TOP STORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 March 2015
|Beef trade disrupted in Mumbai|
[27 February 2015] India's beef trade has been disrupted in Mumbai city as members of some Hindu religious outfits resorted to violence by confiscating the animals meant for slaughter from the beef traders. “We are into beef trading only after obtaining appropriate licences and permission but yet we are harassed by Hindu religious outfits as they are against this trade,” Ismail Ravuthar, a beef trader in Mumbai told Asian Agribiz. Following complaints from beef traders, Chief Minister of Maharashtra state Devendra Fadnavis has assured protection to beef traders in Mumbai who have been on strike for the past few days.
|Asean a strategic region for food safety|
[27 February 2015] The Global Food Safety Initiative (GFSI) will stage its flagship food safety event in Kuala Lumpur, Malaysia from March 3-5, after 13 successful editions in Europe and North America. Asean is a strategic region for food safety and GFSI hopes to communicate its objectives to a wider audience and engage them in its work through this event, which enables delegates to take the GFSI approach home with them and translate it into improved food safety in their business. Asian Agribiz is a media sponsor of the event.
|Rivals threaten Vietnam’s top pangasius exporter spot |
[27 February 2015] Vietnam could lose its pangasius export market share to other Asian nations, the VietNamNet Bridge reported. Competition from the Philippines and Indonesia is an emerging threat to Vietnam’s pangasius export industry, which has already been having to lower export prices to attract customers even as it faces unhealthy competition locally. Vietnam already competes with India, Thailand, Cambodia and Laos. Jamaica has also begun developing pangasius aquaculture, and Puerto Rico is considering the same. Future rivals could threaten Vietnam’s eminence as the globe’s biggest pangasius exporter unless the nation develops an effective development strategy, said Le Thanh Thuan, Chairman of Sao Mai Seafood Group, the news outlet reported.
Sneak peek into Asian Pork Magazine, March 2015
[27 February 2015]
Expansion, upgrades in store for industry
In the run up to the Asean Economic Community (AEC), pork industries in the region continue to prepare themselves for new opportunities and intense competition. Meanwhile, opportunities abound in China, where local supply is likely to fall below the market requirements. The ASIAN-AGRIBIZ team looks at the developments in these areas and what can be expected this year.
Bioceleng Farm eyes niche premium market
With a good quality ration and farming management that follows animal welfare practices, Bioceleng Farm is trying to produce quality pork for the premium market segment, writes ARIEF FACHRUDIN.
Hok Hieng stands out on cost effective farming
Thai-made western-style sausages are taking over supermarket shelves in Cambodia. They are known for their good price and quality products. Cambodian swine producer Hok Hieng too wants to focus on making good sausages. It starts on his farm with cost effective farming, General Manager Chan Sothea tells RACHAEL PHILIP.
Urinary Tract Infections in sows
Urinary Tract Infections (UTIs) are common bacterial infections in gestating sows, however, they are often underestimated, as with the majority of UTIs clinical signs are absent. AMICIE de QUATREBARBES and TEE CHIOU YAN report the results of a three farm survey in Malaysia that assessed the prevalence of UTIs, determined the causative agents and possible impacts on health status and performance.
Revisiting methionine in pig production
YVES MERCIER discusses the impact of better management of methionine supply, both level and source at specific growth stages for pigs.
A novel solution to tackle zearalenone
Mycotoxins are important contributors to economic losses in pig production, especially zearalenone as it has a negative impact on sow reproductive performance. The use of so-called mycotoxin binders has become a routine practice, as they prevent intestinal absorption of the toxins. This has led to the introduction of many different products on the market. However, they are not all equally effective and efficacy of many of them has not or inadequately been proven. Elke Schoeters and Koh Thong Jin describe a new and proven innovation in mycotoxin binders.
|Beef prices in Indonesia skyrocketing after import ban|
[26 February 2015] Indonesia’s ban on imports of secondary (beef) meat and offal has caused the price of beef in traditional and modern markets to rise. Thomas Sembiring, Chairman of the Indonesian Meat Importers Association, said the price of beef has escalated to USD 7.86/kg, and could go up to USD 11.79/kg. “This confirms that the government’s calculation on local beef supply is not accurate. Local beef supply is limited and cannot meet the increasing demand,” he said, adding that the government should lift the ban immediately. Syukur Iwantoro, Director General of Livestock and Animal Health of the Ministry of Agriculture, however pointed out that the problem is because the meat importers don’t want to buy local beef. “We have asked the Minister of Trade to issue a regulation that requires meat importers to buy local beef.”
|Vietnam exports USD 115m worth of pangasius to Mexico|
[26 February 2015] Vietnam’s export of pangasius to Mexico increased 17% last year to reach a value of USD 115.24 million, said the Vietnam Association of Seafood Exporters and Producers. The country is the fifth top importing market for Vietnamese pangasius. Frozen fillet exports to Mexico reported positive growth. Although averaging around USD 2.10/kg, prices were not higher than in 2013. Of frozen whitefish fillets, pangasius was the most imported item, followed by tilapia and Alaska pollock. The price of pangasius was relatively lower than tilapia. In terms of value, the EU held a 19.5% share of Vietnam’s pangasius exporting market, followed by the US (19%), Asean (7.7%) and Brazil (7%).
|Worsening Brazil-Indon ties may affect meat sector|
[26 February 2015] Brazilian President Dilma Rousseff has refused to accept the Indonesian ambassador-designate to Brazil Toto Riyanto’s credentials in apparent anger at the execution of a Brazilian drug convict in Central Java last month. This situation will aggravate the bilateral ties between the two countries. For Brazil, Indonesia is an important meat importer and Brazil is trying to export meat, especially chicken, to Indonesia. A poultry industry player told Asian Agribiz that if the diplomatic relations between the two countries worsens, this will affect trade relations, “even the joint venture between Brazil’s BRF and Indonesia’s Indofood may be reviewed.”
|China scraps Irish BSE-related ban|
[26 February 2015] Irish beef has been approved for export to China once again following the withdrawal of its BSE-related ban. The access will cover boneless beef from animals under 30 months of age. Simon Coveney, Irish Minister for Agriculture, Food and the Marine, welcomed the move. He said the overall Chinese beef opportunity was currently estimated at approximately six million tonnes and was expected to grow by a further one million tonnes over the next five years, driven by increasing affluence and the popularity of Western-style diets. “There is potential not only for beef offal, but increasingly for high-quality steak cuts and for traceable manufacturing beef for the expanding fast food sector,” he said.
|Taiwan relaxes by-product ban from US, Canada|
[26 February 2015] Taiwan is easing its 11-year-old import ban on offal and by-product sources from US and Canada-reared cattle over bovine spongiform encephalopathy concerns by re-classifying six types of beef by-products as ‘non-internal organs’. This clears the way for their import. The Taiwan Food and Drug Administration’s (TFDA) clarified that bone marrow, blood vessels, head meat, cheek meat, weasand and tallow were not banned. “This is a clarification only and not a lifting of our restrictions against US beef,” Pan Jhy-quan, Director of the TFDA Food Safety Division, told GlobalMeatNews. “The BSE-related ban against internal organs will continue and we are now simply pointing out that these six types may be imported,” he added.
|Global sheep meat production rising|
[26 February 2015] Global sheep meat production has been rising over the last three to four years having seen a gradual slide since 2007. Almost half of global production is found in Asia, Stuart Ashworth, Quality Meat Scotland’s head of economic services told the Agriculture and Horticulture Development Board Outlook 2015 conference in London recently. Meanwhile Ben Thomas, Meat and Livestock Australia’s Manager of Market Information, said Australia’s domestic lamb supply may remain stretched due to growing demand from China, Japan and Southeast Asia. Increasing wealth in developing markets and improved market access, particularly in China may cause local lamb supply to come under pressure, he said.
|Apfindo proposes import of 250,000 cattle for Q2|
[25 February 2015] Indonesia’s Beef Cattle Feedlotters Association (Apfindo) has proposed a feeder cattle import permit of 250,000 heads for this year’s second quarter to the government. Johny Liano, Apfindo Executive Director, said current stocks will not meet demand until July. “We have asked the government to give the permit as soon as possible, at the latest in mid-March, since the lot feeding process takes about 2-3 months.” In the first quarter, the government released an import permit for 100,000 heads of feeder cattle. This could only meet demand in Jabodetabek and North Sumatera. Demand in other regions, was met by local supply.
|No let-up in China's H7N9 cases |
[25 February 2015] Seven more human H7N9 avian influenza cases were reported in mainland China and Hong Kong on February 22 according to updates from Hong Kong's Centre for Health Protection (CHP) and media reports. A CHP press release as well as an article in the South China Morning Post said some experts are concerned that H3N2, the seasonal flu virus now circulating in China, could mix with the H7N9 virus and mutate. "The worst outcome could lead to human-to human transmission," said Dr Ho Pak-leung, a microbiologist at the University of Hong Kong.
|Indonesia’s GGL to integrate its cattle business|
[25 February 2015] Great Giant Livestock (GGL), a subsidiary of Indonesia's Gunung Sewu Group plans to integrate its business. Last year the company set up a cattle breeding farm in Lampung with a capacity of 1000 heads. The breeding stock consists of local and Brahman cross breeds. Last year also, the company bought a cattle station in the Northern Territory of Australia. At the moment its feedlot in Lampung has a capacity of 100,000 heads. This feedlot utilise pineapple and tapioca waste derived from other Gunung Sewu’s subsidiaries. Dayu Ariasintawati, Director of GGL, revealed to Asian Agribiz that in the next two or three years the company plans to set up a cattle slaughterhouse in Lampung with a capacity of 50-200 heads/day.
|Itoham aims to up stake in ANZCO Foods |
[25 February 2015] Japanese food company Itoham Foods Inc said it will increase its stake in ANZCO Foods Limited from 48.3% to 65% if its purchase offer is accepted by other leading shareholders and is approved by the Overseas Investment Office. Itoham, with Mitsubishi Corp as its largest shareholder, revealed plans to grow its business outside Japan by becoming “the most trusted manufacturer of processed meat in Asia”. Mitsubishi Corp has one of the world’s most extensive business networks with more than 200 offices in 90 countries. Food sales fall under the umbrella of Mitsubishi Corp’s Living Essentials Group, with over 28,000 employees and a strong focus on emerging markets, particularly in Asia, and especially China, Indonesia and India.
|Poultry industry urges tax-free imports of machinery|
[25 February 2015] Pakistan’s poultry industry has called for tax-free imports of machinery and loans, similar to that extended to the textile industry by the government. In a statement, former Chairman of Pakistan Poultry Association Abdul Basit said if the poultry industry is accorded this, it could target a major share of USD 3 trillion halal food trade globally. He added that the government should allow loans at a 2% mark-up for the poultry industry to enable it to produce more for export.
|Animal feed testing market to reach USD1354m |
[25 February 2015] The global market for animal feed testing is expected to grow at a CAGR of 6.8% from USD 845.4 million in 2013 to USD 1354.1 million by 2020. Mycotoxin testing comprises the largest share in the market, followed by microbiology analysis, vitamin and heavy metal analysis, amino acids and pigment analysis. The Asia Pacific market for animal feed testing is expected to grow owing to its high demand for quality and sustainable animal nutrition products.
|Aussie retailer eyes Asian meat market |
[25 February 2015] Brett Blundy, a leading Australian retailer, is eyeing the Asian meat market after diversifying into beef cattle breeding in 2010. He is targeting Asia’s growing economies such as China, Indonesia and Vietnam, leveraging Australia’s proximity to the region. In a strategic move, Mr Blundy has been buying stakes in many Northern Territory cattle stations. Sounding upbeat on the new diversification into beef exports, Mr Blundy said: “I think the world and Australia is waking up to the value of having Asia so close to us and that’s a huge advantage. That will drive the north to much greater heights, so I think it’s a good place to be.”
|Menara inaugurates new feedmill|
[24 February 2015] Indonesia’s Menara Feedmill began operations at its new feedmill in Tulungagung, East Java early this year. This new plant has one extruder and one pelletiser to produce fish and quail and commercial broiler feeds. However, in the near future this plant will also produce commercial layer feed to cater to local demand. Costing around USD 2.3 million, the new plant has increased the company’s installed capacity by 10,000 tonnes/month. The company expects this to increase its business growth this year by 30%. “We expect this new plant to run at full capacity within the next two years,” Director Henry Haryono told Asian Agribiz. Along with the new plant, the company also set up a new warehouse to store main raw materials like soybean, soybean meal, corn and rice bran.
|Myanmar receives first batch of beef, pork from US |
[24 February 2015] Myanmar received its first consignment of beef and pork from US Agri Beef Co, based in Boise, Idaho. The company recently airfreighted roughly 230kg of ribeye, strip loin, tenderloin, beef cheek meat, pork loin and bacon. “With our established presence in Southeast Asia, we continue to see consumer demand for quality beef and pork products increase throughout that region,” said Jay Theiler, Agri Beef’s Executive Director of Marketing. Agri Beef's relationship with Myanmar developed from an April 2014 meeting with a distributor attending a trade show in Singapore. The growing middle class in Myanmar is driving demand for high-quality meat products. The Organisation for Economic Co-operation and Development noted the middle-class purchasing power in Asia is projected to increase by USD 25 trillion by 2030.
|Tohpati Poultry re-enters chicken processing business|
[24 February 2015] Indonesia’s Tohpati Poultry, one of the oldest and largest poultry companies in Bali, plans to re-enter the chicken slaughterhouse business this year, and after that venture into further processing. The company is currently involved in commercial broiler farming, broiler contract farming and as a poultry production inputs agent. “We want to have an integrated poultry business from upstream to downstream again,” Komang Tangkas Perwira Negara, Chief Accounting Officer, told Asian Agribiz. “We will start the reintegration process starting from chicken slaughterhouse,” said Mr Komang, adding that the company will reactivate its stalled 5000 bird/day slaughterhouse. The target markets are the Horeca industry, including QSR chains, and supermarkets.
|Research advocates pork revolution in India|
[24 February 2015] A research done by Eknath Chakurkar, Principal Scientist of the Indian Council for Agricultural Research (ICAR) has advocated the need for a pork revolution in India as it could be a one-shot solution for protein needs and to generate revenue and foreign exchange in India. According to Dr Eknath Chakurkar, eating pork could be a cheap protein fix for Indians and cultivation of rapidly multiplying pigs will boost income for rural farmers as well as increase exports. “Adopting scientific and modern techniques for pig-rearing will help supplement the income of rural Indian farmers, who are now using old and traditional methods," he concluded in his research.
Asian Agribiz Regional Dairy Update
[24 February 2015]
Amul to set up processing plant in West Bengal
Indian dairy products giant Amul will set up dairy processing unit in West Bengal state in India. R S Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation, the makers of Amul dairy products said recently in Kolkata that they will be investing USD 40 million to set up the new processing plant. “Once operational it will be the biggest dairy processing plant in West Bengal and the plant will serve Kolkata and its vicinity with fresh milk produce,” Mr Sodhi said. The plant will have the capacity to process one million litres of milk per day, expandable up to 1.5 million litres per day and other dairy products.
Online sales of imported milk in China growing
Imported milk products are rapidly increasing their share in the Chinese market due to their low prices, posing a threat to domestic middle and high-end milk products, Shanghai’s China Business News reported. E-commerce has become a major distribution channel for imported milk products. The latest data published end January revealed that approximately two-thirds of milk products sold through the e-commerce channel was imported. In 2014, 310,000 tonnes of milk sold online, a 72% increase compared with 180,000 tonnes in 2013. Online milk sales, however, are only a small portion of total milk sales of 10 million tonnes.
Australian delegation explores collaboration in India
A 25-member dairy delegation, which is part of the Australian business delegation that visited the Dudhsagar Dairy in Gujarat, India. The delegation was looking for opportunities for tie-ups in the Indian dairy sector, especially in areas of dairy breeds, genetics and better productivity. Mark Morley, Trade Commissioner and leader of the delegation said that a similar delegation comprising officials and farmers from India would also visit Australia.
Leading China beef, feed producers in dairy JV
One of China’s largest beef and mutton producers has joined one of its largest feed companies to create a new dairy development, marketing and sales company. Fortune Ng Fung, the beef company, will hold 35% of the new venture, with New Hope holding 40% and a management team holding the remaining 25%. The new company will operate in the booming urban triangle made up of Beijing, Tianjin and Hebei Province, which surrounds both cities. Fortune Ng Fung has recently restructured its dairy operation in Hebei Province, while New Hope has previously invested in a big dairy operation in Sichuan Province, in south-western China.
Indonesia’s Tiga Pilar to purchase Vietnamese milk company
Indonesia’s Tiga Pilar Sejahtera Food plans to invest USD 80 million towards acquiring stakes in food processors in Vietnam and Malaysia this year. Several industry executives tracking the development share the view that Tiga Pilar is eyeing a controlling stake in Vietnamese milk company Hanoimilk and a major stake in a Malaysian biscuit maker. Tiga Pilar Finance Director Sjambiri Lioe said that the negotiation with the Vietnamese partner would be completed shortly. Hanoimilk, is a listed stock in Hanoi, Vietnam. Analysts say that if Tiga Pilar is to sell Hanoimilk’s products in Indonesia, it would probably add USD 18.8-23.5 million to its annual profit. Indonesia in recent years has witnessed a 5% annual growth in demand for dairy products.
China imports first batch of heifers from Chile
China has received more than 7000 heifers from Chile. The focus of this initial China bound shipment of livestock has been on dairy cattle but there has also been “interest in exporting beef cattle to China,” said Andres Duval, Regional Head of Agricultural and Livestock Service. According to GlobalMeatNews, the animals are expected to be the first batch out of a total of 20,000 head of cattle which will make the trip over the next year as authorities in Beijing seek to boost its beef and milk production capacity. China’s decision to certify Chile as one of a handful of countries from which it can import live cattle reflects the efforts made to improve genetic quality of the country’s herds and sanitary standards in the farming sector, said Mr Duval.
Amul to hike milk prices if feed prices rise
Indian dairy products giant Amul is expected to increase milk prices if the price of feed increases. Speaking at the All India Management Association meeting in New Delhi, Managing Director R S Sodhi said they would review the price situation during the monsoon season depending on feed and other costs. “The price increase is not required currently as cost of milk production is under control in view of stable feed prices and lower energy and transportation costs,” he said. Mr Sodhi also pointed out that the last price increase happened in May 2014 and added that whenever Amul increased prices it was minimal.
|Indonesia’s GGL to promote chilled beef|
[23 February 2015] Great Giant Livestock (GGL), a subsidiary of Indonesia’s Gunung Sewu Group, has launched beef products under the brand Bonanza Beef. Dayu Ariasintawati, Director of GGL, told Asian Agribiz that the beef market in Indonesia is dominated by fresh beef sold in traditional markets. While imported frozen beef is sold in supermarkets and the Horeca sector. “We see that there is market potential for chilled beef. Response from the market, especially from the Horeca segment, has been good. They find chilled beef is of good quality and there is no need for thawing,” Ms Dayu explained.
|Thai KFC denies hunting down fried chicken copycats |
[23 February 2015] The owners of the KFC franchise in Thailand has denied that it had dispatched representatives to arrest fried chicken street vendors in Rayong. Yum Restaurants International (Thailand) told Manager Online that it had nothing to do with the arrests. On February 13, about 100 vendors from a market rallied at the Rayong provincial hall, saying that a group of men who claimed to be police and representatives of Yum arrested vendors alleging that they violated the KFC copyright although they did not have any signs related to KFC. Yum Restaurants has ordered its legal division to take proper actions and will also issue a press statement to clarify the incident to the public, the source said.
|CP Prima allocates USD31m for new plants|
[23 February 2015] Central Proteinaprima or more popularly known as CP Prima has allocated USD 31 million for this year’s capital expenditure to set up a new aqua feedmill and a further processing plant in East Java, Indonesia. George Basuki, Corporate Communications Head, said the new aqua feed plant will have an annual capacity of 40,000 tonnes and is targeted for operations by the end of this year. On the further processing plant, Mr George said the project is still under study, “but we are certain of producing further processed shrimp products." According to Indo Premier Securities Analyst, Robby Has, with the new feedmill, the company's market share will continue to increase from its current 50%. He added that shrimp-based processed food is has a profit margin of around 25%.”
|Thai shrimp packers join Vietnam in looking to India |
[23 February 2015] Shrimp raw material prices in Thailand are rising amid short supply causing at least one large packer to turn to India for products, sources told Undercurrent News. This adds to the trend of Vietnamese packers buying from India, as both Thailand and Vietnam look to recover their own production after the spread of early mortality syndrome. Unlike Vietnam, the Thai government has a lengthy inspection process for imported shrimp. Last year, Thailand’s production dived to 200,000 tonnes, having been as high as 650,000 tonnes in the past. Although production is expected to pick up this year, it is currently the off season for farmers and prices were high, making imports viable.
|China receives first shipment of pork from Hungary|
[23 February 2015] Hungary has become the latest country with import access to China’s meat market. China received its first shipment of 25.68 tonnes of frozen pork knuckles at the Tianjin port recently. This comes after Hungarian Minister for Agriculture Sandor Fazekas signed a protocol with Zzhi Shuping, head of the General Administration of Quality, Supervision, Inspection and Quarantine, which licences imports. According to GlobalMeatNews, Hungary is also keen to ship beef and milk to China. The imports from Hungary may be timely given China has stopped pork imports from its main Eastern European pork suppliers.
|SS Group to set up poultry feed project|
[23 February 2015] Pakistan's SS Group in collaboration with Muyang Holdings of China will establish a fully automated poultry feed production unit, the group announced recently. The plant, will be the first automated plant of its kind in Pakistan. Chief Executive Officer of SS Group Shahzad Ali Khan said the project will be established on a turnkey basis with an initial cost of around USD 5 million in the first phase. “This is an equity-based project and is in line with the prime minister’s tax exemption scheme for 100% equity-based projects,” he said. Once completed the project is expected to help support and develop the rural economy.
|AsiaPac is the largest animal feed vitamins market|
[23 February 2015] The global vitamin market is estimated to cross USD 1 billion by 2020 growing at a CAGR of 1.8%. Vitamins is the fastest growing segment, and vitamin E and B are the most consumed types. Asia Pacific is the largest market for animal feed vitamins market owing to the heavy livestock population and poultry feed is the largest segment for the vitamin market. It is also the fastest growing region in the market mainly due to increased demand for quality meat and increased mass production of meat.
Preview of Asian Agribiz 2015 Pig Feed Quality Conference
April 9-10, Ho Chi Minh City
[18 February 2015]
Widely recognised as one of Asia's premier scientific forums for industry professionals to update their knowledge on pig production, the Asian Agribiz 2015 Pig Feed Quality Conference brings the latest research and provides useful information for Asian pig and feed producers.
Porcine bone health
Dr Thau Kiong Chung, DSM will discuss the results of trials in several countries show that supplementing the diets of growing gilts with 25-hydroxy-cholecalciferol leads to a higher proportion of females being selected as breeding replacements. This is because more gilts meet body conformation selection standards, resulting from improved conformation and locomotive characteristics likely attributed to lowered osteochondrosis development. Moreover, this increases the number of replacements available so that herd genetic potential is continually improved.
Breeding sows benefit from NSP-degrading enzymes
During the days before and after farrowing, sows show low appetite with reduced feed intake, which can impair the reproductive cycle. Dr Kevin Liu, Adisseo will present a meta-analysis of six recent trials which showed that the addition of NSP-degrading enzymes increased voluntary feed intake, significantly reduced weight loss of 3 kg on average or 20%, and back-fat loss by 24% during lactation.
ß-galactomannan - effective prevention and control
Dietary mannans/galactomannans occurring in widely used feedstuffs have the structures with the potential to be recognised by immune cells when these ingested molecules penetrate the epithelial layer of the intestinal barrier to trigger excessive immune responses. Dr Humg-Yu Hsiao, BioSolutions International will summarise five trials which provide good support that ß-galactomannan in legume seeds is an immunogen and supplementing ß-mannanase in ß-galactomannan containing feed can effectively reverse its negative impacts on animal production.
Role of creatine on growth performance and meat quality of pigs
Dr Eloisa Carpena, Evonik will present that dietary supplementation of creatine may contribute to the improvement of growth performance, like weight gain and feed efficiency of pigs. Moreover, creatine supplementation may be used to improve meat quality parameters like drip loss, post mortem pH and visual colour. However, creatine as a feed additive has some downsides because it is expensive and it is not thermostable, therefore it cannot withstand feed manufacturing process such as pelleting. An innovative form of guanidinoacetic acid (GAA) which is the only precursor of creatine can be a more suitable dietary source of creatine for pigs and poultry.
For more information and to register click here
|Indonesia’s GGL promotes beef products|
[18 February 2015] Great Giant Livestock (GGL), a subsidiary of Indonesia’s Gunung Sewu Group, is promoting beef products under the brand Bonanza Beef. Speaking to Asian Agribiz at the Jakarta Food Security Summit 2015, Dayu Ariasintawati, Director of GGL, said that previously the company only sold finisher beef cattle to slaughter men. “This year we want to add value to our production chain which is in line with our group’s vision for sustainable businesses from green synergies and zero waste.” Ms Dayu said Bonanza Beef is unique since the cattle are fed with pineapple waste and this makes the meat tender. “The cattle are slaughtered at an Elders’ slaughterhouse that maintains good food safety, hygiene and animal welfare standards.”
|More H7N9 infections in China|
[18 February 2015] Health officials in China's Guangdong province have reported another H7N9 infection, which struck a 45-year-old man from Meizhou. Though several Chinese provinces have reported H7N9 cases this winter, Guangdong has been especially hard hit. The province has reported 50 cases so far, the Xinhua newspaper reported. It said 12 deaths have been reported and thousands of chickens have been culled and live-poultry trade has been curbed in several cities. Meanwhile, the highly pathogenic H5N1 avian flu virus recently infected eight tigers at a zoo in southern China, killing two of them, according to the Food and Agriculture Organization.
|Chick Hous opens first outlet in Jakarta|
[18 February 2015] Indonesia’s Chick Hous has inaugurated its first convenience poultry meat outlet in Pluit, Jakarta. The outlet sells different kinds of poultry meat like broiler, native chicken and duck meat in fresh chilled and frozen forms. The outlet also provides ready meals like roasted, kietna, kalasan and ungkep (local delicacies) chicken and duck. Owner Eddy Hioe said the concept of the outlet is to provide convenience for consumers to get quality poultry meat and ready meals. “We ventured into this segment because we know people love poultry meat. In addition, there are not so many competitors,” Mr Eddy said.
|South Korea bans Canadian beef|
[18 February 2015] South Korea has banned imports of Canadian beef after a case of bovine spongiform encephalopathy (BSE), or ‘mad cow disease’ was found on a northern Alberta farm last week. According to the Canadian Food Inspection Agency (CFIA) the ban will remain in place "pending further information on the confirmed BSE finding.” CFIA will need to reassure the BSE case does not “pose a health hazard to the Korean people,” John Masswohl, Director of government and international relations for the Canadian Cattlemen’s Association said in an email. South Korea accounts for only 1.25% of Canada’s beef exports.
|Indon pork demand, price to rise over lunar New Year|
[17 February 2015] Pig farmers in Indonesia expect the demand and price of pork to appreciate over the lunar new year at the end of this week. Phaithoon N Na Ayudhaya, Swine Specialist of Charoen Pokphand Indonesia, told Asian Agribiz in previous years, there was a 20% increase, especially in Jakarta and Surabaya."However farmers, especially in Solo, Central Java, cannot distribute their finisher pigs to Jakarta due to the flooding in the city since last week. “The situation is getting worst since Kapuk where the government’s pig slaughterhouse is located is also affected by the floods,” said Mr Phaithoon, adding that this situation will affect the price of live pigs since farmers in Solo rely heavily on the Jakarta market.
|Betagro invests USD30.7m in new feedmill|
[17 February 2015] Betagro Group has kicked off the construction of its USD 30.7 million feedmill in Thailand, expecting to address domestic demand for quality animal feed. The plant is slated for completion late this year and commercial operation early next year. Chayanon Kittayachaweng from Betagro said that Thailand now needs at least 14,800 tonnes a month of animal feed and the demand is rising. The 7.36ha new plant will have a 4000 tonnes/month capacity in the first phase, to produce products for farms, pet shops, vet clinics and modern trade outlets for local and export markets. “This is in response to market demand for higher quality feed and food,” he said.
|Gunung Sewu to add animal protein to its portfolio|
[17 February 2015] Indonesia’s Gunung Sewu Group, owned by the Angkosubroto family, was reported to be interested in taking over 63% of the shares of Sierad Produce. Dayu Ariasintawati, Director of the group’s subsidiary Great Giant Livestock, confirmed this and said that the group wants to be active in the animal protein business in Indonesia. “We want to venture into this sector but it’s easier if we buy an existing company rather than start from the scratch,” she said. Ms Dayu also revealed to Asian Agribiz that the group plans to venture into the dairy industry by setting up an integrated dairy cattle farm and milk processing plant.
|Vietnam seafood exports to hit USD8b in 2015|
[17 February 2015] The Vietnam Association of Seafood Exporters and Producers forecast that seafood exports will exceed USD 8 billion in 2015. The organisation said the country exported aquatic products to 166 markets around the world last year, earning USD 7.84 billion, this is an increase of 16.5% from 2013. Nearly all key seafood products experienced stable growth over the year, especially shrimp exports with a 27% surge due to increased global demand. The country’s total shrimp export revenue last year reached USD 3.95 billion. White-leg shrimp exports hit USD 2.3 billion, while black tiger shrimp netting USD 1.4 billion, up 46% and 4% over the previous year, respectively.
|Japan’s pork producers fight for status quo in TPP talks|
[17 February 2015] Japan’s pork industry remains opposed to its government bringing down tariffs on the proposed Trans-Pacific Partnership (TPP) free trade deal, warning that revising the existing system will ‘destroy’ the local industry. A spokesman for the Japan Pork Producers’ Association confirmed that the industry would continue to lobby the government to retain the protective tariffs that local pork enjoys at present. “We strongly disagree with the government entering into the agreement… if it goes ahead the Japanese pork industry would be destroyed,” Hisao Kuramoto, Managing Director of the association, was quoted by GlobalMeatNews. Reports have emerged, however, that Japanese negotiators have put forward a proposal that would see the current tariffs of USD 4.10/kg of imported US pork slashed to just USD 0.43/kg over 10 years.
|Vietnam, HK buy more poultry from Russia|
[17 February 2015] According to a study by the Russian Institute for Agricultural Market Studies, Russia’s shipments to Hong Kong and Vietnam was up by 45% and 201% respectively in 2014 compared to the year before. The study said that it expects Russia’s poultry exports to grow further this year. Daniel Khotko, Senior Expert, attributed this to the devaluation of the ruble against the dollar making the average price of broiler production lower than in the US and the EU. “We see great export potential in Africa for the supply of by-products and carcasses of laying hens, in the Middle East for halal products, as well as in Vietnam, Hong Kong and China.”
Acceptance and concerns with GM corn in Asia
[16 February 2015]
In this special web report the Asian Agribiz team takes a look at the issues and concerns related to genetically modified (GM) corn. The Philippines was the first in Asean to adopt GM corn. Vietnam and Indonesia will follow this year. In South Asia meanwhile, India, Pakistan and Sri Lanka prohibit the use of GM corn. Responses from feed industry players has been positive, but some parties still doubt the technology because of its possible adverse effects to the biodiversity of local corn varieties and human health.
China corn import quotas not issued despite GM approvals
The Chinese government has not yet issued 2015 corn import quotas despite the recent approval of Syngenta’s GM corn for import. High domestic production in 2013 and 2014 resulted in a massive surplus, and the government has been trying to block cheap imports. China blocked more than a million tonnes of US and other corn shipments last year because they included Syngenta’s MIR162 GM corn, which had not at that time been approved. Many feed companies and domestic food manufacturers prefer imported corn because it’s both cheaper and higher quality. Earlier this year the government made another effort to reduce its surplus, requiring companies applying for 2015 import quotas to first buy surplus grain from overstuffed government storehouses. The purchases have been completed, but little of the grain has been delivered and the Tariff Rate Quotas or TRQs have not been issued.
Indonesia may adopt GM corn seed this year
Indonesia is expected to adopt GM corn this year. Bambang Purwantara, a member of the Commission of Genetically Engineered Products Biosafety, said that there are two GM corn seeds that are under assessments. “Both of the seeds have received the approvals for feed and food safety, but haven’t received the approval for environment safety. If the approvals are secured, the government then can legalise the seeds for commercial purpose,” Mr Bambang explained. Dr Desianto Budi Utomo, Secretary General of the Indonesian Feed Millers Association, told Asian Agribiz that the association would welcome the government’s approval, since it will increase national corn production. Corn imported by Indonesia from Latin America and the US are also GM.
Vietnam set to grow GM crops
Cultivation of new GM strains in Vietnam are expected to start this year. By 2020 the country is looking at an area under cultivation of between 30% and 50% of the total farmland, VietNamNet Bridge reported. Pham Van Toan, Head of the Vietnam Academy of Agricultural Sciences under the Ministry of Agriculture and Rural Development (MARD), said the move is to increase the yield of grains for animal feed. Last August MARD approved the use of four strains of GM corn. The Ministry of Natural Resources and Environment issued the Certificate of Biosafety for GM corn variety MON 89034 of Dekalb Vietnam Co Ltd, a subsidiary of US-based Monsanto. The certificate is an important for the commercialisation and formal application of GM corn, allowing for mass production this year.
Farmers need more productive corn seed
Farmers in East Java and North Sumatera hope the Indonesian government will legalise the use of GM corn seeds. Winarto Tohir, Head of the Farmers and Fishermen Group (KTNA) for East Java region, said farmers are currently using hybrid corn seeds, “but the seeds are not resistant to pests and diseases.” He believes that if farmers are allowed to use GM corn seeds, local demand for animal feed use can be met. Last year Indonesia imported 3 million tonnes of corn valued at USD 1 billion. Tata Habib Nasution, Head of KTNA for North Sumatera region, said corn production in the Philippines increased by 10 tonnes/ha after using GM corn seed. “In Indonesia, the average productivity of hybrid corn seed is around 5-6 tonnes/ha.”
Monsanto’s NK603 GM corn tests ongoing in Thailand
In 2007 Thailand lifted the ban on GM testing, issuing guidelines that required GM testing to be done only on government land and in collaboration with a government body. Monsanto in 2013 cooperated with Naresuan University in Phitsanulok to begin testing on NK603 GM corn. Tests are now ongoing. Thailand’s largest agribusiness company, Charoen Pokphand (CP), has long been a driver of the corporate seed monopoly agenda in Southeast Asia. CP is the principle foreign licensee of Monsanto’s DeKalb Genetics, where it has developed its own hybrid seeds and distributed them for free to farmers throughout the region.
Hurdles ahead for GM corn in India
Commercial cultivation of GM corn remains a distant dream in India as GM corn is still only at field trial stage. “It is the policy of the federal government to follow assessments of GM crops and commercialisation happens only when it was found to be safe,” officials at the Union Ministry of Environment told Asian Agribiz. Meanwhile, the governments of Bihar, Madhya Pradesh, Kerala, Uttarakhand and Karnataka states have prohibited GM crops in their states. Apart from this, citizens, especially the farming community are concerned about the implications on health, economy and ecology.
Monsanto waiting for Indonesia’s decision
Monsanto Indonesia is still waiting for environment safety approval for its GM corn seeds that are now under registration and assessments by the Commission for Genetically Engineered Products Biosafety. “We hope to receive the approval this year,” said Herry Kristanto, Corporate Affairs Lead. “Once we receive the approval, we will conduct several tests for one growing season.” Mr Herry said the company’s GM corn seeds are targeted for local and international markets. Mr Herry added that if GM corn seed are introduced productivity can be increased by more than 7 tonnes/ha.
Not a magic wand for Vietnam
Vietnamese scientists argue that while the approved GM corn seeds can resist flies and herbicides, bigger problems are drought, and the lack of equipment. Dr Tran Hong Uy, former head of the Maize Research Institute, an arm of MARD, said the average yield of GM corn varieties is not higher than that of Vietnamese varieties. “Developing GM crops will make Vietnamese farmers more dependent on foreign seed suppliers,” he said. “GM crops will not reduce cultivation costs, and will spoil the ecological environment and biodiversity in addition to harming people’s health.” Dr Tran Dinh Long, Chairman of the Vietnam Plant Seed Association, believes that it would be better to develop the existing Vietnamese hybrid corn seed that can yield 8-10 tonnes/ha. Dr Uy agrees. He said the local varieties are reasonably priced and adapt easily to different land areas and can be stored for a long time.
Naresuan University tests GM corn
Thailand’s Naresuan University has done their first field tests with a variety of GM corn, according to Crop Biotech Update. Suchin Chinayon, Naresuan University Rector said the project took approximately seven months in 2013 and the Faculty of Agriculture tested the GM glyphosate resistant corn NK603. Initial tests were conducted in a small-contained plot at the agricultural research station in Phitsanulok. Mr Chinayon said: “Thailand must develop new corn varieties to improve and protect crops against pests and disease. At the same time, the country should begin to be aware of their position in the agricultural sector as the Asean Economic Community comes into force in 2015.”
Use of GM corn widespread in the Philippines
Industry observers note that the majority, if not all, of the yellow corn grown in the Philippines are already GM. The Department of Agriculture in 2014 declared the country self-sufficient in corn. Figures from the Philippine Statistics Authority said that last year, total corn production in the country reached 7.8 million tonnes valued at over USD 2.29 billion. The GM corn has not been without opposition, with groups like Greenpeace and local NGO Masipag protesting their cultivation due to possible adverse effects to the environment and health. However, Mercy Buyoc, an animal nutrition consultant, told Asian Agribiz that: “No genetic aberrations have manifested in animals that consume feed with GM corn. In addition, Jose Elias Inciong, President of the United Broiler Raisers Association, noted the discussion on the safety of GM corn is irrelevant as meat products imported from the US and other sources are from animals fed with GM corn.
Indonesia should adopt GM seed technology
Budi Tangendjaja, US Grain Council Technical Director said corn farmers in the Philippines have seen better productivity and lower production costs with the use of GM corn seed. Dr Budi added that it’s reported that the content of mycotoxins in GM corn tends to be lower because the corn ears are not or less damaged by pests so fungus development is decreased.
Scientists, stakeholders push for GM crops
While the GM crop debate is on in India, leading scientists and other stakeholders stress the need for GM crops to ensure food security. In the recently concluded 102nd Indian Science Congress, eminent scientists like Rajendra Singh and Deepak Pental called for removal of policy hurdles to facilitate use of GM crop technology. Scientists in India are pushing for the approval of GM crops to ensure food security. “I personally believe that GM corn will ensure adequate availability of corn in India and this in turn will fulfil the feed requirements for the poultry industry,” K G Anand, General Manager of Venkateshwara Hatcheries, told Asian Agribiz.
Malaysia maintains an ‘open minded’ stance
Malaysia produces about 5 million tonnes of compound feeds annually. The poultry and swine industries are dependent on imported feed ingredients such as corn and soy. “Malaysia is open-minded and does not see any reason to block GM raw materials,” said a scientist. “As crops they are more efficient, use less pesticides and produce higher yield. It is one way to improve productivity especially with a growing population,” he said, adding that the products must be well tested. He, however, said there should be clear guidelines “like the FDA has for drugs”. Some senior feed nutritionists and sales and marketing managers, when asked when GM raw materials were introduced in Malaysia, said “as long as they could remember”.
Sri Lanka keeps GM corn at bay
Some 50% of corn demand for animal feed in Sri Lanka are sourced locally, while the remaining is imported from India. M Imtiaz, Chairman of Crysbro Group of Companies, told Asian Agribiz: “We cannot use corn from Latin America since the government does not allow the use of GM corn for feed and food.” Poultry and feed associations in the country have lobbied the government to allow the use of GM corn since this move will help poultry producers in the country to be more competitive in terms of production cost.
Pakistan says ‘no’ to GM corn
In March 2014 the Pakistan High Court prohibited the government from issuing licenses for the import of GM corn seeds without proper analysis. Dr Abdullah Ahmad Tahir, Animal Nutritionist and Production Manager of Al-Meezan Poultry Feeds and Allied Products, said feed millers have little information about GM corn seeds. “They just apply strict measures to quality such as results of proximate analysis and mycotoxins level,” he said. According to him, growing GM corn seeds should be allowed if close observations and assessments have been done and the seeds are safe for livestock and human health.
Some producers in Singapore avoid GM ingredients
Singapore allows the import of agricultural biotech products such as GM corn and soy for use in foods and feeds. The official regulatory agency for GM foods is the Agri-Food and Veterinary Authority (AVA) while the non-regulatory advisory committee, the Genetic Modification Advisory Committee, works closely with the AVA to ensure GM food safety. Despite this, not all poultry producers use GM raw materials as feed ingredients. Chew Chee Bin, Chew’s Group Limited Chairman, told Asian Agribiz the company avoids GM raw material and instead uses corn and soy from India and Myanmar. It also uses a lot of food grade material such as biscuits and bread that are no longer on the shelves, as well as barley, wheat and soy from food producers.
Philippines could turn to alternatives should DDGS prices rise
China’s approval of Syngenta’s MIR 162 corn could lead to substantial orders for US corn and DDGS. This may mean a significant increase in the price of DDGS. Ameer Pahm, President of the Philippine Society of Animal Nutritionists told Asian Agribiz that the use of DDGS in the Philippines has been increasing over the last five years. He added though that the removal of residual oil by many ethanol plants over the last three years has lowered its energy value while the price today has been limiting its use. Dr Pahm said that local rice bran, corn bran, copra meal and wheat by-products are still the main substitute for DDGS particularly for growing and breeding hogs.
ARIEF FACHRUDIN reports from PPUN & Pinsar seminar, Indonesia
[13 February 2015]
Poultry farmers worry about DOC oversupply
Indonesian poultry farmers have asked the government to regulate the import quota of broiler GP & PS as well as to control the supply and demand of live birds. Sigit Prabowo, Chairman of the National Poultry Farmers Association (PPUN), told Asian Agribiz that last year many of its members lost severely due to oversupply and low live bird prices. “Losses were around USD 584 million. And every week we saw a broiler DOC supply exceed by around 4-7 million,” said Mr Sigit. Based on calculations, broiler DOC production this year may reach 64 million/week because in 2013 Indonesia imported around 660,000 broiler GP. The demand, meanwhile, is only 47 million/week. “We will see an excess of around 17 million/week, far higher than last year. The government should initiate early PS culling to prevent another bad year,” he said.
Government sets strategies to prevent oversupply
Based on recent data from Indonesia’s Ministry of Agriculture, chicken meat contributes 66% of the total meat consumption, of this 50% is from broiler meat. The ministry has also predicted that broiler production this year to reach 3.3 billion birds. Director of Livestock Breeding, Abubakar, told Asian Agribiz that the demand was estimated at only 2.44 billion birds. So there will be an excess supply of 890 million birds. To prevent this, he said that the ministry has set some strategies including early PS early culling and regulation of GP imports. “There are 14 GP importers & breeders who distribute their PS to 80 PS breeders. If these 80 PS breeders refuse to give data of their production and capacity, we will freeze the GP import permit. We want transparency and need valid data to calculate supply and demand,” Mr Abubakar explained.
Integrators asked to focus on processed products market
Many farmers in Indonesia complain of unfair competition in the industry. An official of Pinsar Indonesia (the Indonesian Poultry Farmers Association and Information Centre) for South Sulawesi region told Asian Agribiz that the problem is that integrators also sell live birds to traditional markets. "These big companies who have technology, slaughterhouses and further processing plants, should focus on processed products market and leave the traditional market to us.” Rudi, a broiler farmer from South Kalimantan, concurred and said that the situation is the same in his region. He hopes the government can differentiate the market for farmers and integrators.
|Thai Ag Ministry to launch safe meat campaign|
[13 February 2015] Thailand’s Ministry of Agriculture and Cooperatives will be launching a safe meat campaign at Yingcharoen Market in Bangkok today to enhance public awareness of the importance of safe meat consumption. The campaign is scheduled to kick off before the Chinese New Year to ensure that meat sellers supply quality products to buyers, as the demand for pork, poultry and eggs usually surges during this period. The Livestock Development Department that supervises the activity will educate consumers on how to choose safe and quality meat and eggs. There are currently 9000 farms, 1874 slaughterhouses and 4000 meat markets whose hygienic standards have been certified by the department across the country.
|Avian flu continues to rage in Taiwan|
[13 February 2015] Animal health officials in Taiwan have reported 35 more poultry sites hit by H5N8 avian influenza, with the H5N3 virus striking three more locations and another 72 H5N2 outbreaks. The H5N8 outbreaks affected 34 farms and one slaughterhouse in five different counties as well as in the cities of Tainan and Kaohsiung. The H5N2 virus was also found on three farms. Most of the farms housed geese, but a few were raising ducks, chickens, and turkeys. H5N3 outbreaks were in Yunlin and Pingtung while the H5N2 outbreaks were identified in Taoyuan, Tainan, Kaohsiung, and Taichung, affecting geese, chickens, ducks, and turkeys.
|Vietnam is largest shrimp exporter to South Korea|
[13 February 2015] Vietnam was the largest shrimp exporter to South Korea in 2014 in terms of both volume and value, the Vietnam Association of Seafood Exporters and Producers said on its website. Vietnamese shrimp accounted for nearly half of South Korea’s imports last year, with 27,791 tonnes, ahead of China at 13,936 tonnes. Vietnam’s shrimp export volume to the republic increased by 36% last year compared to 2013, while export value reached USD 290.2 million, up 60%, said the association.
|Bird flu outbreaks to boost Thai chicken exports|
[12 February 2015] Thailand is expected to export more chicken this year following outbreaks of bird flu in several countries since late last year, according to a report issued by Kasikorn Research Centre. The deadly disease has been found in a number of countries including China, Japan, the Netherlands, the US, Canada, Egypt and Nigeria. Several countries have imposed import bans on chicken from producing countries, the report said. The ban may help push Thailand’s exports of chicken and its products this year, while confidence in Thai chicken would be further boosted. Kasikorn Research Centre forecasts that Thailand would earn about USD 2.4 billion from exporting frozen and processed chicken in 2015, up 4.5% from last year.
|CJ CheilJedang records USD6.6b revenue |
[12 February 2015] CJ CheilJedang recently announced its annual results in 2014 showing total revenue minus CJ Korea Express, at USD 6.6 billion, up 2.2% from the previous year. “We pushed ahead with aggressive restructuring at all the units including food business. Along with this, the recovery in the international price of lysine improved our profitability despite the prolonged depression in domestic demand,” said the company. Its food business recorded annual sales of USD 3.5 billion last year, up 1.9%. Its biological resource department achieved USD 1.4 billion, up 4.4% since sales of feed in its major overseas markets such as Indonesia and Vietnam increased year on year despite shrinking demand caused animal diseases like porcine epidemic diarrhea.
|Indonesia to develop cattle embryo transfer centres|
[12 February 2015] In order to achieve beef self-sufficiency, Indonesia’s Ministry of Agriculture this year will develop cattle embryo transfer centres in several regions. Agriculture Minister Amran Sulaiman said the ministry plans to allocate USD 395,000 to develop nine cattle embryo transfer centres in West Sumatera, South Sumatera, West Nusa Tenggara and East Nusa Tenggara. “Through this program we expect to increase the birth rate of twin calves by 500,000 heads per year,” he said. In addition, the ministry this year will also intensify artificial insemination with a target to inseminate 2 million cows.
|Pakistan’s meat industry to focus on feedlot fattening|
[12 February 2015] Pakistan’s meat industry is set to focus on raising the weight of calves and buffaloes through feedlot fattening with a protein-rich diet. Stakeholders in the meat industry achieved consensus in this regard at a seminar hosted by US Agency for International Development (USAID) with Punjab Halal Development Agency (PHDA) recently. Saeed Ahamed, Deputy Governor of the Islamic Banking Department at the State Bank of Pakistan said commercial banks will help farmers purchase calves to raise on high quality feed. Pakistan’s meat industry is valued at USD 115 million and is said to be underutilised due to poor feeding and low quality production of beef.
|Branding China’s agri industry|
[12 February 2015] China released its 2015 rural policy, or the ‘number one document’ recently, highlighting modernising agriculture and food safety as key priorities. Some agri firms think that high quality products, modern production and food safety are achievable if agribusinesses create brands. “Agribusiness players should be pioneers in modernisation. You can't just rely on expanding production. Only with a brand can modern agriculture go further,” Yu Xubo, President of China’s largest food company, Cofco Corporation, said. Integrating the whole industrial chain is one way to cross the food safety scandals plaguing the country. To enhance quality and safety supervision, Cofco set up a mechanism to monitor the entire food production process.
|FAO & SIB cooperate to combat viral infections|
[12 February 2015] The UN Food and Agriculture Organisation (FAO) has chosen the Swiss Institute of Bioinformatics (SIB) as a designated reference centre to expand its access to state-of the-art technology in combating dangerous viral infections, including avian influenza and foot-and-mouth disease, in farm animals and wildlife. The SIB is equipped with high performance computers, software, databases and a knowledgebase used for screening and monitoring zoonotic diseases. Working closely with FAO, SIB experts have developed tools to improve early detection and fast alert systems to prevent and respond to trans boundary disease emergencies in poultry or livestock. "The new technology helps us understand biological threats in order to help countries better prevent, respond and ultimately protect the health of humans, animals and the environment," said FAO's Chief Veterinary Officer, Juan Lubroth.
|De Heus to start building boar station next month|
[11 February 2015] In a move to raise farming standards in Vietnam, feed producer De Heus LLC (Vietnam) will start construction of a boar station in Binh Duong, in March. The first phase of the project will produce 120 boars and available semen for its customers, Gabor Fluit, General Director, told Asian Agribiz. Phase two will see the company supply gilts. “In the swine sector in Vietnam there is a large supply of semen available but quality is the issue. The average farm here can produce 20-22 piglets/sow/year. The Netherlands, Denmark and Germany produce 28-30 piglets/sow/year. This is a huge gap and we want to help improve the genetics in Vietnam,” he said.
|South Korea lifts ban on Thai chicken imports|
[11 February 2015] South Korea has finally resumed imports of frozen chicken from Thailand after an 11-year ban, Agriculture and Cooperatives Minister, Petipong Pungbun Na Ayudhya announced. He said the lifting of the ban has prompted a 6-7% growth in Thai exports of frozen chicken, to 600,000 tonnes in 2015, valued at around USD 2.5 billion. The first exports from Thailand are expected to in June. According to Mr Petipong, the renewed arrangement would mean South Korea will be Thailand’s top importer.
|Pig farmers gain from communication technology|
[11 February 2015] Social media and messaging applications have benefited pig farmers in Indonesia. Phaithoon N Na Ayudhaya, Swine Specialist of Charoen Pokphand Indonesia, told Asian Agribiz that it has helped mainly in communicating live pig prices. “If we don’t communicate and share information, we can be cheated by middlemen,” he said. To prevent price manipulation, Karya Prospek Satwa, a partner of CP Indonesia uses social media like Facebook to communicate and share information with pig farmers from different regions. “We have a Blackberry Messenger (BBM) group with farmers in Java and North Sumatera. Every day we share information on live pig prices in their region,” said Mr Phaithoon. “We recently set up a BBM group with farmers in North Sulawesi. The community has gained from this communication technology.”
|Yum confident of KFC’s growth in China|
[11 February 2015] US QSR giant Yum Brands revealed that KFC’s China stores reported a 16% decline in Q4 business due to a scandal at OSI Group’s Shanghai subsidiary, which supplied some products to KFC. Yum Chairman Greg Creed expressed optimism that business would gain momentum in 2015. Mr Creed noted Yum’s China Division had opened 737 new units during the 2014 fiscal year, including 376 KFC stores, and planned to open another 700 units in 2015.
|Drastic measures needed to revive Vietnam’s pangasius industry|
[11 February 2015] Vietnam’s tra fish industry has contracted in the last five years. About 80% of businesses are in difficulty. Breeders and processing plants have not invested in growth. Le Vinh Tan, Deputy Head of the Central Economic Committee, said local authorities should work closely with Vietnam Pangasius Association and relevant agencies to help restructure the industry. Secretary General of the Vietnam Pangasius Association Vo Hung Dung said the restructuring project should aim to improve quality, rebuild the image, increase access to capital and widen distribution and export markets.
|MPEDA keen on producing shrimp seed locally|
[11 February 2015] The Marine Products Export Development Authority (MPEDA) in India is keen on producing shrimp seed locally and to promote finer quality shrimp seed. Presently, shrimp seed is produced by MPEDA in association with the Oceanic Institute in Hawaii, USA. Speaking at an aqua farmers meeting organised by Andhra Pradesh State Fisheries Department, S Kandan, Deputy Director (Aquaculture) of MPEDA said they are awaiting the Union government’s approval for the project. “We are ready to produce disease-free shrimp locally at a reduced cost,” he said.
|MPI to commission two new processing plants |
[10 February 2015] Meat Products of India (MPI) based in the southern state of Kerala, expects to commission its new meat processing plants by the end of this year. “The plant in Mundayar will be a chicken processing plant with a 4,000 birds/day capacity,” M P John, Managing Director of MPI told Asian Agribiz. According to him, the other processing plant at Chalakkudy will be for processing around 200 pigs and 200 large animals per day. With the demand for pork and other meat from MPI witnessing a steady increase in Kerala among general consumers as well as the Horeca sector, Mr John said the new plants will help meet the growing demand.
|Indonesia’s poultry industry to continue to grow|
[10 February 2015] Indonesia’s poultry industry this year forecasts continued growth with demand for broiler and eggs. Broiler demand this year is estimated to reach 2.7-2.8 million tonnes, according to Don P Utoyo, President of the Indonesian Poultry Society Federation. The industry, meanwhile, is able to produce around 3.5-3.6 million tonnes of dressed birds. Chicken egg demand this year is estimated at around 2.7-2.9 million tonnes, and the industry is able to supply around 3.2-3.3 million tonnes. Mr Don added that the total assets of the broiler and layer industries will be around USD 4.7 billion and USD 3.2 billion, respectively. While the total turnover is expected to reach USD 25.2 billion for broiler and USD 10.3 billion for layer.
|Yum takes hit as Little Sheep purchase crashes|
[10 February 2015] US QSR giant Yum Brands reported a USD 86 million Q4 loss worldwide due to a USD 361 million write-down on its investment in Little Sheep, a hotpot restaurant chain in China. Yum bought the chain for USD 587 million in 2012 and had to invest heavily to bring it up to standard. It lost business when rumours spread that the chain had bought fake sheep meat. It was the second write-down for Little Sheep, since Yum took a charge of USD 258 million on the investment in 2013. The total write-down now exceeds the initial investment, but Yum said it still values Little Sheep at about USD 100 million.
|McDonald's sales dogged by Asian woes|
[10 February 2015] McDonald's posted a worse-than-projected decline in global sales for January, dragged down by a slump at its Asian restaurants. The world's biggest QSR, McDonald's has suffered a series of setbacks, including the rationing of French fries in Japan and a scandal involving its meat supplier, Shanghai Husi Food Co.in China. In Japan the company lost USD 186 million in 2014 while its sales plunged 39% in January, marking the 12th straight month of declines.
|Indonesia aims to achieve corn self-sufficiency|
[10 February 2015] Indonesia’s President Joko Widodo has targeted to achieve corn self-sufficiency in the next three year. For this, the Ministry of Agriculture has allocated around USD 197 million, to open new land of about 1 million ha for corn production. Of the fund, some USD 59 million will be used for hybrid corn seed allocation, while the remainder for infrastructure and other related facilities to support the program. The Indonesian Feed Millers Association (GPMT) has predicted that this year Indonesia may import around 3 million tonnes of corn for animal feed. GPMT Chairman, Sudirman FX said that for Q1, the association has asked the government to allow corn imports of up to 1 million tonnes. Last year Indonesia’s corn demand for animal feed reached 7.5 million tonnes and of this, 3.2 million tonnes were imported.
|JBS closer to owning Australia’s Primo|
[10 February 2015] Brazilian meat giant JBS has cleared one of the two main regulatory hurdles in its USD 1.13 billion takeover of big smallgoods company Primo. However, the Australian Competition and Consumer Commission has flagged its wariness about a consolidating abattoir industry trend. Primo is set to be sold to the meat processing and export giant in a strategic value-adding move set to aid JBS’ Asian market growth. The Group owns the Primo, Hans and Beehive brands and key processing operations in five locations. It has been majority owned by Singaporean-based equity fund manager Affinity Equity Partners for the past three years.
|De Heus Vietnam to launch new plants|
[09 February 2015] As part of its efforts to bring quality nutrition to Vietnamese livestock raisers, De Heus will launch two new plants in the first quarter of this year. Its plant in Binh Dinh, with a capacity of 60,000 to 80,000 tonnes/year, is scheduled for an opening ceremony in mid-March, while the Vinh Phuc plant, with a capacity of 200,000 tonnes/year, will open end-March, Gabor Fluit, General Director, told Asian Agribiz. “In Q1 our six factories will produce 850,000 tonnes of feed,” he said. Both these facilities feature high-end technology and automation, requiring only 50% of the workforce compared to the older plants.
|KPS involves farmers to produce black pigs|
[09 February 2015] Karya Prospek Satwa (KPS), a partner of Charoen Pokphand Indonesia involved in pig contract farming in Bali, plans to involve pig farmers in producing commercial black pigs. “Initially, we will provide 100 sows to our contract farmers,” Phaithoon N Na Ayudhaya, CP Indonesia Swine Specialist, told Asian Agribiz. “This will help maintain the stability of our black pig meat supply to Jakarta, as well as for promotion to the Horeca industry in Bali.” KPS also plans to develop its black pigs in Toraja, South Sulawesi by setting up a parent stock station with 100 sows. “We will cooperate with a CP feed agent who has a good network with farmers in the region,” said Mr Phaithoon. Once the programs in Bali and Toraja are developed, KPS will develop its black pigs in East Nusa Tenggara.
|Thai chicken exports to grow by 6-7%|
[09 February 2015] The Thai Broiler Processing Exporters Association foresees a bright future for the Thai poultry industry, believing it will enjoy an export jump this year. Export volume is expected to reach 600,000 tonnes, a 6-7% growth over last year. Apart from strict compliance with international hygienic standards, the export growth is attributed to the Thailand-South Korea trade deal which is due to come into effect in the middle of this year.
|Local supply to meet secondary meat, offal demand|
[09 February 2015] Early this year Indonesia ruled that imports of secondary (beef) meat and offal will not be allowed. Minister of Agriculture, Amran Sulaiman said that local supply can fulfil demand. “We have checked that there are 261,000 heads of beef cattle at feed lotters in West Java and they should be able to meet demand for secondary meat and offal for the following nine months,” he said, adding that the ministry will monitor beef cattle stock in the country to prevent supply scarcity of both products. “If the local supply cannot meet demand, then we will urge the Ministry of Trade to allow imports,” said Mr Amran.
|New bird flu infections and outbreak in China|
[09 February 2015] The Guangdong and Zhejiang provinces in China reported seven more H7N9 avian flu infections on Friday, one of them fatal. This raises the global number of H7N9 cases to 553, according to FluTrackers' case list. With no recent updates from national officials in China on what appears to be a third wave of infections that roughly began in September, it's unclear exactly how many cases have been detected over the past few months. In the meantime, China's Ministry of Agriculture confirmed one large outbreak of highly pathogenic H5N6 avian flu on a farm in Hunan province. The outbreak began Feb 2 and agricultural officials reported 3,400 cases of H5N6 and 2,600 deaths within the flock of over 7000 birds.
|GAA inks MoU with Vietnam pangasius group|
[09 February 2015] The Global Aquaculture Alliance (GAA) and Vietnam Pangasius Association will work together to advance responsible practices in the farming of pangasius and towards Best Aquaculture Practices (BAP) certification, said Carson Roper, International Business Development Manager for GAA’s BAP Division. Mr Roper hopes to strengthen market ties for BAP-certified pangasius. Through the deal VNPA will identify and enrol processing plants, farms, feedmills and hatcheries in the BAP third-party certification program to increase the number of BAP-certified facilities in Vietnam. GAA, meanwhile, will identify market endorsers to promote responsibly produced pangasius products globally and to offer training and seminars to help producers apply VietGAP and the BAP standards to improve their practices.
Localising QSR fare gains approval, while Asian brands go abroad
[06 February 2015]
Fastfood restaurants are driving production and import of frozen meat in the region. Quick-service restaurants (QSR) are staples in major cities in Asia, and are now trickling into second and third-tier cities to extend its reach. They are adapting to changing lifestyles by launching innovative services and menus. Many brands have drive-through options, offer home delivery and allow online orders. Some are working on mobile apps to target mobile-savvy customers. Perhaps most interesting are efforts at localising the Western burger and fried chicken, serving spicy and sour meals, rice and porridge, and even catering to vegetarians to reach a broader target audience. Meanwhile Asian home-grown brands like Jollibee from the Philippines, Malaysia’s Marrybrown and South Korea’s Lotteria are going international, taking their combo meals to other Asian countries, the Middle East and the US.
First KFC in Myanmar in 2015
Yum! Brands has teamed up with Singapore-listed Yoma Strategic Holdings to bring the KFC franchise to Myanmar. Yoma Strategic’s communications personnel told Asian Agribiz that the first outlet will open mid this year. With 50 million people and a growing middle class with disposable incomes, Myanmar offers significant opportunity for Yoma Strategic. “The macro potential is good. The consumer class is forecast to grow from 2.5 million today to 19 million in 2030, potentially tripling consumer spending by more than threefold,” said Serge Pun, Executive Chairman of Yoma Strategic. Micky Pant, CEO of the KFC division of Yum! Brands said the announcement of the first KFC coming to Myanmar reflects the company’s ongoing strategy of global expansion in emerging markets.
Jollibee looks beyond traditional market
Philippines’ brand Jollibee Food Corporation (JFC) is looking beyond its traditional market of overseas Filipinos as it seeks to make further headway in big markets like the US and China. The company is looking for an equity partner as it plans to spend USD 1 billion to acquire an established restaurant chain in the US. In a report by BusinessMirror, JFC Chairman Tony Tan Caktiong said the company is seeking a strong regional brand. “We don’t want a brand that’s already big.” This echoes a statement made last year by CEO Ernesto Tanmantiong, who said acquiring a bigger chain will help the company become a major player in the US at a faster rate. As of end October 2014 JFC already has 80 stores of its home-grown brand in the US comprising 31 of its flagship Jollibee stores, 30 Red Ribbon stores and 19 Chowking outlets. It opened its first Jollibee store in the San Francisco area in 1998.
Korea’s Lotteria to be among top 3 in Indonesia
In 2012 South Korean retailer Lotte Group’s subsidiary Lotteria Co Ltd entered the fast food market in Indonesia. Working with PT Mondial Risjad Fastana, Lotteria said it is ready to spend USD 20 million on the chain, and expects to open 50 retail outlets by later this year. Last year the company opened 31 outlets in Jabodetabek and Karawang, and five outlets in Bandung. Handi Irawan, President Director of Mondial, said the K-Pop culture has helped boost the popularity of Lotteria outlets, which serve meals from organic food. “We expect Lotteria to be among the top three QSR chains in Indonesia by 2020,” he said. “The main challenge in Indonesia is to identify strategic locations for the outlets and to maintain quality service.”
Malaysia’s Marry Brown expands in India
Malaysia’s home-grown fast-food chain Marrybrown has ventured into India eyeing mainly tier two and three cities in the southern states. The chain currently has 48 outlets, of which 44 are in Tamil Nadu and two each in Bangalore, Karnataka and Kochi. “By the end of this fiscal year we would like to increase the number of outlets to 75,” said Ajith, Director of MGM Entertainments Pvt Ltd, the master franchisee for Marrybrown in India. Following local trends the chain will also offer rice and biryani as well as vegetarian dishes to cater to the local palate. Marrybrown has outlets also in China, Indonesia, Sri Lanka, Maldives, Africa, the Middle East and Myanmar.
BonChon focuses on quality, healthy products
Marrying the K-Pop culture and Indonesia’s love for fried chicken, Michelindo Food International introduced Korean chain BonChon Chicken to the Indonesian fast-food market in 2012. Michelle E Surjaputra, President Director, said the company operates 17 outlets across Jabodetabek, Bandung, Surabaya, Bali and Banjarmasin. “At the moment we are focusing on branding. We will add to the number of our outlets through franchising,” she said. Ms Michelle said BonChon pays attention to quality and healthy products. “We weigh each chicken and we reject the fat ones. Our sauce comes from fruit extract. And we wash our chicken with specially filtered water.”
Vietnam displays appetite for fast-food
Rising living standards, higher disposable incomes, increasingly busy lifestyles and the ongoing Westernisation of Vietnamese culture will support strong growth of KFC, Lotteria and McDonald’s in the next few years. KFC Vietnam was the leading fast-food operator in 2013, with a 17% market share. Long-term establishment, high quality, a good reputation, diversified menus and good services are the company’s competitive advantages. In 2013, the company not only increased its number of outlets but also introduced new products such as Pokkits – a new sandwich product. These helped it record a healthy growth of 23% in 2013.
Binalot goes to the Middle East
Philippine chain Binalot (the Filipino word for wrapped), which offers local rice meals with adobo, bistek (Filipino-style beefsteak), tapa, tocino, sisig and longganisa, and even salted eggs with tomato, with the meals wrapped in banana leaves, is setting up an outlet in the UAE after it awarded a single country franchise to UAE-based retail company Al Ahli Holding Group. Binalot founder Rommel Juan said with overseas Filipino workers making up some 20% of Dubai’s population, Binalot has a lot of potential to grow in the UAE, and Al Ahli is the right partner. Al Ahli hopes to open its first outlet in the Dubai Outlet Mall by late next month. It targets 20 outlets by 2020.
McDonald’s Thailand grows
McThai Co, the Thai operator of McDonald’s QSR, plans to double the number of its stores to more than 400 by 2020, and to become one of the top three operators of McDonald’s restaurants in Asean in terms of store count. The company will budget more than USD 31 million annually for its restaurant expansion over the next five years, said Hester Chew, Chairman of the Executive Committee and CEO of McThai. McThai operates 208 McDonald’s restaurants in Thailand. “We opened 20 new McDonald’s restaurants last year, of which more than 50% are drive-through outlets,” Mr Chew said. The drive-through outlets contribute 20-30% more revenue than traditional restaurants.
KFC Indonesia rides the Korean wave
Responding to signals on the popularity of the K-pop culture in Indonesia, Western iconic fast-food brand KFC Indonesia is looking East with its latest menu featuring KFC Chicken Bulgogi, a recipe from Korea. Korean sells in Indonesia because of the popularity of the K-Pop culture and Korean drama series aired in the country. Taglined ‘Feel the Korean sensation without having to go to Korea’, the promotion serves crispy fried chicken with sesame and Bulgogi sauce, rice, a drink and pudding for USD 2.10.
Jollibee plans to have outlet in Indonesia in 2016
Jollibee Food Corporation (JFC) from the Philippines plans to open outlets in Indonesia next year. JFC CFO Ysmael Baysa said the company has been looking for franchise partners similar to its expansion strategy in the Middle East. The company tried to enter the Indonesian market in the mid-1990s but did not push through with plans due to the Asian financial crisis in 1997. With Indonesia’s population of 250 million, Mr Baysa said there are only 130 McDonald’s outlets, and this presents an opportunity for Jollibee. He said, in the Philippines, JFC is ‘three years ahead’ of McDonalds.
Burger King Malaysia to have new owner
Burger King in Malaysia and Singapore may soon have a new owner. Malaysian in-flight caterer Brahim’s Holdings Bhd, looking to diversify its business, and Quantum Angel Sdn Bhd announced a USD 26 million deal to buy the franchise from Ekuinas Nasional Bhd, a government-linked private equity fund management company. Datuk Seri Ibrahim Ahmad, Brahim’s Executive Chairman, said the Burger King franchise in Malaysia and Singapore is “a strong brand and the trend of increasing fast-food consumption by Malaysian and Singaporean consumers provides us with significant growth potential”.
KFC increases its vegetarian offering
Chicken may be its core product but KFC in India has increased its vegetarian offerings recently as it finds that relying too much on chicken might not be sufficient for growth. “We saw an opportunity to deliver a significant vegetarian range and reach a broader target audience,” said Dhruv Kaul, KFC Director of Marketing. The Paneer Zinger in the burger category is a good example. Although relatively new, this product has already captured 30% of KFC’s sales of vegetarian products. Other popular products such as twisters and strips have all helped increase KFC’s rate of growth on the vegetarian side.
|Japfa buys 15% of Myanmar business|
[05 February 2015] Agri-food company Japfa Ltd has acquired the remaining 15% of Japfa Comfeed Myanmar for USD 5.7 million, making it a wholly-owned subsidiary of the group. The acquisition was made via a conditional share purchase agreement (SPA) between Japfa’s wholly-owned subsidiary Japfa Myanmar JV - which currently holds 85% of Japfa Comfeed Myanmar - and Best Livestock Limited, an unrelated third party, for the remaining 15% of the issued share capital of Japfa Comfeed. “A change in the Myanmar regulations has created an opportunity for the group to fully own its Myanmar operations and reap the full benefits of this fast-growing poultry market. By replicating our Indonesian poultry business model, we now enjoy a first-mover advantage and hold a leading market position for poultry in Myanmar," said Tan Yong Nang, Chief Executive Officer of Japfa.
|Puspa Agro develops corn farming in East Java|
[05 February 2015] Indonesia’s agribusiness company Puspa Agro has allocated USD 1.6 million for capital expenditure this year. Director Abdullah Muchibuddin said the company will use the capex to develop corn farming through cooperation with farmers in Bojonegoro and Gresik in East Java. “We have prepared 1000ha for a pilot project and target to produce 800 tonnes per harvest season,” he said. He added that a feedmill of France-based animal feed producer PT Invivo Indonesia in East Java will acquire the entire crops.
|Chinese policy document pushes land rights reforms|
[05 February 2015] China will step up rural land reforms and agricultural modernisation in order to assure a stable food supply, improve food safety and raise farm incomes, according to a key policy document. The No. 1 Document, so designated to emphasise the importance of agriculture to China, is the first major policy document issued every year by the Communist Party Central Committee and the government’s State Council. This year’s document outlines five key aspects of reform: modernising agriculture, raising farm income, improving infrastructure, deepening land reforms, and strengthening the agricultural and rural legal system to deal with issues such as protection of property rights and market regulation. Among other points, the document said the government would expand an experiment that allows farmers to trade their land to create bigger and more efficient farms.
|Indonesia to set up 400 fish processing units by 2019|
[05 February 2015] Indonesia’s Chamber of Trade and Industry (Kadin) plans to set up 400 fish processing units in fish production centres in Indonesia by 2019 to improve the national fish processing industry with value added fish products. Yugi Prayanto, Kadin Vice Chairman for Fishery and Marine Affairs, said if this plan is realised, in 2019 Indonesia will have as many as 1000 fish processing units. Of the targeted 400 fish processing units, 100 will be large capacity units and 300 will be small capacity units. Investment for large capacity units that is equipped with modern technology is around USD 39.4 million, while for small capacity units it is around USD 2.4 million. “So to set up all the units, the total investment is around USD 4.7 billion,” said Mr Yugi.
|Pakistan seeking a niche in halal market|
[05 February 2015] Even though Pakistan’s halal sector is still underperforming, the country is set to become one of the active players in the global meat trade, especially in the Middle East and Southeast Asia. According to Dubai Chamber of Commerce, the highly competitive global meat market could be worth up to USD 1.6 trillion by 2018. Reports suggest that the halal sector in Pakistan is striving to create a niche for itself in this highly competitive global market. Statistics from the Bureau of Statistics reveal the country’s halal meat exports rose to USD 230.2 million during 2013-14, a 9% increase over 2012-13. This is due to promotions by the government and the ban on export of live animals.
H5N1 behind turkey deaths in Kerala
[05 February 2015] The High Security Animal Diseases Laboratory in Bhopal has confirmed that H5N1 was the cause of death of turkeys at a Government Turkey Farm in Kerala, India. “Of the more than 8000 turkeys raised at the farm, 6000 were culled while the rest had died from the disease,” Dr B Aravind, Assistant Director of Animal Husbandry Department said. The farm will closed for three months. According to Dr Aravind, chicken and ducks within a 1km radius were culled as per standard protocol.
|Maximising genetic potential through nutrition|
[04 February 2015] Genetic improvements have resulted in sows with a larger mature body size that are capable of producing larger litter sizes and greater milk production. The right nutrition is critical for modern sows to realise their genetic potential to support large litters and produce healthy pigs. At the 2015 Pig Feed Quality Conference (PigFQC) organised by Asian Agribiz, the latest developments in sow nutrition will be a focus topic. Other topics to be covered by regional and international speakers include the role of nutrition in maximising reproduction and productivity of the modern sow, how to increase the sows’ voluntary feed intake using NSP degrading enzymes, and how bio-emulsifiers can improve energy utilisation. The PigFQC will run on April 9-10 in Ho Chi Minh City, Vietnam. Click here for more information about this two-day conference.
|Broiler to see fastest production development in Asia|
[04 February 2015] Towards 2020, in the race of production gains in Asia, the broiler chicken will emerge as the winner over all other meats, experiencing the fastest production development in nearly all countries in the region. Rupert Claxton, senior Gira consultant told Asian Agribiz that the faster rate of growth will be possible due to its lower cost of production, including better feed conversion ratio and faster production cycle, making for a cheaper end product, with more appeal to the consumer. He said technology gains will help reduce the industries’ drain on natural resources. “The key will be for Asian producers to adopt suitable technologies for their environment and systems, which are not necessarily the best available, and then adapt and learn from mistakes already made in their application elsewhere,” he said.
|CAB Cakaran to spend USD5m to expand breeder farms|
[04 February 2015] CAB Cakaran Corp has said it will spend around USD 4.13-5.51 million this year to expand its breeder farms in the northern Malaysian state of Kedah. It will also continue to be on the lookout to acquire more breeder and broiler farms. “Our goal is to produce 5 million birds/month from our broiler business by next year. This is achievable as we are already at some 3.3-3.6 million birds/month. Tong Huat will increase the broiler numbers by another 550,000-600,000 birds,” said Christopher Chuah, Managing Director. Tong Huat Poultry Processing Factory Pte Ltd is its new Singapore-based subsidiary. He adds that CAB Cakaran’s poultry margins would improve closer to 5% from its current 3.6%, as it achieves economies of scale. Currently, CAB has 10 breeder farms and 117 broiler farms throughout Malaysia. For the fourth quarter ended September 30, 2014 its net profit was down 36.3% to USD 1.85 million on the back of a 5.09% increase in revenue to USD 49.38 million. For the full year, net profit dropped 6.44% to USD 3.08 million while revenue was up 10.4% to USD 185.26.
|Chinese policy document gives GM technology short shrift|
[04 February 2015] The Chinese government gives scant encouragement to boosters of GM corn technology in its 2015 document on agricultural policy. The annual policy paper, called the No. 1 Document to emphasise the importance of agriculture, is issued jointly by the Communist Party’s Central Committee and the government’s State Council. The document calls for agricultural modernisation on many fronts, but devotes only a single phrase to GM organisms: “(China will) strengthen research into GM technology while ensuring the safety and scientific distribution of the technology.” While many Chinese scientists support introducing GM corn seed, saying it will increase yields and reduce reliance on imports, the public is sceptical about the safety of GM crops. The government has approved several varieties of corn, soybeans and other GM crops for import.
|Russia interested in Philippine pork|
[04 February 2015] Russia is interested in importing pork from the Philippines and is now in talks with Philippine authorities to clarify trade regulations, a report by BusinessMirror said. Citing National Meat Inspection Service Director Dr Minda Manantan, it said Russia still has to inspect Philippine facilities before deciding whether to import pork. The Philippines is an FMD-free country but it has yet to ship pork to overseas markets. In October 2014, Russia approved the import of crocodile meat from the Philippines.
|Perikanan Nusantara to increase fish production|
[04 February 2015] Indonesia’s government this year plans to allocate some USD 15.7 million to PT Perikanan Nusantara, a state-owned company involved in fish processing and frozen fish export. Abdussalam Konstituanto, President Director, said the fund will be used for capital expenditure. “With this our production is targeted to reach 50,000 tonnes,” he said. The company plans to buy two new 500 GT fishing vessels to improve catches. At the moment the company only has six 40 GT vessels. “We will also cooperate with more than 10,000 fishermen to secure raw material for our processing facilities,” said Mr Abdussalam. He added that the company will also set up new cold storage facilities. Perikanan Nusantara produces frozen tuna and skipjack for export. It also produces other processed products like fishballs, sausages and fish sticks, as well as canned fish and fishmeal for local and export markets.
|Minh Phu courts foreign investors to expand|
[03 February 2015] Minh Phu Seafood Corp, Vietnam’s largest seafood exporter by value will seek to sell half of itself to foreign strategic investors to help fund overseas expansion and become a global shrimp company by 2020. The company aims to complete the sale this year after it gets approval to delist from the Ho Chi Minh City Stock Exchange this quarter. Minh Phu’s net income is forecast to jump 55% to USD 66 million this year, with sales reaching USD 1 billion, mainly from exports. The company plans to build shrimp processing companies and distribution units in India, Indonesia and the Philippines in the next five years. It also plans to build a 40,000-tonne shrimp processing plant in Ca Mau province this year and another with the same capacity in Hau Giang province in the next three years.
|Indonesian feed prices stay due to weak rupiah |
[03 February 2015] Analyst s have predicted that Indonesia’s poultry companies this year will enjoy a more favourable business environment with lower commodity prices. US soybeans declined 7.3% in two weeks, the biggest since July, while corn shed more than 4% over the same period. Despite this, Dr Desianto Budi Utomo, Secretary General of the Indonesian Feed Millers Association (GPMT), told Asian Agribiz: “We don’t enjoy lower prices as our currency is still weak and we are not able to lower the price of feed.” Dr Desianto said GPMT has predicted corn imports this year may reach some 3 million tonnes, the same as last year. Animal feed production this year is estimated to grow 10% to 17 million tonnes from 15.5 million tonnes in the previous year.
|Taiwan troubled by different subtypes of AI|
[03 February 2015] Taiwan reported on January 28 more than 100 avian flu outbreaks of three different subtypes. In a report to the World Organisation for Animal Health, OIE, Taiwan officials said 108 waterfowl farms were struck by HPAI H5N8. The farms are in Changhua, Yunlin, Chiayi, and Pingtung counties and the cities of Tainan, Kaohsiung, and Taichung. Officials said 52 of the farms were also affected by HPAI H5N2 while HPAI H5N3 was reported at three goose farms in Pingtung County. Two of these were also affected by H5N2 outbreaks. Movement restrictions have been imposed at the affected farms, which will be cleaned and disinfected after culling is completed. Farms within 3km of the outbreak sites will be under surveillance for three months.
|Frozen chicken seized at Malaysia-Thai border|
[03 February 2015] Malaysian Customs officers seized 1250 boxes of frozen chicken weighing 15 tonnes, worth USD 28,000 at the Customs, Immigration and Quarantine (CIQ) complex at the Thai-Malaysia border in January. State Customs Director Abdul Latif Abdul Kadir said officers from the Import and Export Division confiscated the chicken from Thailand after finding that documents submitted was false. “The document which expired on January 2 was modified to January 22 to enable the goods to be brought into Malaysia. “The high quality frozen chicken with halal certification was headed for Kuala Lumpur,” he told reporters at the Kedah state Customs Headquarters.
|Pakistan can double broiler production in five years|
[03 February 2015] The Pakistan poultry industry has the capacity to double broiler production from 1.5 to 3 billion birds in five years, provided the government ensures an enabling business environment, said Pakistan Poultry Association Chairman, Dr Mustafa Kamal. Poultry farmers want the government to ensure 24/7 power supply to farms, most of which are located in rural areas where the load shedding duration is very long. He said this would substantially reduce the cost of electricity, as farmers are now forced to produce high cost power from diesel generators.
|Indian farmers consider return to black tiger shrimp|
[03 February 2015] India’s production of vannamei shrimp is likely to drop in 2015, as farmers face disease issues and are considering a shift to producing black tiger instead, reports Undercurrent News. Running mortality syndrome (RMS) is a problem currently faced by producers across Tamil Nadu and Andhra Pradesh – regions that represent 20% and 60% of the country’s shrimp production respectively. Mortality rates from RMS have reached 70% in most cases, with no cure at the moment. As a result, farmers are considering a reverse in the trend with a switch to black tiger farming.
|SFP launches aquaculture projects in Indonesia, China, Thailand|
[03 February 2015] The Sustainable Fisheries Partnership (SFP), with funding from the Walmart Foundation, is launching aquaculture improvement projects in Indonesia, China and Thailand. Shrimp farmers in Indonesia and Thailand and tilapia farmers in China will receive training and knowledge to help them improve their livelihood and increase collaboration to manage and improve water quality and reduce incidences of disease outbreaks. “We are proud to support SFP on this project, which combines environmental sustainability with preserving and sustaining important food sources,” said Kathleen McLaughlin, President, Walmart Foundation.
Promising developments in Indonesian meat protein
[02 February 2015]
Meat processing may record 15% growth
Despite a number of challenges, Ishana Mahisa, Chairman of Indonesia’s National Meat Processors Association (Nampa), is optimistic that the meat processing industry this year could grow at least 15% over the previous year. “Over the past three years, this industry has been growing ahead of the average growth rate of the food industry of about 10%,” he told Asian Agribiz. However, beef products will not grow significantly this year due to the secondary meat import ban. Chicken products however are predicted to grow more than 20%. “This industry can grow significantly as long as meat availability is assured,” he stressed. Nampa predicted that the total output of processed meat products in 2014 may reach some 180,000 tonnes. With a predicted growth of 15%, this year the total output may reach 200,000-215,000 tonnes.
First shipments to Japan expected in Q1
Indonesia’s poultry companies will enjoy a more favourable business environment this year with the lifting of Japan’s ban on processed-chicken imports from Indonesia. Syukur Iwantoro, Director General of Livestock and Animal Health, said the ban lasted around 10 years. The Japanese authorities have approved exports by Charoen Pokphand Indonesia, Japfa Comfeed Indonesia and Malindo Feedmill. Dr Desianto Budi Utomo, Vice President for Government Liaison of Charoen Pokphand Indonesia, told Asian Agribiz that the company is targeting for the first shipment to leave by mid-February. “This could lead to exports to other foreign countries, especially the Middle East.” Rewin Hanrahan, Malindo Feedmill Director, told Asian Agribiz that the company expects its initial exports in Q1 2015 and hopes to grab a market of 800-1200 tonnes a year with a value of USD 5 million.
2014 golden year for pig farmers
Last year was a golden year for pig farmers in Indonesia Phaithoon N Na Ayudhaya, Business Development Advisor & Swine Specialist of Charoen Pokphand Indonesia, told Asian Agribiz. “The price of live pigs reached USD 2.74 per kg for some months. With production cost around USD 2-2.1, farmers got a good profit. Farmers in Central Java gained most due to the availability of local feed ingredients like corn and rice bran and its proximity to the market in Jakarta,” he said. The high price was led by an oversupply in the two years prior which led many farmers to exit the industry. Higher demand from Jakarta, especially from the Horeca sector (hotel, restaurant, catering) helped raise prices, Mr Phaitoon added.
Pig population predicted to reach 7 million heads
Indonesia’s pig population was expected to grow by 20% in 2014 due to the high price of live pigs. Mr Phaithoon N Na Ayudhaya, Business Development Advisor & Swine Specialist of Charoen Pokphand Indonesia, told Asian Agribiz that the figure would be the same as in 2012 after which it declined 30% in 2013 due to low prices. “The standing population of pigs in Indonesia in 2014 will reach around 6-7 million heads,” he estimated. But this will only happen in production centres beyond Java as permits for expansion and is hard to obtain. Even in Bandung, West Java, pig farms are banned for social and religious reasons.”
Meat processors need 20,800t beef
Indonesia’s National Meat Processors Association (Nampa) has estimated that this year the meat processing industry will need some 20,600-20,800 tonnes of beef. Nampa Chairman Ishana Mahisa told Asian Agribiz, of this, around 2500-2700 tonnes are secondary meat like knuckle and brisket that are mainly processed into smoked beef and beef bacon. The remainder 18,100 tonnes are manufacturing meat (65-95% chemical lean) for meatballs and sausages. Early this year the Ministry of Trade issued a regulation that bans imports of secondary meat. “The ban will make meat processors and end consumers compete to get the meat and this will trigger price increases as local supply is limited,” said Mr Ishana.
Meat processors face electricity, labour problems
Fluctuating power tariffs are limiting the growth of meat processors. State-owned electricity company PLN claimed that the tariff increase is adjusted according to exchange rates and energy prices. “The tariff increase affect our total production cost. It will also limit the growth of the cold chain in Indonesia,” Ishana Mahisa, Chairman of the National Meat Processors Association, told Asian Agribiz. Labour cost is also increasing, he added. “Due to this many Nampa members this year will automate their production for better efficiency. Packaging will be their main focus as this currently entails a lot of labour.”
Indonesia targets USD5.86m revenue from fish exports
Indonesia’s Ministry of Fisheries and Maritime Affairs expects seafood exports this year to reach USD 5.86 billion or an increase of 27% from the previous year. Fish production this year is targeted to reach 24.12 million tonnes, where 6.29 million tonnes will be from capture fishery and 17.83 million from aquaculture. “Our exports are still behind other countries like Thailand and Vietnam,” said Susi Pudjiastuti, Minister of Fisheries and Maritime Affairs. According to Indroyono Susilo, Coordinating Maritime Affairs Minister, from 2015 to 2019 shrimp, tilapia and catfish will be the focus of the aquaculture program. The ministry will develop 100 integrated aquaculture centres in different regions as brood stock and feed production centres as well as for training and education. To comply with international standards, the ministry will continue to certify fish & shrimp farms and hatcheries. At the moment, there are 8200 fish & shrimp farms and 465 hatcheries that have received Good Aquaculture Practices certification.
|SMPF confirms buy out Hormel in Vietnam venture|
[30 January 2014] San Miguel Pure Foods Co Inc (SMPFCI), the food manufacturing division of Philippine conglomerate San Miguel Corp (SMC), has confirmed that it will buy out its Hormel Netherlands BV from their joint venture in Vietnam. SMPFCI said its wholly-owned unit San Miguel Purefoods International Ltd signed an agreement to acquire Hormel’s 49% stake in San Miguel Pure Foods Investment (BVI) Ltd, which is the sole investor in San Miguel Hormel (Vn) Co Ltd, which is engaged in live hog farming and the production of feeds as well as fresh and processed meats. Earlier this month, SMPFCI President Francisco Alejo III said that the company is planning to expand in Asean, with new facilities in Indonesia and Vietnam, where it already has a presence, as well as venture into new markets like Malaysia and Thailand.
|China reports more H7N9 cases |
[30 January 2014] Two new cases of H7N9 human infections in China has brought the total number of cases reported by Hong Kong's Centre for Health Protection (CHP) up to 499 so far. Both new cases are in Guangdong province, continuing the spate of cases reported from there recently. The CHP said that a number of surveillance measures have been implemented in response to the continuing cases, such as temperature checks for inbound travellers, and the public has been warned to avoid visiting poultry markets and farms, avoid crowds, wear a mask if respiratory symptoms develop, and practice careful hand washing.
|Lower oil prices to contribute to lower food prices |
[30 January 2014] The recent oil price drop will have implications for the global food supply chain, said Rabobank. “The size of the drop in oil prices combined with the already significantly lowered agri-commodities will place substantial downward pressure on global food prices, possibly reaching multi-year lows,” said Rabobank’s Clara van der Elst. The price declines of both oil and agri commodities will contribute to lower costs for food production, and in the current global macro-economic climate, Rabobank expects this will eventually lead to lower consumer food prices, with some sectors and regions benefitting from lower costs for longer, depending on the competitive settings.
|India challenges WTO panel ruling in poultry imports case|
[30 January 2014] India has challenged the World Trade Organization's (WTO) panel’s order issued on October 14 in 2014 ruling that the country’s ban on US poultry product imports was inconsistent with global norms. The appeal has been filed at the Dispute Settlement Board of the WTO. The WTO Secretariat has confirmed receipt of the notice by India announcing its decision to appeal. India banned imports of poultry products from the US in 2007 as a precautionary measure against outbreaks of avian influenza.
|Pork in South Korea is now full traceable|
[30 January 2014] Pork in South Korea is now fully traceable across the entire supply chain, according to the country’s Ministry of Agriculture, Food and Rural Affairs. Problems with an earlier pilot project, in operation since October 2012, have been addressed and all pork, from breeding to butchering, packaging and sales have been fully traceable since last December. The ministry said the reason for the focus on pork was to identify the causes of any potential issues regarding the protein and “to provide prompt measures to collect and discharge the problematic meat if and when necessary by recording information of trade stages from breeding to sales”. Consumers are now able to access information such as the location of pig breeders, the date of butchery, butchery inspection results and profiles of the packaging companies.
|HKScan to export pork to China from its Forssa plant|
[30 January 2014] China will soon receive meat from Finland’s HKScan Group. The company recently announced that its Forssa pork slaughtering plant received the thumbs up from Chinese food authorities following successful inspections last August. The company awaits export certification from China. HKScan said Russia was formerly a major export destination, so the opening of a new market in China was important in the wake of the bans imposed by Russia last January. According to the firm approximately 60% of the pork exported from Finland comes from its Forssa facility. The company is keen to export other meat products suited to local culinary preferences including poultry meat, processed meats and convenience foods.
|Gunung Sewu takes over Sierad Produce|
[29 January 2014] Indonesia’s Gunung Sewu Group, which is controlled by the Angkosubroto family, through its subsidiary Great Giant Pineapple will take over 63% of the shares of Sierad Produce, one of the largest poultry companies in Indonesia. Sierad will publish as many as 2.1 billion new shares with a total rights issue value of USD 87.2 million. Sierad's management said the three previous investors who have a stake of 41.23% namely Jade Field Assets Ltd, Harvest Agents Ltd and Kingdom Industrial Ltd will not take part in this. In agribusiness, Gunung Sewu has businesses in the field of pineapple plantation and processing, cattle feedlots, banana plantations and tapioca production.
|GFSI to promote food safety in Asean|
[29 January 2014] For the first time, the flagship food safety event of the Global Food Safety Initiative (GFSI) will be held in Asia in 2015 after 13 successful editions in Europe and North America. With many companies increasing their operations in the Asean region, the GFSI Board has decided to communicate its objectives to a wider audience in Kuala Lumpur, Malaysia from March 3-5. Under the theme “Food Safety: a Shared Responsibility”, this year’s program addresses hot topics from both global and regional (APAC) angles. More details available here.
|Challenges for India's pig industry|
[29 January 2014] Pork accounts for only 5% of India's animal protein sources mainly due to religious sentiments and cultural perceptions. A report by the International Livestock Research Institute (ILRI) said over a quarter of India’s pigs are in the North Eastern Region (NER), which is dominated by marginal backyard farmers. Sujit Kumar, country representative for Hypor in India told Asian Agribiz that the meat is sold as fresh warm meat from wet markets. Pigs are also reared in backyard and unorganised sectors in Kerala state. There are also a few organised but scattered farms in the states of West Bengal, Bihar, Karnataka, Haryana and Punjab, according to industry sources. Basic Animal Husbandry & Fisheries Statistics revealed that in 2011-2012, an estimated 11.83 million pigs were slaughtered in India, and the yield was only 39 kg/pig.
|Philippine pig producers say no need for more imports|
[29 January 2014] Reacting to a statement by the Danish Ministry of Foreign Affairs that Denmark is looking to sell its pork-based products to Southeast Asia, particularly the Philippines and Vietnam, Philippine hog raisers said they have the capability to supply the country’s requirements without having to resort to additional meat imports, a report by BusinessMirror said. The report cited Rosendo So, head of Sinag, a multisectoral group that includes hog farmers, saying additional imports and smuggling “have hurt the local meat industry.” He reiterated calls for the government to address the technical smuggling of pork, saying some unscrupulous importers either misdeclare their shipments as pork offal to pay lower tariffs. He also called on the government to provide more support to the industry to make it more competitive in the export market.
|India’s soymeal exports set to hit 26-year low|
[29 January 2014] India's soymeal exports are set to hit a 26-year low in the 2014-15 year ending March as easing of sanctions against Iran has allowed the key buyer to opt for cheaper South American supplies, industry officials said. According to the country's biggest soybean processor Ruchi Soya Industries Ltd, India's 2014-15 soymeal exports could drop to 800,000 tonnes, which is the lowest since 1988-89. Since Soymeal from India costs 5-10% more than supplies from Argentina and Brazil, top buyers of Indian soymeal such as Iran and Japan are turning away. India exported 140,400 tonnes of soymeal to Iran over April to December last year, against record shipments of 1.23 million tonnes in 2013-14.
|Nissui sells its Indonesia shrimp farms|
[29 January 2014] Japan’s Nippon Suisan Kaisha (Nissui) has sold all shares of its Indonesia shrimp farms to Trawl Fleet Preobrazhenskaya Base OAO, a Russia-based pollock catcher. The decision was made at a Nissui’s board meeting on January 22. According to the company’s announcement, Nissui will forgive all debts from PT Nippon Suisan Indonesia, a subsidiary engaged in shrimp farming that stopped operations in 2012. Trawl Fleet Preobrazhenskaya, headquartered in Primorye, has paid USD 142,000 for a total of 69.5 million shares, Nissui said.
|Positive Q1 expected for China's pig sector|
[28 January 2014] Turbulence is expected to remain with uncertainty in the global pig market in 2015 due to the possible reemergence of PEDv, the developments regarding African swine fever (ASF), the Russian ban and exchange rate developments across the globe, said Rabobank in its Pork Quarterly Q1 report. Driven by production growth after PEDv, Rabobank expects a further cooling down of markets and resulting price pressure in Q1 2015," said Albert Vernooij, Animal Protein analyst, Rabobank. China however, alongside Brazil is expected to experience a positive Q1. In China, the declining sow herd will only be partly compensated by increasing sow productivity, resulting in pressured production which will support prices.
|India to curb antibiotic use in poultry, animal feed|
[28 January 2014] The Food Safety and Standards Authority of India (FSSAI), the apex government body handling food related issues in India has issued a draft notification prohibiting the use of antibiotics as growth promoters in the poultry and animal husbandry sectors. “We have directed provincial governments to stop use of hormones as growth promoters in poultry and meat as there are known adverse effects on human and animal life,” according to an official in FSSAI. The food regulator has invited comments from stakeholders in this regard and a final notification or order will be passed accordingly.
|Big Dutchman’s buys Proline|
[28 January 2014] The Big Dutchman Group from Germany has acquired a controlling interest in Canada-based Proline Group to strengthen its position in Asia. With about 50 employees globally, Proline is a leading supplier of production technologies for the pig, poultry, and grain handling industries in Asia and Oceania. Its brands are PigPro, ChickPro and GrainPro. Proline has been present in Asia since 1991. Its regional focus, among others, lies in countries such as the Philippines, Vietnam, Australia and China.
Asian Pork Magazine, February 2014 – a sneak peek
[28 January 2014]
Thai pig industry opts for quality meat and exports
Thai pig producers realise the potential and opportunities for the sector, especially now that Russia has opened its market for Thai pork. However, challenges especially on safety issues linger. NITSARA THONGRUNG spoke with the Thai Swine Raisers Association and the Swine Producers and Processors for Exporting Association about the current situation in the Thai pig industry, its issues and concerns and the long term goal.
GreenFeed promotes good swine genetics
Stiff competition in Vietnam’s feedmilling sector has caused feedmillers to take on a broader strategy in their businesses. Foreign and local feedmillers, like GreenFeed Vietnam Corporation, have picked out genetics as the weakest link in the value chain and are ready to offer solutions, RACHAEL PHILIP writes.
Yurun boards the e-commerce train
Retail e-commerce is exploding in China. More and more people are shopping online, buying a bigger variety of products. Now young, urban, internet-savvy, social media-wired consumers are even demanding perishable food like pork meat and other meat products delivered to their doorsteps. RICH HERZFELDER writes one Chinese company is blazing the trail.
FeedPro boosts backyard pig raising
Backyard pig farmers remain the backbone of the Philippine pig industry, but many have been forced out of the business due to high production costs and inefficiencies. ISA Q TAN writes that one company is on a mission to help backyard raisers remain afloat and profitable even with the threat of a more competitive market.
Feed processing – unlocking the nutrient potential – part 2
There still exists a considerable gap between the gross-nutrient content of feedstuffs and that which can be captured by the pig writes TONY EDWARDS. In this last of a two-part series he examines the impact of particle size.
Using biomarkers to detect mycotoxin exposure in swine
For more than 30 years, scientists have worked on the development of so-called ‘biomarkers’ to link health effects and exposure to mycotoxin contamination by measuring one crucial parameter in the blood, gall or other physiological samples. CHRISTINA SCHWAB discusses what are the potentials and pitfalls for mycotoxin biomarkers.
|Indonesia bans live GGP, GP imports |
[27 January 2014] with the rise in avian influenza cases, specifically H5N8 in the US, the Netherland, Germany and Australia, Indonesia’s Ministry of Agriculture has banned the import of live GGP and GP from those countries. However imports in the form of hatching eggs are still allowed. “The measure is to prevent AI virus transfer through live DOC importation,” said Syukur Iwantoro, Director General of Livestock and Animal Health. Mr Syukur said at the moment only two GGP/GP exporting countries are still free from H5N8 namely France and New Zealand. However, he believes that the ban will not affect the number of GGP/GP imports from the US that accounts for 92% of the country’s total GGP/GP import since the bird strains are different.
|Four-day ban on slaughter in Taiwan|
[27 January 2014] With 414 farms confirmed infected with various strains of avian flu, including the new H5N2, as well as H5N8 and H5N3, Taiwan began a four-day ban on the killing of chickens, ducks and geese at slaughterhouses across the island, last Saturday until Wednesday . The agriculture council said that a total of 605,308 birds have been culled at 276 affected farms. Chen Bao-ji, head of the agriculture council, said the ban will last until Wednesday noon, during which slaughterhouses will be cleaned and disinfected.
|Brazil’s WTO move raises fears in Indonesia |
[27 January 2014] Brazil is ramping up efforts at the World Trade Organisation (WTO) to resolve a long-standing dispute with Indonesia, which has placed restrictions on the South American country’s chicken exports. Commenting on the news, Don P Utoyo, President of the Indonesian Poultry Society Federation, said the news has raised fears among industry players. “If imports of Brazilian chicken are allowed, the Indonesian poultry industry, from the upstream to the downstream, will suffer losses,” said Mr Don. He calculated that the total losses – from breeding, commercial farming, feed milling, veterinary drugs and processing – can potentially reach USD 30 billion.
|Burger King introduces double pork burger to Beijing|
[27 January 2014] Pork makes up almost two-thirds of the Chinese meat diet, but Western QSRs have not had much success putting the most popular meat onto their menus. Now Burger King is making a new effort to crack the code with its double pork burger, two grilled pork patties on a hamburger bun. The item is part of Burger King’s ‘King Value’ menu, introduced to Beijing outlets late last year. With China’s beef price at an all-time high, the pork burger also provides a lower price point for customers. Burger King’s Beijing outlets recently raised the price of its basic all-beef Whopper to USD 3.60, but for the same price you can get a set meal of double pork burger, fries and a Pepsi. A standalone pork burger is just USD 1.57.
|Vietnam seafood exports up in 2014 |
[27 January 2014] Vietnam’s seafood exports surged in 2014 with an export turnover of USD 7.9 billion, the highest in three years. This exceeded the target of the Vietnam Association of Seafood Exporters and Producers (Vasep) by USD 920 million and was an 18.4% increase on 2013. According to Asia Briefing Ltd, by end 2014, orders to its key markets slowed down, however, an increase in exports to Asean nations and China made up the shortfall. “It is worthwhile to note that the main reasons for growth were external rather than because of quality. This could prevent growth from continuing in 2015,” said the report. For 2015, Vasep has set a target of USD8 billion. “The biggest challenges will be due to the new safety standards that are expected to be implemented later this year,” said the report.
|Brunei’s Golden Corp to boost shrimp output by 2017|
[27 January 2014] Brunei-based seafood processing firm Golden Corp processes more than 60 tonnes of shrimp per month and exports them to China, Hong Kong, Taiwan, South Korea, Japan and the US. The company said it has acquired 2 million sq km of land in the Tutong district to breed organic blue shrimps and plans to increase its annual production from 1000 tonnes to 5000 tonnes by 2017. Golden Corp’s MD Richard Chuang Hsi Shan said: “There are four zones at the shrimp farm and we are hoping to get Zone A fully operational by early 2015.”
|Kambing Burja to improve pedigree recording |
[26 January 2014] With helps from the Animal Husbandry Agency of East Java province, Indonesia, Kambing Burja Farm located in Malang plans to improve its pedigree-recording program. M Alexander, owner of the Boer goat farm, told Asian Agribiz: “This is in response to demand from Malaysia. They need a supply of Boer goats for breeding, but they require a good pedigree recording to determine the quality of the bucks and does.” At the moment Mr Alexander raises more than 500 heads of Boer goat with parent stock imported from Australia. Every month he mixes around 32 tonnes of feed that consist of forage, concentrates, and premixes & feed additives from Trouw Nutrition.
|CPF shrimp unit’s recovery slower than expected|
[26 January 2014] Thai agribusiness giant Charoen Pokphand Foods (CPF) is set to report reduced losses for its shrimp unit in Q4 2014, but still above the level expected by analysts. The unit will post a USD 27.6 million operating loss for Q4 2014, shallower by 22% year-on-year, but seasonally deeper by 99% quarter-on-quarter, according to a report from brokerage Bualuang Securities. “The unit's recovery is proving weaker than we had earlier anticipated,” the brokerage noted. Bualuang Securities expects stronger numbers for the unit, from Q2 2015 through H2 2015. CPF’s shrimp operating loss should ease to USD 30.7 million for 2015, an improvement on USD 107.4 million for 2014. Bualuang Securities is basing this recovery on a greater industry-wide shrimp output of 280,000-300,000 tonnes, compared with 200,000-220,000 tonnes in 2014.
|Promising future for Indonesian poultry firms|
[26 January 2014] Indonesian poultry companies will enjoy a more favourable business environment this year with lower commodity prices and the lifting of Japan’s ban on processed chicken imports from Indonesia, according to analysts. Michael W. Setjoadi, Bahana Securities Analyst, said that lower corn and soybean prices would help offset the adverse impact of rupiah depreciation. US soybeans declined 7.3% in two weeks, the highest since July 2014, while corn shed more than 4% over the same period. In addition to the drop in commodity prices, the country’s poultry industry would likely also benefit from stabilised prices of DOC and broilers, according to UOB Kay Hian Analyst Franky Kumendong. The DOC price currently stands at around USD 0.24/chick, far better than the price in October 2014 of around USD 0.08-0.12. The average broiler price has also surged to around USD 1.36/kg from around USD 1/kg in October 2014.
Asian Agribiz Dairy update
[26 January 2015]
Amul to invest USD 814 million in processing plants
Indian dairy products giant Amul is planning to invest USD 814 million to set up around 10 milk processing plants in the next financial year in order to achieve a revenue target of about USD 8 billion by 2020. Revealing this at the India Food Forum 2015, Managing Director of Amul R S Sodhi said this includes two plants in Delhi, three in Uttar Pradesh, one each in Kolkata and Maharashtra and the rest in Gujarat. “Amul is on track to achieve annual revenue of USD 3 billion this year,” Mr Sodhi said. Amul, the dairy cooperative based in Anand district of Gujarat, formed in 1946, is a brand managed by Gujarat Co-operative Milk Marketing Federation.
Malaysia’s F&N to invest USD 9.12m in Thailand
Fraser & Neave Holdings Bhd (F&N) has set aside USD 9.12 million in capital expenditure to support the double-digit revenue growth of its Thai dairy division. Lim Yew Hoe, Chief Executive Officer, said the amount would be used to expand the company’s production capacity in Thailand by adding one tall can packaging line for evaporated milk. “We want to take advantage of the growth in the evaporated milk segment in Thailand. The expansion will support our double-digit growth from Thailand,” he told reporters after the company’s annual general meeting (AGM) in Kuala Lumpur. The capex is in addition to the USD 13.88 million allocated for maintenance of all its other operations in Malaysia and Thailand.
ITC to venture into dairy, fruit juices sectors
Indian Tobacco Company Limited (ITC) is gearing up to venture into the branded dairy and fruit juice sectors over the next few months. The company is setting up its first dairy plant in Munger district in Bihar state to manufacture value-added milk products. Chitranjan Dar, CEO of ITC Foods, said the company is developing a back-end structure to ensure an increase in milk yields and milk-processing capacity. ITC plans to invest USD 142 million in 2015, and plans to position the dairy products and fruit beverages on the health platform.
|Monsanto, Cargill to develop corn farming in Indonesia|
[23 January 2014] Under the umbrella of PISAgro, a cooperation platform between the government and private sector in Indonesia on food security, Monsanto Indonesia, Cargill Indonesia and Bank Rakyat Indonesia (BRI) have established a pilot corn farming project in Mojokerto, East Java. The project involves 50 corn farmers and a land area of 100ha. PISAgro’s role is to select eligible corn farmers, while Monsanto provides hybrid corn seeds and technical assistance. BRI offers working capital at a rate of 5.5% and Cargill will buy the harvest. Arief Susanto, Cargill Corporate Affairs Director, said the project is a good model and will help grow farmers’ skills and well-being. From the first crop in November last year, corn productivity per ha was 14% higher than the average 7 tonnes in the region. With the good result, PISAgro plans to replicate the project in other regions.
|India tightens rules for US chicken leg imports|
[23 January 2014] In an effort to protect its domestic poultry industry from cheap chicken leg imports from the US, India plans to tighten the rules. The Indian government has proposed to ban frozen chicken older than six months and poultry with hormones or fed genetically modified feed. It is expected that this new standards could offer some protection to the growing domestic poultry industry from competitively priced American chicken legs. India is preparing to contest a WTO ruling to lift the ban on US poultry imports to India and the appeal is expected to be filed within two days.
|Danish food exports to expand to Southeast Asia|
[23 January 2014] Denmark is making a push to sell its pork-based food and other products in new Southeast Asian markets to offset the negative impact of the Russian food boycott and low European food prices, its Ministry of Foreign Affairs said in a press release. “The Russian import ban hurts,” said Mogens Jensen, Minister of Trade and Development. “But we are helping to open new markets for Danish export companies particularly in Vietnam and the Philippines, which have high growth rates of 6-7% and a great demand for pork.”
Asian Feed Magazine, February/March 2014 – a sneak peek
[23 January 2014]
De Heus packs in automation in new plant
Assured of their growth in Vietnam, De Heus’ latest feedmill is a prototype of the kind of mills the company will be building in the country. Featuring high-end technology and robot arms, the Dong Nai plant requires only 50% of the workforce compared to its older plants, RACHAEL PHILIP writes.
Maharashtra Feeds races ahead with its seventh mill
India’s Maharashtra Feeds Pvt Ltd has been launching about one new mill every year since 2006. Growing demand and confidence in its products have placed the company one up above its competitors. Innovation such as toasted guar korma to be used as a replacement ingredient for soybean meal has also placed the company in good stead among its customers, RACHAEL PHILIP writes.
New developments in the precise application of enzymes post-pelleting
Post-pelleting liquid application (PPLA) of enzymes and other heat-sensitive feed additives reduces the risk associated with heat damage during the conditioning/pelleting process. HANS CHRISTOPH WAGNER reviews the advantages of using simple to install Controlled Droplet Applicator (CDA) technology for the precise and accurate application of enzymes in the post-pelleting process.
NIR: Practical applications for feedmills
IVAN WARD writes that a validated near infrared (NIR) spectroscopy platform and continual monitoring can provide reliable data to make correct decisions that can save money and ensure that feed is within specifications.
|Malindo ready to export to Japan|
[22 January 2015] Malindo Food Delight, a subsidiary of Indonesia’s Malindo Feedmill, has received the approval from the Japanese government and is now ready to export its processed chicken products like nuggets and karaage to Japan. Director Rewin Hanrahan said the approval reflects the quality of our products since we can meet the strict food standards of the Japanese market. Malindo views this as a stepping-stone to enter other foreign markets. “We are also targeting the Singapore and Middle East markets,” said Mr Rewin. With this opportunity, Malindo plans to increase the capacity utilisation of its 7000 tonnes/year further processing plant which now stands at 30%.
|Ba Huan opens processing plant in Long An|
[22 January 2015] Vietnamese poultry company Ba Huan Co Ltd has commissioned the first phase of a processing plant covering 7ha in Duc Hoa District in the southern province of Long An, costing over USD 2.8 million. Pham Thi Huan, Director, said the facility consists of a 1500-2500 bird/hour slaughterhouse and a 5-10 tonnes/day further processing line. Mr Huan said the plant will produce dressed chicken, chicken sausages, eggs, flans and other ready-to-eat chicken products for the domestic market. The plant is part of the company’s strategy to develop a closed system from farming to processing poultry to ensure food safety and hygiene.
|Industry in Bangladesh suffer losses due to blockade|
[22 January 2015] The poultry industry in Bangladesh has been badly hit by the shutdown and blockade called by Bangladesh National Party (BNP) leader Khaleda Zia. According to Chairman of the Bangladesh Poultry Industries Coordination Committee (BPICC), Moshiur Rahman, the poultry sector is facing very difficult times and has suffered losses to the tune of USD 33 million over the last two weeks due to the nonstop blockade. “We have no other option than to destroy the DOCs and eggs as we cannot ship these items on the same day,” he said adding that the farms lack storage and preservation facilities.
|Saliman Group inaugurates first further processing plant|
[22 January 2015] Saliman Group, an Indonesian poultry integrator based in Jogjakarta, recently inaugurated its first further processing plant in Sleman, Jogjakarta. Operated by its subsidiary Sera Food Indonesia, the new plant produces chicken nuggets, meatballs, spicy wings and sausages under the ‘Hato’ and ‘Ooye’ brands. Atie Raharjo, Sera Food Director, said the plant has an installed capacity of 650 tonnes/month and has halal, ISO 22000 and GMP certifications. Raw material for the plant is sourced from the group’s chicken slaughterhouse that receives supplies of live birds from its own broiler farms. Ms Atie said: “The further processing plant is our effort to integrate our business, as well as to prepare for the Asean Economic Community.”
|Poultry prices to come down by January-end in Pakistan|
[22 January 2015] The recent hike in prices of poultry products is temporary and the rates will gradually come down by the end of January, according to Dr Hassan Sarosh, Chairman of Pakistan Poultry Association (PPA). “Prices will soften as the demand-supply gap narrows due to favourable weather conditions,” he said. "The increase in price is due to the closure of poultry farms as farmers faced losses due to over-production. But now that the situation has eased farmers have come back to the industry,” Dr Hassan added.
|Philippines bans poultry from Vietnam, Italy and Holland|
[22 January 2015] The Philippines has imposed a temporary ban on imports of live poultry and poultry meat from some areas in Vietnam, Italy and the Netherlands following reports of high pathogenic avian influenza (H5 serotype) in these countries. The areas covered by the ban are Vinh Long and Tra Vinh, Vietnam; Veneto, Italy, Ter Arra, Zuid-Holland, and Kamperveen and Utrecht City, the Netherlands. Although these countries are not among the Philippines’ traditional sources of poultry meat, Agriculture Secretary Proceso Alcala noted that the bans must be in place “to prevent the entry of HPAI to protect the health of the public and the local poultry population.” The ban however, does not cover heat-treated poultry products.
|Indonesia lowers broiler GP import quota |
[21 January 2015] Indonesia’s Ministry of Agriculture has set this year’s import quota of broiler GP at 665,000 birds, compared to 720,000 birds in the previous year. Syukur Iwantoro, Director General of Livestock and Animal Health, said the quota was set after reviewing the supply and demand in 2014. “The quota was calculated based on the real demand of broiler DOC last year. Last year the production of broiler DOC reached 48 million/week, while demand was only 40 million,” explained Mr Syukur. “The decline in broiler GP import quota this year is aimed to prevent oversupply and maintain the stability of the selling price of live birds.”
|CP, Itochu to buy 20% of Citic Ltd|
[21 January 2015] Thailand’s Charoen Pokphand Group has joined hands with Japans’ Itochu Corp and agreed to pay about USD 10.4 billion for 20% of Citic Ltd, a major Chinese state-owned conglomerate. The agreement jibes with a new Chinese government policy of expanding outside investment in state firms in hopes of making them more productive and efficient. It also follows a thaw in Sino-Japanese political tensions after the Beijing APEC summit in November last year. While CP has extensive feed industry investments in China and Itochu is a major grain trader, Citic is not known for the agricultural component of its diversified investments, and the overall effect on the meat sector is likely to be small.
|Smuggled eggs from Thailand upset Myanmar market|
[21 January 2015] Poultry breeders in Myanmar fear the collapse of poultry market and the outbreak of bird flu with the continued influx of duck and chicken eggs smuggled from Thailand. More than 50,000 duck and chicken eggs were seized on December 14. In addition, the authorities seized more than 40,000 eggs in November 2014. “We are afraid of bird flu spreading through these smuggled eggs. The breeders in Thanphyuzayat faced losses as chickens from all poultry farms were culled after the last bird flu outbreak. It is difficult for a breeder to re-establish a poultry farm after the collapse,” said Nyo, a local breeder in Mawlamyine. “Chicken eggs from Thailand costs USD 0.05 in Mawlamyine. Local eggs cannot compete as the original cost is USD 0.07. The local poultry industry may face collapse in the long-run,” he said.
|No change in prices with lower fuel costs|
[21 January 2015] Following the collapse of fuel costs, Thailand’s Internal Trade Department said the prices of agricultural products may not change much. For example, pork will only see a price cut of 0.08%, eggs of 0.14% and chicken of 0.17%. The department will continue to discuss with producers and retailers about revising down some of their prices if it finds that their cost of production has dropped due to lower fuel prices. As a measure to protect consumers from unfair quotes, the department will dispatch teams of officials every week to the field to inspect prices and tags. It will also set up community markets in some areas to sell cheap products for consumers as part of the government's plans to help ease the cost of living.
|HCM City ensures meat supply for Tet |
[21 January 2015] Businesses in Ho Chi Minh City, Vietnam have completed plans to prepare goods for the Tet holiday, which falls on February 19. Van Duc Muoi, General Director of Vissan Limited Co, which processes and trades fresh and frozen meat and meat-related foods, told Vietnam News the company had prepared 46,000 pigs, 2000 cows and 4000 tonnes of processed food to serve customers, 10% more than the previous Tet. “There will be no price shock during Tet,” he said, adding that “we will slash prices sharply on days near Tet to stimulate consumption.” Many poultry and egg providers such as Ba Huan Co Ltd and Vinh Thanh Dat plan to increase supply by 10-15% for Tet.
|Fish processing plants in Sulawesi stop operations |
[21 January 2015] Eight fish processing plants in Bitung, North Sulawesi, Indonesia recently stopped their operations due to limited raw material supply resulting from the government’s ban on transhipment. Bahmi Said, Chairman of the Bitung Fish Processing Units Association, said they tried to get raw material from other regions like Kendari, Kotabaru and Muara Baru. However, the regions are also facing the same situation. “Because of this, we plan to import fresh fish from Maldives, China and India,” Mr Bahmi said. Normally fish processing plants in Bitung process around 1400 tonnes of fish per day, but due to the transhipment regulation, the production decreased by 20%.
|Nominations open for DSM Nutritional Sciences Award 2015|
[20 January 2015] Royal DSM is inviting nominations for the DSM Nutritional Sciences Award 2015 for research in the field of “Swine Nutrition“. The award, which carries a cash prize of EUR 50,000 forms part of DSM’s Bright Science Awards Program and recognises and rewards excellence in innovative research in the nutritional sciences. The theme for the Nutritional Sciences Award 2015 is ‘Optimum Swine Nutrition for Sustainable Food Production’. More information on the DSM Nutritional Sciences awards can be found at www.dsm.com/awards. The closing date for submissions is February 15, 2015.
|CAB Cakaran eyes 20% revenue growth in FY15|
[20 January 2015] Malaysia's CAB Cakaran Corporation Bhd expects to achieve more than 20% revenue growth for its financial year ending September 30, 2015 riding on its business expansion in Singapore. Christopher Chuah, Group Managing Director, said the acquisition of a 51% stake in Tong Huat Poultry Processing Factory Pte Ltd would allow the group to expand its broiler business to Singapore. “The company raked in sales of about USD 188 million last year and we expect close to USD 253 million in sales for FY15 with the Singapore business before hitting USD 281 million by FY16,” he said after the group's annual general meeting. He said the strategic acquisition had also enabled the group to expand its broiler farming activities to Johor Baharu, about 400km south from Kuala Lumpur, where it acquired a few pieces of land on which it can raise 2.2 million chickens.
|South Korea approves purchase of Thai chicken|
[20 January 2015] Thai exporters will soon have a new customer as South Korea has agreed in principle to buy Thai frozen chicken. According to Thailand’s Department of International Trade Promotion, South Korea has issued a letter to the Thai Embassy in Seoul detailing the import plan. The announcement is the fifth step out of the required 8-step procedure prior to the purchase of Thai chicken. South Korea’s decision to import Thai frozen poultry follows its ban on poultry imports from the US that was imposed in December 2014 due to the bird flu outbreak. Seoul now mainly imports poultry from Brazil.
|Indonesia reduces cattle import permit for Q1 |
[20 January 2015] After a long and anxious wait, the Indonesian Government has finally released permits for the importation of Australian cattle. Indonesia has issued 100,000 permits for the first quarter of 2015. This is about 33,000 less than in Q1 2014 and appears to have caught exporters by surprise. Ashley James, from Frontier International, said exporters were hoping for more. “It’s not as good as we hoped,” he said. “We were hoping for 150,000 to 160,000 permits because there’s been good demand from Indonesia.”
|SMEDA to prepare guidelines for meat exports|
[20 January 2015] Pakistan's Small and Medium Enterprises Development Authority (SMEDA) is preparing compliance guidelines for exporters of red meat, Chief Executive Officer of SMEDA Alamgir Chaudhry said recently at a program in Lahore. According to him, SMEDA's initiatives are aimed at promoting Pakistan's red meat industry globally. Pakistan has only a 0.44% share in the global red meat market with exports worth USD 200 million a year. “The volume can be enhanced by transforming the red meat resources of Pakistan into value-added products. But first, the industry has to meet international compliance standards,” Mr Chaudhry said.
|Indonesia to set up food estate in Kalimantan|
[20 January 2015] Indonesia’s Ministry of Agriculture is planning to build a food estate in Kalimantan. Minister of Agriculture, Andi Amran Sulaiman said the project will be started in 2016 on 500,000ha and around 50,000ha will be set aside for Bogor Agricultural University for research and development. Mr Andi added that there are plans to raise 500,000 heads of beef cattle to produce around 52,000 heads for slaughter per year, here.
Bird flu, FMD raise concerns in China, Taiwan
[19 January 2015]
Fujian poultry industry in turmoil as H7N9 kills two; Cases top 500
Poultry prices are tumbling in China’s Fujian Province following the deaths of two people from H7N9 avian flu, according to media reports. Fujian has suffered 15 confirmed human cases of the disease so far this year, according to the Xinhua News Agency, bringing China’s total to more than 500 cases and 170 deaths since 2013. China Daily reported live poultry sales have dropped more than 50% in the major port city of Xiamen, where one of the victims died, and prices are tumbling as wet markets close, restaurants stop serving and consumers avoid chicken.
More farms in Taiwan hit by H5N3 strain
Taiwan’s Council of Agriculture on January 17 announced the latest inspection results of the widening avian influenza outbreaks that hit the nation’s poultry farming sector last week. The latest statistics showed that 142 poultry farms across the nation were hit by the highly pathogenic strains consisting of the H5 subtype, of which 57 had been culled. The virus has affected a total of 222,896 birds, of which 89,806 were exterminated while the rest died from the disease, Bureau of Animal and Plant Health and Inspection Director-General, Chang Su-san said. Authorities said the new strain, H5N3, infected geese on farms in southern Taiwan. H5N8 and two versions of the H5N2 strains were identified earlier in January.
Hong Kong bans poultry imports from Japan
Hong Kong has banned the import of poultry meat and products from Okayama prefecture, Japan, in view of an outbreak of H5 avian influenza announced by the Japanese authorities, the city’s Centre for Food Safety (CFS) said on January 17. The CFS has contacted the Japanese authorities over the issue and will closely monitor information issued by the OIE on the avian influenza outbreak in the country, according to a CFS spokesman. More than 5000 tonnes of frozen and chilled poultry meat and 20 million poultry eggs were imported from Japan into Hong Kong from January to November 2014, said the spokesman.
Widespread reports of FMD in China
Porcine FMD has broken out in seven provinces covering a wide area of China, according to Chinese media reports. The disease has been reported on pig farms in Henan, Anhui, Jiangxi, Hubei, Hunan, Tianjin and Liaoning provinces. The disease is spreading due to winter weather, farmers skimping on disease control, and crowded and unsanitary conditions on some farms, according to Chinese analysts. Despite the outbreaks and the approach of Chinese New Year, wholesale pork prices have fallen in the last month, suggesting a market in oversupply.
|Buffalo meat is now India’s top agri export item|
[19 January 2015] Buffalo meat exports have overtaken those of basmati rice for the first time. According to Commerce Ministry data, India exported buffalo meat worth USD 3.22 billion in the April to November 2014 period, up over 16% from the corresponding period in 2013. Buffalo meat exports saw a phenomenal growth of 31% in quantity and 36% in value in 2014. Among the top export destinations were Vietnam, Malaysia, Egypt, Thailand and Saudi Arabia. Russia recently opened up its market for Indian buffalo meat.
|Suri Tani Pemuka ready to export pomfret to S. Korea|
[19 January 2015] Suri Tani Pemuka, a subsidiary of Japfa Indonesia involved in aquaculture, is ready to export pomfret fish to South Korea this year. Arie Prabawa from the marketing division said the company has received orders to supply the marine fish to markets in South Korea. “Per month we can supply around 25 tonnes,” he said. Suri Tani Pemuka has hatcheries for pomfret and production units with floating net cages in Bali and Banyuwangi (East Java). Mr Arie said that for export, the fish that is also known in Japan as Marukoban, is priced around USD 3.2-4.8/kg.
|Asean largest importer of Thai food, ag products|
[19 January 2015] The cross-border trade of agricultural commodities and foods between Thailand and its four neighbouring countries has grown in both value and volume thanks to the on-going regional collaboration in reducing trade barriers. According to Pisan Pongsapitch, Deputy Secretary-General of Thailand’s National Bureau of Agricultural Commodity and Food Standards, major Thai exports to Myanmar, Laos, Cambodia and Malaysia are vegetables, sugar, chicken and pork meat. Vice versa, Thailand has imported beans, corn for animal feed and shrimp from its neighbours. The combined value of bilateral trade between Thailand and those countries is worth around USD 3 billion and is expected to increase in the future.
|South Korea orders lockdown to fight FMD, bird flu|
[16 January 2015] South Korea has announced a 36-hour lockdown over this weekend on poultry and livestock farms across the country to curb the spread of two highly contagious animal diseases namely foot and mouth (FMD) and bird flu. The Agriculture Ministry said the movement of animals, people and vehicles at thousands of farms would be banned from 6am on January 17, 2015 for disinfection. A series of outbreaks of FMD in recent months have resulted in the slaughter of around 25,000 pigs, and concern has grown as cases have spread to farms close to the capital Seoul. The battle to contain FMD has coincided with outbreaks of avian flu in poultry farms that have resulted in the culling of more than 500,000 birds in the past four months.
|Chicken blood banned for use in food|
[16 January 2015] Thailand’s Livestock Development Department (LDD) has banned the use of chicken blood as an ingredient pending a probe into which food-processing plant is responsible for many cases of Vibrio parahaemolyticus infections. This bacteria causes food poisoning and is believed to have come from chicken blood. “Infections reported in Chiang Mai province have been traced to a plant in Nakhon Ratchasima province, but we have to determine which one exactly,” LDD Deputy Director General Soravit Taneeto said. He is confident that given the standards used by Thai-based plants, relevant authorities will be able to trace the origin of the bacterium. All shops selling khao man kai (chicken and oily, flavourful rice) are also encouraged to leave chicken blood out of their recipes.
|Broiler farmers urged to build slaughterhouses|
[16 January 2015] The average price of live birds in Indonesia in 2014 was only USD 1.1/kg, while the production cost ranged between USD 1.2-1.3/kg. Chairman of the Indonesian Poultry Slaughterhouses Association, Achmad Dawami said: “It’s time to change. Farmers should move from selling live birds to dressed birds.” Mr Achmad urged farmers with broiler production capacity of more than 500,000 birds/month to set up slaughterhouses and cold storage facilities. “The price of dressed birds is more stable than that of live birds. Besides, by selling dressed birds, sales of fresh warm chicken can be reduced in the interest of food safety.”
|Barramundi Asia launches fish delivery service|
[16 January 2015] Singapore-based Barramundi Asia launched its barramundi fish delivery service via its website. The model does fillet processing with an unbroken cold chain. According to the company the fish are harvested to order directly from the 7.5ha ocean farm located at the south of Singapore. After harvest, the fish are kept submerged in ice and, within hours, are filleted in a cold room and vacuum-packed. The fillets are then packed in insulated containers before reaching the consumers’ doorsteps. Currently, Barramundi Asia is offering an introductory price of about USD 37/kg, which is inclusive of delivery. Single portions are also available at USD 7.50 for 200g fillets.
|China bans all US poultry imports over AI|
[16 January 2015] China has banned all US poultry imports following reports of Avian Influenza (AI) in the US Pacific Northwest. US industry representatives immediately protested, saying the HPAI was found in wild birds hundreds and even thousands of miles from major production areas. Exporters said international guidelines call for regional bans in such cases. China has imposed regional bans in the past, but this time the Ministry of Agriculture has banned all US imports. South Korea and Thailand have also banned all US poultry imports, but most other nations have imposed only regional bans. The US was the second largest exporter of poultry products to China in the first half of 2014, just behind Brazil, shipping more than 220,000 tonnes. Analysts noted that Hong Kong has imposed only a regional ban and shipments may continue to move by the Grey channel.
Bird sanctuary shut after 40 birds found dead
[16 January 2015] The Sultanpur National Park in Gurgaon near New Delhi, India has been shut down after nearly 40 birds were found dead recently triggering fears of bird flu. “Even though the Animal Husbandry team has not found any indication of bird flu, samples have been sent to a laboratory in Bhopal to rule out the virus,” District Forest Officer K S Khatkar said. According to him, most birds that died were seed-eating birds and probably fed on seeds sprayed with pesticides. Meanwhile, around 100 poultry farms located in the vicinity have been put on alert by the Animal Husbandry Department.
|Plastic in nugget not from Cargill facilities|
[15 January 2015] Cargill announced yesterday that after an exhaustive investigation, they are confident the blue, plastic foreign material found in a McDonalds Chicken Nugget in Japan did not originate from its production facilities. The investigation included physical analysis, chemical analysis, microscopic third-party lab analysis and a step-by-step search across Cargill’s entire production facility. Chemical and physical analysis revealed that the type of plastic found in the nugget does not exist in the Cargill production plants in Thailand. “We are very confident that the plastic film in the nugget occurred outside of our production plant,” stated Chuck Warta, President, Cargill Meats Thailand.
|Nampa supports investments in intermediary industry|
[15 January 2015] Indonesia’s National Meat Processors Association (Nampa) observes that products from intermediary industry like ingredients for the meat processing industry such as sausage casings and enzymes, as well as meat processing machines in Indonesia are imported. Nampa Chairman Ishana Mahisa hopes the government could offer incentives to encourage investments in Indonesia. “Many players in the industry prefer to invest in Singapore, Malaysia and Thailand. We are ready to help and support if they want to invest here since the investments will help the meat processing industry grow faster,” Mr Ishana told Asian Agribiz.
|Trouw Nutrition opens regional hub in Bangkok |
[15 January 2015] Trouw Nutrition, a Nutreco company, officially opened its Asia Pacific regional office in Bangkok yesterday. “With the opening of this office, we will be able to provide better support to the whole region,” said Haiko Zuidhoff, General Manager Asia Pacific. The Bangkok office will offer technical support to customers in the Asia Pacific including South Asia, Southeast Asia, Japan, Australia and New Zealand. “We are global company that acts locally. We work to address specific need of customers to make sure feed and food is safe and to reduce the use of antibiotics (in feed and livestock production),” Martiin Adorf, Managing Director Feed Additives of Nutreco said. Trouw Nutrition has nine plants in the region including those in China, Indonesia and Vietnam. The company plans to officially open its new plant in Surabaya, Indonesia in July or August and the plant in Vietnam in March.
|Incentives to help processors be more competitive|
[15 January 2015] Logistics and infrastructure are key weaknesses in Indonesia’s meat processing industry said an official of the Ministry of Industry. Haris Munandar, Head of Industrial Policy Assessment, said to help players in the meat processing industry improve their competitiveness within Asean, the ministry plans to offer incentives like tax holidays or lower taxes. “We will also harmonise regulations that currently prevent players from developing their businesses.”
|Pakistan to play bigger role in meat trade|
[15 January 2015] Pakistan is on the verge of becoming an active players in the global meat trade particularly in the Middle East and Southeast Asia. According to Pakistan Bureau of Statistics, the country’s halal meat exports rose to USD 230.2 million in the 2014 financial year, an increase of 9% over 2013. About 80% of Pakistan’s meat exports go to the Middle East and Gulf countries. Pakistan ranks 22nd in the world in the export of halal meat, more than half of which is beef.
Andhra Pradesh to be marine processing hub
[15 January 2015] The Indian state of Andhra Pradesh is seeking collaboration with Australia in the aquaculture and food processing sectors. Plans are afoot to turn the state into a marine processing hub with Australia's help. Andhra Pradesh tops in brackish and fresh water shrimp production and is second in fresh water fish production and fourth in marine fish production in the country. The state government is keen on establishing fishing harbours through public-private partnerships, cold chain infrastructure, pre-processing facilities and value-added production facilities.
|Cold chain network could offer competitive edge |
[14 January 2015] Although logistics and infrastructure is one of Indonesia's weaknesses in the face of the Asean Economic Communities, meat processors believe that the industry can compete with other Asean member countries. Cimory CEO, Bambang Sutanti told Asian Agribiz that an established cold chain distribution network would offer a competitive edge. “It’s not easy for other countries to export processed meat products to Indonesia since they need to have a cold chain distribution network here. It will take time for them to develop the network, not to mention that Indonesia is an archipelagic country,” said Mr Bambang.
|San Miguel Purefoods to expand in Asean|
[14 January 2015] San Miguel Pure Foods Co Inc (SMPFCI) is taking advantage of the opportunities in the regional market by expanding in Asean. The company is set to spend between USD 178-223 million annually in the next few years to fund its expansion locally and overseas. SMPFCI President Francisco Alejo III said that the company will build new facilities in Indonesia and Vietnam, where it already has a presence, as well as venture into new markets like Malaysia and Thailand. He said SMPFCI is already exploring overseas companies for possible acquisitions and is also in talks with potential partners. In the local market, Mr Alejo said plans to put up 10 new facilities in the Philippines this year to expand its feed and further processing capacity. The expansion will help the company “take advantage of the opportunities when the market improves,” he said.
|NZ mutton exports soften|
[14 January 2015] New Zealand mutton export volumes fell 4.4% to 17,200 tonnes shipped weight in the last quarter of 2014 compared to a year earlier as demand from North Asia softened. North Asia accounted for 68% of total mutton shipments, down from 77% during the same period in 2013. As a result, New Zealand mutton export destinations were more diversified than in 2013-14, with a surge in exports to South Asia, North America and the European Union. The average per tonne value of mutton exports increased by 3.5% to USD 4194/tonne.
|Nampa seeks fair competition|
[14 January 2015] Haniwar Syarief, Executive Director of Indonesia's National Meat Processors Association has urged officials of the Ministry of Industry to help the meat processing industry with supportive regulations. “We want the government to ensure a level playing field with other Asean countries. Governments in other countries allow their processors to import and use Indian beef. Our government should also do this. We can’t compete if we use Australian beef worth USD 5.5/kg, while Indian beef is only USD 3.2/kg,” he explained.
|More H5N2 outbreaks in Taiwan|
[14 January 2015] Taiwanese authorities have reported five H5N2 avian flu outbreaks to the World Organization for Animal Health (OIE). Four involved goose farms in Yunlin County on the west coast of Taiwan, and one was at a duck farm in Pingtung County in the south. The goose flocks ranged in size from 2,640 to 7,600 birds while the duck farm houses 7,000 layer ducks. Previous media reports described an outbreak involving 120,000 chickens in Pingtung County.
|India likely to appeal against WTO ruling |
[14 January 2015] The deadline for India's appeal against the World Trade Organisation's (WTO) ruling that India’s ban on poultry imports from US is ‘inconsistent’ is drawing close. Authorities are in a delicate position as the deadline coincides with US President Barack Obama’s visit to India on the same date (January 26), to celebrate India’s Republic Day. Analysts say that an appeal is imminent as allowing US poultry imports will pose a serious threat to the domestic industry.
|Importers, feedlotters welcome Brazilian cattle|
[13 January 2015] Indonesia's revision of cattle and beef imports from country-based to zone-based rules has received positive response from importers and feedlotters in the country. Juan Permata Adoe, President Director of Bina Mentari Tunggal that is involved in cattle imports, feedlots and beef processing, told Asian Agribiz that Brazil is ready to supply feeder cattle to Indonesia. “Cattle from Brazil will help rationalise cattle supply and price in the country. So far feeder cattle are only supplied by Australia,” said Mr Juan. Besides, Indonesia has to compete with China and Vietnam for feeder cattle from Australia.
|Pig farming area will solve pollution problems|
[13 January 2015] Farmers will have much to benefit from the proposed pig farming area in Selangor, Malaysia. According to consultant Dr Chin Vei Ching, the modern farming area will solve the severe pollution problems in the Tanjung Sepat area. “With the integrated facility farmers can update their breeds and operate modern facilities, which can help them realise better productivity,” Dr Chin told Asian Agribiz. He said a dialogue with farmers proved that they are supportive of the move. He added that “the government too is eager to solve the pollution problems facing the state”. Dr Chin, a government retiree, was project director between 2004 and 2013 for the country’s first PFA in Sarawak. He said if all goes as planned the project can be completed in five years.
|Indonesia’s Ag Ministry bans secondary meat imports|
[13 January 2015] Raw material, especially beef, will still be a problem for meat processors in Indonesia this year. The Ministry of Agriculture recently issued a regulation that bans imports of secondary meat like skirt, chuck, flank, brisket and blade saying supply can be met locally. Import of primary, manufacturing and varied meat, meanwhile, is still allowed. Ishana Mahisa, Chairman of the National Meat Processors Association, told Asian Agribiz that the new regulation would hamper the growth of the meat processing and Horeca industries. “We hope the government can review the regulation since it will also affect the competitiveness of this industry in the face of the Asean Economic Community.”
|Philippines imposes more import bans|
[13 January 2015] The Philippines has imposed temporary bans on imports of FMD-susceptible animals, their products and by-products from South Korea, China and Namibia after reports of the disease in these countries. The Department of Agriculture said the ban was necessary because the country is working to maintain its FMD-free status and cannot afford to take chances. Agriculture Secretary Proceso Alcala said the country needs to ensure it remains free from the disease as this will be an “advantage for the country once the ASEAN Economic Community integrates and opens a free regional market this year.”
|Chinese bust network selling pork from dead pigs|
[13 January 2015] Chinese authorities have busted 11 gangs and arrested 110 people suspected of selling pork from pigs that died of disease, the Ministry of Public Security announced. The ministry said a criminal network had been buying dead pigs from farms at low prices and selling the meat to markets in 11 provinces, including Henan, Hunan and Guangxi. The investigation began in late 2013, and more than 1000 tonnes of suspect meat and 48 tonnes of waste oil have been seized. Regulatory personnel who issued blank safety certificates to gang members and insurance company representatives who participated in the scam are also being prosecuted, the statement said.
|Taiwan hit by H5N2 outbreak |
[13 January 2015] Taiwan has confirmed a H5N2 outbreak in chickens on a farm in Pingtung County's Xinpi Township, according to the Taiwan Central News Agency (CNA). The Pingtung Agriculture Department is culling all 120,000 chickens at the affected farm of Dawushan Livestock Products Co. Dawushan is one of the leading chicken farms in Taiwan, and eggs from the farm have been shipped and may still be available to consumers.
|PigFQC 2015 to tackle performance and profitability|
[12 January 2015] This year’s Pig Feed Quality Conference (PigFQC) by Asian Agribiz will tackle four fundamental themes which can enhance the performance and profitability of pig and feed production. The two-day conference is scheduled for April 9-10 at the New World Hotel Saigon in Ho Chi Minh City, Vietnam. Widely recognised as one of Asia’s premier scientific forums for industry professionals, the 2015 PigFQC, organised annually by Asian Pork Magazine and Asian Feed Magazine, will update participants on the latest research and provide real solutions to complex issues facing Asian pig producers. Topics will focus on four fundamentals: sow nutrition, ingredients, additives and feed manufacturing. The detailed program for this year’s conference will be available on February 1 at www.asian-agribiz.com.
|Meat processors hail Indofood-BRF JV |
[12 January 2015] The majority of meat processors in Indonesia have responded positively to the news about the joint-venture agreement between Indonesia’s largest food company Indofood and Brazilian poultry company BRF. Ishana Mahisa, Chairman of the National Meat Processors Association, said the JV could offer technology transfer and job opportunities. Juan Permata Adoe, President Director of Bina Mentari Tunggal and Vice Chairman of the Indonesian Chamber of Commerce and Industry, meanwhile said that for about 30 years the poultry industry has been ‘protected’ by the government. “The JV will trigger industry players to move on and become more efficient. And this is good for the industry,” he told Asian Agribiz.
|FMD kills 314 pigs on Chinese Farm|
[12 January 2015] Foot and mouth disease (FMD) has killed 314 pigs on a farm in central China, according to a report by The Pig Site. The report said FMD had been diagnosed in 556 animals on a farm in Ci Hu, Henan Province. Apart from the 314 that had died, a further 612 had to be destroyed. The report gave no further details. As Asian Agribiz reported in December, industry sources are saying FMD has broken out in several Chinese provinces and caused high mortalities on some farms.
|Indonesian meat processors need cheaper MDM|
[12 January 2015] Besides beef, meat processors in Indonesia are faced with the poor supply of chicken MDM (mechanically deboned meat) at a competitive price as imports are banned. Ishana Mahisa, Chairman of the National Meat Processors Association, said that the problem would weaken the competitiveness of this industry in the face of the Asean Economic Community. “Malaysia in 2012 imported around 5 million tonnes of MDM from 1.7 million tonnes in the previous year. While the Philippines reduced its Indian beef import and substituted it with MDM. The competition will not be fair if we have to compete with meat processors from other Asean member countries who use imported MDM. At the moment the price of imported MDM is around USD 0.8-1 per kg, while local MDM is around USD 1.1-1.5,” he added.
|Chinese feed companies required to buy government grain|
[12 January 2015] The Chinese government is requiring feed companies that want to import grain in 2015 to first buy grain from government reserves, according to a notice posted on industry websites in China. Chinese agricultural authorities have found themselves forced to buy local grain due to bumper crops in China. Chinese companies often prefer to buy imported wheat and corn that meets higher quality standards, can fill specialty niches and is currently 24-30% cheaper than Chinese grain on world markets. The new rule requires companies that want to import grain at the most favourable tariff rates in 2015 to buy an equivalent amount of old Chinese grain before receiving permission to import, according to a posting on oils.net.cn. An analyst at the Dim Sums blog said about half the stored wheat is poor quality and dates from 2013, and that nearly all of the corn has been stored in the open for up to three years.
|India’s oilmeal exports face steady decline|
[12 January 2015] India’s oilmeal exports have been witnessing steady decline over the last three years. After a record 5.60 million tonnes of oilmeal exports in 2011-12, its shipment fell to 4.85 million tonnes in 2012-13 and 4.33 million tonnes in 2013-14. But, 2014-15 has been the slowest in many years with overall exports at 1.42 million tonnes between April-November 2014 against 2.6 million tonnes in the corresponding period in2013. Against this backdrop, oilmeal exporters have urged the government to incentivise exports. “The government should consider higher incentives under the existing scheme on export of oilmeal,” Pravin Lunkad, President of the Solvent Extractors’ Association of India said.
|Papal visit could boost meat demand|
[09 January 2015] Philippine poultry and livestock producers are hopeful that the visit of Pope Francis to the Philippines from January 15-19, will boost demand in what is traditionally a slow period. Philippine Agriculture Undersecretary Jose Reaño had earlier said that demand for pork and chicken meat traditionally goes down during the first quarter of the year. This was confirmed to Asian Agribiz by both United Broiler Raisers Association Chairman Elias Jose Inciong and Pork Producers Federation of the Philippines President Edwin Chen. However, Mr Chen said that they are hopeful that the Pope’s visit, which is expected to bring in millions to Metro Manila will help boost demand for meat in the country’s biggest market on what is typically a “lean season”.
|Luheng Marketing to house more hens|
[09 January 2015] Luheng Marketing Sdn Bhd, a Malaysian company developing herbal-based supplements, wants to build six hen houses by end 2015 for a total of 15,000 hens. The company has been rearing 2800 regular and native spent hens, bought from local integrators, at its show farm opened last September. “When the birds arrived some had health issues, most had poor production level of about 40%. We only achieved between 300-400 eggs/day then. By mid-December we were achieving up to 1500 eggs per day,” Chow Khay Hoong, Director, told Asian Agribiz. The company is currently about to launch its brand 'Telur Kampung Free Range', or Free Range Native Chicken Eggs, and will sell them via small distributors at a premium, promoting them as antibiotic-free products, without colour additives.
|Indonesia to build fishmeal processing plants|
[09 January 2015] Indonesia’s Ministry of Fisheries and Marine Affairs this year plans to set up 10 fishmeal processing plants in fish production centres in an effort to reduce the import of fishmeal. Saut P Hutagalung, Director General of Fish Processing and Marketing, said that fishermen and aquaculture farmers would be grouped and educated to be able to run the small-scale processing plants. “With this we hope that fishmeal imports this year will reduce by 15%,” Mr Saut said.
|Soymeal exports drop by 79%|
[09 January 2015] India's soymeal exports in the first nine months of the 2014-15 fiscal has declined by 79% to 0.4 million tonnes tonnes as compared to 2 million tonnes in the same period last year, according to Soybean Processors Association of India (SOPA). Dr Davish Jain, Chairman of SOPA said that the export in December 2014 was around 0.2 million tonnes as compared to 0.47 million tonnes in the same period in the previous year. “Indian soybean meal continues to be out-priced because of higher global production in 2014 and lack of sufficient incentives to offset the higher transaction cost in India," he said. Iran, France, Indonesia and Belgium were the major importers in the April-December period.
|Pakistan’s halal meat exports appreciate|
[09 January 2015] Pakistan’s halal meat exports have grown by 9.5% to reach USD230 million in fiscal 2014, according to data released by Pakistan Bureau of Statistics. Beef constitutes more than half of Pakistan's meat exports, the rest being goat and sheep. Saudi Arabia and the United Arab Emirates are two big importers of meat from Pakistan. While nearly 88% of Pakistan's meat exports go to Gulf countries, the remaining are exported to Vietnam and Iran. Pakistan has the eighth largest cattle stock in the world and is among the world's top 10 countries for goat and sheep rearing.
|Cargill steps out of Nutreco bid|
[09 January 2015] US agribusiness giant Cargill Inc has pulled out of plans to buy Nutreco NV saying the deal is no longer attractive. In a statement issued last December Cargill said it has abandoned its plans after considering “all relevant facts including the attractiveness of Nutreco relative to alternative potential investments”. Cargill’s decision to walk away from Nutreco came after SHV, Nutreco’s largest shareholder, said that it would declare its offer unconditional if it obtained a minimum of 67% of Nutreco shares, compared with a previous target of 95%. The move was viewed by analysts as an attempt to deter Cargill from making a new bid. SHV said it already owns more than 15% of Nutreco shares.
|Producers want government to ban imports from the US|
[08 January 2015] Philippine poultry producers said the government should impose at least a selective ban on imports from the US following the confirmation of a highly pathogenic H5 strain of avian influenza in a backyard poultry flock in Washington State. United Broiler Raisers Association Chairman Elias Jose Inciong told Asian Agribiz that this is a cause of concern for the local industry, as the US is a major source of imported chicken for the Philippines. The Philippines has remained free of AI even as its neighbouring countries have had outbreaks, due to strict border control and surveillance. However the Department of Agriculture has not yet commented on whether or not it will impose a ban on US poultry.
|Indonesian farmers demand control on broiler DOC production|
[08 January 2015] Pinsar Indonesia, the Indonesian poultry farmers association, has predicted that broiler DOC production in the country might reach 64 million per week, while demand will only be around 47 million DOC, said Chairman Singgih Januratmoko. “This means that there will be a production surplus of around 17 million.” Mr Singgih noted that in 2014 the broiler industry experienced oversupply with losses of around USD 552 million. In that year broiler DOC production was 49 million/week, while demand was only 42 million. Mr Singgih said the association has raised the issue with the Minister of Agriculture. “The government should regulate broiler GPS imports to prevent production surplus to prevent another bad year,” he said.
|McDonald’s Japan investigates nuggets from Thailand|
[08 January 2015] McDonald’s Corp’s Japan business and Cargill Inc. are investigating complaints that objects were found in chicken nuggets made by a Cargill unit in Thailand, Bloomberg reported. The nuggets supplied by Cargill Meats Thailand, were sold at two outlets in Japan, including one in Tokyo. Cargill will work closely with McDonald’s as its investigation progresses. McDonald Japan is seeking new nugget suppliers including in Brazil, and doesn’t plan to halt production and sale of the food items. This case is the restaurant chain’s second food-safety crisis in six months after McDonald’s Japan had switched sources of chicken nuggets to three Thai factories, including two of Cargill’s, after a food safety scandal involving the OSI Group in China.
|Two GM soybean varieties approved|
[08 January 2015] In an encouraging sign for GMO seed developers, Chinese officials have approved two genetically-modified soybean varieties for import. DuPont Pioneer received approval for a product that produces healthier oil while controlling weeds, while Bayer received approval for its own GMO soybean variety. China also recently approved Syngenta’s MIR162 corn, which had become a major trade issue when China started turning back US corn shipments last year. Bayer’s application had been pending for seven years, and Syngenta’s for more than four.
|Naduk, Simuang identified as quarantine islands|
[08 January 2015] Indonesia’s Ministry of Agriculture plans to utilise Naduk Island in the province of Bangka Belitung archipelago and Simuang Island in Central Sulawesi province as quarantine islands for imported cattle. Banun Harpini, Head of the Agriculture Quarantine Agency, said that the presence of quarantine islands is important to prevent the possible spread of dangerous animal diseases. “Both islands have met the technical and economic aspects. Historically, there are no contagious animal diseases in both islands. In addition, feed and water sources are available in sufficient quantities,” said Mrs Banun.
|China reports another H7N9 case |
[08 January 2015] China reported its second H7N9 avian flu case this year, with both cases in Guangdong province near Hong Kong. According to Xinhua, the country's state-run news agency, the new case is in a 36-year-old man in the city of Dongguan, the same site of an H7N9 infection reported a day earlier in a 6-year-old girl. Officials in Guangdong and Hong Kong last week culled thousands of chickens after exports to Hong Kong were found to be infected with H7N9, the story said.
|Build goodwill to succeed in China: Rabobank Analyst|
[07 January 2015] Western companies hoping for success in China’s booming protein sector should pay more attention to understanding local culture and building political goodwill, according to a new report from Rabobank’s food research unit. The report, “Bulls in a China Shop, How Western Companies Can Navigate China’s Animal Protein Market,” says the protein sector has been difficult for Western companies to crack because it of its low margins and fragmented traditional supply chains, but those factors are changing as the protein industry modernises. A key for Western players is finding good local managers who can build relationships and establish trust, according to analyst Pan Chenjun. “It is better to acquire good management than to just acquire assets,” Ms Pan said in an interview with Asian Agribiz.
|Government urged to build more pig slaughterhouses|
[07 January 2015] Slaughterhouses can help produce safe and quality pork for the Indonesian market. Phaithoon N Na Ayudhaya, Business Development Advisor and Swine Specialist of Charoen Pokphand Indonesia, said standard slaughterhouses would help pig farmers in Indonesia to stay competitive in the wake of the Asean Economic Community. Therefore, Mr Phaithoon hoped the Indonesian government would build more pig slaughterhouses for the traditional slaughtermen in the country. “If the slaughtermen are gathered, the government can easily control and educate them on quality, cold chain and food safety standards.” Mr Phaithoon is encouraging investors to build standard pig slaughterhouses in Bali. “We, through PT Karya Prospek Satwa, are ready to support with finisher pigs supply and market information. We also want to produce frozen products with big cities outside Bali and eastern Indonesia as our market,” he told Asian Agribiz.
|PPA demands price control mechanism for poultry products|
[07 January 2015] Islamabad-based Pakistan Poultry Association (PPA) has stressed the need for determining the price control mechanism for poultry products in order to control any undue hike in its rates. According to Dr Hassan Sarosh, its Chairman, at present a few wholesalers in the market determine the poultry prices on their own in Islamabad and Rawalpindi. “It is against consumer rights and new price control mechanism is needed,” he said. Adding that the recent hike in poultry products is temporary, he said that the prices would soften by mid-January.
|Poultry entrepreneurs in Nepal seek friendly policy|
[07 January 2015] Poultry entrepreneurs in Nepal have urged the government to introduce policies and programs to lower production cost. In a program held in Bharatpur recently, producers said that though Nepal is self-sufficient in poultry products they cannot compete with neighbouring markets in India in terms of price as they are dependent on India for pellet feed. "The government imposes different taxes on pellet feed and this increases our production cost," Til Chandra Bhattarai, immediate past president of Nepal Chicken Entrepreneurs´ Forum said. He also urged the government to encourage farmers to cultivate maize and soybean to help reduce production cost.
|Denmark pledges support for Vietnam swine sector|
[07 January 2015] John Nielsen, the Danish Ambassador to Vietnam, said at a conference recently that Denmark would continue to support Vietnam in developing high quality pig breeding. He said Vietnam’s pig breeding sector improved significantly in recent years, but production and quality could not meet the demand, while Denmark’s enterprises could assist Vietnam with different pig varieties and equipment. Results on livestock imported from Denmark to Binh Thang and Thuy Phuong Livestock Breeding Centres showed a high genetic potential in terms of reproductive performance and growth. However, the centres also said not all the species could adapt to breeding conditions in Vietnam.
|Oman bans poultry imports from Kerala |
[07 January 2015] Oman's Minister of Agriculture and Fisheries, Dr Fuad bin Ja'far Al Sagwani has issued a ban on import of live birds, their products, their derivatives and offal from the state of Kerala, India. Apart from this, the ministry has also banned import of poultry and poultry products from the UK, the Netherlands, South Korea, North Korea and Germany. The decision was based on the recommendation of the veterinary authority due to disease issues.
Asia strengthens biosecurity against spread of avian flu
[06 January 2015]
Avian influenza (AI) remains a big hurdle in Asia. The new outbreaks and new strains in Asia and other parts of the world raised concerns in 2014 and continue to pressure the industry in 2015. The Rabobank Poultry Quarterly Q4 2014 report stated that several avian flu strains are already endemic in several parts of Asia and the region will continue to suffer from economic due to lost markets and lower local prices. In the longer term, industries need to prepare for on-going disease pressure, especially in times of bird migration and this will require higher levels of biosecurity and reconsideration of existing business models.
FAO, OIE suggest increased biosecurity
Outbreaks of the new highly pathogenic avian influenza virus H5N8 was reported in poultry in China, Japan and South Korea earlier in 2014 while countries in Europe namely Germany, the Netherlands and the United Kingdom also confirmed H5N8 on poultry farms. FAO and OIE experts said that evidence suggest that wild birds may have played a role in spreading the virus. At-risk countries are urged to step-up prevention efforts through increased biosecurity, early detection, strengthen rapid response capacities and by minimizing contact between domestic poultry and wild birds.
Thailand on alert
Thailand’s Department of Livestock Development (DLD) issued an alert to local farmers after reports of H5N8 in Europe and Japan and others strains in neighbouring countries. The OIE confirmed outbreaks of H1N1 in Cambodia and Vietnam while Laos reported a case of H5N6 in Xayaburi. H5N6 has also been confirmed in several provinces in Vietnam.
AI cases in Indonesia decline
Indonesia’s Ministry of Agriculture has said that AI in the country is showing a decreasing trend. Animal Health Director, Dr Pudjiatmoko told Asian Agribiz that from January to November 2014, there were only 326 AI cases (H5 subtype) found in native chicken, commercial layer, duck and quail. These were mainly in West Java, Central Java and Lampung. “The number of AI cases in 2014 decreased significantly compared to 470 cases in 2013 and 546 cases in 2012,” Dr Pudjiatmoko said. He added that the Participatory Disease Surveillance and Response (PDSR) team collected the cases through SMS (short message service) gateway and surveillance run by veterinary agencies. To control the virus, the ministry has released several regulations and advised farmers and industry players to strengthen biosecurity and vaccination.
H7N9 confirmed in imports from China
A handful of Chinese provinces have reported recent human H7N9 infections, and most of the patients had been exposed to poultry markets or live poultry. Hong Kong officials detected H7N9 in poultry imported from the mainland in previous waves of infection. The latest follow-up tests by Hong Kong's agriculture department on a shipment of live chickens from China's mainland revealed that the birds are infected with the H7N9 virus. After the findings, over 19,000 birds at the wholesale poultry market where the birds were kept were culled and a 21-day closure of the wholesale market was announced as well as temporary suspension of live poultry imports from the mainland. Biosecurity measures are in place before the farm that raised the infected birds is allowed to resume supplying birds to Hong Kong, and all 29 registered farms in Hong Kong will be inspected to make sure their flocks are not infected with H7N9.
Thailand kicks off preventive measures
As a preventive measure, Thailand’s DLD introduces the first integrated surveillance campaign for this year that will be implemented nationwide during from January 1-31. “This kind campaign has unremittingly been implemented twice a year but additional efforts will be carried out when there are outbreaks in neighbouring countries,” Acting Director-General of the Livestock Department Thanit Anekwit said. “Activities include searching for poultry that died of unknown causes and collecting samples of poultry in risky areas such as live poultry markets,” he said.
Several AI strains in China
Apart from H7N9, China has also faced outbreaks of several serotypes of AI. China reported outbreaks of H5N1 in Guizhou, Hubei and Yunnan; H5N2 in several provinces such as Ningxia, Hubei and Shandong; H5N3 in Hunan; H5N6 in many provinces including Sichuan, Heilongjiang, Zhejiang, Hunan, Hubei, Guangdong and Anhui; H5N8 in Liaoning. Measures applied to tackle the epidemic included stamping out, movement control inside the country, screening, and zoning, disinfection of infected premises or establishments dipping / spraying and for some case vaccination in response to the outbreaks.
Philippines remain free of AI
Since the AI virus re-emerged in 2003, the Philippines has managed to keep its poultry industry AI-free through strong coordination and collaboration between government, non-government and private groups, Dr Magdalena Cruz of the Bureau of Industry’s Philippine Animal Health Centre told Asian Agribiz. Together these groups launched a massive information drive as well as strict monitoring system that helped keep the industry updated and free of the virus. Dr Cruz also said “the infusion of funds to strengthen the government’s laboratory capacities made the difference,” noting that the country’s AI laboratory is one of the best in the Asean region. She added that the government continues to train both its lab and field personnel to keep them up to date on the disease. Meanwhile, industry players have lauded the government’s strict border control and surveillance, which has led to bans on poultry imports from AI-infected countries.
H5N1 clade 2.3 dominates AI cases in Indonesia
Although the case of AI in Indonesia is relatively under controlled since farmers conduct vaccination regularly and have strengthened biosecurity, sporadic cases of AI still happen, according to Dr Arini Nurhandayani, Sanbio Laboratories GM for Veterinary Biological Products. Her team found that H5N1 clade 2.3 dominated in many cases. The Medion team also confirmed this. Medion Technical Support, Dr Christina Lilis said the clinical signs are changing. “In the past, we found respiratory problems, but now we also find soft follicles and severe bleeding in the ovaries. In layers, the clinical sign resembles the Newcastle disease. This can lead to errors in diagnosis, so it is very important to run laboratory tests,” Dr Christina explained.
Avian influenza contained in India
The recent outbreak of AI in the southern state of Kerala has been contained with the consistent and coordinated efforts of the government. Around 17,000 ducks died in Kerala and laboratory tests revealed that the highly pathogenic H5N1 virus was the cause. As per standard protocol, about 200,000 ducks in the affected areas was culled. Duck meat is popular among the people in central districts of Kerala. Officials pointed out that though it is difficult to identify the source of virus, migratory birds might have acted as carriers. The government recently lifted the ban on transportation and consumption of poultry products including ducks after the affected areas were declared virus free.
No H7N9 AI virus in Indonesia
In order to prevent the spread of the H7N9 AI virus from China and other infected countries to Indonesia, the Ministry of Agriculture has analysed 864 samples taken from wet markets in Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi), North Sumatera and East Java. The results showed that 33.7% of the samples were positive for influenza matrix A, and 100% of the samples were negative for H7N9 virus.
Poultry market remains stable in India
The Southern Regional Disease Diagnostic Laboratory (SRDDL) has also notified that the outbreak of avian flu in Kerala is under control and is not likely to spread to any other states. Apart from the outbreak in Kerala, another outbreak of H5N1 was confirmed at Sukhna Lake, a popular tourist area in Chandigarh state, where 20 ducks died of H5N1. Health authorities culled all the 110 ducks in the lake and the entire area was sanitised. “Chicken and chicken products are safe and there has been no decline in consumption,” Ricky Thaper, Executive Committee Member of Poultry Federation of India told Asian Agribiz. While ducks in Kerala state are raised for commercial purposes, the ducks in Sukhna Lake are only for ornamental purpose.
|Jakarta to ban live poultry, pigs in the city|
[05 January 2015] For a better environment and the health status of the people living in Jakarta, Indonesia, the authorities have imposed a ban on the entry of live poultry into the city. Only fresh chilled and frozen chicken meat are allowed. Soon, the local government plans to also ban live pigs and ruminants from entry into the city “This will encourage the setting up of more pig slaughterhouses in pig production centres in Indonesia,” Alexander Kasim, General Secretary of the Indonesian Monogastric Association told Asian Agribiz. Mr Alexander, who is also owner of Adhi Farm, one of the largest pig farms in Central Java, hopes the government of Central Java responds to the news by helping pig farmers in the region set up slaughterhouses to produce frozen pork.
|China buying US grain again following GM corn approval|
[05 January 2015] Chinese buyers are ordering large shipments of US distillers’ dried grains (DDGs) following government approval of Syngenta’s MIR162 genetically modified corn, according to a Reuters report. China rejected more than one million tonnes of US corn and DDGs in 2014 because they contained MIR162 corn, which had not been approved by the government. On December 22, Syngenta announced that the variety, which farmers like because it protects against pests, had finally been approved. However, the news agency also reported that US exporters were demanding large down payments from buyers to protect themselves against possible unexpected problems with Chinese import regulations.
|Vietnam’s local authorities intensify influenza surveillance|
[05 January 2015] Vietnam’s Ministry of Health has urged all provinces and cities in the country to intensify measures against the spread of influenza viruses and diseases following reports of avian flu outbreaks in some localities, reported Vietnamplus. Earlier, the Ministry of Agriculture and Rural Development’s Animal Health Department said H5N1 was recorded in flocks in three communes of the Mekong Delta provinces of Tra Vinh and Vinh Long. Meanwhile, virus A/H5N6 affected quails in Tinh Ha commune and Son Tinh district, in the central province of Quang Ngai. The Ministry of Health urged local health departments to tighten supervision at communities and border gates and gear up for flu prevention and patient treatment.
|Malaysian farmers brace for low prices|
[05 January 2015] Chicken farmers in Malaysia are being forced to sell poultry below the controlled price of USD 1.31/kg due to a drastic drop in demand caused by the floods in the east coast. Jeffrey Ng, Federation of Livestock Farmers Association of Malaysia Secretary General, said about 3000 poultry farms nationwide were struggling to clear their ‘excess stock’ of birds. “Restaurants and eateries are essential markets for our members and since the floods, kitchens cannot operate, and the demand for poultry is very low,” he said. Yap Chau Hen, Selangor and Federal Territory Chicken and Duck Traders Association Vice-President, said some traders were selling birds for as low as USD 1.00/kg.
|Oman lifts poultry import ban from Vietnam, Nepal|
[05 January 2015] The Ministry of Agriculture and Fisheries in Oman has decided to lift the ban on importing poultry from Vietnam and Nepal. Minister of Agriculture and Fisheries Dr Fuad bin Ja'far Al Sagwani said a ministerial decision has been taken to lift the ban on importing live poultry, non-processed meat and chicken eggs from Vietnam. “Apart from this, we are also lifting the ban on importing live birds, their products, and their derivatives and offal from the Republic of Nepal,” he said. The decision to lift the ban was based on the recommendation of the veterinary authority.
|Hong Kong suspends live chicken sales|
[02 January 2015] Hong Kong has closed its live chicken wholesale market for 21 days and ordered the destruction of 15,000 birds following the discovery of chickens infected with the H7N9 bird flu virus. The virus was detected in birds imported from China, and the farm that supplied them will be banned pending results of an investigation. Only one-third of Hong Kong’s live chicken is imported, but the closure means all live sales are suspended since Hong Kong requires all live birds be sold through the wholesale market.
|MPEDA banks on genetically-improved tilapia|
[05 January 2015] Marine Products Export Development Authority (MPEDA) in India has set a target to produce around 1.2 million tonnes of genetically-improved farm tilapia fish, valued at about USD 1.2 billion in the next five years in Andhra Pradesh state. Chairman of MPEDA Leena Nair said that MPEDA is planning to organise more meetings on tilapia fish farming to enlighten farmers and said that increased production of tilapia can boost marine exports. According to her, China is the largest producer followed by Egypt and Indonesia. Production of this genetically-improved fish was 4.3 million tonnes in 2012 and is expected to reach 7.3 million tonnes by 2030.
|FLFAM extends aid to affected member farms|
[02 January 2015] Torrential rains has caused flooding in what has been called the worst floods in four decades in Malaysia. Jeffry Beh Secretary General of the Federation of Livestock Farmers Association of Malaysia (FLFAM) said it is too soon to give an assessment of the situation and to say how many farms were affected. “Right now the association is doing all it can for our members and to give them whatever assistance we can,” he said. “But demand is dropping. Today (31 December) prices at farm gate is USD 1/kg,” he said. Despite the year end festivities, consumers are eating simple food and are unable to go out and buy chicken because of the rains.
|Fast food outlets asked to ensure import of halal meat|
[02 January 2015] Punjab Food Authority in India has directed all franchised fast food outlets to ensure the use of halal meat, The Express Tribune said. “The directions were issued after the authority received several complaints that meat being imported by the food outlets was obtained through stunning,” a PFA official said. “The authority held a meeting under the supervision of its chairperson Aamer Raza Khan to discuss the issue. It was recommended that import and use of meat of stunned chicken, goat and cattle be banned.
|Poultry farmers in Japan fear avian flu pandemic|
[02 January 2015] The highly pathogenic strain of the avian influenza virus was confirmed at a poultry farm in Nagato, Yamaguchi Prefecture, following detection in Nobeoka and Miyazaki, both in Miyazaki Prefecture. The latest outbreak is the third this season, defined as October to May, and it is feared that it may develop into the first nationwide pandemic since 2010, when the virus brought about a massive plague among birds. “We have been reinforcing our sense of urgency much more than the usual year as the flu was spreading in South Korea. And now the fear is getting real,” said an official. “We’re now in a situation where a nationwide pandemic can be expected,” said Chief Cabinet Secretary Yoshihide Suga at a recent meeting among Cabinet members held at the Prime Minister's Office. He suggested the relevant bodies take all measures to deal with the situation.
|Vietnam increases efficiency and quality of dairy sector|
[02 January 2015] Vietnam’s Dairy Demonstration and Experimental Farm was officially launched in August 2013 as part of a memorandum of understanding on cooperating between Israel and Vietnam in the dairy sector. So far it has succeeded in increasing local milking efficiency and quality. Farms in Vietnam produce an average of 12l of milk per day, or 3500l/year, as opposed to the Israeli average of 13,000l/ per year. Although many dairy farmers in the Ho Chi Minh City region have been receptive to adapting changes, the process is slow and difficult, said Tran Thi Bich Nguyen, the Vice Director of the demonstration farm. It hopes to see the area’s farmers achieve 8000l per year for their milking cows.
|Avian flu surfaces in Taiwan, South Korea, Japan|
[31 December 2014] Various strains of both highly pathogenic avian influenza (HPAI) and low-pathogenicity H5 avian flu have been reported in birds in Taiwan, South Korea, Japan and Russia in recent days. The Taiwan outbreak, reported by OIE Dec 26, involves subclinical low-pathogenicity H5 avian flu in 20 ducks on a breeder farm housing 2,600 birds. In South Korea the case of avian flu is of an unspecified type and is the first case in the Seoul area this winter. In Japan, 42,000 chickens have been slaughtered on a farm in Miyazaki after confirmation of H5N8 avian flu there. It is the second outbreak of HPAI this year in Japan.
|Philippines’ inclusion in EU’s GSP+ list to benefit local tuna industry|
[31 December 2014] The Philippine tuna industry, an export winner, is expected to get a boost from the country’s inclusion in the EU’s Generalised System of Preferences Plus (GSP+) list, a report by the Philippine News Agency said. Richie Rivera, Executive Vice President of RD Group of Companies, a leading exporter, said that GSP+ would allow zero tariff entry of Philippine tuna to member states. However, he reiterated that only processed and canned tuna products caught by 100% Philippine-registered vessels would be eligible for GSP+ coverage. Industry sources said the inclusion of the Philippines in the EU GSP+ will mean an additional USD 15 million in revenue for local tuna exporters.
|Government licence ruling for meat shops, slaughterhouses|
[31 December 2014] The Food Safety and Standards Authority of India (FSSAI), under the Union Health Ministry, has announced that all meat shops and slaughterhouses should secure mandatory licences from the government to continue operations. In a notice to all food safety commissioners and secretaries of urban local bodies across the country, FSSAI said that licences from the civic bodies alone is insufficient.
|More H7N9 cases in China|
[31 December 2014] China has reported four more H7N9 avian influenza infections in the past week, three in Zhejiang province and one in a Hong Kong resident that had recently traveled to Guangdong province. Two of the Zhejiang province cases are a 57-year-old man who has been isolated and hospitalized and a 75-year-old who died from his infection. The third is a 20-year-old woman who had visited a farmers market a week before she got sick and is hospitalized in critical condition. The four new cases lift the global H7N9 total to 474 cases, according to a case list kept by FluTrackers.
|Agri dept assures enough pork, chicken supply|
[31 December 2014] Local production is enough to assure pork and chicken supply through the first quarter of 2015, Philippine Department of Agriculture Undersecretary Jose Reaño assured Filipino consumers. He noted that most retailers are selling these products at suggested retail prices (SRP), with some even selling at lower prices. He did say that price of pork belly has gone up beyond the SRP of USD 4.13/kg due in part to higher institutional demand that was affected by the port congestion and transport problems. However, supply is expected to grow and this will eventually bring down prices.
|Chinese officials dismissed due to tainted pork scandal|
[31 December 2014] China has dismissed eight officials after pork from pigs infected with a ‘highly contagious virus’ was found to have entered the market, the state media said. The country’s latest food scandal was revealed in an investigation by state broadcaster China Central Television which said the annual revenue of the tainted pork was more than USD 3.2 million. The meat had come from slaughterhouses in the city of Gaoan in central Jiangxi province and had entered at least seven provinces in total, said the report. “Some of the pigs had a highly contagious virus,” added the report, which contained grisly images inside slaughterhouses of scattered pig carcasses, many with their bellies cut.
|Processors continue reliance on imported meat |
[30 December 2014] Philippine meat processors continue to import meat as local livestock raisers prefer to sell their produce whole and live, a report by BusinessMirror said. Citing Dr Minda Manantan, National Meat Inspection Service Executive Director, the report said European countries supply most of the raw material. The Bureau of Animal Industry reported that in the first eight months of 2014, the country imported 342,470 tonnes, with pork accounting for about 157,336 tonnes. Jess Cham, President of the Meat Importers and Traders Association of the Philippines told Asian Agribiz that “local meat processors have offered to issue blanket purchase orders to local hog raisers, but nobody takes them up on it.” With the meat processing sector steadily growing, Dr Manantan said the government and local animal producers should align their production to meet the needs of local processors.
|Fast Food Indonesia to open 65 new KFC outlets |
[30 December 2014] Fast Food Indonesia, franchise holder for the KFC brand in Indonesia, plans to open 65 new outlets within and outside Java to tap into the country’s growing food retail market. Gandhi Lie, Business Development Manager, said the company would spend USD 16 million to open 45 new standalone outlets and USD 3.2 million to set up 20 KFC Box outlets. Mario B Ledres, Finance and Administration Manager, estimated that the growth would help the company reach between 10-14% sales growth in 2015, outperforming the industry growth. Fast Food Indonesia currently operates 476 outlets across the country, over 400 of which are wholly owned.
|Egg price drops with cold weather, oversupply|
[30 December 2014] Egg price in Thailand has dropped as supply has risen. Boonyarit Kalayanamit, Director-General of the Department of Internal Trade (DIT), said egg price is now at its lowest, with farmgate price of wholesale egg at USD 0.07, down from USD 0.94 earlier in the year, and it is expected to fall further. Cold weather is among the factors encouraging better output while demand for eggs has declined with the holiday season. Sources said some farms even sell their eggs at USD 0.058.
|Jakarta to invest in cattle breeding in East Nusa Tenggara|
[30 December 2014] The city administration of Jakarta, Indonesia has signed an MoU with the East Nusa Tenggara (ENT) administration to invest in cattle breeding to meet Jakarta’s demand of 150 tonnes of beef per day. According to Darjamuni, Jakarta’s Maritime Affairs and Agriculture Agency Head, the city will provide cattle for ENT farmers and develop quarantine facilities and slaughterhouses. Mr Darjamuni explained that the calves produced would be owned equally by the city administration and the cattle breeders. Mr Darjamuni said the city administration would also cooperate with city-owned firms Dharma Jaya and Pasar Jaya. “Dharma Jaya will operate the slaughterhouses while Pasar Jaya will be responsible for the distribution of the meat in Jakarta,” he said, adding that the investment could range from USD 800,000 to USD 1.6 million.
|Thai food exports forecast to reach USD33b in 2015|
[30 December 2014] Thailand’s National Food Institute (NFI) forecast that the country’s food exports would reach around USD 33 billion next year, thanks to growing economies in Asia including China and Asean countries, said President of the NFI Petch Chinabutr. For 2014, NFI estimates food exports to reach a record high of USD 30.7 billion, up 15.4% from last year and above the earlier target of USD 29.8 billion. Chicken, rice, tapioca, canned pineapple and seasoning are among export products with high growth.
|Herbal supplement helps spent hens produce quality eggs|
[29 December 2014] Luheng Marketing Sdn Bhd, a Malaysian company developing herbal-based supplements for the agriculture industry, said it is able to reverse the egg size and quality of spent hens. According to its Director Chow Khay Hoong, hens aged 70 weeks and above often produce large eggs. “But we are able to bring down the size,” he told Asian Agribiz. Luheng opened its show farm using spent hens bought from local integrator. Besides better quality eggs, the farm is also able to save about 10g in feed consumption. The herbal concoction makes the birds healthier and they tend to consume less feed, said Mr Chow.
|Vietnam exports USD 4 billion worth of shrimp in 2014|
[29 December 2014] Vietnam’s Ministry of Agriculture and Rural Development reported that its agriculture sector earned USD 30.86 billion from exports this year, a year-year increase of 11.2%. Shrimp made the largest contribution at USD 4 billion, a 28% growth over the previous year, the highest value so far. The US remains the biggest importer of Vietnamese shrimp. Meanwhile, tra fish contributed around USD 1.8 billion to the country’s total export value, a rise of 5.8% against a year earlier. It makes up 21.8% of total seafood exports. The EU and the US are leading importers of the product.
|Angel investors back food delivery service |
[29 December 2014] Angel investors have contributed USD 1.6 million to a WeChat-based food delivery start-up in China called Call a Chicken. The food delivery service based in Chengdu offers chicken-based dishes prepared by renowned chefs and cooked with fresh meat, for home delivery. According to Sina Tech, investors are buying into Call a Chicken because they believe in the business model, but they have also chosen this specific start-up to support because of China’s culinary tastes. Spicy Sichuan food – which the start-up specialises in – is a popular cuisine all over the nation, and investors believe the potential market is massive.
|Brazil may challenge Indonesian rulings|
[29 December 2014] Brazil may step up its fight at the World Trade Organisation against Indonesia’s poultry import rules after a recent consultation failed to provide a definitive answer, a trade official said. Indonesian Trade Ministry’s Director General for International Trade Cooperation, Bachrul Chairi, said Brazil might formally request the establishment of a dispute settlement panel under the remit of the global trade governing body to address its complaint. Indonesia’s rulings include requiring importers to register, granting special import licenses and tightening up examinations of inbound animal shipments.
Coming up in Asian Meat Magazines, January 2015
[29 December 2014]
Imported meat gains acceptance in varied sectors
With the rise of globalisation and freer trade, many countries in Asia have seen a spike in frozen meat imports. While a small albeit growing portion makes it onto home dining tables, the Horeca (hotels, restaurants and catering) sector takes a choice portion for its restaurants and cafes, while the further processing sector takes a large chunk for its sausages and deli products, ISA Q TAN and the ASIAN AGRIBIZ report.
Japfa parks USD 10m for Holstein feedlots in China
Demand for safe dairy products has exploded in China, and so has demand for a safe, consistent beef supply. Indonesia’s Japfa group has been a pioneer in the dairy industry, with its AustAsia subsidiary one of the first to develop large-scale Holstein dairy farms in China. Now it is leveraging its dairy operation to become a leader in beef production, too, writes RICHARD HERZFELDER.
MeatLovers keep it fresh online
Buying meat online in Singapore is no longer a novel thing. With the click of a button meat can be ordered, paid for and delivered to homes. More and more companies are offering this service via butcher shops or direct from processing plants dedicated to this type of business - meatlovers.com.sg, is one such e-commerce business offering on-time delivery, fresh products and an informative, easy-to-navigate website, RACHAEL PHILIP writes
FRESHmart sets trend with safe meat retail
A pioneer in chicken meat retail in West Kalimantan, FRESHmart is a one-stop retail outlet offering hygienically-slaughtered chicken meat in a clean and comfortable atmosphere, writes ARIEF FACHRUDIN.
|FMD detected in Chinese pig herd|
[24 December 2014] Incidents of foot and mouth disease (FMD) have broken out among pigs in several Chinese provinces, industry sources told Asian Agribiz. Mortality has been high on some farms because they are not large enough to isolate sick animals, according to one well-placed source. In November rumours of an outbreak in central Henan province surfaced in media reports, but there has been no official confirmation to date. Industry sources confirmed that cases of porcine FMD in Henan and several other provinces. China suffers frequent low-level FMD outbreaks, and it is not yet clear if the current outbreak will seriously affect production or prices.
|Japfa’s outlook rating revised to negative|
[24 December 2014] Indonesia’s credit rating agency Pefindo has revised the corporate rating outlook of Japfa Comfeed Indonesia, to negative from stable. This is in view of the weaker-than-projected capital structure and cash flow protection measures as a result of pressure on the company’s profitability margins. In the first nine months of 2014, the company’s main business segment including DOC and commercial farming reported lower-than-expected operational results. Its DOC segment reported operating loss of USD 5 million, while its commercial farming segment booked minimal operating profit at USD 755,000. In the same period last year, the operating profits of DOC and commercial farming were USD 37 million and USD 20.3 million, respectively.
|Seven H7N9 cases reported in China|
[24 December 2014] Hong Kong’s Centre for Health Protection reported seven more H7N9 avian influenza infections—four of them fatal—in three different provinces in China. The statement said four patients are from Xinjiang, two from Zhejiang, and one from Jiangsu. The four fatalities were from Xinjiang and Jiangsu.
|MPEDA aims for 1.2mt of tilapia production|
[24 December 2014] Marine Products Export Development Authority (MPEDA) in India has set a target to produce around 1.2 million tonnes of Genetically Improved Farm Tilapia fish, in the next five years in Andhra Pradesh state. Chairman of MPEDA Leena Nair said the authority is planning to organise more meetings on tilapia fish farming to enlighten farmers and said that increased production can boost marine exports. According to her, China tops the world followed by Egypt and Indonesia in Tilapia farming. Production of this genetically improved fish was 4.3 million tonne in 2012 and is expected to reach 7.3 million tonnes by 2030.
|Oman ministry bans poultry imports from Kerala |
[24 December 2014] Minister of Agriculture and Fisheries in Oman Dr Fuad bin Ja'far Al Sagwani has issued a ministerial decision to ban the import of live birds, their products, their derivatives and offal from the state of Kerala in India. Apart from this, the ministry has also banned import of poultry and poultry products from the United Kingdom, Netherlands, South Korea, North Korea and Germany. The decision was based on the recommendation of the competent veterinary authority to ban the import of live birds, their products, their derivatives and offal from some countries.
|Seafood exports reach USD 7.9 billion in 2014|
[23 December 2014] Vietnam will hit USD 7.9 billion in the value of seafood exports for 2014 due to high growth in key products. General Secretary of the Vietnam Association of Seafood Exporters and Producers, Nguyen Hoai Nam said the world market had seen recovery, and sales of seafood products has risen more than other types of food. Meanwhile, Vietnam maintained stable and high quality seafood supplies, as the nation was estimated to gain a year-on-year increase of 18% in seafood export values for this year, rising to USD 7.9 billion. The value of shrimp exports in 2014 was expected to reach 22% year-on-year, surging to USD 3.8 billion, while the value of tra fish exports would be USD 1.8 billion, he said.
|Brazil steps up dispute with Indonesia|
[23 December 2014] Brazil is ramping up efforts at the World Trade Organisation to resolve a long-standing dispute with Indonesia, which has placed restrictions on the South American country’s chicken exports. “First we notified the WTO (regarding setting up a panel to adjudicate the dispute) and in Geneva we presented our objections, more than 100, to the legislation they’re enforcing,” Ricardo Santin, Vice President of the Brazilian Animal Protein Association (ABPA) said. Indonesia imposed the trade barriers due to outbreaks of foot-and-mouth disease in Brazil and they have not been lifted even though international organisations have certified that the country is free of that viral infection. In a statement, ABPA President Francisco Turra said Brazil’s meat sector expects the panel will be set up between February and March unless Indonesia opens its market before then.
|Jeil Holdings tagged as preferred bidder for Pan Ocean|
[23 December 2014] A unit of South Korean poultry firm Harim Group said a court chose its parent’s holding company Jeil Holdings Co Ltd as the preferred bidder to buy bulk shipper Pan Ocean Co Ltd in a deal worth at least USD 771 million. Pan Ocean, South Korea’s largest bulk shipper was spun off from now-defunct shipbuilding conglomerate STX Group and entered court receivership in June last year. Harim Group, which supplies animal feed, pork and poultry products, said in a statement earlier it had turned in a binding bid for Jeil Holdings to acquire the shipper in order to enter the international grain distribution business.
|New FMD outbreak in South Korea|
[23 December 2014] South Korea has reported a new outbreak of foot and mouth disease, the first in three months. The South Korean veterinary service sent an notification to the World Organisation for Animal Health (OIE) in early December. The outbreak at a farm in North Chungcheong province (Chungcheongbuk-do) in the centre of the country claimed 30 of the 15,884 pigs on the farm. Another 574 were destroyed, reported the Cattle Site.
|Shortage of supply of fish leads to higher prices |
[23 December 2014] The monsoon season in Malaysia has led to a shortage of fish, and the repercussions are being felt in Singapore. Vendors in local markets said that the shortage of fish from Malaysia has led to an increase in prices - from an average of USD 3.03/kg to USD 5.31. Fish seller Leung Teng Foo said, “The supply has decreased by 30 % in the past few days. Fewer fishermen are heading out to fish due to strong winds and heavy rain.” The vendors believe that the Malaysian government is worried that it might not be able to meet domestic demand and is cutting down on fish exports.
Vietnamese importer sells fresh Australia beef
[23 December 2014] A Vietnamese company has started selling Australian beef and buffalo meat directly from its abattoir to local consumers in Hai Phong. Animex has imported around 75,000 head of cattle from Australia since 2012, and this year has also imported about 5000 buffalo. The company is now delivering Australian beef and buffalo meat to a handful of supermarkets around Hai Phong and Hanoi.
|Cargill Vietnam remains optimistic over local feed industry growth |
[22 December 2014] Cargill Vietnam’s Binh Dinh plant recently increased its capacity by four times, from 60,000 tonnes to 240,000 tonnes. According to Jorge Becerra, Managing Director, while the industry is relatively young it is also one of the most promising markets in the region, and this is driving the company’s optimism in Vietnam. “Vietnam has a strong and consistent GDP growth as well as a young population base, where the median age is just around 29 years, indicating that we will see continued and growing demand for animal protein. Meat consumption in Vietnam almost doubled from 16.7kg per capita in 2001 to 32.8kg per capita in 2011, and is projected to hit 35kg per capita by 2020,” he told Asian Agribiz.
|Russia approves four plants for beef imports from India|
[22 December 2014] Russia’s Rosselkhoznadzor or Federal Service for Veterinary and Phytosanitary Surveillance has included four Indian plants producing buffalo meat for imports. It is learnt from the Rosselkhoznadzor website that the announcement was made by authorities earlier this month close on the heels of Russia allowing import of buffalo meat from India. The plants are Fair Exports Pvt Ltd, Frigerio Conserva Allana Limited, Frigorifico Allana Limited and Amroon Foods Pvt Ltd. All these firms have the approval to export beef to Russia with effect from December 5 2014. Meanwhile, SKM Egg Products Export (India) Limited continues to be the only Indian exporter of egg and egg products to Russia.
|Brazil’s BRF signs JV deal with Indonesia’s Indofood|
[22 December 2014] Brazil’s top poultry processor BRF has signed a joint venture deal with Indonesia’s Indofood Suskes Makmur to invest USD 200 million in its poultry and processed foods, the company announced as quoted by Meatingplace. BRF and Indofood will each carry a 50% stake in the JV, with plans to invest roughly USD 200 million together over the next three years. The deal represents BRF’s first foray into Indonesia, a market with more than 250 million people and major growth potential. BRF said it would provide its insight into the poultry and ready foods processing business, while Indofood will contribute its market access and distribution networks.
|Thai shrimp industry has turned the corner|
[22 December 2014] Thailand’s shrimp industry is expected to recover now that the epidemic of early mortality syndrome (EMS) has eased. The Bangkok Post reported that farmers have been successful at adjusting their farming methods to curb the virus. The Thai Shrimp Association forecast Thai shrimp production would recover between 250,000-300,000 tonnes in 2015, with exports of 180,000 to 200,000 tonnes. “Prices are expected to remain stable next year as global demand for shrimp is large,” said President Somsak Paneetatyasai. He added that the industry was expected to end the year with production of only 230,000 tonnes due to EMS, with exports of only 150,000 to 160,000 tonnes. Before the disease Thailand produced 500,000 to 600,000 tonnes of shrimp annually.
|South Korea bans poultry imports from US|
[22 December 2014] South Korea has banned all imports of all poultry products including live birds, from the US following an outbreak of a highly pathogenic avian influenza at one of its chicken farms. The ban affects inbound shipments of any live birds and eggs, as well as poultry products that have not been heated over 30 minutes at a temperature of higher than 70 degrees within the past 21 days, the Ministry of Food, Agriculture, Forestry and Fisheries said. South Korea imported 62, 595 tonnes of chicken through November, more than the 44,129 tonnes for the whole of last year.
|SurePure launches commercial trials with dairy producers in India |
[22 December 2014] SurePure Inc, a global leader in liquid photo-purification, has announced that commercial trials with key dairy players in India are in progress. The commercial trial was made possible after Food Safety and Standards Authority of India gave the necessary approval for the use of SurePure’s proprietary photo-purification technology. It may be noted that this technology is an alternative to thermal pasteurisation for milk and other dairy products. “We believe that SurePure brings a cutting-edge milk processing alternative to India. The robust SurePure technology retains the integrity of milk while delivering milk in its most nutritious form to the consumers,” said Guy Kebble, CEO of SurePure.
|Philippines look at possible ham shortage over Christmas |
[19 December 2014] A new truck ban in one of the major roads in Metro Manila could lead to a shortage of ham and other meat products that are staple fare on many Filipino dining tables during the Christmas season. Mr Jess Cham, President of the Meat Importers and Traders Association Inc, said the total truck ban on Roxas Boulevard, which is used by 30% of port-related trucks, will result to delays in delivery of cargo. There will be “shortage in steak, ham and pork belly,” the cargo of many of the ships currently berthed in the Manila port. It is unlikely that these will be delivered by Christmas, Mr Cham told Asian Agribiz, adding that since the start of the year, truck bans have led to a 5-20% mark up in prices since the beginning of this year. He said prices are likely to be high in January also, since the long holidays that will begin next week will “result in another logjam.”
|Avian flu to put a damper on global poultry trade in 2015|
[19 December 2014] Global issues such as avian flu and trade restrictions will remain on the horizon for 2015 and will have a big impact on global poultry trade, a Rabobank report stated. Regions affected by avian flu outbreaks such as the EU, Canada, India and Egypt, East Asia and Mexico will continue to suffer from economic damage and temporary lost export markets. “A key concern for the coming months is the spread of avian flu, which has become a global issue in recent months. Several avian flu strains are already endemic in several parts of Asia and Mexico, and the disease is increasingly spreading globally via wild birds,” explained Rabobank’s Nan-Dirk Mulder. However, the report noted that despite the impact of the disease on international markets, margins look healthy in strong markets and especially with low feed prices. Global poultry trade prices are expected to remain stable after declines in recent quarters.
|First consignment of Thai pork bound for Russia|
[19 December 2014] Thailand’s first ever shipment of pork has left for Russia. Its Agriculture Minister Pithipong Pheungboon Na Ayutthaya said it opens doors for Thai products in the Custom Unions comprising Russia, Kazakhstan and Belarus, which is home to around 180 million people. Russia is currently keen on securing its food source from non-traditional countries following a ban by the EU and the US. The Acting Director General of the Department of Livestock Development Ayuth Harintaranon said Thailand hopes to export 60,000 tonnes of pork to Russia annually while Russia’s demand is forecast at 1 million tonnes a year. Adirek Sripratak, President and CEO of Thailand’s Charoen Pokphand Foods, said the Russian market benefits the local pig industry.
|Poultry breeding companies have to implement national standards|
[19 December 2014] Indonesia’s Ministry of Agriculture recently announced that all poultry breeding companies in the country must implement the Indonesia National Standard (SNI) in producing broiler and layer DOC. The Ministry’s Director of Livestock Breeding, Abu Bakar, said there are three criteria that have to be implemented by the companies. “By implementing the SNI, we hope national DOC standards will increase. And we also hope that there are no more complaints from farmers regarding DOC quality,” said Mr Abu adding that the directorate is committed to monitor the implementation.
|Indonesia to export poultry products to Singapore|
[19 December 2014] In a recent forum between Indonesia and Singapore, the two countries have agreed to strengthen trade in the face of Asean Economic Community 2015. Specifically for agriculture, Indonesia will have the opportunity to export its poultry products to Singapore. Emilia Yusni Harahap, Director of Agriculture Products Processing and Marketing, said: “Singapore has opened their markets to our poultry products. We believe that we can meet all their requirements on quality and food safety.” Among the items that will be exported include nuggets, sausages, yakitori and karaage, and salted eggs. “The market potential in Singapore is higher than Japan,” said Mrs Emilia, adding that three Indonesian poultry companies were recently allowed by the Japanese government to export their processed chicken products to Japan. “Singapore imports 70% of their total need of chicken meat. So this is a good market potential.”
|High Court warns of meat ban in Chennai|
[19 December 2014] The Madras High Court in the state of Tamil Nadu has warned Chennai Corp that it will impose total ban on sale of meat in Chennai if the state-of-the-art slaughterhouse is not brought into operation immediately. The Court said that it will not permit the present situation to prevail where slaughtering is done in an unhygienic manner at the local slaughterhouse “even if it means completely banning the sale of meat in Chennai”. The modern abattoir is said to be a non-starter even three years after completion of works, and the Court’s order is based on a public interest litigation filed by one K Gafoor Basha. On average 2000 goats and 500 cows are slaughtered every day to supply 20,000kg of meat.
|Philippine poultry industry looks bullish in 2015|
[18 December 2014] Things are looking up for the Philippine poultry industry, with some USD 11.2 million worth of investments to be poured in, the Philippine Department of Agriculture (DA) said. DA Undersecretary Jose Reaño said the bulk of the investments would be coming from local players, although he declined to name the investors. Some of the investors, he said, have already started the projects, most of which will be located north of Metro Manila. In addition, a foreign investor is expected to pour in more than USD 22 million for a poultry project, but Mr Reaño gave no further details. Meanwhile, a local poultry player told Asian Agribiz that although it is likely “there will be some opposition from the smaller poultry producers, they cannot stop foreign investors from coming in unless they violate Philippine laws”.
|Indonesia to reduce broiler DOC production in 2015|
[18 December 2014] Indonesian Poultry Breeders Association has predicted that broiler and layer DOC production in 2015 will record a significant increase. Its Vice Chairman, Wahyu Nugroho, said broiler DOC production this year is predicted to reach 2.2 billion DOCs, an increase of 10% from the previous year. Layer DOC production, meanwhile, is predicted to increase 30% to 159 million DOCs. However, according to Dr Desianto Budi Utomo from the Indonesian Poultry Society Federation, industry players have agreed to reduce the production of broiler DOC in 2015 by 20-30% to control the supply of broiler DOC, which had reached 55-60 million DOCs/week while demand only stood at 44-45 million/week. This oversupply situation has affected the price of live birds this year and made many small- and medium-sized farmers collapsed. Industry players hope that with supply under control, the price of live birds will escalate.
|Kerala lifts ban on poultry products|
[18 December 2014] Indian state of Kerala has lifted the ban imposed on poultry products exactly a week before Christmas. State Agriculture Minister K P Mohanan informed the assembly yesterday that the ban was imposed last month after an avian flu outbreak in 13 villages in three districts was confirmed to be due to H5N1 virus. According to him, normalcy has returned in the affected places causing the ban to be lifted. Duck meat is a major product in most Christian households during Christmas, and with the ban lifted, ducks will now be allowed to be brought in from neighbouring state of Tamil Nadu.
|Avian influenza confirmed in Chandigarh|
[18 December 2014] Avian influenza H5N1 has been confirmed in one of the 30 domesticated ducks that died in Sukhna Lake in Chandigarh, according to animal husbandry officials. According to reports, test on five of the dead ducks were carried out by the National Institute of High Security Animal Diseases in Bhopa, and avian flu was confirmed in one of the samples. Local authorities have stepped up necessary measures to contain the avian flu. The 100-plus ducks in the lake that has been isolated is expected to be culled shortly, as per the guidelines.
|Mutton takes off in northern China|
[18 December 2014] Supermarkets in China are seeing brisk trade in packaged mutton for hotpots. Wholesale market vendors in the south-westerly city of Chongqing are quoting a jump of USD 0.32-0.48/kg in freshly butchered lamb prices to an average of USD 11.30/kg with a shortage of lambs and mountain goats blamed by traders at the Xiao Long Kan market in the city. Chongqing gets its supply from herds in neighbouring Gansu province where the government is providing close to USD 200 million in subsidies to create 35 farms in three cities with advanced breeding and fodder, due to be completed end 2015.
|Tra fish export to US down due to antidumping tax|
[18 December 2014] Vietnam’s tra fish export turnover to the US was recorded at USD273.3 million in the first 10 months this year, down 16.2% over the same period last year, reported the Vietnam Association of Seafood Exporters and Producers and the General Department of Vietnam Customs. High antidumping tax rates imposed by the US have made several businesses limit the fish export to this market. Despite of a reduction in volume, average export price increased nearly 4%. The US is the second largest importer of Vietnamese tra fish after the EU, accounting for 18.7% of the total export turnover.
SPECIAL ASIAN AGRIBIZ REPORT: Pork retailing diversifies
[17 December 2014] Fresh warm pork is still the preferred choice for a majority of consumers in the region. But the last few years have seen a segment of society opting to buy meat chilled and in the comfort of modern retail outlets, especially in Southeast Asia and China. The Asian Agribiz team look at the different ways pork is now available in the region and what is fuelling the shift. (A detailed story will be published in the January 2015 issue of Asian Pork Magazine.)
Modern trade boosts acceptance of chilled, frozen pork
The increase in the number of supermarkets has given rise to the availability and acceptance of chilled and frozen pork. Pork sold in modern retail outlets now account for about 15-25% of total pork meat sales in most countries in the region. Not just in urban areas, supermarket and meat shop chains are furthering their expansion even into rural areas. Fully integrated companies like Thailand’s Charoen Pokphand Foods and Betagro, the Philippines’ San Miguel Foods Inc and Malaysia’s AA Meat Shop Sdn Bhd, to name a few, are bringing their chilled and frozen pork meat out of town, and closer to more consumers. Modern pork retail is also on the rise in China as hypermarkets, supermarkets and cold chain logistics reach into growing cities across the country and even into rural areas. With wealthier consumers demanding improved safety, nutrition and taste, the market is working to develop packaging and branding to provide premium products.
Fresher, safer alternative to warm meat
Food safety is a big factor leading to greater acceptance of frozen and chilled meat. A growing number of consumers are aware that frozen and chilled meat is safer and fresher than warm meat, because quick freezing happens immediately after slaughter, minimising and halting bacterial growth. Jess Cham, President of the Meat Importers and Traders Association in the Philippines, told Asian Agribiz that the Codex Alimentarius, a collection of internationally recognised standards for food production and food safety, defines fresh as meat that, except for refrigeration, has not been subject to any processing and still retains the quality of freshness. He added the quality of freshness includes physical qualities like texture, smell and colour among others, and microbiological qualities that define the amount of bacterial colonies per gram. “You can only control the bacterial population by keeping the meat cold,” said Mr Cham.
Premium products on the rise
Rising incomes makes for stronger demand for pork. One quick growth segment is the premium product category. In Thailand, food processing giants Charoen Pokphand Foods (CPF) and Betagro have responded to consumers’ demand, and now offer hygienic pork under their labels CP and SPure pork respectively. In addition, CPF has launched its Kurobuta pork and is now expanding its marketing channel for this top-grade meat, which is known for its softer, marbled meat traits. Meanwhile, AA Meat Shop Sdn Bhd, which operates the An Xin Healthy Meat Shoppes in Malaysia, has also introduced its Kurobuta range, which now complements its other signature brands including Pearl Pork, Free-Range Pork and HyPork. In China, meanwhile, Jingqishen offers to the high-end market what it calls Hill Black Pig, which it claims is grown for one year using no medicines or artificial growth stimulants. These products are all priced higher than ordinary pork meat.
Value-added products lure consumers
Pork producers have upped the ante by offering consumers convenience through value-added pork products. These include marinated, ready-to-cook and cooked products. They report that demand is on the upswing. Dr Robert Lo, owner of Fresh Options, one of the fastest growing meat companies in the Philippines, told Asian Agribiz that from contributing only about 5% of sales just three years ago, these value-added lines now account for about 15% of total sales. In Thailand, CPF is also selling ready-to-cook marinated pork in three flavours. “These products are a solution for consumers who want quality, convenience and delicious food,” Vittavat Tantivess, CPF’s Executive Vice President for Marketing, said adding that sales was expected to hit USD 9.13 million this year. He also said that the marinated raw meat market in Thailand is valued at around USD 54.8 million, of which CPF holds a 50% market share.
Aiming straight for consumers
Some pork producers in Malaysia have gone the direct route from farm to consumers, driving home the point they are able to manage the whole chain from feed to farm and fork, guaranteeing the safety of their products. AA Meat Shop Sdn Bhd, which operates the An Xin Healthy Meat Shoppes, gets its pork from sister company Chau Yang Farm, which by yearend will be supplying 100% of its produce to An Xin shops. The Long Farm Meat retail outlet, which opened its first outlet in 2008, is another retail outlet that is linked to pig farms. The company is currently working on developing a line of pre-packed fresh meat for greater convenience for its customers. For its part, Sanbanto Cafe and Fresh Meat, operated by Ng Beng Tee Group, takes it one step further by combining retailing with dining. The outlet sources its products from the group’s 16-year-old farm Landyork Farming.
|H5 outbreaks sicken nearly 1000 birds in Vietnam |
[17 December 2014] The Department of Animal Health in Vietnam reported three outbreaks of the highly pathogenic H5 avian influenza affecting nearly 1000 birds. The first outbreak, which began in late November in Vinh Long province, saw 160 birds die from the disease in Tra On village. The remaining 120 birds were destroyed. A second outbreak, which began early in December in the village of Cau Ke in Tra Vinh province, killed 100 of 177 susceptible birds. The remaining 77 were destroyed. The third, which also began early this month, this one in Cau Ngang in Tra Vinh, caused 500 fatal cases in birds of 750 susceptible. The remaining 250 were destroyed. The total cases numbered 987, with 760 deaths, among 1207 susceptible birds. Control measures have included stamping out and disinfecting the affected premises.
|Bird flu virus hits Japan, 4000 chicken culled|
[17 December 2014] Authorities in Japan have ordered the slaughter of some 4000 chicken after confirming bird flu virus at a farm in the southwest region of the country. DNA tests confirmed the H5 strain of the virus at a farm in Miyazaki after its owner reported more than 20 sudden deaths among his poultry. “We confirmed at least three of the chicken tested positive for the virus. The Miyazaki government has already started culling all the chicken at the farm,” a ministry official said. This is first confirmed outbreak of bird flu at a Japanese poultry farm since April. Some wild birds that were found dead in southwestern Japan tested positive last month. Authorities in Miyazaki prefecture, on Kyushu island, have locked down the affected farm and nearby farms, with the movement of chickens banned while the areas are being sanitised.
|Poultry firms see net profit plunge this year|
[17 December 2014] Analysts predict that publicly-listed poultry companies in Indonesia will end the financial year with a deflating annual income due to slumping prices on the back of DOC oversupply, a condition that is expected to continue into early next year before demands start bouncing back. Herman Koeswanto, Mandiri Sekuritas Analyst, said the last quarter of this year remained challenging for poultry firms, which he projected to book lackluster financial performance by yearend, given slow recovery in product prices. He listed four main factors in deflating the companies’ income, which are continuing oversupply in the country’s poultry market, low demands in the start of the fourth quarter, currency depreciation as well as fuel-price hikes, which lowered consumers’ purchasing power. Many listed poultry firms such as Charoen Pokphand Indonesia, Japfa Comfeed Indonesia and Malindo Feedmill recorded significant year-on-year decline in their net profit as of the third quarter of 2014.
|Anil Nutrients expands capacity with 3rd feed plant|
[17 December 2014] Speciality cattle feed manufacturer Anil Nutrients Limited, part of Anil Group has announced that it will be setting up its third manufacturing unit at an outlay of USD 110 million. Announcing this, Amol Sheth, Chairman and Managing Director of Anil Group, said this is part of the group’s plan to expand its present capacity. “We have planned to introduce new cattle feed products so that we can tap the vast potential in this segment,” Mr Amol Sheth said. According to him, investment in the third manufacturing unit will be done in a phased manner over the next three to four years. Anil Nutrients is eyeing a turnover of USD 235 million when the new facility becomes fully operational in 2020.
|Russia opens doors to milk and dairy products from India|
[17 December 2014] A week after Russia allowed import of buffalo meat from India, it has now opened doors for import of milk, cheese and other dairy products from India. Western sanctions on Russia over its role in the Ukraine crisis resulted in Russia banning fruits, vegetables, meat, fish, milk and dairy imports from the US, EU, Australia and Canada. This in turn has opened up a plethora of trade opportunities for India, which is a strategic partner with Russia. “India has the potential to export dairy items worth USD 400 million in the first year itself, and it is likely to go up multifold subsequently,” Ajay Sahai, Director-General and CEO of Federation of Indian Export Organisations, said.
|CP Indonesia helps increase poultry production in North Maluku|
[16 December 2014] Charoen Pokphand (CP) Indonesia recently conducted a broiler technical seminar in North Maluku, to help increase the productivity of farmers, said Dr Syahrir Akil, General Manager Regional Head Office, Eastern Indonesia. He said that local production of broilers and also eggs should be increased so that consumers will get fresher quality products. Dr Syahrir revealed to Asian Agribiz that each month North Maluku imports around 10 containers of frozen chicken meat (around 150 tonnes), and 3 containers of eggs (around 220,000 eggs) from Surabaya, East Java. Local production of broiler and egg per day, meanwhile, only touch 2000 birds and 4000 eggs respectively. “With a total population of around 1.2 million people and the availability of farmland, the potential of poultry production in the province is promising. We will continue to upgrade the farmers’ capacity and ensure the adequate supply of DOC and feed,” said Dr Syahrir.
|Adhi Farm to produce frozen pig semen|
[16 December 2014] Adhi Farm, one of the largest pig farms in Solo, Central Java, plans to produce frozen semen in 2015. Owner Alexander Kasim told Asian Agribiz that this year it had set up a centre for artificial insemination (AI) and prepared good quality boars to produce the frozen semen. “There are only some equipment like filler and centrifuge that should be equipped to the lab for the production,” he said. Adhi Farm has also cooperated with a professor at Bogor Agricultural University and it plans to cooperate with AI experts from the livestock AI centre in Bali to train its staffs. “The semen will be sold to pig farmers with affordable prices. We hope this initiative will help increase the genetic quality of pigs of the farmers,” Mr Alex said.
|Vietnam swine development plan sees lacklustre growth|
[16 December 2014] Vietnam’s five-year plans to increase on-farm pig inventory and total carcass weights are showing lacklustre results. In 2011 the total pig population was 27.06 million pigs nationwide, the estimated total for 2014 fell to 2.7 million, however, for 2015 the sector is expecting 27.1 million on-farm pigs. Average annual growth reached 0.04% per year, but the total is 17.88% below what was planned for the five years. The lower number versus the target is due mainly to recent poor market pig prices. Several farmers have quit or reduced inventory, many large scale farms have been affected by the reduction in the herd that takes place because of devastating diseases such as PED and PRRS. Total pork supply increased by 2.12% per year. In 2011, meat production reached 3.09 million tonnes; in 2013 it was roughly 3.22 million tonnes and is estimated to be 3.29 million tonnes for 2014. The plan is to reach 3.37 million tonnes for 2015.
|QL fails in takeover bid of Lay Hong|
[16 December 2014] After failing in a takeover bid of poultry integrator Lay Hong Bhd, as it has not received more than 50% of acceptances at the cling date of the offer last week, QL Resources Bhd said it will continue to seek other avenues to protect its interest in Lay Hong. QL Resources had only managed to secure 38.19% stake of the company by November. QL Resources said it would return all Lay Hong shares to the respective holders who had accepted its offer. “Going forward we will continue to seek avenues to protect our interest, including writing in to Lay Hong to request for boards representation especially now that QL is the single largest shareholder in Lay Hong,” Executive Director Chia Mak Hooi told StarBiz.
|SugarBun rolls out chicken fillet meals|
[16 December 2014] SugarBun, a popular quick-service restaurant in Kuching, East Malaysia, launched its latest product innovation called the Chunky Boneless Chicken Meals in conjunction with the year-end festivity and New Year celebrations. The meals consists of two pieces of crispy whole chicken fillet drizzled with specially prepared Pedas or Teriyaki sauce, served in both Asian and Western styles. Go Asian with Savoury Rice and Fresh Pickles or Western with French Fries and Coleslaw. Each meal is sold for USD 3.29 per serving. There are 55 SugarBun outlets in Kuching.
|MLA shuffles international marketing offices|
[16 December 2014] Meat and Livestock Australia (MLA) is rationalising its international marketing offices. As part of its 10% cut to the research and marketing corporation, Richard Norton, MLA Managing Director, said he’s questioning the cost of flying staff around the world. MLA will create an Asian hub, like it has done in the Middle East. The International Business Managers in Asia could see Michael Finucan, who is in South Korea, also take on responsibility for China, Hong Kong and Taiwan. Andrew Simpson, who is currently the regional manager for China, would move to Singapore, and be responsible for Southeast Asia and the sub continent, covering Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, Burma and India. The regional manager in Indonesia, John Ackerman, has resigned, and a new role will be created, focussed on technical issues affecting market access. “We’re heading in the right direction, trying to utilise the skills of their managers in trying to get a better outcome, promoting our product particularly in Southeast Asia and China.”
|Konspol builds meat processing plant in Indonesia|
[15 December 2014] Poland-based Konspol has started constructing a new poultry meat processing plant in Indonesia as part of the company’s plans to expand sales to a number of markets in Asia, said Konrad Pazgan, Chief Executive. This will also help diversify its revenue stream and expand to a market that is less competitive, but also significant in size. “By producing similar products [in Indonesia] to those that we are currently making [in Poland], we believe we will be able to increase our competitiveness. And, let us not forget, the profit margins are also much higher [in Indonesia] than in Europe,” Mr Pazgan said. Asian Agribiz noted that the company had formed a joint venture in 2012 with a local company involved in QSR chain business PT Raja Ayam. Located in Purwakarta, West Java, the investment agency of Purwakarta noted that the JV’s operations are in broiler farming and chicken processing plant.
|Shuanghui inks cold chain logistics pact|
[15 December 2014] Shuanghui Group, China’s largest meat supplier, has signed a strategic partnership with Metro Group and Da Chong Hong (DCH) Holdings to improve cold chain logistics, according to the Animal Husbandry Network. Metro Group, the German wholesale and retail chain, has built a strong distribution network to supply its network of 79 warehouse-style wholesale stores in China, while DCH Holdings has a strong retail network in southern China. The agreement will help all three companies improve their cold chain distribution networks, and increase Shuanghui’s product offerings in the two store chains.
|Vietnam responds to detection of H5N1 in chickens|
[15 December 2014] Vietnamese health authorities are implementing numerous precautionary measures after 177 chicken in a coastal province tested positive for H5N1. All affected birds were from the Cau Ke district in the Phong Thanh commune, located in the Mekong Delta province of Tra Vinh. Vietnamese health officials have set up checkpoints near the surrounding provincial districts of Cang Long, Cau Quan, Thong Hoa, and Dinh An, as well as near waterways in Tra Vinh. The Tra Vinh People's Committee is overseeing livestock and poultry vaccination, sterilisation practices on local farms and slaughterhouses, and communication to residents. Quarantine staff are monitoring poultry activity at markets, wharfs, and bus stations. Early this year a flock in the Cau Ke district was the site of one of 25 H5N1 outbreaks causing the deaths of 16,500 chicken in 12 Vietnamese communes.
|Buffalo meat export expected to swell 50% this year|
[15 December 2014] India’s buffalo meat export is expected to rise 50% over last year, with Russia opening its market after a decade. Russia’s veterinary and phytosanitary service, Rosselkhoznadzor, together with Kazakhstan’s Agriculture Ministry included Indian buffalo meat producers on the register of bodies and individuals involved in the production, processing and storage of goods transported to the territory of the customs union of Russia, Belarus and Kazakhstan. “India replaced Vietnam to emerge the world’s largest supplier of buffalo meat in global markets last year. For several years, our buffalo meat exports have been rising by 25-40% annually. This year we would surpass USD 6 billion,” said Ajai Sahai, Director General of the Federation of Indian Export Organisations. India’s export of buffalo meat was USD 4.35 billion in 2013-14, a rise of 36% from USD 3.2 billion in 2012-13.
|CAB hopes to upgrade Tong Huat into further processing plant|
[12 December 2014] Penang-based integrator CAB Cakaran Corporation Bhd hopes to conclude by April 2015 its acquisition of a 51% stake in Singapore-based slaughterhouse Tong Huat Poultry Processing Factory. “After that we hope to upgrade the plant so that it will be able to slaughter about 26,000 birds/day from its current capacity of 20,000 birds/day,” Chris Chuah, Group Managing Director, told Asian Agribiz. “We plan to install machines to cook and marinade products for the F&B service industry such as fast food chains, hotels and restaurants,” he added. Currently the plant only slaughters and sells dressed birds to the Singapore market. It does not make any value-added products. CAB Cakaran hopes the plant, after its renovation works, will produce value-added products by end 2015.
|Cambodia closer to importing cattle from Australia|
[15 December 2014] The Australian and Cambodian governments moved closer to a live cattle trade deal this week after meeting in Phnom Penh to discuss details of the agreement. Health standards were a priority for completion of the agreement, Australia’s Northern Territory Minister for Primary Industry, Willem Westra van Holthe, said. He said Australian and Northern Territory authorities will work closely with existing feedlots and abattoirs to bring them to ESCAS standards. “This ensures that animal welfare standards are met and maintained as the basis for a sustainable trade in live cattle.” Australia’s ESCAS, or Exporter Supply Chain Assurance System, details the sanitary requirements and animal treatment obligations at slaughterhouses and export facilities. With assistance from Australian authorities, Mr van Holthe expects that Cambodia’s facilities will be up to standard and begin receiving live cattle for slaughter next year.
|Hog raisers doubtful of exports|
[12 December 2014] Philippine hog raisers are doubtful that the country will be able to export pork products soon. Commenting on a statement made by Amalia Jayag-Datukan, the Department of Agriculture (DA) Region 12 Executive Director, that pork exports from the region will “hopefully materialise soon”, and that the DA head office has been negotiating with stakeholders and players in potential markets, Chester Warren Tan, President of the South Cotabato Swine Producers Association, told Asian-Agribiz that his group “has great reservations” that it will happen. “We have had the Triple A abattoir here in General Santos since 2007 and several DA administrations have come and gone but nothing yet has happened.” In 2008, a local producer has been approved by the Singapore Agri-Food and Veterinary Authority to ship pork to the city state, but the DA halted the shipment samples from some pigs from Northern Philippines tested positive for the Ebola Reston virus.
|Cargill eyes Indonesian poultry sector|
[12 December 2014] Cargill Inc may invest USD 1 billion in Indonesia over the next three to four years, with a focus on entering the poultry sector and expanding its palm business, David MacLennan, CEO said. Cargill, which already has a presence in Indonesian palm oil, cocoa and animal feed sectors, sees great potential in the country’s poultry industry. “Japan is looking closely at Indonesian chicken and part of it is to replace volume that has fallen off from China through various industry issues that China has had,” Mr MacLennan said. “Indonesia is one of the top opportunities for Cargill in Southeast Asia. When the economy is healthy and growing, people want to eat better. We are interested in the poultry industry as a way to expand. The industry we are looking at, I think, is the perfect industry at the perfect time for Indonesia,” he explained.
|Indonesian beef cattle importers look to Brazil|
[12 December 2014] As Australian cattle exporters look to expand their market options via the imminent opening of trade to China, its customers in Indonesia, Australia’s largest export market, are also seeking to diversify their supply sources. Several members of Indonesia’s cattle importing and lot feeding industry recently travelled to Brazil to meet with cattle exporters and government officials. Buntoro Hasan from the TUM importing and feeding lot company said the Indonesian delegation found the Brazilian industry to be very advanced, with cattle of good genetic quality run on well-managed pastures. “While there is an issue with long logistic haul, they believe given the price of live cattle in Brazil, they can still remain competitive in the Indonesian market.”
|Mega dairy proposed in Karnataka|
[12 December 2014] A mega dairy or factory farm has been proposed in the Indian state of Karnataka by Karnataka Cooperative Milk Producers' Federation Limited (KMF). P Nagaraju, KMF President, said recently that the mega dairy proposed at Dharwad district in Karnataka would cost an estimated USD 16 million. Apart from this, KMF also has plans to set up a dairy unit and a Calf Nurturing Centre in different areas in the state. The mega dairy is aimed at exploiting the thriving dairy farming in North Karnataka region, according to Mr Nagaraju.
|Mekong Delta reports H5N1 bird flu outbreak|
[11 December 2014] A total of 177 chicken in Mekong Delta province of Tra Vinh have tested positive for H5N1 strain of avian influenza, Vietnam News Agency reported. The Provincial Department of Agriculture and Rural Development said the birds were in Phong Thanh commune, Cau Ke district. Tra Vinh People’s Committee has instructed all relevant agencies to step up prevention measures including vaccinating livestock and poultry against flu strains, sterilising farms and abattoirs, and alerting residents about the outbreak. Agencies have been told to set up checkpoints along waterways and roads traversing flu-hit communes, and localities near other provinces such as Cang Long, Cau Quan, Thong Hoa and Dinh An. Quarantine staff members have been dispatched to markets, wharfs and bus stations to monitor livestock and fowl trade and transport. In the first quarter of this year, Tra Vinh recorded 25 cases of avian influenza in 12 communes which killed 16,500 chicken.
|Japfa Indonesia allocates USD146m for 2015 capex|
[11 December 2014] Japfa Comfeed Indonesia has allocated around USD 146 million for its 2015 capital expenditure that will be used to increase production capacity. Unused 2014 capex of around USD 40.5 million will also be allocated for 2015. Vice President Director Putut Djagiri said that of the capex the company will use USD 24.3 million to increase its animal (poultry) feed production capacity and USD 90 million for the expansion of its two aqua feed plants and a freshwater fish processing plant. Some USD 48.6 million and USD 8 million will be used for the development of breeding farm and commercial broiler farm, respectively. Japfa will also finalise the acquisition of two cattle stations in Australia namely Riveren and Inverway through subsidiary Japfa Santori. “The margin in the beef cattle business is very good. We are confident that the two stations can contribute positively to our beef business,” Mr Putut said.
|Appeal against WTO ruling on US poultry items likely|
[11 December 2014] India is likely to appeal against the ruling by World Trade Organisation (WTO) that termed India’s ban on poultry imports from US as inconsistent with Sanitary and Phytosanitary Measures (SPS). The dispute settlement body of WTO passed an order to this effect on October 14 this year. Officials in the Ministry of Commerce hinted that an appeal will be filed at the WTO Appellate Body soon. It may be recalled that the ban on poultry imports from US was imposed earlier because of concerns related to avian influenza. The poultry industry in India is against lifting the ban but lifting the ban means more than USD 300 million in business for poultry industry in US.
|More meat producers in China eyeing export opportunities in Russia|
[11 December 2014] Five more Chinese companies have filed requests with China’s General Administration of Quality Supervision, Inspection and Quarantine to export meat products to Russia. The five companies are Shunxin Agriculture Co in Beijing, Linyi Xincheng Jinluo Meat Products Group Co in Hunan, the Delisi in Shangdong, China Yurun Group in Jiangsu and Sichuan Gaijin Food Co in Sichuan. Pork imports by Russia from China have resumed for the first time since 2004. China is set to increase the number of pork suppliers to the Russian market to 10 companies. Currently, only two Chinese enterprises, WH Group and Beidahuang, are allowed to export meat to Russia. The WH Group has already exported at least 3000 tonnes of frozen meat from its Heilongjiang Province subsidiaries to Russia.
|Asia, steady recovery in shrimp production projected|
[11 December 2014] The 2014 Global Aquaculture Alliance survey of production trends in shrimp farming polled 33 respondents from Asia and the Oceania shrimp producers. Asian production fell 21% in 2013 to around 2.7 million tonnes, with the most substantial declines taking place in China and Thailand. Although production in China is expected to recover this year from 1.1 to 1.2 million tonnes, output in Thailand is expected to decline even further to 200,000 million tonnes, with an eventual partial recovery in 2015. Production in Vietnam, Indonesia and India is expected to increase steadily between 2013 and 2016, with Vietnam and India achieving double-digit growth rates. By 2016, Vietnam, Indonesia, India and Bangladesh are expected to reach 590,000; 450,000; 395,000 and 107,000 million tonnes, respectively, in production. Thailand could drop from second to fifth place in the region, producing 328,000 million tonnes in 2016. Output in China is expected to reach 1.3 million tonnes in 2016, 16% below the record quantities achieved in 2011. These forecasts assume that impacts from diseases are reduced to manageable levels.
|Korea-Australia FTA comes into effect tomorrow|
[11 December 2014] The Australian Dairy Industry Council (ADIC) in a press release has welcomed the confirmation that the Korea-Australia free trade agreement (KAFTA) will come into effect tomorrow, as a positive step toward improved trade liberalisation with Asia. Once entry into force occurs, Australian dairy exporters will experience the first year of tariff reductions for dairy exports to Korea as agreed under the agreement. This will be followed by a further reduction in tariffs on January 1 2015. “Korea is a significant dairy market for Australia, and currently ranks 12th by value with USD 92 million worth of exports in 2013/14,” Noel Campbell, ADIC Chairman, said.
|Forbes includes Japfa CEO as Indonesia’s 50 richest|
[11 December 2014] In its latest Indonesia’s 50 Richest, Forbes included CEO of Japfa Group Handojo Santosa at number 49 with net worth USD 555 million. Mr Handojo received his Bachelor of Arts/Science from Pepperdine University in the US. He listed his holding company, Japfa Ltd, in Singapore in August this year. Japfa’s main revenue generator is a poultry business in Indonesia. The company makes 3.5 million tonnes of animal feed. It also has six dairy farms – five in China and one in Indonesia – with more than 45,000 cows.
ASIAN AGRIBIZ REGIONAL DAIRY UPDATE
[10 December 2014]
India’s Mother Dairy to enter southern region market
After test marketing its products for almost two years in southern parts of the country, New Delhi-based Mother Dairy will formally launch its dairy products in Chennai next month. The company that is currently growing at a CAGR of 20%, is also eyeing a USD 1.2 billion dairy business by 2017. “We are looking at Chennai market very closely. It offers huge potential. In a month or so, we will launch products in Chennai,” Sandeep Ghosh, Business Head, said. Mother Diary, a wholly-owned subsidiary of National Dairy Development Board, is also aiming to expand its outlets in the country. The company plans to set up 6000 outlets in Chennai, Bangalore and Hyderabad in six months. “We will be looking at 15-20% of business from southern region.” Mr Ghosh identified Chennai, Bangalore and Hyderabad as its markets in the southern region.
Indofood takes over Danone’s local dairy unit
Indofood’s consumer goods firm Indofood CBP Sukses Makmur has acquired the entire stake of Danone’s dairy produce subsidiary in an attempt to boost its own dairy output. Indofood revealed that the company, through its dairy subsidiary Indolakto, inked recently a sales and purchase agreement with Danone Dairy Investments Indonesia Pte Ltd and Danone Asia Pte Ltd to obtain 100% stake of liquid milk producer Danone Dairy Indonesia. “The transaction will be carried out with a price set at USD 20.53 million, in accordance to price adjustment mechanism as conditioned in the sales and purchase agreement,” the company said. “The transaction is aimed at increasing our production capacity to meet demand for dairy products in the western part of Indonesia, as well as strengthening our company’s position in Indonesia’s dairy industry.”
Yili pumps in USD327m into New Zealand production base
According to a press release, Chinese dairy company Yili has made a second investment into the dairy production base it acquired in late 2012. The company has added around USD 327 million to an initial investment of USD 196 million it made in the site located in Waimate on New Zealand’s South Island. The facility, which covers packaging, production, processing and r&d is the largest integrated dairy production base in the world, according to Yili. It is reported that the new investment will be used in four parts, including a raw milk deep-processing project, a UHT liquid milk project, a milk powder production facility and a packaging facility. The project hopes to make better use of the advantages of New Zealand’s raw milk costs.
Vinamilk to implement cow breeding project in Tay Ninh
Vinamilk will start a project to raise 8000 dairy cows in the southern province of Tay Ninh next year. The company will import 2500 cows early 2015 and the rest by end 2016. The project covering 685ha aims to produce 35 million litres of milk per year. Vinamilk announced plans to build a processing plant in Tay Ninh to reduce costs and provide jobs for locals.
Fonterra may slash milk payment by 20%
Fonterra may cut its forecast milk payout by a fifth this week with dwindling prospects that the price of whole milk powder will recover enough to support its current estimate. Whole milk powder (WMP) sold at USD 2229 a tonne in last week’s GlobalDairyTrade auction and would need to surge 57% by March to reach the USD 3500 a tonne level that Theo Spierings, Fonterra Chief Executive, has said the current forecast payout of USD 5.30 a kg of milk solids is predicated on. “No one seems to be as optimistic as Fonterra,” said AgriHQ dairy analyst Susan Kilsby. “The things that drive WMP prices are supply out of New Zealand, the biggest producer, and demand in China, and as yet there’s no solid pickup in demand from China."
|14th GoGo Frank outlet opens in Singapore|
[10 December 2014] Carona Holdings Pte Ltd opened its 14th GoGo Franks kiosk at Habourfront Cruise, Singapore. The 200sq ft space expects to sell 50kg of sausages at the ferry terminal on weekends. GoGo Franks sells halal chicken sausages in a number of renditions. GoGo or Gourmet-on-the-Go Franks offers an assortment of ‘Asian tasting sausages’ such as the black pepper, satay, cheese, char siew, mushroom and chilli, and sausage balls. “We are the only sausage retailer in Singapore with a 10-year success,” Jean Lee, Managing Director, told Asian Agribiz. “Our prices are high and so is the quality of our products. We sell sausages made from lean meat and our sausages are low in salt,” she said, attributing their success to focus on quality and taste.
|Adhi Farm eyes pig farming in Central Kalimantan|
[10 December 2014] Adhi Farm, one of the largest pig farms in Solo, Central Java, is currently eyeing the potential of pig farming in Central Kalimantan. With a population of around 2.2 million people, the province has vast potential for agriculture and livestock production. “The pork market in the province is limited, but some producers supply their finisher pigs to East Kalimantan where pork consumption is quite high,” Alexander Kasim, Adhi Farm owner, told Asian Agribiz. He disclosed that he received an offer to buy a 100-head farm in the province. “I am interested to buy the pigs, but I prefer to raise them in new and better designed houses,” he said. “I have also met people from Charoen Pokphand Indonesia and they said that they can provide complete pig feed.” As an added incentive, the local government offered him the use of an idle feedmill with a daily capacity of five tonnes, but he said he has not yet decided on the offer.
|Kazakhstan ready to sell meat to Indonesia|
[10 December 2014] Kazakhstan, the biggest economy in Central Asia, is ready to supply meat to Indonesia. “We are a major producer of meat. We are ready to provide this item to Indonesia,” said Kazakhstan Ambassador to Indonesia Askhat T Orazbay. Kazakhstan is fast emerging as a key supplier of premium beef. Last year, the total meat production in the country reached 871,000 tonnes. At least 5000 tonnes of premium beef was exported in 2013. “Many people in Indonesia do not know that meat both beef and lamb from Kazakhstan is much tastier than meat from many other countries. We don’t use growth stimulants in our meat industry. We grow cattle and sheep naturally,” Mr Orazbay said.
|CAB to have presence in Singapore market|
[09 December 2014] CAB Cakaran Bhd is on track to achieve USD 286 million in revenue next year, riding on its intention to tap into the Singapore market and its expansion plans for its poultry farms in the country. Chris Chuah, Group Managing Director, told StarBiz that the plan to acquire a 51% stake in Singapore-based poultry slaughtering house, Tong Huat Poultry Processing Factory, would enable the group to capture both the markets in Singapore and Johor, where the demand and pricing of broiler was steady and stable. “When the USD 5.51 million acquisition is completed in June 2015, the group will be able to raise its production of broilers to 3.6 million/month from 3 million at present. “We expect Tong Huat’s business to generate about 14% of our revenue for the 2015 fiscal year,” he said.
|Bali eyes new markets for pigs|
[09 December 2014] So far pigs produced in Bali, Indonesia are sold in local markets, so that if there is over-production, the price of live pigs will quickly fall, according to Chairman of the Bali Pig Farmers Association (Gupbi) I Ketut Hari Suyasa. In the 2012-2013 period, the pig population in Bali fell by 40% from around 900,000 heads because of low prices. “Our market reach is limited,” said Mr Hari. “The local government should help us find new markets like in Surabaya and Jakarta.” He told Asian Agribiz that the association is in talks with a meat importer and distributor based in Jakarta. “The company, PT Christy Sejahtera, needs two tonnes of pork per day.”
|Cofco building 500,000 pig production base|
[09 December 2014] Chinese state-owned Cofco Group has signed an agreement to invest USD 195 million in a 500,000 breeding and slaughter base in Guangshui, in central Hubei Province. The complex, part of an effort to boost the company’s pork market share with premium products, will provide production, supply and marketing services. Cofco has also agreed to invest in green food production, tourism and other rural construction projects in Guangshui, according to an article posted on China Pig Network News.
|Carona eyes more GoGo Franks outlets in Indonesia|
[09 December 2014] Singapore’s Carona Holdings, which has 14 sausage kiosks in the republic and 15 outlets in Indonesia, plans to open its 16th outlet at the Makassar airport in Indonesia. “Indonesia is our future and we can grow to 50, even 200 outlets. We have just opened our second production line because the first had reached full capacity,” said Jean Lee, Managing Director. In 2012 Carona opened a semi-automatic processing plant in Jakarta equipped with German machines and a smokehouse. The plant started out with 500kg/day. Today it produces 3000kg/day in two eight-hour shifts. Ms Lee has plans to build a second plant in Indonesia.
|Thai import protocol announcement for Australian feeder cattle imminent|
[09 December 2014] Beef Central reports that there will be an announcement any day now that the Thai protocol for the import of Australian feeder cattle has been officially agreed by both governments. This should allow imports to begin early next year, although the traditional issues of tight supplies and high prices during the northern Australian wet season is likely to delay the first shipments to April or May. Export Supply Chain Assurance Scheme requirements need to be established for new importers, so this will also need a little time to put in place.
|Belgian exporters look to Asia for new market|
[09 December 2014] To compensate for the pork export lost by the Russian ban on EU meat, Belgium has developed a three-year plan to forge business with new markets. Its main focus will be on Asia. The country’s meat office has come up with a three-year plan to raise exports, Joris Coenen, Belgian Meat Office Marketing Officer, told GlobalMeatNews. “Pig meat turnover is USD 1.97 billion. We export more pig meat than Brazil,” Mr Coenen said adding that Belgium is reputed for its tailor-made service.
|Hormel mulls Vietnam exit|
[08 December 2014] Hormel Foods is considering exiting the Vietnam market, where it has a joint venture with Philippine food giant San Miguel Pure Foods Co Inc, a report from just-food.com said. The report said the company could make the exit early in its current fiscal year. It quoted Hormel as saying that the Vietnam venture, which includes hog production, feedmills and a processed meats facility, “has not delivered the results we expect from our international investments.” Hormel owns a 49% stake in San Miguel Hormel (Vn) Co. San Miguel has not commented on whether talks are actually ongoing between the two companies. However, Astro del Castillo, Managing Director of First Grade Finance, a Philippine finance and investment company, told Asian Agribiz that if Hormel does exit the Vietnam business, “it will just be a temporary setback for San Miguel and it will not have a major effect on its business.”
|Thailand approves 11 US MBM plants|
[08 December 2014] Thai officials have approved early December an additional 11 US meat and bone meal (MBM) plants for export to Thailand. Following audits by Thai officials at the US plants, the eligible list has now grown from four to eight companies, after negotiations between US and Thai officials resulted in new import protocols for MBM products being agreed. The new facilities eligible for export to Thailand include three JBS Inc facilities, two APC Inc plants, four Pilgrims Inc and two Smithfield facilities. According to a Global Agricultural Information Network report from the USDA’s Foreign Agricultural Service, Thailand’s MBM imports totalled USD 152 million in 2013, around 10% of the total market. These newly-approved facilities could contribute an additional USD 2-3 million of exports annually. Thailand imported around USD 14.5 million worth of MBM imports from the US last year.
|Brahim’s, Carpenter Beef to build slaughterhouse in Perth|
[08 December 2014] Malaysia's Brahim’s Holdings Bhd has teamed up with Australia’s Carpenter Beef Pty Ltd to build a slaughterhouse in Perth that is designed to meet all China, European Union, the US Department of Agriculture halal requirements. Brahim’s said in a statement that the plant, Cataby Abattoir, will have a capacity of 100,000 cattle per annum on a single shift basis, with a 400-head per day capacity. It added that the memorandum of understanding will allow the company to tap into the opportunity of co-owning the Cataby Abattoir, as a halal compliance abattoir, with Carpenter Beef as its partner. Carpenter Beef will operate the Cataby Abattoir and oversee the management of cattle as feedstock for the abattoir. Brahim’s will be the major buyer of the products from the slaughterhouse.
|Indian beef exports get shot in the arm|
[08 December 2014] India’s beef industry got a shot in the arm last week with Russia’s decision to allow import of buffalo meat. Spokesperson of Russia’s Rosselkhoznadzor or Federal Service for Veterinary and Phytosanitary Surveillance confirmed this development. India’s beef industry, which is already a top exporter globally, is presently exporting beef to Vietnam, Malaysia, Egypt, Thailand, Saudi Arabia and Jordan. Four Indian provinces or states Uttar Pradesh, Andhra Pradesh, Maharashtra and Punjab are the major buffalo meat production areas in India. In 2013-14 India exported 14.49 million tonnes of buffalo meat valued at USD 4.34 billion against 11.07 million tonnes valued at USD 3.19 billion in 2012-13, according to Ministry of Commerce estimates.
|Indonesia ups fish products quality with standards|
[08 December 2014] In the face of the Asean Economic Community 2015, Indonesia’s Ministry of Fisheries & Marine Affairs has said that it will soon implement Indonesia National Standards (SNI) for processed fish products. This year the National Certification Agency defined eight SNI namely for fish balls, frozen fish, fresh tuna, frozen shrimps, frozen raw peeled shrimps, frozen eel, tuna loin and copper and zinc levels in fishery products. Director General of Fish Processing and Marketing Saut P Hutagalung said the SNIs are aimed at increasing the quality of Indonesia’s processed fish and shrimp products. “We will support processors particularly small and medium processors, with an incentive of around USD 650 to achieve the SNIs.”
|Fourth Chinese H7N9 case in two weeks|
[08 December 2014] A 27-year-old man from the city of Fuqing in Fujian Province has become the fourth victim of H7N9 avian influenza in China in the last two weeks, according to media reports. The man was hospitalised in critical condition in Fuzhou. Other infections, all of a single person, have been reported in Xinjiang, Zhejiang and Guangdong provinces. The latest case brought the total number of reported human cases to 463 since the spring of 2013, according to FluTrackers. At least 175 deaths have been reported.
|Bali declared national region for pig farming|
[05 December 2014] Bali was recently declared as the national region for pig farming in Indonesia. However, according to Chairman of the Bali Pig Farmers Association (Gupbi) I Ketut Hari Suyasa, the association has not got further information on the kind of programs to be implemented by the central and local governments. “We plan to propose Badung, Bangli and Gianyar districts as locations for pilot projects to enable efficient, productive, profitable and sustainable pig farming,” Mr Hari told Asian Agribiz. Besides, “we also hope the governments can help accommodate our pig farmers’ cooperative program in the three districts.” In May 2014 Gupbi initiated a program to form pig farmers’ cooperatives in every district in the province, with Badung district chosen for the pilot project.
|27 arrested in Chinese 'grey channel' beef bust|
[05 December 2014] Police have arrested 27 people and seized 300 tonnes of smuggled Brazilian beef in northern Jiangsu Province, according to a report by the Chinese news agency Xinhua. Brazilian beef was banned from entering China in late 2012 after a case of BSE was found in southern Brazil. However due to strong demand and high prices, substantial volumes continued to flow through the Hong Kong 'grey channel' to ports on the Chinese coast. Police said at least USD 16 million worth of Brazilian beef had entered via the port of Lianyungang in the last year. The bust comes less than two weeks after China officially lifted its ban on Brazilian beef with an agreement at the Group of 20 meeting in Brisbane, Australia.
|New FMD outbreak in South Korea|
[05 December 2014] South Korea's agriculture ministry has confirmed an outbreak of foot-and-mouth disease (FMD) at a pig farm located some 100 km south of Seoul. The outbreak at the farm in Jincheon, North Chungcheong Province, comes nearly four months after the last confirmed case was reported at a pig farm in Hapcheon, some 350 km south of Seoul. According to the Korea Herald, the ministry, however, noted the possibility of the animal disease spreading was slim as all farms here are currently required to vaccinate their cows and pigs against Type O FMD found at the farm in Jincheon.
|CP Prima targets Asean countries for its shrimp products|
[05 December 2014] Indonesia’s largest shrimp producer and exporter CP Prima exported its processed shrimp products to China for the first time last month, through its subsidiary Centralpertiwi Bahari. Following this success, the management has said that the company targets to enter processed shrimp markets in Asean countries. “Our main target is the Philippines and Myanmar,” said Director Sutanto Surjadjaja. CP Prima processes several processed shrimp products such as ebi fry, shrimp cutlets, shrimp nuggets, shrimp rolls and shrimp sticks. This year it targets to sell 1500 tonnes locally.
|Thai company introduces Taiwanese fried chicken locally|
[05 December 2014] Thailand’s grilled restaurant chain Barbeque Plaza Co Ltd has paid around USD 1.83 million to buy the Taiwanese Hot Star chicken franchise brand to serve local Thai consumers. The brand targets young people as they are the group of consumers who prefer snacks that are easy to eat and convenient. The company expects to earn around USD 3.04 million in the first year of operation. The first outlet of Hot Star chicken will open in March next year and the company hopes to have 5-10 outlets in the first year with a target of 35 branches in five years.
|Jollibee sets USD 200 million for capex in 2015|
[05 December 2014] Amid continued strong demand, Jollibee Food Corporation of the Philippines has allotted USD 200 million for its capital expenditure program for 2015, up 42% from its 2014 capex budget, the company said in a statement. The fund will be used to build new stores and renovate existing stores in both its Philippine and international operations, as well as to construct a commissary to increase capabilities. About 74% of the budget will be allocated for Philippine operations, 19% for China and the rest for the US, Southeast Asia and the Middle East. As of end-September this year, the company has opened 114 new stores in the Philippines and 34 overseas. It targets a total of 300 new stores by end-2014.
|GreenFeed ready to release PIC PS gilts in January|
[04 December 2014] GreenFeed Vietnam Corporation’s 1700 GP sows, which were imported from PIC, will produce PS gilts that will be released to farmers next month, Tran Ngoc Chi, General Director, told Asian Agribiz. “The farming technology in Vietnam is outdated. Farms producing 20-22 piglet/sow/year is considered good,” he said. GreenFeed’s farm in CuJut imported 800 nuclear and GGP sows in the first and second quarters of this year. Mr Tran explained that the input sow source is for Hung Yen, Binh Thuan and GreenFeed’s other GP farms. “In the US and the EU farms achieve up to 30 piglets/sow/year. Farmers in Vietnam must upgrade their technology and genetic pool if they want to survive in the coming years.”
|Three Indonesian companies to export chicken products to Japan|
[04 December 2014] Japan has officially announced that three Indonesian poultry integrators namely Charoen Pokphand Indonesia, Japfa Comfeed Indonesia and Malindo Feedmill can start exporting processed chicken products to the country. “The three companies meet all requirements required by the Japanese government,” said Director General of Livestock and Animal Health, Syukur Iwantoro. Sierad Produce Director Sudirman FX revealed that the company should improve its food safety procedures in order to comply with the Japanese government’s standards. CP Indonesia Vice President for Government and Liaison, Dr Desianto Budi Utomo said the company expects to export its products early next year. These will include chicken nuggets, meatballs, sausages, yakitori and karaage.
|Walmart closes regional office in China|
[04 December 2014] Faced with a weak sales environment, US retail giant Walmart announced it is closing its Northeast China regional office in the city of Dalian and cutting about 250 administrative jobs. The move is aimed at improving efficiency and leaves the company with five regional offices in China, instead of six. Walmart has more than 400 outlets in China and said earlier this year that it would close 20 of its less-profitable stores, but it's also opening 31 new stores and logistics centres to develop new territory. Walmart does not break out China figures, but the Asia Wall Street Journal reported the company suffered a 0.8% drop in Q3 China sales due to slower economic growth and the government’s anti-corruption drive, which has reduced gift-giving to government officials.
|Beef import realisation in 2014 only 70%|
[04 December 2014] Indonesian Meat Importers Association has said that the realisation of beef import this year will only reach 70% of the total import permit of 170,324 tonnes given by the Ministry of Trade. “This year the purchasing power of beef weakened due to currency depreciation which escalated the price of beef,” Chairman Thomas Sembiring said. He revealed that in Q1 its members imported 51,037 tonnes, 45,255 tonnes in Q2, 34,905 tonnes in Q3 and 39,137 tonnes in Q4. “For the first quarter of next year, we will import only around 30,000 tonnes since we predict that the weak trend will continue.”
|Philippines announces import bans|
[04 December 2014] The Philippines has imposed a temporary ban on poultry and poultry products from Russia and Germany following outbreaks of highly pathogenic avian influenza (HPAI) in these areas. The Philippine Department of Agriculture (DA) said HPAI virus serotype H5N1 affected poultry in Ilinsky and Dolgovo Novochikhinsky, Altayskiy Kray, Russia, while HPAI virus serotype H5N8 affected Heinrichwalde, Vorpommern-Greifswald, Mecklenburg-Vorpommern, Germany. Likewise, the DA also slapped a ban on importation of cattle products from Botswana after an outbreak of foot and mouth disease was confirmed in the African country. The Philippines has managed to remain free of both AI and FMD and is strictly monitoring its borders to keep both diseases at bay.
|Thai agri ministry raises concern on PRRS |
[04 December 2014] Thailand’s Ministry of Agriculture and Cooperatives has warned pig raisers to be alert on the Porcine Reproductive and Respiratory Syndrome (PRRS) disease during the cooler months at the end of the year. Wimol Jantrarotai, Deputy Permanent Secretary of the ministry said the transition from the rainy season to cooler weather can stress out pigs and cause them to eat less and weaken their immune system.“To avoid the risk of PRRS, farmers are encouraged to be strict with biosecurity. Pigs brought into the farm must be disease-free at origin,” Mr Wimol said. Pig farmers are urged to call the ministry for advice on biosecurity, he said.
|Indonesia aims to reduce fishmeal imports|
[03 December 2014] Indonesia’s Ministry of Fisheries and Marine Affairs expects that some 1.6 million tonnes of catch fish can be processed by fish processors in the country. Of the figure, there will be around 500,000 tonnes of waste that can be processed into fishmeal, said Saut P Hutagalung, Director General of Fish Processing and Marketing. “Fishmeal is an important raw material for aqua feed. We aim to reduce the import and replace it with local fishmeal.” Last year Indonesia imported 60,200 tonnes of fishmeal at a value of USD 74 million from Chile, Vietnam and China for aqua feed raw material.
|Jiaxing launches emergency bird flu plan|
[03 December 2014] The city of Jiaxing launched its emergency plan to control bird flu after a woman came down with the city’s first case since last winter, according to the official Chinese news agency Xinhua. Jiaxing, in Zhejiang Province, tested those who had come into contact with the infected woman and warned clinics and hospitals to immediately isolate any suspected cases. Relatives said the woman had bought two live chickens at a roadside farmers’ market and was keeping them at home before slaughtering them. Meanwhile, the Hong Kong Centre for Health Protection confirmed that a 31-year-old woman had come down with H7N9 across the border in Guangdong Province. Both infected women were being treated in hospital. China has reported 462 cases of human H7N9 infection since 2013, with 175 deaths.
|Global demand and weather to drive commodity markets in 2015|
[03 December 2014] Charting its outlook for the global agri commodity markets in 2015, Rabobank says the key variables to watch for are the US dollar strength, uncertain Chinese demand growth, slowing biofuel demand, and oil price weakness. “Macro drivers remain very much in play and price swings from supply and demand shocks are still likely, given that the stocks for most commodities are not yet at levels necessary to provide an adequate buffer,” said Stefan Vogel, Global Head of Rabobank Agri Commodities Markets Research. The bank expects farmers' selling and planting decisions, global demand and weather-related production risks to remain key drivers through 2015. Assuming normal growing conditions, moderate increases in demand will allow stocks to build for most commodities through 2015.
|Brahim’s buys Burger King franchise |
[03 December 2014] Malaysian in-flight caterer Brahim’s Holdings Bhd and private equity firm Quantum Angel Sdn Bhd announced a USD 27.68 million deal to buy the Burger King franchise in Malaysia and Singapore from Equinas Nasional Bhd. Brahim’s said its interest in the franchise will help to reduce its dependency on in-flight catering. According to Datuk Seri Ibrahim Ahmad, founder and Executive Chairman, the franchise will contribute around USD 87.40 million to the company’s revenue next year. He said that there are around 54 Burger King outlets in Malaysia and some 38 in Singapore, and the numbers would be increased annually.
|VietGAP certified aquaculture farms to reach 30% in 2015|
[03 December 2014] By 2015 there will be 30% of intensive, semi-intensive farms and aquaculture systems that are VietGAP (Good Agricultural Practice) certified and this percentage in 2020 will be 80%, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The application of VietGAP standards is considered crucial measures to minimise the negative impacts of aquaculture, to develop sustainable farming; and to enhance product value and, to promote export activities. Pangasius production reached 1.1 million tonnes with total farming area of 5,200 ha while brackish water shrimp yield was 550,000 tonnes from the total farming area of 666,000 ha.
|Singapore food manufacturers must continue to innovate|
[03 December 2014] Singapore’s food manufacturing sector has shown good growth, with total sales in 2012 totalling about USD 6.14 billion, Minister for Trade and Industry Lim Hng Kiang said. Speaking at the inaugural Great Singapore Food Gift Awards ceremony, Mr Lim said value-added growth in the food manufacturing sector has been at a compound annual growth rate of 8.7% from 2003 to 2012. The sector has also seen exports grow at a CAGR of 12.9% over the same period, reaching more than USD 3.45 billion in 2012. With the establishment of the Asean Economic Community, more opportunities will open up for Singaporean food manufacturers to grow through exports, he said.
|CP Indonesia invests USD453m in capex|
[02 December 2014] Indonesia’s largest poultry company Charoen Pokphand Indonesia has allocated a total of USD 453 million to capital expenditure this year and the next, with expansion and acquisition plans in the pipeline. Director Ong Mei Sian said USD 247 million would be spent this year and USD 206 million next year. With a bigger capex, the company aims to develop its three lines of business namely DOC, feed and processed chicken products. “The plan for next year is to build a new feedmill in Semarang, Central Java,” Ms Ong said.
|China Fishery’s earnings down 20% |
[02 December 2014] China Fishery Group’s earnings for the full year ended September 28 contracted 20.3% to USD 61.9 million as higher finance costs and income tax expenses offset an improvement in revenue. Finance expenses increased 60% to USD 80.8 million following the consolidation of Copeinca ASA, a Peruvian fishing company that China Fishery acquired last year using debt and equity. Revenue rose 13.7% to USD 630.8 million, driven largely by China Fishery’s Peruvian fishmeal operations. Revenue from the contract supply business fell 57.4% to USD 154 million.
|Malaysia food retail dominated by small players|
[02 December 2014] According to the USDA’s recent Malaysia Retail Foods Annual 2014 report, total retail sales of food and beverage in Malaysia amounted to USD 16 billion in 2014. The retail sector is expected to grow at 6% for the next two years due to cautious consumers spending with increased subsidy rationalisation and anticipation of GST implementation in 2015. The food retail sector continues to remain fragmented, with around 56% of retail food sales being made up of small retailers. Modern stores have around 43% share, while convenience stores have remained insignificant.
|Bangladesh poultry forecast for growth|
[02 December 2014] Business Monitor International holds a cautious outlook on Bangladesh's agriculture sector. It estimates that poultry production will grow to 224,000 tonnes by 2017/18, an increase of 22.9%. Better economic conditions and higher disposable incomes will help drive demand for meat. Improved disease control is also expected to support the recovery of the sector. Real GDP growth in 2015 is forecast to be 6.0%, up from 5.7% expected in 2014. GDP growth is predicted to average 6.0% from 2015-18.
|Taiwan forecasts lower broiler production |
[02 December 2014] In response to a Porcine Epidemic Diarrhoea Virus (PEDv) in Taiwan, pork prices this year have increased dramatically since 2013 resulting in increased demand for poultry. The USDA in their recent International Egg and Poultry Review forecasts Taiwan to import 145,000 tonnes of broiler meat, a 31% increase from 2013. In 2015 Taiwan’s total broiler meat imports are projected to increase 24% to 180,000 tonnes. Taiwan’s broiler meat production for 2014 is forecast to decrease 2% to 480,000 tonnes and projected to drop 1% in 2015.
|Global frozen food market to hit USD 307b in 2020 |
[02 December 2014] The global frozen food market is expected to reach USD 307.33 billion by 2020, according to a new study by Grand View Research Inc. Consumer shift towards adoption of food requiring less time to prepare on account of their changing lifestyle is expected to remain a key driving factor for the global frozen food market. Meanwhile the presence of a large unorganised market in Asian countries is expected to remain a challenge for existing market participants. Unbranded frozen food poses a threat to major companies in terms of quality and price offerings.
|Indonesia to reduce use of AGP |
[01 December 2014] Indonesia’s government has said that it is planning to reduce the number of antibiotic growth promoters (AGP) used in feed. This plan will be realised at the end of this year or early next year. Chairman of the Indonesian Veterinary Drugs Association Rakhmat Nuriyanto told Asian Agribiz that the number of AGP (plus anticocci) would be reduced from 30 to eight items. “Bacitracin, flavomycin, enramycin, avilamycin, virginiamycin, lincomycin, tylosin and colistin will remain on the list as they are backed with scientific data for the government to review.” Mr Rakhmat estimated that with the reduction, the market value of AGP (plus anticocci) that is currently around USD 164 million may shrink by about 10-15%. “However this will encourage the use of natural products like probiotics, prebiotics and phytobiotics.”
|Two outbreaks of HPAI in India|
[01 December 2014] Two outbreaks of H5 variant, highly pathogenic avian flu have been confirmed in domestic poultry in the Indian state of Kerala, affecting more than 240,000 birds. The Indian veterinary authority sent an Immediate Notification dated 25 November to the World Organisation for Animal Health (OIE). It described two outbreaks in farmed ducks, both in Kerala. An epidemiological investigation is ongoing, and an intensive surveillance campaign has been launched in a 10 kilometre radius of the affected villages. The Agriculture minister has ordered a cull of as many as 200,000 birds and a halt of transport of ducks or other poultry products from the region. The last outbreak of avian flu in India was in February 2014.
|Growth in China boosts Hormel|
[01 December 2014] Growth in China and higher pork exports has helped push Hormel Foods Corp. to record earnings and sales in its fiscal fourth quarter, according to CEO Jeffrey Ettinger. In its Q4 report, the company said sales and earnings were up 9% from last year. Profits at Hormel’s International Products division rose 34%, and Ettinger said Hormel expects double-digit growth in the division next year. Looking ahead to 2016, the company is planning to boost its profile in China with a new refrigerated meats plant, but may decide to exit a food processing joint venture in Vietnam.
Poultry India 2014
Onsite reports by ARIEF FACHRUDDIN and S M ARUN
[01 December 2014]
Biomin gains success in India
In India, Biomin is a big name in the feed additive industry. From a three-person set up, the company now employs 19 people to cover the growing poultry and livestock market in India. COO Sujit Kulkarni said: “We are now one of the market leaders in mycotoxin control management in India and the first company with EU-authorised mycotoxin control products.” Mr Kulkarni added that last year Biomin launched its phytogenic product range for the Indian market in response to the market's awareness of antibiotics and the government’s inspection on antibiotic residue. “Response from the market has been good. Phytogenics is not only an alternative to AGPs but also supports the gastro intestinal health of the bird.”
Zoetis aims to raise profitability in India
Zoetis which has acquired four leading companies in the animal health sector, is hoping to make it big in India in the coming years. Dr Mahesh Shivankar, Senior Product Manager of Zoetis India Limited said that they have completed the acquisition procedures over the last three years. "Our priority now is to raise our profitability in India, our customer support and the Zoetis brand," he said.
Kemin scales up r&d
Kemin Industries South Asia is banking heavily on its research and development to scale up its business all over the world. Samraj Jeyachandran, Senior Vice President, Animal Nutrition & Health said that their vision is to touch 3.5 billion people globally through their services. "We have already reached the 2.1 billion mark and our vision is to reach the figure by 2018," he said adding that 12-16% of their investment goes into R&D.
Foodmate sees good potential for its technology
Although the chicken processing industry in India is still in slow growth mode, Foodmate sees a big potential for its technology. “We know it will take time for the industry to progress since 92% of total broiler produced is sold in wet markets, but the potential is big,” said Sales Manager Hans Tieleman. “We also see that our cooperation with a local company RND is a good step for our technology here. RND is already into chicken processing equipment and has a good customer base. So when RND’s customers want to step up processing, we will be here to help them.”
VDL launches Valenta
VDL Agrotech launched its new versatile pan feeder called Valenta for broilers from starter to finisher period. Area Manager Sunny Sidhu said: “We took the opportunity at this event to launch Valenta as it can help broiler farmers gain better production performance and efficiency.” Valenta features a low ridge for easy access to feed from day one, open design to prevent chicks from getting caught inside the pan and to minimise feed spillage, and smooth surfaces for easy cleaning and disinfection.
Sanovo promotes pasteurisers
India is one of the largest chicken egg producers in Asia and Sanovo Technology Group sees this as an opportunity to promote its pasteurisers. Product & Business Manager, Roberto Roversi said that Sanovo pasteurisers are specially designed for the egg processing industry and are available with either plate or tubular heat exchangers. Mr Roversi added that the pasteurisers are equipped with Sanovo Wave Technology which can inactivate bacteria by 10 times, without influencing the functional properties. Sanovo pasteurisers are available in capacities of 600-10,000 litres/hour in standard configurations.
Japfa India’s feed business predicted to grow 40%
Winner of the Asian Feed Miller Award 2014, Japfa Comfeed India, expects its feed business this year to grow by more than 40%. Vice President, Head of Feed Division Ardi Budiono said: “Many customers of other millers have switched to our feed. We believe this is because we can maintain quality consistency, supported also with good and on-time delivery and farm services.” Mr Ardi also said that the company is currently setting up a new poultry feed plant in Bihar with an installed capacity of 15,000 tonnes/month. The plant is expected to be operational in the third quarter of 2015. “Next year, we will also expand the capacity of our existing plants to meet growing demand for our feed.”
IB Group promotes IB-Ross
Fast growing poultry company IB Group promoted its JV with Aviagen called IB-Ross at the show. President Dr RK Jaiswal said the company ventured into GP breeding last year and has started selling PS to its customers in the country. Dr Jaiswal said its GP farm produces some 200,000 PS per month. “The market response is good. The strain performs well and we are positive of its growth,” Dr Jaiswal said. He added that the company is setting up a new feed plant near to its head office in Rajnandgaon. Costing the company around USD 16 million, the new plant will have an installed capacity of 2000 tonnes/day and will be equipped with technology from CPM. Targeted to be operational in June 2015, the plant will produce feed mainly for poultry.
Poultry India 2014
Onsite reports by ARIEF FACHRUDDIN and S M ARUN
[28 November 2014]
Big Dutchman invests in total customer satisfaction
Shifting from manual to automated operations is not only about investment, but also management of technology. Big Dutchman India sees that farmers are comfortable with automatic drinkers and feeders, however for closed house they have to deal with ventilation that is not easy. Understanding this, Training & Marketing Manager Bernada Luers said the company recently added two trained veterinary doctors to its team. “They will visit our customers soon after we install our equipment and offer training and support to help them get used to the closed house system. Investment in total customer satisfaction is costly but we want long term relationship with our customers.” The existence of its equipment warehouse also supports the total customer satisfaction program, she added.
Marel expects more projects in 2015
Although feed price hikes and low broiler prices have slowed down the Indian poultry industry, the poultry processing sector continues to grow positively, said Export Manager of Marel Stork Poultry Processing, Erik Talens. Mr Talens revealed that this year the company received letter of credit from Sneha Farms for a 6000 birds/hour poultry processing unit. “The plant will be installed in June next year.” Marel is also currently upgrading a processing plant in Coimbatore owned by Shivshakti from 2000 to 4000 birds/hour. This semi-automatic plant will be up and running in February next year, said Mr Talens.
Indian poultry feed industry expected to grow 4%
The business environment in India now is positive, according to Chairman of the Indian Compounded Livestock Feed Manufacturers Association (CLFMA) Dr Dinesh Boshale. “We expect an increase in per capita income and the consumption of chicken and eggs.” Dr Boshale said at the moment poultry placement is back to some 60 million broilers per week. Poultry feed production, meanwhile, this year is expected to reach 21 million tonnes. Of this, 12 million tonnes are broiler feed and 9 million tonnes layer and breeder feeds. “This year, we expect the feed industry to grow by 4%,” he said. To make the industry more competitive, Dr Boshale said the association has asked the central government to offer a 5-year tax holiday for the industry in feed additive & supplement imports. “Import duty of the products is an obstacle.”
Danisco anticipates growth in animal nutrition
Danisco Animal Nutrition, part of DuPont, enjoys a strong presence in India and expects the animal nutrition sector to grow at a faster pace as the awareness level among stakeholders is increasing. Sheril V Vaidhyan, Business Director-South Asia, DuPont Industrial Biosciences said that the driver behind the growing awareness is the fact that all the agricultural land in India is saturated. "The challenge is to produce more meat with the available resources and that is why we believe that animal nutrition has huge potential,” he said. Mr Sheril also pointed out that the company is capable of meeting the anticipated growth in demand for animal nutrition in India.
Vimala Feeds evolves into a poultry focused company
Vimala Feeds started its business in 1969 by producing cattle feed. It now produces 100% poultry feed. “We shifted our focus because of the higher demand for poultry feed,” revealed Managing Director Ch. Madhusudhana Rao. At the moment the company has four feed plants producing feeds for breeders, broilers, layers and also emu. “This year we set up a new pellet feed plant in Andhra Pradesh. The installed capacity is 20 tonnes/hour,” he said. To support this feed business, last year it set up a soy solvent plant with a capacity of 500 tonnes/day in Karimnagar. Mr Rao said at the moment it is working on completing its integration project. “In 2006, we ventured into broiler breeding with 30,000 Vencobb PS, now we raise 100,000 birds. We want to double the capacity of our commercial broiler farming from 300,000 to 600,000 birds. We will also set up a processing plant.”
SR group setting up a new feed plant
SR Group through its subsidiary Rohini Minerals is setting up a new feedmill located near Hyderabad. General Manager Venkataramana V said the new 20 tonnes/hour plant will be equipped with technology from Andritz. Costing around USD 4 million, the plant is targeted for operations by end January 2015. “It will produce pellet and crumble feeds for broilers and layers in Telangana state,” said Mr Venkataramana. He revealed that next year the company will set up a new feed plant in Andhra Pradesh state. “We will expand our feed business gradually into the eastern and western part of the country,” he said. The company now has six feed plants in central and south India.
Skylark plans for expansion
Skylark group based in Haryana is looking to extend their operations. Managing Director, Jagbir Singh Dhull said that following the huge success of their operations in North India they are planning to extend their presence to other parts of India. "We are doing extremely well in feed and have already entered a few African countries,” he said. According to him, since the demand for their feed has grown steadily in Nepal they have set up a feed plant in Nepal.
Abca showcases organic selenium product
Abca showcased its innovative feed solutions and highlighted its selenium enriched functional food benefits. “Relevant to the functional food Industry, AB Tor-Sel, organic selenium (Torula yeast) from Abca is an ideal choice to enrich selenium level in poultry products to optimise health benefits,” said Managing Director, James Charteris-Hough. Comprehensive trials conducted at universities in Australia, proved the product to be an effective source of organic selenium that helps achieve better animal performance and significantly higher selenium content in eggs (extra 22%) and chicken meat (extra 10%).
Poultry India 2014
Onsite reports by S M ARUN
[27 November 2014]
The eighth edition of 'Poultry India' opened yesterday at Hitex Exhibition Centre in Hyderabad. The three-day event this time has sustainable development in the poultry sector in India as its focus. Organisers of this event said that the annual turnover of the poultry industry in India is approximately USD 16.5 billion while it provides employment to around 6 million people in rural India. Poultry equipment manufacturers, feed and nutrient suppliers from all over the world are participating in this event that will conclude on November 28.
Good prospects for Berg+Schmidt's fat powder
Berg+Schmidt who pioneered the use of liquid fat as A feed supplement for the poultry industry in India is now focusing on expanding their market to the dairy sector with their fat powders. Harish Dharne, General Manager of Berg+Schmidt (India) Pvt Ltd said that the prospects are good as the market for fat powder has grown over the last two years. "When we entered India in 2002 nobody was using liquid fats but now after 12 years it has become popular", he said and added that they are expecting a huge increase in the market for fat powders.
Jamesway banks on growth
Canada based incubator manufacturing company Jamesway, is hopeful that it will grow in India, Bangladesh and Sri Lanka by 2015. "Since the poultry industry in these countries have turned their focus towards automation we are hopeful that we will get some major projects next year," S V Deshmukh, Area Sales Manager of Jamesway Incubator Company said. According to him, Jamesway has an edge over local incubator manufacturers as the incubators by Jamesway are more user friendly. Pointing out that even though the price of their incubators is slightly more than the local ones, the company is confident that it will achieve a breakthrough next year.
|Indonesia sees robust demand for native chicken|
[27 November 2014] The native chicken business in Indonesia has seen significant growth in the last five years, according to Chairman of the Indonesian Local Poultry Farmers Association, Ade Zulkarnain. “Ten years ago, total native chicken production was only 60 million birds. However this year, production may reach 150 million birds, with 90% of the demand from the middle-up class up,” he told Asian Agribiz. There is demand also from Singapore, Brunei and Malaysia which the industry is unable to fulfil. Mr Ade noted that currently there are only five native chicken breeders who follow good breeding practices. Each of these breeders produces around 40,000-100,000 DOCs per month.
|China's sow numbers continue to decline|
[27 November 2014] China's Ministry of Agriculture said the October on-farm pig inventory was 436.5million (up 0.8% from September) and a 44.81 million sow herd (down 5.8%). The past 6 months has seen more than 3.12 million sows eliminated, resulting in the lowest inventory in four years. Genesus reports that it expects more sows lost in the next few months as rumours of Foot and Mouth Disease in Henan may make farmers sell off inventory. Hog production capacity has significantly been adjusted with the main cause being the loss of farm households. Despite the recent recovery of the market price for live pigs, several farm households are still in financial difficulty.
|Asean goods will not flood market Vietnam market|
[27 November 2014] Vietnam is scheduled to reduce the 5% import duty to zero on 1,720 tariff starting January 1, 2015 under an Asean trade pact, but this does not mean the market will be flooded with products originating from other Asean countries, Nguyen Thi Bich, head of the International Cooperation Agency under the Vietnamese Ministry of Finance, told Tuoi Tre newspaper. “As for products that are crucial to the country’s agriculture such as pork, poultry and eggs, Vietnam is negotiating to maintain import duties on them at 5%.” “Vietnam’s exports to Asean has expanded considerably over the last three years, whereas imports remain almost the same,” she said.
|Taiwan’s food safety act passes third reading|
[27 November 2014] An amendment to Taiwan’s Act Governing Food Safety and Sanitation, which not only increases fines for food companies involved in the production of food products with inappropriate additives and materials but also adds new regulations such as using electric receipts, holding regular food safety meetings and setting up food labs, passed a third reading at the Legislative Yuan. Under the revised law, food manufacturers who sell adulterated products will not only face a seven-year prison sentence but also an USD 2.61 fine. In addition, if adulterated food products are found to cause death, an individual can be issued with fines of USD 6.47 million and the punishment can be increased up to 10 times.