TOP STORIES . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 December 2016
|Malaysia’s DBE Gurney renews supply contracts with KFC, QSR|
[05 December 2016] Poultry company DBE Gurney Resources Bhd’s unit DBE Poultry Sdn Bhd has renewed its contracts worth USD 11.20 million with KFC (Peninsular Malaysia) Sdn Bhd and QSR Stores Sdn Bhd for the supply of poultry products. In a filing with Bursa Malaysia the group said the renewals are effective from January 1, 2017 to December 31, 2017. The agreements are expected to generate a turnover of about USD 11.20 million for DBE Gurney, it added. “Our commitment to supply high-quality poultry products to the industry will continue to be an emphasis for the retailers,” Group Managing Director Datuk Alex Ding Seng Huat said.
|China Everbright’s fund invests in West Hope unit|
[05 December 2016] China Everbright Ltd, a Hong Kong-listed unit of the Chinese central government-owned financial conglomerate Everbright Group, said its Mezzanine Fund has made an equity investment in Sichuan Dekang Agriculture Technology Ltd. “The investment details are confidential at this stage,” Dekang General Manager Luo Lin told Asian Agribiz. Dekang was founded in 2006 by West Hope Group Chairman Chen Yuxin and President Wang Degen, and now is a livestock farming arm of the group. The company states that it’s the largest local livestock producer in southwest China, targeting to sell 250 million birds and 10 million pigs a year by 2020. “The fund will be actively involved in Dekang’s bolt-on acquisitions, financing activities, and implementation of modern corporate governance in order to drive its growth in the modern agriculture industry and help cultivate a world-class agriculture and food company,” China Everbright said.
|Indonesia issues alerts on potential AI cases during rainy season|
[05 December 2016] Following information from Indonesia’s Meteorology, Climatology and Geophysics Agency that rainy season has started and Indonesia’s Directorate General of Livestock and Animal Health has circulated an official letter to all animal husbandry and veterinary agencies in the country to actively monitor cases of avian influenza (AI). In the letter received by Asian Agribiz, the directorate asks all agencies to quickly respond with disease reports from farmers and assist farmers to improve biosecurity. On vaccination, for duck it is recommended to use AI subtype H5N1 clade 2.3.2 vaccine, while commercial layers to use AI subtype H5N1 vaccines with clades 2.1.3, 2.3.2 or the combination. The directorate also urged farmers to buy DOC from breeders who have the AI-free compartment certificate.
|Special VietGAP for tilapia farmers|
[05 December 2016] Funded by Vietnam’s National Agricultural Extension Center and Vietnam’s Ministry of Agriculture & Rural Development, VietGAP is a program designed and applied to tilapia farming in an effort to create a stable background for good quality source of tilapia aimed for exports. In the program, participating farmers from northern and central provinces are supported with breeding fish, feed and probiotics, and are trained with farming standards. Initial results reported by VietGAP farms in Quang Ninh and Nghe An provinces showed a high survival rate of 95%, good growth rate of 650g after six months of stocking and average production of 14 tonnes/ha/year. According to the Agricultural Extension Center of Bac Giang province, one of the pioneer provinces participating in the VietGAP program, 100% of participating farmers are certified with VietGAP and secured the entire output.
ARIEF FACHRUDIN reports from the National Livestock Business Seminar in Jakarta, Indonesia
organised by the Indonesian Veterinary Drugs Association.
[05 December 2016]
Bad year for broiler breeding companies
This is not a good year for broiler breeding companies as the Business Competition Watchdog Agency (KPPU) fined 11 companies over the alleged broiler cartel case. “On September 2015, we were asked by the General Director of Livestock & Animal Health to early cull 6 million broiler PS. When we had cut around 2 million broiler PS, KPPU said we initaited a cartel. This is not a cartel as the government asked us to do it,” said Krissantono, Chairman of the Indonesian Poultry Breeding Companies Association (GPPU). Due to the controversy, Mr Krissantono said investors from Japan, South Korea, France and the Netherlands postponed their plans to invest in the poultry breeding sector. Mr Krissantono urged the government to calculate broiler breeding stock (GGP and GP) needed accurately in the future. According to GPPU, this year the government stopped imports of GGP and limited imports of GP. As a result, PS supply in 2017 will be reduced.
Feed industry to grow 8% in 2017
During the first half of this year, Indonesia’s animal & aqua feed consumption reached 7.9 million tonnes and 849,000 tonnes, respectively, according to the Indonesian Feed Producers Association (GPMT). Hudian Pramudyasunu, GPMT Secretary General said consumption is targeted to reach 17.2 million tonnes and 1.6 million tonnes by the end of this year. Next year the association estimated the feed industry to grow at 8%. “The main challenge in this industry is raw materials especially corn. We expect the government to prepare a buffer stock for corn as local supplies are not completely predictable,” Mr Pramudyasunu said.
Indian carabeef leads to reduction of local beef cattle population
Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association (PPSKI) predicted that in 2017 Indonesians will be more familiar with imported buffalo meat or carabeef. “The price is cheaper than local beef prices. This will change consumers’ preference. More people will consume the meat from India. Meat processors will also use it,” he said. “The impact of this to local beef cattle farmers is on their motivation. They may reduce their cattle population or stop their farm operations.” Mr Boediaya said if the Constitutional Court refuses their proposal for country-based importation, the local beef cattle will decline.
No special attention to dairy cattle farming
Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association (PPSKI) sees no special attention from the government to improve the dairy cattle farming industry in the country. “There has been no significant increase in dairy cattle population and milk production, in fact, it is decreasing. In 2012 the West Java Milk Cooperatives Association noted the number of dairy farmers was 26,153 people with a total cattle population of 101,115 heads. However, in 2015 the figures decreased to 19,362 people and 63,432 heads,” he said. On the other hand, Mr Boediyana said that local and foreign investors see growing milk consumption in the country. “They may invest in integrated dairy business by setting up dairy cattle farms and milk processing plants.”
Animal health industry to grow less than 10%
The Indonesian Veterinary Drugs Association (Asohi) projected that the animal health industry in 2016 may only grow less than 10%. Irawati Fari, Asohi Chairman said the growth in the breeding sector will be minus due to early culling and the alleged cartel case, while the growth in the commercial broiler sector will be stagnant. But in the layer sector, the growth will be around 10%. In 2015, the market for animal health products was estimated at around USD 290 million – the products included biological and pharmaceutical products for poultry, ruminants and pigs, and premixes.
|Find out at AP2022 if your company is in the innovator's league|
[02 December 2016] Would your company be in the 'innovator' league? Find out from Paul Levins, Executive Vice President, Global Head of Partnerships at Xinova LLC, Seattle, who says the meat industry has had limited innovation and there are few true leaders. He will be speaking at the Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, in Bangkok, Thailand on January 16-17, 2017. Xinova helps food companies innovate - to define and solve problems and make better products. For the complete program and to register here.
|Russia considers meat exports to Singapore|
[02 December 2016] At a meeting of intergovernmental commission recently Russia and Singapore discussed supplies of pork, beef and poultry meat to Singapore, Russian News Agency Tass reported. Singapore’s Agri-Food and Veterinary Authority will inspect Russian facilities in February 2017, Russia’s First Deputy Prime Minister Igor Shuvalov said. “We have discussed possible export from Russia to Singapore of meat - pork, beef and poultry,” he said. “We have agreed on how the veterinary authorities would be working in coming months. In February we shall expect inspectors, who will be working with the Russian companies," he said.
|Berdikari to venture into poultry business|
[02 December 2016] As recommended by the government and the Business Competition Watchdog Agency (KPPU), Berdikari, a state-owned company focusing on the integrated beef cattle business, plans to venture into the poultry business in 2017 to ensure quality DOC supply and stabilise broiler prices. Suwhono, President Director said the company will set up an integrated poultry business from breeding, feed milling, commercial farming to processing. “We will partner with independent broiler farmers and assist them,” he said. For the initial phase, Berdikari plans to set up commercial broiler farms and then broiler breeder farms.
|H5N6 developments in Japan, South Korea|
[02 December 2016] Japan has reported a third suspected H5N6 outbreak, the second from Niigata prefecture. The new outbreak involves a farm housing 230,000 birds. A few days ago animal health officials in Japan announced two outbreaks, one in Niigata and the other in Aomori prefecture. Earlier this month H5N6 was confirmed in black swans and in environmental samples in Japan. South Korea has confirmed H5N6 in farms in at least three provinces. The avian flu committee said the virus was likely carried from China by migratory birds.
|Hasco Feed ready to supply meat during Tet holidays|
[02 December 2016] After being first introduced to the market in July this year, Vietnam’s Hasco Breeding Food JSC or known as Hasco Feed is ready for greater market participation. The company announced that it is preparing to supply 5000 tonnes of fresh, quality meats during the Tet holidays. In other developments, the company said it has launched a new pig farm in Bac Giang province with a capacity to produce 5000 finisher pigs. Next year the company aims to set up distribution channels to large-scale farms in the North Vietnam and promote its brand in Vietnam’s feed industry.
|Indonesia’s feed wheat imports expected to rise in 2017|
[01 December 2016] Indonesia’s imports of wheat for animal feed could jump by about 36% to 3 million tonnes in 2017 if the government pushes forward with efforts to restrict corn imports, according to Desianto Budi Utomo, Chairman of the Indonesian Feed Producers Association (APPI). Indonesia has emerged as the world’s second-largest wheat importer and its imports of the grain spiked in 2016 after the country imposed tighter rules on corn imports. In 2015, Indonesia imported only 1890 tonnes of wheat for animal feed, according to the Statistics Centre Agency, but this was expected to rise to 2.2-2.3 million tonnes in 2016. Indonesia imports feed wheat from Ukraine and Eastern European countries as well as Argentina.
|Clean pork supply program launched in Vietnam|
[01 December 2016] De Heus Vietnam LLC, Vinh Anh Food Technology JSC, Fresh Studio Innovations Asia Ltd, and Hanoi’s Livestock Development Centre have cooperated to create a program aimed at establishing a clean, safe and secure pork supply chain that complies with HACCP and TRACEPIG standards. “The program is designed to be the first clean, safe and traceable pork supply that serves as a reliable brand with high credibility and accepted by Vietnamese consumers,” said De Heus Asia General Director Gabor Fluit. He added that the goal is “to supply high quality pork to local consumers while securing sustainable profits for the farmers and setting up a model to improve the quality of Vietnam's food and feed industries.”
|Malaysia’s CAB increases PS capacity by 84%|
[01 December 2016] Through acquisitions late November Malaysian integrator CAB Cakaran Bhd has increased its breeding capacity by 84%, from 510,000 parent stock to 940,000 parent stock. It acquired, through 53.04%-owned subsidiary, Farm’s Best Food Industries, a total of 21 parcels of land together with six breeder farms. This amounted to USD 14.13 million. CAB Group currently has eight breeder farms and 129 broiler farms, mostly located in Penang and Kedah. The recent purchases are focused in the south of Peninsular Malaysia. CAB said these purchases are in line with its growth plan, where it “has been continuously on the look-out for opportunities to expand its business both in Malaysia and overseas”.
|CPF to export healthy soups to Japan|
[01 December 2016] Thailand’s Charoen Pokphand Foods (CPF) is investing USD 19.65 million for a new facility in Ayutthaya province's Wang Noi district, said Sukhawat Dansermsuk, Chief Operating Officer of Food Business at CPF. The new facility, expected to start production in the middle of 2017, will produce thick soup and ready to eat products for health-conscious consumers, the elderly and sick persons. The new facility will have a production capacity of 70,000 tonnes of soup a day. Japan is expected to be the first export market, Mr Sukhawat said, adding “the new business is projected to generate revenue of USD 33.69 million in 2017.” CPF’s soup will include chicken, pumpkin, riceberry, mixed-vegetable and tomato soups.
|Indonesia’s shrimp exports up 6.84%|
[01 December 2016] Indonesia’s shrimp exports from January to August 2016 increased 6.84% to 136,323 tonnes over the same period last year. In terms of value, exports increased 3.75% to USD 1.13 billion. According to Nilanto Prabowo, Director General of Fisheries Competitiveness Improvement of the Ministry of Fisheries & Marine Affairs, the increase was due to demand for shrimp in global markets. Most of Indonesia’s shrimp is exported to the US, Japan and China. To further increase the export, Mr Prabowo said the ministry will continue to revitalise idle shrimp ponds in the country. According to Budhi Wibowo, Chairman of the Indonesian Fishery Products Processing and Marketing Association (AP5I), the revitalisation program is needed. If the government successfully revitalises 5000ha of shrimp ponds, this could net an additional 120,000 tonnes of shrimp per year.
|Korea’s CJ CheilJedang to acquire 47.3% of Vietnamese food firm|
[01 December 2016] South Korean food company CJ CheilJedang is planning to buy a 47.3% in Cau Tre from its three existing shareholders. CJ CheilJedang said Vietnam is an important market in its global expansion path. In March, CJ Vietnam purchased 4.18% of the Vietnam Meat Industries, or Vissan, for USD 13.3 million during its IPO auction. However, it failed to acquire a further 14% stake which went to Vietnamese conglomerate Masan Group. CJ Vietnam Chairman Chang Bok Sang also said the company will consolidate its presence in Vietnam through a USD 500 million m&a activity, focusing on the food sector.
|Learn about the future role of meat in the QSR business in Asia at AP2022|
[30 November 2016] Arron Hoyle, Principal of Black Dragon Advisors Ltd from New Zealand says the quick service restaurant business has been kind to Asia’s meat industry over the last 10 years. At the Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, he will address the future role of meat in the QSR business in Asia. The conference will be staged in Bangkok, Thailand on January 16-17, 2017. For more details, the complete program and to register click here.
|Bioceleng to produce value added pork products|
[30 November 2016] Bioceleng Farm in Bali, Indonesia, has ventured into pig processing. Romeo Alfonso, owner told Asian Agribiz that he gets better profits from portioned cuts. On average he sells around 800-1000kg of Bioceleng Farm branded pork (both chilled and frozen) to boutique hotels and fine-dining restaurants in Ubud, as well as to a hotel in Jakarta. However, Mr Alfonso admitted that the main challenge of processing is carcass balance. Bioceleng’s fast-moving cuts include belly, pork chops and knuckle. To get around the challenge, Mr Alfonso plans to further process the slow-moving cuts into smoked products and sausages. Currently Bioceleng has a total pig population of 250 heads with 30 sows. The pigs eat specially formulated diets which contain almonds among others. The pigs are also raised under a semi free-range farming model.
|Malaysia’s Rhone Ma to build manufacturing plant |
[30 November 2016] It is vital for animal health solution providers to have continuous product development and enhancement in the animal nutrition market to meet the needs of its customers. As such Malaysia’s Rhone Ma Holdings Berhad said it plans to set up a GMP-compliant plant in Negeri Sembilan. The plant will be the company’s own in-house manufacturing and R&D centre aimed at supporting Rhone Ma’s business. It will also construct a warehouse in Klang. This was revealed at the company’s prospectus launch. It hopes to raise USD 7.08 million from the proposed listing on December 19 on the main market of the Malaysian Bourse.
|Brazil challenges Indonesia’s halal requirements for imported meat|
[30 November 2016] Brazil has filed a complaint against Indonesia to the World Trade Organization (WTO), challenging Indonesia’s halal certification requirements for imported meat. The trade dispute has been registered in Indonesia-Measures Concerning the Importation of Chicken Meat and Chicken Products No. DS:484. Ahmad Firdaus Sukmono, Head of Trade Advocacy Bureau of Indonesia’s Trade Ministry said the policy is implemented as part of the government’s consumer protection efforts. “The dispute is focused on Indonesia’s rights to ensure compliance with food safety and halal requirements,” he said. Being the world’s largest chicken exporter, Brazil sees access to Indonesia constrained because Indonesia only allows halal whole chickens which are slaughtered individually.
|EU tightens inspection on Vietnamese seafood |
[30 November 2016] Vietnam is facing the risk of losing its major seafood market in the European Union (EU) due to raising concerns on food safety. “EU is tightening their inspection on Vietnamese seafood,” said Nguyen Hong Phong, Deputy Director of the National Agro-Forestry-Fisheries Quality Assurance Department. Besides sending warnings, EU also announced that it will implement a cross-sector inspection on harmful substance residues next year. In 2014, there were 48 seafood shipments to the EU that violated antibiotics and banned chemicals requirements. The number of violations in 2015, dropped to 29% from 54.9% in 2014. Within the first half of this year, however, the violations increased with six seafood shipments turning positive for chemical and antibiotics residues.
|Singapore imposes temporary ban on poultry from Germany|
[30 November 2016] In view of the recent outbreaks of avian influenza in Germany, Singapore recently announced that it has imposed temporary restrictions on poultry and poultry products from the country. Heat-processed poultry products, which meet the requirements for heat inactivation of AI virus, will not be affected, said a memo to meat traders on the Agri-Food and Veterinary Authority. Nearly 9000 geese were reported culled in the northern state of Schleswig-Holstein. Earlier last week some 30,000 chickens were culled in the state as a precautionary step to contain the H5N8 strain of the virus. Under German law, poultry must be killed even if they have a low pathogenic form of avian flu, which can mutate spontaneously into high pathogenic ones.
|Indonesia revises supply, distribution, monitoring of commercial chicken|
[29 November 2016] I Ketut Diarmita, Director-General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture said the directorate is now discussing a revision of supply, distribution and monitoring of commercial chicken. Integrators will be obliged to sell 50% of their DOC production to independent farmers. Secondly, all DOC sold to independent farmers have to meet Indonesia’s National Standard (SNI) on quality DOC. “So far, there are grade A and B in the market and independent farmers get grade-B DOC,” said Mr Diarmita. Last but not least, the ministry will oblige every broiler company with a production capacity of 500,000 birds/week to set up a processing plant plus cold storage facility. Singgih Januratmoko, Chairman of the Indonesian Poultry Farmers Association hopes the government will monitor the implementation of the policy.
Novus Gut Health Forum report by CRAIGE ALLAN
[29 November 2016]
Novus recently held a Gut Health Forum, which focused on The Impact Of Antibiotic-Free Production. Key take-home messages from the meeting in brief were as follows:
Feeding strategies for broilers in the absence of “in-feed antibiotics”
According to Dr Gonzalo Mateos, Professor of Animal Science, University of Madrid, Spain when the EU banned in-feed use of antibiotics in 2006 broiler performance, including FCR was not reduced. However, you need much better management when you don’t use in-feed antibiotics, starting at the hatchery. Since the ban we have seen a continual increase in the use of feed enzymes, organic acids etc., he observed.
Gastrointestinal tract health
Dr Mateos’s opinion is that it is a good idea to have a more diversified gastrointestinal tract (GIT) microbial population. Antibiotics reduce GIT microbial diversity – we don’t want that, he said. The GIT tract contains more than 600 species, and this population is very easy to modify. Nutrition can influence about half of the changes in the GIT microbial population. Ceacal fermentation does not necessarily mean problems. The fermentation of carbohydrates can be beneficial for the chicken as this can lead to the production of butyrate, whereas fermentation of proteins is not good and can result in an increase in hindgut pH causing the proliferation of harmful bacteria such as Clostridium.
Anti-nutritional factors and gut health
While anti-nutritional factors (ANFs) are common in feed raw materials they are often overlooked in formulations – particularly corn-soy diets, and rarely analysed, commented Dr G Saravanan, Technical Manager, Novus International. Phytate, a common ANF can cause intestinal irritation, and increased mucin production. Mucin is high in the essential amino acids, serine, threonine and proline and is poorly recovered. He also commented that when using phytate we need to rethink our trace mineral recommendations. For example, the NRC recommendation is to use 60ppm of zinc in broilers, however, common commercial practice is 130ppm. When using phytate you can recover about 35ppm of available zinc from raw materials.
Feed hygiene in an AGP-free production
When you think about antibiotic growth promoter-free (AGP) production we need to be concerned with feed hygiene, and this is a long-term strategy said Xabier Arbe, Head of Technical Services, South Asia and Southeast Asia Pacific, Novus International. You have to identify and evaluate your risks. We often think of animal-origin products, such as meat and bone meal (MBM) of being a high Salmonella risk, however, in a global Novus survey of soybean meal (300 samples), wheat and rice bran (192) and canola meal (85) about 9%, 13% and 12% of samples respectively were contaminated with Salmonella. Furthermore, the inclusion level of SBM is about 20-25% in most poultry diets, much higher MBM, so it can be a higher risk raw material, he said. “The risk in a free AGP production need to be managed by a proper sampling, technology like heat treatment and feed additives. However we need to understand their weaknesses so we will have a successful feed hygiene program,” concluded Dr Xabier.
|Cargill invests USD50m to expand poultry processing in Thailand|
[29 November 2016] Cargill is investing USD 50 million to expand its poultry processing operations at its facility in Nakhon Ratchasima province in Thailand. The company said this expansion is due to an increase in customer demand and strong customer confidence in the high quality and safety standards of the products produced by Cargill in Thailand. Construction on the new building annexed to the current facility began in October and is due for completion by Q1 2018. The expansion will create 1,400 new jobs and add to the more than 13,500 employees that Cargill currently employs across 14 locations in the country.
|15,000 pigs smuggled to China from Vietnam every day|
[29 November 2016] China Central Television (CCTV) reported that more than 15,000 live pigs are illegally shipped to China from Vietnam via ‘smuggling routes’ in Aidian town, a national port. Local inspection authorities have allegedly condoned the shipments, CCTV reported. The smuggled pigs from Vietnam, which are USD 0.58 cheaper per kg than Chinese pigs, escape inspection and quarantine. The thriving illegal pig imports have been also promoted by ‘truck escorting teams’. One of the truck drivers told CCTV that the smuggled pigs are sent to slaughterhouses across the country, including Southwest China’s Chengdu, Kunming and South China’s Guangdong Province.
|China’s Yisheng imports broiler GGP stock from Hubbard|
[29 November 2016] Shandong Yisheng Livestock & Poultry Breeding Co, the largest broiler breeder in China, said it has signed with Hubbard for the import of day-old GGP chicks valued at USD 10.4 million. The first shipment from Poland has been delivered, with the remainder to arrive in batches by September 2018. Hubbard has been a major GP supplier for Yisheng, but it’s the first time for a Chinese boiler breeder to introduce GGP stock. “This will change China’s structure of sourcing broiler genetics that was confined to overseas breeders and was easily affected by epidemic outbreaks worldwide,” Yisheng said. China’s GP imports fell significantly in 2016 due to bans on US and French poultry products.
|Bangkok Ranch to set up two new joint ventures|
[28 November 2016] Thailand’s Bangkok Ranch (BR) said it will invest no more than USD 2.5 million in two new joint ventures, aiming to expand its food business. BR’s two new joint ventures will engage in food manufacturing, retail and restaurant business. BR will establish its new joint venture, Chef Recipe Company Limited, which a registered capital of USD 1.1 million. The other new joint venture is Golden Star Century Company Limited. Chonlachart Worawuitthichongsathit, Assistant to CEO at BR told Asian Agribiz: “BR’s food business will generate higher margins than our conventional business. Although sales volume in food business is relatively small now, it has high growth potential.”
|Bright outlook for meat imports in Indonesia |
[28 November 2016] Considering a population increase of around 3 million per year, middle income population increase, limited land availability for farming, growing meat demand and development of the tourism industry, Thomas Sembiring, Executive Director of the Indonesian Meat Importers Association believes meats import in Indonesia in the next 5, 10 and 20 years is likely to see a 10% annual growth. “Take beef for example, the consumption is now only 2.5kg per capita. The demand for beef continues to grow, but local supplies can’t meet growing demand. So the only way to fill the gap is through imports,” Mr Sembiring told Asian Agribiz. “The interesting thing with imports is that you only buy cuts that are demanded by the market.”
|Council confirms date of DDGS ban in Vietnam|
[28 November 2016] The US Grains Council (USGC) is working with Vietnamese importers of distillers’ dried grains with solubles (DDGS) to end the country’s planned suspension of US shipments of the product due to contamination with the Ballion variety of beetle. “The Council was able to confirm the effective date is the bill of lading date, not the arrival date,” Kevin M Roepke, USGC Regional Director for Southern Asia and Oceania, told Asian Agribiz. “This would enable some shippers and end users to work together in order to clean the pipeline before the effective dates and ship early,” he said adding that the council will continue to work with Washington DC to try and come to a resolution on the issue.
Onsite with CRAIGE ALLAN and CHAKRIT RIDMONTRI at Poultry India 2016
[28 November 2016]
Shanthi Feeds to open further processing plant
Shanthi Feeds, India’s biggest frozen chicken exporter based in the southern state of Tamil Nadu, will open its first chicken further processing plant in 2017. V. Ilayaraja, Shathi’s Deputy General Manager, told Asian Agribiz that the plant will have an initial capacity of 100 tonnes/moth. It will produce a range of processed chicken items such as sausages, frankfurters, nuggets and patties supplying fast food chains, hotels and supermarkets across India. Based in Coimbatore city, Shanthi operates an automatic processing plant capacity 6000 birds/hour from Meyn of the Netherlands. It shipped 3600 tonnes of frozen chicken to the Middle East in 2015-2016 fiscal year, and has become India’s biggest frozen chicken exporter.
Unnat Feeds ventures into chicken processing
Unnat Feeds, a feedmiller-cum-broiler integrator in north India, will venture into the chicken processing business with a plan to set up a processing plant in 2017. Ranpal Dhanda, Joint Managing Director, told Asian Agribiz that he plans to build the plant with a capacity of 2000 birds/hour and expandable to 4000 birds/hour. It will be located in Panipat, about 80km north of capital Delhi. Unnat produces 250 tonnes of broiler feeds a day for commercial sales and use in the company’s farms. It produces 700,000 birds/month at the moment and will double the flock size for serving the new processing plant next year.
Semi-closed insulated layer houses reduce labour and mortality
The lack of reliable electricity supply in many areas in India makes fully closed housing perhaps not the right thing to do according to Bernada Lüers, Training and Marketing Manager, Big Dutchman. She recommends a semi-closed house with well insulated roofs as this reduces the radiant heat and therefore the house temperature. This increases bird comfort and reduces summer mortality rates. Conventional housing requires one person per 5,000 birds, whereas semi-closed housing only needs one person per 50,000 birds, except for morning egg collection. The manure belt removes manure daily, overcoming the odour and fly issues with open houses.
Poultry India and Aviagen growing together
Paul Gittins, Business Manager, Aviagen India remarked that the growth of Poultry India is indicative of how the Indian poultry industry is internationalising and offering producers greater choices. This is truly a win: win situation, as the local industry can grow faster with access to the latest techniques, equipment and methods. Likewise, international companies can be part of a big, exciting and growing market. Part of this increased choice is the growing acceptance of Aviagen birds, which are gaining more market acceptance as their biological performance adapts to local climate, environment and management conditions, noted Mr Gittins.
Mycotoxins – under-estimated risk in India
Mycotoxins are a major concern in India, as traditionally, mycotoxin analysis uses ELISA technology, which mainly detects aflatoxin. However, raw materials and feed from the sub-continent when analysed using state-of-the-art LC-MSMS analytical tools at Romer laboratories Singapore revealed that the prevalence of deoxynivalenol (DON), T-2 toxin (T2) and ochratoxin A (OTA) are vastly underestimated. These other mycotoxins damage the intestinal lining, resulting in other problems, such as reduced absorption of trace minerals that can lead to lameness. Sujit Kulkarni, Managing Director, Biomin India, reported that as producers become more aware of the mycotoxins and the economic losses they cause, there is growing interest in Mycofix which is a complete solution which not only adsorbs and deactivates mycotoxins, but also provides bioprotection.
Marel Poultry introduces Marel TargetBatcher
Jatin Bajaj, Account Manager said that this is the easy way to reduce giveaway, combining a pre-determined number of fresh or frozen products into a package of fixed weight. With seven high-accuracy individual scales and 14 holding bins the TargetBatcher selects the best combination of products in the fraction of a second. With fixed weight batching processors can reduce product give-away, which is 2-5% in manual operations, to 0.1-0.5% depending upon the batch commented Bajaj.
Unique xylanase for consistent performance
According to Dr Sushant Labh, Jubilant Life Sciences, many customers are concerned with problems with feed costs and feed variability. Most have found Xylamax (xylanase) useful in being able to resolve these issues he told Asian Agribiz. Xylamax outperforms other xylanases by releasing up to 130 kcal metabolisable energy (ME)/kg in corn-based poultry diets and up to 150 kcal ME/kg in wheat poultry diets due to its unique protein structure and pH profile.
|Presentations at AP2022 will help fine-tune five-year plans|
[25 November 2016] The Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, will deliver 19 visionary presentations from 16 global and regional specialists with 100s of ideas to help fine-tune five-year plans. The conference which will be staged in Bangkok, Thailand on January 16-17, 2017, will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register on our website.
|Hy-Line China JV to build 60-million-chick hatchery in Chongqing|
[25 November 2016] Chinese layer breeder Huayu Agricultural Technology Co, in which Hy-Line International holds a 55% stake, said it will build a hatchery with annual capacity of 60 million chicks in Fengdu County in the southwest municipality of Chongqing. Initial investment will be USD 51 million, while a parent stock farm and a feedmill are also in the pipeline. Separately, Huayu, which is based in north China’s Hebei province, said it has won an order from CP Chongqing to supply one million Hy-Line Gray chicks in 2017. Data from the China Animal Agriculture Association shows that Huayu imported 75,740 Hy-Line GP stock from Spain in the first three quarters of 2016, approximately one third of the country’s total GP imports. China has banned US poultry imports from 2015.
|QL Resources’ net profit falls on lower margins from fisheries division|
[25 November 2016] Malaysian poultry producer and food processor QL Resources Bhd said its net profit declined 8.4% in the second quarter of the fiscal year as its fisheries products margin shrank. Net profit for the three months ended September 30, totalled USD 11.4 million compared to USD 12.48 million in the same quarter a year earlier, QL Resources said in a stock exchange filing. Quarterly revenue rose 5.7% year-on-year to USD 164.89 million. QL Resources is Asia’s biggest manufacturer of surimi. The company also produces fishmeal, frozen fish and surimi-based products with total annual output of about 140,000 tonnes.
|Singapore fast food restaurants brave slump|
[25 November 2016] Fast food restaurants in Singapore are doing better than regular restaurants. A Straits Times article noted that they beat sales at restaurants with lower prices, better efficiency and by responding nimbly to trends. Fast-food sales in September are estimated to have risen 2.6% over the same period last year. But sales at restaurants rose more modestly at 0.9%. “It has speed and convenience, and even the ambience is getting better at the outlets. They keep having new products, which people get on to social media,” said Singapore Polytechnic Senior Retail Lecturer Sarah Lim. “Singapore is the hotbed of innovation and creativity when it comes to flavour profiles. It is a trend leader,” said Mr Amarpal S Sandhu, Texas Chicken’s General Manager for Asia Pacific.
|Big Dutchman strengthens Philippine team|
[25 November 2016] After acquiring the Proline Group, Big Dutchman has boosted its Philippine team by adding new staff and moving to a bigger office in Metro Manila. The Manila office will take on the regional role for Big Dutchman pig equipment in Asia, excluding China. “The future expansion plans will allow the team to build up the market, promote the Big Dutchman brand and provide the Philippines with a new level of support that we are known for in the global market,” said Patrick Ty, Managing Director of Big Dutchman Philippines.
|McDonald's Indonesia to launch mobile app|
[25 November 2016] McDonald's Indonesia will launch a mobile app to serve customers amid growing technology development in the fourth quarter of this year. The fast food giant said by launching the app, it wants to tap the growing smartphone market and keep up with shifting consumer behaviour. Michael Hartono, Marketing and Communications Director said once it is launched, customers can download the app and click on the menu when they want to place an order. In other developments, the company plans to open 15 stand-alone outlets across the country, adding to its 168 existing outlets. “We aim to record 15% sales growth this year,” Mr Hartono said.
Onsite with CHAKRIT RIDMONTRI at Poultry India 2016
[24 November 2016]
Good focus on processing
The 10th edition of Poultry India opened yesterday in Hyderabad with about 250 exhibitors from all sectors related to the poultry industry from across the region and the world. Remarkable growth is evident in the poultry processing sector in India. At the present edition of the show, one out of the four halls is completely occupied by poultry processing equipment from both local and international suppliers such as Meyn, Marel Stork, Linco, Moba and more.
Senha Farms opens modern poultry processing plant
Sneha Farms, a major broiler integrator in India’s poultry hub of Hyderabad, recently opened its first modern broiler processing plant. It has a fully automatic processing line with a 6000 birds/hour capacity supplied by Marel Stork Poultry Processing from the Netherlands. Managing Director Ram Reddy told Asian Agribiz that the investment in the modern processing line is aimed at laying down the basis for Sneha to become a food company soon.
|Korea’s Daesang buys Vietnamese sausage maker Duc Viet|
[24 November 2016] South Korean food producer Daesang Corp said it has completed the acquisition of a 99.99% stake in Vietnam-based meat processor Duck Viet Food Joint-Stock Co for USD 32 million. Duc Viet Food, which mainly makes hams and sausages, is a small, but sound company with USD 13.6 million in total assets, said Daesang. The Vietnamese company posted a net income of USD 1.69 million and USD 26.21 million in sales last year. According to market intelligence agency Mintel Group Ltd, demand in processed meat products in Vietnam reached USD 490 billion last year. Chilled sausages made up the largest share (23%), followed by shelf stable sausages (19%) and Vietnamese traditional sausage (18%).
|Philippine chicken, chicken egg output up in Q3|
[24 November 2016] Philippine chicken production and chicken egg production grew 1.89% and 4.96% respectively in Q3 2016. Data from the Philippine Statistics Authority (PSA) showed that chicken output for the period was 400,950 tonnes while chicken egg was 112,970 tonnes. According to the PSA, the higher demand drove up chicken production, while increased inventory and expansion of layer farms led to the growth in egg production. Although average farm price of chicken took a slight 0.55% dip, the higher output led to a 1.33% hike in earnings, while for chicken egg industry, a higher average farm price translated to a nearly 12% increase in gross revenue.
|FAO, the Vatican condemn illegal fishing|
[24 November 2016] FAO and the Vatican have called for an intensified international push to stamp out human rights abuses in the world’s fishing industry — including trafficking of people and forced labour — as well as an end to the scourge of illegal fishing. José Graziano da Silva, UN Director-General said although fishing provides food and income for millions of people, “sadly, the same industry that offers so many opportunities also victimizes the most vulnerable.” Therefore, “FAO and the Holy See are calling for collaboration between all partners to work together in order to end human rights abuses along the entire fisheries value chain,” he said.
|MSD Animal Health calls for submissions for 2017 High Quality Pork Award |
[24 November 2016] MSD Animal Health announced its sponsorship of the 2017 High Quality Pork PhD Award in support of research in swine health, production and welfare. The award is open to recent doctoral graduates in veterinary or animal science, and the winner gets the opportunity to present their research at MSD Animal Health High Quality Pork meetings to be held in Europe, the Americas and Asia in 2017. Applications must be submitted by January 15, 2017 and the winner will be announced in mid-February. Visit highqualitycongress.com/hqporkphdaward.aspx to get further details and to apply.
|Fast Food Indonesia to operate 600 KFC outlets in 2017|
[24 November 2016] Fast Food Indonesia, the operator of KFC in Indonesia, has said that it will continue to increase the number of its outlet in the country. Currently the company operates 560 outlets across the country. Hendra Yuniarto, General Manager said it plans to operate 600 outlets in 2017 by setting up 40 new outlets both in Java and beyond Java. The company is confident of achieving a 10% revenue increase in 2017. To achieve this target, Mr Yuniarto said it will launch 3-4 new menus and push its online sales by cooperating with non-cash payment providers.
|Have traditional supermarkets peaked?|
[23 November 2016] At the Asian Agribiz Animal Protein in Asia 2022 conference, David Hughes, Emeritus Professor of Food Marketing at Imperial College London, UK will address how ‘Big Box’ retail food stores must to come to terms with the fact that on-line, discount, smaller supermarket, and convenience store sales will outpace hypermarket sales as consumers move towards a more shopper-friendly and dynamic multichannel grocery environment. The conference which will be staged in Bangkok, Thailand on January 16-17, 2017. This boutique conference will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register here.
|South Korea lifts ban on Thai frozen chicken|
[23 November 2016] South Korea has agreed to lift its 12-year ban on frozen chicken imports from Thailand, after South Korea’s Quarantine Inspection Agency (QIA) visited and inspected 12 Thai chicken plants in September this year. “This is good news because we can expand our export markets. And the volume of chicken exports will increase,” Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. Mr Kukrit said Thai chicken plants will export around 10,000 tonnes of frozen chicken to South Korea in 2017 and the volume will increase to 30,000-40,000 tonnes in the next 2-3 years. In total, Mr Kukrit said Thailand will export around 715,000-720,000 tonnes of chicken meat this year.
|Philippine hog production up in Q3|
[23 November 2016] Philippine hog production rose to 522,840 tonnes in Q3 2016, up over 4.5% from the previous year, the Philippine Statistics Authority (PSA) said in its quarterly agricultural performance report. This brings the country’s total production to nearly 1.6 million tonnes from January to September this year. The PSA said the rise was due to heavier slaughter weights and higher demand from institutional clients, traders and meat processors in Central Luzon and the Calabarzon regions, both of which are adjacent to Metro Manila. The higher volume helped push up the industry’s gross earnings to USD 989.2 million for Q3, up 1.75% year-on-year despite an almost 2.6% drop in average farm price during the review period.
|Vietnam a good market for EU meats, by-products |
[23 November 2016] Rising concerns on food safety in Vietnam and a preference for imported meat, has seen European countries promoting their meat products here, more so with EU-Vietnam Free Trade Agreement (EVFTA) that is due to take effect by 2018. A delegation of 42 EU establishments led by Phil Hogan, EU Agriculture Commissioner, held meetings with Vietnamese enterprises in an effort to strengthen ties and work towards the implementation of the EVFTA. The meeting showed that Vietnamese consumers favour not only high quality pork, but also poultry by-products. About 100 EU exporters currently export meat products to Vietnam. Meat imports from EU to Vietnam grew to 711 tonnes in 2015 from 10 tonnes in 2012.
|Japan, Korea, Hong Kong restrict poultry imports from Germany|
[23 November 2016] Japan, South Korea and Hong Kong are among several countries that have placed import restrictions on poultry from Germany following outbreaks of avian influenza in the country, the German state government of Mecklenburg-Vorpommern said in a statement. Eight European countries and Israel have found cases of the highly contagious H5N8 strain of avian influenza in the past few weeks and some have ordered that poultry flocks be kept indoors to avoid the disease spreading. Most outbreaks have involved wild birds, but Germany, Hungary and Austria have also reported cases in domestic duck and turkey farms where all poultry had to be culled. More outbreaks in Europe are likely in the next few weeks as wild birds believed to transmit the virus migrate south.
|Demonetisation hits India’s layer farmers|
[23 November 2016] Poultry farmers in India’s Andhra Pradesh state are badly hit by a drop in egg prices after demonetisation of high denomination notes. Layer farmers having 100,000 birds are losing at least USD 881 a day on sale of eggs and the losses are higher for farmers raising below 100,000 birds. With the money transactions becoming difficult across the country, the egg dealers are refusing to buy eggs from local farmers and they are offering prices lower than that fixed by the National Egg Co-ordination Committee (NECC). Kanakamedala Premkumar, NECC Zonal Committee Chairman said: “Our hopes on running the poultry industry this season were ruined due to the government’s decision of scrapping of high denomination notes.” He said the egg price fell from USD 0.05 to USD 0.04 per piece after Prime Minister Narendra Modi announced demonetisation on November 8.
|Sierad sells its fish meal producing subsidiary|
[22 November 2016] Indonesian poultry integrator Sierad Produce has sold its subsidiary Dwipa Mina Nusantara which produces fish meal, to an individual buyer. FX Awi Tantra, Director and Corporate Secretary said the reason was because in recent years the subsidiary was not able to produce fish meal due to limited raw material. “By selling the non-productive asset, we will focus more on our core businesses,” said Mr Tantra. From the transaction, Sierad raised around USD 380,000 which will be allocated to its capital expenditure in 2017. The company plans to use its 2017 capex to expand its processed food business, among others. Asian Agribiz noted that besides Dwipa, during this year the company has sold its land and building in Tangerang, and its ownership in Sierad Industries which produces poultry housing & equipment to Pacific Raya Propertindo for USD 13.4 million.
|Vietnam's exports in jeopardy over heavy metal contaminated seafood|
[22 November 2016] Vietnam’s export turnover target of USD 7 billion in 2016 may not be achieved as contaminated shipments to the EU contaminated have doubled compared to the same period last year. The National Agro-Forestry-Fisheries Quality Assurance Department (Nafiqad) and the Ministry of Agriculture and Rural Development (MARD) have imposed strict control methods on seafood exports from red-flagged companies in particular, and in the entire export seafood production sector. Nafiqad has received 11 compromised cases of shipments contaminated with mercury and Cadmium. “The number of violations has increased 2.2 times compared to 2015, said Nguyen Nhu Tiep, Nafiqad Director General.
|Shanghai Maling to shift Silver Fern Farms deal to an earlier date|
[22 November 2016] Chinese food operator Shanghai Maling Aquarius Co said the delivery day of the Silver Fern Farms deal has been set for December 1, 2016, amid concerns over a foreign exchange fluctuation. That compares with an earlier plan for completion on January 4, 2017. The deal price will also be raised to USD 187 million from USD 183 million, according to the Chinese company. In September this year, the New Zealand government gave the green light for Maling to buy a 50% stake in meat processor Silver Fern Farms. Shanghai-listed Maling is a meat subsidiary of China’s state-owned food and drink conglomerate Bright Foods, which owns global brands like Weetabix, Manassen and Synlait.
|Big Dutchman opens office in Myanmar|
[22 November 2016] Big Dutchman has ventured into Myanmar with the opening of a new office in Yangon. Headed by Surachai Chaicompa Managing Director, BDA Agriculture (Myanmar) Ltd will enhance the company’s sales and support services for customers in the pig and poultry sectors. “The expansion into Myanmar is a reflection of the economic growth sweeping the region. Our presence here recognises that new and existing customers benefit from locally driven support to complement our global services,” said Mr Surachai Chaicompa.
|Vissan welcomes Tet holiday with new products|
[22 November 2016] The Vietnam Meat Industries Joint Stock Company (Vissan) has launched two new products namely iridescent flower sausage and Happy Sausage for the coming Tet holiday (January 28, 2017). Traditionally, five represents blessings. So the five-coloured meat-based product combining high quality pork, peas and other beans, carrot and salted egg, wrapped in a paper bag, is designed to specially serve for Tet gifts, and as a special traditional meal. Meanwhile, Happy Sausage uses high quality pork from the company’s 3F model farm (Feed - Farm - Food). Vissan plans to distribute the new products to over 130,000 points across the country.
|South Korea confirms H5N6 cases |
[22 November 2016] South Korea has confirmed the country’s first outbreaks of the highly pathogenic H5N6 avian influenza virus at two poultry farms, an agriculture ministry official said. The outbreaks occurred at the farms in the central and southern parts of the country after the ministry reported in last week that the H5N6 strain had been found in the faeces of migratory birds. South Korea’s last bird flu outbreak occurred in March, when a different strain of the virus was detected at a duck farm, leading to the slaughter of at least 11,000 birds.
|CPF to acquire Bellisio for USD 1 billion |
[21 November 2016] Thailand’s Charoen Pokphand Foods (CPF) said it will buy Bellisio Parent LLC, a US Frozen food producer, for USD 1.075 billion, marking its first step into the world's largest food market. CPF signed a purchase agreement on November 17 with Bellisio Consolidated Equity. Bellisio Group is the third largest producer and distributor of single serve frozen entrees in the US by unit share, with well-known brands such as Michelina’s, Boston Market, and Atkins. Adirek Sripratak, CEO of CPF, said the deal will allow the company to bring greater variety of products particularly Asian food products, to US consumers as well as export CPF’s products globally. “This acquisition is in line with CPF’s strategic direction to expand into high potential markets,” Mr Adirek added. CPF said the transaction, subject to customary closing conditions and regulatory approvals, is expected to close within 180 days.
|Vietnam shrimp exports expected to reach USD3.1b|
[21 November 2016] Vietnam's shrimp exports in the first nine months of 2016 is valued at USD 2.2 billion, up 5.6 % compared to the same period last year, according to the Vietnam Association of Seafood Exporters and Producers (Vasep). Shrimp exports to the US, EU, China and Korea stayed firm, except for Japan which dropped 4.2%. Shrimp exports to China saw the highest growth of 30.3%, while to the US, EU and Korea increased 15.2%, 6.9% and 12.3% respectively. Vasep said Vietnam shrimp exports in 2016 is expected to reach USD 3.1 billion, up 3.3% year on year. However, Vasep also estimates that there will be more challenges for shrimp exporters coming from stiffer quality requirements and anti-dumping duties set by some important markets.
|KFC Indonesia operator optimistic of USD365m revenue|
[21 November 2016] Fast Food Indonesia, the operator of KFC in Indonesia, is optimistic of achieving a revenue of USD 365 million in 2016 with the upcoming year-end holidays. The company’s performance until Q3 grew 9.3% to USD 261 million. Hendra Yuniarto, General Manager said one of the key drivers of the good performance was due to the launch of new menu called KFC Hot & Cheesy Chicken in Q3 which jacked up its stores’ sales by around 15-20% per month.
DSM Aquaculture Conference Asia Pacific 2016
Surabaya, Indonesia & Bangkok, Thailand
Reporting by ARIEF FACHRUDIN and PAYUNGSAK WIRIYABUNDITKUL
[21 November 2016]
Understanding raw materials composition, nutritional value
Raw material markets are globally connected, unstable and challenging. According to Brett Glencross, Professor of Nutrition, Institute of Aquaculture, University of Stirling in Scotland, volatility and market complexity is now the new norm. Therefore, “raw materials not only need to be procured in line with commercial economics, but with a view to managing the risks associated with volatility in demand,” he said. “Underpinning all of this is a solid understanding of the key quality drivers of raw materials, the most fundamental of which are their composition and nutritional value.”
Vitamin nutrition in warm water fish and shrimp
Vitamins are organic compounds essential for maintenance of biological process and optimal growth. Viviane Verlhac-Trichet, Research Centre Head and Principal Scientist at DSM Nutritional Products France, said that vitamins have the same metabolic functions in fish and shrimp as they have in land-based animals and their requirements are similar to other animals. “Since aquatic animals are not able to produce vitamins themselves, it is essential they obtain them via the feed,” Dr Viviane said. Meanwhile, increased dietary vitamin E protects unsaturated fats and thus improve fish product quality. Vitamin C contributes to maintain the integrity of the immune cells in fish through protection against oxidation and vitamin C modulates non-specific immune defences, leading to improved resistance to infectious diseases.
Moving beyond fish meal
Explaining about ‘Moving beyond fish meal’, Prof Glencross said: “animals need nutrients and energy, not raw materials. Same proteinogenic 20 amino acids exist in all plant and animal proteins. In addition, energy from protein, fat and starch is unaffected by whether it is of animal or plant origin.” According to him, being able to adapt with raw materials will create opportunities to reduce direct competition and underpins new innovation potential. However, he said all raw materials have issues with variability. Nutritional variability is affected by source, processing and etc. Meanwhile, understanding variability is the key to its management. “Getting it all right will mean no future reliance on fish meal,” he stressed.
Anti-nutritional factors of relevance to Southeast Asia
One of the major shortcomings of some feed ingredients is the presence of anti-nutritional factors (ANFs) and related compounds that may negatively impact their nutritive value or the maximum level of incorporation of these ingredients in feeds, said Dominique P Bureau, Fish Nutrition Research Laboratory at University of Guelph. ANFs can loosely be defined as dietary substances that reduce or interfere with the bio-availability of nutrients and disrupt normal metabolic, cellular and physiological process. Dr Bureau said that ANFs include oilseed anti-nutritional factors, dietary fibre and phytic acid. The ANFs contained in oilseed are diverse in nature, including protease inhibitors, saponins, lectins, antigenic compounds. Dietary fibre consists of diverse components such as non-starch polysaccharides and other organic components.
DSM Indonesia aims to be best premix solution provider
In 2020, DSM Indonesia aims to become the best premix solution provider in animal nutrition in Indonesia, revealed Jason Park, Director. He said the company prioritises quality, reliability and traceability in delivering its nutritional solutions that include vitamins, enzymes, eubiotics and minerals. Another important point is the company has a local premix plant located in Pasuruan, East Java with a capacity of 10,000 tonnes/month. The plant has been operating since July 2016. About the plant, Mr Park said: “Bar code system and PCS are used to ensure 100% traceability for food safety. The plant produces antibiotic free products for aquaculture. Besides, DSM is the only approved aqua premix manufacturer by Indonesia’s Ministry of Fisheries and Marine Affairs.”
|Conference for key strategists in the meat industry|
[18 November 2016] Four key themes will be addressed at Asian Agribiz’s Animal Protein in Asia 2022 conference which will be staged in Bangkok, Thailand on January 16-17, 2017. They are Harnessing e-commerce to sell meat; Developing the next big meat product; Staying in front of eating trends and Regional meat opportunities. This boutique conference will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register here.
|CPF’s Q3 net profit rises 45%|
[18 November 2016] Thailand’s Charoen Pokphand Foods (CPF) has posted a net profit of USD 146.25 million in Q3, up 45% from the same period last year, backed by improvement of its livestock business in Thailand and Vietnam as well as the recovery of its Thai shrimp business. CPF’s sales revenue increased 10% year-on-year to USD 3.46 billion in Q3. Its Thai operations (domestic and export sales) contributed 38% to the company’s total revenue, while the rest came from its international operations. Adirek Sripratak, President and CEO, said CPF’s business in China and Vietnam, which contribute 39% of its total sales, are the key growth drivers. In the long term, Mr Adirek sees business opportunities and potential in Russia, India and the Philippines.
|Nutricell to launch antibiotic-free poultry feed project|
[18 November 2016] Indonesian animal nutrition & health company Nutricell Pacific plans to launch antibiotic-free (ABF) poultry feed in early 2017. Fauzan Latief, Sales Manager, told Asian Agribiz that the project is a partnership with its customer in West Java. “The customer is a main supplier of chicken meat and eggs to McDonald’s Indonesia outlets in Greater Jakarta. By producing ABF feed at their plant, they can ensure traceability of their chicken meat and eggs starting from feedmill, farms to distribution,” he explained. “While the market practices antibiotics residue free meat by ensuring proper withdrawal time, we have stepped to the next level.” As a replacement, Mr Latief said they use eubiotics products such as essential oils and probiotics.
|Bangkok Ranch’s Q3 net profit drops 38%|
[18 November 2016] Thailand’s Bangkok Ranch has recorded a net profit of USD 1.93 million in Q3, down 38.1% from the same period last year, hurt by intense price competition in its export markets and the baht's appreciation against the EUR and GBP. Joseph Suchaovanich, Managing Director Asia and Asia Pacific at BR said earlier that the company saw intense competition in the live ducks segment in Europe. BR also saw increased competition from Chinese players in the roasted duck segment in European markets. Meanwhile, BR’s revenue increased 11.4 % year-on-year to USD 57.61 million in Q3. “We will continue to focus on operational efficiency, product development and market expansion in Thailand and overseas markets,” BR said in a filing to the Stock Exchange of Thailand.
|Jollibee Q3 sales up 12.4%|
[18 November 2016] Driven by strong growth in the local market, Jollibee Food Corporation posted a 12.4% sales in its system wide sales in the third quarter this year compared to the same period last year. The company expects to post its “highest system wide sales growth in five years and the highest organic growth in at least a decade driven by strong same store sales growth and the highest store network expansion,” said JFC CEO Ernesto Tanmantiong. Revenue for the period topped USD 566 million, up 11% year-on-year. For the first nine month this year, JFC’s system wide sales and revenue grew 14.1% and 12.8% respectively over the previous year.
|Sun Group builds second further processing plant |
[17 November 2016] Thailand’s Sun Group is investing around USD 23-28 million in a second further processing plant, Chamlong Termglinchan, CEO of Sun Group told Asian Agribiz. Sun Group’s new further processing plant in Saraburi province, will produce cooked chicken products and will have a production capacity of 1000 tonnes a month. Mr Chamlong said the plant will be operational in the fourth quarter of 2017 and it plans to export its cooked chicken to Japan and Europe. The company’s existing further processing plant has a production capacity of 500 tonnes a month. Meanwhile, Sun Group has set a revenue target of USD 340.40 million this year and USD 425.50 million for next year. Food business contributed 50% to the company’s total revenue in 2016, while the rest came from its feed business.
|Fujian Sunner to open new technology centre in early 2017|
[17 November 2016] Fujian Sunner Group, the largest white-feather broiler integrator in China, said it is launching a technology centre costing about USD 15 million. “The new building will be operational early next year,” Chen Zhihong, Deputy Director of Media Office told Asian Agribiz. According to him, the new centre will focus on physical and chemical food examination, food microbiological analysis and poultry disease control. “It will meet the demand for the production and processing of one billion broilers.” Sunner currently has an annual slaughter capacity of 500 billion birds. It slaughtered 360 million in 2015 and targets to kill 430 million this year.
|Indonesian poultry farmers seek market segmentation|
[17 November 2016] Indonesia’s Joint-Secretariat for Independent Poultry Farmers Rescue is planning to demonstrate today at the Ministry of Agriculture’s office in Jakarta. The joint-secretariat will demand that the ministry impose a selling price for live birds and eggs that is above their production costs as price fluctuation has led many to collapse. They also want a fair trade system and a 70% market share in the broiler & layer farming sector. Last but not least, they also want the ministry to define market segmentations – live birds or fresh warm broiler market for independent farmers, while frozen broiler meat market for integrators. Around 200 people will join the demonstration.
|Price of live pigs declines in Vietnam|
[17 November 2016] Live pig price in Ho Chi Minh City and Dong Nai province is expected to drop to USD 1.61/kg this month, down by USD 0.2/kg from October, and about 23% lower than the highest price reached in April and May this year when Chinese pig-buying activities reached its peak. At the time, many Vietnamese pig producers expanded production, but after Chinese traders stopped buying, producers are now faced with an oversupply, said Nguyen Kim Doan, Vice Chairman of Dong Nai Animal Husbandry Association.
|H5N8 outbreak in India|
[17 November 2016] A chicken has tested positive for H5N8 in Karnataka, India, the first detection in that district, the Business Standard reported. Haryana, Rajpura, Delhi, Gwalior, and Kerala districts have been previously affected. Post-outbreak response and surveillance is continuing in the other affected districts, according to the Business Standard report. The Bhopal-based National Institute of High Security Animal Diseases confirmed that samples from the chicken are positive for H5N8 avian flu, according to national agriculture officials. The Karnataka government has been instructed to initiate control and containment operations, similar to response efforts in other districts. "The situation is under control," the country's Agriculture Ministry said.
|David Hughes to chair meat conference in Bangkok|
[16 November 2016] Animal Protein in Asia 2022, another stellar conference by Asian Agribiz, will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Chaired by David Hughes, Professor of Food Marketing, Imperial College, UK, the conference will deliver 19 visionary presentations from 16 global and regional specialists with 100s of ideas to help fine-tune five-year plans. View more details and register here.
|Luong Hue opens new processing plant |
[16 November 2016] Luong Hue, Vietnam's third largest native chicken breeder, is to open its new processing plant at the end of November with an aim to lift the country' native chicken industry to a new level of quality and hygiene standards. Investing over USD 1 million for the first phase of the project, the plant will be equipped with a slaughtering line capacity of 1000-1500 birds/hour from Bayle of France. Managing Director Pham Van Luong told Asian Agribiz that the entire project would cost a total of USD 5 million. This investment is meant to develop the whole value chain of Luong Hue's native chickens for local and international markets.
|US pork exports to China to hit 500,000t in 2016|
[16 November 2016] The US Meat Export Federation (USMEF) said exports of US pork to China this year are expected to range from 400,000-500,000 tonnes with a value of USD 500-600 million. “These figures will be 80-90% higher than last year,” Joel Haggard, Senior Vice President for Asia Pacific, told Asian Agribiz. In the first three quarters, exports- including variety meats and by-products - reached 252,000 tonnes valued at USD 440 million. “US pork prices are expected to stay low through this year and next due to expanding domestic production and supply availability,” Mr Haggard said.
|Thai wheat importers compelled to buy domestic corn|
[16 November 2016] Thailand’s feed producers that import wheat will have to buy domestic corn, as part of government measure to support corn prices, Bangkokbiznews reported. Corn prices have declined due to larger than expected supply in the current harvest season. Commerce Minister Apiradi Tantraporn said imports of wheat will require a permit. Feed producers who import one volume of wheat must purchase three volumes of domestic corn at USD 0.23/kg. However, Pornsil Patchrintanakul, President of Thai Feed Mill Association, told Asian Agribiz that the livestock industry needs 7.8 million tonnes annually but corn production is around 4.5 million tonnes a year. “If we buy 4.5 million tonnes of domestic corn, we will be able to import just 1.5 million tonnes of wheat. It will not be enough,” Mr Pornsil said, adding the industry imported 3.4 million tonnes of wheat annually in the past two years.
|Huaying kicks off construction of duck slaughterhouse|
[16 November 2016] Chinese duck processor Henan Huaying Agricultural Development Co had a ground breaking ceremony for a duck slaughterhouse on November 6. The facility, located in Fengcheng in east China’s Jiangxi province, will have an annual slaughter capacity of 30 million birds. It is the first phase of a complex that will also include a 300,000-tonne selenium-enriched feedmill and a 20,000-tonne cooked products factory by 2021. Due to the larger capacity total cost of the complex will be raised to USD 97 million from 68 million, according to the company.
|Vietnam producers urged to export pigs through official channels|
[16 November 2016] Vietnamese pig producers should ship pigs to China using official channels rather than through unofficial cross-border trade to avoid volatility in demand and prices. By doing so, producers can enter into supply contracts and prepare production plans, said Department of Animal Husbandry Vice Director Nguyen Van Trong, adding that counterpart sectors and agencies in both countries should work on a veterinary agreement to achieve this goal. Vietnamese producers must comply with regulations of importing countries and have an active production plan, he said, otherwise, “we would continue to be the victim of supply-demand imbalance and uncontrolled prices.”
|Sun Group to build second feedmill next year|
[15 November 2016] Thailand’s Sun Group will invest USD 23-28 million to build a second feedmill in 2017, Chamlong Termglinchan, CEO of Sun Group told Asian Agribiz. The new feedmill, which will be located in Saraburi province, will have a production capacity of 40,000 tonnes a month. The feedmill will mainly produce chicken feed and it will come online in early 2018, Mr Chamlong said. “The use of homemade feed will gradually decrease because key raw materials are hard to find. And feed will partly come from by-product feeds, which need technology in the feedmill,” he said, adding revenue from its feed business will grow at least 10% annually. Sun Group’s existing feedmill has a production capacity of 40,000 tonnes a month and 50% of the feed production is used internally.
|Kerchin single-day ecommerce sales hit USD 4.5 million|
[15 November 2016] Kerchin Cattle Industry Co, the second largest beef producer in China, said it booked ecommerce sales of USD 4.5 million on the day of "Double Eleven" online shopping festival. On Tmall alone, its sales rose 47.8% year-on-year to USD 3.2 million, ranking the first in the category of fresh products. Kerchin’s beef products are also available on Taobao, JD.com and Yihaodian. "Double Eleven", dubbed as the Chinese version of "Black Friday", falls on November 11 each year and was originally initiated by Alibaba, the operator of Tmall and Taobao, in 2009. It was later adopted by other e-commerce platforms and developed into China's biggest annual online shopping spree.
|Uptrend continues in food price index|
[15 November 2016] October saw a decline in global meat prices due to slackening import demand from China, bucking an upward trend in food prices overall, according to an index compiled by the UN Food and Agriculture Organization. The FAO Meat Price Index fell 1% in October from September, dragged down by excess domestic supplies in the EU and a decline in EU export prices for pork as demand from China slowed, the organization said. The decrease was further linked to declining beef export prices in the Asia Pacific region as higher domestic production in the US eliminated the need for external supplies. The Food Price Index has climbed continuously since the start of the year except for a dip in July.
2nd National Swine Seminar in Manado, North Sulawesi, Indonesia
Report by ARIEF FACHRUDIN
[15 November 2016]
Pig farmers should follow international, regional standards
The single Asean market offers both opportunities and threats to the national pig industry, according to Ellen Joan Kumaat, Rector of the University of Sam Ratulangi in Manado, North Sulawesi. She hopes pig farmers not only in the province, but also in other pig production centres such as Java, North Sumatera, Nusa Tenggara and Papua, will continue to increase their production efficiency and product quality according to international & regional standards. Prof Kumaat said by following the standards, local pig farmers will not only able to secure local markets, but also have the opportunity to tap export markets in the region.
Indonesia’s pig population to increase 3.92%
Standing pig population in Indonesia was estimated at 8.1 million heads in 2016, a 3.92% increase from last year, according to the Ministry of Agriculture. Meanwhile, pork production was expected to touch 342,346 tonnes in 2016, a 3.67% increase from last year. Pork production contributes around 10% to the total national meat production. Bali, North Sumatera, East Nusa Tenggara, West Kalimantan and North Sulawesi provinces are in the list of top five producers. In 2012, Indonesia exported 35,370 tonnes of pork with a value of around USD 62 million. Bulan Island based Indotirta Suaka which belongs to Salim Group was reported as the exporter with Singapore as the export destination.
High beef prices affect pork price, consumption
According to Sauland Sinaga, Chairman of the Indonesian Monogastric Association, the high price of beef in the country of around USD 9/kg has positively affected the pig industry. “Pork consumers in the country increased consumption due to the high price of beef. As a result, the price of live pigs has increased from USD 2.15 to USD 2.30 per kg,” Dr Sinaga said. He believes the government’s new policy to oblige live cattle importers to import one breeding cattle for every five feeder cattle imported will also positively affect pork consumption. According to him, it is not easy for live cattle importers to realise the policy as they have to prepare breeding farms. “This, again, will trigger the price of beef to escalate.”
Challenges in Indonesia’s pig farming industry
Although the Ministry of Agriculture estimates the national pig population and pork production will continue to increase, there are some challenges. Dr Sinaga said limited corn supply is the main challenge as the ministry has terminated corn imports. To address this problem, “farmers should look to alternative feed raw materials that are available locally,” he suggested. The next challenge is climate change, where farmers have to improve farm management, biosecurity and embrace modern housing technology. “Genetic quality is also a big problem. Pig production performance in Indonesia is still far behind other countries in the region. The government should help to overcome this problem in order to increase national pig farmers’ competitiveness,” said Dr Sinaga.
Zones for pig farming
Social problems hamper the growth of pig farming in Indonesia, according to Komang Budaarsa, Chairman of the Indonesian Pig Scientists Association. In West Java province for instance, pig farmers were forced to close their farms due to issues related to religion, odour, waste management and resident housing development. “So we want the government to establish zones for pig farming. It’s important for both farmers and potential investors,” said Prof Budaarsa. In addition, with the zoning, he also wants farmers to also raise indigenous black pigs that generate premium meat. “The price of babi guling [roasted pig carcase] from indigenous black pig is around USD 192, while from commercial pig is only around USD 115,” he said.
Main diseases in piglets in Indonesia
Suwicha Kupradinun found many cases of diarrhoea in 7-10 day aged piglets in Indonesia. The Thailand based pig health & management consultant said one of the causes is that most pig farmers in Indonesia cut their piglets’ teeth on day 1. “Piglets suffer a lot because of this practice, which then triggers diarrhoea. So they should cut the teeth on day 3 or 4,” he said. Besides diarrhoea, Dr Suwicha also found diseases caused by coccidia and E coli in 7-10 day aged piglets. “Other neighbouring countries such as Thailand, the Philippines and Vietnam also face the same problem,” he added. Dr Suwicha suggested that it is important for pig producers to take and test samples of faeces or blood at laboratories periodically. “Observations based on clinical & sub-clinical signs are not enough. We need to know root of the problem to then decide on which medical and preventive action to be taken,” he said.
North Sulawesi struggles with hog cholera
Pig producers in North Sulawesi have not been able to spread their market reach to potential pork markets such as Papua because the province is not yet free from hog cholera. Ronald Kalalo from the North Sulawesi Pig Farmers Association said the association is struggling to achieve the hog cholera-free status. “Based on our field observations, our members haven't found any cases of hog cholera at their farms. Some don't even vaccinate against hog cholera anymore,” he said. Mr Kalalo hopes the provincial government and the Ministry of Agriculture can guide the association on measures to get the free status. According to the local Animal Husbandry Agency, surveillance is mandatory and has to be performed for five years. If there are no hog cholera cases during the period, the province will get the free status.
|Thailand’s shrimp industry not worried by prospect of higher tariffs |
[14 November 2016] Donald Trump will likely implement protectionist trade policies as promised on the campaign trail. “If the US imposes higher tariffs on shrimp imports, we will conform as long as the US enforces this equally to every country,” Suraphol Pratuangtum, Honorary President and Technical Advisor of the Thai Shrimp Association told Asian Agribiz. According to the association, Thailand exported 57,543 tonnes of shrimp to the US in the first 10 months of 2015, valued at USD 572.22 million. “Americans still needs to eat shrimp and we produce quality shrimp,” Mr Suraphol said. Meanwhile, Pornsil Patchrintanakul, President of Thai Feed Mill Association told Asian Agribiz that Mr Trump’s policies will have no impact on the feed industry in Thailand as the industry imports feed, including soybean meal, from the US and does not export any feed products to the US.
|Local corn in Indonesia touches USD0.34/kg |
[14 November 2016] Indonesia's restriction of corn imports has led to higher local prices. The current local corn price is higher than the government’s ceiling price of USD 0.28 per kg. According to the National Layer Farmers Forum (PLN) data, local corn with moisture content of 17% is now priced at around USD 0.32-0.34/kg. Ki Musbar, PLN Coordinator said local corn price increased because of short local supply. “The shortage was worsened by poor management of post-harvest and distribution in corn production centres, plus many brokers in the distribution chain,” he said. “With the higher price, feed costs have increased by USD 0.01-0.02 per kg.”
|Wheat importers must also buy Thai corn|
[14 November 2016] In a move to curb tumbling corn prices the Thai government has decided that importers of wheat will have to purchase local corn. Nattaporn Jatusripitak, adviser to the Commerce Minister, said for one portion of wheat importers must also buy three portions of local corn at THB 8/kg, roughly USD 1.18/kg. Thai corn farmers are struggling following a significant drop in corn prices. Feed producers prefer wheat to corn because the former is cheaper. Some 2.8 million tonnes of wheat were imported from January-September this year, compared to 3.9 million tonnes last year. Domestically grown corn with moisture content of 14.5% is priced at between USD 0.99 and 1.02/kg. Chicago wheat is USD 0.78/kg.
|US meat exports make headway in Asia |
[14 November 2016] US beef exports were up 28% to South Korea and 16% to Japan from January to August, and pork exports to China were up 94%, said the US Meat Export Federation. Joel Haggard, Senior Vice President for the Asia Pacific region said US beef is in a stronger position than it was a couple of years ago. He acknowledged that the gains were mostly due to low cattle and beef export supplies in Australia and rising prices of Australian beef. Asia remains a battlefield for pork, due to the European Union’s market share and competitive prices, especially for frozen meat. But the US is making great progress on the chilled side, he said.
|Japan’s broiler market to set new record highs|
[14 November 2016] Japan’s 2016 broiler meat production, consumption and importation are on pace to break record highs, according to US’ Foreign Agricultural Service’s Global Agricultural Information Network (GAIN) report. Domestic broiler meat production in Japan is projected to climb 2% to 1.4 million tonnes for 2016. Total consumption also is projected to rise 2% to 2.6 million tonnes, while imports are projected up 1% to 945,000 tonnes in 2016, GAIN projected. Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) estimates that households, as measured by retail consumption data, consume about 40% of total broiler meat in Japan. Food service, ready-to-eat (RTE) food businesses, and other institutional end-users consume more than 50%, with the remaining volumes used for processed products.
|Learn about opportunities for growth in Asia’s animal protein markets|
[11 November 2016] Animal Protein in Asia 2022, another stellar conference by Asian Agribiz, will examine the significant opportunities for growth in Asia’s animal protein markets that will emerge over the next five years. The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). This is a boutique conference that will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register here.
|Uncertainty in meat market over Trump's victory|
[11 November 2016] The Asian and US industries have reacted with mixed sentiment to the future of meat exports from the US following Donald Trump’s victory in the US elections. On both ends of the globe, analysts, producers and meat industry professionals remain cautious based on Mr Trump’s views towards free trade. While on the campaign trail, he said he would scrap the Trans-Pacific Partnership (TPP) and seek to negotiate with individual countries to better ensure fair unilateral trade agreements. Colin Woodall, senior vice president of government affairs for the National Cattlemen’s Beef Association (NCBA) told Meatingplace: “TPP is our No. 1 ask. We’re losing USD 400,000 a day without it.” If the US stalls in this area, the market share is quite likely to be taken up by Australia, New Zealand and the EU, throwing US grain and meat producers into a quandary with excess supply.
|Vietnam to export processed chicken to Japan|
[11 November 2016] Vietnam will be able to export processed chicken for the first time, initially to Japan, after receiving the green light from the government and the Department of Animal Health as well as overseas investors. Vietnam's Ministry of Agriculture and Rural Development (MARD) has approved the surveillance plan for processing chicken for exports. The first company to participate in this project is Koyu & Unitek Ltd, which is completing the construction of its poultry processing plant that complies with Japanese standards. “We appreciated MARD's timely issuance of the surveillance plan for processing chicken for exports,” said James Hieu Nhon Khuu, Koyu & Unitek Director General.
|ACI Godrej receives USD8.3m of fund for capex|
[11 November 2016] Standard Chartered Bank has arranged a USD 8.3 million Zero Coupon Bond for ACI Godrej Agrovet, a joint-venture company formed by ACI of Bangladesh and Godrej Agrovet of India. The facility is aimed at financing the company's capital expenditure and to refinance its existing debt. ACI Godrej Agrovet, which launched operations in 2004, is a leading poultry, fish and cattle feed manufacturer in Bangladesh.
|Carl’s Jr opens in Cambodia|
[11 November 2016] California-based CKE Restaurants Holdings Inc, the parent company of Carl’s Jr and Hardee’s, announced the opening of the first Carl’s Jr restaurant in Cambodia recently. “This is an important market for our overall expansion strategy and we plan to open 15 restaurants in the country to offer Cambodians a superior burger experience,” said CKE’s International Division President, Ned Lyerly. “In addition to providing the very first quick-service drive-through outlet in the country, Cambodians can also enjoy our wide range of affordably priced, premium quality burgers and chicken sandwiches made fresh to order using high-quality ingredients, including chargrilled 100% Australian beef,” said Mr Lyerly.
|Zhou Hei Ya plans for processing facilities in Hebei and Sichuan|
[10 November 2016] Chinese duck parts processor Zhou Hei Ya International Holdings Co will allocate USD 64.5 million from its IPO proceeds, for additional processing facilities, logistics and storage centres in east, southwest and north China. “The planned processing facilities will include one in Cangzhou in northern Hebei province, and another around Chengdu in southwestern Sichuan,” Media Officer Zheng Beibei told Asian Agribiz. The company currently operates two plants in central China’s Wuhan and Shanghai in the east. It is constructing the second phase of its Wuhan facility and will build a new facility in Dongguan in southern Guangdong province. Trading of Zhou Hei Ya shares is scheduled to debut tomorrow.
|Masan Group invests in 10,000 sow farm|
[10 November 2016] Masan Group will build a 10,000-sow pig farm in Nghe An province which when finished would be the largest in the province. The farm, scheduled to become operational in 2017, will start supplying pork by early 2018 said Masan Group Chairman Nguyen Dang Quang. The modern, biosecure farm is certified with VietGAP and is expected to produce some 230,000 commercial pigs annually. Masan, which has been investing heavily in the country’s animal protein industry, increased its ownership in Vietnam Meat Industries JSC (Vissan) to 24.9 % from 14% in June 2016.
|Aviagen continues investment in growth|
[10 November 2016] Growth has been robust in the poultry sector in the last 3-4 years but Aviagen expects a lull in the next 6-12 months. Addressing guest at the Ross Asia Association meeting in Singapore on Monday, Jan Henriksen, CEO said the company has invested in expansion and facilities to ensure reliable and quality supply, in addition to investing 11% of its annual turnover in r&d. “We have GGP in seven countries and GP in 28 countries. We need this footprint to ensure consistent supply. In the past, disease issues have prevented this,” he said. “We need this because Aviagen sells performance and owners are always keen on investment for better performance.”
|Thaifoods Group reports solid Q3 earnings|
[10 November 2016] Thailand’s Thaifoods Group (TFG) has recorded a net profit of USD 15.20 million in Q3, compared to a loss of USD 7.89 million in the same period of last year, supported by higher revenue from its poultry and swine business. TFG’s revenue from its poultry business climbed 15.24% year-on-year to USD 104.30 million in Q3. The company’s sales volume of chicken increased from 71,424 tonnes in Q3 2015 to 86,811 tonnes in Q3 2016 mainly due to increased capacity for both export and local market. TFG’s revenue from its swine business increased 1.62% year-on-year to USD 39.86 million in Q3. The company’s sales volume of swine increased from 16,599.02 tonnes in Q3 2015 to 19,294 tonnes in the same period of 2016 due to increased capacity.
|Cambodia to develop halal standards|
[10 November 2016] Cambodia plans to develop a nationwide standard for halal products providing regulation to an industry that has until now remained local and small-scale. Malaysian Prime Minister Najib Razak recently agreed to fund a halal-standard training scheme at the request of Prime Minister Hun Sen. The country has also requested technical help from Thailand. Until now, the Highest Council of Islamic Religious Affairs in Cambodia, the country’s leading Muslim community body, has issued halal certification to businesses here, though local butchers say the process has historically relied more on trust than on inspection. Several organisations also print their own guidelines for halal food production.
|Generous discount for young executives at AP2022|
[09 November 2016] Asian Agribiz is offering senior participants at its Animal Protein in Asia 2022 (AP2022) conference a discount of up to 60% for a young executive that accompanies the main delegate. This is aimed at broadening the knowledge base of this executive in the animal protein industry and the significant opportunities for growth that will emerge over the next five years. Special rate for YOUNG EXECUTIVES (must be 35 years or younger) accompanied by a delegate with an early bird, team or regular registration is only USD 500. The conference will take place in Bangkok, Thailand on January 16-17, 2017. For details email firstname.lastname@example.org. To register, fill the form here.
|GFPT's Q3 net profit surges 52%|
[09 November 2016] Thailand’s GFPT has reported a net profit of USD 14.19 million in Q3, up 51.93% over the same period last year, backed by higher sales revenue especially from exports and lower feed costs. GFPT’s revenue increased 4.08% year-on-year to USD 126.21 million in Q3 due to higher revenue from its chicken processing segment and higher sales volume of live broilers to its joint venture, GFN. The company’s total export of chicken processing was 8,000 metric tonnes, up 50.94% from Q3 2015. Meanwhile, revenue from its feed segment dropped 6.84% year-on-year to USD 31.93 million due to higher competition in animal and aquatic feed in Thailand.
|Poultry production expected to improve in all Asian markets |
[09 November 2016] The poultry industry in Asia is trending upwards and production growth is expected to continue in all markets. Speaking at the Ross Asia Association Meeting where Aviagen celebrated 60 years of success with the Ross breed, Rupert Claxton, Strategy Consultant with Gira said South Asia is likely to continue to expand aggressively, with production up by 9%, led by growth of integrators, and improved disease control protocols. He added however, that low global feed costs will be an important factor in ensuring this growth trajectory.
|Russia-Indonesia jv company to set up four fish processing plants|
[09 November 2016] Russia-based Black Space and Indonesia’s state-owned fishery company PT Perikanan Indonesia (Perindo) have agreed to form a jv in fish processing with Black Space controlling 80%. Syahril Japarin, Perindo President Director said the jv company will set up four fish processing units including 300-500 tonne cold storage facilities in Malang, Trenggalek, Aceh and Makassar. The plants will process different types of tuna for the Russian market. Mr Japarin said the jv company has allocated around USD 15.28 million for the project which is scheduled for completion in three years. Once this first project is finished, the jv company plans to set up new fish processing units in six different locations in the country.
|Chinese firm building USD 2.1b Special Agri Economic Zone in Cambodia|
[09 November 2016] China’s Tianrui Group hopes to break ground soon on a USD 2.1 billion special economic zone close to Phnom Penh. The area will be dedicated to processing agricultural products for export, a first for the country. “Our team has studied the agricultural industry here and we found that Cambodia does not have large-scale storage facilities to serve the agriculture sector and, in particular, there is no company that can process agricultural products on a large scale for export,” Shen Chen, CEO of the group’s local subsidiary, Tianrui (Cambodia) Agriculture Corporation, said. He added that the company will also enter into contracts with local farmers to buy their products.
|Thai feed producers to buy 300,000 tonnes of corn surplus in November|
[08 November 2016] Thailand’s Ministry of Commerce recently held a meeting with feed producers and related parties and concluded that feed producers will buy around 300,000 tonnes of corn surplus in November, solving corn supply problems. The current corn harvest season has seen larger than expected supply of corn in the market. Corn output is expected to be 800,000 tonnes in November, while corn output was 1.3 million tonnes in October and 1 million tonnes in September. Meanwhile, the feed industry needs 500,000 tonnes of corn each month. Bangkok Produce under Charoen Pokphand Group will buy 150,000 tonnes in November, while Betagro will buy 40,000 tonnes, Cargill 20,000 tonnes, and Centaco 15,000-20,000 tonnes. During the post-harvest season, corn output is expected to decrease to 100,000 tonnes in January 2017.
|CP, Japfa record positive performance in Q3|
[08 November 2016] Indonesia’s largest poultry integrator Charoen Pokphand Indonesia recorded a positive performance in the third quarter this year. The company’s sales reached USD 2.16 billion, up 27.2% from the same period of last year. Meanwhile the net profit was USD 190.29 million, a 99.2% increase from the same period last year. On the other hand, Indonesia’s second largest poultry integrator Japfa Comfeed Indonesia also recorded a good Q3 result. During the period, the company’s sales and net profit was USD 1.57 billion (a 10% increase) and USD 139.08 million, respectively. Of these sales figures, sales of feed, DOC, cattle and consumer products increased 8.4%, 31%, 33% and 4.9% respectively.
|China’s Huatong Meat to build new facilities with IPO fund|
[08 November 2016] Zhejiang Huatong Meat Products Co, a Chinese livestock integrator in which CP China and Conti Feed own a 5% stake each, said it plans to build new pig and poultry processing facilities that are estimated to cost USD 64 million. The company is seeking a Shenzhen IPO to fund the expansion. The new facilities will include a pig slaughterhouse with annual capacity of 500,000 heads, a 10,000-tonne pork processing plant, and a poultry processing plant to handle 36 million birds a year. Huatong’s products include feed, fresh pork and chicken, Jinhua ham, as well as braised meat.
|Indonesia to set up fish feed plant in North Sumatera|
[08 November 2016] Indonesia’s Ministry of Fisheries and Marine Affairs has said that next year it will set up an aqua feed plant in Medan, North Sumatera. Slamet Soebjakto, Director General of Aquaculture said the plant, which will have a capacity of 3000 tonnes of floating feed per month, is set to produce feeds for freshwater fish, brackish water fish and mariculture fish. This project, which will cost the ministry around USD 2.06 million, is aimed to help fish farmers with cheaper feed. Mr Soebjakto said the plant will be operated by Indonesia’s state-owned fishery company PT Perikanan Indonesia. “This is a pilot project. If it runs well, we will consider setting up more in Java and Kalimantan,” he revealed.
|Indian carabeef sales in Indonesia cause anxiety to Australian cattlemen|
[08 November 2016] Sales of Indian frozen buffalo meat or carabeef which started last month, in Indonesia are already causing anxiety among Australian ranches that supply Indonesia with more than half a million live cattle a year. “The threat to Australia’s market share is real and we’d be foolish to think otherwise,” said Tracey Hayes, Chief Executive of Australia’s Northern Territory Cattlemen Association. “Indian buffalo meat is a much cheaper product.” Australia relies on Indonesia to buy more than half its live cattle exports – earning USD 417 million from the live trade last year. Indian buffalo meat sells for as little as the state-food agency set price of around USD 5/kg in so-called traditional markets in Jakarta, compared with about USD 8.8/kg for beef from Australia in more upscale farmers’ markets.
|India’s Aavishkaar to invest in Indonesia’s agriculture sector|
[07 November 2016] Indian venture capital company Aavishkaar Venture Management is looking to raise around USD 100-150 million for Indonesia, and is hoping to invest in 10-15 Indonesian companies within the next five years. Vineet Rai, CEO said the company expects to close 5-6 deals in the next year or two. “We are looking at various sectors such as education, health, energy, agriculture, poultry and dairy,” he said. In November 2015, the company announced its first investment in Indonesia – an undisclosed funding in PT Bali Seafood, a subsidiary of North Atlantic Inc. North Atlantic operates in the fishery sector, sourcing seafood from Indonesian artisanal fishermen and marketing frozen products to supermarkets and restaurants in North Africa and Asia.
|EU to remain China’s main supplier of pork |
[07 November 2016] While the EU will continue to be the dominant supplier of pork to China due to the country’s 100% ractopamine-free pork requirement and the high number of accredited EU plants, volumes will be lower than the expected 1.9 million tonnes this year, Rabobank said in its Pork Quarterly report 2016. EU’s pork production is seen to decline by 1.5% from Q4 2016 until mid-2017, and this would put pressure on prices. This will present opportunities for lower priced pork from other exporting countries, such as Canada, the US and Brazil.
|India’s revision on poultry import restrictions does not satisfy US|
[07 November 2016] India has not been able to satisfy the US with its implementation of the World Trade Organisation’s ruling on poultry import restrictions, despite a second round of revision in rules to address the US’ concerns. “The US, at the latest meeting of the dispute settlement body (DSB), said India’s measure to check bird-flu may still be substantially more trade-restrictive than the one based on recommended international standards. It also accused the country of not cooperating fully on the matter,” said an official privy to the discussions. The US also did not withdraw its request to the WTO for authorisation to impose a retaliatory fine of USD 450 million annually against India. India, however, asserted that the disputed measures were no longer in force. It said that its revised package of measures complies with the DSB ruling as these recognised disease-free areas.
|Indonesians told to work hard to achieve food self-sufficiency|
[07 November 2016] Indonesia’s President Joko Widodo has urged his people to work hard to overcome the country’s need for food imports. “Last year, we imported rice, soybean, corn and many others,” he said during a World Food Day event in Central Java recently. “We have to solve this problem. We are sure in the future Indonesia will reach self-sufficiency in food.” Mr Widodo said he is sure that if everyone worked hard to increase production, Indonesia will not need to import food anymore. He expressed his hope that Indonesia would not have to import corn by 2018. He expected regions like East Nusa Tenggara, West Nusa Tenggara, Bima, Gorontalo, and East Java to increase food productivity.
|US tops South Korea’s beef import list|
[07 November 2016] The US has become South Korea's largest source of beef imports in October as more consumers prefer American products as an alternative to the expensive local supply, US quarantine data showed. South Korea imported a total of 10,551 tonnes of American beef from October 1-20, surpassing Australian imports of 8382 tonnes over the same period, according to the data compiled by the US Meat Export Federation. South Korea halted imports of US beef in 2003 in the wake of a mad cow disease outbreak and lifted the ban in late 2008, which led to mass demonstrations among people in fear of their safety. Although America's beef market share fell behind other imports in the early years of resumption, it has emerged as a popular alternative to expensive local beef over the past few years.
|A definitive conference for meat producers, processors and retailers|
[04 November 2016] Animal Protein in Asia 2022 is the definitive conference for poultry, pork and fish producers, meat processors and retailers planning to grow your companies over the next five years. The conference organised by Asian Agribiz will take place in Bangkok, Thailand on January 16-17, 2017. It will field reputed industry speakers who will tackle four major challenges namely, Harnessing e-commerce to sell meat; Staying in front of eating trends; Developing the next big meat product and; Regional meat opportunities. For details email email@example.com. To register, fill the form here.
|Egg prices in Indonesia drop due to seasonal low demand|
[04 November 2016] The price of eggs in some regions in Indonesia has been below production cost since end September. Singgih Januratmoko, Chairman of the Indonesian Poultry Farmers Association (Pinsar Indonesia) said the farm gate price of eggs per kg in West Java and Central Java, for instance, currently stood at USD 1.22 and USD 1.15 respectively, while the production cost is around USD 1.34. “Current demand for eggs is low, while production increased by 5-10% since September. However, we expect the price will be corrected in November,” he said. Meanwhile, Ki Musbar, Coordinator of the National Layer Farmers Forum noted that at consumer level the price of eggs per kg in Java is around USD 1.38-1.53, while in Greater Jakarta the price is around USD 1.76. Mr Musbar added that farmers’ production cost increased to USD 1.34 from USD 1.22 as local corn price increased to USD 0.34 per kg.
|Chinese PE fund to cut stake further in WH Group|
[04 November 2016] Chinese private equity firm CDH Investments said it is selling one billion shares, equivalent to a 6.83% stake, in WH Group to independent third parties. Its holding will be reduced to 12.94% following the deal, though it has also indicated an option to cut a further 4.76% stake in the Chinese parent of Smithfield Foods. In August, CDH sold 10.62% of WH Group, including a 1.99% stake to a unit of Rise Grand, an investment vehicle controlled by WH’s management team, boosting the vehicle’s holdings to 36.01%. CDH and its partner Goldman Sachs started investments in WH Group, previously known as Shuanghui International, in 2006, and it’s said to have been seeking to exit.
|Australia ready to compete with Brazil, Mexico in Indonesia’s beef market|
[04 November 2016] Australia is ready to face competition from Brazil and Mexico, new players in the Indonesian beef market, following Indonesia’s decision to diversify its beef import sources. Simon Crean, Australian Livestock Exporters Council Chairman said Brazil and Mexico may reduce Australia’s dominance. Along with India, the two countries offer cheaper beef compared to Australian sources. However, Mr Crean said price is not everything. “To compete with them, it’s not a big problem. Australian products are well received by customers. They are reliable, safe and clean. We have a significant disease-free status that is globally recognised,” he said.
|Vietnam, Cambodia sign trade deal |
[04 November 2016] Vietnam and Cambodia have signed a trade deal expected to boost bilateral trade relations, improve people’s lives, especially those living in the border areas and contribute to economic development. Some 29 Vietnamese goods will be tariff-free when exported to Cambodia, including milk and cream, and meat products, while 39 Cambodian goods such as meat will be tariff-free when exported to Vietnam. According to Vietnam Net the agreement will see Cambodia offer special incentives to Vietnam, which are even higher than those the country has committed to other Asean member countries. Accordingly, Vietnamese goods will be more competitive than products of other countries in the Cambodian market.
|Japan pork production to decline in 2017|
[04 November 2016] Rising domestic consumption has kept pork prices stabilised at higher levels despite a growth in supply in Japan. In its Pork Quarterly Q4 report 2016, Rabobank noted that both local production and imports have increased, growing by 1.9% to 515,000 tonnes and 9.4% to 495,000 tonnes, respectively. Towards the end of the year however, domestic production is expected to stabilise and is seen to decline in 2017 as sow inventory declines. Together with an appreciating yen, this means opportunities for pork exporters.
|Thailand’s BOI to reinstate incentives for feed producers |
[03 November 2016] Thailand’s Board of Investment (BOI) will bring back incentives for feed producers and manufacturers of feed-meal compounds after suspending them in 2014, the Nation reported. BOI Secretary-General Hirunya Suchinai said the board will promote Thailand as a hub for feed production and r&d centre for the industry in Asean. Incentives will be in two stages. First, feed production projects will obtain non-tax incentives including exemption of import duties on machinery. Second, feed projects which invest in r&d and innovation, will obtain additional tax incentives, based on the value of the projects. This will help raise feed production standards in Thailand and add value to feed products, BOI said.
|Vietnam’s Anova Feed moves into the north with new feedmill |
[03 November 2016] Anova Feed Joint Stock Company inaugurated its third feedmill in Vietnam in Pho Noi A Industrial Park in Hung Yen province recently, marking its foray into North Vietnam. Occupying an area of 3 ha, the USD 12.3 million plant will be equipped with a modern European production line and quality management programs. It will be able to produce 250,000 tonnes per year. “The plant is expected to start production by October 2017,” said Anova Director General Bui Phan Phu Loc in a statement. “Establishing a feed production plant in Hung Yen will help Anova serve the northern part of Vietnam more quickly and conveniently,” Mr Loc said.
|Putra Perkasa Genetika plans for duck processing plant|
[03 November 2016] Anticipating an increase in duck partner farmers, Indonesia’s Putra Perkasa Genetika will soon set up a processing plant in Pamulang, South Tangerang to absorb finisher ducks from its partner farmers. “It will have a capacity of 20,000 birds per day and we will use technology either from China or Europe,” Ang Hendra, owner and Managing Director told Asian Agribiz. The processing plant is targeted for operation in Q3 2017. In local markets, a live hybrid duck (around 1.6kg) is priced at USD 2.69, while the carcase (around 1.3kg) is sold at USD 3.84.
|Shandong Fengxiang building 60,000-tonne cooked chicken plant|
[03 November 2016] Chinese broiler integrator Shandong Fengxiang Co said it is building a cooked chicken plant with an annual capacity of 60,000 tonnes, making it one of the largest plants of its kind in China. The new plant, located in Yanggu where the company is headquartered, will have two processing lines targeting quick service restaurants and export markets respectively, with equipment sourced from Japan, the US and EU. Currently, the company is capable of slaughtering 200 million broilers and producing 60,000 tonnes of cooked products a year. It has been a supplier to KFC since 1998.
|Bulog to import 200,000t of corn from US|
[03 November 2016] Indonesia’s Ministry of Trade has recently released an import agreement letter for the State Logistics Agency (Bulog) to import 200,000 tonnes of corn from the US. “Corn suppliers from the US are able to meet the quantity at a more reasonable price,” the agency said. Once the corn arrives in Indonesia, Wahyu, Bulog Purchasing Director said it will be distributed to farmers, “not to feed millers.”
|China 2016 pork production seen down by 5-6%|
[03 November 2016] China’s pork production in 2016 is seen to fall 5-6%, as sow inventory remains low, said Rabobank in its Pork Quarterly 4Q report 2016, and will likely remain low in H1 2017. Recovery is expected to start in H2 2017 as newly established farms come online and due to lower feed prices that would encourage expansion. Nevertheless, given the stricter environmental policies implemented by the government on pig farming, Rabobank projects that production will grow by only 2-3% next year, still below the 2015 levels.
|Opportunity to train young executives at Animal Protein 2022|
[02 November 2016] Asian Agribiz is offering companies in the animal protein sector an opportunity to train their young executives at the Animal Protein 2022 conference in Bangkok, on January 16-17, 2017. Senior management attending the conference are encouraged to bring along their young executives, at a significant discount, to broaden their knowledge base of the animal protein industry and learn of the significant opportunities for growth in that will emerge over the next five years. For details email firstname.lastname@example.org.
|Frozen Pekin duck from Malaysia confiscated in Lampung|
[02 November 2016] Around 2.1 tonnes of frozen Pekin duck from Malaysia was confiscated last month in south Lampung, Indonesia. According to Ade Zulkarnain, Chairman of the Indonesian Native Poultry Farmers Association (Himpuli). “As far as I know, the Ministry of Agriculture never issued an import permit for Pekin duck. So the frozen Pekin duck confiscated in Lampung was illegal. We suspect this illegal practice has been on with the horeca industry in Greater Jakarta as the main market,” Mr Zulkarnain told Asian Agribiz. He said that there is demand for duck meat in the country but the local supply, be it Pekin duck, hybrid duck or local duck, cannot meet demand.
|Thailand bans melamine tainted feed from Vietnam |
[02 November 2016] Thailand’s Department of Livestock Development has banned 60 tonnes of feed from Vietnam after laboratory tests revealed melamine contamination. The discovery prompted authorities to impose stricter checks on shipments from Vietnam. Department Chief Apai Suttisunk said the shipment was dried squid viscera meal imported by two Thai companies. The contaminated substance found in the shipments was cyanuric acid, which is a component of melamine, one of nine harmful chemicals banned in imported feed. The Bangkok Post said the department will inform the Vietnamese government and ask that the manufacturer be banned from exporting products to Thailand. “We have put the manufacturer on the blacklist,” Mr Suttisunk said.
|Vietnam bans US DDGS due to beetle contamination|
[02 November 2016] Vietnam will suspend imports of US DDGS from mid-December due to contamination by the Ballion variety of beetle, said a Vietnamese government directive. The loss of Vietnamese imports would be a big hit for US DDGS suppliers as the country is one of the fastest growing feed grain markets in the world. Prices of the product could also take a hit with markets already smarting after China last month said it would impose anti-dumping and anti-subsidy duties on US imports. “Both shippers and buyers are in a difficult situation as it will be tough to sell a cargo rejected by Vietnam because it is contaminated by the beetles to a third country,” said a trader at a foreign firm in Ho Chi Minh City.
|Australia to invest in Indonesia’s cattle breeding industry|
[02 November 2016] Australia aims to invest in Indonesia’s cattle breeding industry, with a readiness to adapt to the latter’s new “5-plus-1” import policy. Enggartiasto Lukita, Indonesia’s Trade Minister said under the new policy, the government is committed to import one cow intended for breeding for every five cattle imported for feedlotting. Mr Lukita further said as the main beef supplier to Indonesia, Australia has to find ways to adapt to the new policy. “We have invited Australia to invest in our breeding and cattle feed industry, as well as in the processed beef industry,” he said. Meanwhile, Simon Crean, Australian Livestock Exporters Council Chairman said as a start, land suitable for breeding farms will have to be identified. “There should be a partnership between government and business entities before we move ahead,” said Mr Crean.
|South Korea pork production on upward trend|
[02 November 2016] Pork production in South Korea is on the rise, putting pressure on farm, wholesale and retail prices and resulting in a “generally depressed pork market,” Rabobank said it its Pork Quarterly Q4 report 2016. Rabobank sees this situation to continue next year as both hog and sow herd has grown. As such, pork supply will continue to grow, putting further pressure on prices and leading to a further decline in imports in 2017 and perhaps beyond.
|New Hope Indonesia opens new feedmill in Lampung|
[01 November 2016] New Hope Indonesia inaugurated its new feedmill in Lampung province last week. Constructed on 3ha of land, the plant has a capacity to produce 10,000 tonnes of broiler and layer feeds per month, said Timbul Sihombing, Chief Marketing Officer. The feed will be marketed in the southern region of Sumatera. The plant, which is the company’s second feedmill in Sumatera Island, is equipped with a laboratory, a warehouse for feed raw materials and silos. Mr Sihombing said the plant will absorb local corn from the region.
|CPF set up two new subsidiaries in China and Taiwan|
[01 November 2016] Thailand’s Charoen Pokphand Foods (CPF) said it has established two new subsidiaries, Rui Mu Foods Company Limited in Taiwan and C.P. Food (Hengshui) Company Limited in China. Charoen Pokphand Enterprise (Taiwan), a subsidiary of CPF, hold a 52% stake in Rui Mu Foods, while a Taiwanese national hold 48%. Rui Mu Foods engages in layer-chicken business in Taiwan. Meanwhile, CP Food Investment Limited wholly owns C.P. Food (Hengshui) which engages in manufacturing and sale of value added processed food in Hebei, China. CPF also set up a new associate company, Siam Rivea in Thailand which operates restaurant businesses in Thailand, and CPF owns a 30% stake in the company.
|Vietnam pork producers face pressure from imports|
[01 November 2016] The EU-Vietnam Free Trade Agreement will see import tariffs on meat from the EU to Vietnam reduced within 3-7 years. Similarly, the country opened its market to Russia and Canada. According to Rabobank, the growth in the supply of cheaper foreign pork meat in Vietnam is likely to put more pressure on local producers, who are already reeling from a supply/demand imbalance due partly to an expansion earlier this year that resulted when Chinese traders began buying large numbers of live pigs due to the shortage in China. However, by August shipments stopped leaving producers with too many pigs for the local market.
|Good sales of Indian carabeef in Indonesia puts pressure on Australian beef |
[01 November 2016] Increasing sales of Indian carabeef (buffalo meat) in Indonesia are undercutting Australian beef, according to a report. BMI Research has revealed the export price for the meat is just USD 3.1/kg, compared to the Australian boxed beef export price of USD 4.4/kg. The figures are worrying for Australian exporters who have watched Indonesia open its market to frozen buffalo cuts just this year. The 80,000 tonnes of carabeef the country wants to import in 2016 is more than double the amount of Australian boxed beef imported in 2015. Aurelia Britsch, BMI Research Head of Commodities, said: “There is not enough meat in the country and the government is keeping quite a tight grip on the import level. So the fact that India can export large quantities of cheap beef will definitely be an advantage in Indonesia.”
|China Jan-Sep pork output down 3.6% |
[01 November 2016] China generated a pork output of 36.9 million tonnes in the first nine months of 2016, down 3.6% from a year earlier, said the National Bureau of Statistics. Total meat output, which include beef, mutton and poultry also, were down 1.1% year-on-year at 58.33 million tonnes during the period. The Bureau did not provide quarterly figures, but its earlier announcements showed that the pork decline was at 3.9% in the first half and 5.9% in the first quarter, indicating a slow recovery of the sector. Meanwhile, China’s stock of live pigs stood at 431.63 million heads at the end of September, up from 402.03 million at end-June, according to the Bureau.
|H5N8 outbreaks expand to southern India|
[01 November 2016] India last week reported a fourth highly pathogenic H5N8 avian flu outbreak, signalling rapid spread of the virus, this time into the southern Kerala state. According to a Times of India report the virus was confirmed in five places in ducks. The findings were confirmed by the State Disease Investigation Laboratory in Bhopal. Health officials have established 20 rapid response teams to battle the virus. The findings follow confirmations of H5N8 in birds at two zoological gardens in New Delhi and a similar facility about 100 miles southeast of there in Madya Pradesh state.
|China’s Wellhope invests in the Philippines|
[31 October 2016] Chinese feed miller Wellhope Agri-Tech, in which Royal De Heus of the Netherlands holds a 9.63% stake, said it has signed an agreement with four Filipinos to set up a joint venture in Tarlac province for pig farming and feed milling. Initial investment is about USD 9 million, and Wellhope will take a 40% stake. “The new JV will sharpen our competitive edge in this market by combining the partners’ technology and customer base,” Wellhope said. The company currently has three overseas feedmills in North Korea and Nepal. It has also signed to set up another two JVs in India and Iran.
|Thai authorities urge off-season rice farmers to plant corn|
[31 October 2016] Thailand’s Betagro and Bangkok Produce under Charoen Pokphand (CP) Group recently signed a memorandum of understanding (MOU) with the Department of Agricultural Extension, Thai Seed Trade Association and Bank for Agriculture and Agricultural Cooperatives, urging off-season rice farmers to plant corn in 23 provinces across the country. Under the MOU, all parties will support rice farmers to plant corn, instead of growing a second rice crop in 2016/2017. Paisarn Kruawongvanich, Executive Vice President of Bangkok Produce said the private sector will educate farmers about corn planting technology, cost-saving measures and improving production efficiency. “Thai authorities aim to reduce rice planting areas. There is too much supply, leading to low prices,” Mr Paisarn added.
|Gapuspindo discusses beef cattle import with Mexican counterpart|
[31 October 2016] Didiek Poerwanto, Vice Chairman of the Indonesian Beef Cattle Businessman's Association (Gapuspindo) said the association recently met a group of beef cattle businessmen from Mexico to discuss the import of breeding and feeder cattle. According to him, if the Mexican businessmen are able to offer lower than USD 3 per kg of live weight, Indonesian feedloters will choose to buy feeder cattle from Mexico. On shipment, Mr Poerwanto said that it takes 21-25 days to ship cattle from Mexico to Indonesia. “The Mexican businessmen should ship in large quantities if they want their cattle price to be competitive.”
|Corn farming could yield high profits for Malaysia|
[31 October 2016] Malaysia’s Agriculture and Agro-based Industry Ministry believes corn farming has the potential to garner high profits for the country. This is prompting research and development in the area. Its minister Datuk Seri Ahmad Shabery Cheek said the country would be emulating success stories on corn-farming from Thailand, Indonesia and the Philippines. “If these countries are already profiting from it, this means that we can do the same. There is thus no issue of the compatibility of corn-farming on our land.” Currently in the introductory process at the moment, the minister targets that the country would be successful in the farming of its own corn seeds within two to three years’ time.
Regional dairy update
[31 October 2016]
Creamline Dairy to set up new milk processing plant
India’s Creamline Dairy Products will be setting up a new plant in Vishakapatnam, Andhra Pradesh to expand its capacity and extend its distribution network. P Gopalakrishnan, CEO said the plant will have a capacity to process 100,000 litres of milk per day. The outlay for the project will be around USD 4.5 million. Creamline is a subsidiary of Godrej Agrovet and has a production capacity of around 710,000 litres per day and a milk drying facility of 150,000 litres per day. Mr Gopalakrishnan added that the company will also increase its market reach by increasing the number of exclusive outlets.
Vinamilk is now retailed online
Vietnam Dairy Products Joint Stock Company (Vinamilk) recently launched its online retail channel via Vinamilk eShop - Giac Mo Sua Viet or The Dream of Vietnamese Dairy Products, making it the first fast moving consumer goods (FMCG) company in Vietnam to do so. Kantar Worldpanel reports that FMCG online sales make up 3.9% of sales worldwide. In Vietnam it is only 0.2%, which means there remains a large room to grow in this segment. It is estimated that Vietnam’s e-commerce sector will see a five-fold increase by 2020. Last year the total value of sales chalked up was USD 4 billion.
Goa Dairy launches protein-rich feed for dairy cattle
Aimed at providing local dairy cattle farmers with good quality cattle feed, India’s Goa Dairy recently introduced protein-rich fodder called ‘Supreme’. The feed is provided to farmers at a subsidised rate of USD 0.25/kg. The feed contains 23-25% protein, enabling dairy cows to produce above 10 litres of milk per day. “A cow can produce one litre of milk with a 300g dose of Supreme, as compared to the 500g of regular feed given for the same amount of milk, thereby cutting costs,” said NC Sawant, Goa Dairy Managing Director.
Foreign strategic investors want to buy bigger portion of Vinamilk
Foreign strategic investors may only be interested in buying Vietnam Dairy Products JSC (Vinamilk) in bulk instead of piecemeal portions as planned by State Capital Investment Corporation (SCIC). The Vietnam Association of Finance Investors (Vafi) noted this in a document submitted to the Ministry of Finance and SCIC, to propose an alternative plan for the Vinamilk's divestment. Vafi said this is because minority stakes holders will not be able to join management boards. Fraser & Neave Ltd, owner of an 11% stake in Vinamilk, may be the only foreign investor joining the auction because buying 9% will increase its share to 20% and make it the controlling shareholder of Vinamilk.
Creamline Dairy launches Vitamin D fortified milk
Creamline Dairy Products Limited, a dairy player in south India and subsidiary of Godrej Agrovet, has announced the launch of ‘Enrich D’ under its brand Jersey, a homogenised and pasteurised milk fortified with vitamin D. P Gopalakrishnan, CEO said milk is an important part of the family diet in Chennai. However, 80% of Indians are known to be vitamin D deficient. “Value-added milk products are the key growth drivers and as the demand for these products is growing rapidly, the launch of Enrich D will enable Creamline to expand its footprint and ensconce its presence in Chennai,” he said.
Indian dairy companies expand their cold chain facilities
The growth in demand for high-profit yielding value-added milk products in India is driving dairy companies to expand their cold chain infrastructure. This was not possible earlier with the low-margin liquid milk segment that dominated the product portfolio for dairy companies. Companies are now spending nearly a third of their capex on cold chain and the investments are growing at 15% year-on-year. Chennai-based Hatsun Agro Products announced a USD 25.4 million investment in setting up of cold chain infrastructure. Similarly, Hyderabad-based Dodla Dairy has more than doubled its investment this year to around USD 2.2 million in cold chain. Other dairy companies like Amul, Kwality and Prabhat are also making significant investments.
|CPF acquires a 70% stake in China’s Fujian Sumpo|
[28 October 2016] Thailand’s Charoen Pokphand Foods (CPF) said it recently spent 48.26 million to acquire a 70% stake in China’s Fujian Sumpo Foods Holding Co Ltd. (Fujian Sumpo). Chia Tai (China) Investment, a subsidiary of CPF, purchased this from Sumpo International Holdings Limited and Longyan Huiren Investment Co Ltd and Fujian Sumpo will become an indirect subsidiary of CPF. Fujian Sumpo engages in manufacturing and trading of animal feed, farming and trading of poultry as well as processing and trading of chicken meat products in Fujian, China. “The acquisition will allow CP Pokphand (CPP) to expand its agri-food business in China and further reinforce CPP’s leading position in the agri-food industry in China,” it said in a filing to the Stock Exchange of Thailand.
|China to continue driving global pork industry|
[28 October 2016] China will continue to drive global hog prices in the last quarter this year and well into 2017, with pork imports seen to become a more important supply source for the Chinese market, Rabobank said it its Pork Quarterly 4Q report 2016. The country’s pork production is expected to drop by 5-6% in 2016, higher slaughter weights and rising productivity will help offset the decline. “Based on the low sow numbers, production pressure is expected to continue in 2017,” Rabobank said. “This will support a price rebound until the Chinese New Year at the end of January 2017, and it offers trade opportunities” for pork exporters.
|Indonesia’s corn stock declines|
[28 October 2016] Corn stock at many feed millers’ warehouses in Indonesia is low, according to Musbar, Forum Coordinator of the National Layer Farmers Association. “Their stock will finish this month [October],” he said, adding that: “the situation is getting worrying as the new season for rice planting will start soon. Only a few millers have secured corn stocks for November from local supplies.” As a result, Mr Musbar said the price of local corn once touched USD 0.34/kg. For layer farmers, this price increase will affect their profit margin. “So with this situation, will challenge the Agriculture Ministry's statement that local corn supply is sufficient until the end of this year,” he said.
|Guangdong Wens eyes M&As in China’s white broiler segment|
[28 October 2016] Guangdong Wens Foodstuff Group, the largest pig and yellow-feather broiler producer in China, said it would enter the domestic white-feather broiler market by merging and acquiring some players in the segment. “The white chicken segment is suffering an overcapacity, and some players will eventually exit. We will enter the market in north China at an appropriate time,” Qin Kaitian, Vice President of Poultry Operations, told institutional investors during a road show. Wens enjoys about one fifth of China’s yellow chicken market. In 2015, it produced 744 million native broilers, and production is expected to hit 860 million birds this year, according to Mr Qin.
|Vasep targets USD7b for seafood exports this year|
[28 October 2016] Vietnam’s seafood exports are expected to reach USD 7 billion this year, a year-on-year increase of 5.5%, according to the Vietnam Association of Seafood Producers and Exporters (Vasep). In an article from Vietnam News, Truong Dinh Hoe, General Secretary, said the sector faced challenges early in the year. Then a balance in supply and demand in the world market helped the prices of some seafood products to recover. Exports of certain items like shrimp and tra fish have increased this year, though growth was not high, he said. “We have high expectations for exports in the last months of the year. It will be a foundation for us to prepare better for 2017.”
|Bangladesh shrimp exports pick up pace|
[28 October 2016] Shrimp exports picked up in the first quarter of fiscal 2016-17 after remaining on the downturn over the past two fiscal years thanks to lower production in the major producing countries, Bangladesh’s industry operators said. The DailyStar reported that export earnings from shrimp rose 14% year-on-year to USD 124 million in the July-September period of the fiscal year, according to data from the Export Promotion Bureau. Kazi Belayet Hossain, Managing Director of Sobi Fish Processing, said demand for black tiger has particularly increased in the EU and the US. Mr Hossain is also a former President of the Bangladesh Frozen Foods Exporters Association.
|Thailand’s CPF buys domestic corn directly from farmers|
[27 October 2016] Thailand’s Charoen Pokphand Foods (CPF) will buy corn directly from local farmers from September 2016 to March 2017, said Paisarn Kruawongvanich, Executive Vice President of Bangkok Produce under CP Group. Thailand’s corn harvest this season has been good. CPF’s direct corn buying program will help support corn prices and guarantee farmers a market for their produce, he said. CPF is buying domestic corn at 14.5%-30% moisture at USD 0.23/kg for corn at 14.5% moisture in the Bangkok metropolitan region. CPF’s corn buying prices will vary depending on the location and logistics costs. CPF has 15 feedmills across the country, all of which have joined the program. Mr Paisarn expects each feedmill to directly buy 10,000 tonnes of corn per month from farmers.
|Evonik breaks ground for 2nd DL-methionine plant in Singapore |
[27 October 2016] Strong demand for DL-methionine in Asia saw Evonik Industries commence construction of a second plant in Singapore. The USD 500 million plant will have an annual production capacity of 150,000 tonnes, doubling its capacity in the country and making it the group’s largest production site in the world. By 2019, when this plant becomes operational, the group hopes to produce 730,000 tonnes worldwide. Evonik sells DL-methionine under the brand name MetAmino. “Our methionine complex, which came on-stream in late 2014 on Jurong Island, is a success story. This led to our decision to build a second plant next to it,” said Klaus Engel, Chairman of the Executive Board of Evonik.
|Alliance vows to boost China's per capita consumption of chicken|
[27 October 2016] The China Broiler Alliance said it targets to boost the nation’s per capita annual consumption of chicken to 12kg in five years, up from about 7kg currently. The Alliance, consisting of 36 major white-feather broiler producers and processors that dominate almost all production of parent stock and about half of the chicken output in China, also pledged to guarantee food safety with proper use of antibiotics and a traceability system, while improving animal welfare, environment sustainability as well as employee benefits. Founded in 2014 to reduce the sector’s overcapacity by limiting GP imports, the Alliance is now chaired by Fujian Sunner Chairman Fu Guangming, with Li Jinghui, Senior Vice President of DaChan Food, as President.
|Indonesia records 12 AI cases as of end August|
[27 October 2016] Indonesia’s Ministry of Agriculture has released new report on avian influenza (AI) cases in the country where the data was collected through SMS gateway and surveillance by veterinary agencies. As of August 31, 2016, the ministry reported 12 cases of AI in 12 villages, nine regencies and eight provinces. Central Kalimantan topped the list with three cases, followed by West Java with two cases and also Central Java with two cases. Meanwhile, Banten, Jogjakarta, Bangka Belitung archipelago, East Kalimantan and South Sulawesi, recorded one case each. The report also mentioned that there were no human infections during the period.
[27 October 2016]
Producers satisfy epicurean cravings with premium sausages
Generally regarded as healthier and leaner, premium sausages are seeing a growth in demand across Asia as upscale restaurants flourish and consumers cultivate expensive tastes. Players in the industry shares their insights into the topic with ASIAN AGRIBIZ.
Sausages that are marked premium and halal
Seeing a gap in the market for halal gourmet-standard meat products prompted Malaysia’s Victoria Crest Sdn Bhd to produce premium sausages made from prime cuts of meat – 100% chicken breast meat, New Zealand lamb shoulders and Australian topside rump steaks. “Our casings are natural lamb casings and certified halal,” said Denis Dimond Rawlins, Director. Victoria Crest supplies to hotels and restaurants, and has a retail line for local supermarkets. Mr Rawlins said there is potential for its products internationally as Asians nurture a taste for higher quality sausages, a greater variety of products and flavours, and healthier options. “The issue initially will be the cost of the products as quality comes with a price. Growth will initially be slow but I see this accelerating.”
The category is seeing fast growth
In the Philippines demand and sales of premium sausages, as with other processed meat products, have been growing at double digit rates for the past few years. While the country’s giant meat processors are also manufacturing premium sausages, Cotton Sevilla, owner of Sevilla & Sons Sausages Co, said the market is dominated more by small and medium-scale producers. In Thailand Charoen Pokphand Foods (CPF), which said the category has growth potential, uses similar standards for its Bucher brand of sausages as it does for its other products. It uses quality raw material from its farms, which are free of growth promoters, beta-agonist, and antibiotics.
No standard definition of premium sausages
While there is no standard definition of what premium sausages are in Asia, Alvin Ng, Managing Director of Bayerische Tech Sdn Bhd, rebuilder and seller of used food processing equipment in Malaysia, said these sausages contain a high meat content which leaves little room for fillers such as starches and soy protein. They are made from ground meat, sometimes natural ingredients and no preservatives. “The high meat content causes a meaty mouth feel, which includes crunchiness,” he said. A manufacturer can also call a product premium by virtue of the way it is made. Some are handcrafted, while others use some automation.
Wagyu treat for Indonesian sausage fans
Jakarta-based meat processor Libra Bogatama Sentosa, subsidiary of Bogatama Group, is producing premium sausages made from 99% Australian wagyu beef. “We use the bolar blade of the animal as its texture and fat is perfect for further processed products like sausages. Sometimes we also use the knuckle if the supply of bolar blade is limited,” Vivien Felicia, Marketing Communication Manager of Bogatama Group, said. The product has no flour, preservatives and colourants. The cooked sausages contain chicken fat as an adhesive. Halal collagen casings are used. “People in Jakarta are health conscious. They are also selective and demanding. They want to know the ingredients of the products they consume,” she said, adding that sales look promising.
Shuanghui invests in promoting high-temperature Western-style sausages
At a Carrefour in Kunming, China, Shuanghui sausages make up more than three quarters of the category’s sales, said Zhao Chunyan, Perishables Department Sales Manager at the Guangfu Road store. Most of the sausages are Chinese high-temperature products with a six-month shelf life. Although the American-style low-temperature sausages, recently launched by Shuanghui, tastes better, Ms Zhao said more promotion is needed to educate consumers to recognise them. Low-temperature products account for 30% of Shuanghui’s packaged meat sales. This will change as the company switches from medium and low-end to premium sausages, and from Chinese to Western products. The company said it will invest in marketing new products.
Read a complete report in Asian Meat Magazine, November/December 2016.
|Haima wreaks havoc on Philippine agri and fishery sector|
[26 October 2016] The Philippines recorded agricultural losses amounting to at least USD 226 million from Supertyphoon Haima which hit the country last week. The Department of Agriculture is still assessing the full impact of the typhoon. Hardest hit is Region 2, a major corn production area, where losses to corn crops have been estimated at over 5700 tonnes worth USD 13.3 million. Losses from the livestock sector are currently pegged at around USD 146,000.
|Burger King aims for 180 branches in Thailand in five years|
[26 October 2016] Burger King (Thailand), a unit of Minor Food Group, aims to have 180 Burger King restaurants in Thailand in five years, up from 67 now, the Nation reported. Prapat Siangjan, General Manager of Burger King (Thailand) said recently that the company plans to open five more Burger King restaurants by the end of this year and to open around 15 new restaurants next year. Burger King's (Thailand) expansion plan is expected to increase its sales from around USD 48 million in 2016 to around USD 66 million in 2017 and USD 114 million in 2021. The company is planning to open new restaurants in first-tier locations, such as inner Bangkok and in second-tier locations such as southern and eastern provinces.
|Vissan lists on UPCoM|
[26 October 2016] Viet Nam Meat Industries Company, or Vissan, recently listed more than 80.9 million shares on the Hanoi Stock Exchange’s UPCoM, the market for unlisted public companies, at a reference price of USD 3. Vissan launched an initial public offering on March 7. Under current regulations, before official listing, the company must be an unlisted public company. Vissan holds a 65% share of the sausage market, a 40% share of the frozen food market, a 30% share of meat pies and a 20% share of the canned food market. It has more than 130,000 outlets across the country. It earned more than USD 166.8 million in revenue and a pre-tax profit of USD 6.8 million last year.
|China soybean imports continue grow|
[26 October 2016] A recovery in swine production and steady growth in the poultry sector, and subsequent higher demand for feed and protein meal, will see China’s soybean imports reaching a record of 86 million tonnes in 2016-17, up from the estimated 82.5 million tonnes in 2015-16, the US Department of Agriculture’s Foreign Agricultural Service said. The soybean import growth rate, however, is expected to slow due to a forecasted recovery in local production and China’s sale of oilseed stocks and reserves. Lower imports of DDGS after the implementation of anti-dumping duties has increased demand for soybean meal and could support growth in imports.
|Chicken prices in Delhi may decline further if AI cases continue|
[26 October 2016] Reports of three cases of avian influenza (AI) in Delhi, India are expected to result in a plunge in chicken prices as people have stopped buying chicken leading to a stockpile. Traders said this was just the beginning and if the bird flu threat continues prices may fall by more than 50%. For now, the price of live chicken has dropped from USD 1.19/kg to USD 1.10. The Delhi government last week put poultry farms, wholesale markets and avian hot spots under watch after the death of 10 migratory birds at the capital’s zoo sparked fears of a bird flu outbreak.
|Indonesia to develop fish processing industry in eastern regions |
[26 October 2016] Indonesia plans to develop a fish processing industry in the eastern regions. Susi Pudjiastuti, Minister of Fisheries and Marine Affairs said the price of fish in eastern Indonesia is cheap compared to other regions. For instance, the price for one processed mackerel in eastern Indonesia is only USD 0.23 while the same fish will sell for USD 2.30 in Java. Therefore, Ms Pudjiastuti said that the government must take steps to increase the number of processing plants, especially in the eastern regions, and provide better logistics that will allow fish products to be delivered in and out of the market easily.
|Thaifoods Group sees growth potential in Vietnam|
[25 October 2016] Thailand’s Thaifoods Group (TFG) has invested in Vietnam's pig industry and it produces 250 live pigs per day. TFG will increase its pig production in Vietnam by 15-20% next year, Phet Nantavisai, Executive Vice President of Farm Unit at Thaifoods Swine Farm told Asian Agribiz. Consumption of pork in Vietnam is higher than in Thailand. Average pork consumption in Vietnam is currently at 29 kg per person per year, compared to 14-15 kg per person per year in Thailand. “The majority of Vietnamese consumers are young and the pork market here has large growth potential,” Mr Phet said. The company outsources pig feed production to a local feed plant, which produces feed according to TFG’s formula.
|Vietnam aims to become global seafood processing centre|
[25 October 2016] Vietnam is likely to become a global seafood processing centre in the future thanks to its competitive labour cost and increasing number of high-quality processing facilities, reported a local daily quoting General Secretary of the Vietnam Association of Seafood Exporters and Producers Truong Dinh Hoe. He said world leading seafood processors are shifting their factories from Europe and China to Vietnam, and domestic businesses have increased imports of raw materials for processing for export. The country has also spent nearly USD 800 million importing shrimp, tuna, cuttlefish, for processing and re-exporting, he said, stressing this shows that the country plays a vital role in the global seafood supply chain.
|China to promote modern agriculture|
[25 October 2016] The Chinese government announced that it will take measures to develop modern agriculture in the next five years, according to a plan released by the State Council. The objective is to build an efficient, environment-friendly and resource-saving agriculture, maintain the supply of agricultural products and improve farmers’ income. According to the plan, the national output of grain in 2020 is expected to reach 550 million tonnes, 50 million tonnes more than in 2015. China’s productivity is expected to increase to more than USD 6900, compared with just USD4400 in 2015. The State Council has called for the promotion of the agriculture restructure by upgrading plantation structure, improving the quality of animal husbandry and upgrading fishery industry. It also plans to improve agricultural technology and the integration with information industry.
|Nepal’s poultry farmers struggle with illegal chicken imports|
[25 October 2016] Poultry farmers in Biratnagar, Nepal are struggling to survive due to illegally imports from bordering Indian towns. Although the government has imposed a ban on imports, the porous border has facilitated illegal trade. Farmers in border towns mainly Morang, Sunsari, and Jhapa are forced to buy chicken feed at steep prices and sell chicken at low price. Naresh Thapa, a poultry farmer from Jhapa said the local market have been swarmed with chicken from India because of the government apathy towards curbing smuggling of chicken. The locals sayt middlemen are facilitating the smugglers to capture the Nepali market.
|Indian rice farmers move to shrimp farming|
[25 October 2016] Farmers in coastal areas of India are abandoning rice cultivation and moving to farming (vannamei) shrimp. In Andhra Pradesh, the expansion of shrimp farming has triggered a boom that saw the state grab a 45% share of Indian seafood exports, which have escalated to USD 44.9 billion. Official data show area under paddy in the state has been progressively decreasing over the last few years. Paddy cultivation declined 10% in 2015-16 after dipping 7% in the previous year, mostly in coastal districts.
|Sealed Air to double capacity at Shanghai facility|
[24 October 2016] Sealed Air is investing about USD 72 million to expand a facility in Qingpu, Shanghai, and the work is expected to be complete by 2018. “We will double the capacity at the flagship packaging manufacturing plant by adding three new lines,” Shen Hong, Vice President for Greater China, told Asian Agribiz. “The expansion will not only increase our capacity, but also enhance our services and commitment to customers in the region,” Mr Shen added. According to him, the Shanghai facility serves the Asia-Pacific region including Greater China, Japan, Korea, Southeast Asia, India, Australia and New Zealand. It also houses the company’s Packforum Asia, a world-class customer learning centre. Sealed Air has been in China for over 30 years.
|300 breeding cattle from Australia arrive in South Kalimantan|
[24 October 2016] As many as 300 breeding cattle from Australia have arrived in South Kalimantan, Indonesia. According to Thomas Lembong, Chairman of the Indonesia Investment Coordinating Board, the initiative, which is under the Indonesia-Australia Commercial Cattle Breeding Program, will help develop the Indonesian cattle industry, boost investment opportunities and enhance trade between the two nations. Mr Lembong continued that the program will pilot a range of different commercial scale breeding models with private partners and commercially focused cooperative smallholder groups to assess economically viable and sustainable larger scale breeding models. As part of this project, Australia will supply 2000 breeding heifers and 100 bulls to selected partner sites.
|Japanese company establishes cattle business to Vietnam|
[24 October 2016] A cattle breeding company in Japan, devastated by the 2011 earthquake, will start raising about 5000 beef cattle in Vietnam by year end in collaboration with Saigon Agriculture Incorporation (Sagri). Sagri will prepare a 500ha ranch, barns and young cattle, while Japanese farmers, Ushichan Farm Co, will provide their expertise in livestock farming. It will receive USD 3 million annually in consultation fees. Beef from the ranch in Vietnam will be sold in local supermarkets and other stores starting 2018. Sales will be evenly shared by the two companies. According to Ushichan Farm, the move is aimed at helping Japan compete with US and Australian products after the Trans-Pacific Partnership pact is signed.
|India looking to boost production of black tiger shrimp|
[24 October 2016] India aims to boost its production of black tiger shrimp especially after the US removed anti-dumping duty on Indian shrimp. The marine export organisations now target USD 10 billion of seafood exports by 2020, more than double the USD 4.68 billion worth of exports in 2015-16. Shrimp made up the lion’s share of these exports at USD 3.09 billion. Among shrimp, Black Tiger is the crustacean of choice. The export of Black Tiger shrimp last year improved by 6.56% in quantity but decreased by 30.35% in US dollar earnings owing to the depressed global economic scenario. Total production was 71,400 tonnes.
WVPA 3rd Asia Meeting, Manila, Philippines
Report by ISA Q TAN
[24 October 2016]
The World Veterinary Poultry Association, in association with the Philippine College of Poultry Practitioners, held its 3rd Asia Meeting in Manila last week. Running on the theme “Prevention is better than cure,” the meeting had 37 presentations from various experts and was attended by poultry practitioners from various parts of Asia.
ND remains a major problem in global poultry production
Newcastle Disease (ND) continues to be a major concern in poultry production, resulting in severe economic losses to the poultry industry worldwide. In a presentation at the 3rd Asian Avian Pathology Lecture at the WVPA 3rd Asia Meeting, Dr Aini Ideris of the Department of Veterinary Clinical Studies of the University of Putra Malaysia, said that the ND virus is increasing in complexity and that despite intensive vaccination programs are unable to induce the optimum protection in commercial flocks due to various underlying factors. While strict biosecurity and the use of improved vaccines are important strategies in the successful control of ND in commercial flocks, he also emphasised the need for further development of innovation and strategy for effective control of ND virus.
Including inactivated ND vaccine in live ND vaccination program leads to better protection
Studies indicate that including an inactivated ND vaccine during the chick’s first week of life in the live ND vaccination program results in effective clinical protection against highly virulent NDV genotype VII. Dr Andreas Hermann of Merial France added that when the inactivated vaccine was administered at Day 7, “only the clinical protection against challenge was complete, moreover shedding of ND challenge virus was not detectable. This is likely attributable to a more mature immune system at seven days of age compared to day old, resulting in a stronger immune response post inactivated ND vaccination.”
Reducing virus shedding in modern poultry production
Poultry is seen to become the largest protein source for the global human population from 2020 onwards, but poultry raisers continue to face challenges in production. In areas where many infectious viral diseases are endemic, diseases continue to proliferate in highly populated poultry areas, threatening economic returns. To minimise infections, Dr Christophe Cazaban of Ceva France reiterated that “strict obedience to biosecurity rules and day-to-day gap analysis are of paramount importance.” He said that new technology vaccines such as immune-complex and vector vaccines “provide a significant support in managing the diseases’ spreading risk within a house, a complex, or even a geographical area.” Studies show that chickens given these new vaccines “shed significantly less virus” and that virus load reduction can reach and even exceed a factor 106.
Using biomarkers to evaluate effect of mycotoxins
Mycotoxins continue to be a major challenge for many poultry producers, and how they affect animals must be measured as early as possible. Astrid Koppenol of Impextraco said the company has developed protocols to determine the effects of mycotoxin early on, using biomarkers that can be objectively measured and evaluated as indicators, using different strategies such as blood biochemistry, flow cytometry and histopathology to name a few. She said biomarkers clearly demonstrate significant changes at a very early stage and with limited number of animals. They are a promising tool to be used to evaluate in vivo effects generated by mycotoxins on health status and can greatly help to overcome large scale animal trials.
Novel non-antibiotic growth promoter effective against C. perfringens in broilers
Clostridium perfringens-induced necrotic enteritis (NE) is a common disease found in poultry traditionally has been addressed using antibiotics. Increasing calls to reduce AB use in food animal production, however, calls for alternatives. Maximillian Sim of Amlan presented a novel non-antibiotic growth promoter, NNA-F, which has been demonstrated to control biotoxins produced by pathogenic bacteria, specifically those of C. perfringens which are responsible for necrotic enteritis in poultry. In addition, when there is no disease challenge, NNA-F improves the growth performance of the birds. He said the true potential of NNA-F and how it affects the pathogenic bacteria warrants further studies.
Coccidiosis control in broilers trends toward vaccination
Coccidiosis, one of the most economically important diseases in poultry production, has generally been addressed using vaccines in breeders and layers and anticoccidials in broilers. Koon De Gussem of Huverpharma explained however, that there is now a growing trend, particularly in the US and some South American countries, toward the use of coccidiosis vaccines in broilers. In Southeast Asia, particularly Thailand, he said some producers have been studying the concept and initial results indicates it is “promising and indeed might prove to be a valuable addition in the fight against coccidiosis and subsequent enteric disorders.” He said those implementing vaccination need to carefully design a rotation program.
Asian Agribiz Layer Feed Quality Conference 2016, 20-21 October 2016, Kuala Lumpur
Onsite reports by RACHAEL PHILIP
[21 October 2016]
After two successful days in Jakarta at the start of this week, Asian Agribiz’ conference dedicated to the layer industry moved to Kuala Lumpur, Malaysia. Among others, the speakers emphasised pullet nutrition, maintaining uniformity and shell stability on Day 1 of the conference here.
Tips on managing body weight of pullets
Body weight is a huge driver of egg size. In his presentation Doug Korver, Professor of Poultry Nutrition, from the University of Alberta, Canada, offered participants tips on managing weight of pullets. “If the pullets are under target weight for age, delay the change to the next dietary phase. This will allow the birds a slightly longer time on a higher nutrient density diet,” he recommended. “If the hens are underweight as sexual maturity is approaching, photostimulation can be delayed, again allowing the birds additional time to deposit body reserves.” For overweight birds he said do not cut feed supply as this will send a negative signal that nutrition is limiting and birds could stop laying eggs.
High density diets during stressful period can help birds maintain body weight
Stressful management practices such as vaccinations, beak trimmings and bird handling can affect the ability of pullets to achieve body weight targets. “Any interruption to growth during any of the developmental phases will result in hens lacking the body reserves and organ function to sustain high production as adult layers,” said Marcus Kenny, Nutritionist, Hy-Line International. To overcome these challenges, he suggested going back to high nutritional density diets for a week prior to the stressful event. “Going back to starter 2 diet is not such a bad idea,” he said as feed intake at 14 weeks of age can drop by 20% during stress periods. This reflects a roughly 20% drop in nutrition.
Particle size of calcium can affect quality of the shell
While a well-balanced feeding program with nutrients reflecting the birds’ requirements during different phases of life is essential for it to lay quality eggs, the correct particle size of calcium carbonate can affect shell quality. “Feed with too high a percentage of fine and medium-sized particles will cause more broken eggs compared to feed with coarse particles,” said Ron Eek, Lohmann Tierzucht, Regional Area Manager for Asia – Oceania Pacific. In Phase 1 feed he recommended a mixture of fine limestone (0-0.5mm) of 30% and coarse limestone (1.5-3.5mm) of 70%. In Phase 2 and Phase 3 the ratio can be 25%-75% and 15%-85% respectively.
|Canada Pork International opens Shanghai office|
[21 October 2016] Canada Pork International (CPI), an export promotion agency of the Canadian pork industry, has opened an office in Shanghai to explore more opportunities in China. It is the agency’s second overseas office following the one in Tokyo, Japan. Founded in 1991, the CPI is a joint initiative of the Canadian Meat Council, representing the pork packers and trading companies, and of the Canadian Pork Council, which is the national hog producer organization. “Canadian pork exports, including offal, fat and processed products, to China, Hong Kong and Macau could ‘easily’ exceed 200,000 tonnes this year,” Jason Li, CPI Director Marketing for Greater China told Asian Agribiz.
|De Heus duplicates Vietnam success in Myanmar|
[21 October 2016] De Heus opened its first feedmill in Myanmar early October. According to the Johan van der Ban, General Manager De Heus Myanmar the company hopes that its involvement in Myanmar will help the country iron out some of the industry’s challenges, especially illegal border trade. “Compared to neighbouring countries the cost of production for Myanmar farmers is very high, which eventually leads to high consumer prices at the end of the chain,” he told Asian Agribiz. “Making the sector more competitive by enhancing farmer knowledge through training, providing farmers with quality feed, setting up efficient value chains is the key to long-term success of the animal protein industry in Myanmar,” he said.
|Marfrig sees growth potential in Asia Pacific|
[21 October 2016] Brazil’s main beef producer Marfrig Global Foods SA expects the Asia Pacific region to be its principal engine for growth going forward after China and the US opened their markets to Brazilian fresh beef in 2015. Mergers and acquisitions in the region, however, are not on the company's immediate radar, said José Eduardo de Oliveira Miron, Vice President of Finance. “We are concentrating on organic growth. We see growth in beef consumption in the world propelled by the Asian markets, where demand should remain robust and met mainly by imports,” he said. Mr Miron said the company's Keystone division is leading one of the company's main investments of USD 35 million to build a new plant in Thailand. It will have capacity to produce 20,000 tonnes of processed food a year starting in 2017. Next year, Mr Miron said the beef division is expected to expand its sales in Malaysia, which should allow the company to export beef on the bone and raise the value of products sold there.
|Thaifoods Group invests USD54m in cooked chicken plant|
[20 October 2016] Thailand’s Thaifoods Group (TFG) will invest around USD 54.16 million to build its first cooked chicken plant early next year, Chirdsak Kukiattinun, Chief Operations Officer of TFG told Asian Agribiz. TFG’s cooked chicken plant, which will be located in Kanchanaburi province, will have a production capacity of 25,800 tonnes a year. The plant will come online in 2018, Mr Chirdsak said. TFG plans to export 80% of its production to Japan and the rest to Europe. “Exporting cooked chicken will offer higher margins but it requires high investment,” Mr Chirdsak added. Meanwhile, TFG will export 25,000 tonnes of frozen chicken to Japan and Europe this year, up from 8,000-9,000 tonnes last year. TFG currently slaughters 450,000 chicks a day in Thailand.
|Bel Ga Myanmar sets up poultry breeding farm|
[20 October 2016] Bel Ga Myanmar, is setting up a poultry breeding facility in Yangon, Myanmar with a capacity to house 96,000 hens and 12 million DOC at an estimated cost of USD 10.5 million. The International Finance Corporation, the private lending arm of World Bank, plans to contribute through a loan of USD 6.5 million, it said in its pre-investment disclosure. Bel Ga Myanmar is 99.9% owned by BDH Azier BV, a private jv between Belgabroed, a leading hatchery in Belgium and De Heus Animal Nutrition. The remaining 0.1% is owned by De Heus Myanmar, a wholly owned subsidiary of De Heus. The company is currently in the process of identifying 12ha of land in an industrial zone in Yangon to house the facility. The project is expected to help Myanmar farmers build expertise and meet the fast growing demand for poultry products in the country.
|Vietnam to supervise shrimp production chain for export |
[20 October 2016] Vietnam’s Ministry of Agriculture and Rural Development will monitor the production chain of shrimp for export as it develops farms to the standards of the World Organisation for Animal Health and countries importing the product. The ministry will direct the implementation of a national plan on monitoring diseases on shrimp for export in the 2017-2020 period. It targets by end 2017 at least 10% of breeding shrimp farms producing over 1 billion of post larval shrimp each year will be recognised as safe farms. At the end September, there were 80,000 ha of whiteleg shrimp farmed nationwide, a year-on-year rise of 6.3%, with an output of 200,000 tonnes, up 4.2%.
|India encourages egg production|
[20 October 2016] According to The Pioneer, people in India currently consume 63 eggs per capita, which is lower than the 180 eggs as recommended by the National Institute of Nutrition. Radha Mohan Singh, Agriculture Minister said: “In egg production, we are at sixth in the world. The country currently produces 83 billion eggs.” According to him, the country needs to raise domestic output three times to achieve nutritional security. He added that the Central Government is promoting poultry farming through National Livestock Mission where this is being encouraged under the component of entrepreneurship development and employment generation. Andhra Pradesh, Tamil Nadu, Kerala, Haryana, Punjab, Goa, West Bengal are major egg producing states, but Uttar Pradesh, Bihar and Chhattisgarh are catching up fast due to higher demand.
|Indonesia’s aqua feed, raw material imports touch USD144m|
[20 October 2016] Indonesia’s imports of aqua feed and raw materials from January to August 2016 touched 725,124 tonnes with a value of USD 144 million. The highest import volume was wheat meal/gluten (250,819 tonnes), followed by soybean/lecithin (119,299 tonnes), fish oil (89,785 tonnes), fish & squid paste (55,233 tonnes), fish meal (24,964 tonnes), and the rest was shrimp & fish complete feed, vitamin/mineral, yeast, hatchery feed, corn and artemia. Meanwhile in terms of value, soybean/lecithin recorded the highest value (USD 48.1 million), followed by fish meal (USD 32.9 million), fish & squid paste (USD 15.6 million), shrimp & fish complete feed (USD 4.6 million) and fish oil (USD 3.6 million).
|Prof David Hughes to chair Animal Protein in Asia 2022|
[19 October 2016] David Hughes, Professor of Food Marketing at the University of London will chair the ‘Animal Protein in Asia’ conference being held at the Anantara Siam Bangkok Hotel on 16-17 January 2017. Dr Hughes travels the world advising Boards of Directors and senior management of agribusiness, food and drink companies about global food industry developments and how these might impact their businesses. He has lived and worked in Europe, North America, the Caribbean, Africa and Asia. The conference, organised by Asian Agribiz, will tackle using e-commerce to sell meat products, staying in front of eating trends, developing the next big meat product, and regional meat opportunities. For further details email@example.com.
|Thailand’s CPF acquires 60% stake in UK’s Foodfellas|
[19 October 2016] Thailand’s Charoen Pokphand Foods (CPF) has spent USD 15.23 million to buy a 60% stake in United Kingdom’s Foodfellas Limited (Foodfellas). CP Foods UK Limited, an indirect subsidiary of CPF, acquired 9,340 ordinary shares of Foodfellas, making it a subsidiary of CPF. Foodfellas engages in food service business and it imports and distributes raw material and food products such as beef, lamb, sausages, bread, bakery, potatoes and avocado from around the world to more than 160 customers. Foodfellas‘s major customers are branded restaurants with more than 15,000 outlets in the UK. CPF said the deal will allow it to effectively enter into the food service market in the UK as well as expand its business to other European countries.
|Pig producers ask for AAA abattoir|
[19 October 2016] Philippine hog raisers have asked the Department of Agriculture (DA) to resume its plans to build AAA slaughterhouse in Bulacan province, one of the biggest pork producing areas in the country just north of Metro Manila. Pork Producers Federation of the Philippines Inc President Edwin Chen told Asian Agribiz that his group has asked the National Meat Inspection Service (DA) that the abattoir can be a shared service facility that pig producers in the province and nearby areas can use. He noted that despite the province’s proximity to Metro Manila, the country’s biggest pork market, it does not have any AAA slaughterhouses.
MSD Animal Health High Quality Pork Congress in Manila, Philippines
Report by ISA Q. TAN
[19 October 2016]
MSD Animal Health held its High Quality Pork Congress on October 17-18 in Manila, Philippines which was attended by over 120 participants from various parts of Asia.
Improved feeding offers biggest opportunity in reducing antibiotic use
With the growing call for reduced use of antibiotics in animal production, producers must look at improving nutrition to keep their herd healthy and minimise the use of medication. “About 40-60% of the antibiotics are used on enteric infections in weaners and finishers,” said Michael Aegerly of the SvineVet consulting group from Denmark, and added that “bad nutrition is easily masked with antibiotics.” Dr Aegerly also discussed Denmark’s experience in reducing the use of antibiotics in pig production and the role played by good feeding and management programs.
Animal welfare has economic benefits
While there is increasing consumer demand to improve animal welfare in meat production, many producers still look at it as additional cost. However, Dr Megan Verdon of the Animal Welfare Science Centre in Australia, pointed out that ensuring animal welfare does have economic benefits. Raising pigs in good conditions where they are more likely to stay alive will mean less mortality and more animals for the farmer to sell. At the same time healthy animals will lead to savings in medicine and veterinary bills and ultimately better quality meat.
Intradermal vaccination is fast and efficient
Disease prevention is critical in successful pig production, and effective and safe vaccines play an important role to achieve this, Dr Rika Jolie, Global Technical Director of Merck Animal Health Swine Business Unit said. Pointing out that the dermis is 'an excellent processor of antigens' because of the abundance of dendritic cells in the area, she said processing of antigen after intradermal vaccination is fast and efficient. It also induces an immune response and a clinical protection that is similar to or even better than intramuscular vaccination.
PRRS needs systemic approach
Twenty five years since it was first identified, PRRS continues to be an economically significant disease plaguing the global pig industry. It is a complex disease and there is no one size fits all approach to control it, said Dr Jolie, who added that effective PRRS control is made up of several building blocks that include biosecurity, diagnostics, herd classification, intervention strategy, monitoring and economics. She also noted that PRRS interventions must be customized to fit each production system, which calls for a systematic approach to assess the disease and a partnership between the veterinarian and the producer.
Estimating economic efficiency of PRRS intervention strategies
The economic impact of PRRS cannot be overstated, and many intervention strategies have been implemented to combat it. Dr Christina Nathues presented a calculation tool that can assess the economic impact of PRRS for different severities as well as estimate the economic efficiency of various PRRS intervention strategies. She said that in studies they have conducted, moderately PRRS-affected farms showed considerable losses and that the disease has the highest impact in the fattening stage. Dr Nathues, explained however, that because the tool is an economic PRRS model, there is some oversimplication and therefore calls for prudent use.
Managing data for better decision making
Data gathering and record keeping have become norms for many pig farms. However, Carlos Peñeiro, Partner-Director of PigCHAMP Pro Europa SL pointed out that data must be managed properly so that they can lead to good decision making, and this can be done effectively by harnessing information and communication technology. He said collected data must be cleaned up and processed so that a good report can be generated. These reports in turn must be distributed and given at the right time, so that they can be properly analysed and used for monitoring and allow farms to make timely decisions and necessary adjustments.
Asian Agribiz Layer Feed Quality Conference 2016
17-18 October 2016, Jakarta – Indonesia
Onsite with ARIEF FACHRUDIN
[18 October 2016]
Asian Agribiz’s Layer Feed Quality Conference 2016 which opened in Jakarta yesterday, was attended by 147 participants from Indonesia, India, the Philippines, Pakistan and South Korea. Pullet nutrition, laying cycle extension and home-mixing were the key topics, delivered by 12 reputable international speakers.
Importance of maintaining skeletal health
With longer productive life, increased egg production and reduced feed per egg, modern laying hens must be more efficient at maintaining skeletal health more than ever before. Doug Korver, Professor of Poultry Nutrition at the Department of Agricultural, Food and Nutritional Sciences of University of Alberta in Canada said structural bone is not replaced while the hens are actively laying, and over time, a decline in structural bone takes place, even as medullary bone continues to accumulate. “Therefore, it is possible for hens with osteoporosis to have high levels of bone ash, even as the skeleton is extremely weak. It is therefore, essential to ensure that the pullets are fed and managed to maximise structural bone formation before sexual maturation, and to manage the hens to reduce the loss of structural bone after the onset of lay,” Prof Korver explained.
Preparing pullets for long productive life
The key to producing a successful layer is in the rearing period. Marcus Kenny, Hy-Line International Nutritionist said a well reared pullet will provide the foundation for a successful layer, which is prolific, persistent and profitable. Meanwhile, poorly reared pullets rarely support optimal performance in the laying period. Often, flocks experience post-peak dips in performance with poor persistency. Therefore, Mr Kenny said growing the pullet to the breeders recommended body weight throughout rear is the first step in producing a good quality layer. “Achieving adequate body condition and frame development will also provide the bird the foundation for a successful laying cycle,” he added.
Genetics, balanced nutrition important to maintain egg shell stability
Layers and breeders have a genetic potential for a high egg output, said Ron Eek, Lohmann Tierzucht Regional Area Manager for Asia – Oceania Pacific. In order to produce mainly saleable and hatching eggs, egg shell stability is a crucial trait. “Both genetics and balanced nutrition play an important role to maintain good eggs,” he said. Geneticists have succeeded to combine a prolonged production period with good egg shell stability until end of lay. Meanwhile for the nutritionist, Mr Eek said hot weather is an additional challenge. “In order to maintain production of premium eggs, rations need to be supplemented with extra micro ingredients, vitamins C and E and sodium bicarbonate. A so-called phase feeding program with different rations during the production period is essential to safeguard performance. The main targets are maintaining good egg shell quality, controlling egg size and balancing nutrient supply to actual requirement.”
Strategies for longer laying cycles
The best way to increase the number of eggs produced is by increasing the length of the cycle. According to Fernando Cisneros, Global Carotenoids and Layers Manager of DSM Nutritional Products, longer cycles can help to reduce production costs and increase egg production, without the need for a moulting period. However, longer cycles can produce negative side-effects, such as decreased laying rate and calcium absorption, bone fractures, more variable brown shell colour, larger eggs with decreased shell strength and a decline in shell quality. Therefore, according to Dr Cisneros, pullet development is crucial to a successful layer to build the structural bone and the pre-lay period is key to deposit the medullary bone. It is also essential to ensure good gut health and a healthy liver and adjusting the feed levels of phosphorous, calcium and vitamin D3 from start pullets to ensure a high level of saleable eggs in the flock, he added.
|12 Indonesian breeding companies found guilty over cartel allegations|
[18 October 2016] Twelve Indonesian poultry breeding companies were found guilty on October 13 of the alleged broiler cartel. The 12 companies are considered to have jointly undertaken early culling of 2 million broiler PS with the aim to reduce broiler stock in the market which then led to higher market prices. Charoen Pokphand (CP) Indonesia and Japfa Comfeed Indonesia were fined USD 1.91 million each. Only Expravet Nasuba was not fined. According to local media, CP and Japfa raised objections to the decision as the early culling had come purely from the government, without any lobbying from the companies. The two companies are now thinking about the next legal steps. One day after the verdict, the Indonesia Stock Exchange reported that stocks of CP, Japfa and Malindo weakened.
|Philippine 2016 pork imports could exceed 2015|
[18 October 2016] In the first eight months of the year, the Philippines imported nearly 185,198 tonnes of pork, up 19% from the previous year, data from the Bureau of Animal Industry showed. “It is trending upwards this year, and it looks like we’re heading for higher import [volume] this year over last year,” Philippine Pork Producers Federation President Edwin Chen told Asian Agribiz, although he did not say by how much. Industry officials say however, that the volume is likely to be bigger than the official data due to technical smuggling. However, some industry officials noted that with the new administration, they hope that smuggling might be significantly lessened.
|Guangdong Wens Q3 revenue up 10% at USD2.3b|
[18 October 2016] Guangdong Wens Foodstuff Group said its third-quarter revenue rose 9.69% to USD 2.27 billion, while net profit was up 14.97% at USD 536.42 million. The largest livestock producer in China sold 4.26 million finished pigs and 221 million yellow broilers during the quarter, up 6.09% and 9.24%, respectively, from a year earlier. In its quarterly report, Wens warned of risks of a price fluctuation as China’s live pig prices declined in the third quarter. “The drop was particularly significant in late September,” it said, though the average prices were still higher than the previous year.
|Overwhelming response for Asian Agribiz's Layer Feed Quality Conference |
[17 October 2016] Asian Agribiz's Layer Feed Quality Conference opens in Jakarta Indonesia today with the theme ‘Science, trial data & application. The two day conference will feature 15 presentations from leading regional and international speakers in academia and industry who will provide actionable take-home messages to help producers and feed millers improve their profitability, productivity and sustainability. The conference will deliver three themes namely Tackling pullet nutrition; Extending the laying cycle; and Winning with home-mixing. The keynote speaker at this conference which will later in the week (October 20-21) be staged in Kuala Lumpur, Malaysia is Dr Doug Korver, Professor of Poultry Nutrition, Department of Agricultural, Food and Nutritional Sciences, University of Alberta, Canada.
|Thailand’s Betagro says food research and development is endless|
[17 October 2016] Thailand’s Betagro will continue to develop its food technology including foundation technology and advanced technology as the company sees food research and development (R&D) as endless possibilities, Vasit Taepaisitphongse, President of Betagro Group told Asian Agribiz at the Sustainable Brands conference in Bangkok, Thailand this week. Foundation technology includes food preservation, meat texture, taste and shelf-stable food. “These technologies should be developed continuously,” he said adding that the company will build on the foundation technology it has, such as changing meat structure by adding vitamins and omega3. “We will not limit ourselves to just meat and food science,” Mr Vasit added.
|De Heus to work towards raising standards in Myanmar|
[17 October 2016] Like in Vietnam De Heus is also actively working to raise the standards of the industry in Myanmar. One example is its partnership with recently-established joint venture company Bel Ga Myanmar Ltd. Through this partnership – which ties Belgium’s top producer of day-old chicks and day-old layers Belgabroed NV (51%) with De Heus (49%) – farmers will have access to high-quality day-old chickens. On its 2017 plans for Myanmar Johan van der Ban, General Manager De Heus Myanmar told Asian Agribiz that the company is ready to implement its earlier planned strategic investments, such as ensuring the success of Bel Ga Myanmar. “We will continually spread our wings and introduce our brand to farmers in Myanmar,” he said.
|Peksi to widen market for its Malond quail carcase|
[17 October 2016] Indonesia’s Peksi Gunaraharja (Peksi), the largest quail integrator in Jogjakarta, targets to sell more than 30,000 Malond quail carcases per week locally. Malond is a meat-type quail breed. Peksi introduced Malond carcase in 2011 to the domestic market. In 2012 it sold an average of 7000 Malond carcases per week. Sales continued to grow and in 2013 reached 11,000 carcases, while in 2014 and 2015 increased to 14,000 and 22,000 carcases respectively. “The target to sell more than 30,000 carcases per week is possible as the demand continues to grow,” Sudarsono, Peksi Marketing Manager for Meat Division told Asian Agribiz.
14th CIMIE embraces upgraded meat consumption in China
Report by ALLEN SHU
[17 October 2016]
Despite the economic slowdown in China, exhibitors and potential customers at the 14th annual China International Meat Industry Exhibition (CIMIE) in Beijing, in September were optimistic about the nation’s demand switch to premium meat products, amid government initiatives to boost and upgrade domestic consumption in a bid to raise the quality and efficiency of its economy. “You may see many Chinse women are spending a lot on luxury shoes, clothes or bags. No doubt that they are willing to pay for premium meat products,” Uwe Kessler, Handtmann Sales Director, told Asian Agribiz. “This is also an international trend. Japan is a good example,” he added.
Big projects for western-style products help
China’s top pork processor Shuanghui was always quoted at CIMIE for its two newly launched state-of-the-art plants - American-style plant in Zhengzhou, and a Western-style plant in Shanghai. Each has a daily capacity of 100 tonnes of high-quality western products, with processing equipment from various international suppliers. “The sausage sector is set to recover with more premium products, though it may take time for consumers to get familiar with the western style products,” said Hans Heppner, Sales Director for smoking equipment supplier Fessmann.
More investments in beef plants
Wolfgang Muth, Banss Sales Manager for Asia, said China’s meat industry is not investing much amid the economic downturn, but new projects in beef and mutton are growing, particularly in the northern part of the country. Meanwhile, Marel said it is backing the construction of a cattle slaughterhouse in east China. The Dubbo project is designed to slaughter 100,000 cattle imported from Australia annually. “It is a milestone for us as the project features the first joint sales from Marel and our newly acquired MPS,” Valur Blomsterberg, Marketing Coordinator for China, told Asian Agribiz.
Marel banks on China’s poultry sector
According to Mr Blomsterberg, Marel sees better performance for China’s poultry sector over the next years, as a limit on broiler GP imports has helped the sector to reduce overcapacity. The company showcased at the CIMIE a tailor-made Insight Poultry Processing newsletter that features industry updates and in-depth information and customer testimonials on the latest equipment in China. “We are also promoting our poultry business on local social media WeChat,” Mr Blomsterberg said, adding that Marel has just moved to a new office in Beijing that will serve clients in poultry, red meat and further processing, in addition to its Qingdao office that is dedicated to the fish industry. “Just as our Chinese slogan shows, we will fully support our customers’ development and progress.”
Skin packaging in the spotlight
While vacuum packaging still dominates the Chinese market, skin packs caught visitors' attention at CIMIE with highlighted promotions by both Multivac and Sealed Air. Multivac held a skin pack seminar together with film producer Wipak. Sealed Air launched Darfresh on Tray under the Cryovac brand, a new generation of its skin packaging that was introduced to Asia for the first time. “The new packaging could extend the shelf life of fresh meat to up to 30 days,” said Onat Bayraktar, Vice President of Sealed Air Food Care, Asia. “A longer shelf life will help reduce food waste, which will thus not only save money for retailers and consumers, but also minimize the negative environmental impact, such as waste of water and emissions of carbon dioxide,” Mr Bayraktar said.
Improved efficiency with integrated lines
Chinese meat processors have been moving towards automation for quality and food safety. Furthermore, many companies choose integrated lines rather than separate machines to improve their efficiency further, according to Niclas Rathmann, CEO of Vemag. “An integrated line could be more stable and reliable. It also saves time in the process such as a casing change,” Dr Rathmann said. Meanwhile, Provisur Sales Manager Nick Yu said that there will be growing demand for large-size and integrated equipment amid a consolidation in the Chinese meat industry. “This would be a good opportunity for the US-made industrial applications,” he told Asian Agribiz.
|New ruling in Indonesia will have minimal impact on processing industry|
[14 October 2016] Despite the new ruling in Indonesia urging big poultry producers to build slaughterhouses and not new closed houses, Indonesia’s poultry industry is upbeat that its food processing line will not be affected by the policy. “The industry has been facing oversupply in recent years, so the moratorium on expansion will not have a big impact [to food processing],” said Sudirman FX, Chairman of the Indonesian Feed Producers Association. “But in the long run, it might cause several problems, because if the economy grows further, nationwide demand for chicken meat will also increase and we will have to build commercial farms again from the beginning.”
|Betagro set to implement new ERP next year|
[14 October 2016] Thailand’s Betagro Group is investing more than USD 28 million on new enterprise resource planning (ERP) software and it will implement this in the middle of next year in agribusiness and in its food business in 2018, Vasit Taepaisitphongse, President of Betagro Group told Asian Agribiz at the Sustainable Brands conference in Bangkok, Thailand this week. The company will shift to a world-class ERP software, Mr Vasit added. Meanwhile, Betagro has been consolidating its six business units into two, which are agribusiness and food business. “Previously, our six business units had six databases. Now, we are in the process of consolidating the data and this will offer many operational benefits,” Mr Vasit said.
|Timab phosphates becomes Phosphea|
[14 October 2016] French feed phosphates specialist’s name change from Timab Phosphate to Phosphea, which was introduced last month, will happen gradually. “We want to take into consideration import and Customs procedures in the different countries,” Pol Abiven, Regional Manager, Asia Pacific told Asian Agribiz at his office in Kuala Lumpur, which opened in 2014. It has offices in China and India as well as two sales people in Vietnam. Part of Groupe Roullier, the move marks Phosphea’s dedication and leading position in the category. “We stand out in the industry because of our focus on phosphate, our quality products, the approach of our sales people and the proximity to our clients. We have 60 sales people globally, making roughly one sales person per market,” he said.
|China seizes over 200,000 smuggled pigs from Vietnam|
[14 October 2016] The commerce department of south China’s Guangxi region said it seized a total of 262,600 live pigs smuggled from neighbouring Vietnam in the first eight months of this year. The pigs, valued at USD 65 million, were detected in eight cases. “We will tighten the border control, since Vietnam has been encouraging the smuggling of live pigs,” it said. China’s live pig prices hit a record high in the first half of 2016, triggering a hike in pork imports as well as smuggling. The prices have declined since June.
Indonesian broiler farmers demand bigger slice of farming sector
[14 October 2016] Independent broiler farmers in Indonesia are waiting for the implementation of the Ministry of Agriculture’s regulation which will then offer them a larger slice of the farming sector. So far integrators together with contract farmers dominate the sector. Joko Susilo, a spokesperson of the Indonesian Chicken Farmers Organisations Association, told Asian Agribiz that broiler production in the country is dominated by eight big broiler producers that have can produce 3.2 billion birds a year. Mr Susilo also said that they are still waiting for the regulation on market segmentation and floor & ceiling prices.
|De Heus maintains non-integrated business model in Myanmar|
[13 October 2016] De Heus, which opened a new feedmill in Myanmar early October, said its strategic positioning in the country remains one of a partner to independent livestock farmers. This, according to Johan van der Ban, General Manager, sits well with market needs. “We will continue to build on the non-integrated business model where independent entrepreneurship can flourish,” he told Asian Agribiz. “Some players in the feed market aim for full integration of the value chain but we make family-owned farms more competitive by providing them with high quality animal nutrition products in combination with intensive technical on-the-farm support.” Located in Yangon the new plant has a capacity of 120,000 tonnes, which can be doubled.
|Indonesia’s chicken processing industry projects grow|
[13 October 2016] Indonesia’s chicken processing industry last year recorded significant growth, according to the Indonesian Poultry Slaughterhouses Association (Arphuin). “There were new chicken processing plants built during the year by both existing and new players,” Nuri Hidayat, Arphuin Chairman for Organisation told Asian Agribiz. “This year the industry sees a positive trend. Next year we believe we will see many new players joining the processing industry,” he said. Based on Arphuin data, there are 130 chicken processing plants and slaughterhouses in the country. Of the figure, the number of chicken processing plant is less than 100, with the number of grade A and B plants no more than 30.
|Thai Union invests USD575m in Red Lobster|
[13 October 2016] Thailand’s Thai Union (TU) said early this week that it will purchase a minority stake in Red Lobster, a US seafood chain, from Golden Gate Capital, a private-equity firm, for USD 575 million. TU will buy a 25% stake for USD 230 million and pay USD 345 million for preferred shares, which can be converted to common shares and an additional 24% stake within 10 years. Golden Gate Capital will continue to be Red Lobster’s majority owner and retain operational control. Thiraphong Chansiri, CEO of TU said this investment marks a strategic step to build TU’s direct-to-consumer channel.
|Indian carabeef finds place in Jakarta|
[13 October 2016] Starting this year, Indonesia has decided to import carabeef or buffalo meat from India as an alternative to beef to stabilise prices. Although the meat is sold at around USD 4.6 a kg, almost half the current stubbornly high beef price. Initial doubts regarding acceptance quickly faded after the arrival of the first shipment in late August. Within a month, 65% of the 10,000 tonnes of carabeef had been successfully absorbed, data from the State Logistics Agency (Bulog) showed. Meat vendors in local markets, meanwhile, reported that sales had quickly picked up pace. “Last month, I only managed to sell less than 50kg of buffalo meat per day. But these days, I can sell up to 75kg daily,” said Arifin Nasmawi, a vendor in West Jakarta’s Grogol market. Bulog is now set to procure another 70,000 tonnes by year-end.
|H5N6 resurfaces in China|
[13 October 2016] China has reported two separate H5N6 outbreaks to the World Organization for Animal Health (OIE). Both outbreaks which began on October 2 affected more than 100,000 poultry. The largest outbreak, near Jinchang City in Gansu province, struck a farm of 95,172 birds, while the second outbreak, near Xiaogan City in Hubei province, involved a farm of 6,100 birds. Response steps have been activated at both farms. Gansu province is in the north-central part of China, south of Mongolia. Hubei province lies southeast of that, in the east-central part of the country.
|KFC, Pizza Hut in India record sales increases|
[13 October 2016] KFC and Pizza Hut in India have announced system sales increases of 13% and 6% year-on-year respectively for Q3 2016, as the consolidation of its business with franchisees Devyani International and Sapphire Foods has started to pay off. Rahul Shinde, KFC India Managing Director said: “Over the last 12 months, we have restructured our business, decoded our core consumer proposition and reset strategy utilising our strengths. We are optimistic about leveraging the huge opportunity that India has to offer.” The National Restaurant Association of India (NRAI) estimates the current size of the QSR market at USD 1.37 billion, projected to grow to USD 3.71 billion by 2021. “The QSR space is highly competitive, which is why the need for innovation is crucial for continued success. Amidst intense competition, the slightest difference can have a lasting impact,” said NRAI.
|Jakarta to relocate chicken slaughtermen to standard facilities|
[12 October 2016] With a population of 12 million people, Jakarta needs 1 million chickens a day, according to Rismiyati, staff of the Agriculture & Fisheries Agency of Jakarta. There are more than 200 live bird shelters and more than 1000 non-standard slaughterhouses in the province. The players source live birds mainly from West Java and Banten provinces. Ms Rismiyati said the provincial government is now trying to relocate all the players to standard chicken slaughterhouses in five locations namely Pulogadung, Rawa Kepiting, Petukangan Utara and Rawa Lele. “We target next year for the relocation,” she said at a seminar attended by Asian Agribiz. “Therefore, we plan to revitalise existing slaughterhouses with better equipment and add cold chain facilities,” she revealed.
|Huaying’s 2016 exports to exceed USD100m|
[12 October 2016] China’s top duck integrator Henan Huaying Agricultural Development Co said its exports are expected to exceed USD 100 million this year, as it is pushes its ‘going global’ strategy further. In the first eight months, the company’s exports rose about 50% to over USD 50 million. Huaying exports cooked products to more than 40 countries including European Union, Japan, South Korea and Singapore. It also ships frozen items to Hong Kong and the Middle East, according to the company. “We will expand to more countries, while seeking overseas partners to invest in China’s duck sector,” Chairman and CEO Cao Jiafu said. In the first half of 2016, the duck processor completed its first shipment of cooked chicken products to Japan and South Korea, paving the way for broader exports of the products.
|Thai corn production revised up for 2016/17|
[12 October 2016] Thailand’s corn production in marketing year 2016/17 has been revised up to 5.2 mmt, compared to 4.9 mmt in the previous forecast, according to the USDA's GAIN report. This is an 11% increase from marketing year 2015/16, due to higher than expected acreage expansion from farmers who have switched from cassava and sugarcane corps that were adversely affected by drought. Meanwhile, corn consumption in marketing year 2016/17 is expected to increase to around 5.5 mmt, up approximately 15% from marketing year 2015/16 due to growing chicken meat exports. The Thai government is also encouraging feed millers to buy domestic corn at USD 0.23/kg, while limiting imports of feed wheat during the peak harvest in order to stabilize the farm-gate price of corn.
|Peksi to upgrade its quail processing plant |
[12 October 2016] Indonesia’s Peksi Gunaraharja (Peksi), the largest quail integrator based in Jogjakarta, plans to upgrade its quail processing plant to grade-A, which will enable the company to export the products to other countries. “We will work with related institutions for the upgrade. We expect this plan to be realised in 2017,” Sudarsono, Peksi Marketing Manager for Meat Division told Asian Agribiz. Peksi has a grade B, semi-automated processing plant located in Bantul regency with a capacity of 60,000 birds per week. This plant is equipped with a 12-tonne cold storage facility. Besides this, Peksi is now looking to set up a new modern quail processing plant. It is also setting up a cold storage facility in Karawang, West Java for better distribution to western regions.
|India’s soybean production up 60%|
[12 October 2016] Soybean production in India’s Madhya Pradesh is expected to grow by 60%over last year, according to the first crop estimates of the Soybean Processors Association of India (SOPA). The association estimated soybean production in the state at 5.6 million tonnes. The estimated growth in output is expected due to improvement in yields from 608 kg/ha a year ago to 1034 kg/ha this season. “In most of the area of Malwa region, the soy crop is in good condition,” said DN Pathak, SOPA Executive Director.
|Gupbi, Badung regency to form pig farming colony |
[11 October 2016] The Bali Pig Farmers Association (Gupbi) and the local government of Badung regency in Bali, Indonesia are planning for a pig farming colony in the regency. This program is aimed at educating local farmers about intensive pig farming, as well as increasing their bargaining position with slaughtermen and brokers. I Ketut Hari Suyasa, Gupbi Chairman told Asian Agribiz that the local government has allocated around USD 370,000 to start a pilot project for the colony system. The money will be used to set up pig houses, and to buy breeder pigs, feed and veterinary medicines. “To set up a pig farming complex that includes pig houses with a capacity to house 1000 pigs, a raw materials and feed warehouse and a biogas unit, we need around 5000 sqm of land. We target the construction to start early next year,” said Mr Suyasa. Finisher pigs from the colony will be sold to traditional markets.
|Gut health is key to successful poultry production|
[11 October 2016] Gut health is crucial to successful poultry production for the future as producers need high feed intake broilers to be sustainable. Maarten De Gussem, Managing Director of Vetworks BVBA told Asian Agribiz at a seminar hosted by DuPont in Bangkok, Thailand last week that “gut health is the most crucial component in defining production costs. Mortality rate, the cost of day old chicks, the cost of housing, energy, all that is important, but nothing is important as feed conversion rate,” he said. Meanwhile, producers need to be aware of two main negative drivers of gut health, which are infectious causes (bacterial, parasitological, viral) and feed quality and management including anti-nutritional compounds, poor physical texture/form of feed and poor feed management.
|PED suspected in pig farms in Bali|
[10 October 2016] The death of piglets with watery faeces in Bali is now a trending topic among pig farmers in Indonesia. A trusted industry player with 20-years of experience in pig farming told Asian Agribiz that six months ago a disease outbreak caused the death of 300 sows in Negara, Bali. Other outbreaks were found in several pig farms in Payangan, Bali. “Clinical signs point to PED [porcine epidemic diarrhoea],” he said. “However, it’s not conclusive as no lab test results have confirmed it.” The source said he got all information about the cases from farmers, slaughtermen and technical service staff of feed & veterinary drug companies, as well as based on his field observation. “Many pig farmers have tried to conceal this. Besides, the Livestock & Animal Health Agency of Bali has been late to respond. There are also no test kits or rapid tests for PED at the agency and Veterinary Agencies to check and confirm,” he said.
|Putra Perkasa to venture into duck contract farming|
[11 October 2016] Indonesia’s Putra Perkasa Genetika, the largest native poultry breeder based in Bogor, West Java sees good market potential for meat-type ducks in the country. “The market is getting bigger as many restaurants now offer duck meat dishes,” Ang Hendra, owner and Managing Director told Asian Agribiz. To seize the potential, the company plans to develop a duck contract farming business. “We want to partner with small-medium scale farmers to raise our Gunsi 888 duck,” said Mr Hendra. In contract farming, Putra Perkasa will provide DOD and feed specially formulated to meet the genetic potential of Gunsi 888 duck. The company will also guarantee the market for finisher ducks. To promote contract farming, the company has started conducting free seminars on duck farming management for interested parties.
|Baader Group inaugurates new regional office for Asia|
[11 October 2016] The Baader Group inaugurated a new regional office and logistic centre for spare parts and service at Excalibur Centre, Singapore yesterday in a bid to serve the Group's customers in Asia better. With the establishment of Baader Asia equipped with the infrastructure for spare parts logistic, we are enhancing our services to our valued customers across Asia, the company stated in a press release. We will now be able to provide a complete value chain of support that includes processing consultancy, project proposals (quotation, layout, engineering, installation and start up), after sales service and now quick delivery of spare parts.
|India’s shrimp exports to US up over 40% in August|
[11 October 2016] US shrimp imports from India increased by over 40% year-on-year in August, according to the latest figures from the National Oceanic and Atmospheric Administration. In August 2015 India, the top foreign producer of shrimp for the US market, exported 14,754 tonnes. That rose to 20,815 tonnes during the same period in 2016. The other top five shrimp exporting countries all also saw increases in their exports, with significant increases in exports from Thailand, which rose by 48.5% to 7523 tonnes, and from China, which rose by nearly 76% to 3697 tonnes. Vietnam’s exports increased by 48.5%, while those from Indonesia increased by 5.6%.
|CP to partner with HNA Group for animal protein production|
[10 October 2016] CP Group said it has signed an agreement with China's HNA Group, the parent of Hainan Airlines, and Hainan State Farms Group to produce a variety of animal protein in China's southern island province of Hainan. The project will initially cover an annual capacity of 3 million layers, 1.5 million pigs, 10,000 tonnes of shrimp products, and 600,000 black goats. “It will be a partnership related to the entire industry chain, including plant and animal breeding and cultivation, further processing, as well as trade,” CP Chairman Dhanin Chearavanont said in a statement.
|DuPont sees probiotic potential for broiler production |
[10 October 2016] Kirsty Gibbs, Global Technical Services Specialist, DuPont Industrial Biosciences at Danisco (UK) Ltd explained three current challenges in the broiler industry, during a seminar in Bangkok, Thailand last week. First, there is increasing concern about food safety and food security. Second is antibiotic removal. “There is a big drive internationally for reducing the use of antibiotic growth promoters or eliminating them from practices and also reducing the use of therapeutic antibiotic,” she told Asian Agribiz. Third is all about bird performance. DuPont launched Enviva PRO at the event to address some of these challenges. Enviva PRO is a multi-strain Bacillus probiotic, which can provide broader coverage for potential challenges for broilers, Ms Gibbs said. Enviva PRO also effectively supports the balance of the gut microbiota in poultry under challenging commercial conditions.
|Sierad halts on farm expansion plan|
[10 October 2016] Indonesian poultry integrator Sierad Produce has slashed its budget for new farms in the wake of the government’s plan to issue a moratorium on the expansion of big poultry producers. Sierad collected almost USD 30.78 million from a recent rights issue and was planning to use USD 23.20 million to build new broiler closed houses and use the rest as working capital. “However, as the government plans to impose a moratorium on the construction of farm houses, we have decided to shift the funds to working capital and facility maintenance, so that we can use it more effectively,” Sri Sumiyarsih, Finance Director. Sierad had used USD 2.12 million of the rights issue proceeds to build two farms in Serang of Banten province and Sukabumi of West Java province.
Onsite report from Philsan 29th Annual Convention, Pasay City, Philippines
by ISA Q TAN
[10 October 2016]
The Philippine Society of Animal Nutritionists (Philsan) held its 29th Annual Convention in Pasay City, Philippines on October 6, with the theme ‘Think Before You Feed: Safety, Efficiency and Sustainability.’
Philippine feedmillers see 3-4% annual growth from 2016-2018
Driven by population and economic growth, as well as growing per capita consumption of meat and eggs, the Philippine feedmilling industry sees a 3-4% growth between now and 2018, Terence Uygongco, VP of the Philippine Association of Feedmillers Inc said. He said the hog industry will remain the biggest segment, with a share of at least 60%, while broiler and layer feeds will account for 15% and 13% each. Mr Uygongco also noted that Philippine feedmillers are looking to integrate and harmonise with other feedmilling industries in Asean, and increase in global competitiveness.
Feed safety is now a must
With growing calls for food safety, managing feed safety to produce safe food is no longer optional in many countries, said Dr Rick Carter, Pacific Technical Services Manager of Kemin Animal Nutrition & Health Asia. Feed manufacturers must increase their levels of participation and intervention in order to reduce risk factors. He noted the controlling feed safety risks may include hazard prevention, elimination or reduction, while feed deterioration risks and factors affecting these risks can be rated and combined to help manage shelf life. He added that control measures need to be practical and achievable, with prevention preferable to correcting non-conformances after their occurrence.
Holistic approach key to successful poultry production
Many broiler producers still tend to view management, health, nutrition, and environment as separate aspects in broiler production, but this should not be the case. Dr Mark Paderes SVP–Feed Milling Operations, Animal Health Technical Services and Feeds Quality Assurance of Bounty Agro Ventures Inc, reiterated to convention participants that “these multifaceted components overlap and the final production outcome is contingent upon the interface” between management, health, nutrition and environment. He also emphasised the need for broiler producers to innovate in order to keep pace with the growing global demand for poultry products.
Long term gains outweigh short term problems from reduced antibiotics use
Amidst growing calls for reduced and more responsible use of antibiotics in livestock and aquaculture production, many producers argue that reducing antibiotic levels will negatively affect productivity. Dr Alexandre Peron, Regional Additives Technology Application Lead of Cargill Provimi Southeast Asia, said that while producers may experience higher production costs and slightly lower outputs in the short term, the long term benefits, which include among others, higher value of products, greater brand equity and access to markets, should outweigh these issues. He said farmers, veterinarians and feedmillers must work together to shift to a more comprehensive and sustainable production system that will ensure the health and performance of the animals.
|OSI seeks capacity expansion in central China|
[7 October 2016] OSI Group is planning a second phase of its wholly-owned unit Henan OSI Foods Co, while seeking a buyout of Xihua Da-OSI Poultry Development Co, a 51-49 joint venture between Chinese poultry processor Henan Doyoo and OSI, according to the government of Xihua County, Henan Province where the two projects are located. In a meeting with the central province’s Vice Governor Zhao Jiancai, OSI President David McDonald said Henan OSI’s annual capacity of cooked chicken and beef will be expanded to 180,000 tonnes, while Da-OSI, a broiler integrator, will see its annual capacity expanded to 120 million birds. OSI had most of its operations suspended in China following an out-of-date meat scandal at its Shanghai plant in 2014. The Shanghai plant had its food production license revoked by a local food watchdog earlier this week.
|Sumber Unggas to retail marinated native chicken products|
[7 October 2016] Sumber Unggas Indonesia, one of the largest native chicken breeders based in West Java, plans to set up five outlets selling marinated native chicken products early next year. Naryanto, owner and Managing Director told Asian Agribiz said an outlet would cost around USD 3800. “All the outlets will be located in Jakarta. However, we will also look for potential in other big cities in West Java,” said Mr Naryanto.
|Thai Union purchases remaining shares in Tri-Union Frozen Products|
[7 October 2016] Thailand’s Thai Union (TU) has acquired the remaining 18% stake in its US subsidiary Tri-Union Frozen Products (TUFP) for around USD 46 million, making TUFP a wholly owned subsidiary of TU. Prior to the acquisition, TU owned 82% of TUFP, while the remaining 18% stake was held by Diversified Food Products LLC. “The acquisition was part of the company’s attempt to fully integrate its interests in all its subsidiaries around the world in order to obtain effective control for better management,” TU said in a statement, adding the move will also align TU’s strategies, corporate vision, mission and core values. TUFP operates its business as Chicken of the Sea Frozen Foods and is the largest frozen seafood importer and distributor for the US market.
|Malaysia’s Lay Hong to focus on differentiating G Mart|
[7 October 2016] Malaysian integrator Lay Hong Bhd said it has no intention to close more stores to reduce costs. “We will stop the closure (of stores) at this juncture, we’ll focus more on the merchandising of products to differentiate G Mart. We will probably also look into new locations that have better prospects,” Executive Director Yap Chor How said. Currently, Lay Hong still operates 16 supermarkets in Sabah. The retail supermarket business contributed 20.7% to the company’s revenue for FY16.
|McDonalds restructuring Asian business|
[7 October 2016] McDonald's Corp is restructuring its Asian business and may sell 20-year franchise rights for its Singapore and Malaysia outlets to Saudi Arabia's Reza Group for up to USD 400 million, reported Reuters. The move is in line with McDonald's plans to bring in partners as it switches to a less capital-intensive franchise model in Asia. Reza Food Services Co Ltd, owns and operates McDonald's restaurants in the western and southern region of Saudi Arabia.
|Thaifoods Group eyes investment in poultry farm business|
[6 October 2016] Thailand’s Thaifoods Group (TFG) said it will conduct a feasibility study for potential investments in Big Foods Group (Big Foods), which operates poultry farms and a slaughterhouse in Thailand. TFG plans to invest no more than USD 1.73 million or more than 50% of Big Foods shares and turn the company into TFG’s subsidiary. TFG will draft the memorandum of understanding regarding the investment plan in Big Foods this month and will complete the due diligence process by the end of this year. However, “if the study has concluded that the investment is not viable, we will not proceed,” TFG said in a filing to the Stock Exchange of Thailand.
|Philippines may not need chicken imports |
[6 October 2016] Although the Philippine market may experience some tightness in chicken supply during the Christmas holidays, imports may not be necessary, Dr Erwin Awitan, a poultry consultant in the Philippines told Asian Agribiz, adding that demand typically goes up during the period. The problem, he said, is distribution, noting that producers in the Visayas and Mindanao are “experiencing the poor performance that hit Luzon some weeks ago, which explains their low production output, and consequently higher selling prices as dictated by supply and demand. I think we have ample supply locally.”
|Native chicken business in Indonesia records significant growth|
[6 October 2016] Native chicken business in the last decade grew significantly, according to Ade Zulkarnain, Chairman of the Indonesian Native Chicken Farmers Association (Himpuli). Of several native chicken production centres, West Java is number one. Mr Zulkarnain said 80% of the native chicken breeders are based in this province. On average the breeders have the capacity to produce 200,000 native chicken DOC per month. “We will continue our campaign to other provinces to invite local farmers to raise native chicken intensively. We expect native chicken to contribute 25% to the total chicken production in Indonesia,” Mr Zulkarnain told Asian Agribiz.
|Vietnam’s H1 shrimp production down due to unfavourable weather|
[6 October 2016] According to Vietnam’s Directorate of Fisheries’ report, the country’s shrimp production in the first half decreased due to unfavourable weather conditions with prolonged drought, fluctuating salinity and high temperature, causing fluctuating pond conditions, which negatively affected shrimp health and induced disease outbreaks. In H1, farming of brackish water shrimp in the country reached 706,700 ha, an increase of 2.7% over the same period last year. Total shrimp production reached 181,000 tonnes, a decrease of 3% over last year. The Vietnamese Association of Seafood Exporters and Producers estimates that in the second half there will be a shortage of raw shrimp due to drought and salinity, which will affect shrimp exports.
|Selahonje targets 2000 outlets of Hisana Fried Chicken by 2020|
[6 October 2016] Indonesia’s Selahonje Jaya Abadi plans to increase the number of its Hisana Fried Chicken to 2000 take-away outlets throughout Indonesia by 2020. Yudi, Vice President Director said to achieve the ambitious target, the company is now improving its internal system, organisation and fund allocation. “We need a better system and management to manage the 2000 outlets,” he said. Currently the company has 630 take-away outlets spread in 11 provinces. Mr Yudi said the company grew significantly in the past five years. This year it expects to record a 22% growth in revenue. Fried chicken outlet with a take-away concept is booming now in Indonesia. Another main player in this category is Sabana which already has 1700 outlets.
|Lay Hong-NH Food to build USD 7m plant in Malaysia|
[5 October 2016] Malaysian integrator Lay Hong Bhd’s partnership with Japan’s NH Food Ltd has set 2018 as a target for the completion of its USD 7.29 million plant. “We’ll start to build the new plant in Q1 2017, Executive Director Yap Chor How said. NH Foods is Japan’s largest meat packing company. Local daily The Star reported that the new plant will have a production capacity of 1000 tonnes per month to complement the 1600 tonnes per month for the existing plant. The joint venture company will manufacture, distribute and sell processed meat-based foods that will be marketed under the brand name Nippon Nutriplus.
|OSI's Shanghai plant’s food production license revoked|
[5 October 2016] Shanghai Husi Food Co and its regional controller OSI China have been fined a combined USD 3.64 million over out-of-date meat production and sales in 2013 and 2014, said the Shanghai Municipal Food and Drug Administration (SFDA). The Shanghai plant, which has not been operating since July 2014, also had its food production license revoked. “A revocation of food production license does not mean that the plant has to be closed, but it is much harder for it to get a new one and resume production,” Yvonne Jiang, a lawyer with China’s Dacheng Law Offices, told Asian Agribiz. OSI will pay the fine on schedule, according to the SFDA. OSI has been in China for 25 years and has six plants supplying meat products to fast food chains, including two joint ventures with Fujian Sunner and Henan Doyoo. It also operates three specialised fruit and vegetable plants in Guangzhou and Kunming.
|Pakistan sells 1800 broilers at subsidised price to boost production|
[5 October 2016] To encourage domestic poultry farming, the Punjab Livestock and Dairy Development Department sold about 1800 birds at subsidised prices. About 300 units – each comprising five hens and one rooster – were sold to farmers at USD 8 per unit at nine different points. The department plans to distribute 73,000 units of chickens in the 36 districts of Punjab in a phased program. The Lahore district will receive about 18,000 birds, while other districts will be provided 12,000 chickens.
Highlights in Asian Poultry Magazine, October 2016
[5 October 2016]
Poultec achieves good results with wider houses
What are the limits on the width of a closed house? At 100 ft, Poultec Enterprise Sdn Bhd is likely the farm with the widest house in Malaysia allowing for 55,000 birds per house. The Tan brothers tell RACHAEL PHILIP the limits can be managed with attention to sound husbandry practices.
Cargill Joy raises the bar for quality chicken supply
The new joint venture between Jollibee Food Corporation and Cargill Philippines will ensure a steady supply of chicken products for Jollibee’s various brands. But beyond that it also aims to lift chicken production and food safety standards in the Philippines, write ISA Q TAN.
Good biosecurity helps improve Kaithep’s egg quality
Biosecurity has become an indispensable part of good farm management that translates to healthy birds and positive production parameters. Meet Manoch Chootubtim, the owner of Thailand’s Kaithep farm, who says his layers produce quality eggs due in part to his closed farming system and farm location, writes PAYUNGSAK WIRIYABUNDITKUL.
NSP enzymes spare feed ingredients in broiler diets
S.V.RAMA RAO and M.V.L.N RAJU report trials that show exogenous NSP enzymes can improve nutrient digestibility and utilisation in broiler diets.
Early nutrition strategies for peak performance in broilers – processed vegetable protein
APEH A. OMEDE, SLEMAN M. BESKI and PAUL A. IJI present trials that show that feeding a starter feed with a high content of digestible protein pays off as increased weight at slaughter and improved FCR.
Pendulous crop in turkeys - prevention and management
E.TIRUPATHI REDDY, B.V.SUDHAKAR, R.V. SIVAKUMAR, B.SUDHAKAR REDDY and B.SOMA SEKHAR REDDY advise prevention of pendulous crop in turkeys by removing predisposing factors.
Achieving performance in AGP-free broilers
BARBARA BRUTSAERT presents two recent broiler trials from Asian Universities which showed that synergistic additives can achieve same or increased growth performance in AGP-free production systems.
|Thai feed producers delay wheat imports to support domestic corn prices|
[4 October 2016] Thai feed producers recently bought corn from local farmers at above-market prices while delaying wheat imports, supporting local corn prices during the harvest season, Pornsil Patchrintanakul, President of the Thai Feed Mill Association told Asian Agribiz. The Commerce Ministry recently asked feed producers to buy corn from local farmers at prices above USD 0.23/kg. Meanwhile, the current corn prices is around USD 0.17/kg in Thailand. All member of Thai Feed Mill Association, have also delayed importing wheat until the end of corn harvest season. “We are delaying at least 200,000 tonnes of wheat imports from October to December,” Mr Pornsil added. As a result, the domestic corn price will not be affected by wheat imports.
|Lay Hong to expand layer, broiler divisions |
[4 October 2016] Malaysian integrator Lay Hong Bhd has budgeted USD 10.46 million for financial year ending March 31, 2017 for expansion in both its layer and broiler divisions. Speaking to reporters after the company’s AGM and EGM recently, Executive Director Yap Chor How said USD 5.59 million will be utilised for the layer segment, USD 3.40 million for broiler and the remainder for other segments. Malaysia’s Lay Hong hopes to boost organic growth by increasing its production capacity to three million eggs per day and two million birds per month by 2018, from the current 1.8 million eggs per day and one million birds per month.
|Indonesia issues permits for live cattle imports from Mexico|
[4 October 2016] Indonesia’s Ministry of Agriculture has issued import permits to live cattle importers for 200,000 heads of feeder cattle and 200,000 heads of breeder cattle from Mexico. “The imports can start this year,” said Andi Amran Sulaiman, Minister of Agriculture. Mr Sulaiman believes imports of breeder cattle will positively contribute to his ministry’s target of beef self-sufficiency. Enggartiasto Lukita, Minister of Trade said previously the importers depended on Australia, “but now they have a choice. They can import from Mexico.” According to Mr Lukita, Mexico offers competitive live cattle prices and their cattle have good production performance.
|Cargill inaugurates new dairy feed plant in India|
[4 October 2016] Cargill recently inaugurated a new USD 13.2 million feed plant in Bathinda, Punjab – India. This new plant is a testament of Cargill’s commitment to support the growth and development of the booming dairy industry and its farming community in India. The plant will provide consistently high-quality, nutritious and safe feed to dairy farmers in Punjab, Haryana, Uttar Pradesh and Rajasthan. It will produce 10,000 tonnes of feed per month and feed 75,000 cows per day. Achyuth Iyengar, Managing Director for Cargill’s complete feed and nutrition business in India said: “We have been catering to the Punjab dairy farmer for more than 10 years now. The continued trust of the dairy farmers in our feed products has encouraged us to build and invest in this new facility.”
|First Le Porc du Mékong product to hit markets in 2017|
[3 October 2016] Le Porc du Mékong’s safe and hygienically processed pork is expected to be in the market in Vietnam in Q1 of next year. “We hope to start production on the farms belonging to the scheme by the implementation of our standards before year end,” Christophe Guillaume, CEO, Neovia Vietnam, told Asian Agribiz. The scheme is a collaboration between French companies, namely feed additive producer Neovia, breeder company Grimaud Group and meat processor Le Boucher, and 600 Vietnamese farmers, headed by the Animal Husbandry Association of Vietnam. It hopes to reach full capacity of the Le Boucher slaughterhouse by 2022. This translates to 360,000 pigs slaughtered per year.
|Indonesian cattle farmers concerned that imported beef will upset prices|
[4 October 2016] Indonesian cattle farmers are concerned that the government’s efforts to stabilise the price of beef by allowing the imports of secondary cuts and offal and frozen meat will affect traditional markets. Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association, said the imported meat could distort sales of local beef in traditional markets due to price disparity. The average price of imported beef is only around USD 6/kg, while the price of local beef is more than USD 9. Mr Boediyana hopes the government considers this from the perspective of local cattle farmers’ too. “The farmers have to survive, so the government has to help them make profits,” he added.
|Malaysia’s stagnant egg industry could see positive turnaround|
[3 October 2016] Malaysia is seeing a stagnation where consumer eggs are concerned. According to Nourredine el Molaka, General Manager, Sanovo Technology Asia Sdn Bhd, producers are looking for solutions. “Egg processing such as hard boiled and liquid eggs could be a positive turnaround for the country,” he told Asian Agribiz. “These products though are not internationally traded and is mainly for local use. Clients, especially those who produce mayonnaise or cakes, generally want freshly-made liquid eggs for better end results.” He said powdered eggs, which are internationally traded, is not a product for Malaysia because shell eggs are expensive in the country and the cost of production is too high.
|Investment policy in Indonesia’s native chicken business should be changed|
[3 October 2016] According to Ade Zulkarnain, Chairman of the Indonesian Native Chicken Farmers Association (Himpuli), one of several barriers in the native chicken business is limitation on the amount of investment. “Native chicken business is only for local farmers. That’s why the government limits the investment to USD 765,000 per business. However, with the Asean Economic Community, this policy will hamper our competitiveness,” Mr Zulkarnain told Asian Agribiz. “We expect the government to change the policy and invite big companies to invest but only in GP and PS production.”
Regional dairy update
[3 October 2016]
New Zealand assists Sri Lanka in developing dairy sector
New Zealand said it will extend its full assistance to develop the milk production sector in Sri Lanka. New Zealand High Commissioner to Sri Lanka Grahame Morton said his country expects to provide Sri Lanka new technology, industry expertise and grants to enable the island to improve its milk production. According to an FAO report, the country is self-sufficient in most animal products apart from dairy. It imports 75,000 tonnes of milk powder annually. To be self-sufficient a further 482 million litres has to be produced annually. The sector is growing at a rate of 1-2% annually. It needs to grow at about 15% annually for the next eight years.
Vietnam government to sell stake in Vinamilk
Credit Suisse, HSBC, JP Morgan Chase, Nomura Holdings, Rothschild as well as Saigon Securities and Viet Capital Securities are among the financial institutions recently invited by the Vietnamese government for advice on selling its stake in dairy company Vietnam Dairy Products JSC, better known as Vinamilk. The government, through investment arm State Capital Investment Corporation, holds a 44.7% stake in the company. It intends to sell 10%, worth about USD 900 million, and offload the rest incrementally. The first chunk of Vinamilk could be sold at a premium as several Asian companies and private equity firms are jostling for shares. F&N Dairy Investments, backed by Thai beer billionaire Charoen Sirivadhanabhakdi, already owns 10.9% of Vinamilk, and the tycoon is keen to bolster his stake in the company.
Pelwatte Dairy to invest USD 10 million in Northern fresh milk plants
Pelwatte Dairy Industries Ltd in Sri Lanka will invest USD 10 million to build three mini fresh milk processing plants in the north starting this year. Pelwatte Chairman Ariyaseela Wickramanayake said in addition he will also build a milk powder processing factory in Jaffna as well. Mr Wickramanayake said there are over 260,000 dairy cows in the area. “When I visited Jaffna I only saw international milk power brands in the shops. This is why I have decided to have the plant in Jaffna,” he said. Mr Wickramanayake said there is also a tradition in Jaffna where people want to consume fresh milk. He plans to open collection centres in the north to collect milk, pack them and sell them in shops in Jaffna.
|Chooks to Go to open in Malaysia, Indonesia|
[30 September 2016] Bounty Agro Ventures Inc (BAVI) is set to open its first outlet of its popular oven-roasted chicken brand Chooks to Go (CTG) in Penang, Malaysia, BAVI President Ronald Mascariñas told Asian Agribiz. The store, to be operated by Chooks to Go Malaysia Sdn Bhd, which BAVI established with a Malaysian partner, marks the beginning of CTG’s expansion outside the Philippines. He said the company’s commissary in Malaysia is already completed and the store is scheduled to open in November this year. BAVI is also putting up a CTG outlet in Indonesia, which the company targets to open in December this year. Both outlets will initially offer the flagship Chooks to Go flavour as well as a local variant that is suited to the local taste.
|CPF’s compartment systems awarded DLD certification|
[30 September 2016] Charoen Pokphand Foods' (CPF) compartment systems at its nine PS farms and one hatchery in Thailand’s Nakhon Ratchasima province, have been awarded the Department of Livestock Development's (DLD) certificates, guaranteeing the farms and the hatchery are free of avian influenza. The certificate confirms CPF's compliance with the guidelines of the World Organization for Animal Health (OIE). Siripong Aroonratana, Executive Vice President at CPF said the DLD certification confirms CPF’s prevention systems on avian influenza throughout its supply chain. CPF’s nine PS farms, raise some 1.2 million PS and CPF’s hatchery produces 1.7 million eggs a week. Meanwhile, CPF received DLD’s compartment system certificates for its broiler farms and duck farms in 2011. CPF aims to receive DLD’s compartment system certificates for its slaughter houses in 2018, Mr Siripong added.
|Indonesia lifts restriction on imports of secondary cuts, offal|
[30 September 2016] Indonesia has lifted a 21-month restriction on imported rump and chuck steak, in addition to edible offal — including liver, heart, feet and lungs — in a move towards reopening a market worth at least USD 42 million to Australian exporters. The lifting of the blanket restriction, which Acting Prime Minister Barnaby Joyce said will benefit farmers and meat processors, follows the resumption of talks earlier this year towards negotiating a free trade deal between Australia and Indonesia. Mr Joyce said the Indonesian decision will restore certainty to rural communities, noting that Australian producers shipped almost 20,000 tonnes of secondary beef cuts to Indonesia in 2014, representing a USD 42 million share of the total boxed beef trade with Indonesia of USD 327 million. Mr Joyce added that Indonesian demand for protein will continue to increase over the next three decades, with its population forecast to grow by almost 25% to 322 million by 2050.
|South Korea considers lifting ban on Thai frozen chicken|
[30 September 2016] South Korea’s Quarantine Inspection Agency (QIA) delegates visited and inspected 12 Thai chicken plants this week and will decide later this year whether to lift its 12-year ban on Thai frozen chicken, said Sorravis Thaneto, Deputy Director General of Thailand’s Department of Livestock Development (DLD). Frozen chicken exports were suspended in 2004 due to outbreaks of avian influenza in Thailand. The country exported 42,580 tonnes of frozen chicken to South Korea in 2002. Dr Sorravis said there are 53 plants, which aim to export frozen chicken to South Korea. QIA has inspected disease surveillance systems, hygiene systems and food safety systems at the plants. If South Korea gives the green light to Thailand, chicken producers will export its frozen chicken products to South Korea early next year, Dr Sorravis said, adding “we estimate that our export prices will be around USD 3200 per tonnes.”
|Indonesia setting up integrated fish cold storage in Natuna|
[30 September 2016] Indonesia’s Ministry of Fisheries & Marine Affairs is currently setting up an integrated cold storage facility in Natuna archipelago. The facility, which will have a capacity of 200 tonnes and cost around USD 856,000, is expected to start operation in early 2017. The facility will be equipped with an air blast freezer and a 10-tonne ice flake machine. Nilanto Perbowo, Director of Fish Products Competitiveness said once the project is finished, the ministry will expand the capacity to 3200 tonnes. “With the facility, we want to enhance our fish quality and production efficiency. In addition, we want to attract local and foreign investors to invest in fish processing facilities in Natuna archipelago,” said Mr Perbowo.
|Shortage of chicken in the Philippines possible during Christmas holidays|
[29 September 2016] The Philippines could be facing a shortage of chicken during the latter part of the year particularly during the Christmas holidays, Ronald Mascariñas, President of Bounty Agro Ventures Inc (BAVI), one of the Philippines leading poultry integrators, told Asian Agribiz. While there is currently an oversupply in Luzon, which has led to a drop in live prices, he said the same is not true in the Visayas and Mindanao, where prices have gone up due to tight supply. Industry monitoring indicates a possible shortage, he said, adding that it would be a good idea for the government to allow some imports later this year just to help stabilise prices.
|India’s egg processing industry needs a backup plan |
[29 September 2016] India exports roughly 15,000 tonnes of egg powder per year. Some 40% of the country’s exports go to Japan followed by Europe (30%), Russia and others. According to Viney Sharma, Consultant, the export market is seen to grow 5-7% per year. Despite this it could face challenges as almost all of the products are exported. “The industry is subject to international fluctuations. There is almost no domestic market to absorb the difference. The local market prefers shelled eggs as it is cheaper. India must create a local market and promote these products as processed eggs are safe and convenient,” he told Asian Agribiz at the recently-concluded IEC Global Leadership Conference in Kuala Lumpur.
|China imposes anti-dumping measures on US DDGs|
[29 September 2016] China has decided to impose anti-dumping measures on distiller's dried grains (DDGs) from the US by requiring importers to pay cash deposits on purchase, effective September 23, the Ministry of Commerce said in its preliminary ruling following an investigation launched early this year. Importers of the product must place deposits with China Customs at 33.8% of the import value, according to the ruling. Data from China’s Ministry of Agriculture shows that the nation imported 1.92 million tonnes of DDGs in the first seven months of 2016, down 46% from a year earlier.
|Indonesia is not serious about beef self-sufficiency|
[29 September 2016] Executive Director of the Institute for Development of Economics and Finance, Enny Sri Hartati said Indonesia’s government is not serious about achieving beef self-sufficiency. “The government should increase local beef production and decrease beef import volume,” she said. In 2015 the government was ambitious about this by targeting to import 50,000 heads of breeding cattle. The figure was then dramatically slashed to only 5000 heads, and until now this plan has not been realised. On the other hand, the government chose to flood the market with imported beef, not only with beef from Australia, but also with carabeef from India. The focus now is on protein self-sufficiency rather than beef self-sufficiency."
|Yeeda eyes beef markets in Southeast Asia|
[29 September 2016] Western Australia’s Yeeda Pastoral Company, which is mainly financed by Hong Kong based ADM Capital, has officially opened its Colourstone processing facility near Broome. The facility is capable of processing 37 heads of cattle per hour, or up to 70,000 heads per annum, on one shift. Chris Botsford, founding partner and joint CIO of ADM Capital, said demand for good quality beef in emerging markets is increasing. “Yeeda’s processing facility will produce halal certified beef that is in demand in various markets of Southeast Asia and the Middle East,” said Mr Botsford. Yeeda is a fully integrated beef production, processing and distribution business in far north Kimberley region, with 80,000 heads of cattle and capacity to increase its herd to 100,000 heads.
|Native chicken to be priority in animal protein self-sufficiency |
[29 September 2016] Indonesia is dependent on supply from foreign countries such as the US, Germany and France for commercial broiler and layer GGPS, GPS and PS. According to Nasrullah, Director of the Directorate General of Livestock & Animal Health of the Ministry of Agriculture, the time is right to focus on breeding native chicken. “It’s a long-term investment, but it’s important for the supply sustainability of chicken in the country,” he said. Mr Nasrullah revealed that the Ministry of Agriculture has included native chicken as one priority in the road map for animal protein self-sufficiency 2045. “We expect local companies to help produce and distribute quality native chicken breeds throughout the country,” he said.
|Mindanao pig producers have most potential for pork exports from Philippines|
[28 September 2016] Pig producers from Mindanao, particularly those in the Soccskargen region, have the most potential to export Philippine pork. “We have the most competitive, if not the cheapest, price throughout the Philippines,” Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz. The region includes General Santos City and nearby towns, which collectively make up one of the biggest pig production areas in the country. Earlier, Philippine Agriculture Secretary Manny Piñol said the government will support the revival of plans to export pork, but Mr Tan said there is need to study what is the most effective negotiation strategy to take for exports to happen: government to government, private to private or private to government.
|Thailand’s Bangkok Ranch sets up new subsidiary and joint ventures|
[28 September 2016] Thailand’s Bangkok Ranch (BR) will set up a new subsidiary and two new joint ventures, aiming to expand its existing and new business. The company will soon establish its new wholly owned subsidiary, Crowned Eagle Company limited. Crowned Eagle, which has a registered capital of USD 288,882, will engage in retail, food and restaurant business. Moreover, BR will set up two new joint ventures, Kosovo Food Company limited and Heng Tai Company Limited. BR’s investment value in Kosovo Food will not exceed USD 168,781 and it will engage in food manufacturing.
|Sumber Unggas supplies black chicken to supermarkets in Jakarta|
[28 September 2016] Sumber Unggas Indonesia, one of the largest native chicken breeder's based in West Java, has started selling Cemani (black chicken) carcass to retailers in the Greater Jakarta. “We have supplied our Cemani carcasses to Carrefour and Lotte Mart. A 600-700g Cemani carcass retails at USD 7.65,” Naryanto, owner and Managing Director told Asian Agribiz. “Demand is growing. Currently we have around 3000 Cemani chicken PS in our breeding facility in Bogor regency. We plan to increase the PS numbers following the increasing carcass demand,” he said. Sumber Unggas has a 2000 bird/hour chicken processing plant to process its Cemani chicken.
|China extends anti-dumping duties on US chicken|
[28 September 2016] China has decided to maintain anti-dumping duties on imports of US white-feather broiler products for another five years, effective September 27, said the Ministry of Commerce. The duties are mostly set at 60.7%, with Pilgrim's Pride, Tyson Foods and Keystone Foods incurring 73.8%, 49.5% and 46.6%, respectively. Earlier, China decided to impose five more years of anti-subsidy duties on US chicken. Both the duties expired last September, and a new investigation by the commerce ministry found that “the domestic broiler industry could be jeopardised if the duties stopped”.
|Proper system should be in place to control poultry diseases|
[28 September 2016] Diseases such as avian influenza can only be controlled if the birds are culled. According to Ben Dellaert, Chairman, International Egg Commission (IEC), there must be a system to have disease registered as soon as possible or it will be difficult to stem the outbreak. “Most important here is a compensation system. Producers must report outbreaks but if they do not know how it will end financially for them they may be reluctant to report. So it is important for governments to have a decent compensation scheme. This is done differently in different countries,” he told Asian Agribiz at the recently concluded IEC Global Leadership Conference in Kuala Lumpur.
|Indonesia’s Modern International to relocate low-performing 7-Eleven outlets|
[28 September 2016] In order to achieve a total income of USD 92 million, Modern International, the operator of 7-Eleven in Indonesia, has decided to consolidate its business and relocate several low-performing outlets. “Our main target consumers are office workers. So we will relocate the low-performing outlets to more prospective locations,” said Neneng Srimulyati, PR Corporate Communication. In the second half of this year, Modern, which currently has 188 7-Eleven outlets, plans to open 12 new outlets. For this expansion, the company has allocated around USD 765,000.
|Putra Perkasa Genetika to launch hybrid duck|
[27 September 2016] After taking five years of selection and more than USD 153,000 in investment, Indonesia’s Putra Perkasa Genetika will soon launch its meat-type duck Gunsi 888. Gunsi 888 is the crossbreed of native Mojosari duck and Khaki Campbell duck. Ang Hendra, owner & Managing Director told Asian Agribiz that the hybrid duck takes only 35 days to reach 1.2-1.4 kg of harvest weight. Currently Putra Perkasa produces 550,000 DOD/month from its 60,000 PS farm in Gunung Sindur, Bogor. With the new hybrid duck, the company plans to increase its DOD production to 1 million/month in 2017, and then 2 million/month in 2018. For this target, Mr Hendra said the company has prepared 24 farming houses and eight incubators with a capacity of 70,000 eggs per incubator.
|Vissan imports breeders to improve productivity, traceability|
[27 September 2016] Viet Nam Meat Industries JSC (Vissan) has brought in 220 GGPs from the US which the company said will result in better productivity and lower cost, as well as allow traceability in Vissan’s closed production chain. Luu Ngoc Giao, Director of Vissan’s swine production farm, said that “importing breeders is an important part in our strategy of developing the productivity and quality of the breeding herd and completes the company's 3F (Feed-Farm-Food) traceability program.” The GGPs consist of Duroc, Landrace and Yorkshire breeds from Clayton Agri-Marketing and Vissan expects to start selling commercial pigs from these breeders in 10 months.
|Increase of 5-7% in Thai chicken meat production in 2017 |
[27 September 2016] Thai chicken meat production is forecast to increase by 5-7% in 2017 due to potential growth in export demand driven by the robust prices for live broilers and chicken meat and the anticipated increase in chick production capacity, according to the USDA's GAIN report. Also, reflecting trends in the tourism industry and an anticipated recovery in the Thai economy, domestic consumption of chicken meat should increase by 4-5% in 2017, as compared to 3% in 2016. This year, Thailand’s broiler industry successfully avoided the potential supply bottleneck which could have occurred after the Thai Government imposed an import ban on chicken genetics from the US in December 2014. Chicken meat production for 2016 is estimated to grow by 5% over the 2015 level.
|IEC to push for sustainable production at OIE working group on animal welfare|
[27 September 2016] There are regional differences with egg production and one global recommendation for animal welfare for the industry will not work. Ben Dellaert, Chairman, International Egg Commission (IEC), said the World Organisation for Animal Health’s advice on animal welfare of hens is due in 2019. Discussions start end of the year and the IEC is a participant in the working group. “In the US and Europe there is demand for cage-free products. In Latin America and Asia the demand is different. Here it is important to deliver affordable eggs sustainably. Market and science must be the driver of the recommendation,” he told Asian Agribiz at the recently-concluded IEC Global Leadership Conference in Kuala Lumpur.
|Australian beef, cattle exports face challenges from Indian carabeef|
[27 September 2016] Australian Meat Industry Council Chairman, Lachie Hart said the biggest challenge facing Australian beef and live cattle exports to Indonesia is the importation of cheap Indian buffalo meat. “It is something we are watching and we are concerned from a couple of fronts,” he said. “It is a cheap protein [the buffalo meat from India]. It is certainly going to compete directly with our secondary cuts and our offal items in that particular market. But I am concerned that we don't see Indian buffalo meat imports undermining the whole market in Indonesia,” Mr Hart explained. According to him, it is important for Indonesia to maintain some level of base pricing to ensure its own domestic production is viable and sustainable in the long-term.
|Japan, Korea interested to invest in India’s seafood industry|
[27 September 2016] Two major forces in the seafood sector, Japan and Korea, have expressed interest in investing in value addition of seafood products in India which have touched USD 4.5 billion annually in exports, according to Nirmala Sitaraman, Union Commerce Minister. “Japan and Korea can bring the technology and best practices from the world over and implement it here in a cost effective manner,” Ms Sitaraman said. At present Andhra Pradesh accounts for 45% of India’s total seafood exports. “We want to increase it to 60-70% in the next couple of years. We have already increased allocation for the seafood sector,” said N Chandrababu Naidu, Andhra Pradesh Chief Minister.
|Thailand’s Bangkok Ranch to expand its food business|
[26 September 2016] Thailand’s Bangkok Ranch (BR) aims to expand its food business in European markets, Joseph Suchaovanich, Managing Director of Asia and Asia Pacific at BR told Asian Agribiz. “BR foresee intense competition in the live ducks segment in Europe,” he said. Meanwhile, Chinese players have expanded their roasted duck business in European markets. BR recently bought a food processing plant in Pathum Thani province and the company is sourcing equipment for the new plant. “The combined investment will be around USD 20 million. In the near future, we will export more processed SKU of duck meat to Europe, Japan and other countries,” Mr Joseph said, adding that these new products will offer better profit margins and help reduce pressure from conventional products and markets.
|Sumber Unggas to produce 100k native chicken DOC a week|
[26 September 2016] Sumber Unggas Indonesia, one of the largest native chicken breeder based in West Java, early next year will start to construct five new native chicken PS houses with an investment of USD 191,000. Naryanto, owner and Managing Director told Asian Agribiz that the new semi-closed houses are targeted for operation at the end of 2017. “With the new houses, we will be able to produce 100,000 native chicken DOC per week,” said Mr Naryanto. Sumber Unggas produces different types of native chicken DOC including KUB, selected Sentul, KUB-Sentul crossbreed, Cemani (black chicken), Kedu and Pelung.
|Muyuan Foods to build 1m head pig farm in central China|
[26 September 2016] Chinese pig producer Muyuan Foods said it has signed an agreement with the city government of Laohekou in central China to build a pig farm that is able to produce 1 million heads a year. A 300,000 tonne feedmill will be added to the project that is estimated to cost over USD 172 million. Muyuan’s first-half live pig sales increased 35% year-on-year to 1.15 million heads, including 0.83 million finished pigs and 0.32 million piglets. The company targets to produce 2.8-3.5 million pigs this year.
|France to establish sustainable pork production chain in Mekong|
[26 September 2016] Paris has just inked a cooperative agreement between French enterprises and Vietnamese pork farmers to establish a safe pork production chain called ‘Le Porc du Mekong’. The agreement aims to produce safe, high quality pork products as well as establish a transparent, strictly controlled closed pork production system in Vietnam’s Mekong Delta. French companies that are participating include Neovia Vietnam to provide feed, Grimaud Group for breeders, and Le Boucher, who will take charge of processing and distributing finished products to the market. Already some 600 Vietnamese pork producers have expressed their wish to officially participate in the project.
|Indonesian government recommends import of 66,000t of beef|
[26 September 2016] Indonesia’s Ministry of Agriculture has given import recommendations to 14 importers to bring in 66,158.5 tonnes of beef to the country for the horeca and meat processing industries. Of this figure, allocations for secondary cuts and industrial meat are 21,991 tonnes and 21,765 tonnes, respectively, while the remainder is for premium cuts. Sri Mukartini, Director of Veterinary Public Health said: “We don't use quarter-based import system anymore. Beef import can be done throughout the year.” Of the 14 companies, Ms Mukartini said Agro Boga Utama (11,275.7 tonnes), followed by Indoguna Utama (9000 tonnes) and Bayu Jaya Lestari (7000 tonnes), received the largest import quota.
|Nampa members eye regional export markets|
[23 September 2016] Indonesian meat processors incorporated under the National Meat Processors Association (Nampa) are considering exports. Ishana Mahisa, Nampa Chairman told Asian Agribiz that they are exploring market potential in the Southeast Asian region. “Canning Indonesia Products, our member based in Bali, exports its canned meat products to Brunei and Vietnam. In the near future, San Miguel Pure Foods Indonesia will also export its products,” he revealed. Mr Mahisa said this is proof that the government has to support this industry. “We hope the government will allow imports of chicken MDM [mechanically deboned meat] to further develop this promising industry,” he added.
|China lifts 15-year ban on US, Canadian beef imports|
[23 September 2016] China has lifted a ban on imports of deboned and bone-in beef from US cattle below 30 months, effective September 22, said the Ministry of Agriculture (MOA) and the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). The US beef imports are still subject to Chinese standards on traceability and quarantine, which will be released later, said the two ministries in a joint statement. Meanwhile, the AQSIQ and MOA said the nation also lifted a ban on Canadian bone-in beef from cattle below 30 months, effective September 19. Products from the US and Canada were banned by China from 2001 on concerns over the spread of mad cow disease.
|Thailand’s CPF sees growth potential in premium sausage |
[23 September 2016] Although the market value of premium sausage is small in Thailand, the segment has future growth potential, Thailand’s Charoen Pokphand Foods (CPF) told Asian Agribiz. “We believe that the premium sausage market will continue to grow. Sausage is easy to consume and the products are convenient and suitable for all ages,” it said. Moreover, the passion for food is growing in Thailand, opening more opportunities for premium sausage. CPF has launched its premium sausage under the Bucher brand. The brand targets urban consumers, who prefer original sausage recipes. The company said that its raw material, including pork and chicken meat, is free of growth promoters and beta-agonist. CPF has developed original German sausage recipes for the Bucher brand.
|Sumber Unggas receives breed acceptance certificate|
[23 September 2016] Sumber Unggas Indonesia, one of the largest native chicken breeders based in West Java, yesterday received the breed acceptance certificate (SKLB) from the West Java Animal Husbandry Agency for the production of selected Sentul chicken PS. “With the SKLB, our customers will be guaranteed that the Sentul chicken PS we produce follows good breeding practices,” Naryanto, owner and Managing Director told Asian Agribiz. Currently Sumber Unggas is able to produce 3000 selected Sentul chicken PS DOC per month. The price of Sentul chicken PS DOC is USD 2.3. “Half is sold to native chicken breeders under the Indonesian Native Chicken Breeders Association [Gapali] and the rest is for my internal needs,” said Mr Naryanto.
|Nepalese millers lower feed prices over input price drop|
[23 September 2016] The price of poultry feed in Nepal has contracted by as much as USD 0.02/kg. Price of a 50-kg bag of broiler feed has come down by USD 0.93, while a 50-kg bag of layer feed now costs USD 0.69 lower. Rabin Puri, General Secretary of Nepal Feed Industries Association, said the association decided to reduce the price of feed after the price of key inputs fell. “The price of soybean meal and corn has come down. It is expected to go down further,” he added. Over a dozen companies in the country are producing poultry feed. All of them have lowered their price following the decision of the association.
|Eggs offer a good daily dose of Vitamin D|
[22 September 2016] "Enhancing eggs with Vitamin D can help producers add to their margins as well as contribute to better health for consumers," Linda Christine Browning, Nutrition Consultant, University of Sydney, Australia told Asian Agribiz on the side-lines of the International Egg Council's Leadership Conference in Kuala Lumpur, Malaysia yesterday. "Vitamin D is good for strong bones and controls 85% of the calcium transfer across the intestines. Its importance to human health is profound and eggs are a valuable source of Vitamin D," she explained. Dr Browning will be addressing participants at Asian Agribiz's Layer Feed Quality Conference in Jakarta, Indonesia and Kuala Lumpur in October. More details and registration form are available here.
|Indonesia to increase corn planted area to meet feed industry demand|
[22 September 2016] Indonesia’s Ministry of Agriculture has firmly said that it will continue to suspend corn imports. To meet local demand, especially from the animal feed industry, the ministry has allocated USD 228 million to increase corn planted area in the country. The ministry targets to open 724,000 ha this year and 300,000 ha next year for corn planting. “We will support corn farmers with hybrid corn seed, fertilizer and pre and post-harvest equipment,” said Andi Amran Sulaiman, Agriculture Minister.
|CP Vice Chairman joins Yum China board|
[22 September 2016] Yum! Brands Inc has named nine new directors for the board of Yum China Holdings, including Chan Yiu-Cheong, Vice Chairman of Charoen Pokphand Group. Mr Chan, the former President and CEO of Walmart China, has also been an Executive Director and Vice Chairman of CP Lotus since April 2012. The new board will be led by Fred Hu, Chairman and Founder of investment firm Primavera Capital Group that will make a USD 410 million strategic investment in Yum China, concurrent with the completion of Yum China’s spinoff from Yum! Brands. The spinoff is expected to occur on October 31, with Yum China to commence trading on the New York Stock Exchange as an independent company on November 1.
|Malaysia to roll out corn planting project to slash feed ingredients import bill|
[22 September 2016] Malaysia currently imports 4 million tonnes of corn worth about USD 775 million a year. According to Agriculture and Agro-based Industry Minister Datuk Seri Ahmad Shabery Cheek the import of corn causes a high outflow of currency to foreign markets. “The trade deficit for Malaysia’s agro-food was USD 4.5 billion in 2015 and feed made up USD 1.4 billion of the cost, about 50% from corn alone,” he said. The minister hopes roll out a corn farming project nationwide within two years to reduce the country’s dependency on imported corn by at least 50%. “Corn is a crucial raw ingredient for feed, but we import nearly 100% of it,” he said.
|Itochu’s Canadian subsidiary to expand production for Japan market|
[22 September 2016] Itochu’s Canadian subsidiary HyLife Group Holding plans to boost its pork production with a USD 87.9 million investment as demand from Japan continues to grow. HyLife expects supply to increase by 15% in 2018. The company will develop products that match consumer tastes and are priced about 30% below Japanese pork. HyLife is a swine integrator that produces feed, operates swine farms and does processing. It exports roughly 40% of its production to Japan. Pork consumption rose 3% in fiscal 2015, Japan’s Agriculture Ministry reported. More than half of the meat was domestic, with the rest coming from the US, Canada and Denmark. Mexican pork is also making gains.
|Japfa and Cargill jv in cooked poultry products production|
[21 September 2016] PT So Good Food, the Indonesian subsidiary of Japfa Ltd, and PT Cargill Food Investment Indonesia have entered into a 40-60 joint venture to produce and supply fully-cooked poultry products in Indonesia. The strategic partnership will further boost PT So Good Food’s capabilities in consumer food processing technologies, product innovation and quality assurance by leveraging Cargill’s broad industry expertise. Both Japfa and Cargill will also work together to produce a new range of value-added consumer food products. Besides toll manufacturing for PT So Good Food, the joint venture company, PT Cahaya Gunung Foods, will supply high quality products to the institutional sector as well as convenience stores and petrol kiosks in Indonesia. It will also have the capability to export products to the region.
|BRF buys 70% stake in Malaysian meat processor |
[21 September 2016] Brazilian food conglomerate BRF has entered into an agreement with Malaysian agri-food company FFM Bhd to acquire 70% stake in its subsidiary FFM Further Processing for USD 16 million. This comes as the business embarks on a major effort to enhance its position in Southeast Asia. BRF said its investment in the company is “In line with BRF’s strategy… to strengthen its focus in Muslim markets”. The further processing company produces 250 tonnes of frozen sausages, chicken nuggets and burgers per month. These products are sold under the brand names Marina and Seri Murni.
|Vasep to sue US over unreasonable anti-dumping tariff on shrimp|
[21 September 2016] The Vietnam Association of Seafood Exporters and Producers (Vasep) said it plans to sue the US Department of Commerce over its final conclusion in the 10th administrative review (POR10) of anti-dumping duties on shrimp products imported from Vietnam. Vasep denies the charges and will ask for the tariff to be brought back to zero level. According to the Vietnam Competition Authority under the Ministry of Industry and Trade, POR10 was applied to frozen shrimp shipments imported into the US from February 1 2014 to January 31 2015. Voluntary respondents are subject to an anti-dumping duty rate of 4.78% while the tariff imposed on other Vietnamese firms or exporters remains at 25.76%.
|Indonesia’s Ag Ministry ties with millers to absorb local corn|
[21 September 2016] Indonesia’s Ministry of Agriculte has signed an MoU with the Indonesian Feed Millers Association (APPI) to absorb 8.62 million tonnes of local corn at a competitive price for the next 12 months. As many as 41 feed millers will buy the corn at the government’s fixed price of USD 0.24 per kg. The cooperation will be implemented in 29 provinces, in which each province will have one miller as the coordinator. Desianto Budi Utomo, APPI Secretary General said the association is ready to support the program, especially while the government is halting corn imports, forcing them to rely on local corn for the production of animal feed.
|SOPA promotes sbm exports to five Asian nations|
[21 September 2016] Encouraged by a good harvest of soybean this season, India’s Soybean Processors Association (SOPA) is sending a five-member delegation to Far-East and South-East Asian countries to promote export of soybean meal (sbm). The government has extended its support to SOPA in its promotion efforts. The delegation, led by Chairman Davish Jain, will be visiting Thailand, the Philippines, Vietnam, Indonesia and Japan this month. According to Dr Jain, the delegation will explore markets in these countries and meet buyers and trade bodies. India's exports declined in the last couple of years, due to disparity in prices. In view of the good crop prospects, SOPA sees the possibility of India re-entering these markets with competitive prices.
Innovation leads value-added seafood category to big gains
[19 September 2016]
The value-added seafood industry across Asia continues to grow, backed by lifestyle changes, a growing middle class and consumers who are health conscious. But Asian consumers are not looking for ordinary seafood products, they demand convenient, healthy and delicious products.
Seafood moving towards further processed products in Thailand
Thailand has seen many value-added seafood products that suit consumer lifestyle and are beneficial to health, being introduced said Anurat Khokasai, CEO of Thailand’s Prantalay Marketing. However, value-added products alone are not enough to win over consumers. Prantalay understands Thai consumer behaviour and has identified some major trends. “Consumers want convenient, healthy and delicious food, at a good price. The food industry will change and follow the trends,” said Mr Anurat. In order to stay competitive and satisfy consumers, Pratalay produces a range of frozen and chilled products, ready meals, seafood snacks, fish noodles, imitation crab and shrimp.
CP Prima develops its further processed seafood business
Indonesia’s largest shrimp producer and processor Central Proteina Prima (CP Prima) is bullish about seafood based ready-to-cook (RTC) and ready-to-eat (RTE) products in Indonesia. Sutanto Surjadjaja, Vice President Director, said this category is relatively new in Indonesia. However, “we believe this category, along with the economic growth and lifestyle changes, will continue to grow,” he said. Currently, CP Prima has two further processing plants in Lampung and East Java with installed capacities of 350 tonnes/month and 100-150 tonnes/month, respectively. “In total, our current installed capacity is around 500 tonnes/month, while the used capacity is half. And we are now looking for a location to set up a new plant,” Mr Surjadjaja said.
Adib to venture into further processed fish products
Indonesia’s Adib Global Food Supplies, a leading halal meat and seafood distributor and processor, plans to venture into further processing. “We have produced nuggets and balls from pangasius. It’s still on trials, but we will produce for commercial sales soon. For that, we will install a fish ball machine,” said Ardi Wijaya, Adib Vice President, adding that the company will also produce fish paste or surimi in the near future. Adib will focus on further processed products as the profit margin is good. Within the next five years, production of its further processed products should be bigger than the fillet production said Mr Wijaya. Meanwhile, every day Adib’s fish processing facility in Karawang, West Java processes 6 tonnes of pangasius and produces around 2.5-3 tonnes of pangasius fillet.
Consumption of aquatic products in China is set to grow
Zhanjiang-based prawn and tilapia integrator Guolian Aquatic Products Co is China’s largest exporter of prawns to the US, accounting for about 40% of the total. It is the only seafood company in China that can export shrimp to the US at no tariff. Nevertheless, the company has been expanding its presence in the domestic market since 2014 by introducing premium seafood worldwide for local consumers. “China has a population of nearly 1.4 billion, and people here have a special liking for delicacies,” Guolian said in a statement. “With the rise of their income level, more and more Chinese demand nutritios, and the consumption of aquatic products is set to grow,” it said. Guolian also added that product R&D is crucial for the seafood sector and seafood suppliers need innovations in nutrition and preservation to lead the consumption trend.
Gadre Marine bullish on India’s value-added seafood market
India’s Gadre Marine, a seafood processing and packaging unit, aims to double its revenue this year. “We have finished at USD 82 million,” said Arjun Gadre, second generation of the family business. Hence, the company targets sales of its value-added seafood products in local markets to reach 500 tonnes this year, from 250 tonnes last year. For exports the company last year exported 34,000 tonnes of fish and produced about 14,000 tonnes of value added products made from shrimp, squid, cuttlefish and other fin-fish. Meanwhile, Mr Gadre said the taste and habits of the consumers in India are changing. Especially in seafood, now the customers are accepting the frozen fish due to its good quality and availability throughout the year. Also the young generation prefer ready-to-cook and ready-to-eat seafood due to its cooking convenience.
Thailand’s CP Foods expands to India
Thailand’s Charoen Pokphand Foods (CP Foods) has started a processing plant in India, with plan to install machinery for producing cooked shrimp for the US market, said an executive of the company. In March, the company started production in a plant in Visakhapatnam, Andhra Pradesh. At the moment, CP Foods is looking to ramp up to 6000 tonnes of finished product volume. The focus is on commodity products at the moment, but CP Foods will gradually introduce cooked products and then other value-added items in the future, the executive said. CP Foods has leased a plant, he said. “We will put in a cooked line, later this year or early next year.” Meanwhile, the company has expanded production from its own farms in India to 1500 tonnes, he said.
Thai Union eyes India market
Thai Union Group (TU) is expanding to India, driven by the impact of EMS in Thailand. “We don’t want to rely on only one source. If disease comes, we want to minimise the risk, manage the risk. For Thai Union and also our customers,” said Rittirong Boonmechote, TU President for Global Shrimp Business. TU has a joint venture in India. Test production will start in June in Avanti Foods, the Indian joint venture plant with Avanti Feeds. Mr Rittirong said he wants the plant to be able to produce a full range of products, including value-added. “We can provide more variety of sources all of the same quality, with everything managed by our people,” he said. The plant will house raw, cooked and value-added production lines with raw material production capacity of over 25,000 tonnes a year, Mr Rittirong said.
Milkfish products in the Philippines
When it comes to further processing, the product that gets the most attention in the Philippines is the milkfish, locally known as bangus. It is now available in a variety of cuts and RTC and even RTE preparations in supermarkets. The most common processed milkfish products on the market today are boneless bangus. For most processors, domestic market where margins are better, is priority. Although popular among Filipinos, many overseas markets are still unfamiliar with the milkfish. Thus, export volume is relatively small. One big processor that is present in the export market for milkfish is Fisher Farms Inc (FFI). It exports about 60% of its products. About 30% goes to the horeca industry and only 10% is served in the retail market. FFI has been introducing and promoting value-added milkfish products in supermarkets and groceries.
Challenges in the Philippines’s value-added seafood industry
Although the seafood potential is huge, there are challenges to value addition in the Philippines. In the Philippines one challenge is that most local consumers still prefer their fish fresh. The FAO notes that about 70% of the fish is either consumed fresh or chilled. Philippine processors, meanwhile, are increasingly turning to mechanisation and better technology to reduce cost and ensure consistent quality. However, the next challenge is consistent supply, especially for processors of seasonal products like shrimp, tuna, cuttlefish and crabs. Chingling Tanco, Managing Director of Mida Trade Ventures International Inc and Mida Food Distributors Inc, said many local processors in the Philippines are unable to achieve economies of scale because supply of raw material can run short in the local market.
Growing RTE market in Malaysia
Malaysian medium-sized company Seiko Foods, a processor of halal value-added seafood products, has adopted a new strategy for the local market. The company produces ready meals packed in aluminium trays. The containers act as both baking trays to cook the frozen meal as well as a plate to eat the meal. This has given the company the breakthrough it needed to advance into the RTE market. The company has introduced Yellow Tumeric Sauce, Spicy Thai Sauce, Sambal Tumis Sauce and Ginger and Garlic Sauce, all using fillets of the white tilapia. According to Alan Lim, Seiko Foods CEO, the products were developed for the China market. The company is hoping to get funds to be able to export its products.
Malaysia’s Figo Foods expands capacity of seafood products
Malaysian company Figo Foods, a subsidiary of QL Resources, is the largest surimi fish paste maker in Asia. “Besides adding value, we want to give our customers convenience,” said Lee Teck Wee, Figo Foods Executive Director. The company produces various value-added products including cuttlefish balls, fish balls, prawn balls, and samosa. By June 2017 Figo Foods hopes to fully operate out of a new processing plant with a capacity to produce 40 tonnes/day of seafood products and is expandable to 60 tonnes/day. Its existing plant, can produce up to 12 tonnes of seafood per day. One of many reasons for the new plant is parent company QL Resources’ decision to enter the convenience store business with Japanese franchise FamilyMart. When FamilyMart opens it outlets, Figo Foods hopes to be ready with its range of premium RTE products.
|Cargill Indonesia building new feedmill in East Java|
[16 September 2016] Cargill Indonesia is currently setting up a new feedmill in Pasuruan, East Java with an installed capacity of 100,000 tonnes/year. This facility is expected to start operations in early 2017. Arief Susanto, Director told a local media that the construction is already around 70-80%. “Once the feedmill is ready for operation, we will use the capacity gradually. In the first phase, we will use around 30-40% of the installed capacity,” Mr Susanto said. With the addition of the new feedmill, Cargill Indonesia’s total feed production capacity increased to 400,000 tonnes/year. In the country the company already has six feedmills located in North Sumatera, Banten, West Java, Central Java, East Java and South Sulawesi.
|Vietnam to focus on native chicken development|
[16 September 2016] Vietnam’s Department of Livestock Production said the price of commercial broiler will continue to decline and has urged local enterprises to focus on stocking coloured feather chicken, or native chicken. It justified this call by saying that coloured chicken better suits local consumer preferences and requires low investment. Besides it uses local feed which is easily available and cheap compared to commercial feed. Coloured chicken is also said to be better priced in the local market. White chicken growers in Vietnam and especially in the southern poultry production hub of Dong Nai and Binh Duong provinces, are facing losses due to heavy dependence on input elements such as breeding stock, feed, veterinary drugs and low breeding technology as well as high production cost.
|GGL develops grassroots cattle breeding program|
[16 September 2016] Indonesia’ Gunung Sewu Group’s subsidiary Great Giant Livestock (GGL) is helping to support Indonesian cattle farmers to increase their herds. Concerned about the sustainability of the beef industry, GGL has a grassroots breeding program underway targeting small farms. Dayu Ariasintawati, Director said GGL is introducing stock with stronger genetics to improve local herds. “That’s part of the teaching and how to do the breeding to avoid negative selection,” she said. Ms Ariasintawati further explained that the company wants to work with farmers to define any opportunity to develop the business model. “Hopefully with this operation, with careful calculations, we can have a model that’s beneficial for both parties,” she added.
|Korea, Japan top buyers of US beef|
[16 September 2016] Asian markets outside China, notably South Korea and Japan, were the biggest buyers of US beef in July, said trade data from the US Meat Export Federation. Beef exports to Japan increased by 12% compared to a year ago while beef shipped to South Korea rose by 37%. Both countries also increased imports of US beef offal in July. January to July imports of US offal are up 6% from last year’s figure with the US exporting a total of 185,722 tonnes of beef by-products worth USD 4921 million. “We are pleased to see demand for US beef variety meats increasing in other markets,” said Philip Seng, USMEF President and CEO.
|Russia looks to flood Asia with soy, wheat and fish|
[16 September 2016] In five years the Russian Far East hopes to export food products to Asian countries. The devaluation of the rouble, the cost of labour and energy in Russia has decreased significantly making agricultural products up to 15% cheaper than in China, said Vitaly Sheremet, KPMG Partner in Russia and China. The most promising markets for the Russian Far East are China, South Korea and Japan, he added in an article. According to the Russian Ministry of Agriculture, Russia faces a huge trade deficit with Asian countries in agricultural products. Exports from Russia total just 29% of the overall trade between Russia and Asian countries.
|Shuanghui to sell chilled pork products on JD.com|
[15 September 2016] China’s top pork processor Shuanghui Group said it has signed an agreement with JD.com to sell its chilled pork products via the Chinese e-commerce giant, which has about 180 million active users. The products put up for online sales include pork slices, dices and minces, and will be expanded to prepared items, soup dishes and snacks. Shuanghui introduced China’s first chilled pork processing line in 2000, and now the company has 18 chilled pork complexes across the country and is able to deliver its products to almost all provinces within a day with cold chain. “There is great potential for chilled pork consumption in China, as warm meat still dominates the market, while chilled products account for only 20%,” Shuanghui said.
|Bayer and Monsanto to merge|
[15 September 2016] Bayer and Monsanto yesterday announced that they signed a definitive merger agreement under which Bayer will acquire Monsanto for USD 128 per share in an all-cash transaction. Monsanto's Board of Directors, Bayer's Board of Management and Bayer's Supervisory Board have unanimously approved the agreement. This transaction brings together two different, but highly complementary businesses. The combined business will benefit from Monsanto's leadership in Seeds & Traits and Climate Corporation platform along with Bayer's broad Crop Protection product line.
|Indonesia to issue permits to import 700,000 cattle next year|
[15 September 2016] Indonesia’s government said it will issue permits to import 700,000 cattle for slaughter in 2017 as well as to ship in additional buffalo meat from India, as it looks to control climbing food prices. “This is being done to push down prices that are still high, and to prepare for demand during the Muslim fasting month in 2017,” said the Economic Ministry in a statement. Indonesia ships in virtually all its cattle from Australia - a trade that was worth nearly USD 600 million in the last financial year. The government late last year estimated that the country will import around 700,000 heads of cattle in 2016.
Regional dairy update
[15 September 2016]
Vinamilk eyes second milk company in the US
Vietnam Dairy Products JSC, or Vinamilk, Southeast Asia’s biggest milk is seeking to buy a second company in the US as part of its global merger and acquisition strategy. Chief Executive Officer Mai Kieu Lien in an interview with Bloomberg said the deal is expected to close as early as next year. She declined to give the name of the target or the value of the deal. Vinamilk already has a stake in California-based Driftwood Dairy. Vinamilk targets annual revenue of USD 3 billion by end 2017.
China’s Fortune Ng Fung to spin off dairy business
Chinese beef producer Fortune Ng Fung Food Co said it is planning to put its dairy branch up for sale, so as to focus on its core business. The dairy farm, opened in 2004, is able to house up to 6000 cows. It now has a stock of 3493 heads, producing about 12,000 tonnes of milk a year and is a key raw milk supplier to China’s top dairy producer Yili. The assets are valued at USD 24 million. Meanwhile, Fortune Ng Fung is expanding its beef business with overseas acquisitions. It recently announced plans to buy two more Australian cattle farms, adding to its Woodlands farm that owns a stock of 9309 Angus and Wagyu cattle.
Visakha Dairy expands business reach
India’s Sri Vijaya Visakha Milk Producers Company Ltd, popularly known as Visakha Dairy, continues to expand its market share beyond Visakhapatnam city of Andhra Pradesh state. Chairman Adari Tulasi Rao said the company has already expanded its business in Odisha, West Bengal, Chattisgarh and Madhya Pradesh. Visakha Dairy enjoys an estimated 10% market share in UHT milk after Amul. It achieved a turnover of USD 164 million in 2015-16 by focusing on product diversification. Its milk procurement has increased to over 700,000 litres per day. In addition, the company has expanded its aseptic packing station to produce 300,000 litres/day of UHT milk.
Imported dairy cows boost Pakistan’s dairy sector
Pakistan has seen investments worth USD 360 million on imported dairy cows and farming technologies over the last decade, raising its milk production to 1 million litres per day. Imran Saeed Khan, Regional Business Development Manager at the Australian Trade and Investment Commission said that local dairy farms are currently earning USD 667,000 on milk sales, with farm price of milk hitting USD 0.57 per litre. “In contrast to indigenous cattle that produces much less milk, high yielding exotic dairy cattle of Holstein-Friesian and Jersey breeds and their crosses produce about 2-3 times more milk,” Mr Khan said. Official figures showed that the country imported 5205 exotic dairy cows in the July-March period of 2015/16. This added approximately 39,000 tonnes of milk per annum in the commercial milk system.
|Thaifoods Group expects better H2 due to rising pork and chicken prices |
[14 September 2016] Thailand’s Thaifoods Group (TFG) expects good earnings in the second half of this year due to rising chicken and pork prices, efinanceThai reported. Pork prices is currently at USD 2/kg, compared to USD 1.66/kg last year. TFG expects broiler prices to be around USD 1.29/kg in H2 and next year, up from USD 1-1.03 /kg in 2015. Cherdsak Kukiattinun, Chief Operating Officer of TFG said income will also be driven by rising chicken and pork demand in Thailand and overseas markets. Mr Cherdsak said TFG’s revenue will grow 10-20% in 2017, up from an estimated revenue of USD 573.88 million this year. Moreover, the company will supply its products to 30 restaurants in Thailand, up from 10 currently. And TFG will increase its chicken sausage production capability to 30 tonnes a day, from 15 tonnes currently.
|China starts Arbor Acres GP imports from New Zealand|
[14 September 2016] Jiangsu Jinghai Poultry Industry Group in east China recently imported 17,472 sets of Arbor Acres GP, making it the first Chinese import of the broiler breed from New Zealand, according to the official website of Nantong City where Jinghai is based. The occasional avian influenza outbreaks worldwide has led China to import broiler GP only from New Zealand and Spain, while international breeders are said to be expanding their capacities in the two countries to tap the Chinese market. Nevertheless, China’s first-half introduction of broiler GP was less than 110,000 sets, compared with 720,000 sets last year and the 1.54 million sets at its peak in 2013.
|KKR to boost exposure to Asia|
[14 September 2016] US private equity firm KKR & Co has started talks with investors for a third Asia fund, targeting a record USD 7 billion with a formal launch expected by year-end, people familiar with the plans said. The investors are looking to boost their exposure to fast-growing Asian countries such as China, India and Indonesia due to their massive populations of increasingly affluent consumers and because they are churning out businesses with the potential to become global corporations. In China, KKR has made investments in China Modern Dairy Holdings, pork producer COFCO Meat, chicken meat company Fujian Sunner Development Co. Meanwhile in Indonesia, KKR this year invested in agro-food integrator Japfa Comfeed Indonesia.
|Godrej Tyson to grow its market share in breakfast, snacking segments|
[14 September 2016] Godrej Tyson Foods, a 49:51 joint venture between India’s Godrej Agrovet and US’ Tyson Inc, is looking at a larger share of the breakfast and ready-to-cook frozen snacks categories. Its breakfast offerings include cold cuts (pre-cooked/cured meat – mostly sausages) and a variety of snacking options (both non-veg and veg) through its ‘Yummiez’ brand. According to Arabind Das, Godrej Tyson COO, the target is to double the market share. The company enjoys a market share of approximately 12%. “We plan to grow the category at 25-27% against the industry growth of 16-19%,” he said. The frozen processed food market in India is pegged at USD 120 million.
|South Koreans eat more processed meat products|
[14 September 2016] A diet that includes a growing amount of animal protein and time pressure that favours quick-serve food is fuelling sales of processed meat products in South Korea. The Ministry of Agriculture, Food and Rural Affairs and the Korean Agro-Fisheries & Food Trade Corp said the market for canned meat products, including ham and sausage, rose 12.4% in two years, to reach almost USD 1.11 billion in 2015. Sales grew 6.6% to USD 320.6 million in the first quarter of this year alone, compared with the same quarter last year. This is a 21.9% increase from the same period two years ago. Ham ranked number one among processed meats, accounting for 58% of the sales.
|Vietnam exploits potential of value added duck egg exports|
[13 September 2016] Omega-3 enriched duck eggs, salted duck eggs, and century duck eggs are added value duck egg products that present good export potential for Vietnam, which has the world’s second largest duck and duck egg production. The country produces 70 million ducks and 3.6 billion duck eggs per year. Data from the General Department of Vietnam Customs shows that Vietnam is among the top ten century-egg producers in the world. "Vietnam’s value added duck eggs has good export potential. We sell salted eggs and century eggs to the Chinese community in Brunei. We also export 20 containers monthly to Singapore and we are targeting other Asian markets like Malaysia and the Phillipines," Dam Van Hoat, General Director to Vietfarm Trading and Manufacturing Co Ltd, said in a statement.
|CV Mandaria sets up fish processing plant with UK as target market|
[13 September 2016] Indonesia’s CV Mandaria based in Tolitoli regency, Southeast Sulawesi, said the company has partnered with an investor from UK to set up a fish processing plant in the regency. Muhammad Pensi, Director said the project started in August this year. “Once the project is completed, we will purchase catch fish, especially tuna, from fishermen in the region then process it. Meanwhile, the investor will help with exports to and distribution in the UK,” said Mr Pensi.
|Thailand’s CPF joins Dow Jones Sustainability Index for second year |
[13 September 2016] Thailand’s Charoen Pokphand Foods (CPF) has made it into Dow Jones' Sustainability Indices (DJSI) in emerging markets category for the second consecutive years. CPF was among 33 companies in the food category. CPF was selected based on an assessment of the company’s economic, social and environment contributions. Mr Adirek Sripratak, President and CEO of CPF, said CPF has taken a step forward on the issues of sustainable development, which spans across its supply chain. CPF has put sustainability at the core of its business, Mr Adirek said, adding the company’s social responsibility has focused on three pillars including food security, self-sufficient society and balance of nature. DJSI is the first global index to track the leading sustainability-driven companies worldwide.
|Rising consumption in Vietnam bodes well for EU producers|
[13 September 2016] With Vietnam’s poultry consumption expected to increase 37% by 2021 and local production seen to rise by only 27%, EU producers sees a lot of potential for its poultry exports to the country. Experts at a workshop titled ‘High quality, QAFP (Quality Assurance for Food Products) certified poultry meat from the EU’ held in Ho Chi Minh last month said that in 2013, Vietnam’s poultry imports from the EU was only USD 8.24 million, but this soared 113% the following year. By 2021, Vietnam’s poultry imports is forecast to go up 49%.
|India allocates over USD150m to increase livestock, fishery production|
[13 September 2016] India has earmarked over USD 150 million to fund different projects under various programs run by the union government to increase livestock and fishery production in the country while providing livelihood opportunities to farmers. The Central government has released USD 19.5 million to nine states for implementation of various poultry and livestock development programs, and USD 24 million has been released for vaccination under the Livestock Health and Disease Control program. The government has released USD 2.6 million to support programs under the National Program for Bovine Breeding and the Cattle Mission. For approved projects under the National Program for Dairy Development, the government has released USD 36 million to 17 states. The programs are intended to double farmers’ incomes.
Indian buffalo meat imports to stabilise beef price in Indonesia
[12 September 2016]
The import of Indian buffalo meat is intended to help stabilise beef prices that have climbed as a result of beef and cattle import restrictions. Bulog is selling buffalo meat for USD 5 per kg to consumers. Beef prices are still at around USD 9-10 per kg. “Buffalo meat imports provide a meat alternative that’s cheaper, healthy and halal,” said Djarot Kusumayakti, Bulog CEO. ARIEF FACHRUDIN sheds light on the issues surrounding Indonesia's beef trade.
Indonesia imports extra buffalo meat from India
Indonesia’s State Logistics Agency (Bulog) has reached an initial agreement to import an extra 70,000 tonnes of buffalo meat from India this year, as it seeks to balance the effects of food import controls aimed at improving self-sufficiency. Wahyu, Bulog Procurement Director said the deal would bring Indonesia’s total buffalo meat imports to 80,000 tonnes in 2016. The first shipment of 720 tonnes recently arrived and will be sold in traditional markets in Greater Jakarta, while the remainder of the first 10,000-tonne order will be imported by the end of September.
Buffalo meat as an alternative
Bulog has introduced buffalo meat as an alternative to daily meat consumption. It recently staged a media event where it gave hundreds of its employees and reporters the opportunity to taste various dishes made from Indian buffalo meat. Djarot Kusumayakti, Bulog CEO admitted that buffalo meat is less popular compared to beef. However, “it’s only USD 5 per kg, much cheaper than the price of beef at USD 9,” said Mr Kusumayakti. “Buffalo meat is nutritious. It contains 69% zinc and 10% protein, and is low in cholesterol.” Previously, Enggartiasto Lukita, Trade Minister, assured that buffalo meat imports from India will continue despite initial concerns that the public will reject the product.
Indian buffalo meat may affect local cattle farmers
The Indonesian government's policy to import buffalo meat from India in large amounts may affect the price of local live cattle. Indian buffalo meat will be sold at USD 5 per kg in the local markets, which is far cheaper than the price of local beef of around USD 9-10 per kg. Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association (PPSKI), is worried that the policy will not motivate local farmers to raise beef cattle. “Since the government has failed several times to achieve beef self-sufficiency, in the last 3-4 years the price of live cattle and beef in the market has reached a new balance. As a consequence, farmers have to buy feeder cattle at higher prices. Now with the existence of cheap Indian buffalo meat, who will be responsible for the farmers’ losses?” Mr Boediyana asked.
Nampa welcomes Indian buffalo meat
Players in the meat processing industry welcomed the government’s move to import Indian buffalo meat. Haniwar Syarief, Executive Director of the National Meat Processors Association (Nampa) told Asian Agribiz: “Indian buffalo meat will make us more competitive in end-product price as it is cheaper than Australian beef.” Ishana Mahisa, Nampa Chairman told Asian Agribiz that the entry of Indian buffalo meat will help meat processors in the midst of the increasing price of boneless chicken. “Meat processors will switch to Indian buffalo meat as it’s relatively cheap and offers good taste and texture to processed meat products such as sausages,” Mr Mahisa said. However, Nampa hopes the buffalo meat is only allocated for the meat processing industry, not for end-consumers since it will negatively affect local cattle farmers.
List of Indian buffalo meat exporters to Indonesia
Based on several investigations, the Indonesian government has finally allowed 10 Indian buffalo meat processors & exporters to export frozen deboned and deglanded buffalo meat to Indonesia. Asian Agribiz received names of the suppliers from Indonesia’s Ministry of Agriculture, they are: Al Kabeer Export Pvt Ltd (Telangana), Amroon Food Pvt Ltd (Uttar Pradesh), Fair Export Pvt Ltd (Uttar Pradesh), Frigerio Conserva Allana Pvt Ltd (Telangana), Frigerio Conserva Allana Pvt Ltd (Uttar Pradesh), Frigorifico Allana Pvt Ltd (Maharashtra), HMA Agro Industries Ltd (Uttar Pradesh), Indagro Foods Pvt Ltd (Uttar Pradesh), Mirha Export Pvt Ltd (Punjab) and MK Overseas Pvt Ltd (Punjab).
|Indonesian broiler farmers demand market segmentation, protection|
[9 September 2016] Hundreds of commercial broiler farmers from different associations from West Java, Indonesia visited the Ministry of Agriculture on Wednesday to convey their needs. Hidayat Noor, a spokeperson of the Bandung Farmers Communication Forum told Asian Agribiz that so far this year they are struggling to survive in the business. "We asked the government to immediately set the floor price of live birds at USD 1.5 per kg,” Mr Noor said. During the discussion, the farmers asked the government to limit integrators’ interests to a maximum at 30%, as well as prohibit integrators to sell live birds at traditional/wet markets. “We need policies on market segmentation and protection for small-medium scale broiler farmers to beat unfair competition,” Mr Noor added.
|China’s Xuanwei to expand ham further processing|
[9 September 2016] Xuanwei city in southwest China’s Yunnan province said it targets to extend half of its 60,000 tonnes of traditional hams into further processed products by 2020. Last year, the city produced 50,000 tonnes of hams valued at USD 300 million. Of this, 10,000 tonnes went into processed products like cooked ham, ham slices and mooncakes. “We will add value to the industry with more further processing, and the market is expected to grow to USD 750 million in 2020,” Fan Meigang, Director of Xuanwei Ham Administration Office, told Asian Agribiz. Xuanwei Ham is one the top three traditional ham categories in China, with a national market share of about 30%, according to the China Meat Association.
|Thailand raises demand for US feed ingredients |
[9 September 2016] The Thai Feed Mill Association’s forecast of feed demand remains unchanged at 18.6 million metric tonnes in 2016, up approximately 4% from 2015, according to the USDA's GAIN report. Feed industries rely more on imported feed ingredients which currently account for approximately 60% of total feed demand due to insufficient locally produced feed grains and co-products. Thailand’s import demand for US feed ingredients is expected to trend upwards, particularly for soybean and soybean meal, and distiller’s dry grain with soluble (DDGS). Meanwhile, Thailand’s wheat imports in marketing year 2015/16 was higher than expected, particularly for feed wheat due to the shortage of domestic supply of broken rice and corn for swine and poultry feed rations.
|Indonesia to shift fish processing development to eastern regions|
[9 September 2016] Indonesia’s Chamber of Commerce and Industry (Kadin) supports the Ministry of Fisheries and Marine Affairs’ plan to develop fish processing units in eastern Indonesia. “Kadin strongly supports the plan since the supply of fish from the region is abundant. This move will make costs of transportation and logistics more viable,” said Andi Rukman Karumpa, Kadin Deputy Chairman for Eastern Indonesia. So far, many fish processing plants are built in Java because most of the fishing vessels come from western Indonesia. However, Susi Pudjiastuti, Minister of Fisheries and Marine Affairs, wants the development of fish processing centres to be shifted to outside Java such as Kalimantan, Sulawesi and Papua. Based on the ministry data, there are 718 fish processing plants in the country, of which over 60% are located in Java.
|India’s soybean meal exports contract 66%|
[9 September 2016] The Soybean Processors Association of India has said that the export of soybean meal and its other value-added products during August 2016 was just 10,615 tonnes compared to 31,157 tonnes in August last year, registering a fall of 66%. The country’s soymeal exports in 2015-16 fiscal year ended March 31 dropped 74% from a year ago to 387,297 tonnes. Sri Lanka, Indonesia, Japan and Taiwan were key buyers of Indian soymeal in the year. Soybean prices in India jumped due to lower production, making local soymeal expensive compared to supplies from South America, said dealers.
|Vietnam, World Bank to commercialise PED vaccine|
[9 September 2016] Vietnam and the World Bank are cooperating to boost the production and commercialisation of PED vaccines in the country, with a 34-month project titled ‘Developing the technology of producing PED vaccine for farmed swine.’ The project will cost USD 3.4 million, to be jointly funded by the World Bank (40%) and a group of Vietnamese producers led by Duc Hahn Marphavet Veterinary Medicine JSD, and is expected to enhance Vietnam’s capacity to produce vaccines, especially PED, and reduce its reliance on imported vaccines.
|Biotech Farms to prioritise pork exports|
[8 September 2016] Biotech Farms, one of the farms accredited by the Singapore Agri-Food & Veterinary Authority to export pork to Singapore, welcomes the news that the government is again pursuing pork exports to the city state. The company owns one of the country’s most modern farms, and supplies pork primarily to its sister company, KCC Malls Supermarkets. Dr Harold Eslabon, who is in charge of Biotech’s day to day operations, told Asian Agribiz that exports “will be our top priority because our slaughterhouse project and expansion in our swine operations are designed for the export market.”
|Indonesia to impose tax on raw fish exports|
[8 September 2016] Indonesia’s Ministry of Fisheries and Marine Affairs in the near future plans to impose a tax on raw fish exports. This is aimed at developing the domestic fish processing industry and to increase processed fish exports. Nilanto Prabowo, General Director of Fish Products Competitiveness, said of the total fish exports from the country, 50% is processed fish. “We want to raise this figure,” he said. Based on the Statistic Central Agency data, during the first half of this year Indonesia exported 94,397 tonnes of fish products to the US and 54,384 tonnes to Japan, up 15.56% and 7.04% respectively over the previous year.
|Wens pig farming segment’s H1 profit exceeds 40%|
[8 September 2016] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said its pig farming segment’s gross profit margin stood at 40.28% in the first half of 2016, compared with 9.69% a year earlier. The company’s H1 pig sales rose 14.61% to 8.05 million heads, driving the segment’s revenue up 71.61% at USD 2.77 billion. Wens set up 18 new pig complexes during the period, with farms under construction, to have a combined capacity of 2.2 million pigs, in addition to an over 9-million-head contracted capacity in northeast and southwest China. The company also saw its H1 yellow broiler sales up 10.33% at 364 million birds, though the segment’s gross profit margin fell to 12.26% from 15.18%.
|Indonesia opens its market for Mexican beef, cattle|
[8 September 2016] The Indonesian government has approved imports of beef, feeder cattle and breeding cattle from Mexico. Juan Permata Adoe, Vice Chairman for Food Processing and Livestock Industry of the Indonesian Chamber of Commerce & Industry, said players in the beef industry have responded positively. “We also expect the government to open the market to Brazilian beef and cattle,” Mr Adoe said. “Ultimately, it’s about price. Exporters from Mexico and Brazil can offer better prices than Australia.” From January to August imports reached 402,163 heads of feeder cattle, or 67% of the total import quota allowed by the government.
|Sasso, Hendrix Genetics to ally on coloured broiler breeding|
[8 September 2016] France-based Sasso, a specialist in coloured broiler breeding and genetics company Hendrix Genetics have signed a Memorandum of Understanding to connect the breeding activities of Sasso with the worldwide network and R&D centre of Hendrix Genetics. The move is seen to intensify Sasso’s breeding program and product development as well as give the company a stronger financial base for its asset renewal program and international expansion. Under the transaction, Sasso will strengthen its equity structure with new shares to Hendrix Genetics. The deal is expected to be completed before the end of the year.
|Maeil considering bid for McDonald’s operations in South Korea|
[8 September 2016] South Korea’s Maeil Dairy Industry Co Ltd is considering a bid for McDonald Corp’s South Korean operations, said a Maeil spokesman. He said Maeil, South Korea’s second largest dairy company, has not yet decided whether to proceed with an offer. He declined to comment on any potential acquisition partners. CJ Corp and NHN Entertainment Corp were among South Korean companies that have previously shown interest in the fast food giant’s business in the country. Investment banking sources said the sale could fetch around USD 268-448 million.
|New chicken processing plants on the cards for Indonesia|
[7 September 2016] Indonesia’s chicken processing industry will see new plants in operations within the next 2-3 years. Rudy Hudin, Country Manager Indonesia of Marel, told Asian Agribiz that China’s New Hope Group plans to set up a 6000 bird/hour processing plant in the country. A newcomer Konspol Group from Poland, plans to set up a 12,000 bird/hour chicken processing plant in Sukabumi, West Java, which will be followed by the construction of a further processing plant. Bounty Segar Indonesia, the jv between the Philippines’ Bounty Fresh and Indonesia’s Triputra Group, will build a 6000 bird/hour chicken processing plant and a 2 tonne/hour further processing plant. Meanwhile, the jv company of Indonesia’s Indofood and Malaysia’s CAB Cakaran will also set up a 6000 bird/hour chicken processing plant and a 2 tonne/hour further processing plant which will produce sausages and nuggets.
|Myanmar workers sue Thailand’s Betagro over labour abuse|
[7 September 2016] Myanmar migrant workers recently filed a lawsuit against Thailand’s Betagro alleging forced labour on a chicken farm in Lopburi province. The 14 workers are demanding USD 1.3 million in compensation for being overworked and underpaid on a Thai chicken farm, AFP reported. Meanwhile Betagro, which has cut ties with the supplier farm, said that the Department of Labour Protection and Welfare in Lopburi province and National Human Rights Commission of Thailand have already investigated this case and found that the employer was not involved in human trafficking, slave labour, forced labour and human rights violations. Betagro also said this presents an opportunity to improve labour standards in the industry.
|Poultec saves costs with 100 ft wide broiler houses|
[7 September 2016] Malaysian broiler company Poultec Enterprise Sdn Bhd installed the country’s first 100 ft wide poultry house. Tan Soon Nam, MD, said by going this wide the company managed to lower its building costs by 20-25%. The other advantage is space. “Now we don’t need a large piece of land to house 55,000 birds. When we reduce land space we reduce labour cost. Now we only need two staff for this number of birds compared to six before,” he told Asian Agribiz. “The 100 ft house is divided into five areas. Each area holds 11,000 birds. We have this division so that they will be well spread out, and to avoid a stampede.”
|Philippines revives plans to export pork to Singapore|
[7 September 2016] After meeting with pig producers in Mindanao, Philippine Agriculture Secretary Emmanuel Piñol said the government will revive plans to export pork to Singapore. The country was supposed to ship pork to the city state from Mindanao in 2008, but the shipment was halted after the Ebola Reston virus was detected in some samples from pigs in Luzon. The country however remains among the Singapore Agri-Food & Veterinary Authority’s list of approved pork exporters. Mr Piñol is also continuing efforts to begin pork exports to Japan under the Japan-Philippines Economic Partnership Agreement.
|New Hope Liuhe sees positive growth in feed sales|
[7 September 2016] China’s top feed miller New Hope Liuhe Co said its first-half feed sales volume rose 3.73% to more than 6.90 million tonnes, the first positive growth in a couple of years. Revenue from the segment, however, fell 9.50% to USD 2.73 billion, due to lower selling price of its feed products reflecting lower raw material costs. Gross profits were down 13.40% at USD 171.30 million, and the company attributed this to its earlier stock of high-cost raw materials. “We used up the raw material stocks in the first half of 2016, and better performance is expected for our feed business in the second half,” New Hope said.
|Bangladesh farmers need capital to revive their business|
[7 September 2016] Poultry farms in Bogra, Bangladesh were forced to close due to lack of capital and government subsidies. Local sources said about 250,000 people became unemployed directly and indirectly due to this. According to the Bogra District Poultry Owners Association, there were over 5200 poultry farms and 60 hatcheries in the district in 2014. Currently, over 550,000 people are involved in the industry. Nurul Ameen, General Secretary of the association said 40% of the poultry farms were destroyed in a storm in April 2015. Even though the government has instructed banks to provide loans on easy terms, farmers are being denied this or offered loans at 12-17% interest, Mr Ameen said.
|Thailand softens fee hike plan for poultry industry|
[6 September 2016] Thailand’s new Animal Slaughter and Sale of Meats Control Acts will see a slaughter fee hike of only USD 0.0058 per unit of poultry, much lower than the earlier fee of USD 0.114. Nine poultry associations expressed concern over the earlier high fees saying it will encourage illegal slaughtering, negatively affect consumers and reduce the industry’s export competitiveness. “The poultry associations have accepted the new plan,” Dr Sorravis Thaneto, Deputy Director General of Thailand’s Department of Livestock Development (DLD) told Asian Agribiz. The existing Act has a slaughter fee of USD 0.0028 per unit of poultry, but that has been waived for many years. The new law aims to improve food safety and punish below standard slaughterhouses.
|Indonesia to remove bottlenecks for India’s carabeef|
[6 September 2016] Indonesia recently reassured India that it will work to remove the bottlenecks in its market for Indian carabeef imports. This was discussed at a meeting in India between India’s Agriculture Minister Radha Mohan Singh and a 15-member Indonesian delegation led by Ahmed Mujhani. In March this year, Indonesia’s President Joko Widodo signed a decree allowing zone-based meat imports from India after its audit team confirmed the country has excellent mechanism for meat processing and quarantine control. In September 2015, the audit team from Indonesia inspected abattoirs and research institutions in India and found more than 50 bovine processing plants which are above international standards.
|Halal beef producer Yisai’s H1 revenue up 23%|
[6 September 2016] Henan Yisai Beef (Stock) Co, a halal beef producer based in central China, said its first-half operating revenue rose 22.71% year-on-year to USD 75 million. Gross profit margin fell to 15.30% from 19.07% a year earlier. Yisai sells chilled/frozen beef, processed beef products, as well as cattle feeds, and the company attributed the growth to its market expansion into all provincial capital cities in China. Yisai is building a 200,000-cattle complex in north China’s Inner Mongolia.
|Poland sees higher meat exports to Vietnam|
[6 September 2016] Poland has seen higher meat exports to Vietnam in the past few years and expects the trend to continue once the EU-Vietnam free trade agreement (EVFTA) is endorsed. According to the Department General of Customs, Vietnam’s import of Polish pork increased sevenfold between 2012 and 2014, reaching 836 tonnes valued at USD 788,000. Vietnam is Poland’s largest trade partner in Southeast Asia. In addition to pork, Poland also exports poultry and beef to Vietnam.
|Poultry can help end hunger, malnutrition in Bangladesh|
[6 September 2016] The poultry industry has the potential to help Bangladesh achieve the United Nations’ Sustainable Development Goals (SDGs) of eliminating malnutrition and ensuring better health for its citizens. “Hunger and malnutrition pose major barriers to our development. In meeting the demands for protein, the poultry industry is playing a pivotal role,” said Sirajul Hoque, General Secretary of World’s Poultry Science Association–Bangladesh Branch. “By 2021, our per capita chicken consumption is expected to increase to 8.42kg, and we can achieve SDGs in the field of ending hunger and removing malnutrition,” he added. According to Bangladesh Poultry Industry Coordination Committee, 45% of animal protein in the country comes from the poultry industry.
|Japfa to sell off more CGE stocks|
[6 September 2016] Singapore-based Japfa Ltd is likely to sell more shares in Ceylon Grain Elevators PLC (CGE), Sri Lanka’s local media reported. The fourth largest shareholder in the poultry firm, Japfa Ltd held about 6.48% in the company in June this year. “But they sold some 1.27% in March this year,” one analyst said. He said around 1.5 million shares may be on offer in the coming months. Analysts say that growing purchasing power will augur well for CGE and expect reduced cost of production and improved margins on the back of importing and stocking of cheaper corn from new found low cost destinations.
|Shandong publishes standards for humane broiler slaughtering|
[5 September 2016] The Shandong province in east China said it has published standards for broiler slaughtering designed to be more humane, the first of its kind in the country. The standards, effective August 29, were developed by a team led by the Qingdao Agricultural University, with local companies including Nine Alliance, New Hope Liuhe and CP China also participating. “The protocols are non-compulsory, referring to similar EU standards- particularly those in UK- and practices by leading broiler processors in Shandong,” Sun Jingxin, who was in charge of the program, told Asian Agribiz. “Actually some processors like Nine Alliance have already met the standards in their premium products for export,” Professor Sun added. Shandong is a major region for poultry production in China and its chicken exports account for more than 40% of the nation’s total.
|AP Nutripharma offers cordyceps as AGP substitute|
[5 September 2016] Singapore-based AP Nutripharma is cultivating cordyceps to create OrganicPro, additives that inhibit the growth of bacteria. Recent tests have shown that cordyceps “can operate like antibiotics and promote good animal performance,” Dr Xu told Asian Agribiz. The company produces four tonnes of OrganicPro for sale in India, Israel and New Zealand. “We have not gone all out in sales. In this business producers are more accepting of products from the west so it is not easy for us to penetrate this market,” said Dr Xu. But the industry is changing. Dr Xu said consumers are driving the push for safe food, and alternatives to AGP is in demand.
|Japfa Indonesia optimistic of 15% net sales growth|
[5 September 2016] Indonesia’s agri-food company Japfa Comfeed Indonesia recorded a positive performance during the first half this year. Its H1 net sales reached around USD 1 billion, an 11.29% increase from the previous year, while net profit reached USD 72.59 million, a turnaround from last year when it recorded a net loss of USD 20.49 million. The company said the positive performance was driven by stable supply and demand of DOC and broilers in Q2, as well as the Ramadhan festival which boosted consumption. “The appreciation of rupiah and the weakening prices of feed raw materials gave a boost to us,” said Putut Djagiri, Senior Vice President, Deputy Head of Corporate Finance. Japfa is projects a 10-15% net sales growth this year from last year’s USD 1.88 billion.
|Bangladesh to examine pros and cons of FDI in poultry industry|
[5 September 2016] The government of Bangladesh is considering controls over foreign investors in the country’s fast growing poultry industry after local players said they are concerned about being overtaken by overseas giants. Narayan Chandra Chanda, Minister of Fisheries and Livestock said the ministry “couldn’t assess yet whether foreign investments in the poultry sector will be helpful or hurt farmers. However, an expert committee will be formed soon to examine the issue. Local industry players noted that while only seven foreign poultry companies are operating in the country – five of them from India – they control around 35-40% of the market. Other major players include Charoen Pokphand from Thailand and New Hope from China.
|Rising poultry consumption in Vietnam bodes well for EU producers|
[5 September 2016] With Vietnam’s poultry consumption expected to increase 37% by 2021 and local production seen to rise by only 27%, EU producers see potential for poultry exports to the country. Experts at a workshop titled ‘High quality, QAFP (Quality Assurance for Food Products) certified poultry meat from the EU’ held in Ho Chi Minh last month said that between 2013 and 2014, Vietnam’s poultry imports from the EU grew more than 113%. Mariusz Boguswewski, Economic Counsellor at the Polish Embassy in Vietnam said the EU is currently running a series of trade promotion activities to promote EU’s QAFP certified poultry meat to the Vietnam market.
|India registers nine new livestock breeds|
[5 September 2016] Nine new breeds of livestock have been registered by India’s Karnal-based National Bureau of Animal Genetic Resources, taking the total number of indigenous breeds to 160. The newly identified and registered breeds include Badri cattle (in Uttarakhand), Teressa goat (in Nicobar Island), Kodi Adu goat (in Tamil Nadu), Chevaadu sheep (in Tamil Nadu), Kendrapada sheep (in Odisha), Tenyi Vo pig (in Nagaland), Nicobari pig (in Nicobar Island), Doom pig (in Assam) and Kaunayen chicken (in Manipur). Trilochan Mohapatra, Director General of Indian Council of Agricultural Research, said registration of various unique populations as breeds will help in inventorisation, improvement, conservation and sustainable utilisation of animal genetic resources of the country.