TOP STORIES . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29 April 2017
|Indonesia’s animal feed consumption to reach 27.6mt in 2020|
[28 April 2017] In the last seven years Indonesia’s animal feed industry grew at 10-12%, according to Desianto Budi Utomo, General Chairman of The Indonesian Feed Producers Association (GPMT). The growth was consistent with the growing number of poultry breeding farms. Therefore, more feed was needed and industry players responded by increasing the capacity of their existing feedmills, as well as setting up new feedmills. “In 2020, animal feed consumption in Indonesia is estimated to reach 27.6 million tonnes,” said Dr Utomo. This year, the positive trend will continue. Some feed companies have started operations of new feedmills, while others are constructing new facilities. GPMT has estimated that the country’s animal feed industry this year may grow at 6-7%, motivated by increasing consumption of animal protein.
|Entobel’s insect feed plant to come on stream early next year|
[28 April 2017] Insect-based feed ingredient producer Entobel is building its first production plant in Vietnam. The plant, which will be the first of its kind in Asia in terms of capacity and products, will be able to produce 1000 tonnes of insect meal per year. It will come on stream early next year. Co-founder Gaetan Crielaard told Asian Agribiz the company has started trials with shrimp and fish, and is currently registering its products in Vietnam. “Our two-year-old demonstration plant in Vietnam can produce 200kg of larvae insect per day. The new plant will enable us to commercially produce insect meal. By 2025, we aim to produce 100,000 tonnes of insect meal per year for the region,” he said.
|Philippines to import 7000 tonnes of pork|
[28 April 2017] Philippine Agriculture Secretary Emmanuel Piñol has approved the importation of 7000 tonnes of pork under the Minimum Access Volume to address the continuing rise in pork prices. He said that despite the hog raisers’ pledge to control the price of live pigs, prices continue to go up. As of April 24, live pig price in Luzon ranged from USD 2.31-2.71/kg, while data from the Philippine Statistics Authority showed retail prices of pork in Metro Manila, the country’s biggest pork market, range from USD 4.02-5.02/kg during the same period.
|China’s Q1 pork imports maintain momentum|
[28 April 2017] China’s pork imports continued to grow significantly in Q1 2017, after hitting a record high in the previous year. Data from China Customs shows that the country imported 346,151 tonnes of pork during the quarter, up 21% from a year earlier. Meanwhile, imports of beef, mutton and frozen chicken rose 15.3%, 12.1% and 2.9% respectively to 160,082 tonnes, 71,547 tonnes and 102,038 tonnes. According to China’s National Bureau of Statistics, the domestic meat output totaled 22.49 million tonnes in Q1, up 0.2%, while pork alone also rose 0.2% to 14.68 million tonnes.
|CP Indonesia ready to expand 7-Eleven business in Indonesia|
[28 April 2017] Charoen Pokphand (CP) Indonesia is ready to acquire the 7-Eleven franchise in Indonesia for USD 75 million. Tjiu Thomas Effendy, CP Indonesia President Director said the acquisition is awaiting approval of the shareholder of the convenience store chain Modern International, and is expected to go through by June. Chandra Wibawa, Modern International Director confirmed that the business of 7-Eleven has been suffering losses. In 2016, Modern International closed 25 stores – as of September 2016, the company ran a total of 166 stores, mostly in Jakarta. If the acquisition is successful, Mr Effendy said CP Indonesia has plans to lift it out of its losses. To encourage expansion, he said the company wants to run a partnership model. The store expansion will include other regions in Java Island.
|Vietnam submits plan to develop shrimp industry|
[28 April 2017] Vietnam’s Ministry of Agriculture and Rural Development has submitted an action plan for the development of the shrimp industry through 2025. The plan hopes to turn the industry into a key sector with sustainable development that is adaptable to climate change and friendly to the environment. By 2025 the ministry will offer a variety of shrimp that grow quickly and are free of disease. Research work will also go into shrimp feed production. With this, the shrimp industry is expected to gain USD 4.5-5 billion in export value and record an annual average growth of 9.5-12% by 2020. By 2025, the country is expected to have a hi-tech shrimp industry and large-scale eco-shrimp farming areas.
ASIAN AGRIBIZ PIG FEED QUALITY CONFERENCE 2017
Ho Chi Minh City, Vietnam
[27 April 2017]
The second day of Asian Agribiz’s 2017 Pig Feed Quality Conference tackled the topic of reducing the use of in-feed antibiotics and how to manage low protein diets. The topics presented and questions raised pointed to a healthy exchange of knowledge between the presenters and audience.
Replacing AGPs in diets
As calls for reduced antibiotic use in animal production continue to gain ground, the days of AGPs seem to be numbered, with producers looking for alternatives that will help maintain productivity and profitability. Dr Charles Starkey, Assistant Professor at Auburn University, reiterated that producers “must stop looking for a band aid or a magic solution.” Among other things, producers need to better understand diets, the mode of actions of alternatives, the interaction between these alternatives and how diets interact with selected alternative treatments. He discussed alternative ingredients, usage, mechanism for action, and potential for synergies among these various alternatives. The focus, he said, should be on how these strategies affect the gastrointestinal environment. In a second presentation, Dr Starkey also looked at other factors to consider when formulating diets without AGPs, including vitamins, minerals, oxidative processes and stimulation of immunity.
Improving intestinal health with non-medicated feed additives
The weaning period is one of the most stressful in the life of the pig and is associated with reduced feed intake and gut integrity. To solve this problem, producers have traditionally turned to antibiotics. With the trend to reduce the use of antibiotics in feeds, many alternative products have been identified. Dr Joris Michiels, Professor at the Department of Applied Biosciences, Ghent University discussed non-medicated feed additives including potentiated zinc oxide, medium-chain fatty acids and cinnamaldehyde. He underscored the need to ensure to have the right dose, chemical and physical formulation for these alternatives to be effective.
Low protein diets an important factor in addressing AGP removal
Studies have shown that the use of low protein diets for piglets has led to lower incidence and severity of post-weaning diarrhoea thus minimising the need for antibiotic support. However, Tony Edwards of ACE Livestock Consulting in Australia said that “a far more comprehensive approach is needed to cover for the removal of AGPs and a holistic strategy in place to cover all the contributing factors. In addition to looking at alternative ingredients, feed formulation and processing, equally important to consider are biosecurity and pig flow, health management, and feeding management. Antibiotic use, he said, disguised many problems in production, and now producers must “go back to basics to create a production system that can achieve a healthy gut without the use of antibiotics.”
Manipulating dietary protein and fibre to improve intestinal health
Maintaining intestinal health as the pig producers withdraws the use of AGPs is a challenge facing nutritionists and pig producers. Jae Cheol Kim, Techical Manager for Asia Pacific of AB Vista, explained that reducing protein content and increasing protein digestibility will reduce the proliferation of proteolytic pathogens and protein fermentation and production of toxic by-products. This can be achieved by using highly digestible protein, fine grinding of protein meals and phytase superdosing. Meanwhile, restricting the use of soluble NSP while supplementing with selected insoluble fibre can help stimulate the growth of beneficial bacteria that can in turn maintain the pig’s intestinal health.
|Guangdong Wens Q1 net profit slumps over 50%|
[27 April 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said its net profit fell 52.36% to USD 214 million in the first quarter of 2017, due to lower broiler and pig prices that declined by 32.84% and 7.71% respectively from a year earlier. The company sold 202 million yellow broilers during the quarter, up 17.32% year-on-year, but the segment’s revenue was down 21.69% amid the H7N9 bird flu crisis. Its pig sales rose 4.04% to 4.28 million heads, with revenue up 1.01%. “We are selling finisher pigs at higher weights according to market demand,” Wens noted.
|Bulog to launch chicken feed|
[27 April 2017] Indonesia’s State Logistics Agency (Bulog) plans to launch chicken feed under the ‘Pakan Ternak Kita’ brand by end April as a trial project. Bulog has partnered with a third party to produce the feed which will use corn from import leftovers. Currently Bulog still has 137,000 tonnes of corn at its warehouses – of which, 20,000 tonnes will be used to produce the feed. The feed will be distributed in West Java and Banten provinces. Febriyanto, Commercial Director said the price of the feed will be cheaper that feeds in the market, at around USD 0.46 per kg. If this trial project runs well, Bulog will continue the project and it will open opportunities for feed millers to produce the feed under a profit sharing scheme.
|Cargill to focus on aqua and meat segments|
[27 April 2017] Cargill has its sights set on moving up the food chain and focusing on the aquaculture and meat segments, with Asia expected to be a key market. In an interview with CNBC Cargill Chairman and CEO David MacLennan said it has realigned its portfolio to focus on its core food production business. “The rate of growth of fish consumption in the world greatly exceeds pork consumption. We see that trend and we’re getting on it,” he said. He also expressed interest in the prospects Asia offers, adding that Cargill has made recent investments in the region. Among them are feedmills in Vietnam and South Korea, and joint ventures in the chicken business in the Philippines and Indonesia.
|Saudi Arabia wants Vietnamese meat exporters to register online|
[27 April 2017] Saudi Arabia has urged Vietnamese exporters of meat and seafood products to register their companies with product information on its Food and Drug Authority website. On Saudi Arabis’s Ministry of Industry and Trade’s website, its department of African, Western and Southern Asian markets has stated that the ministry received a note regarding the registrations from the Embassy of Saudi Arabia. Saudi Arabia recommends that Vietnamese food export firms register information via a link, the MoIT said on its website. Registration is compulsory for all firms that export food products to the kingdom to facilitate the export process. Saudi Arabia is working to improve its monitoring process with regards to food hygiene and safety of imported products.
ASIAN AGRIBIZ PIG FEED QUALITY CONFERENCE 2017
Ho Chi Minh City, Vietnam
[26 April 2017]
Asian Agribiz’s 2017 Pig Feed Quality Conference opened yesterday with a record breaking attendance of over 200 participants. Continuing its focus on science, trials and applications, speakers discussed various strategies for feeding for heavier bodyweights without sacrificing carcass quality and how to translate nutrition research into practice.
Precision feeding a key to unlocking pig’s genetic potential
Developments in genetics has changed the productive profile of modern pigs, which are now more productive, have higher growth rates and lean meat deposition, but are nutritionally more demanding. One of the nutritional strategies to meet the demands of the modern pig and unlock its genetic potential is precision feeding, said Bruno Silva, Professor of Swine Nutrition and Production of the Universidade Federal de Minas in Brazil. Precision feeding is providing the right amount of feed with the right composition to each pig in the herd. It can reduce feed costs as well as nutrient excretion, and furthermore provide real time, off farm monitoring of feed and animals for optimal slaughter and production strategies, thus improving environmental sustainability of pork production, animal well-being and meat quality.
Bringing up productivity in Asia
Productivity, which refers to the amount of meat produced per sow per year, remains the prime driver of profitability in pig production, Tony Edwards of ACE Livestock Consulting in Australia explained. As such, it is a function of the number of pigs sold per sow per year and the carcass weight of these pigs. Dr Edwards noted that productivity levels in many Asian countries remain “relatively low due to modest reproductive output and constrained carcass weight,” and called for a review and adjustment of current production systems to address these issues. He presented various nutritional and management strategies that producers can implement to achieve carcass weight without compromising carcass quality.
NSP-enzymes enhance growth and uphold carcass quality
Previous studies on the effects of NSP-enzymes on growing and finishing pigs have produced inconsistent results, but recent studies have shown that supplementing NSP-enzymes enhance digestibility of nutrients in major grains, especially at the end of the ileum. “These digestibility improvements translate to a nutrition matrix of the NSPase, approximately DE 60-70 kcal/kg and amino acids by 1-3%, said Alex Wu, Regional Technical Manager-Asia Pacific of Adisseo. He noted that the use of enzymes has no negative effect on carcass traits, and because NSPases have prebiotic-like effect, it can promote better gut health and result in improved growth.
Alleviating heat stress through nutrition
The higher performance potential of modern pigs tends to make them more susceptible to heat stress. Dr Silva discussed nutritional strategies that can maximise the nutrient intake of pigs under heat stress and improve their performance. One such strategy is the use of low increment diets or high-density diets which can reduce the effect of heat stress particularly on finishing pigs and lactating sows, but only when diets are correctly balanced for amino acids to energy ratio. He noted that the strategic use of a feed flavour can help increase the sow’s voluntary feed intake and benefit milk production, thereby improving litter performance “all of which can help attenuate the negative effects of heat stress on the nursing sow.”
|Pengcheng Food launches fine cutting plant in Beijing|
[26 April 2017] Pengcheng Food, the largest pork processor in Beijing, said it launched a fine cutting plant at its headquarters last Friday. Costing USD 22 million, the plant has a processing capacity of 60 tonnes per shift. Gao Yong, Head of Equipment Department, told Asian Agribiz earlier that the facility features modern equipment from Laska, Handtmann and Treif, while products produced there will include diced, shredded and sliced pork and chicken, as well as minced pork. Pengcheng installed China’s first fully automatic pig slaughter lines in 2004. It produced 200,000 tonnes of pork last year.
|Vietnam issues ban on import of feeds with stimulant|
[26 April 2017] By October 1 this year Vietnam will stop imports of feeds with stimulants. The ban will increase the country’s chance of producing safe products for both the local and global markets. According to Saigon GP Daily, the move is a directive from the Department of Livestock Production. Vietnamese importers are responsible for ensuring that the industry is free of stimulants in feed by January 1, 2018. Importers must report the volume of feed imports and consumption of the kinds with stimulants bought before and how to sell them to the department. The ban aims to stop the use of stimulants in husbandry.
|Tris Rating assigns BBB tag to TFG with stable outlook|
[26 April 2017] Tris Rating, Thailand's credit rating agency, has assigned a BBB rating to Thaifoods Group (TFG) with stable outlook. The rating reflects TFG’s market position as a medium-scale producer in Thai agribusiness and food industry, its vertically integrated operation in poultry and swine businesses, plus its plan to expand market coverage and widen its product offerings to include value-added products. However, these strengths are partially offset by volatile earnings caused by a heavy reliance on basic commodity-type products, fluctuations in the price of grain, relatively high leverage, exposure to disease outbreaks, as well as changes in the tariffs of food importing countries. Tris Rating said the stable outlook reflects the expectation that TFG will be able to maintain its competitive position in the Thai poultry and swine industry.
|Ba Huan launches first modern egg processing plant in the north|
[25 April 2017] Ba Huan has just launched its first technologically advanced egg processing plant in Phuc Tho Town in Hanoi City, marking its expansion to the north of Vietnam. Occupying an area of 2 hectares, the USD 4.5 million plant is one of the most modern egg factories in the country, equipped with a fully automatic egg processing line from Moba of the Netherland's. With this line, the plant can reach a capacity of 65,000 eggs/hour. Beside the processing line, the facility includes a chilled storage system to store processed products such as sausages and value-added eggs, from Ho Chi Minh for the northern market. To serve this plant, Ba Huan purchases eggs from Hanoi and surrounding provinces, to help local farmers with more market options and promote Hanoi's clean food production program.
|Chicken from Brazil and US CLQ could help stabilize industry in Indonesia|
[25 April 2017] The decision on Brazil’s complaint to the WTO (DS484) about Indonesia’s unfair trade restrictions on the imports of chicken meat and chicken products will be announced in May this year. A poultry farmer told Asian Agribiz that he hopes Brazil's exports to Indonesia are approved. “This will force local integrators to adjust their expansion plans. They have expanded aggressively, leaving independent farmers with a shrinking market share,” he said. On the other hand, the US also filed its complaint about Indonesia’s animals & animal products import restriction. A meat processing industry player told Asian Agribiz that he hopes Indonesia can import chicken leg quarters (CLQ) from the US for the meat processing industry. “CLQ is good to be processed into meat meal, and the quality is better than MDM [meat deboned meal]. On one hand, CLQ meal will offer a competitive advantage to meat processors and consumers will get further processed products with higher meat content,” he explained.
|GFPT to invest USD 87 million over 3 years to expand broiler production|
[25 April 2017] Thailand's GFPT Group said it will continue to focus on organic growth and on vertical broiler capacity expansion. Anan Sirimongkolkasem, Chairman of the Executive Committee at GFPT said the group plans to increase its daily broiler production by 20,000 – 25,000 birds annually during 2017-2019, up from 260,000 – 270,000 birds a day currently. GFPT Group will invest around USD 29.1 million annually for this in the three-year period. Meanwhile, Dr Anan said Thai chicken exports look promising in 2017 due to strong global demand for Thai frozen chicken meat and cooked chicken products. Thai poultry products, which meet international standards, are trusted for premium quality and food safety due to its farm management standards and good biosecurity, he added.
|Singapore’s SATS to facilitate meat transhipment between NZ and EU|
[25 April 2017] Singapore ground handler Sats has received European Union (EU) approval as an authorised establishment for meat transhipment services between New Zealand and the EU, reported Air Cargo News. Meat shipments from New Zealand destined for the EU markets can now transit through Singapore via Sats Coolport. Sats will break down and re-consolidate meat shipments from New Zealand for redistribution to the EU markets, all within its Coolport’s temperature-controlled premises. A spokesperson for Sats said the approval presents opportunities for Sats as the company establishes itself as a hub and redistribution centre for perishable products from South West Pacific to the rest of the world.
|Asohi addresses climate and disease challenges in Indonesia|
[25 April 2017]
Considering the negative impact of weather on chicken performance, the Indonesian Veterinary Drugs Association (Asohi) invited a viral diseases expert, a bacterial diseases expert and a practitioner to shed some light on this. The seminar also touched on low pathogenic H9N2 AI virus which has been a topic of discussion among layer farmers in the country.
La Nina and AI infections
For most countries, climate change has been found to increase the risk of avian influenza (AI) outbreaks. Speaking specifically on La Nina, Widya Asmara, a viral diseases expert from the University of Gadjah Mada said La Nina’s lower temperature and higher relative humidity conditions increases the persistence and stability of AI virus. However, Prof Asmara said further studies are needed to prove the impact of La Nina on the number of AI cases, new genotype & phenotype of existing AI viruses, latent infection activation and the existence of the H9N2 AI virus.
H9N2 detected in Indonesia
Lately, unofficial reports about H9N2 AI infections in Indonesia have surfaced. Prof Asmara in his presentation confirmed that the low pathogenic AI virus has been detected in the country. “The Veterinary Centre in Maros, South Sulawesi has detected this,” he said. So far veterinary centres in the country only focus on the H5N1 virus, but they will also study the H9N2 virus to determine whether it is a new or an existing virus. Prof Asmara said the H9N2 virus has no indication of high mortality, but its effect on egg production drop needs to be clarified as many other factors could result in this decline. Most recently, H9N2 infections have been reported in several Asian countries.
Concerns over H7N9 from China
In response to climate change, the Directorate General of Livestock & Animal Health has circulated an official letter to industry players to increase biosecurity levels, and to implement the 3-zone type biosecurity, according to Muhammad Azhar, staff of the directorate. Besides studying about the H9N2 virus, he said veterinary centres under the directorate will also study the H7N9 AI virus that recently hit the poultry industry in China. “We must prevent this virus from entering Indonesia. Although it’s low pathogenic to poultry, it could be dangerous to humans.” He added that collaboration between the industry and government is important.
Avian pathogenic E coli in Indonesia
Michael Haryadi Wibowo from the Microbiology Laboratory of the University of Gadjah Mada focused his presentation on avian pathogenic E coli or Apec. “Apec is a pathogenic E coli that attacks all ages of chickens. The most important thing is that Apec can grow or colonise in non-digestive organs and damage them,” he explained. On high level in-ovo pathogenicity, Apec kills up to 20% of infected embryos. Apec serotypes include O1K1, O2K1 and O78K80. From infected chicken organs, feed samples, farm litter and drinking water collected from different regions in Indonesia, the number of the O2K1 serotype was the highest, Dr Wibowo mentioned. “From its several modes of infection, it’s important to know that Apec can infect through respiration and cloaca.”
Best farm management practices must be applied
On his part as a practitioner, Agus Mardianto from Charoen Pokphand Indonesia said climate change affects chicken performance. Best management practices must be applied to prevent negative impact of climate change. “Nutrition also plays a key role. Adequate, balanced and quality feed can improve immunity,” he said. In the field, there is a misperception about vaccination. “Vaccination programs can’t replace poor management.” He added that stress during and after vaccination affects the achievement target of body weight. Therefore, feed intake should be increased 1-2 weeks before vaccination.
|US beef gains expanded access to Thailand|
[24 April 2017] The US Meat Export Federation (USMEF) said recently that US beef has gained expanded access to Thailand. Bone-in and boneless beef from cattle of any age is now eligible for Thailand, as long as the slaughter date is on or after April 1, 2017. For product derived from cattle slaughtered on or after this date, all USDA Agricultural Marketing Service (AMS) Export Verification (EV) Program requirements have been removed. Joel Haggard, USMEF senior vice president for Asia Pacific said, “Although Thailand is likely to remain a relatively small market for US beef, more exporters will now be interested in serving Thailand, where there are a number of foodservice and retail operations that want to feature American beef.” Still, US exporters should note that beef offal and offal products remain ineligible for Thailand, he added.
|China’s sow stock reverses 8-month consecutive decline|
[24 April 2017] China’s sow stock rose 0.04% in March from a month earlier, ending a decline over eight consecutive months, said the Ministry of Agriculture. The stock was still 1.6% lower than a year earlier. Meanwhile, the nation’s commercial pig stock was up 1.0% month-on-month, but down 1.2% year-on-year. “The capacity rebounded as pig farmers were optimistic about the future benefits, as well as a seasonal restocking in spring,” noted the ministry. Data from the National Bureau of Statistics shows that China produced 191.49 million pigs in the first quarter of 2017, up 0.2% from a year earlier.
|Vietnam’s wheat imports impact on corn |
[24 April 2017] Vietnam is finding that wheat is a good alternative to corn. According to a recent US Department of Agriculture FAS report, feed wheat imported in marketing year 2016/17 and 2017/18 is estimated to increase sharply due to its price competitiveness. “Initially wheat was almost exclusively used in aquaculture. Currently, due to the competitive price of feed wheat, it is becoming a crucial ingredient in producing compound feed for aquaculture and livestock. This is impacting total corn imports into Vietnam,” said the report. Imported wheat accounts for about 20-25% of total imported wheat in recent years. However, the import volume is likely to increase greatly from 600,000 tonnes to 1.1 million tonnes.
|Malindo donates 600k chicken eggs|
[24 April 2017] Malindo Feedmill recently donated 600,000 eggs to orphanages and schools in West Java, East Java and South Sulawesi provinces in Indonesia, with the intent of increasing animal protein consumption in the country. “This is part of our CSR. We partner with local animal husbandry agencies in the provinces to distribute the eggs. We think that eggs are the right animal protein source to donate as it’s nutritious, delicious and easy to cook,” said Rewin Hanrahan, Director, in a press-release received by Asian Agribiz.
|Association supports Indonesia’s plan for aqua feed development|
[24 April 2017] A National Independent Aqua Feed Association (APMN) was formed recently in Indonesia to support the Ministry of Fisheries & Marine Affairs’ program for independent aqua feed development (Gerpari) which is aimed at providing aqua feed for farmers at affordable prices. Having 20 members, APMN commits to support the development of aquaculture in the country, said Chairman Syarifuddin. Slamet Soebjakto, Director General of Aquaculture of the Ministry of Fisheries & Marine Affairs said Gerpari, which was initiated in 2015, produced 16,800 tonnes of aqua feed in 2015 and 62,100 tonnes in 2016. “Gerpari has been effective in helping farmers reduce feed costs,” he said, adding that Gerpari also aims to reduce the country’s dependence on imported feed raw materials such as fishmeal.
|KPS setting up pig AI centre in North Sulawesi|
[21 April 2017] Indonesia’s pig breeding company Karya Prospek Satwa (KPS), a partner of Charoen Pokphand Indonesia, is setting up an artificial insemination (AI) centre in Taratara village, North Sulawesi. This AI centre will produce commercial pig semen. “AI is quite popular in this province. Our role is to supply quality pig semen and train farmers on the proper method of AI,” Phaithoon N Na Ayudhaya, Consultant for KPS told Asian Agribiz. “Currently we are setting up the laboratory and preparing equipment needed such as pig dummies, semen containers, microscopes and a device to check sperm motility.”
|Heat and Control returns to Propak with products for Asia|
[21 April 2017] Heat and Control will showcase their latest innovative products for the Asian market at Propak Asia 2017, this June 14-17 in Bangkok, Thailand. Targeted at producers of snack foods, meat-based products, ready-made meals, beverages of any kind, pharmaceuticals, or anything in between, Heat and Control will display a wide range of equipment which can be specifically tailored to meet the needs of processors. On show among others from Heat and Control, will be product handling systems, inspection systems and a metal detector. Heat and Control are specialists in providing complete turnkey solutions to any processing line.
|Border closures expected to reduce Vietnam feed demand|
[21 April 2017] Vietnam feed demand last year increased by 31% compared to the year before. The jump was attributed to the export of live pigs to neighbouring countries. The US Department of Agriculture’s Foreign Agricultural Service (FAS) report noted that the demand growth came mostly from private farms who produced home-made feed from local rice/rice products and local corn with imported ingredients. This, however, is expected to decrease sharply this year after border closures last December. According to FAS estimates, based on the total number of swine in the calendar year, the total feed demand in 2016 was 34.17 million tonnes, over 8 million tonnes increase from 2015. This year total feed demand is forecast at 27.49 million tonnes.
|Tianjin port's Q1 meat imports slump 40%|
[21 April 2017] Tianjin port, a major entry point for imported meats to China, received 240,000 tonnes of meat products valued at USD 470 million in the first quarter of 2017, both down 40% from the earlier quarter reported the Tianjin Entry-Exit Inspection and Quarantine Bureau. Pork was the largest part of the imports with 190,000 tonnes, while poultry products took less than 2000 tonnes, or down 85% quarter-on-quarter. “It’s normally off season for meat consumption after the Chinese New Year, hence the decline in meat imports,” said the bureau. A decline in domestic pork prices also limited imports, while poultry imports were affected by bird flu worldwide.
|Perinus to export 1000t of octopus to Japan|
[21 April 2017] In cooperation with Japanese seafood processor Ajirushi, Indonesia’s state-owned fishery company Perikanan Nusantara (Perinus) targets to export 1000 tonnes of octopus to Japan this year valued at USD 3.76 million. “The first shipment of 30 tonnes is schedule for this month. Since we have expanded our cold storage capacity, we are optimistic of reaching the target,” said Dendi Anggi Gumilang, President Director, adding that the octopus is mainly sourced from eastern Indonesia. Last year, Perinus’ catch fish business produced 6000 tonnes, but this year, Mr Gumilang said the production is targeted to reach 16,000 tonnes because it has added new fishing vessels. “Of the production, only 5% is for export. We are eyeing new export markets such as China and South Korea,” he said.
|Maharashtra approves Swayam poultry farming project|
[21 April 2017] India’s Maharashtra Cabinet has approved a project named Swayam that is aimed at encouraging poultry farming in the tribal areas of the state. The Swayam project will be implemented in 16 districts over a period of two years. About 43,000 families will benefit from the project costing USD 3.5 million. Through the project, the government plans to eradicate malnutrition among children in these areas, as poultry farming will raise the availability of eggs, reported India Today.
Meat processors raise their game with QSR expansion
[20 April 2017]
International quick service restaurant (QSR) chains such as McDonald’s, KFC and Burger King have been enjoying good sales in the Asian markets. Thanks to their expansions, meat processing companies in the region also have expanded their production capacities alongside technology upgrades.
McKey’s new plant to supply products to QSRs
McKey Food Services (Thailand), a joint venture between Thailand’s GFPT and US’ Keystone Foods, mid last year said it will build a new further processing plant in Amphur Thungkwang, Chonburi province, which will produce and supply processed chicken products to leading QSR chains for both domestic and international markets. The new plant, which will have a capacity of 25,000 tonnes per year with an investment of USD 42.11 million, is expected to be completed and ready to produce for export markets by the end of 2017.
Sunner’s new plant strictly for QSR market
China’s Sunner Food, the cooked product processing arm of Fujian Sunner Group, is building a new plant targeting QSRs such as McDonald’s, KFC and Burger King. The plant, costing more than USD 50 million, will be equipped with four processing lines for fried and roasted chicken products. It has a designed capacity of 48,000 tonnes per year, and is scheduled to be operational by June this year. “This will be our largest and most automated food plant,” Fu Fenfang, Chairwoman told Asian Agribiz. Sunner Food currently has a combined annual capacity of 150,000 tonnes with five plants, including one located in neighbouring Jiangxi province that is also dedicated to QSRs. In March 2016, Sunner Food started supplying crispy chicken drumsticks and McChicken steaks to McDonalds’, making it the first local Chinese supplier of cooked meat products for the QSR giant.
GenOSI progresses with a new plant
Demand from QSR chains continues to drive the meat processing industry in the Philippines, and many processors see this trend will remain. Many processing companies are expanding and smaller players are entering the market. For example, GenOSI, which supplies almost 500 restaurants with various high quality meat products such as burgers, chicken and sausage patties and chicken nuggets, has constructed a new 7500 sqm manufacturing facility just south of Metro Manila that will be operational soon. Avelino Mangahas Jr, GenOSI General Manager, told Asian Agribiz that while the company markets its own brand of processed meats, restaurants, along with hotels and institutions, will continue to be their dominant market.
Good for chicken suppliers
QSR chains in Thailand have plotted their expansion plans aggressively. Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz that QSR players face a high level of competition in Thailand and new players, including South Korean brands, are also entering the country. When QSR chains expand their business, he said producers get more customers and can supply more meat to them. “This is good because domestic consumption of chicken meat is increasing.”
More than ‘sell and buy’ relationship
The relationship between meat processors and QSR chains can be more than ‘sell and buy’. The Philippines’ largest QSR Jollibee Foods Corporation last year forged a joint venture with Cargill Philippines to build and operate a new poultry processing plant. For Jollibee, the most important part of the joint venture is to help ensure chicken supply for its fast-growing business. “With Cargill’s expertise in chicken production and the food business, we look forward to augmentation of supply and continuous improvement in the quality of our products,” Ysmael Baysa, Jollibee CFO told Asian Agribiz.
High-quality producers valued
Malaysia’s Dindings Poultry Processing processes about 11,000 birds daily for the supply of bone-in chicken for McDonald’s in the country. About 100-150 tonnes of boneless chicken is delivered to MacFood Services every month to be made into patties and nuggets. Dindings’ partnership with the QSR company has been long-standing. Its plant was designed according to US Department of Agriculture standards and is halal-certified.
Not always positive
In Indonesia, QSR chains continue to expand their businesses by setting up new outlets. They are also now setting sights on markets beyond Java and second-tier cities. However, according to Ishana Mahisa, Chairman of the National Meat Processors Association (Nampa), the impact of this expansion is not always positive, especially when they integrate the supply chain. “Take Pizza Hut Indonesia for example. Previously they bought sausages from Nampa members, but now with their new central kitchen in operation, they produce their own sausages,” Mr Mahisa told Asian Agribiz. Dom Pizza Indonesia, the operator of Domino’s Pizza in Indonesia, has also made the same move. In August 2015, they started the operation of their new USD 2.5 million central kitchen in West Java that produces products required by their outlets.
|GFPT expands broiler production in Thailand|
[19 April 2017] Thailand’s GFPT plans to increase its broiler production capacity over the next three to five years and has expanded its feed capacity. GFPT has set its annual investment budget at USD 23-28.7 million for upstream expansion of chicken farm areas. “We are also expanding our slaughterhouse to support higher production,” Anan Sirimongkolkasem, Chairman of the Executive Committee at GFPT said. The company will store raw materials in accordance with the capacity expansion, Dr Anan said, adding GFPT’s broiler production costs this year are expected to be the same as last year. Meanwhile, the Thai chicken industry is highly competitive. Many companies have increased their production capacity raising competition further, he added.
|Dagsap records significant growth in burger luncheon market|
[19 April 2017] The burger market in Indonesia is like a pyramid, said Ishana Mahisa, Director of Dagsap Endura Eatore. On top are burger patties, while the broader bottom layer are the burger luncheons. Dagsap produces both. Its Hemato burger luncheons are bought by pushcart burger sellers. “Luncheons are like sausages but bigger in diameter. It’s produced in the same production line as sausages. It’s then sliced thinly and packed. Sales of the Hemato burger luncheon recorded significant growth in the last few years, especially in East Java, because burgers are a favoured snack of schoolchildren. To meet this demand, we recently added a new slicer,” Mr Mahisa told Asian Agribiz. For the modern market, Dagsap plans to develop burger patties with cheese and vegetables. “The market for this category is small, but the profit margin is good,” said Mr Mahisa.
|Wens plans for new yellow broiler and pig slaughterhouses|
[19 April 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said it is considering building new yellow-feather broiler slaughterhouses as its existing ones are running at full capacity. The company currently has a broiler slaughterhouse each in Xinxing, Guangdong where it is headquartered, and Huzhou in east China’s Zhejiang province, with a combined daily capacity of 110,000 birds. Meanwhile, Wens said it is preparing to enter the pig slaughtering business. “We will set up plants gradually in our major farming regions nationwide,” Board Secretary Mei Jinfang told Asian Agribiz. Last year, Wens produced 819 million native yellow broilers and over 17 million pigs.
|Bulog seeks 52,000t of buffalo meat|
[19 April 2017] Indonesia’s State Logistics Agency (Bulog) wants the central government to approve an import quota of 51,728 tonnes of buffalo meat from India to ensure sufficient supply until end of this year. As of April, Bulog has a stock of 39,500 tonnes, which is adequate to meet demand during Ramadan and Eid Fitri. Febriyanto, Bulog Commercial Director said once the agency receives the import quota, it will start imports gradually to prevent stock build-up.
|Fujian Sunner to inject food assets into listed unit|
[19 April 2017] Shenzhen-listed Sunner Development, the broiler farming and primary processing unit of China's Fujian Sunner Group, said it will issue new shares to buy 100% of its affiliate Sunner Food for about USD 293 million, confirming market rumours. “The deal will extend our value chain to further processing and boost the listed entity’s risk resistance capacity amid market fluctuations,” said Sunner Development. After the deal, Group Chairman Fu Guangming and his family will see their controlling stake in the listed unit rising to 50% from 45.4%, while global investment firm KKR’s holdings will be diluted to 16.2% from 18%.
|Koyu & Unitek kick off export project|
[18 April 2017] Koyu and Unitek will be the first company in Vietnam to export processed chicken to Japan in the middle of this year. This project is significant as it a step towards expanding its reach to other markets, such as Singapore and the EU. Koyu and Unitek Ltd, a joint venture between Koyushokucho Group and Unitek Group, inaugurated its slaughtering and processing plant in Long Binh Industrial Park, Dong Nai on March 28. The USD 6 million plant with a slaughter capacity of 50,000 chickens per day, is equipped with the most modern production lines from Europe. The plant is HACCP and ISO 9001 certified and meets the Food Hygiene Safety standards in Vietnam. This chicken meat export project is 100% traceable thanks to the strong commitment of its stakeholders, the company said.
|Beijing DBN expects pig production to triple in 2017|
[18 April 2017] Beijing DBN Technology Group is expected to produce about 1.2 million pigs this year, up from 400,000 heads in 2016, Board Secretary Chen Zhongheng told Asian Agribiz during an online briefing. Meanwhile, the leading Chinese feedmiller’s sow stock is expected to rise to 200,000 heads from 48,000 heads. “The key for pig farming is cost control, and we have strength and potential in this segment with our expertise in pig feed,” Mr Chen said. In March, the company acquired a 100% stake in US pig breeding firm Waldo for USD 16.5 million, and Mr Chen said the approval process has been smooth.
|Indonesia reaps USD58m at SENA 2017|
[18 April 2017] With the theme ‘Indonesian seafood: Naturally diverse’ and a tagline ‘Safe and sustainable’, 18 Indonesian seafood companies secured deals worth USD 58 million during the Seafood Expo North America (SENA) 2017 in Boston, USA in March. Reza Pahlevi, Indonesia’s Trade Attache in Washington, said the market share of Indonesia’s seafood products in the US is promising. “Last year Indonesia’s seafood export value reached USD 1.17 billion, a 1.41% increase over the previous year,” he said, adding that shrimp, tuna and crab products dominated exports. Mr Pahlevi said food safety, traceability and sustainability are important aspects for the US, so Indonesian seafood producers and exporters must meet standards.
Animal welfare is becoming a bigger priority in Thailand
[18 April 2017]
According to World Organisation for Animal Health (OIE), civil society is increasingly interested in animal welfare and the OIE has prioritised this for over a decade. The European Commission has also been promoting animal welfare for over 40 years gradually improving the lives of farm animals. PAYUNGSAK WIRIYABUNDITKUL writes that in Thailand, animal welfare is becoming more important to producers, especially those who export.
CPF places more importance on animal welfare
Charoen Pokphand Foods (CPF) has collaborative arrangements with local pig farms under its contract farming model. In 2017, CPF’s new parent stock farms will place importance on animal welfare by housing pregnant sows in groups. “In our old individual gestation stalls, pregnant sows stay in narrow stalls and they cannot roam around freely,” Somkuan Choowatanapakorn, Chief Operating Officer of CPF’s pig business told Asian Agribiz. The new group housing will consist of 8-10 sows per house and sows will have more walking space, he said. “There has been a global push to enhance the welfare of animals and the trend will likely be seen in Thailand soon,” Mr Somkuan said.
More space for pigs at Samphran Farm
Nattaphorn Teeranuwat, General Manager of Samphran Farm Co Ltd in Thailand’s Ratchaburi, told Asian Agribiz that the farm has developed a free-range farming system to rear pigs that are fed herbs and diets free from hormones, antibiotics and growth promoters. Samphran Farm has 14 pigsties, each measuring 1600 sqm and housing around 400-500 pigs. “Pigsties at ordinary pig farms provide only 1 sqm per pig, but at our farm, it is 4 sqm per pig,” she said, adding that pigs can roam around freely in different zones at the farm. “Our free-range pigs are relatively strong, healthy and less stressed,” she said. The cost of raising free-range pigs is higher than raising regular pigs, and they take a longer time to raise. However, Ms Nattaphorn said free-range pig farms have improved animal welfare and this has positively impacted the marketing of natural pork. Samphran Farm has partnered with Central Food Retail for this.
Better animal welfare means improved performance
When poultry and swine producers improve animal welfare on their farms, they will also improve the performance of the animals, Gordon Butland, Director of G&S Agriconsultants Co Ltd told Asian Agribiz. “If you look after the animal well, it will perform better. It’s not all costs that producers get but its benefit also from the animal welfare,” he said. The animal welfare issues are especially important for export-oriented countries and industries such as Thailand’s poultry industry. Leading poultry exporters in Thailand depend more on vertically integrated farms to conform to European Union regulations on animal welfare and food safety. For countries in Asia, which focus mainly on the domestic market, Mr Butland said the animal welfare issues haven't become important to producers.
CPF promotes 'five freedoms' for animals
Dr Payungsak S.tanagul, Vice President, Technical Service - Poultry Integration at Charoen Pokphand Foods (CPF) said CPF’s broiler farms have adopted animal welfare principles, tagged as 'five freedoms' of animals. First, the freedom from thirst and hunger through ready access to fresh water and a diet to maintain full health. Second is freedom from pain, injury, and disease by prevention. All animals will be taken care of by veterinarians. Third is freedom to express normal behavior by providing sufficient space and proper facilities. Fourth is freedom from discomfort. Broilers will stay in an evaporative cooling system, which provides proper climate suitable for the growth of broilers. CPF has also invested in modular system, a transportation system which reduces broiler panic and a crowded environment. Fifth is freedom from fear and distress by ensuring conditions and treatment which avoid mental suffering.
|ADM to build 5th facility in China|
[17 April 2017] Archer Daniels Midland (ADM) plans to build a new premix production plant in Xiangtan, central China. The ingredients company will also add aquaculture production lines to another factory in Nanjing, eastern China. Brent Fenton, President of ADM Nutrition, said the Xiangtan plant will have the capacity to produce 120,000 tonnes of premix, concentrates, and complete feed for animals and fish annually, while the aqua line in Nanjing, meanwhile, will be capable of producing 50,000 tonnes of extruded and pelleted feed during the six-month aquaculture season that runs from April to September. Both projects are expected to be completed early 2019.
|CP Indonesia donates 170k eggs in West Sumatera|
[17 April 2017] Following on from the Ministry of Agriculture's move to reduce the national supply of broiler DOC, Charoen Pokphand (CP) Indonesia recently donated 170,000 broiler hatching eggs to children in orphanages in West Sumatera. The hatching eggs were from the company’s breeding farms in the province. Irwan Prayitno, Governor of the province appreciated the donation and hopes it will contribute to the awareness of people in his province to consume more animal protein.
|Three Acre Farms expand its broiler PS DOC export business|
[17 April 2017] Sri Lanka’s Three Acre Farms (TAF), a unit of Singapore controlled Ceylon Grain Elevators group said it has upped exports of broiler PS DOC to South Asian countries and is looking to expand the business. Last year export revenue from the business rose 83% to USD 564,000. “The management has identified opportunities in regional export markets as potentially lucrative areas capable of generating substantial improvements to the group’s top and bottom line performance,” the company said. While the company previously engaged in limited exports, Economy Next quoted that in 2016, TAF was able to secure small but consistent orders which were expanded upon to great effect, and now holds the potential to further enhance revenue streams for the company in the coming financial year.
|Jinzi Ham’s operating revenue down 14% |
[17 April 2017] Jinzi Ham Co, a leading producer of Jinhua ham in east China’s Zhejiang province, said its operating revenue fell 14% to USD 23.3 million last year, with net profit down 9% at USD 2.9 million. In 2016, the company’s sales of traditional hams was 1156 tonnes, down from 1355 tonnes a year earlier. Its sales of premium Bama hams, a reference to the Italian Parma ham, also fell to 138 tonnes from 214 tonnes. E-commerce sales slowed down, up only 3% at USD 5.2 million compared with a 74% rise in 2015. Jinhua is one of China’s top three traditional ham varieties, and the other two are Xuanwei ham from Yunnan province in southwest China and Rugao ham from Jiangsu province, also in east China.
|Provinces in Indonesia reject buffalo meat|
[17 April 2017] Indonesia’s State Logistics Agency (Bulog) is facing difficulties in distributing buffalo meat from India to regions outside Greater Jakarta. Provinces including Central Java, East Java, East Nusa Tenggara and Lampung are rejecting buffalo meat. “Our partner, the Indonesian Meat Distributors Association, say the local governments want to protect the interests of local cattle farmers. This is reasonable since the provinces are beef cattle production centres,” said Febriyanto, Bulog Commercial Director, adding that the agency will intensify its socialization in the provinces. So far, beyond Greater Jakarta, Bulog has distributed only 24 tonnes of buffalo meat to Pontianak in West Kalimantan.
|Thai Union launches new frozen seafood brand|
[14 April 2017] Thai Union (TU) recently launched a new brand, called Qfresh, for frozen seafood products, as it sees strong demand for the category in Thailand. Rittirong Boonmechote, President of TU’s global frozen and related products unit said the company expects sales of Qfresh to reach USD 8.67 million this year and it aims to raise the figure to USD 28.92 million in the next five years. TU set a marketing budget of USD 1.45 million for the new brand and Qfresh will also be available for online purchase in Bangkok, Mr Rittirong said. The Thai frozen seafood market is worth around USD 578.4 million a year. Meanwhile, TU has set aside an investment budget of USD 722.96 million in 2017 including mergers and acquisitions. It targets to achieve 15% revenue growth this year.
|Huaying runs at 85% duck slaughtering capacity|
[14 April 2017] Chinese poultry integrator Henan Huaying said it is running at about 85% of its duck slaughtering capacity and 50% of broiler slaughtering capacity. Last year, the company processed 46.31 million ducks and 16.28 million broilers. “We will continue to focus on the duck business, and will not expand in the chicken segment in the near term,” Chairman Cao Jiafu told Asian Agribiz. Huaying currently has a grandparent duck stock of about 80,000, which were all introduced from Cherry Valley’s unit in China, Mr Cao said, adding that the breeding operations were not affected by the bird flu.
|Reference prices for live broiler, dressed birds and egg in Indonesia|
[14 April 2017] The Commission VI of Indonesia’s House of Representatives has asked the government to set reference prices for live broiler, dressed birds and eggs at both farmer and consumer levels. In a hearing with Commission VI, the Ministry of Trade proposed live broiler and egg prices at farmer level to be set at USD 1.35 per kg, while the prices of dressed bird and eggs at consumer level to be set at USD 2.40 and USD 1.65 per kg, respectively. On the other hand, the Business Competition Watchdog Agency (KPPU) also asked the government for ceiling prices for DOC and feed.
|Malayan Flour Mills’ new processing plant to come on stream in 2018|
[14 April 2017] Malayan Flour Mills Bhd’s (MFM) new USD 112.74 million poultry processing plant, which will come on stream next year, will grow the company’s processing capacity by threefold. Managing Director Teh Wee Chye told The Edge Financial Daily the company wants to cater to the growing demand from its existing clients and make inroads into the Middle East. MFM’s current plant has a capacity of 80,000 birds per day. MFM’s main clients include prominent fast-food chains and supermarkets as well as major hypermarkets. MFM’s poultry integration division, which also manages several breeder and broiler farms, supply more than 5 million DOC per month.
|Indonesia gets help from FAO for fish feed project|
[14 April 2017] Indonesia’s Directorate General of Aquaculture of the Ministry of Fisheries and Marine Affairs has partnered with the Food and Agriculture Organisation (FAO) to develop the national independent fish feed project. In this partnership, FAO will allocate USD 243,000 for technical cooperation for the project. Slamet Soebjakto, Director General of Aquaculture said FAO will support on information related to raw material supply, fish nutrition and feed formulation. “Feed accounts for 70% of the total fish production cost. The independent fish feed project will help farmers lower their feed costs and gain better profits,” he said.
|Koyu & Unitek plans for two more processing plants|
[13 April 2017] Koyu and Unitek Ltd based in Vietnam expect demand from Japan to rise to 2,000 tonnes of processed chicken per month. Its plant's current capacity is only 300 tonnes per month. Koyu & Unitek is planning significant expansion in the near future. "Koyushokucho Group is one of the biggest chicken meat suppliers in Japan. We expect Koyu & Unitek to build two more processing plants in future to fulfil this need," said Khuu Nhon Hieu, General Director of Koyu & Unitek.
|Perindo eyes USD82.45m of revenue|
[13 April 2017] Indonesia’s state-owned fishery company Perikanan Indonesia (Perindo) eyes a revenue of USD 82.45 million this year, or five times higher than last year. Agung Pamujo, Corporate Secretary said it will increase production of its strategic business units, especially the aquaculture business unit. For freshwater farming, Perindo will extend its shrimp, snakehead fish and pangasius farms from 80ha to 342ha. This is expected to contribute around USD 31.48 million to this year’s total revenue. For mariculture, Perindo will expand the production capacity of its grouper and white snapper farming to 500 tonnes, which is expected to record a sales value of USD 4.50 million. Meanwhile on fish trading, Perindo aims to book sales of USD 20.61 million from the trading of fresh chilled & frozen fish and sashimi. Finally, Perindo targets to operate 99 fishing vessels this year to reach the revenue target.
|Wens sees difficult H1 for yellow broiler segment|
[13 April 2017] China’s native yellow-feather broiler segment expects losses in H1 2017, due to the H7N9 human infections and a sufficient supply since Q4 2016, said top producer Guangdong Wens Foodstuff Group. However, it said the market is expected to return to normal in H2 with more holiday consumption. In 2016, Wens’ yellow broiler sales rose 10% to 819 million birds, more than one fifth of China’s total output. The broilers are normally sold live in wet markets, but the company said it was pushing the sales of chilled yellow chicken, up 20% in mainland China and 13% in Hong Kong and Macau. Its cooked chicken sales also rose 45% last year.
Food & Hotel Indonesia 2017 in Jakarta, Indonesia
Onsite report by ARIEF FACHRUDIN
[13 April 2017]
The 14th international one-stop platform to source for quality culinary ingredients and F&B products returned to Jakarta, Indonesia last week. Over 1600 companies from 50 countries participated, giving visitors from the food service, food processing and retail industries a notable avenue to increase their competitiveness.
Santori launches dry aged Tokusen wagyu beef
Japfa Comfeed Indonesia’s subsidiary Santosa Agrindo, popularly known as Santori, launched its dry aged Tokusen wagyu beef at the exhibition. Sugiman, Head of Sales & Marketing of Santori said that its dry aged beef is special because it is made from wagyu beef. “In addition, we control quality of the wagyu beef, starting from our farm, processing plant, dry-aging room to the distribution,” he said. For the dry-aging process, Santori adopts technology from Japan, and as a result, after 20 days of dry aging, its wagyu beef has better tenderness, juiciness and aroma. Made from the ribs, dry aged Tokusen wagyu beef is sold at USD 75 per kg. Santori currently produces around 1-2 tonnes per month. “To further promote the product, we will educate chefs as well as our existing customers about how to process it,” said Mr Sugiman.
Kibif sells portioned beef cuts in minimarts
Indonesia’s beef integrator Kibif has started selling portioned beef cuts since early this year in minimart outlets of Indomaret. Grace Adoe, Chief Marketing Officer said the products are now available in 100 Indomaret outlets in Greater Jakarta, Medan, Surabaya and Pontianak. Wiryo Subagyo, Director added that the company targets to increase the number to 500 outlets by end 2017 as sales in Q1 was satisfying. Ms Adoe said the products, including oxtail, cuts for curry, liver, minced beef and cuts from the thigh, are vacuum packed and frozen. They are available in different weights (250g, 500g and 1000g) at USD 6-9. “Consumers want convenience, practical solutions, quality beef and affordable prices,” she said.
Dua Putra expands
Indonesia’s meat & seafood importer, processor and distributor Dua Putra Perkasa Pratama is expanding. Dodi Fernandes, Marketing Manager revealed that it is setting up a meat processing plant in the Cipendawa Industrial Region in West Java. Besides cutting, portioning and packing, the plant will also produce sausages, meat balls and beef roulades. At the same complex, it is also expanding the capacity of its cold storage facility for seafood products. “The project will be completed early next year,” said Mr Fernandes. “So far our main markets are the meat processing industry and traditional markets,” he said, adding that the company will add lamb and cheese into their product range. This year, Dua Putra will also build a chicken processing plant in Brebes, Central Java, and plans to extend its shrimp farming in Bengkulu.
Sicma to expand marketing & distribution network
Indonesia’s meat processing company Sicma Inti Utama took the opportunity at Food & Hotel Indonesia 2017 to meet new potential customers. “Our participation was in line with our plan to expand our marketing & distribution network. We are looking for new potential regions in the country,” said Crescint Tanusetiawan, Marketing Manager. Founded in 1989, the family business produces premium German-style sausages and meat balls made of beef and chicken at its 2 tonne/hour plant in Gunung Putri, Bogor. “To support our business expansion, this year we also want to add new sausage products into our Delikatessa and Big Daddy product range,” he said. “We are confident of growth in the meat processing industry.”
Indomas Jaya bullish about seafood market potential
Indonesia’s frozen seafood importer and distributor Indomas Jaya is bullish about ready-to-cook (RTC) seafood products in the country. Founded in 2004, it imports seafood products like crab stick, chikuwa, salmon balls, seafood tofu, otak-otak, fish roll and squid roll from Malaysia and Thailand. “Our main markets are the horeca industry, traditional market and supermarket, respectively,” said Sulami, Import Manager. As demand for RTC seafood products continues to grow, she said the company this year will add new product variants and expand the capacity of its cold storage facility. She also revealed that within the next five years, the company will set up an RTC seafood processing plant in Tangerang, Banten province. “We can’t always rely on imports,” she added.
|Hoa Phat plans for 300 million eggs annually by 2018 |
[12 April 2017] With two layer farms of 600,000 layers/year each, Hoa Phat Poultry One member Co, Ltd, a subsidiary of Hoa Phat Group in Vietnam is aiming at a projected capacity of 300 million fresh, high quality chicken eggs by 2018, a representative of Hoa Phat told Asian Agribiz. The two farms are located in strategic areas, Phu Tho province in the north and Dong Nai province in the south of Vietnam, which help the Group cover the entire market, the Group said. Currently, Hoa Phat is building its first PS farm in Phu Tho province with a population of 25,000 birds. "In our 5-year strategic development plan, we are targeting 300 million eggs per year; 75,000 beef cows, 650,000 finishing hogs and 1 million tonnes of feed," he said.
|China reopens to US beef imports|
[12 April 2017] China has opened once again to US beef imports. White House spokesman Sean Spicer said President Donald Trump achieved this during his meeting last week with Chinese President Xi Jinping. Bloomberg reported that in September, China removed a ban on shipments of some US beef products, opening up the trade for the first time since 2003. Still, conditions attached to the re-opening, including Chinese requirements for an acceptably traceable U.S. meat supply, have held up sales. China is the world’s second-biggest beef buyer. This could provide new opportunities for packers including Tyson Foods Inc., the largest US meat processor, and Cargill Inc., the top American ground-beef maker.
|Bulog allocates USD59m to absorb local corn|
[12 April 2017] Indonesia’s move to stop corn imports this year has seen the State Logistics Agency (Bulog) being allocated USD 59 million to absorb 250,000 tonnes of local corn with 15% moisture content at a reference price of USD 0.23 per kg. Tri Wahyudi Saleh, Bulog Procurement Director said so far, the agency partners with the private sector to dry the corn it buys. However, it will soon set up its own silos equipped with corn dryers in different corn producing regions. The Ministry of Agriculture targets this year’s corn production to reach 30 million tonnes from a total planted area of 6.43 million ha.
|Singapore has high potential for halal food|
[12 April 2017] Singapore’s halal industry is expanding with the number of halal premises rising five-fold in the past decade, said a report from USDA’s Foreign Agricultural Service. “Muslims in Singapore have high purchasing power thus offering high potential for halal food, after Malaysia and Indonesia,” said the report. The country’s halal certifying body Muis recorded that certification rose from 533 in 2000 to 2941 in 2014. Malek Mattar, Deputy President of Singapore’s Malay Chamber of Commerce and Industry said the Singapore brand is well recognised. “Thus our certification and consultation standards are sought after.”
|Sri Lanka chicken consumption on the rise|
[12 April 2017] Sri Lankans on average consumed 7.3 kg of chicken meat per capita last year, an increase from 6.9 kg a year earlier, reported the Daily Mirror. It is unclear if the controlled prices imposed on chicken meat contributed to this surge in demand but certainly the rise in wages, moderate inflation and higher disposable income had a direct impact on the latest numbers, said Cheng Chih Kwong, Primus, Chief Executive of Three Acre Farms PLC. Sri Lanka abandoned its controlled price for chicken in March as supply-side restrictions were hurting the industry as feed had to be imported at higher prices because of a shortage in local corn.
|Indonesia sees increasing export value of animal health products|
[12 April 2017] Indonesia’s Directorate General of Livestock & Animal Health (DGLAH) has released export recommendations for animal health products for this year valued at USD 1.97 billion. The recommendations include pharmaceutical products, biological products and premixes. According to I Ketut Diarmita, DGLAH Director General, last year Indonesia exported 459,902 tonnes of animal health products valued at USD 1.38 billion. Exports went to 57 countries in Asia, Africa, America and Europe. Mr Diarmita said DGLAH will continue to emphasise Good Animal Health Products Manufacturing Practices to local producers. “We have to continue to improve our standards to stay competitive,” he said.
|BRF’s OneFoods consolidates to becomes world’s largest halal food company|
[11 April 2017] BRF’s new subsidiary OneFoods Holdings Ltd is working towards consolidating its position as the largest halal food company in the world. “We will achieve this in several ways. One is by diversifying our production platform. We currently produce halal foods in Brazil, UAE and Malaysia. Turkey is the next country on this list,” Marcelo Assis, OneFoods Country Director for Malaysia, told Asian Agribiz referring to the acquisition of Banvit, Turkey’s largest poultry producer and market leader, in January. BRF is planning to raise funds either via an initial public offering and listing on the London Stock Exchange of OneFoods Holding Ltd or through a private placement. Reuters said the company is looking to raise some USD 1.5 billion.
|China to see pig production increase by 1.4 million tonnes|
[11 April 2017] Despite declining sow numbers global pork productivity will continue to grow in the coming years, thanks to farm improvement, better genetics and standardised feed, said Rabobank in its Pork Quarterly report. China, Vietnam as well as Mexico and Russia will see the highest production increases due to productivity growth. Here, average productivity is still low compared with other countries. In China, Rabobank sees production increasing by 1.4 million tonnes, despite a reduction of 1 million sows in 2016. “With productivity being a much more important driver for pork production growth than sow herd expansion, the global pork industry should move with caution and expand the sow herd at rates that will not overwhelm the market, and can therefore support positive margins.”
|Japfa donates 250k eggs |
[11 April 2017] Japfa Comfeed Indonesia, in cooperation with the Directorate General of Livestock & Animal Health, donated 250,000 eggs to 30 orphanages in Greater Jakarta and West Java. Rachmat Indrajaya, External Relations Director said the same initiative was also done in Central Java and East Java. This was part of the company’s commitment to increase animal protein consumption in the country. “Compared with countries like Singapore and Malaysia, our animal protein consumption is low,” said Mr Indrajaya. Through its JAPFA4Kids program, the company has conducted nutrition campaigns in 649 elementary schools in 21 provinces.
|Chicken prices drop in Vietnam on oversupply, imports and AI fear|
[11 April 2017] Farmers of both coloured and white chicken in Dong Nai province are facing severe losses as prices have steadily declined over the last two month, induced by oversupply and compounded by low priced imported chicken and concerns over bird flu and unsafe chicken meat. The Dong Nai Animal Production Association reported coloured broiler and white broiler prices recorded in March fell to USD 0.88 and USD 0.53/kg respectively, down from USD 1.53 and USD 1.34/kg in December. "We have experienced bird flu and other diseases outbreaks before, but this is the lowest it has dropped to in 10 years," said Nguyen Kim Doan - Deputy Director of Dong Nai Animal Production Association.
|Indonesia needs 64,552t of beef for fasting month and Ied Fitr|
[11 April 2017] Indonesia’s Ministry of Agriculture says it will need 64,552 tonnes of beef from April-June during the Muslim fasting month of Ramadhan, followed by the Ied Fitr celebrations. Agung Suganda, Director of Veterinary Public Health, said the need will be met by three different sources: 168,664 heads of cattle; 14,665 tonnes of imported beef; and 44,800 tonnes of imported buffalo meat. Mr Suganda said the directorate general met with the State Logistics Agency (Bulog), meat importers and feedlotters to ensure that there will be no supply shortage during the period.
|Pangasius price in Vietnam escalates on short supply|
[11 April 2017] The price of tra fish or pangasius in Vietnam’s Mekong Delta has surged in the last two months due to a supply shortage. Duong Nghia Quoc, Chairman of Vietnam Tra Fish Association said due to the strong decline in breeding stock at the end of last year, hatcheries stopped stocking to wait for the price to recover. “Now the price of breeding tra fish has tripled that of the average price,” he said, adding that farmers are also facing poor weather conditions which has prevented the start of a new farming cycle. “The intense situation may continue until June, and the industry may supply only 50% of total demand for export,” said Mr Quoc.
|Japfa to embark on efficiency, careful spending strategies|
[10 April 2017] Japfa Comfeed Indonesia will apply emphasise efficiency and careful capital outlay strategies for this year. Marcus Kusbyanto Setyadharma, Director said the company expects challenge in the animal feed business this year. Moreover, the government has limited corn imports in lieu of local corns. As a result, Japfa will add six new silos with a total capacity of 42,000 tonnes to its existing silos in 14 different locations. Japfa will also add new corn dryers with a capacity of 1000 tonnes/day. With this, the company is confident of recording 10% growth this year. Amid the dynamic situation of the poultry business, Japfa last year booked a net profit of USD 163 million, four times higher than the previous year. Mr Setyadharma said its animal feed business last year contributed 45% to total sales of USD 2 billion.
|Omelette business EggStop takes off with franchising|
[10 April 2017] Omelette shop EggStop has 35 outlets in four countries, namely India, UAE, Tanzania and Malaysia. Some 50 shops including one in Qatar are in the pipeline. “I saw the potential for a cost-effective affordable food brand that can be franchised for small and medium-sized entrepreneurs. That was how I arrived at an omelette brand where there are no prevailing competitors,” Dr MA Babu, Managing Director of Dubai-based Zon Foods Global Ltd, which operates The EggShop, told Asian Agribiz. He said he hopes to have 100 outlets by next year spread across 10 countries. They will be a combination of franchisees, joint ventures and independently-owned outlets. The franchisees come in four formats, namely dine-in, food court, kiosk and mobile.
|Guangdong Wens appoints Wen Zhifen as new Chairman|
[10 April 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said it has appointed its 47-year-old Vice Chairman and Chief Executive Officer Wen Zhifen as Chairman, replacing his elder brother Wen Pengcheng. The Wen’s family controls the company with a combined 16.74% stake. In 2016, Wens generated revenue of USD 8.6 billion, up 23% from a year earlier, while its net profit jumped 90% to USD 1.7 billion. However, the company expects its profit in the first quarter of 2017 to decline 55% year-on-year, due to the contraction in pig prices and the impact of H7N9 on its poultry business.
Region’s layer industry opts for quality additives
[10 April 2017]
While producing value-added eggs require additional feed ingredients and a fresh feed formula, the ASIAN AGRIBIZ learns that feed producers and layer farmers in Asia are opting for quality additives to produce enriched eggs.
Organic additives gaining in popularity among egg producers
One trend seen across the region is the shift from fish meal, and meat and bone meal (MBM) as additives. Be it for safety reasons, that fishy smell or for claims that hens fed on a ‘vegetarian’ diet, fish meal, and MBM are becoming less popular. Organic additives as opposed to synthetic products are now seeing better acceptance levels by producers, said Vijaya Raghavan, a Malaysian nutritionist. “Take vitamin E, for example. In its natural form, the additive is better available and has a better rate of absorption. This enhances the quality of the egg,” he said, adding that the organic form of the additive is usually coated and blended in amino acid, and transported through the system.
Selenium source tops list of ‘enriching’ ingredients
Selenium is by far the most popular ‘enriching’ ingredient. Besides enriching eggs, the additive also benefits the hens themselves. “It can be used as a functional feed additive for all animal species,” said William Wang, Technical Sales Manager, Lallemand Animal Nutrition, a France-based manufacturer of yeast and bacteria products. “Selenium helps reduce the negative effects of free radicals that is linked to physical and environmental stresses,” said Dr Wang, who is based in China. One benefit of organic selenium eggs is that when kept chilled it will see the yolk colour still intact even after one month. Also common among organic mineral additives is that they contribute to better shell quality.
Manipulating hens’ diets to produce low cholesterol eggs
Even after the cholesterol myth of the 80s was busted, there is demand for low cholesterol eggs. Producers in Asia are obliging, and doing it in different ways. Dr Raghavan said low cholesterol eggs can be achieved by manipulating the hens’ diet with ingredients like flaxseed, an excellent source of omega-3 fatty acids. Thikhamporn Charoenwai, Poultry Nutritionist, Hamlet Protein in Thailand, said vitamin E and selenium produce eggs that are low in cholesterol. “When layers consume vitamin E or selenium, their cholesterol level will drop and the cholesterol level in eggs will also be reduced,” she added.
SIH uses vegetable proteins for low cholesterol eggs
A leading Indonesia producer Sumber Inti Harapan (SIH) Group uses vegetable proteins such as soy and corn gluten meal, instead of animal protein sources such as fish meal or meat and bone meal to produce its low cholesterol eggs. Yoseph Setiabudi, owner, said vegetable protein is better for low cholesterol eggs. To produce its omega-3 eggs, SIH Group uses Alltech’s DHA-rich algae product SP1. According to Alltech, the product enriches eggs with DHA, food for the brain. Most importantly, supplementing hens with the product has no adverse effects on animal growth or food product taste.
Hens and herbs
Herbal eggs are another fad in Asia. SIH adds essential oils from sweet almond, olives, soybean, lavender, eucalyptus, coconut, peppermint, sesame seeds and citrus oil to drinking water and feed at 0.2 ml/kg of body weight for five straight days with a three-day interval, said Mr Setiabudi. Some Thai producers add essential oils to their feed formulation to produce these types of eggs. India’s Kansal Agro uses a mixture of 16 herbs in powder form and vegetable protein in its feed to fortify the eggs. The herbs, such as neem, tulsi or basil, amla and haritaki or harde, have antifungal, antibacterial, antiviral and antioxidant properties, said ML Kansal, Technical Director.
|Asian Agribiz's Pig Feed Quality Conference is sold out|
[07 April 2017] Asian Agribiz's 2017 Pig Feed Quality Conference which will be held on 25-26 April (Tuesday- Wednesday) in Ho Chi Minh City, Vietnam, has been completely sold out. Speakers from academia and industry will present a strong technical program with papers detailing the latest regionally relevant research with practical take-home messages to help pig producers and feed millers improve productivity, profit margins and sustainability. There will be simultaneous audio translation into Vietnamese, and both English and Vietnamese slide shows. Key presentations and speakers will include:
- Precision feeding – unlocking the genetic potential of the pig by Dr Bruno Silva, Professor in Swine Nutrition and Production, Univeridade Federal de Minas Gerais, Brazil
- Optimising carcass weight in pigs without compromising carcass quality by Tony Edwards, Pig Nutrition and Production Consultant, ACE Livestock Consulting, Australia
- Feeding to maximise carcass weight and quality by David Henman, Manager Research & Innovation, Rivalea, Australia.
|BRF’s OneFoods to harness the energy of globalisation to produce halal foods|
[07 April 2017] BRF’s new subsidiary OneFoods Holdings Ltd, launched in January and billed as the world’s largest halal food company, will harness the energy of globalisation to come up with halal products. “We believe that globalisation of food supply chains is a positive thing, especially when it is accompanied by more trade in agricultural and food products, and freer access to markets,” Marcelo Assis, OneFoods Country Director for Malaysia, told Asian Agribiz. Besides a fully integrated production chain with grain storage facilities to feedmills, hatcheries and slaughterhouses, OneFoods is supported with halal-certified modern plants. Currently BRF operates eight further processing plants in Brazil, as well as one processing plant each in UAE and Malaysia.
|Minh Phu develops mangrove-based shrimp culture with farmers|
[07 April 2017] Vietnam’s largest shrimp exporter Minh Phu Seafood Corporation has set up a subsidiary called Minh Phu Integrated Mangrove Shrimp Production Social to handle its shrimp partnership project. Formed in February, the project has attracted 900 shrimp farmers with more than 5000ha of shrimp culture area. “The farmers will be supported with broodstock, guidance on sustainable farming techniques for exports, and secured sales. Up to 100 farmers have contributed their land as a share to the project. In turn, they will receive an equal share of the profit of the whole value chain,” said Nguyen Van Phong, Vice Director of the subsidiary. Le Van Quang, Chairman of Minh Phu Group said the project aims to produce organic certified shrimp, which is priced 20-30% higher than industrial farmed shrimp.
|China’s greenfield pig farms achieve productivity with modernisation|
[07 April 2017] Greenfield projects in China – with modern barns, standardised feed and new genetics – are making a big difference in pork production growths, said Rabobank in its Pork Quarterly report. Pork production growth is not only achieved by increasing the number of sows. Productivity growth and increasing slaughter weights are more important as shown by recent developments in sow herd and global pork production, said Rabobank. “As an example, China’s continuous exit of smaller farms and expansion of industrialised players driven by policies and market competition have led to an estimated improvement in the average number of piglets reared per sow per year from 13-14 in 2012 to 16-17 now. The productivity of China’s best farms is now comparable to European levels,” said Rabobank.
|Vietnam sees growing demand for pangasius|
[07 April 2017] According to Vietnam’s Chamber of Commerce and Industry, demand for tra fish or pangasius in both traditional and potential markets will see an increase of 20%. Specifically, export to China grew by 88% to reach almost 17,000 tonnes in 2015. China is expected to replace the US to become the largest market for tra fish. This year the ministry plans to maintain the total area of tra fish farming at 5000-5500ha with a yield of 1.15 million tonnes, valued at USD 1.7 billion.
|CAG highlights meat quality issue in Gujarat|
[07 April 2017] The Controller and Auditor General of India (CAG) has blamed the Gujarat government for not bothering to control the quality of meat sold in the state. The CAG highlighted that though the state has a sizeable non-vegetarian population (39.05%), the Food & Drug Control Administration (FDCA) had not taken any measures to bring slaughterhouses and meat shops under the Food Safety Standard (FSS) Act. The audit report revealed that there are only nine slaughterhouses under the municipal corporation/municipality area and all are functioning without licenses. The audit report rebuked the authorities because out of thousands of meat shops in the state, only 55 had been registered when the FSS Act mandates compulsory registration/license to carry on any food business, the Times Of India reported.
|CPF to acquire UK-based Westbridge Food Group |
[06 April 2017] CPF Investment Limited, a wholly owned subsidiary of Charoen Pokphand Foods (CPF), has signed a share purchase agreement with Westbridge Food Group Limited (WFGL) worth around USD 75 million. UK-based WFGL specialises in selling meat and ready-made products to the retail, foodservice and food manufacturing sectors in the UK and the EU. Adirek Sripratak, Chairman of the Executive Committee of CPF said the investment will allow CPF to expand its distribution network. “Most of WFGL’s markets are new customers, rather than existing CPF clients. WFGL’s products are mainly chicken, shrimp, fish and processed foods which are in line with CPF’s products,” Mr Adirek added. In addition, CPF will have import quota licences for chicken products to the EU since WFGL has more than 100 subsidiaries which have import quotas.
|Masan Group gets USD250m investment from KKR|
[06 April 2017] KKR is investing USD 250 million in Vietnam’s food and beverage company Masan Group Corp and its unit to help boost their competitiveness in the country’s USD 18 billion meat industry. The New York private-equity firm will pay USD 150 million for a 7.5% stake in Masan Nutri-Science, Masan's integrated meat business. It will provide support to Masan Nutri-Science as it aims to build the meat business in Vietnam. Nguyen Dang Quang, Chairman of Masan Group said he wants to provide cheap quality meat and food to Vietnam’s 90 million consumers. “With KKR’s investment, we will be in a stronger position to deliver on our commitment to consumers.”
|Beef industry likely to face price pressure|
[06 April 2017] A number of significant uncertainties in the global beef market, could put future pressure on prices, according to the Rabobank Global Beef Quarterly Q1 2017. "Uncertainties surrounding US trade policy with key beef export markets, and the risk of avian influenza (AI) outbreaks in the US that could limit poultry exports, could place pressure on all US protein markets,” said Angus Gidley-Baird, Rabobank Senior Animal Protein Analyst. “Furthermore, the situation following accusations of irregularities in meat inspection in Brazil illustrates how sensitive the market is to shocks.”
Highlights in Asian Feed Magazine, April/May 2017
[06 April 2017]
Crysbro enjoys better margins with new feedmill
Year in year out Sri Lanka faces the same situation – corn shortage, which adds pressure to the growth of its poultry industry. A joint venture company Fortune Agro Industries with its feedmill could bring a change, RACHAEL PHILIP writes.
Sun Group targets niche market with herb-fed antibiotic-free chicken
Thailand’s Sun Group dealt with global challenges ahead of time by investing in a herb feeding program for its broilers, putting it in a good position to scrap the use of antibiotics. CEO Chamlong Termglinchan tells PAYUNGSAK WIRIYABUNDITKUL that a second feedmill, mainly for the production of herb feed, is in the pipeline.
Improving gut health and performance of broilers fed lower digestible protein diets
As competition between protein sources for food and feed intensifies, with consequent price increases, poultry producers will need to consider using less digestible raw materials. Dr TIM GOOSSENS and DANIEL F. RAMIREZ report on recent trial that demonstrated that a precision delivery butyrate feed additive could improve the gut health and performance of broilers feed a poorly digestible diet.
Getting more value from your nutritional data
Dr CLAIRE XU, Dr KEVIN LIU, and CECILE GADY present MyPNE, a new digital decision-making tool that offers animal feed producers several benefits, including getting better performance with accurate formulation.
Segregation in bulk silos
TOM WINOWISKI reviews how segregation of fines occurs during feed bulk transport, handling and storage in bulk silos, and its impact on nutrient composition and animal performance/growth. Improving pellet quality will help by reducing the total amount of fines.
|Manipulating dietary protein and fibre to improve intestinal health in pigs|
[05 April 2017] Delegates to Asian Agribiz's Pig Feed Quality Conference (Ho Chi Minh City, Vietnam on April 25-26) will hear from Jae Cheol Kim, Technical Manager ASPAC, AB Vista Asia Pte Ltd, that maintaining intestinal health when the pig industry withdraws in-feed antimicrobial compounds is a critical issue for nutritionists. Both research and commercial experience suggest that reducing protein content and increasing protein digestibility will reduce proliferation of proteolytic pathogens and production of toxic protein fermentation by-products. Dr Jae recommends the use of highly digestible protein, fine grinding of protein meals and exogenous enzyme supplementation particularly phytase superdosing. Visit Pig Feed QC2017 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|RNI to venture into broiler, eggs business|
[05 April 2017] Indonesia’s state-owned company Rajawali Nusantara Indonesia (RNI) plans to develop an integrated poultry business in Cirebon, West Java. This will be realised in cooperation with Berdikari United Livestock, a subsidiary of state-owned, integrated beef cattle company PT Berdikari. B Didik Prasetyo, RNI President Director said it will set up broiler breeding farms, commercial broiler farms, a feedmill, a broiler processing plant and a commercial layer farm. “For cold storage, marketing and distribution, we will leverage off the network of our subsidiary PT Rajawali Nusindo,” he said. Meanwhile Agung P Murdanoto, RNI Business Development & Investment said the farms will feature closed-houses, while the processing plant will have a capacity of 2000 birds per hour. Mr Murdanoto revealed that in the first stage, RNI plans to produce 450,000 broilers and 12-14 tonnes of eggs per month.
|CJ Group sees strong growth in Vietnam|
[05 April 2017] South Korean conglomerate CJ Group saw up to 30% growth in Vietnam last year. It earned over USD 750 million in revenue and USD 36.7 million in pre-tax profit, the company said. Its feed division recorded the highest revenue, followed by food production and entertainment, Chang Bok Sang, CEO of CJ Group Vietnam, said. The company also broke ground for its fifth feedmill in the northern province of Ha Nam. The plant is slated for completion in September. This year, CJ will continue to seek cooperation opportunities with Vietnamese firms, while following its M&A strategy.
|Evonik supports aquaculture progress in Indonesia|
[05 April 2017] Evonik held an aquaculture seminar in Surabaya, East Java on March 27, in support of the growth of sustainable aquaculture in Indonesia. Mercyawati Subianto, Senior Business Manager of Evonik Indonesia said Indonesia is already ranked among the most productive countries in aquaculture production and further growth will be supported by strong demand for fish and shrimp. "With the right transfer of knowledge on aqua nutrition and best aquaculture practices, Indonesia is well positioned to be one of the top aquaculture nations in the world,” said Girish Channarayapatna, Technical Service Director of Evonik (SEA).
|US urges Taiwan to lift ban on US meats|
[05 April 2017] In response to a US report urging Taiwan to fully open its market to US pork and beef, Taiwan’s government stated food safety and the rights of their local farmers are important considerations for determining whether to participate in international trade deals. In the report the US said it will continue to urge Taiwan to remove its ban on US pork and beef products. The import of US meats is a controversial issue in Taiwan-US relations, as Taiwan has been insistent on barring meat products from the US that contain traces of the leanness-enhancing veterinary drug ractopamine on account of its potential health hazards. Alex Huang, Presidential Office spokesman said Taiwan will conduct risk assessments based on scientific evidence and international regulations to ensure food safety in the country, reported Taiwan News.
|CP Group to invest USD 2 billion in the Philippines |
[04 April 2017] Thailand's Charoen Pokphand Group (CP Group) is investing an estimated USD 2 billion in the Philippines over the next five years to produce pork and chicken both for the local and export market, Philippines’s Agriculture Secretary Manny Piñol said recently. CP Group operates mainly in the Luzon area, but would like to expand to the Visayas and Mindanao where the threat of typhoons is less, Mr Piñol said. CP Group Chairman Dhanin Chearavanont said the company has decided to invest more because the Philippines is the only country in Asia that is free from foot and mouth disease and avian Influenza. The hog and chicken production project of CP Group will be divided into 10 modules utilising about 6,000 hectares per module for the production of corn and soybeans for feed production.
|Indonesia reduces production of broiler DOC, male layer DOC|
[04 April 2017] Indonesia’s Ministry of Agriculture circulated an official letter on March 27 asking broiler PS breeders to reduce production of broiler DOC by as much as 5 million chicks per week, or around 8% of the total production of each breeder. In the letter received by Asian Agribiz, the ministry also asked layer PS breeders to reduce their male layer DOC production by 20%. Finally, layer farmers with a population of more than 100,000 birdshave been asked to cull birds aged more than 70 weeks. According to the ministry, cross monitoring by a team from the ministry at province and regency levels will be done to monitor the implementation. The move is to raise the price of live birds and eggs at farmer level, which have fallen since early this year.
|Growing awareness on benefits of trace minerals|
[04 April 2017] More producers are opting for organic trace minerals on their farms. “There has been a shift in the region,” Katharina Gottke, Technical Sales Manager Asia-Pacific, Biochem Zusatzstoffe told Asian Agribiz. A rough estimate puts its down to about 30% of producers using some portion of organic trace minerals in feed. “They are likely combining it with inorganic products to keep costs down. It doesn’t sound like much but it is growing, and coming from [Asia] where only inorganic was used, makes this interesting,” she said. There is an awareness that trace minerals bring higher performance, less mineral excretion and better availability for animals, she added.
Highlights in Asian Poultry Magazine, April 2017
[04 April 2017]
Skylark drives modernisation in layer sector
India’s major poultry group Skylark is driving sales of an imported layer breed, aiming to gain a bigger share in the country, where 80% of hens come from to a locally developed breed. Speaking to CHAKRIT RIDMONTRI, Skylark’s Managing Director Jagbir S. Dhull says he is confident of growing in the Indian layer market with the breed.
Sunner Food raising value as a solutions provider
Sunner Food is the first local Chinese supplier of cooked meat products for McDonald’s. It is building a new cooked chicken plant to meet the growing demand from quick service restaurants in China. Chairwoman Fu Fenfang told ALLEN SHU that the company is switching from an only products supplier to a complete solutions provider, so as to grow with China’s QSR sector.
Crysbro expands with eye on exports
In a razor thin margin market, a fully integrated business with a hand in every activity of the trade makes all the difference. For Sri Lankan integrator Crysbro Group, producing its own feed has not only brought savings but helped the company slash poultry production days by three to five, Mohamed Imtiaz, Chairman, tells RACHAEL PHILIP.
Recent findings on selenium’s roles & functions for poultry
While inorganic selenium is commonly used for feed supplements, recent research has confirmed that organic Se, specifically seleno-methionine (Se-Met) or seleno hydroxymethionine (Se-OH-Met), is more easily integrated into the body’s metabolism to ensure optimum productivity and health write MICKAËL BRIENS and KEVIN LIU.
Natural betaine – a nutritional aid in managing broiler gut health
ANA GAVRäU* presents a recent broiler trial conducted in Thailand, which shows that under high temperature and poor hygiene stress conditions, supplementation with betaine improved litter quality by reducing moisture content.
Multidimensional causal factors of ‘wet litter’ in broilers – Part 2 – health and nutrition factors
Wet litter in poultry sheds is a complex issue, with many inter-related causes. MARK DUNLOP, AMY MOSS, PETER GROVES, STUART WILKINSON, RICHARD STUETZ and PETER SELLE review contributing issues stemming from health and nutrition.
|CJ CheilJedang acquires 65% of Minh Dat|
[03 April 2017] CJ CheilJedang has acquired a controlling stake in Vietnamese food processing company Minh Dat Food for USD 13.44 million. The Korean conglomerate signed a contract to take over a 64.9% stake in the fish and meat processing firm last November. The deal will be sealed this month. The Vietnamese company is the market leader in meatball sales and posted USD 11.61 million revenue last year. CJ CheilJedang entered Vietnam in 1999 establishing CJ Vina Agri and has been aggressively strengthening its foothold there since last year. Last year the group acquired stakes in three domestic food enterprises, namely Vissan, Cau Tre and Minh Dat.
|Hy-Line China building world’s largest hatchery|
[03 April 2017] Layer breeder Huayu Agricultural Technology Co, in which Hy-Line International holds a 55% stake, said it has kicked off construction of a hatchery with annual capacity of 100 million layer chicks in Handan, north China’s Hebei province. The project is scheduled to be completed next February and will be the largest hatchery in the world for layers, according to the company. Huayu has been accelerating expansion. It currently has a GP stock of 100,000 sets and is capable of hatching 150 million commercial chicks a year.
|Benefits of using enzymes in feed|
[03 April 2017] Asia’s feed producers are facing several problems including availability and price fluctuation of raw material and alternative feeds are sometimes less digestible or contain antinutritional factors (ANF), Karel Bierman, Global Director Enzymes of Huvepharma told Asian Agribiz on the sidelines of a seminar in Bangkok, Thailand last week. “It’s not easy to just replace one feed product with another product and we have to handle ANF as well. That's where enzymes can help,” he said. Enzymes can break ANF and improve digestibility, Mr Bierman said. Enzymes can also equalize differences between feedstuffs and create higher value for feeds.
|Corn price in Indonesia increases due to logistics cost|
[03 April 2017] Some corn producing regions in Indonesia are now in the harvesting period. However, the price of corn in March escalated from USD 0.30 per kg in February to USD 0.34 at feedmill level, according to the Feed Industry & Veterinary Division of the Indonesian Chamber of Commerce & Industry. Tony J Kristianto, Chairman of the National Corn Council said the price increase was caused by logistic costs since many feedmills are located far from the corn farms. “Most corn is produced outside Java while the buyers are from Java,” he said. According to him, the government should consider developing corn farms close to feedmills as they are the main buyers of the harvest.
|Meat sellers in India strike amid clampdown on illegal slaughterhouses|
[03 April 2017] Dozens of meat seller in Uttar Pradesh have launched an indefinite strike to protest a crackdown on illegal abattoirs after a Hindu right-wing leader took office recently. The strike is causing a meat shortage. The Straits Times noted that the crackdown could also affect poor families that can afford only buffalo meat, the cheapest meat on the market. Goat meat costs around USD 6.92 per kg while buffalo meat costs USD 1.84-2.00 per kg. New Chief Minister Yogi Adityanath has ordered the closure of illegal slaughterhouses and family-run butcher shops operating without proper licences. He has also ordered a crackdown on cow smuggling.
|NSP-enzymes improve pig performance and uphold carcass quality|
[31 March 2017] Dr Alex Wu, Regional Technical & Business Development Manager, Adisseo Asia Pacific Pte Ltd, will present a series of studies at Asian Agribiz's Pig Feed Quality Conference in Ho Chin Minh City this April. He will address the effect of supplementing a specific NSP-enzymes on the ileal digestibility of major grains as well as diets of various formulations, in growing and finishing pigs, and the effect on their performance and carcass characteristics. Clearly, these results demonstrated, for growing pigs, the enzyme supplementation enhanced ileal digestible energy by 60-70 kcal or 0.25-0.30 MJ/kg; apparent ileal digestibility of amino acids by 1-3 percentage units, which can be translated to improvement in growth performance or economic return by 2-5 percentage units. The addition of the enzymes did not affect carcass characteristics. Visit Pig Feed QC2017 or contact Sutasinee Lake at email@example.com for more information and to register.
|TCRS mulls opening outlets in east Malaysia|
[31 March 2017] Malaysian food chain The Chicken Rice Shop (TCRS) aims to open two more outlets in Sarawak and another three in Sabah in the next two to three years. The company has 89 outlets, including one each in Brunei, Myanmar and Singapore. Chief Executive Officer Wong Kah Lin said the response to the restaurant from Sarawakians had been encouraging. The company recently opened an outlet in Kuching, Sarawak. “We are now eyeing other major towns like Sibu or Bintulu for new outlets. We are also awaiting the completion of the Sarawak Aeon Building for our second outlet in Kuching,” she said, adding the company also has an outlet in Miri.
|Brazil scandal proves opportune moment for Aussie beef in China |
[31 March 2017] Four days after China issued a ban on Brazilian meat and just one day before it lifted the ban, China and Australia signed a meat trade deal, expanding their December 2015 free trade deal. The new agreement gives more Australian chilled-meat processors the opportunity to ship to China, reported Asia Nikkei. The estimated eventual boost to Australia’s annual meat trade with China is about USD 305.4 million, with the National Farmers' Federation predicting meat exports to China could soar. Fiona Simson, President, said thanks to the new agreement, “it is now a reality that red meat exports to China could soon reach more than USD 765 million”.
|Thai import regulations to increase demand for alternative ingredients|
[31 March 2017] Thailand’s corn production is expected to decline to 4.9 mmt in marketing year 2017/2018, down 6% from the previous year, according to the USDA's GAIN report. Corn exports will likely decrease significantly due to strong domestic demand, driven by domestic corn purchase requirements under the new feed wheat import regulations. This is expected to result in increased imports of alternative feed ingredients such as distiller’s dried grains with soluble (DDGS) and broken rice. Wheat imports are likely to decline significantly in marketing year 2016/2017 and 2017/2018. Meanwhile, the Thai Feed Mill Association expects total feed demand to increase to 19.6 mmt in 2017, up 5% from 2016.
|World Bank releases report on Vietnamese abattoirs|
[31 March 2017] The World Bank in a report recently said up to 76% of pork sold in traditional markets in Vietnam are slaughtered in substandard abattoirs, while the rate of pork infected with Salmonella is estimated at 30-40%. The World Bank conducted a survey in Vietnam between August 2016 and February 2017 in the two major cities of Hanoi and Ho Chi Minh. The survey also found that pig farmers were using banned substances to raise pigs. The report suggested that Vietnam inspects food hygiene and safety at farms and production places instead rather than at markets and restaurants. Vietnam should improve infrastructure, such as markets and slaughterhouses, to raise the quality of food hygiene and safety.
|Monsanto bullish on Indonesia’s biotech corn seed market|
[31 March 2017] Monsanto Indonesia is bullish about the market potential of biotech corn seeds in Indonesia. Ganesh Pamugar Satyagraha, President Director said it has been developing the seed since 2000 with an investment of around USD 75 million per year for research and development. Biotech corn seeds can produce 10-15 tonnes of corn per ha, compared to 5-8 tonnes with hybrid seeds. Pushing the government’s corn self-sufficiency program through land expansion alone is not enough, according to Mr Satyagraha. “We need to invest in technology, and biotech corn seeds is one of them.” In Southeast Asia, Vietnam and the Philippines have adopted the technology, while the US has been using biotech corn seeds for about 20 years. In Indonesia, the use of biotech corn seed is pending approval from the Indonesian Biosafety Clearing House.
|CPF to export cooked duck meat to New Zealand|
[30 March 2017] New Zealand for the first time has allowed the import of cooked and processed duck meat from Thailand, with Charoen Pokphand Foods (CPF) being the first Thai company to export the products, said Pisit Ohmpornnuwat, Chief Operating Officer of Duck Business at CPF. New Zealand's Ministry for Primary Industries has recently approved import health standards for duck meat and duck meat products from Thailand. Mr Pisit said New Zealand is a promising market and CPF is seeing business opportunities there. “New Zealand has high standards of food safety. Hence, the fact that we can export cooked duck meat to the country, reflecting that our products have met global standards,” he added. CPF will ship its first consignment of cooked duck meat to New Zealand this month.
|Broiler farmers in Boyolali demand business fairness|
[30 March 2017] Indonesian broiler farmers in Boyolali, East Java recently gave hundreds of broilers away for free in protest against declining prices. In the last six months, they suffered huge losses. The price of live birds dropped to USD 0.90 per kg, while the production cost is around USD 1.12-1.27. At the same time, the price of dressed birds has been stable at USD 1.88 per kg. Sriyadi, Coordinator of the protest said this was a result of expansions by broiler integrators. “The integrators continue to expand, even into layer farming. Both the local and central governments must control this or we, the independent farmers, will lose out. We only demand fair business practices,” he said.
|Cargill, New Hope to launch oilseed facility in H1 2017|
[30 March 2017] Cargill Inc plans to open a soy crushing facility as part of a joint venture with China’s New Hope Liuhe Co. The facility will be able to process about 5000 tonnes daily when it comes on stream, reported FeedNavigator. “Cargill and New Hope have jointly invested in an oilseeds processing facility in Huanghua of Hebei Province and is expected to be fully operational in the first half of 2017,” Rita Aspen, Regional Communications Director, Cargill, told Asian Agribiz. The US-based agribusiness company already operates four oilseed crushing plants in China, both in Guangdong and Jiangsu province. New Hope and provisional state companies will own 51% of the project, and Cargill will own the remaining 49%.
|Thailand’s feed consumption to grow 5% this year|
[30 March 2017] Thailand’s feed consumption is expected to continue growing this year. The Thai Feed Mill Association said it expects total feed demand to increase to 19.6 million tonnes in 2017, a 5% increase from last year due to growing poultry and swine production which accounts for nearly 90% of total feed demand. Poultry production, which accounts for approximately 55% of total feed demand, is expected to grow by 5% from the previous year, particularly for boiler production, which accounts for around 40% of total feed demand. The increase in boiler production is driven by chicken meat exports. Last November, South Korea lifted their import ban on Thai chicken.
|KFC in South Korea to use only local poultry|
[30 March 2017] KFC in South Korea announced on March 23 that it will use only domestic poultry for its chicken menus. The chain currently uses a mix of domestic and Brazilian chicken to make patties for its burgers, reported The Investor. The decision is in direct response to consumer concerns surrounding Brazilian chicken due to the rotten meat scandal. “Even though we don't use the product in question, we have made the decision to relieve consumer concerns,” said a KFC official. On March 20, the Ministry of Food and Drug Safety halted the distribution of imported Brazilian chicken, following media reports that food processing firms there had bribed government officials to overlook inspections.
|Pig Feed Quality Conference - Reducing the use of in-feed antibiotics|
[29 March 2017] Nutritional strategies for maintaining good health and performance to stimulate gut development and health, in order to improve growth performance while minimising the use of AGPs will be considered in six presentations during the 2017 Asian Agribiz, Pig Feed Quality Conference, on 25-26 April, in Ho Chi Minh City, Vietnam. Registrations close on April 11. Visit Pig Feed QC2017 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Cambodia’s Chip Mong to build USD60m plant |
[29 March 2017] Cambodia’s Chip Mong Group said it will invest USD 60 million to build a large scale feedmill as well as pig farms. Leang Khun, Director of Chip Mong Group, said his company is expected to start feed production in 2019. The facility will be capable of producing 200,000 tonnes of feed a year for pigs, of which 70% will be used for the company’s 280,000 pigs and the rest sold to the local market. “We will use the latest technology from Europe for feed production,” he said. “Through this we will reduce imports of feed and be able to supply fresh, high quality meat at a fair price.”
|CP China partners with Alibaba for egg traceability|
[29 March 2017] CP China said it has signed an agreement with AliHealth, a unit of Chinese e-commerce giant Alibaba, to provide traceability for its egg products. Consumers can get the egg production information by scanning a QR code on packages with mobile Taobao, a B2C platform owned by Alibaba. The egg products with traceability will be launched around mid-2017. “We hope to extend the service to our frozen food, poultry and dairy products,” CP said in a statement. The company is a major egg supplier in China with 23 plants nationwide, or a combined stock of approximately 8 million layers.
|Thailand to look for alternative feed ingredients|
[29 March 2017] The Thai Feed Millers Association said this year’s demand for corn in poultry and swine feed is expected to increase to 8 million tonnes, far above local corn production of 4-5 million tonnes. Top this with the corn production decline and the regulations on wheat imports, the FAS predicts that the country will likely source alternative feed ingredients to support the feed industry. “Strong feed demand, insufficient domestic corn production, and new regulations limiting the import of feed wheat are expected to result in increased imports of alternative feed ingredients such as distiller’s dried grains with soluble (DDGS),” said the FAS report.
|World grain consumption continues to grow |
[29 March 2017] Higher meat consumption is driving feed imports into Southeast Asia, participants of the Grains Transportation Conference held in Vietnam last week, heard. The region imports more than half of US' production. “The next driver of global soybean demand will be Southeast Asia. This area has experienced strong growth of soybean and soymeal import over the past 15 years, driven by robust expansion of pork and broiler meat production, of which Vietnam is at the top in terms of both feed and animal protein demand growth in Asia,” said John Baize, President, John C Baize & Association. “Vietnam meanwhile is expected to overtake Japan to become the largest importer in 3-5 years,” said Manuez Sanchez, Assistant to Regional Director (Southern Asia and Oceania), US Grains Council.
|Syngenta Indonesia launches new hybrid corn seed|
[29 March 2017] Syngenta Indonesia has officially launched its new hybrid corn seed NKPerkasa in East Java. This seed is resistant to downy mildew, a disease caused by a fungus-like organism. In Java, this disease reduced corn production by 40%. In addition, this seed can produce an average of 9.7 tonnes of corn per ha. “Syngenta is proud to launch this innovation. This is our contribution to the government’s corn self-sufficiency program. We hope the new seed becomes the perfect solution for farmers to overcome downy mildew and increase their harvest,” said Parveen Kathuria, Country Head Indonesia of Syngenta, in a press-release received by Asian Agribiz. In the first phase, NKPerkasa seeds will be distributed mainly in East Java and Central Java, but in the future, it will also be available in Sumatera.
|Thailand to increase sale of feed grade rice stock|
[28 March 2017] Thailand is likely to see historical levels of rice production in the current marketing year of 2017/2018. According to the US’ Global Agriculture Information Network (Gain) report, the country is expecting 19.5 million tonnes of the commodity, a 5% increase from the previous marketing year. As such the government will increase its sale of non-food quality government rice stocks to increase the use of broken rice by feed producers this year and next year. Corn production, meanwhile, is forecasted to decline 4.9 million tonnes, down 6% from MY2016/17. The country is expecting corn exports to decrease significantly due to strong domestic demand after the government introduced new wheat import regulations last November.
|China resumes inspection of Brazilian meat imports|
[28 March 2017] The General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), China’s product quality watchdog, has resumed inspection of meat products imported from Brazil. According to an AQSIQ internal instruction dated March 25 and obtained by Asian Agribiz, Brazil’s Ministry of Agriculture has confirmed with Chinese authorities that all meats exported to China were not involved in the recent scandal. But imports from a Brazilian plant coded SIF 530 will still be suspended, and any shipments on the way or have recently arrived should be rejected, as the plant is recalling its exports. SIF 530 marks the products from Seara, a unit of Brazil’s JBS.
|Malaysia’s efforts at containing spread of bird flu is working |
[28 March 2017] The H5N1 outbreak in Malaysia, which began on February 28 killing backyard chickens in Kelantan state, near Kota Bharu, in the north-eastern part of peninsular Malaysia, has not spread to other new areas. Datuk Jeffrey Ng, President of the Federation of Livestock Farmers' Associations of Malaysia told Asian Agribiz that the government’s efforts in containing the spread of the disease is working. “There have been no new cases and this is good news,” he said, urging the public and industry to continue working with the government. “There has also been a lot of rumours saying the disease has spread to other parts of the country – these are unfounded and does not help the industry,” he said.
|Monsanto Indonesia records 360% increase in corn seed sales|
[28 March 2017] In its first half (September 2016 – February 2017) report, Monsanto Indonesia recorded a fantastic increase in corn seed sales of 368% compared to the same period last year. During the period, it sold more than 2000 tonnes of corn seed. Ganesh Pamugar Satyagraha, President Director said the company usually records sales increase in H2 which is the dry season, “but this year we also recorded a huge sales growth during the wet season in H1.” Due to this increase, Monsanto must escalate its corn seed production by 1300 tonnes to meet demand until year-end. Last year it produced 6000 tonnes of corn seed and this stock is estimated to run out in July this year. For 2018, Mr Satyagraha revealed that it plans to produce 8000 tonnes of corn seed. Besides selling its products in domestic markets, Monsanto also exports to the Philippines and Vietnam.
Regional Dairy update
[28 March 2017]
Vietnam dairy industry expects to maintain strong growth
By 2020 Vietnam’s dairy market value is expected to double, hitting USD 8.2 billion. In 2016 the country recorded 283,900 head, double that in 2011. The country’s milk production is also enjoying quick growth with total fresh milk production doubled to 795,444 tonnes in 2016 from five years ago. “Vietnam’s dairy cow herd is projected to double by 2020, reaching 500,000 head, producing 1 billion tonnes of fresh raw milk and 2.6 billion litres of liquid milk. This makes up 38% of domestic demand,” Tong Xuan Chinh, Deputy Head, Department of Livestock Production, Ministry of Agriculture and Rural Development told Asian Agribiz.
Fonterra Indonesia eyes bigger market share in UHT milk category
Fonterra Brand Indonesia (FBI) will work towards gaining a bigger market share in the UHT milk category since national demand in the category grows annually at 12%. Afiffudin, Scientific & Regulatory Affairs and Food Safety & Quality Director said UHT milk demand grows faster than powder milk due to several factors such as the growth of retail industry, lifestyle changes and affordable price of UHT milk. Since five years ago FBI has been developing its UHT milk brands namely Anlene and Boneeto. In the last two years, it seriously developed the brands by adding new taste variants.
Vinamilk helps Cu Chi farmers upgrade their breeds
Vinamilk said is working with farmers in the Cu Chi area to upgrade their existing herd. Trinh Quoc Dung, Vinamilk Executive Director Raw Materials Development, told Asian Agribiz, that Cu Chi has the largest number of dairy farms and the highest daily milk yield in Vietnam. It delivers some 170 tonnes of milk daily. “From 2017 to 2021, Vinamilk and the Ho Chi Minh City council will upgrade Cu Chi’s current herd stock to higher yielding herds,” he said. “Land is limited but by improving on the quality of the cows we can increase milk yields. With support in farming practice and training, we believe the milk yield in Cu Chi can increase by 20-30%.”
Boyolali to set up milk company
The local government of Boyolali in Central Java, Indonesia plans to set up a local government-owned milk company to support the growth of the dairy industry in the region. According to Bambang Jiyanto, Head of the region’s Livestock & Fishery Agency, once the company has been set up, “the first thing to do is we will initiate pilot projects of modern dairy farming that raise good genetic quality cows.” These pilot projects will be the place for dairy cattle farmers in the region to learn and adopt good farming practices. The other role of the company is to absorb milk from the farmers with good price. Based on local government data, there are about 70,000 heads of dairy cattle in Boyolali.
India records increase in milk production
India’s Agriculture Ministry released production figures of major livestock products for the July-October period of last year which indicate that the result so far has been on track to meet the overall yearly target of 2016-17. According to the estimate, the country’s milk production has touched 105.42 million tonnes so far (in eight months) this year as against the targeted production of 163.74 million tonnes in 2016-17. “The total milk production has increased from 52.21 million tonnes during 2015-16 (rainy) to 54.50 million tonnes during 2016-17 (rainy) registering a growth of 4.38%,” said the ministry in its estimate, as quoted by the Times of India.
Fonterra increases awards for its dairy scholarship
Fonterra Brand Indonesia, under its Fonterra Dairy Scholarship (FDS), plans to give dairy scholarship to 45 awardees this year, compared to 12 awardees a year when it started in 2013. Afiffudin, Scientific & Regulatory Affairs and Food Safety & Quality Director, said for this year the awardees will comprise of 75% dairy cattle farmers and 25% staff of the Ministry of Agriculture. He explained that duration of the FDS is three months. In the first month, the awardees will stay in Baturaden, Central Java to learn about dairy cattle farming management in tropical conditions. The second month, they will stay in New Zealand to learn from dairy industry players in the country. The last month, they will put into practice both theory and experience. “We will keep monitoring their progress even after the program,” said Mr Afiffudin.
|Reducing the use of in-feed antibiotics|
[24 March 2017] There is growing societal and regulatory pressure on pig producers to change their practices as antibiotic resistance has emerged as a major public health concern. The 2017 Pig Feed Quality Conference by Asian Agribiz on 25-26 April in Ho Chi Minh City, Vietnam, will features six papers from world-leading speakers. They will consider nutritional strategies and the use of feed additives to help reduce the use of in-feed antibiotics, while maintaining or even improving pig productivity. Dr Charles Starkey, Auburn University, USA will present the keynote address, Replacement of AGP’s: Discussion of Alternative Ingredients, Usage, Mechanism of Action, and Potential for Synergies. Visit Pig FeedQC 2017 or contact Sutasinee Lake at email@example.com for more information and to register.
|Indonesia sanctions import of feeder buffalos from Australia|
[24 March 2017] Indonesia’s Ministry of Agriculture has allowed the import feeder buffalos from Australia this year. I Ketut Diarmita, Director General of Livestock and Animal Health said it also inviting local and foreign investors to invest in buffalo farming and import breeding buffalos from Australia. Until March this year, the ministry has given recommendations to three importers to import 2400 heads of feeder buffalo. Didiek Purwanto, Vice Chairman of the Indonesian Beef Cattle Businessmen's Association (Gapuspindo) believes feeder cattle importers in the country will not respond positively to the policy. “Feedloters need bigger pens to raise the feeder buffalo, as well as extra energy and special expertise,” he said.
|Beijing DBN to acquire US pig breeder farm for USD 16.5 mln|
[24 March 2017] Leading Chinese feedmiller Beijing DBN Technology Group said its indirectly wholly-owned unit Changnong Co has signed with Max Waldo, owner of Waldo Farms Inc, to buy a 100% stake in the US pig breeding firm for USD 16.5 million. DBN also plans to invest another USD 10 million in the DeWitt, Nebraska -based family business that was founded in 1895. “The purchase of pig genetics will help our expansion of both feed and farming segments,” DBN said. The deal is subject to approvals by Beijing Municipal Commission of Commerce (BJCOC) and Committee of Foreign Investment in the United States (CFIUS).
|Erber Group plans new clinical pig health research center in Thailand|
[24 March 2017] The Erber Group has announced plans to open a new clinical research center for pig health at the Khamphaeng Saen Campus of Kasetsart University in Nakhon Pathom province of Thailand. The research initiative includes a new 2300 sqm research center and construction is set to begin in 2017. The facilities will be equipped with high-efficiency particulate arrestance (HEPA) filter ventilation and waste disinfection systems. Research will have a particular focus on biosecurity and development of innovative technologies in the field of animal health. Upon signing the research agreement at VIV Asia 2017 in Bangkok, Dr Erich Erber, founder of Biomin and the Erber Group said: “I am glad that we can look forward to close collaboration with eminent Thai specialists and professors on animal health to address key issues for safe and sustainable food.”
|Perinus eyes higher catch fish production |
[24 March 2017] Indonesia’s state-owned fishery company Perikanan Nusantara (Perinus) is aiming for its fish catching business this year to grow by 40% from 10,000 tonnes in the previous year. Dendi Anggi Gumilang, President Director said following the target, it will also set up a new fish processing unit and a cold storage facility with an investment of USD 22.5 million. Last year, its processing business produced 3342 tonnes of processed fish such as fish balls, sausages and fingers. “This year we will try to directly export our products. We will also re-activate our branch offices to boost domestic sales,” said Mr Gumilang.
|Special presentation on designing farm trials at Pig Feed QC|
[23 March 2017] Asian Agribiz’s 2017 Pig Feed Quality Conference will be held on 25-26 April in Ho Chi Minh City, Vietnam. Based on feedback from last year’s conference, this year the conference will cover three topics namely Feeding for heavier bodyweights without sacrificing carcass quality; Managing low protein diets and Reducing the use of infeed antibiotics. David Henman, Manager Research & Innovation, Rivalea, Australia will also do a special presentation on Designing effective on farm trials. Visit Pig Feed QC2017 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|China takes ‘provisional’ measures on Brazilian meat imports|
[23 March 2017] China is concerned about the quality issue surrounding meat products from Brazil, said China’s Ministry of Foreign Affairs. “After confirming with relevant departments, we have learnt that the competent authorities in China have taken preventive and provisional measures of protection to ensure the safety of Chinese consumers,” spokeswoman Hua Chunying told a press conference. A staff with the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), China’s product quality watchdog, told Asian Agribiz that they have received an internal instruction to stop inspection of Brazilian meat products from March 19, and those imports newly completing inspection should be kept at the ports.
|CP Indonesia exports further processed products to Papua New Guinea|
[23 March 2017] Indonesia’s largest poultry integrator Charoen Pokphand (CP) Indonesia on March 13 exported 5999.25 kg of further processed chicken products to Papua New Guinea. The company's exports prior to this were to Japan, until the latter stopped chicken imports from Indonesia in 2003. Hadi Gunawan, President Commissioner said the 19 different products exported, were ordered by a supermarket chain in Papua New Guinea. “We also hope to export further processed products to Japan this year. In addition, we have an eye on halal markets such as Saudi Arabia and Kuwait,” he said.
|Betagro opens its first pet food plant in Thailand|
[23 March 2017] Betagro officially opened its first pet food plant in Lopburi province, Thailand on March 21. The company has been engaged in pet food business for almost 12 years, producing it at its feedmills, Vasit Taepaisitphongse, President of Betagro Group said. The new plant produces dry pet food and pet snacks for dogs and cats. In its first phase, the company invested USD 34.64 million in the new facility, which has a monthly production capacity of 4,000 tonnes. While 70% of the production capacity will serve the local market, 30% will target overseas markets including Asean countries, Japan and Europe, said Chayanon Kittayachaweng, Executive Vice President & Chief Operating Officer of Betagro’s Agro Business. The company will tentatively increase monthly production capacity to 7,000 tonnes in the second phase in early 2018 and to 12,000 tonnes in the third phase, Mr Chayanon said.
|Lipids can vary in metabolised energy content|
[23 March 2017] Lipid nutrition, used extensively in the industry as a source of oil to increase the energy value in the animal industry, could be the weak link in the feed formula. “Animal diet is formulated with external sources of oil but the same source of oil, from the same supplier can vary in metabolised energy content,” Tan Hai Ming, President, Kemin Industries (Asia) Pte Ltd, told Asian Agribiz. The company’s award-winning Lipid Evaluation Test assesses the oxidative quality and energy value of fats and oils commonly used in feed. “Then depending on the price of the various sources of oils the producer can choose to substitute with Lysoforte.” Kemin launched Lysoforte Liquid at VIV Asia 2017, in Bangkok, last week.
|Indonesia revitalises floating net cages to increase fish production|
[23 March 2017] Indonesia’s Ministry of Fisheries and Marine Affairs will revitalise 250 units of floating net cages throughout the country this year. According to Susi Pudjiastuti, Minister of Fisheries and Marine Affairs, the 250-units will be able to produce more than 342 tonnes of fish per month with a value of USD 2.5 million. Besides the ministry, state-owned fishery company Perikanan Indonesia (Perindo) also plans to revitalise 250 units of floating net cage for grouper fish in six clusters in the country namely Bali, Natuna, South Konawe, Ambon, Lampung and Padang. Perindo’s revitalisation is expected to double grouper fish production and increase the demand for grouper fish fries.
|Asian countries impose restrictions on Brazilian meat products|
[22 March 2017] China, the EU and Chile have announced restrictions on Brazilian meat products, while the European Union said it would stop buying from companies implicated in the rotten meat scandal. South Korea however, canceled its suspension of meat imports from Brazil, while Hong Kong was added to the list of countries temporarily banning Brazilian product This follows evidence discovered last Friday that some Brazilian meat-packers had been selling rotten and substandard produce for several years. The meat industry plays an important part in the Brazilian economy, with exports worth more than USD 12 billion a year. Meanwhile, Singapore's Agri-Food and Veterinary Authority (AVA) said the Island Republic does not import meat from any of the processing plants involved in the meat scandal in Brazil. In a statement issued to the media, AVA added that it has stepped up surveillance of imported meat and meat products from Brazil and that it is 'monitoring the situation closely'.
|Indonesia stops duck imports from Malaysia due to AI outbreak|
[22 March 2017] Following the outbreak of H5N1 avian influenza (AI) in Kelantan state of Malaysia, Indonesia through the Directorate General of Livestock and Animal Health (DGLAH) has decided to stop duck imports from Malaysia. I Ketut Diarmita, Director General of DGLAH said the move was precautionary. Ade Zulkarnain, Chairman of the Indonesian Local Poultry Farmers Association (Himpuli) told Asian Agribiz that this is a turning point for duck farmers and producers in the country to increase their production and meet market demand, “especially to restaurants using ducks from Malaysia.”
|New Hope Liuhe building new broiler plant in Shandong|
[22 March 2017] New Hope Liuhe Co said it has started construction of a new broiler processing plant in Anqiu, Shandong province that is designed to slaughter 30 million birds and produce 30,000 tonnes of cooked products a year. Expected to be completed in October, “it will be one the highest-standard cooked poultry projects in China and a flagship plant for New Hope,” the company said. The top Chinese feedmiller has built an annual poultry slaughtering capacity of 1 billion birds, and Media Officer Feng Ming told Asian Agribiz that it processed about 300 million broilers and 480 million ducks in 2015. Combined slaughtering rose to about 800 million birds last year.
|Betagro targets 10% chicken export growth in 2017|
[22 March 2017] Thailand’s Betagro said it aims for 10% chicken export volume growth this year, up from 70,000 tonnes in 2016, Vasit Taepaisitphongse, President of Betagro Group said recently. While 85% of the company’s chicken exports last year was cooked meat, the rest was fresh chicken. Japan and the EU have been Betagro’s top export destinations, with 50% of the company’s chicken exports to Japan and 45% to the EU. Betagro plans to expand its chicken exports to the Middle East, Scandinavia and Asian region, to countries such as Singapore and Hong Kong, he said. Meanwhile, it also plans to increase sales of its own-brand products including Betagro and S-Pure in wholesale and retail outlets. Betagro said it has employed strict quality control measures in its chicken production including food quality and safety.
|Vietnam’s pangasius exports up 9.6%|
[22 March 2017] Vietnamese pangasius exports generated USD 1.71 billion in 2016, a year-on-year increase of 9.6%, according to the Vietnam Association of Seafood Producers and Exporters (Vasep). Sales to the US and China showed the highest growth during the analysed period while exports to the EU continued to decline. China is now the second largest importer of Vietnamese pangasius, overtaking the EU as of September last year. Throughout the whole year, sales to the Chinese market reached USD 304.7 million, representing a growth of 88.7% compared to the previous year. Meanwhile, the Vietnam Pangasius Association said the pangasius farming area in the Mekong Delta reduced over 3400ha last year, and the output topped 1 million tonnes.
|Biomin releases global phytogenic feed additives survey results|
[22 March 2017] The global phytogenic feed additives (PFA), or botanicals, market could surpass USD 1 billion by 2023. A survey by nutrition and additives producer Biomin, lists digestibility enhancement as the top reason the livestock industry uses PFA. Other reasons are the antimicrobial effects of phytogenics and the use of PFAs within an antibiotic growth promoter replacement strategy. Some 1140 agribusiness professionals from across the globe provided their views on the use of PFA as part of the 2017 Biomin Phytogenic Feed Additives Survey. “These results confirm that veterinarians, nutritionists, live production managers and other professionals in every region of the world have identified clearly defined benefits to using phytogenics in their operations,” said Michael Noonan, Global Product Manager Phytogenics at Biomin.
|CPF receives German QS standard, targets more exports to the EU |
[21 March 2017] Charoen Pokphand Foods (CPF) said it shipped the first consignment of fresh poultry products to Germany last week after being granted Germany’s QS Standard. CPF said it is the first Thai company and the only non-EU country to win the world renowned production criteria. The QS Standard is considered the highest standard in terms of food safety for German consumers and is increasingly recognized by consumers in other EU countries. Virachai Ratanabanchuen, Chief Operating Officer of CPF’s chicken business, said the company is committed to making its production process safe to win confidence of customers worldwide including the EU. In its first shipment, CPF exported 23,000 kg of fresh poultry to Germany, and it aims to export 70,000 tonnes of chicken and chicken products totalling USD 288.17 million to the EU in 2017.
|CP Prima to produce 640kt of aqua feed|
[21 March 2017] Indonesia’s largest aqua feed producer Central Proteina Prima, or popularly known as CP Prima, targets its aqua feed production to reach 640,000 tonnes this year, a 7% increase from last year. According to Frahma Alamiarso, Head of Corporate Communications, of the targeted figures, production of fish and shrimp feed is expected to reach 490,000 tonnes and 150,000 tonnes, respectively. Mr Alamiarso said that last year its aqua feed production target was 570,000 tonnes, but the realisation was 595,000 tonnes. He attributed this to farm/pond expansion in several regions in the country.
|Malaysian state declares ‘disaster’ as H5N1 outbreak spreads|
[21 March 2017] The H5N1 avian flu outbreak in the northeastern state of Kelantan in Malaysia has spread to more districts. The state executive council has declared the outbreak a ‘state disaster’. The resources of all relevant departments in the state will be used to control the outbreak. At the moment only the Veterinary Department is involved in efforts to control the disease. Besides the three villages in Pasir Mas, 18 villages in the Kota Baru district are now affected by the outbreaks.
|Phosphea promotes new identity|
[21 March 2017] Phosphea which was known as Timab for 40 years, took the opportunity at VIV to introduce its new identity as well as promote its presence in the region. Speaking to Asian Agribiz, Pol Abiven, Business Director said the market in Asia is vibrant and competition is growing. "But this challenges us to improve and consider new strategies to address the market as well as to improve our products to suit the needs of this evolving market. We are also building our team in Asia to be able to offer better support to our customers."
|CP Prima fosters shrimp farmers in Southeast Sulawesi|
[21 March 2017] Indonesia’s largest aqua feed maker and shrimp producer Central Proteina Prima, popularly known as CP Prima, has intensified its activities in Kolaka, Southeast Sulawesi to foster (vannamei) shrimp farmers in the regency. In 2011, the company changed its strategy from only selling shrimp feed to being a partner. In this role, besides selling feed and shrimp fry, it gives farmers in the region free assistance such as pond preparation, farming management and disease prevention. Satrio Nugroho, Marketing Manager for Sulawesi region said it also connects the farmers with buyers, mainly from the shrimp processing industry. He said CP Prima currently fosters farmers that in total own 185 ha of ponds with an annual production of 700 tonnes of shrimp. Every month the company sells around 10-12 million shrimp fries to farmers.
|Myanmar to work with US firm to develop shrimp industry|
[21 March 2017] Though Myanmar’s shrimp export is much less than that of Vietnam and Thailand, it is set to raise its production with expert technical assistance from the US, said Kyaw Tun Myint, President, Myanmar Shrimp Association. Myanmar plans to start importing brood stock from the US and reduce imports from Thailand. This would help reduce the risk of diseases in shrimp production. “We will start farming white shrimp this year. If we are successful, it will not only support our food security but also may reduce our trade deficit by up to 25%,” he said. Currently, black tiger prawn is the most popular in the country but he believes white shrimp will replace black tiger soon.
Onsite at VIV 2017, Bangkok Thailand
with the Asian Agribiz team
[20 March 2017]
Wisium wins innovation award
Wisium, the international brand of Neovia's premix business, won the Innovation Award at VIV 2017 for its Perfegg product. Perfegg is a 100% natural mix of plant extracts that targets hen and egg production. It is said to help producers achieve significant improvement in bird performance, particularly towards the end of the laying period, by increasing egg production and extending the laying period. The company also took the opportunity at VIV to launch the Wisium brand in Thailand.
Petersime promotes Operational Excellence Program
Belgium based hatchery specialist Petersime promoted its Operational Excellence Program at the show. Through this program, Petersime makes sure good management of all aspects in the hatchery operations of its clients. The main goals are to maximise incubation results, minimise operational costs, achieve uncompromised biosecurity, and maximise chick quality beyond hatchery. Rudy Verhelst, Marketing Manager said some of its Asian clients have already joined the program, “and they have seen improvements in their operations.”
Baader Linco sees more interest in Thailand and Malaysia
Evisceration and cut-up systems were two key systems promoted by Baader Linco at the show. Baader Linco’s fully automatic evisceration and giblet harvesting runs at a high processing speed without compromising product quality and food safety. Meanwhile, its ProFlex cut-up system offer reliable and precise portioning of chickens and rests on a base of solid frames and high quality units. Ng Yee Teck, General Manager of Baader Asia said: “The evisceration and cut-up systems have enjoyed good sales in Thailand, China and South Korea. Now we are seeing more interest for the systems in Malaysia and the Philippines.” The company also promoted its Compact Plant 1200, a slaughtering and manual evisceration line designed to process 1200 broilers per hour with a live weight range of 800 to 3500 g. “We have installed this compact line in Indonesia, for Sierad Produce,” Mr Ng revealed.
Pas Reform introduces integrated hatchery solutions
Pas Reform, which specialises in hatchery technology, said it supplies fully-integrated hatchery solutions that include incubation systems, climate control and hatchery automation, Harm Langen, CEO of Pas Reform BV, said at VIV 2017. “All systems are connected to a central control unit and that’s a complete package and is unique in the industry. No one offers totally integrated solutions like we do,” he said. Pas Reform’s SmartCenterPro is a hatchery information system created to deliver precise, consistent process control through every level of hatchery operations. “Our customers are growing bigger. Large hatcheries now need to run much more on data and data-based decision making than in the past,” Mr Langen added. Also, Pas Reform can give clients advice based on the data and support them to improve performance.
Onsite at VIV 2017, Bangkok Thailand
with the Asian Agribiz team
[17 March 2017]
Delacon receives approval for Biostrong 510
Delacon, a pioneer in phytogenic feed additives, announced that it received authorisation from the European Commission for Biostrong 510 EC as a zootechnical additive for chickens and minor avian species, both for fattening and reared for laying. The authorisation is based on the independent opinion of the European Food Safety Authority and the evaluation by the European Union Reference Laboratory, both confirming the product’s safety for workers, animals, consumers and environment, as well as its efficacy on animal performance. CEO Markus Dedl told Asian Agribiz that this new achievement “show that there are alternatives in the market that are becoming mainstream, which are also science based and can be trusted.”
DSM promotes its Eubiotics program
Antibiotic free production of livestock is being driven by retailers rather than legislators. DSM's response to this trend is seen in a broad but specific portfolio under the company's Eubiotics program. This includes essential oils, organic acids as well as probiotics, as well as a combination of these products with enzymes, Enzo Trimigliozzi, VP Enzymes and Eubiotics told Asian Agribiz. "Our ultimate goal with this is to support growth, maintain the health of livestock and improve productivity, in step with what producers are aiming for."
Marel Poultry presents live cut-up, deboning demo
Marel Poultry presented a unique live demonstration of its cut-up and deboning systems at the show. During the live demo, its experts showed how its cut-up and deboning systems help achieve the highest quality, most precise cuts and manoeuvres. “The live demo also reflects the trend to automation as a mean to improve quality, hygiene and food safety. Manual processes are so complicated, and processing plants will need many skilled operators. However, there is a global shortage of such expert work force,” said Edwin de Bruin, Marketing Campaign Coordinator. The company also revealed new poultry processing innovations namely Stork Thigh Fillet system, AMF-i breast cap deboning system, Stork Second Joint Wing Cutter HY system, Marel I-Cut 122 Portion Cutter, and RoboBatcher Flex.
Synbio Tech promotes probiotics for poultry, livestock
Taiwan based Synbio Tech promoted the Synlac, probiotics for poultry and livestock. According to I-Ju Chang, Marketing Manager, the product contains four different bacteria namely Lactobacillus acidophilus LAP5, Lactobacillus plantarum LP28, Enterococcus faecium EF08 and Bacillus subtilis. “These four bacteria work in synergy to maintain intestinal microflora, improve immunity, improve feed conversion and prevent diarrhoea,” she said. Synlac is available in four different preparations: Synlac WaterMix for drinking water, Synlac FeedAd for feed on-top application, and Synlac Premix and Synlac Concentrate for feedmill. “For feedmill application, heat stability during pelleting is an important issue. Therefore, Synlac is coated to increase its stability and efficacy,” Ms Chang said, adding that Synlac has gained good sales in Taiwan, China, the Phillippines and Bangladesh.
Strategies to replace AGP use
Government regulations coupled with market and consumer demand will soon make the use of antibiotic growth promoters a thing of the past, but poultry and livestock producers are still concerned about the effect this will have on productivity. At Diamond V’s seminar on Antibiotic Use and Replacement Strategies, Dr Jason Frank, Director of Non-Ruminant Research and Technical Support explained the need for producers to re-evaluate the entire production program, including biosecurity, vaccination protocols, genetics, management and nutrition. He discussed how this can be achieved, and how Diamond V’s Original XPC and SynGenX are part of an effective strategy to reduce the use of antibiotics.
Evonik launches new probiotics product in Asia
Evonik has expanded its portfolio in Asia with the launch of a probiotic, Ecobiol, at VIV Bangkok. The product, designed for use in poultry production and aquaculture, was acquired by Evonik from Norel in 2016. “Evonik’s business model is based on customer needs- our target with probiotics is to extend our partnership from amino acid nutrition to gut health solutions,” said Alfred Petri, Senior Vice President Sales & Marketing Services Animal Nutrition. According to him, a global customer survey by the company in 2015 showed that probiotics were rated with highest potential to replace antibiotic growth promoters. In addition, there is a strong synergy of amino acid nutrition and gut health solutions. “That’s why Evonik decided to go for probiotics,” Dr Petri said.
Termotecnica Pericoli to launch its new cone fan in Asia by year-end
Italy’s Termotecnica Pericoli, which specialises in heating, cooling and ventilation equipment, said it will tentatively launch its new cone fan, EOC 53S in Europe in October and in Asia by year-end, Eng. Luca Piana, Quality Development at Termotecnica Pericoli S.r.l. said. “We have a new propeller design to increase performance and efficiency. The new cone fan will also reduce power consumption,” he said. The company has developed a prototype and it will test the fan in Italy and then move the production to its facility in Malaysia, said Elena Andreo, Communications and Marketing Coordinator. Pericoli is also seeing business opportunities amid bird flu outbreaks in many parts of the world. “To avoid these problems, producers will need to rearrange their production with new ventilation systems and our cone fan can create a good environment inside the farm,” Ms Andreo said.
Nutriad sees high growth potential in Asia
Nutriad, which produces feed additive solutions for livestock and aquaculture, said it sees high growth potential in Asia due to the region’s growing feed volume and population. Erik Visser, CEO of Nutriad said at VIV 2017, “in my view, feed additives will grow faster than compound feed and the need for our products will increase in coming years as we will be looking to produce more with less and to produce in a more sustainable manner.” To be more efficient, Mr Visser said producers cannot do it by adding feed additives alone, it involves complete farm management. Meanwhile, Nutriad is focusing on four segments, which are palatability, digestive performance, mycotoxin management and preservation & functional ingredients. The company is also growing its aquaculture business in Asia by adding resources and technical commercial support.
Darling Ingredients to set up sales office in Bangkok
Darling Ingredients Inc, a global producer of animal proteins, minerals and specialties from organic by-products, said it is setting up an office in Bangkok to coordinate its sales in Asia. “We are mulling a registration and looking for a location in Bangkok, and the office is expected to be operational within this year,” Geert van der Velden, Sales Manager Sonac told Asian Agribiz. The company’s Sonac brand has set up five joint-venture plants in China for local supply since 2008, and Mr Velden said that they are also planning to build a new factory in south China’s Guangdong province, to tap the organic raw materials in the region.
Onsite at VIV 2017, Bangkok Thailand
with the Asian Agribiz team
[16 March 2017]
Chore-Time launches Konavi broiler feeder
Chore-Time took the opportunity at VIV Asia to launch its new Konavi broiler feeder for the first time in the region. “Asia is the first region to know this new product. We developed this product for about two years based on feedback from our Asian customers, as well as in Latin America,” said Dave Laurenz, Director of Sales & Marketing for Asia & North America. Konavi’s streamlined, open design gives bird easy access to feed for fast gains and consistent performance. Plus, its angled cone with anti-rake fins discourages birds from standing in the feeders. The result is cleaner, healthier feed that keeps birds eating and prevents feed waste. Made using heavy-duty, durable polypropylene plastic, Konavi was engineered to resist the effects of ultraviolet light.
Foodmate promotes automation systems
Netherlands-based poultry processing equipment supplier Foodmate promoted its systems of deboning, weighing and the latest technology of camera vision grading. “These systems are automated to ensure optimum yields and efficiency at high capacity. We observe that Asia is now ready for automation,” said David Hazenbroek, President. “However, we are also aware that this region has different specifications for the systems. Therefore, we modify our systems to meet Asian specifications.” Mr Hazonbroek revealed that at the show it also announced its new automatic leg deboning system which will be officially launched in the next two months. “This system measures the length of each bird’s leg. As a result, we will get equal cuts which are better than manual cuts,” he said, adding that it already has a pre-order from a customer in South Korea.
Alltech plans to build new factory in south China
Alltech is considering building a new factory in the coastal province of Fujian or Guangdong in south China, said Mark Lyons, Global Vice President and Head of Greater China told Asian Agribiz, that a clear decision will be made in 2-3 months. The planned factory will have the same size, or about 40,000 tonnes a year, with Alltech’s existing plant in Tianjin of north China, and could be expanded as necessary. After that, its Tianjin plant will focus on serving ruminants, with the new plant providing solutions for swine, chicken and aquaculture in China. Dr Lyons said there is great potential for Alltech to grow with China’s aquafeed segment as it has expanded its product line with M&As.
Nedap to add weight monitoring for sow feeding systems in Asia
The Netherlands-based livestock management machinery manufacturer Nedap said it will soon introduce to Asia a weight monitoring function that is integrated with its sow feeding and separation systems. “It will be the first to capture sow weights and provide up to date data producers need to make sound management decisions,” said Lily Lei, Marketing Manager China. “The new systems are scheduled to be launched at the China Animal Husbandry Expo in May,” she told Asian Agribiz. The company set up a Shanghai subsidiary in 2009 for equipment assembling and post sales services, and has recorded more than 200 successful cases in China, including installations at CP China and Guangdong Wens. It partners with distributors in other Asian countries.
Animine launches CoRouge
Animine launched CoRouge, a new source of copper that has higher copper concentration than copper sulfate. Valérie Kromm, Product Manager, told Asian Agribiz that compared to the more commonly used copper sulfate that has 25% copper concentration, CoRouge has 75% which is highly bioavailable. It also has low water solubility which means it does not interact with and degrade vitamins in the premix and the feed. Studies have also shown that CoRouge has growth promoting effects in both broilers and piglets.
Hypor focuses on meat quality
Asian consumers are increasingly demanding high quality pork meat and Hypor is capable of meeting this demand. “Our main focus now is meat quality, and we have strong relationships with our customers and we want to expand that. We are not trying to be the biggest, but we want to supply the best products,” Bart Vercoulen, Area Manager for Southeast Asia and South Asia told Asian Agribiz. One of these products is the Kanto boar, which has made its mark in South Korea, Japan and Taiwan markets, as well as in Thailand and Vietnam.
Automation accelerates growth of Twinpack’s eggs cargo system
Eggs cargo system is an alternative to distribute eggs on trolley or on cardboard egg tray and the system, which contains a specific plastic pallet and a special plastic divider, ensures maximum egg protection during transportation, Jacco Wagelaar, Sales Manager of Twinpack Special Products B.V. said at VIV 2017 in Bangkok, Thailand. When the system arrives with the machine, it can be automated with a robot. Meanwhile, people who sell eggs are becoming more professional. “When they buy bigger machines, they need automation and they also need systems like ours,” Mr Wagelaar added. Twinpack currently offers a standard tray (small and medium egg size) and jumbo tray (medium and large egg size). “Our new release in two months will be a new jumbo tray for even bigger eggs,” he said, adding it’s a trend in the industry that eggs get bigger.
Intracare’s Quick Scan addresses inadequate water quality in Asia
Asia hasn’t had adequate water quality for animal production, Arjan van de Vondervoort, Marketing and Sales Manager of Intracare said at VIV 2017. “I visited many farms in Asia including Malaysia, Cambodia and Thailand and everywhere we did the water test, around 85% of the cases, water quality was below the normal level,” he said. Mr Vondervoort sees a good opportunity to educate farmers on how to keep the line clean. Intracare has introduced Intraclean Quick Scan kit, which will make the regular supervising of water quality easy for livestock producers. The Quick scan can determine, quickly and precisely, how contaminated the drinking water is by means of the level of adenosine triphosphate (ATP). Meanwhile, Intra Hydrocare has been specially developed to clean and disinfect drinking water systems.
Anpario grows team, rolls out fresh brand image at VIV
Two things are happening at Anpario Plc. Firstly, the company is expanding its team in Asia from just two to seven. “We need to get more localised,” said Richard Chong, Regional Commercial Director – Asia. “In this way we can also provide better support to our distributors.” Secondly, on January 1 the company rolled out a fresh look, together with a new brand image. “We want to put forth one corporate direction and one message, and streamline our products for our end users. This will bring cost savings and better focus for our customers,” said Wendy Wakeman, Group Technical Director, indicating that brands such as Optivite, Meriden Animal Health and Kiotechagil, acquired by Anpario between 2006 and 2012, will eventually disappear.
Adisseo’s new guide shows nutrient value of key feed raw material
Adisseo Asia Pacific Pte Ltd has published the first APAC Ingredient Animal Book 2016 to help producers formulate diets more precisely. “We have a huge database in the region based on the thousands of analysis we have conducted. By publishing this book we hope to present the nutrient value of key raw materials used in the region,” said Clare Relandeau, Regional Business Manager. “The goal of the 40-page book is that the industry can make best use of their ingredients. When our customers have precise nutrition in mind, then they are better able to understand how enzymes can increase digestibility. This also offers better formulation at lower cost and consistent performance,” she added.
Onsite at VIV 2017, Bangkok Thailand, with Asian Agribiz
[15 March 2017]
The buzz around VIV 2017 which opens today at BITEC in Bangkok and ends on March 17, began at the start of this week. A number of exhibitors held seminars across the city and beyond, recognising this as a good opportunity to bring their support team and clients together. Following is a round-up of some of the events held on March 13 and 14. Watch this space for daily updates by the Asian Agribiz team.
Breeding for beyond 2025
During the Hubbard Forum, Yves Jégo, Global R&D Director said the company is working to further improve its broiler genetics. “Producing robust broilers with freedom from leg defects, decreased incidence of tibial dischondroplasia and improved liveability is on top of our breeding for beyond 2025 program,” Dr Jégo revealed. “To breed for robustness, we do trials under sub-optimal conditions to measure how relatives of pedigree chicks are performing under sub-optimal conditions to heavy weights. We then validate the trials in field conditions such as in France, Thailand, China and Bangladesh.” The other goal of Hubbard’s breeding for beyond 2025 program is to produce quality broilers with efficient feed conversion and growth, with higher breast & total meat yields without quality problems such as woody breast and white stripping. Last, but not least, the goal of the program is to produce productive breeders – productive female PS and fertile males.
Trouw Nutrition launches Selko IntelliBond
Trouw Nutrition recently launched the Selko IntelliBond products (copper and zinc minerals) in Bangkok, Thailand. The products are categorised as hydroxy trace minerals that have unique OH groups that are bonded covalently to the metals. These ‘smart bonds’ create minerals that avoid unwanted interactions, which can either oxidise or bind to other ingredients. As a result, hydroxy trace minerals have an optimal efficacy that is on par with the best organic minerals at a price point that is far more cost-effective. Haiko Zuidhoff, General Manager of Trouw Nutrition Asia Pacific, said Nutreco, the parent company of Trouw Nutrition, acquired US-based Micronutrients, the company that produces the products, last year. “IntelliBond products have been the trace minerals of choice in the US. With the extensive network of Trouw Nutrition, we will further promote the products,” he said. Selko IntelliBond copper and zinc minerals are recommended for poultry and swine.
Profitability can be maintained without antimicrobials
Asian pig farmers have been pressed to reduce antimicrobial use, but many still find such a move risky, concerned that doing so will reduce productivity and profitability. However, at the Ceva Swine Innovation Summit Asia 2017 yesterday, Jean Noël Sialelli, Animal Health Manager for the Cooperl group, France’s largest pig producer, noted that reducing antimicrobial use is “not risk taking but is a will of change.” Dr Sialelli shared how Cooperl successfully reduced antibiotic use and still remained profitable. He underscored the role of increasing disease prevention through biosecurity and vaccines, properly identifying risk factors, as well as the use of alternatives like probiotics and antioxidative complex in production.
Hy-Line improves breed with genomics
Hy-Line said it has pioneered development of genomics tools to improve breeding of layers and it established a molecular genetics lab in 1996, said Neil O’Sullivan, Director of Global Product Management. Hy-Line developed a program to test and develop genomic selection in 2008 in a three year experiment with scientists at Iowa State University. The company also implemented genomic selection in commercial breeding program in 2013. “Genomics has had a tremendous impact on what we are doing. Early and efficient implementation of genomics contributes to faster genetic progress,” he said. Meanwhile, Dr O’Sullivan said Hy-Line’s layers has improved egg and body weight profiles, while its hens are healthier, highly efficient and more productive.
Managing unintended consequence of raising chicken without antibiotics
The poultry industry is facing continued pressure from consumers, government, restaurants/retailers not to use antibiotics in its production and over half of broiler chicken companies in the US currently produce some chicken raised without antibiotics, Ashley Peterson, Senior Vice President, Scientific and Regulatory Affairs at the National Chicken Council USA said at Ceva's Innovation Summit 2017. “The demand for chicken raised without antibiotics is growing and it is going to require more conversion from conventional production to antibiotic production,” she said. However, producers will face unintended consequences of raising chicken without antibiotics including welfare, processing and cost. It takes time for the industry to determine best practices around raising birds this way. “Some of the unintended consequence will be minimized over time as we get better at finding alternate solutions,” Dr Peterson said.
CBS iNSPect helps customers visual NSP in their feed
Canadian Bio-Systems Inc (CBS) is known for its Superzyme, the company’s cocktail of enzymes featuring the multi-carbohydrase technology. Rob Patterson, Technical Director, said besides nutrient release there is also a health benefit to the product, which not many people are aware of. “Superzyme releases sugar from the feed, which creates a probiotics effect that promotes the growth of good bacteria and subsequently a healthy gastrointestinal tract,” he said. He was speaking at the enzyme manufacturer’s inaugural Asian Nutrition Summit held in Bangkok. Here the company launched iNSPect, the enzyme manufacturer’s tool to help customers visualise non-starch polysaccharides, or NSP profile in their feeds.
|DBE Gurney’s downstream diversification sees good prospects|
[14 March 2017] Malaysian integrator DBE Gurney Resources Bhd’s diversification downstream with HARUMi, a halal local fried chicken brand, has helped the company get back into the black after reporting losses for 12 years. Last year, the Perak-based company posted USD 56,000 in net profit compared with a USD 2.42 million loss in 2015. This was on the back of a 5.5% drop in revenue to USD 25.39 million. HARUMi offers licensing to young entrepreneurs to sell fried chicken via a variety of point of sales from express outlets to kiosks. “This year we plan to open 10 restaurants in the Klang Valley and 10 restaurants in Perak,” he told Asian Agribiz.
|China Broiler Alliance says better days to continue|
[14 March 2017] Despite a sharp decline in DOC prices recently, China’s white-feather broiler sector is expected to continue a profitable year in 2017, thanks to the limited introduction of grandparent stock and eased impact of the H7N9 outbreaks, said Li Jinghui, President of China Broiler Alliance. “DOC prices have bottomed out, as media and the public now have a better understanding of the H7N9 virus,” Mr Li told Asian Agribiz, adding that broiler integrators, which account for over 60% of the sector, also saw less impact of the price fluctuation. However, the native yellow-feather broiler sector should also move towards centralised slaughtering. “That’s a guideline from the central government, as well as modern consumer demand for hygiene and safety,” he noted.
|High quality feed equals shorter production days for Crysbro|
[14 March 2017] Sri Lanka’s largest and most modern plant to date Fortune Agro Industries (Pvt) Ltd feedmill, a joint venture deal with Bairaha Farms Plc and Crysbro Group, produces feed that is safe from salmonella and bacteria contamination. Mohamed Imtiaz, Chairman, Crysbro, told Asian Agribiz the high quality feed products ensure good consumption. “Most feedmills work on the least cost basis. This could compromise on the quality of the feed for broilers. As integrators, we need good quality feed, so that our birds are productive and healthy,” he said. The shorter production days on the farm has allowed the company to slot in an extra batch of production per year. “Our production days are shorter by five days now,” he said.
|Strategies for better egg production|
[14 March 2017] The important equation of egg production comprises of four factors, which are genetics, veterinary services and biosecurity, nutrition and management, Tin Phung, Technical Services Manager, SE Asia, Hy-Line International said at a seminar in Pattaya in Thailand, preceeding VIV 2017. Hy-Line said it offers the world’s most efficient egg-layer, the W-36 and the world’s most balanced brown egg layer, the Hy-Line Brown. Egg producers also need local veterinarians and local knowledge of disease challenge. “Best vaccination program is a tailored program that balances immunity versus economics,” he said. Meanwhile, producers should use the management guide as a starting point for diet formulation but local nutritionist can maximize economical return by using local raw material. Mr Phung said choosing good genetics needs to be followed up with good brooding management as poor brooding will severely impact livability, uniformity, and production.
|Indonesia to increase fish exports to Saudi Arabia|
[14 March 2017] Indonesia aims to increase its fish exports to Saudi Arabia. Currently, Indonesia is the second largest exporter of canned tuna products to the Middle East country after Thailand. During the visit of King Salman to Indonesia recently, Indonesia’s Ministry of Fisheries & Marine Affairs signed an MoU with the delegation of Saudi Arabia on fish quarantine, food safety and fish product standards. Last year Indonesia’s fish export value to Saudi Arabia reached USD 66.8 million with main commodities including skipjack, tuna and mackerel.
|Bangladesh eyes exports of processed poultry products|
[14 March 2017] Bangladeshi poultry producers are preparing to export chicken-based food products from 2020. “We have immense opportunities to cater for the global halal market,” said Shamsul Arefin Khaled, President of the World’s Poultry Science Association-Bangladesh Branch (WPSA-BB). Quoting him The Daily Star [http://www.thedailystar.net/business/poultry-operators-eye-global-market-1371091] said, nearly USD 3.7 billion has been invested in the poultry industry so far, with an increasing number of poultry giants entering the market to sell processed products locally. “Poultry producers will be able to export products worth USD 4-5 million a year initially. But we must cut our production cost to enter the competitive market and government’s support is needed,” Mr Khaled said. He urged the government to withdraw 5% advance income tax on import of feed raw materials.
|CPF encourages farmers to apply good labour practices |
[13 March 2017] Charoen Pokphand Foods (CPF) is encouraging broiler farmers under the company’s contract farming to comply with good labour practices (GLP). A total of 1296 broiler farms under CPF’s contract farming will receive the GLP certificate from the Department of Labour Protection and Welfare, Labour Ministry on March 15. Parisothat Punnabhum, Senior Executive Vice President of Human Resources at CPF, said the company is keen on strengthening Thailand’s chicken export competitiveness. Since last year, CPF has joined hands with the department to train farmers in GLP. “Good labour practices will upgrade worker’s quality of life in broiler farms in line with human rights requirement. Farmers will learn to improve their employment and workplaces, which will meet with international regulations,” said Mr Parisothat.
|New Hope Liuhe’s sow stock to double in 2017|
[13 March 2017] New Hope Liuhe Co said its sow stock is expected to exceed 100,000 heads by 2017, up from 50,000 heads at the end of last year. Its sales of live pigs is also expected to reach 2.5-3 million heads from 1.2 million in 2016. The top Chinese feedmiller said it will focus on livestock farming at this stage, particularly an expansion of pig operations. “We have almost finished an optimization of our poultry value chain, and now it’s time to step up pig farming,” Vice President Xiang Chuan told investors during a roadshow. According to him, the coastal regions in north China are ideal locations for farming operations, so as to meet the demand of Qianxihe, a Beijing-based pig slaughterhouse acquired by the company in 2007.
|No silver bullet to replace the use of antibiotics on farm|
[13 March 2017] The feed industry in the region is seeing three major trends. Besides the need for safe food and precision nutrition, livestock producers are looking for alternatives to replace antibiotics, said Tan Hai Meng, President, Kemin Industries (Asia) Pte Ltd. “Countries like Vietnam and Indonesia will enforce a ban [of antibiotics] by year end. Livestock producers are naturally concerned about finding alternatives,” he said. Dr Tan told Asian Agribiz there is no silver bullet when it comes to replacing antibiotics. However, there are programs to help producers do away with antibiotics as growth promoters. Kemin’s ABA program, or Antibiotic Alternative program, for instance, is a comprehensive, multi-solutions program that can maintain farm productivity without sacrificing performance of animals.
|Oversupply looms over Vietnam’s pork industry|
[13 March 2017] Vietnam’s pig population increased by 23% in 2016 and total herd population is currently at 31 million, the Department of Animal Production (DAP) said. The agency estimates that this could result in one million tonnes of excess pork supply in 2017. Meanwhile with prices of live pigs still on a downtrend, the DAP is looking to cut sow population and limit feed production. DAP Director Hoang Thanh Van said the agency “will focus on sow herd control and improving quality rather than quantity.”
|Indonesia, Malaysia to plant corn in bordering regions|
[13 March 2017] Indonesia and Malaysia plan to plant corn in bordering regions of the countries in Kalimantan Island. After a bilateral meeting with Dato’ Sri Ahmad Shabery Cheek, Malaysia’s Minister of Agriculture and Agricultural Based Industry, Andi Amran Sulaiman, Indonesia’s Minister of Agriculture said the two ministries agreed to plant corn in a 100,000-ha area in Entikong, Indonesia and a 60,000-ha in Sarawak, Malaysia. “In the middle of this year we will start the project,” he said. According to Dr Sulaiman, Malaysia is ready to buy 3 million tonnes of corn from Indonesia. “We will meet this demand in the next three years,” he said, adding that Malaysia also needs corn seeds.
|CJ Group Chairman’s daughter heads global business|
[13 March 2017] South Korea’s CJ Group conducted its largest personnel reshuffle in recent years, promoting the Chairman’s daughter and her husband as executives in charge of the group’s global business. Lee Kyeong-hoo, 32, was named Deputy President of CJ’s US office in Los Angeles. The eldest child of CJ Chairman Lee Jay-hyun has been working for the group’s global marketing business, along with her husband Jung Jhong-hwan. CJ has been eyeing a list of merger and acquisition opportunities, with an aim to generate USD 86.4 billion in sales by 2020. It also hopes to generate 70% of the sales from overseas markets.
|Insoluble fibre – effect on piglet performance|
[10 March 2017] There is growing evidence to support that including insoluble fibre in the post-weaning diet may improve the composition of gut microflora, increasing gut health and piglet performance. During the 2017 Asian Agribiz Pig Feed Quality Conference (25-26 April, Ho Chi Minh City, Vietnam), Dr Manfred Pietsch, Business Unit Manager Animal Nutrition, JRS will review trials showing the inclusion of insoluble fibre in weaned pig diets increased average daily gain and feed intake in the critical post-weaning period. Visit Pig Feed QC2017 or contact Sutasinee Lake at email@example.com for more information and to register.
|CAB Cakaran eyes at least 20% growth|
[10 March 2017] Malaysian poultry integrator CAB Cakaran Corp Bhd expects to see a further growth of at least 20% in its current year’s revenue after reporting a record high turnover of USD 247 million in the previous year. This follows the rise in its broiler output capacity, which surpassed 6 million birds a month from 5 million in the financial year ended September 30, 2016 (FY16), said Managing Director Christopher Chuah. “The revenue momentum will continue from last year. I think in comparison with FY16, it will easily be another 20% increase,” he told The Edge Financial Daily. CAB’s Q1 results for FY16/17 (October-December 2016) saw a 37.8% growth in revenue to USD 78.56 million. The group achieved a net profit of USD 1.74 million for the quarter.
|Farm hands must understand biosecurity rules |
[10 March 2017] Besides developing rules to promote biosecurity, helping staff understand and implement the rules and regulations is very important, Gurupathy Rajan, who recently joined Big Dutchman as its Support Sales Manager, Asia, said. Speaking at Alltech and Big Dutchman’s joint seminar recently, he shared a case study from avian influenza-prone Bangladesh where he was stationed for nine years. “The rules and regulations must also be analysed and updated regularly,” he said adding that there are no standard rules as they differ from farm to farm. He outlined an exhaustive list of control points used on the farm in Bangladesh. The farm made a massive turnaround and is today one of the largest layer farms in Bangladesh.
|KPC to breed native chicken, duck in East Kalimantan|
[10 March 2017] Indonesia’s coal producer Kaltim Prima Coal (KPC) will channel its CSR fund into native chicken and duck farming in East Kalimantan. It recently signed a partnership agreement with the Indonesian Local Poultry Farmers Association (Himpuli) for the project. Two Himpuli members namely PT Sumber Unggas Indonesia and PT Putra Perkasa Genetika will supply native Sentul chicken and duck, respectively, for breeding. Wawan Setiawan, KPC GM said for native chicken breeding, the company will raise 1000 birds for the initial stage. Commercial native DOC from this will be distributed to 20 farmer groups fostered by KPC.
Special report by ARIEF FACHRUDIN
Positive outlook for Indonesian aquaculture sector in 2017
[10 March 2017]
Indonesia produced 16.67 million tonnes of fish last year. Of the figure, 65% was from marine culture including seaweed, 19% from fresh water culture and 16% from brackish water culture. According to Sarifin, Director of Fish Feed & Health, the Ministry of Fisheries & Marine Affairs (MFMA) will continue to increase fish production this year by revitalising idle shrimp ponds and floating nets, setting up three units of off-shore floating nets, setting up two aqua feed plants, and giving fish fries & feed packages to farmer groups. However, Mr Sarifin said on quality the ministry will socialise its new standard called IndoGAP which is aimed to level up food safety and traceability of Indonesia’s fish products. “This standardisation is important to compete in the global market,” he added.
Lack of cold storage capacity
Indonesia’s fish processing industry still lacks cold storage capacity, according to the MFMA. Currently the industry needs around 1.7 million tonnes of cold storage capacity, while the existing capacity is only 200,000 tonnes. “The gap is too high and the existing capacity is still concentrated in the western region, mainly in Java,” said Anang Nugroho, Director of Investment & Business of the ministry. To address this problem, he said the ministry will continue to set up cold storage facilities in different regions. Last year, the ministry set up 17 single cold storage facilities and 16 integrated cold storage facilities. “This year we will set up 10 500-tonne cold storage facilities which will be concentrated in the eastern region,” said Mr Nugroho.
West Java, Banten to produce 36kt of shrimp
Of the total (vannamei) shrimp production from members of Indonesia’s Shrimp Club (SCI) of 265,000 tonnes, West Java & Banten recorded a production of 24,000 tonnes last year. Joko Sasongko, SCI Chairman for West Java & Banten region said its members will extend their ponds in total by 200ha this year. “With this extension, we expect production from the region to increase to 36,000 tonnes,” said Mr Sasongko, adding that shrimp farmers in the region will adopt a supra-intensive farming system. Mr Sasongko believes that diseases like white faeces disease, white spot syndrome and infectious mionecrosis virus will still be one of the main challenges for this year.
Boosting investment in processing, export
Indonesia’s aquaculture & fisheries industry is predicted to continue to grow this year, in line with the growing population, according to Rokhmin Dahuri, Chairman of the Indonesian Aquaculture Society. “The industry has the potential to produce more than 60 million tonnes of fish [including seaweed] … the largest in the world,” said Prof Dahuri. “What we need to do this year and in the coming years is boost investment in the processing and export sector. Regulations from the government should also support this.”
Aqua feed consumption will continue to grow
Indonesia’s aqua feed consumption reached 1,678,238 tonnes last year. Of this, 1,317,422 tonnes was fish feed and 360,816 tonnes was shrimp feed. Harris Muhtadi, Aqua Feed Division Chairman of the Indonesian Feed Millers Association (GPMT) said fish feed consumption this year is estimated to grow at 10-12% where feeds for tilapia, catfish, milkfish and carp will be the main contributors. Meanwhile on shrimp feed consumption, GPMT estimated the growth will be only around 5-8% this year due to concerns on diseases and counter-productive regulations.
Processors need more raw materials
Budhi Wibowo, Chairman of the Indonesian Fish Products Processing & Marketing Association (AP5I) revealed that the current capacity utility of fish processing units in Indonesia is only 53%. “This means that we need more raw materials to increase our production capacity,” he said. Currently the government focuses on capture fishery, but Mr Wibowo hopes the government is serious about developing the aquaculture farming industry, especially shrimp, tilapia and catfish farming. “Indonesia has the potential to boost its aquaculture production. We, AP5I, are ready to process the fish then export it to traditional and new markets,” he said.
|Malaysia reports first H5N1 outbreak in 10 years|
[09 March 2017] Malaysia reported its first highly pathogenic H5N1 avian influenza outbreak since 2007 yesterday, adding to a long list of countries reporting outbreaks from various subtypes over the past few months. The virus struck backyard chickens in Kelantan state, located in the northeastern part of Malaysia's peninsular region, according to a report from the country's agriculture ministry to the World Organization for Animal Health (OIE). The outbreak began on Feb 28, killing 15 of 26 village chickens. The remaining birds were culled to control the spread of the virus. Officials also curbed poultry movements and ordered other steps, such as screening and stepped-up surveillance.
|Thoresen Thai Agencies acquires Pizza Hut Thailand|
[09 March 2017] PH Capital, a subsidiary of Thailand’s Thoresen Thai Agencies (TTA), has signed a purchase agreement to acquire the Pizza Hut business in Thailand, from Yum Restaurants International (Thailand) without disclosing the deal value. PH Capital is a joint venture between TTA and PM Capital, a company owned by TTA director Ausana Mahagitsiri, who has extensive experience in the management of global food and beverage brands. While TTA holds a 70% stake in PH Capital, PM Capital holds another 30% stake. Subsequent to the completion of the acquisition, PH Capital said it will tentatively commence the operation of Pizza Hut restaurants in Thailand at the end of the second quarter of this year. Meanwhile, Yum Restaurants International (Thailand) said in early February that it is seeking to sell its last 244 KFC outlets in Thailand as it will shift to a franchise-only business model.
|Indonesia to investigate beef importers on tax avoidance|
[09 March 2017] Indonesia has launched a comprehensive investigation into tax avoidance by beef importers. A deal signed recently by Sri Mulyani Indrawati, Finance Minister and Syarkawi Rauf, Chairman of the Business Competition Supervisory Commission (KPPU) will enable directorate generals under the ministry to work together with the KPPU on joint investigations and the exchange of data. “Frozen beef importers who enjoyed threefold or tenfold increases in imports didn’t file their annual tax forms. We will also look into the value-added taxes they paid,” Mrs Indrawati said, adding that the Trade Ministry would revoke their licenses if the importers are proven guilty. Last year KPPU found 32 feedlotters and 12 poultry companies guilty of cartel practices. The guilty parties were fined USD 8.68 million and USD 8.9 million, respectively. However, Mrs Indrawati said the fines are too small compared to the profits, The Jakarta Post reported.
|Asian countries suspend poultry imports from the US|
[09 March 2017] Follow-up testing at the US Department of Agriculture's (USDA's) National Veterinary Services Laboratories on the highly pathogenic H7 virus implicated in an outbreak at a Tennessee poultry farm indicates that the strain is H7N9 but is different from the H7N9 fuelling outbreaks in China. The last H7 outbreak involving US poultry struck Indiana poultry farms in 2016. Meanwhile, Singapore, South Korea and Taiwan have suspended imports of live poultry from Tennessee, US. The ban excludes processed poultry products, such as pasteurised eggs and canned chicken products, which have been heat-treated to eliminate the virus.
|Ise Foods interested to invest in India|
[09 March 2017] India’s Minister for Food Processing, Harsimrat Kaur Badal has met executives of top Japanese food processing, manufacturing and retailing companies such as Kagome, Marubeni Corp, Mayekawa Manufacturing, Ise Foods and Isetan Mitsukoshi to attract foreign investment and collaboration in India. “Japanese companies are not looking at India as just a large market but also as a manufacturing hub. I am sure we will take food diplomacy to another level,” she said, reported The Economic Times. She revealed that one of the biggest egg manufacturers of Japan, Ise Foods, is interested in setting up operations in India as the country is the third-largest producer of eggs in the world.
|Canada extends food safety aid to Vietnam|
[09 March 2017] The Canadian government is set to grant USD 11.2 million in aid to Vietnam's ‘Safe food for growth' program, a continuation of the ‘Food and Agriculture Products Quality Development and Control Project’. The aim of the program is to improve the quality, safety and market accessibility of several Vietnamese products, including pork and poultry, through the upgrade of production and processing systems. At the meeting where the aid was announced, Vietnam's Minister Agriculture and Rural Development Nguyen Xuân Cuong said “Vietnam is interested in high quality pig genetics,” and that “Canada's lobster can be studied and raised in Vietnam” for both the domestic and export markets.
|Indonesia’s Ministry of Ag integrates plantation of oil palm and corn|
[09 March 2017] To increase local corn production in Indonesia, the Ministry of Agriculture has launched the integrated plantation program of corn with oil palm on 1 million ha of existing oil palm plantation owned by state owned company PT Perkebunan Nusantara (PTPN). “If this program is successful, we can harvest 5 million tonnes of corn. So, there will be no corn imports for feed this year,” said Andi Amran Sulaiman, Agriculture Minister. The ministry has cooperated with PTPN II in North Sumatera for the program. Recently the ministry partnered with PTPN V in Riau. “We have prepared 200ha of land for the integration. In May, we will add 500ha,” said Berlino Mahendra Santosa, President Director of PTPN V.
|Designing effective farm trials|
[08 March 2017] As Manager Research & Innovation, for Rivalea, Australia’s largest vertically integrated piggery (45,000 sows), David Henman has extensive, hands-on experience, conducting over 50 trials annually. During the 2017 Asian Agribiz Pig Feed Quality Conference (25-26 April, Ho Chi Minh City, Vietnam) he will discuss how to effectively design, manage and evaluate farm trials. This will include practical considerations such as how many pigs/pen are needed to get a statistically significant result and how to minimise variation. Visit Pig Feed QC2017 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Competition in sourcing local corn in Indonesia|
[08 March 2017] The decision by Indonesia’s Ministry of Agriculture to limit corn imports this year has put layer farmers in the country in a difficult situation. The price of corn has jumped to USD 0.30 per kg, with some regions charging USD 0.52 due to an inefficient supply chain. This has raised egg production cost by 50% on average. On the other hand, the price of eggs is only around USD 1.03-1.12 per kg. According to Desianto Budi Utomo, Chairman of the Indonesian Feed Millers Association (GPMT), it is estimated that in the first half of this year local corn production will be able to meet demand from the feed industry. However, “because the government has stopped imports, there is a competition between feed millers and layer farmers in sourcing local corn. The farmers can’t compete as they have limitations with capital and post-harvest facilities,” Dr Utomo explained.
|Crysbro to reach growth targets with new feedmill|
[08 March 2017] Sri Lanka’s USD 10.8 million Fortune Agro Industries (Pvt) Ltd feedmill, a joint venture by Bairaha Farms Plc and Crysbro Group, will make it possible for the latter to reach its 20% target growth for broilers. At full capacity the feedmill can produce above 240,000 tonnes of feed. Mohamed Imtiaz, Chairman, Crysbro, told Asian Agribiz the company holds 65% of the market share of parent stock in the country. It has roughly 29,000 grandparent stock which produces 800,000 parent stock for broilers per year. These in turn produce 8 million DOC per month. “This year we are building more houses to accommodate our broilers, our contract farmers are also increasing. So we are definitely growing,” he said.
|China’s 2016 broiler GP imports at 0.65 million sets|
[08 March 2017] China introduced about 0.65 million sets of grandparent stock of white-feather broilers last year, down from 0.72 million sets in 2015 and 1.18 million sets in 2014, according to the China Animal Agriculture Association. However, the country’s stock of laying GPs has returned to a ‘balanced’ level of 0.8 million sets and will create a ‘sufficient’ supply of day-old chicks in the first half of 2017, said the CAAA. “This will be good for broiler processors, but the farming segment will be challenged again,” it noted, adding that the new wave of H7N9 bird flu is another threat to the sector. China has been limiting broiler GP imports to reduce overcapacity, and this led to a bottom-out in 2016 from a four-year downturn previously.
|Alltech ready to meet demands of Asian producers for alternatives|
[08 March 2017] As producers around the world look for natural solutions, Alltech finds itself ahead of the curve. “Disease challenges are increasing in Asia but producers are moving away from antibiotics and looking for alternatives,” Steven A Elliott, Global Director, Mineral Management Division, Alltech, told Asian Agribiz. He was a presenter at an Alltech, Big Dutchman joint seminar, which visited four cities in the region last month. “Asia finds that it must change the way it produces food, and this fits well with our natural approach.” Alltech continues to create solution packages, which include a range of feed additives. It is also committed to developing targeted nutritional technologies through nutrigenomics, which the company invested in 10 years ago, he said.
|South Korea to extend subsidy on some egg imports |
[08 March 2017] South Korea is extending subsidies up to half the cost of importing eggs by sea until end April, as it grapples with low supplies in the wake of its worst-ever bird flu outbreak, said a Reuters article. The country has culled over 33 million birds since last November, decimating domestic supply of eggs and pushing prices up. Its Agriculture Ministry originally planned to cover half the air and sea-borne shipment costs for imported eggs until end February but said recently that it would extend that until end April for cargos sent by sea, although not for eggs transported by air. Since January, South Korea has imported nearly 805 tonnes of fresh eggs and almost 837 tonnes of egg products.
|CPF restructures its business to agro-industrial and food units|
[07 March 2017] Charoen Pokphand Foods (CPF) said its board has decided to restructure the company’s business to two major lines, agro-industrial and food business. Sooksant Jiamjaiswanglerk has been appointed as Co-President and CEO, overseeing the agro-industrial business, while Sukhawat Dansermsuk has been appointed as Co-President and CEO, overseeing the food business. The company expects its sales revenue to increase 10% in 2017, backed mainly by its overseas operations, Adirek Sripratak, Chairman of the executive committee at CPF said. CPF reported a net profit of USD 421.74 million in 2016, up 33% from 2015, thanks largely to better results from its livestock business in Thailand and gradual recovery of the local shrimp business from early mortality syndrome. CPF’s sales revenue increased 10% year-on-year to USD 13.32 billion in 2016.
|RNI to develop integrated broiler business|
[07 March 2017] As a result of the broiler cartel case in Indonesia, the country’s Business Competition Watchdog Commission (KPPU) asked state-owned companies to venture into the broiler industry. Besides PT Berdikari, recently another state-owned company PT Rajawali Nusantara Indonesia (RNI) which is involved in the sugar, palm oil and tea business has said that it will develop an integrated broiler business in the country. B Didik Prasetyo, RNI President Director said it will set up broiler breeding farms, commercial broiler farms, a feedmill and a broiler processing plant. “For cold storage, marketing and distribution, we will leverage the network of our subsidiary PT Rajawali Nusindo,” he said. Mr Prasetyo also mentioned that PT PG Rajawali II, its subsidiary, has idle land of around 24ha in Cirebon, West Java which is suitable to develop the integrated broiler business.
|Wens 2016 net profit up 90% on booming pig operations|
[07 March 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said its unaudited net profit rose 90% to USD 1.7 billion in 2016. Operating revenue was up 23% at USD 8.6 billion. The company attributed the growth to its pig farming operations which saw a 12% rise in the production of finishers, with average selling price also up 20% from a year earlier. In addition, “the feed costs were lower due to cheaper raw materials and technology improvements,” it said. Wens, which has also ventured into poultry, dairy, veterinary medicine and farming machinery businesses, is scheduled to release its audited 2016 annual report on April 7.
|Canadian beef exporters eye Vietnam market|
[07 March 2017] Canadian beef exporters are looking for a bigger share of the market in Vietnam. Last year the country exported more than USD 2 billion worth of beef to Vietnam. “Asia is one of our priority markets, with Vietnam ranked as a high potential market,” Canada’s Minister of Agriculture and Agri-Food Lawrence MacAulay told guests at an event in Hanoi, Vietnam recently, to introduce his country’s beef products. Vietnam News said the country's imports of Canadian beef last year reached about 320 tonnes, much higher than the estimated 20 tonnes of two or three years ago. Canada Beef and businesses will work with the food services segment and retailers in Vietnam to promote products, as well as study customer tastes, he said.
Regional AI update
Industry needs to modernise says Rabobank
[07 March 2017]
While avian influenza has been spreading across Europe and Africa, Asia too is seeing its fair share of outbreaks this year. The World Health Organisation revealed that China detected an evolution in the virus last month, which requires close monitoring. It’s yet another wake-up call, says RaboResearch, for the industry to modernise.
AI brings dramatic change in Chinese markets
China’s avian influenza (AI) situation has significant implications, both in China and globally, according to RaboResearch’s Global Poultry Quarterly for Q1 2017. It has dramatically changed Chinese market conditions, as prices have fallen sharply, to historic lows. Consumers have moved away from wet markets, which usually sell over half of all poultry. “This will indirectly reduce the appetite for poultry imports in the coming months and affect global markets for wings, feet, and legs—especially Brazil, which is a major exporter to China,” said RaboResearch Senior Animal Protein Analyst Nan-Dirk Mulder. “Markets, including China, will gradually recover after the Northern Hemisphere winter season, when avian influenza pressure will likely be reduced.”
China shuts down live poultry markets
[07 March 2017] China’s Prime Minister urged local authorities to shut down live poultry markets in places affected by the H7N9 bird flu virus, which killed 79 people in January. China’s Cabinet said it would also increase monitoring of bird flu and the transportation of live poultry. So far the variant strain has only been detected in Guangdong province, but given the wide circulation of livestock and poultry in the country, it would be difficult to prevent its spread to other areas. Until now, the H7N9 virus has shown little or no clinical symptoms in birds, despite being highly pathogenic when it infects human.
Another wake-up call for the industry
While the outlook for the global poultry industry in 2017 has been shaken up by a sharp increase in the number of human avian influenza (AI) cases in China, markets with a domestic focus are still performing well, including some markets with AI outbreaks, such as India, Russia, the EU and Ukraine. “Supply tends to be tight, and many markets are benefiting from lower feed costs,” said Mr Mulder, adding that the new global avian influenza crisis provides another wake-up call. “It will force the industry and governments to further modernise business models, as the virus will remain endemic in wild bird populations. Optimal biosecurity, modern value chain and distribution models, and regionalisation will be key themes.”
China reports more severe form of bird flu
China has detected an evolution in the H7N9 avian flu virus that is capable of causing severe disease in poultry and requires close monitoring, the World Health Organization (WHO) said. Samples of the virus taken from two infected humans were injected into birds in a laboratory and became 'highly pathogenic' for poultry, it said. But that designation applies only to birds, not humans, WHO spokesman Christian Lindmeier said, and there is 'no evidence that the changes in the virus affect the virus’ ability to spread between humans”. A total of 304 new laboratory-confirmed human infections were reported in mainland China between January 19 and February 14, along with 36 deaths, the WHO said.
In other markets in Asia, Taiwan reported its first H5N6 outbreak early February, while officials in Japan culled close to 70,000 chickens in the Saga prefecture town of Kohoku. Saga prefecture is in the country's southwest. Japan reported recent H5N6 outbreaks in five other prefectures. Vietnam’s Ministry of Health warned of the possible intrusion of avian influenza A (H7N9) into Vietnam as the virus is raging in neighbouring China and Cambodia. In Korea, some 33 million birds have been culled since last November, as the country faces what it terms as its worst outbreak. Globally, more than 1000 outbreaks among poultry have been reported to the WHO.
|Vietnam's Austfeed changes name to Mavin Austfeed Corporation|
[06 March 2017] Northern Vietnam-based feed producer Austfeed recently changed its name to Mavin Austfeed Corporation. The change took effect on January 1. “Previously our Mavin brand was reserved for our meat processing division while Austfeed was for our feedmills division. The board wanted to consolidate our brand and we choose Mavin as our master brand for the group,” CEO Dao Manh Luong told Asian Agribiz. Mr Luong explained that the feed business is now known as Mavin Austfeed while the farming and food processing arms are known as Mavin Livestock and Mavin Foods respectively. Founded in 2004, the company has today grown to become a farm-to-table integrator of both swine and poultry.
|Thai meat processor wants diarrhoea drug removed |
[06 March 2017] PS Food Product, one of Thailand’s largest pork processor, has requested its suppliers of live pigs to stop treating the animals with clolistin, an antibiotic widely used to treat diarrhoea. In a statement submitted to the suppliers, it said its customers and authorities are concerned with colistin use. “To prevent any setback from colistin, we demand our suppliers to remove it from pig diets at all stages. Once removed, please do inform us officially and state which drug is being used to replace it,” it said. PS Food Product runs an abattoir with a 2500 pigs/day capacity in Samut Prakarn province, about 50km south of Bangkok. It supplies fresh and processed pork to major retailers across Thailand.
|RNF appoints CGF to supply chicken products to McDonald’s outlets in Indonesia|
[06 March 2017] Rekso Nasional Food (RNF), the license holder of McDonald’s in Indonesia has appointed Cahaya Gunung Foods (CGF), the jv company of Cargill and Japfa’s So Good Food, as its processed chicken products supplier. CGF will supply products like McNuggets, McChicken and McSpicy to all McDonald’s outlets across the country. Sutji Lantyka, Communication Director of RNF said Cargill’s global reputation is the reason why the company appointed CGF. Meanwhile, Derek Schoonbaert, CGF Managing Director said that he is happy with the partnership with RNF and promised that CGF will supply good quality, safe and nutritious processed chicken products to all McDonald’s Indonesia’s outlets. CGF was founded in September last year with a production base in Boyolali, Central Java.
|Human AI cases in China shake up global poultry markets|
[06 March 2017] The outlook for the global poultry industry in 2017 has been shaken up by a sharp increase in the number of human avian influenza (AI) cases in China, according to Rabobank’s research report. It has dramatically changed Chinese market conditions, especially at wet markets, as prices have fallen sharply to historic lows. “The global impact of AI on trade is significant, with ongoing restrictions on trade from Europe and also from the US,” said RaboResearch Senior Animal Protein Analyst Nan-Dirk Mulder. The recent Chinese human AI cases will indirectly reduce the appetite for poultry imports in the coming months and this will affect global markets for wings, feet, and legs, especially Brazil, which is a major exporter to China. Markets, including China, will gradually recover after the Northern Hemisphere winter season, when AI pressure will likely be reduced, Mr Mulder added.
|Malaysian integrator CCK's Q4 earnings gains 19%|
[06 March 2017] Malaysian poultry integrator CCK Consolidated Holdings Bhd's earnings for the Q4 2016 gained 19% year-on-year to USD 1.13 million despite registering lower revenue. Its Q416 revenue decreased by 2.8% y-o-y to USD 27.99 million. The company said its retail segment recorded an increase in revenue of 13.7%. Its prawn segment has shown an improvement in performance with exports to Australia, Japan and China. Meanwhile on its investment in Gold Coin Sarawak Sdn Bhd, the group hopes to maximise the advantages of having a fully integrated poultry chain and expects performance in the coming financial year to be better than that of last year’s.
|Indonesia to push for more processed seafood exports|
[06 March 2017] Indonesia’s Ministry of Fisheries & Marine Affairs is now reviewing a policy to oblige seafood exporters in the country to only export processed and/or further processed products. This will only be charged on some types of fish namely tuna, skipjack, milkfish and blue swimmer crab. Commenting on this, Saut Marbun, Corporate Secretary of Indonesia’s Dharma Samudera Fishing Industries said the company will support the policy as it will positively impact the national seafood processing industry. He also said that the government’s ban on transhipment and its fight against illegal fishing are also good policies – both policies make sure that local seafood processors will have enough supply of fish for their processing plants.
|Managing low protein diets|
[03 March 2017] The benefits of low protein diets and how to formulate low protein diets will be discussed at the 2017 Asian Agribiz Pig Feed Quality Conference (25-26 April, Ho Chi Minh City, Vietnam). Low protein diets, balanced for all essential amino acids, without excesses, avoid the fermentation of undigested protein in the large intestine which acts as a substrate for the growth of bacteria. This can result in improved feed efficiency and profitability. Low protein diets are particularly important where in-feed antibiotics are being removed or replaced. Furthermore, low crude protein diets may enhance carcass quality characteristics, such as increased loin and ham intramuscular fat, and decreased back fat thickness. Low protein diets can also reduce nitrogen excretion, reducing environmental pollution. Visit Pig Feed QC2017 or contact Sutasinee Lake at email@example.com for more information and to register.
|Dua Putra expands utility of its seafood processing capacity|
[03 March 2017] In line with its target to explore the EU market, Indonesia’s leading seafood producer and exporter Dua Putra Utama Makmur will expand the use of its processing capacity by 70% this year. “Last year only 30% was utilised. This year we target to produce around 45-50 tonnes of seafood products per day,” Heri Akhyar, Corporate Secretary. Dua Putra has two processing plants, located in Juwana and Pati. Last year it expanded its cold storage capacity to 21,000 tonnes. Mr Akhyar revealed that this year it plans to add a new cold storage facility in North Maluku of eastern Indonesia and launch three new products. Last year it launched five new products namely shrimp tempura, breaded shrimp, cooked shrimp, processed squid and fish fillets. With all the plans in the pipeline, Dua Putra is optimistic of a 50% increase in its total income this year.
|Fujian Sunner eyes 15 more food plants in 10 years|
[03 March 2017] Fujian Sunner Group, the largest white chicken integrator in China, said it targets to build 15 new food plants over the next 10 years, pushing its annual sales of cooked products to about USD 1.5 billion. “Our goal is to become a ‘bellwether’ in China’s food industry,” Spokesman Chen Zhihong told Asian Agribiz. Sunner is building a sixth food plant that is to be launched in mid-2017, adding to its existing and combined cooked capacity of 150,000 tonnes. In 2016, the company’s cooked product sales rose 25.7% to USD 245 million, including USD 44 million from its exports to Japan.
|Thaifoods Group expects 15% revenue growth in 2017|
[03 March 2017] Thailand’s Thaifoods Group (TFG) said it aims to increase its revenue by at least 15% this year, supported by higher chicken, pigs and feed output and lower raw material prices, said Chirdsak Kukiattinun, Chief Operations Officer of TFG. TFG will also set up its new subsidiary, Thai Silver Foods Co, which will engage in sales of chicken products. TFG will hold a 70% stake in Thai Silver Foods, which has a registered capital of USD 286,840. Meanwhile, it aims to sell 73,000 live pigs a month in 2017, up 15% from last year, he said. The company is building new pig slaughterhouses in Khon Kaen and Chonburi province and the new facilities will expand TFG’s sales of fresh pork to modern trade and its partners. In other developments, TFG will expand its feed production capacity by 30% to 130,000 tonnes a month. Around 90% of TFG’s feed production including chicken and pig feeds is used internally.
|CP Indonesia sets up broiler closed house for Diponegoro University|
[03 March 2017] Charoen Pokphand (CP) Indonesia, through its subsidiary Cemerlang Unggas Lestari, has set up a modern broiler closed house with a capacity of 11,000 birds for the University of Diponegoro in Central Java. The closed house, which cost around USD 67,500, is for research & learning for students of animal science, said Desianto Budi Utomo, Vice President of Government and Academic Liaison of CP Indonesia. Dr Utomo also revealed that the company is currently socialising its broiler house renovation program for the Central Java and Yogyakarta region. This program of helping small & medium broiler farmers increase their production efficiency and economies of scale, has been done in West Java and East Java.
|Australian Big River Pork expansion to benefit Asia|
[03 March 2017] Australia producer Big River Pork is set to undergo a major expansion that will see it emerge as “the second or third biggest facility of its kind in Australia”, reported Pork Network. The company announced a USD 10.76 million expansion, which will see its plant at Murray Bridge increase the number of pigs it processes from 11,000 to 16,000 per week. Some 700 and 900 carcasses are airfreighted to Singapore weekly, with a small amount of pork products to other Pacific Rim countries including China. Chairman Geoff Hampel said the expansion increases efficiency, allowing South Australian pork to be priced more competitively. He said pork from Australia was of high quality and had a clean and green reputation.
|Lay Hong's Q3 earnings more than double|
[02 March 2017] Malaysian poultry integrator Lay Hong Bhd saw higher revenue from its livestock farming segment lifting its Q3 2017 net profit by 107.7% to USD 1.94 million from USD 935,000 the year before, reported The Edge Financial Daily. Revenue for the quarter increased 5.1% to USD 38.69 million from USD 36.82 million with the integrated livestock farming segment contributing 31.51 million, up 7.2% from 29.40 million previously. The higher revenue was due to a higher quantity of eggs and higher volume of further processed products sold in the quarter, the group said. On outlook, Lay Hong said the entry of NH Foods Ltd has marked a 'major step forward' for the company’s chicken products manufacturing business via new product development and market penetration.
|GFPT's net profit surges 37%|
[02 March 2017] Thailand’s GFPT has reported a net profit of USD 47.16 million in 2016, up 37.56% from 2015, backed by higher sales revenue, lower sales costs and higher profits from its associated companies (McKey and GFN). GFPT’s revenue increased 1.38% year-on-year to USD 478.82 million in 2016 due to higher revenue from its chicken processing segment. The company’s total export of chicken products was 28,300 tonnes, up 28% from 2015, supported mainly by an increase in export volume of both frozen and cooked chicken products to Malaysia and Japan. Meanwhile, revenue from its feed segment dropped 12.33% year-on-year to USD 112.1 million, hurt by intense competition in animal and aquatic feed in Thailand. GFPT has set its annual investment budget at USD 23-28.7 million for upstream expansion of chicken farms.
|Vietnam deals with pig farming surplus, low prices|
[02 March 2017] Vietnam’ Agriculture and Rural Development Minister Nguyen Xuan Cuong has called for a nationwide reduction in the number of pigs and feedmills after rapid growth in the last few years, said a Vietnam News report. Cheap live weight prices and relatively high prices of feed have caused pig farmers to suffer losses worth USD 43 per pig, local media reported. The country has over 29 million pigs, including 4.2 million sows. In 2016, pig farms increased production by 23% compared with 2015. Total capacity of feedmills across the country reached over 31 million tonnes per year, about 6 million tonnes higher than that the country planned to have by 2020. Last year, Vietnam’s feed production was 23.5 million tonnes.
New regulation for Indonesia’s broiler industry
[02 March 2017]
Indonesia has responded to the alleged broiler cartel case and problems related to supply and demand of DOC and live birds by releasing a new regulation. Many stakeholders hope the new regulation will be implemented well and firmly.
Implementation has started
Indonesia’s Ministry of Agriculture has started implementing its new regulation on broiler supply, distribution and monitoring in the country, which was released last December. Fadjar Sumping Tjatur Rasa, representing the Directorate General of Livestock & Animal Health, said the ministry has informed industry players of the regulation and has introduced a technical guide to calculate broiler demand, has calculated GP import figure for this year, and has made an intention agreement with industry players that produce 300,000 broilers per week or more to set up chicken processing plants. “Currently we are pushing breeding companies to certify the quality of their DOC to accredited certification agencies. We are also still validating the figure of existing GP and PS in the country,” Dr Rasa revealed.
Higher import figures of broiler, layer GP in 2017
Based on the Ministry of Agriculture's data, the broiler GP imports last year was 569,668 birds. Meanwhile, local production of broiler GP by an integrated player was 122,240 birds. For layer, the country last year imported 30,646 layer GP. According to Dr Rasa, following discussions with the team of analysts & experts, the country this year will import 650,000 broiler GP and 38,500 layer GP – higher than the previous year. With the imports, the country will have the potential to produce around 3.4 billion commercial broiler DOC and around 210 million commercial layer DOC. In the poultry breeding sector, there are 14 broiler GP breeders, five layer GP breeders and 64 broiler & layer PS breeders. Their breeding farms are in 300 locations in the country.
Online platform for DOC production estimation
On GP import estimation, Achmad Dawami, Chairman of the Indonesian Poultry Slaughterhouses Association (Arphuin) hopes the Ministry of Agriculture can create an online platform which will feature an estimation of PS and FS DOC production on a weekly or monthly basis. “This platform will be essential for players in the industry to calculate and tweak their strategies,” he said.
Market balancing and local market improvement
According to Jafi Alzagladi, Assistant Deputy for Livestock & Fisheries at the Ministry of Coordinating Economic, if the Ministry of Agriculture successfully implements the new broiler regulation, the supply and distribution of commercial broiler DOC and live birds will be under control. “Inflation will also be in control. In addition, independent farmers will get quality DOC and face ‘healthier’ competition,” he said. “What we need to do next is market balancing. We should explore potential foreign markets for our chicken meat and chicken products. Currently we are able to export to Timor Leste and Japan.” Meanwhile, in the local market, Mr Alzagladi said the distribution chain of chicken should be re-arranged, and supply & demand must be calculated based on accurate data. He also said that the Ministry of Coordinating Economic plans to list chicken meat and eggs as staple food commodities so there will be reference prices for the two commodities.
Berdikari pushed to venture into broiler breeding
Following the broiler cartel case, Indonesia’s Business Competition Watchdog Commission (KPPU) has given several recommendations to the Ministry of Agriculture. Syarkawi Rauf, KPPU Chairman said it pushed PT Berdikari, a state-owned company, to venture into broiler breeding. “They will partner with independent farmers, and provide quality DOC,” he said. Mr Rauf also asked the government to review the existing contract farming systems between integrators and its contract farmers. “The system should be fair,” he said.
Options for independent farmers
Mr Alzagladi agreed with Mr Rauf’s idea on the review of the contract farming systems. He said in the long run, independent farmers must partner with big players amid global competition. “Want it or not, they have to partner with the integrators because they have challenges in finance, technology, innovation and efficiency,” he said. Another option, he added, independent farmers can work together, set up a cooperative or corporation and then together invest in breeding, feed milling and chicken processing.
|Reducing the use of in-feed antibiotics|
[01 March 2017] Consumers, food chains and retailers, and regulators are concerned about antibiotic resistance and are increasing pressure to reduce the use of in-feed antibiotic growth promotants (AGPs). The 2017 Asian Agribiz Pig Feed Quality Conference (25-26 April, Ho Chi Minh City, Vietnam) will feature six presentations by leading experts that consider combinations of practical strategies relevant to Asian conditions to successfully remove or reduce the amount of AGPs. The session will feature a keynote presentation ‘Replacement of AGPs: discussion of alternative ingredients, usage, mechanism of action, and potential for synergies’ by Dr Charles Starkey, Assistant Professor, Auburn University, USA. Visit Pig Feed QC2017 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Thailand’s pork exports expected to increase in 2017|
[01 March 2017] Thai pork exports are projected to increase this year thanks to low pork prices in the country, Boonpeng Santiwattanatam, President of Swine Producers and Processors for Exporting Association told Asian Agribiz. “When domestic pork prices stay low, pork producers will step up exports,” he said. Pork prices have been on a downward trajectory in Thailand due partly to oversupply. Meanwhile, Japan, Hong Kong and Singapore are the three main markets for Thai pork exports. “While our pork exports to Hong Kong will remain stable this year, we see growth potential in Singapore,” he said. However, Singapore has strict regulations on pork imports and only one or two Thai companies have been allowed to export cooked and fresh pork to the island republic. In Japan, the association aims for 10% annual sales growth for cooked pork but pork exports dropped around 10% in the past month due partly to Japan’s slow economy, he said.
|Dua Putra eyes EU seafood market|
[01 March 2017] Indonesia’s leading seafood producer and exporter Dua Putra Utama Makmur expects its exports to contribute 65% to its total income this year. Last year, its exports contributed 35%. Heri Akhyar, Corporate Secretary said it will explore markets in the European Union (EU). “Now we are still undertaking due diligence to get the license to export to the EU. We are optimistic that in the first half of this year we will start exporting squid and shrimp products to the EU,” he said. Dua Putra has been exporting its seafood products, mainly seawater fish, baby octopus and squid, to the US, India, Bahrain, China, Japan, Malaysia, Thailand, Vietnam and Singapore.
|CJ Vina breaks ground for 6th plant in VN |
[01 March 2017] CJ Vina Agri continues to strengthen its presence in Vietnam with the start of construction of its sixth feedmill in the central province of Binh Dinh. The USD 30 million investment spreads over 4.1ha of land and will have a capacity to mill 324,000 tonnes of grain, with a technologically advanced production line from Europe. The plant will also feature a tight quality management control system complying with international standards. It is expected to start operations by end of the year. According to Kim Sun Kang, General Director, CJ Vina Agri Ltd, the plant will bring the company closer to its target of producing 1.2 million tonnes of feed by end 2017,” said Mr Kim.
|Kerchin achieves e-commerce sales of USD 29 million in 2016|
[01 March 2017] Chinese beef producer Kerchin Cattle Industry Co said its e-commerce sales stood at USD 29 million last year, or about 10% of its total revenue. Despite booming online sales, General Manager Wang Zhengtao said he is worried about the high costs. “The cold logistics cost for a pack of chilled beef is normally around USD 4.4, which sometimes exceeds the price of the product itself,” noted Mr Wang. “We will seek continuous improvement of the business model,” he added. Kerchin has been an e-commerce leader in the category of fresh products, offering chilled and cooked beef on Tmall, JD.com and Yihaodian.
|Himpuli wants government support for native chicken industry|
[01 March 2017] The Indonesian Local Poultry Farmers Association (Himpuli) wants the government to exclude the native chicken industry from the list of negative investment and open the industry for state-owned companies like PT Berdikari to venture into native chicken breeding. Ade M Zulkarnain, Himpuli Chairman said the government still limits investment in the industry to a maximum of USD 750,000. “This policy is not relevant to the current situation where demand for native chicken DOC continues to increase,” he said. National native chicken DOC production currently is around 95-100 million chicks. Mr Zulkarnain predicted the production will grow to 110 million chicks this year.
|Soybean market rebounds|
[28 February 2017] Soybean meal prices have rebounded from a low of USD 370 per tonne in October 2016 to around USD 400 per tonne. In June 2016 it reached a high of USD 490 per tonne. A trader based in Malaysia told Asian Agribiz, the rise in price can be attributed to heavy rains in Argentina, which is not favourable to the crop. “However, with good soybean harvest progress in Brazil, and farmers are consistently reporting excellent and record yields, local buyers are still bearish on soybean meal,” she said. Brazil’s soybean harvest reached 24.8% of planted area by last week, above the five-year average of 17.1% for this time of the year, Safras Mercado consultancy said.
|Vietnam, Philippines to discuss poultry meat trade |
[28 February 2017] Poultry meat trade is among the topics up for discussion between Vietnam's Foreign Minister Pham Binh Minh and the Philippine Secretary of Foreign Affairs Perfecto Yasay. Both have agreed to hasten the approval of the Vietnam-Philippines action program for 2017-2022 to forge stronger bilateral cooperation. Mr Yasay vowed to consider creating favourable conditions for Vietnam’s poultry meat, vegetable and fruit to be sold in the Philippines. Both parties have pledged to urge agencies of each country to implement agreements and enhance the efficiency of existing partnership mechanisms. In January the Philippines banned all imported poultry products from South Korea, Germany, France and the Netherlands due to the outbreak of avian influenza.
|Vietnam pig farmer told to reassess their growth plans|
[28 February 2017] Pig farmers in Vietnam are suffering huge losses and were told to review their pig farming plans to better match market demand. Localities should not increase their number of pigs especially sows, Agriculture and Rural Development Minister Nguyen Xuan Cuong said, urging them to raise instead pigs that generate high yield or special ones to suit certain groups of consumers. The ministry also asked people’s committees in provinces to instruct pig farmers to apply diversified models such as semi-industrial hog production, conventional or organic farming instead of solely developing industrial hog production. The processing industry needs to diversify meats and increase value addition.
|Balitnak Ciawi launches new local chicken breed|
[28 February 2017] Indonesia’s Livestock Research Agency (Balitnak) in Ciawi, Bogor, which is under the Ministry of Agriculture, recently launched a new local chicken breed called SenSi-1 Agrinak. “The launch of this breed is in response to growing demand for local DOC with better performance,” said Fadjry Djufry, Head of Indonesia’s Centre for Livestock Research. The meat-type local chicken is superior in body weight gain and more resistant to diseases compared to regular local chicken. In 70 days, the new breed is able to reach 800-1000g of harvest weight. At breeder level, SenSi-1 Agrinak’s peak egg production is around 61.98% with a fertility rate of 85.47%.
ARIEF FACHRUDIN reports from a poultry seminar in Bogor, Indonesia
[28 February 2017]
Indonesia should upgrade to face WTO challenges
As a member of the World Trade Organization (WTO), Indonesia has to be ready to compete in the global marketplace, including in the livestock and poultry sectors. Complaints from the US, New Zealand and Brazil should serve as an impetus for the livestock and poultry industry to improve.
Slim chance of winning WTO appeal
In December last year, a WTO panel agreed with the US and New Zealand, on all 18 of its claims that Indonesia’s unfair trade restrictions on importation of horticulture, animals and animal products are not consistent with WTO rules. Erwidodo, Senior Researcher at the Indonesian Centre for Agricultural Socio Economics & Policy Studies of the Ministry of Agriculture said Indonesia filed its appeal towards the disputewith the WTO on February 17, 2017. “I believe the chance to win is small. It’s better to accept the panel’s decision and revise our policies,” he said. However, he appreciates the government’s determination in defending its farmers.
Industry should be concerned about DS484
US and New Zealand’s complaints to the WTO on Indonesia’s unfair trade restrictions under the dispute settlements (DS) number 478 and 477, respectively, are mainly about horticulture. There are only eight measures about import licensing regime for animals and animal products, and they are not specific on poultry, according to Dr Erwidodo who was Indonesian Ambassador to the WTO, from 2008-2012. He said that Indonesia’s poultry industry should be more concerned about DS484 where Brazil zeros in on Indonesia’s measures concerning the importation of chicken meat and chicken products. There are 19 third parties in this dispute, including the US, China, Vietnam, India and Thailand, to name a few.
Indonesia’s poultry industry needs to improve
On DS484, Arief Daryanto, Indonesian poultry economist said the decision will be announced in May this year. “If we lose again, we can accept it or appeal again,” Dr Daryanto said. “There are also trade defence instruments that we can use to protect our national poultry industry. However, the fact remains that our poultry industry needs to improve. Our challenge is how to increase production capacity, productivity and competitiveness.” According to Dr Erwidodo, trade defence instruments include anti-dumping, safeguards, standards, and sanitary & phytosanitary measures (SPS). “The instruments are reciprocal, so our local policies have to be consistent with that,” he said.
Protection from cheap CLQ
Regarding the trade dispute on chicken meat and chicken products importation, Tony Kristiantono, Chairman of the Indonesian Agribusiness Club said the government has to be concerned about chicken leg quarter (CLQ). In the US, this commodity is a by-product and the price is only about USD 40 cents per kg. “The government has to protect the national poultry industry from cheap CLQ. If CLQ from the US or Brazil can enter Indonesia, I think not only the small players, but the big players also may collapse,” Mr Kristiantono said.
Exploring non-traditional markets
The government claims that the national poultry industry is already self-sufficient, even the production of broilers is surplus. Dr Rasa said Indonesia is now exploring exports of its further processed chicken products to Japan. Charoen Pokphand Indonesia, Japfa Comfeed Indonesia and Malindo Feedmill have been in talks with its Japanese counterparts. On the other hand, according to Dr Erwidodo, it is better for Indonesia to explore the non-traditional markets such as Asean countries and African countries for its chicken meat and chicken products. “Traditional markets like the US, EU and Japan have very strict standards and requirements that are not easy to meet,” he said.
|New Hope Liuhe expects processed meat sales to grow 10-15%|
[27 February 2017] New Hope Liuhe Co said its sales of processed meat products are expected to rise 10-15% this year, following an over 10% growth in 2016. In an investor relationship memo obtained by Asian Agribiz, Spokesman Bai Xubo said the top Chinese feedmiller’s fresh and processed meat sales totalled 2.2 million tonnes last year, up about 7%. “We will not increase much in our slaughtering capacity over the next several years, but expand the processed meat operations aggressively, as they have much higher profit margins and are running at full capacity,” Mr Bai said, adding that the company will also seek M&As and partnerships in the further processing segment. In December 2016, New Hope announced to set up a 50-50 joint venture with French pork integrator Cooperl Arc Atlantique to produce cooked pork products such as bacon, sausage and ham.
|Indonesia to increase its cattle population|
[27 February 2017] In order to increase the population of cattle in Indonesia, the country’s Ministry of Agriculture, under its Special Effort of Mandatory Pregnant Cows (Upsus Siwab), this year will prepare 4 million cattle for acceptors – of this figure, 3 million heads are targeted to be pregnant. For this program, the ministry through its agencies in different regions will intensify checking & monitoring of cattle reproductive problems, artificial insemination services, control of productive heifers and cows, and assure the supply of forage and concentrates. As another effort to increase the cattle population, the ministry has also obliged cattle importers to import one breeding cattle for every five imported feeder cattle.
|Tumen Shuvuut unlocks fortified egg mart in Mongolia|
[27 February 2017] Mongolian layer company Tumen Shuvuut LLC holds 30% of the country’s egg market share. It recently introduced selenium-enriched eggs at supermarkets across the country. Bold Jigjid, Director, said it is still early to gauge consumer acceptance levels nevertheless the company has plans to expand total egg production. “This year we’re planning to increase our layer numbers by 80,000,” he told Asian Agribiz. The company’s 200,000 hens lay roughly 45 million eggs a year. Some 10% of this is now selenium-enriched. He said that while the focus will be on the company’s regular and selenium-fortified eggs, it also has plans to produce other egg products in the future.
|Ceva signs new JV in China|
[27 February 2017] Ceva Santé Animal Health has signed a JV agreement with EBVAC, founded in 2005 by the China Animal Health and Epidemiology Centre, to create Ceva EBVAC. The JV will focus on providing vaccines and pharmaceutical products for China’s swine sector. Under the agreement, both parties agreed to invest significantly in a new r&d program. In addition, EBVAC is building a world class industrial facility that will allow the new dynamic in r&d to be converted into high quality vaccines.
|Pakistan exports seafood to China via land route|
[27 February 2017] Pakistan will start exporting seafood to China’s Xinjiang Uygur autonomous region using a land route that China will use to ship oil and natural gas from the Middle East. Frozen seafood will depart Pakistan’s Gwadar Port on the shores of the Arabian Sea in containers and enter China via the Khunjerab Pass. After a successful trial last month, regular shipments are to start on April 1, according to Mufeng Biological Technology, which will ship products from its cold-storage distribution centre near Khunjerab. “It takes about 10 days for the seafood to be transported and cleared by customs on the land route,” said Chen Haiou, Mufeng Chairman. Last month, the company shipped 7.46 tonnes of seafood, including squid, shrimp, pomfret and bonefish, from Khunjerab to be sold at markets in Urumqi, capital of Xinjiang, as well as Beijing and Shanghai. Express Tribune reported that China is Pakistan’s biggest seafood importer, with about 75% of the country’s shrimp products sold to China, Mr Chen said, adding that his company is also considering shipping live seafood.
|Mavin Austfeed inaugurates latest feedmill in central Vietnam |
[24 February 2017] Australia-Vietnam joint venture company Mavin Austfeed inaugurated its sixth feedmill recently. Located in the central province of Nghe An, the 3.6ha plant is equipped with latest technologies from the US, Germany and Switzerland. It is designed to produce 300,000 tonnes of feed per year, said Mavin Group’s Chairman David Whitehead. “I highly appreciated Mavin Austfeed’s development in Vietnam, especially further rooted with the newly launched feedmill. I will continue to support the company in its Farm to Table journey,” said Australian Ambassador Craig Chittick. To further develop its integrated food chain the company plans to open a USD 16 million pig farm in Anh Son district next year.
|Indonesia’s wheat imports will remain high if corn production fails to meet demand|
[24 February 2017] The Indonesian government’s decision to stop corn importation for feed is expected to increase wheat imports if local corn production cannot meet demand from feed millers in the country, according to Enny Sri Hartati, Executive Director of the Institute for Development of Economics and Finance (Indef). The country’s Statistic Centre Agency reported that wheat imports in 2015 were 7.41 million tonnes with a value of USD 2 million. The imports then surged to 10.50 million tonnes in 2016, of which 2.2 million tonnes were feed grade. “The government always claims a surplus corn production, but this is not so,” said Ms Hartati. “So if national corn production can’t meet demand for feed and food, import of wheat will remain high this year.”
|Three Asian countries report H5N1 outbreaks|
[24 February 2017] Three Asian countries have reported new highly pathogenic H5N1 avian flu outbreaks in poultry, while others report more H5N8 detections in both wild birds and poultry, according to the World Organization for Animal Health (OIE). India, Laos, and Vietnam all reported fresh H5N1 detections. India's agriculture ministry said that the virus struck a state poultry breeding and research farm in Odisha state. In Laos, officials said H5N1 was detected in village poultry near Vientaine, which led to the culling of 700 birds. The agriculture ministry said the outbreak is the fourth involving H5N1 in Laos this year. Vietnam reported three more H5N1 outbreaks in different provinces, all involving backyard poultry. Affected provinces are Soc Trang and Dong Nai in the south Nam Dinh in the north. The outbreaks began on Feb 14 and Feb 15, and has killed 4,300 of 10,590 susceptible poultry. Meanwhile, South Korean officials have confirmed another H5N8 outbreak, this time affecting a duck farm in South Jeolla province in the southwestern part of the country.
|Thai Union’s revenue up 7.3% in 2016|
[24 February 2017] Thailand’s Thai Union (TU) has recorded consolidated sales of USD 3.8 billion in 2016, up 7.3% from 2015 due mainly to price adjustment from higher shrimp and salmon raw material prices and the acquisition of Rügen Fisch and Chez Nous. In 2016, TU’s sales in the US continued to play an important role, accounting for 39% of total sales. While Europe contributed 33% of total sales, Thailand’s domestic market accounted for 8% of total sales. TU’s net profit was USD 150 million in 2016, which was stable from 2015. Despite the tough operating environment from rising raw material prices, TU said it managed to report stable net profit supported by dividend income contribution from Red Lobster, cost control efforts and lower tax expenses. Thiraphong Chansiri, CEO of TU, said “Thai Union’s 2016 earnings show that demand for our products remain strong.”
|VNF turns shrimp waste into animal feed, biological derivatives|
[24 February 2017] Six years ago in Ca Mau province, Vietnam’s hub of aquaculture and seafood processing, shrimp shells from processing lay around in large piles. This prompted VNF, the largest and most high-tech manufacturer of protein extracted from aquatic products in Vietnam, to draw up a plan to take advantage of the waste. The company signed contracts with large seafood companies’ to buy their waste. Hoang Viet Tung, Director said VNF collects more than 100 tonnes every day. Shrimp waste - heads and shells – are being used to produce animal feed and biological derivatives, resulting in high profits. One kilo of shrimp heads can be sold at a low price of several thousands of dong to animal feed manufacturers. However, if the waste is used to make biological derivatives that serve the food industry, the price could be USD 0.88/kg, Vietnamnet reported.
|Carl's Jr. plans to open 100 restaurants in India|
[24 February 2017] American burger chain Carl’s Jr. has announced the opening of its new restaurant in Gurugram, India. Operated by Cybiz BrightStar Restaurants, which is owned by CybizCorp, the new restaurant has added new offerings to its menu such as char grilled chicken patties, premium all white meat chicken breasts and mutton burgers. The company said the launch is part of their master franchise agreement in Northern and Western India, between Cybiz and CKE Restaurants Holdings, parent company of Carl’s Jr. and Hardee’s, to bring 100 restaurants to India over the next 10 years, as reported by Restaurant India. Brad Sommer, CKE VP of Franchise Operations & Development said: “We’re excited to continue expanding in India. Our premium yet affordably priced menu items really resonate with the diverse, rich flavours of the Indian palate.”
|Malindo installs new corn dryers, silos|
[23 February 2017] Malindo Feedmill, one of the largest poultry integrators in Indonesia, said that it will add new silos with a capacity of 50,000 tonnes, plus new corn dryers with a total capacity of 2000 tonnes/day in Makassar, Grobogan, Gresik and Lampung this year. In a press release received by Asian Agribiz, Rewin Hanrahan, Director said the addition of new silos and corn dryers is in response to the government’s request to feedmillers to absorb local corn. He explained that a new corn dryer has been installed at the Makassar plant, while a new silo for this plant is still under installation and will be completed in May. A new corn dryer at the Grobogan plant will come on stream this February. Installations of new corn dryers and silos at the Gresik and Lampung plants are expected to come on stream by early next year.
|Malaysia to bring in 166,000 tonnes of corn|
[23 February 2017] Malaysia is due to receive about three to four shipments of US corn this month. A Malaysian-based trader told Asian Agribiz that this is rare because Malaysia has a preference for South American corn. Brazil made the decision last year to slash to half its export of corn to deal with a shortage. “The US has officially shipped 166,000 tonnes of corn to Malaysia this crop year, with another 64,000 tonnes on the books,” Kevin Roepke, Regional Director, US Grains Council, told Asian Agribiz. He added that “this year’s crop quality is excellent, and various challenges in logistics, production and price have led to Malaysian buyers turning back to US origin, as it is consistent and a reliable supplier of corn”.
|New Hope Liuhe's 2016 feed sales up 5%|
[23 February 2017] China’s New Hope Liuhe Co said its sales volume of feed products rose about 5% last year. Of this, sales to the poultry and pig segments rose 7% and 5% respectively, while ruminant feed sales jumped more than 10%. However, the company’s aquafeed sales were down about 8% due to heavy floods in south China. In 2015, New Hope’s total feed sales shrank 7.7% to 14.5 million tonnes. Looking ahead, the company expects its pig feed sales to grow faster in 2017 as China’s pig stock is expected to be higher than last year. “Our own pig production is expected to double this year, which will also contribute to the feed sales,” spokesman Bai Xubo said, adding that New Hope’s live pig sales exceeded 1.1 million heads in 2016.
|Horizon sets up chicken processing plant|
[23 February 2017] Indonesia’s Horizon Investment has allocated USD 2.2 million to set up a chicken processing plant in Bogor, West Java. Construction started early this month. “The construction will take about seven months,” said Resul Akkus, Director. Horizon’s main business is in wheat seed processing. In 2015, the company ventured into broiler farming. With the existence of the processing plant, the company aims to increase its broiler production to 450,000 birds per cycle (40 days). Meanwhile, in 2020 the company targets to produce 1 million broilers per cycle. In another development, Mr Akkus revealed that the company plans to venture into layer farming next year.
|South Korea imposes quarantine checks for imported frozen shrimp|
[23 February 2017] Frozen shrimp exported to South Korea from member countries of the World Trade Organisation (WTO), including Vietnam, must undergo quarantine checks before export, Vietnam News Agency reported. This was stated in the new regulations under the country’s law on fishery disease management. South Korea’s embassy in Vietnam made an announcement on the new regulations issued by the country’s Ministry of Oceans and Fisheries. South Korea has added frozen shrimp products to the list of seafood products that must undergo quarantine checks before entering the country from April 1, this year. South Korea has recognised six centres in Vietnam that qualify to undertake quarantine checks on seafood products exported to the country.
|Big Dutchman acquires livestock building business from Betco|
[23 February 2017] Big Dutchman has acquired Qingdao Betco Asia Co Ltd (Betco Qingdao), the livestock building business of Betco Inc. Betco Qingdao is a leading suppliers of steel structure buildings for pig and poultry management worldwide, particularly in Asia-Pacific. Big Dutchman CEO Bernd Meerpohl said the acquisition is “an important step to strengthen the building know-how of our brand Agricon and to further our strategy of becoming the most competitive supplier of turnkey solutions.”
|Thailand’s DLD says there is no bird flu in poultry sector|
[22 February 2017] Amidst bird flu outbreaks in many countries across the world, Thailand’s Department of Livestock Development (DLD) said the country has remained bird flu-free for nine consecutive years due to strict monitoring and implementation of biosecurity measures. Apai Suttisunk, Director General of DLD said DLD, the Ministry of Public Health and the Ministry of Natural Resources and Environment have stayed alert and have closely monitored the situation. “Thailand has successfully kept avian influenza out because farmers and companies in the industry, along with the DLD and Department of Disease Control have together implemented preventive measures,” he said. Still, Mr Apai urged farmers to tighten their biosecurity measures and to strictly prevent the entry of diseases onto their farms.
|Japfa celebrates great harvest of corn in Lampung|
[22 February 2017] Indonesia’s Japfa Comfeed Indonesia recently celebrated a great corn harvest in Lampung together with its partner farmers, endorsing its commitment to the Ministry of Agriculture to absorb local corn. According to a press-release received by Asian Agribiz, the company partners with Vasham Kosa Sejahtera and academicians from the University of Lampung. “This great harvest proves the success of the partnerships,” said Rachmat Indrajaya, Japfa External Relations Director. As of now, Vasham, which focuses on food crops partnership, has partnered with 6460 corn farmers. Mid last year, Vasham set up a 400 tonne/day corn drying facility, as well as warehouses with a total capacity of 24,000 tonnes in three different locations in Lampung. “What farmers need is post-harvest technology. This will increase their harvest quality,” said Irvan Kolonas, Vasham CEO.
|CPF to buy additional stake in Ningbo Chia Tai Agriculture |
[22 February 2017] Chia Tai (China) Investment Co (CTI), a subsidiary of Charoen Pokphand Foods (CPF), said it will acquire a 15% equity interest in Ningbo Chia Tai Agriculture Co (Ningbo CT) from, Ningbo City Beilun Economic Construction Investment Co, in a deal valued at USD 3.33 million. With the acquisition, CTI will increase its equity interest in Ningbo CT from 70% to 85%. Ningbo CT is engaged in the production and sale of animal feed in China. The acquisition is expected to be completed within 45 days from the execution of the share transfer agreement, which was signed on February 17. Meanwhile, CTI is a wholly-owned subsidiary of CP China Investment Limited. The latter is a wholly-owned subsidiary of C.P. Pokphand Co (CPP). CPF holds a total of 50.43% stake in CPP through both direct and indirect shareholding.
|Housefly maggots to replace fishmeal in fish feed|
[22 February 2017] Diminishing catch due to overfishing and climate change has led to price increases of fishmeal. Takeshi Miura, Professor of Fish Reproductive Physiology at Ehime University in Japan, has been studying how to farm fish by feeding them insect-derived products since 2008. “Today, many fisheries use fishmeal as fish feed, but there is a chance that it could place a greater burden on precious marine resources. I believe the use of houseflies will help, said Prof Miura as reported by The Asahi Shimbun. According to his studies, farmed sea bream and yellowtail that were fed the maggots and pupae boasted a glossy coat similar to those found in the wild, unlike those that were fed fishmeal. He also found that flies are a better choice than other insects, as all maggots need to grow are waste products. Ten kg of manure acquired from pig farms can be turned into 1kg of larvae and 3kg of fertilizer, meaning the pig manure requires no waste treatment.
China’s pork imports expected to remain high in 2017
[22 February 2017]
China recorded high pork imports in 2016 amidst a domestic drop in pork production due to stricter environment polices. The sector is still struggling to recover this year, leaving the much-cheaper imports to fill the demand gap again, though the import rise will be curbed with slightly lower Chinese pork prices, writes ALLEN SHU.
China’s 2016 pork imports exceed 3mt
China’s imports of pig products totaled 3.11 million tonnes valued at USD 5.81 billion in 2016, up 95.1% and 111.4% respectively, said the Ministry of Agriculture, citing China Customs. Chilled/frozen pork imports rose 108.4% to 1.62 million tonnes, while imports of pig offal were up 82.5% at 1.49 million tonnes, with the US, Germany, Spain, Denmark and Canada being the major sources. Monthly imports peaked in June and swung back to growth in December, in line with the movement of domestic pork prices during the year. In addition, “the import volume of chilled/frozen pork has been more than pig offal since August 2015,” noted Pan Qiaolian, Analyst with Chinese agribusiness consultancy Boyar.
The US continues leadership in pork exports
Although the US were losing market share in Asia over the last two years to European pork, US pork exporters ‘had a good year’ in 2016, with total exports to China and Hong Kong reaching 544,943 tonnes valued at USD 1.08 billion, according to the US Meat Export Federation (USMEF). “For this year, we see Chinese pork prices to be slightly lower than 2016, which will affect imports from all sources,” Joel Haggard, Senior Vice President for Asia Pacific, told Asian Agribiz. On the other hand, he said, more US companies are switching to China-compliant production methods, which will expand capacity of the US pork industry to meet Chinese demands. "Also, as European prices rise, the US will find itself more competitive from a price standpoint as US pork production is set to increase again this year."
More pork import channels are available in China
According to Boyar’s Ms Pan, China accelerated approvals on ports for meat imports in 2016, expanding the number of designated ports to more than 50 and covering most provinces in the country. “This will clearly facilitate more imports,” she said. Meanwhile, China Customs said the domestic market would feel more pressure as the nation started rail imports of European pork in December 2016, which saves more than 30 days compared to ocean shipping, thus reducing trading costs and pushing the trade up. “Domestic traders are also keen to expand pork imports due to the significant price gap,” China Customs said in an analytical note. China’s pork prices stood at about USD 4.3/kg last year, almost double that of imported products.
Ministry worries about pig farming bans, imports
Ma Youxiang, Director General of Animal Husbandry Division under China’s Ministry of Agriculture, said the expanded farming bans and surging pork imports are the major challenges for the Chinese pig sector, particularly as many local governments were discouraged amid higher requirements on environment preservation. “Some regions even oversimplified the environment policy to free-pig status. The non-market-oriented regulations have led to a continued decline in China’s sow stock,” said Mr Ma. Data from the ministry shows that as of December 2016, the nation’s stock of sows and commercial pigs were down 3.6% and 4.2% respectively from a year earlier. Last year, China’s pork output was down 3.4% at 52.99 million tonnes.
Chinese producers see little impact of pork imports
Unlike the ministry’s concerns, major Chinese pig producers are more optimistic about the sector and are understanding of the rising pork imports. “We expect pig prices and farming profits to remain high in 2017, buoyed by a still low sow stock and stricter environment policies,” said New Hope Liuhe Co, China’s top feedmiller that is also aggressively expanding its pig farming and processing operations. “There is an uptrend for pork imports in China, but it is supplementary and accounts for little in domestic supply,” it noted. China’s top pig producer Guangdong Wens Group also sees little impact, as 'Chinese consumers prefer fresh meat rather than imported frozen pork'.
|Indonesia suspends Indian buffalo meat imports|
[21 February 2017] The Indonesian government has suspended import of Indian buffalo meat following a ruling by the nation’s Constitutional Court, but there are many who believe the ban will not last. Recently the court ruled that meat from countries prone to foot and mouth disease (FMD) could only be imported under emergency circumstances. Ross Ainsworth, a veterinary consultant said: “The website of the World Organisation for Animal Health clearly states that India is not FMD free according to the rules. There are concerns that it is possible to transmit the virus through frozen meat.” Dr Ainsworth told ABC Rural. On the other hand, Teguh Boediaya, Chairman of Indonesia’s National Livestock Council told Asian Agribiz that 'emergency circumstances' according to law is confusing as there is no definition and explanation.
|Vietnam plans to become global shrimp production base|
[21 February 2017] Prime Minister Nguyen Xuan Phuc said Vietnam should aim to become the shrimp production centre of the world. He said in Vietnam Net that exporting USD 10 billion worth of shrimp products by 2025 is feasible. He said the Ministry of Agriculture and Rural Development’s USD 10 billion a year target by 2030 was too low. Mr Phuc said if Minh Phu Seafood JSC targets exporting USD 2 billion worth of shrimp by 2021, the entire Ca Mau province would be able to export USD 4 billion worth of shrimp. The remaining USD 6 billion can be reached by other provinces and cities. This means that the USD 10 billion target by 2020 can be achieved.
|Taiwan bans transportation of poultry due to AI|
[21 February 2017] Taiwan banned the transportation of poultry for seven days starting February 17 as part of ongoing efforts to contain the spread of avian influenza (AI), the Council of Agriculture said. The ban will not apply to DOC or chickens raised indoors and sent directly to slaughterhouses, said Lin Tsung-hsien, Council Minister. Eggs that have been washed or sanitised and certified by council-contracted veterinarians can also be transported for sale, he added. Since last week, six farms in Hualien, Chiayi and Yunlin counties, as well as Tainan, have been confirmed as having been infected with the H5N6 flu virus, the Bureau of Animal and Plant Health Inspection and Quarantine said. The outbreak has put authorities on high alert, because the virus is both highly contagious and transmittable to humans, reported the Taipei Times.
|Demand for meat grows in Cambodia|
[21 February 2017] Cambodia’s growing population, urbanisation, economic growth and changing consumption patterns have created opportunities for the growth of the livestock sector in the country, reported the Khmer Times quoting the Ministry of Agriculture, Forestry and Fisheries’ (MAFF) annual report. “With an estimated population growth rate of 1.8%, projected meat demand in Cambodia from 2016 to 2024 is anticipated to increase from about 280,000 tonnes to 328,085 tonnes a year,” stated the report. Some 1.35 million domesticated animals were slaughtered for meat throughout the country, to meet growing demand. “Throughout the year, some 55,292 cows, 1155 buffaloes, 299,871 pigs, and 994,454 chickens were slaughtered for local meat consumption,” the report stated.
|India’s meat production increases by 9%|
[21 February 2017] India’s meat production registered an increase of nearly 9% in the 2016-17 monsoon over the previous year. According to government data, total meat production rose to 2.43 million tonnes between July-October 2016-17, against 2.24 million tonnes for the same period in 2015-16. The central government had set a target of 7.37 million tonnes of meat production for 2016-17, of which, 63.28% has been achieved in the past eight months. “Nearly 47.86% of meat production is contributed by poultry and 20.11% from buffaloes,” said the government’s report. Uttar Pradesh tops the list of highest meat producing states, followed by Maharashtra, West Bengal, Andhra Pradesh and Telangana, reported the The Deccan Herald.
|UAE allows import of poultry products from Pakistan|
[21 February 2017] Pakistan’s Ministry of Commerce has said that the United Arab Emirates (UAE) has given permission to Pakistan to export poultry products, The Nation reported. The UAE has granted permission to import DOC and hatching eggs from companies that are certified for export with attached health certificates, and permission to import poultry meat and its products from slaughterhouses that are certified for export. Commerce Minister Engineer Khurram Dastgir Khan said: “Pakistan appreciates the lifting of the ban.” The UAE annually imports more than USD 700 million worth of poultry products, a market from which Pakistan was barred for eight years.
|CP Indonesia educates corn farmers about post-harvest|
[20 February 2017] As Indonesia has stopped corn imports for feed, Charoen Pokphand (CP) Indonesia will educate corn farmers in the country about post-harvest management this year. Santo Kadarusman, Public Relations & Marketing Event Manager said through the program, the company hopes the farmers can meet quality standards of corn required by the company’s feedmills. “They can get a better price if they can meet our standards. So this program is also aimed at improving their earnings,” said Mr Kadarusman. The program has been introduced in North Sumatera and South Sulawesi, and will be introduced in other corn producing regions in the country.
|Japanese feedmillers tap into country’s emergency corn stockpiles|
[20 February 2017] Japan’s feed millers are expected to tap into the country’s emergency stockpiles of corn as inventories decline to critically low levels due to a delay in shipments from the US. Japan’s Ministry of Agriculture, Forestry and Fisheries plans to approve the measure after heavy storms in the northwestern US caused lengthy delays to grain loadings. Japan, the world’s top corn importer, is projected by USDA to import 15 million tonnes in the 2016/17 crop year. “We have received a request from one Japanese feedmaker to use a few thousand tonnes of corn in emergency stockpiles from the end of February due to the recent delays in shipment,” Takanari Ishibashi, Deputy Director of Feed Department told Reuters. Japan’s feed millers are required to hold emergency stocks of 850,000 tonnes of feed grains, mainly corn, which is equivalent to about one-month’s local demand. The companies need to seek approval from the government to use them in an emergency.
|Cambodia must develop breeding programs to raise productivity|
[20 February 2017] The United Nation’s Food and Agricultural Organisation (FAO) in a study on Cambodia said the country’s livestock sector cannot meet the current and growing demand for animal protein particularly pork and chicken as most livestock are raised by smallholders. Because of this, the FAO said, pork and chicken are still imported from Vietnam and Thailand. The FAO research also pointed out that livestock productivity in Cambodia lags behind that of its neighbours partly due to the 'low genetic merit' of Cambodian livestock. “Research is needed to devise breeding programs that will improve the productivity of… pigs and poultry, to increase the supply of high quality and safe animal source foods to match consumer demand,” said FAO.
|Canada aggressively pursues pork market in Asia|
[20 February 2017] Last year China imported 144% more Canadian pork. Some 12,500 forty-foot containers carried 312,000 tonnes of Canadian pork across the Pacific to China. The USD 445 million in sales of Canadian pork to China is an increase of 157%, said the Canadian Pork Council (CPC) in a press release. Japan continued as a high valued market worth USD 820 million for Canadian pork. The council said it takes an aggressive strategy towards reducing trade barriers and trade-distorting subsidies, and finding new markets. “Pork producers understand that market access is of paramount importance to the sustainability of the country and the hog industry,” stated CPC Chair Rick Bergmann.
|KFC’s Chizza sees overwhelming response in Singapore|
[20 February 2017] Mash up is a food trend catching on quickly, and KFC shows us how it is done. It rolled out the Chizza – a combination of fried chicken fillet layered with pizza toppings like pizza sauce, chicken ham, pineapple chunks, mozzarella cheese and cheese sauce – recently at outlets in Singapore. Juliana Lim, KFC Senior Marketing Director, told Asian Agribiz: “Demand exceeded our projected number of servings per store.” She said the company is working closely with its ingredient suppliers to accelerate supply and meet their stock requirements. “We hope our customers will bear with us while we strive to improve our operations and service standards in meeting this overwhelming demand.”
|Vietnam urges Australia to remove shrimp import ban|
[20 February 2017] Vietnam’s Ministry of Industry and Trade (MOIT) has requested that Australia relaxes or issue alternative measures for the ban the latter has imposed on shrimp from Vietnam. The ban took effect on January 9, following the detection of white spot syndrome virus (WSSV) in farmed and wild prawns in Queensland since early December 2016. Shrimp shipments from Vietnam, which departed the exporting country on or after January 9, 2017, according to the ban, will be re-exported or destroyed. Vietnam has remained the biggest supplier of processed shrimp to Australia over the past five years, accounting for more than 33% of the country’s total imports. Meanwhile, Australia ranks seventh among buyers of Vietnam shrimps, making up 3.3% of Vietnam’s total shrimp exports.
|Three major themes for 2017 PigFeed QC|
[17 February 2017] Participants to this year’s Pig Feed Quality Conference will receive updates on three themes important to Asia’s pig industries: feeding for heavier bodyweights without sacrificing carcass quality, reducing the use of in-feed antibiotics, and managing low crude protein diets. The annual conference organised by Asian Agribiz for April 25-26 in Ho Chi Minh City, will have 18 presentations by 14 world class experts, with much data presented in Asia for the first time. Visit Pig FeedQC 2017 or contact Sutasinee Lake at email@example.com for more information and to register.
|Bangkok Ranch to set up new JV and subsidiary in Vietnam, Cambodia |
[17 February 2017] Thailand’s Bangkok Ranch (BR) said it will set up new joint ventures with its Vietnamese partners, aiming to expand its food business in Vietnam. Asia Pacific International Trading Joint Stock Company, with a registered capital of USD 100,000, will engage in trading, import, export of consumable goods and food products. BR will hold 49% of the new JV, while its Vietnamese partners will hold 51% of the company. Meanwhile, BR will also establish its new subsidiary, M&M food service company limited, in Cambodia. The new subsidiary will engage in food production and restaurants in Cambodia. BR will hold 99% of M&M food service, which will have a registered capital of USD 100,000. BR said its new JV and subsidiary will support the company’s new business and growth.
|AVA culls free-range chickens in a bid to control bird flu|
[17 February 2017] Singapore’s Agri-Food and Veterinary Authority (AVA) was in the limelight recently when it said it would ‘manage the free-ranging chicken population’ on the island by culling them. Dr Yap Him Hoo, Director-General, AVA, clarified that the move was to control bird flu at source and not because of the complaints of noise from these birds. “That is not the case,” he said. “AVA’s concern is… about public health and safety. The noise issue only served to bring our attention to the high number of free-roaming chickens in certain areas, which in turn raise the exposure risk to bird flu there.” He said the risk is real and significant as Singapore is one of the stopover nodes for migratory wild birds.
|US beef exports to Asia maintain momentum|
[17 February 2017] Total US beef and by-product exports to Japan, Korea and Taiwan maintained their momentum through the end of 2016, with volumes up 26%, 42% and 25% respectively, according to the US Meat Export Federation (USMEF). In addition, exports to Indonesia ended the year at 10,783 tonnes, up from only 1,536 tonnes in 2015 and 6,559 tonnes in 2014. Exports to Vietnam also maintained a higher pace throughout the year, up 47% at 6,211 tonnes. For 2017, the US remains hopeful to regain access to China’s beef market. “Buying interest is intense, but we are trying to manage expectations as we expect China’s import conditions will require us to establish a special cattle and beef production supply chain unique for Chinese customers,” Joel Haggard, Senior Vice President for Asia Pacific, told Asian Agribiz. This will require additional US government certification and verification that will add costs to the product, he added.
|Malindo allocates USD50m for business expansion|
[17 February 2017] Indonesia’s poultry integrator Malindo Feedmill has said that it plans to allocate around USD 50 million for capital expenditure (capex) this year, or 30% higher than the previous year’s capex. Rudi Hartono Husin, Finance Director said the company will use the capex to set up feedmills, poultry farms, and warehouses including corn dryers. This expansion will be located in Java and Sumatera. Mr Husin also said that the company targets its total income this year to grow by 10-15%. Sales of feed and DOC are still expected as the main contributor for the income. Meanwhile, its food business so far only contributes around 5%. “The country’s increasing animal protein consumption will still be the main driver for our growth this year. Plus, the government has made efforts to solve problems in the poultry industry,” said Rewin Hanrahan, Director.
|Vietnam targets USD10b in shrimp exports by 2025|
[17 February 2017] Vietnamese Prime Minister Nguyen Xuan Phuc wants the shrimp industry to target USD 10 billion in export value by 2025. Vietnam is the world’s third largest shrimp exporter and the world’s leading exporter of giant tiger prawn. Shrimp exports accounted for nearly half of the total seafood exports. In 2014 export value reached its peak at USD 4 billion. Mr Phuc said the industry should work to account for 10% of the country’s GDP. He asked the State Bank of Vietnam to instruct commercial banks to provide capital for the industry, especially for high-tech breeding, and reminded exporters to diversify export markets to avoid risks stemming from reliance on a single market. He also pledged government support for the industry.
|Indo PD Mandiri plans for duck processing plant|
[16 February 2017] Indonesia’s Indo PD Mandiri, the owner of a duck meat-based restaurant chain Bebek Goreng Pak Ndut, is now setting up a 5000-bird/day duck processing plant in Sukoharjo, Central Java province, which will support its expansion in both domestic and foreign countries. Currently the company has 54 outlets in Indonesia, three of them are directly managed by the company while the rest are franchised. The company also operates two franchised outlets in Singapore. Agus Ahmadi, Managing Director said: “This year we plan to add three new franchise outlets per month. And we are targeting regions in eastern Indonesia such as Maluku and Papua.” In addition, this year the company also wants to expand to Saudi Arabia, Germany and Malaysia, through a franchise system. The chain which sources its ducks from farmers in Central and East Java, offers different menus of duck such as Sangan duck and black pepper duck. Per portion is sold for USD 1.50-2.25.
|Thailand’s DOA destroys GMO soybean seeds|
[16 February 2017] Thailand’s Department of Agriculture (DOA) recently selected SCI Eco Services Co to manage the burning of 14.4 tonnes of imported soybean seeds from Brazil, which were tainted with genetically modified soybean seeds. Suwit Chaikiattiyos, Director General of the DOA said there were two groups of seeds, which were 7.2 tonnes of BRS Sambaiba seeds and 7.2 tonnes of BRS Tracaja seeds, Thairath reported. SCI Eco Services Co used a closed-system incinerator to burn those seeds. The seeds were totally destroyed and it will not slip into farm crops, he said. “Complying with the Plant Quarantine Act, the DOA has tightened control and regulation over import of 33 controlled seeds, especially those with GMO-tainted risks such as corn, soybean, cotton and papaya,” Mr Suwit said.
|Sunner to buy food processing assets for USD218m|
[16 February 2017] Shenzhen-listed Fujian Sunner Development Co, the largest white broiler producer in China, said it is planning to buy assets in the food processing segment for no less than USD 218 million. Details of the deal are still being discussed and intermediaries are not decided yet, the company said. There were rumors that Sunner Food Co, the further processing arm of Sunner Group, would be part of the listed subsidiary. In an exclusive interview with Asian Agribiz, Sunner Food Chairwoman Fu Fenfang said the company’s 2016 overseas sales are estimated at about USD 43.6 million, or 20% of its total revenue during the year.
|US-based genetic shrimp company to build hatchery in Japan|
[16 February 2017] Texas-based genetics shrimp hatchery Sea Products Development, subsidiary of Global Blue Technologies, plans to invest USD 20 million on simultaneous expansions in the US and Japan as demand for brood stock and post larvae shrimp intensifies. “We decided… to expand our current facility and put up a satellite hatchery in Japan that is owned by us. Then Japan can serve the Asian market, and the Texas hatchery can serve the North American, Central American and South American markets,” said Tim Aberson who spearheads the Global Blue Technologies investment division. “We’re fast becoming a global brand,” he said. “Soon we will be selling to Canada, Mexico, Belize, Vietnam, the Philippines, Indonesia, Malaysia, Thailand, Myanmar, and Sri Lanka.”
|Ayamkarkas.com’s business gains traction|
[16 February 2017] Indonesia’s online platform selling chicken carcase, ayamkarkas.com, is gaining traction. Founded in 2013 by Angga Andhikka and Yurnia Indriasari, the online platform partners with dozens of chicken processing plants in Java. “At the moment we sell around 30-50 tonnes per month. And we already have three warehouses with a total capacity of 100 tonnes,” said Mr Andhikka. “Potential of this business is big, because if we also serve orders with due payments, we will be able to sell 40 tonnes a day. We maintain this system because we want a healthy cash-flow.” Customers of ayamkarkas.com are diverse, from end-consumers to food stalls, fried chicken-based stalls, cafes, caterers and hotels. Products offered include carcase, portioned cuts and offal, but in future the company wants to add marinated and cooked products to their product range. Mr Andhikka revealed that the company plans to have its own processing plant and to partner with farmers to supply broilers.
|Vietnam’s Ho chicken is trademarked and protected|
[16 February 2017] Vietnam’s Bac Ninh native chicken breed has been trademarked as Ho Chickens - Thuan Thanh, Bac Ninh, and granted a protection certificate by the National Office of Intellectual Property of Vietnam, said Nguyen Tuan Anh, Deputy Director of Department of Science and Technology. The move will preserve and develop the chickens’ gene pool and promote the product to consumers. An adult Ho chicken has an average weight of 4-6kg and its meat is pink, fragrant and highly nutritious. Due to its slow growth and low success rate of incubated eggs, the number of the poultry raised is limited. Roughly around 100 households in Lac Tho raise 1500 chickens. The market receives about 10,000 chicks yearly.
|Translating nutrition research into practice|
[15 February 2017] With various nutrition research on pig production, how do pig and feed producers determine which is best for their requirements. At the Asian Agribiz 2017 Pig Feed Quality Conference to be held on April 25-26, 2017 in Ho Chi Minh City, a special session titled ‘Translating pig nutrition research into practice’ will update participants on recent research and advances in pig nutrition and provide practical insights into the latest science supported by relevant trial data that can be applied into their daily operations. Contact Sutasinee Lake at firstname.lastname@example.org or visit Pig Feed QC2017 for further information and to register.
|Bebek Bengil grows with demand for duck|
[15 February 2017] Indonesia’s duck meat-based resto chain Bebek Bengil, or popularly known as Dirty Duck Diner, which was founded in 1990 in Bali continues to expand to big cities in Indonesia. Currently the resto chain operates nine outlets in Bali and Greater Jakarta. Anak Agung Raka Sueni, owner said duck meat menus in the country are now gaining popularity, “that’s why we continue to open new outlets.” Bebek Bengil imports 1-kg frozen duck carcases from Java. Its store in Ubud, Bali alone needs a stock (for less than one week) of around 10,000 carcasses. Crispy duck is its best-selling menu, priced at USD 9.38 per portion of whole duck. On weekends, the resto sells no less than 1500 portions of crispy duck per day.
|Vietnam wheat imports grows 70% year-on year|
[15 February 2017] Vietnam’s wheat imports for marketing year ending June 2017 is estimated to surge 67.4% year-on-year to 5 million tonnes, largely on strong feed demand, according to the US Department of Agriculture. USDA’s projection for Vietnam’s wheat import is also seen to rise sharply from its estimate of 3.6 million tonnes for January. Hellenic Shipping News reported that strong demand from the feed industry, particularly from the aquaculture industry, such as shrimp, helped boost demand for feed wheat. Feed wheat accounted for about 25% of the imported wheat in Vietnam. Australian wheat will continue to dominate Vietnam’s wheat market, although its market share has fallen from 70% in 2015 to about 40% in 2016, said the report.
|Singapore’s Michelin-star chicken outlet expands to Taipei|
[15 February 2017] Singapore’s Michelin-star soy sauce chicken outlet is making its mark overseas with Taipei as its first stop. Slated for opening in H1 of 2017 at Hoyii North Station, the Taipei outlet will be a quick service restaurant like Hawker Chan, which opened along Smith Street, Singpaore, last November, reported AsiaOne. Last July, Mr Chan’s signature soy sauce chicken dish earned a one-star rating in the inaugural Singapore Michelin Guide. His hawker stall at Chinatown Food Complex is also touted as the cheapest Michelin-star food establishment in the world, with its award-winning soy sauce chicken noodles selling at only USD 2.50. If the Taipei branch takes off, Mr Chan hopes to expand into Malaysia next.
|Demand for free range pork in Bali is increasing|
[15 February 2017] East Bali Cashew based in Bali, Indonesia has diversified its business into pig farming and processing. Recently the company bought two boars and three gilts from Bioceleng Farm for breeding, Romeo Alfonso, owner of Bioceleng Farm told Asian Agribiz. “They want to upgrade the genetic quality of their pigs,” Mr Alfonso said. Having a total of 300 pigs, East Bali Cashew raises its pigs under a free-range farming concept. The company processes its pork into sausages and bacon, then supplies them to restaurants in Bali. Mr Alfonso, who raises his pigs under a semi free-range farming concept, said demand for pork produced from free-range or organic farms in Bali is increasing.
|H7N9 cases detected in Beijing and Shanghai|
[15 February 2017] An early, brisk spike in H7N9 avian flu infections in China, which is in its fifth wave of activity, has now reached at least 347 cases, passing the record 319 of infections seen in the second wave during the winter of 2013-14, just months after the first human cases were detected, reports the Centre for Infectious Disease Research and Policy, CIDRAP. According to Hong Kong's Centre for Health Protection (CHP), new infections were detected in two of the country's biggest cities: Beijing and Shanghai. The CHP pointed out that cases exported from Guangdong province have also been reported this season in Hong Kong, Macao, and Taiwan. China's Centre for Disease Control and Prevention has said 90% of the patients have reported exposure to poultry, especially at live-poultry markets, the CHP said.
|Malaysia’s Leong Hup plans for relisting |
[14 February 2017] Malaysia-based integrator Leong Hup International, with businesses in Indonesia, Vietnam, Singapore and the Philippines, is planning to relist on the Malaysian market and/or other bourses in the region to raise funds for expansion, acquisition, and r&d, reported The Star. The Lau family took the business private in 2012 after its share price persistently remained below the value of its net tangible asset. “We have plans for listing of the whole group within one to three years. It can be in or outside Malaysia – but most probably here. We will act when market conditions improve. It could be 2019 or 2020, when our annual turnover is expected to hit USD 1.58 – 1.8 billion,” said Tan Sri Francis Lau, Executive Chairman of Leong Hup (Malaysia) Sdn Bhd.
|CP Indonesia commits to renovate broiler houses in West Java |
[14 February 2017] Indonesia’s largest poultry integrator Charoen Pokphand (CP) Indonesia has signed a partnership agreement with the Livestock Agency of West Java province to renovate broiler farming houses in the region. Under the program which is called ‘Bedah Kandang’, the company commits to renovate 100 houses in the region this year, according to Santo Kadarusman, Public Relations & Marketing Event Manager. Through the program, which aims to increase broiler performance and farmer’ welfare, the company will provide better poultry equipment including brooding, feeding, drinking and air circulation systems, as well as technical guidance for free. Hamam Wahyu Triwibowo, Head of Customer Care & Technical Development said pilot projects of the program have shown good progress. On average the broiler performance index increased 30% after the renovation.
|Masan rides on 3F model’s success|
[14 February 2017] The success of Vietnam's Masan Group's 3F (Feed-Farm-Food) integrated model transformation has resulted in a 41.4% increase in their bottom line and contributed 50% of the group’s earnings and profits in 2016. According to its annual report, Masan’s net profit in 2016 hit a record high at USD 171.4 million. During the period, the group announced it had accomplished its 3F integrated model, which helped it access the meat and processed meat industry. The group embarked on meat production in 2015 by merging with Saigon NutriFood and establishing a subsidiary called Nutri-Science, then becoming a strategic partner of Vietnam leading meat producer Vissan in June 2016, and establishing a hi-tech swine farm in Nghe An province in November 2016.
|Indonesia’s aquaculture production to decline due to high rainfall|
[14 February 2017] Due to high rainfall during the first half of this year, Indonesia’s Ministry of Fisheries & Marine Affairs estimates that aquaculture production may decline by around 5-10%. With the anticipated high rainfall, Slamet Soebjakto, Director General of Aquaculture said the ministry will focus more on developing tilapia and catfish as they are more resistant to high rainfall. This year the ministry expects the country’s aquaculture production to reach 21.5 million tonnes, with a value of around USD 7.5 billion, and with seaweed, shrimp, snapper, tilapia and catfish as the main commodities.
|Godrej to set up aqua lab at Nellore|
[14 February 2017] Godrej Agrovet Limited launched a dedicated lab on aqua diagnostic services in Nellore, Hyderabad. This will help aqua farmers identify predisposing factors well in time and allow them to take preventive measures. The lab conducts tests on salinity, pH, ammonia, nitrite, alkalinity, hardness, iron, hydrogen sulphide, and also farmers can seek periodical water, microbial tests for better management of water tanks. Balram Yadav, MD, Godrej Agrovet Limited, said the launch of Aqua Lab will benefit about 10% of farmers in a particular area. “Considering the large number of farmers with expertise in agriculture and aquaculture we have decided to set up our lab here,” he said.
|Thailand’s DLD tightens use of antibiotics |
[13 February 2017] Thailand’s Department of Livestock Development (DLD) recently told livestock and related associations including the Swine Raisers Association of Thailand, Veterinary Practitioner Association of Thailand and Veterinary Council of Thailand that they should control and reduce the use of antibiotics in animals, especially Colistin antibiotic. The therapeutic use of Colistin should be the last option, Dr Sorravis Thaneto, Deputy Director General of DLD said. There has been concerns in recent months over the improper use of Colistin in pig farms, which could lead to drug resistant bacteria. Dr Sorravis said “antibiotics are one of the necessary tools to control and cure diseases in both humans and animals but we have to tighten quality-control standards over the use of antibiotics.”
|Indonesia faces uptrend in layer DOC price |
[13 February 2017] The price of layer DOC in Indonesia has skyrocketed in the last few months, according to the National Layer Farmers Forum. “At the moment, the average price of layer DOC is USD 0.60 per chick while the normal price is around USD 0.37-0.45,” said Ki Musbar, Coordinator of the forum. “Layer farmers complain that the price of eggs fell to around USD 1.11-1.24 per kg.” Mr Musbar said that the ideal price of eggs is USD 1.31/kg if the prices of corn and DOC are USD 0.24 per kg and USD 0.37 per chick, respectively. However, the average prices of corn and DOC now are USD 0.30 per kg and USD 0.60 per chick. “With these input prices, the ideal price of eggs should be USD 1.45 per kg,” he said. Increasing imports of processed eggs from China only worsens the situation. “The import value has reached around USD 2 million per month. The government should stop the import as it negatively impacts the national layer farming industry,” Mr Musbar added.
|Singapore brings in premium UK beef brand |
[13 February 2017] Premium meat importer ADirect Singapore Pte Ltd confirmed with Asian Agribiz that it has brought in the first shipment of Celtic Pride Welsh Beef. The brand is a collaboration between The Welsh Livestock Company, Wynnstay Group and Castell Howell Foods. On a monthly basis it is expected that prime cuts from between 10 and 20 cattle will be shipped to Singapore and into top restaurants. It was reported that Singapore has selected certain breeds including the Welsh Black, Hereford, Angus, Highland and Dexter. Prior to shipping, the cutting plants were inspected and approved by the Singapore Agri-food and Veterinary Authority.
|China 2016 meat output down 1.1%|
[13 February 2017] China’s animal protein sector was 'generally stable' last year, with total meat output down 1.1% at 83.64 million tonnes, said the National Bureau of Statistics. Pork output fell 3.4% to 52.99 million tonnes, while beef and mutton rose 2.4% and 4.2%, respectively, to 7.17 million and 4.59 million tonnes. The output of poultry meat was also up 3.4% at 18.88 million tonnes. In addition, the bureau said the nation’s poultry egg production grew 3.2% to 30.95 million tonnes, while milk output shrank by 4.1% to 36.02 million tonnes.
|Australia relaxes shrimp import suspension|
[13 February 2017] The Australian Department of Agriculture and Water Resources has relaxed its suspension of the import of uncooked prawns and related products. The department’s Director of Biosecurity has agreed to exempt certain goods from the January 9 suspension order including dried prawns and shelf-stable prawn-based food products; irradiated bait for aquatic use; pet fish food and aquaculture feed; and uncooked prawns sourced from Australia’s exclusive economic zone. Australian-caught prawns are not exempt if they have been exported to another country for processing, said the notice. The suspension was initiated after an outbreak of white spot disease was detected in five aquaculture sites on Logan River, southeast Queensland, as well as in live shrimp, last December.
|PigFeed QC puts focus on performance, quality & profitability|
[10 February 2017] Developments in genetics, management and nutrition, as well as changing consumer demands, have made tremendous impact among Asian pig producers, affecting both productivity and profitability. The 2017 Pig Feed Quality Conference, Asian Agribiz’s annual conference and scientific forum for pig and industry professionals, will run a strong technical program that addresses fundamental themes to enhance performance, quality and profitability of pig and feed production. The conference is scheduled on April 25-26, 2017 in Ho Chi Minh City, Vietnam. For details and to register, visit Pig Feed QC 2017 or contact Sutasinee Lake at email@example.com.
|US producers push for trade deals with Japan|
[10 February 2017] Business groups representing the pork and beef industries have urged the Trump administration to start trade negotiations with Japan. The National Pork Producers Council together with the National Cattlemen’s Beef Association recently sent a letter to President Trump calling for a bilateral deal that would lower tariffs and reduce barriers for their products. Japan is the biggest market for US pork and beef exports. “We realise that our competitors are doing their best to secure preferential trade agreements in many of these markets, and we are concerned that if we do not act soon, we will fall further behind our competitors in these important market,” the letter said.
|Ciomas to set up new chicken processing plants|
[10 February 2017] Indonesia’s poultry company Ciomas Adisatwa, a subsidiary of Japfa Comfeed Indonesia, plans to set up new chicken processing plants this year. Currently it already operates 10 plants throughout the country. “We will set up three new chicken processing plants equipped with modern processing technology, blast freezers, cold storage facilities and waste-treatment installations. Each plant will have a capacity of 2000-4000 birds per hour, and will cost around USD 3.7-5.2 million,” Tommy Kuncoro, Senior Vice President Director told Asian Agribiz. Mr Kuncoro said Ciomas adds one to three new chicken processing plants every year as the company continues to strengthen its distribution network and provide fresh, quality chicken meat to consumers. “In coming years, we will focus on new regions including Kalimantan, Sulawesi and Sumatera,” he added.
|Avanti Feeds expands its shrimp processing business|
[10 February 2017] India’s Avanti Feeds is going to commission its new shrimp processing plant in the first quarter of this year. Right now, the company’s shrimp processing capacity is 25 tonnes per day, while the new plant will have a capacity of 75 tonnes per day, as reported by The Economic Times. “We are going for the higher value added products. The new plant is built to produce value added products for end-consumers to boost the value of our sales,” said A Indra Kumar, Chief Managing Director.
|Japan aims to resume beef exports to Australia|
[10 February 2017] Japan aims to resume beef exports to Australia by year-end, hoping to overturn a ban on Japanese beef in place since 2001 after the discovery of mad cow disease or bovine spongiform encephalopathy. Japan has been in talks with BSE-free Australia since 2004 to resume exports of its gourmet wagyu beef. Regulator Food Standards Australia New Zealand found in 2015 that beef and beef products imported from Japan are safe for human consumption, and the Australian government is likely to issue a final draft report that would support lifting the ban later this year, an official with Japan’s Ministry of Agriculture, Forestry and Fisheries said. Australian officials could then inspect Japanese facilities around September-November before resuming imports, the official said. Japan’s global beef exports hit a record USD 118 million in 2016, the official said as quoted by Reuters.
|China’s 2016 frozen chicken imports up 44.3%|
[10 February 2017] China’s imports of frozen chicken totalled 569,132 tonnes valued at USD 1.2 billion in 2016, up 44.3% and 36.8% respectively, according to China Customs. Beef imports were up 22.4% at 579,836 tonnes, though the value grew only 8.4% to USD 2.5 billion. Mutton imports were 220,063 tonnes valued at USD 574 million during the year, down 1.3% and 21.4% respectively. However, China’s surging demand for pork drove the category’s prices up, with the import volume and value rising 108.4% and 120.1%, respectively, to 1.6 million tonnes and USD 3.2 billion last year.
|KFC to shift to franchise-only business model in Thailand|
[09 February 2017] Yum Restaurants International (Thailand), the operator of the KFC fast food chain, said recently that it is seeking to sell its last 244 KFC outlets in Thailand as it will shift to a franchise-only business model. Waewkanee Assoratgoon, General Manager of KFC at Yum Restaurants International (Thailand) said Yum will restructure its Bangkok support centre to focus on franchisee support, brand innovation and reinforcement of global operating standards, the Nation reported. Thailand has 586 KFC outlets nationwide, of which 244 belong to Yum, 219 are operated by CRG and 123 are operated by Restaurant Development Company Ltd. Meanwhile, Yum sold 130 KFC branches to RDCL in August last year as part of its strategy for the franchise-only business model. It aims to have 800 KFC outlets in Thailand by 2020.
|Myanmar reports first HPAI outbreak from chickens imported from China|
[09 February 2017] Myanmar reported its first highly pathogenic H5N6 avian influenza (HPAI) outbreak in poultry, confirmed in chickens imported from China. This comes just days after Taiwan noted its first H5N6 finding, signifying increasing spread of the virus in Asia. In a report to the World Organization for Animal Health (OIE), Myanmar said that in the wake of H7N9 outbreaks in China in 2013 it stepped up screening in chickens and ducks and their environments at live-bird markets and poultry collecting points. The fifth round of active surveillance turned up H5N6 in chickens and their environments in Monglar in Shan state in the east, on the border with China. Chickens that tested positive for the virus were from live markets, and were imported from China. The report said H5N6 was also found in ducks imported from China.
|China pork imports to determine start of seasonal price rise|
[09 February 2017] The level to which China imports pork after the Lunar New Year will determine the start of the seasonal increase of the Rabobank Five-Nation Hog Price Index, Rabobank said in its Pork Quarterly Q1 report, as its Animal Protein analyst Albert Vernooij noted that “[a] lower-than-expected decline in imports will support prices in key exporting countries, while exchange rates remain the other important variable influencing prices.” He added that the slow increase in global supply, supported by growing productivity and rising sow numbers” will also affect global prices.
|Russia looks for new export markets as grain production rises|
[09 February 2017] While Russia harvested 119 million tonnes of grain, a sharp increase from the year before, it is also seeing a decrease in exports. Last December exports dropped by 21% because of the rouble’s appreciation and weather disruptions. Bangladesh and South Korea slashed imports of wheat and corn respectively from Russia. The country is now intensifying its search for new export markets. Agricultural consulting agency SovEcon said Russia needs to find new markets and accelerate its suppliers abroad otherwise excessive stocks may significantly cut grain prices. To avoid carrying large stocks into the spring, Russia needs to sell 2.8 million tonnes of grain monthly until June 2017.
|Majority of Vietnamese still prefer warm meat|
[09 February 2017] Vietnam is still not ready for the National Standard for Food Markets being drafted by the Ministry of Industry and Trade, which regulates processing, buying and selling live poultry and livestock in traditional wet markets, as the country still leans heavily on warm meat. “This is a good idea that puts wet markets into order and protects consumers. However, it is not appropriate at this time, as 80-90% of Vietnamese consumers’ still favour warm meat,” said Vu Vinh Phu, Chairman of Hanoi Supermarkets Association. “We can see clearly that pre-packed chilled, frozen poultry products in supermarket are less attractive to consumers.” The transition is slow due to the high cost of industrially produced meat products, according to Mr Phu.
|New Indonesian breeder cattle protocol creates challenges|
[09 February 2017] The introduction of Indonesia’s breeder cattle protocol, which requires one animal imported for breeding purposes for every five animals for feedlotting, is a challenging prospect for Consolidated Pastoral Company (CPC), Australia’s second largest cattle producer, and its feedlot operations in Sumatera, as well as other Australian companies, according to Troy Setter, CPC Chief Executive. “The specification for breeders is tight and limits the number of breeder cattle that can be brought into Indonesia. It’s expensive to run breeders in a feedlot, it’s not economically viable,” he explained as quoted by ABC Rural.
|Nutritional strategies to reduce AGPs|
[08 February 2017] Amid increasing calls to reduce the use of antibiotic growth promoters (AGPs) in pig diets, improving animal health status and performance will need a holistic approach that includes better management, biosecurity measures, vaccination programs, diagnostics and feeding. At Asian Agribiz’s 2017 Pig Feed Quality to be held on April 25-26, 2017 in Ho Chi Minh City, Vietnam, nutritional strategies for maintaining good health and performance to stimulate gut development and health that can improve growth performance, while minimising the use of AGPs, will be discussed. Visit PigFeedQC2017 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Avian influenza spreads further in Asia, Europe|
[08 February 2017] Taiwan has reported its first highly pathogenic H5N6 avian influenza detection, signalling further spread of the virus into Asia. Tests on a dead goose found near Yuli Township in Hualien County were positive for H5N6, and authorities will be stepping up monitoring of migratory birds and surveillance at local poultry farms. In other Taiwan developments, officials reported seven more highly pathogenic H5N2 outbreaks to the OIE, all affecting poultry farms. Elsewhere, Japan reported a new H5 outbreak in Saga prefecture, the sixth to be affected in recent months. H5N6 had earlier been reported in Chinese poultry flocks, and since 2014 the virus has been linked to 17 infections in humans, all of them in China. Meanwhile in Europe, Germany, France, Italy, Slovakia and the United Kingdom have reported more avian influenza outbreaks.
|Ciomas to start meat shop project|
[08 February 2017] In its fresh meats sector report, Asian Agribiz has seen meat producers in the region setting up meat shops to retail meat from their farms. This trend will continue in the next five years. Recently met by Asian Agribiz in Jakarta, Tommy Kuncoro, Senior Vice President Director of Ciomas Adisatwa, a leading poultry integrator in Indonesia revealed that the company plans to set up meat shops. “The concept will be different from existing meat shops run by our competitors. We want a simpler meat shop. We don't want to have a too luxurious image so as to attract maids and housewives,” he explained. He added that the company may start the project this year with some pilot meat shops in Greater Jakarta.
|Delisi to set up central kitchen JV with Shanghai retail group|
[08 February 2017] Chinese pork processor Shandong Delisi Food Co said it has signed an agreement with Bailian Group, a Shanghai-based retail giant, to set up a 51:49 central kitchen joint venture. Total investment will be around USD 19 million. According to Delisi, Bailian operates more than 4700 stores nationwide, serving over 1 billion people a year. It generated revenue of USD 12.4 billion in 2016, ranking the first among Chinese retail groups. “We will also cooperate in market development, cold chain logistics, as well as capital integration based on this JV,” Delisi said in a statement.
|Vietnam reaches for chicken exports |
[08 February 2017] Vietnam is working towards capturing choice markets to export its chicken products. According to a report in Vietnam Net, Dong Nai provincial authorities sent a delegation to Hanoi to work with the Ministry of Agriculture and Rural Development’s Animal Husbandry Department and its agencies to export chicken to Japan. The Binh Phuoc provincial authorities meanwhile have also been organising trade activities to export chicken, targeting the Japanese, the EU and some Asian markets. The report said Vietnam is expected to export its first consignments of chicken to markets such as the EU and Japan in 2017.
|CPC ships 1200 cattle to Indonesia|
[08 February 2017] Australia’s second largest cattle producer, Consolidated Pastoral Company (CPC), has shipped its first load of cattle for 2017 to Indonesia. Around 1200 heads were exported out of Townsville to CPC’s feedlot in Lampung. Troy Setter, Chief Executive said it marked the start of what CPC hoped would be a strong year, for not only its 18 cattle stations, but two feedlots in Indonesia. “It's been a much easier process to get [import] permits in Indonesia this year,” he said as quoted by ABC Rural. “There’s talk of widening the specification of cattle into Indonesia, which we see as a positive move. There’s work being done to lift the 350kg weight average [of cattle to Indonesia] up to a reported 450kg average, which would allow us to put more weight on cattle and make them more cost-competitive for freight and easier on logistics.”
|Philippine broiler output could hit record levels in 2017|
[07 February 2017] Barring extreme weather conditions, the Philippines could see its broiler production rise to a record 1.4 billion heads this year. In a report by Business Mirror, United Broiler Raisers Association President Elias Jose Inciong said the projection is based on breeder placements and does not yet include other factors such as mortality, diseases and weather. The bulk of the growth, he told Asian Agribiz, will still be in Luzon, where there has been an oversupply. Ronald Mascariñas, President of Bounty Agro-Ventures Inc, the country’s second biggest poultry integrator, told Asian Agribiz that the industry could be in for the “biggest production in history” and that “2017 will be a rough ride for industry players.”
|No negative impact of US withdrawal from TPP on Indonesia’s seafood industry |
[07 February 2017] The US' withdrawal from the Trans-Pacific Partnership (TPP) will not negatively impact the Indonesian seafood industry, according to Budhi Wibowo, Chairman of the Indonesian Fishery Products Processing and Marketing Association. “As of now there are no tariff barriers for Indonesian seafood product exports to the US. So, if TPP continues or not, it will not impact our exports,” he told Asian Agribiz. “But we hope the new US administration will not impose any tariff barriers to our seafood products.”
|S Foods’ wagyu beef finds ground in Vietnam|
[07 February 2017] Japan-based S Foods’ wagyu beef has been available in the Vietnam market since January this year, as a result of an agreement between the company and Vietnam’s Biofarm Investment JSC. Wagyu Master is one of S Foods’ major brands for high-grade Japanese cattle raised through a special farming program. In Vietnam, the beef is retailed via a traditional retail channel at Biofarm’s store in Hanoi, and via home-delivery services. “We are not just delivering wagyu beef, but also sharing a related food culture of how to enjoy this premium meat. We are confident that the meat will be appreciated by Vietnamese consumers,” said Phan Bich Ha, Biofarm Chairwoman.
|Ukraine ships more than half of grain exports to Asia|
[07 February 2017] In 2016, more than half of Ukraine’s grain exports were sent to Asian countries, namely China, India, Indonesia and Thailand, according to the Institute of Agrarian Economics (IAE) Deputy Director Mykola Puhachov. “A distinctive feature of the year 2016 in Ukrainian grain exports was further strengthening of the Asian vector. Countries of this region took nine positions in the Top 10 main importers of Ukrainian cereals with a total share of 54.3%,” the report states. Indonesia’s grain imports increased by 2.1 times to USD 331 million, and its share reached 5.4%. Thailand’s grain imports increased to USD 301 million with a share of 4.9%. China’s share in Ukraine’s total exports came to 7.6%, the IAE said.
|Pork prices bottom-out in Cambodia|
[07 February 2017] Cambodia’s Agriculture Minister Veng Sakhon reported that demand for pork has climbed 23% in the last five years, and vendors said prices have soared 10-15%. But farmers are not enjoying this growth. According to The Cambodia Daily, a crackdown on illegal pig exports from Vietnam into China has created an oversupply that is flowing into Cambodia, depressing prices. “The price is at rock bottom,” said Mong Rotha, son of Mong Reththy, a businessman whose group operates a pig farm with about 10,000 sows near Sihanoukville. Pork had been at USD 1.75/kg for three months, he said, down about 30% and the lowest he has seen it go.
|CPF to export frozen chicken to South Korea, Singapore |
[06 February 2017] Thailand’s Charoen Pokphand Foods (CPF) said it will export around 6000 tonnes of frozen chicken and 10,000 tonnes of cooked chicken meat to South Korea and Singapore in 2017, Chatchawan Thrupmonchai, Vice President at CP Merchandising said. “We see a good opportunity in bird flu-stricken South Korea because some countries, which had exported its chicken products to South Korea, are having avian flu problems,” he said. Still, Mr Chatchawan sees intense competition in South Korea’s chicken market, which is a price-sensitive market amid strong competition from Brazil, US and EU. CPF has differentiated itself from competitors by exporting special and portioned cuts to South Korea. In all, CPF aims to increase its chicken exports by 20% in both value and volume terms in 2017, up from 120,000 tonnes last year.
|KIP expands its broiler GP operation|
[06 February 2017] Karya Indah Pertiwi (KIP), an Indonesian poultry company based in Tasikmalaya, West Java province, is expanding its broiler GP operation with the genetics from Hubbard of France. KIP currently produces around 2.6 million DOC per week for both internal needs and commercial purpose. Its sales to the free market increased rapidly lately, pushing it to increase its production capacity. Suryo Suryanta, Hubbard Regional Technical & Sales Manager told Asian Agribiz that the company may import around 80,000 (D-Line) GP hatching eggs (HE) this year to cater to its growing external sales. In 2015, KIP imported 30,000 GP HE from Hubbard.
|Vietnam among top 15 feed producers in the world|
[06 February 2017] The 2017 Alltech Global Feed Survey revealed that Vietnam feed production grew 21% over the past year and that the country moved into the top 15 countries list for the first time, specifically led by increased production of pig and broiler feed. The top 30 countries, ranked by production output, are home to 82% of the world’s feedmills and produce 86% of the world’s total feed. China remained the top feed producer with 187.20 million tonnes. Asia continues to be one of the most expensive locations in the world to raise animals, as Japan’s feed prices are among the highest in the world and China’s prices are double that of most of the top 10 producing countries.
Regional Dairy update
[06 February 2017]
Indonesia’s dairy cattle farmers ask for better milk price
The Indonesian government is expected to intervene in the selling price of (fresh) milk. According to Heru Prabowo, Vice Chairman of the Indonesian Dairy Cattle Farmers Association, the low selling price of milk has not motivated farmers to develop their business. “The price of milk now is around USD 0.37 per litre, while to reach break-even point the price should be USD 0.45,” he said. As a result, national milk production only meets 18% of the total milk demand from the milk processing industry.
Aavin’s expanded cattle feed plant is on trial run
India’s Tamil Nadu Cooperative Milk Producers Federation, popularly known as Aavin, has started the trial run at its expanded cattle feed plant in Erode. The capacity of the plant has been increased from 100 to 250 tonnes/day at a total cost of USD 3 million, as reported by The Hindu. In a year when the state is facing a drought, more cattle feed will help farmers, said the cooperative. “Even if a cow produces four litres of milk a day, the solids in the milk have to be replenished and cattle feed plays an important role in this. We have been trying to encourage more farmers to use the feed since nutrition plays a key role in animal productivity and fertility. It helps in increasing milk yield and quality. Similarly, mineral mixture too is given a thrust as maintaining animal health is important,” said a spoke person of the cooperative.
Fonterra Indonesia to sell yoghurt, cheese products
Fonterra Brands Indonesia, a subsidiary of New Zealand’s Fonterra Group, plans to sell yoghurt and cheese products in modern markets in the country in the near future. To support this business plan, the company will set up a new plant plus a warehouse. According to Tria Septariana, Head of Consumer Insight & Marketing Research, the company will sell different kinds of yoghurt and cheese products. For yoghurt, they are considering products like yoghurt drink, thick yoghurt and prebiotics. Meanwhile for cheese, cheese slices, smear cheese and cheese snacks are being considered. According to the company’s internal data, yoghurt and cheese consumption in Indonesia in 2016 increased 32% and 8.1%, respectively, compared to the previous year.
Pakistan’s antitrust watchdog fines three dairy companies
Pakistan’s antitrust watchdog has imposed a fine on three milk manufacturing companies for deceptive marketing practices. The Competition Commission of Pakistan (CCP) has passed an order imposing fines of USD 594,000 on Engro Foods Limited, USD 19,000 on Noon Pakistan Limited (NPL) and USD 4700 on Shakarganj Foods Products Limited (SFP) for violating Section 10 of the Competition Act, 2010, as reported by The Express Tribune. The order disposes off the show cause notices issued to these companies after an inquiry conducted by CCP found that they were deceiving consumers by marketing and selling tea whiteners and dairy drinks including SFP’s product Qudrat (liquid tea whitener), NPL’s product Dairy Rozana (dairy drink) and Engro Foods’ Dairy Omung (dairy drink) as milk.
|Managing low crude protein diets |
[03 February 2017] Feeding pig diets low in crude protein but balanced in essential amino acids brings a lot of benefits to both pigs and pig producers. These benefits include reduced heat increment, manure output, nitrogen excretion and ammonia emissions while maintaining performance of pigs and lowering feed costs. How to manage low crude protein diets is one of the main topics at Asian Agribiz’s 2017 Pig Feed Quality which will take place April 25-26, 2017 in Ho Chi Minh City, Vietnam. Other advantages such as increased net energy and less nitrogen in the hindgut on the pig, will also be discussed. Contact Sutasinee Lake at email@example.com or visit PigFeedQC2017 to register and get more details.
|Philippines should look at bilateral and regional trade agreements|
[03 February 2017] Following the US’ withdrawal from the TPP, the Philippines is on a wait-and-see attitude as to its effects on local industries. However, Edwin Chen, President of the Pork Producers Federation of the Philippines, told Asian Agribiz that the US decision is “a major shift from free trade to protectionist policies, so definitely this would have an effect.” Meanwhile, Imelda Madarang, CEO of Fisher Farms Inc, which exports processed seafood products to the US among others, told Asian Agribiz that the Philippines should look at bilateral and trade agreements that are more relevant and suited to its situation. “There seems to be a changing perspective on multilateral trade agreements which to some is still dominated by big economies and therefore still not fair and laden with vested interests.” The real issue, she pointed out, is competitiveness. “A good product is a good product. We have to work doubly hard to achieve efficiencies and maintain quality to be really competitive.”
|Bioceleng Farm develops its pork processing|
[03 February 2017] Bioceleng Farm based in Bali, Indonesia is set to be less dependent on live pig sales. Since last year, the farm that applies a semi free range concept has been selling its pork to restaurants and hotels around Ubud in Bali. Romeo Alfonso, owner said this year the farm aims to improve its cold chain system. “We are now setting up a 4-tonne cold storage facility which costs around USD 40,000. After this, we will buy a mini reefer truck to distribute the meat quickly,” he told Asian Agribiz. Bioceleng Farm has also been selling portioned cuts. Since demand of the portioned cuts continues to pick up, the farm plans to buy better equipment for portioning, and a slicer to produce bacon. “We will brand the products with ‘Bioceleng Farm Pork’ brand. We will also buy a vacuum packaging machine to pack the products,” he said. Last but not least, Mr Alfonso also plans to set up a pork shop in Ubud in the near future, with an Italian investor.
|Thai Union secures long-term financing for Red Lobster deal |
[03 February 2017] Thailand’s Thai Union (TU) said recently that it has successfully completed the book building for USD 340.34 million in new debentures to secure long-term financing for its investment in Red Lobster Seafood Co. It has also secured USD 354.52 million in long-term loans. “The robust participation of investors in our book building reflects the confidence they have in Thai Union,” said Thiraphong Chansiri, CEO of Thai Union Group. “The result, which is important in ensuring we have the necessary long-term financing for our strategic investment in Red Lobster, also indicates that the market supports our strategy for growth and expansion.” TU will use the proceeds from both the bonds and the long-term loans mostly to finance the USD 575 million investment in Red Lobster, the world’s largest seafood restaurant company.
|Avian influenza causes slight decrease in global feed production|
[03 February 2017] The 2017 Alltech Global Feed Survey showed that the poultry industry represented 44% of the total global feed production, a slight decrease from last year. This could be a result of avian influenza, industry consolidation and more efficient feed conversion, said the report. Positive growth was observed in pig feed production, particularly in Asia as Vietnam and Thailand are now among the top 10 pig-producing countries. China represents over a quarter of the world’s pig feed production, but sow numbers have decreased by almost 40% over the past three years. Global dairy feed production remained flat, while the US and India reinforced their position as the top two producers with increases of 12 and 14%, respectively.
|San Ha differentiates with herbal chicken|
[03 February 2017] Vietnam's SanHa Foods Co Ltd is expanding its production of herbal chicken to 30,000 birds per month, priced at USD 5.32 per kg, about 30% higher than commercial white chicken. "We are competent with herbal chicken and are working closely with our partner to raise farm output," said Pham Thi Ngoc Ha, Director of SanHa Foods. SanHa's partner - Phu Ngoc cooperative, is raising more than 100,000 herbal chickens in a VietGAP certified farm in Dong Nai province. Herbal chickens, explained Ms Ha, are raised as free range birds in a large clean environment and fed with a special formula. One of the ingredients is a special herb imported from Taiwan used as an alternative to antibiotics and antibiotic growth promoter (AGP) and gives SanHa's chicken meat an exotic herbal aroma.
|Dabaco wins over Southern farmers with new coloured chicken breeds|
[02 February 2017] While chicken growers in the North of Vietnam favour red feather chicken, growers in the South prefer black feather hens. Seeing this divide, Dabaco Breeding Chicken Company Limited has introduced a package of three special breeds - blackish purple fowl, black-striped fowl and yellow-legs fowl to the Southern market and has received good feedback from farmers. Dinh Van Dong - the owner of one of the largest chicken farms in the Central Highlands said: "Dabaco's hens after 100 - 105 days, weigh 1.8 - 1.9 kg and roosters weigh 2.2 - 2.3 kg, about 300-500g higher than local breeds. That's why I have increased the number to 20,000 chickens," said Mr Dong.
|Cofco Meat's net profit swells 460% in 2016|
[02 February 2017] Chinese pig integrator Cofco Meat Holdings Ltd said its 2016 net profit will be no less than USD 123.6 million, representing a year-on-year growth of no less than 460%. The company attributed the growth to the increase in pig prices, reflecting “the decrease of China’s sow stock that was still at a low level at the end of 2016”. Cofco Meat also saw its sales of fresh pork and processed products up during the year. It’s scheduled to release its annual results in late March. Earlier, the fourth largest pig producer in China said its annual capacity is expected to exceed 3.5 million heads in 2016, up from 2.3 million at the end of 2015.
|Surabaya discontinues live pig imports from Bali|
[02 February 2017] Pig farmers in Bali, Indonesia have to find solutions if there is an oversupply of live pigs as the local government of Surabaya in East Java has decided to discontinue live pig imports from Bali. “We see that the local government wants to protect their local farmers because the market for pigs in Surabaya is not that big. So if we see there are pigs from Bali now in Surabaya, those must be illegal,” Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia told Asian Agribiz. Based on Mr Phaithoon’s data, in the last decade, live pig supply from Bali accounted for 25% of total market demand in Surabaya.
|H5N1 strikes Cambodian farm|
[02 February 2017] Cambodia's H5N1 outbreak, its first since May 2016, struck backyard birds in Svay Rieng in the country's southeast, on the border with Vietnam, the agriculture ministry said in a report early this week to the OIE. The poultry owner reported poultry illnesses and deaths beginning on January 25, which triggered testing and an investigation. The virus killed 68 of 390 birds, with the remaining ones destroyed as a response step. Authorities also imposed movement controls and disinfected the affected area.
|Ceylon Grain Elevators records lower net profit|
[02 February 2017] Sri Lankan poultry and feed milling group Ceylon Grain Elevators said its net profit for the December 2016 quarter fell nearly 5% to USD 2.44 million from a year ago. The firm, part of Singapore’s Prima group, said in a stock exchange filing that December 2016 quarter sales fell 3% to USD 24.48 million. Finance costs fell 35% and the firm also benefitted from a sharply lower tax charge, according to interim results filed with the stock exchange. A note accompanying the accounts said the company had to grapple with higher cost of raw materials but that its bottom line was strengthened by lower finance expenses through effective cash flow management.
|Grow heavier pigs without sacrificing carcass quality|
[01 February 2017] In raising pigs, market weight influences both meat quality and profit, since cost of production goes down as market weight increases. At Asian Agribiz’s 2017 Pig Feed Quality to be held on April 25-26, in Ho Chi Minh City, Vietnam, practical nutritional strategies to maximise the lean gain potential of heavier bodyweight pigs while maintaining carcass quality will be reviewed. Dr Tony Edwards of ACE Livestock Consulting, who will discuss how to optimise carcass weight in pigs without compromising carcass quality, and David Hennan of Rivalea Australia, who will talk about feeding to maximise carcass weight and quality, are just two of the experts scheduled to speak at the conference. For more information and to register, visit Pig Feed QC 2017 or contact Sutasinee Lake at firstname.lastname@example.org.
|Ciomas expands its QSR franchise|
[01 February 2017] Ciomas Adisatwa, Indonesia’s leading poultry producer and a subsidiary of Japfa Comfeed Indonesia, has successfully developed a chicken-based QSR. The first C’Bezt_fried chicken outlet targeting the middle-low income consumers was set up in 2011. Currently the chain has 106 30-seat outlets, 10 take-away outlets and 1700 cart-style outlets spread throughout the country. Tommy Kuncoro, Senior Vice President Director told Asian Agribiz that the company will continue to increase the number of outlets, but did not reveal a target for this year. “In coming years we will partner with more good franchisees, look for more prospective areas for expansion, and improve our service to our franchisees.” The chain offers different kinds of chicken-based menus such as fried chickens, cordon bleu, katsu, stick, burger, teriyaki, as well as grilled sausages. The menu comes in a package with rice/French fries and soft drink. On average a pack is priced at USD 1.12.
|Malaysia’s CAB Cakaran to increase broiler production capacity|
[01 February 2017] Malaysia’s Farm’s Best Food Industries Sdn Bhd, a subsidiary of CAB Cakaran Corp Bhd, plans to buy 26 broiler poultry farms from Farm’s Best Bhd for USD 13.21 million. According to the company the move is a key step in the growth of its broiler farm assets. It will increase its broiler production capacity and enhance its market presence. “CAB Cakaran can also achieve cost efficiency in its poultry supply chain in terms of logistics cost and pooling of resources such as labour and information, given that the breeder and broiler farms are located within the same vicinity of Malacca, Negeri Sembilan and Johor,” said CAB Cakaran.