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|Indonesia looking for new shrimp markets|
[25 July 2014] The European Union’s shrimp market is getting tougher in terms of rules. Processors and exporters not only have to meet the standards set by the EU, but also by associations and NGOs. Chairman of the Indonesian Fishery Products Processing & Marketing Association (AP5I) Thomas Darmawan told Asian Agribiz that at the moment to enter the EU market processors and exporters must also have what is called a ‘private certificate’. “This certification costs about USD 60,000-75,000. Couple that with the audit process and the cost could reach USD 100,000. It is certainly difficult for small and medium scale processors and exporters.” Mr Thomas added that this cost is not positively correlated with the selling price. Indonesia’s shrimp exports to the EU continues to decline. Mr Thomas said that processors and exporters are looking for new markets, especially Russia, China and Asean countries.”
|CP and Itochu establish a strategic alliance|
[25 July 2014] Charoen Pokphand Foods Public Co Ltd is to sell a 23.75% stake in Hong Kong-listed CP Pokphand Co Ltd to Itochu Corp of Japan. CPF and subsidiary CPF Investment Ltd will receive USD 850 million for 6,017,959,308 shares leaving CPF with a stake in CPP of around 54%. CPP operates many of the Charoen Pokphand Group’s investments in feed, livestock and aqua product businesses in China and Vietnam. In a related move the Charoen Pokphand Group and associates will acquire a 4.9% stake in Itochu Corp worth just over USD 1 billion.
|WH Group looking for USD2b in new offering |
[25 July 2014] WH Group will attempt to raise about USD 2 billion on the Hong Kong Stock Exchange in a scaled-down public offering on August 5, the company said in a statement on Thursday. Last April investors turned their noses up at a far larger and more expensive deal, which was withdrawn before listing. The new offering is likely to be fully subscribed when it debuts, analysts said. The offering values the company at about 11.5 times 2014 earnings, rather than up to 20 times as previously. In addition, none of the large current shareholders, including Goldman Sachs, Temasek Holdings and CDH Investments, will attempt to sell their shares and dilute the market. The deal is also being managed by just two investment banks, rather than the 29 in the first offering. WH Group needs IPO money to pay down some of the debt it took on when it bought US pork giant Smithfield last year in a deal valued at USD 7.1 billion.
|Vannamei shrimp boosts India’s seafood exports|
[25 July 2014] Indian seafood exports are estimated to increase substantially due to higher demand for vannamei shrimp as other countries in Southeast Asia battle with EMS. Marine product exports crossed all previous records in volume, rupee value and US dollar terms largely due to impressive performance by aquaculture exports, according to Anwar Hashim, Managing Director of Abad Fisheries and former President of the Indian Seafood Exporters Association. Vannamei exports grew to 175,071 tonnes from 91,171 tonnes worth USD 1.9 billion from USD 731 million in 2012-13. There was a growth of 92% in quantity and 173% in dollar terms. More than 44% of Indian vannamei was exported to the US followed by the EU, Southeast Asian countries and Japan.
|Authorities arrest OSI staff |
[25 July 2014] Chinese authorities have arrested five staff of OSI's Shanghai subsidiary following accusations that the company processed and sold expired meat, according to the official Xinhua news agency. It said authorities had re-inspected OSI's other operations in China and “found no issues.” Nevertheless, McDonald’s and Burger King said they were dropping OSI as a supplier in China, and Yum, parent of Pizza Hut and KFC, said it was dropping OSI in China and in the US and Australia, according to the Wall Street Journal.
|Carrefour Indonesia selling beef at lower price|
[25 July 2014] Trans Retail Indonesia, the operator of Carrefour in Indonesia, is selling beef at USD 7.2/kg, much cheaper than USD 8.3-8.7 in traditional markets. Head of Public Affairs Satria Hamid said the company cooperates with one of the largest feedloters in the country Bina Mentari Tunggal for the beef supply. “We have procured some 3000 heads of Brahman cattle to ensure supply to our outlets this Ramadhan.” Mr Satria added that the cattle were imported by Bina Mentari from Australia and then were raised in Subang, West Java for two months before slaughter. “We chose Bina Mentari because they apply good animal welfare standards and have a modern slaughterhouse that will ensure quality and safety of the beef produced.”
|Indonesia’s shrimp products export increasing|
[24 July 2014] Besides exporting whole frozen shrimps, Indonesia also exports further processed shrimp products such as breaded shrimp, tempura, nuggets and shrimp balls. Chairman of the Indonesian Fishery Products Processing & Marketing Association (AP5I) Thomas Darmawan told Asian Agribiz that the majority of these products are exported to the US. “The export value reached USD 12.5 million in 2012, and then increased to USD 20.5 million in 2013.” AP5I has 168 companies that are members. Of the total, Mr Thomas said some 40% focus on producing and developing products for export and local markets. “Local demand is also increasing by about 20% annually,” said Mr Thomas.
|Infrastructure damage hits poultry and livestock raisers|
[24 July 2014] Poultry and livestock raisers from Southern Tagalog, one of the biggest production areas in the Philippines, have suffered infrastructure damage from Typhoon Rammasun that hit the country last week. Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that many poultry houses, pig houses and feedmills had roofs blown away and suffered from floodwaters, which damaged stocks and raw materials. The typhoon also led to power outage that also affected water supply in the region. He also said there were reports that the egg producers in Batangas suffered heavily, with many houses collapsing and production dropping due to the week-long power outage. As yet, there is no official estimates of the value of the damage to the industry.
|OSI Chairman apologises to customers|
[24 July 2014] OSI Group Chairman and CEO, Sheldon Lavin has apologised to customers in China for the food safety breech that led to the closure of the Husi Shanghai plant. "What happened here is completely unacceptable and I am appalled that it ever happened in the company that I own. On behalf of Husi and OSI, I sincerely apologise to all our customers in China. We will bear responsibility and will make sure this never happens again," Mr Lavin said. He added that experts from the OSI Group will work with the local team to resolve this issue. "We operate our OSI facilities around the world at the highest standards, so to be let down by what has happened here is extremely distressing."
|Asia Pacific to lead feed enhancers & modifiers market|
[24 July 2014] The global feed palatability enhancers & modifiers market was valued at USD 2,577.8 million in 2013 and is projected to grow at a CAGR of 3.5% from 2014 to 2019, according to a US market research and consulting company MarketsandMarkets. In 2014, Asia-Pacific is estimated to lead the global market with the highest share, followed by North America and Europe, in terms of value. Flavours are feed additives that are used to enhance the taste of feed to stimulate intake. Sweeteners, meanwhile, are products used to sweeten the feed and are used as a substitute for sugar.
Key take-aways from seminar on ‘Grain inventory and silo management’
Organised by US Grains Council in Jakarta, Indonesia
[24 July 2014]
Challenges, factors affecting grains storage in the tropics
Storing grains in the tropics is not as easy as in the subtropics, said USGC Technical Consultant in Southeast Asia Dr Budi Tangendjaja. Specifically for corn, repeated handling of exported corn causes more breakage and dust, while ambient temperature and relative humidity that is higher than in the country of origin pose challenges. Besides, there are factors affecting grains storage such as condensation, weather, moisture movement, hot spots, mould, insects, and shrinkage and moisture differences. Dr Budi told Asian Agribiz that in Indonesia many feed millers store their corn for up to two months. “So to successfully store corn, they should understand the characteristics of the grain and the environment and apply proper practices and techniques.”
Metal silos not recommended
Dr Carlos Campabadal, Program Specialist and Instructor at the International Grains Program of Kansas State University, suggested that feedmillers in the Tropics should not store DDGS in metal silos because DDGS has poor flowability and can cake with the metal walls of silos. Dr Campabadal said: “Feedmillers can use flat storage, like warehouses with concrete or galvanised steel walls that have open space and good ventilation.” He also urged feedmillers to buy good quality DDGS and store it for no more than a month. “If the DDGS bought has mould or insects, use it as fast as possible.”
Integrated management program to control pests
Pests such as insects, rats, fungus and bacteria are present in grain storage facilities and feedmills. Dr Carlos Campabadal said to control the pests, feed millers should apply what is called integrated pest management program that includes inspection, monitor, action and evaluation. “The goal is to prevent pests gaining access to food, water and shelter. The aim should be to keep pest levels below the acceptable limit, using different measures and using pesticides as a last resource.”
AFB1 major contaminant in the tropics
Feedmillers in the Tropics should be concerned about mould and mycotoxins in stored grains, said Dr Budi Tangendjaja. “Different moulds can grow in the field and also during storage.” Dr Budi said that the major contaminant in the tropics is aflatoxin B1 (AFB1). From his research in Indonesia he found that 100% of the corn tested were contaminated by mycotoxins, especially AFB1. However, Dr Budi said that mycotoxin problem can be minimised through prevention during pre and post-harvest, adsorption by using adsorbents or binders, and good feeding strategies on the farm.
|Indonesian shrimp processors need more raw material|
[23 July 2014] Indonesian shrimp processors and exporters are currently in a dilemma. The US has not imposed anti-subsidy and anti-dumping tariffs so there is a big opportunity for Indonesia to increase shrimp exports but raw material (shrimp) supply is a challenge. They require more than 450,000 tonnes of vannamei shrimp each year, while local is only about 280,000 tonnes. “Productivity has not increased significantly and is unable to meet export demand,” Chairman of the Indonesian Fishery Products Processing & Marketing Association (AP5I) Thomas Darmawan to Asian Agribiz. Mr Thomas said that the government should allow the import of shrimp from other countries as is done by Vietnam. “Vietnam’s shrimp production is still affected by EMS. However, the processors there are allowed to import shrimp from India and Ecuador and this keeps their shrimp exports strong.”
|Thailand launches measures against EMS|
[23 July 2014] Thailand will proceed with three main activities to tackle the Early Mortality Syndrome (EMS) disease which continues impacting the country’s shrimp industry, said Chavalit Chookajorn, Permanent Secretary, Ministry of Agriculture and Cooperatives. EMS cut Thai shrimp production to 256,000 tonnes in 2013, down from 480,000 tonnes earlier year. The three activities include; importing quality parent stock of vannamei and urgently improving 10 hatcheries belonging to the Fishery Department with the aim to produce 100,000 broodstock; upgrading efficiency of laboratory screening, preventing and surveillance and diagnosis of the disease and finally, increasing the production capacity of Effective Microorgarnisms to revive Ocean shrimp farming along the coast. The National Council for Peace and Order (NCPO) has approved around USD 504,702 for these activities and the ministry will seek an additional USD 2.51 million from the national budget, Mr Chavalit said.
|China ends embargo on Brazilian beef |
[23 July 2014] China has ended its official embargo on Brazilian beef imports, which were blocked at the end of 2012 because of BSE (bovine spongiform encephalopathy). Brazilian authorities said the change followed Chinese President Xi Jinping's visit to Brazil last week. Eight Brazilian abattoirs are already licensed to export beef to China, and authorities are hoping to get clearance for another nine abattoirs in the near future. The change in policy may lead to increased shipments, but even after the embargo was put in place Brazilian beef continued to flow into China via the Hong Kong 'grey channel'. In the first five months of this year Brazil exported 94,759 tonnes of beef worth USD 427 million to Hong Kong, according to Trademap, a trade statistics website. The vast bulk of that beef ended up in mainland China.
|NECC seeks moratorium on loans to poultry farmers|
[23 July 2014] India’s National Egg Coordination Committee (NECC) has appealed to the government to grant a one-year moratorium on payment of interest and loans by poultry farmers. This will help farmers who have been facing high feed raw material prices for the past two years. In the past two years, the price of soybean meal has been rising and has now reached unaffordable levels, due to various reasons like forward trading, exports, speculation and manipulation of price by traders and multi-nationals, said NECC in a release. A significant number of small and marginal farmers, representing 20-30% of the industry, have eased operations the release said.
|India develops biofloc technology to combat EMS|
[23 July 2014] India’s Central Institute of Brackishwater Aquaculture (CIBA) in Chennai has fine-tuned a technology called biofloc that substantially reduces the nitrogenous metabolites like ammonia, nitrite and nitrogen level through in-situ bioremediation. “Besides reducing the nitrogen level, the technology will also reduce input costs and combat diseases such as early mortality syndrome (EMS) in shrimp,” said Dr Akshaya Panigrahi, CIBA Principal Scientist. Dr Parnigrahi said while shrimp reared under non biofloc reached 25-30g in 130 days, they grew to 36-40g in the same period under biofloc farming.
|McDonald’s Japan stops sale of nuggets|
[23 July 2014] A Tokyo-based spokesman for McDonald’s Japan said the restaurant chain had sourced about 20% of its McNuggets from a China unit of US food supplier OSI Group. Around 500 of McDonald’s restaurants in Japan, a sixth of the total, had temporarily stopped selling McNuggets while the company obtained alternative supplies, he added. Meanwhile KFC, Pizza Hut and McDonald’s chain in Malaysia and Singapore said they do not import meat from the company. “Shanghai OSI does not supply any products to KFC and Pizza Hut in Malaysia. Food safety is our number one priority,” QSR Brands said in a statement. QSR is the operator of KFC and Pizza Hut in Malaysia.
|Indonesia to build pig slaughterhouse in Pangkalpinang |
[22 July 2014] In 2015, Directorate of Veterinary Public Health and Post-Harvest of Indonesia’s Ministry of Agriculture plans to set up a semi-automatic pig slaughterhouse in Pangkalpinang, Bangka Island as a pilot project to meet hygiene and food safety standards. “The Pangkalpinang slaughterhouse will have an installed capacity of 50 heads/day. We as the central government will provide funds for the building, equipment and cooling and storage facilities, while the land will be provided by the local government,” Mr Arief Wicaksono, Section Head of Hygiene and Sanitation Inspection told Asian Agribiz. In 2010 the directorate renovated the pig slaughterhouse in Manado, North Sulawesi. Then in 2011, it allocated around USD 103,000 to set up a 50 heads/day pig slaughterhouse in Timika, Papua. “In 2015, we will dedicate more efforts to improve the pig slaughtering sector in Indonesia,” said Mr Arief.
|Chinese authorities shut OSI subsidiary |
[22 July 2014] Shanghai authorities closed a meat processing company that supplied fast-food giants McDonald’s and KFC following a televised report that the supplier falsified expiration dates, used rotten meat and reused rejected products. McDonald’s and Yum Brands, parent of KFC, said Monday they would no longer use the supplier, Shanghai Husi Food Company, and issued apologies to Chinese consumers. Shanghai Husi is a subsidiary of US-based food supplier OSI. The shutdown followed a report on Shanghai Dragon TV that, among other things, showed Husi employees using meat that had fallen to the floor, putting out-of-date meat back into a refrigerator and hiding expired meat during an inspection by staff from McDonald’s. No injuries or illnesses were reported from consumption of tainted food. Media reports quoted staff at OSI’s US headquarters and at OSI’s offices in Beijing and Shanghai as saying the company is cooperating with the investigation.
|Initial damage from typhoon at USD 53.4 million|
[22 July 2014] The initial estimate of agricultural damage from Typhoon Rammasun in the Philippines has been pegged at around USD 53.4 million, Philippine Agriculture Secretary Proceso Alcala said. The fisheries sector posted the biggest loss at around USD 18.6 million, as fish cages in various provinces hit by the typhoon were damaged. Meanwhile, the corn sector reported losses of about 42,448 tonnes valued at around USD 9 million. The livestock industry posted minimal losses in terms of animals, however infrastructure damage is estimated at around USD 2.8 million. Mr Alcala noted that these are just initial estimates and that the value may go up further in the coming days as the agency completes its assessment.
|KFC’s China rebound marred by closure of supplier |
[22 July 2014] KFC’s China sales rose sharply in the second quarter, continuing a dramatic rebound as demand recovers from last year’s avian flu scares. The good news was marred, however, by reports that a major KFC suppliers was being shut down for using rotten and outdated meat in some of its products. The Chinese poultry industry has been struggling with immense losses because of the flu crises, and KFC's business is an important indicator for the industry. Yum Brands said same-store sales in its KFC China unit rose 21% in Q2, following an 11% rise in Q1, and making up for a 15% decline in 2013. KFC China has upgraded many of its outlets in response to the avian flu crisis, installing free wifi, soft lighting and wooden furniture. World Cup promotions contributed to the surge, as did the fact that many restaurants were open 24 hours during the World Cup. After its Shanghai supplier was shut down on Monday, KFC issued an apology to consumers, and it was not immediately clear what the scandal’s effect on business would be.
|Global pork market to grow by 13% by 2018|
[22 July 2014] The global volume of fresh pork sales reached 89 million tonnes last year up 3% on the previous year. Asia Pacific continued to account for the bulk of this figure, with almost 60.9 million tonnes of the total, according to Euromonitor International. Consumption in Asia-Pacific, it said, is driven by China with the country accounting for 82% of regional volume sales. Volumes rose 16% over 2008-2013 compared to 12% globally. This, despite the series of food safety issues surrounding Chinese pork in recent years. For 2013-2018 global pork sales are expected to grow by 13%, an increase of some 11.2 million tonnes, by 2018. Most of this rise will be seen in the emerging markets of Eastern Europe, Asia Pacific and Latin America where population growth will support volume growth.
|Milma raises milk price |
[22 July 2014] The price of milk supplied by Milma in Kerala, India has been raised by USD 0.05/litre. This increase took effect yesterday, July 21. Chairman of the Kerala Cooperative Milk Marketing Federation PT Gopala Kurup explained that domestic procurement of milk that was about 673,000 litres/day in 2010 has increased to around 1.02 million litres at present, a record in the history of Milma. Kerala expects to achieve self-sufficiency in milk production in another two years if farmers are given a good price, he added. Mr Kurup said sales of Milma had gone up from approximately 1.13 million litres/day in July 2013 to 1.23 million litres in July 2014. The sales turnover of Milma in the 2013-14 fiscal year was USD 361 million, 80% of which went to farmers for milk collected.
Top industry updates in Asian Poultry Magazine, August 2014
[21 July 2014]
Betagro invests in opportunities in the south
Betagro has not only opened a new poultry processing plant in Southern Thailand but is also upgrading its hatchery and layer farm operations there, writes NITSARA THONGRUNG. This investment is in view of the robust market for poultry meat in this region as well as the attractive export prospects.
Kee Song scores with antibiotic-free farming
Kee Song Brothers Poultry Industries holds a 15% market share in Singapore. The company is enjoying good sales for its two previously launched premium chicken products. Spurred by this the company, which owns eight farms in Johor, Malaysia, has launched its third range of premium chicken, writes RACHAEL PHILIP.
Poultry leads growth in Indian feed industry
The poultry industry in India has seen the largest growth, with an annual production increase of 8% between 2002/03 and 2012/13, reveals Rabobank’s PAWAN KUMAR. It accounts for 58% of the total feed market, with consumption increasing at 7-8% annually between 2007/08 and 2012/13.
Retail lends weight to Red Dragon’s bottom-line
Two decades since putting up its poultry operations, RDF Feed, Livestock & Foods Inc (RDFFLFI) is modernising its broiler facilities as an effort to further improve efficiencies to meet the growing demand of its fast expanding meat retail business, writes ISA Q. TAN.
Carbohydrases enhance value of soybean meal
A series of in vitro and in vivo studies was conducted to measure the degree of nutritive enhancement of soybean meal by a multi-carbohydrase enzyme. KEVIN LIU explains that the enzyme hydrolysed 57% of the extracted non-starch polysaccharides and increased the energy by 4.5% or 105 kcal ME/kg.
Xylanase improves performance of low-energy broiler diets
Added xylanase enzyme may allow the use of low energy broiler diets, claim FARHAN AHMED and USAMA AFTAB.
Betaine increases chick hatch percentages
DAVID CADOGAN discusses a trail in Australia that strongly suggests betaine improves the number of hatched chicks in broiler breeders.
|Vietnam to focus on abattoir hygiene|
[21 July 2014] Vietnam’s People’s Committee will be watching the operations of small abattoirs in and around the city to ensure that they conform to hygiene standards. Thanh Oai district’s People’s Committee Chairman Nguyen Hong Yen said that plans for a 4.4ha public slaughterhouse complex were approved by the city administration in 2012, however, the district has yet to receive the USD 1.6 million required to build the complex from Ha Noi People’s Committee. “The abattoir will be ready in 2015 if the city administration transfers the money for land clearing and primary infrastructure now,” he said. According to the Ha Noi Department of Industry and Trade 70% of meat produced at household abattoirs in Vietnam fail to meet hygiene and food safety standards. The local media reported that it is common to find poultry, pigs and even cattle killed and prepared for market by members of one household inside or outside their home. The practice is illegal.
|New, modern pig slaughterhouse in West Jakarta|
[21 July 2014] The Jakarta provincial government-owned company PD Dharma Jaya is currently setting up a new pig slaughterhouse, located not far from its old slaughterhouse in Kapuk, West Jakarta. Head of Marine and Agriculture of Jakarta province Djarmuni said the new slaughterhouse will use modern technology from Germany with an installed capacity of 1000 heads/day. In addition, the slaughterhouse will be equipped with modern waste treatment installation. “The building process is targeted for completion by the end of the year,” said Mr Djarmuni. Construction of the new slaughterhouse follows a public demonstration complaining about bad smells of the old slaughterhouse. Some waste from the old slaughterhouse also polluted the surrounding environment. Once the construction of the new slaughterhouse is finished, the old slaughterhouse will be closed.
|WH Group protests defamatory Online 'smears'|
[21 July 2014] A subsidiary of pork giant WH Group, which is planning to list on the Hong Kong stock exchange, says it has filed a police complaint about online videos and messages that claim the group is suffering losses and that the chairman is ill, according to Caixin, a well-known financial information service. One of the videos, which emerged online in June, purports to show workers at “a big American meat producer” using rat meat to make ham sausages, Caixin said. Online messages have predicted second-quarter losses and said that WH Group Chairman Wan Long is ill. The company denies all the allegations, adding that Wan Long is in good health, and characterised the online videos and messages as a 'smear'. WH Group acquired US pork giant Smithfield last year, and earlier this month filed for a planned listing in Hong Kong.
|Indonesia revises corn, soy output target|
[18 July 2014] Indonesia’s Ministry of Agriculture has revised its target for national corn and soybean production. Director General of Food Crops Haryono said that it has been revised from 20 million tonnes to 19 million tonnes, while soybean from 2.7 million tonnes to 1 million tonnes. Mr Haryono mentioned that the revision was due to concerns over natural calamities including El Nino. As a consequence, corn imports will escalate in the second semester, he said. The Indonesian Feed Millers Association predicted that corn imports in the second semester would reach 1.85 million tonnes, much higher than 1.3 million tonnes in the first semester.
|Aqua feed shows promising outlook in Thailand |
[18 July 2014] Demand for aqua feed in Thailand is expected to grow in future, with industry participants estimating that farming of smaller animals including fish and shrimp will grow. According to Pornsilp Patcharintanakul, President of the Thai Feed Mills Association, demand for large animal feeds such as cattle, will decline in the next 18 years while demand for smaller animal feeds such as chicken, duck, fish and shrimp will increase. He forecast aqua feed demand to total around 2.06 million tonnes per year around 2028-2032, from 1.3 million tonnes at present. Also, aqua feed raw material sourcing is changing in Thailand, with raw material sourced from farming increasing by 6.9% per year while sources from natural fishing declining by 5.8% per year.
|New cattle slaughterhouse in East Nusa Tenggara|
[18 July 2014] Realising the promising potential of cattle slaughtering in Indonesia’s East Nusa Tenggara, fish processor and trader Segarau Bahari has diversified into cattle slaughtering. In early June, the company commenced the operations at its new cattle slaughterhouse in Kupang. Slated as the most modern cattle slaughterhouse in the region that is equipped with blast freezers and cold storage, it slaughters some 50 heads/day currently. Vice Director Sayfril Bustaman said every week the company sends around 16 tonnes of frozen beef under the brand ‘East-NT Beef’ to Jakarta. “In the near future, we will also export the beef to Brunei. Potential importers from Brunei have inspected our facility.” Segarau Bahari cooperates with local farmers to secure its cattle supply. According to Indonesia’s Ministry of Agriculture, in 2013 the population of cattle in East Nusa Tenggara reached around 823,000 heads.
|US corn price could decline|
[18 July 2014] The US Department of Agriculture, in its weekly report unexpectedly raised its condition rating for the US corn crop to 76% good to excellent. Condition ratings for soybeans held steady at 72% good to excellent, with both crops off to their best start since 1994.However, importers are said to be cautious about booking deals for US corn because they think prices will continue to decline said. However, private exporters struck deals to sell 120,000 tonnes of US soybeans to top importer China for delivery in the 2014-15 marketing year, which will start on September 1.
|Hong Kong looking to Namibia for beef supply|
[18 July 2014] Hong Kong is looking to import beef from Namibia later this year. According to Namibia’s Honorary Consul in Hong Kong Henry Chan a team of government officials will visit Namibia next month to check on the condition of farms and abattoirs. Namibia exports most of its beef to the European Union but is now turning its attention to the fast-growing Asian market, especially China. In Europe the preference is for steak and premium products, but in China, consumers buy all cuts - including offal. Mr Chan also said Namibian oysters are doing well in Hong Kong, urging producers to increase their export especially at the end of the year when there is a big demand for the product.
|Cargill Indonesia launches new broiler pre-starter feed|
[17 July 2014] Cargill Feed and Nutrition Indonesia recently launched a new broiler pre-starter feed ‘Immuno Brooster’. The feed is an ‘early birth nutrition’ feed that was developed with the latest technology from Cargill. Marketing Director Totok Setyarto told Asian Agribiz that the first seven days are crucial in a broiler as the bird’s immunity and digestive system have not developed well. “Good nutrition is needed during this crucial phase.” The feed also contains specific ingredients that stimulate the colonisation of good bacteria. This in turn will improve the immunity of the birds. The feed is pelleted. Trials conducted by Cargill proved that the short cut pellet gives better results in terms of feed intake, body weight gain and feed efficiency.
|IFFO confirms CPF’s responsible sourcing |
[17 July 2014] Charoen Pokphand Foods (CPF) of Thailand is among two Asian companies certified under the International Fishmeal and Fish Oil Organisation’s Responsible Supply (IFFO RS) Chain of Custody standard. This confirms that they source approved RS fishmeal and fish oil from factories meeting this demanding standard, by using approved raw materials and manufacturing to the best industry practices, IFFO stated in a press release. Another Asian company certified to the IFFO RS Chain of Custody is Zhonghai Ocean Science & Technology Co Ltd of China. CP and IFFO are also working closely with a number of interested parties in Thailand, India and Vietnam to improve the management of fisheries.
|India procures more wheat|
[17 July 2014] India is taking steps to address the threat of El Niño and the resulting decline in food production. Government agencies may procure 8% more wheat this year to maintain stocks and prevent inflationary pressures if El Niño happens. In recent months, India had released 11.5-12 million tonnes of wheat. India’s Associated Chamber of Commerce and Industry (Assocham) has recommended that the government immediately announce steps to control food inflation. “The government needs to make some key announcements on supply and logistics management including warehousing,” said Assocham.
|Pakistan struggles to reclaim Saudi seafood market|
[17 July 2014] Pakistan is struggling to reclaim its place in the Saudi Arabian seafood market as exporters blamed the government’s regulatory and inspection department for low quality and poorly packaged fish and shrimp. The country lost this market after an inspection team from Saudi placed restrictions on Pakistani seafood items. Pakistan's seafood exports grew by 15.25% from July-May 2013-14 to a record high of USD 335.7 million. “But statistics show that the main export is chicken-meal that is a product of undersized shrimp and fish which the fishermen catch illegally,” said Chairman of the Pakistan Fisheries Exporters Association, Faisal Iftikhar.
|India’s value added dairy products segment to grow by 25%|
[17 July 2014] The share of value added dairy products (VADP) in the milk and milk derivatives segment in India is expected to grow by around 25% till 2019-20, Care Ratings said. The profitability in liquid milk ranges from 4-5%, whereas the profitability in VADPs ranges from 12-18%, attracting private participation in the industry. The Indian dairy industry is witnessing growth backed by the rising consumption and higher margins in the VADPs. Demand is likely to reach 200 million tonnes by 2022 from 132 million tonnes in 2013, the report said. The development of processing and packaging technology along with improvements in retail and cold storage infrastructure has increased the shelf life of dairy products.
|Nisarg Animal Farming to set up pig nucleus farm|
[16 July 2014] Nisarg Animal Farming Pvt Ltd, the distributor of JSR Genetics Ltd for India, is planning to set up a pig nucleus farm in the north-eastern part of India. Managing Director Mark Garvin told Asian Agribiz that the nucleus farm will supply pigs with good genetics to farmers in the country’s north-eastern region. “The nucleus farm will raise 2000 heads of JSR GGP Genepacker dam line. We will import the sows from the UK this year. We are working towards getting the import permit and health certificate.” Mr Garvin added that pig farming in the country offers promise. Northeast India covers the states of Arunachal, Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura—the main pig production centre and the main hub for pork consumption in India.
|Malaysia to produce 50,000 tonnes of shrimp in 2014|
[16 July 2014] Malaysia will see its shrimp production growing steadily this year after the drop from a peak of roughly 105,000 tonnes in 2010 to a low of about 45,000 tonnes last year. Star Feedmills (M) Sdn Bhd General Manager for Marketing Hiew Yee Wei predicts that production will reach 50,000 tonnes this year and grow another 20% in 2015. “Malaysia’s shrimp industry is on the road to recovery after EMS. Farmers are using specific culturing technology to improve their yields,” he told Asian Agribiz. “The training offered to our customers has helped them beef up on good practices.” Star Feedmills is a subsidiary of Charoen Pokphand Foods (M) Sdn Bhd.
|Vietnam’s first Kobe cows developing well|
[16 July 2014] Vietnam’s first generation of Kobe cows will reach their full weight of 800-1000kg in about 14 months, said Kobe Cow Vietnam JSC Director Nguyen Tri Duc Vu. The cows, farmed at the Central Highlands city of Bao Loc, are now 18 months and weight roughly 500kg. The company, a joint venture between Vietnamese farmers and their Japanese partners, used US-imported Kobe cow DNA and bred the first generation two years ago. “In the first phase, the death rate of the calves was as high as 20%,” he said. “But over time we learned how to deal with it.” While Kobe beef can sell for up to USD 170/kg in Japan, Mr Vu told the local papers that selling the meat for USD 100/kg is more than enough in Vietnam. “That price will bring in nearly USD 50,000/cow as we can use only 500kg of meat from it,” he revealed.
|FAO-OECD expect crop prices to decline|
[16 July 2014] The recent fall in prices of major crops is expected to continue over the next two years before stabilising at levels above the pre-2008 period, but markedly below recent peaks, according to the latest Agricultural Outlook produced by the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organisation (FAO). In a special focus on India, the Outlook projects sustained food production and consumption growth, led by value-added sectors like dairy production and aquaculture. Investment in production technology and infrastructure together with subsidies in a range of areas have contributed to strong output expansion over the past decade, the report said, and pressure on resources is expected to reduce production growth rates over the coming years.
|Feed acidifier market projected to be USD2.6b in 2018|
[16 July 2014] The market for feed acidifiers, by type was worth USD 1,949.9 million in 2012 and is projected to be USD 2.6 billion in 2018, growing at a CAGR of 5.2%. The feed acidifier market is growing steadily due to increase in demand for protein-rich products and increasing meat consumption. The other driving factors for the market are the increasing awareness among farm owners towards the role of feed acidifiers in bringing the overall feed cost down and the increasing use of acidifiers in treating animal diseases. Asia Pacific and Europe are the largest consumers of feed acidifiers in the world. Key participants in the global feed acidifier market are BASF, Kemira, Kemin Industries, Impextraco and Yara International.
|India scraps incentive on milk powder exports|
[16 July 2014] With milk prices rising, India’s government recently decided to scrap the incentive on export of skimmed milk powder (SMP) to boost domestic supply and cool prices. With possibility of shortage of fodder in view of a deficient monsoon affecting milk production, the Cabinet Committee on Economic Affairs (CCEA) decided to withdraw the 5% incentive offered to SMP exporters. Reacting to the development, Amul Managing Director RS Sodhi said, “The move will not have much impact as international prices of SMP are higher than the domestic rates.” He said the country exported about 120,000 tonnes of SMP in 2013-14 fiscal for about USD 499 million. However, he said that the exports are low due to bullish domestic prices.
|Early bird registrations close on July 16|
[15 July 2014] The special rates accorded to participants of Asian Agribiz's Poultry Feed Quality Conference will end tomorrow, July 16. The conference will take place on August 21-22 at the Aloft Hotel in Kuala Lumpur Malaysia. It will field will 18 speakers who will address four themes namely carbohydrates with a fibre focus, feed enzyme developments, protein sources (SBM and canola) and quality assessment by near infrared spectroscopy. More details here.
Stormy prices likely due to weather
[15 July 2014]
With warming surface temperatures and light winds in the Pacific Ocean, scientists are predicting a return of El Niño. Characterised by heavy rains in some parts of the world and drought in others, it could have a strong impact on grains production and pricing. Historically, El Niño has led to dry conditions in Australia, India, Malaysia and Indonesia, while wet conditions tend to be seen in South America, Central America and parts of the US. Fear over the effects of El Niño is working its way into commodity price predictions. Currently, US investment managers are expecting increased prices in all 16 major agricultural futures markets, according to US Commodity Futures Trading Commission data. While El Niño is expected to have an effect on grains markets this season, only time will tell what the impact will be.
El Nino may raise market volatility
Global feed prices are expected to decline in Q3 and Q4 based on current fundamentals and a good crop outlook for wheat and soybeans, Rabobank reported in its recent Poultry Quarterly Q2 report. Despite this positive outlook, the possible return of volatility in feed prices remains a threat to the poultry industries in all regions as stock levels remain low. Global grains and oilseeds prices have recently increased and old crop grain markets are currently tighter than expected. In addition, ongoing concerns about the situation in Ukraine and the potential threat of an El Niño event are creating some market volatility.
Indonesia has not seen El Niño’s impact
Secretary General of the Indonesian Feed Millers Association (GPMT) Dr Desianto Budi Utomo, told Asian Agribiz that with El Niño, “national corn production may fall by about 10-25% and Indonesian feed millers will have to import more corn." GPMT Chairman Sudirman FX told Asian Agribiz that until the beginning of June, Indonesia had imported 1.2 million tonnes of corn. “If there El Niño is severe, corn imports this year may be more than 3.6 million tonnes.” However, Mr Sudirman said that higher prices would not last long as local corn prices always adjust to the price of imported corn. Mr Sudirman said the global price of corn is declining as supply from Latin America is abundant. “But we do not enjoy the lower prices because of currency depreciation.”
Philippine corn prices follow world trend
Prices of Philippine corn are now more dependent on prices of substitutes in the world market rather than the availability of local supply. Several industry observers told Asian Agribiz that unlike in the past when corn prices would be down during harvest season, these days corn prices remain fairly high even during harvest if prices of substitutes like feed wheat in the world market is high. An official from a feed company told Asian Agribiz that prices of raw materials are on an uptrend, and that most feed manufacturers implemented price increases effective June.
Malaysian farmers cool over hot weather
The El Niño may not have a strong impact on imported raw material feed prices. As such poultry and pig farmers in Malaysia, who import 100% of their raw material, do not think that feed prices will increase much in the next few months. Currently they are enjoying low prices, thanks to good production in North and South America. “We have sufficient supply this time,” said layer farm Selasih Aman Sdn Bhd General Manager of Operations Brian Lim. Federation of Livestock Farmers’ Association of Malaysia Pig Unit Chairman Chuang Hock Meng concurs. He said pig farmers are not worried about rising prices. The dry conditions, however, can affect the performance of poultry and pigs in the country. This may cause production prices to increase, affecting the ex-farm prices of livestock.
Delayed rain encourages high corn price
Livestock producers in Thailand are still facing high feed cost as price of grains such as corn, the main raw material for feed, is high. President of the Thai Feed Millers Association Pornsilp Patcharintanakul said that cost of feed raw material this year will generally be higher than the year before, with corn price expected to outpace last year’s level due partly to drought. For soybean meal, drought will also affect production. Wholesale price of corn in Bangkok is around USD 0.308/kg. Soybean meal, price is forecast to continue to stay high at around USD 0.616/kg, Secretary General of the Thai Feed Millers Association Boontham Aramsiriwat estimated. "Feed prices may decline around September when the new corn crop enters the market,” Mr Boontham told Asian Agribiz.
Monsoons arrive late in India
With the onset of summer, hot and dry conditions swept across many of India’s key agricultural areas, delaying the onset of the monsoons and leading to speculation over production and prices for summer crops. Late pre-monsoon rains delayed planting of various crops. If below average production materialises with India’s summer crops, prices for these commodities will increase accordingly. Amit Sachdev, Representative of US Grains Council in India told Asian Agribiz: “Based on the information available, high temperatures and lack of water could delay sowing. Unless there is proper soil moisture, farmers have been advised not to sow any crops. We do expect some issues with grain production such as corn and soy in central and some parts of south India, but still as the deviation will only be 6-7%.”
Shippers eye freight trade boost
Weather patterns could disrupt shipping patterns and raise freight costs. “Disruptions are often favourable to the freight market,” said Khalid Hashim, Managing Director of Precious Shipping, one of Thailand’s largest dry cargo owners. While countries in Asia are scrambling to reduce El Niño’s impact, shipping markets expect trade flows will be affected. “The weather changes could lead to changes in trade of agricultural commodities,” said Marc Pauchet of shipbrokers ACM. “Grains and other agri-bulks are sensitive to rain as they cannot be loaded or discharged in wet conditions. This could potentially lead to heavy congestion at ports and increase waiting times,” said Burak Cetinok of consultancy Hartland Shipping. “In theory, this would have a positive impact on freight rates.”
|WH Group official revives IPO|
[14 July 2014] International pork giant WH Group has officially revived plans for a Hong Kong stock listing, less than three months after withdrawing a previous IPO because investors thought the deal too pricey. The new offer seeks to raise USD 2-3 billion, according to sources quoted by the Financial Times, less than half what the company had hoped to raise in April. The new offering is also being managed by just two banks, Bank of China International and Morgan Stanley. WH Group Chairman Wan Long reportedly blamed the earlier failure on the fact that 29 banks were involved, creating confusion among investors. The new capital will help pay back more than USD 4 billion in debt that Chinese pork producer Shuanghui International took on when it bought Smithfield, the largest US pork producer. The joint company was renamed WH Group.
|Demand for shrimp seen to boost Indian seafood exports|
[14 July 2014] Indian seafood exports are estimated to increase substantially due to higher demand for vannamei shrimp as other countries in Southeast Asia battle the early mortality syndrome (EMS). In the 2013-14 financial year, exports of marine products reached an all-time high of USD 5007.7 million. Total seafood exports in FY13 was 928,215 tonnes valued at USD 3511.67 million. Marine product exports crossed all previous records in volume, rupee value and US dollar terms largely due to impressive performance by aquaculture exports, said Anwar Hashim, Managing Director of Abad Fisheries and former President of the Seafood Exporters Association of India. “Production of vannamei has helped Indian export remain competitive. EMS in other countries helped India capture a larger share and hopefully we will see better performance this year,” he added.
|Troubled Vion hopes for help from China|
[14 July 2014] Troubled Dutch meat processor Vion, Europe’s second largest pork producer, is hoping to get help from investors and strategic tie-ups in China, according to new CEO Michiel Herkemij. Vion, which is owned by the Dutch farmers’ cooperative ZLTO, suffered an operating loss of USD 189 million last year. In an interview with Reuters, Herkemij said an ongoing restructuring program in Europe would cut up to 10 factories and cost of around USD 205 million. Herkemij said he was open-minded about the source of new external financing, and gave no details of any specific deals that might be in the works.
|India logs record milk production |
[14 July 2014] India recorded peak production of milk at 132.43 million tonnes in 2012-13, becoming the top milk producer globally, a pre-budget Economic Survey revealed. Milk production in 2011-12 was 127.9 million tonnes, according to the National Dairy Development Board data. The BJP government’s first economic survey stated that India accounts for 17% of world production of milk. “The average year-on-year growth rate of milk at 4.04% vis-a-vis the world average of 2.2% shows sustained growth in availability of milk and milk products for the growing population,” the survey said. Milk has also become an important secondary source of income for 70 million rural households engaged in dairying, it highlighted.
|Aqua feed market to reach 82kt by 2018|
[14 July 2014] The global aqua feeds market is estimated to reach 82,390.5 kilo tonnes by 2018. It has grown exponentially in the last few years and a similar trend is expected to follow over the next 5-7 years. Asia Pacific and Europe are the leading consumers of aqua feeds – together accounting for more than 70% of the consumption on a global scale. Asia Pacific is estimated to be the fastest growing region in terms of revenue. Growth is particularly high in countries such as China, Japan and Indonesia. Fish accounts for the maximum consumption of aqua feeds.
|Taiwan strengthens bird flu prevention|
[14 July 2014] Changhua County in Taiwan has introduced new equipment that will help keep chicken raising areas free of the bird flu virus, the China Post reported. Deputy County Magistrate, Lin Tien-fu, said that the Changhua’s Animal Disease Control Centre revealed two new vehicles for disinfecting farms where domesticated birds are raised, in addition to the four vehicles already in service. While there have not been any reports of major outbreaks of the bird flu in Changhua, the county would stay vigilant as Taiwan is situated on routes travelled by migratory birds, the report cited.
|AA Meat Shop hopes to have 40 outlets by year end|
[11 July 2014] AA Meat Shop Sdn Bhd, which operates the An Xin Healthy Meat Shoppes, is expanding rapidly and hopes to have a total of 40 outlets by the end of the year,” Deputy General Manager Whitney Gan told Asian Agribiz. Currently it has 23 outlets in both standalone and in modern trade formats. A division of the CP Group, many of the company’s ready-to-cook chicken products are from the CP brand. “CP items see strong demand from our existing customers due to the quality of the products itself and from the good reputation of the company,” she said.
|China reduces anti-dumping tariffs on US chicken |
[11 July 2014] China has reduced anti-dumping tariffs that penalised US chicken exporters, but the new rates are still set at a substantial 46.6% to 73.8%, according to media reports. The rates vary by processor, with the highest rate falling from 105.4% to 73.8%. The US appealed the original rates to the WTO, which agreed that rates set for different companies were inconsistent, with Tyson for example paying a rate of 50.3% while others paid much more. The Chinese also lowered anti-subsidy taxes, which had varied by processor from 4-30.3%. The taxes, which are added to the anti-dumping tariff, are now set in a much narrower range of 4-4.2%. US chicken exports officially dropped 90% following imposition of the tariffs, but importers told Asian Agribiz that US chicken paws remain popular in China, and that substantial imports had continued via the Hong Kong “grey channel.”
|CPF offers to invest USD166m in Andhra Pradesh|
[11 July 2014] Charoen Pokphand Foods (CPF) from Thailand has offered to invest USD 166 million in India’s Andhra Pradesh state. The company is looking at setting up chicken processing and fish and shrimp feed units, officials said. The offer was made when CPF Vice Chairman Chaiporn Montha and Director Kwan Chai called on Andhra Pradesh Chief Minister N Chandrababu Naidu recently. The chicken processing plant is proposed in Chittoor district, while the fish and shrimp feed plants in East Godavari and West Godavari districts.
|Penang to ban slaughter of chicken in wet markets|
[11 July 2014] Malaysia’s halal authority is set to tighten the rules on religious slaughter in wet markets in Penang because of environmental and food safety concerns. State Religious Affairs, Domestic Trade and Consumer Affairs Committee Chairman Datuk Abdul Malik Abdul Kassim said action would be taken against those who do not abide by the rules and regulations provided under Syariah law. “I get disappointed when Muslim chicken slaughterers are perfunctory about cleanliness and do not follow the standards that have been set according to Islamic law,” he said. One of the steps to be taken is to ban the slaughtering of chickens at wet markets. “This step is to overcome environmental issues such as unpleasant smell and clogged drains.”
|Good US corn and soy progress|
[11 July 2014] The USDA’s latest Crop Progress report said that 75% of US corn is in good to excellent condition, virtually unchanged from last week and well above last year’s report of 68% in these same conditions. Looking at historic data, corn conditions in 2014 had surpassed reports from the last 15 years, topped only by those reported in 1999. Soybeans are also doing well, with 72% of the crop in good or excellent condition. This is unchanged from last week’s report and a 20-year high.
|Thailand runs preventive x-ray for AI |
[11 July 2014] Thailand’s Department of Livestock Development (DLD) introduced a proactive surveillance campaign that aims to x-ray for the Avian Influenza virus throughout the country. Although there has been no bird flu outbreak in Thailand for more than five years, the virus is present in several neighbouring nations. DLD came up with this to prevent a possible recurrence of the disease in the country, said DLD’s Director General Trissadee Chaosuancharoen. Under the campaign, DLD will check for the virus across the country and if found, disinfection and eradication will be carried out immediately. Collection of chicken and duck samples across Thailand will run until end July.
|AA Meat Shop to offer Kurobuta pork in August|
[10 July 2014] AA Meat Shop Sdn Bhd, which operates the An Xin Healthy Meat Shoppes, will introduced its Kurobuta range of pork in August. “We will be the first outlet to introduce pork from the breed of black pigs in Malaysia,” Deputy General Manager Whitney Gan told Asian Agribiz. The company, which obtains all its supply of pork from sister company Chau Yang Farm Sdn Bhd, a division of CP Group, will target high earners who are willing to pay top dollars for speciality pork such as this. “The Kurobuta pork will be priced about double the price of regular pork. Some 20-50 black pigs will be slaughtered per week, depending on market demand,” she said. The Kurobuta pork, from the Berkshire breed, is prized for its rich flavour, texture, juiciness and tenderness.
|Malindo tops feed capacity by 50%|
[10 July 2014] Malindo Feedmill plans to strengthen its poultry feed business by increasing its production capacity by more than 50% from its current output of 900,000 tonnes/year. The company has set up a new feedmill in Semarang Central Java and will establish another one in Makassar. Director Rewin Hanrahan told Asian Agribiz that the Semarang feedmill would have a production capacity of 360,000 tonnes/year, while the company is targeting the same production capacity for the Makassar feedmill. The construction of the Semarang feedmill is nearly completed and once the facility is up and running, the company’s output capacity will increase by 50%, according to Corporate Secretary Rudy Hartono Husin. Another 20% increase, meanwhile, will come from the Makassar feedmill construction of which will commence in the fourth quarter of this year and will be finished in 2015.
|French sausages and ham to be sold in China later this year|
[10 July 2014] According to French pork association Inaporc French products such as saucissons secs (dry sausages), jambons cuits (heat processed pork meat or cooked hams) and jambons secs (cured pork meat or dry cured hams) are some of the processed products that could be exported to China from France later this year. “So far three plants are ready to export products to China, but we have to wait until all the administrative procedures are completed before we are allowed to export. We expect more plants to be export-ready in the next few years,” a spokesperson told Asian Agribiz. “We expect a volume of trade of a few thousand tonnes in the first year.” The first batch of products will be sent to upmarket restaurants, hotels and supermarkets like Carrefour and Auchan.
|Tamil Nadu offers support for poultry farming|
[10 July 2014] India’s Tamil Nadu state government’s ambitious plan to popularise poultry farming in the non-traditional areas of the state has started yielding dividends. The plan offers farmers a 50% subsidy for rearing 5000 birds. The National Bank for Agriculture and Rural Development will bear 25% of this subsidy. Besides helping and guiding farmers to avail bank loans to the tune of USD 14,000, the Department of Animal Husbandry will provide technical assistance to set up the unit. Less than two years after the launch of the scheme, more than 50 poultry units have sprung up in different parts of Karur district.
|Growth in dairy sector through acquisitions and tie-ups |
[10 July 2014] Stagnant sales volumes was seen in most OECD (Organisation for Economic Cooperation and Development) dairy markets in 2013, with acquisitions featuring as an attractive route to grow sales. In 2013, joint ventures were announced between Mengniu and Whitewave and Cofco and Danone while Yili announced a partnership agreement with Dairy Farmers of America. Mengniu took a stake in China Modern Dairy to secure raw milk supply. A further joint venture is pending between Friesland Campina and Huishan. Many markets will not return to the rapid growth rates seen before 2008. In this context, mergers, acquisitions and joint ventures will remain a key avenue to growth and profitability, wrote analyst Tim Hunt in the Rabobank Global Dairy Top-20 report.
|Amrit Group to set up poultry hub in West Bengal|
[09 July 2014] India’s integrated poultry firm Amrit Group will set up a poultry hub in West Bengal that includes a feedmill and a processing unit, as part of its USD 83.7 million expansion for the next two years. “Both the feedmill and processing unit in the poultry hub that we are setting up will be ready in the next few months. These units will be then expanded in a phased manner over the next two years,” COO K Ravindran said. The company also plans to export processed and ready-to-cook poultry products under its brand Fresco Pollo. The company is set to enter the West Asian market by this year.
|China’s beef import volume remains high|
[09 July 2014] China’s beef imports reached 101,000 tonnes in the first four months of 2014, an increase of 34% year-on-year, but lower compared to the astonishing growth of 380% in 2013. Even with this volume, beef imports to China are historically very high, Rabobank’s Beef Quarterly Q2 2014 pointed out. The global beef market meanwhile is expected to regain its positive momentum in the third quarter of the year once the current and temporary high supply has worked through the system. This will support further strengthening of prices, as supply of competing animal protein tightens. “For processors the current stabilisations gives them room to regain margins but prospects are less positive due to the approaching tight supply in most producing regions,” said Rabobank’s Analyst Albert Vernooj.
|Meat One opens outlet in Islamabad|
[09 July 2014] Meat One, a chain of specialty meat shops has opened its first outlet in Islamabad, Pakistan. The upscale meat chain that offers 60 varieties of beef, chicken and mutton cuts is well-established in Karachi where it operates 12 outlets. Meat One is known for its fresh and hygienically prepared meat products. Kamran Ahmed Khalili, Chairman and CEO of Al-Shaheer Corporation, the parent company, said: “Meat One’s popularity in Karachi and Lahore is testament to our superior quality and taste. We have always gone the extra mile to ensure our products are fit and fresh for public consumption. Growing demand encouraged us to take our products to other cities in Pakistan, so consumers have a healthier and fresher alternative.”
|India’s Panchamrut Dairy in expansion mode|
[09 July 2014] The Panchmahal District Cooperative Milk Producers Union Ltd better known as Panchamrut Dairy will inaugurate a new dairy plant and expanded capacity of its cattle feed plant. The new dairy plant that will provide raw milk packets under the Amul brand is at an investment of USD 13.3 million. With the new milk plant, Panchamrut Dairy will be able to process an additional 430,000 litres/day in the first phase, said Managing Director Suresh Patel. Meanwhile the cattle feedmill at Khandiya near Godhra has been expanded with an investment of USD 3 million. The cattle feedmill at Khandhiya currently operates at a capacity of 100 tonnes. An expansion for another 400 tonnes is underway at the factory.
|Vitarich plans focus shift|
[09 July 2014] Philippine feed manufacturer Vitarich Corp hopes to increase its focus on its food business once it exits its court-approved rehabilitation plan, which may happen in September this year. Executive VP and COO Ricardo Manuel Sarmiento said the company plans to launch its ‘golden dory’ product in a couple of months, which it hopes will replace imports of cream dory. Vitarich currently has partner farms for pangasius fish in Rizal and Pampanga province. Mr Sarmiento also said that he expects its feeds business, which currently represents about 60% of the company’s operations, to see higher sales.
|Australia’s Asia Pacific food bowl plan unrealistic|
[09 July 2014] Australian experts said a plan for the nation’s north to become a food bowl for Asia’s growing middle class is not realistic. Australian Agricultural Company Chairman Donald McGauchie said in order for Australia to cater for Asia’s future food needs it needed to double its production across the whole country. Experts said poor soil quality and limited water supply are major obstacles. “We can increase our food production in northern Australia, but whether we can increase it to the extent that it can actually feed billions of people, I think that’s doubtful,” said retired Major General John Hartley, CEO of Future Directions International.
|Japfa planning USD250m Singapore offering|
[08 July 2014] Japfa Ltd controlled by Indonesia’s Santosa family, plans to raise at least USD 250 million from an initial public offering in Singapore, said people with knowledge of the matter. The company is currently gauging investor demand for the share sale and plans to start marketing it this month, said the source. Credit Suisse Group AG and DBS Group Holdings Ltd are managing the offer, they said. Japfa breeds and processes chicken, pork and beef. It also operates dairy farms in China and distributes brands including Greenfields milk in Southeast Asia and Hong Kong. The company’s Jakarta-listed unit, PT Japfa Comfeed Indonesia currently has a market value of USD 1.1 billion.
|Thailand to introduce new pig farm standards |
[08 July 2014] Thailand’s National Bureau of Agricultural Commodity and Food Standards (ACFS) is in the process of drafting a new good practice standard for pig farming in Thailand to conform with present international standards that include rules on animal welfare and food safety. ACFS’s Secretary General Sakchai Sriboonsue said pig farming knowledge and technology has changed a lot since that last standards in 2009, with importing countries introducing more stringent regulations and conditions. “The new standards will feature better guidance and will apply to all farm sizes,” said Dr Sakchai. The draft of the new standard is now at with industry stakeholders prior to its presentation to a committee on agricultural for final approval.
|India's beef exports rise 31% in 2013-14|
[08 July 2014] Beef has become an important foreign exchange earner for India with a 31% increase in quantity and 52% rise in value terms in 2013-14. India was ranked the second largest beef exporter in the world with a 20% market share after Brazil, according to a USDA report. Data from the Agricultural and Processed Food Products Export Development Authority (Apeda), revealed that beef exports totalled 1.4 million tonnes worth USD 4.4 billion last year. The country exports mostly to South East Asia and Middle East. Apeda Chairman Santosh Sarangi said that Vietnam is the largest buyer of Indian buffalo meat, followed by Malaysia, Egypt, Thailand and Saudi Arabia. “The main reasons for growth in exports were the emergence of more state-of-the-art abattoirs and price competitiveness of our meat.” With the opening of the Chinese market, beef exports to China could see a big jump, he added.
|Rejected US corn total reaches 1.25mt |
[08 July 2014] China has rejected about 1.25 million tonnes of US corn since late last year because the shipments contained MIR 162, an unapproved genetically modified strain of corn. China rejected all shipments that contained traces of MIR 162, even if it was mixed with other approved strains, according to Lu Chunmin, spokesman for the Chinese quarantine authority. MIR 162 has been cleared by a preliminary Ministry of Agriculture committee, but that does not mean it will win permission to enter the market. China accepted shipments containing MIR 162 for several years while the MOA was evaluating the strain, but began rejecting shipments following last year’s bumper harvest. Industry sources say the government now has 40 million tonnes of corn in storage, and is not eager to permit imports at this time.
|Indonesia aims to rely less on cattle from Australia|
[08 July 2014] Both Indonesia’s presidential candidates, Prabowo Subianto and Joko Widodo, have promised the country will rely less on Australian cattle imports, in the final debate before polling booths open on Wednesday, July 9. Answering a question about Indonesia’s beef prices, which are among the highest in the world, Mr Prabowo said the country’s domestic cattle industry needed to be strengthened. “What we need to do now is to raise the ability and the capacity of our farmers to increase the amount of livestock in Indonesia,” Mr Prabowo said. “The problem is that bringing cows over for instance from East Nusa Tenggara is often more difficult than bringing in cows from Australia,” he said. Mr Joko, for his part, also advocated a phasing out of imports. He advocated the importation of carcasses versus processed meat. “We can bring the carcasses over, and cut them up here. Thus we can have a range of prices. Not right now, where everyone must buy the [expensive] meat.”
|Researchers find new strains of bacteria good for probiotics |
[08 July 2014] In a study published in the Pertanika Journal of Tropical Agricultural Science, researchers from Universiti Putra Malaysia and Universiti Teknologi Mara in Malaysia reported that three strains, belonging to the species Lactobacillus salivarius, would probably be able to survive and colonise the gastrointestinal tract of chicken as they exhibited good tolerance to acid, bile and pancreatic enzymes as well as a strong ability to adhere to the intestinal wall. In this study, YW Ho and colleagues isolated, identified and assessed Lactobacillus strains from chicken intestines, with a view to selecting potential probiotics.
|Developments in NIR to be presented at conference|
[07 July 2014] Rapid and accurate assessment of ingredient and feed quality is vital for minimising feed cost and achieving more consistent poultry performance. NIR instruments, calibration software and analytical range have come a long way in the past 30 years. Learn more from three experts at Asian Agribiz’s 2014 Poultry Feed Quality Conference. In the NIR session they will address successful commercial application and exciting future developments. Registration and conference details here.
|Poultry producers shift focus|
[07 July 2014] After suffering heavy losses in the third quarter of 2014, some poultry producers in the Philippines have decided to shift part of their operations, even as high as 80%, to cater to the HRI (hotels restaurants, institutions) segment that demands birds that weigh about 1.4-1.5kg, United Broiler Raisers Association President Elias Jose Inciong told Asian Agribiz. He noted that although FCR for the smaller birds is not as efficient, some producers find some advantages. “Instead of harvesting at 33-34 days, [they] harvest at 27-28 days, allowing them seven cycles a year, and less working capital as the birds don’t have to be grown to higher weights.” Plus, the HRI segment is a more stable market.
|Allana starts work on Ethiopian meat processing plant|
[07 July 2014] The Allana Group from India, said work on a USD 20 million meat processing and exporting plant in Ethiopia has commenced. As the first and largest in Africa, it will position Ethiopia as the ‘hub of meat in East Africa’. The plant will start production by September 2014, slaughtering around 200 cattle (25 tonnes) and 5000 sheep/goat (50 tonnes) a day. Initially it is expected to produce 75 tonnes of boneless meat daily for export. “We hope to develop a capacity building program, which benefits not only our project, but the Ethiopian meat sector as a whole,” said Aman Khan, head of Allana Group in Ethiopia.
|Japanese wagyu returns to European market|
[07 July 2014] A cooperative of Japanese farmers celebrated the launch of Japanese wagyu beef back into the European market with a tasting session at a restaurant in London. The EU imposed a ban on Japanese beef in 2001 after an outbreak of BSE in the country. The ban was lifted in 2013 and now, with the first processing facilities pending approval for export to the EU, Japanese producers are hoping to generate strong demand across the continent. The National Federation of Agriculture Cooperative Associations (Zen-Noh) Executive Vice President Yoshimi Nakano said the association had already opened a representative office in London in March. Japan Times said it is eyeing upmarket restaurants and food stores in Britain, France, Germany, Spain and Italy.
|Indian government to develop new aquaculture growth policy|
[07 July 2014] The Indian government is planning to develop a policy for aquaculture growth in the country. “‘Blue growth’ is an important area for sustainable food security. The oceans and the inland waters of our countries offer excellent scope for blue growth,” said Agriculture Minister Radha Mohan Singh. He promoted sustainable growth but admitted that the sector is confronted with “serious inadequacies of planning, funding and management”. India is ranked second in global fish production, inland capture and aquaculture, and seventh in marine capture production/fisheries. Total production was an estimated 9.51 million tonnes. On a global scale, India’s aquaculture accounts for 6.3% of the worlds.
|Meat sector to develop with packaging technologies |
[07 July 2014] New packaging and processing technologies are extending the shelf-life of fresh and processed meat. Food producers can expect better sales and margins, lower environmental costs and product premiumisation if meat is properly packaged, said a report from Rabobank entitled Meat Packaging to Extend Shelf Life. “While consumer preference for fresh over frozen to date has limited sales to mostly regional markets, this could change,” noted the report. Packaged chilled meat and ready-to-eat meat has seen the fastest growth in China of an estimated rate of 20% per year.
Asian Meat Magazine, July/August 2014
[04 July 2014]
Keep up-to-date with progress in meat processing.
Exporting a reality for PFA
While the Pig Farming Area in Sarawak is set to raise the benchmark for pig farming in the country, its abattoir and meat cutting plant – built to comply with export standards – could soon be the first facility in the country to export frozen pork. RACHAEL PHILIP learns that the facility was recently inspected by Veterinary Authorities from an importing country.
CJ to develop brand and raise sales by 90%
Last year the chicken slaughterhouse division of CJ Indonesia recorded good business growth spurring the company to consider increasing its sales by 90% this year. ARIEF FACHRUDIN learns that it plans to build a third slaughterhouse and, within five years, a further processing plant.
QL Livestock Farming courts ISO endorsement
East Malaysian poultry integrator QL Livestock Farming Sdn Bhd hopes to clinch the comprehensive food safety management systems’ ISO 22000 certification for its slaughterhouse by the end of the year. It will then be the only poultry processing plant in the state to have it. The certification will also justify the opening of its fourth broiler farm, RACHAEL PHILIP writes.
Low pressure portioning for higher quality products
Low pressure portioning, allows for effective portioning at higher temperatures with minimal damage to the original meat structure and texture. Processors now can produce a wider variety of end products that have consistent shape and weight, show little defects and are produced at a lower price per kilo, write MAARTEN VAN ZOELEN and MARK BOOM*.
|Philippines produce sufficient corn in 2013|
[04 July 2014] Philippine corn production in 2013 was sufficient to meet the demand of the local feed and livestock industry, a high ranking Agriculture Department official said. Agriculture Assistant Secretary and concurrent National Corn Program Director Edilberto de Luna said with high-yielding seeds and new technology, the country’s corn yield has grown from 3.2 tonnes/ha to 4.2 tonnes in the past few years. The higher output, he said, allowed the Philippines to save some USD 1.4 million in corn imports between 2010 and 2013.
|Ban on Australian chilled beef is lifted |
[04 July 2014] China has lifted its ban on imports of Australian chilled beef, according to an announcement on the AQSIQ website. Chilled beef imports from Australia skyrocketed to 11,068 tonnes in 2013, up from 847 tonnes in 2012. However, the trade was cut off abruptly to zero in 2013 Q4 when China said Australian exporters were only licensed to export frozen beef, and the licenses did not cover chilled beef. Australian exporters went through the licensing and certification process again for chilled beef, and approval was granted earlier this week.
|Chicken supplies assured for Ramadan|
[04 July 2014] Adequate supplies of chicken at fair prices have been assured by officials in Pahang, Malaysia's third largest state. Supply of chicken meat throughout the fasting month of Ramadan and Hari Raya Aidilfitri in Pahang has been assured with the price remaining at USD 2.6/kg and below, reported Bernama. Chairman of the State Committee on Cooperatives, Entrepreneurship and Consumerism Datuk Shahiruddin Ab Moin said 90-120 tonnes of chicken were needed in the state daily and the requirement increased 100% during Ramadan and the Hari Raya festive season. Mr Shahiruddin said there were 384 registered poultry farms in the state with 25 wholesalers supplying more than 90 tonnes of chicken meat daily throughout the state.
|Protein sources continue to dominate discussion|
[03 July 2014] Register early for the 2014 Poultry Feed Quality Conference to learn more about the latest, on-going research on the nutritional quality of soybean meal, the dominant protein source for poultry feeds. The latest developments on soybean meal quality from Europe and the region will be presented by two speakers in the protein session. Recent research from Australia on whole canola seed, a potential protein source for poultry with high metabolisable energy from its oil will be presented by a third speaker. View details here.
|SHH's acquisition of Farm’s Best will facilitate trade|
[03 July 2014] Shandong Hua Hui Food Ltd's (SHH) reverse takeover of Malaysia’s Farm’s Best Bhd will make the Malaysian integrator a Chinese-owned company. “When the deal is completed, because Farm’s Best will be a Chinese-owned company, it would facilitate SHH's exports to Malaysia,” Farm’s Best Corporate Affairs General Manager KT Hoh told Asian Agribiz. He said products such as raw frozen chicken breast meat, unpopular in China, could find its way to Malaysia. “Farm’s Best will be able to expand its customer base through access to the China market through SHH,” said an announcement from the company. According to the announcement the merger would also help fully utilise Farm’s Best existing poultry processing plant which is currently under-utilised, to export processed and further processed chicken products to China.
|Amrit Group launches layer breeder division|
[03 July 2014] Indian broiler integrator Amrit Group has ventured into the layer breeding business, partnering with US-based Hy-Line. It launched its first batch of chicks in Namakkal, Tamil Nadu. In financial year 2014-15, the group said it will first focus on the three major poultry producing states in south India – Tamil Nadu, Andhra Pradesh and Karnataka – for layer breeders. It then intends to expand to the north and north eastern states. The company aims to capture a market share of 30% by 2017-18, a statement from company said. “By partnering with Hy-Line International we have introduced the Hy-Line breed that is designed for excellent livability, superior feed efficiency and good egg quality, increasing the potential profit of the growers,” said Chief Operating Officer K Ravindran.
|US buyers should support Thai shrimp packers|
[03 July 2014] Buyers should support the Thai shrimp industry and not walk away, said Todd Rushing the co-founder of supply platform Shrimp Trader. “I’ve been reading how some importers and customers are walking away from Thailand,” said Mr Rushing. “I feel this does more harm than good. It was sad seeing the Thai production lines operating at 25% capacity. Sadder yet, will be seeing these hardworking people lose their jobs if US buyers pull out,” he said. “Rather than abandoning Thailand, I’d like to see some buyer step up and say 'we support the Thai shrimp industry and will work with them on combating TIP atrocities',” he said. Thailand was downgraded to Tier 3 on the US State Department’s Trafficking in Persons (TIP) report.
|Revenue in processed poultry meat market to reach USD251b |
[03 July 2014] The global processed poultry meat market has grown exponentially in the last decade and this growth is expected to continue, Research and Markets latest release revealed. The market is estimated to fetch USD 251 billion in revenue by 2018 with a projected CAGR of 5.9%. In 2012 the market was worth USD 180 billion. Factors such as the increasing demand for protein rich convenience food and busy lifestyles of two-income middle-class families of developing countries are driving the market for processed poultry meat. The ever-growing population, especially in developing nations, and their increasing income are expected to result in a rise in demand for food, both, fresh and processed.
|Global dairy prices to improve in Q4|
[03 July 2014] Global dairy prices softened considerably through Q2 as a result of improved milk production in export regions and the easing of forward purchasing by China. “The pull back in Chinese purchasing has been particularly significant, with evidence that the Chinese industry has accumulated excess inventories after a period of vigorous buying, improved local milk production and weaker local sales. Current prices in the international market have dropped below what we see as sustainable in the medium term,” explained Rabobank analyst Tim Hunt in the Dairy Quarterly Q2 report. “We expect little improvement in prices until late in 2014 or early 2015,” he added.
|Malaysian producers and retailers prefer modern abattoirs|
[02 July 2014] Although there still are a number of Malaysian pig farmers who slaughter their pigs at poorly-maintained backyard set ups there are many other farmers and pork sellers that choose to have their pigs slaughtered at a modern abattoir. “They prefer the modern pig abattoir because they want the freezing facility,” Chuang Hock Meng, the Pig Unit Chairman of the Federation of Livestock Farmers’ Associations of Malaysia, told Asian Agribiz. About 90% of pork is sold at wet markets where pork is displayed on countertops and left hanging on hooks throughout the operating hours. “The freezing facility gives the pork a longer shelf life, it reduces the smell and flies at the retail point,” he said. In Peninsula Malaysia pork is sent to Tip Top Meat Sdn Bhd in Rawang, the country’s first modern pig abattoir, about 50km from Kuala Lumpur.
|Poultry prices to take-off|
[02 July 2014] Rabobank's Poultry Quarterly Q2 has recorded a bullish trend driven by relative price support from high beef and pork prices alongside demand recovery and a more balanced supply and demand situation in most regions of the world. This is expected to lead to an improvement in profitability for the global poultry industry. "Under improved global market conditions, a slight increase in global chicken prices is expected," commented Analyst Nan-Dirk Mulder. "We see an increasingly balanced market, where supply discipline is more the order of the day and improving margins will be the likely result. However, markets remain volatile and any change in fundamentals, especially from the supply and feed side, will impact global prices. Suppliers should look to keep production growth disciplined," he said.
|Thai shrimp exports to decline 20% this year|
[02 July 2014] The total value of shrimp exports will probably drop by 20% this year as the decline continues for the third consecutive year, the Kasikorn Research Centre warned. The centre issued the forecast as the value of shrimp exports in the first five months of this year amounted to only USD 691 million, a 22% decline year-on-year. The fall happened in all main markets, namely the US, Japan, Europe and Southeast Asia. However, exports increased in some markets such as Germany, Hong Kong and South Korea, the research centre reported. The main cause of shrinking exports is the early mortality syndrome, which has affected Thai shrimp production since 2012. Another cause is the negative image of shrimp export sector in the eyes of foreign buyers, due to alleged abuse of foreign workers and human trafficking in the industry, the Bangkok Post reported.
|Malaysia hopes to produce 2 million tonnes of fish/year|
[02 July 2014] Malaysia is on its way to achieving its target set under the National Agro-Food Policy (2011-2020) to produce 2 million tonnes of fish/year. According to Agriculture and Agro-based Industry Minister Datuk Seri Ismail Sabri Yaakob this policy has been put in place to address the issue of food supply in Malaysia. “So far, we have achieved 20% of this target. The remaining 30% can be achieved if all quarters cooperate in efforts to empower the aquaculture industry in the country,” he said. “The focus is on aquaculture activities and no longer merely on marine catch because of several factors, like global warming which has impacted marine life.” Food fish production last year stood at 1.74 million tonnes, valued at USD 3.29 billion. The total value of fish and fish products traded was USD 1.8 billion, contributing 1.3% to the national gross domestic product and 12.5% to the agriculture GDP.
|Indian poultry industry asks for differentiation|
[02 July 2014] The USD 10 billion poultry industry in India is seeking government support for a safer chicken industry in the country. The industry is requesting that the government differentiate value added meat from modern units from freshly slaughtered birds when it comes to taxation and allocation of funds for the Poultry Technology Upgradation Fund. Addressing delegates at Meat Tech 2014, Suguna Foods Managing Director GB Sundararajan said: “There exists a Poultry Technology Upgradation Fund but no allocation has been made.” He said that the industry requires a yearly minimum of USD 17 million to be allocated for the scheme and the government has to invest in developing the cold chain.
|Low local demand hampers growth of equipment market |
[02 July 2014] The processed poultry equipment market, valued at USD 2.7 billion in 2012, is projected to grow at a CAGR of 6.7% from 2013-18, Research and Markets latest release revealed. The major constraint of this market is the small and medium organisations in Asia-Pacific, Latin America and South Africa that cater to the local market which cannot afford costly equipment. Lack of awareness among the processors about the technological advancement is another restraining factor. The trend in the processed poultry equipment market is shifting towards convenience food, hygiene, safety and custom fillets. R&D activities especially in Europe, to develop low-cost production techniques are expected to add pace to the growth rate of the processing equipment market.
These headlines and more in Asian Poultry Magazine, July 2014
[01 July 2014]
Udomchai downsizes for better results
While many layer farmers in Thailand are fighting to survive with the frequent fluctuation in egg price, Udomchai Farm has stayed afloat with a small organic free range egg operation. Focusing on quality, not quantity, the farm opted for smart farm management and premium feeding to promote flock health and generate quality eggs, writes NITSARA THONGRUNG.
FRESHmart pioneers modern chicken retail
FRESHmart is a pioneer in West Kalimantan, Indonesia, for its chicken meat retailing operations. At the FRESHmart shops, consumers find quality chicken and chicken meat products in chillers and freezers within a clean and comfortable shopping environment, writes ARIEF FACHRUDIN.
What if poultry was the new fish?
The ability to enrich eggs with DHA, Omega-3 PUFA provides the egg industry with a unique opportunity to produce an innovative, quality and value-added premium product claims ALEX TSAPPIS.
Ten years of vaccination against AI in Asia
MARCELO PANIAGO analyses the use of avian influenza vaccines in Asia and discusses some critical points related to it as the base to evaluate their use as an auxiliary tool in the control and eradication of avian influenza outbreaks in endemic regions.
|US requires racto-free certification for China-bound pork |
[01 July 2014] New US regulations going into effect today require pork bound for China to be certified ractopamine free. US pork exports to China have already declined because only three US plants earned certification, two of them owned by Chinese giant Shuanghui through their Smithfield subsidiary. The certification program was originally designed for the Russian market, but China asked to be included in January this year. China forbids ractopamine in pork and complained that some US shippers were selling pork from pigs raised on ractopamine. Europe already forbids ractopamine, but US exports are expected to decline until more US plants switch to racto-free production.
|Indonesia confirms cattle imports to secure supply|
[01 July 2014] Indonesia’s Trade Ministry has issued permits for the importation of 167,000 heads of live cattle in the third quarter, which will help with meat supply during Idul Fitri. Of that figure, around 80% will be feedlot cattle and the rest will be slaughter-ready cattle, according to Trade Ministry Director General for Foreign Trade Bachrul Chairi. Mr Bachrul further said that the government has vowed to maintain the price of beef below USD 8.34/kg during Ramadhan and Idul Fitri. The quota for cattle import in Q3 is much lower than 286,100 heads in Q2.
|Jollibee eyes China, US expansion|
[01 July 2014] Jollibee Foods Corp (JFC) from the Philippines seeks to expand especially in China and the US, through acquisitions and organic expansion. JFC Chairman Tony Tan Caktiong said the company is currently looking at an acquisition in the US, saying that this would help speed up the growth of the company’s international business. Meanwhile JFC Chief Finance Officer Ysmael Baysa said its operations in China have hit the 500-branch mark. The country accounts for 20% of the company’s total international sales and 12% of its worldwide earnings. JFC is gunning for a 50-50 ratio of its local and international operations. It will introduce its brands in Canada and Kuwait in 2015.
|Conference to continue focus on enzymes|
[30 June 2014] Understanding and commercial application of feed enzymes continues to be a major research focus. They have greater economic potential than ever for improving utilisation of ever more costly feeds. Enzymes return as a theme at this year’s Asian Agribiz 2014 Poultry Feed Quality Conference. “We have an impressive group of leaders in the field joining us at this conference to update us on developments with protease, phytase and carbohydrases,” said Rex Holyoake, CEO of Asian Agribiz. Get more details here.
|Suguna to buy back IFC stake|
[30 June 2014] India’s Suguna Foods is in the process of buying back International Finance Corporation's (IFC) stake of about 5% in the company. Sources said private equity investor IFC would exit with threefold returns. In 2006, the World Bank’s investment arm had invested USD 11.25 million as equity, according to an IFC disclosure. “We are buying back the stake from IFC and the process will be completed by this November,” said Suguna Foods Managing Director GB Sundararajan. The company had no plans to go for an initial public offering or raise funds from any other private equity fund, he added. This was said to be IFC’s first investment in the Indian poultry sector; its investment was aimed at supporting the company’s expansion and developing global competency. Experts said while private equity funds have expressed interest in investing in the USD 10 billion poultry sector, many family-run companies are not open to this.
|CPF on target for growth despite labour issue |
[30 June 2014] Thailand's Charoen Pokphand Foods (CPF) is confident that it will generate a sales growth of 15% this year despite the 'slave labour' issue that has led to some international customers temporarily suspending imports from the company. CPF’s President and CEO Adirek Sripratak confirmed that the company does not have fishing boats or a fishmeal factory that employs illegal labour and accepts fishmeal only from legal producers that are not involved in abused labour. Mr Adirek said for the U.S. market where CPF has more than 100 customers, only one has suspended purchase and Carrefour stores in some countries have returned to buying CPF products after receiving clarification from the company, while Tesco has continued trading with CPF as usual. CPF said only 0.002% of sales has suffered from this situation.
|Southeast Asia’s record import of corn to continue|
[30 June 2014] In the last 10 years Southeast Asia’s meat production grew to almost 18 million tonnes from 12 million tonnes. Feed production has grown in tandem with this development, noted US Grains Council Regional Director Adel Yusupov. He said there is now a market for 30 million tonnes of corn to be used as raw feed material in the region. “Considering local corn production of 22 million tonnes, last year’s record corn imports of 8.5 million tonnes are totally justified. This trend is likely to continue as the feed industry’s exponential growth has greatly limited any opportunities for local corn production to catch-up with demand,” he wrote in a report. He said global trading houses opening trading offices in Singapore to service the region is “exciting development”.
|China, Australia hope for FTA by year’s end |
[30 June 2014] China and Australia are aiming to sign a free-trade agreement by the end of this year, Australian officials said after talks with Chinese officials. The Australian meat and dairy industries would be major beneficiaries of a deal, because it would level the playing field with New Zealand, which already has an FTA that gives its products as much as 12% price advantage over similar Australian products in China. The two countries are hoping to have a deal ready for signing when Chinese President Xi Jinping visits Brisbane in November for a G20 meeting.
|Odisha to increase poultry production|
[30 June 2014] India’s Odisha State is mulling a poultry policy in a bid to produce 10 million eggs/day and 100,000 tonnes of broiler meat/year by 2020. A presentation on the proposed policy framework was done by Commissioner-cum-Secretary, Department of Fisheries and Animal Resources Development Bishnupada Sethi. Mr Sethi explained that the policy would aim to address various inter-linked concerns through a simultaneous and multipronged action with an emphasis on improvement in production technology and infrastructure, driving capital formation, restructuring the incentives and streamlining the institutions for poultry development. He said that with the National Livestock Mission in place, the state would take advantage of the policy framework and plans to add 6 million new capacities in the commercial layer farming sector.
|Pakistan’s poultry sector grows 8-10%|
[30 June 2014] The current investment in Pakistan's poultry industry has reached more than USD 2 billion and the sector is showing growth of 8-10% annually. It is considered one of the most important and vibrant segments of agriculture in the country, and contributed 1.3% to the GDP in the 2013-14 fiscal year. Sources at the Ministry of National Food Security & Research said poultry meat makes up 28% of the total meat production in the country. Value-added production has increased from USD 1.2 billion in 2012-13 to USD 1.3 billion in 2013-14.
Highlights in Asian Feed Magazine, July 2014
[27 June 2014]
Royal De Heus and Wellhope: A win-win in China
Investing in China is all about finding that right balance. The Royal De Heus Group’s technical knowhow and management expertise paired with Wellhope Agri Tech’s feedmills managing strategy and its sales and distribution advantage has created a winning relationship, RICH HERZFELDER writes
Southeast Asia readies for AEC
With just a year-and-a-half to go before the launch of the Asean Economic Community, Asean member countries are working hard to get their upgraded facilities up and running, accreditation papers in order and farms and feedmill capable to meet rising orders.
iFeed Philippines banks on quality
Just over four years since its entry into the market, the finished feeds division of Easy Bio Philippines Inc has seen its volume rise three-fold. ISA Q TAN writes that the company is not stopping as it looks to tap into growth opportunities in the Philippine market.
Using NIR to establish the quality of feed ingredients
Considering amino acid variation and over-processing effects on amino acid digestibility in swine feed formulations can improve feed quality and prevent loss of animal performance write SHELIA H. RAMOS, H. LIU and C. K. GIRISH.
The true impact of non-starch polysaccharides in pig diets
With a clearer understanding of how NSPs affect nutrient utilisation and how NSP-degrading enzymes can be used to overcome those limitations, PETE WILCOCK and GUSTAVO CORDERO write that it should also be no surprise that the most consistent and reliable results currently come from use of highly targeted, dose-optimized, single enzyme products.
|Thailand clarifies 'slave labour' issue with importing countries|
[27 June 2014] Thailand has introduced an urgent roadmap aimed at clarifying the 'slave labour' issue in the fishery industry with importing countries after the US reduced Thailand to Tier 3 Watch List of the Trafficking In Persons Report in 2014 (TIP Report). Srirat Rastapana, Permanent Secretary of the Commerce Ministry said the ministry, as a core body overseeing international trade, will send delegations to importing countries to clarify that Thailand’s fishery and seafood industries do not use slave labour. Meanwhile, the Thai Fishery Producers Coalition that comprises of the Thai Frozen Food Association, Thai Shrimp Association, Thai Feed Mill Association and Thai Fishmeal Producers Association has reiterated that there is no slavery involved in the shrimp supply chain. It confirmed that child and forced labour will not be tolerated and the group has pledged full cooperation with Thai authorities to fight human trafficking, within the supply chain and in related activities.
|Soybeans, China’s largest agricultural import in 2013 |
[27 June 2014] Soybeans remain China’s largest agricultural import by far, with Brazil and the US being the largest suppliers, according to a USDA analysis of final China Customs figures for 2013. China imported more than USD 38 billion worth of soy in 2013, with slightly more than half coming from Brazil and slightly more than a third from the United States. China's soy imports, chiefly for the animal feed market, are expected to rise again this year. No meat products figured among China’s top imports, but almost USD 1.2 billion worth of processed chicken ranked No. 7 among China’s top agricultural exports, with more than 85% of the chicken going to Japan.
|CP Prima to increase Fiesta Seafood production|
[27 June 2014] Indonesia’s largest shrimp and aquafeed producer Central Proteinaprima, popularly known as CP Prima, this year has targeted to escalate the production of its Fiesta Seafood products such as shrimp nuggets, shrimp roll and ebi fry by 1500 tonnes. Marketing Director Sutanto Sudjaja said the increasing demand for processed shrimp and fish products in the country led the company to increase its production. CP Prima’s Fiesta Seafood products are sold at major retailers and also in institutional markets such as hotels and restaurants. “We target to sell our products at 4000 retailers in Indonesia,” said Mr Sutanto, adding that the products will also be sold at CP Indonesia’s Prima Freshmart retail outlets.
|Namakkal raises egg prices |
[27 June 2014] Namakkal, India's egg basket, has raised egg prices in response to demand from the Kerala and Hyderabad markets. The increase of demand in Hyderabad now has an impact in the price of eggs in Namakkal, said R Chinnaswamy, a distributor in Namakkal. "The price of eggs is around USD 0.05/egg. The ban on fishing in the west coast of the country, such as in Kerala, has increased demand for eggs and generally, demand is high during the rainy season causing prices to rise," said VS Balasubramaniam, Senior Manager - Coordination, National Egg Coordination Committee (NECC) Namakkal Zone. Poultry farms in the Namakkal cluster in Southern Tamil Nadu produce around 31 million eggs/day. About 40% is consumed by the Kerala market and by schools in Tamil Nadu under the free meal program.
|Special price for early registration|
[26 June 2014] As in the past, early registrations for the 2014 Poultry Feed Quality Conference by Asian Agribiz Conferences will enjoy a special price. Early bird registration closes on July 16. The conference will be held at Aloft Kuala Lumpur Sentral that is situated in the new business hub of Kuala Lumpur. It is just about 40 minutes away by train from the Kuala Lumpur international airport. View details here.
|Sierad to increase food production during Ramadhan|
[26 June 2014] To respond to the increasing demand for processed chicken products during Ramadhan, Indonesia's Sierad Produce plans to increase its nugget, sausage and meatball production by 50%. “During normal months we only produce around 1000 tonnes, but during Ramadhan we plan to produce around 1500 tonnes,” Director Aryanus Syahrudin said. “It is estimated that demand for chicken and its processed products will increase by 20% during Ramadhan. So we will increase our supply to retailers and also to QSR chains such as KFC and McDonalds.” Sierad will also increase its products supply in Sumatera, Sulawesi and Kalimantan.
|Short course on maximising animal performance|
[26 June 2014] The 20th SE Asian Feed Technology and Nutrition Workshop organised by the U.S. Soybean Export Council and the U.S. Grains Council in Manila, the Philippines from August 4-7, will help participants understand how to maximize the performance of pigs and poultry by understanding how animals utilise nutrients. Participants will learn how combining ingredients in the most economical way will help meet all energy and nutrient requirements of the animals. For details contact email@example.com.
|WH Group seeks to revive failed IPO|
[26 June 2014] WH Group is looking to revive its Hong Kong IPO only two months after its previous market offering collapsed, according to a published report. US investment bank Morgan Stanley is informally seeking cornerstone investors for a deal priced 20% below the original failed offer, according to a report in the South China Morning Post. WH Group, formerly Shuanghui, needs the funds in order to repay money it borrowed last year to buy Smithfield for USD 4.7 billion. The original IPO collapsed in April because investors thought the price too high. The offering was also troubled by poor market conditions, lack of cornerstone investors, revelations of massive payments to company executives and confusion among the 29 investment banks who got a piece of the deal.
|Godrej Tyson Foods allocates USD10m for capacity expansion|
[26 June 2014] India's Godrej Tyson Foods that markets fresh chilled chicken under Real Good Chicken (RGC) brand and ready-to-eat products under the Yummiez brand has invested USD 10 million on expansion of plant capacities. “We are expecting RGC to achieve a 24% market share in fresh chilled chicken [amongst organised players] and 10% for Yummiez in 2-3 years,” COO Arabind Das said. Last year, the company expanded its plant capacity by 80% in line with its future growth strategy. The company plans to expand its business by investing in chillers and freezers. “We would be investing around USD 1.6 million in the next 2-3 years in chillers and freezers. Last financial year, we invested USD 831,000,” he said. Presently, RGC is available in five cities – Mumbai, Pune, Bangalore, Hyderabad and Chennai – and Yummiez in 60 cities.
|Chicken price spikes in Nepal |
[26 June 2014] Owing to low production in the country amid increasing demand, Nepal Chicken Sellers Association (NCSA) and Nepal Poultry Federation (NPF) have increased the price of chicken by USD 0.15/kg to USD 3.6, effective June 22. Likewise, the price of live chicken has also been raised to USD 2.6/kg from USD 2.5. “The demand for chicken is rising but production has declined by 50% as compared to last year,” said Narayan Hari Khatri, Vice President of NPF. “Daily demand is 300 tonnes while the supply is below 200 tonnes.” Mr Khatri added that the poultry population declined after the government culled over 2 million chickens last year due to bird flu.
Livestock farmers in SE Asia on alert for El Nino
[25 June 2014]
The El Nino weather phenomenon that is expected in the second half of this year could result in drought and higher temperatures. Agricultural and livestock production in the Asia-Pacific region could be affected.
According to the Food and Agriculture Organisation’s Global Information and Early Warning System (GIEWS), the latest meteorological forecast indicates a 70% probability of El Niño occurring during the Northern Hemisphere’s summer and 80% during the autumn or winter.
Although no precise quantitative correlation has been established between the occurrence of El Niño and changes in agricultural production, a general pattern of potential changes in weather conditions and the possible impacts on agricultural production is given. The effect on agriculture will depend on the timing and severity of the El Niño, as well as the crop calendar in a particular region, it cited.
Hot weather hits protein production in Thailand
In Thailand, Geo Informatis and Space Technology Development Agency, a public organisation, forecast earlier this year that the country will experience the most-severe-in 10 years El Nino phenomenon. Hot weather in April and May dented egg supply and pig production in Thailand. Late rains led to a drought in several areas, slashing corn and soybean production.
Profitability will be challenged
Thai pig raisers fear that the health and productivity of swine herds will be challenged. Heat stress will cause the pigs to eat less and result in a weaker immune system, Kiddivong Sombuntham, Secretary-General of the Thai Swine Raisers Association in Thailand told Asian Agribiz. It will take longer for the pigs to reach market weight and thus impact the bottom-line. Growers should start looking at ways to reduce the impact of the warm weather on their herds, he said.
Grain crops affected by late rains
Late rainfall this year has delayed new crop supply to the market by about a month, Boontham Aramsiriwat, Secretary General of the Thai Feed Mill Association told Asian Agribiz. “New supply is expected only in August or later, and if the weather remains hot, next season’s planting will also be affected,” said Mr Boontham. Corn planting area is expected to decline due to the drought and hot weather. The price is hovering at USD 0.31/kg at the moment. “Taking into consideration the current raw material prices, feed cost is staying at a rather high level at the moment,” Mr Boontham said. The Thai Feed Mill Association is surveying corn crop plantation, rain volume and other relevant conditions before coming up with production forecast for this crop year, according to Mr Boontham.
Heat stress will impact productivity
Indonesia’s Meteorology, Climatology and Geophysics Agency predicted that El Nino will begin to roll out this August. Regional Sales and Technical Manager of Novogen Suryo Suryanta said heat stress could lead to a 5% decrease in egg production due to El Nino, he told Asian Agribiz. This could lead to a gently spike in prices, but not to the extent of affecting the purchasing power of consumers. “Demand will remain high due to school holidays and Ramadhan.”
Prolonged drought in Indonesia
CP Indonesia’s General Manager Eastern Region, Syahrir Akil told Asian Agribiz that the most feared effect of El Nino is a prolonged drought that will affect the supply of clean water for farms. “Quality water supply is very important for the birds.” As a precaution, the government and related research institutes have plans for cloud seeding to induce rain and ensure the supply of clean water. “Farmers with open houses should add fans and add vitamin C to the birds’ diet to tackle heat stress. They should also lower the stocking density from 12kg/m2 to 10kg/m2.” In this situation, farmers with temperature-controlled houses will be more secure, he added.
Malaysian farmers prepared
Farmers in Malaysia remember the severe haze and drought of 1998. They know that pigs and poultry in open houses suffer and are most likely prepared this time round, QL Agro Resources Sdn Bhd Director, Dr Ng Siew Thiam told Asian Agribiz. Dr Ng said the problem can be tackled from a nutritional and farm management aspect. “Farmers are advised to market the animals early to bring down the stocking density as pigs and broilers suffer most when they are big in size,” he said. For layer hens, farmers must monitor their body weight to prevent obesity or overweight. They should consider lowering the energy content in the feed while ensuring that nutrient levels are sufficient as feed intake will reduce. He suggests feeding broilers in the evenings when it is cooler, to reduce mortality from heat stroke especially among bigger birds.
Pig supply in the Philippines as usual
Philippine pig producers are on alert although current growing conditions are expected to improve with the coming rainy season, Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz. He noted however, that they will be monitoring the situation especially how El Niño will affect corn production. Previous El Niño episodes have led to less rainfall but stronger typhoons and major corn production areas like Region 2 are located in the typhoon belt. If necessary, he said, animal and feed producers can import substitutes like feed wheat to augment any possible shortfall in corn production.
Corn production on schedule
The Philippine Department of Agriculture (DA) disputed reports of delayed corn planting due to the El Niño phenomenon that is expected to hit the country this year, saying that corn production is on schedule. “Planting in major corn areas commenced in the third week of May,” Assistant Secretary Edilberto de Luna told Asian Agribiz. He said that in the event of El Niño, the Corn Program “has an existing Quick Response Fund for cloud seeding operations and provision of shallow tube wells. Assuming that areas have already been affected by El Niño phenomenon or any other adverse condition, the DA, through the Corn Program, is providing seeds for the farmers to quickly replant.”
|High farm price pushes raisers to sell pigs earlier|
[24 June 2014] High farm prices are pushing some pig raisers in the Philippines to sell their pigs at lower weights, several members of the country’s pig industry told Asian Agribiz, with traders noting that for the past few weeks, prices have been up to as much as USD 3.00/kg for commercially raised pigs. In particular, they say, backyard raisers, which make up the bulk of the industry, have been unloading their pigs at weights as low as 75kg, especially during the last few weeks as the new school year began. Meanwhile, high demand coupled with tight supply has also pushed up piglet prices.
|Self-sufficient Malaysia imports 7.4% more chicken cuts|
[24 June 2014] The Malaysian poultry industry saw a 7.4% increase in imports of chicken cuts and products in 2013 compared to 2012. The imports are likely to jeopardise the viability and sustainability of the local poultry industry which is already suffering from prolonged high cost of production, noted a report from the Department of Veterinary Services (DVS) Malaysia. “Since local sources are more than adequate (about a 128% self-sufficiency for chicken and duck meat) the poultry industry has to innovate and explore export markets especially among Asean member nations in the true spirit of the Asean Free Trade Agreement,” said the DVS report.
|First licensed vaccine approved for PEDv|
[24 June 2014] The USDA's Animal and Plant Health Inspection Service (APHIS) has issued a conditional licence to an Iowan firm for a vaccine that may help in the battle against porcine epidemic diarrhoea virus (PEDv). Harrisvaccines has been awarded the first licence of its kind. Sows will be vaccinated with the intent that they build antibodies and transmit them to their young through their milk. Conditional licences are issued following full safety, purity testing and an expectation of efficacy. According to APHIS, preliminary studies have been promising but Harrisvaccines will continue working towards completing the requirements for a full licence.
|Pioneerindo to add 40 new CFC outlets|
[24 June 2014] Responding the fast growth of chicken based QSR's in Indonesia, Pioneerindo Gourmet International, the operator of California Fried Chicken (CFC) outlets, has allocated USD 7 million as capital expenditure for business expansion. The company said this year it will add 40 new outlets where one new outlet will cost the company around USD 125,000. The company will also renovate its 30 old outlets and upgrade its products quality. With the expansion plan, Pioneerindo targets to achieve a 15% growth this year. Last year the company recorded a total income of USD 33 million.
|Indian authorities keen to phase out antibiotics|
[24 June 2014] The Drug Controller General of India and India’s agriculture ministry have informed state governments to phase out antibiotics and hormones in animal feed. The new proposal also calls for enforcement of existing rules managing the amount of time that an animal received drugs for medicinal purposes and when food products from that animal are sold. One goal of the new program is to make farmers more sensitive to the risks that using antibiotics and hormones in animal feed pose to humans, including reducing their effectiveness in treating human diseases as bacteria become resistant to the antibiotics.
|Britain-China discuss beef, lamb trade|
[24 June 2014] Britain is hopeful that a deal can be reached with China, which would see its beef and lamb exported to the country for the first time in 30 years. China’s 30-year ban on British beef and lamb was imposed due to BSE. A deal with China could be worth up to USD 205 million to the UK economy. British Prime Minister David Cameron's visit to China in December yielded an export deal for pork products worth up to USD 77 million. Negotiations for a new agreement between the Department for Environment, Food and Rural Affairs and the Chinese authorities is expected to realise British beef and lamb supplies to China.
|Fresh insights into carbohydrates and fibre in poultry diets|
[23 June 2014] Asian Agribiz’s 2014 Poultry Feed Quality Conference will start off on August 21 with presentations by three experts on carbohydrates and fibre. Conference Director, Tim Walker said carbohydrates, the major component of feeds, in addition to starch for energy, include fibres that can be beneficial (structural), inert or anti-nutritional (soluble NSP). “The speakers will give us fresh insights into the chemistry, analysis and nutritional characteristics of carbohydrates and provide the latest information on fibre in poultry nutrition. View the conference website here.
|Pork, chicken retail prices to remain high|
[23 June 2014] Retail prices of pork and chicken in the Philippines are likely to remain high at least for the next month, Philippine Department of Trade and Industry Secretary Gregory Domingo said during a briefing of the National Price Coordinating Council. He noted that the hot summer has slowed growth of chickens while porcine epidemic diarrhoea (PED) has tightened pig supply. While the chicken situation is expected to be resolved in about a month, he said that for pork prices, “nothing is definite since we are dealing here with pests, which is also a global problem.” Industry observers have noted that PED has affected many farms in the country, however there has been no official declaration of an outbreak from industry players and the Agriculture Department. However, Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that there will be a softening of prices as demand is expected to lessen with the opening of the new school year, even as the rainy season leads to faster growth of fattening pigs.
|USSEC, USGC present fundamentals of nutrition |
[23 June 2014] The U.S. Soybean Export Council and the U.S. Grains Council are organising a workshop aimed at presenting the fundamentals of nutrition to maximize animal performance. Designed as a short course, it will benefit feedmill managers, nutritionists, and feed formulators in the Southeast Asian animal feed industry. This 20th SE Asian Feed Technology and Nutrition Workshop will be held from August 4 – 7, in Manila in the Philippines. For details contact firstname.lastname@example.org.
|Calata Corp acquires meat supplier|
[23 June 2014] Philippine agribusiness company Calata Corp has finalised its acquisition of a majority stake in Brookfields Meat Inc, a corporation that will take the meat business of the Galicia Group that supplies meat products exclusively to major supermarkets in the country. In a disclosure, the company said it wants to include “the meat business into its existing revenue streams such as feeds distribution business and hog breeding and growing towards the objective of finally achieving its farm to plate model.” Calata plans to aggressively expand its meat business by forging major supply agreements with large supermarket chains, including Puregold, which has more than 200 branches across the country.
|CPF clarifies labour issue with Carrefour |
[23 June 2014] Thailand’s Charoen Pokphand Foods Plc (CPF) is in the process of clarifying the situation with French retailer Carrefour which suspended shrimp imports from CPF after a foreign media alleged the use of slave labour in the Thai fishery sector. Adirek Sripratak, President and CEO of CPF said Carrefour’s decision was made based on misinformation. Mr Adirek confirmed that CPF opposes human trafficking and abuse of labour and will cooperate with all relevant parties to resolve and problems in this sector. He added that the company pays a premium for fishmeal with certification. CPF’s exports to Carrefour accounted for only 0.03% of its sales in 2013, or worth around USD 4 million. Mr Adirek hopes trading with Carrefour will return to normal once the situation is clarified.
|Cargill China boasts of country’s fastest processing line|
[23 June 2014] Cargill China’s poultry processing plant in Lai’an Anhui Province, is fitted with the country’s first 13,500 birds/hour, or 225 birds/minute line. “We wanted to combine the world’s most advanced poultry processing equipment and technology with our own innovative initiatives. The primary processing production lines in Lai’an are among the fastest in the world, with a high level of automation,” said Cargill China President Robert Aspell. The plant is now running at its full design speed. The company hopes to produce some 176,000 tonnes of poultry products per year. The kill and evisceration lines are fully automated, as well as processing of the valuable giblets.
Onsite at Indo Livestock with ARIEF FACHRUDIN
[20 June 2014]
Evonik’s MetAmino plant in Singapore is near completion
Evonik Nutrition and Technical Sales Director for Asia South, Dr Girish Channarayapatna said the company’s 150,000 tonnes/year MetAmino (DL-methionine) plant in Singapore is near completion. “Production will start in the second half of this year. The plant employs the most advanced technology to ensure the product quality meets global standards.” MetAmino is an amino acid used for animal feed, particularly for pigs, poultry and fish. At the show, Evonik showcased its amino acid products and probiotic Gallipro. It also showcased its AMINOProx to predict nutrients from proximate analysis and phosphorus in feed raw materials.
Big Dutchman setting up new warehouse
Big Dutchman Indonesia is currently setting up a new warehouse located in West Jakarta with bigger capacity. “We are targeting completion in the middle of 2015,” said Managing Director Niels Heyer. “With the new bigger capacity warehouse, we will have more spare parts available and we can react faster to give better service to our customers.” Mr Heyer added that the company plans to introduce new layer cages for open sided houses in the near future.
Marel prospers in Indonesia
Marel has introduced several new systems to the Indonesian market. One of them is Aeroscalder. This system bypasses the problem of cross contamination during scalding by passing moisturised hot air at high speed over poultry carcasses. “The Aeroscalder is targeted for regions where water supply is limited, for instance in eastern Indonesia. This system saves up to 75% water and up to 50% power,” said Rudy Hudin, Country Manager for Indonesia. Talking about projects, Mr Rudy said that up to June 2014 the company had secured eight new poultry processing projects consisting of six greenfield projects and two upgrading projects. “We are happy that our business in Indonesia is quite successful.”
Trouw Nutrition to conduct mycotoxin surveillance
Trouw Nutrition Indonesia plans to conduct mycotoxins surveillance on local corn this year. Country Manager Harris Priyadi said the company will track mycotoxin contamination of local corn starting from post-harvest to warehouse. “We will take samples from different locations in Indonesia and then test it on the spot with specific rapid test kits,” said Mr Harris. “Through the surveillance, we will get actual data including the intensity of mycotoxin contamination from post-harvest to warehouse. This data would be valuable in helping us provide the best solutions to farmers in controlling mould and mycotoxins especially with home mixed feeds.”
Vi-COR introduces Aviator
Vi-COR introduced its refined carbohydrate Aviator that replaces products in poultry diets that contain mannan oligosaccharide and beta glucans. Asia Business Manager Maggie Chuang said the product naturally enhances immunity, improves gut health and feed conversion, and reduces the cost of production. “The product is available in three different concentrations namely dry, liquid and soluble concentrated powder, giving flexibility to poultry producers to add in feed rations or through drinking water.” In Indonesia, Aviator is distributed by Catur Nawa.
Kurnia Cipta launches I-Coop Eco Poultry House
Indonesia's Kurnia Cipta Mandiri Abadi launched its I-Coop Eco Poultry House with full-galvanised frame, sandwich wall panel and floating ceiling system. The system is easy to install, offers low maintenance, energy saving and is well priced, said Director Sugiarto Kurniawan. “I-Coop is specifically designed tropical climates. It has been tested at our trial centre in East Java with satisfying results. It took several years to develop and test the product before launching it,” Mr Sugiarto said, adding that the company has sold some units to broiler farmers and breeders in East Java. “PT Anugerah Dwidaya Agung, the distributor of Chore-Time and Jansen Poultry Equipment, will help us to promote I-Coop across the country. We are also ready for orders from foreign countries,” he added.
Medion cooperates with Greenvet in Vietnam
Amalia Jonas, owner of animal vaccine and pharmaceutical company Medion based in Bandung, revealed that the company has signed a cooperation agreement with Vietnam's Greenvet for animal pharmaceutical production in Vietnam. Greenvet has been importing and distributing Medion products in Vietnam for five years, said Mrs Amalia. “Greenvet has built a production plant in Hanoi.” In the agreement, we will share our knowhow and transfer our technology. Initially, the plant will only produce vitamins for poultry, then will go on to produce veterinary medicines for pigs. This is a new milestone for our international business," she said.
Onsite at China International Meat Industry Exhibition (CIMIE)
with RICHARD HERZFELDER in Beijing, China
[20 June 2014]
Rising labour costs driving meat industry to automation
The rising cost of labour and the demand for better hygiene in the China market is creating opportunities for companies that manufacture the most sophisticated meat processing equipment, according to numerous exhibitors at CIMIE. “When labour was cheap, there was no need for a lot of automatic equipment,” says Michael Schomber, General Manager of Banss (Shanghai). “But with wages and required social benefits going up, we are selling more automatic equipment.” The IFR Innovative Food Robotics pig splitter with chopping tool, which uses lasers to correct for carcass irregularities and off-centre hangs, is popular in China, said Schomber.
Vemag promotes new concept in online ordering
Vemag is promoting a new concept in convenient ordering with its “sausage-linker.com,” which can be ordered online and shipped directly to a customer. The two-tonne/hr capacity machine comes on a wooden skid that can be removed without having to lift the equipment. Initial assembly instructions are right on the packaging, and an installation wizard guides the buyer through set-up, according to Matthias Becker, General Manager at Vemag China. “It’s good for small butcher shops,” Becker said.
Tipper Tie assembles locally
Tipper Tie has is assembling some of its machinery in China to reduce cost for the local market. “The core part is imported, but the machine is assembled here. The customers get the same quality and service, but it enables smaller customers to work with our systems,” said Andreas Plassmeier, Senior Consultant and Sales Manager for Asia/Pacific. The control panels on Tipper Tie’s vacuum and rotary vane fillers and on its emulsifiers can handle many Asian languages, which enables operators and consultants who may not understand each other to communicate via the panel’s language capacity.
Handtmann ready to introduce new automatic linking line
Handtmann is introducing its new AL-PVLH 246 automatic linking line to Asia this month. Artificial cellulose and collagen casings are more common in Asia than in Europe, and the new machine can load artificial casings automatically, reducing labour costs. According to sales director Uwe Kessler, it takes only a minute to convert the machine to natural casings, which still require manual loading. The 246 also has the first triple-nozzle revolver, guaranteeing maximum performance in sausage production.
Poly-Clip introduces basic double-clipper to China
The FCA80 is a basic version of Poly-Clip’s market-leading line of double clippers that offers essential functionality and reliability without the need for extensive practice and training. The simple version has almost no electronics and is easier to operate than Poly-Clip’s higher-end machines, according to Doris Bregulla, head of international marketing for Poly-Clip. The robust, stainless-steel design takes a range of calibres from 38mm to 160mm, and runs at up to 125 cycles per minute.
Autotherm’s defrosting rooms find takers
Chinese companies are beginning to realise the advantages of Autotherm’s sophisticated defrosting room technology over standard microwave tunnel-continuous systems, according to Sales Manager Norbert Hoffman. “With continuous tunnel systems, you need to put the product on and take it off, which means the labour cost for several workers,” said Hoffman. “But with a defrosting room, you bring in the amount you want, you leave it in there overnight, and you pull it out in the morning, in time for your work shift. You get the whole amount in one step.”
CIMIE road warriors say too many shows in one month
There are five major Asia-Pacific meat processing and packaging exhibitions this June, and the continuous grind of travel and sales pressure is wearing people down, international exhibitors told Asian Agribiz at CIMIE Beijing. Exhibitors who want to hit every show have been to Japan, then Bangkok and now CIMIE, to be followed by Melbourne and Taiwan. Exhibitors said the schedule does not leave enough time between shows to ship equipment, nor to make key customer follow-up visits. But it forces key sales and technical personnel to spend more than a month on the road, away from the home office and their families. Exhibitors said however, that they feel compelled to make a showing, lest customers think they have disappeared from the market.
Onsite from Indo Livestock with ARIEF FACHRUDIN
[19 June 2014]
CJ Indonesia expands in upstream, downstream sectors
CJ Indonesia is in expansion mode, said General Manager Sales and Marketing of CJ Superfeed, Tevi Melviana. The company has four feedmills in North Sumatera, Lampung, Serang and East Java with a total installed capacity of 1.2 million tonnes/year. “We plan to increase the capacity to 2 million tonnes/year. We are setting up a new feedmill in Central Java and we are looking for other potential areas for new feedmills,” said Mr Tevi. In the downstream sector, the company already has two chicken slaughterhouses and plans to build a new one this year. “Within the next five years, we will build a further processing plant as part of our integration project to increase efficiency along the value chain.” Mr Tevi revealed that Indonesia last year posted the largest turnover of CJ’s international poultry business. “The group may invest in a poultry r&d centre here to support our business in Indonesia and other countries.”
Sujaya Group receives Indo Livestock Award
West Kalimantan based poultry integrator Sujaya Group has received the Indo Livestock Award for its efforts in building an integrated poultry business in West Kalimantan Province. Director Johannes Salim said the award is a milestone for the company that will push the entire team to work harder and better. Mr Johannes said Indo Livestock provides the best platform for the company for promotion of its DOC, feeds, and veterinary drugs to poultry producers in Java. “This is in line with our expansion plan in Java.” Mr Johannes revealed that the company is developing a vertical integration business in Serang and West Java. “We already have a feedmill in Serang which was put into operation recently. Now we are building broiler and layer PS breeding farms in Sukabumi, West Java. We will also build a slaughterhouse and further processing plant in this region.” Once the integration in Serang and West Java is completed, the company will set up another vertical integration business in Central Java and East Java.
Malindo launches new broiler finisher feed
One of the largest poultry integrators in Indonesia Malindo Feedmill launched a new broiler finisher feed under the brand ‘Sumo’. Director Rewin Hanrahan said the new feed was developed to help broiler farmers increase their efficiency and profits. “Many broiler farmers still apply one phase feeding strategy, or only one feed type from DOC to harvest. With this new finisher feed, we also want to educate growers on the 3-phase feeding strategy which consists of pre-starter, starter and finisher.” Talking about the company’s expansion, Mr Rewin said the construction of its new feedmill in Semarang, Central Java is near completion. “The Semarang feedmill is expected to start operating in a few weeks. It has a production capacity of 360,000 tonnes/year.” Malindo will also set up a new feedmill in Makassar, South Sulawesi with a capacity of 240,000 tonnes/year, expandable to 360,000 tonnes/year. “Each plant entails an investment of around USD 16.9 million,” Mr Rewin added.
Mabar taps into markets in Java
North Sumatera based poultry and fish integrator Mabar Group took the opportunity at the event to promote and expand the market reach of its processed chicken products. Through its subsidiary Expravet Nasuba, the company produces and sells whole chicken and its portioned cuts and processed chicken products like chicken balls, nuggets and kaki naga. Area Sales Manager, Khomeini said the products are sold in Jakarta. “We target to cooperate with other big retailers and also mini markets in Jakarta. We also want to enter the markets in other big cities in Java.” Operations Director, Benny Susanto said the company operates a vertical integration business in North Sumatera with a head office in Medan. “We have broiler and layer breeding farms, a 30,000 tonnes/month animal feedmill, a 3000 birds/hour chicken slaughterhouse and a further processing plant.” Mr Benny revealed that the management plans to venture into Java and build a vertical integration business.
Moba introduces Omnia PX
Moba introduced a new egg grading machine Omnia PX at the show. Area Sales Manager Teddy Wong Wei Suei explained that the Omnia PX features a complete hygienic program during runtime, as well as a post-production cleaning concept. “Omnia PX is the first machine in which all egg-touching parts are continuously disinfected during production. The rollers, weighing, transfer and transport carriers in the tracks are treated with UV-C light that reduces the growth of bacteria.” Mr Teddy said the machine was developed in response the increasing demand for food safety and efficiency. In Indonesia, Moba’s egg grading machines are gaining ground. “We sold units to egg producers in North Sumatera. Egg producers in Java have also shown interest,” said Mr Teddy.
Zoetis introduces coccidiosis management initiative
Zoetis introduced a new, science-based initiative ‘Rotecc Coccidiosis Management’ to help poultry producers in Indonesia develop more strategic, cost-effective and sustainable programs for battling coccidiosis. According to Zoetis Marketing Manager for Indonesia, Ulrich E Ginting, coccidiosis is a common intestinal disease of poultry that is caused by Eimeria. Mr Ulrich explained: “Rotecc is built on best practices widely accepted by the poultry science community for coccidiosis management. This includes not using the same in-feed anticoccidial for too long, rotating among products from different classes, resting each product and using a synthetic anticoccidial once yearly to clean up coccidia and help reduce infection pressure.”
Kemin promotes ButiPEARL
Kemin promoted its encapsulated butyric acid ButiPEARL. Kemin Country Manager for Indonesia Chutaemil Marom said the product contains 50% calcium butyrate that improves intestinal villi growth throughout the intestinal tract. The improvement in villi growth increases absorption of nutrients. According to Mr Chutaemil, the product is special because Kemin’s spray freezing encapsulation MicroPEARL allows the release of butyric acid throughout the intestinal tract of the bird. “The encapsulation also makes the product stable and resistant to pelleting and mixing.”
Biomin promotes phytogenic feed additive
Biomin Indonesia took the opportunity at the event to promote its phytogenic feed additive Digestarom that improves growth rates and FCR and reduces feed cost. COO of Biomin Indonesia, Yatie Setiarsih said the product contains a unique blend of herbs, essential oils and functional flavors. It works by influencing absorption and utilisation of dietary nutrients, thus supporting digestibility and feed efficiency. “The product is doing well in Indonesia since the interest in natural products is increasing,” Mrs Yatie said.
Ceva Indonesia launches ‘Stop the Gumboro cycle’ campaign
Ceva Animal Health Indonesia launched its new campaign ‘Stop the Gumboro cycle’. Country Manager Edy Purwoko said the company is the market leader for Gumboro/IBD hatchery vaccine. "The launch of the new campaign will strengthen our leading position in controlling the disease,” he said. Of the campaign, Mr Edy said the company launched a new Transmune website that provides the latest scientific information about the epidemiology and control of Gumboro disease. Mr Edy claimed that Transmune IBD is the only hatchery vaccine that stops re-infection and protects against all strains of Gumboro.
Idena showcases innovative products
French based animal nutrition and premix company Idena is showcasing its innovative products for poultry, pig and ruminants at Indo Livestock. Asia Area Manager Virginie Hervy said that Indonesia is an interesting market for the company. “We are here to find the best distributor for our innovative products and then together address the market.” For poultry, the company offers PONTIPlus which is a feed adjuvant that improves layer performance and egg shell quality. For ruminant, meanwhile, the company offers Valkalor that increases the energy from starch transformation then makes it available for the animal.
|Kaona Poultry plans news processing plant|
[18 June 2014] Kaona Poultry Co Ltd, a broiler integrator in Ubon Ratchathani province in the northeast of Thailand, plans to invest in a new processing plant that will upgrade the company’s slaughtering capacity to 100,000 birds per day from 70,000 birds/day at present. “We will start construction of the new plant around the middle of next year. The new facility will cost around USD 15.4-18.5 million,” Suchet Triyanggulsri, Vice Managing Director, told Asian Agribiz. The new plant, which will replace the existing one, will have automated lines to help the company reduce its reliance on human labour, he said. Kaona exports around 90% of its products, to Europe and Japan.
|CPF to audit its entire fishing operations |
[18 June 2014] The Thai fishing industry has come under global scrutiny following revelations of slavery in its supply chain. An investigation by UK newspaper the Guardian revealed that workers who have been forced to work for no pay for the production of seafood sold by major British, US and other European retailers. It said that Charoen Pokphand Foods (CP Foods) buys fishmeal from some suppliers that own or buy from fishing boats manned with slaves. CP Foods, in response, issued a statement saying fishmeal made up less than 10% in its production of fish feed for its prawns. Currently, it sources the fishmeal to make fish feed from 55 independent fishmeal processing plants of which 40, or 73%, are certified. To improve the situation, CP Foods said it will audit its entire operations and will implement independent spot checks to ensure that its supply chain is and continues to be slave-free.
|Rabobank extends expertise to Vietnam|
[18 June 2014] Vietnam's Sacombank is set to play a leading role in the food and agribusiness (F&A) sector in the country following a memorandum of understanding signed with Rabobank yesterday in Hanoi. The MOU will see Rabobank share its F&A banking expertise and know-how with Sacombank through technical co-operation with Sacombank in order for Sacombank to become a leading bank in the food & agribusiness in Vietnam. Corné de Louw, Senior Project Manager Agribusiness of Rabo Development said the partnership supports Rabobank Group’s development mission to assist financial institutions to improve rural access to financial services.
|New convenience store chain to rise in the Philippines|
[18 June 2014] Philippine retail giant Puregold Price Club Inc (PPI) has signed a joint venture agreement with Japan’s Lawson Asia Pacific Inc and Lawson Asia to establish a network of 500 Lawson convenience stores around the Philippines. Under the deal, Puregold is expected to invest around USD 56.8 million in the project and will own 70% of the JV while the two Japanese companies will hold the remaining 30%. Lawson is a leading convenience store chain in Japan that also has a presence in China, Indonesia, Thailand and Hawaii. The Philippine convenience store sector is currently dominated by 7-Eleven with more than 1000 outlets all over the country.
|USDA announces new China export rules |
[18 June 2014] The USDA’s Food Safety and Inspection Service (FSIS) has announced new requirements for exporting US pork and pork products to China. “Pork and pork products with FSIS export certificate issuance dates on or after July 1, 2014 must be produced according to the Ractopamine Control Program below. Pork casings intended for processing (selection for size and quality) in China and subsequent re-export are exempt from the ractopamine residue control program,” FSIS wrote. FSIS also added three plants not eligible to export to China until further notice, including Tyson Fresh Meats Inc, in Waterloo, Iowa; Transcontinental Cold Storage in Sioux City, Iowa; and Seaboard Foods in Guymon, Oklahoma.
|Taxes push poultry prices up in Pakistan|
[18 June 2014] Pakistan’s budget 2014-15 has suggested the imposition of a 5% tax on poultry raw material imports as well as imports of soybean meal. This will hit not only general public in terms of high prices of chicken and eggs but also the poultry industry as it will raise the cost of production. Chairman Pakistan Poultry Association (Northern Zone), Raza Khursand said the proposed taxes on poultry products are unjustified. He said that in all developed and under-developed countries including neighbouring India, there is no taxation on food items. He added that if government is serious about providing affordable animal protein to the people, it should withdraw the proposed taxes.
|CP Prima allocates USD31m for capex|
[17 June 2014] Indonesia’s largest shrimp and aquafeed producer Central Proteinaprima, more popularly known as CP Prima, has said that the company has allocated USD 31 million for this year’s capital expenditure. The funds will be used for maintenance and expansion of the company’s assets. According to Director Surdjaja Sutanto, around USD 8 million will be allocated to set up a fish feed plant in Surabaya, East Java with a production capacity of 40,000 tonnes/year. Next to that the company will use some to develop its shrimp, pangasius, tilaphia and catfish breeding farms.
|China, India remain ‘high potential’ markets for CPF|
[17 June 2014] Considering their combined population of 2.5 billion, China and India are “high potential” markets for Thai agribusiness giant CPF. “China is evidently our largest overseas operations and will continue to be. In India we intend to focus on our poultry and food business,” said CP Foods CEO Adirek Sripratak in an interview with Feed Navigator. He said that despite the slight decline in the China feed market last year due to the avian flu virus, the increase in Swine feed consumption more than offset the decline in poultry feed. Feed revenues in China increased by 6% in 2013, with swine feed accounting for half of the total feed revenues.
|Indian PM places emphasis on technology|
[17 June 2014] Proper management of agricultural products and the use of technology can help fight food inflation, new Indian Prime Minister Narendra Modi said. “There is enough food in the country. What is required is proper management,” Mr Modi said in his maiden speech in Parliament. He said efforts should be made to gather “real-time data” of agricultural products that would help regulators take the required action to manage prices. He indicated that the Food Corporation of India (FCI) could be restructured for better management of agricultural produce and suggested three different entities for procurement, storage and distribution. “Agriculture needs to be modernised. We have to take measures to enhance productivity of our land,” the Prime Minister said.
|Indian feed prices trending downwards|
[17 June 2014] Prices of a few poultry feed products in India decreased by USD 0.17-0.6 for a 50kg bag on June 12, following a continuous drop in cost of production in the last few days, according to Aditya Mishra, a commodity expert. “A fall in soybean meal mainly led feed prices down. Feed prices may continue to rule around current levels without any fluctuation in the coming days.” In the physical market, soybean meal eased by USD 16.76 and sold at USD 682 a tonne. Prices of broiler and layer concentrate went down by USD 0.17 for a 50kg bag each and sold at USD 26 and USD 20.5 for a 50kg bag, respectively. Pres-tarter mash dropped by USD 0.6 and sold at USD 28.5 for a 50kg bag while broiler concentrate quoted at USD 37.8 for a 50kg bag.
|China, Romania to advance collaboration |
[17 June 2014] Government officials from China and Romania have agreed that livestock is a priority area for cooperation between the two countries. Earlier this month Chinese Minister of Agriculture Han Changfu met Romania’s Deputy Prime Minister and Minister of Agriculture and Rural Development Daniel Constantin. Both parties are keen to develop agricultural collaboration. Priority areas of cooperation include livestock, through the investment of trade of cattle, sheep and pigs, as well as investment and trade in the processing and marketing of agricultural products such as pork and other meat products.
|AustAsia boosting Greenfields milk exports|
[17 June 2014] AustAsia, which is two-thirds owned by President Director of Japfa Comfeed Indonesia Handojo Santosa and one-third owned by Cargill’s Black River Asset Management, is boosting exports of its Greenfields milk with more than half of its annual sales of 27 million litres going to Singapore, Hong Kong, Brunei, Malaysia and the Philippines. This output is expected to double by the end of next year, reported the Financial Times. Eager to exploit the opportunities afforded by Asia’s growing appetite for dairy products, AustAsia is expanding in China and Indonesia. Head of Sales and Marketing Jan Vistisen said: “With our expansion in Indonesia and China we can put our products into most of Asia.” The 27 million litres of milk that AustAsia will produce this year has a retail value of around USD 65 million. Sales will more than double by the end of next year, alongside production.
|Practical, usable information for producers at poultry feed conference|
[16 June 2014] The 2014 Poultry Feed Quality Conference organised by Asian Agribiz Conferences in conjunction with its Asian Poultry Magazine, will bring together a group of 18 expert speakers to address four themes with carefully selected papers put together to provide practical, usable information for Asian poultry producers. They are carbohydrates with a fibre focus, feed enzyme developments, protein sources (SBM and canola) and quality assessment by near infrared spectroscopy. Adding depth to the conference will be a ‘hot topics’ session. View the conference website here.
|Thailand's DLD introduces e-service for animal transportation|
[16 June 2014] Thailand’s Department of Livestock Development (DLD) has introduced an innovative online service for issuance of permits to transport animals and carcasses. The newly introduced e-Privilege Permit allows relevant private operators to apply and receive online the permit for transportation of their animals and carcasses. Trissadee Chaosuancharoen, DLD’s Director General said the new online service is a step forward in efficiency. Modern trade operator Tesco Lotus was the first to employ this system, Mr Trissadee said.
|CPF’s gets a grip on EMS|
[16 June 2014]The shrimp industry across Asia is severely challenged by the early mortality syndrome (EMS) but CPF said it has managed to solve some of the issues and has made progress in bringing efficient shrimp production back to the company, Thailand and the region as a whole. “We have been effective in preventing the disease. However, as we have learned over the past year, EMS is caused by bacteria, making the protocols that work against a virus ineffective,” said CP Foods CEO Adirek Sripratak. He said CPF has employed a proactive research and development approach to learning about the basic causes of EMS. “We have taken a number of specific steps in response to what we have learnt in order to minimise the bacteria density and maximise the fitness of the shrimp.”
|WH Group to acquire Spanish meat company|
[16 June 2014] In a move to enhance its global expansion China’s largest pork producer WH Group Ltd has teamed up with Mexico’s Sigma Alimentos SA to acquire a 98.3% stake in a leading Spanish packaged meat company, Campofrio Food Group SA de CV. According to China Market Research Group's James Roy the deal gives WH a stronger position in overseas pork production, which will be important as demand for meat in China continues to grow. He said Chinese food companies are acquiring managerial experience and learning international practices through the acquisition of established foreign brands.
|Bowman Ingredients establishes base in Thailand|
[16 June 2014] UK-based food coating company Bowman Ingredients has created a new joint venture company in Thailand called Bowman Ingredients Thailand to increase its global presence. According to Bowman the Thai business will be dedicated to supplying breadcrumbs, batter mixes and dry mix marinades for products including poultry and fish across Southeast Asia. “The value-added food market across Southeast Asia has seen growth of over 10% year-on-year with further expansion predicted,” said Sales Director Richard Easey said. The Thai firm will operate from two manufacturing sites in the Kabinburi Industrial Zone, east of Bangkok.
Onsite at Propak Asia 2014 with RACHAEL PHILIP
[13 June 2014]
Producers scout for automation as AEC nears
The popularity of food processing machines that promote automation is growing. Medium and large sized food producers see the urgency in automating their systems to promote hygiene, save time and labour. “The food business in Thailand has been developing in the last three year. Customers want to replace or expand machines to overcome the shortage in labour which will intensify when AEC kicks in. Also the ready meals category is growing as consumers see convenience and easy meal solutions,” K&W Managing Director Khanchit Toomaneechinda said. “Companies like CP are intensifying automation to reduce their dependency on labour. Packaging too is becoming more attractive and modern.”
Machines for specialised tasks hit the show
The trend in automation was also highlighted with specialised machines at the show that can help with specific jobs. The chicken middle wing splitter from US-based Prime Equipment Group, stood out. “This machine is for factories that make certain ready-to-eat grilled and fried products mostly intended for the Japanese market,” said Forefront FoodTech Sales Manager Somsuda Sriwattananont. “Splitting the middle wing is a labour intensive job, and automating the process cuts time and reduces contamination,” she added. The machine, which can process 240 pieces/minute, does a clean job because instead of blades separating the bones, which can leave pieces of bones in the meat, it wedges the joints, leaving a clean split.
Multifunctional machines save space
Customers are looking for compact and multifunctional machines that help them save on space, said Kolbe General Manager Thomas Hagmeier. The new Kolbe Mincer Grinder is a high performing machine that mixes and grinds fresh as well as frozen raw material up to -18 degrees. “It’s not a machine for big companies but for the mid to small-sized companies. Its excellent size and production capacity will make it popular in Thailand where food production is growing annually,” he said. Among its plus points is that the machine offers flexibility in design, is easy to handle and requires little maintenance for efficient results.
Avure promotes larger sized machine
US-based Avure Technologies offered a larger capacity high pressure processing (HPP) machine at ProPak Asia 2014. Its Vice President of Microbiology and Food Technology Errol Raghubeer said the latest machine is a 525l machine that does not take up more floor space but has larger baskets to hold cooked and packed products for the non-thermal ‘pasteurisation’ process. He said the uptake of HPP technology is slow in Asia but is growing. He said the company is working with the US FDA to reduce requirements on packaging films so that the technology can be applied to products like shrimp exported from Thailand. HPP technology can be used on a variety of foods such as raw proteins, ready-to-eat meats and seafood, and juices.
Versatility makes Frey’s latest machine popular
Frey Maschinenbau’s latest burger forming machine, the DMFP 92, is a modular system that allows processors to buy the basic machine and upgrade later for larger capacity. Its bestselling point is that besides forming round, square and triangular burgers, it can adapt to produce other products such as vegetable-based and cheese-based products. “The industry is such that producers want to be able to produce and sell a variety of things. Meat is still expensive here and with this machine producers have the option of producing other products too,” said Managing Director Heinrich Frey. Its clean-in-place feature makes cleaning the machine easy and fast so it is 100% ready to process the next product.
|Sierad allocates USD7.6m for expansion|
[13 June 2014] Indonesia’s poultry integrator Sierad Produce hopes to achieve net sales of USD 272 million with a net profit of USD 1.3 million. To achieve the target, Vice President Director Eko Putro Sandjojo said the company has allocated USD 7.6 million for capital expenditure. “This will be used to set up commercial broiler farms in West Java, buy freezers and related equipment for the food division Belfoods, and also increase the number of Belmart outlets.” Director Awi Tantra added that the company plans to purchase 3,000 freezers to strengthen the distribution of its processed chicken products. “We will also channel some for advertising of Belfoods,” said Mr Awi.
|Thai soybean output continues to decline |
[13 June 2014] Thailand’s soybean production has been declining over the past few years, with the production for the 2014/15 crop year expected to fall to 67,316 tonnes from 201,291 tonnes in 2007-2008, said Anan Lila, Secretary-General of the Office of Agricultural Economics (OAE). Plantation areas have dropped from 132,590 hectares in 2007/08 to 39,907 hectares. Last year, soybean production was 70,456 tonnes, down from 84,660 tonnes in 2011/12. Thailand needs around 3.9 million tonnes of soy a year, cited Anan. He added that the Ministry of Agriculture and Cooperatives is encouraging farmers to grow more soy.
|RCCI demands withdrawal of poultry feed taxes|
[13 June 2014] Pakistan’s Rawalpindi Chamber of Commerce and Industry (RCCI) has demanded the withdrawal of taxes and import duty on poultry feed, whose failure would cause a major blow to the production of this essential food items. RCCI President Dr Shimail Daud Arain pointed out that budget document for 2014-15 has recommended withdrawal of all statutory notifications issued in the past. This would lead to the automatic imposition of import duty of 5% besides GST on the import of poultry feed. If the duty and taxes were not immediately withdrawn prices will rise, putting them out of the reach of the common man. Dr Shimail proposed that orders be passed for importing tax-free poultry feed.
Onsite at Propak Asia 2014 with RACHAEL PHILIP
[12 June 2014]
Microwave technology cuts time
Microwave technology to defrost frozen blocks of meat at a further processing plant has many advantages. Among them it cuts the time in the tumbler, said Sairem Managing Director Jean-Paul Bernard. “Instead of 8-10 hours in the tumbler you only need 2-3 hours. This saves time and money, and frees up the tumbler for the next shift,” he told Asian Agribiz. Also, the microwave tunnel allows the processor to control the final temperature, maintaining it at the ideal -4 to -2 degrees. At this temperature there is no drip loss, and peeling off the plastic wrapping from the block of meat is easy. “After grinding you get better quality meat and colour. It comes out of the grinder like pasta. This consistency is good for mixing.”
Bayerische Tech eyes market in Thailand, Indonesia
Malaysian-based Bayerische Tech Sdn Bhd, the only smokehouse producer in Southeast Asia, is expanding its reach beyond local shores. The company, which claims to have 60% of the market share in Malaysia, was at ProPak Asia for the first time. It hopes to sell its products in Thailand via distributor Valiant Enterprise. It is also eyeing the Indonesia market, Managing Director Alvin Ng told Asian Agribiz. The company, which use the German controller Aditec, models its products after Maurer and Fessman. Mr Ng said its smokehouses are generally 30% cheaper than European models and has features that promote better yields.
Time-saving features much sought after among producers
Foodlogistik Managing Director Uwe Saβnowski said the growing ready-to-eat and ready-to-cook category in Thailand will make machines that promote automation more popular. Mr Saβnowski said his potential customers are supermarkets, food producers, catering outfits and hotels, who want a quicker way to make cubes, strips and slices of meat, cheese and vegetables. Furthermore sausages with cubes of fat provide better taste and texture compared to ground fat. The machines have a production capacity range of 200kg-4 tonnes/hour and comes in two versions – the semi-automatic version where meat has to be manually loaded and an automatic version with hydraulic features, which is more hygienic. The brand has been in Thailand for more than 10 years and is distributed by FPT.
|Temasek and CHD invest in Ceva|
[12 June 2014] Ceva Santé Animale has announced that Singapore's Temasek and the leading Chinese investment fund, CHD Investments have come on board as new investors that will support the group in a new phase of development. Ceva is reorganising its capital structure to bolster its international ambitions to become the first independent player within the top five global animal health companies by 2020.Ceva is among the top 10 global animal health business (and the 3rd independent group) and has posted for almost 15 years annual sales growth of more than 12%, reaching USD 947.3 million in 2013, while continuously improving its profitability.
|Healthy soy stocks/use ratio in 2015|
[12 June 2014] The USDA in its current World Supply and Demand Estimates Report has dropped its soybean ending stocks estimate by 5 million bushels, reflecting higher crush projections and increased projected soybean meal exports. Soybean supplies are likely to drop to just 125 million bushels by September prior to this year’s harvest. However, the USDA expects soybean ending stocks to rise to 325 million bushels by September 2015, pushing the stocks/use ratio to over 9%.
|Indonesia to issue cattle import permits|
[12 June 2014] Indonesia’s Trade Ministry plans to issue permits to import live cattle into the country in the third quarter of the year in order to meet the national demand. Foreign Trade Director General, Bachrul Chairi said the government aimed to import 160,000 live cattle. “We are going to issue the permits immediately. Currently we are still communicating with Apfindo [the Indonesian Cattle Feedlots Association] since they want more cattle,” he said.
Spotlight on India’s feed industry
[11 June 2014]
The outlook for India’s livestock feed sector is positive based on growing production and consumption of animal protein and dairy products. Both these industries have been driving an 8% CAGR in the feed industry, according to Rabobank’s ‘Feed on growth’ report.
Only 55% feed requirement met
The poultry industry in India has seen the largest growth, with an annual production increase of 8% between 2002/03 and 2012/13. It accounts for 58% of the total feed market, with consumption increasing at 7-8% annually between 2007/08 and 2012/13. But while poultry feed required is about 22 million tonnes annually, only 55% is met through compound feed and the rest is met through home mixers.
India, one of the largest compound feed markets
Pawan Kumar, analyst at Rabobank Food & Agriculture Research & Advisory and author of the report ‘Feeding on Growth’, said the 8% CAGR in the feed industry has made India one of the largest and fastest compound feed markets in the world, despite the fragmented nature of the sector, composed mainly of home and custom mixers. But with demand rising, the industry is now moving into a consolidation phase with better technology, increased efficiency and greater productivity.
New government is pro-development
“The response to India’s new government is positive as it is pro-development and expected to bring economic reforms. The economy therefore, should recover from the current dip driven by good governance and reforms,” Pawan Kumar told Asian Agribiz. “An improved economy will not only increase the purchasing power of consumers but will also create positive sentiment for consumption. Improved infrastructure will bring efficiencies in supply chain benefitting the end consumers,” he added.
Impressive growth opportunities
Currently only 11 % of cattle feed, 14% of aqua feed and 55% of poultry feed requirements are met through compound feed rations. The current total requirements of compound feed for all livestock is approximately 20.3 million tonnes, versus a potential total feed requirement of 96 million tonnes. This reflects the potential in the sector. The big triggers to achieving this growth are the degree of consolidation, formalisation and industrialisation and the speed at which the livestock sectors in India implement these changes over the next few years.
Steady growth in market of non-integrated producers
With the level of vertical integration increasing every year, especially in the broiler sector, one would expect the market for standalone commercial feed players to shrink in the long run. However, the market of non-integrated producers has been growing as rapidly as that of the integrators. Non-integrated producers have been able to maintain their market share over the last five years.
|S Khonkaen launches new snack and brand |
[11 June 2014] S khonkaen has launched a new meat-based snack under a new brand called “Moochi”. Made from fried lean pork, the company expects to gain around USD 4.62 million in sales of “Moochi” products in the first year. The products will be available in two flavours namely hot and spicy and classic and will be priced at THB20 (USD 0.62) per 16g pack. It can be found in modern and traditional trade stores nationwide. The company also plans to introduce a chicken snack with halal standard accreditation in the third or fourth quarter and aims to export the product to markets in the Middle East, Asia and Europe.
|Viet tra fish exports down 5% |
[11 June 2014] Vietnam’s tra fish exports might reach USD 1.6 billion this year, a reduction of 5% over last year, said the Vietnam Pangasius Association. The country’s tra fish exports faced many difficulties recently because the US had increased anti-dumping tax and several other countries have applied commercial barriers. Also, strong competitiveness from substitutes like cod fish and tilapia also narrowed the tra’s market share. The Mekong Delta farmed over 2,954 ha of tra fish in the first five months this year, a reduction of 19% over the same period last year.
|Odisha raises capital subsidy cap|
[11 June 2014] India’s Odisha government has raised the capital investment subsidy cap to USD 127,000 in a bid to boost poultry and egg production in the state and reduce its dependence on neighbouring Andhra Pradesh. The increase is expected to draw more entrepreneurs to poultry farming which is designated as a commercial agri-enterprise. Currently, the daily domestic egg production in the state stands at 4.5 million eggs against the demand for 6.4 million eggs. The state imports 2 million eggs from Andhra Pradesh.
|Registration open for 2014 Poultry Feed Quality Conference|
[10 June 2014] Registration is now open for the 2014 Poultry Feed Quality Conference organised by Asian Agribiz Conferences in conjunction with its Asian Poultry Magazine. The conference which will feature 18 expert speakers who will address four timely themes will be held this year in Kuala Lumpur, Malaysia from August 21-22. Get more details here.
|India to stop use of antibiotics in feed |
[10 June 2014] Fearing the spread of antibiotic resistance through the food chain, the Drug Controller General of India and India’s Ministry of Agriculture (MOA) have directed state governments to stop the use of antibiotics and hormones in animal feed. They have called for strict implementation of a 2012 law, which mandates a gap between the time an animal is given a drug for medical purposes and sale of food products from that animal. “Antibiotics are also used in feed premixes and the residue may accumulate in milk, meat and eggs,” the MOA said in a directive to state governments. “Consumption of antibiotic contaminated products could result in antibiotic resistance in both animals and human beings,” it said.
|Sierad to sell farm in Tangerang|
[10 June 2014] After its poultry breeding and hatchery assets located in Lebak, Banted were acquired by Charoen Pokphand Indonesia, Sierad Produce now is planning to sell its commercial poultry farm in South Tangerang. The farm has a production capacity of 100,000 DOC/day. According to Vice President Director Eko Putro Sandjojo, the situation in the poultry industry has pushed the company to sell the asset. “At the moment, the margin from commercial farming is only around 8-15% while the margin from the processed chicken business can reach 40%,” he said, adding that the company is in the process of becoming a food company. Mr Eko revealed that in the next five years, the composition of up-stream and down-stream business would be 50:50.
|Cofco to leverage off investors’ networks|
[10 June 2014] Cofco Meat’s new partnership will help diversify the company’s equity ownership and enhance its corporate governance. "Meat is the single-largest food category in China's diet, and meeting this demand is critical to our value chain. Chinese consumers demand that we promote the meat industry and provide safe meat products,” said Ning Gaoning, Chairman of Cofco Group. Speaking of the company’s partnership with KKR, Baring Private Equity Asia, HOPU and Boyu, Ma Jianping, Vice President of Cofco Group and Chairman of Cofco Meat, said: "We believe these investors' extensive global networks, professional local teams and deep operational experience will accelerate Cofco Meat's strategic goal to become the leading provider of China's safe meat products."
|Thailand’s food exports to hit USD30b this year|
[10 June 2014] Thailand’s food exports in 2014 is forecast to grow 5% from last year to reach around UDS 30 billion, said Petch Chinabutr, President of Thailand’s National Food Institute (NFI). The higher exports are supported by an estimated larger amount of rice exports and increase in shipments of shrimp, chicken, tuna, sugar and tapioca, according to Mr Petch. Asean is the major market for Thai exports, taking an annual share of USD 6.2-9.3 billion, followed by Japan. NFI is trying to promote more processed foods exports and upgrades of standard food plants that number between 5000-8000 nationwide.
|Fonterra appoints MD global operations|
[10 June 2014] New Zealand's Fonterra Co-operative Group has appointed Robert Spurway to the role of Managing Director Global Operations, effective August 1. Mr Spurway has more than 20 years’ experience in the food and dairy industries. “In his new role, Robert will lead the integration of our global milk production capacity. While our operations will remain predominantly New Zealand-based it is important to have more options about what products we make and where we make them," Chief Executive Theo Spierings said “Just as we have a team selling ingredients around the world, we also need an integrated approach to global manufacturing in markets where we have a natural competitive advantage and access to local milk pools."
|Cofco Meat to expand with investment partnership|
[09 June 2014] Cofco Meat of China and a consortium of investors composed of KKR, Baring Private Equity Asia, HOPU, and Boyu have formed a strategic partnership aimed at investing in Cofco Meat alongside existing shareholders to build and manage large-scale industrialised hog farms and meat processing plants in China. Cofco Meat is now one of the largest hog producers in China. The company markets its fresh meat and processed meat products under the brands Joycome and Maverick.
|UAE opens market to Philippine chicken|
[09 June 2014] The United Arab Emirates has officially opened its market to fresh frozen chicken from the Philippines, a report by the Philippine National Meat Inspection Service said, adding that early last month, the UAE issued a resolution approving two slaughterhouses in the Philippines to ship fresh frozen chicken to the Middle East. The UAE also approved the Islamic Dawah Council of the Philippines as the competent authority to issue Halal food certificates.
|CP Prima’s 2013 aquafeed sales up 11.2%|
[09 June 2014] Indonesia’s largest aqua feed and shrimp producer PT Central Proteinaprima, more popularly known as CP Prima, announced in its 2013 annual report that the company’s total sales amounted to USD 651 million, a 12.3% increase from the previous year. This was primarily due to increased sales from aqua feed and shrimp products. Aqua feed sales amounted to USD 372 million in 2013, an increase of 11.2% from the previous year. In late 2013, the company put its new fish feedmill located in Lampung into operations. “This increased our fish feed production capacity by about 50,000 tonnes,” said President Director Atanta Mahar Sembiring. The company’s total production for fish and shrimp feed in 2013 reached 395,000 tonnes and 143,000 tonnes, respectively.
|Japfa Indonesia to build new aqua feed plant|
[06 June 2014] Japfa Comfeed Indonesia plans to build a new fish and shrimp feed plant in Medan, North Sumatra, as well as increase the capacity of its fish feed plant in Purwakarta, West Java this year. Japfa Vice President Director, Bambang Budi Hendarto said the company would allocate USD 163.3 million to the expansion project, most of which would cover the construction of the new feed plant. “We will allocate up to USD 42 million to the construction of the new feed plant and redevelopment as well as improvements to our freshwater fish processing facilities,” Mr Bambang said. Japfa is aiming to produce up to 3.1 million tonnes of animal feed by the end of 2014, from 2.6 million tonnes in 2013. Furthermore, its poultry feed sales this year is likely to contribute 20-25% to its total annual revenue.
|Amino acid market to reach USD5.7m by 2018|
[09 June 2014] The feed amino acids market is flourishing due to its increased use in enhancing animal growth. Amino acids these days are used for a wide variety of functions in animal feed. Tryptophan, methionine, lysine, and threonine are some of the amino acids, of which lysine was the dominant amino acid in 2013. The feed amino acids market is projected to reach USD 5,729 million by 2018. The market is currently dominated by Cargill, Evonik, Ajinomoto and Adisseo.
|Mindanao rides on disease-free status in Asean market|
[09 June 2014] The Philippines Department of Agriculture (DA) in Davao, Mindanao is not only working towards addressing the problem on food security but also on the sanitary standards in food production. The department also has value chain analysis that allows farmers to look into the product's end-market -- constraints and solutions -- for Asean integration. DA Davao Director Remelyn Recoter said Mindanao's hog and poultry products have an edge over other Asean markets when Asean integration takes place in 2015 as it is both avian influenza and foot-and-mouth disease free. “This will allow our products to move freely in the regional and international market," she said.
|Betagro’s feedmill wins TPM award |
[06 June 2014] Thailand's Betagro’s BTG Feedmill Co Ltd has won the TPM Excellence Award (Category A). The Total Productivity Management award ceremony was held recently in Tokyo, Japan. The award is given to companies and organisations that successfully apply TPM in their operations. BTG Feedmill which produces broiler feeds is located in Lopburi province and is the first Thai feedmill to receive the award.
|Hong Kong likely to import beef from Namibia|
[06 June 2014] Authorities in Hong Kong have concluded auditing processing plants in Namibia in preparation to import beef from the country. Food and livestock safety audit was carried out in May by the Hong Kong Centre for Food Safety. Namibia Meat Board Manager of Trade and Strategic Marketing Goliath Tujendapi said if the results are good then Namibia will be the first in Africa to export beef to Hong Kong. He said it is likely that mainland China too could open its doors to Namibia beef. Namibia is hoping to export high-end cuts and processed meat products instead of relying on demand for lower-valued beef products sold to South Africa, reported globalmeatnews.com.
|Bairaha sees slight revenue growth in 2013|
[06 June 2014] Sri Lanka saw weak demand for chicken in 2013 while costs rose, as the country emerged from a balance of payments crisis and steep currency depreciation. Bairaha Farms said its revenues rose just 4.6% to USD 23 million in 2013 while direct costs rose 5.6% to USD 20 million. There was a ‘noticeable dip in demand’, while raw material costs were high. “The industry was characterised by many months of glut and excess production,” Bairaha Chairman MTA Furkhan said, adding that the quality of poultry feed also deteriorated due to high prices for raw materials. “These factors heavily impacted the financial performance of industry players with the prices of both broiler and layer DOCs declining steeply, stemming from an industry oversupply coupled with a decline in sales volumes.”
|Grain shipping rates soften|
[06 June 2014] Ocean freight rates for bulk shipping of grain, especially from the US Gulf, have been falling since January as vessel supply continues to outpace demand. Although relatively low, the rates from the Pacific Northwest (PNW) to Japan increased slightly in March, then declined in April and has remained relatively low in May. During May, ocean freight rates for shipping bulk grain from the US Gulf to Japan averaged USD 47/mt, down 15% from the 4-year average. The cost of shipping from the PNW to Japan was USD 21/mt, 15% less than the 4-year average. From January to April, total new orders were up by 86% compared to the same period in 2013, and 165% compared to the same period in 2012.
|Additional corn silage to South Korea|
[05 June 2014] The Philippines is set to increase its corn silage exports to South Korea, Philippine Agriculture Secretary Proceso Alcala said, noting that a memorandum of understanding was signed between Hapchon Livestock Cooperation Union and Filipino groups Benacon Corp and Plougshares Inc for the additional corn silage shipments this year. The MOU also covered other materials like corn, copra mill, palm kernel meal and total mixed fermentation feed. Hapchon is the country’s South Korean client for its corn silage exports. Presently, the Philippines exports around 1000 tonnes of corn silage to South Korea monthly but it expects the volume to go up to 2000-3000 tonnes per month by the third quarter of 2014.
|Malindo’s 2013 DOC sales grows 25%|
[05 June 2014] Indonesia's Malindo Feedmill announced in its 2013 annual report that sales of its DOC increased by 25% from USD 53 million in 2012 to USD 66 million in 2013. Meanwhile, sales of broilers increased by 4% from USD 26 million in 2012 to 27.5 million in 2013. During the year, Malindo set up breeding farms and hatcheries in Java, Sumatera, Kalimantan and Sulawesi. “We remain optimistic of the company’s strong performance in 2014. Management will be more responsive in reading the market potential and exploring creative ideas, as well as in establishing innovative steps to enhance the company’s performance, growth and expansion in the coming years,” said President Director Lau Chia Nguang in the report.
|Thailand drafts new standards for meat transportation|
[05 June 2014] Thailand’s National Bureau of Agricultural Commodity and Food Standards, or ACFS, is drafting a good practice standard for animal carcass and meat transportation for relevant operators to avoid contamination (such as Salmonella and E. coli) during delivery. “At present, many small slaughterhouses still transport their meat and carcasses inappropriately and this is a risk to consumer health,” said ACFS’s Secretary General Sakchai Sriboonsue. Delivery of meat and carcasses in temperature controlled vehicle will be introduced as part of the new standards. ACFS is hearing comments and recommendation from all relevant parties and expect to announce the standards before the realisation of the Asean Economic Community in 2015.
|S Korea likely to lift ban on beef fed with additive|
[05 June 2014] South Korea is likely to allow certain levels of the animal feed additive zilpaterol in beef from mid-July, a food ministry official said, delaying by one month the lifting of a ban on the growth enhancing drug. South Korea had said in April it would ease its zero-tolerance policy on zilpaterol-based drugs, such as Merck & Co Inc’s Zilmax, from June. “The final announcement is expected to be made around July 17 after internally examining any feedback that we get during the notice period,” Director at the Food Ministry Son Seong-wan told Reuters, adding that the notice period would end on June 17. Mr Son said South Korea was likely to allow imports of beef muscle with 1 part per billion (ppb) of zilpaterol and 5 ppb in beef liver.
|Suspicious poultry destroyed in South Jakarta|
[05 June 2014] The Maritime Affairs and Agriculture Agency’s South Jakarta Office has culled more than 6000 chickens, ducks and other birds netted in raids during the first half of the year on suspicion of carrying the avian flu H5N1 virus. The agency’s Monitoring and Mitigation Section Head Nurhasan Mas’ud said that the poultry was taken from prohibited farming areas throughout the municipality. According to a bylaw on poultry distribution and farming, poultry farms must be 25m away from residences, and cages must be kept clean. “We have exterminated more than 6000 birds that we confiscated from prohibited farming areas in 10 districts,” Mr Nurhasan said.
|Hot weather slows chicken production|
[04 June 2014] Philippine poultry producers are feeling the effects of the extreme hot weather in the country, which has extended the growing cycles of chicken. Currently, producers have extended their cycles by about 2-3 days but many still fail to reach the prime size of at least 1.8kg for their birds, United Broiler Raisers Association President Atty Elias Jose Inciong told Asian Agribiz, adding that generally, growing conditions are difficult at this time. He also said that they are verifying reports of mycotoxin contamination in corn supply, noting that if there are problems particularly with mycotoxins in feeds, the birds are more susceptible to heat strokes. He reiterated however that there is no problem with chicken supply. Producers are hoping that the coming rainy season will bring some relief to the industry.
|Security house suggests buy for CPF shares|
[04 June 2014] Thailand’s Thanachart Securities recommended a buy status for the shares of Charoen Pokphand Foods Plc, or CPF. CPF’s shares have underperformed in the SET (Stock Exchange of Thailand) and sector by 24% and 15% as a result of the Early Mortality Syndrome (EMS) disease that hit its shrimp business. “Shrimp production has been increasing as reflected by a drop in shrimp prices from the peak of USD 8.98/kg in December 2013 to USD 7.2/kg now. In Vietnam and Malaysia shrimp production has recovered and we see the same situation in Thailand,” the report stated. CPF shares closed at USD 0.88 Tuesday while the target price by Thanachat is USD 1.04/share.
|Pilmico to acquire Vietnamese aqua feed producer|
[04 June 2014] Pilmico International Pte Ltd, a unit of Aboitiz Equity Ventures Inc (AEV) has signed an agreement with Vinh Hoan Corp (VHC) to acquire 70% of Vinh Hoan 1 Feed JSC (VHF), one of the largest producers of aqua feed in Vietnam. The deal worth USD 19.6 million, is aligned with AEV’s strategy of expanding its core feeds business and expanding into the Vietnamese market. Also under the deal, Pilmico will acquire the remaining 30% of VHF within five years at a pre-agreed price, for a total transaction value of USD 28 million. “We are delighted to have this opportunity to expand our feeds business and to enter Vietnam with such a strong and well respected partner as VHC,” said Pilmico President and CEO Sabin Aboitiz. VHF is the fourth largest aqua feeds producer in Vietnam; while AEV, through its subsidiary Pilmico, produces animal feeds in the Philippines.
|India's seafood exports touch USD 5 billion|
[04 June 2014] Seafood exports from India rose 42% to touch an all-time high of USD 5 billion during the fiscal year ending March 31 2014, thanks to the rise in Vannamei shrimp production and better infrastructure facilities, said Marine Products Export Development Authority (MPEDA) Chairman Leena Nair. Exports stood at USD 3.51 billion during the period under review. MPEDA is targeting shipments worth around USD 6 billion for this fiscal year, she said adding that increased production of Vannamei shrimp, quality control measures and increase in infrastructure facilities for production of value-added products will help achieve the target.
|China’s growth in aquaculture hard to ignore|
[04 June 2014] Global fish production has grown steadily in the last five decades, with food fish supply increasing at an average annual rate of 3.2%, outpacing world population growth at 1.6%, according to the UN Food and Agriculture Organisation’s biennial The State of World Fisheries and Aquaculture 2014. China has been responsible for most of the growth in fish availability, owing to the dramatic expansion in its fish production, particularly from aquaculture. Its per capita apparent fish consumption also increased an average annual rate of 6.0% in the period 1990–2010 to about 35.1kg in 2010. Excluding China, production in the rest of Asia grew by 8.2% per year. The annual growth rate in China, the largest aquaculture producer, averaged 5.5% in the 12-year period.
|Indonesian dairy cattle population drops|
[04 June 2014] Chairman of the Indonesian Milk Cooperatives Association, Dedi Setiadi has predicted that national milk production this year would not reach more than 1.7 million tonnes. Mr Dedi revealed that the increasing price of beef caused dairy farmers to sell their cows as the price of fresh milk is stagnant at just USD 0.38/litre. “The national dairy cow population has been decreasing over the last three year. In 2012 the population was 425,000 heads and this went down to 400,000 heads in 2013,” said Mr Dedi, estimating that the population at the end of this year could decrease to 375,000 heads. He said feed cost increase of around 40% added to the pressure on dairy farmers. “With the increase of feed cost, fresh milk at farm gate should be priced at USD 0.5/litre.”
|CPF plans for new sausage plant in Thailand|
[03 June 2014] Charoen Pokphand Foods Plc (CPF) has plans for a new sausage production plant to tap into growing demand for this convenient food product according to Vice President of CPF Food Products Narek Mangkeo. The new plant is expected to be located in Nakhon Ratchasima province in the north eastern region and products to be produced at this facility will be for both the local and export markets. CPF produces around 7000 tonnes of sausage a month out of its Minburi plant outside Bangkok and its factory in Saraburi province. In 2013, CPF had a 25% share in the sausage market, worth USD 243.4 million.
|Saha Farms bankruptcy hearing this month|
[03 June 2014] Thailand's Bankruptcy Court has called for a hearing of indebted Saha Farms on June 16 as the earlier trial was postponed after around 17 creditors rejected the rehabilitation plan proposed to the court. The creditors, some of whom are corn shipping operators, cited worries on several overdue payments for their services. However, sources involved in the case said they believe Saha Farms will be able to process its rehabilitation plan supported by Krungthai Bank (KTB). Ernst & Young will be appointed as adviser to the rehabilitation plan, if approved by the court. Saha Farms and its company under the group Golden Line Business each owed around USD 400 million to their creditors which include banks, contract farmers and feed raw material merchants. KTB, however, deems the company still holds high business potential given the growing export market for Thai chicken.
|CP Indonesia’s food sales grows 21.8%|
[03 June 2014] Charoen Pokphand Indonesia announced in its 2013 annual report that its food business has demonstrated consistent growth over the years and in 2013, provided the company with sales of USD 198 million. This is a 21.8% increase from the sales of USD 162.6 million in the previous year and accounted for 9% of the company’s total sales for 2013. To tap into the strong revenue potential offered by this segment, the company embarked on a capacity expansion initiative in 2011 to add new production facilities. The company now operates a total of five poultry processing plants. The most recent was built in East Java in 2013 to fulfil the demand for processed chicken products like nuggets, sausages and meatballs in that region.
|Shrimp leads Indon fishery products export |
[03 June 2014] Indonesia’s Ministry of Fisheries and Marine Affairs has said that the value of exports in January and February 2014 increased by 16.1% to USD 667.6 million from the same period last year. In terms of volume, exports reached 200,801 tonnes, an increase of 9.8%. According to the Director General of Fishery Products Processing and Marketing, Saut P Hutagalung, shrimp represented the largest in terms of value and volume, accounting for USD 285 million and 28,000 tonnes respectively. “The US and the EU are increasing their demand for shrimp. We believe shrimp exports will exceed the previous years.”
|Nuscience breaks ground for new plant in Tianjin|
[03 June 2014] Nuscience Group held a ground-breaking ceremony to launch its new project in Tianjin, China. The company plans to build a factory for the production and marketing of premixes, concentrates and specialty feeds in West Tianjin Economic-Technological Development Area (Teda). The new factory will replace its existing facility, and triple its production capacity to 10,000 tonnes/month. It is expected to be operational by mid-2015. Nuscience also operates a facility in Suzhou for the Southern and South western Chinese markets and a trading company in Shanghai. Its other production locations are in Belgium, The Netherlands, Spain, Ukraine, Serbia and Brazil.
|US farm groups suggest keeping Japan out of TPP discussions |
[03 June 2014] US farm groups want Japan to be suspended from the Pacific trade talks if the country insists on keeping tariffs on wheat, rice, dairy, sugar, beef and pork. US and Japanese negotiators will hold meetings in Washington on farm exports and groups representing dairy, wheat, rice and pork farmers said they could still reach a deal. “Failing that, the alternative is suspending negotiations with Japan for now and concluding a truly comprehensive agreement with TPP partners that are willing to meet the originally contemplated level of ambition,” the National Association of Wheat Growers, US Wheat Associates, USA Rice Federation, the National Pork Producers Council and the International Dairy Foods Association said in a statement.
Assessing the AEC-readiness of livestock producers
[02 June 2014]
The Asean Economic Community (AEC) which will be formalised on December 31, 2015 will see trade borders dissolve among the 10-member Asean nations. The Asian Agribiz team in tracking the AEC-readiness of the livestock sector has these snippets from regional leaders to present.
Branding key to success in Asean integration
Livestock and poultry sectors must find a way to compete effectively in the integrated regional market. Superbrands Marketing International Inc President and CEO Harry Tambuatco said branding, backed by quality and value, will help producers survive a price competitive market. He told Asian Agribiz that Philippine livestock and poultry producers must brand their products, but added that producers “need to uphold integrity over controls and regulations” to ensure that pork and poultry products are safe and beyond reproach. However, production and related trade and business costs remain high, and this has pulled down the competitiveness of local poultry and pig producers. Some producers have found that manufacturing niche products can command premium prices in export markets.
Betagro heads in the right direction
Thailand’s Betagro Group is heading in the right direction with its expansion projects aligned to the expected rise in demand when the AEC is rolled out. The company recently launched a new chicken poultry processing plant in Phattalung, southern Thailand, with a capacity of 60,000 birds/day and expandable to 120,000 birds/day in the future. “We believe this plant will be able to produce quality chicken meat and parts catering to strong demand when the AEC is realised,” Group President Vasit Taepaisitphongse said. Apart from supplying to domestic markets in the southern region, Betagro plans to export products from this Phattalung plant to neighbouring Malaysia, Singapore and Brunei. Betagro also has its investments in other Asean countries including a feedmill in Cambodia, which is being constructed.
Indonesia’s poultry industry needs infrastructure improvement
Indonesia’s poultry industry still lags behind Thailand and Malaysia where infrastructure, efficiency and banking support is concerned,” said Indonesian Feed Millers Association Chairman Sudirman FX in reference to the country’s competitiveness in light of regional integration. He told Asian Agribiz that infrastructure improvement should be the first challenge that has to be tackled by the government mainly because of the country’s archipelagic nature. “With good infrastructure transportation costs of products will be cheaper. This in turn will increase competitiveness.” Indonesian Meat Processors Association Chairman Ishana Mahisa, meanwhile, is optimistic that Indonesia’s processed chicken meat products such as nuggets and sausages can compete with imported products from other Asean countries. “We know the local taste preference and the market potential,” he told Asian Agribiz, adding that he hopes the government would pave the way for the meat processing industry to receive a sustainable supply of chicken at a cheaper price.
Indonesia developing fish logistic system
Indonesia’s Ministry of Fisheries and Aquaculture (KKP) and industry players are working hard to increase the country’s aquaculture competitiveness. “Aquaculture is one of the AEC’s 11 priority sectors. Indonesia should play a big role in this regional single market,” KKP Fish Products Processing and Marketing Director General Saut Hutagalung told Asian Agribiz. “We are now developing the National Fish Logistic System in order to increase product quality and safety. With this system, all processes along the value chain will meet national and international standards. Next to that, we are also setting up cold storage facilities in several production areas.” He said Indonesia sees the AEC as an opportunity to work with other Asean countries to tap into larger markets like the Americas, the EU and China.
|McKey plans new further processing plant in Thailand|
[02 June 2014] McKey Food Services (Thailand) Ltd, which is under Keystone Foods, plans to build a new plant that will have a capacity of 30,000-50,000 tonnes. “The construction of the new plant is expected to start later this year and (commercial) operations at the facility is estimated to begin in 2016,” Managing Director Boonlua Thangwatcharapong told Asian Agribiz. The new plant will be fully automated with 2-3 high speed cooking lines. The new facility will raise production from its current capacity of 30,000 tonnes. McKey Food Service (Thailand) exports 80% of its production while the rest is sold locally.
|Malindo’s poultry feed sales up 28%|
[02 June 2014] Malindo Feedmill in its 2013 annual report announced that the sales of its poultry feed division amounted to USD 254.4 million, up 28% from the previous year. Poultry feed sales accounted for 71% of the company’s total gross sales in 2013. During the year, Malindo started construction of new feedmills in Java and Sulawesi. Currently the company operates three feedmills in East Jakarta, East Java and Banten.
|Godrej Agrovet launches R&D centre for feed|
[02 June 2014] Indian feed producer Godrej Agrovet Ltd launched its Nadir Godrej Centre for Animal Research and Development near Nashik, about 200km from Mumbai, complete with separate facilities for broiler, layer and cattle feed trials. It is also equipped to carry out complex analysis like enzyme assay, assessing the impact of different toxins, the efficiency of toxin binders and pathogen assessment, among others. “The industry will have to look at alternatives like value-added agriculture by-products to reduce its demand for agriculture crops in future,” the company said. Besides the work at the centre, Godrej Agrovet is also considering entering the feed pre-mix and additives market.
|Feedback may just prolong diseases like PED|
[30 May 2014] The practice of feedback, such as feeding sows with intestines of diseased animals with the aim of providing maternal antibodies to piglets, may be doing more harm than good. In the Philippines, porcine epidemic diarrhoea is often addressed using feedback. Dr Magdalena Cruz, officer-in-charge of the Bureau of Animal Industry’s Philippine Animal Health Center, told Asian Agribiz that though possibly effective, feedback is not recommended as pathogens may be in the materials being fed back. This may result in more serious disease occurrences. Other diseases may be misdiagnosed as PED, and in the end the practice will just prolong or perpetuate the disease. She also pointed out that for feedback to be effective, the virus must be in a quantity that can produce immune response, however, in feedback, virus particles are not quantified. She reiterated the importance of correct diagnosis before proper and effective intervention measures could be implemented.
|Strong soybean prices ahead of increase in feed demand from China|
[30 May 2014] Soybean prices climbed to the highest in close to a year in Chicago on speculation that demand for livestock feed will increase in China, the biggest consumer of the oilseed. Corn also gained, while wheat fell. Chinese processors ordered about 600,000 tonnes of soybeans for shipment after September 1, according to a Bloomberg News survey. Since April 1, Chinese egg prices surged 26% while hogs increased 20%, Bloomberg reported quoting data from Shanghai JC Intelligence Co. Industry analysts attributed the increase in feed order to stronger meat prices in China.
|Pakistan soybean meal imports soar|
[30 May 2014] Pakistan is on the verge of becoming a major importer of soybean meal, thanks to the country’s surging poultry production and the modernisation of its dairy industry that is boosting feed demand. According to the US Department of Agriculture Bureau in Islamabad, the country’s imports of soybean meal will hit a record 800,000 tonnes in 2014/15, up 23% year-on-year. Pakistan’s dairy and especially the poultry industry, have been growing at 10% a year. The USDA Bureau said feed millers are also finding a ready growth market in dairy, for which production of suitable rations “is increasing at an accelerated pace to meet the demand of the expanding commercial dairy units that rely on high milk yielding animals. “This has resulted in a shift in demand for soybean meal by feed millers from the traditional 5-7% to 10-15%,” the USDA Bureau added.
|Bright Food’s Tnuva deal to boost China’s dairy sector|
[30 May 2014] China's dairy sector will receive a boost from Bright Food Group Co’s purchase of a majority stake in Israel’s Tnuva Food Industries Ltd as the deal will see China gaining a broader range of high-quality products and technology. Bright Food has reached a preliminary agreement with Apax Partners LLP, a private-equity firm that has invested in Tnuva, to acquire 56% of the Israeli company, Pan Jianjun, a spokesman for the Chinese company said. He said the price has yet to be decided. Tnuva, best known for its cottage cheese, is Israel’s largest food company.
|India’s poultry sector margin to improve in 2014/15|
[30 May 2014] India's poultry industry is expected to report improved margins in the fourth quarter of 2013/14 (January to March) and 2014/15 fiscal years (March 2014 to April 2015), according to a report by Gurgaon based investment information and credit rating agency ICRA. The report said domestic broiler meat volumes are expected to register muted growth in the current fiscal on the back of supply control measures to remain healthy. Despite temporary supply mismatches resulting in demand substitution to other meat options, demand growth continues to remains healthy at 7-8% due to favourable socio economic factors such as changing eating habits, higher purchasing power, urbanisation, etc over the years. The production capacity has responded with increased integration and large scale implementation of contract poultry farming.
|Meat prices to remain high until year end|
[30 May 2014] Pork prices have surged as the porcine epidemic diarrhoea virus, which has decimated piglets in North America, has spread to Latin America and Asia. Beef prices have also jumped as drought in key cattle-rearing regions in the US, Australia and New Zealand has cut cattle herds, reported the Financial Times. Prices are expected to remain high throughout the year, said analysts. “There are no signs of beef prices coming down globally and, on pork, the virus has had a large impact,” said Rabobank analyst Albert Vernooij. Due to the PEDv in the US, Mexico, Japan and South Korea, Rabobank now expects global pork production to fall in 2014 instead of a previously forecast 1.3% rise. The USDA expects US output of beef to be at its lowest in 20 years this year.
|CP Indonesia’s DOC sales grows 24% |
[29 May 2014] Charoen Pokphand Indonesia has announced that sales of its DOC has registered as the second largest contributor to the company's revenue behind feed sales. DOC sales accounted for 15.1% of total sales in 2013. The company saw continued growth momentum for its DOC business, with sales increasing by 24.1% from USD 269 million in 2012 to USD 334 million. The company has a network of more than 75 breeding farms and hatcheries, making it the dominant producer of DOC in anticipation of rising demand.
|Korean companies to put up mill for corn silage in Philippines|
[29 May 2014] Philippine Agriculture Secretary Proceso Alcala said two South Korean companies have expressed their interest in putting up milling facilities for corn silage in the country, although he did not identify them. He said the companies would buy local corn silage, process them into feeds and export them back to South Korea. The Philippines is already exporting a small volume of corn silage to South Korea.
|San Miguel PureFoods to buy Panamax vessels|
[29 May 2014] PureFoods Co Inc, the food manufacturing unit of conglomerate San Miguel Corp, may purchase six brand new Panamax vessels for USD 50 million each to reduce cost and improve efficiency. Vice Chairman Ramon Ang said the acquisition would help with the transportation of key raw materials, including wheat and soymeal, reported Manila Standard Today. Mr Ang said the company consumed two million tonnes of wheat and soymeal annually, translating into a freight cost of USD 13/tonne. The acquisition would save the company USD 3-5/tonne, or USD 10 million annually.
|Indonesia to maintain beef price ahead of Ramadhan|
[29 May 2014] Indonesia’s Trade Ministry is currently trying to maintain the price of beef ahead of the upcoming fasting month of Ramadhan, which is expected to begin on June 28. “We are now in the process of stabilising the supply and price of beef,” Trade Minister Muhammad Lutfi said. He said that the country is currently suffering a shortage of beef, so it plans to import more supplies. “We are hoping that the price will not exceed the current price,” he said, adding that current prices are between USD 7.8-8.2/kg. The ministry is optimistic that prices will contract after the Idul Fitri celebrations.
|Tay Ninh-based firms boost chicken exports to Cambodia|
[29 May 2014] Businesses based in Vietnam’s southern province of Tay Ninh have earned nearly USD 47,000 from their daily export of 10,000 chickens to Cambodia through auxiliary border checkpoints. The province now has 86 chicken breeding areas under the model of large-scale farms, yielding a combined annual output of around 5.5 million chickens, reported Vietnam Net. To ensure food safety and prevent bird flu, the province’s veterinary sector has chickens vaccinated against H5N1 in addition to intensifying environmental sanitation at the farms. The price of poultry in south eastern provinces has increased to USD 1.78/kg from USD 1.22/kg at the start of the year.
|Stringent checks on poultry, eggs entering Singapore |
[29 May 2014] In the last three years, the Agri-Food and Veterinary Authority of Singapore (AVA) said only about 10 consignments of poultry and eggs from Malaysia have been refused entry into Singapore. These were for not having proper documentation. AVA has also not detected any cases of diseases in live poultry so far, reported Channel News Asia. Malaysia contributes as much as 70% of Singapore's egg consumption. More than 100 trucks from Malaysia convey about 160,000 live chickens and ducks, as well as four million eggs daily.
|Government support needed to give swine sector a boost|
[28 May 2014] Many swine farms in Malaysia are equipped with sound technology and farm management systems, and are ready to export their products, Perak Animal Husbandry Association President Tan Kuang Liang told Asian Agribiz. “Many farmers have upgraded their farms and are compliant with stiff export criteria, but we are lacking government help to promote our products.” He added that producers have also seen the benefits of branding, and are keen to assure consumers quality products. On the poultry side, industry players are worried that the country may not be able to compete effectively with regional players as the sector is completely dependent on the importation of feed. The sector must be able to bring down the cost of production of chicken and eggs in order to successfully compete with players from other Asean countries.
|Philippines sends halal beef to Brunei|
[28 May 2014] The Philippines has sent a trial shipment of halal beef to Brunei and is hoping to export to Malaysia as well, Philippine Agriculture Secretary Proceso Alcala said. Two containers of beef each averaging 25 tonnes were shipped by the Philippine unit of Australia’s Wellard Group to Brunei in early May after the sultanate conducted halal certification for the test shipment. The beef came from Australian yearlings that the Philippines imported and reared in facilities in Central Luzon. The Wellard Group is now seeking accreditation from Malaysia to enable it to export beef to that country as well.
|Vietnam looks to upgrade farms to industrial scale|
[28 May 2014] Vietnam’s Ministry of Agriculture and Rural Development wants to promote livestock breeding on larger farms, and gradually shift farming in high-population density areas such as deltas to low-population density areas in midland and mountainous areas. The restructuring plan, aimed at increasing the value and sustainability of livestock farming, will also set up disease-free livestock breeding areas away from cities and residential areas. The Ministry wants to increase the number of pigs raised on farms from 30% to 52%, chicken from 30% to 60% and ducks from 20% to 60%. All milk cows would be raised on farms under an industrialised breeding method. The plan targets a higher rate of poultry, cow and buffalo meat as part of the livestock sector relative to the amount of pork. Pork meat will fall from 74.2% of the livestock sector in 2013 to 62% by 2020.
|RNI to import cattle from Australia in September|
[28 May 2014] State-owned agribusiness firm PT Rajawali Nusantara Indonesia is developing transit locations for imported cattle from Australia, said President Director Ismed Hasan Putro. The locations are in Indramayu and Majalengka, both in West Java. “We are speeding up the development of the locations so that they will be finished by July or August. We can then have the imported cattle in September,” he said, adding that each transit spot will be able to accommodate 1000 cattle. “Currently we bring in local cattle from Sumbawa, Bali and Lombok to help increase local supply,” Mr Ismed said.
|Egg price in Kathmandu jumps 25%|
[28 May 2014] Egg prices in Kathmandu, Nepal have risen 25% over the last month. The wholesale price reached a new high of USD 0.13/egg, against USD 0.10/egg a month ago. Although the Nepal Egg Producers Association (NEPA) has fixed the maximum retail price USD 0.15/egg, retailers were found to be selling eggs at USD 0.17/egg. Egg producers attributed the hike to low production due to rising temperature and an increase in input costs. They, however, expect production to increase from June-July. NEPA Vice President Pradip Kumar Khanal said egg production declined by 40% in the last two-three months and rising production costs also contributed to the price rise.
|Global feed phosphates market expected to grow at 2.9%|
[28 May 2014] According to a MarketsandMarkets report, the global market for feed phosphates, was estimated to be worth USD 4,620.3 million in 2013 and is expected to reach USD 5,328.3 million by 2018, growing at a CAGR of 2.9%. The market is segmented and revenue is projected on the basis of main regions such as North America, Europe, Asia Pacific, and rest of the world. Feed phosphates are nutritive supplements are added as a source of calcium and phosphorus in livestock diets. They are used to enhance the growth of the animals, by strengthening bones of animals, efficient functioning of nervous system, improving metabolism, and improving digestibility of feed.
|CP Indonesia’s feed sales up by 16.2%|
[27 May 2014] In its 2013 annual report, Charoen Pokphand Indonesia announced that the production of poultry feed remains the company’s largest business and in 2013 sales of poultry feed reached USD 1.6 billion, growing by 16.2% over 2012. At this level, poultry feed accounted for 72.7% of the company’s total sales. The directors recognise the long-term prospects for the poultry feed business, which is influenced by increasing level of poultry farming activities across the country. The company will continue to expand its poultry feed production operations across the country.
|Sierad to expand Belmart business|
[27 May 2014] Indonesian integrator Sierad Produce plans to expand its retail business by opening more Belmart outlets in the Jabodetabek [Jakarta, Bogor, Depok, Tangerang and Bekasi] region, according to Foods Division Director Aryo Widiwardhono. “We are still looking for the best location in the region to open new outlets,” he said, adding that one outlet will cost the company around USD 38,000. Currently Sierad operates 14 outlets in the region and sells dressed birds, portioned cuts and further processed products. Mr Aryo added that the company recently put its new chicken slaughterhouse with a capacity of 20,000 tonnes/year in Jonggol, Bogor into operation. “This facility will support our Belmart business expansion.”
|EMS continues to plague Thai shrimp market|
[27 May 2014] Shrimp production in Thailand is suffering due to prolonging problem with the Early Mortality Syndrome (EMS).Director-general of the Office of Agricultural Economics (OAE) Anan Lila said farmers are still worried about the disease and have reduced their vannamei shrimp farming operation while some have switched to black tiger prawn. Shrimp prices, however, have declined despite low supply because shrimp processors have been importing from Vietnam, India and Ecuador and demand from overseas markets have also declined. The situation is expected to improve in Q3 and Q4 when weather conditions are more favourable for shrimp farming demand from foreign countries seasonally increase.
|USGC expands market for US DDGS|
[27 May 2014] US distiller’s dried grains with solubles (DDGS) have gained popularity in markets around the world, with 9.7 million tonnes, valued at USD 2.9 billion, exported in 2013 to more than 45 countries. In emerging markets around the world, the US Grain Council (USGC) continues to work to expand the market for US DDGS. In Southeast Asia, imports of US DDGS have grown from 252,548 tonnes in January to March 2013 to 352,674 tonnes in the same period this year, an increase of almost 140%. So far this marketing year, Vietnam, Thailand and Indonesia are the top 10 importers of US DDGS.
Asian Poultry Magazine, June 2014
Preview of feature articles
[27 May 2014]
QL ups productivity with good farm practices
By ensuring fresh and safe products, QL Livestock Farming Sdn Bhd has earned a market share of 20% in Sarawak, Malaysia. Good farm practices have helped it achieve higher-than average daily egg production rates, farm Manager Hii Chung Hieng tells RACHAEL PHILIP.
Processing yields results for CJ Indonesia
Although CJ Indonesia only ventured into the primary processing arena at the end of 2012, it turned out an impressive operating performance and growth in 2013. To compete well with other suppliers and enlarge its market share, the company has chosen to differentiate its products through assured quality, service and branding. The company told ARIEF FACHRUDIN that it plans to build a new slaughterhouse and advance to further processing operations.
Automation and cooperation fortify Ba Huan
Ba Huan in Vietnam has made an impressive transformation from a local family egg trading business to a national giant egg producer that provides up to one million quality eggs each day. The company has beaten many challenges in Vietnam’s highly competitive market and earned customers’ trust and support with its modern farming practice and automation, TUNG NGO reports.
Universal Feeds advances with integration plans
With an investment of USD 20 million, Universal Feeds is aiming to expand its market share in North India by producing high quality poultry feed and offering good technical support, writes ARIEF FACHRUDIN. The company is already seeing positive results on its own farms, with the new feedmill in operation.
|CP Indonesia acquires Sierad’s breeding assets|
[26 May 2014] Charoen Pokphand Indonesia through its subsidiary Charoen Pokphand Jaya Farm has acquired Sierad Produce’s poultry breeding and hatchery assets located in Lebak, Banten province worth USD 37.05 million to boost its production. CP Indonesia Director Eddy Dharmawan said that the newly acquired assets would add to the company’s output by 5%, particularly for its DOC and processed chicken products. CP Indonesia aimed to produce around 900 million DOC and 96,000 tonnes of food products this year with a total capital expenditure of USD 172 million, before purchasing the assets.
|BJPF operates second feedmill|
[26 May 2014] PT Bintang Jaya Proteina Feedmill, a subsidiary of West Kalimantan based Sujaya Group, recently put its second feedmill located in Serang, Banten province into operation. “The plant has an installed capacity of 30,000 tonnes/month and is expandable to 50,000 tonnes,” Plant Manager Sukinto Tanuwijaya told Asian Agribiz at the feedmill. Most of the production processes are automated with systems from Muyang. The plant is also equipped with a testing lab that employs advanced analysis technology. Mr Sukinto said, at the moment the plant only produces feeds for broiler and layer breeders, commercial broilers and layers and concentrates. However it will also produce pig feed if there is a demand.
|Betagro opens shop in Vientiane |
[26 May 2014] Thailand’s Betagro Group has opened its first overseas Betagro Shop outlet in Vientiane, Laos. This represents the group’s efforts at expansion ahead of the Asean Economic Community (AEC) at the end of 2015. President Vasit Taepaisitphongse said the group plans to increase the number of Betagro Shops in Thailand to 150 by the end of 2015, from 110 outlets nationwide at present. Betagro also launched a range of new food products under its premium S-Pure brand which include Onsen eggs and new products under the BETAGRO brand umbrella which include hygienic egg tofu, hygienic pig’s blood and pork and chicken soup concentrate.
|Vietnam to launch H5N1 flu vaccine by year-end|
[26 May 2014] A group of Vietnamese researchers have finalised a process to produce a new vaccine against the H5N1 avian flu virus and expect to launch their product late this year. The locally produced vaccine is the result of research that has been conducted over the past 10 years by Vietnamese scientists at the Company for Vaccines and Biological Production No. 1 and the Central Hygiene and Epidemiology Institute. It is prepared by using samples of the H5N1 virus taken from the first people who contracted the virus in Vietnam, researchers said. The vaccine has been tested successfully on both animals and humans, they said.
|Global coarse grain supplies projected up 2% |
[26 May 2014] The USDA has projected record global coarse grain supplies for 2014/15 of 1,461 million tonnes, up 2% grain from a year earlier. It projected in its ‘World agricultural supply and demand estimates’ that global corn production will be at 979.1 million tonnes, unchanged from 2013/14. Expected decreases for Ukraine, Brazil, India and South Africa are mostly offset by increases for China, Argentina, Russia and Mexico. Global corn trade for 2014/15 is projected lower with imports projected down year-on-year for China and Mexico. World corn consumption is projected at a record 965.8 million tonnes, up 17 million from 2013/14 on higher use in China, Brazil, the EU, Mexico, and Japan, the report said.
|Weather agency forecasts El Nino is Asia|
[26 May 2014] The UK Meteorological Office expects a high likelihood of El Nino striking Southeast Asia in the middle of the year. The institution, using the El Nino Southern Oscillation model, has forecasted a 70% probability of the phenomenon in the region, which is linked to dry spells and hence, a contraction in livestock production parameters. According to the Singapore National Environment Agency (NEA), El Nino occurs every two to seven years and lasts about nine to 18 months. NEA said annual rainfall in Singapore during the last spell was about half of the long-term average and the annual average temperature was 1.4 degrees Celsius above the long-term average. The Philippines expects to feel the impact of El Nino from October up to April 2015.
Preview of Asian Pork Magazine, June/July 2014
[23 May 2013]
Glut, diseases to play key roles in China pork market
China imported record amounts of pork last year, keeping China’s consumer prices low and making producers in exporting countries like the United States, Germany and Canada very happy. But as RICH HERZFELDER reports, a combination of domestic oversupply and overseas pig diseases has suddenly made the intersection between the Chinese pork cycle and the international market much more complicated.
Biosecurity and batching push EasyBio efficiency
Seeing the country’s potential, Easy Bio Philippines had high hopes when it ventured into pig production in the Philippines. After acquiring farms, ISA Q TAN reports that the company set to push up farm output, applying stricter biosecurity and a batch management system that helps enhance farm efficiency.
Burapa Farm thrives on small but efficient integration
Having experienced unstable prices in the past, Prasit Laungmanee decided to integrate the operation of his pig farm several years ago despite its being a small-scale venture. Thanks to efficient integration, the farm is now thriving well and has remained profitable, writes NITSARA THONGRUNG.
Cargill Indonesia understands what customers need
Cargill Indonesia designs its pig feed not only based on the animal’s nutritional needs but also based on the real conditions faced by farmers. This effort, accompanied by good after sales services, has taken Cargill to the top spot. ARIEF FACHRUDIN also learns that Cargill employs advanced formulation technology and implements strict quality assurance standards in producing its pig feed.
|Sujaya Group to become a food company|
[23 May 2013] Director of Sujaya Group, James Choi told Asian Agribiz at his office in Jakarta that West Kalimantan based Sujaya Group aims to become a food company in the next five years. “West Kalimantan is now a pilot project for our vertical integration plan. In the province, we have had broiler and layer breeding operations, a feedmill, broiler and layer farms and a chicken slaughterhouse. Now we are setting up a further processing plant in Singkawang that is targeted to be operational in the second semester of next year. We are also planning to venture into the QSR space,” Mr Choi revealed. Once the integration is complete, the company will copy and paste the concept in other provinces. West Java will be the site of its next vertical integration. In this region, it already has a feedmill in Serang, Banten province and is setting up broiler breeding farms in Sukabumi, West Java province.
|QL Livestock going the path of quality |
[23 May 2014] QL Livestock Farming Sdn Bhd’s slaughterhouse in the Samarahan Industrial Estate, Sarawak, which opened in July 2013, hopes to receive the ISO 22000 and the HACCP certification before the year is out, making it the only poultry processing plant in the state to have it. The plant received the halal accreditation in April this year. “The ISO certification will make it easier to market our products and eventually export them to countries such as Singapore and Indonesia,” QA Manager Catherine Har told Asian Agribiz. The plant doubled its output to 8000 birds/day within a year. By August 2014 it hopes to achieve 10,000 birds/day. Its target for 2015 is 15,000 birds/day.
|China aims to be a strong player in the halal market|
[23 May 2014] China aims to become one of the world’s leading exporters of halal meat and other food products. Its large population and big processing capacity gives it an edge. “This is a market off 1.6 billion people and China has the processing ability to capture some of this market,” China Centre for the Promotion of International Trade (Qinghai branch) Wang Xihui said at the International Halal Food and Products Fair recently. Among the visitors at the fair were representative of the Arab League and officials from China’s Muslim majority neighbours including Pakistan, Kyrgyzstan and Tajikistan. Chinese government data suggests China currently has a 0.1% share of the global halal food market. The country has a 20-million strong local Muslim population.
|Danish meat firms look forward to export sausages to China|
[23 May 2014] The Tulip Food Company said its Danish factories in Svenstrup and Vejle have been approved to export heat-treated products such as sausages and salami. Tulip Communications Manager Rune Jungberg Pedersen said he is unable to give an estimate on expected sales performance but hopes to see a steady increase in sales to China in forthcoming years. Tulip’s parent Danish Crown is likely the second company that will export heat-treated products to China. According to Mr Pedersen, the Danish Crown’s trade with China is stable but the company is seeing a rise in the sales of products for the foodservice sector. Tulip is now working to prepare the right range of products for its Chinese customers, reported globalmeatnews.
|EU lifts ban on Indian poultry meat imports|
[22 May 2014] The European Union (EU) has lifted a five-year ban on the import of poultry meat from India, although conditions will apply. Meat products, including bladders and intestines prepared from fresh meat of domestic poultry, including meat of farmed and wild game birds, which are exported must carry a health certificate issued by the Export Inspection Council of India. Managing Director of Indian poultry integrator Suguna Foods, GB Sundararajan told Asian Agribiz that this was good news for the Indian poultry industry. "India has a huge opportunity to export organic country birds to the EU.” Mr Sundararajan believes that in the long term, India can export poultry breast meat to the EU. He also revealed that Suguna is planning to export poultry meat to the EU. Currently, India exports various poultry products, including eggs and processed meat, worth USD 85 million a year. The EU accounts for 20-25%.
|Swine farmers expect strong prices this year|
[22 May 2014] Despite the slight supply shortage in Malaysia, pig farmers are expecting good pig prices to continue through this year. Last year ended with prices hovering at USD 1.88kg. By the first quarter of this year prices reached USD 1.96-1.99/kg. “In the second half of 2013 feed raw material prices were riding high. This coupled with over production caused our prices to drop. Feed prices are now looking good. Farmers too have reduced the sow population on their farms. These factors have caused prices to rebound in the last three months. There were also reports of farms closing down in Johor. We are hoping for a new high of USD 2.18/kg this year,” Perak Animal Husbandry Association President Tan Kuang Liang told Asian Agribiz.
|Chinese pig producers buying feed again|
[22 May 2014] Pig producers in China have boosted feed purchases after a six-month slump, sources at the China Animal Husbandry Exposition in Qingdao told Asian Agribiz. Pork prices jumped shortly after the government announced plans to buy pork for its pork reserve, and increased feed orders followed immediately. Another industry source said the government had planned to buy 88,000 tonnes of pork, but was having trouble actually completing the purchases because companies that act as government agents are reluctant to bid. Pork prices declined for 19 straight weeks ending in April, but there is not yet a clear rising trend. Some sources said they did not expect a “natural” price boost – not stimulated by government or a price bubble – until August, when demand usually increases as autumn approaches.
|Macroprima to produce more affordable cured products|
[22 May 2014] PT Macroprima Panganutama, a subsidiary of Indonesian-based Cimory Group is facing flat growth for its cured meat products. According to CEO Boediono Tandu, sales are stagnant. "This situation is also faced by other cured meat products producers. The market is segmented in Indonesia. In addition, the price is high since it is made of whole muscle meat and the shrinkage during the process can reach 30-40%,” Mr Boediono told Asian Agribiz. Macroprima produces smoked (whole muscle) beef, beef bacon and smoked chicken breast. Its cured meat products are only sold at special outlets, restaurants and cafes in big cities as these products appeal to the higher income group. However, we plan to introduce similar products that are more affordable soon.”
|Poland wants to export pork to Asia|
[22 May 2014] Poland wants to hold talks with the agricultural ministers of China, Singapore and South Korea on lifting the embargo on Polish pork. Earlier this year two wild boars were found dead in Poland with African swine fever causing a number of countries to ban pork imports from the country. Agriculture Minister Marek Sawicki said that documents have already been presented to the respective countries. The move comes as Poland is trying to make up for losses after Russia and Belarus put a stop to meat imports from the EU. “If we take into account the whole of Asia – Japan, China, Singapore, Korea and Vietnam – this would make up 200,000 tonnes of meat, the equivalent of what we would be exporting to the [Russian] customs union,” Mr Sawicki said.
|US pork exports to North Asia rise sharply |
[22 May 2014] US pork exports increased sharply in March despite high prices caused by the outbreak of PEDv, according to the US Meat Export Federation. US pork exports reached 209,704 tonnes in April, the highest since October 2012 and up 29% from March. The increase was driven by higher exports to Mexico, Japan, South Korea and China, where US imports reached their highest volume since February 2013 despite oversupply and low prices in the domestic market. US beef exports were also up in March, driven by an 88% boost in shipments to Hong Kong. US beef is currently banned on the Chinese mainland, but is on track for approval later this year.
Slaughterhouses in Asia gain traction
[21 May 2014]
The number of slaughterhouses across Asia has been growing steadily but at a different pace reflecting the demand for safe and hygienically slaughtered meat. In Indonesia, for instance, some 30% of the birds are slaughtered hygienically, adhering to halal standards and keeping the cold chain intact. “The figure will continue to grow along with awareness on the part of consumers towards healthy and safe chicken meat,” said Indonesian Poultry Organisations Association (Gopan) Chairman Tri Hardiyanto, who added that 20% of Gopan members own semi-modern and modern slaughterhouses.
Slow, yet sure, growth in India
In India the transformation from fresh to processed chicken is slow. Some 94% of broilers are slaughtered and sold in wet markets and only a small percentage is slaughtered in processing facilities, said SR Hatcheries Director of Technical Services, S Rawindar Reddy. However, according to Dhopeshwar Engineering Technical Manager Imamuddin, demand from hotels and restaurants is changing the scene. “Our customers are looking for small capacity processing plants. Last year we designed mini processing plants with capacities of 1000-2000 birds/day.” Meyn Food Processing Technology Area Sales Manager Karel de Waal added: “People who build small plants, 1000 birds/hour, quickly upgrade to 2000 or 3000 birds/hours.”
Strong role of government lifts processing sector in Thailand
The Thai government is playing a strong role in ensuring slaughterhouses meet high global standards. Abattoirs that meet set standards are issued permits. This encourages those that fall below the standard to upgrade their facilities. Head of Slaughterhouse Control Sombat Supprapakorn told Asian Agribiz that the Department of Livestock Development (DLD) sends special teams out to conduct checks and weed out illegal plants. Last year some 62% of total slaughterhouses nationwide, or 1712 slaughterhouses, received DLD permits for handling and slaughtering animals.
More work needs to be done
In the Philippine’s about 80-90% of the country’s slaughterhouses are locally-registered meat establishments (LRMEs) which are operated and monitored by local government units. Many are used as service facilities, with meat dealers employing their own butchers to slaughter the animals. “LRMEs are not yet accredited by the National Meat Inspection Service,” said Executive Director Dr Minda Manantan, noting that many of these facilities still fall below the standards set by the agency. “We are looking to improve the structure itself and come up with a design that conforms to or supports the adoption of GMP. Currently for LRMEs, we devised the Good Hygienic Slaughtering Practices (GHSP). These are similar to GMP but adapted for slaughterhouses and plants that are unable to, as yet, meet the structural requirements of the GMP.”
Illegal slaughterhouses pose challenge to growth of sector
In Ho Chi Minh strict enforcement has led to better control of fresh meat and better performance of centralised abattoirs. Yet meat providers like Vissan, the largest in Vietnam, still consider the prevalence of illegal slaughterhouses as a major challenge. Vietnam Animal Health authority said the country currently has more than 28,000 small slaughtering sites. Hanoi, meanwhile, consumes about 750 tonnes of meat daily, 80% of which is slaughtered in small and unchecked sites. Realising the threat to public health, Hanoi aims to reduce the number of small abattoirs by 50% in three years. It is providing investors with low interest rates for loans. However, producers said it may not be sufficient to help compete with the army of illegal butchers.
Enforcers should step up monitoring of wet markets
In west Malaysia only 30% of broilers make their way to modern processing plants approved by the Department of Veterinary Services. The rest are slaughtered at wet markets. “The facilities also do not have a veterinarian on site to classify the chicken safe for consumption,” said the Federation of Livestock Farmers Association Malaysia Secretary General Jeffrey Ng. Poultry traders say it would only cost them more time and money to get their poultry processed at slaughterhouses. In east Malaysia however, 95% of chicken meat is sold chilled. “Hardly any live birds are sold in wet markets,” poultry integrator QL Agro Resources Sdn Bhd Director Dr Ng Siew Thiam told Asian Agribiz.
|Philippine pig production up 1.25% in Q1|
[21 May 2014] Philippine pig production rose 1.25% in the first quarter of this year, the Philippine Bureau of Agricultural Statistics (BAS) said. Data showed that pig production during the period reached 481,710 tonnes, up from 475,750 tonnes the previous year. Average farm price for the quarter is also up 4.58% to USD 2.26/kg from a year ago. Edwin Chen, President of Pork Producers Federation of the Philippines, told Asian Agribiz that this shows that the industry has not contracted. But growth has not been able to offset the increase in demand for local pork by meat processors. Dr Zoilo Lapus, President of the Philippine College of Swine Practitioners told Asian Agribiz that supply is still lagging and this has pushed the farm price to around USD 2.70/kg. Mr Chen said it would not be advantageous for local producers to allow farm price to reach USD 3.00/kg.
|Gradual growth for the meat duck market |
[21 May 2014] Meat duck farmers in Malaysia are expecting a good year. According to the Federation of Livestock Farmers Association of Malaysia, in 2013 the sector projected 24 million meat ducks produced in the country, up from 20 million the year before. Viatak Enterprise Company Sdn Bhd Manager Leong Yew Siang said the state of Perak is a good place for duck rearing. Viatak operates eight farms, and has a slaughterhouse and a further processing plant that produces frozen ready-to-eat products. “Business is growing but at a slow pace. Ducks are mainly consumed by the Chinese community,” he told Asian Agribiz Media. Viatak holds a 30-35% market share in Malaysia. To reduce its dependency on manpower the company will install an auto-evisceration machine by September.
|Swine farmers see benefits of branding |
[21 May 2014] Pig farmers in Malaysia are aware of the positive effects of retailing their products under a brand name and are increasingly looking to sell their products in modern retail outlets. “Branding is good. Under a brand, producers will not only aim to meet higher standards but can assure customers that their products are produced without harmful additives and meet good farming and production practices,” Perak Animal Husbandry Association President Tan Kuang Liang told Asian Agribiz. This, he said, are some of the concerns that consumers have. They would like to be better informed of the meat they consume. “Branding will build loyalty and this in turn will increase consumption,” he said.
|CP Indonesia’s 2013 sales up 20.4%|
[21 May 2014] For the year ending 31 December 2013, Charoen Pokphand Indonesia posted sales of USD 2.25 billion derived from its three main areas of business, poultry feed, DOC and processed chicken products – an increase of 20.4% over the previous year. Although 2013 reflected a new record in terms of sales and gross profit, the company’s net income decreased by 5.7% to USD 222 million from USD 235 million in the previous year. This was attributed to the 26.1% depreciation of the rupiah, which resulted in higher production cost and a foreign exchange loss in relation to the company’s US dollar denominated debt.
|Thailand may resume raw chicken exports to the Philippines|
[21 May 2014] Thailand is hoping the Philippines will its ban on Thai raw chicken imports soon, according to Somkiat Triratpan, Deputy Director-General of Thailand’s Department of Trade Negotiation. "The department has been in discussions and negotiating for the reopening of the market in the Philippines,” said Mr Somkiat. Philippines is the only Asean country that still maintains a ban on Thai raw chicken meat while world’s major chicken importers Japan and the European Union have already lifted the ban.
|Farmers must evolve to stay relevant|
[20 May 2014] Perak Animal Husbandry Association President Tan Kuang Liang said local farmers must upgrade and increase productivity within the next five years or face crippling competition from farmers that do. “The number of farms will shrink in the coming years but the size of the farms that exist will increase,” he told Asian Agribiz. “The pig farming landscape in Malaysia is gradually changing. At the end of the day it will reflect the survival of the fittest. Farmers must consider issues such as sustainability, food safety and hygiene to stay relevant.” The Perak Animal Husbandry Association is a member of the Federation of Livestock Farmers Association of Malaysia. Perak is one of the larger pig producing states in Malaysia.
|Vietnam increases white leg shrimp cultivation|
[20 May 2014] Vietnamese farmers in the southern Mekong Delta have significantly increased the area of white leg shrimp farms as the product is in demand in domestic and international markets. Many farmers have even shifted from black tiger shrimp farming to white leg shrimp. Tra Vinh province has reported 1400 ha of white leg shrimp, increasing nearly eight-fold from last year. Soc Trang and Ben Tre provinces have also experienced significant increases of 300-400%. “We are worried as it enhances the risk of disease and environmental problems,” Nhu Van Can, Vice Director of Dong Thap’s Agriculture and Rural Development told Asian Agribiz. Vietnam earned more than USD 1.4 billion in exports last year.
|Pork price bubble at SIAL|
[20 May 2014] Chinese importers fearing higher pork prices were eager buyers at the SIAL food expo in Shanghai, participants told Asian Agribiz. An unusual volume of on-the-spot orders led to rising prices through the three days of the fair for exporters from the US, the EU and Brazil as Chinese buyers tried to nail down orders. The domestic market has just gone through an oversupply phase, and traders are anticipating a switch in the price signal. Meanwhile export supply has tightened due to PEDv in the US and African swine fever in Poland. Strong demand led some sellers to hold product back in anticipation of even higher bids. However, market observers said it was unclear if the SIAL price bubble would last.
|CPF confirms safe sausage production |
[20 May 2014] Thailand’s Charoen Pokphand Foods Plc (CPF) has said that it is impossible for the company to produce sausages using the whole carcass of the pig without separation and selection of appropriate parts. CPF released a statement to confirm its world-class complete automation line for sausage production following reports in social media that said the entire carcass was used to produce sausages. “CPF slaughters and separates the animal into parts and use ones that are appropriate for each type of sausage. The company reiterated that CPF sausage products are traceable and customer can be ensured of freshness, cleanliness and safety.
|Smithfield records encouraging Q1 results |
[20 May 2014] WH Group subsidiary Smithfield Foods Inc. reported record first-quarter earnings as pork prices soared due to porcine epidemic diarrhoea virus (PEDv). The USD 105.3 million in net income was a welcome piece of good news for WH Group. The Chinese pork giant, formerly known as Shuanghui, was forced to abandon an effort to list on the Hong Kong Stock Exchange earlier this month. Shuanghui bought Smithfield for USD 4.7 billion last year, but investors questioned whether the combined company was worth the listing price. PEDv has affected some of Smithfield’s US herds, but the loss has been outweighed by higher hog weights and higher prices.
|NZ to restore beef volumes in Indonesia |
[20 May 2014] New Zealand has made its second complaint to the World Trade Organisation about import restrictions and red tape in Indonesia that led to an 80% slump in exports of beef and horticultural products. The new complaint was lodged on May 8. New Zealand’s beef trade slumped after Indonesia imposed volume-based quotas in 2011 with the intention of becoming self-sufficient. New Zealand exports of beef and beef offal tumbled to 10,355 tonnes in 2011, from 48,405 tonnes in 2010. Volumes began to pick up again last year after Indonesia eased the restrictions but are still well below levels before the initial quotas were imposed.
|Small, niche market for cured meat products in Indonesia|
[19 May 2014] The market size of cured meat products in Indonesia is estimated at less than 5% of the total market size of processed meat products in the country, accounting for about USD 529 million, according to an executive from an Indonesian meat processing company who told Asian Agribiz that demand from hotels, restaurant and caterer is higher and more developed than in the retail market. Marketing Manager of PT Kemang Food Industries Wawan Kusmawan explained to Asian Agribiz that cured meat products can only be found in specific retail outlets targeting expatriates. Mr Wawan predicted that in the future, cured meat products in the country would be more developed in institutional markets and specific retailers.
|Glut and diseases impact China's pork market|
[19 May 2014] China imported a record amount of pork last year, helping to temper domestic consumer prices. But an oversupply situation has pulled down Chinese pork prices to some of their lowest levels in 15 years, and producers are scrambling to cut back on local production. By end 2014, the country’s pork supply will likely shrink, and imports will be needed once more to control prices. However, with China’s key international pork suppliers either suffering diseases or at risk of disease, where will the meat come from? Read more about how the China pork market could play out in the June 2014 issue of Asian Pork Magazine.
|Jollibee Q1 net income up 20.5%|
[19 May 2014] Leading Philippine fast food company, Jollibee Foods Corporation (JFC), posted a 20.5% growth in its net income for the first quarter this year as system-wide sales grew 14.6% to USD 623.63 million from USD 477.66 million year on year. While the company’s profit growth was driven by strong sales from both domestic and overseas operations, overseas sales posted a 24.3% growth, as compared to 12.3 growth in domestic sales. As of end-March 2014, JFC is operating 2805 stores worldwide, 588 of which are outside the Philippines.
|Australian food processors must be based in Asia|
[19 May 2014] Australian food processors are unlikely to meet with success in the booming Asian Century marketplace unless their processing operations are actually in Asia said market strategist David Thomason. They will also need to become much bigger businesses, probably as joint ventures with Asian companies. He said while Australia might have abundant supplies of food commodities for emerging markets, “the future for food manufacturing for Asia will be within Asia”. “We have to be part of the world food scene, not just local manufacturers making products for the domestic market and looking to export some surplus,” Mr Thomason said adding that factors such as high cost of Australian labour and the high Australian dollar work against the sector.
|BJP vows to curb India’s beef exports |
[19 May 2014] India’s Hindu nationalist Bharatiya Janata Party said it will clamp down on beef exports. India has emerged as the world’s number one exporter of beef, supplying to markets such as Malaysia, Thailand, Vietnam and Egypt. Although most of the meat is buffalo, which is not considered sacred like the cow, the party wants to curb exports that jar with the country’s vegetarian tradition and to boost the availability of animals reared to work on farms and for their milk. Currently to help beef producers and exporters set up abattoirs, the federal government pays 50-75% of the cost of construction.
|Australia lamb prices expected to soar |
[19 May 2014] Strong demand for Australian lamb has seen prices increase 30% since the start of 2014 to USD 515/100kg from USD 398/100kg, pushing prices up to their highest levels since 2011. According to commodities analyst Mintec dry weather conditions over the past few months resulted in a greater number of animals being slaughtered as a result of reduced grazing land, and increased feed costs. However high export demand has driven prices upwards with February 2014 seeing the highest lamb export volumes on record at 19,200 tonnes, up 9% year-on-year. Supplies are expected to tighten going forwards as the number of lambs fell by 9% at the end of February to 2.3 million heads.
|Mizoram facing shortage of pork|
[19 May 2014] Mizoram, one of the seven sister states of North Eastern India, is facing an acute shortage of pork, and the state government is making efforts to increase its production following the death of large number of pigs due to Porcine Reproductive and Respiratory Syndrome. The Animal Husbandry and Veterinary Department will give a 50% subsidy to those who are rearing pigs for breeding to ensure that these pigs are free from disease, said Veterinary Department Director L B Sailo. “Serology surveillance would also be taken up in as many places as possible. Elisa test kits would be procured to test against PRRS,” he said.
|Flat growth for Indon cured meat sector |
[16 May 2014] The growth of cured meat products in Indonesia is minimal compared to further processed products like nuggets and sausages said Executive Director of the National Meat Processors Association (Nampa) Haniwar Syarief. "Cured meat products are expensive and Indonesians are not accustomed to eating cured meat products. The market size of cured meat products in Indonesia is small, and segmented,” Mr Haniwar told Asian Agribiz. Deputy Head of Technology Development and Training of Nampa, Boediono Tandu added that the growth of cured meat products produced by industrial-scale meat processors, in terms of volume, is estimated at only about 1% a year. "The growth of cured meat products sold at traditional markets and produced by cottage industries has been stagnant due to raw material (beef and chicken) price increases,” Mr Boediono added.
|Aviagen India achieves compartment status|
[16 May 2014] Aviagen India has achieved compartmentalisation recognition by the Central Indian Government and State Government of Tamil Nadu. This recognition of Aviagen India’s facility at Elayamuthur near Udumalpet is in respect of bird health, welfare and bio-security standards. “It required a significant effort and hard work to achieve compartmentalization which also entailed converting our recording system to be compliant with the government reporting needs, commented Thamarai Selvi, Quality Assurance Manager. “It is a tremendous benefit for the supplier and customer and definitely worth the resource and commitment to secure,” added Dr Natarajan Kavitha, GGP Production Manager.
|New chicken processing plants boost sales for Betagro|
[16 May 2014] Betagro expects its new chicken processing plant in Pattalung province in southern Thailand to help the company intensify sales. The new facility, officially opened yesterday, entailed USD 18.5 million in investment and has a capacity of 60,000 birds/day. Its capacity can be doubled. “Betagro sees the southern region as important with growing potential, especially for the chicken and parts market. We target an increase in sales to USD 252 million this year from USD 203 million,” Vasit Taepaisitphongse, President of Betagro, told a press conference. Betagro targets to achieve a total sales revenue of USD 2.68 billion in 2014, up from USD 2.34 billion the year earlier.
|Salim Group interested in Burger King, Domino’s Pizza|
[16 May 2014] Indonesia’s PT Mitra Adiperkasa, brand holder and operator of Burger King and Domino’s Pizza in Indonesia, plans to sell the two quick service restaurant (QSR) chains’ brands. Salim Group, the holding company of the largest instant noodle producer Indofood and the major shareholder of KFC operator PT Fast Food Indonesia, has indicated its interest in buying the two QSR brands, according to Kontan Indonesia. “We want to focus on the department and specialty store business,” said Fetty Kwartati, Corporate Secretary of Mitra Adiperkasa, explaining why the company is selling the two brands. Mitra Adiperkasa operates 47 Burger King and 60 Domino’s Pizza outlets.
|New stores, expansion in Indonesia helps CCK grow|
[16 May 2014] New outlets as well as its expansion in Indonesia have helped Malaysia's CCK Consolidated Holdings Bhd (CCK) reach better results. The company recorded revenue of USD 70.9 million for the six months ending December 31 2013 compared to USD 128.4 million for the 12 months ended June 30 2013. It opened five concept stores across Sabah and Sarawak during the financial period under review bringing the number of retail outlets and wholesale stores to 57. “The new stores have enabled us to introduce the concept of farm fresh poultry and eggs to more consumers,” said Chairman Datuk Tiong Su Kouk. Also during the period under review PT Central Coldstorage Khatulistiwa, a 90%-owned subsidiary of CCK via PT Adilmart, was incorporated in Indonesia.
|US corn planting ahead of 2013|
[16 May 2014] The US Grains Council's has indicated that as of May 4, the 18 states that produced 91% of the 2013 corn crop, are 29% planted compared to just 11% at the same time last year. However, this is still behind the five-year average planting progress for the first week of May of 42%. Only four states, Colorado, Illinois, Kansas and Missouri, are ahead of their five-year averages, while Kansas, Missouri, North Carolina, Tennessee and Texas are all more than halfway planted.
|Egg prices in Kathmandu soar on short supply|
[16 May 2014] Price of eggs in Kathmandu, Nepal has reached a record high of USD 3.3 per crate (30 eggs). Nepal Egg Producers Association (NEPA) attributed the hike in prices to a decline in supply. “Supply has come down by more than 50% due to disease outbreaks,” Shiva Ram KC, President of NEPA, said. “Farmers who faced huge losses due to bird-flu last year, are reluctant to put more money into their poultry business.” Mr Ram added that prices of raw materials for poultry farming have also increased.
|Sarawak’s PFA gets AVA approval|
[15 May 2014] The abattoir and breeder farm at the Pig Farming Area (PFA) in Sarawak, East Malaysia, has passed the Agri Food and Veterinary Authority of Singapore’s (AVA) stringent checks paving the way for export of frozen pork as early as the August. Malaysia exported live pigs to Singapore until 1998 when the Nipah virus led to a halt in all exports. PFA anchor tenant Green Breeder Director Veronica Chew told Asian Agribiz the AVA's approval came after intensive inspection of the production systems and practices at the PFA. “The blueprint of the PFA envisioned exports from the beginning,” said Madam Chew. The PFA slaughterhouse has a capacity of 120 pigs/hour, and a cutting plant of 50 pigs/hour. When fully operational it hopes to export 800 carcasses/day.
|Bali pig farmers enjoy good prices|
[15 May 2014] Pig farmers in Bali, Indonesia are currently enjoying good prices for live pigs. Chairman of the Bali Pig Farmers Association told Asian Agribiz that the price of live pig is currently at USD 2.6/kg, while the production cost ranges from USD 1.73 to USD 2/kg. Swine Specialist of Charoen Pokphand Indonesia Phaitoon Na Ayudhaya explained to Asian Agribiz that limited supply has raised the price of live pig in the province. “Oversupply in 2012 and 2013 which led to production losses reduced the pig population in Bali by 30%.” According to Mr Phaitoon, farmers could enjoy good prices by five months or more if they can control the pig population.
|CJ steps up fermented soybean meal production|
[15 May 2014] Korean-based CJ CheilJedang is stepping up production of its high-protein fermented soybean meal Soytide for animal feed. The company recently increased Soytide production capacity to 13,000 tonnes from 5,000 tonnes by establishing a production plant in Korea and will follow up with a production base in Vietnam in the second half of the year. CJ said that demand for fermented soybean meal is increasing because of the rise in fish meal prices due to supply-demand imbalances. The global fermented soybean meal market is currently estimated at USD 683 million, with an annual average growth rate of 5% due to the steady growth in demand from markets like China and Southeast Asia. Market leaders in this area include Hamlet Protein A/S of Denmark and DaBomb Protein of Taiwan.
|Pork prices bring China’s consumer price index down|
[15 May 2014] The price of pork in China fell 7.2%, contributing to a decline in the April Consumer Price Index which fell below the key 2% level, coming in at 1.8%. Prices for the whole meat and poultry category dipped 0.7%, dragging down the CPI by 0.05 percentage points. Fresh vegetable prices, another key factor in the April index, went down 7.9%. Economist at the China Centre for International Economic Exchanges Wang Jun said, a government think tank, attributed the falling pork prices to the ‘improved relationship between supply and demand’.
|KFC Malaysia to open first green restaurant|
[15 May 2014] KFC Malaysia will open its first green restaurant in Nilai, Negeri Sembilan, the first in Southeast Asia, by mid-year, with an estimated investment of up to USD 900,000. Senior Vice President Ling Mee Jiuan said the restaurant would be similar to other KFC outlets but would be more environment-friendly and use different materials, without elaborating as it is still under development, she told reporters at the launch of the new Zinger Remixed Burger. KFC Malaysia currently has 582 outlets, and targets another 25 this year including 20 drive-thru outlets. Ms Ling said KFC Malaysia expects a 10% increase in sales, having spent more than USD 1 million in advertising.
|Higher surveillance at Chinese borders |
[15 May 2014] Countries bordering China are preparing to draw up an emergency plan to prevent the potential spread of the H7N9 bird flu strain. “The scheme will involve Myanmar, Vietnam and Laos, the countries which share borders with China,” said Myanmar Livestock Breeding and Veterinary Department Dr Kyaw Naing Oo. “The contagion has a high potential in these countries, especially in border areas. We have heard that Vietnam has already implemented the scheme.” The plan will outline the necessary measures if bird flu is found in poultry or people, or in both. Funded by the World Food Programme, the extensive precautions against H7N9 in the neighbouring countries will be in place within two months, officials said.
PEDv: Regional and global update
[14 May 2014]
PEDv continues to impact global pork supply
The ongoing porcine epidemic diarrhoea virus (PEDv) outbreak in North America and Asia will continue to wreak havoc on global pig supply not only this year but beyond. Estimates have it that pork production in the US, the world’s largest pork exporter, could fall by about 7% this year because of the virus, and prices could go up by 15-25%. Pork prices in the world market are already high, even as the US Meat Exporters Federation noted that “PEDv has been a factor both in the US and in a number of export markets, creating supply concerns going into the summer.” Meanwhile, the EU, while deciding not to ban pork imports outright, has tightened its rules on imports of pork by-products used in animal feed in an effort to keep the new PEDv strain out of Europe.
Pig prices remain high
Farm price of pigs continue to be high in the Philippines, with some areas recording prices of almost USD 3/kg. Edwin Chen, President of the Federation of Pork Producers in the Philippines, told Asian Agribiz that several factors have kept the farm price up but one key reason is the high pork prices in the country’s trading partners like the US. “PED challenges in USA and Canada brings imported pork at an all-time high this year. Landed price of imported pork in the Philippines is now about USD 4.12/kg from USD 3.66/kg before and this has driven local meat processors to buy more local pork.” This in turn has further tightened local supply, which is already suffering from the effect of the unusually cold weather early this year and diseases like PED and PRRS. Mr Chen added that the current hot weather in the country has also led to slower growth rate of the pigs. Dr Civilo Lima of Villa Aida Farm agreed telling Asian Agribiz that the extreme heat has directly affected ADG, with farms now selling pigs at 6.5 months old instead of normal six months.
PEDv eases up in Thai farms
Losses from Porcine Epidemic Diarrhoea virus (PEDv) in farms in Thailand has declined although the disease remains a threat in some farms. “Piglet mortality is down from 100% when the outbreak began in Q3 of last year to around 20% at present and pig production has gradually increased,” Kiddivong Sombuntham, Secretary-General of the Thai Swine Raisers Association of Thailand, told Asian Agribiz. He said sow population is forecast to grow to 880,000 heads and will produce around 14 million pigs. In March 2013, sow population was at 850,000 sows, but PED and PRRS epidemics were then expected to slash the fattening pig population to around 12 million heads. Because of supply concerns, the farm price of pigs in Thailand is currently at USD 2.42/kg and pork prices are hovering at USD 4.75-4.90/kg.
Thai research team develops oral PEDv vaccines
A Thai research group made up of faculty from Pharmaceutical Sciences and Veterinary Science, Chulalongkorn University, has developed oral vaccines and a diagnostic tool application to tackle PEDv. Assistant Professor and team leader Dr Dachrit Nilubol said that an oral live and oral DNA vaccine are available as well as the diagnostic tool to assess the level of serum neutralising (SN) titre in colostrum and milk. “Trials in 4-5 farms (in Ratchburi province, a pig growing area) show positive results. We are going to patent the products and will officially launch the products in 2-3 months,” Dr Dacrit told Asian Agribiz. Both vaccines are administered orally to gilts and sow at pre-farrow to stimulate SN antibody levels in colostrum while the diagnostic tool, an ELISA-based technology, was developed to investigate the level of immunoglobulin A in colostrum and milk, according to Dr Dacrit.
PEDv on the decline in Vietnam
While the PEDv has been present in Vietnam for many years now, it only became a major concern for the local pig industry when outbreaks began to occur more regularly. The most recent outbreaks happened in March and April this year, Pham Ngoc Thach, a professor from Hanoi University, told Asian Agribiz, adding that the virus “hit even pig farms of foreign companies, which maintain high biosecurity standards. In single farms, it would be normal to see 500-600 pig die because of PEDv.” However, he said that while the virus continues to be a major threat to pig farmers in Vietnam, he said the disease has now subsided.
No cases of PED in Indonesia, Malaysia
Even as PEDv has affected neighbouring countries like Thailand, the Philippines and Vietnam, Indonesia and Malaysia report that there are no cases of PED in their industries. Mr Phaitoon, Swine Specialist of PT Charoen Pokphand Indonesia told Asian Agribiz that there is no case of PED in Bali and in other pig production centres such as Central Java, North Sumatra and Eastern Indonesia. This was confirmed by Cargill Indonesia’s Swine Technology Application Manager Gusti Putu Gunawijaya and Alexander Kasim of the Solo Pig Farmers Cooperative. Mr Phaitoon said that Indonesia’s archipelagic nature makes “the spread of diseases harder,” although he suggested that pig producers in the country should improve biosecurity and hygiene standards, while the government should ban imports of pigs and pork from countries that are currently affected by PED. Similarly, Federation of Livestock Farmers' Association of Malaysia Pig Unit Chairman Chuang Hock Meng also told Asian Agribiz that there have been no cases of the PEDv in Malaysia, but he also warned that the government must ensure no live pigs come in from affected countries.
|Cargill expands feedmill in central Vietnam|
[14 May 2014] Cargill’s animal nutrition business recently celebrated the completion of its USD 20 million feedmill expansion in Vietnam’s Binh Dinh province. The expanded facility will enable Cargill to meet growing demand for high-performing feed from its customers in the country. This brings Cargill's investments in Vietnam to more than USD 110 million in the last decade. “Our investments demonstrate our confidence and commitment to the growth and future of Vietnam's feed industry,” said Joe Stone, President, Cargill Animal Nutrition’s feed and nutrition business. “We continually invest in our capabilities to ensure our customers always have unique and proven solutions that help them make the right business decisions.” The expansion increases the plant’s capacity by four times to 240,000 tonnes per year.
|McDonald’s gets a boost from strong China sales |
[14 May 2014] Strong April sales in China helped McDonald's Corp offset flat sales in the US, according to McDonald’s CEO Don Thompson. Worldwide same store sales rose 1.2% in April, led by a 2.9% same-store gain in Asia/Pacific, the Middle East and Africa. China same-store sales were up strongly over last year, when sales were affected by outbreaks of avian influenza which put consumers off ordering the company’s chicken offerings. The company also cited positive results in Australia, though it said it faced ongoing weakness in Japan.
|New worldwide logo for Aussie red meat|
[14 May 2014] In its attempt to standardise the marketing of red meat worldwide, Meat and Livestock Australia will launch the 'True Aussie' brand at a trade fair in China later this month. The True Aussie brand will replace logos such as Aussie Beef. MLA global marketing general manager, Michael Edmonds, said that up until now the marketing of Australian red meat has changed depending on the country it was destined for. "But with consumers travelling more, it makes sense to have a universal marketing campaign," he said.
|China's government moves to stabilise pork price|
[12 May 2014] China's National Development and Reform Commission has said that the government will purchase more frozen pork from the market to stabilize prices and reduce farmers' losses. The move, the second in two months, is to address the cyclical pork price fluctuation. A similar measure in March has proved to be effective in boosting pork prices, with the national average hog price reaching USD 1.78/kg by 30 April, ending a 19-week decline. However, the hog-to-corn price ratio, a major indicator for the industry's profitability, stayed at 4.64:1 at the end of April, still far below the break-even point of 6:1 for farmers. The supportive policy is expected to ensure pork production in the long term, according to the commission.
|Monsanto Indonesia to launch new corn seed|
[12 May 2014] Monsanto Indonesia has said that it plans to launch a new corn seed DK 333 this year in response to El Nino that is predicted to happen in June 2014. CEO Mauricio Amore claimed that DK 333 is a superior variety that withstands drought conditions. “Production this year will be impacted by a long drought. We need a new corn seed that can survive this situation,” said Mr Amore. Monsanto Indonesia this year expects to produce 6000 tonnes of corn seed. “Until the first quarter, we have produced about 30% of the production target,” said Mr Amore.
|Indian poultry feeds up on higher input cost|
[12 May 2014] Prices of poultry feeds in India increased last week trended upwards due to the rise in key ingredient prices. “Higher soybean meal mainly pushed feed prices up,” said Aditya Mishra, a commodity trade expert. Prices of feed products increased by USD 0.5-1.8 for a 50 kg bag. Soybean meal rose by USD 28.3 a tonne, while maize sold at USD 23.3 a quintal. Prices of layer concentrate appreciated 25% and layer concentrate 35% to USD 26.04 and at USD 20.7 respectively. Meanwhile, broiler concentrate moved up by USD 1.83 and was quoted at USD 38 for a 50 kg bag.
|CJ announces marginal sales improvement|
[12 May 2014] Korean-based CJ CheilJedang has announced a 0.3% rise in its first-quarter sales results to USD 1.7 billion. However, its operating profit showed a 12.7% decrease to USD 97 million due to a slump in domestic consumption and a decline in the selling price of lysine globally. A company official said, “Amid the structurally unfavourable factors like the fall of lysine selling price, we minimised the deterioration of profitability through a business strategy innovation in every sector including food.” By business sector, CJ’s food business showed a 0.4% increase in sales at USD 941 million. Also, its operating profit in the segment increased to USD 307 million, 25.8% rise from the same period of last year thanks to the innovation efforts in reducing unnecessary marketing costs.
|Technology can ensure better productivity|
[12 May 2014] Thai government units and the private sector have been urged to support the food industry, by formulating development strategies, such as establishing a fund to assist operators in the food industry and to back various food production initiatives. Speaking at a seminar on 'Thailand as the central AEC food hub' Sarasin Weerapol, Deputy Managing Director of the CP Group said that with a growing global population and agricultural land may be dedicated to other uses, food shortages are very likely to happen. However the issue can be addressed with the use of technology to increase the productivity and food supply stability. He said Thailand should spearhead the development of such technology in order to stay ahead.
|Gujarat Cooperative raises Amul milk prices|
[12 May 2014] India’s Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the Amul brand of milk, has raised the price of all Amul milk variants by USD 0.03/litre with effect from May 4, in Ahmedabad and Saurashtra. Managing Director R S Sodhi said other regions would follow soon. "The cost of production as well as inflation are main reasons for the hike, plus production drops in the summer months,” said Mr Sodhi. He added that GCMMF had been paying 10-12% higher price for procurement from farmers in the last 2-3 months, and prices are up by around 18% over last year. GCMMF procures nearly 12 million litres of milk per day and sells around 4.5 million litres/day in Gujarat.
|Frozen poultry only in South China|
[9 May 2014] Yuexiu and Liwan, two major districts in Guangzhou, China and the mega university town in Panyu district have been selected as pilot areas to retail only frozen poultry at local markets and bazaars starting May 5. The move aims to prevent people from being infected with bird flu, according to the Guangzhou Administration of Food Safety. Poultry in the three districts will be slaughtered at appointed slaughterhouses and frozen before going to markets. The centralized slaughter of poultry will be implemented over the entire city in October. He Jianfeng, chief expert at Guangdong's Center for Disease Control and Prevention, said the this will reduce the number of people who have contact with live poultry and will help lower the risk of being infected with bird flu.
|Thai shrimp exports fall below target |
[9 May 2014] Thailand’s frozen shrimp exports this year is likely to fall below target as the Early Mortality Syndrome (EMS) remains a threat. Poj Aramwattananont President of the Thai Frozen Food Association said exports in the first two months dropped 55% from last year on the lack of shrimp supply as many farmers are reluctant to invest in farming on EMS concerns as the disease cannot be completely eradicated. Dr Poj said Thai food exporters are importing shrimp from India to compensate for the shortage and import volume is likely to hit 10,000 tonnes. Thailand is forecast to produce only 250,000 tonnes of shrimp this year, lower than earlier target of 300,000-350,000 tonnes.
|Disease impacts Tyson's sales|
[9 May 2014] Tyson said its sales fell 10% in the most recent quarter, after an outbreak of avian influenza killed 39 people in China and cut chicken sales. The company also warned that it was increasing its estimates of how bad the impact of porcine epidemic diarrhoea virus (PEDv) will be on pork production during the remainder of the year. Investors took the two pieces of disease-related news badly and Tyson shares fell 9.9%, the worst drop for the company's stock in five years.
|CGE reports losses on low feed demand|
[9 May 2014] Sri Lanka’s Ceylon Grain Elevators group (CGE), reported that it lost around USD 60,000 in Q1 of 2014 on low feed demand although demand for DOC is recovering. At the core company level, it lost around USD 398,000. However, CGE's subsidiary Three Acre Farms that sells DOC said its profit rose 210% to USD 513,000, with a recovery in demand for DOC, helping reduce group losses. CEO Cheng Chih Kwong said average selling price of chicken fell amid a glut in the market and feed sales also dropped due to intense competition.
|Indonesia, Australia team up to prevent FMD in Bali |
[9 May 2014] The Australia-Indonesia Partnership for Emerging Infectious Diseases (AIP-EID), have initiated simulations to prevent foot and mouth disease (FMD) in pigs and cattle, in Bali and Nusa Tenggara. Indonesia’s Agriculture Ministry’s Animal Protection Head, Tjahyani Widiastuti said the program is crucial because there is a chance that FMD could reappear in the country, since other countries in the region are not yet free of the disease. Indonesia has been free of FMD since 1986. “Preparedness among animal husbandry stakeholders is needed, particularly in livestock-producing areas like Bali, Nusa Tenggara, Kalimantan, Sumatra and Sulawesi,” said Ms Tjahyani.
|Global compound feed production to grow at 1.5%|
[9 May 2014] Mordor Intelligence research and analysis has revealed that in 2013 the global compound feed production was around 950 million tonnes and the market was worth around USD 480 billion. Cargill and ForFarmers are the most active in this space, while ADM (US), Nutreco NV (The Netherlands) and Charoen Pokphand (Thailand) are some of the biggest producers. The market (particularly Asia Pacific and South America) is estimated to grow at a compounded annual growth rate of 1.5% between 2014 and 2020. Increasing industrial livestock production and technological innovations in the meat processing industry are creating demand for high quality meat.
|Unifeeeds inaugurates new feedmill|
[8 May 2014] Universal Feed Mill Corporation (Unifeeds) in the Philippines, has inaugurated its second 20 tonne/hour feed plant to meet growing demand for its feed products. The modern, state-of-the-art mill, supplied and equipped by Muyang, has four 1500-tonne silos and a 7000-8000 tonne raw material warehouse and a 2500 tonne finished good warehouse. “The main advantage of the plant is that the warehouse space for raw materials and finished goods are well positioned relative to the production area,” said plant manager Ramonito Seno. He added that almost all process are highly automated, making production more efficient. Unifeeds President Dr Abel de Manuel said that with the new plant, located in Tayud, Cebu Province, their dealers and end users are assured of a steady supply of Unifeeds products.
|Amrit's new hatchery sets high hygiene standards|
[8 May 2014] Amrit Group’s new 1.15 million egg/week hatchery complex in Panagargh, India, will set new standards in India for excellence and hygiene in line with the group’s production strategy. “Amrit Group has demonstrated strong growth over two decades for its focus on quality and its dedication to expansion in four key areas, namely feeds, poultry, dairy and frozen food. This strategy is centred on the delivery of products with high nutritional value,” said Managing Director Harish Bagla. “Our new hatchery supports these aims and we look forward to seeing it fully operational so that we can quickly realise the benefits of SmartPro incubation throughout the integration.” Amrit Hacheries Pvt Ltd is due for completion later this year. The facility includes feedmills, broiler, breeder and layer poultry farms which are being built concurrently.
|Chinese man succumbs to H5N6 infection|
[8 May 2014] A man from Sichuan Province has died of H5N6 bird flu, the first known human infection from this strain, according to the South China Morning Post. The man from Nanbu County, part of the city of Nanchong in north eastern Sichuan, died in late April after being diagnosed with acute pneumonia. More than 1,000 birds were culled on the infected farm and nearby areas are being monitored, but nobody else who had contact with the infected man has shown symptoms, the report said. The Chinese poultry industry has been hit hard in the last year by multiple outbreaks of H7N9 highly pathogenic avian influenza (HPAI), which infected at least 419 people and killed 76 of them.
|China’s hotpot turns lamb offcuts into premium slices |
[8 May 2014] China’s hotpot has lifted lamb flaps, the gristly ends of the ribs which are trimmed away when the butcher cuts racks and rib chops, into premium cuts. Considered cheap cuts about eight years ago, the parts have soared 84% to USD 5.84/kg, overtaking shoulder at USD 5.64/kg and narrowing the gap with lamb leg at USD 8.12/kg, said the New Zealand Herald. In China the meat is processed into a lamb roll and sliced thinly for hotpot. New Zealand is China’s largest supplier of imported lamb. Australia’s Meat and Livestock, meanwhile, reported a 15% increase year-on-year in April. Its shipments to China, accounting for 17% of total lamb exports, the largest single export destination, increased 32% year-on-year to 3098 tonnes swt.
|Pakistan has potential to capture halal meat market|
[8 May 2014] Vice Chancellor of Pakistan's University of Veterinary and Animal Sciences (UVAS), Prof Talat Naseer Pasha said halal meat exports have grown in the last three years by 35% and is expected to reach 45% this year, with the potential to touch 55% if proper legislation on halal meat exports is defined. He explained that in 2013 Pakistan exported red meat worth USD 300 million, while globally halal meat export trade is in the region of USD 600 billion. “If our cold chain infrastructure is developed, it can boost meat exports besides decreasing freight charges,” he said.
|Rajashtan registers 28% growth in milk production|
[8 May 2014] India’s Rajasthan state has registered 28% growth in milk production in the country, becoming the second highest after Andhra Pradesh which registered a growth rate of 41%. Rajasthan is also the second highest producer of milk after Uttar Pradesh. At present, Saras, a product of Rajasthan Co-operative Dairy Federation Limited, has the largest market share of packaged milk in the state, with 1.4 million litre of milk being sold per day. It is the only prominent brand which sells processed milk and its products. “Given the quantity of milk production and size of the state, "we should have many brands of milk. We process only 10% of the total milk produced,” said A K Gahlot, Vice-Chancellor, Rajasthan University of Veterinary and Animal Sciences.
|Sujaya commissions first processing plant|
[7 May 2014] Indonesia's Sujaya Group has commenced operations at its first full-automated poultry processing plant in Singkawang, West Kalimantan. QC Supervisor Gunawan told Asian Agribiz that the plant has an installed capacity of 3000 birds/hour and is equipped with cold storage, one chiller and three air blast freezers. “The plant at the moment is only producing chilled and frozen whole carcasses and portioned cuts. However, in the near future it will also produce boneless and fillet products.” These are sold to hotels, restaurants and QSR chains in Singkawang and Pontianak, and are also sold in Sujaya’s two meat shops in Pontianak. “Next year, we plan to open meat shops and set up a further processing plant in Singkawang. We are also planning for a new processing plant in West Java,” Mr Gunawan revealed.
|Vietnam to expand corn plantation|
[7 May 2014] Vietnam has decided to transform some of the rice fields in the southern Mekong delta to corn fields. According to the government's plan, the country will increase corn plantation in the region by 53,000 ha by 2020. However, experts say Vietnam will continue to fall short of its corn demand for feed production. Estimates say Vietnam's feed demand this year would be as high as 22 million tonnes, including 5 tonnes for aqua feed. "In 17 million tonnes of feed for livestock, 50% would be corn," Tran Truong Tan Tai of Dekalb Vietnam said. With the current corn production capacity, Vietnam will need to import about 3.5 million tonnes of corn this year.
|PEDv to tighten global pork supply|
[7 May 2014] The outbreak of porcine epidemic diarrhoea virus (PEDv) in the US, Mexico, Japan and South Korea will lead to a likely decline in global pork production in 2014 (against an earlier expected 1.3% increase). According to the Rabobank Pork Quarterly Q2 report, exacerbating tight global supply is Russia's ban on EU pork imports after recent African swine fever outbreaks. However, oversupply in China is expected to continue, driven by high sow liquidation. Analyst, Albert Vernooij said that in the US, where the PEDv outbreak has been most severe, Rabobank estimates that pork production could decline to mid-single digits (6-7%) in 2014 due to hog losses from the virus.
|Thai egg prices expected to rise further|
[7 May 2014] Thailand’s Department of Internal Trade that monitors consumer and food prices has made no attempt to tackle the current egg price hike yet as the increase as the price is not uncommonly high and still close to production cost. Farm-gate prices of mixed grade egg are hovering around THB 3.10-3.20 per egg (USD 0.1) while layer farmer’s cost is around THB3/egg (USD 0.09). Annop Akaranithiyanont, President of the Layer Farmers Association, said that farmers expect the ex-farm mixed grade egg price to rise to THB3.8/egg (USD 0.12). Farmers will then gain a 10% profit. Hot weather in Thailand has lowered egg supply while the earthquake in the north of Thailand on Monday is likely to impact production and prices could move up further, Mr Annop said.
|China lifts ban on poultry from Virginia|
[7 May 2014] Virginia State in the US is set for a poultry export bonus, with the lifting of a seven-year ban on imports by China. The ban was imposed in 2007 following an outbreak of low-pathogenic avian influenza on a turkey farm. Governor Terry McAuliffe announced China’s decision to lift the ban, saying that it could boost the state’s poultry exports by USD 20 million or more a year as China is an important outlet for parts like paws and wing-tips. China bought more than USD 416 million in US poultry last year, most of it supplied by Georgia, Mississippi and North Carolina.
|CCK acquires meat processing company |
[7 May 2014] Malaysia's CCK Consolidated Holdings Bhd has acquired the remaining 50% shares in associate company CS Choice Food Industries Sdn Bhd for USD 415,000. CS Choice is involved in the manufacturing, processing, packaging and distribution of meat and other food products, CCK said. The integrated poultry, prawn and seafood producer is Sarawak’s largest poultry integrator. For the six months ended December 31 2013, CCK recorded revenue of USD 70.9 million compared to USD 128.4 million for the 12 months ended June 30 2013. Profit before tax for the six months ended December 31 2013 was USD 3.81 million compared to USD 5.10 million for the 12 months ended June 30 2013.
|Indonesia plans for exports to Japan|
[6 May 2014] Indonesia may export processed chicken products like yakitori, karaage, nuggets, sausages and meatballs to Japan this year, said Chairman of the Indonesian Poultry Companies Association (GAPPI) Anton J Supit. Charoen Pokphand Indonesia, Japfa Comfeed Indonesia and Sierad Produce are ready to tap into this opportunity. According to Mr Anton, the market value of processed chicken products to Japan could reach USD 1 billion each year. President of the Federation of Indonesian Poultry Society, Don Utoyo told Asian Agribiz: “Before we start exporting, Japanese authorities will do field inspections and some testing. Prospective exporters must fulfil all requirements prior to approval.”
|Thai egg prices rise on declining supply |
[6 May 2014] Egg prices in Thailand are rising as the hot weather continues to reduce production. Price of mixed size eggs has risen from USD 0.08 each in March to USD 0.10, while large eggs are currently USD 0.13. “The hot weather has also affected the size of eggs,” Tanadet Sangwattanakul, owner and manager at Udomchai Farm told Asian Agribiz. Another layer farmer also said that the supply of large-size eggs has dropped and this has raised prices. However the current price matches farmers’ production cost. Egg prices are expected to escalate further when the schools reopen in mid-May as consumption is expected to increase by 10-20% then.
|Gupbi to form pig farmers cooperative|
[6 May 2014] Indonesia’s Bali Pig Farmers Association (Gupbi) will embark on a pilot project of a pig farmers’ cooperative this month. Chairman of Gupbi I Ketut Hari Suyasa told Asian Agribiz that the cooperative would comprise of groups of farmers from the Bandung regency In Bali. “It will provide feeds, loans and financial management, and help market the finishers. Members will raise their pigs as a group in a special area rather than in their backyards so that the management of farming, breeding and waste will be more organised,” he explained. This year the association plans to form at least three cooperatives in the regency. “We want farmers to get good prices and raise their skills. Also, we want to have better documentation of the sow population to prevent oversupply.”
|State governments urged to stop taxes on poultry products|
[6 May 2014] State governments in India have been urged to withdraw the hygiene tax on packaged poultry products. Vijay Sardana, Co-Chairman of Agribusiness Committee of India’s PHD Chamber of Commerce and Industry said this would enable the country to realise the real potential of the food processing industry including that of poultry products. Mr Sardana said that nowhere in the world is a hygiene tax imposed on packaged food. The tax ranges from 10-25%. Mr Sardana argued that it only discourages entrepreneurs from raising food safety standards and results in a disconnect with consumers in the entire value chain.
|RNI delays plans to acquire Australian cattle ranch|
[6 May 2014] State-owned agribusiness company PT Rajawali Nusantara Indonesia (RNI) has delayed plans to acquire a cattle ranch in Australia due to the rise in value of the US dollar. “At first, we were looking at an IDR 9,600 [USD 0.83] exchange rate against the dollar, but now it has risen to IDR 12,000. The plans have become unfeasible,” RNI Director Ismed Hasan Putro said. Mr Ismed added that the lack of an import permit from the Agriculture Ministry was also why the company chose to delay the purchase. RNI had previously planned to acquire 51% of the Australian cattle industry. The company had prepared up to USD 30 million to acquire ranches that had the capacity to hold 50,000 to 500,000 cattle.
|WHO report does not focus on antibiotic use in feed|
[6 May 2014] The World Health Organisation’s (WHO) first global report on antimicrobial resistance, including antibiotic resistance, called it a serious health threat but does not focus on antibiotics use in feed. "A serious threat is no longer a prediction for the future, it is happening right now. Without urgent, coordinated action by stakeholders, the world is headed for a post-antibiotic era, in which common infections and minor injuries which have been treatable for decades can once again kill,” said WHO Assistant Director-General for Health Security Dr Keiji Fukuda. “Unless we act to improve efforts to prevent infections and also change how we produce, prescribe and use antibiotics, the world will lose more public health goods and the implications will be devastating.”
|Vietnam builds on swine genetics|
[5 May 2014] Key players in Vietnam's swine industry have revealed that demand for good swine genetics is growing in Vietnam and the market will experience fundamental changes in the next three years. Paul Anderson of JSR told Asian Agribiz that demand for JSR's genetics has grown in this market. “Our business is growing in Vietnam. We restarted four years ago, and it’s been growing from semen to live pigs. Nguyen Dang Vang, Chairman of Vietnam Animal Husbandry Association, told Asian Agribiz that local farmers have started to change their farming methods and are investing in better genetics.
|Malindo to raise capital for expansion|
[5 May 2014] PT Malindo Feedmill, one of the largest poultry integrators in Indonesia, plans to sell 95 million new shares, at USD 0.31/share via a private placement, CEO Lau Chia Nguang said in a statement to the stock exchange. Two strategic investors, Ginger Company Ltd and Peak Team Company Ltd, are willing to buy the shares. Malindo expects to raise USD 29 million from the placement that will be used for expansion and working capital, including for its plans to build two new feedmills in Makassar, South Sulawesi. The plants are expected to boost Malindo’s output by up to 50% from the current 900,000 tonnes/year.
|Value of Indon poultry sector to hit USD14.3b|
[5 May 2014] The value of the poultry sector in Indonesia is expected to reach USD 14.3 billion this year, an increase of 10% from the previous year, said President of the Federation of Indonesian Poultry Society, Don P Utoyo. “Demand for animal protein is increasing. Chicken meat and egg are the most affordable animal protein sources,” said Mr Don. According to him, last year demand for chicken meat reached 2.2 million tonnes or four times higher than demand for beef. “Last year per capita consumption of chicken and eggs reached 9kg and 6kg, respectively.” He added that production and consumption of processed products like nuggets and sausages is increasing with the change in lifestyle. “This will attract existing players to increase capacity and new players to invest.”
|Danish Crown slaughterhouse cleared of swine flu|
[5 May 2014] Danish food product authorities have called off a swine fever alarm in Danish Crown’s slaughterhouse in Herning after investigations revealed that a pig found dead in its stall did not have swine flu. Last Wednesday Danish Crown temporarily shut down its slaughterhouse. Some 700 pigs in the area were quarantined and its 555 slaughterhouse employees were laid off after a veterinarian suspected swine fever. The employees were rehired after getting the green light from the authorities.
|Taco Bell chief to head Yum Brands|
[5 May 2014] Yum Brands Inc announced that Chairman and CEO David C Novak, 61, will become Executive Chairman on January 1 2015, transitioning from his current role. Greg Creed, 56, current CEO of Taco Bell, will be his successor. Mr Novak has served as CEO since 1999, growing the company to more than 40,000 restaurants in 125 countries. According to a news release, once Mr Novak steps into the executive chairman role, he will form the Office of the Chairman. The office will also include Sam Su, 62, who will continue to serve as Yum! Brands’ Vice Chairman and Chairman/CEO of the China Division, and Mr Creed.
|Singaporean broiler company Kee Song to sell eggs in July|
[2 May 2014] Singaporean integrator Kee Song Group, which currently produces 6 million birds per year, will introduce its KeeSong eggs to the market in July this year. The company, known for its premium range of chicken in the market, said it plans to introduce premium quality table eggs which are low in cholesterol. “We are still at the research and development stage with another integrator. This company will produce eggs for us using our specially formulated feed. By 2016 we hope to have our own layer farm for the production of table eggs,” Managing Director Ong Kian San told Asian Agribiz in Yong Peng, Johor, where its eight broiler farms are located.
|CPF’s Five Star chicken brand eyes 10% growth in 2014|
[2 May 2014] Charoen Pokphand Foods targets its Five Star brand business this year to achieve a sale value of USD 185.4 million, a growth of 10% from the year before, according to Executive Vice President Sathit Sangkanarubordee. Of the total sales, domestic market contributes around USD 157.6 million and overseas operations make up the rest. CPF expects to grow the number of its Five Star kiosks in Thailand to 5800 units this year, from 5100 presently, and increase the number of kiosks abroad in six countries namely India, Vietnam, Myanmar, Bangladesh, Cambodia and Laos to a total of 1000 outlets from 700 currently. The Five Star brand involves six product categories namely grilled chicken, fried chicken, chicken rice, shrimp wonton noodle, ready meal and roller grilled sausage.
|Denmark to export cooked meat products to China|
[2 May 2014] Denmark will soon be the first country in the world to export sausages and other cooked meat products to China. The announcement came after the country signed five agreements on food and agriculture with Denmark during the Queen of Denmark’s visit. The agreements focused on importing Danish foods like cooked pork, poultry and dairy products. Three producers were approved to deliver heat-treated meat products to China. Pork exports to China are the Danish food sector’s second biggest export, exceeded only by exports to other EU Countries. Meanwhile Danish company Arla Foods has invested USD 1.86 million into an innovation lab in Beijing. The company wants to create new cheese products “exclusively developed and produced for Chinese consumers”, said Arla. The facility, established at the existing China-Denmark Milk Technology Cooperation Centre developed by Arla and its Chinese strategic business partner Mengniu was opened last week.
|Thailand foresees food exports to grow 4.8% in 2014 |
[2 May 2014] Thailand expects to export 4.8% more food this year compared to last year, thanks to recoveries in global economy and economies of major markets namely the US, the European Union and Japan, said Nantawan Sakuntanaga, Director-General of the Department of International Trade Promotion, Ministry of Commerce said. Thailand exported food products worth USD 25 billion in 2013, Mrs Nantawan said. She expects the coming Thaifex food exhibition to also help boost food exports from Thailand.
|Patna court wants assurance of safe meat for consumption|
[2 May 2014] A division bench of the Patna high court, in the capital of the Indian state of Bihar, has ordered the state health department to ensure that being sold in the state is fit for human consumption. The state health department was asked if it had a mechanism to certify that sick animals were not slaughtered for their meat. If not, what steps the department will take to ensure that only the best quality of meat is sold. The Patna Municipal Corporation commissioner and urban development and housing department secretary, said rules to regulate the shops selling mutton and chicken would be implemented soon. The court also ordered the state government to ensure such shops did not open near educational institutions so that children could be kept away from the sight of hanging carcass of animals. The court also ordered that keeping the carcass behind a curtain be made mandatory.
|China to emerge as the world’s number one corn importer by 2021|
[2 May 2014] China is expected to emerge as the world’s largest corn import market by 2021, overtaking Japan, South Korea and Mexico, reported Bloomberg. The country lost its self-sufficiency in corn five years ago. This year, the country is expected to import about 2% of its consumption, with that proportion rising to 7.2% by 2024, according to the US Department of Agriculture. China’s emergence as a top corn buyer is good news for producers in the US, Brazil and Ukraine, which face a demand squeeze amid aging populations elsewhere in Northeast Asia. China will catch up to South Korea around 2018 and overtake Japan, where the population peaked about six years ago, by 2021.
|Choline chloride market to reach 596.9kt by 2019 |
[2 May 2014] The global market for choline chloride in terms of volume is expected to reach 596.9 kilo tonnes by 2019, growing at a CAGR of 5.6% from 2014 to 2019. Asia Pacific dominated the choline chloride market volume in 2013. The region is expected to emerge the major market by 2019, growing at a CAGR of 6.4% from 2014 to 2019. Choline chloride within poultry feed market is expected to be the fastest growing market, with a CAGR of 5.7% from 2014 to 2019, owing to the rising consumption of poultry meat and shift in preferences for meat globally.
|Kee Song to launch third premium chicken product in July|
[01 May 2014] Singaporean integrator Kee Song Group will introduce its third range of premium chicken called CaroGold in July 2014. In 2007 the company introduced the Sakura Chicken, now called Lacto Chicken, and in 2009 it launched Cordyceps Chicken. “From Day 1 the birds are bred without antibiotics and growth hormones. They are fed with lactobacillus to enhance their immune system the natural way,” Managing Director Ong Kian San told Asian Agribiz. Kee Song’s eight farms are located in Johor, Malaysia. It produces 6 million birds per year. About 28% of these are earmarked for the premium market. Analytical results conducted by independent laboratories show that CaroGold birds contain just 11mg of cholesterol compared to 79.99 mg/100g of meat. It records about half the total fat content at 6.92g/100g of meat.
|Vietnam seafood exports up 31% year-on-year|
[01 May 2014] Vietnam’s Ministry of Agriculture and Rural Development said the country exported USD 2.2 billion of seafood in the first four months this year, up 31.2% compared to the same period last year. The US continues to be Vietnam’s biggest seafood importer, accounting for nearly 25% of the export. In the period, export to Vietnam’s other major market also increased, including Japan, Korea and China. However, Vietnam shrimp is faced with strict quality checks in Japan as some of the shrimp contains high Oxytetracycline, and broad-spectrum antibiotics. Truong Dinh Hoe, General Secretary of Vietnam Association of Seafood Exporters and Producers told Asian Agribiz that Japan is considering turning to India and Indonesia for its supply due to Vietnam’s antibiotic residual problem.
|AGP market expected to reach USD8787m by 2018|
[01 May 2014] According to a report published by Markets and Markets, the market for antibiotic growth promoters (AGPs) and performance enhancers was valued at USD 6871 million in 2013 and is expected to reach USD 8787 million by 2018. The market is categorised into eight broad segments, namely antibiotics, hormones, a-agonists, feed enzymes, organic acids, probiotics and prebiotics, phytogenics, and others. Based on animal industry, the market comprises porcine, poultry, livestock, equine, and aquaculture. In 2013 Asia commanded the largest share of the global growth promoters and performance enhancers market. This can be attributed to little or no regulations on the use of AGPs in most Asian countries.
|CPF goes on green value chain concept|
[01 May 2014] Charoen Pokphand Foods (CPF) will push its green value chain concept this year by encouraging its suppliers to develop packaging products that are friendly to the environment. Global Standard System Centre Assistant Vice President Kularb Kimsri revealed the latest move by CPF to use 25% thinner plastic packs for its chicken teriyaki products which means a reduction of CO2 emission. This contributes to CPF’s decision last year to change from plastic egg trays to 100% recycle paper trays, Ms Kularb said. CPF applies product sustainability strategy and has carbon footprint labels on its 144 products. It recently included water footprint labelling on its three products namely shrimp wonton, fresh chicken and hen egg.
|Betagro celebrates 110 outlet of wholesale Betagro Shop|
[01 May 2014] Betagro Group celebrates opening its 110 Betagro Shop. The latest branch of Betagro’s wholesale outlet for fresh and cooked meat products as well as other food products is located in Lopburi, the same province where Betagro’s food complex is located. Betagro plans to expand its Betgaro Shop throughout all parts of the country as it is an effective retail channel for the group use to distribute its products to its consumers.
|India’s milk production expected to rise to 177mt by 2019|
[01 May 2014] Milk production across India has grown at a rate of about 19% during the five-year period of 2006-2010 and crossed 121 million tonnes as of 2010-2011. However, despite being the largest milk producer in the world, per capita milk availability in India at 252 grams falls below the global average of 279 grams/person/day, according to the Associated Chambers of Commerce and Industry of India (Assocham). “Growing at a CAGR of over 4%, milk production in India is expected to rise to about 177 million tonnes by 2019-2020, and that would help in meeting the projected demand of 150 million tonnes by 2016-2017 that has been envisaged in the National Dairy Plan Phase-1,” said Assocham Secretary General DS Rawat.
|WH Group scraps effort to list|
[30 April 2014] WH Group, the world’s largest pork producer, has abandoned its once highly touted Hong Kong IPO because of weak demand for the shares, according to several media reports. The group, which bought US pork giant Smithfield Foods last year, had originally hoped to raise USD 6 billion, but cut the offering by more than two-thirds last week due to investor resistance. The shrunken listing was then delayed from April 30 to May 8 and finally cancelled as investors continued to disdain the deal. The Hong Kong market has fallen nearly 10% in the last month, which hurt the deal’s prospects, but investors also considered the shares overvalued and questioned whether the hookup with Smithfield offered any worthwhile synergies. WH Group took on more than USD 7 billion in debt to buy Smithfield, and had been planning to use the IPO funds to pay down the debt.
|Cargill invests USD10 million to upgrade Thai poultry facility |
[30 April 2014] Cargill Thailand is investing USD10 million to upgrade its integrated poultry processing facility in Saraburi, which produces a range of cooked poultry products for exports to markets in Asia, Europe and North America. “This enhances Cargill’s ability to continue to provide our customers with the highest quality products and services,” said Cargill Thailand President Prasit Maekwatana. The planned upgrades involve investing food safety system, installing more efficient equipment and expanding the facility’s cold storage capabilities. It is expected to be complete by July 2014. Cargill also recently completed a USD110 million expansion of its Nakhon Ratchasima poultry processing facility. Both facilities have an annual production capacity of 80,000 tonnes.
|Philippine duck exporter seeks new markets|
[30 April 2014] Philippine Peking duck exporter Maharlika Agro-Marine Ventures Corp is eyeing new markets for its product, specifically the US, Europe and the Middle East, a report by BusinessWorld said. The company is already exporting 20 tonnes of Peking duck to Japan monthly. Maharlika Chairman Vicente Lao said that the company has already expanded its capacities and it can produce about 50 tonnes each month should such volume be required.
|Pakistan’s FTA damaging poultry industry|
[30 April 2014] Free Trade Agreements signed with Malaysia and China are damaging Pakistan’s poultry industry as imports of processed chicken products under the FTA with Malaysia are subject to zero per cent import duty and from China at 16% import duty. Local processors, meanwhile, are unable to export their products to these countries as they are uncompetitive, reported The Nation. Pakistan Poultry Association North Zone Chairman Raza Mehmood Khursand said Pakistan’s normal import duty on import of chicken is only 25% against India, which has slapped 100% import duty on chicken to protect its local industry. Pakistan also requires processed chicken meat but the country is processing just 3-4% poultry while 90% of the poultry is sold as raw.
|Hong Kong bans poultry import from California farms|
[30 April 2014] The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department of Hong Kong banned the import of poultry and poultry products including eggs from Stanislaus County, California, with immediate effect in the view of a notification from the World Organisation for Animal Health about an outbreak of low-pathogenic H5 avian influenza on a quail farm in county, according to CFS press release. About 150,000 tonnes of frozen poultry meat, eight tonnes of chilled poultry meat and 600 million poultry eggs were imported into Hong Kong from the US last year. Prior to this, CFS has also banned import of poultry products from Kumamoto Prefecture, Japan, on the outbreak of the bird flu there.
|New BSE case may delay China re-entry for Brazilian beef|
[30 April 2014] Brazil’s hopes of re-gaining access to China’s beef market may be delayed following reports that Brazil's Ministry of Agriculture is investigating a possible new case of BSE or mad cow disease. China banned imports of Brazilian beef in 2013 following a previous report, but had been expected to lift the ban by the middle of 2014. The new case involves a cow more than 10 years old suffering from symptoms of a nerve disease, but the World Organisation for Animal Health is still examining the case and the exact cause has not yet been determined.
|Indian dairy industry shifting to organised segment|
[30 April 2014] The Indian dairy industry is still predominantly unorganised. Only 18-20% of the total milk produced goes through the organised segment, said Motilal Oswal Investment Advisors CEO Ashutosh Maheshwari. “However there is a clear shift towards the organised segment, which is increasing from 13% in 2005 to 20% currently. This is driven by a growing demand for packaged milk and value-added products, and is now attracting multinational players to India. Even on the supply side, farmers prefer organised channels due to higher price realisation.” He added that increasing health and safety concerns have propelled the penetration and consumption of packaged milk in the market. The consumption of packaged liquid milk has increased from 21% to 28% of the total liquid milk in the past five years.
|Poultry business in Karnataka faces tough time|
[29 April 2014] Poultry business in India’s Karnata state is undergoing a tough period with slow business and margins severely hit according to the players in the local industry. TS Chitiyappa, owner of Adi Shakti Poultry Farm, said: “The business has become very slow. The fluctuations in the market are proving to be even more damaging to the cause.” He said there has been a 10-15% drop in sales in the last six months attributed to inflation. “Cost of production has gone up drastically. Feed has become very expensive. There are not enough cold storages and they have a high cost attached to them. People are not ready to buy products be it egg or meat if the owner tries to pass the cost to customers. So we have to compromise on the price and sell items at very low costs.”
|China’s beef imports will keep growing|
[29 April 2014] China’s beef imports will grow between 15% and 20% a year for the next five years, with import volumes doubling by 2018, according to a new report by Rabobank. China’s production is increasing slowly, but the industry lags other major beef-producing countries in genetics, breeding, productivity and farm management, and as a result, domestic beef production can’t keep up with growing demand. The government is more concerned about maintaining domestic production in other agricultural categories, so it is unlikely to give full support to boosting beef and instead will permit increased imports.
|Modern Internasional to build 2500 7-Eleven outlets|
[29 April 2014] Modern Internasional, the operator of the 7-Eleven convenience store chain in Indonesia, plans to invest USD 645 million to grow the business. President Director Henri Honoris said the company plans to build around 2,500 7-Eleven outlets in 10 years within Jakarta and the satellite cities of Bogor, Tangerang, Depok and Bekasi. It currently has 161 outlets and plans to add 200 this year and next. Mr Henri said that this year the company would be more bullish about tapping the rising middle-income class. “We plan to have 7-Eleven outlets in or near apartment buildings, office areas, train stations, hotels, resort areas and gas stations.”
|Yakult Indonesia inaugurates second milk processing plant |
[29 April 2014] Fermented milk drink producer PT Yakult Indonesia Persada is investing USD 40 million in its second plant at the Ngoro industrial park in Mojokerto, East Java. The new plant, which was inaugurated recently, was built to meet the growing demand for fermented milk drinks in the country over the last five years, said Managing Director Indra Tjahjono. “The growing demand shows that people are now more concerned about their health. Around 3.4 million Indonesians consume our products,” he said. The East Java plant produces up to 1.2 million bottles every day before its capacity is gradually increased to 3.6 million bottles/day.
Partnership to boost British organic meat exports to China
[29 April 2014] Britain’s Soil Association Certification’s (SAC) partnership with China’s certification organisation Organic Food Development Centre (OFDC) will help boost British organic meat exports to the country. OFDC Director Xingji Xiao said: “We think the partnership is good and very important for our collaboration and can help us promote our mutual organic programme.” SAC Senior Certification Officer Emma Yeats said the timing is right for such a partnership as there is positive growth in both the UK and Chinese organic markets. “Working with the OFDC will make the process of certification for our UK licensees wanting ro export to China both efficient and cost-effective,” she added. The Chinese organic market is predicted to be worth an estimated USD 7.8 billion by next year, said organic trade show organiser BioFach China.
|Malaysian company to develops traceability software system for China|
[29 April 2014] Malaysian solutions provider Smartag Solutions Bhd is allocating USD 2.56 million to develop a software system to help trace halal products in China. The track and trace provider is set to venture into China through a partnership with Ningxia Salimy Muslim Commodity Training Co in efforts to develop China’s international online halal trade and traceability platform. Smartag CEO Yow Lock Shen said the main objective of this partnership is to ensure that all food produce in Ningxia remains halal by the time it reaches the consumers. This is because food may not be halal due to weather conditions and other contaminations faced through its logistics process, he added. Smartag, through its traceability platform, will be able to provide consumers with information on food and other commodities to ensure that people will be able to determine the halal status of the product especially for the Muslim community.
|Meat sales boom in China|
[28 April 2014] Despite strong competition from other meat producing countries and an estimate one million tonnes of meat being smuggled across the Chinese border, red meat export to China totalled 257,000 tonnes in 2013, or 17% of Australia’s total exports, reported TheLand.com. Products like sheepmeat and beef sales boomed in China with mutton rising 254% to 58,000 tonnes. Sheepmeat exports rose 34% at 40,000 tonnes. This year volumes continued to rise with mutton sales up 25% for January and February, and lamb down slightly by 1%. Meat and Livestock Australia Manager Joy Tang said last year it tripled the total volume of beef exported to China, and is now the third largest export destination for beef from Australia, behind Japan and the US. “For Australian lamb and sheepmeat products China is the number one destination for exports.”
|Felcra eyes major stake in Aussie cattle station|
[28 April 2014] Malaysian Felcra Bhd is eyeing a major stake in a 189,700ha Yakka Munga cattle station in Kimberley District, Western Australia. The cattle station was estimated at USD 93 million excluding the land cost of USD 20 million. Felcra may take up 41% stake in Yakka Munga while another party is Grain Synergy Global Pty Ltd, which is involved in cattle rearing and maize plantation in Malaysia and Australia. Sources said that the cattle station owner Alchemy Agriculture Pte Ltd would likely retain a 19% stake. There are other parties from Japan, Grain Synergy Global, Malaysia-based Halal Industry Development Corp and two Indonesian government-linked companies – PD Dharmajaya and PT Agro Jabar. If it materialises, the deal is likely to be concluded by August.
|Buffalo meat plan to boost halal industry|
[28 April 2014] Pakistan’s export of halal meat last year grew roughly 34%. “Last year, Pakistan exported red meat worth USD 120 million,” said University of Veterinary and Animal Sciences Vice Chancellor of Prof Talat Naseer Pasha. He added that the figure is expected to grow as the global halal meat industry is growing substantially.” Prof Talat also added that work is under way for buffalo meat plan which will be able to produce high standard processing for halal meat. The plant is receiving financial assistance from the US Agency for International Development.
|Jambi to build fish feed plant|
[28 April 2014] The government of Jambi province in Indonesia plans to build a floating fish feed plant in Muarojambi district. Governor Hasan Basri Agus said the plant would help increase the production of freshwater fish in Jambi, especially pangasius. “This plant will provide good quality feed at affordable price for fish farmers in the province.” The plant that will cost the government around USD 320,000 will have a production capacity of 25 tonnes/day. It will source local supplies for the raw materials.
|Prebiotic demand expected to grow at 11.9%|
[28 April 2014] According to the report released by Transparency Market Research, the demand for prebiotic in animal feed is expected to grow at a CAGR of 11.9% in terms of revenue from 2013 to 2019. The market was valued at USD 213.9 million in 2012, and is expected to reach USD 461.3 million by 2019. In terms of volume the market is expected to grow at a CAGR of 9.4% from 2013 to 2019. In recent years, the global market for prebiotics witnessed a good growth due to multiple health benefits of prebiotics to animals, as well as rising meat consumption and the ban on antibiotics in animal feed. The poultry segment dominated the prebiotics market and occupied 32.3% of the total market volume in 2012, followed by the swine and cattle segments that occupied 26.2% and 29.3% shares, respectively. Asia Pacific is expected to occupy over 30% of the global market share in 2019.
|China mulls opening doors to French processed pork products |
[28 April 2014] China is opening up its market to enable French processed pigmeat products to be exported to the country. Until now only fresh and frozen pigmeat, and by-products such as pigs’ trotters and ears are allowed to be exported from France. China’s General Administration of Quality Supervision, Inspections and Quarantine confirmed that its Minister Zhi Shuping has signed two technical agreements with France which will allow processed products such as raw and cooked ham, or dry and cooked sausage. The France pigmeat association said exporters would try to suit products to Chinese consumers’ tastes regarding hams and sausages.
|Betagro to open new chicken processing plant |
[25 April 2014] Betagro will officially open its new chicken processing plant in Pattalung province, southern Thailand, on May 15. The plant worth USD 18.53 million, has an initial slaughtering capacity of 30,000 birds/day. The operation at this new facility will enable the company to respond to growing demand for safe chicken in the southern region of Thailand and in neighboring countries, the company said in its release. Betagro also has a pig slaughtering plant in Pattalung.
|KFC rebound suggests China chicken slump is ending |
[25 April 2014] First quarter sales at KFC outlets in China rose 11% from a year ago, the company reported, signalling that the long slump in chicken sales is coming to an end. Yum Brands, owner of KFC, reported global Q1 earnings of USD 399 million, up 18% from a year ago. The company’s China sales first slumped in late 2012, when two suppliers were caught using antibiotics. That was followed by a series of bird flu scares, a combination which led to a 15% drop in KFC’s overall 2013 China sales. Although sales have not yet returned to 2012 levels, with recovery in sight, KFC is planning to open another 700 stores this year in China.
|Egg, pig production cost in Thailand to escalate|
[25 April 2014] Production cost of hen egg in Thailand is forecast to continue to rise in the second quarter of this year to THB 2.99/egg or USD 0.092/egg due to higher feed raw materials costs, especially corn and soybean meal, Secretary-General of the Office of Agricultural Economics Anan Lila said. Farm-gate price of egg in the first quarter averaged at THB3/egg or USD0.093, lower than THB 3.17 or USD 0.098 in the earlier quarter, due to declining demand during the school holidays. Production cost of pig is also estimated to rise due to higher feed price and disease setbacks.
|US pork faces challenge in Asia|
[25 April 2014] Although live hog exports make up just a small portion of US pig exports to China, it is still an important segment said the US Department of Agriculture (USDA). China recently imposed tougher restrictions for live pig imports from the US due to concerns surrounding the PED virus. The USDA has been asked to test live hogs and certify they come from herds unaffected by the virus. While the USDA will comply with China’s requirement for testing and certification it will also work with China to eliminate the requirement.
|Japan lowers tariff on Aussie frozen beef|
[25 April 2014] Japan has agreed to lower the tariff on Australian frozen beef to 19.5% over the next 18 years, while cutting tariffs on chilled beef to 23.5% over the next 15 years. Australia is still the largest provider of beef to Japan, but the US has been narrowing the gap. Last year Australia had a 47% market share and the US captured 41%. According to the US Meat Export Federation last year Japan reclaimed its position as the No. 1 destination for US beef exports in terms of both volume, 234,615 metric tonnes, and value, USD 1.39 billion.
|Singaporeans develop taste for pricey wagyu|
[25 April 2014] Singapore's appetite for the premium wagyu beef has extended beyond expensive restaurants. Wagyu ribeye steaks can be found at FairPrice Finest outlets and Western food chain Astons' coffee shop stalls. Meat suppliers say the growing popularity of wagyu has driven up imports in recent years. Speciality meat store K&J Butchery imports about 300kg of wagyu a month, compared with 50kg to 60kg a month in 2011. Meat company Indoguna supplies more than three tonnes of wagyu to about 700 eateries on a monthly basis. At the FairPrice Finest supermarket wagyu ribeye and striploin are sold at USD 94 and USD 75 per kg respectively. Regular beef ribeye and striploin cost USD 48 and USD 39/kg.