on-year. This is higher than the annual production target of 81% of the country's demand.
| Ag commodity prices to remain high
[4 November 2011] The UN’s Food and Agriculture Organisation has warned that agricultural commodities prices are expected to remain at high levels well into 2012. The organisation said prices would continue to be extremely volatile, fluctuating on moves in the equity and energy markets."Letting international markets continue in their present state, volatile and unpredictable, will only aggravate an already grim outlook for world food security,” it said. Although food prices have eased from this year’s highs, thanks to increased production and economic uncertainty, the FAO’s food price index for October was still 5% higher compared with the previous year. The global food import bill was set to reach a record USD 1,290 billion in 2011, up 21% from 2010, due to rising spending on grain-based products and vegetable oils.
| Retail sales in Vietnam boosted as price falls
[4 November 2011] Retail sales in Vietnam in October 2011 increased 1.92% from the previous month to USD 8.56 billion following a decline in consumer price index (CPI), said the General Statistics Office. It said falling CPI resulted in lower price of consumer goods and thus boosted retail sales value. October 2011 was the third consecutive month that the CPI growth rate went down to 0.36% year-on-year, the lowest since July 2010. October’s figure lifted the total retail sales value of goods and services in the first 10 months of the year to USD 75.48 billion, up 23.1% year-on-year.
| India poised for growth
[4 November 2011] Even with a slowdown, India’s growth is likely to outstrip many other nations’ this year. Analysts expect to see it hover around 8% reported US Grains Council Consultant Amit Sachdev. The International Monetary Fund now pegs Indian growth at 7.8% for 2011/2012, citing challenges from high inflation and higher interest rates, which could dampen demand. In the agricultural sector, India’s government is trying to boost production, especially the output of oilseeds and pulses, and scientists at the Indian Council of Agricultural Research are concentrating especially on developing crop varieties that require less water.
| Indian food inflation up 12.2%
[4 November 2011] Food inflation in India increased sharply in the week ended October 22, 2011 at 12.21%, the highest in nine months, due to the surge in prices of pulses, vegetables, milk and poultry. Officials said inflation based on the wholesale price index was recorded at 9.72% in September 2011. The Reserve Bank of India increased interest rates 13 times since 2010, but could not curb the price hike. However, it expects that the inflation would begin to fall from December 2011.
| China’s broiler meat output to rise 5%
[3 November 2011] Growth in broiler productin may outpace all other meats in China in 2011 as it is the least affected by high feed costs, said a USDA report. Total broiler meat production in 2011 is expected to rise 5% and another 5% in 2012 to 13.8 million tonnes thanks to considerably higher pork prices in 2011 combined with lower than expected broiler meat imports in 2012. The report estimated China’s total meat production in 2012 to increase 3% from 2011. Of the total, beef is estimated to account for 7%, pork 63%, sheep meat 6% and poultry meat 23% total. The report also said pork production in 2012 is estimated to increase 4% driven by high prices and a resumption of production subsidies.
| VH Group to expand into 25 countries
[3 November 2011] Indian poultry conglomerate VH Group plans to expand into 25 new markets outside India, including the UK. It will offer its range of animal health and hygiene products, feed and fast food to these markets. The UK will be the first international target for its fast food chain Venky's XPRS with London figuring as the first city to see the Indian fast food store open there.
| Philippine feedmillers ask for corn imports
[3 November 2011] The Philippine Association of Feed Millers Inc (PAFMI) has requested the Department of Agriculture to approve the importation of 100,000 tonnes of yellow corn in the first three months of 2012 to buffer the country’s corn supply. In a letter to Agriculture Secretary Proceso Alcala, PAFMI President Norman Ramos said that the typhoons that hit the country in September and October this year has damaged corn crops, affecting quality and pushing up local prices. Mr Ramos also noted that corn farmers might delay planting following the typhoons. He pointed out that the importation will help “complement the current supply of local corn” and keep prices at reasonable levels, adding that the imports would account for only 13% of the industry’s total requirement for the first quarter and should not adversely affect demand and price of local corn.
| Canadian supplier to process raw materials in Vietnam
[3 November 2011] Canadian seafood supplier High Liner Foods is looking for Vietnamese processors to provide primary processing for raw materials it uses in making value-added products. Vietnam Association of Seafood Exporters and Processors said High Liner wants to contract seafood processors in Vietnam with capacities of 6000-7000 tonnes/year to head-off cod, imported by the group from Russia. After processing, cod products will be shipped to High Liner's plant in Canada for further processing into value added products for exports to North America and Europe.
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