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27 March 2017
|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 firstname.lastname@example.org 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 email@example.com 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 firstname.lastname@example.org 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 email@example.com 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 firstname.lastname@example.org 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 email@example.com 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 firstname.lastname@example.org 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 email@example.com 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 firstname.lastname@example.org.
|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 email@example.com 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 firstname.lastname@example.org 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 email@example.com.
|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.
Asian producers cautious after US TPP withdrawal
[01 February 2017]
On January 23, the American Feed Industry Association (AFIA) came out strongly against President Donald Trump's executive action to withdraw from the Trans-Pacific Partnership (TPP) trade agreement. 'While the USeconomy generally deals with a trade deficit, agriculture is the one segment where our country enjoys a strong trade surplus,' said AFIA President and CEO Joel G. Newman. US agriculture exports, including commercial feed, are increasing despite a global slowdown in overall trade, said AFIA. Trade agreements, such as TPP, allow US producers to exploit growing overseas demand. Much of this growing demand is in the Asia-Pacific region. The Asian Agribiz team sought feedback from the industry.
Thailand’s livestock industry still cautious after Trump abandons TPP
Although Thailand’s livestock industry came out against TPP, it is still cautious about the consequences of the US withdrawal from the the TPP. “The US National Pork Producers Council will not stop pursuing its interests and it will push for bilateral trade deals,” Wiwat Pongwiwatchai, Chairman of Ratchaburi Livestock Cooperative Ltd told Asian Agribiz. The US pork producers have several advantages, including cheap livestock feed and low production costs, over Thai producers, he said. “I think America First policy will see the US takes a much tougher trade stance with other countries,” Mr Wiwat added.
No direct impact to Indonesia’s poultry industry
The US withdrawal from TPP will have no direct impact on the Indonesian poultry industry as Indonesia does not export poultry products to the US, according to Desianto Budi Utomo, Chairman of the Indonesian Feed Producers Association. However, Dr Utomo told Asian Agribiz that the exchange rate will be an indirect impact of the US’ decision. “As we know, 93% of the total feed consumption in Indonesia is for poultry. And 100% of protein sources for poultry feed, especially soybean meal, is still imported either from the US or Latin America. So if the rupiah depreciates, our feed production cost will escalate quite significantly,” he explained. On the other hand, since the US will focus on increasing bilateral cooperation, “we need to be more concerned about chicken meat imports. The US eyes Indonesia as a good market for its chicken leg quarters,” he added.
Malaysia may experience only slight impact
Malaysia’s animal protein industry may only see a small dent with the TPPA being scrapped. According to Dato' Lim Tai Soon, President, Malaysia Animal Health and Nutrition Industries Association, most input to the industry are free of import duties or tariffs. He said the Malaysian government has been supporting the industry for many years by imposing zero duties on animal feed, equipment, animal health products and such. Meanwhile several existing FTAs, see chicken, beef and pork imports with zero import duty. “Despite this the local industry has mostly remained competitive and profitable,” he told Asian Agribiz.
Vietnam feed producer sees glass half full
TPP was seen as a good thing for Vietnam. Its targets were for exports such as pangasius and other seafood products to flourish. That may not be the case now but Dao Manh Luong, Austfeed Vietnam Corporation CEO, told Asian Agribiz that some industries such as the local poultry and pig businesses are happy the agreement is off. “For us, as a company focused on livestock and the fresh water fish, we see many opportunities with TPP off the table. We can further strengthen our business in Vietnam,” he said, but added that “in the long run, I think the Vietnamese government will look for other trade agreements such as Regional Comprehensive Economic Partnership to promote our economy”.
Indonesia will benefit
US President Donald Trump’s decision to withdraw the country from TPP will be positive for Indonesia, according Rosan Roeslani, Chairman of the Indonesian Trade Chamber and Industry. “Without TPP, we can compete competitively with Vietnam in the US market in some industries,” he said. He also thought that the US withdrawal presents an opportunity for Asean countries to increase trade and investments within the region. To Asian Agribiz, Budi Tangendjaja, Scientist at Indonesia’s Livestock Research Agency said Indonesia’s decision to scrap its plan to join TPP is a good step. “So it’s a good opportunity for the livestock industry, to improve and step up within the Asean Economic Community,” Prof Tangendjaja said.
Indonesia scraps its plan to join TPP
Indonesia will not join the Trans-Pacific Partnership (TPP) after the US withdrew from the trade pact. Indonesia expressed interest to join TPP after President Joko Widodo visited the US in February 2016, and he has already ordered a study on the scheme. “Indonesia was interested to join TPP, but since the US is no longer in TPP, the plan will not proceed,” said Dewi Fortuna Anwar, Indonesia’s Vice President’s Deputy Secretary for Government Policy Support. She continued that Indonesia hails the US’ intention to be more focused on increasing bilateral cooperation especially in the fields that are given national priority, such as food self-sufficiency.
|Thailand to export pasteurized eggs to bird flu-stricken South Korea|
[31 January 2017] Bird flu-hit South Korea has temporarily allowed imports of Thai pasteurized eggs and processed eggs for six months and it has also agreed to remove import duties for these egg products under the quota system. Sopat Chavalkul, Director of Sub-Division of Livestock Product Inspection, Department of Livestock Development (DLD) told Asian Agribiz that three Thai companies, Charoen Pokphand Foods (CPF), Kasemchaifood and Ovo Foodtech, are negotiating terms and conditions with South Korea’s trader. Thailand is waiting for South Korea to issue a health certificate for pasteurized eggs and processed eggs. Meanwhile, South Korea’s Animal and Plant Quarantine Agency (QIA) will evaluate information about Thai fresh eggs. Dr Sorravis Thaneto, Deputy Director General of DLD said: “I think the process won’t take long because South Korea needs the products now.”
|Live pig price in Manado is still weak|
[31 January 2017] Although other live pig markets like Greater Jakarta, Surabaya and Bali have seen an uptrend in prices since early January, the market in Manado in North Sulawesi, Indonesia is still grappling with low price. “During the Christmas and New Year period, the price of live pigs was below production costs and this has persisted,” Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia told Asian Agribiz. “I think there is still an oversupply in the province. In addition, pork has to compete with other animal protein sources like seafood.” The North Sulawesi Pig Farmers Association (APB Sulut) admitted that the market of for pork is limited. The association is now working with the local animal husbandry agency to get the hog cholera free status. Once this is successful, pig farmers in the province will be able to export to neighbouring and potential markets such as Papua.
|Alltech says global feed production has exceeded 1b tonnes|
[31 January 2017] The 2017 Alltech Global Feed Survey estimates that international feed tonnage has exceeded 1 billion tonnes, a 3.7% increase over last year and a 19% growth since the inaugural survey in 2012, despite a 7% decrease in the number of feedmills. “This year demonstrates the growing efficiency and consolidation of the feed industry,” said Aidan Connolly, Chief Innovation Officer and Vice President of corporate accounts for Alltech. “Not only has total feed production exceeded 1 billion tonnes for the first time but it has done so with fewer facilities, which means greater efficiencies and a decreased environmental footprint.” The sixth annual survey is the most comprehensive ever, now covering 141 countries and more than 30,000 feedmills.
|McDonald’s Indonesia to open 10-15 new outlets|
[31 January 2017] McDonald’s Indonesia has said that it plans to open 10-15 new outlets this year in Java. Sutji Lantyaka, Associate Director of Communication said raw material distribution is still their main concern for new outlets beyond Java. “As a franchisee, we need to follow all standards from McDonald’s from the US. And not all local raw materials meet their standards. So that’s why until now we don't have an outlet for example in Papua due to the raw materials distribution limitation,” she explained. McDonald’s Indonesia currently operates 171 outlets in the country.
|KFC Korea to be back on sale in March|
[31 January 2017] KFC Korea is likely to be back on sale two years after it was purchased by a Hong Kong-based private equity fund. According to investment bank sources, CVC Capital Partners, the largest shareholder of KFC Korea, is attempting to sell its stake in the American franchise unit in Korea. Invitations will be handed out in March. Operating profit of KFC Korea which was USD 9.87 million in 2013 plummeted to USD 5.8 million in 2014 and to USD 945,000 in 2015 as popularity of the American fried chicken franchise has waned in Korea. The company has been promoting various low-priced menu items and increased discount rates to bolster sales, as reported by Pulse News.
|2017 Pig Feed Quality Conference returns in April|
[27 January 2017] Asian Agribiz’s annual Pig Feed Quality Conference (PFQC), Asia’s leading conference and scientific forum for pig and feed industry professionals to update their knowledge and network with industry peers, is set for April 25-26 in Ho Chi Minh City, Vietnam. Working within the framework of ‘science, trial data & application’, the 2017 PFQC will cover three topics that include feeding for heavier bodyweights without sacrificing carcass quality, managing low protein diets, and reducing the use of infeed antibiotics. Visit Pig Feed QC 2017 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Disease still a problem for pig farmers in Bali|
[27 January 2017] Diseases like PED and PRRS will remain a problem of pig farming in Bali, Indonesia this year. “PED was serious last year and resulted in a shortage of live pig supply to several markets in Bali. This is still the case today,” Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia told Asian Agribiz. Because of that, “this year farmers have to strengthen their farm biosecurity and improve farm management. For PED, they can apply an autoimmune program at their farms,” he said. “The good news for PED in Bali is that the local government will coordinate with the central government to produce PED vaccine from local master seed.”
|Wellhope to build pig slaughterhouse in northeast China|
[27 January 2017] Chinese feed miller Wellhope Agri-Tech, in which Royal De Heus of the Netherlands holds a 9.63% stake, said it has signed an agreement with a local government in northeast China to build a pig slaughterhouse with an annual capacity of 1 million heads. The company will also develop 500 contract farms in the Dongzhou District of Fushun, Liaoning province to produce 500,000 pigs a year. Total investment will be about USD 145 million, and the project is expected to be completed in 3-5 years. Wellhope started an integrated broiler business in 2007 and ventured into pig farming last year, when it bought a 35% stake in a pig integrator in north China’s Hebei province.
|Thailand’s feed wheat imports to slow down due to government restrictions |
[27 January 2017] Thailand’s corn production in marketing year 2016/2017 is likely to increase to 5.2 mmt, up 11% from the previous year, according to the USDA's GAIN report. Farm-gate price of corn is hovering around USD 0.17 per kg currently. This is a 24% reduction compared to the same period last year in part due to competition from other feed ingredients. Feed wheat imports have been acting as a substitute for domestic corn in compound feed for poultry due to its relatively cheaper price. The downward pressure on domestic corn prices has led the government to impose import restrictions on feed wheat and to pursue more stringent import measures on alternative feed ingredients. In the first five months of marketing year 2016/2017, wheat imports totalled 2.3 mmt, but feed wheat imports are likely to slow down in the second half in response to new government restrictions.
|Perindo to set up aqua feed plant in Subang|
[27 January 2017] Indonesia’s state-owned fishery company, Perikanan Indonesia (Perindo) will soon set up an aqua feed plant in Subang, West Java province. The company will partner with two other state-owned companies namely PT Hutama Karya which will be responsible for the construction and PT Sang Hyang Seri which will provide 4ha of land for the project. Syahril Japarin, Perindo's President Director said the plant will have an installed capacity of 10 tonnes/hour and will cost the company around USD 12.4 million. Mr Japarin added that the existence of the new plant will give cheaper choices of fish & shrimp feeds for aquaculture farmers in the region.
|Bangladesh reports H5N1 outbreak in poultry farm|
[27 January 2017] Bangladesh reported an outbreak of the highly contagious H5N1 bird flu virus at a poultry farm in Dhamrai, Dhaka, said the World Organisation for Animal Health (OIE) on January 23. Of 3000 Sonali type poultry at risk from the outbreak, 732 died from the virus and the rest were slaughtered. Different strains of bird flu have been spreading across Europe and Asia since late last year, leading to mass culling of poultry in certain countries and some human deaths in China. This prompted OIE to call on all countries to monitor closely outbreaks of the deadly virus in birds and poultry and to report promptly any human cases that could signal the start of a flu pandemic.
|Indonesia confident of 24mt corn harvest|
[26 January 2017] Indonesia’s Agriculture Ministry has ensured that the country will stop corn importation for feed millers this year as the ministry strongly believes that the country can produce 24 million tonnes of corn. Andi Amran Sulaiman, Agriculture Minister said: “From March to May this year, we will harvest around 12-15 million tonnes of corn. This is more than enough for the feed millers. In the same period of last year, we were able to produce 10 million tonnes.” Regions contributing to the expected harvest include Gorontalo, North Sulawesi, West Nusa Tenggara, East Java, Lampung and South Sulawesi.
|Thailand’s Sea Value in talks to acquire another plant in France|
[26 January 2017] Thailand’s Sea Value Group, one of the world’s leading tuna manufacturers, is currently in talks to purchase another tuna-processing plant in France, the Nation reported. Chanintr Chalisarapong, Senior Vice President of Sea Value, said if the deal does not proceed, it will double the production capacity of its French subsidiary Sea Value Atlantic, which it acquired in October 2015. Sea Value Atlantic produces premium tuna, salmon and some other seafood in both pasteurized and sterilized plastic bags. Sea Value was established in March 2004 by a group of strategic partners who have long experience in tuna and seafood businesses, including Thai seafood processors Wales Group and PTN Group, marine raw materials sourcing and traders Itochu and F.C.F. Group and US-based Bumble Bee.
|Ceylon Grain Elevators to buy poultry processing plant|
[26 January 2017] Sri Lanka’s top poultry producer, Ceylon Grain Elevators Plc, plans to buy a poultry processing plant and sub-lease a piece of land from Ceylon Agro-Industries for USD 1.81 million. The Daily Mirror reported that both companies are related through four individuals who sit on the board of both companies. Sri Lanka’s Related Party Transactions Review Committee found the deal consistent with commercial terms and is not prejudiced to the interests of Ceylon Grain Elevators and its minority shareholders. Ceylon Grain Elevators is Sri Lanka’s largest listed poultry producer in terms of revenue and profits, while its subsidiary Three Acre Farms Plc is the fourth largest.
|CJ CheilJedang eyes top position in world dumpling market|
[26 January 2017] South Korea’s CJ CheilJedang has announced plans to be the global lead in the frozen dumpling market with USD 856 million in sales of its Bibigo dumpling products. “We intend to achieve USD 856 million in sales of Bibigo dumplings by 2020, with 70% of that coming from overseas markets,” the company was quoted by The Hankyoreh. The world dumpling market, which totalled USD 4.9 billion last year, is currently led by companies in South Korea, China and Japan. CJ CheilJedang occupies one of the top five positions for market share, after three Chinese companies (Wanchai Ferry, Sanquan and Shinian) and Japan’s Ajinomoto. “The Chinese businesses all focus on the domestic market, while Ajinomoto’s overseas sales are minimal,” said the company. “Given Bibigo’s current growth, we’re expecting it won’t be difficult reaching our sales target by 2020.”
USGC seminar addresses current trends with DDGS
Report by RACHAEL PHILIP
[26 January 2017]
US Grain Council held its US DDGS in Poultry and Swine Nutrition seminar in Kuala Lumpur last week. The event attracted feedmillers, nutritionists as well as grain traders. Prior to Kuala Lumpur the seminar visited six cities in Southeast Asia.
US DDGS price seen to be less volatile
China’s decision to subject US Distiller’s Dried Grains with Soluble (DDGS) to anti-dumping and countervailing duties is seeing the top importer cutting its import of the product from 6.46 million tonnes in 2015, to 2.31 million tonnes in January-November 2016. “This will mean less volatility in the price of DDGS. We prefer to have a stable market environment to operate in,” Matt Thibodeaux, Director of Grains Commercial Operations, Valero Marketing and Supply Company, told Asian Agribiz. He said the market will now be driven by DDGS nutritive values and not policy. The excess DDGS could be taken up by countries like Japan and Korea, existing markets for the US, “that are sometimes squeezed out because of high prices”.
Historical low prices for DDGS
It was noted at the seminar that in January the price of DDGS was at a 'historical low' at roughly 85-90% of the price of corn. In comparison prices peaked in 2013 when it was 130-140% of corn. The price of corn is also on a downward trend. Dr Budi Tangendjaja, Technical Consultant for the USGC, said it was a good time to buy DDGS. According to grains.org DDGS reference prices for 40ft containers to countries in the region on January 21 2016 for February 2016 was between USD 222 and USD 229 per tonne. The figures on January 12, 2017 for February 2017 was USD 176 and USD 181 per tonne.
Countries taking advantage of low DDGS prices
Some countries are taking advantage of the attractive price of DDGS. Cambodia, for instance, imported 23,500 tonnes from January to October 2016, much more than Myanmar (18,200 tonnes), where the council held a number of promotional activities for the product last year, Dr Budi Tangendjaja, told Asian Agribiz. “Cambodia is opening up its market, and there are a number of new multinational feedmills in the country.” The Council’s effort in Myanmar has also paid off. From January to November 2016, the country imported 19,594 tonnes, an almost 500% increase, compared to 3388 tonnes in the same period last year.
US corn harvest quality report
The 2016/2017 Corn Harvest Quality Report showed that 35.1 million ha of corn is projected to be harvest for 2016, an increase from 2015’s 32.7 million ha. Dr Budi Tangendjaja, said there is “ample supply of US corn and the price has become competitive. Moisture at harvest is low at 16%. This has led to less mycotoxin. There is less broken and stress cracks. This would be good for both wet and dry milling. The chemical composition of the harvest is steady, with slightly higher in protein content at 8.6% and fat content at 4% but less in starch content (72.5%). Its chemical composition and grade should be translated to better metabolised energy,” he said.
|JBT sees automation, traceability as key trends in meat processing equipment|
[25 January 2017] John Bean Technologies (JBT), a leading supplier of integrated food processing solutions, said it is optimistic about its growth prospects in Asia due to the region’s high economic growth, rising middle class and increasing demand for convenience food products, said, Tom Borup Managing Director, Protein Sales & Business Development, JBT Asia Pacific. The company is eyeing growth in China, India, Southeast Asia and Australia-New Zealand. “These are our four major areas and they have different food trends,” Mr Borup told Asian Agribiz, adding JBT’s machine can be tailor-made to different needs. “We believe in tailor making our machine for Asian needs in term of features and benefits,” he said. Meanwhile, automation, traceability, documentation, visibility will be among key features of food processing equipment.
|Feed millers setting up warehouses for local corn|
[25 January 2017] Responding to the Indonesian government’s rule on stopping corn imports, the Indonesian Feed Producers Association (APPI) said its members are currently setting up warehouses and corn dryers to absorb local corn. “Our concern is only about our inability to absorb all corn during the harvesting period. Another concern is on stock management as the harvesting period is not every month and we can’t accurately predict the production per region,” said Desianto Budi Utomo, APPI Chairman. Dr Utomo said it is estimated that the feed milling industry this year will need around 8.4 million tonnes of corn.
|Bairaha to add USD 1.59m to its ongoing feedmill project|
[25 January 2017] Sri Lanka’s Bairaha Farms PLC said it would invest an additional USD 1.59 million to the ongoing works of its feedmill and storage facility. The project, a jv with Farm’s Pride Limited was budgeted at USD 9.6 million in 2014. Work on the facility started last June but cost overruns such as civil works, land development, additional machinery and other costs amounting to USD 759,000 were incurred. Another USD 833,000 was incurred for corn and soy meal silos. The company said the additional costs will come from Bairaha, Farm’s Pride and Fortune Agro Industries Pvt Ltd, the jv feedmill company or from Fortune G-P Farms Lanka Ltd, the jv grandparent farms and hatchery company.
|No pig supply from West Kalimantan to Greater Jakarta |
[25 January 2017] The Greater Jakarta market in Indonesia will not receive live pigs from West Kalimantan. An industry player told Asian Agribiz that Sujaya Group, the largest pig producer in the province that usually sends live pigs to Greater Jakarta, has been facing some challenges in the last two years. “So it may take some time for them to get back to normal. But, this is a good news for live pig suppliers from Central Java,” he said. “It’s also the right time for small-medium scale pig farmers in West Kalimantan to increase their pig population.” In 2014 Asian Agribiz visited the pig farming facilities of Sujaya Group. At that time, the group had more than 70,000 pigs and was converting all its open houses to closed houses, while planning for a pig slaughterhouse.
|TCRS expects 19% sales growth this year|
[25 January 2017] Malaysia’s TCRS Restaurants Sdn Bhd expects to see 19% growth in sales this year compared to the year before. The company, which operates The Chicken Rice Shop outlets in Malaysia, recorded sales of USD 22.4 million in 2016. TCRS is also expanding its outlets to Myanmar, where a local franchise holder there is expected to launch five outlets by year end. In total, TCRS owns 88 outlets in Malaysia and two in Singapore, and has franchised an outlet at KLIA as well as one in Brunei. CEO Wong Kah Lin unveiled Ayam Ranggup Berapi in conjunction with the upcoming Chinese New Year, which marks the onset of the year of the Fire Rooster cycle.
|Philippine hog production up 3.8% in Q4|
[25 January 2017] Philippine hog output topped 632,300 tonnes in Q4 2016, 3.8% higher than the same period the year before, the Philippine Statistics Authority (PSA) said in its latest Performance of Philippine Agriculture report. The agency attributed the growth to an increase in the number of hogs sold during the period and also the expansion of commercial farms reported in Northern Luzon and in the Davao Region. This brings the industry’s total production to over 2.23 million tonnes for the year, up 5.2% from the previous year.
|US withdraws from TPP|
[24 January 2017] US President Donald Trump has withdrawn from the Trans-Pacific Partnership which included 11 countries in the Pacific Rim. Condeming the move, American Feed Industry Associations (AFIA) President and CEO Joel G. Newman said : "TPP, and agreements like it, are key to setting the terms and rules for future trade relationships, creating higher standards and expectations than previous trade deals. While the US economy generally deals with a trade deficit, agriculture is the one segment where our country enjoys a strong trade surplus." In a press release, AFIA added that US agriculture exports, including commercial feed, are increasing despite a global slowdown in overall trade. US feed industry jobs are created and supported by overseas demand for American products. Lookout for Asian Agribiz's coverage on industry reaction.
|Live pig prices in Greater Jakarta up before Lunar New Year |
[24 January 2017] With the Chinese Lunar New Year just days away, the price of live pigs in Greater Jakarta, Indonesia has increased to USD 2.54 per kg. “This has positively impacted the farm gate price of live pigs in supplying regions such as Central Java, East Java and Bali. In Bali for instance, the price is USD 2.16 per kg and continues to escalate,” said Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia. However, he hopes PT Indotirta Suaka of Salim Group, the largest pig producer and exporter in the country, will not flood the Greater Jakarta market with their pigsas this will cause a price slump, he told Asian Agribiz.
|USGC disappointed with China’s DDGS anti-dumping duties|
[24 January 2017] The US Grain Council is disappointed with China’s move to subject US distiller’s dried grains with solubles to anti-dumping and countervailing duties (AD/CVD). According to USGC President and CEO Tom Sleight, the decision is not supported by evidence and raises questions on China’s compliance with standard AD/CVD procedures and with its international obligations. “While painful and damaging to the US DDGS industry, the biggest negative impact will be on China’s feed and livestock industries, which risk losing access to an important and cost-effective feed ingredient, and on millions of Chinese households that will likely face greater food price inflation and less access to affordable, wholesome pork, poultry and dairy products,” he said in a statement posted on the council’s website.
|Chicken production up, egg output down in Q4|
[24 January 2017] Philippine chicken production inched up 1.7% to 455,730 tonnes in the last three months of 2016 thanks to higher demand, the Philippine Statistics Authority (PSA) said in its latest Performance of Philippine Agriculture report. The agency also noted the additional production from newly opened broiler farms of key integrators San Miguel Corp and Bounty Fresh in Western Visayas. On the other hand, egg production tumbled slightly to reach only 116,210 tonnes in Q4, down 0.89% from the previous year. The PSA said the lower production was due to a drop in laying flock inventory due to tight supply of ready-to-lay pullets and lower egg-laying efficiency ratio.
|KPS plans to develop pig processing business|
[24 January 2017] Karya Prospek Satwa (KPS), a close partner of Charoen Pokphand Indonesia, has successfully developed pig contract farming in Bali, Indonesia. Phaithoon N Na Ayudhaya, Pig Specialist of CP Indonesia, told Asian Agribiz that in the next decade the company will focus more on developing frozen pork products. “We plan to set up a pig processing plant and a cold chain facility. By having the facilities, we will supply frozen pork to many cities in the country. This is our commitment to the local government of Bali,” he said. On Kurobuta pigs, Mr Phaithoon said the company continues to educate consumers in Bali about the exclusiveness of pork from Kurobuta pigs. “It will take time, because it’s something new for them.”
|Vietnam implements band aid measures for pig woes|
[24 January 2017] As prices of pigs remain depressed in the country, Vietnam’s Ministry of Agriculture and Rural Development has implemented some stopgap measures to help the local pig industry alleviate the situation. The ministry has instructed People’s committees in provinces to control pig herd expansion 'by all means' and called on relevant authorities to review pig population and build a pig development plan that matches market demand and in accordance with the provinces' capacity. The Department of Animal Production reported that farm price of pigs across the country has remained at USD 1.20-1.46/kg against a production cost of USD 1.68-1.77/kg.
|Bali will see demand for organic pork says supermarket operator|
[23 January 2017] Bali is the most famous place of interest in Indonesia. According to Ketut Rai Sunaka, Store Manager of Bintang Supermarket, more foreign tourists, especially from Japan, demand organic agri-products such as organic vegetables, sugar, rice and milk. “Looking at this trend, I believe in the near future we will also receive demand for organic pork,” he told Asian Agribiz. Mr Sunaka said fresh chilled pork is an important item for Bintang Supermarket as it is one of the bestselling meats. Its store in Ubud, for instance, sells around 30-40 kg of pork a day. The supermarket sells different kinds of pork slabs namely belly, loin, leg and rib, and has its own butchers to cut the slabs according to customers’ preference. It also sells ground pork, which is a best seller in all its stores. The pork is both from local supplies and imports.
|CPF China sales to exceed Thailand sales in 5 years|
[23 January 2017] Thailand’s Charoen Pokphand Foods (CPF) said its total sales in China will likely surpass its sales in Thailand in the next 5 years, Adirek Sripratak, CEO of CPF said recently. “Our sales in China will grow faster than in Thailand because the population size of China is much bigger than Thailand,” he said. CPF’s main revenue streams in China come from its feed business, followed by its food business. “We built two large food factories in Qingdao and Qinhuangdao and acquired stakes in Chinese firms in 2016 including broiler, food and animal vaccine businesses,” he added. CPF China's sales now contribute 24% to its total sales, while its Thailand sales (produced and sold locally, excluding exports) contributes 32-33% to its total sales. CPF has allocated an investment budget of USD 565 million for 2017, excluding mergers and acquisitions.
|KPS to improve pig genetic quality in North Sulawesi|
[23 January 2017] Genetic quality is one of the main problems hampering the growth of pig farming in North Sulawesi, Indonesia. To solve this problem, Karya Prospek Satwa (KPS), a partner of Charoen Pokphand Indonesia, imported 50 boxes of frozen semen of commercial pigs like Duroc, Yorkshire and Landrace from Swine Genetics International of the US last year. “We used the semen for breeding at our farms in the province. It will take about one year to get the F1. So in early 2018, we will be ready to commercialise the pigs for farmers. They will get the best genetics,” Phaithoon N Na Ayudhaya, Pig Specialist of CP Indonesia, told Asian Agribiz. In North Sulawesi, KPS has two pig breeding farms selling parent stocks (male & female) to farmers in the province.
|Australia sends first shipment of brown eggs to South Korea|
[23 January 2017] Australian egg farmers have sent the first shipment of eggs to South Korea, to help ease a major shortage caused by an avian influenza outbreak. Approximately 30 million birds have been culled to stem the spread of the disease, causing a shortfall according to ABC Rural. Prices of eggs and other poultry products have soared as a result, with retail egg prices rising by around 21.5% to USD 1.87 for 10 eggs. But at the farm gate, farmers have raised the price of eggs they are selling by 50% to USD 1.31. Huge shipments of white eggs are already arriving from the US, but Koreans have a preference for brown eggs, and that is where Australian farmers are stepping in. “Eggs are an important product to South Koreans, hence the sense of crisis and the need to act quickly,” said Rowan McMonnies, Managing Director of the Australian Egg Corporation Limited.
|India’s WestCoast Group launches online sales of seafood |
[23 January 2017] WestCoast Group, a fully integrated seafood company in India, has launched an online portal cambaytiger.com with the aim to be the largest player in the seafood e-commerce space by delivering quality seafood to customers in Mumbai. The company also plans to expand its e-commerce service to other cities such as Delhi, Bengaluru and Chennai, as reported by India Retailing. Shivam Gupta, Director of WestCoast Fine Foods said: “In a first of its kind in the country, we will provide two unique services to our customers. Firstly, customers will be able to order prawns and tilapia straight from our farms, giving them a true farm-to-fork experience with guaranteed traceability. Secondly, there is also an option to order live tilapia to their homes.” Cambaytiger.com serves live, raw, ready-to-cook and frozen seafood. Live seafood will initially include tilapia and mud crabs.
|WTO ruling to increase US beef exports to Indonesia|
[20 January 2017] The recent World Trade Organization’s decision could provide further momentum for US beef exports to Indonesia. Feedstuffs quoted Joel Haggard, US Meat Export Federation (USMEF) Senior Vice President for the Asia-Pacific, as saying: “Indonesia has been heavily regulated in terms of the way it controls its importers - what they can import, when they can import, how they can import it. They began to loosen some of those restrictions early in the spring, but the commercial effects really came into place late last year.” Mr Haggard added that: “Some of those cuts would be items like knuckles and some of those hind-quarter cuts, plus some offal items. Liver and heart are now eligible. Those items were previously not allowed to be imported, and now they are.”
|CP China to build 3m layer complex in Kunming|
[20 January 2017] CP China said it has signed with the local government to build a three-million-layer complex in Kunming in southwestern Yunnan province. The facility will comprise of a feedmill, layer farms, egg packaging and processing plants, as well as a crocodile farm and an organic fertilizer factory. Total investment will be around USD 73 million, according to the Kunming Daily. “The complex will serve Yunnan and its neighbouring provinces, as well as Southeast Asia,” CP said in a press release. As early as 2012, CP launched a three-million-layer complex in Beijing, making it the largest layer farm in Asia. Now the company is said to be planning for 20 such complexes in China.
|US exports shell eggs to South Korea|
[20 January 2017] South Korea has opened its market for the first time for shell eggs from the United States, following the culling of over 30 million birds due to Highly Pathogenic Avian Influenza (HPAI) outbreaks. The first US exports of shell eggs arrived in Korea on January 12. USDA continues to work with the Korean government to open the market for US liquid egg products, liquid egg white, salted eggs and pidan. As a result of HPAI, egg prices jumped more than 50% between December 12 and January 6. This is the first time that the Korean shell egg market has been open to the US, reported the USDA in its GAINreport.
|India’s Odisha sees low poultry demand over AI outbreak|
[20 January 2017] Already reeling from demonetisation, the outbreak of avian influenza (AI) has added to the woes of poultry farmers in India’s Odisha state. They claim the sale of poultry products has dropped by 60-70% in the peak season while prices have also fallen by USD 0.29 a kg. Cashing in on the crisis, mutton and fish vendors have raised prices, according to The Times Of India. Market sources said the price of chicken has dropped from USD 2.05 to USD 1.76 a kg in a month. Similarly, the price of eggs per dozen has reduced from USD 0.80 to USD 0.73. Poultry traders said hotels, restaurants and fast food centres have also reduced their intake as public consumption has gone down.
|Hong Kong bans poultry imports from Uganda, Germany, India, Japan|
[20 January 2017] Hong Kong’s Centre for Food Safety (CFS) announced on January 17 that in view of notifications from the World Organisation for Animal Health (OIE) about outbreaks of H5N8 avian influenza (AI) in the state of Bavaria in Germany and Kottayam district in Kerala State of India, and an outbreak of H5 AI in Uganda and a notification from the Japanese authorities about an outbreak of AI in Gifu prefecture, the CFS has banned the import of poultry meat and products including eggs from the mentioned places. In the first 11 months of last year, Hong Kong imported about 9300 tonnes of frozen poultry meat and 2 million eggs from Germany, and about 6800 tonnes of frozen poultry meat and 45 million eggs from Japan, said a CFS spokesman as quoted by Sat PR News.
|Russia doubles grain exports to Asean|
[19 January 2017] Russian grain exports to Asean doubled in 2016-17 compared to the previous agricultural year, Rosselkhoznadzor, the Federal Service for Veterinary and Phytosanitary Surveillance, said recently. “The preliminary analysis of Russian grain exports in 2016-17 has already shown a two-fold growth in volumes,” Rosselkhoznadzor said. It said Russia delivered about 587,000 tonnes of grain to the region, including 467,000 tonnes of wheat. Rosselkhoznadzor said the forecast of grain imports by Asean increased to 38 million tonnes. Russia’s Agricultural Minister Alexander Tkachev said the country is forecast to export 35 million tonnes of grain from a 2016 harvest that exceeded 119 million tonnes. In 2015, Russia harvested 104.8 million tonnes and exported 33.9 million in 2015-16.
|China in its fifth wave of H7N9 activity|
[19 January 2017] Eleven more H7N9 infections have been reported from four Chinese provinces, according to official sources, and a World Health Organization (WHO) update provided an epidemiologic snapshot of a surge in infections, which includes two case clusters. China is in its fifth wave of H7N9 activity, and earlier this month the fast pace of newly reported illnesses had already topped last season's total. According to a case list maintained by FluTrackers, 140 cases have already been reported this season, including four in Hong Kong and two in Macau.
|Indonesia to import cattle from Mexico|
[19 January 2017] Indonesia is gearing up to start importing cattle from Mexico as negotiation on a similar deal with its neighbour and largest cattle supplier Australia remains in limbo. Indonesia’s Trade Ministry is communicating with Mexico to import of 4000 cattle as soon as next month. “We have issued a recommendation for the deal and the Ministry of Trade seems to be on board with the plan. This will secure the supply of beef at least until Idul Fitri,” said I Ketut Diarmita, Director General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture. Indonesia will have to rely on imports to meet 40% of its demand for beef this year, which is estimated to top out at 720,225 tonnes.
|China increases punitive tariffs on US DDGS|
[19 January 2017] China has increased punitive tariffs on imports of US DDGS from levels first proposed last year. The ruling is a major victory for China’s fledgling ethanol industry, which has complained the US industry was unfairly benefiting from subsidies, and followed a year-long government probe, according to a Reuters report. In a final ruling, China’s Commerce Ministry said anti-dumping duties would range from 42.2-53.7%, up from 33.8% in its preliminary decision in September. Anti-subsidy tariffs will range from 11.2-12%, up from 10-10.7%. Shipments in October and November last year fell to 135,000 tonnes and 163,000 tonnes respectively, about a third of the total in August before the first ruling. The new rates took effect in early January, and will be in force for five years.
|Australia urges Indonesia to relax cattle import restriction|
[19 January 2017] Australia is demanding that Indonesia loosen an import restriction that requires imported cattle to weigh at least 350kg and be 30 months old when it arrives in the archipelago. The requirement limits cattle options that Australia can supply to Indonesia. Indonesia has asked in return that Australia cut the price of its cattle by around USD 0.75/kg. “Adjusting the requirement would make it easier to import from Australia. If Australia can commit to the price cut, we will relax the requirement,” said I Ketut Diarmita, Director General of Livestock and Animal Health. Trade Minister Eggartiasto Lukita had said earlier that he has been in intense communication with his Australian counterpart to close the deal.
Animal Protein in Asia 2022, Bangkok, Thailand
Onsite reports by ARIEF FACHRUDIN and PAYUNGSAK WIRIYABUNDITKUL
[18 January 2017]
On the second day of Asian Agribiz's Animal Protein in Asia 2022 conference, two stream were addressed namely 'Regional meat opportunities' and 'Developing the next big meat product'.
The economic consequences of Trump's presidency
Michael Every, Head of Financial Markets Research, Asia Pacific, Rabobank said Donald Trump's incoming administration will try for trade deals that favour the US in terms of trade balance. Mr Trump will also invest hugely in key US infrastructure, while emphasizing on products made in the US and that’s one way he can jumpstart the US economy. “All of this is going to have a huge effect on the Asia region,” he said. Although USD dominates the globe, this stance could see a tightening of trade with the US. “There could be a massive USD squeeze in every emerging market,” Mr Every added.
Considering the potential for meat products in the halal sector
The size of the market for halal-certified food was estimated at USD 415 billion in 2015, with a compounded annual growth rate of 9%. In Singapore, growth of halal food is backed by growing awareness and demand, growing Muslim middle-class, savvy consumers making a more well-informed choice in dietary requirements and government support, said Khairul Ruzaini, Business Development Manager at Umairah Halal Food. However, global halal standards remains the key challenge for the halal sector. “Unified global halal standard is still an issue and we have differing certifications from various Halal authorities,” Mr Ruzaini said. Also, integrity throughout the Halal supply chain has become a major concern for Muslim consumers, with fraudulent Halal certifications and physical contamination of food products on the rise.
Origin fingerprint to prevent food fraud
Food fraud is costly. It damages brand image from poor consumer experience, impacts reputation significantly, and costs of adulteration is between 2-15% of annual revenue. According to Todd Gordon, Marketing & New Market Development of Oritain, adding value by reducing business risk and protecting brands is important. Oritain has been developing Scientific Traceability to prove a food product’s origin using a method of traceability. Citing a case study, Mr Gordon said the company partnered with Australia’s Farm Pride to ensure that the provenance of the farm’s free range eggs is protected. “Using our technology, we tested egg samples from various free range farms and created an origin fingerprint of the eggs that represent the eggs true origin. This fingerprint reduces the risk of fraud or eggs being substituted with lower grade eggs,” he said.
Potential developments in meat processing technology
A wealthier world with a rising middle class in Asia, choosy consumers and transformative technologies are mega trends mentioned by Paul Heskens, Vice President Asia Pacific of Provisur Technologies. Provisur sees potential developments in meat processing technology in the midst of the mega trends. The company, a leading supplier of grinding, mixing, separating, forming and slicing machines, has responded to the mega trends by developing higher capacity machines with wider line, more efficient machinery, balanced flow and integrated downstream equipment. The machines are also energy efficint with technologies including VFD & servo drives, energy monitoring, adaptive power controls and waste heat recycling. In addition, the company also develops machines with less labour and enhanced food safety features.
Key trends for fresh meat in Asia
In the last three years Asian Agribiz had seen positive developments in the fresh meat sector in Asia. According to Arief Fachrudin, Editor Asian Meat Magazine: “Demand for fresh chilled meat in the region is gaining ground due to food safety awareness. We are also seeing demand for portioned cuts increasing because consumers find it simple, practical, more convenient and less time consuming for meal preparation. In line with the two trends, slaughterhouses in the region are gaining traction.” He believes in the next five years the market for chilled meat iwill grow and the region will also see more investments in supermarkets, meat shops, slaughterhouses and cold chain facilities.
Animal Protein in Asia 2022, Bangkok, Thailand
Onsite reports by ARIEF FACHRUDIN and PAYUNGSAK WIRIYABUNDITKUL
[17 January 2017]
Delegates gain knowledge on trends and online shopping at AP2022
The Animal Protein in Asia 2022 conference which opened in Bangkok, Thailand yesterday, saw delegates gaining much insight into online sales models and consumer trends. The two-day conference by Asian Agribiz and its Asian Meat magazine continues today with more presentations today on regional meat opportunities and developing the next bug meat product.
The rise of online shopping hurts traditional supermarkets
Alternative retail formats such as Amazon and Alibaba are completely outperforming traditional supermarkets, said David Hughes, Conference Director and Emeritus Professor of Food Marketing at Imperial College London. In the UK in the next 4-5 years, growth will come from online, discounters and convenience sector, not from hypermarkets and supermarkets. “Traditional supermarkets are losing market share and sales to dotcoms. I think that’s the same situation in many countries including the US,” he added. In the UK, fresh fish has seen the biggest growth in fresh & chilled subcategories in online platforms followed by a strong performance of whole head produce, while fresh poultry and game also perform well. For the future of retailing, Prof Hughes said winning retailers will be those who work out best how to operate dotcom, big and small stores, metro stores and to maximize efficiency across the value chain.
Kee Song’s B2C and B2B e-commerce platform
Known for its Mozart-listening and antibiotic-free broilers, Singapore’s Kee Song Brothers Poultry Industries has launched keesong.com to solve customer's pain points including peak hour congestion, long queues and long working hours. The e-commerce platform has offered Kee Song’s range of frozen uncooked chicken, RTC and RTE chicken and other products. James Sim, Group Marketing Manager, said the company’s website has expanded its scope from B2C (Business to Customer) to B2B (Business to Business), addressing home delivery and drawing repeat purchase through a number of promotional activities. Mr Sim said the company has used the program to analyses buying behaviour and then it can tailor its offerings to different consumer groups.
Selling perishables online using the on-demand model
Collaborative economy, which removes excessive resources and capacity, leads to an on-demand model, said Khairul Ruzaini, Partnerships and Marketing Executive of HonestBee Pte Ltd. Consumers are shifting towards on-demand services because they are looking at speed and convenience. Meanwhile, US consumers are spending USD 57.6 billion annually in the on-demand economy including online marketplace, transportation, food/grocery delivery and other services. HonestBee, Asia’s online grocery and delivery service company, partners with supermarket brands and specialty stores and crowdsource their workforce. Mr Ruzaini said the company defies the notion that for fresh items, customers would like to see and touch the items before buying. HonestBee’s business model also reduces overheads by adopting the light-asset model (no inventory) while bridging between demand and excess resources.
Launching an online sales platform for processed fish products
Sidarta Sidik, Director of Food Product Marketing, PT Central Proteina Prima Tbk (CP Prima), said Indonesia’s e-commerce is growing but it still is in the early phase and logistics and online payment are big challenges in Indonesia as only 40% of the population has bank accounts and only 4.5% have credit cards. CP Prima became the first company in Indonesia to venture into e-commerce in the frozen seafood category by launching belanjaseafood.com. The site is an online store for fiesta seafood and champ seafood and a one stop solution for frozen seafood needs. “We have to control of the delivery system because our products are quite sensitive. The company coordinates thematic promotions with its e-commerce partners.
Common strategies from four poultry giants
Leading global poultry companies, including Tyson, JBS, CPF and BRF, have common strategies including spreading the risk geographically, creating product diversity, getting closer to the consumer and moving up the value chain, said Gordon Butland, Director, G&S Agriconsultants Co Ltd. “If you have only one product or one protein and you are in one country, you have serious risks including product and disease problems,” he said. Meanwhile, although breeding companies are confident that they can deliver consistent annual improvements in feed conversion, chick numbers and yields, they cannot guarantee yet that they can eliminate the disasters of diseases such as Avian Influenza and Newcastle, Mr Butland added.
Key food trends in Southeast Asia in 2017
Functional consumption or eating for specific purposes such as health and wellness will be the top food trend in the Southeast Asian region this year, according to Arpapat Boonrod, CEO Thailand Consumer Insights of Kantar, a leading market research company. Another important trend is food on demand, this trend is linked with the digital world which is changing the food landscape in the region. Responding to this, Kantar has seen some animal protein companies in the region selling their products online. For instance, Vietnam’s Vinamilk which sell its milk products through its e-commerce platform. Last but not least, according to Ms Arpapat, consumers in the region are more curious about the impact of companies to society, the environment, food safety and local community development.
Better packaging will play a key role in meat products
Urbanisation, product segmentation, health & wellness, convenience and internet of everything are some key trends impacting animal protein consumption, especially meat, in Asia. These trends, according to Christophe Gottar, Executive Director Global Poultry of Sealed Air, also impacts the packaging sector where meat producers and retailers will focus on food safety, shelf-life extension, operational efficiency and brand building through packaging technologies. “The first thing in packaging is you need to ensure food safety. Next is shelf life where in perishable food it is responsible for over 50% of food loss,” he said. Sealed Air has been developing innovative packaging technologies for fresh red meat, poultry and seafood.
Doing business in China
Meat industry in China continues to grow. It can be said that the government intervenes in the pork industry, but the yellow and white feather and beef industries are relatively left behind. However, beyond that, food safety reform has been at the top of the country’s political agenda. Doing business in the meat industry in China, according to Arron Hoyle, Principal of Black Dragon Advisors Ltd, is about learning to unlearn or to eat or be eaten. Sharing his experience in the country, Mr Hoyle said: “We need to have liquidity or cash in the meat business. We have also to be aware of policies of the government. And don't operate where you are truly not committed or focused,” he said. He also recommends not managing the business with executives that are a ‘1000 miles away’ with no understanding of the market, and “ownership has to understand the business and let those who know it, run it.”
|China to levy five-year anti-dumping, anti-subsidy duties on US DDGS|
[16 January 2017] China’s Ministry of Commerce said it has decided to impose both anti-dumping and anti-subsidy duties on imports of US distiller's dried grains (DDGs) for five years, effective Jan 12. The anti-dumping duties are mostly set at 50.0%, with anti-subsidy duties at about 11.2%. The levies follow an investigation launched in early 2016 and preliminary rulings from September when importers were required to place deposits with Chinese customs at 33.8% and over 10.0% respectively of the import value. Data from China’s Ministry of Agriculture shows that the nation imported 3 million tonnes of DDGS in the first 11 months of 2016, down 53.2% from a year earlier.
|Indonesia releases import recommendation for more than 150k feeder cattle |
[16 January 2017] Indonesia’s Ministry of Agriculture has released a recommendation to import 155,950 heads of feeder cattle for this year. I Ketut Diarmita, Director General of Livestock & Animal Health said the imported stock is to help anticipate the surging demand of beef during Ramadhan and Eid Fitr. “We have calculated that we will need around 300,000 ready-to-slaughter cattle during the festivals,” he said. Meanwhile on local stock, Mr Diarmita said the country has 391,828 heads of ready-to-slaughter cattle for the period of January-May 2017. The figure is equivalent to 78,366 tonnes of beef.
|5 more Kenny Rogers outlets to open in Malaysia|
[16 January 2017] Berjaya Roasters (M) Sdn Bhd, a subsidiary of Berjaya Corp Bhd (BCorp), plans to open five Kenny Rogers Roasters (KRR) outlets in Klang Valley, Malaysia this year, said Deputy General Manager Esther Woo. Berjaya Roasters is the franchise holder for KRR, reported The Star. “We have seen steady increase in our customer base since September last year. Given this trend, BCorp plans to open up five outlets in the Klang Valley,” Mr Woo said after launching KRR’s new loyalty card. Diners can now enjoy more rewards with the loyalty card called Timeless Treasure KRR for their birthdays, weekly treats and several other promotions. KRR positions itself as a restaurant selling healthy rotisserie roasted chicken meals.
[16 January 2017]
Phase feeding popular for performance, profitability
Animal protein producers in the region are taking advantage of the phase feeding system on their farms. They have adopted three, four or even weekly phases for optimum performance and profitability. Somboon Watcharapongphan, Secretary, Thai Broiler Association, told Asian Agribiz that phase feeding is popular among broiler farms as it helps better performance. Broiler farms observe three phases, with the first phase focusing on protein and less on energy, and the third phase focusing on energy. His farm, Mitrthamkankased, contracted by Betagro, raises some 500,000-600,000 broilers. They reach an average of 2.7kg in 40 days, with an FCR of around 1.6.
Philippine pig farmers are slow to adopt multiphase feeding system
While phase feeding in the Philippines is more accepted on poultry farms, pigs producers are still hesitant to implement it. Nutrition consultant Amie Galban told Asian Agribiz farms still prefer the conventional method because they think phase feeding is tedious and complicated, as it would mean a change in feeds almost every two weeks. “Farm hands are usually the ones complaining about this,” she said. She added that the buildings are not designed for phase feeding systems. “Many are too big that farm workers only want to have one feed type per building. The age of the pigs inside can vary by two to three weeks. They get confused when there are different feed types in one building.”
Farmers in Indonesia need better understanding of system
Many independent farmers in Indonesia still apply only one phase, the starter feed, or two phases, pre-starter and starter. “They find it complicated. Some others said it increases their costs,” Syahrir Akil, General Manager, Bintang Sejahtera Bersama, a subsidiary of Charoen Pokphand (CP) Indonesia, said. Some farmers avoid the multiphase system because they choose to harvest early at day 28 to meet market demand for small birds. Where broiler contract farming is concerned, many companies want their farmers to apply the system. Layers generally practice pre-starter, starter, grower, pre-layer, layer 1 and layer 2 feeds, said Dr Akil, however, “it’s hard to find farmers who apply this completely”.
Fine tuning feed for better meat quality
Phase feeding is common in China. According to William Wang, Technical Sales Manager, Lallemand Animal Nutrition, a France-based manufacturer of yeast and bacteria products, as more producers venture into vertically integrated businesses, they switch their focus from feed conversion ratio to improved meat quality and food safety with phase feeding. Some producers may have more specific phases in their production. Feed millers and additives suppliers provide customised solutions for them. Fujian Sunner Group, the largest white-feather broiler integrator in China, also offers four phases for breeders, commercials and chicks. Breeders receive more protein when brooding and calcium supplement when laying.
Feedmills forge ahead with variety feed products despite challenges
Phang Yuen Fun, Technical Service for Asia, Merial, said farmers in Malaysia understand that phase feeding is profitable as it is adjusted to body weight and nutrient requirement. However, feedmills see it as a challenge. One of the bigger challenges is at the feedmill. Broilers start with crumble and move on to pellets. In the intermediate stage, however, the short pellet is introduced. “Producing the short pellet can take up a whole production cycle in their plant, resulting in some losses in productivity, but they do it anyway because there is demand from farmers,” said Dr Phang. “Farmers can see consumption and good daily weight gain, and are willing to pay extra for the product.”
|Sri Lanka’s Pussalla modernises to maintain top spot|
[13 January 2017] Pussalla Meat Producers Pvt Ltd produced 170,000 parent DOC for the local market and 180,000 for export last year. “We hope to increase our total breeder DOC production to 450,000 chicks this year,” Managing Director Dilshan Wewita told Asian Agribiz. It will soon complete its hatchery expansion, enabling it to produce up to 3 million broiler DOC by Q1 2017. “To support this we have already completed two new all-in all-out grower farms and a new laying unit,” he said. Pussalla has eight PS farms for both growers and layers, totalling 300,000 birds, and producing 3 million DOC/month, making it the market leader in the country. The company also rears 16,000 D-line grandparents.
|Thai Union sets up wholly owned subsidiary in China|
[13 January 2017] Thai Union Manufacturing has divested 50% of its shares in Century (Shanghai) Trading to Century Pacific Food Inc and received USD 623,594 in December 2016. After selling the shares, TU set up a wholly owned subsidiary, Tai Wan Sheng Aquatic Trading (China), which will import and sell TU’s complete portfolio of seafood brands and products in China. It will also develop new products as required by the Chinese market. TU said that its new subsidiary will “participate in growing the market for frozen, chilled and premium ambient seafood and will develop an organic presence in China.” It will also build a platform for growth and help the company reach its long-term revenue target of USD 8 billion by 2020.
|Monsanto Indonesia targets 7000t of corn seed production|
[13 January 2017] Monsanto Indonesia targets to produce 7000 tonnes of corn seed this year. Of the figure, 5000 tonnes will be for the domestic market, while the rest is scheduled for export to the Philippines and Vietnam. Ganesh Pamugar Satyagraha, President Director said weather anomaly will persist this year, but the company is optimistic that its corn seed production and sales for domestic market will be much better than last year. Monsanto Indonesia produces different types of hybrid corn seeds, as well as biotech corn seeds. Last year the company targeted to produce 1000 tonnes of biotech corn seeds.
|China reports more cases of H7N9 avian flu|
[13 January 2017] China reported four new human cases of H7N9 avian influenza, including one in a child from Hong Kong who had recently travelled to Guangdong province. On Wednesday, the Shanghai Municipal Health and Family Planning Commission said a 50 year-old man was being treated for H7N9 infection, while a Chinese media report said there was a new case of the disease in a 41 year-old man from the city of Foshan in Guangdong province. The Food and Agriculture Organisation revealed that since 2013, there have been 931 cases and 355 deaths from avian flu. Since January 4, there have been 106 cases reported. The update said that poultry markets in Jiangsu province reported a high contamination rate in December, with 15.79% of environmental specimens testing positive for H7.
|Multivac acquires 49.9% share of TVI|
[13 January 2017] Multivac has acquired a 49.9% share in TVI, the market leader in meat-portioning machines and complete portioning lines. By acquiring the share, Multivac is taking a strategically important step in being able to offer in future complete production lines from one source. In future TVI will use Multivac's strong sales and service network and thereby develop new sales markets. TVI and Multivac are convinced that they can be even better partners to their mutual customers. Particular focus will be placed on driving forward the integration and linking of TVI's products and Multivac's packaging machines into complete lines with the highest possible level of automation, efficiency and machine availability.
|Thailand’s pork prices expected to increase slightly in Q1 |
[12 January 2017] Farmgate price of live pigs is expected to rise marginally to USD 1.66-1.82/kg in Q1 in Thailand, compared to USD 1.54-1.74/kg in Q4 of last year, thanks in part to government measures to spur consumer spending, Surachai Sutthitham, President of the Swine Raisers Association of Thailand, told Asian Agribiz. Pork prices have been on a downward trajectory in the second half of 2016 due to oversupply of pork and slowing consumer demand amid low agricultural prices. Some pig farmers also decided to postpone raising pigs last year in the face of continued lower pork prices, Mr Surachai added. “Thailand will see a slight oversupply of pork in Q1 this year and pork consumption will grow slightly or will be stable,” he said. Meanwhile, the association is finding ways to export more live pigs to southern China and Cambodia, Mr Surachai said.
|Vietnam seeks official pig trade with China |
[12 January 2017] With the downtrend in live pig prices in Vietnam due to oversupply that allegedly resulted after Chinese traders stopped buying pigs from Vietnam. The Ministry of Industry and Trade, in cooperation with the Ministry of Agriculture and Rural Development (MARD), has proposed a visit to China to negotiate with their counterparts so that Vietnam can officially export pork to China. MARD Minister Nguyen Xuan Cuong said that if an agreement can be signed, Vietnam can legally export some 1-1.5 million tonnes of pork to the country. Vietnam’s Department of Livestock Production said that in 2016, the country shipped some 600,000 tonnes of live pigs illegally to China.
|Indonesia records decreased fishmeal imports|
[12 January 2017] Indonesia’s Ministry of Fisheries & Marine Affairs has announced that fishmeal imports from January-September 2016 was only 4.1 million tonnes, which is far below the 29.9 million tonnes during the same period a year earlier. Slamet Soebjakto, Director General of Aquaculture said: “Our program to combat illegal fishing has been successful so far. We have a huge supply of raw material for fishmeal.” Mr Soebjakto also said that during the period, independent fish feed production by farmer groups reached 1.1 million tonnes, over 966,137 tonnes a year earlier.
[12 January 2017]
Wet markets remain the norm, but processing is growing in Asia
Although wet markets remain the norm in most Asian countries, there is a significant growth in modern retail trade in Asia, signalling a growing market for primary and further processing. Still, most Asians still prefer to shop in wet markets, even in urban areas where supermarkets and meat shops are on the rise. The Asian Agribiz team sought out why.
Serving different segments
In Thailand and Indonesia, supermarkets and wet markets serve different market segments, thus modern trade has not had much effect on meat sales in traditional markets. Tongchai Louharuangchaiyos, owner of Jae Kim pork shop at Bangkok’s Yingcharoen market told Asian Agribiz his buyers are mostly retail merchants, who buy pork and cook it for sale. On the other hand, modern retail trade targets mostly individual consumers, who buy pork for their own consumption. Similarly in Bali, the biggest pork market in Indonesia, the expansion of supermarket chains do not have much impact on pork sellers in wet markets, whose buyers are made up mostly of caterers and people who runs food stalls.
Although wet markets still dominate in most Asian markets, retailers there understand the growing competition from modern retail, and they are adjusting by offering more products and services. In addition to fresh pork, it is common to find value added products like ready to cook marinated meats, sausages and cured meats in wet markets today. Others now offer additional butchering services and serve cut ups and portions. Wet market vendors are also increasingly focusing on product quality. In Kunming, China for example, Zhou Xiaoli has turned to getting her pork from a modern slaughterhouse that results in better meat in terms of appearance and texture. Since free-range pigs are normally the native breeds with black hair, some retailers keep a little hair on the skin of pork to demonstrate that their products are ‘premium.’
Warm meat still preferred over chilled
Notwithstanding the growing calls for food safety, many Asian consumers continue to prefer ‘warm’ meat over chilled and frozen meat, and this is true especially of pork meat. Leonardo Manrique, who runs a meat stall in a wet market in Quezon City, Philippines, told Asian Agribiz that many consumers still believe that ‘warm’ fresh meat sold in wet markets is ‘fresher’ than chilled and frozen meat, which many think has been slaughtered and stored for some time before being sold. Nevertheless, as calls for food safety gain ground, some wet markets and even vendors are now installing storage facilities like freezers to help minimise meat spoilage. Mr Manrique noted however that most vendors sell the meat they have daily.
Lower prices continue to draw consumers
The cost factor is why many Asian consumers still buy their meat from wet markets. According to Leonardo Manrique, meat prices at supermarkets is normally 25-50% higher, and sometimes even more, than in wet markets. “That is a significant amount,” he told Asian Agribiz. Romeo Alfonso, a pig producer and pork seller in Ubud, Bali, Indonesia said consumers prefer to buy at wet markets because they can bargain on the prices. Meanwhile, wet market consumers prefer to touch and smell the meat they buy and they can do this is wet markets, Zhou Xiaoli, owner of a free-range pork stall in the largest wet market in Kunming, China told Asian Agribiz. In markets like Vietnam, where many consumers still shop for their food daily, wet markets remain the shop of choice.
|Singapore allows more frozen chicken exports from Thailand |
[11 January 2017] Singapore's Agri-Food and Veterinary Authority has allowed 20 Thai chicken factories to export frozen chicken to the island republic. Anan Sirimongkolkasem, President of Thai Broiler Processing Exporters Association, said the new permission reflects growing confidence in Thai poultry standards. Meanwhile, Gen Chatchai Sarikulya, Minister of Agriculture and Cooperatives said Thailand is expected to export at least 5,000 tonnes of frozen chicken to Singapore in 2017, valued at USD 11.2 million. Thailand exported 16,000 tonnes of livestock products to the island republic in 2016, including cooked chicken meat and chilled and frozen chicken. In all, Thailand is projected to export 750,000 tonnes of chicken meat in 2017, valued at USD 2.69 billion.
|Indonesia’s Ag Ministry says no corn imports in 2017|
[11 January 2017] Indonesia’s Agriculture Ministry will stop corn imports this year. Triastuti Andajani, Head of Feed Ingredients of the Directorate General of Livestock & Animal Health said to meet demand for animal feed, the ministry will increase the corn planting area in the country by as much as 2 million ha, and partner with feed millers to absorb all the harvest. The Indonesian Feed Producer Association estimated animal feed consumption this year to reach 18.5 million tonnes. “We need around 9.25 million tonnes of corn for feed. Home-mixers need around 3.6 million tonnes. So the total is around 1.1 million tonnes per month,” Ms Andajani explained. Last year corn imports dropped to 884,679 tonnes, or a 68% decrease from 2015.
|CITIC takes controlling stake in McDonald's China and Hong Kong franchises|
[11 January 2017] CITIC Ltd, CITIC Capital Holdings, The Carlyle Group and McDonald's Corp have formed a new company that will act as the master franchisee for McDonald's in mainland China and Hong Kong for 20 years. The newco will acquire the business for USD 2.08 billion, giving CITIC and CITIC Capital, units of China's state-owned conglomerate CITIC Group, a controlling stake of 52% in the entity, with Carlyle and McDonald's taking 28% and 20%, respectively. The deal is expected to close in mid-2017, when McDonald's will have more than 1750 company-owned stores in China and Hong Kong refranchised. It currently has 2640 restaurants in the region, and the new franchisee intends to add more than 1500 outlets over the next five years.
|Financial toll from outbreak of bird flu in Korea reaches USD30m|
[11 January 2017] South Korea said the financial toll from the slaughtering of more than 30 million birds nationwide since November from the worst-ever bird flu outbreak is almost USD 830 million. Until the first week of January, the culled count came to 30 million, including 25.82 million chickens and 2.33 million ducks, the Agricultural Ministry said. That represents 18.3% of the total poultry raised domestically. The number of culled layers reached 32.1% of the total, causing the price of eggs to rise sharply. Early December, the price for a 30-egg pack reached USD 4.78, surpassing the five-year average price of USD 4.75 for the first time. Eggs have become a rarity and any left on the shelf is sold at USD 7.05.
|Carabeef commands high price in Indonesia|
[11 January 2017] Carabeef or buffalo meat imported from India is set to be sold in markets in Greater Jakarta in Indonesia for USD 4.87-5.25 per kg. However, the meat is being sold by meat sellers at around USD 6.00-7.50 per kg. “This should not happen,” said Amran Sulaiman, Agriculture Minister. “We imported the meat to offer a cheaper meat alternative.” Aan, a meat seller in Senen market in Central Jakarta said that he sells carabeef at USD 6.45 per kg if it is fat-free. “We can sell the meat at USD 4.87 per kg, but consumers don't want to buy it as the fat is still included. That’s why we separate the fat, sell the lean meat at a better price and sell the fat at USD 1.50 per kg,” Mr Aan said.
|Cambodia cautious over bird flu|
[11 January 2017] Cambodia’s Health Ministry urged people to be vigilant over H5N6, H7N9 and H5N1 avian influenza viruses in light of recent outbreaks in some Asian countries, China’s Xinhua news agency reported. “Currently, H5N6 and H7N9 avian influenza viruses have not been found in Cambodia, but the country had detected 56 cases of H5N1 virus that left 37 people dead between 2005 and 2014,” the Ministry said in a statement. The ministry said travellers to areas affected by avian flu viruses should avoid poultry farms, contact with animals in live-bird markets, poultry-slaughtering areas, and contact with surfaces that appear to be contaminated with bird or other animal faeces.
|Indonesia regulates broiler supply & demand|
[10 January 2017] Indonesia’s Agriculture Ministry has released the revision of the regulation of chicken supply, distribution and monitoring, which is expected to protect independent farmers from unfair competition. Local production of breeding and commercial chicken and imports of breeding stock will be calculated based on the national production plan. Of the total commercial broiler DOC production, 50% has to be allocated for independent producers/farmers. The quality of the DOC has to be certified by a product certification agency (LSPro) appointed by the Agriculture Ministry. Finally, a producer of more than 300,000 birds/week has to set up a processing plant and a cold chain facility. Sigit Prabowo, Chairman of the National Poultry Farmers Association (PPUN) said: “We appreciate the revised regulation and we will monitor the implementation.”
|Sri Lanka to produce 88% of broiler parent production in 2016|
[10 January 2017] Sri Lanka is working towards self-sufficiency in broiler parent production. Last year the country expected to supply 88% of the total parent bird requirement, up three percentage points from the year before. Parent imports, meanwhile, dropped 22% between 2014 and 2015 to 176,674. This was expected to further drop to 144,181 in 2016, according to estimates from the Department of Animal Production and Health. In addition to this, the island is HPAI-free, a pre-requisite for exporting live birds. Broiler DOC exports jumped 120% from 2014 to 330,000 in 2015. A spokesperson from the department told Asian Agribiz that its 2016 poultry sector report is due in March 2017.
|Guangdong Wens 2016 pig sales up 38%|
[10 January 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said it sold 17.13 million finisher pigs valued at USD 5.26 billion in 2016, up 11.57% and 37.74%, respectively, from a year earlier. Average sales price stood at USD 2.67/kg during the year, up 20.26%. In December alone, the average price was USD 2.45/kg, up 2.49% from the previous month and ending a consecutive decline from June. Wens targets to produce 27.50 million pigs a year by 2019.
|Competition in Thailand’s retail food business to remain intense|
[10 January 2017] Over the past decade, Thailand’s retail food sector has been one of the fastest-growing in the world and this sector has diverse store layouts ranging from wet markets to hypermarkets. In 2015, total food retail sales from organised retail chain stores reached USD 52.56 billion or 62.3% of total retail sales, according to the USDA GAIN report. Convenience stores showed the biggest number of outlets (13,322) followed by supermarkets (463) and supercentre/ hypermarkets (376). Meanwhile, competition in the retail food business is expected to remain intense. Most investments will aim to improve and modernize existing stores, as well as develop store formats that are suited for urban areas and consumer preferences.
|Indonesia’s Ag Ministry to promote Bali Beef|
[10 January 2017] Indonesia’s Agriculture Ministry through its Directorate General of Livestock & Animal Health has said that it plans to promote premium beef from Bali cattle with the Bali Beef brand, starting 2017. I Ketut Diarmita, Director General of the directorate said: “We want to add value, so Bali cattle farmers will get better profits. In this program, the farmers will no longer sell live cattle, but we will support them in selling fresh meat.” Mr Diarmita said the directorate has identified that Bali cattle is a promising livestock to be developed further as the animal is well adapted to the local climate, is easy to breed, and produce quality meat. Based on the directorate data, there are 553,582 heads of Bali cattle currently in Bali province.
|Provimi launches Cinergy in Vietnam for antibiotic-free farming|
[10 January 2017] Provimi Vietnam Co Ltd recently organised its first international dialogue on antibiotic growth promoters in Vietnam. It also introduced the herbal additive Cinergy as a solution for antibiotic-free livestock farming. Cinergy increases feed intake, and decreases diarrhoea and mortality in farmed animals. “The results of tests and experiments on Cinergy showed that there’s a decrease in diarrhoea and general medical treatment in farmed animals in the absence of antibiotics,” said Chê´ Minh Tu'ng, head of Poultry Husbandry, Nong Lam University. Provimi’s laboratory in Vietnam is working with Vietnamese authorities to control antibiotic residue in feed and meat products, and supplying antibiotic-free solutions and alternatives for the Vietnam market.
|De Heus Vietnam hits milestone of 1m tonnes in feed production|
[09 January 2017] Royal De Heus reached a milestone in Vietnam after producing and delivering 1 million tonnes of feed last December. “We may not be the first, but we definitely reached the 1-million mark the quickest in Vietnam,” Gabor Fluit, De Heus Asia’s Business Group Director, told Asian Agribiz. De Heus has maintained an impressive growth in Vietnam in the last seven years with seven feedmills, 1200 employees, experts and terminal storage across the country. “We almost topped our capacity every year in the last five years. That’s why we built and opened one plant yearly. The years 2015 and 2016 are exceptional as we opened two plants per year,” said Marketing Manager Gideon Hung.
|DA to link local corn farmers with Vitarich|
[09 January 2017] The Department of Agriculture's (DA) regional field office in Davao City is working to link local corn farmers directly with Vitarich Corporation to supply corn for its new poultry feedmill in the city that is targeted to be operational by Q3 this year, said a report by Business World. Under the agreement that is currently being hammered out between the DA and Vitarich, the former will serve as a consolidator of corn produced by local farmers who will initially be under contract to sell half of their produce at a premium price to Vitarich. Mr Oñate is hopeful that such agreements will eventually eliminate middlemen and allow farmers to make better profits from their produce. He said his office is looking to forge similar agreements with other agribusiness companies.
|KFC Indonesia to open more outlets in eastern Indonesia|
[09 January 2017] Fast Food Indonesia, the operator of KFC in Indonesia, targets its income in 2017 to increase 10% to USD 402 million. To achieve this target, Fast Food will open 30 new outlets mostly the free-standing type, and 20 KFC Box outlets. “We will open the outlets in new and existing cities, but most of the new outlets will be in eastern Indonesia,” said Justinus D Juwono, Director. “In 2017 we will allocate a capex of USD 26 million to open the new outlets, expand distribution, add new distribution vehicle, and renovate 45 5-year old existing outlets.” Currently Fast Food operates 559 outlets throughout the country. For its 2016 financial performance, the company is optimistic to book an income of USD 365 million, a 7.8% increase from the previous year.
|Wens sees less fluctuation in China’s pig production|
[09 January 2017] There will be less fluctuation in China’s pig production due to higher thresholds of the sector amid environmental protection, said Guangdong Wens Foodstuff Group, China’s largest pig producer. “The so-called Pig Cycle is mainly due to backyard farms’ fast-in and fast-out system, but now it’s not easy for them to do that with higher thresholds of environmental protection,” Board Secretary Mei Jinfang told investors during a road show. The higher thresholds will keep the sow and pig stocks low, thus maintaining the pig prices at a good and stable level. “It’s a good opportunity for us,” Mr Mei said. According to him, Wens’ pig production will see an average annual growth of about 15%.
|Indonesia to increase seabass production|
[09 January 2017] Indonesia’s Fisheries & Marine Affairs plans to build three offshore aquaculture facilities in 2017 to produce an additional 1500 tonnes of seabass annually. Slamet Soebjakto, Director General of Aquaculture said the facilities will be built in Sabang of Aceh, Karimun Jawa of Central Java and the southern coast of Java between Cilacap and Pangandaran, with a total investment of USD 10.5 million. “The investment will cover automatic feeder machines, fish nets and costs of establishing floating bases and docks which will be adopted from the Norwegian model,” he said. The facilities will be jointly operated by Indonesia’s state-owned fishery company PT Perikanan Indonesia and local fishermen associations.
|India’s Odisha culls poultry over AI outbreak|
[09 January 2017] An eastern Indian state has ordered the culling of more than 2500 chickens and other poultry after four dead crows and three dead poultry tested positive for the highly pathogenic H5N1 virus. The avian influenza (AI) virus was confirmed at Keranga village, about 35km from Bhubaneswar, the capital of Odisha state, days after dozens of crows and chickens were found dead. More than 30,000 birds were culled in a similar outbreak in the region in 2012. “We have issued an advisory to follow immediate measures to complete culling operations, surveillance and sanitization in the infected area,” said Bishnupada Sethi, Commissioner-cum-Secretary of the state’s Fisheries and Animal Resources Development Department as quoted by Reuters.
|Sri Lanka’s Pussalla aims to be hub for producing, exporting parent DOC|
[06 January 2017] Pussalla Meat Producers Pvt Ltd, which raises the Hubbard breed, operates the largest grandparent farm in Sri Lanka. It started exporting parent stock in 2015. By 2016 the company was able to export half its production to south Asian countries, such as Bangladesh, Myanmar and Nepal. “Sri Lanka is disease free. We took that opportunity to export our products,” Chairman Philip Wewita told Asian Agribiz. Pussalla is in talks with Hubbard to make Sri Lanka its hub for producing and exporting parent DOC. This will reduce production costs for importers. “The African market is opening up too. Ghana and Zimbabwe are likley to be our new markets,” son Dilshan said.
|Thailand approves three-year, tariff-free soybean import plan|
[06 January 2017] The Thai government has approved an unlimited soybean import quota with zero tariff for a period of three years (2017-2019). Natthaphorn Jatusriphithak, Advisor to the Commerce Minister, said that the plan has been approved within the framework of the World Trade Organization and soybean imports will be managed on an annual basis. Despite the approved policy, soybean importers are still required to purchase domestic soybean at government determined prices. Importers have to buy domestic soybean at USD 0.43 per kg plus USD 0.06 for the purpose of vegetable oil production, USD 0.44 per kg plus USD 0.06 for animal feed production and USD 0.50 per kg plus USD 0.06 for food production. Thailand produces around 50,000-60,000 tonnes of soybean a year, representing only 2% of the annual soybean demand of almost 3 million tonnes.
|QL Trimitra ventures into food truck business|
[06 January 2017] In 2016 QL Trimitra, a joint-venture company between Malaysia’s QL Resource Bhd and Indonesia’s CV Trimitra, ventured into the food truck business. It has four trucks popular hangouts in Greater Jakarta. It is also actively involved in sales activities conducted by the Indonesian Food Truck Club. Carrying the QQ brand name, the trucks offer ready-to-eat products namely chicken slices, balls, satay, and tulip (made of chicken wings). “At an event in Jakarta in 2016, our food truck was recognised as the best performer by a renowned banking company, confirming that our chicken-based products are well received by consumers,” Cecep Muhammad Wahyudin, QL Group Indonesia Director told Asian Agribiz.
|San Miguel Pure Foods confirms USD 1.5 billion expansion|
[06 January 2017] San Miguel Pure Foods Co Inc (SMPFC), in a disclosure to the Philippine Stock Exchange, confirmed a report by the Philippine Daily Inquirer that it will spend some USD 1.5 billion until 2018 to expand its traditional food business due to growing demand. The bulk of its capital expenditure will be spent on increasing capacities and will include the construction of meat processing plants in Cavite in Luzon, Cagayan de Oro in Mindanao and Cebu in the Visayas, which will produce hotdogs, chicken nuggets and other processed meat products. SMPFC also said that it is currently in discussions with Hormel Foods on business growth opportunities for the Spam brand.
|Shanghai Maling to spin off feed, domestic cattle farming businesses|
[06 January 2017] Chinese food operator Shanghai Maling Aquarius Co said it will sell seven units to two sister companies, so as to exit the feed business and domestic cattle farming operations. Maling is a meat subsidiary of China’s state-owned food and drink conglomerate Bright Foods. In early December, the company completed the acquisition of a 50% stake in New Zealand’s meat processor Silver Fern Farms for more than USD 180 million. “The spin-offs will help develop our core businesses, namely the focus on branded beef sales, the acquisition of overseas cattle resources and the development of a pork value chain,” Maling said.
|Australia’s live cattle exports to Indonesia back to normal|
[06 January 2017] Live cattle exports to Indonesia has “normalised” after disruptions from changes in import policy. According to the latest LiveLink report published by LiveCorp and Meat and Livestock Australia, feeder and slaughter cattle exports increased in November with 67,000 cattle shipped to Indonesia. An additional 20,000 cattle were expected to be exported to Indonesia in December, meaning total exports to Indonesia for 2016 would reach 555,000 cattle, a 10% drop on 2015's number. “High cattle prices had been a welcome outcome for our partners in the production sector, but it has also affected profitability in the supply chain and seriously compromised the affordability of Australian beef for consumers in countries including Indonesia,” the Weekly Times quoted Simon Westaway, Australian Livestock Exporters’ Council Chief Executive.
|CPF to spend USD51.5m to buy stake in Poland’s SuperDrob|
[05 January 2017] Thailand’s Charoen Pokphand Foods (CPF) said it will spend around USD 51.5 million to acquire a 33% stake in SuperDrob Zaklady Drobiarsko – Miesne S.A. (SuperDrob), a leading agro and food company in Poland. CPF signed a preliminary share subscription agreement with SuperDrob and preliminary share purchase agreement with its existing shareholders on December 30. SuperDrob's main products registered as fresh poultry, flavored poultry, as well as sausages and ham under its own brand. Its clients include wholesalers, retailers, hotels, and restaurants both in Poland and foreign countries including the UK, France and China. Adirek Sripratak, CEO of CPF, said this transaction “will mark the first step of CPF in poultry operations in the European country.”
|Iran exports USD810m worth of livestock, poultry products|
[05 January 2017] Iran’s Deputy Agriculture Minister, Hassan Rokni said livestock and poultry products worth USD 810 million were exported from Iran in the first eight months of the current Iranian year which began March 20, 2016. Mr Rokni said around 51,000 tonnes of poultry meat and offal (liver and gizzard) and 477,000 tonnes of milk were exported during the period. “The volume of poultry exports was higher than the same period in 2015. Meanwhile, milk exports also increased by 3%," he told Mehr News Agency. However, Mr Rokni said egg exports declined due to challenges caused by avian influenza. “Egg exports plunged from 54,000 tonnes to 37,136 tonnes.”
|Bestworld Perkasa to expand product range|
[05 January 2017] Bestworld Perkasa, a subsidiary of Malaysia-based Bestworld, has been growing as a reliable meat processing equipment supplier in Indonesia. Elwein Ng, Managing Director told Asian Agribiz in Jakarta that the company enjoys a good market share. “We can supply complete lines for our customers. In addition, customers who buy our machines will get free consultation,” he said, adding that the other boost for the company is that many Indonesian meat processors are now looking for Asian-made machines. On business expansion, Mr Ng revealed that the company wants to expand its business to seafood processing and cold chain equipment. The company also plans to develop its market share in plastic casings for sausages, packaging and printing for packaging.
|China reports more H7N9 avian flu cases|
[05 January 2017] Two of China's provinces reported two new H7N9 avian flu cases over the past few days, raising the number of infections in the fifth wave of disease activity to 21. On January 1 the government media reported a case in Guizhou province in south-central China. The second case was reported in Jiangxi province in south-eastern China. The new cases lift the overall global total from H7N9 since it was first detected in humans in 2013 to 829, according to a case list kept by FluTrackers.
|Indonesia misses aquaculture production target due to rainy season|
[05 January 2017] Indonesia’s Ministry of Fisheries & Marina Affairs has said that aquaculture output in 2016 will only reach around 15.8 million tonnes, missing the target to produce 19.46 million tonnes. Slamet Soebjakto, Director General of Aquaculture said the rainy season which affected temperature and pH of aqua farms was the main reason. “We expect the condition in 2017 to improve. So in 2017 we target the production of aquaculture to reach 21.9 million tonnes, with shrimp as the main commodity,” said Mr Soebjakto, adding that many investors will invest in the shrimp farming sector.
|QL Trimitra plans production of RTE, RTC products in 2017 |
[04 January 2017] QL Trimitra, the joint-venture company between Malaysia’s QL Resource Bhd and Indonesia’s CV Trimitra, which has an integrated broiler business in Indonesia, aims to be a main player in the chicken-based food industry. “We are now restructuring our internal team. We also recruited more people with background and experience in the food industry,” Cecep Muhammad Wahyudin, QL Group Indonesia Director told Asian Agribiz. He revealed that its r&d team started product (ready-to-eat/RTE & ready-to-cook/RTC products) development in early 2016. “We plan to start mass-production in 2017, targeting modern and traditional markets in the country.”
|Ynsect is upbeat about Asia’s market for insect feed|
[04 January 2017] While insect protein could make its way into aquafeed by July 2017 in Europe, one French-based producer of the ingredient, Ynsect, is optimistic it could take off in Asia too. “Shrimp production is big in Asia. We have good results on growth and health of shrimp and tilapia fed with our product. We are convinced the market in Asia for insect protein in aquafeed will be huge,” Chairman and CEO Antoine Hubert told Asian Agribiz. Last year Ynsect exported to Asia a batch of tenebrio molitor protein, or TMP, a de-fatted protein meal made of mealworm larvae. “We are progressing well with discussions with leading companies in the region [in order to export] larger volumes of TMP,” he said.
|CJ Indonesia to integrate its poultry business |
[04 January 2017] There is no guarantee that the poultry and feed industries in Indonesia in 2017 will better than in 2016, Tevi Melviana, Sales & Marketing GM of CJ Feed Indonesia told Asian Agribiz. He said the government will continue to push inflation below 4%, which means the profit margin will be thin. Besides, associations in the industries will be very carefull to conduct meetings to avoid cartel accusation by the Business Competition Watchdog Agency (KPPU). "All the conditions will push industry players to vertically integrate their businesses. We, CJ, will also progress with integration. Currently we already have poultry breeding, feed and primary processing businesses. In the near future, our Food Business Unit will also expand in Indonesia," said Mr Melviana.
|Live pig price in Vietnam plunges to two-year low|
[04 January 2017] Price of live pigs in Dong Nai province, the hub of pig production in Vietnam, has plunged to a two-year low of USD 1.45/kg on the back of an oversupply of pigs, which the province’s producers are now in a rush to unload. “Dong Nai's swine herd is now at 1.8 million heads, up 38% from 1.3 million in the same period last year, leading to an oversupply situation that has dragged prices down, said Dong Nai Livestock Association Chariman Nguyen Tri Cong. The current price is below the average production cost of USD 1.72/kg. Industry players say the market shows no sign of recovery and has warned of an industry collapse if the present trend continues.
|Telangana wants more support for poultry industry|
[04 January 2017] India’s Telangana government has pledged to fight for agriculture status for the poultry industry. E Rajender, the State Finance Minister said the Telangana government had written to the central government to recognise the poultry business as part of agriculture. “This will establish more support from the government, especially in times of crisis,” he said. “When the GST comes into force in April, we want zero tax for poultry items. We are talking to finance ministers of other states and seeking their support for this demand,” he told The Hindu.
Meat trends to watch in 2017
[03 January 2017]
The Asian Agribiz team found some interesting developments within the meat sector in 2016 and these are bound to flourish in 2017. The upscaling of meat consumption we found, are mainly driven by a change in lifestyle as a result of urbanisation and higher incomes. Some of our findings are listed below.
Prepacked, branded meat make headway in Asia
Consumers are becoming more accepting of chilled and frozen meat, but at different paces in various countries. While some consumers have embraced prepacked, precut and preweighed meat, others continue to cherry-pick. In mature Asian markets, prepacked chilled and frozen meat have been making progress. In Japan, South Korea, Singapore, Hong Kong, Malaysia, Thailand, Indonesia, and China, it is typical to see chilled and frozen meat sold prepacked in supermarkets and meat shops. While this is mostly true in urban centres, better cold chain logistics have made these value-added products available even in areas outside of cities.
Demand for portioned cuts picks up in Asia
The demand for portioned cuts in Asia is on the rise, driven by growing incomes and changing lifestyles. In response to this retailers have come up with a variety of cuts to satisfy their customers. Driven by greater awareness for food safety, growing incomes, and changing lifestyles and family size, Asian consumers’ preferences, particularly those in urban areas, continue to evolve. There is now a clear trend towards portioned meat cuts to meet consumers’ convenience and cooking preferences.
Asian producers focusing more on packaging
Ready to eat (RTE) products in Asia is where taste, convenience and technology meet to provide quick and hassle free meals. While making strides in ensuring quality meals, the industry is also driving changes on the packaging front for more attractive, safer and cost effective products. Consumers across Asia, we learnt, purchase RTE meals on a regular basis. The packaging side of the business, is driven by the needs of the industry. A longer shelf life, wastage along the food chain, keeping food fresher and keeping off preservatives have pushed producers to learn the latest in packaging technology, material and processes.
Lifestyle changes transform cured meat sector
Like manufacturers of other processed meat products, cured meat producers in Asia are eager to stay updated with current market trends. Changing lifestyles across Asia has pushed for innovation in almost all aspects of the sector. Asian cured products are traditional delicacies. Yet consumers demand that the products move with the times while retaining their unique flavours and sentiments. Health reasons and changing lifestyles have propelled changes in the sector, and producers in the region have responded by using better quality raw materials and cutting back on salt and preservatives.
Innovation leads value-added seafood category to big gains
Asian consumers are looking to seafood as an alternative protein source but they demand convenient, healthy and delicious products. The value-added seafood industry across Asia continues to grow, backed by lifestyle changes, a growing middle class and consumers who are health conscious. In Indonesia the industry is expected to develop significantly in coming years. In the last three years, the industry grew at around 10% year-on-year.
Producers satisfy epicurean cravings with premium sausages
Generally regarded as healthier and leaner, the demand for premium sausages is expanding in Asia as upscale restaurants flourish and consumers cultivate expensive tastes. Producers of premium sausages are not cutting back when it comes to ingredients and cuts of meat. Today choice meat cuts and a blend of tasty ingredients have created what is called premium, or gourmet sausages.
|The future of TPP to be addressed at AP2022|
[30 December 2016] At Asian Agribiz's Animal Protein in Asia 2022 conference in Bangkok, Thailand this January, Michael Every, Head of Financial Markets Research for Rabobank in Hong Kong will assess whether the US-centric TPP will exit and the China-centric RCEP replace it. Is the trade argument too focused on the US and Europe and can CNY fill any USD gap in Asia? The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Access the complete program, speaker profile and register here.
|Indonesian consumers opt for chicken, mutton during festive season|
[30 December 2016] Indonesia’s soaring beef prices have led consumers to shift to chicken meat and mutton during the festive season. “The price of beef remains high at USD 9.13 per kg,” said Abdullah Mansuri, Chairman of the Indonesian Market Traders Association (Ikappi). Chicken meat and mutton are priced at USD 2.45 and USD 8.54 per kg, respectively. “Usually, the prices of beef and chicken meat drop after Christmas, but it will rise again at the beginning of the year. That’s the annual price cycle,” Mr Mansuri said. Previously, the Trade Ministry facilitated a beef distribution cooperation agreement between the State Logistics Agency (Bulog) and the Indonesian Meat Distributors Association (ADDI). The cooperation was made to ensure that beef prices do not exceed the government’s upper price ceiling of USD 5.95 per kg.
|Lay Hong aims to grow its food producing segment with Japan jv|
[30 December 2016] Malaysian integrator Lay Hong Bhd will position itself as a food producer as it produces more innovative and healthy products. It hopes to achieve this with its joint venture with Japan’s NH Foods Ltd. Group Executive Director Yap Chor How said its new processing plant, expected to be operational in 2018, will feature Japan’s quality control and food safety standards, The Star reported. “Our market share for processed food and ready-to-eat food segment is expected to hit above 10% after 2018 from around 6% at present,” he said. Lay Hong recently launched five frozen products under brandname Nippon Premium NutriPlus, namely Chicken Karaage, Chiki-Chiki Bone, Amakaraage, Tebamoto Amakaraage and Chicken Menchi Katsu.
|Vietnam approves grant package for high-tech farming|
[30 December 2016] Numerous technical, financial and regulation support from the Vietnamese government has helped shrimp farmers in the country. At a conference, Prime Minister Nguyen Xuan Phuc approved a grant package of around USD 2.5 billion for high-tech farming with the most favourable and open lending mechanisms. Nguyen Hoang Anh, Permanent Vice Chairman of the Digital Agriculture Association said Vietnam has visible advantages for strong growth in the shrimp sector, which brings in USD 3-4 billion per year in export value. However, “we haven’t reached full capacity due to some constraints including spontaneous small-scale stocking habit,” he said. With land use transformation to shrimp farming in some strategic areas, especially seawater-intruded areas in the Mekong Delta, Mr Anh said: “We can possibly increase the total shrimp farming area to 2 million ha from the existing 600,000ha.”
|New Zealand can provide halal meat know-how to Japan|
[30 December 2016] New Zealand is known for an economy dependent on agriculture, but it is also a leading exporter of halal meat to Muslim countries including Indonesia. However, the growing demand for halal-compliant foods surpasses New Zealand’s supply capability, and the country is looking to partner with others to promote the business. Bruce Baillie, Alliance Leader for Food Supply and Services at Pricewaterhouse Coopers suggested that New Zealand could provide know-how to Japan. “Japan has the potential to be a major supplier of halal products. Japan, like New Zealand, is a small country and exporting high-value-added products will be crucial to grow its economy,” said Mr Baillie as quoted by Nikkei Asian Review.
|Corn farmers in Batang regency need corn dryers|
[29 December 2016] The Regent of Central Java's Batang regency, Yoyok Riyo Sudibyo is pleased with CJ Feed Indonesia's 5th feedmill in his regency. "The management of the company has committed to give benefits to our regency and society. One of them is providing job opportunities," Mr Sudibyo said. However, "we also want the company to provide corn dryers for our corn farmers as their main problem is how to meet moisture content standards," he told Asian Agribiz.
|Deadline set to validate import permits|
[29 December 2016] The Philippine Department of Agriculture (DA) has given importers of meat, fisheries and other agricultural goods until December 31, 2016 to have their permits validated otherwise these would be cancelled. DA Secretary Emmanuel Piñol said that about 7000 SPS permits out of more than 19,000 issued by the previous administration remain unvalidated. Last month, Mr Piñol declared all import permits must be revalidated since some importers have been recycling them to bring in goods illegally. “The unmonitored SPS clearances, which traders re-use and abuse resulted in unmonitored quantification of the goods that are coming into the country,” he said. Since then the DA has processed 12,000 SPS permits, and is currently putting blacklisted companies on a database.
|Vietnam’s Hoa Phat's agri venture to contribute 30% of profits by 2020|
[29 December 2016] Vietnamese steel producer Hoa Phat Feeds Trading and Production One Member Co Ltd, which recently opened its first feedmill in Hung Yen, will focus on two major fields, namely feed and farming. “Hoa Phat will only look at pig farming,” said Tran Tuan Duong, Hoa Phat’s CEO and Vice Chairman. “By 2020 feed and livestock production will contribute 30% of Hoa Phat’s total profit,” said Mr Duong. The company aims to be one of the top 10 agri companies in Vietnam. It plans to complete the construction of its second feedmill in Dong Nai province by year end, and a third in Phu Tho province by early next year.
Regional Dairy Update
[29 December 2016]
Ultrajaya to launch two new milk products
Indonesia’s Ultrajaya Milk Industry & Trading Company plans to launch two new products namely yoghurt and pasteurised milk in the near future in an effort to boost its sales. The company has seen a growing trend in consumption of milk products in the country. Quoting a Nielsen survey, the company said the milk packaging market in Indonesia has been growing since 2014, and the value of the milk packaging market in Q3 2014 was USD 385 million, while in Q3 2015 the value increased to USD 428 million and USD 528 in Q3 2016. Ultrajaya’s management is optimistic that the liquid milk market will continue to grow, driven by a leaning towards a healthy lifestyle.
Wens becomes the largest dairy producer in Guangdong
Guangdong Wens Foodstuff Group in China said its dairy cow stock has exceeded 20,000 heads after introducing 3500 more cows from Australia, making it the largest dairy producer in the southern Chinese province. Wens, already the largest pig and chicken producer in China, is accelerating its dairy business by expanding Holstein and Jersey stocks. The company started its dairy business in 2000 and became a raw milk supplier to Hong Kong from 2003. It now enjoys a 70% share in Hong Kong’s raw milk market. Wens offers more than 30 dairy products in four categories, namely pasteurized milk, flavoured fermented milk, UHT milk and milk beverages.
Fonterra invests 20 million in Malaysian operations
Fonterra Co-operative Group, the world’s largest dairy export company, has invested USD 5 million in two of its plants in Malaysia. A report in the Nikkei Asian Review said Malaysia is considered a major market by the New Zealand group as ‘consumer insights’ here can be used for broader product development. This investment will boost blending capacity at the Susumas plant and reduce dependence on third parties. The plant can produce and pack an annual 30,000 tonnes of milk powder for brands including Anlene, Anchor, Anmum and Fernleaf, all market leaders in Malaysia. Over 100 products produced in Malaysia are halal-certified, making the country an important hub for export to other Muslim countries.
Indonesia’s milk production estimated to drop in 2017
The Indonesian Association of Dairy Cattle Farmers (APSPI) has predicted that the sluggish trend in domestic fresh milk production will continue next year as more local producers are likely to resign from fierce competition with imported dairy products. The association estimates that next year local fresh milk production will drop to 700,000 tonnes from 750,000 tonnes in 2016. The figure makes up less than 20% of national demand for fresh milk, which currently stands at 3.82 million tonnes. “In 2020, we predict that the proportion will be between 12-13%,” Agus Warsito, APSPI Chairman.
Producers in Vietnam find solutions for dairy farm waste treatment
Vietnam dairy producers are struggling with farm-waste issues. One of the solutions is to build a centralised waste treatment centre where livestock manure in the Moc Chau district, for instance, is treated professionally. “The centre will receive farm waste from the households and process it into organic solid fertiliser, which is then supplied to local farmers for crop cultivation, and liquid biogas to create small-scale electric generation,” suggested Moc Chau Milk's CEO Tran Cong Chien. The Department of Livestock Production supports this. Deputy Director of the Department Tong Xuan Chinh said the plan would require the consensus between the government, enterprises, and farmers.
|Learn more about world food commodity prices at AP2022|
[28 December 2016] Renowned Consultant and poultry industry specialist Gordon Butland will address world food commodity prices and how they have been in slow decline for five years or so, only recently stabilising with some signs of recovery now. With an increasingly unpredictable climate, are we to face the spectre of a return to hyper-price volatility for food staples, he asks. Mr Butland's will be one of 19 visionary presentations from 16 global and regional specialists at Asian Agribiz's Animal Protein in Asia 2022 conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Access the complete program, speaker profile and register at AP2022.
|Thaifoods Group to buy 75% stake in Thailand’s Big Food|
[28 December 2016] Thailand’s Thaifoods Group (TFG) said it will spend no more than USD 1.67 million to purchase a 75% stake in Big Food Group (Big Food), which operates broiler farms and slaughterhouse in Thailand. TFG will acquire 100,016 existing shares from Big Food’s existing shareholders and 200,000 newly issued shares at USD 5.56 per share. Moreover, TFG said it will establish its new subsidiary, Thai National Logistics, early next year to reduce logistic costs of the company. Thai National Logistics will have a registered capital of USD 1.67 million and it will be a wholly owned subsidiary of TFG. Meanwhile, TFG said earlier that it will invest around USD 54 million to build its first cooked chicken plant early next year.
|Indonesia resolves to appeal WTO dispute on agri products|
[28 December 2016] A World Trade Organization (WTO) panel agreed with the US on all 18 of its claims that Indonesia’s unfair trade restrictions are not consistent with WTO rules, according to the Office of the US Trade Representative. The US and New Zealand filed the dispute as co-complainants to address trade barriers in Indonesia that restrict the importation of American animal products such as beef and poultry and other agricultural products like fruits and vegetables. “Importantly, the WTO Panel findings will discourage Indonesia from simply substituting new trade-distorting approaches for the measures repealed, restoring American farmers’ and ranchers’ ability to compete,” said Tom Vilsack, US Agriculture Secretary. I Ketut Diarmita, Director General of Livestock & Animal Health told Asian Agribiz that the Ministry of Agriculture has coordinated with the Ministry of Trade to discuss the appeal efforts.
|Hy-Line China distributor to build USD144m layer facility|
[28 December 2016] Shenyang Huamei Livestock and Poultry Co, a layer and broiler integrator in northeast China, said it will invest USD 144 million to build an integrated layer facility consisting of a farming demo base, hatcheries and a poultry disease research centre. The project is designed to produce 100 million commercial chicks a year, according to Huamei, a Hy-Line distributor since 1985. “We will fully tap Hy-Line’s expertise in genetic development, farming and hatching management, biosecurity, as well as facility layout, so as to better serve the Chinese layer industry,” Huamei said. In December, the company imported new Hy-Line Brown GP stock, following the 16,510 sets introduced in March this year.
|Vietnam’s tra fish processors face severe material shortage |
[28 December 2016] Due to unfavourable weather conditions and farmer's ineffective investment plan, Vietnam’s tra fish processors are facing material shortfall, soaring material prices and decreased production capacity. The situation is expected to continue throughout 2017. According to the Vietnam’s Association of Seafood Exporters and Producers (Vasep), seafood processors will fall short of 40% of tra fish starting from Q1 2017. “The tra fish sector acreage has decreased 30% since November 2016 and is expected to shrink further next year,” said Duong Ngoc Minh, Vasep Vice President.
|CJ Feed Indonesia to maximise its new feedmills' capacities|
[27 December 2016] CJ Feed Indonesia aims to maximise the production capacities of its new feedmills in Lampung, Central Java and South Kalimantan in 2017. Tevi Melviana, Sales & Marketing GM told Asian Agribiz that the company will add more sales people. "We will also focus more on partnerships with feed agents and farming companies who have no feedmills, rather than on retail sales," he said. In 2017, according to Mr Melviana, the company also plans to produce feeds for other poultry species, and possibly pig feed at its Medan plant.
|CPF accelerates its food business after Bellisio deal |
[27 December 2016] Thailand’s Charoen Pokphand Foods (CPF) said it had completed the acquisition of Bellisio Parent LLC, US Frozen food producer, for USD 1.075 billion. Adirek Sripratak, CEO of CPF, said Bellisio’s business will continue to grow and it will expand production lines, which will produce Thai and Asian foods under the CP brand, serving US and Asian consumers in the US. “With Bellisio’s effective production base and cheap raw materials, we may also export these food products to Asian countries,” Mr Adirek added. CPF’s feed and farm business contributes more than 80% to its total sales, while its food business contributes only 12% total sales. After the Bellisio deal, CPF’s food business will contribute 17% to its total sales in 2017 and its sales contribution is expected to reach 25% in the next five years. Meanwhile, CPF expects its total revenue to reach USD 12.52 billion in 2016 and USD 13.91 billion in 2017.
|Malaysia’s Lay Hong expects good results in 2019 with new processing plant|
[27 December 2016] Lay Hong Bhd is confident of delivering a significant rise in performance for the financial year ending March 31, 2019. This will be derived from a new joint-venture plant with Japan NH Foods Ltd, which is expected to start operations by 2018. Group Executive Director Yap Chor How said construction of the plant would begin by the first quarter of 2017. The new plant will produce 2000 tonnes of processed food per month. He expects some products to be exported to Japan, Singapore and Middle Eastern countries, leveraging Malaysia’s halal certification and NHF’s network and expertise, The Star reported. Mr Yap said while NH Foods was eyeing to expand its halal market via Malaysia by capitalising on its NutriPlus brand, Lay Hong was keen to tap into NH Foods’ innovation expertise.
|Imported meat will gain ground in Vietnam|
[27 December 2016] Imported meat has been forecast to prevail in the Vietnamese market, posing challenges for domestic products and businesses. Vietnam’s husbandry sector is expected to face difficulties in the near future when trade barriers are removed following the ratification of free trade agreements, said Tuoi Tre News. Along with Australian beef, meat from Europe, Japan, and Indonesia is expected to become popular thanks to attractive quality and affordable prices. The Animal Husbandry Association of Vietnam said local meat is more expensive because of a limited source of feed and technology. “The poultry industry in the country has been heavily affected by cheap imported chicken. The beef and pork sectors could suffer as well,” said Nguyen Van Ngoc, an official from the association.
|Insect protein to be allowed in EU aqua feed from July 2017|
[27 December 2016] Insect protein can be used in fish feed in Europe from July next year. The announcement comes as European Union member states recently endorsed a European Commission proposal to allow the wider use of insect protein in feed. Jason Drew, co-founder of South Africa-based fly farmer AgriProtein, said the move “brings insect protein into the mainstream of feed ingredients. This is a big step for the environment and world food security. Replacing fish protein with insect protein allows us to dedicate our oceans to production for human consumption alone. But while the new EU regulations will permit insect protein as aqua feed, the situation hasn’t changed for other farm animals, including poultry and pigs.”