Australia meat export prices fall on recession fear [21 November 2008] Australia's beef and lamb producers face falling export prices as global recession continue to rock markets. Weakening export demand saw Australian cattle prices drop by as much as 10% from peaks reached in September.Some of Australia's major markets like Korea and Japan reduced orders over the last few monts because of existing stocks of much higher-priced Australian beef.
Pig and turkey farming advances in Punjab [21 November 2008] More farmers in India’s northern state of Punjab are rearing pigs and turkey due to growing demand for pork and turkey in the state. Modern farming techniques are helping them gain more profit from the business. Pig farmer Harjit Singh said demand for pork is growing in Punjab and neighbouring states especially from improved breeds imported from England, the US, Canada and Australia.
RFM meat plant gets halal accreditation [21 November 2008] RFM Corp's meat processing plant in Laguna province has received its halal accreditation from the Islamic Da'Wah Council of the Philippines (IDCP), the only halal certifying body in the country recognized by the World Halal Council. In addition to the halal certification, the meat plant is also HAACP and AAA accredited. The company, which produces a variety of canned and refrigerated meat products, hopes to target a big chunk of the 1.9 billion Muslims around the world. RFM President and CEO Jose Concepcion III said that more than “70% of the world's Muslims strictly follow halal food standards, and the global halal food market is currently a USD 560-million industry.”
Poultry India 2008 attracts more exhibitors [21 November 2008] Poultry India 2008, an exhibition to be held in Hyderabad from November 26-28, 2008, has seen exhibition space doubled with visitor count expected to reach 10,000. Led by the Indian Poultry Equipment Manufacturers Association (IPEMA), Poultry India 2008 has attracted a large number of exhibitors from India and across the world. IPEMA’s President Anil Dhumal said the success of the first show in 2007 has led to a sharp rise in the number of exhibitors and visitors expected to come from South Asia, the Middle East and Africa.
China exports less pork at higher prices [20 November 2008] China has seen a decline in pork exports during the first eight months due mainly to high pig production costs, numerous raisers quitting and the lingering impact from the May earthquake in Sichuan province, a major pork producing region. Between January and August, China exported 50,000 tonnes of pork valued at USD 170 million, down 52.4% and 15.6 respectively from the same period of last year. The average price of pork soared 77% to USD 3,400/tonne.
Thai farm & food exports to move faster than others [20 November 2008] Despite a projected decline in Thai exports over the rest of this year due to the global financial crisis, Thai farm produce and food exports will perform better than other export categories because they are essentials, Kasikorn Research Center reported. The Thai chilled and processed seafood category shows high potential in the US, EU and Japan with an export value growth of 13.5% and Thai chicken products exports grew 78.5% in the first nine months of this year. Thai exports are expected to grow only 5-10% in 2009 due to the global economic recession.
Philippines shrimp output to double in five years [20 November 2008] The Philippine Department of Agriculture hopes to double the country's shrimp production in five years to 100,000 tonnes and regain its status as one of the world's top shrimp exporter. This it expects to do with the large scale culture of the Peneaus vannamei (P. vannamei) or Pacific white shrimp. The Bureau of Fisheries and Aquatic Resources (BFAR) is strictly monitoring the importation of culture of this species to ensure that only good quality and pathogen-free broodstocks are produced in the country. Because P. vannamei matures faster, requires less production inputs and is more resistant to diseases, the government is optimistic that production will shoot up in the next five years.
TUF doubles profit, expects higher sales in 2009 [20 November 2008] Thai Union Frozen Products Plc has more than doubled its profits in the third quarter, thanks to higher selling prices and stronger sales volumes for tuna, pet food, shrimp, sardines and other seafood products. The Q3 earnings was THB 912 million (USD 26.02 million), up 116% year-on-year and 126% from the last quarter. Sales in the July-September period rose 34.3% from the same period last year and 9.8% from the last quarter to THB 18.43 billion (USD 52.59 million). The company expects sales in 2009 to rise 12%.
Jollibee posts USD 10.38m income in Q3 [20 November 2008] Jollibee Foods Corp (JFC) posted a PHP 513 million (USD 10.38 million) income in the first nine months of 2008, up 4.6% from a year ago of PHP 490 million (USD 9.94 million). The company's system-wide sales, which covers sales of company-owned and franchised stores, also increased 11.6% to PHP 14.1 billion (USD 285.99 million) during the same period. Despite these positive showings, however, JFC's net income fell 9.7% from PHP 1.81 (USD 36.71 million) in the first nine months last year to only PHP 1.64 billion (USD 33.26 million) this year, due mainly to the increase in cost of raw materials.
Philippines bats for FMD-free status for Luzon [19 November 2008] The Philippine government is set to submit next month the documents required by the Office Internationale des Epizooties (OIE) for the certification of the island of Luzon as FMD-free. Luzon is the only area in the country that has not been declared as such. Bureau of Animal Industry (BAI) Director Davinio Catbagan said his office will submit the requirements next month, in time for the meeting of the OIE's Scientific Commission within the first two months of next year. Last January, the country had filed for an FMD-free status but was retained on the list of countries still with FMD due to a missing blood test which would have cleared Luzon.
Thai layer farms agree to early hen removal [19 November 2008] Layer farmers in Thailand have agreed on early removal of aging hens in an attempt to lower production cost and boost falling egg prices. Egg production is currently at 25-30 million eggs/day, while consumption is at 25 million eggs/day. The removal measure is expected to boost egg prices by THB 0.10/egg (USD 0.0028).
Malaysia freezes permits for Thai imports [19 November 2008] Malaysia has frozen the issuance of permits for the import of whole chicken and chicken parts from Thailand with immediate effect as a precautionary measure following the recent bird flu case in Sokhotai, Thailand. Malaysia imported 769 tonnes of chicken from Thailand between September and November this year. With the freezing of the permits, checks at entry points along the border would be stepped up to prevent smuggling of the birds into the country.
CPF posts impressive profit on high meat prices [19 November 2008] Chareon Pokphan Foods Plc of Thailand has reported a 151% surge in net profit to THB 2.82 billion (USD 80.61 million) over the first nine months of this year, thanks to an increase in exports of processed meat and higher meat price both in domestic and overseas markets.CEO Adirek Sripratak also said the new bird flu outbreak won’t impact the company's sales and CPF expects to achieve a sales target of THB 150 billion (USD 4.29 billion) in 2008.
Egg price continues to rise in India [19 November 2008 ] Price of eggs in India will continue to rise in the coming months due to growing consumption in winter and resumption in exports. The ex-farm price of eggs in November, at INR 2.24/egg (USD 0.045), was almost double that recorded at the start of the year.
Asia holds key to growing red meat exports [18 November 2008] Asia’s growing economies has helped create an additional two million middle class consumers a month in the world’s developing countries, who represent potential first time consumers of animal protein. Commending Australia’s red meat industry for the resilience it has shown during a period of high input costs and economic uncertainty Meat and Livestock Australia (MLA) Chairman Don Heatley said Australian red meat exporters have captured a good share of the emerging markets, with beef exports to Russia, Indonesia, and the Philippines while sheepmeat exports to China are increasing significantly.He urged the industry to continue to make the most of the opportunities arising as a result of the growing Asian economies, as these markets are the answer to export growth.
Thailand confirms 2nd bird flu case in a month [18 November 2008] A new bird flu case was confirmed in Thailand among native chickens in upper-central province of Uthaithani, revealed Minister for Agriculture and Cooperatives Somsak Prissananantakul. The ministry declared the province an outbreak area and has employed disease control and surveillance measures. This is the second bird flu case in a month and the fourth this year. The first and second ones were in January in the northern provinces of Pichit and Nakhonsawan.
US gets tough with China food products [18 November 2008] The US will set up food inspection offices in China’s cities of Beijing, Guangzhou and Shanghia to test for melamine contamination in food products from China. The offices will be opened following a visit to China by top officers from the US Health and Human Services and Food and Drug Administration next week. The US has issued an import alert for food products from China and will intercept any shipment unless importers can certify that it is either free from dairy and melamine.
Contaminated fish feed in Hong Kong [18 November 2008] Hong Kong food inspectors have found fish feed imported from China contaminated with high levels of melamine. The finding is the latest indication that melamine has seeped into large parts of China's food and feed industry, posing potential health hazards to consumers. The Chinese government has moved aggressively to deal with the scandal but melamine-tainted food and feed products continue to turn up in neighboring regions. The acceptable level in Hong Kong and the United States is 2.5 parts per million. The Hong Kong government web site said that melamine-tainted fish feed would probably not pose serious health problems for people who consumed fish because consumers would not be directly eating the melamine.
RFM posts 6.8% hike in net income [18 November 2008] RFM Corp reported a net income of PHP 158.9 million (USD 3.23 million) for the first nine months of 2008 thanks to higher consolidated sales that grew 8.3% to PHP 5.6 billion (USD 113.86 million) for the period. Sales improvement was seen in all products including canned and chilled meats. RFM President and CEO Jose Concepcion III said that the company is focusing “its efforts on developing quality products that would still be affordable for the mass market,” and has put off raising prices on major items like Swift Meaty corned beef and Swift Mighty Meaty hotdog. It recently upgraded its meat plant in Laguna province, which is now halal-certified.
Taiwan won't ease import restrictions [18 November 2008] Taiwan has no plans to ease import restrictions for US beef despite recent calls by the US to open the Taiwan market fully. Imports are currently restricted to boneless US beef products from cattle under 30 months old. Taiwan banned US beef in early 2004 and again in June 2005 after separate cases of bovine spongiform encephalopathy were confirmed in US-raised cattle.
High value aquaculture products post growth [18 November 2008] Philippine production of high value aquaculture species like tiger prawns and mud crabs posted strong growth during the 2nd quarter of 2008. Figures from the Bureau of Fisheries and Aquatic Resources (BFAR) show that tiger prawn production for the period hit 3,164 tonnes as compared to only 136.93 tonnes from its year ago level. The growth was attributed to an increase in brackishwater fishponds that cultured the species. Other high value species like catfish and carp also posted growth.
US pork gains muscle in Japan [17 November 2008] US pork has achieved a new high in sales in Japan, capturing a 44% market share, up from 33%in 2005 and 38% in 2007. Promoted as "Everyday Delicious — Mainichi Oishi," in Japan by the US Meat Export Federation, it has prompted a new advertising campaign, which thanks Japanese consumers for selecting US pork products.
Cebu meat processor sees 50% sales growth in December [17 November 2008] Cebu-based meat processor Virgina Food Inc (VFI) forecasts a 50% growth in sales in December, as consumers celebrate the holidays. Still, Stanley Go, VFI's VP for sales and marketing said that the company, which produces a variety of processed meat products under the brand names Virginia, Winner, El Rancho and Champion, has no plans to increase its prices until end-2008. VFI has also tied up with Puregold, one of the leading hypermarkets in Metro Manila, which will mean an increase in the volume of production for the company, said Mr Go. VFI continues to eye the manufacturing of affordable products to cater to the low-end market, and in line with this, it is planning to produce food products packed in alternative packaging that is “shelf-stable” and cheaper than tin cans.
Bangkok Ranch shows strong profit in 3rd quarter performance [17 November 2008] Bangkok Ranch Plc, Thailand’s leading duck producer, reported a strong consolidate net profit of THB 140.4 million (USD 4.00 million) for the 3rd quarter of 2008, up 250% or THB 100.3 million (USD 2.86 million) over the same quarter last year. The impressive profit growth was driven by the gross margin recovery due to the increase in average selling price and the realization of the synergies from the acquisition of Netherlands-based duck processor Duck To Holding in August last year.
Poultry raisers urged to be ready for 2010 [17 October 2008] Already facing high costs and intense competition, Philippine poultry producers have been urged to take steps to increase efficiency and prepare for 2010, when the Asean Free Trade Agreement would lower tariffs on many agricultural products, including poultry, among member nations to only 5%. At the 21st Annual Convention of the Philippine Society of Animal Nutritionists, Bounty Agro Ventures Inc President and General Manager Ronald Mascariñas said that the entry of cheaper chicken imports in the country poses a major threat to the local industry, because of competitive neighbors like Thailand. He said the local industry's biggest buyers such as the fast food chains might turn to imports, because of the price factor.
Philippine agriculture grows 4.19% in first 3 quarters [14 November 2008] Philippine agriculture posted a 4.19% growth during the first three quarters of the year, slightly lower than the 4.32% growth in posted the previous year. The growth was led by crops subsector, including rice and corn, which grew by 6.1%. The poultry subsector also posted a hike 4.8% hike in output mainly due to the increase in chicken yields, while the fisheries industry also posted a 3.55% increase in production. Only the livestock sector recorded a 1.97% drop in output, due mainly to the decrease in hog production, which fell 2.7% during the period.
GFPT in JV with Nichirei [14 November 2008] GFPT of Thailand and Nichirei Foods Inc of Japan plan to set up a joint venture company in Thailand called GFPT Nichirei (Thailand) Company Limited to produce and sell processed chicken products and frozen raw chicken to Japan and other countries. This will assist the Company in expanding its markets and increasing its sale volume to Japan and other countries. The newco will set up one chicken processing facility and one further processing facility in Chonburi, Thailand. When operating at its full capacity, the plant is expected to generate an annual production of approximately 75,000 tonnes from the slaughtering house and 18,000 tonnes from the further processing plant.
Banned antibiotics in duck meat [14 November 2008] South Korea's quarantine service recently found chloramphenicol, a banned antibiotic, in cooked duck meat from China. The levels were very low at 1.3 ppb, but since the material should not be in food at all, the entire shipment of 18.3 tonnes will either be sent back or destroyed, the National Veterinary Research and Quarantine Service (NVRQS) said.
Meat stockpiles in US warehouses [14 November 2008] Growing red meat and poultry inventories in US cold stores are a sign that foreign meat buyers are getting squeezed by product costs as the global economic vise tightens. Meat industry sources revealed nearly 22% of pork, more than 18% of broilers and about 7% of all beef production in this country are absorbed by foreign buyers. Demand is generating increased scrutiny because of the sometimes fragile relationship between the US dollar and other currencies. This exchange rate interaction is playing out in the midst of a worldwide financial crisis and is likely reflected in the US government's cold storage data.
Zhongpin's processing capacity increases 114% [13 November 2008] Zhongpin, a leading meat and food processing company in China, has commenced production at its new prepared meat facility in Changge City, Henan Province, increasing its annual production capacity for prepared meat products by 114%. Construction of the new facility started in the first quarter of 2008 with an investment of approximately USD 13.2 million. Its annual prepared meat-production capacity is 28,800 tonnes. Zhongpin expects the new facility to achieve an over 80% utilization rate by the second quarter of 2009.
Taiwan's stance on US beef hampering trade talks [13 November 2008] Taiwan's non-commital stance on totally opening its market to US beef is hampering bilateral trade talks between the two nations. Taiwan currently accepts only boneless US beef from animals younger than 30 months of age owing to concerns over bovine spongiform encephalopathy (BSE). It also does not accept beef variety meats from the US. Despite this,Taiwan is the fourth-largest destination for US beef in terms of value, after Mexico, Canada and Japan. In the January-August 2008 period, Taiwan had imported 19,364 tonnes of US beef worth USD 91.2 million.
USDA expects pork export demand and prices to drop in 2009 [13 November 2008] Softer international demand and a stronger US dollar have led the USDA to reduce export forecasts for pork in both 2008 and 2009. And it expects prices to drop around 5% because of the expected weaker exports. Broiler exports are expected to have increased in 2008 despite weaker sales in the fourth quarter. Broiler export forecasts are unchanged for 2009.
US remains top donor to AI prevntion campaign [13 November 2008] The United States will provide an additional USD 44.4 million in support of FAO's avian influenza control and prevention campaign, FAO announced today. The additional funding from USAID brings to USD 112.8 million the total support from the US. The funds are mainly earmarked for avian influenza control in Afghanistan, Bangladesh, Cambodia, China, Egypt, India, Indonesia, Lao PDR, Myanmar, Nepal, Pakistan, South Asia, West and Central Africa and Vietnam, as well as global efforts. Indonesia, Vietnam and Egypt will be the top beneficiaries.
China's primary processors gain as hog prices fall [12 November 2008] China’s industry experts said the country’s slaughtering sector has gained significantly during the second half of this year due to the continued hog price decline. Hog prices in late October decreased by 30% from May while that of pork saw a nearly 13% decline. Henan Shineway, China’s largest pork processor witnessed a jump of 1.93% to 10% in gross profit for the third quarter over the first half of this year.
Egg sales drop in China [12 November 2008] Egg sales in Beijing are experiencing significant dips following the discovery of melamine in eggs from a farm in Dalian. Sales of eggs at Xinfadi Wholesale Market in Beijing fell 10% in late October in the wake of the latest melamine contamination scare, official sources said. The slump has been blamed on recent reports of eggs contaminated with melamine being exported to Hong Kong.
Alliance Tuna profits up 168% in Q3 [12 November 2008] Philippine tuna exporter Alliance Tuna International Inc posted a net income of USD 1.59 million in the third quarter, 168% higher than the USD 591,500 it reported during the same period in 2007. The company said that cost controls and a concerted marketing plan led to the strong performance. The company's year-to-date earnings is now at USD 2.7 million as third quarter revenues rose to USD 14.6 million. The company said it is on track to surpass its 2007 revenue substantially. Alliance Tuna processes a combined 120 tonnes of yellowfin and skipjack tuna daily. To date, exports to Europe accounted for 80% of export sales, while North America accounted for about 11%.
Details on pet food must be revealed in Japan [12 November 2008] Japan plans to make producers and importers of dog and cat food sold in the country show details of all ingredients, name of the product, expiry date and names and addresses of distributors as well as countries of origins. The measures will take effect in June 2009. The imposition is based on the pet food safety law that was approved in June 2008. The law stipulates that violators will face a one-year jail term and a fine of JPY 1 million (USD 10,106) for individuals and JPY 100 million (USD 1.1) for the firms.
Thai fresh exports still allowed [11 November 2008] Importers of Thai fresh chicken like Malaysia and Hong Kong haven’t yet signaled the suspension or ban of Thai poultry meat after the confirmation of the new bird flu case among some native chickens in Sukhothai province in the north of Thailand, said Apichart Jongsakul, Secretary-General of the Office of Agricultural Economics (OAE). He believes Thailand’s controls and surveillance measures against the virus and immediate culling at the infected farm and nearby areas will ensure the safety of chicken exports.
US corn and soy forecasts eased [11 November 2008] The USDA has eased its 2008 corn production forecast to 12.02 billion bushels, down slightly from the previous estimate of 12.03 billion bushels and 8% below 2007. If realized, this will be the second-highest corn yield on record and production will be the second largest. Soybean production is forecast at 2.92 billion bushels, down slightly from 2.94 billion bushels, but up 9% from last year. If realized, this will be the fourth-largest soybean production on record.
Thailand to host halal conference [11 November 2008] Thailand will host two halal conferences in November. The “Bangkok Global Halal Conference 2008” will be held from November 20 and “World Halal Council” meeting will be from November 21-22. The organiser is expecting 300 participants from 40 countries. The government expects the two events to reflect the country’s potential in inspection and approval of halal certification and extend opportunities for export of halal products.
Corn output to miss target [11 November 2008] Philippine corn production is likely to reach only seven million tonnes, missing the government target of 7.2 million tonnes, which was already lowered from the original target of 7.96 million tonnes. The drop is due to both the high prices of fertilizers and typhoon damage on some corn population. Still the current projection is about 4% higher than 2007's output of 6.7 million tonnes, thanks to the government's timely intervention programs that included planting an additional 75,000 hectares of new corn fields particularly in Mindanao. Still, the government is likely to miss its goal of producing 94% of the demand for corn for 2008.
New bird flu case in Thailand [10 November 2008] A new bird flu outbreak has been found among native chickens in the northern province of Sukhothai, Director-General of the Department of Livestock Development revealed. Lab tests on a chicken carcase from the Thung Saliam district showed the dead fowl was infected with the H5N1 strain. All 17 native chickens at the farm had been culled. This is the third bird flu case this year. The first two were in the northern provinces of Nakhon Sawan and Phichit in January.
Ban on beef imports from Brazil lifted [10 November 2008] The Philippine Department of Agriculture (DA) has lifted the temporary ban on beef imports along with their products from the states of Mato Grosso do Sul and Parana in Brazil six months after the Office Internationale des Epizooties (OIE) restored their FMD-free status. DA Secretary Arthur Yap stressed however that all imports of these products from the two Brazilian states shall be in accordance with the existing rules and regulations of the DA, the Bureau of Animal Industry and the National Meat Inspection Service.
China's grain price to rise on demand [10 November 2008] China's grain price will gain stable rise in future due to limited land resources and expanding demand. China's grain output will keep growing this year to realize output increase in five consecutive years. China's production capacity of corn, wheat and rice can basically meet the domestic demand, while 60% of soybean and soybean oil rely on imports. The government has launched a series of policies to promote agricultural development.
China's oilseed and oil consumption growth likely to slow down [10 November 2008] The nosedive of China's soybean oil and palm oil imports in recent month has created worries over oilseed and oil consumption in the country. Industry experts attributed the market turbulence to the current financial turmoil and the bio-fuel and futures market at Chicago Board of Trade. “The international financial situation will directly influence the market price, noted Yan Bo, Deputy Director General of Policy division of the State Administration of Grain, adding that China's macro economic control policies will have an obvious impact on oil price. Zhang Xiaoping, Chief Representative of the American Soybean Association said that bio-fuel policies in the US would also intensify the volatility of edible oil prices.
Strict poultry import rules for Australia [10 November 2008] Biosecurity Australia (BA) released its final import risk analysis for imported chicken meat in the week ending 31 October 2008. BA stated that any country wanting to import chicken meat into Australia will need to show it is free from nine diseases, including two strains of avian influenza. Alternately, the country would need to heat-treat chicken meat at a set temperatures for specified periods. The Australian Chicken Meat Federation's deputy director Vivien Kite, said it was satisfied with the thoroughness of BA's evaluation.
India resumes corn exports [7 November 2008] India has started exporting corn after its ban on exports was lifted in the middle of October. It shipped a small batch of corn in containers in late October at USD 210-220/tonne to Malaysia. Traders said Indian corn exports will surge in December and beyond as the demand will grow by then. Meanwhile, Korea bought 110,000 tonnes of corn from the US in the last week of October at USD 209.95-218.80/tonne for February delivery.
DA to modernise Manila slaughterhouse [7 November 2008] The Philippine Department of Agriculture [DA] will convert and modernise the controversial Vitas slaughterhouse in Manila into a modern meat processing and export zone. Manila Mayor Alfredo Lim said DA Secretary Arthur Yap has committed to help turn the abattoir, strategically located near the Port of Manila, into a hub for all meat products that are coming out of Manila for other destinations around the country. Last July, the Manila city government forcibly took over the 2.2 hectare Vitas facility after it found that the Alcoreza family violated its lease agreement with the city for the operation of the facility.
Philippines bans poultry imports from Germany [7 November 2008] The Philippine government has imposed a temporary ban on all imports of poultry and poultry products from Germany following the official confirmation by animal health authorities that low pathogenic AI has been detected in Markersdorf, Sachsen in Germany. The ban covers the importation of all “domestic and wild birds and their products including poultry meat, DOCs, eggs, and semen.” In addition to Germany, the Philippines also has temporary bans against poultry imports from Haiti, the United Kingdom, Arkansas in the US, Denmark, South Korea, Saudi Arabia, Poland and Benin to protect human health and the poultry industry in the country.
Feedmillers in Vietnam urged to decrease feed price [7 November 2008] The Vietnam Feed Association has urged its members to lower feed prices as raw material prices have declined. Association Chairman Le Ba Lich said the good harvest of corn and lower frieght costs for imported raw materials has lowered feed production cost. Feedmillers should also cut their feed price to help pig and chicken farmers cover their losses from the feed price hike.
China is world's biggest waterfowl producer [6 November 2008] The Ministry of Agriculture said China has become the largest waterfowl producer in the world. It breeds and produces 75% of the world's duck and geese annually. Ducks are China's most competitive waterfowl product. Exports to the European Union, Southeast Asia and Japan have been increasing year on year. The country feeds 4.3 billion ducks and geese and produces 5.5 million tonnes of duck meat and geese meat a year.
Thai cattle threatened by haemorrhagic septicemia [6 November 2008] The death of 24 buffaloes from “swollen-neck" known as haemorrhagic septicemia disease, in Yanri sub-district of Prachin Buri province in Thailand, has prompted livestock officials to vaccinate cattle in all districts to prevent them from the disease. Haemorrhagic septicemia, which severly impacted the beef business in the US in 1996, has occurred occasionally in Thailand. The most severe outbreak was seven years ago in the southern provinces of Narathiwat and Pattani where a thousand buffaloes died.
New challenge for Vietnam’s catfish exports to the US [6 November 2008] Vietnam's tra and basa fish (pangasius catfish) exports to the US will face a new barrier after the US 2008 Farm Bill is enforced. The bill requires that Vietnamese catfish fillet exports to the US be handled by the US Department of Agriculture (USDA) using stringent food safety and sanitary guidelines similar to meat imports. Currently, the US Food and Drug Administration only inspects the Vietnames catfish fillet imports. The bill is scheduled for recommendations in early 2009 and promulgated 18 months after that.
Melamine tainted feed in Vietnam [6 November 2008] Vietnam has found cattle feeds imported from China through border gates in the north contaminated with melamine and is beefing up border control to screen imports of eggs and other products suspected of containing melamine. The Ministry of Health said products with unclear origins such as illegally imported eggs will not be allowed to be sold, while high risk products must be certified to be free from melamine before they are imported into Vietnam.
India’s corn exports on the rise [5 November 2008] India exported 250,000 tonnes of soybean meal over the last two weeks of October and its exports are likely to clime further as the Indian SBM price is cheaper than that from Argentina and Brazil by USD 50/tonne. Indian SBM was quoted at USD 320/tonne and the latest shipment of 12,000 tonnes to Vietnam was quoted at USD 305/tonne (CIF). Strong demand for SBM in Asia is likely to boost exports from India to a record of 6 million tonnes in the current crop year ending September 2009, on top of the production of about 12 million tonnes.
Owner of tainted chicken feed company detained [5 November 2008] The owner of Mingxing Feed Company in China that supplied the tainted product to Hanwei Group has been detained because of its role in the tainted-egg scandal. Hanwei Group, whose eggs were found last week to contain melamine said the melamine came from chicken feed it used. The Liaoning province animal sanitation department might have known the feed was tainted but had withheld the information.
Thai Commerce Ministry to lower pork prices [5 November 2008] The Department of Internal Trade (DIT) at the Commerce Ministry will call all parties involved in the pig and pork industry for a meeting this week to discuss actual production costs. Its aim is to get operators to lower pork prices as several costs like oil prices and feed ingredients have dropped. DIT’s Director-General Yanyong Phuangrach said retail pork prices in fresh markets are currently at THB 110-115/kg, a rate considered unfair by consumers in the current situation.
Melamine-tainted animal feed destroyed [5 November 2008] As of November 1, Chinese regulators said they had confiscated and destroyed more than 3,600 tonnes of animal feed tainted with melamine, adding that it had closed 238 illegal feed producers in a series of sweeps that involved more than 369,000 government inspectors. The aggressive move came amid growing worries that the Chinese animal feed industry could be contaminated by melamine, endangering the national food supply and posing a health threat to consumers. But government officials said that China's animal feed supply was ‘largely safe’ and only a small number of operators had deliberately added melamine to feed.
Thai egg products confirmed safe [4 November 2008] Thailand's Deputy Public Health Minister Wicharn Meenchainant confirmed that no melamine-tainted eggs were detected after checking among the country's three main egg producers, namely Quality Meat Co Ltd, Rung Arun Farm Herb Co Ltd and Charoen Pokphand Group. The Food And Drug Administration randomly picked seven egg products from these producers and all were found to be safe.
South Korea and Canada resume beef talks [4 November 2008] South Korea and Canada have resumed negotiations that could lead to Canadian beef imports into Korea after a five year ban. Canada initially wanted to export all beef cuts with no restrictions placed on the age of animals that can provide meat.The OIE has given Canada a "controlled risk" classification, that technically allows it to export all beef cuts from cattle regardless of age as long as so-called specified risk materials (SRMs) are removed. South Korea however, may only permit meat from cattle under 30 months old from entering the country.
China's higher wheat price to boost output [4 November 2008] China's National Development and Reform Commission (NDRC) has revealed that it would raise the minimum purchasing price for wheat by as much as 15.3% starting from 2009. This is aimed at boosting rural income and grain output. By hiking grain purchasing prices the NDRC hopes to motivate farmers to increase agricultural production. The government's minimum purchasing price for white wheat nex year will be CNY 1.74/kg (USD 0.25), 13% higher than prices in 2008.
Rabobank targets main players in China [4 November 2008] Netherlands based Rabobank aims to become a leading player that serves the nation's food and agricultural industries in the next five years and beyond. With its rapid growth in China, it is looking to gain the largest market share in the relevant sectors and serve the leading players in food and agricultural businesses.
Thai feed production cost falls [3 November 2008] Animal feed production costs have dropped 5% in Thailand in line with cheaper raw material costs.Yanyong Phuangrach, Director of the Commerce Ministry’s Internal Trade Department, reported that production costs for animal feeds have fallen significantly. Maize prices have dropped to THB 8.07/kg (USD 0.23) in October from THB 9.32 (USD 0.26) in July, while soybean meals are now THB 16.99/kg (USD 0.48) against THB 17.34 (USD 0.49).
Drop in ocean freight rates [3 November 2008] Ocean shipping rates for shipping bulk grain reached the lowest level in 5 years amid a world economic downturn, as fears and uncertainties expressed themselves in the world markets, causing reduced demand for bulk shipments. As of October 24, the cost of shipping grain from the Gulf to Japan was USD 31/ tonne, the lowest since June 2003. The rate from the Pacific North West to Japan was USD 17/tonne, the lowest since November 2002. It is expected that rates will remain low as long as the economic slump persists.
Henan grain output tops the list again [3 November 2008] North China's Henan Province is expected to produce 53.7 billion kg of grain in 2008, rising 1.25 billion kg, or 2.4%, from a year ago. If this happens, Henan Province will see its grain output surpass 50 billion kg for three consecutive years and refresh records for five straight years. Henan Province is traditionally known as a major grain producer in China and has been ranking No. 1 in China by grain output since 2000.
Egg price in India up despite Middle-East ban [3 November 2008] Egg prices in India have been rising at alarming levels on higher local consumption and an increase in the demand-supply gap, desite the prevailing ban by Middle East countries that has dragged down the Indian egg exports in the past nine months. The sudden demand was also attributed to the current cold weather due to continous rain in the country, particularly in southern India. Farmers have reduced egg production by not replacing layer birds after the ban as a result of the bird flu.
Bird flu still a global threat [3 November 2008] International efforts have pushed back the spread of bird flu this year but the risk of a global pandemic is still grate says the United Nations and World Bank. Most countries now have plans to combat a pandemic, but many of the plans are defective, said the report, issued before a bird flu conference in Egypt. The report, fourth in a series since a bird flu scare swept the globe three years ago, followed a new World Bank estimate that a severe flu pandemic could cost USD 3 trillion and result in a nearly 5% drop in world gross domestic product.
Japan suspends beef imports from JBS-Swift plant [31 October 2008] Japan has banned beef imports from a JBS-Swift & Co. plant following the discovery of nine boxes that contained bovine thymus glands lacking proper documentation to verify that the products derived from cattle 20 months of age or younger. JBS-Swift described it as a packing defect while for Japan, it represents a breach of the bilateral trade agreement between the US and Japan.
Meat imports still high in Vietnam [31 October 2008] Raising the import tax for meats into Vietnam is unlikely to slow meat imports into the country as their price is still far cheaper than the domestic meats. Imported chicken wings and legs are at least 20% cheaper because they are listed as by-products. Their import tax therefore, has increased by only 8% from 12% to 20%, while the tax for imported whole chicken has jumped by 25% from 15% to 40%. The tax hike has also not impacted sales of imported premium meat such as Australian or New Zealand beef, which is already expensive and affordable for only high income earners. A kilogram of imported beef, taxed at 17%, up from 2%, fetches VND 175,000/kg (USD 10).
Chicken and egg prices up in India [31 October 2008] Prices of chicken and egg in India have started recovering after the Deepavali festival early in the week. The National Egg Coordination Committee has raised the price of eggs to INR 1.94/egg (USD 0.04), up from INR 1.90 (USD 0.038) in the previous week, while the Broiler Coordination Committee has increased the price of live birds to INR 50/kg (USD 1.01), up 11% from the previous week.
Vietnam and Laos work to prevent AI [31 October 2008] The Agriculture Ministers of Vietnam and Laos amet in Hanoi recently for talks on expanding the collaboration in livestock disease prevention. So far, Vietnam has organised training for Laos livestock officers on bird flu prevention and donated 25,000 doses of bird flu vaccines and semen of improved cow breeds to Laos. Both nations also plan to collaborate in animal quarantine starting in 2009 through exchange of information on poultry and cattle diseases.
GFPT in joint venture with Japan’s Nichirei [30 October 2008] GFPT’s Board of Directors has approved the company’s plan to set up a joint venture with Japan’s Nichirei Foods Inc to produce frozen and processed chicken for export to Japan and others, GFPT said in a filing to the Stock Exchange of Thailand Tuesday. The joint venture agreement is expected to be signed in November and the new company would be able to commercially operate in July 2011.
New Hope prepares for fast expansion [30 October 2008] China's New Hope Group, the parent of New Hope Agribusiness Co, China's largest feed producer, plans to leverage Beijing's new pro-agriculture policies to rapidly expand its pork, chicken and milk production. It will invest more than CNY 1 billion (USD 146 million) in its agriculture business in 2008, and will increase that next year. The investment is expected to double the company's revenues over the next five years.
Thai government to buy corn to shore up prices [30 October 2008] The Thai Cabinet agreed Tuesday to introduce intervention programs to shore up prices of corn and cassava in domestic markets. Under the programs, the government targets to buy 5 million tonnes of cassava out of 27 million tonnes of the total forecast production and 500,000 tonnes of corn out of the total estimated production of 1.5 million tonnes. The purchases will start on November 1.
Halal food served at Hong Kong hospital [30 October 2008] A few public hospitals in Hong Kong have started serving halal meals (prepared according to strict Islamic guidelines). The initiative was launched at four hospitals in Hong Kong’s New Territories and the scheme could be launched territory-wide. The recipes, cooking process and kitchen were approved and certified by a governing body of local Islamic affairs.
USDA lowers corn and soybean acreage, increases price forecast [29 October 2008] The US has planted 1.2% fewer acres of corn and 1.4% fewer acres of soybeans in 2008 than previously reported by the US Department of Agriculture. Consequently, USDA has raised its season-average farm price range by 5 cents on each end of the range for corn to USD 4.25 - 5.25 per bushel and the season-average soybean price range by 10 cents to USD 9.70 - 11.20 per bushel.
Melamine in eggs from China [29 October 2008] Hong Kong has reported finding melamine for the first time in eggs imported from China. A safety inspector from Dalian city's food and drug department said tests were carried out on eggs for melamine in the wake of the recent scandal. Hong Kong's Centre for Food Safety said it would test samples of all eggs imported from China starting Monday after melamine was found in a box of eggs from Dalian in northern China. Tests showed the eggs contained almost double the legal limit of the chemical, which is believed to have been in feed given to the chickens.
Record year for US pork exports [29 October 2008] The first eight months of export statistics for the year showed the US pork industry celebrating a 17th consecutive record year for exports with Japan tagged as the 'Most Valuable Partner' in trade. Exports in the first eight months exceeded 3 billion lbs of pork and pork variety meat valued at more than USD 3.2 billion. This represents a 5.2% increase in volume and a 1.8% increase in value of total pork exports compared to the entire 2007 calendar year, a 71% jump in volume and a 64% increase in value when compared to the first eight months of 2007.
Bunge acquires 50% stake in Vietnamese port operator [29 October 2008] Bunge Asia, the Asian operating arm of global food and commodity trader Bunge Limited from the US, has acquired a 50% stake in the owner/operator of Phu My Port, Vietnam’s only commercial dry bulk port capable of receiving large, Panamax-class ships. The transaction involves the acquisition of SSI Logistics, the French subsidiary of France's state-owned SSI/EMC Group. SSI Logistics owns a 50% stake in Baria Serece, the owner/operator of Phu My Port. The port is located on the Thi Vai River, approximately 70 km from Ho Chi Minh City and is close to the site of commercial feedmills in South Vietnam.
Unilever India records better earnings [29 October 2008] India's Hindustan Unilever posted a 34% rise in net income for the third quarter driven by sales that rose 20% to INR 40.28 billion from INR 33.65billion in the same period last year. Pre-tax profit rose to INR6.7bn from INR5.16bn in 2007. The company's foods business grew by 17.5%, with a 'strong performance' across beverages, processed foods and ice cream.
India expects higher soybean output [28 October 2008] India is expected to produce 10 - 10.8 million tonne of soybean in 2008, as against 9.4 million tonne achieved during 2007, an increase of more than 14%. Due to high feed cost in the last few months, the cost of production of both eggs and chicken had increased and poultry farmers were suffering losses on the sales of chicken and eggs.However, the situation is expected to improve with plunging raw material prices.
BKAP invests to grow outlets in Taiwan [28 October 2008] Burger King Asiapac Pte Ltd (BKAP), the wholly-owned subsidiary of Burger King Corp and China's DaChan Great Wall Group, announced an agreement for BKAP to take an equity position in Home Chain Foods Ltd, a subsidiary of DaChan. Home Chain currently operates 33 Burger King restaurants in Taiwan. BKAP's investment will be used to speed up the brand’s restaurant growth within the Taiwan market.
Traders of 'hot meat' warned [28 October 2008] The Quezon City government has intensified its efforts against the selling of 'hot' or 'double-dead' meat in the cities wet markets following reports that the city's Market Development Administration Department has confiscated more than five tonnes of double-dead pork meat in 10 separate raids between the Cloverleaf and MC markets in the northern part of the city. Mayor Feliciano Belmonte Jr warned scrupulous traders that his government will prosecute those caught engaging in this illegal activity. Earlier this month, authorities caught 230 kg of double-dead pork meat being transported with live hogs in nearby Pasay City.
UN urges overhaul of China's food safety system [28 October 2008] China must revamp its food safety system so that it is less disjointed and consumer confidence is restored, claimed United Nations officials. The UN issued a report calling for a unified regulatory agency to deal with food safety in China rather than the manifold government agencies that currently deal with the area. The document was released as the Standing Committee of the National People's Congress (NPC) reviews the draft law on food safety and it also follows China's recent melamine scandal.
Spar opens new store in India [24 October 2008] Spar, an international food retail chain from the Netherlands, has opened its third retail store in India. Located in Andhra Pradesh, the store has a space of over 20,000 sq ft to shelve a wide range of foods from fruits and vegetables, bakery, dairy and take away foods, meat, poultry and fish, in addition to other categories. Spar has a license agreement with Max Hypermarkets, an Indian subsidiary of the Landmark Group from the UAE, to operate its stores in India.
Europe goes for cheaper cuts [24 October 2008] The focus at SIAL, the international food fair in Paris that ended yesterday, was on cheaper cuts and on selling offals. The show which usually displays the best sirloins, fillets and roasts turned instead to controlling costs and credit amidst the current financial turmoil.
White shrimp boom in the Mekong Delta [24 October 2008] Pacific white shrimp (P. vannamei) farming is booming in Vietnam’s Mekong Delta as farmers see a higher return from raising the species. In Bac Lieu province alone, white shrimp farming has expanded to 1500ha since the government allowed the farming of the species early in the year. The provincial administration plans to develop white shrimp farming on 11,000ha by 2010 with an investment of about USD 357 million for buying brood stock, establishment of hatcheries and setting up of irrigation networks.
Pork prices may go up as holiday nears [24 October 2008] Price of pork could go up by 20% as the Christmas holiday nears, however processed and canned meat products should be stable. Trade and Industry Secretary Zenaida Maglaya said that should the price of pork go up, it would only go back to PHP 170-180 (USD 3.53-3.74)/kg, adding that there will be no supply problem so that any price increases would be caused by an increase in demand. She also noted that there is adequate supply of processed and canned meat so there should be no price increases, although prices of Christmas ham, a staple on Filipino tables for Christmas, may increase by less than 10%.
Chennai to build a modern abattoir [23 October 2008] India’s southern city of Chennai will build a modern abattoir that will slaughter buffalos and goats, and process them into fresh, chilled meats exclusively for registered meat shops. The construction is expected to start by the end of the year and it will take about 20 months to complete. It will be transferred to a selected company to operate under a Build Operate and Transfer contract. It will have two separate lines, one with a capacity of 60 heads/hour for large animals and the other with a capacity of 250 heads for small animals.
Australia expects 23% gain in beef sales to Indonesia [23 October 2008] Australia’s beef exports to Indonesia is likely to rise 23% this year and a further 12% in 2009 driven by rising population and incomes. By June 30, shipments of live cattle to the Republic rose to 547,000 head from 452,000 head a year ago, while exports of boxed beef rose 65%. Indonesia’s order book for Australian beef stood at USD 305 million on June 30. The country’s live cattle trade to Indonesia was worth USD 236 million during 2007-08, up from USD 210 million the year before, while boxed beef exports were worth USD 69 million, up from USD 51 million in 2006-07.
Fresh bird flu outbreak in Bangladesh worries industry [23 October 2008] A fresh bird flu outbreak in Bangladesh has prompted major poultry breeders to urge the government to adopt vaccination to control the disease and to reschedule loans for poultry farmers. Bangladesh confirmed that the bird flu resurfaced at a chicken farm in the northern district of Naogaon in late September. The outbreak has sparked fear among producers that more small-scale farmers would be wiped out if their request is not heeded.
Farm growth to go down in 3rd quarter [23 October 2008] Philippine Agriculture Secretary Arthur Yap predicts that farm output during the 3rd quarter of the year would be less than 5% because of higher costs, particularly of fertilizers and fuel. This means a lowering in productivity in both the crops and fisheries sector. The high cost of fertilizers has been blamed for the decision of some corn farmers to shift to other higher value crops. Meanwhile, the fisheries sector has been suffering from high cost of fuel, which accounts for 60-70% of fishing costs. Also the hog industry, which leads the livestock sector, is still recovering from the losses it suffered from diseases last year.
New record for China grain output [23 October 2008] China's grain output is expected to hit a record high this year, the fifth year in a row. The company's summer grain output rose 2.6% year on year to 120.41 million tonnes, and the acreage of autumn grain is estimated to have increased.
Thai authorities identify new AI virus [22 October 2008] An avian virus that is new to Thailand has been found in chicken farms in the central, western and eastern regions, raising serious concerns about its impact on the country's poultry industry. The discovery of the virus, Avian Adenovirus Group 1, was revealed on Friday by a team of veterinarians from a university's veterinary medicine's diagnostic unit in Nakhon Pathom province.The unit maintained that the virus, which causes inclusion body hepatitis in poultry, could not be transmitted to humans.
Canned meat products cleared of melamine [22 October 2008] The Philippine Bureau of Food and Drugs cleared 18 China and locally made canned meat products of melamine contamination. Similarly, the the National Meat Inspection Services (NMIS) has found five popular brands of China-made canned processed meat products to be negative of melamine. Among those cleared by the NMIS included MaLing Pork Luncheon Meat and MaLing Vienna Sausage, both manufactured by Shanghai Ma Ling Food Co Ltd; Gulong Pork Luncheon Meat of Xiamen Gulong Canned Food Co Ltd; Narcissus Pork Luncheon Meat, China Processed Food Company Ltd; and Great Wall Ham, North International Holding Tianjin Foodstuffs Import & Export Co Ltd.
Hope with softer grain prices [22 October 2008] India's poultry industry is breathing a little easier with softer feed prices. With the anticipation of a bumper soybean crop, the industry is hoping for better rates as soymeal cools down in the domestic market. The rate of soybean meal has come down to INR 13,000 per tonne (USD 265) from INR 16,000 per tonne (USD 326) four months ago. Corn prices also have dropped from INR 10,500 per tonne (USD 214) to about INR 8,000 per tonne (USD 163) at present.
Prices to remain stable for the holidays [22 October 2008] Filipino consumers have been assured that prices of key commodities, including processed meat products, are likely to remain stable through the Christmas holidays. Trade and Industry Secretary Peter Favila met with representatives of different industries and retailers, who assured him that there will be no price increases for the remainder of the year except for canned sardines, which may increase because the cold season results in lower catch and the high cost of ingredients. Meanwhile, Philippine Association of Meat Processors Inc Executive Director Francisco Buencamino said that prices of canned meats have remained stable, but there would be a 4-7% adjustment in distribution cost during the holiday season as big trucks are not allowed to ply the busy streets of the metropolis between now and December.
Hong Kong raises AI alarm [21 October 2008] A house crow found dead in Hong Kong last week has tested positive for the highly pathogenic H5N1 bird flu virus. The appearance of the virus in Hong Kong, more active in the cooler months between October and March, is closely watched as it may indicate the level of activity of the virus in mainland China, which has a poultry population of 13 billion. The virus is endemic in poultry in parts of Asia.
Australian beef does well in Indonesia [21 October 2008] Strong growth in Australian exports of live cattle and beef to Indonesia is a boon for Australia's livestock industry. Meat & Livestock Australia Ltd Chairman Don Heatley said Indonesia was a valuable market for Australian cattle and beef, with exports expected to continue to grow next year. Indonesia was the fastest growing market for Australian beef in Southeast Asia between 2006-2008, thanks to its large population and a strong income growth and demand. Beef exports to this market are forecast to expand a further 23% on year in the current fiscal year and another 12% in the next.
Ocean freight rates continue to decline [21 October 2008] The spread between ocean rates for shipping grains from the Gulf to Japan and Pacific Northwest (PNW) to Japan narrowed as ocean rates fell to levels not seen since the 3rd quarter of 2006. As of October 10, the spread was USD 18 per tonne,74% below its record high of USD 69 on May 16. The Gulf-to-Japan rate was USD 48 per tonne,down 64% from its record high of USD 135 on June 6. The continued decline in the ocean rates can be attributed to reduced demand for bulk shipping.
Philippine government allots USD 10.41m for meat facilities [20 October 2008] The Philippine Department of Agriculture (DA) has set aside PHP 500 million (USD 10.41 million) for the construction of integrated meat plants that will contain various facilities for the production of safe meat including those from slaughtering, cutting, chilling and storing. DA Secretary Arthur Yap said having such facilities in key production areas “is the most viable solution to halt the rising prices of meat.” The facilities will be established as early as December 2008 and completed by the second half 2009. The National Agribusiness Corporation, has also been instructed to build 50 corn-dying facilities to supply the raw materials needed by the integrated facilities.
Saudi Arabia lifts ban on raw Thai chicken [20 October 2008] Saudi Arabia has decided to lift its previously imposed ban on imports of table eggs, chicken meat and fresh, chilled and frozen products from Thailand as it is satisfied with Thailand's bird-fu prevention and the virus-free status at the moment. This will benefit the Thai poultry industry as it will pave the way for more export opportunities.
Hog farmers hail move to lower pork retail prices [20 October 2008] Philippine hog farmers have hailed a move to lower the retail prices of pork in Metro Manila. A recent meeting with industry stakeholders concluded with a reference price of PHP 140-150 (USD 2.92-3.13)/kg. National Federation of Hog Farmers Inc President Albert Lim Jr said the reference price is just where retail prices in wet markets should be since farm prices currently average about PHP 82 (USD 1.71)/kg. He said the retail prices of pork has discouraged consumers from buying the meat, and that hog farmers are hoping that with the lowering of retail prices, consumer demand for pork will once again pick up.
Thai corn farmers rally for low prices [20 October 2008] More than 2,000 corn farmers in Thailand’s northern province of Pitsanulok rallied to pressure the government to come up with measures to shore up dwindling corn prices. Farmers want the government to introduce an intervention program to buy corn from farmers at THB 15/kg (USD 0.44) as corn prices are falling amid abundant supply. Political problems at home have delayed the government's decision on the price protection measure.
Global food industry commentator warns of extended period of volatility [18 October 2008] Food production industries can expect an extended period – three to five years – of market volatility warned Professor David Hughes at the Asian Broiler Industry CEO Summit in Singapore yesterday. He told delegates to the DSM Nutritional Products sponsored conference that the chicken meat industry was in a good competitive position but management would have to focus on serious risk management. A full report will follow in the next issue of Asian Poultry Magazine.
Financial crisis could worsen food situation [17 October 2008] The UN Food and Agriculture Organisation has urged governments to avoid reducing aid to developing countries’ agriculture and introducing protectionist trade measures in response to the unfolding global financial crisis. FAO Director-General Jacques Diouf cautioned that steps like these could increase the risk of another food crisis occurring next year despite the record 2008 cereal harvest. Grain production this year is forecast to increase 4.9% to a record 2.232 billion tonnes. However some 36 countries around the world are still in need of external assistance as a result of crop failures.
Hong Kong suspends German poultry imports [17 October 2008] Hong Kong has suspended poultry products imports from Germany following the recent outbreak of bird flu there, announced Hong Kong's Center for Food Safety. "The decision was taken following confirmation of a case involving the highly pathogenic avian influenza H5N1 on a poultry farm in the country," a spokesman said, adding that the Center was seeking further information about the case from the relevant authorities. Hong Kong has imported about 1,400 tonnes of frozen poultry meat and offal from Germany since April.
Farmers call for removal of import tax on sbm [17 October 2008] Pig raisers in Thailand have urged the government again to remove the 4% import duty on soybean meal to prevent rising costs. President of the Swine Raisers Association of Thailand, Surachai Sutthitham said the pig raisers haven’t received an answer from the government regarding its request for the removal of the tax. Soybean meal prices were around THB 18.50-19/kg (USD 0.54-USD 0.55), much higher than the THB 11-12/kg (0.32-0.35) level two years ago.
Indonesia feed firms benefit from crisis [17 October 2008] Indonesian feed producers stand to benefit from the lower feed ingredient prices resulting from the gobal financial crisis. The price of corn has dipped 52% since the end of JUne while sbm has tumbled 45% from its peak in early July.
Korean customs clears 20,000 tonnes of US beef [17 October 2008] Customs authorities in South Korea have cleared almost 20,000 tonnes of US beef since June, when South Korea resumed inspections. Of the total, 12,300 tonnes were new arrivals. Seoul recently approved another 18 US beef plants to its list of eligible exporters, bringing the total to 48.
CP considers expansion in South Africa [16 October 2008] Thailand's Charoen Pokphand Group (CP), is preparing to invest in shrimp farming projects in South Africa. At present the company exports a lot of shrimp to South Africa from its India’s operation. Investment in its own project in South Africa is in the pipeline said Vasana Mututanont, Director of the Board of Investment (BoI) of Thailand. Mrs Vasana said CP has four shrimp farms in India currently. CP has allocated approximately THB 4 - 5 billion (USD 116.5 –145.6 million) of its annual investment budget for foreign operations.
Grains terminal projects in Zamboanga, Batangas [16 October 2008] Two new grains terminals will be set up, one each in Batangas in Luzon and Zamboanga del Norte in Mindanao. The two facilities, which will link the movement of grains supply within the Philippines, will be constructed by Zamboanga Development and Management Corp (ZDMC) for a total of PHP 1.03 billion (USD 21.83 million). The Bureau of Investments, which approved the projects and gave incentives, said these will address the logistical problems faced by the Philippine grains industry by providing bulk handling operations in Mindanao and between Mindanao and Luzon. The Batangas Grains Terminal Project, which ZDMC is developing with the Philippine National Oil Corp-Exploration Corp, is expected to start commercial operations in April 2010.
QAF profits down [16 October 2008] Singapore-based food and meat company QAF Ltd has posted a profit warning for the quarter ending 30 September due to rising production costs and a slump in selling prices caused by the global financial crisis. The company said it expects the pre-tax loss for Q3 to be 'substantially higher' than the SGD 1.5 million deficit it posted at the end of June 2008. QAF's meat and animal feed operations in Australia incurred most losses due to high production costs.
2009 not so bright for Philippine hog industry [16 October 2008] The Philippine hog industry may find 2009 a bit bleaker as farm prices are expected to decrease by 4-5% due to improved supply and weak consumer spending. Dr Dante Palabrica, head of Universal Robina Corp's Piggery Business Unit, said that while farm prices went to as high as PHP 115 (USD 2.44)/kg in the early part of 2008, this has now dropped to PHP 85 (USD 1.80)/kg. Although prices could pick up again producers should not expect to attain the high prices it enjoyed in the first part of 2008. He said that while production will improve by about 18-20% in 2009,cost could go up to about PHP 90 (USD 1.91)/kg.
Poultry raisers urged to be ready for 2010 [15 October 2008] Already facing high costs and intense competition, Philippine poultry producers were urged take steps to increase efficiency and prepare for 2010, when the Asean Free Trade Agreement would lower tariffs on many agricultural products, including poultry. At the 21st Annual Convention of the Philippine Society of Animal Nutritionists, Bounty Agro Ventures Inc President and General Manager Ronald Mascariñas said that the entry of cheaper chicken imports in the country poses a major threat to the local industry, which is at the losing end against its more competitive neighbors like Thailand. He pointed out that there is a very big possibility that the local industry's biggest buyers such as the fast food chains might turn to imports, and that the survival of the local industry depends on how it will be able to improve efficiencies and compete.
US economic crisis slows down Thai shrimp exports [15 October 2008] Thai chilled and frozen shrimp exports has fallen by 4.40% due to shrinking consumption in the US, a major market for the product, following the sluggish economy there, according to Thailand’s Office of Agricultural Economics (OAE). Thai exporters have been urged to find new potential markets in Asia, Europe and the Middle East.
Chinese farmers' income to be doubled [15 October 2008] China has set a goal of doubling per capita disposable income of rural residents by 2020 from the 2008 level, according to an announcement at the 3rd Plenary Session of the 17th Communist Party of China (CPC) Central Committee, which focused on rural reform and development. Per capita rural disposable income in 2007 was USD 605, a year-on-year gain of 9.5% in real terms. A rise of at least 6% is expected this year, according to the government annual report.
Betagro Group opens new SPF pig farm worth THB 190 million [14 October 2008] Betagro Group has opened a new pig breeding farm worth THB 190 million (USD 5.55 million) using Specific Pathogen Free(SPF) technology in response to growing demand for hygienic pork products in both local and international markets, especially Japan. The new farm located in the Central province of Lopburi is considered the world’s largest SPF breeder farms with 4,200 sows, producing 100,000 SPF pigs per year. With SPF technique, pigs in the farm are completely free of Productive and Respiratory Syndrome (PRRS).
Tyson to expand in India and other emerging markets [14 October 2008] The growing economy in India and other emerging markets such as China and Brazil has prompted US meat processing giant Tyson Foods to expand in these countries where consumption of hygienically processed chicken and packaged food is on the rise. Chairman John Tyson said Tyson Foods will invest USD 2-4 million in its joint venture in India, Godrej Tyson Foods, to develop and expand the market for packaged chicken products in the country. He said Tyson Foods plans to spend USD 1.5 billion to invest through acquisitions in the US and emerging markets such as China and Brazil over the next six months.
Cargill acquires Indonesian feedmill [14 October 2008] Cargill Animal Nutrition Indonesia has finalized a purchase agreement with PT Berlian Unggas Sakti to buy its animal feed mill in Medan, Indonesia. The mill has a capacity of 160,000 tonnes/annum and Cargill will invest in a new extruder to cater to the floating fish feed market in Sumatera Island.
S. Korea and Cananda to resume beef talks [14 October 2008] South Korea's Ministry of Food, Agriculture, Forestry and Fisheries will restart talks with Canada on beef imports in early November in Seoul. Earlier talks about a year ago resulted in a deadlock.A ministry official said they expect Canada to accept a proposal to allow the import of bone-in beef less than 30 months old, with certain specified risk materials excluded.
US groups woo Chinese pork buyers [13 October 2008] Faced with lower exports to China after a strong first half, US meat industry groups are trying to woo Chinese buyers covering mainly research and processing facilities. China's imports dropped followjng successful efforts to bolster domestic pork production that resulted in significant herd expansion. Large hog inventories pushed live hog prices in China down 15% in September alone, while piglet prices have dropped nearly 40% since early spring.
China announces new melamine safety standard [13 October 2008] Melamine limits considered safe have been set by Chinese authorities at one part per million (ppm) for infant formula and 2.5 ppm for liquid milk. Wang Xuening, a Health Ministry official, said melamine cannot be used as an ingredient or additive in food products. Small amounts of melamine can leak from the environment and packaging into food products, but adding it deliberately was forbidden.
Retailers balk at reference price for pork [13 October 2008] Retailers in Metro Manila are not open to following a reference price of PHP 140-150/kg (USD 2.96-3.17) for pork even after the Philippine Department of Agriculture (DA) announced an agreement among stakeholders of the pork industry to do so. The DA said an agreement was reached last Monday to bring down the retail price of pork in order to help push demand and increase sales, as well as keep the discrepancy between live prices and retail prices closer. Farm price of hogs are currently between PHP 80-85 (USD 1.69-1.80)/kg while retail prices in many of Metro Manila's wet markets have hovered between PHP 160-170 (USD 3.38-3.59). Retailers say that the reference price is unacceptable because it will not allow them enough profit margin.
OIE conference to address standards [13 October 2008] The 2nd OIE Global Conference on Animal Welfare will take place from October 20-22 in Cairo, Egypt. It will be aimed at supporting the worldwide implementation of OIE standards for sea and land transport of livestock, livestock slaughter for human consumption and killing for disease control. The Conference also aims to raise the profile of animal welfare and to encourage veterinarians and Veterinary Services worldwide to take greater responsibility for animal welfare.
Jollibee to expand in Vietnam [10 October 2008] Leading Philippine fast food chain Jollibee Food Corp has set its eye on expanding in Vietnam to capture a bigger market share in the region. Jollibee Vietnam Co Ltd Country Head Jojo Subido said that in addition to the 10 stores already existing in Ho Chi Minh City, 10 more stores are planned outside the city. The company's 11th outlet, its first outside Ho Chi Minh, is set to open this month at Bien Hoa City, Dong Nai province.
Philippines finds melamine in Chinese canned meats [10 October 2008] A privately-owned laboratory in the Philippines has found eight products from China, including a luncheaon meat and a corned beef, contaminated with industrial chemical melamine. Qualibet Testing Centre did not reveal the amount of melamine found in these products, and they also did not release the products' brand names. The Philippine Department of Health and the Bureau of Food and Drugs have asked for the lab's results so these can be verified. Meanwhile, National Meat Inspection Service Executive Director Jane Bacayo said field inspectors from his agency have started collecting canned goods for testing for possible contaminants.
DA, industry players agree on pork price cut [10 October 2008] Key players in the hog industry, including raisers, processors, wholesalers and retailers have agreed to cut the price of prime pork cuts in Metro Manila by adopting a 'reference price' range of PHP 140-150 (USD 2.94-3.15)/kg. As a result, retail prices of pork meat in some wet markets have gone down to as low as PHP 135 (USD 2.84)/kg from PHP 160-170 (USD 3.36-3.57) last week. The Department of Agriculture will conduct regular meetings with the hog industry to review the reference price accord and to take up other concerns that are meant to ensure a steady supply at reasonable prices.
Bird flu hits central Vietnam [10 October 2008] A new bird flu outbreak has been deteced in ducks in Vietnam in the central province of Nghe An. This represents the third outbreak of bird flu in Vietnam since September 1, after the previous two outbreaks in the Mekong Delta. Authorities said about 300 ducks at the affected farm were destroyed.
Hong Kong lifts ban on Thai fresh meat [9 October 2008] Thailand is ready to resume exports of fresh poultry meat to Hong Kong after five years of suspension. The move followed a meeting between Thailand’s Department of Livestock Development and Hong Kong’s Food and Environmental Hygiene Department (FEHD) officials. Hong Kong agreed to lift the ban on Thai chicken and duck meat starting September 25 and will randomly inspect the first three containers of the Thai chicken and duck products. Exports of cooked poultry products from Thailand to Hong Kong from January to August this year totaled 2.37 million kg valued at THB 254.65 million (USD 7.33 million).
Vietnam increases taxes on meat imports [9 October 2008] Vietnam has increased taxes on meat imports by threefold from next week to protect the domestic livestock industry. The import tax for fresh and frozen chicken meat will be increased to 40% from 20%, while pork imports will carry a 27% tax rate. Between January and September 2008, poultry meat imports into Vietnam jumped 250% to 103,401 tonnes of poultry meat. Red meat and pig offal imports during this period increased 20 times to 9000 tonnes.
TUF buys into Indian shrimp feed producer [9 October 2008] Thai Union Frozen Products Plc (TUF) is acquiring a 14.99% stake in Avanti Feeds Limited (AFL), India's second largest shrimp feed manufacturer. The investment worth approximately THB 40 million (USD 1.16 million) was helped by the long-term ties between TUF's subsidiary Thai Union Feedmill (TFM) and Avanti. TFM specialises in producing and distributing feed products for shrimp and fish in Thailand.
Japan steps up inspection of feed from China [9 October 2008] Japan has stepped up inspection of Chinese-made animal feed and pet food following the global food scare with melamine tainted milk. The country's farm cooperatives and other industrial groups have been instructed to tighten inspection of feed and pet food imported from China the Agriculture Ministry said. The order was issued after Beijing revealed that several Chinese feed makers allegedly mixed melamine into their products used for dairy cows.
Corn growers urge lower fertilizer prices [9 October 2008] Philippine corn growers are urging the government to take steps to lower the cost of fertilizer after it failed to raise the support price for yellow corn. The support price is currently pegged at PHP 11.50 (USD 0.24)/kg. Philmaize is educating corn farmers in increasing efficiencies and maximizing productivity. The group continues to encourage corn farmers to plant the crop despite the current difficulties to service the needs of the hog and poultry industry, which rely on locally grown yellow corn because of its high price in the world market. Meanwhile CornWord Inc head Benito Domingo said importing corn is not logical at the moment because its cost is PHP 20 (USD 0.42)/kg.
Carrefour to source shrimp directly from farmers [08 October 2008] Carrefour plans to buy shrimp directly from farmers to supply the chain's outlets in Thailand and abroad. The French company will send a team to inspect and verify shrimp products and farming practices of Kaset Somboon Farm Co to ensure the shrimp meet its standards and are free from chemical residue. Food service operators, supermarkets and hypermarkets were now opting to deal with farmers directly to obtain freshness, get reasonable prices, and improve their ability to control quality, said Vanich Sowanapreecha, the owner of Kaset Somboon Farm Co which operates more than 20 shrimp ponds in Chachoengsao and Suphan Buri provinces.
Philippine government offers price support for corn [08 October 2008] The Philippine Department of Agriculture (DA) has raised the support price for yellow corn for the second time this year to help boost output. From PHP 10 (USD 0.21)/kg, the support price has been upped to PHP 11.50 (USD 0.24)/kg. Farmers had asked for PHP 13 (USD 0.27)/kg citing high cost of fertilizers that have led to a surge in production costs. DA Assistant Secretary Dennis Araullo said that the increase in support price should help boost production, hinting that more increases might be in store to respond to the calls of the corn farmers.
AgFeed adds on investment in hog production [8 October 2008] AgFeed Industries Inc will push ahead with expansion in China amid low pork prices. An official with AgFeed estimated that the current fall in pork prices is temporary. Feed prices are expected to drop due to bumper harvests of corn and soybean this year. The company recently announced that it has acquired two large commercial hog farms in south China, which are due to be completed in October. By then, the company will own a total of 30 commercial hog farms in the country.
Ceiling price for pork urged [8 October 2008] Philippine hog farmers are urging the government to impose a ceiling on pork prices in the wet markets because the trader-driven prices are wreaking havoc on the industry and dampening pork consumption. Currently pork prices have been hovering at PHP 170-180 (USD 3.65-3.86)/kg and even higher in the supermarkets, even though farm prices of live hogs is now at around PHP 85 (USD 1.81)/kg and lower. The ceiling price suggested is PHP 140-150 (USD 3.00-3.22)/kg in the wet markets.
Malaysia approves 6 Thai poultry plants [7 October 2008] Malaysia has approved six poultry plants in Thailand after inspecting 10 last August. The six plants have been certified under Malaysia's halal food standard. They comprise five poultry slaughtering plants (chicken and ducks) and one processing plant. “More importantly, Malaysian importers have come to Thailand to conclude buying agreements for frozen raw chicken and some cooked products,” said Director-General of Thailand’s Department of Livestock Development Sakchai Sriboonsue. Thailand is expected to export as much as 10,000 tonnes of chicken to Malaysia.
China tightens control on export of livestock genetics [7 October 2008] China has moved to tighten control over exports of genetic resources of livestock and poultry with a new ordinance that took effect on October 1. The move is to 'protect and make proper use of the genetic resources of livestock and poultry, and boost the sustainable, healthy development of animal husbandry. China owns 576 breeds of livestock and poultry, about a sixth of the world's total. In the past two decades, at least 10 varieties have disappeared, with more than 20 on the verge of extinction and over 100 breeds seeing a sharp drop in number.
DA denies ban on meat imports [7 October 2008] The Philippine Department of Agriculture (DA) has denied that a ban on pork imports exists. Bureau of Animal Industry (BAI) Director Davinio Catbagan said that DA Secretary Arthur Yap only asked the DA's regulatory agencies to review the issuance of import permits for agricultural products as part of the Department’s intensified efforts to curb smuggling. Earlier, the Philippine Association of Meat Processors Inc (PAMPI) sent a letter to the Secretary urging the scrapping of an import ban. The BAI has also been instructed to establish linkages between hog farmers and meat processors to discuss their issues including supply concerns and pricing of pork items.
India to hit record soy crop in 2008 [7 October 2008] India expects its soybean harvest in 2008 to increase 15% to a record of 108.176 million tonnes. The record harvest is due to acreage increase, improvement in yield and better crop protection. The soybean acreage this year has increased by 8.76% to 9.62 million hectares due to increasing demand for soybean and edible oil. The yield is likely to improve by 5% to 1124kg/ha as farmers better protected their crops from pests that hit planting areas in Maharashtra last August.
China may cut imports of pig offal [6 October 2008] A Chinese industry expert said China should curb imports of pig offals to avoid market surplus. Yao Minpu, Vice Chairman of China Animal Agriculture Association (CAAA) said China's meat imports will rise this year, although the country will remain a net exporter of pork, adding that cheap pig offals are not welcome in the country. China currently imports live hogs and pig offals from the US, Canada, Denmark, Ireland and France, and will shortly reopen its doors to Germany.
Meat processors urge scrapping of import ban [6 October 2008] Philippine meat processors have asked the government to scrap the ban on pork imports as this may lead to supply problems during the coming Christmas season. There were reports earlier that Department of Agriculture (DA) Secretary'Arthur Yap ordered the suspension of the issuance of veterinary quarantine clearance (VCQ) for pork import applications, amid pressures from an influential group of hog raisers who said pork imports are flooding the wet markets despite a lack in demand. The group said the suspension of VCQ for pork imports has affected the delivery of manufacturing-grade parts needed by the meat processing industry, including pork bellies, fats, offals, and skin/rind.
Philippines to export corn to Korea [6 October 2008] The Philippines is ready to become a corn exporter for the first time as local corn farmers entered into a supply agreement for 300,000 tonnes with Korea Overseas Grains Investment Co. Philippine Maize Federation Inc (Philmaize) President Roger Navarro said that while negotiations have been ongoing and both parties are still negotiating the price of the shipment, which is tentatively set at PHP 16 (USD 0.34)/kg. Mr Navarro said Philmaize started exploring export markets following the government's policy on support programs for the corn sector. In August, corn farmers asked the National Food Authority (NFA) to increase the support price for corn to PHP 13 (USD 0.28)/kg, but the NFA pegged the price at only PHP 10 (USD 0.21)/kg.
China’s corn production expected to hit record [6 October 2008] Corn production in China is forecast to hit a record high of 156 million tonnes in 2008, up more than 4.1 million tonnes year-on-year, according to China National Grain and Oils Information Center (CNGOIC). While domestic demand is predicted to be about 150.33 million tonnes, up more than 3.68 million tonnes year-on-year.
DuPont opens new research station in India [3 October 2008] DuPont has opened a new corn research station in India to develop high-yielding hybrids that are suited to the unique growing conditions in the country. Located in Banglalore, it is the fifth facility of its kind by DuPont’s Pioneer Hi-Bred. It is equipped with additional facility for molecular research and has a larger space for breeding, testing and disease characterization programs in corn. K.V. Subbarao, Pioneer India’s Country Manager said India could produce an additional 1.5 million tonnes of corn/year with just a 10% increase in corn production. DuPont’s research on new high-yielding hybrid varieties could bear fruit in five years.
Lay Hong widens markets [3 October 2008] Despite suffering a loss in its first quarter ended June 30, Malaysia's Lay Hong Bhd hopes for better future results as the Group is set to venture into Japan. It is due to be audited by Japanese buyers soon and if all goes well, the company can expect to ship a sizeable volume of chickens and eggs to Japan in the next quarter. This is apart from a new hatchery that the company established in Brunei recently to produce 100,000 chickens annually and a future plan for layer and broiler farms in Ho Chi Minh City, Vietnam.
Loans without collateral needed for catfish farmers in Vietnam [3 October 2008] Vietnam has proposed that banks extend credit to catfish farmers without collateral in a move to solve the problem of catfish shortage in the country. Luong Le Phuong, Deputy Minister of Agriculture and Rural Development, said the liquidity problem has prevented many catfish farmers from resuming their business after the price plunge early in the year due to an oversupply. He said the government has encouraged authorities in catfish producing areas to collaborate with farmers and processors in planning production to prevent an oversupply problem in the future.
Vietnam’s trade with Brazil grows [3 October 2008] Vietnam’s import and export of goods to and from Brazil was valued at more than USD 379.3 million from January to August 2008, a 17.34% increase over the whole of 2007. Statistics from the Brazilian government showed that during this period Vietnam exported goods worth over USD 123 million to Brazil and imported more then USD 256.2 million from Brazil, an increase of 98.14% and 111.44% respectively. The main items that Vietnam imported were chicken & beef products, tanned leather and wheat.
Lay Hong turns to Indonesia for cheaper poultry feed [2 October 2008] Malaysia’s Lay Hong Bhd has set its sights on cheaper poultry feed from Indonesia due to the rising cost of imports from the US and Argentina. Poultry feed imports consume about 70% of the company’s production cost currently. Lay Hong imports 7,000 tonnes of corn and soy from the US and Argentina monthly. It shouldered losses in its first quarter ended June 30 because of the high cost of imported feed ingredients.
TUF to buy new tuna brand in US market [2 October 2008] The Board of Directors of Thai Union Frozen Products Plc has approved the company's plan to purchase "Ace of Diamonds" tuna brand in the US market for USD 200,000. The brand accounts for a 1% share of the US canned tuna market at present and is positioned primarily as a price fighter brand. The purchase will be conducted by Tri Union Seafoods LLC, a subsidiary of TUF operating “Chicken of the Sea" brand in the US market.
CSIRO lab receives OIE recognition [2 October 2008] The
