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21 December 2014
|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.
|CJ Indonesia inaugurates new mill in Lampung|
[26 November 2014] CJ Feed Indonesia recently inaugurated its new feedmill in Lampung, its second feedmill in Sumatera. Acquired from Sierad Produce, the mill was modified to comply with CJ’s standards, said General Manager Sales & Marketing Tevi Melviana. “The mill has an installed capacity of 20,000 tonnes/month for poultry feed,” Mr Tevi told Asian Agribiz. At the same complex, CJ also added a new line with an installed capacity of 1200 tonnes/month of shrimp feed. Mr Tevi said the mill is aimed to cover demand from Lampung, Bengkulu, Jambi, Palembang and Bangka Belitung.
|GreenFeed updates 10-year-old Cambodian feedmill|
[26 November 2014] GreenFeed Vietnam Corporation’s 10-year-old feedmill in Cambodia is currently undergoing renovation works to expand capacity and to adopt energy-saving solutions. The plant in Cambodia will operate at its maximum capacity of 200,000 tonnes/year after renovation works are complete early next month, General Director Tran Ngoc Chi told Asian Agribiz. “Our new feedmills, starting with the one built in Dong Nai in 2012, all feature the latest in engineering technology and plant design. They are efficient, run on low costs, rely more on renewable energy and deliver consistent production.” By 2020 it hopes to produce 4 million tonnes of feed per year.
|Poultry India 2014 opens today|
[26 November 2014] The 8th edition of Poultry India opens today and will continue until November 28 at HITEX Exhibition Centre in Hyderabad. It promises to offer new technology in breeding, feed milling, broiler & layer farming, equipment, health and nutrition, and processing from local and international suppliers. “Poultry India is a unique platform to display developments and thinking for the improvement of the industry and also attract ample trading and investment opportunities. The main aim is to help the industry players to keep abreast of the latest developments and practice in poultry production and management,” said the show organisers. Asian Agribiz is at booth number A20 promoting our market intelligence, conferences and skills development.
|CP considers buying back Tesco|
[26 November 2014] More than 15 years after selling out of a local supermarket chain to Tesco Plc, Dhanin Chearavanont, CEO and Chairman of Charoen Pokphand Group (CP), is considering buying back the business valued now at about USD 10 billion, sources told Reuters. Any bid would be made through Mr Dhanin’s CP Group, Tesco’s original partner two decades ago. Tesco spun off China operations this year to a separate joint venture and operates just in South Korea, Malaysia and India. Euromonitor International says Tesco ranks No 2 in Thailand behind Japan’s Seven & I Holdings Co Ltd.
|Corn prices likely to remain subdued in India|
[26 November 2014] Corn prices in the domestic market are likely to remain subdued this year due to abundant supply from the EU and the US. According to a report from USDA, the production of corn in the EU and the US is likely to be higher by 13.8% and 3.5% respectively. Production in India however, is estimated to decline by around 10% to 16 mt against 17.7 mt last year. “Global supply of corn has exceeded demand in the last four years,” said Raju Choksi, Vice President Agro-commodities of trading company Anil Nutrients. “India’s exports declined to 2.5 million tonnes in 2013-14 from 4.7 million tonnes a year ago as Indian exports were not viable due to higher prices,” he added.
|JBS eyes Asia with acquisition of Primo|
[26 November 2014] Brazilian food giant JBS, the world’s largest meat processor, has acquired Australia-based Primo Smallgoods. According to CEO Wesley Batista the acquisition is aligned with its strategy to expand high value-added products and brands into competitive regions such as Asia. With this USD 1.25 billion purchase, JBS aims to leverage Australia’s strong food-safety reputation to increase its presence in countries such as Singapore, Taiwan, China and Japan. “We have the conditions to double Primo’s production volume,” he said.
|Ekuinas may divest Burger King franchise|
[26 November 2014] Malaysia's Ekuinas Nasional Bhd is open to divesting its investments including its 74.1% stake in Cosmo Restaurants Sdn Bhd, the franchise holder of Burger King in Malaysia. The company also owns the franchise for Singapore under Burger King Singapore. Datuk Abdul Rahman Ahmad, Chief Executive Officer declined to comment on the current stage of negotiations with Brahim’s Holdings Bhd on the potential sale of its Burger King franchise.
|CP Indonesia gets loans worth USD400m|
[25 November 2014] Indonesia’s largest poultry company Charoen Pokphand Indonesia signed a syndicated loans agreement, worth the equivalent of USD 400 million, with 15 international and local financial institutions in Jakarta recently. The company said it will use the loans to secure funding needed for the company’s business expansion over the next few years as well as to support its working capital needs. Director Ong Mei Sian said the company expects 10% growth in sales to USD 2.3 billion at the end of this year, while total revenue reached USD 1.8 billion during the first nine months of the year. The company’s net profits stood at USD 140.5 million as of September this year, she added.
|Phillippines to establish halal economic zone|
[25 November 2014] The Philippines hopes to attract foreign investments by creating a halal economic zone in the country, Senen Perlada, Director of the Department of Trade and Industry’s Export Marketing Bureau said. This will also allow the Philippines to take advantage of opportunities in the growing global halal market. He said the government is considering the conversion of a part of the Zamboanga City Special Economic Zone into a halal ecozone, which will be a gateway to the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area, a region of over 57 million consumers. Mr Perlada also noted the need for an internationally recognised halal-certification agency in the country. Presently, the Islamic Da’wah Council of the Philippines is the only halal certifying organisation in the country that is a member of the World Halal Council.
|Vietnam's shrimp exports to hit USD 3.8 billion|
[25 November 2014] The Vietnam Association of Seafood Exporters and Processors forecasts shrimp export revenues of USD 3.8 billion this year as compared to USD 3 billion in 2013. According to the Ministry of Agriculture and Rural Development, 2014 will be a big year for Vietnam’s shrimp farming industry as output is expected to shoot up by 20.4% year-on-year to 660,000 tonnes. There are 676,000 hectares of shrimp-breeding ponds, an increase of 46.4% from the same period last year and 33.3% higher than targeted. The southern region accounts for 84.4% of Vietnam’s shrimp production.
|Indonesia’s cattle feedlot industry in stagnant mode|
[25 November 2014] Indonesia's cattle feedlot industry is currently in a difficult situation, said Joni Liano, Executive Director of the Indonesian Feedlot Association (Apfindo). “Global beef demand is increasing so supplies from cattle producing countries such as Australia, the US and Brazil are decreasing. China, Vietnam and other countries prefer to buy Australian cattle due to quality and competitive price. Demand has driven prices up,” Mr Joni explained to Asian Agribiz. “We have to compete with other countries to get live feeder cattle from Australia. But the selling price of beef in Indonesia cannot be increased because of limited purchasing power.” He predicted that the flat growth will continue into 2015. From January to October, members of Apfindo imported 500,000 heads of live feeder cattle from Australia.
DSM Aquaculture Conference Asia Pacific 2014, Bangkok, Thailand
Onsite report by CRAIGE ALLAN
[25 November 2014]
Update on current shrimp disease threats in Asia
According to Dr Timothy Flegel, Centex Shrimp, Mahidol University & BIOTEC, White Spot Syndrome virus (WSSV) and Yellow Head Virus (YHV) are still the most lethal pathogens for both vannamei and monodon. A new virus called Covert Mortality Nodavirus (CMNV) was recently reported from China, and has also been found in India and Thailand. CMNV has no distinctive gross signs of disease. Speaking of the Early Mortality Syndrome, he said its key diagnostic feature is Acute Hepatopancreatic Necrosis Disease (AHPND). The high prevalence of AHPND bacteria, including in broodstock indicates a biosecurity weakness in production systems. “I believe that APHND is a game-changer. It will force us to turn to more closed and biosecure culture systems,” said Dr Flegel.
Creating the perfectly coloured crustacean
Australian consumers have a preference for prawns which are a consistent, dark red colour, earning an AUD 3-4/kg premium. “The Australian market is almost exclusively monodon,” said Dr Nicholas Wade, Research Scientist, CSIRO. “Pigmentation in shrimp improves with increasing levels of carotenoids and there is strong evidence that the effects of carotenoids can extend beyond pigmentation at higher levels; including improved survival, growth, stress resistance and reproductive performance. Any changes in pre-harvest pigmentation are retained through freezer storage,” he noted.
Determining phytate P in raw materials
Based on analysis of a large number of plant raw materials, DSM has developed NIR calibrations to allow nutritionists to rapidly determine phytate levels. Our NIR results are highly correlated with wet chemistry results (R2 = 0.92), reported Dr Arne Korsbak, Market Development Manager, Feed Enzymes, DSM. “Due to the diversity of NIR instruments we can supply customers with a specific file correction for NIRS6500, XDS and DS2500 machines, for samples prepared to master specifications (particle size and temperature). For customers who do not have NIR, we have a phytate calculator, which will ensure that they have sufficient phytate levels in their diets to get the full benefit of Ronozyme enzymes”, he advised.
Feeding shrimp with biofloc
Widely known as “the father of biofloc”, Dr Yoram Avnimelech, Technion – Israel Institute of Technology, said biofloc is a relatively simple system. Intrinsic features of intensive ponds – high mixing, full aeration and very high concentrations of organic matter provide optimal conditions for a ‘microbial soup’ containing up to 1 billion organisms/mL. Shrimp retain about 30% of the nitrogen in feed, the remaining 70% is excreted. Biofloc is efficient at converting this nitrogenous waste to microbial protein. “Practically every bacteria in the world can do this, there is no need for special probiotics”, stated Dr Avnimelech. The bacterial biomass in biofloc contains about 61% crude protein, so it is possible to reduce feeding by up to 30%. The shrimp gut empties after about 1 hour, however, with biofloc systems shrimp are never hungry, they can eat whenever they need.
TPP and its impact on the global pig trade
[24 November 2014]
Around the world today, more trade agreements are being forged, liberalising markets to the advantage, and at times disadvantage, of its member-countries. The Trans-Pacific Partnership (TPP) is just one of these agreements, involving the US, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which together account for nearly 40% of global GDP. In September, hog farmers groups from Australia, Canada, Chile, Mexico and the US called for a “comprehensive, high-quality” agreement that eliminates tariffs on nearly all products, including pork. The Asian Agribiz team sought reactions from industry players in the region on this issue.
Vietnam sees TPP as a driving force
Vietnamese livestock operators see the TPP as a driving force, a strategic alliance that will propel the local swine industry to achieve better productivity and growth. “Vietnam sees the TPP as a boon because it accords the country the opportunity to become valuable trade partners with developed nations such as the US, Japan, Australia, New Zealand and Singapore. Vietnam can also approach new markets with lower import taxes,” said Dr Thanh Nguyen Tien, Technical Director for GreenFarm Asia Co Ltd, a subsidiary company of feedmiller GreenFeed Vietnam Corporation. Seen in this light the TPP offers Vietnam the opportunity for farmers to change and improve their farm management, product quality control and production cost. “It will force pig farmers and the swine industry as a whole to adapt to its rules and standards,” said Dr Thanh.
Impact to pig industry minimal if Indonesia joins
If Indonesia finally joins the TPP, the market liberalisation will have no big impact on the pig industry in the country, according to Phaithoon N Na Ayudhaya, Business Development Advisor of Charoen Pokphand Indonesia. “Indonesia’s FMD-free status is a strategic advantage and will serve as technical barrier for pork imports from TPP member countries that are not FMD-free,” he told Asian Agribiz. Besides, he added: “Pork is not a staple meat here since Muslims are a majority. Not to mention that people who consume pork here still prefer fresh warm meat sold in wet markets, while imported pork is usually in frozen form.”
Small farmers face uncertain future
Small swine farmers in Malaysia will face an uncertain future when the TPP is introduced. Their farming methods and the small scale of production may render them uncompetitive when the market is open, said Dr Cheang Heng Toon, General Manager of Chau Yang Farm, a subsidiary of Charoen Pokphand Foods (Malaysia) Sdn Bhd. “Malaysia is self-sufficient in all pork products but quality control in countries like the US is higher. Many small farmers in Malaysia are ignorant of the TPP and its effects. When the markets open the livelihood of these small farmers may be affected,” he said. Compared to 10 or 20 years ago the local industry has improved but, he said, small to mid-sized farmers have not gone all out and modernised their farms. “You need technology. You need to apply science in your farms or you will lose out.”
Tariffs still necessary to level playing field
Although not a member of the TPP, the Philippine government has expressed interest in joining the regional trade bloc. However, Pork Producers Federation of the Philippines President, Edwin Chen told Asian Agribiz that while such trade agreements “will force the local pig industry to be more competitive,” at this time the Philippines still needs to have some tariff on imported pork especially those coming from North and South America. Industry players pointed out that while local pig producers are already at par with their counterparts from other countries in terms of technical parameters, they remain burdened by high production costs. Mr Chen said if the government allows the entry of tariff-free pork, they will ask that it also allows the tariff-free entry of feed raw materials to help local players become cost competitive. He added that the government should provide more world-class slaughterhouses and processing facilities as well as develop the nautical highway to make logistics more competitive.
Indonesia shows little interest in TPP
Indonesia is not part of the TPP but local media report that the government is paying attention to the process and the possible results of the negotiation. However, it has no interest in being a part of the FTA. Yose Rizal Damuri, Head of Economics at Indonesia’s Centre for Strategic and International Studies, told local media that “it is not surprising that Indonesia shows little interest in the TPP. As a comprehensive and advanced trade agreement, the TPP covers many economic issues that are not in Indonesia interests. Joining the trade pact is expected to be costly to the economy and would likely reduce competitiveness even further.”
China, excluded from TPP talks, pushes rival plan
China promoted its own plan for a Free Trade Area of the Asia-Pacific (FTAAP) at the recent APEC summit in Beijing, while Chinese publications attacked the TPP as an effort to contain and control China. President Xi Jinping said he did not think TPP was targeting China, but TPP was attacked the next day in an article posted by Peoples Daily, the Communist Party’s official newspaper. “Washington still cherishes the wishful thinking that it is able to hammer out a US and Japan-led free trade system … and bend China’s will to their wishes,” said the article. It noted that China was already the largest trading partner for eight of the 12 countries involved in TPP talks, and said that a free trade area in the Asia-Pacific could not survive without China. APEC leaders agreed to begin studying China’s proposed FTAAP even as TPP negotiations continue.
|Betagro plans to set up Laos, Cambodia plants|
[21 November 2014] Betagro plans to establish pig farms and food processing plants in Laos and Cambodia to cater to address the Asean Economic Community scheduled to take effect at the end of 2015, said Athapol Uraipraiwan, Senior Vice President of the company. Betagro's planned plants in the two Indochina countries would become production bases for the company’s exports to the European and Japanese markets which are its major customers. Betagro projects meeting its USD 2.65 billion earnings target this year, with its business growing 10% in 2015, Mr Athapol added.
|Indonesia’s feed industry may only grow 10%|
[21 November 2014] The Indonesian Feed Millers Association has revised its growth estimate for the national feed industry from 12% to 10%. “We revised our prediction based on the first semester's performance,” Chairman Sudirman FX told Asian Agribiz. “Buying power of chicken and eggs this year is weak, partly due to currency depreciation. Besides, the government’s move to cut broiler DOC production affected the growth of the poultry industry,” he explained. Although the problems have affected the feed industry, Mr Sudirman believes that 10% growth is achievable. “Feed consumption this year may reach 15.2 million tonnes,” he said.
|Philippines pigs up, poultry down in the first nine months|
[21 November 2014] According to the Bureau of Agricultural Statistics ‘Performance of Philippines Agriculture January to September 2014’ report the livestock subsector which shared 16.1% in total agricultural production expanded by 1.05%. Pigs were the subsector’s source of growth. Gross earnings amounted to about USD 3.9 billion at current prices, a 6.1% increase from last year’s gross receipts. Production of the poultry subsector declined by about 0.7%. It accounted for 14.8% of the total agricultural output. Production increments were noted for chicken and duck while there was contraction in egg production. The subsector grossed around USD 3.1 billion at current prices or 7.6% more this year.
|Progress for Indonesia’s frozen poultry business|
[21 November 2014] Of the total broiler production of around 2 billion birds, only 17% is slaughtered in standardised slaughterhouses, according to the Indonesian Poultry Slaughterhouses Association (Arphuin). Of this, only 30% of the dressed birds and portioned cuts are sold in frozen form, with the rest sold in fresh chilled form. Arphuin Chairman, Achmad Dawami told Asian Agribiz that the frozen chicken business is growing. “Investment in slaughterhouses is increasing alongside investment in cold storage facilities,' he said. Mr Dawami is optimistic that the percentage of dressed birds and portioned cuts sold in frozen form could reach 40% in less than five years.
|Thailand on bird flu alert|
[21 November 2014] Thailand’s Ministry of Public Health has strengthened surveillance measures against the bird flu following reports about the latest outbreak of H5N8 in Netherland which led to the culling of 150,000 chickens. Permanent Secretary Narong Sahametapat said that current cooler weather in Thailand and movement of migratory birds in winter would raise the risk of disease spread. “The most important areas for surveillance are along the borders with Laos, Cambodia and Myanmar,” Dr Narong said. Thailand has remained bird flu-free since 2006.
|US to expand agri exports to Asean|
[21 November 2014] The US Department of Agriculture (USDA) said it is looking to expand its agriculture exports to Asia, particularly the Asean countries. In a statement, USDA Undersecretary Michael T. Scuse announced that he will lead a trade mission to Malaysia and the Philippines from March 9-14, 2015. While in Malaysia, the trade mission will also meet with buyers from Burma and Thailand. According to the USDA, Malaysia, the Philippines, Thailand and Burma together took in USD 5.4 billion of US agricultural products this year. Mr Scuse noted that growing income levels in the region coupled with increasing demand for US products presents market potential, adding that Malaysia is part of the Trans-Pacific Partnership negotiations that, once implemented, “will create new opportunities for US exporters.”
|Vietnam is largest shrimp supplier to South Korea|
[21 November 2014] In the first nine months of 2014, South Korean shrimp imports increased by 6.4% year-on-year in volume, and half of this came from Vietnam. From January to September 2014, South Korea imported 44,418 tonnes of shrimp, valued at USD 407.4 million, up 6.4% in volume and 44.5% in value, reported the Vietnam Association of Seafood Exporters and Processors. As imports from China plummeted and imports from Thailand fell sharply, Vietnam became the largest shrimp supplier to South Korea. Vietnam increased its market share from 33% last year to 44%.
|Meat processors and Horeca dominate frozen beef market|
[20 November 2014] Indonesia’s need for beef this year is estimated to reach 580,000 tonnes, according to data from the Ministry of Agriculture. The need will be met by local supply and frozen beef and live feeder cattle imports. Executive Director of the Indonesian Meat Importers Association, Thomas Sembiring told Asian Agribiz that the association this year can import up to 170,000 tonnes of frozen beef. “Around 50% of our total imports is for the meat processing industry, and around 45% for the Horeca (Hotels, restaurants and caterers) market.” Mr Thomas said imported frozen beef is preferred by the Horeca markets because of its quality and safety. Mr Thomas sees demand for imported frozen beef increasing.
|Importers advised to source DDGS from one plant |
[20 November 2014] One of the main complaints about DDGS is its inconsistency in nutrient content. On top of this, the latest report shows that more than 85% of ethanol producers are now extracting oil from DDGS because it offers good economic benefits. This reduces its energy content and feeding value. “You must get your matrix right, and then it is a good product,” said one participant at the US Grain Council’s roadshow on DDGS in Kuala Lumpur, Malaysia on Tuesday. Dr Budi Tangendjaja, Technical Director, US Grains Council, said there are 210 ethanol producers in the US and they practice different manufacturing processes. He said it is important to understand your source.” It would be ideal for feed producers to buy DDGS from one or a few plants so they will know its nutrient content,” he said.
|Thailand eyes Ayutthaya as chicken and egg hub for AEC|
[20 November 2014] Ayuttaya Provincial Livestock Office under Thailand's Department of Livestock Development plans to promote Ayuttaya as a center for broiler meat and egg production, to the markets in the Asean Economic Community. At present, Ayutthaya is the country’s major broiler farming area, housing more than 3 million birds and generates more than USD 51.8 million in income annually. Most farms in Ayutthaya practice the closed house system. Ayutthaya has easy access to the harbour and airport without passing through busy Bangkok as well as ample large cold stores.
|Halal test kit sells well following food integrity scandals|
[20 November 2014] French company Capital Biotech said it has received orders from as far as Indonesia for its Halal Test, which tests within 10 minutes whether a food item contains porcine ingredients. The company said it has received nearly USD 135,000 in orders. The one-use device costing USD 8.60 “allows you to dispel a one-off doubt, for example when you are on holiday or when a new halal product hits the market”, said Jean-Francois Julien, co-founder. To use the device, the diner mixes a small amount of food with hot water and inserts a small strip into the mixture. The strip tests for pork proteins and takes less than 10 minutes.
Asian Agribiz Regional Dairy Update
[20 November 2014]
Philippines dairy imports predicted to decline in 2014
The Philippines produced less than 1% of its total growing annual dairy of 1.886 million metric tonnes (liquid milk equivalent) in 2014, and continues to be a major global importer of dairy products, especially milk powder. Despite the continued rapid expansion of the food processing industry, persistent high prices in 2014 are expected to result in total annual imports dropping 7.5% to about 1.8 million tonnes (from 1.946 million tonnes in 2013). Dairy products are the country’s third largest agricultural import after wheat and soybean meal. Imports are expected to recover slightly to 1.9 million tonnes in 2015 as growth in local demand will likely continue to exceed any increases in domestic supply, predicts the USDA-FAS.
Indonesia’s daily milk production to reach 1.7ml
Indonesia’s milk production this year is estimated to reach 1.7 million litres/day on average, according to the Indonesian Milk Cooperatives Association (GKSI). Chairman Dedi Setiadi said that last year production was only 1.5 million litres/day, a 20% drop from 2012 due to the high price of beef that led dairy farmers to sell their cows. “However this year the situation is back to normal and heifer prices are around USD 820/head, so farmers have increased their cow population. Plus milk price has increased to USD 0.4/litre from USD 0.34,” said Mr Dedi. He said local production accounts only for 20% of the total demand and the rest is imported from New Zealand, Australia, the US and EU.
Japan's milk production to fall in 2014
Japanese milk production is projected to fall again in 2014, though a modest recovery is expected in 2015, according to the USDA-FAS. Dairy farmers continue their steady exit from the industry, without securing successors, resulting in fewer farms and lower milk production. At the beginning of 2014, there were a total of 18,600 dairy farms (down 4% year-on-year) raising a total of 1.395 million head of cows and heifers (nearly 2% lower). Japan’s 2014 national fluid milk production is projected to be around 7.315 million tonnes (down 3% on 2013), with milk for drinking at 3.915 million tonnes (down 2%) and milk for processing at 3.350 million tonnes (down 4%).
Australian dairy farm targets Chinese infant formula market
Australia's Hope Dairies, controlled by Hancock Prospecting, is seeking about 5,000 ha of farmland in Queensland, and is aiming to start production in the second half of 2016. The dairy farm, planned to be among Australia's biggest, may produce as much as 30,000 tonnes of formula a year. It will also supply UHT milk. “All the output is intended to be exported to China and the company will have investment partners including a Chinese entity”, said Jason Morrison, a spokesman for Gina Reinhart's Hancock Prospecting. Rinehart's planned operation would about 70 to 75% of its own milk from a herd of about 16,000 Holstein cattle.
Yakult Indonesia increases capacity to meet demand
Yakult Indonesia is planning a USD 25 million upgrade of its existing plant in Ngoro Industrial Park, East Java to increase production capacity, said Managing Director Indra Tjahjono. The plant currently has two machines with a production capacity up to 1.2 million bottles a day. Mr Indra said it plans to boost the Ngoro plant’s capacity to 4 million bottles a day in the next five years to meet rising demand. Production at the Ngoro plant will double to 2.4 million bottles in May 2015 with the addition of production facilities. Yakult Indonesia has another plant with a capacity of 3.6 million bottles a day in Sukabumi, West Java. Mr Indra revealed that it is also studying plans for a third plant in South Sulawesi or in Sumatra.
Dairy farmers to gain with China-Australia FTA
Under the FTA, finalised on 17th November, the 15% tariff on infant milk formula will be phased out within four years, while the 10% tariff on milk powder exports will be cut within 11 years. The FTA will also eliminate tariffs on cheese, butter and yoghurt within nine years, and ice cream, lactose, casein and milk albumins within four years. Liquid milk will be tariff-free within nine years. However, in the FTA with New Zealand, tariffs on liquid milk, cheese, butter and all milk powders can be reinstated if volumes breach a certain limit. Those rules won't apply for Australian products, with the exception of tariffs on whole milk powder.
|China lifts ban on Brazilian beef|
[19 November 2014] China has reopened its market to Brazilian beef following a two year ban after a BSE scare. Brazil's Agriculture Minister, Neri Geller described the reopening as a victory and an endorsement of the quality and safety of the animal and plant health protection system in Brazil. China bought USD 37.768 million worth of Brazilian beef in 2012. Brazil’s total beef exports to China doubled in 2013 despite the embargo, as Brazilian beef moved into the unofficial “grey channel” through Hong Kong. This announcement came soon after China and Australia endorsed a free trade agreement which abolishes tariffs on Australian exports to China, benefiting in particular beef. Minister Neri said he is not concerned by the agreement as he is confident of the Brazilian beef sector's capacity for supply.
|Ciomas enjoys good business in frozen chicken|
[19 November 2014] Ciomas Adisatwa, a subsidiary of Japfa Indonesia has seen demand for the company’s frozen whole carcass and boneless portioned cuts grow, Marketing Manager, Fenty Nirmala Aisah told Asian Agribiz. Ciomas’ frozen chicken is retailed through trader who distribute it to the Horeca [hotels, restaurants and caterers] sector, meat processors, retailers and in different regions in Indonesia. Ms Fenty said that demand for frozen chicken in the Jabodetabek [Jakarta, Bogor, Depok, Tangerang and Bekasi] region was lower than in outside Jabodetabek. “This is because there are many slaughterhouses located in and around Jabodetabek, so the preference is for fresh chilled.
|Two new H7N9 cases in China |
[19 November 2014] Hong Kong's Centre for Health Protection (CHP) has reported that a 54-year-old woman from China's Xinjiang Uygur Autonomous Region and a 45-year-old woman from Jiangsu province were diagnosed with H7N9 avian flu. The 54-year-old woman has died. There have been 443 human H7N9 cases in mainland China since February 2013, 58 in Jiangsu and four in Xinjiang, the CHP said. Apart from conducting thermal imaging at boundary control points and directing avian flu education at travellers and the travel industry, the CHP is encouraging people to avoid contact with birds.
|Preference for fresh beef|
[19 November 2014] Executive Director of the Indonesian Cattle Feedloters Association (Apfindo) Joni Liano told Asian Agribiz that imported live feeder cattle fattened for three months before slaughter are sold to slaughtermen who then sell the meat fresh. “Slaughtering is in the evening and the meat is distributed in the early morning to traditional markets and meatball sellers,” Mr Joni said. “However, some of our members have their own slaughterhouses. So they also sell their beef in fresh chilled form to hotels, restaurants and retailers.” According to Mr Joni, consumers prefer warm meat and this affects the growth of frozen beef demand.
|Livestock sector set to grow in Cambodia|
[19 November 2014] Although 90% of the livestock sector in Cambodia is managed by backyard farmers, Sen Sovann, Deputy Secretary General of the Ministry of Agriculture, Fisheries and Forestry said there is still great potential for growth. With a population of 16 million currently, meat consumption stands at 276,622 mt with a potential to grow to 314,028 mt in 2020 when the population is expected to grow to 17.7 million. Addressing delegates at Ildex Cambodia in Phnom Penh last week, Dr Sen said Cambodia exported 19,753 cattle to Vietnam, 22,989 pigs to Laos and 28,380 cattle (in transit from Thailand) to Vietnam in 2013.
|Biggest lobster farm in the world launched in Sabah|
[19 November 2014] Malaysia’s USD 1 billion Integrated Lobster Aquaculture Park, the world’s biggest lobster aquaculture park, is expected to produce 7% of the world’s supply of cold water and warm water lobsters. A joint venture between Darden Aquascience Sdn Bhd, Nexus Sustainable Seafood Sdn Bhd and Inno Fisheries Sdn Bhd, the project is located off the coast of Sabah, in Semporna. The park is located within a 9300ha area and will generate up to 18 million kg of hatchery-based tropical Sabah native spiny lobsters once it reaches maximum capacity in 2029.
|Asian millers caught short by surprise grain rally|
[18 November 2014] Feed millers in Asia have been hit by a surprise rally in the futures market over the past few weeks. Several millers in Indonesia, Vietnam and Thailand, have been ordering cargoes and locking in premiums they must pay over futures, but leaving that futures level to be fixed later. US soymeal futures jumped more than 30% in October, while corn gained almost 18%. “A lot of buyers in Asia have bought premium so they have the physical goods, but of course they haven’t priced their futures,” said a Singapore-based trader. Chairman of the Indonesian Feed Millers Association Sudirman FX told Asian Agribiz that corn prices are rising. “As of November 11, corns at CBOT were priced at USD 3.7/bushel. Soybean meal has risen from USD 310/short tonne to USD 370. Currency depreciation of 25% this year will also affect millers,” Mr Sudirman explained.
|Cambodia aims to reduce pig imports|
[18 November 2014] Cambodia's Department of Animal Health and Production (DAHP) is working towards increasing the country's cattle, pig and poultry production to meet local demand and reduce imports, particularly of pigs. Speaking to Asian Agribiz on the sidelines of Ildex Cambodia, Deputy Director of DAHP, Dr Ok Savin said up to 800 pigs are imported daily from Thailand and Vietnam to complement local supply of 3000-3500 pigs. “With the help of the EU we hope to improve the efficiency and competitiveness of livestock production in Cambodia," she said.
|US renews antidumping duties on Vietnamese fish|
[18 November 2014] Vietnam’s exports of tra and basa fish into the US will continue to be subject to anti-dumping tariffs for the next five years, authorities said. The US Department of Commerce said the revocation of the anti-dumping duty order could lead to the continuation or recurrence of underselling by up to 63.88% in the US market. The department instead will re-calculate the duties for affected Vietnamese exporters every year. Vietnam shipped USD 240 million worth of frozen tra and basa fillets into the US, Vietnam’s second-largest import market after Europe, in the first nine months of this year, a 17% decrease in value compared to the same period last year.
|Indonesia’s Centralpertiwi ships processed products to China|
[18 November 2014] Centralpertiwi Bahari, a subsidiary of CP Prima, recently shipped 23.53 tonnes of processed shrimp products to China for the first time. Assistant Vice President for Food Processing Samiono said the products that are under the Xia Bao brand include ebi fry, shrimp cutlet, shrimp nugget, shrimp roll and shrimp sticks. “The next shipment will be in early December. We are sure that our products will gain ground in China since we already have 30-year experience in foreign markets such as Japan, the US, Europe and Canada,” said Mr Samiono. Centralpertiwi Bahari is the first Gobal GAP certified aquaculture company in Indonesia.
|China, Australia seal major free trade deal|
[18 November 2014] Ministers from China and Australia signed a Declaration of Intent yesterday, which will see the scrapping of tariffs on Australian dairy products, beef and cattle, among others. The agreement will be signed in 2015 after the draft is translated and legally reviewed. Trade Minister Andrew Robb said the deal was the most significant China had ever signed with a developed country. The big winners are seen to be Australia’s dairy and beef industries, with dairy exports moving to a similar tariff reduction schedule as New Zealand. Beef exports, according to The Australian, are set to gain a multi-billion dollar boost. Parliamentary Secretary Josh Frydenberg said the agreement meant that “up to 95% of our exports over time will enter the Chinese market tariff-free”.
|Demand for safe meat drives growth in additives market|
[18 November 2014] The global market for animal feed additives is projected to reach USD 24.7 billion by 2020 driven by increasing per capita meat consumption and growing demand for safer and high quality meat, according to a Global Industry Analysts Inc report. Since the ban on antibiotics, livestock producers are seeking ways to promote animal production and deliver similar benefits offered by antibiotic growth promoters. This is fertile environment for the growth of feed additives such as acidifiers, enzymes, amino acids, probiotics, prebiotics, organic acids, as well as proprietary blends have emerged as potential alternatives. The report added that demand for amino acids is forecast to witness strong gains in developing markets.
|Indonesia may import 3.2mt corns this year|
[17 November 2014] The Indonesian Feed Millers Association has predicted that corn imports this year will be higher than last year. “From January to October, we imported some 2.6 million tonnes of corns. This may reach 3.2 million tonnes by end 2014,” Chairman Sudirman FX told Asian Agribiz. “Early this year we predicted that we will import less than year, since we were optimistic that national corn production will increase. However some natural calamities such as Kelud volcanic eruption in Java, Sinabung volcanic eruption in North Sumatera and also floods in Java affected corn harvests in those regions.”
|India should continue with non-GM soy |
[17 November 2014] India should continue with non-GM soybean in the interest of farmers and the environment, experts said. “Non-GM soybean is the pride of India. Value added soybean products including soybean meal are fetching premium price in the international market. It is a win-win situation for all stakeholders in the value chain,” Ruchi Soya Industries Managing Director Dinesh Shahra said. He added that soybean prices in India have always been higher than the US and above the Minimum Support Price announced by the government. So, Indian farmers are getting a reasonable realisation for non-GM soybean seeds produced by them.”
|Indonesia’s feed industry still promising|
[17 November 2014] Chairman of Indonesian Feed Millers Association Sudirman FX said the potential of feed industry in the country is still promising. “Our per capita consumption of chicken is only 8kg while eggs is only 90. The potential to increase is big. Companies such as Charoen Pokphand, Japfa and Malindo keep expanding. In Grobogan, Central Java for instance, there will be four feedmills. And then West Java will have three new feedmills. Sulawesi will also have more new feedmills since many millers are expanding their business to eastern Indonesia,” Mr Sudirman told Asian Agribiz. General Manager of CJ Superfeed Tevi Melviana also told Asian Agribiz that the company recently put its new feedmill in Lampung into operation. Malindo and New Hope will also set up feedmills in Lampung next year.
|Increase in cattle exports to Asia|
[17 November 2014] Live cattle export numbers from Western Australia rose by 56% to 305,000 head, driven by increased exports to Indonesia, Vietnam and Israel. Increased supply, however, may drive down prices, and this is worrying exporters. According to Southeast Asian Livestock Services Manager Dean Ryan, Indonesia led strong export numbers, but this may not be the case in 2015. “We have also had a large increase in the numbers exported to Vietnam.
|Murray Gouldburn pins hopes on Asia|
[17 November 2014] Australia’s largest dairy cooperative Murray Gouldburn will raise connectivity with markets outside Australia. “Until Australian companies like ours have our own people anchored in great bases like Singapore, China and Jakarta, living with them – understanding how they eat, what they want, we are not going to go very far,” Managing Director Gary Helou told participants at the Australian Farm Institute roundtable dinner in Melbourne. “We need a new mind-set in [these countries], a new footprint and a new food chain,” he said. He reiterated that innovation was at the forefront of the Murray Gouldburn vision and it was all about customising food for Asian consumers.
|Asia Pacific tops global aquafeed market|
[17 November 2014] Over the last two decades, the aquafeed industry has shown parallel growth to the aquaculture industry. Aquafeed is a demand-driven industry. There is growing expectation for aquaculture to meet the shortfall of aquatic products and to cater to the growing demand of the increasing population. The Asia Pacific market topped the revenue chart of the global aquafeed industry, accounting for around 76.1% and 75%, both by value and volume respectively, of the total market. The aquafeed market is expected to grow at CAGRs of 12.1% and 10.7% both by value and volume from 2014 to 2019, with the highest growth projected in the Asia-Pacific region. China is one of the major countries and also a leading producer of aquafeed.
|Itochu, Dalian Marine Fisheries boosts cold chain logistics|
[14 November 2014] In an effort to tap growing Asian perishable demand, Japanese logistics firm Itochu Logistics and Chinese fishing company Dalian Marine Fisheries Group have created a cold chain logistics service to serve China and eventually Southeast Asia. The service will be launched in 2015. China’s cold chain storage is concentrated on the coasts and near ports. The country still relies on refrigerated trucks to bring food and other perishables inland. According to the Global Cold Chain Alliance the global chilled and deli food markets will grow an average of 2.71% from 2012 to 2016, primarily because of the continued rise of the middle class in Asia.
|Avanti Feeds records strong Q2 results|
[14 November 2014] Avanti Feeds, a leading manufacturer of prawn and fish feeds and shrimp processor and exporter from India has reported a robust 84% year-on-year jump in standalone net profit at USD 5.6 million for the quarter ended September 30, 2014 (Q2), on the back of strong operational income. The company registered a profit of USD 3 million in the same quarter a year ago. Total income from operations for the quarter grew 74% to USD 86.4 million. Meanwhile, for the first half (April-September 2014) of the current financial year 2014-15, the company reported a net profit of USD 10 million. Avanti Feeds is the leading manufacturer of prawn and fish feeds and shrimp processor and exporter from India.
|China’s first inland checkpoint in Henan|
[14 November 2014] China’s General Administration of Quality Supervision, Inspection and Quarantine will establish a meat import inspection checkpoint in Luohe city, Henan province, the central China base of meat processor Shuanghui Group. Initially the centre will be used mainly by Shuanghui and is expected to be completed within four month. “In the future other meat companies could also use the checkpoint as long as they gain approval from Henan authorities,” said Dou Kai, General Manager of Shuanghui Import and Export Trade Company. The checkpoint will increase the efficiency of checking and quarantine of imported meat products in the province, helping to decrease costs.
|Thailand works hard to control hemorrhagic septicemia in cattle|
[14 November 2014] Cows and buffalos in five Thai provinces have been found to be infected with hemorrhagic septicemia. Ayuth Harintharanon, Deputy Director-General of the Department of Livestock Development (DLD), said the latest outbreak was in Chiang Rai province, north of Thailand, following outbreaks in Uthai Thani, Kanchanaburi, Tak and Nakhon Sawan. Some 250 cattle are sick and 32 have died. Smuggling of cows and buffalos from neighbouring countries is blamed for the outbreaks while the transition from the rainy season to winter may cause a further spread of the disease. Mr Ayuth said the DLD has sent its team out to treat, vaccinate and increase surveillance on transportation of cattle, disinfect high risk areas and destroy infected carcasses. The DLD hopes to put the brakes on the disease in 10 days from when it was discovered.
|H5N6 an emerging threat to poultry in East Asia|
[14 November 2014] Outbreaks of the highly pathogenic H5N6 avian influenza (HPAI) strain in Asian poultry may be an emerging public health threat, according to a November Empres Watch report from the UN Food and Agriculture Organisation (FAO). The H5N6 avian flu emerged in China in May. One man in China’s Sichuan province died of the virus on May 6 despite the disease being incapable of readily transmitting from birds to humans. A month later, the FAO identified 3434 poultry outbreaks of HPAI H5N6 in China, Laos, and Vietnam. FAO is conducting evaluation of poultry vaccines and diagnostic tests, and working with the US Agency for International Development to assist affected countries. The outbreaks are expected to rise as winter approaches.
|Vietnam hopes to maintain 5% tariff on ‘crucial’ items|
[14 November 2014] Vietnam is scheduled to apply zero import duties on more than 1700 tariff lines from the beginning of next year under the Asean trade pact. Starting January 1, 2015, Vietnam will have to slash the 5% import duty on 1720 tariff lines to 0% in compliance with the Asean Trade in Goods Agreement (ATIGA). Vietnam is given a flexibility condition to 2018 to zero import duties on ‘sensitive commodities’, said Nguyen Thi Bich, head of the International Cooperation Agency under the Vietnamese Ministry of Finance. “For products that are crucial to the country’s agriculture such as sugar, salt, pork, poultry, eggs and tropical fruits, Vietnam is negotiating to maintain import duties on them at 5%.” A zero import duty will allow Asean-made products to be sold at much cheaper prices in Vietnam.
|Teo Seng Capital records 56% y-o-y increase in 3Q 2014 net profits |
[13 November 2014] Teo Seng Capital Bhd’s net profit jumped 56% on year to USD 3.23 million from USD 0.97 million in its third quarter of financial year 2014 ended September 30. The better earnings were due to higher selling prices and lower feed costs. Revenue for the quarter has also risen 19.1% on year to USD 28.76 million. For the cumulative nine-month period of financial year 2014, net profit almost doubled to USD 9.21 million from USD 5.30 million in the year before, while revenue was up 12.8% to USD 81.68 million. In its 2013 annual report Chairman Lau Jui Peng noted: “By all accounts 2013 was an extraordinary year for Teo Seng Capital, and we are well positioned for continued growth and success in the subsequent year.” The company has eight of its farms accredited and granted export licence by Singapore’s Agri-Food and Veterinary Authority.
|Vietnam on track to become US’ largest supplier|
[13 November 2014] The American Chamber of Commerce said Vietnam will become the largest Asean supplier to the US by end 2014 – with a net export value of around USD 29.4 billion. This would be a historical achievement for a nation surrounded by supply giants. It added that Vietnam was likely to become the wealthiest Southeast Asian country in terms of trade. Additional statistics indicate that bilateral trade with the US will surge to USD 57 billion by 2020, cementing Vietnam’s prominence as a valuable hub for foreign investment and trade. Seafood, agriculture and garment are the nation’s top exports. According to Tran Thien Hai, Chairman of the Vietnam Association of Seafood Exporters and Processors, shrimp exports to the US increased 51.2% annually, reaching USD 820 million. Vietnam is now the third-largest shrimp exporter to the US, behind Indonesia and India.
|New president targets food self sufficiency|
[13 November 2014] Indonesia's new President Joko Widodo said he wanted the Southeast Asian nation to be self-sufficient in various food staples within five years. With a rising population of more than 240 million, Indonesia's food imports fluctuate each year as eating habits change or to offset potential food inflation risks. Indonesia will aim for self-sustainability in beef within one year, while targeting three years for rice, soybeans and corn, and four or five years for sugar, Mr Widodo said at a business conference. He did not give details on how that would be achieved. Even before being sworn in Mr Widodo had previously said he wanted the country to be self-sufficient in sugar, rice and corn within four years. To help the agriculture sector, which accounts for about 15% of GDP in Southeast Asia’s largest economy, Mr Widodo said that the construction of 11 new reservoirs would begin next year, with the aim of building 25-30 within five years.
|FAO backs farm input subsidies|
[13 November 2014] Investing in crop insurance and input subsidies, not price intervention schemes, is the way to support Thai farmers, the United Nations Food and Agriculture Organisation (FAO) said. Hiroyuki Konuma, FAO Assistant Director-General and Regional Representative for Asia and the Pacific, said providing input subsidies will encourage farmers to grow more food at lower costs, while crop insurance will protect them in case natural disasters destroy their produce. Mr Konuma told a UN Model Conference on Food Loss and Food Waste in Southeast Asia that this was a ‘much healthier way’ of helping farmers. He said support for the sector will prove increasingly important as food security is not guaranteed. By 2050, a 60% increase in global food production will be needed – rising to 77% in developing countries – to keep supplies high. “If we are to reduce poverty the best solution is to support small-scale agriculture and family-farming.”
|Taiwan to inspect processed meats in markets, steakhouses|
[13 November 2014] Taiwanese health department are now reintroducing inspections on processed meat in night markets and steakhouses to see if their products are labelled correctly. According to the authorities few restaurants properly label their processed meat products. Since these products need to be cooked thoroughly the fear is that many consumers may be getting undercooked meat. Also many consumers are unaware that they are being served processed meat taking them instead for a real cut of steak. The proposed amendment will force restaurants to mark their meat products correctly and to tell the consumers if they are using processed meat instead of original cuts.
|Malaysia develops halal contamination scene investigation|
[13 November 2014] Scientists in Malaysia have created the world’s first Halal Contamination Scene Investigation unit to test the existence of pork DNA and track sources of condemnation in halal food. “The unit is trained to conduct a thorough investigation to find out the source of the contamination, whether it was by sabotage, a problem in the formulation process or whether it was contaminated post-production,” Nor Amin Mohd Noor, Malaysian Technological Park (TPM) Biotech Manager, said. Tracing the source of confirmation may require searching outside the factory, starting with the methods of transportation of the products. The investigations may also include checking the packaging and storage process of the product. As the demand for halal products increased in several countries, TPM’s halal services have been extended to Korea, Brunei and China, he said.
|Philippine corn farmers seek removal of export restriction|
[12 November 2014] Philippine corn farmers once again called on the government to remove export restrictions on corn after the Philippine Department of Agriculture said the country has met its corn self-sufficiency target last year. Philippine Maize Federation Inc President Roger Navarro said his group has formalised their request with the National Food Authority, which must issue a certification on self-sufficiency before corn can be exported, however, there is no approval yet. He said, considering that other countries can freely export their corn into the Philippines, local corn farmers should also be allowed to export their corn with restrictions.
|Thai corn price down on ample supply|
[12 November 2014] The price of corn in Thailand dropped to around USD 0.22/kg, a decrease of 2.52% from around USD 0.23/kg in June due to ample supply flooding the market this peak harvesting season, said Lersak Riewtrakulpaibul, Secretary General of the Office of Agricultural Economics. Also, the recent spell of rain has given rise to corn quality issues. Mycotoxins, such as aflatoxin, have developed quickly, and livestock operators are putting off the purchase of the commodity for stocking, Mr Lersak said. Thailand is expected to produce around 5.01 million tonnes of corn in the 2014/2015 crop year while demand of corn for animal feed is predicted at 5 million tonnes for this year, up 5.93% from 4.72 million tons in 2013.
|Aussie beef producer CPC eyes opportunities in Asia|
[12 November 2014] Australia’s largest privately-owned beef producer Consolidated Pastoral Company (CPC) expects more than half its revenue to come from Asia within two years as it pursues partnership opportunities in China, Indonesia and new markets such as Vietnam. CPC holds a 50% interest in a joint venture that owns and operates two cattle feedlots in Indonesia and a partnership in China. According to Troy Setter, Chief Executive, the company was expanding one of the feedlots in Indonesia and was on the lookout for joint-venture partners in China. “We plan to build off our Indonesia and Chinese businesses. The Asian business now represents 40% of revenues. I think we will see that at least half of our revenue will come from Indonesia and greater Asia in the next couple of years.”
|India should continue with non-GM soybean, said experts|
[12 November 2014] India should continue with non-GM soybean in the larger interest of farmers and the environment, experts said. “Non-GM soybean is the pride of India. Value-added soybean products including soybean meal are fetching premium price in the international market for being authentic non-GM soybean products. It is a win-win situation for all stakeholders in the value chain,” Dinesh Shahra, Ruchi Soya Industries Managing Director, said. President of Soy Food Promotion and Welfare Association added: “It is observed that soybean prices in India have always been higher than the US and also much above the Minimum Support Price announced by the government of India. Thus Indian farmers are getting reasonable realisation for the non-GM soybean seeds produced by them.”
|Indonesia, Vietnam drive WA cattle exports up by 56%|
[12 November 2014] Live cattle export numbers from Western Australia (WA) rose by 56% to 305,000 head, driven by increased exports to Indonesia, Vietnam and Israel. Increased supply, however, may drive down prices, and this is worrying exporters. According to Southeast Asian Livestock Services Manager Dean Ryan Indonesia was the main influence on the strong export numbers, but he is concerned the statistics may not replicate in 2015. “It’s mainly because Indonesian import permits have increased," Mr Ryan said. “We have also had a large increase in the numbers exported to Vietnam. I would forsee that the Vietnamese trade will continue in 2015, but I am a bit concerned about Indonesia. There is some price resistance in Indonesia, with the larger numbers of cattle that have gone out, the prices have increased dramatically in Australia.”
|Walmart aims to boost profitability in its China stores|
[12 November 2014] Walmart Stores is focusing on food safety as the world’s largest retailer aims to boost profitability of its more than 400 stores in China, Scott Price, Chief Executive, told Reuters. “We play a very important role in China delivering food safety and quality products to our customers,” Mr Price said. Walmart has experienced “a few bumps around the road” said Mr Price. China was the only market of Walmart’s five largest ones that saw falling same-store sales in the second quarter, down 1.6% from the year-earlier period. He said the company would “continue to invest very aggressively” with a focus on food quality and safety to push up traffic to its Chinese stores.
|Itochu & CP agree to food tie-up|
[11 November 2014] Itochu Corporation, Japan’s third-largest trading company has agreed to a business tie-up with Thailand's Charoen Pokphand Group as the two companies seek to expand food supply in Asia. Itochu will buy a USD 852 million stake in Hong Kong-based unit CP Pokphand Co. and the Thai company will take USD 1 billion of Itochu’s stock, the companies said in separate statements. The cross shareholdings will help the two boost sales and cut the cost of buying raw materials as well as reducing asset running costs. Itochu President, Masahiro Okafuji in an interview with Nikkei Asian Review said “one idea is to build a distribution network for frozen and refrigerated food in China and elsewhere. We also want to utilise CP’s business model to access markets in Myanmar and India.”
|Indonesia’s corn, soy production predicted higher than last year |
[11 November 2014] Indonesia’s Statistics Agency predicted that corn production this year will reach 19.13 million tonnes, or an increase of 3.33% from the previous year. The agency stated that the production increase is based on harvest area and productivity increase. “South Sulawesi, West Nusa Tenggara, Central Java, Gorontalo and Lampung will score high production,” said the agency. Soybean production, meanwhile, is predicted to increase by 921,340 tonnes, or an increase of 18.12% from the previous year. West Java, Central Java, Aceh, South Sulawesi and Lampung will remain as the main production centres of soybean in the country.
|KFC Box, a new outlet concept in Indonesia|
[11 November 2014] Currency depreciation has pushed the operator of the KFC chain in Indonesia PT Fast Food Indonesia (FFI) to develop a cheaper new outlet concept called KFC Box. The first one is in Manggarai, Jakarta. “In terms of size, KFC Box is smaller than regular KFC outlets. One KFC Box only cost us around USD 132,000, while investment for the regular outlet is 2.5 times higher than the KFC Box. This will help us expand this business,” said Director Justinus D Juwono. The company plans to add two new KFC Box outlets in Jakarta by December, and 20 outlets in 2015.
|China close to finalising beef deal with Australia|
[11 November 2014] One million Australian cattle worth up to USD 1 billion are set to be exported to China each year, under a new trade deal being finalised between the two countries, reported ABC Radio Australia. The size of the deal would amount to a doubling of Australia's existing live cattle exports. The Australian Government said the cattle deal was not linked to long-running Free Trade Agreement (FTA) talks between Australia and China. China took more than 78,000 head of dairy cattle and about 15,000 beef cattle last financial year.
|Trans Food to open five new Wendy’s outlets|
[11 November 2014] CT Corp Group’s subsidiary Trans Food & Beverage, operator of US-based Wendy’s QSR chain, plans to open five new Wendy’s outlets early next year. President Director Fransiscus Sumampow said the new outlets will be set up in tier 2 and 3 cities namely Malang (East Java), Palembang (South Sumatera), Yogyakarta, Balikpapan (East Kalimantan) and Medan (North Sumatera). “We chose the locations as it’s not easy to find good locations in tier 1 cities, apart from the competition,” Mr Fransiscus revealed. He added that one new outlet will cost the company around USD 247,000.
|India to boost fish production|
[11 November 2014] Agriculture Minister Radhamohan Singh has said that the government is all set to launch the ‘blue revolution’ on the lines of the ‘white revolution’ which played a big role in increasing milk production in the country. The Blue Revolution envisages transformation of the fisheries sector with increased investment, better training and development of infrastructure. “India is the second largest producer of fish but scores low on productivity," said Mr Singh. Output in the country is presently about 10 million tonnes, with inland fisheries accounting for 5.6 million tonnes and marine fisheries 3.4 million tonnes. “India has large natural resources, and water bodies such as reservoirs, lakes and ponds, in addition to an 8,118km-long coastline. So it is well positioned for a Blue Revolution,” he added.
|Indonesia renews plans for beef self-sufficiency|
[10 November 2014] Indonesia’s new President Joko Widodo told media last week he wants the nation to be self-sufficient in beef within five years. According to Meat & Livestock Australia, Australian live cattle exports to Indonesia from January to September increased 115% year-on-year, to 532,998 head. Beef was introduced into Indonesia’s self-sufficiency plan in 1999, with the first plan aiming to achieve self-sufficiency by 2005. Self-sufficiency is going to be difficult to achieve, as the vast majority of beef producers have only one or two head of cattle that is sold for slaughter when money is needed for special occasions.
|US approves cooked poultry exports from China|
[10 November 2014] The US Food Safety and Inspection Service (FSIS) has officially approved four Chinese poultry processing plants to export cooked poultry products to the US. The four plants are: Shandong Delicate Food; Weifang Legang Food Plant No. 2; Qingyun Ruifeng Food; and Qingdao Nine-Alliance Group, Changguang Plant. FSIS inspected the plants in March 2013 and determined that China’s processed poultry inspection system is equivalent to that of the US. Experts consulted by Asian Agribiz said they did not expect high export volumes because US production costs are currently lower than China's. The FSIS also said it would re-inspect processed chicken from China when it arrived in the US, which may lead to delays and higher costs for importers.
|CPF reports 57% Q3 profit jump |
[10 November 2014] Charoen Pokphand Foods (CPF), Thailand's largest meat and animal feed producer, reported third-quarter net profit up 57% year on year, largely thanks to higher chicken prices and improved performance by its foreign operations. CPF achieved a net profit of USD 126.7 million in the three months to September 30. Third-quarter sales rose 7% year-on-year to about USD 3.4 billion, CPF said in a statement. Domestic chicken prices are expected to remain high until the first half of next year because of tight supply and rising demand for exports to Japan and Russia, analysts said.
|Vasep predicts seafood exports to climb this year|
[10 November 2014] The Vietnam Seafood Exporters and Producers (Vasep) expects total seafood exports in 2014 to be worth about USD 7.7 billion, due to high demand by the end of the year. Nguyen Hoai Nam, Deputy General Secretary of Vasep, said since the beginning of this year, the nation has exported seafood worth an average of USD 644 million/month. This is based on the General Department of Customs' statistics of USD 5.8 billion of seafood exports during the first nine months of this year, reported the Hai Quan newspaper. Last year, the total export value of seafood reached USD 6.7 billion, higher than the target of USD 6.5 billion. Vasep hopes for success again this year, he said, adding that it will be primarily due to the high export value of shrimp, which contributes 50% to the total export value of seafood products.
|Top three poultry diseases in Indonesia|
[10 November 2014] Based on field cases monitored by Romindo Primavetcom from January to October 2014, infectious bronchitis (IB) Qx strain topped poultry diseases in Indonesia. Technical Department Manager, Dr Antonius Sigit Pambudi told Asian Agribiz that the cases found in egg production centres in Java and Sumatera caused egg production to decline by 20%. The second was Newcastle disease (ND). “Our technical staff found the disease in layers, broilers and some breeders,” said Dr Sigit. The third was mycotoxicosis.
|China to send inspection team to Ireland|
[10 November 2014] China has agreed to send its inspection team to audit systems and beef plants in Ireland in December. Obtaining the green light from China to move to this stage represents an important milestone for Ireland. According to Simon Coveney, Minister for Agriculture, Food and the Marine, “with growing Chinese demand for high quality meat, Irish producers are well placed to take advantage of the market opportunity”. He said demand for beef in China is expected to rise by 1 million tonnes over the next five years.
|Growing potential for probiotics use in animal feed|
[07 November 2014] Poultry farmers regularly treat their birds with antibiotics to prevent the development of intestinal infections. But, with concerns over the development of antibiotic-resistant bacteria, some farms are keen on introducing probiotics. “This is going to be the future but farmers must be able to see two things – the costs effectiveness and the benefits. Can I sell my chicken at a higher price?” asked Dr Chia Tet Fatt, Director of Otemchi Biotechnologies. He told Asian Agribiz that Otemchi is already exporting its probiotics product Lactopac to three countries. “We have selected the lactobacilli strain from Malaysia and Singapore. The strains found in the tropics are more severe. This makes them more potent. We isolate, purify and test the strain.” Lactobacillus are naturally found throughout the world in plants, soil, animals, water and air.
|ND still dominant in Asia|
[07 November 2014] Monitoring poultry diseases in Asia, Dr Teguh Prajitno, President Director of Japfa Group’s subsidiary Vaksindo, said Newcastle disease (ND) cases are still dominant in most countries in Asia. “In China and Korea, infectious bronchitis [IB] is more dominant,” he told Asian Agribiz. In Indonesia, ND and IB are in the list of top three poultry diseases. Compared with the previous year, ND and IB cases this year seem to be at the same rate, while avian influenza cases show a decreasing trend, according to Dr Teguh. “Our field team also found some cases of mycotoxicosis in commercial broilers and layers with slow growth in clinical sign. We estimate this is due to poor quality of raw materials and poor feed storage management.”
|US red meat set for record exports|
[07 November 2014] US exports of beef and pork should set a record this year, with a combined total value of USD 13 billion, Mark Jagels, Chairman of the US Meat Export Federation said. Joel Haggard, the federation's Senior Vice President for Asia Pacific said the US has been able to keep pork export volumes to Asia steady. However, with Europe increasing its exports to the region, US market share is declining. “China’s pork sector continues to modernise,” he added. China’s pork production is up 3%, causing some softness in global pork trade, considering the nation is the largest pork importer in the world. For US beef, “we see record values for some cuts going to Japan, Korea, Taiwan and Hong Kong,” Mr Haggard said, noting that China has also become the world’s largest beef importer.
|Japfa sees profit slump|
[07 November 2014] Japfa has reported a steep fall in profits in the third quarter of 2014 due to surging costs and declining purchasing power. Its net sales were up by around 17% to USD 1.57 billion in the January-September period, compared to the same period last year. Still, net profits were slashed by more than half. “In the second half of 2013, the rupiah depreciated by approximately 20% against the US dollar. The increase in general wages in 2014 was not enough to compensate for the impact of the weaker rupiah. This has weakened the purchasing power of low-income consumers,” the company statement said. The poultry business contributed around 86% of the company’s annual sales last year. Animal feed contributed 44%, commercial farming 35% and DOCs 7%. Japfa said it had increased its selling prices to mitigate the losses from its animal-feed segment.
|Forum facilitates Indonesia’s shrimp exports to US|
[07 November 2014] Indonesia’s Ministry of Trade recently facilitated a trade forum between Indonesia’s Trade Promotion Centre and its counterparts in the US. One result of the trade forum was the signing of an MoU between Indonesia’s shrimp exporter Indokom Samudera Perkasa and a US shrimp importer Central Seaway Company Inc with a value of USD 5 million. “Through the forum, potential buyers can easily find professional and reliable shrimp exporters from Indonesia,” said Trade Minister Rachmat Gobel. Based on Indonesia’s Ministry of Trade data, from January to July 2014 export value of frozen shrimp to the US reached USD 518.3 million, or an increase of 65.09% from the previous year.
|Government to inspect processed meat in Taiwan|
[07 November 2014] Taiwanese lawmakers are coming down hard on traders including restaurant owners selling processed meats to ensure that their products are labelled correctly. According to Kuomintang lawmakers, they fear that many consumers may be getting undercooked meat. Also there is concern that consumers may be unaware that they are being served processed meat. Considering the cost of a real cut of steak, it is questionable for all-you-can-eat barbecue restaurants to launch the USD 22.96/person sets so commonly seen around the nation. Lawmakers plan to propose an amendment to force restaurants to mark their meat products correctly and to tell consumers if they are using processed meat instead of original cuts.
|Vaksindo shifting focus to bacterial vaccine|
[06 November 2014] Vaksindo, a subsidiary of Japfa Group involved in animal vaccine production, is shifting its focus from viral vaccines to bacterial vaccines. President Director, Dr Teguh Prajitno told Asian Agribiz that this does not mean that viral diseases are no longer a concern. "We still produce viral poultry vaccines from local isolates. But we found that there is a need for bacterial vaccines.” Recently Vaksindo launched a Coryza vaccine. This tetravalent vaccine, according to Dr Teguh, also contains B and C strains from local isolates for better protection against Coryza. In the near future, Vaksindo plans to launch vaccines for E. coli and Clostridium. “This year we found that necrotic enteritis [NE] in breeders was rampant. So we think that a vaccine to control Clostridium is needed,” Dr Teguh said.
|Robust exports to boost GFPT revenue in 2014|
[06 November 2014] Robust export growth is expected to boost sales of GPFT by 8-10% this year, Investor Relations Manager Jutamas Ingpochai said. The company’s exports in the first half of the year grew 15%, with the Japanese market being the main contributor to the expansion while the European market remained a major player. In 2013, GFPT sales revenue was USD 526.4 million. Analysts at DBS Vickers Securities (Thailand) rated GFPT shares as a top pick and forecast an operating profit of 28% in 2014 and 11% in 2015.
|Shanghai bans winter live poultry sales|
[06 November 2014] Shanghai will again ban live poultry sales next year from January 1 to April 30, the height of the bird flu season. The move, for the second year in a row, worries poultry traders because last year’s closing caused wide swings in demand, according to China Animal Husbandry Network. Live traders face four months of overhead with no business, while chilled poultry traders say demand for their product falls 30% when live trading resumes. Nevertheless the city of Nanjing, capital of adjacent Jiangsu Province, is expected to follow Shanghai’s example.
|Russia establishes imports from India and South Korea|
[06 November 2014] In a new initiative, Russian veterinary watchdog Rosselkhoznadzor plans to allow meat imports from India and South Korea. "Rosselkhoznadzor is ready to explore the possibility of safe pork supply from other countries in Asia, particularly South Korea, and India," said a statement from the veterinary body. Supplies of pork from South Korea were restricted from February 2010, in response to an outbreak of food-and-mouth-disease in the country. Russia has already allowed imports of buffalo meat from India, while imports of pork and other meat products will be adopted in two steps. "The veterinary service will continue the certification of companies, and soon we will come to producers of poultry, egg powder and dairy goods," said Alexei Likhachev, Russian deputy economic development minister.
|Chinese poultry production to remain flat|
[06 November 2014] Chinese consumers have yet to regain confidence in the safety of domestic broiler production after a series of scandals and outbreaks of "bird flu", and as a result production will remain flat at 13 million tonnes in 2015, according to the USDA’s annual report on China’s poultry market. China’s higher feed costs will also limit production, the USDA report said. Imports were forecast to fall 2% to 235,000 tonnes in 2015, while exports were expected to rise 5% to 460,000 tonnes due largely to robust demand in Malaysia and Japan.
|Vietnam sees growing demand for Australian cattle|
[06 November 2014] Imports of meat and livestock products will continue especially after Vietnam has joined the TPP, according the Tuoi Tre News service. Vietnam has surpassed China (90,000 live cattle in 2014) to become the second-largest importer of Australian cattle, behind only Indonesia, with shipments tipped to double to 130,000 head, according to Vietnamese and Australian meat traders. In 2013, Vietnam imported almost 67,000 cattle from Australia, but this has risen by more than 90% to 120,000 head in the first seven months and is projected to reach 130,000 by year's end. Meat and Livestock Australia said the growth is forecast to level out and an 8% decline in cattle exports to Vietnam is predicted for 2015. But the MLA, in a recent trade update, said expected demand to Vietnam was likely "to remain robust over the coming years, given the reported depletion of the national cattle herd and strong beef demand in the region".
|Evonik commissions new methionine complex in Singapore|
[05 November 2014] Global amino acids supplier Evonik yesterday commissioned its new methionine complex located in Jurong Island, Singapore. The plant has an annual capacity of 150,000 tonnes, bringing Evonik’s methionine [DL-methionine] capacity worldwide up to 580,000 tonnes. CEO Dr Klaus Engel revealed that the plant is the largest single investment to date for Evonik of over USD 627 million. “It is also the first world-scale methionine plant in the fast-growing Asian market,” he claimed. Head of Health & Nutrition Business Unit, Dr Reiner Beste ensured that: “With the new plant, we are able to offer our customers in Asia maximum security of supply.” Dr Beste added that progress in feed technology, rapid population growth and rising consumption of meat and eggs in the region are fueling Asia’s high methionine demand.
|Otemchi Biotech to raise production |
[05 November 2014] Singapore-based premix company Otemchi Biotechnologies Pte Ltd hopes to increase production to 200 tonnes/month from the current 20 tonnes/month after its new production plant in Malaysia’s southern state of Johor opens mid-2015. Dr Chia Tet Fatt, Director of Otemchi Biotechnologies, told Asian Agribiz, that with economies of scale, the price of Lactopac pre and probiotics will come down. “Removing antibiotics from animal feed is imminent. Even now the price is feasible if farmers sell their birds at a premium of 20-30%. Lactopac will not be as cheap as antibiotics but it will be feasible for farmers,” he said. Lactopac, sold in bags of 1kg, is given at an inclusion rate of less than 0.6%.
|New bird flu case in China |
[05 November 2014] Hong Kong's Department of Health (DH) reported that a 58-year-old woman in China's Jiangsu province has H7N9 avian flu and has been hospitalized in critical care. This brings the total number of cases in mainland China to 441 since the reports of H7N9 avian flu in humans began in February 2013. Of the total, 57 were in Jiangsu province. The DH has encouraged people to avoid live-poultry markets and farms, completely cook eggs and poultry before eating them, wash hands often and wear a mask if respiratory symptoms develop.
ASIAN AGRIBIZ REGIONAL DAIRY UPDATE
[05 November 2014]
Tamil Nadu increases retail prices of toned milk
At a time when an increase in power tariff is looming large, India’s Tamil Nadu government increased the prices of all toned milk (treated buffalo milk) varieties by USD 0.16/litre. The hike took effect on November 1. The retail price of toned milk, will go up by 40% to USD 0.55. Chief Minister O Panneerselvam said the procurement prices of cow and buffalo milk would also go up by USD 0.08 and USD 0.06 a litre, respectively. Mr Panneerselvam said the increase in the retail prices was meant to recover the rise in the procurement prices and the cost of processing. “The increase in the procurement prices would benefit 22.5 million milk producers.”
Indonesia, milk production in 2014 forecast to be stable
In 2014, total Indonesian production of fluid milk is expected to remain stable. Although there was a massive decline in small-holder cattle population in 2013, medium and large-scale farms continued to expand. Indonesian fresh milk production is expected to reach 1.68 million litres/day. In 2015, Indonesian fresh milk production levels are expected to increase 1.2% to 1.7 million litres/day. According to the Indonesian National Statistics Agency’s (BPS) the high level of dairy cattle culling in 2013caused the Indonesian dairy cattle population to decline to 395,000 head in 2014.
Philippines, first half dairy production up
The Philippines dairy production industry was expected to earn around USD 6.9 million in sales in the first half of the year growing a modest 5.6%, but is now on track to reach about 13.4 million by year end. Production in the first half reached 9,910 tonnes, up by 3.2% compared with the same period last year. Production comes from an estimated 9,608 cattle, 8,501 carabao, and 2,978 goats. The local dairy production comes mainly from cow’s milk, 65%; carabao milk, 32%; and goat’s milk, 3%. However, despite the growth in liquid milk production, the country remains to be an insignificant producer of its own dairy needs, importing about USD857 million of dairy products in 2013.
Nestlé opens Dairy Farming Institute in China
Nestlé officially opened a 60 hectare Dairy Farming Institute (DFI) in Shuangcheng, in Heilongjiang Province, China in October. Established to support the rapid development of dairy farming in China, the institute will serve the entire industry and will teach dairy professionals and other students about all aspects of modern dairy farming - thus helping Chinese dairy farmers secure a viable future. SCR Engineers Ltd was chosen by Nestlé to lead the cow monitoring and welfare aspects of the DFI, reflecting SCR's strengths as the world-leading pioneer of Cow and Milking Intelligence and its proven experience in large-scale Chinese dairy farms. Alltech is partnering with Nestlé to provide an in-vitro fermentation model, a diagnostic tool that simulates rumen fermentation and evaluates the nutritive value of total mixed rations.
Mahindra Agribusiness enters dairy segment
Mahindra Agribusiness, a subsidiary of home-grown auto major Mahindra & Mahindra, is planning to enter the dairy industry by focusing on production of pouched milk and is scouting for an acquisition in this space. The company will enter two verticals this year – dairy and pulses, and will focus on entering two other verticals next year.
|Vaksindo setting up new animal vaccine plant|
[04 November 2014] Vaksindo, a subsidiary of Japfa Comfeed Indonesia involved in animal vaccine production, is setting up a new plant in West Java, aimed at meeting increasing demand from domestic and international markets. “Our existing plant in Wanaherang, West Java is running at full capacity at the moment,” President Director, Dr Teguh Prajitno told Asian Agribiz. The new plant including modern equipment and facilities will cost the company around USD 8.3 million and is targeted to be operational in 2015. “All live vaccines and Gumboro vaccines will be produced at the new plant. The old plant, meanwhile, will be focused on producing killed vaccines and avian influenza vaccines,” said Dr Teguh.
|Corn, DDGS and freight prices up|
[04 November 2014] US corn prices on the CBOT were up by over 6% for the three contracts in December, March and May. Meanwhile, DDGS prices in the US continue to move up as domestic and international demand is high. FOB US Gulf prices were up by USD 8 against last week and were indicated at USD 194/MT. International freight rates were up against last week for some locations and this has added pressure to imported grain prices, said Amit Sachdev, India Representative, U S Grains Council.
|Red Star ready to develop beef supply chain|
[04 November 2014] Vietnam’s Red Star Company, an integrated farming facility that includes a feedlot, an abattoir and 1500ha of farmland to grow feed for cattle, is ready to start processing its first consignment of Australian cattle. Dean Ryan, from exporting company South East Asian Livestock Services, hopes it’s the start of a strong supply chain. "They’ve got a beautiful feedlot facility that’s quite mechanised and they obviously want to spread out their sales program over a period of time and optimise the price they could get.” Vietnam has become a major customer for Australian cattle and in the 2013/14 financial year imported a record 131,000 head of cattle.
|India's vannamei production could hit 500,000 tonnes|
[04 November 2014] With an increase in vannamei production, as many as 15 new shrimp processing plants are being planned or built in India’s Andhra Pradesh state, reported Undercurrent News. A new USD 10 million plant is being trialled currently. “In 2014, I think we will hit a production level of 350,000 tonnes. For 2015, this could be 500,000 tonnes, if all goes well,” said Marimuthu Sudhakaran, a farm and hatchery operator expanding into processing. “Currently, during peak production from May-July, there isn't enough processing capacity to go through all the raw material. We need more processing and that is coming. There are 10-15 plants being built or planned in Andhra Pradesh alone,” he said.
|Vietnam sees an increase in canned food imports|
[04 November 2014] Vietnam has seen a rapid increase in canned food imports mainly from Thailand, Malaysia, the Netherlands and the US. According to statistics released by market research firms, the total consumption of canned foods in Vietnam has risen steadily in recent years, by around 500 tonnes/year. The market also saw price competition - an imported can of fish often costs USD 0.62 to USD 1.50/can, while a locally made product costs less than USD 1.20/can. Leading local brand Vissan said they sell more than 100 types of canned beef, pork, chicken and fish. In 2010, Vissan’s sales accounted for 29% of the canned food market. This number is decreasing with the growing presence of imported brands.
|Taiwan opens food safety office |
[04 November 2014] A Cabinet-level Food Safety Office began operations recently in Taiwan to tighten food control and ease the public's fear in the wake of a spate of cooking oil scandals in recent months. The new office, tasked with 20-25 experts and officials from various agencies, such as the Council of Agriculture, the Ministry of Health and Welfare and the Ministry of Economic Affairs, is an upgrade of the Executive Yuan's food safety promotion task force, according to Taiwan News. The government said it will be a driving force in cracking down on substandard food products across the country and in food safety management across ministries and departments.
ASIAN AGRIBIZ WEB SPECIAL
Use of alternative raw materials in feed production
[03 November 2014]
There is no ‘crystal ball’ to predict the future price and supply of main raw materials such as corn, soybean and fishmeal. But over time, there has been an uptrend in the price of key ingredients. Alternative raw materials that are available locally are often sought to substitute the ingredients. Price, quality, supply and anti-nutrient content are some considerations when using these alternative raw materials. The Asian Agribiz team sought industry feedback on the use of local alternative raw materials.
CP Indonesia sources and evaluates alternative ingredients
With the increasing price of feed ingredients Charoen Pokphand Indonesia is active in sourcing and evaluating alternative feed ingredients. Nutritionist for Eastern Indonesia Dr Nasril Surbakti said that the company has been using alternative feed ingredients for its poultry and pig feeds such as palm kernel meal and copra meal. “And the new ingredient that we recently adopted is cotton seed meal. We use only about 2-3%.” Dr Nasril said that alternative feed ingredients can’t be used in high volume. “If used more than 10%, it may negatively affect the performance.” He added that it also uses cassava since it has found the technology to control the dust during processing.
PKM can bring real benefits to farmers
Besides rice other alternative feed ingredients used in Malaysia are tapioca, palm kernel meal (PKM), palm kernel cake, copra cake and soy hull. All these products are viable as they are locally available but are not used as much because of their disadvantages. PKM is common in feedlots, among dairy cattle, and in the swine sector but copper content, between 20-30 ppm, from the fertilizers used makes it unpopular as levels as low as 25 ppm in the diet can be toxic to sheep. Nutritionist Dr Vijaya Raghavan said that shell content is another issue facing the industry as this can damage the intestinal track and gizzard of birds. “We should be willing to adopt new technology which can translate into real benefits for farmers,” he said.
Cassava, sweet potato good alternatives to corn, wheat
Cassava and sweet potato can be direct substitute for corn and wheat in swine diets and partially replace them in poultry diets, said Mercy Buyoc, a leading animal nutritionist and consultant in the Philippines. “We’ve been studying these ingredients, but the problem is that they compete with human requirements.” She noted that cassava meal has the best potential because it is easy to propagate, but the Philippines “need a high yielding variety that can be mass produced at a lower cost.” Toward this end, government support would be critical. “We have the land and manpower for this, but we lack the financial and technical support from the government.”
Quality of local fishmeal is unstable
CJ Feed Indonesia uses alternative protein sources for its poultry feed like local fishmeal with 50% protein content from East Java. “We can’t use it in high volume. The average is only 3%, to replace the use of imported fishmeal,” said Nutritionist and R&D Head, Nugroho Adi. “This is because the quality variation is high.” In terms of price, however, local fishmeal is 50% cheaper than imported fishmeal. Mr Nugroho explained that result from several trials showed that the use of 2% local fishmeal in starter feed and 4% in finisher feed in broilers showed no differences with the control feed (100% imported fishmeal).
Rice co-products, tapioca as alternative carbohydrate source
Thailand is known as a large producer of rice and cassava. In the country rice co-products especially rice bran and broken rice, and tapioca are often used as alternative carbohydrate raw materials. “Livestock producers in Thailand use local crops like rice and tapioca as a substitute for corn for feed cost management and as a feed intake booster in the case of rice bran in pig feed,” said an official of the Thai Feed Millers Association. Tapioca is not used much in chicken feed as chickens do not like cassava in their feed. It is more often used in pig feed, but in a limited amount. At Burapa Farm, where three cross-line finishing pigs are raised, the farm owner uses cassava at an inclusion rate of below 30%. “Exceeding this rate won’t suitable for the three cross-line pigs,” he said. The use of rice co-products and tapioca, however, depends on prices. For instance tapioca demand for ethanol production affects the price.
Seasonality of supply a problem for local by-products
Although rice bran, pollard, copra meal and corn by-products can be effective alternative feed ingredients, but availability is a problem, said Mercy Buyoc, a leading animal nutritionist and consultant in the Philippines. Rice bran has high potential, she said, because it has the same energy value as corn and even has higher protein level. “Usage will be dictated by availability and the effect to meat quality, such as soft fat in pork. It is a good for broiler and layer diets because of the high level of linoleic acid, a major nutrient needed by poultry.” She also warned that quality might be an issue as some suppliers intentionally add adulterants to the product.
CGE uses coconut meal, rice polish
Ceylon Grain Elevators (CGE), the largest animal feed producer in Srilanka, uses coconut meal and rice polish at an inclusion rate of 2-5% as alternative raw materials for its poultry feeds. According to Assistant General Manager (Technical) Jeff Li Zhenjie, coconut meal is a good source of protein. “It contains 20-21% crude protein, however the fibre content is around 13-15%.” Rice polish, meanwhile, contains 9-12% crude protein, 10-14% fat and its metabolisable energy is around 2900-3100 kcal/kg. “Although the ingredients contain some anti-nutrient contents, we eliminate it by using enzymes and through extrusion,” said Mr Zhenjie. This year the average prices of coconut meal and rice polish are USD 270/tonne and USD 240/tonne, respectively. Mr Zhenjie added that the company continues to search for other local alternative raw materials.
Al-Meezan stocks its alternative ingredients
In Pakistan rice tips, rice polish, corn gluten and millet are available locally, but on a seasonal basis. To overcome this, Al-Meezan Poultry Feeds & Allied Products uses the alternative ingredients based on harvest schedule. Production Manager Dr Abdullah Ahmad explained that the raw materials are stocked up for about one month so it becomes more viable and economical. He claimed that the company saves by using alternative raw materials. “The price is reasonable. Rice tips is about USD 270/tonne, rice polish USD 200/tonne, corn gluten 30% USD 230/tonne, and millet USD 270/tonne.” Al-Meezan uses rice tips, rice polish and millet to substitute energy sources like corn, while corn gluten is an alternative protein source.
Using local ingredients is not easy
As a medium scale animal feedmiller, Indonesia’s Menara Feedmill thinks that using local alternative raw materials is not easy. Director Henry Haryono said: “We have to have a good focus in selecting the ingredients and suppliers. Common problem is that the quality fluctuates. Besides, we need to do trials to measure the right inclusion rate without affecting production performance. This takes time and money. So, we prefer to use regular ingredients such as corn, soybean meal and imported fishmeal due to quality concern,” said Henry.
Enzyme technology can increase the use of alternative ingredients
Among the alternative raw materials that are available and used in Malaysia are rice products such as rice bran, rice polish, full fat rice bran and rice bran with solvent extracted, which are high in fibre but also contain a high amount of anti-nutritional properties such as sand, silica and ash. To overcome these issues farmers can sieve the product or buy from quality suppliers. Rice products are popular in duck feed. It is also used in the layer and breeder industries at an inclusion rate of around 8-10% and 5-8% respectively. “Rice products can be used in the commercial broiler sector but this is where the sector must use enzyme technology to help the birds digest the fibre content,” said nutritionist Dr Vijaya Raghavan. “Protease can be used to hydrolyse vegetable protein such as soybean to release more energy so that alternative feed ingredients such as rice bran can be effectively utilised,” he said.
Fat content of rice should be stabilised
In Thailand rice bran is frequently used in pig feed, according to an official of the Thai Feed Millers Association. However the rice co-product is not popularly mixed into layer feed since farmers prefer to choose corn to boost their egg-yolk colour. “Pigs like rice bran-mixed feed as they like the smell. The ingredient also contains fat and vitamins,” the official said. According to Dr Hans H Stein from the University of Illinois, rice bran can be a good ingredient if the fat is stabilised.
|Thai egg price up ahead of holiday season|
[31 October 2014] Egg price in Thailand has risen on growing demand from hotels and restaurants ahead of the high tourism season. Annop Akaranithiyanont, President of the Layer Farmers Association, said that the association and farmers agreed on an increase in farm-gate price of THB 0.20/unit raising the selling price to THB 2.80 per egg. The retail price now is hovering around THB 3.20-3.30 per egg depending on transportation costs of each merchant. Mr Annop said the new price is still lower than production cost of around THB 3 per egg [USD 0.92]. This year, Thailand is expected to produce 14.27 billion eggs, up from last year’s production by 756 million eggs.
|China reports 51 bird flu Outbreaks|
[31 October 2014] China has officially reported 51 outbreaks of bird flu since September 1, according to the World Organisation for Animal Health. China stepped up its bird flu surveillance following outbreaks that seriously affected poultry sales in 2012 and 2013. Most of the recent outbreaks involved only one or two birds, although two larger ones led to the destruction of 7,400 birds. The surveillance also detected two strains, H5N8 and H5N3, previously unreported in China. Meanwhile, South Korea reported an outbreak of H5N8 that killed 1,200 ducks at a farm, with another 19,800 ducks destroyed as a precautionary measure.
|Vietnam, feedmillers renege on corn and soymeal deals|
[31 October 2014] Feedmillers in Vietnam have cancelled corn and soymeal imports after a steep drop in global prices, in a move that could compel suppliers to offer sharp discounts and chalk up huge losses, reported Reuters. Global corn and soymeal prices have plunged 25-35% in the past three months. Buyers in Vietnam have refused to honour deals to import some 200,000 tonnes of corn and 150,000 tonnes of soymeal in the past few weeks. Feedmillers are currently being offered Brazilian corn at USD 200 a tonne in containers, down from USD 275. For soymeal, the price drop is steeper with cargoes quoted at USD 475 a tonne, down USD 100 from when the deals were signed in July-August. Vietnam has seen corn imports doubling in five years to 2.2 million tonnes in 2013/14 and soymeal purchases have jumped to 3.1 million tonnes this year from 2.5 million tonnes 2008/2009, according to the US Department of Agriculture.
|Global pork production and China imports forecast to increase in 2015|
[31 October 2014] The USDA FAS forecast 2015 world pork production at 111.85 million tonnes, up 1.1% over 2014. In 2015, China’s pork production is projected to reach 57.35 million tonnes, 1.5% higher than 2014. China is the world’s leading pork producing nation with more than half of the world’s pork production. In 2015, world pork imports are forecast at 6.32 million tonnes, 1.2% higher than 2014. Japan, the main pork importing nation, is expected to import 1.28 million tonnes of pork in 2015, a 3.4% decrease from 2014, while China’s pork imports are expected to increase 23.5% over 2014 to a record 1 million tonnes.
|India, over-reliant on vannamei|
[31 October 2014] The Indian shrimp industry’s increasing dependence on vannamei production is a problem facing farmers even as producers could eventually see lower prices as early mortality syndrome hit competitors start to recover, said. V. Balasubramaniam, general secretary of the Prawn Farmers Federation of India. Of the 300,000 tonnes of shrimp the country produced last year, between 70-75% were vannamei, with the rest being black tiger, he said. Now, vannamei production is around 90%. While it would be desirable to have more back tiger shrimp in the mix, problems with broodstock have limited India’s cultivation of this species. “If the country can get specific-pathogen-free broodstock, then it would be able to increase its production of black tiger, which Indian farmers like to grow because of its larger size”, he said.
|2015 global beef production down, India exports up|
[31 October 2014] According to the recently released, USDA FAS bi-annual publication, 'Livestock and Poultry: World Markets and Trade, 2015', total world beef and veal production is forecast at 58.74 million tonnes, 1.4% lower than 2014. India’s beef exports in 2015 are projected to total 1.95 million tonnes, up 5.4% year-on-year. India is the second largest beef exporting country. Beef exports from Australia in 2015 are expected to equal 1.59 million tonnes, 10.4% less than the record setting export levels of 2014. Japan’s beef imports are forecast at 740,000 tonnes, down 1.3% from 2014 due to competition with China for supplies of frozen boneless beef primal cuts. Hong Kong is forecast to import 750,000 tonnes of beef in 2015, which is 15.4% higher than 2014.
|Matahari Sakti setting up first mill outside East Java|
[30 October 2014] East Java-based aquafeed miller Matahari Sakti is expanding its business into western Indonesia by setting up a new aqua feedmill in Tigaraksa, Tangerang – Banten province. Managing Director Teddy Njoto told Asian Agribiz that the plant that will produce feeds for shrimp, fish and pets is expected to be operational in 2015. “In the first phase, the plant will have an installed capacity of 2500 tonnes/month and this will cost us around USD 8.3 million. Once the plant is up and running, we will gradually expand the plant’s capacity to 12,000 tonnes/month.” The new plant will mainly cover demand from West Java and Sumatera.
|Gold Coin puts Brunei feedmill into operation|
[30 October 2014] Gold Coin recently inaugurated its new USD 15 million feed plant in Brunei. Gold Coin CEO Ian Glesson said it may start exporting feed from the Sultanate by 2016. Gold Coin brought livestock feed to Brunei from its mill in Labuan before the new Brunei mill was built. “Our Labuan mill's output is now a lot smaller and we may ultimately cease operations at this mill and export to Labuan from Brunei,” Mr Glesson said. The new mill plans to make full use of local raw materials to meet demand for feed, and next year the feed will be exported to Kota Kinabalu, Labuan and Limbang areas.
|Myanmar poultry consumption up by 20%|
[30 October 2014] Domestic poultry consumption has seen a 20% year-on-year increase since 2012, according to Myanmar Broiler Association, reports Myanmar Business Today. Increased consumption has been driven by the decline in pork production after bouts of PRRS, and the decrease in the production of fishery products. The government is planning to establish a wholesale poultry market on a 23 hectare area at the junction of Shwe Pyi Thar and Insein by 2015, which will also include cold storage rooms.
|Indonesia seeks solution to dispute with Brazil|
[30 October 2014] Indonesia is seeking to meet officials from Brazil to settle its dispute on poultry import restrictions. Brazil initiated a dispute against Indonesia recently at the WTO. Indonesia’s Trade Ministry Director General for International Trade Cooperation Bachrul Chairi said the ministry would liaise with the Agriculture Ministry. “Basically, we are trying to convince [the Brazilian government] that our rulings are in compliance with the WTO’s regulations,” Mr Bachrul. According to him, Brazil has deemed some of Indonesia’s regulations, such as stricter animal health checks and required import licenses, to have affected its poultry business in Indonesia.
|Vietnam to spend USD 4.5b on feed imports|
[30 October 2014] Vietnam is forecast to spend as much as USD 4.5 billion on imports of animal feed material and another USD 400 million on cattle and poultry meat shipments in 2014. According to Nguyen Dang Vang, Chairman of Vietnam Livestock Association, imports of raw materials for livestock feed, mostly corn and soy, are expected to increase by around USD 600 million compared to last year. The country is projected to import USD 250 million worth of live and slaughtered cattle this year, with shipments from Australia accounting for 80%, or USD 200 million. Imports of poultry meat and by-products are expected to top USD 120 million, he added.
|Higher demand continues to fuel Jollibee expansion|
[30 October 2014] Jollibee Foods Corp (JFC) is looking to spend around USD 207 million to open at least 300 stores in 2015 as demand continues to grow. JFC’s Chief Financial Officer Ysmael Baysa said the numbers are still being finalised, but it will likely be higher than the number of stores opening this year. The company is opening 300 stores for 2014, and Mr Baysa said they “could have opened more based on demand.” Of the 300 new stores this year, 200 will be in the Philippines and the rest in overseas markets. He said the opening of 200 new stores in the Philippines is “almost double [JFC’s] historical trend, but that is still short of demand.”
|Bangladesh’s NFML aims to raise USD2.3m from IPO|
[30 October 2014] The initial public offering (IPO) of Bangladesh’s National Feed Mill Limited (NFML) started on October 26 and will remain open till October 30 for Bangladhesi investors and it will continue till November 8 for non-Bangladeshi investors. As per the regulatory approval, NFML will offload 18 million ordinary shares at an offer price of USD 0.13 and raise a fund worth USD 2.3 million. The funds raised will be used for repayment of bank loans, business expansion and working capital. NFML is engaged in producing feed for poultry, shrimp, fish and cattle.
Animal Protein in Asia 2020 - Management and products
[29 October 2014]
Asian Agribiz’s Animal Protein in Asia 2020 Conference closed yesterday in Singapore. The two-day event featured reputed speakers and topics relevant to the growth of the animal protein sector. It offered industry leaders an opportunity to shape a vision for their companies as they approach year 2020. Day 1 of the conference looked at Consumers and Inputs in 2020. Yesterday the spotlight was on Management and Products in 2020.
Importance of vision, mission and values
Talent may be an important ingredient in helping companies grow but vision, mission and values, according to Michael O’Keeffe, Principal, O’Keeffe & Associates Pty Ltd, Australia, will lend companies direction. Elaborating on values, he said, it underpins the mission of the company and sets the scene for strategy and action plans. Besides attracting and retaining talent, companies must invest in training and development. “A balanced scorecard system involving pre and post training can help staff integrate what they have learnt in training with the business,” he said.
Redefining human resources
Workforce demographics are changing. The Asian employee today is more educated and internet savvy. In China they are most likely to be the only child with the responsibility of looking after their aged parents and grandparents. In affluent parts of Asia they have the support of their well-to-do parents. As such the role of Human Resources too must change to accommodate this new workforce. “HR can no longer be an administrator or payroll processor. Instead they must set out clear performance guideline, and create regular face-to-face communication and performance reviews,” said Peter Tay, Business Consultant, Singapore. Companies should also develop new and different ways to motivate the different types of employees.
Executive team has a role to play in branding
Branding enhances shareholder value and can deliver competitive results. It also enables a shared vision throughout the organisation. As such the executive team has an important role to play in brand leadership. According to Martin Roll, Principal, Martin Roll Company, Singapore, brand-driven companies have three things going for them – innovation, leadership and culture. “Companies can ask themselves, What does my organisation bring to the world? What should we do to compete successfully? Are we doing today what we need to do in order to matter tomorrow?” He said there is potential in Asia to build more global brands especially in the next 5-10 years.
Room for Asian producers to up productivity
The growing Asian population has its own set of challenges. More food has to be created, producers must balance the resources between humans and farming needs, and manage pollution. As food production grows supply chain issues especially for fresh produce must be looked into. Producers must also be able to maintain the quality and safety of their products. “Technology can help solve some of the challenges. There is room for Asian producers to increase productivity by adopting US and EU technology on genetics, technology and improved efficiency in food production,” said Rupert Claxton, Senior Analyst, Girag & Associates Sarl, France. “However Asia will not develop as a major exporter of animal protein because of disease issues and cost competitiveness, and also because the market is in the region.”
The line of the future
Automation is transforming the Asian food processing scene as producers try to produce more with less. “Automation can achieve higher throughputs per floor space, reduce the risk of contamination, offer better worker safety and help reduce dependency on labour,” said Andrew MacLeod, VP Asia Pacific, Provisur Technologies Inc, Thailand. “Today’s higher capacity machines are more efficient with servo drives and adaptive power control. They are made with higher grade stainless steel, clean-in-place features and anti-stick surfaces for better hygiene.” Offering a glimpse into the future he said production facilities could evolve into “lights out operations with high quality inspection”. Inline foreign substance detection, high-pressure pasteurisation and irradiation will be must-have features in these plants.
Customer education can drive packaging
When explained that vacuum-packed products can increase shelf life by up to three weeks compared to cling-wrapped products, sales of vacuum-packed products increased to 75% from 51% while sales of cling-wrapped products dropped to 25% from 49%, a survey from Sealed Air showed. “All the packaging technology that you invest in your business must be explained to your customers. This communication is not done effectively in Asia,” said Christophe Gottar, Executive Director Global Poultry, Sealed Air, France. Packaging can also help households reduce their food wastage by more than 50%. On packaging trends, Mr Gottar said consumers are looking for packaging that open easily, have portioning and offer cooking convenience.
|Chicken prices to go up going into Christmas season|
[29 October 2014] Despite a media report citing Philippine Agriculture Undersecretary Jose Reaño as saying that farm price of chicken is expected to contract to about USD 1.50-1.60/kg, United Broiler Raisers Association President Elias Jose Inciong told Asian Agribiz that farm prices going into the Christmas holidays might be between USD 1.90-2.10/kg. He said the higher prices would be because of higher demand and not because of insufficient supply, noting that the Department of Agriculture allowed the import of 5000 tonnes of leg quarters to assure enough supply during the holidays. The shipments are expected to arrive late in November or in early December. Mr Inciong also said that farm prices will likely start to taper around the third week of December.
|TCRS Restaurants to exceed its 20% growth in sales turnover|
[29 October 2014] The Chicken Rice Shop (TCRS) chain in Malaysia, has raised its number of new outlets this year to 30 from 17 initially. It now targets 110 outlets as a group by year-end, said Wong Kah Lin, CEO. “We are on track to achieving 20% growth in sales turnover this year. In fact, we are exceeding the 20% growth, based on existing store performance and new outlets performance and new outlet openings,” she said. The company has a presence in Singapore, Taiwan, the Philippines and, most recently, in Brunei. It is searching for the right partner in Indonesia. In the Philippines, Ms Wong said the company that franchised the business was recently acquired by one of the largest food chains in the country and the new owners are positive on the growth prospects.
|Allana Group eyes buffalo exports to Russia, Indonesia|
[29 October 2014] The Allana Group, which will be celebrating its 150th anniversary next year and exports buffalo meat to 64 countries, is looking for new markets. Afzal Aziz, President, said: “At the moment we are quite upbeat about the Russian market. The bans are a good opportunity for us. We do a lot of business in Africa and the Middle East. In Indonesia the laws have changed and they are looking at India. He said analysis by the US Department of Agriculture shows that buffalo meat, next to beef, is “much leaner, and contains more vitamins and protein. It is free from hormones, antibiotics and growth promoters. We use small livestock holdings in India, so it’s not so commercialised like in feedlots”.
|Meat and livestock products to remain on Vietnam’s import list|
[29 October 2014] Vietnam will continue to import meat and livestock products, even after Vietnam has joined the Trans-Pacific Partnership trade pact. According to Nguyen Dang Vang, the Chairman of Vietnam Livestock Association, the country’s cost prices for livestock are the highest among the nations in the TPP talks. “Our livestock breeders offer poor quality produce, and small-scale livestock farms account for up to 60% of the sector,” he said, adding that the livestock industry “will suffer the biggest disadvantage” when Vietnam joins the trade pact. “The government should have special policies to assist the industry.” Vietnam consumes 4000 cows daily, mostly imported cattle. Australian beef currently holds a 70% market share in Ho Chi Minh City. In 2013 Vietnam imported nearly 67,000 cows from Australia, but the figure rose to 120,000 in just the first seven months of this year.
Animal Protein in Asia 2020 - Consumers and inputs
[28 October 2014]
Asian Agribiz’s Animal Protein in Asia 2020 Conference opened in Singapore yesterday. The two-day event features reputed speakers and topics relevant to the growth of the animal protein sector. It offers industry leaders an opportunity to shape a five-year vision for their companies. Day 1 of the conference looked at Consumers in 2020 and Inputs in 2020. Today the spotlight will be on Management in 2020 and Products in 2020.
What do consumers want?
Food that is convenient to buy, prepare and eat tops the list of global consumer trends. Shoppers also want products that are healthy, nutritious and good for their well-being. Participants at the conference were encouraged to take a broader looked at the value that they can offer to consumers. “Value for shoppers is not only about price it is also about products being free from hormones and antibiotics. Consumers are also looking at core values that they subscribe to like sustainability and animal welfare issues,” said David Hughes, Emeritus Professor of Food Marketing at Imperial College London. Pack sizes that meet consumers’ eating occasions are also an important trend as are products that are natural and minimally processed.
Important to know your customers
Correctly positioning your products can help producers increase their sales. The Central Food Retail Co of Thailand has reaped benefits from introducing various retail formats as well as different categories of products based on data collected from its loyalty card program. Its private label Natural Pork, launched in 2011, is priced 30% higher than its other private labels like Hygienic Pork, but after two years of educating customers on the attributes of the Natural Pork today the category is favoured by its consumers that want healthy and nutritious meat. “We collaborated with our existing supplier to come out with Natural Pork. We try and work with them towards a win-win solution in order to maximise the carcass,” said Malinee Suwattanachot, General Manager – Meat and Seafood of Central Food Retail.
Transparency and traceability key to success
The panel discussions tackled relevant issues facing the industry. One participant wanted to know how the meat industry can brand itself when faced with negative assumptions such as red meat is unhealthy. Martin Roll, Principal of Martin Roll Company, said these bumps will come and go but it is important to keep the discussions transparent. “Push out the correct information but remember that it is an industry thing. Don’t make it your battle,” he advised. The panel also agreed that towards 2020 transparency and traceability are important as producers must remain relevant to their consumers. Meat producers must also constantly innovate to keep consumers engaged in their products.
Asian shifts towards brand building
Companies in Asia today are more open to branding their products compared to one decade ago. Said simply “branding does positive things to people”. According to Martin Roll, Principal of Martin Roll Company, “food is a big thing in Asia and issues on quality are important. The focus on branding will be enhanced in the coming years”. He said to build a strong brand, which is roughly a three-year project, a product must have functional attributes, a point of difference and emotional values. “Innovation is an ingrained part of brand building.” The challenge in Asia, he said, is that there is a lot of capacity but not much innovation.
China imports and investments will continue to grow
In China urbanisation is driving demand for more and better protein, and at a higher rate than GDP. While at-home meat consumption is growing, city dwellers also eat 30-50% of their meat outside their homes where they are more open to alternative proteins such as chicken, beef, sheep, fish, shrimp and dairy, said Rich Herzfelder, Agribusiness Commentator based in Beijing, China. “China will not be able to satisfy demand from domestic sources and imports will continue to grow. Reliance on China can be profitable and dangerous all at onc,” he said. A case in point are the 2013 and 2014 scandals affecting Yum! and OSI respectively. China will also control imports in its self-interest, he said, highlighting the issues with US GM corn as well as Australian chilled beef, which were suddenly dropped after imports rose 3600% y-o-y in Q1-3 2013.
|Disease spread in Cambodia due to illegal imports|
[28 October 2014] Cambodia's new draft law on animal health and production is expected to be approved by the December 2015, but Srun Pov, President of the Cambodian Pig Raising Association, said he is not aware of it. “It is good to have the law, but please make sure the law will help and encourage local raisers to raise the animals to the expected standard,” he said. He contends that loosely monitored illegal imports of swine from neighbouring nations had contributed to the spread of disease in Cambodian livestock and rendered many local producers bankrupt.
|China to import pork from Austria in 2015|
[28 October 2014] China has agreed to import pork from Austria from next year, the Austrian media reported. The media noted that Chinese authorities will drop veterinary restrictions, freeing the way for pork imports from 2015. Agriculture Minister Andrae Rupprechter said that South Korea, which already imports pork from Austria, will now allow imports of additional products such as bacon and sausages from 2015. Diversifying export markets is a priority for Austria after Russia introduced restrictions on food imports amid a trade row with Western countries over allegations that Moscow is supporting separatist rebels in eastern Ukraine.
|Bangladesh’s shrimp exports slowing down|
[28 October 2014] Shrimp exports from Bangladesh are facing a slowdown in the wake of reduced demand for locally-grown black tiger shrimp in major markets. An increased supply of vannamei from exporting countries at reduced prices account for the slowdown. Demand for black tiger shrimps from Bangladesh has declined in the French and UK markets because of the higher price. “Apart from lower price of vannamei, the weaker euro and pound sterling have also affected Bangladesh’s shrimp exports,” said Kazi Belayet Hossain, Senior VP of the Bangladesh Frozen Foods Exporters Association.
|Animal Protein in Asia 2020 – to shape company’s vision|
[27 October 2014] Asian Agribiz's Animal Protein in Asia 2020 Conference opens in Singapore this morning. Fielding reputed speakers on topics relevant to the growth of the animal protein sector, it sets out to offer industry leaders an opportunity to shape a five-year vision for their companies. With 2 days of tactical presentations 12 specialist speakers, four chaired panel discussions it will generate a wealth of ideas to help leaders in this sector fine-tune their 5-year plans. Among those attending this two-day event which is the region’s first outlook conference, are poultry, pork, fish and dairy producers, processors, retailers and investors.
|Indonesia’s aqua feed installed capacity to increase by 9% in 2015|
[27 October 2014] The total installed capacity of aqua feed in Indonesia next year will increase by 9% to 2 million tonnes, according to Denny Indrajaya, Aqua Feed Division Chairman of the Indonesian Feed Millers Association (GPMT). “Next year three companies will put new aqua feedmills into operation namely CJ in East Java, Matahari Sakti in Banten and Sinta Prima Feedmill in West Sumatera. Each mill can produce 5000 tonnes/month.” Of the 66 members of GPMT, there are 15 feed millers who produce aqua feeds. Utilised capacity at the moment is only around 60-70% of the total installed capacity.
|Phnom Penh drafts new animal health law|
[27 October 2014] A draft law on animal health and production is expected to be approved by the December 2015 Asean Economic Community deadline, government officials from Cambodia said. Soun Sothoeun, Deputy Director of Animal Health and Production at the Ministry of Agriculture, said the new law had already been drawn up and is with the Council of Ministers. “It includes better management of livestock production and health, protection for consumer health and local breeds to ensure sustainable livestock production in Cambodia,” he said. “It is important that Cambodia adopts the law before AEC arrives as import tariffs will be lifted... and we improve the health regulations of livestock entering Cambodia.”
|Singapore egg prices continue to rise|
[27 October 2014] The price of fresh eggs in Singapore has continued to rise as the supply shortfall widens after a third farm in Malaysia was suspended in September from exporting eggs. Last month, the Agri-Food and Veterinary Authority suspended Charoen Pokphand Jaya farm after its eggs had been found to contain salmonella enteritidis. The farm accounts for less than 8% of Singapore’s total supply of 1.68 billion eggs last year. At NTUC FairPrice stores, prices of eggs had increased by about 12% over the past six months. Fresh eggs now cost between USD 1.53 and USD 4.48/pack, up from between USD 1.49 and USD 4.36 at the end of last month. Singapore imported about 75% of its eggs from Malaysia last year. There are currently 20 Malaysian layer farms approved by the AVA.
|Asia's agri imports to grow |
[27 October 2014] A rising population and rapidly growing incomes in the emerging Asian economies will continue to support robust demand for feed grains and other agricultural products, according to Curtis Jones, Global Director of Economic Analysis for Bunge Global Agribusiness. He noted that growth in agricultural imports will continue to be led by countries in Asia, the Middle East and North Africa. Renewable Fuels Association President Bob Dinneen said: “International consumption of DDGS has grown exponentially as the world begins to understand the benefits of the high-protein feedstock. Just last year the US exported a record 9.7 million tonnes of DDGS to nearly 50 countries. These exports accounted for approximately 28% of all US produced DDGS.”
|Lower costs of raw material to bode well for food firms|
[27 October 2014] The lower costs of soy and corn is expected to bode well for the region’s food makers. According to a USDA forecast, US farmers are set to reap a record 3.9 billion bushels of soy while corn output will rise to an all-time high of 14.5 billion bushels on bumper US harvests. The US is also expecting to produce record volumes of wheat this year for the second consecutive year. The rising supply of US crop also comes at a time of slower demand growth from China. This combination is positive for the margins of regional food producers. “Our commodities team expect a 12% drop in corn prices, a 10% fall in soy and a 3% decline in wheat prices in 2014,” said Nirgunan Tiruchelvam, Director of Equity Research at Standard Chartered.
|Stanchart bullish on Japfa Ltd|
[24 October 2014] Standard Chartered has placed an 'outperform' call and a price target of SGD 0.95 cents (USD 0.75) on Japfa Ltd's shares. In an October 20 report it stated that with the rise in per capita incomes, branded food products as a percentage of sales volumes will also rise by 25-35% from 2014-16, compared to 10-15% in 2010-13. It expects the company's earnings per share and compound annual growth rate in 2015/16 to hit 39%.
|SHV to acquire Nutreco|
[24 October 2014] Dutch based SHV is making a cash offer to acquire all the shares of Nutreco at EUR 40/share. This signals an exciting development, as Nutreco is about to enter into a new era in its longstanding history, the company said in a joint press release. Both the Executive Board and the Supervisory Board of Nutreco fully support the offer and recommend it unanimously to the shareholders. “We firmly believe the offer is in the best interest of all our stakeholders. SHV is a well-established, privately held family company with a proven, strong financial track record. This transaction is about growth. SHV endorses our strategy and we will continue to operate independently under our own brand name, with the same management and organisation structure".
|USDA forecasts modest growth in Thai chicken meat production|
[24 October 2014] In the USDA October International Egg and Poultry Review, Thai chicken meat production is estimated to grow only modestly in 2014 and 2015. Thai chicken meat exports in 2014 is estimated at 530,000 tonnes, up 5% over 2013. This is lower than the official estimates in April 2014 of 580,000 tonnes. Unofficial forecasts are for Thai chicken meat exports to further increase by 6% to 560,000 tonnes in 2015 in anticipation of growing export demand. Despite prevailing high prices, domestic consumption is estimated to grow 3% in 2014 led by high pork prices. Average retail prices for boneless chicken breast meat for the first half of 2014 increased by 2% to USD 2.60/kg, compared to USD 2.55/kg in the same period in 2013.
|China growth slows, meat output rises|
[24 October 2014] According to China's National Bureau of Statistics, the GDP in the first three quarters of 2014 was USD 6,858.5 billion, a year-on-year increase of 7.4%. China’s year-on-year growth for Q3 was 7.3%, the slowest in five years. In the first three quarters of 2014, the total output of pork, beef, mutton and poultry reached 59.75 million tonnes, a year-on-year growth of 2.0%. The output of pork reached 39.72 million tonnes, up by 3.3%.
|Indonesia’s aqua feed consumption predicted to only reach 1.1mt|
[24 October 2014] Until the third quarter of this year, total sales of aqua feed in Indonesia had reached around 950,000 tonnes, with sales of fish and shrimp feeds reaching 700,000 tonnes and 250,000 tonnes respectively. Early this year, the Indonesian Feed Millers Association (GPMT) predicted that aqua feed consumption in 2014 would reach 1.2 million tonnes. However, GPMT Aqua Feed Division Chairman Denny Indrajaya said: “Looking at the sales data, we predict that total consumption of aqua feed this year will only reach 1-1.1 million tonnes.” According to him, the price of chicken that is relatively stable in cheap level has caused fish and shrimp consumption to decrease.
|OSI Shanghai closure hits McDonald’s earnings|
[24 October 2014] The closure of OSI’s Shanghai subsidiary in China has had a major impact on McDonald’s international Q3 earnings. The company’s quarterly report showed that its global Q3 sales were down 3.3%, and consolidated operating income was down 14%, with about half attributable to a “supplier issue,” meaning the closure of OSI’s Shanghai subsidiary in July. The OSI issue also affected McDonald’s sales and profitability in Japan and some other markets. Global earnings per share were reported at USD 1.09, and McDonald’s said it estimated that the OSI supplier problem cost the company about 15 cents per share.
|Pork prices in South Korea to remain low|
[24 October 2014] Wholesale and retail prices of pork in South Korea is down 11% in August this year after peaking in June as supply proved higher than expected, a report by Rabobank revealed. Anticipating a drop in local production following PEDv outbreaks at the beginning of the year, South Korea’s pork imports in the first eight months this year jumped 27%. However, statistics now show that the impact of the disease will be far smaller than expected, with total slaughtered only down 1.3% from January to August. Rabobank said prices will continue to decline in the coming months but at a slower rate.
|Fast Food Indonesia opens 30 new KFC outlets|
[23 October 2014] Until September, KFC operator in Indonesia PT Fast Food Indonesia has set up 18 new outlets. “From October to end of this year, we will add 12 new outlets. So the number of new outlets for this year is 30 outlets. One outlet costs us around USD 400,000,” said Director Justinus Juwono. The 30 new outlets are located in big cities in Sumatera, Kalimantan, Java and Papua. With the addition of the 30 new outlets, Fast Food will have 471 outlets in total. This year Fast Food targets to achieve 10% sales growth.
|Ruibang, Topigs sign breeding farm agreement|
[23 October 2014] China's Ruibang Farming Development Co and Dutch pig genetics supplier Topigs have signed an agreement to establish breeding farms and genetic centres in North China’s Hebei Province. Ruibang, based in the provincial capital of Zhangjiakou, plans to invest more than USD 33 million to establish pig breeding and propagation centres with up to 2,500 sows each. Topigs will supply pigs and genetics based on the Zatopek gene, according to the Zhangjiakou News Network. The breeding centres will provide pigs to local farmers while Ruibang builds a regional brand to serve the major metropolitan areas of Beijing and Tianjin.
|Southeast Asia in expansion mode|
[23 October 2014] According to USGC Regional Director of South and Southeast Asia, Kevin Roepke, the potential for Southeast Asian countries is remarkable. “In 1990, 60% of the population was living on less than USD 1.25/day. Today, it is just 30%.” Consumption of food is growing at double-digit rates annually and the region’s meat production has grown from 12 million tonnes in 2004 to almost 18 million tonnes today. “The region as a whole has a total corn demand of more than 25 million tonnes, with an annual import demand of more than 8 million tonnes - most of that coming from Indonesia and Vietnam,” Mr Roepke said. “As a result of USGC programs, Indonesia is now the world’s largest importer of corn gluten meal, and Southeast Asia imports more than a million tonnes of DDGS per year.”
|Liuhe launches WeChat poultry channel|
[23 October 2014] New Hope Liuhe has launched a sales channel for its poultry products on WeChat, a popular Chinese mobile text and voice messaging communication service. The service allows people to place orders from any location using their mobile phones, without having to use a personal computer. The new channel will allow Liuhe to enhance consumer contact and keep the company closely attuned to the latest consumption trends, according to International Livestock News, a Chinese livestock news service. WeChat has more than 360 million mobile users in China.
|Viet farmers to get preferential loans|
[23 October 2014] The State Bank of Vietnam has approved the addition of 19 projects to a pilot program that offers preferential loans for agricultural development. The beneficiaries of the soft loans are 19 projects from 16 cities and provinces nationwide. They will get a total of USD 90.42 million at preferential annual interest rates of 7% for short-term loans, 10% for medium-term loans and 10.5% for long-term loans. Short-term loans will be given to farmers to buy poultry and livestock as well as agricultural equipment, fertilizer and seeds. The medium and long-term loans will support investments in infrastructure and equipment to develop hi-tech models.
|Pork consumption in Japan stable despite high prices|
[23 October 2014] Despite higher prices resulting from the depreciating yen, pork consumption in Japan remains stable, a report by Rabobank said, as prices of competing protein products like beef also remains high. The report said that the high prices are “remarkable” because supply of pork in the country is up as imports jumped 13.6% in the first seven months this year due to the uncertainty on the impact of PEDv on production. Rabobank said: “With this level of stocks and further recovery locally, prices will remain under pressure, while we expect imports to decline towards the end of the year and into 2015.”
AllPack Indonesia Expo 2014 – Jakarta
On-site reports by ARIEF FACHRUDIN
[22 October 2014]
AllPack Indonesia Expo 2014, a showcase of packaging technology started yesterday at JI Expo in Jakarta. A number of advanced technologies for packaging and meat processing were showcased. Exhibitors from China and Taiwan dominated the show.
Multivac bullish on Indonesia’s market potential
Multivac’s packaging machines and thermoforming films are gaining ground in Indonesia. Assistant Sales Manager, Lim Shau Meng said that this year the company is optimistic that its business in Indonesia will grow by 25%. “In Asean, Indonesia is our main market, followed by Thailand and Malaysia. Our products are used by CP Indonesia, Japfa, Belfoods and Malindo,” Mr Meng revealed. He added: “Our customers in Indonesia prefer big capacity machines, 2000-3000 packs/hour.” Multivac’s products are used to pack sausages, ham and other meat products.
Ishida Indonesia showcases inspection system
Ishida Indonesia, a subsidiary of Japan-based Ishida Group, showcased its metal detector and X-ray inspection system. Sales Executive, Michael Tankaruba said that the metal detector and X-ray inspection system are their two best-selling machines in Indonesia. “Convenience stores like 7-Eleven also use our metal detector for their ready meals.” According to him, this shows that food safety standard in Indonesia is changing and getting better. Mr Tankaruba explained: “Metal detectors are used by meat, fish and shrimp processors in Indonesia. However, processors who export now prefer to use X-ray systems since it is more accurate, faster and more efficient although the price is five times higher than metal detectors.” Ishida’s main clients are fish and shrimp processors in West Java, East Java, Bali and Sulawesi.
Yokozaki launches shrimp sorting machine
Japan-based Yokozaki launched its compact shrimp sorting machine. According to Senior Service Engineer, Dody Zainal Arifin, by using the machine, sorting can be done four times faster than when done manually. The machine can sort 10,200 shrimp/hour. Mr Dody revealed that it targets vannamei processors and exporters for the machine. “We see there is good potential for this machine since the export markets demand uniform weight and size of shrimp.”
Made-in Asia machines gaining popularity
According to Malaysia-based Bestworld Director, Elwein Ng, the meat processing industry in Indonesia is growing quite significantly. “In the last three year this industry recorded double-digit growth. Production capacity is increasing and there are also new players.” Mr Ng revealed that demand for made-in Asia machines is also increasing. “Besides the affordable price, made-in Asia machines are good for 5-7 years. European machines, meanwhile, can work for 10 years or more. However, technology in this industry is dynamic and processors always want to update their technology.”
Chinese exhibitors offer retort sausage machines
Cimory Group's COO Boediono Tandu told Asian Agribiz that the retort sausage sector is booming in Indonesia. This was confirmed by the many exhibitors from China at the show offering retort sausage machines, such as Zhucheng Jinding Food Machinery and BHDK Spaceflight East. The machines are available in different capacities. The exhibitors also offer PVDC packaging for retort sausages. BHDK Representative Cecilia Lina said that its retort sausage machines are used by big companies like CP Indonesia and Japfa. “Through this show, we want to extend the market reach of our retort machines in Indonesia.”
|Imports could be beneficial|
[21 October 2014] The opening of a market to meat imports need not necessarily be a negative move contends respected poultry industry commentator and analyst, Gordon Butland. “Sometimes, the country itself may not be able to produce enough of a particular product like mechanical deboned meat (MDM) for instance, because of the existing industry framework that supports the nature of demand in that market,” Mr Butland told Asian Agribiz. “In a situation like this, MDM imports could help spur the growth of the further processing market with quality meat and lower product cost for patties, nuggets and sausages.” He was commenting in response to the WTO ruling in favour of US poultry exports to India.
|Brazil challenges Indonesian chicken import restriction|
[21 October 2014] Brazil launched a dispute at the World Trade Organization (WTO) on October 16 to challenge Indonesian restrictions on Brazil’s poultry meat exports. "Brazil argues that Indonesia’s restrictions break the Agreement on Sanitary and Phytosanitary Measures and the Agreement on Technical Barriers to Trade," the WTO said in a statement. Director of an Indonesian poultry company, Sudirman FX told Asian Agribiz that he predicted that Brazil would take Indonesia to the WTO. Asian Agribiz reports indicate that Brazil has been actively trying to tap into the Indonesian poultry sector for two years now. The Indonesian Islamic Body, whole chicken slaughterhouses in the exporting country must be halal certified. Director General of Livestock and Animal Health Syukur Iwantoro said: “We are open for investments, but not as a market since our poultry industry is already self-sufficient.”
|Situation improving for global pork industry in Q4|
[21 October 2014] With the peak of the PEDv outbreak this year already past, things may be looking up for the pork industry in the last three months of this year, a report by Rabobank said. The disease’s impact on production volume turned out smaller than initially expected, and in major producing countries like the US and Canada, the decline in slaughter numbers were offset by higher weights. However, another concern is the Russian import ban affecting EU, US and Canadian markets that has changed the trade landscape for pork. Russia has resumed importing pork from China after approving imports from two Chinese pork companies, and three more are being inspected. Russia has also approved the imports of fresh pork from Thailand.
|New law offers more beef sources for Indonesia|
[21 October 2014] The recently passed Animal Husbandry and Animal Health Law has paved the way for Indonesia to import beef and live cattle from more sources. Heifers and feeder cattle can now be imported from more countries with foot and mouth disease free zones such as India and Brazil, with conditions. The country normally imports from Australia and New Zealand. Trade Minister Muhammad Lutfi said that meat prices would likely decline with the new import sources and the market would see segmentation of importers based on the type of beef and their sources. Small and medium-sized businesses could use meat from India and Pakistan, as they price their meat one third lower than the premium meat used at hotels, Mr Lutfi explained.
|South Asia receives aid to fight livestock diseases|
[21 October 2014] A new USD 2 million grant will support South Asia’s push to slow the spread of livestock diseases like foot and mouth (FMD) and avian flu (AI). The grant by Japan Fund for Poverty Reduction will be administered by the Asian Development Bank. A wealthier population means the region will need an additional 4 million tonnes of meat and 65 million tonnes of milk annually by 2020. However, animal diseases have been spreading quickly in recent years. In India, livestock losses from FMD alone are estimated at around USD 4.5 billion a year, and in Bangladesh poultry losses from AI have totalled over USD 500 million since 2007. The funds will be used to set up a cooperation framework among member countries of South Asian Association of Regional Cooperation to help cut disease rates to about 30% by 2018 from about 50% from 2012 and help bring sanitary and phytosanitary standards closer to international levels.
|Pork demand, prices in China to improve in Q4|
[21 October 2014] Growing demand as the country moves into the festive season will likely push up prices of pork in China in Q4 2014 and into the first quarter next year, said Rabobank in its report on the global pig industry. This, together with declining feed costs, is expected to result in pig farmers finally making money this year. The report said that many small and even mid-sized individual pig farms have quit after the market depression this year. This will lead to more consolidation in the country’s hog farming structure, with large commercial farms expected to benefit from these structural changes. The higher demand is also seen to boost imports and encourage herd rebuilding.
|Sumber Rejeki expanding its native chicken hatchery|
[20 October 2014] Sumber Rejeki Farm in Kediri, Indonesia is expanding the capacity of its Kampung (native) chicken hatchery to meet the increasing demand for its SRF branded Kampung DOC. Its first hatchery has six incubators with a capacity of 20,000 eggs each. “This year we will set up a second hatchery with incubators from China,” Director Untung Ali Santoso told Asian Agribiz. Sumber Rejeki is one of the largest native chicken breeders in Java. “In Java, total native DOC produced per month is around 1.5 million,” said Mr Ali. His DOCs are distributed in Java, Sumatera, Kalimantan and Sulawesi.
|WTO rules against India's ban on US chicken imports|
[20 October 2014] The World Trade Organisation's (WTO) ruling against India's ban on imports of chicken from the US, has opened the doors to competition. India has 60 days to appeal against the ruling and around six months to deal with the challenge to its poultry industry, which has remained protected so far from global competition. USA Poultry and Egg Export Council (USAPEEC) and National Chicken Council (NCC) representatives said though the ruling does not give the US automatic access, it is key towards opening the market. India banned US poultry products in 2007 to protect the industry from avian influenza. USAPEEC President James Sumner called the ban thinly veiled protectionism, while NCC President Michael Brown said the ruling should send a signal to India and other countries that have placed a similar ban, that they are inconsistent with WTO rules.
|Cargill Vietnam wins award for best pig feed|
[20 October 2014] Cargill was presented with the best pig feed award for 2014 by Vietnam’s Ministry of Agriculture and Rural Development’s (MARD) livestock department. The award, presented at the Vietnam Livestock Industry Awards 2014, honours individuals and organisations for initiatives and their great contribution to the development of Vietnam’s livestock industry. The accolade for Cargill’s efforts with its pig feed is timely. Cargill recently completed a USD 20 million animal feed mill expansion in Vietnam’s Binh Dinh province, one of Cargill’s eight compound feed mills in Vietnam.
|Hudhud causes significant loss to AP poultry sector|
[20 October 2014] The Hudhud cyclone that hit Visakhapatnam recently has caused losses to the tune of USD 81.5 million in terms of bird loss as well as damage to infrastructure, according to V Sunder Naidu, President of India’s Andhra Pradesh Poultry Federation. Mr Naidu said: “There are about 7.5 million birds in farms in Visakhapatnam, Vizianagaram and Srikakulam, of which as many as 3.5 million perished in the cyclone. Both layer and broiler segments suffered badly.” He said both the state and union governments should help the farmers, as most were uninsured.
|China wants to expand list of approved pork suppliers|
[20 October 2014] Pork imports by Russia from China have resumed for the first time since 2004, according to the website of Russia’s consumer watchdog Rosselkhoznadzor. 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. Russia’s Trade Representative in China Alexei Gruzdev confirmed that eight new companies are waiting for approval to start exporting pork to Russia.
|Online meat seller charged in Singapore|
[20 October 2014] A woman who was selling meat products from China online to a Singaporean audience has been fined USD 6598 in court for the illegal imports. The Agri-Food & Veterinary Authority of Singapore (AVA) said that it received public feedback in August regarding the online sale of meat products, such as duck, beef and chicken. AVA seized 52.8kg of assorted meat products from China from the seller’s residence and also detained an incoming consignment of 85.68kg of assorted meat products, imported by the woman. “China is not an approved source for the import of meat, meat products, poultry and poultry products,” it said.
|Menara Feedmill targets niche markets|
[17 October 2014] East Java-based feed miller Menara Feedmill is expanding the capacity of its existing feedmill in Tulungagung by adding two new lines of extruder and pelletizer. “The new lines will be operational early next year,” Director Henry Haryono tols Asian Agribiz. With the new lines, Menara can produce 10,000 tonnes of feed per month. “Demand for our catfish and quail feeds has grown over the last four years. We are not a big player, but we know the market that we want to target. We target niche markets like catfish and quail. We help the farmers with good quality feeds, farming management and even find the market for their harvest,” explained Mr Henry. He also revealed that next year it plans to produce dairy cattle feeds, pig feeds and pet food.
|Japan, broiler production forecast higher|
[17 October 2014] Japan’s broiler production could reach 1.35 million metric tonnes in 2015. The industry is forecast to end this year with production of 1.34mmt, up from the 1.33mmt recorded in 2013. The sector has faced several difficulties in recent years, ranging from man-made and natural disasters to 2013’s particularly hot summer. According to the USDA the Japanese market for broiler meat has recorded solid demand and relatively high prices this year, although total consumption has fallen slightly, and this is expected to continue into 2015. Imports of broiler meat from the US and particularly from Thailand have risen, while those from Brazil have remained flat.
|Indonesia plans bank for seafood lending|
[17 October 2014] Joko Widodo, the incoming Indonesian President, plans to establish a bank for lending to fisheries and aquaculture development projects, said Rokhmin Dahuri, of the Indonesia Aquaculture Society. Speaking at the Global Aquaculture Alliance’s annual Global Outlook on Aquaculture Leadership (GOAL conference in Ho Chi Minh City recently, Mr Dahuri stated Indonesia is strong in raw material seafood production, but is lagging in value-added seafood processing. Part of the reason for this is high interest rates and a climate in which banks are bearish on lending to the sector. The Widodo government plans to create a “paradigm shift” in aquaculture and fisheries and is putting the “highest priority” on its development in the coming years, said Mr Dahuri.
|Vietnam considers lifting ban on French beef|
[17 October 2014] Vietnam's Ministry of Agriculture and Rural Development has been tasked with assessing whether to lift the ban on beef imports from France once the products meet Vietnamese requirements. Deputy Prime Minister Hoang Trung Hai instructed the ministry to work closely with relevant agencies and French exporters to address technical problems and facilitate bilateral trade. In 1998, the ministry issued a decision on the temporary import ban on ruminants and their products from countries affected by mad cow disease, including France. Currently, France exports beef products to some Asean countries, including Singapore, Thailand, Myanmar, Cambodia and Laos.
|Nepal government increases subsidy to boost livestock insurance|
[17 October 2014] Livestock insurance has been slow in taking off in Makwanpur, Nepal despite government efforts with only 307 head of cattle being insured in the last fiscal year due to lack of awareness and complicated procedure, said the Makwanpur Livestock Service Office (MLSO). The government had earmarked USD 1.3 million for crop and livestock insurance in the last fiscal year’s budget. “We have increased the subsidy from 50% to 75%. We believe the rise in the subsidy will encourage farmers to get their livestock [cattle, buffalos, pigs and goats] insured,” said MLSO Chief Surya Prasad Poudel. President of the Dairy Producers’ Cooperative Association, Narayan Devkota commented: “The program may be effective if it is implemented through the cooperatives run by livestock farmers.” Currently eight cooperatives in the region are engaged in expanding livestock insurance.
|Beef supply hampers meat processors’ expansion|
[16 October 2014] The meat processing industry in Indonesia is still concentrated in Java and Bali, according to Haniwar Syarief, Executive Director of the National Meat Processors Association (Nampa). “There are only two meat processors operating in Sumatera and Kalimantan namely CP Indonesia and Adilmart.” Mr Haniwar told Asian Agribiz that limited beef supply is preventing meat processors from expanding beyond Java and Bali. “However I see that they have strengthened their product distribution by setting up cold store warehouses in different regions in Indonesia.”
|First KFC in Myanmar by 2015|
[16 October 2014] Yum! Brands has teamed up with Singapore-listed Yoma Strategic Holdings to bring the KFC franchise to Myanmar. They hope to open the first outlet next year. In a statement both companies said Myanmar with its 50 million population and a growing middle class, offers significant opportunity for Yoma Strategic to grow KFC over the long term. “Myanmar offers macro potential for an international quick service franchise with a growing consumer class that 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.
|Soaring price affects availability of growing pigs |
[16 October 2014] Indonesian Swine Specialist from Karya Prospek Satwa, Alit Eka Putra told Asian Agribiz that live pigs in Bali at the moment are sold at USD 2.6/kg. “With an average production cost of USD 2.1/kg, farmers gain a profit of around USD 0.5/kg.” With Christmas and New Year festivals added to the calculation, Mr Alit said the high selling price would continue until the end of the year. “With this situation, it’s difficulty to get pigs for fattening. Farmers are keen to increase their pig population because of the favourable price.”
|Taiwan increases poultry imports from the US|
[16 October 2014] High pork prices has led to an increase in US poultry exports to Taiwan, with numbers up significantly during the first half of 2014, according to the latest Global Agricultural Information Network report from the US Department of Agriculture’s Foreign Agricultural Service. Between January and July this year exports of poultry increased 44.8% in volume (87,415 tonnes) compared to the same period in 2013. Last year the US exported 94,306 tonnes of poultry products to Taiwan. Taiwan’s Agricultural Trade Office predicts the year could be a record year for US poultry to the country as more consumers are making the switch from pork, which has seen prices increase dramatically following the outbreak of porcine epidemic diarrhoea virus in Taiwan earlier this year.
|US beef exports to Asia to remain strong|
[16 October 2014] US beef exports to Asia remains in good shape and, based on initial data for September, shipments to Hong Kong and Japan are expected to show increases. The CME Group’s livestock report notes that despite the strong US dollar, exports to South Korea in August were up almost 3000 tonnes or 43% while exports to Japan, the top market for US beef at 21,528 tonnes, were also 1% higher. “Demand for US beef in Asian markets has been exceptionally strong and this has supported prices for cuts such as chuck rolls, briskets and short plates, which traditionally go to Asian markets. Currency rates will be especially important next year, especially in a tight supply environment. Asian buyers have shown they are willing to pay to secure product,” said the report.
|Pakistan’s low egg consumption offers opportunities|
[16 October 2014] Pakistan’s poultry industry produces 12.5 billion table eggs annually, while per capita consumption of egg is only 69-70. “Eggs are a good and cheap source of protein. The current low consumption poses a good opportunity for the industry to increase egg production,” said Chairman of the Pakistan Poultry Association North Zone Dr Mustafa Kamal. He continued that efforts should be made to encourage higher egg consumption "as only a healthy generation can take a country to progress and prosperity”.
|Asia-Pacific countries draft blue growth plan|
[16 October 2014] Six countries in Asia-Pacific, the world’s largest consumer of fish products, have come together to draft a work plan on sustainable intensification of aquaculture for ‘blue growth’, the Food and Agriculture Organisation announced. Representatives from Bangladesh, Indonesia, Philippines, Sri Lanka, Timor-Leste and Vietnam are working with FAO global and regional fishery and aquaculture experts to develop this. “FAO is supporting each country with its own initiatives in blue growth strategies and work plans,” said Hiroyuki Konuma, FAO Assistant Director-General and Regional Representative for Asia and the Pacific.
Growing opportunities in halal food sector
[15 October 2014]
The halal industry is one of the fastest growing global businesses as the world’s Muslim population continues to grow steadily. In Asia the Muslim population is said to be 1.08 billion. The prospected halal food market, meanwhile, is valued at USD 385 billion. Growth in the Muslim population, rising incomes and increasing demand for safe, high quality food are main factors driving the growth in the halal market. The Asian Agribiz team takes a micro-level look at developments, concerns and opportunities in this market.
Indonesia authorises legislation of halal
With a population of nearly 250 million people, 85% of whom are Muslims, Indonesia is an attractive and potential market for halal food products. The Indonesian government recently authorised the legislation of halal product assurance. According to the National Meat Processors Association (Nampa) Executive Director Haniwar Syarief, prior to this halal certification was only offered by the Islamic body, Majelis Ulama Indonesia. “With this legislation all food products, both local and imported products, must obtain a halal certificate from the Ministry of Religion,” Mr Haniwar told Asian Agribiz.
Halal products need marketing and innovation
With a large Muslim population and a good halal certification system, Indonesia should be able to capture a large market share of the processed meat market in Muslim countries, said National Meat Processors Association (Nampa) Executive Director Haniwar Syarief. Yet Indonesian processed meat products are only sold locally. “Nothing is exported,” he said. According to him, the price and unsteady supply of beef as well as poor marketing make Indonesian products less competitive globally. “Meat processors must embrace innovation and market traditional products globally.”
Cooperation to help Indonesia export halal-certified beef
Indonesia and Australia have signed an agreement on bilateral cooperation aimed at prioritising cattle procurement and supply of beef to build up Indonesia’s food security. Himawan Hariyoga, Indonesia’s Investment Coordination Agency Promotion Deputy, said through the cooperation Indonesia would be able to sell halal-certified beef to Muslims in Southeast Asia and the Middle East. “We have to partner with countries that have advanced technologies to develop the sector.” The deal will see Australia improving abattoirs in Indonesia. Australia is also committed to channel USD 60 million to Indonesia over 10 years.
Optimistic over regional economic integration
Meat processors in Malaysia are looking forward to the regional economic integration next year. “They are looking forward to the opening of the market. Countries should be given a chance to promote their products in the region,” Jeffrey Ng, Secretary, Federation of Livestock Farmers’ Associations of Malaysia, told Asian Agribiz. Malaysian processors are facing a tough time breaking into the regional markets. Broiler producers have been trying hard to penetrate the Indonesian and Philippines halal market but have been unsuccessful for many years unlike duck meat exporters who have had some luck.
Investments in cooked products still lagging
There is a market for Malaysian halal processed meat products especially since Malaysia’s halal status is well-regarded in the region. However, the industry needs to catch up with Thailand’s standards. “Thailand is currently doing cooked products really well. Malaysia, on the other hand, is still within the fresh and frozen meat bracket,” Alex Ding, Federation of Livestock Farmers’ Associations of Malaysia, Processing Unit Chairman, told Asian Agribiz. He said there are one or two companies that have invested in cooked products but investment in the area is still lagging. Malaysia is a pioneer in halal certification, having introduced a national standard about four decades ago. The standard is accepted by CODEX and has been replicated by other countries, making it one of the most recognised in the world.
Malaysia forms USD 88m halal fund
Malaysia launched a USD 88 million business development fund which it hopes will push more domestic businesses into the international market. According to Datuk Seri Jamil Bidin, Chief Executive of the Halal Industry Development Corporation, this is an initiative to help the country become one of the world’s biggest exporters of halal products and services. “The fund will provide entrepreneurs financial aid for halal-related projects and businesses with the potential to increase halal production and export capacities,” he said.
Concern over halal hub in Labuan
The USD 26 million Halal Distribution Hub in Labuan, East Malaysia, was planned with the aim to make Labuan a centre for the export of processed halal-compliant meat to Japan, Taiwan and Korea as well as to offshore platforms and supply boats in the area. According to Datuk Dr J Loga Bala Mohan, Deputy Minister for the Federal Territories, the hub has failed to make a single export. A three-month deadline was set for the hub to move ahead and for new investors to be brought in. The hub has modern processing facilities, storages and offices. In 2010 Malaysia imported USD 8.59 billion worth of halal food products and exported USD 5.49 billion.
China’s food safety lapses an opportunity for Malaysia
China’s food safety issues have made the country a hot market for Malaysia’s halal foods. Datuk Seri Jamil Bidin, Chief Executive of the Halal Industry Development Corporation said China is now the top export market for Malaysian halal foods. “China’s halal market is worth USD 2 billion and is growing exponentially,” said Mr Jamil. “Halal is seen as an assurance of safety and quality in China. When people see the halal certification from Malaysia they know that it has gone through stringent quality and safety checks,” he added.
Philippine companies urged to seek halal certification
Philippine food manufacturers must seek halal certification to take advantage of the growing market for halal products. Atty Abdul Rahman RT Linzag, President and CEO of the Islamic Da’wah Council of the Philippines (IDCP) told Asian Agribiz that without halal certification, Philippine products will not gain market access. “The halal market is now no longer just limited to Muslims. It has found itself to be a certification of quality.” There are now more than 700 companies that have been certified by the IDCP, which is the only halal certifying organisation in the Philippines that is a member of the World Halal Council.
Slaughterhouse under construction for halal market
The Philippines is building a USD 450,000 halal slaughterhouse in Cotabato City to meet increasing demand in Mindanao as well as the export potential expected with the regional economic integration next year. Livestock Development Council Executive Director Manuel Jarmin said they chose Cotabato City “because it already has a sustainable livestock population and they slaughter goats daily”. Meanwhile, goat and sheep farmers in Davao City have called on government officials to build a halal slaughterhouse so that their products will not be processed and housed in the same facility where pigs are slaughtered.
Japan prepares for halal expo in November
In response to a recent surge in Muslim tourists to the country, Japan is planning for a halal-themed international expo to be held in Chiba Prefecture next month. The two-day Japan Halal Expo 2014 hopes to boost public awareness of halal fare in the country. More Japanese campuses are opting for halal menus to cater to a growing number of Muslim students. Among the centres already serving halal food are the Tokyo Business Association and Yamanashi University, one of 19 universities that offer halal options on their menus. The University of Tokyo was the first to offer halal meat in 2012.
|Indonesia seeking new markets for its chicken|
[14 October 2014] In a forum conducted in Jakarta last week, the Indonesian Poultry Farmer Organisations Association (Gopan) complained of unfair business competition with poultry integrators. A Gopan official Kadma Wijaya said that many integrators still sell live birds in wet markets. “With their capital and technology, they should be focusing on dressed bird and processed chicken markets only.” Director General of Livestock & Animal Health, Syukur Iwantoro responded that this is because both farmers and integrators are targeting the domestic market. “To address this, we are working with the Ministry of Trade to tap into international markets. We are in talks with our counterparts in Singapore and the Middle East,” Mr Syukur told Asian Agribiz.
|CAB to buy stake in Singapore processing firm for USD6m|
[14 October 2014] Malaysia's CAB Cakaran has entered into a Heads of Agreement with several parties to acquire a 51% stake in Singapore-based Tong Huat Poultry Processing Factory Pte Ltd for an indicative USD 5.93 million. Tong Huat is an operator of poultry slaughter house and supplier of slaughtered poultry. “Given the geographical coverage of Tong Huat in Singapore, the board believes that the proposed acquisition represents an opportunity for CAB to tap into the Singapore poultry industry, where currently it does not have a significant footprint, to expand the business geographically and improve its presence regionally,” CAB said in a statement to the Malaysian bourse. There are 11 licensed slaughter houses in Singapore, out of which nine are involved in the chicken slaughtering business.
|Sekar Bumi’s new plants to start operations in 2015|
[14 October 2014] Sekar Bumi, one of the largest Indonesian shrimp processors, hopes to put its two new shrimp processing plants into operation by next year. President Director Harry Lukminto said that the plants located in Cikupa and Lamongan will have installed capacities of 30,000 tonnes/year and 60,000 tonnes/year, respectively. “With the addition of the two new plants, our production capacity next year will increase by 200%.” This year Sekar Bumi targets to increase its processed shrimp products sales by 30% from USD 100 million in the previous year. The company processes shrimp into a variety of products namely dimsum, meatballs and wonton under the Bumifood and Mitraku brands.
|Corn demand in SE Asia on the rise|
[14 October 2014] Southeast Asian countries’ demand for corn as livestock feed is growing, according to a US Grains Council’s report. In 2004, the region’s feed sector corn demand was 15 million tonnes. Less than a decade later, that demand has grown to more than 25 million tonnes, a 66.7% increase. This rise in demand is amid a decrease in the availability of local corn supplies. Right now, the region fills that demand with imports from as many as 16 other origins, with India, Argentina, Brazil, and the US and Thailand accounting for the majority of total corn trade in Southeast Asia. The region’s corn imports in 2013 hit an all-time-record of 8.5 million tonnes (334.6 million bushels), registering a 13% growth rate year-on-year and 60% growth rate in the past five years.
|China approves veterinary bird flu vaccine|
[14 October 2014] China has approved a newly developed inactivated vaccine for poultry against a strain of the H7N9 avian influenza. Developed by the National Reference Laboratory Avian Influenza at Harbin Veterinary Research Institute in north-eastern China, the veterinary vaccine is now reserved as ‘technology for emergencies’, China’s Ministry of agriculture said in a statement. The ministry added the vaccine showed great efficacy and safety in tests and could completely prevent viral replication. “Inoculation can be immediately concluded, if needed, to prevent the outbreak of H7N9 avian flu,” it said.
|Asia shrimp production recovering after ‘perfect storm’|
[14 October 2014] With early mortality syndrome (EMS), Thai labour issues, illegal fishing and the loss of Generalised System of Preferences (GSP), Robins McIntosh, senior vice President at Charoen Pokphand Foods (CPF), labelled 2014 as “the perfect storm” for Asia’s farmed shrimp production, reported Undercurrent News. EMS hit Thailand’s production in 2012 and 2014 is now seen as a year of change, with revised management and high expectations on new genetics to increase shrimp survival rate, said McIntosh. Thai shrimp production is expected to reach approximately 220,000 tonnes this year, McIntosh said. That is down from 250,000 tonnes last year and significantly below levels of more than 500,000 -600,000 tonnes which Thailand produced before EMS, but it is still higher than some feared. Asia overall will see a higher production in 2014, he said.
|Higher pork prices brings down margins in Taiwan|
[14 October 2014] With pork prices in Taiwan on the rise due to the outbreak of the Porcine Epidemic Diarrhoea virus, food service operators there have reported lower margins in pork sales. While Taiwan’s Council of Agriculture sees pork prices stabilising in the first quarter of 2015, many food service operators have turned to chicken. The US Department of Agriculture’s Foreign Agricultural Service (FAS) said “as a result, demand for poultry has been increasing in the second and third quarters of 2014, which is when local pork prices hit a record high.” The FAS said in the first seven months of this year, US exports of poultry products to Taiwan was up 45%.
|Ciomas to build three slaughterhouses per year|
[13 October 2014] Ciomas Adisatwa, a subsidiary of Indonesia’s Japfa Group, targets to grow its chicken processing business by 15% each year, according to Plant Manager Fejril Nizar. He said that at the moment the company operates 14 chicken slaughterhouses located in Lampung, North Sumatera, West Java, Central Java, East Java, Bali, Kalimantan and South Sulawesi. “The average slaughtering capacity of the plants is 2500 birds/day,” Mr Fejril said. Senior Vice President – Head of Broiler Division, Achmad Dawami revealed to Asian Agribiz that the company plans to set up three new modern slaughterhouses in 2015 – two in Sumatera and one in Kalimantan. Mr Fejril added: “Each year we target to set up three new slaughterhouses.”
|Alfamart to produce its own broilers|
[13 October 2014] Alfamart, a leading minimarket operator in Indonesia, will venture into broiler production through its subsidiary PT Alfindo, Chairman of Indonesian Poultry Slaughterhouses Association, Achmad Dawami told Asian Agribiz. “They are now setting up commercial broiler farms in Serang, Banten with a temperature-controlled housing system. And they aim to produce around 8 million birds/month that will be channelled through its outlets in chilled and frozen form,” said Mr Dawami.
|Thailand defines growth plans at 'World Egg Day' celebration |
[13 October 2014] Thailand celebrated 'World Egg Day' with a campaign to promote local consumption and raise it to 300 eggs/person by 2018, from 200 eggs/person in 2012. Organised by the National Egg Board and layer farm operators, egg producers and livestock industry participants, the campaign from October 10-14 is part of the country’s egg strategy for 2014-2018 which is aimed at developing the egg industry for sustainable growth.
|Ross Asia meeting offers broiler industry updates |
[13 October 2014] Around 100 leaders from the broiler industry in the Asia Pacific region are in Phuket, Thailand this week to attend the Ross Asia Association Meeting where updates on issue relevant to the industry will be presented. Topics at the forum will include biosecurity and compartmentalisation, food safety in chicken meat, trend and drivers in the Asian poultry industry and genetic update and product development. Company updates will be presented by the new CEO of Aviagen Broiler Breeding Group Jan Henriksen.
|GNFC, EcoPhos to set up DCP plant in Gujarat|
[13 October 2014] India's Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) and Belgium-based EcoPhos have signed an MoU for a JV to set up a di-calcium phosphate (DCP) plant in Gujarat state. The plant will have a capacity of 150,000 tonnes/year of animal feed grade DCP. It will be an eco-friendly, energy efficient plant with modern technology provided by EcoPhos, utilising hydrochloric acid and low-grade rock phosphate as feedstock. EcoPhos CEO and Founder Mohamed Takhim said: “This is a substantial step in the realisation of EcoPhos target to become the global market and cost leader in animal feed phosphates through its animal feed division.”
|China bans pig products from Estonia|
[13 October 2014] China’s general administration of quality supervision, inspection and quarantine (AQSIQ) has banned pigs and pigmeat products from Estonia over concerns about its outbreak of African swine fever, following the discovery of cases in September. Any pigs, wild pigs and related products that were shipped since September 2 from Estonia will be returned or destroyed. Also any such products posted or carried by passengers travelling from Estonia into China, once discovered, will be returned or destroyed. The ban was issued “to prevent disease from entering China and to protect the safety of livestock and human health,” said AQSIQ.
|Vietnam releases new plan to boost pangasius industry|
[13 October 2014] Vietnam’s Ministry of Agriculture and Rural Development has approved a pangasius farming and processing plan in the Mekong Delta area until 2020. This plan includes a gradual reduction in the surface intended for farming for the next two years but production and exports will increase, Vietnam Association of Seafood Exporters and Producers (Vasep) said. By 2020, it is expected this farming area will be 7600-7800ha. The plan will also contemplate a new technique to improve pangasius productivity so as to increase the current rate of 160 tonnes/ha to 180 - 200 tonnes/ ha so that production will surpass 1 million tonnes in 2015, reaching 1.2 million tonnes in 2016, with annual export turnover of at least USD 2 billion. Another planned measure is the reduction of stocking density from the current rate of 35-40 pangasius/m2 to 20-25 pangasius/m2 while the use of antibiotics sewage discharged into rivers will also be dropped.
|Thai swine bodies strengthens efforts against beta agonist |
[10 October 2014] The Swine Raisers Association of Thailand and the Department of Livestock Development are working together to stamp out the use of beta agonist as a lean meat promoter by introducing a special “test kit” to inspect pig meat available for retail, Kiddivong Sombuntham, Secretary-General of the association told Asian Agribiz. “The test kit will make it easy to test pigmeat in fresh markets and butcher shops and other retail channels. If present, this can be tracked back to farms of origins.” Use of beta agonist is prohibited by law in Thailand.
|Three poultry firms to invest in Papua|
[10 October 2014] According to Head of the Animal Husbandry and Animal Health Affairs in Indonesia’s Papua, Petrus D Paseren, three poultry companies have expressed interest to invest in breeding and commercial broiler and layer farms in the province. “One of the three is Charoen Pokphand that will invest in Abepura district. The other is PT Harvest Pulus Papua that will focus on egg production in Muara Tami district,” said Mr Petrus. In the near future, Mr Petrus added that a meat producing company will invest in Muara Tami district. “Hopefully the companies will be able to meet the demand for better quality eggs and meat.”
|TRIS Rating affirms stable outlook of GFPT|
[10 October 2014] TRIS Rating in Thailand has affirmed a BBB+ rating of GFPT with ‘stable’ outlook. The rating reflects the company’s proven record in the poultry industry taking into consideration GFPT’s reliance on the poultry segment, the cyclical nature of the industry, disease challenges and changes in tariffs imposed by importing countries. The ‘stable’ outlook reflects the expectation that GFPT will be able to maintain its competitive position in the Thai poultry industry. In 2013 through the first six months of 2014, the live chicken and fresh meat segment contributed 46% of GFPT’s total revenues, followed by feed (30%), and cooked products (24%). Revenues from domestic sales contributed 80% of total sales in 2013 through the first six months of 2014, with the remaining derived from exports.
|China to increase beef, lamb imports|
[10 October 2014] China’s State Council said the country will increase imports of beef and lamb. The country’s high tariffs for both beef and lamb have resulted in smuggling and food safety concerns, especially for beef, as demand continues to grow. Led by Premier Li Keqiang, the council meeting discussed how to “determine the import policy measures to strengthen and promote the further opening [of trade],” said a Chinese government communiqué, and with ministers focusing on current supply shortages. The meeting noted the import promotion strategies needed to “strengthen technology, products and services imports, meet the demand of domestic production and consumption, improve quality, and promote entrepreneurship and innovation”.
|EU rejects Indian vannamei |
[10 October 2014] In what appears to be a big setback to India’s target to double seafood exports from USD 5 billion to USD 10 billion by 2020, a large contingent of vannamei shrimp (24 containers) sent from Andhra Pradesh has been rejected by the EU for antibiotic excess. Lack of proper monitoring mechanism is leading to frequent rejection of export consignments from India since the past few months, according to Deputy Director of Marine Product Export Development Agency, Ansar Ali. “Since July, the rejection rate has been going up,” he said. The Federation of Indian Fishery Industries has sought a meeting of all the stakeholders to discuss the issue.
|Enzymes aid better utilisation of poorly digested feed ingredients|
[10 October 2014] The rising cost of traditional feed raw materials like corn have led to increased use of alternative feedstuffs. But the high fibre content of these feedstuff makes them less digestible to pigs and poultry. However, with the appropriate enzyme combinations, pigs and poultry can effectively utilise poorly digested ingredients, Dr Martin Nyachoti of the University of Manitoba, told participants to the 27th Annual Convention of the Philippine Society of Animal Nutritionists held on Wednesday in Parañaque City, Philippines. This will give feed manufacturers and animal producers more flexibility as well as cost savings in feed formulation.
|US soy shipments most predictable|
[10 October 2014] Some international buyers prefer US soy to that from top competitors Brazil and Argentina because they can count on it reaching them in a timely manner, according to a new soy-checkoff-funded study. In fact, foreign soy buyers often pay as much attention to the timeliness of a shipment delivery as they do to the price as late shipments incur costs in trying to find replacement crop, slowing down crush facilities and other problems that arise when shipments arrive later than promised. “Our industry depends on the reliability of our transportation system to keep us competitive in the global market,” said Dwain Ford, United Soybean Board International Opportunities Target Area Coordinator. The study gathered input from buyers in China, Taiwan, Thailand and Vietnam.
|Kaona Poultry plans to build new hatchery |
[09 October 2014] Kaona Poultry Co Ltd, a broiler integrator in Ubon Ratchathani province in the northeast of Thailand, plans to build a new hatchery that will enable the company to raise its capacity to 800,000 DOC per week from 500,000 currently. “We want to adopt newer and better technology for our hatchery,” Suchet Triyanggulsri, Vice Managing Director, told Asian Agribiz. He added that he is considering a single-stage system. The plan to expand the hatchery capacity corresponds with the company’s move to establish a new processing plant that will raise its slaughtering capacity to 100,000 birds per day from 70,000 currently, Mr Suchet said. The construction of the new processing plant is expected to start in late 2015 at a cost of around USD 18.38 million. The hatchery expansion plan will be implemented after the construction of the new processing plant, he said.
|Indon farmers urged to venture into processing|
[09 October 2014] Chairman of the Indonesian Poultry Slaughterhouses Association (Arphuin) Achmad Dawami has predicted that this year Indonesia will produce around 2.4 billion broilers. In 2015, the figure will reach 3 million, he said. According to him, independent farmers should see the figures as a potential to venture into poultry processing. “Our industry is changing. Consumers prefer quality and safe products. They cannot rely on wet markets anymore if they want to survive in this industry,” Mr Dawami told Asian Agribiz. He said farmers with broiler production of 500,000 birds/month should have a slaughterhouse. While farmers with production lower numbers should cooperate with other farmers to set up a joint slaughterhouse.
|McDonald’s Japan predicts USD157m loss after meat scandal|
[09 October 2014] McDonald's Japan has predicted a USD 157 million net loss this year after its chicken supplier said it mislabelled expired meat. Sales will probably drop 15% year-on-year to USD 2.04 billion, McDonald's Holdings Co. Japan Ltd. said in a statement. Though McDonald’s Japan vowed to stop using chicken from the Chinese supplier Shanghai Husi Food Co., as soon as the news broke, saying it would turn to Thailand for chicken instead, consumers were not reassured. Same store sales in Japan, where there are approximately 3,000 McDonald’s outlets, were 25% lower in August 2014 than in August 2013 – the largest drop in year-on-year McDonald’s Japan has seen since it went public in 2001.
|WH Group refinances Smithfield acquisition loan|
[09 October 2014] WH Group, the world’s largest pork company, has refinanced USD 1.5 billion in outstanding debt stemming from its 2013 acquisition of Smithfield Farms, the largest US pork producer. WH Group originally borrowed USD 4 billion, mostly from the Bank of China, to finance the Smithfield deal. The company repaid part of that debt in August with proceeds of a USD 2.36 billion Hong Kong IPO. The remaining debt is being refinanced with a 60-month term loan at a variable interest rate from 2.48% to 3.08% percent above LIBOR, the standard London interbank rate, WH Group said in a statement issued through the Hong Kong Stock Exchange. Despite its IPO listing and repayment, the company still suffers from a debt-equity ratio above 100%.
|China approves Mexican beef imports|
[09 October 2014] China has agreed to allow beef imports from Mexico, part of its continuing search for new sources of beef to satisfy soaring domestic demand. The agreement was signed in Mexico City by representatives of SENASICA, the Mexican agricultural safety authority, and AQSIQ, China’s administration of inspection and quarantine. With the domestic beef price at record levels, China has been expediting import approvals, and the two sides said they expected Mexican beef exports to begin by the end of the year. Japan and the United States were Mexico’s two largest beef customers last year. The Mexican Ministry of Agriculture also said AQSIQ representatives were considering three pigmeat slaughterhouses and five dairies for possible export certification.
|Stable supply of feed raw material a problem for Asean|
[09 October 2014] Even with the coming economic integration, the stable supply of raw material for animal feeds will remain a big problem for the Asean feed, poultry, and livestock producers in the near future, Dr Leonardo Gonzales, President of Sikap/Strive Foundation and a leading researcher in Philippines agriculture, told participants to the 27th Annual Convention of the Philippine Society of Animal Nutritionists held yesterday in Parañaque City, Philippines. “The Asean integration cannot totally solve the problem because of supply scarcity and limited intra-regional trade,” he said, adding that “raw materials will still be sourced” from outside the region.
|Flood affects poultry production in Jammu & Kashmir|
[09 October 2014] The recent floods in Jammu and Kashmir in India has affected poultry production. The losses might run up to USD 81.4 million, according to Syed Altaf Gilani from The Poultry Consultancy (TPC). The Kashmir valley supplies 60-70% of the total poultry production in the state. The total egg production in the valley was around 150 million a year, while the broiler requirement is around 50 million birds a year. Out of the total broiler requirement, 35 million birds are reared locally, while 15 million birds are imported from Punjab and Haryana. "Up to 40% of the industry has been affected,” said Mr Gilani.
|Pork supply assured for holidays|
[08 October 2014] Barring any unforeseen events like weather disturbances, there will be enough pork meat to meet the increased demand in the Philippines during the Christmas season. Pork Producers Federation of the Philippines President, Edwin Chen told Asian Agribiz although the country experienced tight supply during the first half of this year, production has been on the rise. Furthermore, the slower demand during the third quarter of this year has increased inventory. “The excess inventory will help meet the surges in demand this December,” said Mr Chen. He said demand is already picking up and farm price of live pigs is starting to rise again.
|Dagsap’s new slaughterhouse is up and running|
[08 October 2014] Indonesia’s meat processor Dagsap Endura Eatore has recently put its new chicken slaughterhouse in Bantul, Central Java into operation. “The plant is running at a capacity of 4000 birds/hour,” Director Ishana Mahisa told Asian Agribiz. Mr Ishana said the plant meets demand for quality boneless chicken meat for its two further processing plants. “Before this, it was hard for us to find quality boneless chicken meat. Many of the products in the market have high water content.” At the moment, all products produced at the new slaughterhouse are for internal needs. However, Mr Ishana said it targets to sell its dressed birds and portioned cuts to hotels, restaurants, retailers as well as traditional markets in the region.
|Thai slaughterhouse can export pork to Russia|
[08 October 2014] A Thai slaughterhouse has been approved to export fresh pork to Russia, following the completion of an audit and assessment last week. Russian delegates approved the Bangkhla slaughterhouse in Chachoengsao province, said Surachai Sutthitam, President of the Swine Raisers Association of Thailand. Russia is expected to place orders for approximately 4,000 tonnes per month. It is the first time Thai fresh pork is exported to Russia.
|Bangladesh frozen food exports decline by 6% |
[08 October 2014] The export volume of Bangladesh frozen foods declined by nearly 6% to over 55,000 tonnes in the last financial year compared to the FY2012-13 due to production shortfall of shrimp and the ban on vannamei by some countries. In terms of value, exports in the last financial year, rose by over 17% to USD 638 million compared to USD 550 million in FY2012-13 mainly due to the rise in global prices of shrimp. “The country’s shrimp production is now lower than export demand,” Golam Mostafa, former President of Bangladesh Frozen Foods Exporters Association said. “Because of the shortage, we can hardly process 20% of our installed capacity,” said Mr Mostafa.
|China’s pig herd shrinking|
[08 October 2014] Genesus China reports that the Chinese pig inventory in August was 432.04 million pigs on farm and a 45.03 million sow herd. The total pig inventory is up 0.6% from July and down 5.9% from August 2013. The sow herd is down 0.8% from July and 10.0% from one year ago. In August, another 360,000 sows were removed from the total national herd. Along with 550,000 sows in July, 464,000 in June plus another 470,000 sows in May and with the 1.05 million from April, more than 2.89 million sows have been eliminated in five months. The current sow inventory is the lowest in four years. The main cause for the reduced sow herd has been the loss of farm households.
|Indonesian company buys Aussie cattle property|
[08 October 2014] The ABC reported that an undisclosed Indonesian firm has bought Edith Springs, a 9,620 hectare freehold block near Katherine. They purchased the property to background cattle before they ship them to Indonesia. The sale of Edith Springs marks the third Indonesian company to invest in the Northern Territory’s cattle industry in the last 12 months.
|Thailand launches online food trading platform|
[07 October 2014] Thailand’s Ministry of Industry and the National Food Institute (NFI) has launched a Website thailandfoodmarket.com as a wider trade channel for small and medium food companies. With this, SME food operators can connect with buyers and suppliers from every place in the world. The two authorities are keen on making this Asean’s largest online platform food hub in preparation for the Asean Economic Community (AEC) in 2015. The food products offered at this portal include fresh food, seafood, frozen food, processed food, diary and egg and egg products. Commercial trading is set to commence later this year.
|Tight supply and higher prices in beef trade|
[07 October 2014] Global beef supply is in a tightening phase, with most key producing and export regions experiencing record tight supplies, said Rabobank in its recent beef quarterly. "There is largely positive news for the industry as strong demand and tight supply are showing no signs of slowing, pushing prices, even higher," explained Rabobank analyst Angus Gidley-Baird. Although total Chinese imports in 2014 are expected to be lower than the record levels witnessed on 2013, demand for the remainder of 2014 is forecast to strengthen. Meanwhile, better supply has resulted in softening prices, impacting finishers' profitability in Indonesia. This may cause lot feeders to import fewer cattle in 2H 2014, despite issuing record permit numbers.
|Chia Tai chooses Marel for processing|
[07 October 2014] Beijing Dafa Chia Tai Co has chosen Marel Stork Poultry Processing to supply a highly automated secondary processing production line for one of its high-capacity poultry processing plants in China. The project includes equipment for automated cut-up, automated deboning and production control software enabling full traceability, Marel Stork said in a statement. Beijing Dafa Chia Tai is a subsidiary of CP Food Group, one of the world's largest food producers and a leading agricultural company in China.
|NPL's takeover to make raw material shipping efficient|
[07 October 2014] FKS Multi Agro (FKS) has joined Japfa Comfeed Indonesia and Charoen Pokphand Indonesia to acquire Nusa Prima Logistik (NPL) for USD 101,000. “The cooperation is aimed to create efficiency in feed raw material shipping to and from the dry bulk terminal of Teluk Lamong in Surabaya, East Java,” said FKS Corporate Secretary Sofia Ridmarini. NPL had earlier signed an agreement with PT Terminal Teluk Lamong to set up dry bulk facilities and transit warehouses at the terminal. FKS will control 65% of the total NPL stake, while Japfa and CP will control 17.5% each. Japfa and CP are main customers of FKS’ feed raw materials.
|Promising outlook for Indian poultry industry |
[07 October 2014] The outlook for the growth of the Indian broiler and egg sectors should be good for at least another year, Dr Kotaiah of Indbro Research and Breeding Farms predicted. Indian broiler production at 3.8 million tonnes is the fourth largest in the world after US, Brazil and China. The growth is continuing at 12-15%. Dr Kotaiah said the broiler production is growing and feedmills are getting larger. More than 60% of the feed used is commercially produced. “Processed food vendors like KFC, McD, Godrej, CP, Venkys and Amrit are growing but slowly,” he said. The layer sector with 220 million layers, is growing at 6-8% and egg prices are at a record high.
|Vasep files claim against US’ anti-dumping duties|
[07 October 2014] The Vietnam Association of Seafood Exporters and Processors (Vasep) wants to launch a case against the US Department of Commerce via the US International Trade Commission (ITC) over its imposition of duties on Vietnam’s warm water shrimp. The US department’s decision of high tariffs, will affect 32 Vietnamese exporters, namely Minh Phu Seafood Co Ltd (4.98%), Soc Trang Seafood JSC (9.75%) and 30 other companies (6.37%). Nguyen Huu Dung, Vasep Vice President, said the tariff levels are irrational. Some 31 shrimp exporters lodged a joint complaint with the ITC on September 29. Mr Dung urged shrimp exporters to manage their supply chains better and seek new markets. In the first eight months of this year, Vietnam’s shrimp exports to the US totalled USD 700 million in value, up by 80% compared to the same period last year.
ARIEF FACHRUDIN reports from International Indonesia Seafood & Meat
Conference and Expo 2014, Jakarta, Indonesia
[03 October 2014]
Processed meat products output to reach 180,000t in 2014
Total output of processed meat products in 2014 in Indonesia is predicted to reach around 180,000 tonnes, according to a National Meat Processors Association (Nampa) Chairman Ishana Mahisa. He told Asian Agribiz that in 2012 the total output was around 120,000 tonnes, dominated by three main products namely meatballs, nuggets and sausages. “Looking at the national economic growth and per capita income increase, we believe that the predicted figure can be achieved.” Due to positive growth in 2013 of about 15%, Mr Ishana said this year many meat processors increased their production capacity by setting up new plants and increasing capacity at existing plants.
Indonesia reviewing zone-based system
Mr Ishana informed that the government at the moment is reviewing the benefits of the zone-based system of importing meat. “Currently Indonesia adopts a country-based system. We cannot import beef from countries like India and Brazil due to diseases concerns. Once the system is changed to a zone-based system, we can import beef or buffalo meat from disease-free zones in India. This will be beneficial as Indian beef is much cheaper than beef from Australia.”
Three keys to be more competitive
According to Mr Ishana, to make the national meat processing industry more competitive, the government should first give priority to meat as raw material. “The government should allow us [Nampa] to import beef from India,” he said. “Second, the government should offer incentives to industries like fillers, casings, spices and salt. And the third, the government should allow us [Nampa] to import MDM [mechanically deboned meat] since local supplies cannot meet demand and also, it is relatively expensive.”
Fish processors should be close to production area
The cold chain system for seafood in Indonesia is still lagging behind China, Thailand, Malaysia and Vietnam. However, according to the Indonesian Fishery Products Processing and Marketing Association (AP5I) Chairman, Thomas Darmawan, the development of the national fish logistic system (SLIN) initiated by the government, is progressing well. “At the moment the government is setting up cold storage facilities in different regions in Indonesia. The capacity varies, depending on total fish and shrimp produced,” Mr Thomas told Asian Agribiz. To support the SLIN program, Mr Thomas said that the association has urged its members to set up fish/shrimp processing plants in production centres. “At the moment, fish/shrimp processing industry is still concentrated in Java,” he said.
Value-added products are the future
Mr Thomas predicted that value-added fish products like sushi, tempura, breaded shrimp and surimi will raise the value of the fish processing industry. To grab this opportunity, he said national fish processors should be innovative especially in product design, packaging and branding. “The market is wide open, not only for domestic consumption but also for exports to countries like Japan, the US and EU,” Mr Thomas said.
GEA promotes innovative refrigeration system
GEA Refrigeration Technologies, a subsidiary of GEA Group, showcased its innovative refrigeration systems at the show. In Indonesia, the company is a market leader in the refrigeration industry. GEA Refrigeration Indonesia Vice President Director, Bekti Setiono Pronggosiswojo told Asian Agribiz that the company supplies its systems to fishery, poultry and dairy industries. “We supply systems with industry-scale capacity. The refrigerating system we have for the compressor is an ammonia-based technology, which is better than the freon-based technology.”
|CP Cambodia to open second mill in 2015|
[02 October 2014] CP Cambodia is set to open its second animal feed plant next year. The USD 8 million plant in Pailin province, which will produce about 180,000 tonnes of animal feed per year, is slated to begin operations mid-2015, said Uthai Tantipimolphan, President of CP Cambodia. The company's first mill is in Kandal province, and CP Cambodia is the country’s largest exporter of live pigs, with exports totalling 25,000 heads during the first six months of the year, according to data from the Ministry of Commerce. The Ministry of Agriculture’s 2013 annual report said there are seven animal feed mills operating throughout Cambodia, producing around 1 million tonnes of animal feed per year. However, supply is still short.
|Singapore in fifth spot in food security ranking|
[02 October 2014] Singapore jumped from 16th to fifth out of 109 countries in The Economist Intelligence Unit’s Global Food Security Index (GFSI). “Moving up 11 notches on the GFSI is no mean feat,” wrote Khaw Boon Wan, Minister for National Development, in his blog. The GFSI measures three key areas - availability, affordability and quality and safety of food - and Singapore came in 11th, 2nd and 27th in each category, respectively. Writing that Singapore’s challenges are ‘especially acute’ due to the high reliance on food imports, he added that the “challenges can be addressed with sound policies and practical strategies”. He pointed out that the improvement in GFSI ranking was mostly due to stability in local production, sufficiency of supply and having a nutrition plan in place.
|McDonald’s to hit 500 stores in the Philippines in 2015|
[02 October 2014] Golden Arches Development Corp, which holds the franchise for McDonald’s in the Philippines, targets to reach 500 stores nationwide next year, a report by BusinessWorld said. Golden Arches CEO and President Kenneth Yang noted that the company’s expansion plan is nationwide. There are currently 430 McDonald’s outlets around the country with at least another 50 outlets under construction.
|Global dairy prices hit six year low|
[02 October 2014] Fonterra, the world’s largest dairy product exporter slashed its milk purchase price to a six-year low due to an ongoing fall in global dairy prices. The co-operative cut the price it pays its farmer shareholders for raw milk to USD 4.26/kg of milk solids from a previous forecast of USD 4.6, as expected by many economists. The forecast was the lowest since the 2008/09 season. Pent-up milk powder inventories in China, where demand has soared, and a rise in global supply have knocked world prices from last year’s record highs, and the co-operative said it expected prices to remain volatile in the coming months. The downgraded forecast reflects a 44% tumble in global dairy prices so far this year and represents a sharp fall from a record-high pay-out of about USD 6.5 for the year ended July 2014.
|Private sector to aid Vietnam cattle industry|
[02 October 2014] Australian beef flooding the Vietnam market could wipe out the domestic industry. Nguyen Dang Vang, Chairman of the Vietnam Animal Husbandry Association, said Vietnam imported 3000 Australian cows in 2012, but by 2013 the figure jumped to 70,000. In the first half of 2014 alone, 72,000 Australian cattle were imported. High demand has attracted local investors. The Hoang Anh Gia Lai Group, a real estate developer, has launched a USD 300,000 project to breed 236,000 cows, including 120,000 milk cows and 116,000 meat cows. The Duc Long Gia Lai Group, has injected USD 520,000 into a 125,000-cow project. Meanwhile, a banker and the owner of sugar company Thanh Thanh Cong has kicked off a project to breed 100 Kobe cows.
|QL starts buying up Lay Hong shares|
[01 October 2014] Malaysia's QL Resources Bhd, which launched a voluntary takeover offer for Lay Hong Bhd, bought 544,700 Lay Hong shares last Friday, reported The Star. The company announced to the local bourse on Monday that it acquired the shares at USD 1.05 each. Last week, QL Resources – which had then owned 26.81% of Lay Hong – made the takeover offer after its nominee did not get re-elected to Lay Hong’s board, being its second-largest shareholder. At USD 1.05, this was below the offer price of USD 1.07 a share. QL is the largest egg producer in the country with a production of 3.2 million eggs/day. Lay Hong has been in the egg farming business since the 1960s. It produces 1.8 million eggs/day and 1.5 million chickens a month. Its NutriPlus egg brand is well-established among retailers, and has a 50% market share in Peninsular Malaysia.
|Corn post-harvest facility seen to boost output|
[01 October 2014] Philippine Agriculture Secretary Proceso Alcala inaugurated the Quezon Agri-Pinoy Trading and Processing Centre, a corn post-harvest facility in Quezon Province in Southern Luzon that is expected to help boost corn production in the region. The 5000 sqm facility includes corn dryer, corn sheller, hammer mill, cassava chipper and granulator. Mr Alcala said the centre will generate income for corn farmers as trading facilitator and service provider, and will facilitate the trading of marketable corn stocks of farmers to bulk buyers who offer the highest possible price for volume deliveries. It will also provide services such as trading, warehousing, drying, shelling, land preparation, and trucking to participating farmers.
|Kepco commissions new mill in Mala|
[01 October 2014] India’s Kerala State Poultry Development Corporation (Kepco) recently commissioned a feedmill in Mala. Kepco official TN Prathapan said the plant will mainly produce broiler feed in the form of pellets. Kepco invested around USD 2.6 million in the plant. “It is our first plant in the region. It will provide 90 direct jobs and 300 indirect jobs,” Mr Prathapan said.
|Asia Pacific dominates choline chloride market|
[01 October 2014] The market for choline chloride in terms of volume is expected to reach 596.9 kilo tonnes by 2019, growing at a CAGR of 5.6% from 2014 to 2019. Asia Pacific dominated the choline chloride market volume in 2013. Asia-Pacific is expected to remain the major market by 2019, growing at a CAGR of 6.4% from 2014 to 2019. Choline chloride within the poultry feed market is expected to be the fastest growing market, with a CAGR of 5.7% from 2014 to 2019, owing to the rising consumption of poultry meat and shift in preference for meat globally.
|Poultry producers urged to tap into halal demand|
[01 October 2014] Pakistan’s Lahore Provincial Minister for Finance, Excise & Taxation Mian Mujtaba Shuja-ur-Rehman, has said that the poultry sector’s role is substantial in eliminating unemployment and providing cheaper protein to the masses. He said USD 87 million has been allocated in the present budget for livestock development and added this would help enhance export of Halal processed food to Muslim countries. Pakistan Poultry Association North Zone Chairman, Raza Khursand said Pakistan should tap into the growing demand for halal food globally.
|India reports increase in milch animals|
[01 October 2014] According to India’s 19th livestock census, the population of India’s milch animals (in-milk and dry), cows and buffaloes, increased from 111.09 million to 118.59 million, a growth of 6.8%. The number of animals in-milk has increased from 77.04 million to 80.52 million, an increase of 4.5%. The population of exotic or crossbred milch cattle has also increased from 14.4 million to 19.42 million, an increase of 34.8%.
|Philippines sets retail prices for pork, chicken|
[30 September 2014] Following a meeting with pork and poultry producers, the Department of Agriculture (DA) has issued suggested retail prices (SRP) for pork and chicken meat to address the high prices of these commodities even though farm prices have gone down. The DA pegged the SRP for chicken at USD 3.00/kg and USD 3.90-4.12/kg for pork meat. Pork and poultry producers have long lamented the disconnect between farm and retail prices, saying that prevailing retail prices are up to USD 2.20 higher than live prices. Atty Elias Jose Inciong, President of the United Broiler Raisers Association however told Asian Agribiz that while the SRPs are acceptable for now, the question really is will they be implemented. The DA still has to submit the SRPs to the Department of Trade and Industry, the agency authorised to issue SRPs.
|CP Cambodia to double pig production|
[30 September 2014] CP Cambodia has confirmed plans to double its swine production by 2019 to meet Cambodia’s demand for pork products, reported the Phnom Penh Post. Uthai Tantipimolphan, President of CP Cambodia, which specialises in livestock breeding, said the company will spend USD 8 million to increase production from the current one million heads of swine, to two million over five years. “Cambodia needs nearly 200,000 swine per month. CP has a long vision for investment in Cambodia, because the company sees that Cambodia has the potential to be an agricultural production base,” he said.
|Russia inspects Thai poultry and pig processing plants|
[30 September 2014] Nantawan Sakuntanaga, Director-General of the Department of International Trade Promotion (DITP), revealed that Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (FSVPS) will visit Thailand from September 29-October 10 to inspect processing procedures at chicken and duck processing plants. The DITP also asked FSVPS to extend its inspection to cooked pork processing plants, said Mrs Nantawan. Results of inspections will be known in two months, she added. Thailand expects Russia to buy more poultry meat, pork and fishery products from Thailand as an alternative source of food following trade sanctions imposed by the US and Europe. The approval by FSVPS opens opportunities for Thai processors to export to Russia. At present, 22 chicken plants in Thailand have already been approved to import to Russia.
|Egg & pork prices in Thailand decline |
[30 September 2014] Prices of hen egg and pork in Thailand have declined on shrinking demand following the vegetarian festival. Egg prices dropped to USD 0.06 – 0.11/egg, from around USD 0.08 – 0.13 early last week. Pork prices also contracted on low demand and seasonal rains in many parts of the country. A price report on CPF Feed Marketing Bureau stated that Thailand’s exports of live pigs to neighbouring countries and China continue, but still the flow cannot help lift prices amid current sluggish demand.
|OSI lays off Shanghai Staff|
[30 September 2014] OSI Group will not be able to resume production at its shuttered Shanghai subsidiary, and as a result is laying off 340 workers. Shanghai Husi halted production in July, after a TV station accused Husi of using expired meat and changing production dates. Six managers have been arrested as investigations proceed. In a statement posted on its website, OSI said it had been continuing to pay the workers since the shutdown in the “expectation that they could resume their work.” However, the statement said, with investigations continuing and financial losses mounting, “this will not be the case.” Workers at OSI's other facilities in China are not affected by the layoffs.
Vinamilk among Asean's top 100 enterprises
[30 September 2014] Vietnam’s Vinamilk was listed as one of Asean’s top 100 enterprises in 2014 by Standard and Poor (S&P). Companies were evaluated according to strict criteria related to credit rating, market capitalisation and transparency. S&P regarded Vinamilk as the dominant brand in the Vietnamese dairy market due to high levels of brand awareness and stable profits over the last five years. Vinamilk registered revenue of USD 1.4 billion in 2013 and expects export turnover of USD 1.88 million for 2014 along with medium enterprise risk and low financial risks.
|Opportunity for self-stable sausages in Indonesia|
[29 September 2014] Sausage is one of top processed meat products in Indonesia after meatballs and nuggets. Boediono Tandu, Deputy Head of Technology Development and Training of the National Meat Processors Association, said no local meat processors has entered the category of self-stable sausages yet. “This sausage is classified as premium due to its high meat content. These are packed in cans or glass bottles and can be stored at room temperature,” Mr Boediono told Asian Agribiz. He said self-stable sausages sold locally are imported products. “This is an interesting opportunity for local meat processors to produce the product since demand for premium sausage is increasing.”
|Vietnam sanctions Irish pork imports|
[29 September 2014] Vietnam has approved the import of fresh and frozen pork from Ireland. Five Irish pig processing facilities have been accredited to produce pork for export to Vietnam. “Vietnam is an important market in Southeast Asia, with a growing population, and there are good prospects for Irish meat exports both in the short and long term, “said Ireland’s Minister for Agriculture, Food and the Marine, Simon Coveney. He expressed his hope that this would help the country gain access to other markets in Southeast Asia.
|Emerald Grain to acquire Ardlink storage|
[29 September 2014] Sumitomo-owned Emerald Grain announced it will buy the Ardlink grain storage and receival site at Ardlethanin New South Wales. The company will spend about USD 2.66 million to upgrade the operation and transform it into a 120,000 tonne facility with rail out-loading capability. Emerald Grain’s Managing Director John Murray said Ardlethan growers should see the full benefits, including faster delivery turn-around times, within 12 months. Initial upgrades will improve site capacity, equipment and turnaround times. Emerald Grain said it will build a rail out-loading facility to more efficiently connect the site to the export terminal at Port Kembla.
|Poland’s Konspol eyes plant in Asia|
[29 September 2014] Polish meat processor Konspol Holdings has revealed plans to set up a new meat processing plant in Asia. The company recently signed a contract to export its poultry meat products to Japan and is aiming to expand to other Asian markets. “Asia has a population of four billion people, a market with an incredible potential, one where consumers are increasingly affluent and want to eat better and healthy,” said Kazimierz Pazgan, Chief Executive of Konspol. Currently exports generate about 30% of Konspol’s revenues. Based in Nowy Sacz in Southern Poland, its product portfolio includes ham, frankfurters, sausages, chicken wings and other products.
|India's Amul named world’s 15th largest dairy processor|
[29 September 2014] The International Farm Comparison Network (IFCN) has published the top twenty global dairy processors based on milk intake. India’s Amul with an estimated intake of 4.5-5 million tonnes of milk equivalent was the world’s 15th largest processor. China’s Yili and Mengniu were ranked 16th and 18th respectively, collecting about 4.4 million tonnes each.
|Australia's Bega Cheese signs agreement with Chinese retailer|
[29 September 2014] Bega Cheese has inked a USD 87.6 million supply and distribution agreement with Chinese retailer Chongqing General Trading Group (CGTG) to supply Bega-branded long-life milk to China. The agreement is expected to generate around USD 86.7 million in revenue for Bega over five years. More significantly, there is scope to build further on the partnership and help Bega capitalise on the booming demand for dairy products in China. "Bega and CGTG see this as the basis for a broader commercial relationship in the future," the company told the Australian Stock Exchange.
|Sausage producers target super premium category|
[26 September 2014] Boediono Tandu, Deputy Head of Technology Development and Training of Indonesia's National Meat Processors Association, said that more meat processors are targeting the super-premium and premium sausage category. “Even big players like Belfoods [a subsidiary of Sierad Produce] are also targeting this segment,” Mr Boediono told Asian Agribiz. According to Mr Boediono, the buying power of Indonesians is getting better. “They have a better understanding of quality and taste. They want sausages with good taste and with high meat content.” He estimated that the market value of super-premium and premium sausages at the moment is around USD 3.3-4.2 million/month. “This figure will continue to grow,” he predicted.
|QL launches takeover bid for Lay Hong|
[26 September 2014] The second largest shareholder of Lay Hong Bhd, QL Resources Bhd, made a conditional voluntary takeover offer for the poultry firm at USD 1.08/share. QL Resources served a takeover offer to Lay Hong’s board, saying the rationale of the acquisition is to safeguard its investment. Its sole board representative, Chia Mak Hooi, was voted out at the annual general meeting this week. According to the announcement to Bursa Malaysia, some 22.8 million shares or 62.9% voting shares had voted against Mr Chia’s re-election. The takeover offer is expected to meet with resistance from the Yap family, which founded Lay Hong and is the single largest shareholder with a 43.09% stake. The family controls the board, with Yap Hoong Chai as Lay Hong’s Managing Director.
|Japfa initiated at ‘buy’ by DBS|
[26 September 2014] DBS Group Research has initiated coverage of Japfa, with a “buy” call and a 12-month target price of SGD 1.16, representing an upside of 36%. The research house said Japfa has been actively expanding in all of its business segments not only in Indonesia, but also in China, India, Vietnam and Myanmar. "We expect Japfa to continue capitalising on Asia’s demographic dividend and deliver FY13-16F bottom line CAGR of 53% and core ROE of 9.2% -11.8% in FY14F-16F,” analyst Ben Santoso wrote in the initiation report dated September 25. “Japfa’s growth will be driven by capacity expansions in China and Indonesia, where strong dairy and animal protein demand continues to drive both volume and prices,” said Santoso.
|Indian poultry companies to boost processed-chicken exports|
[26 September 2014] Indian poultry companies, who remain concerned about the possibility of the government allowing duty-free imports of chicken legs from the US, are looking at increasing exports of processed chicken. A drop in feed prices has made Indian chicken competitive in the international market. To begin with, the sector is planning to beef up its presence in the Middle East, which mostly imports processed chicken from Thailand, Vietnam and Brazil. “We are trying to increase exports of processed chicken to the Middle East so as to take advantage of the falling input cost prices and also to create a market for our chicken in the world market,” said Amit Saraogi, Chairman of the Indian Compound Livestock Feed Manufacturers Association.
|Australia, China to invest billions in farm projects|
[26 September 2014] Two Chinese investment groups have established a USD 2.6 billion fund to invest in Australian agriculture, reported ABC Rural News. The fund, known as the Beijing Australia Agricultural Resource Cooperative Development Fund, is a joint partnership between state-owned Beijing Agricultural Investment Fund and the Shenzen-based Yuhu group. It will focus on supplying produce back to China, especially infant milk formula, beef, lamb and seafood. Australian Trade Minister Andrew Robb said negotiations on a free trade agreement with China are progressing and he's confident a deal can be achieved by the end of the year. He assured Australian dairy farmers that he would get them an equal footing with their New Zealand competitors, who finalised a free trade agreement with China several years ago.
|Vietnam's tra prices unlikely to rise |
[26 September 2014] Nguyen Ngoc Hai, Chairman of Thoi An Seafood Cooperative based in Can Tho City, said a kilo of unprocessed tra fish in the region is now sold at around USD 1.11, reported Vietnam Breaking News. Nguyen is not sure that prices will go at the end of the year, although local farmers are anticipating higher prices as tra fish exports are strong then. However, many enterprises and growers sceptical as they anticipate prices of unprocessed tra fish to decline further. Nguyen said buying prices of unprocessed tra fish are now equivalent to production cost and many farms will suffer losses if the prices fall further.
|New Hope Indonesia to invest in South Sulawesi|
[25 September 2014] New Hope Indonesia, a subsidiary of China-based New Hope Group, is planning to invest in South Sulawesi. Consultant to the company for projects in the region, Imansyah Rukka informed Asian Agribiz that the company plans to set up a 50 tonnes/hour feedmill that is expected to be operational in 2015. To ensure corn supply to the plant, the company will partner with local corn farmers and provide corn dryers. “Setting up a feedmill is the first stage, after that we want to set up broiler breeding farms and a hatchery, a chicken slaughterhouse and also beef cattle farms,” Mr Imansyah said.
|Astra Agro to venture into animal feed business|
[25 September 2014] Astra Agro Lestari, the plantation unit of Astra International, is planning to venture into the animal feed business, according to CEO Widya Wiryawan. A source said the company plans to acquire an animal feed firm in East Java. Commenting on the news, Chairman of the Indonesian Feed Millers Association Sudirman FX told Asian Agribiz: “It proves the promising potential of the animal feed and livestock industry in Indonesia.”
|Macroprima strengthens super premium brand|
[25 September 2014] With a growing number of meat processors going into the super-premium and premium sausage category, competition will be intense, said Boediono Tandu, COO of Cimory Group’s subsidiary Macroprima Panganutama. Each company will have a ‘signature’ brand or product. “Our company’s signature is Kanzler. We will continue to strengthen this brand, although it is already the market leader in the super premium sausage category,” Mr Boediono told Asian Agribiz. He revealed that in the near future the company plans to enter the premium sausage category with a different brand. “The market for premium is growing due to the sale of grilled sausages in crowded spots, places of interest or during festivals.”
|Indonesia to import 264,000 beef cattle in Q4 |
[25 September 2014] Indonesia’s Trade Ministry has indicated that the country is about to issue import permits for a massive 264,000 heads of cattle for the fourth quarter. Director General for International Trade Partogi Pangaribuan said that Indonesia is looking to increase the amount of cattle it usually imports in the final quarter so it can build stocks for the first quarter of next year. “We have learned in the past that beef scarcity in Indonesia happens early in the year. So we have got to build up stocks to meet demand for at least the first two months,” Mr Partogi said.
|Quang Nam province culls 800,000 ducks|
[25 September 2014] Quang Nam province in Vietnam has culled 800,000 ducks after the H5N6 avian bird flu virus was detected in poultry in the area, reported the provincial Department of Agriculture and Rural Development. Le Muon, Deputy Director of the Quang Nam provincial Agriculture and Rural Development, said so far 3150 ducks have tested positive for the virus. Veterinarians have tested ducks and poultry from over three household breeding farms in Nui Thanh district. Mr Muon attributed the appearance of the A/H5N6 virus in Quang Nam to unclear origin of duck breeds which were purchased from Northern provinces.
|Vissan to increase exports to Myanmar|
[24 September 2014] Vietnam food processor Vissan wants to increase exports to Myanmar, a potential market in the Southeast Asian region, said Van Duc Muoi, its General Director. During a recent working session with Myint Swe Vissan, Myanmar’s Chief Minister, he introduced the company’s products such as sausages, spring rolls and frozen food. Via exhibitions held in Myanmar, Vietnamese goods have gained a foothold in the country and won local favour, he said, adding he is willing to serve as a bridge for Vissan to increase its exports to the Myanmar market, thus fostering economic ties between the two nations. Vissan is capable of producing about 30,000 tonnes of meat products a year.
|Debate over use of PVDC film for sausage casing|
[24 September 2014] Retort sausages are becoming popular in Indonesia and new brands are fast emerging. The main consumers are school children. According to an industry player met by Asian Agribiz, retort sausages were first popular in China. Most manufacturers of retort machines and polyvinylidene chloride (PVDC) film casings are from China, he said. But, there is a debate over the safety of PVDC film since it is a derivative of polyvinyl chloride (PVC), and PVC is not a food grade material. “PVDC film is stable up to 120 degrees. Harmful microorganisms will die during the retort process, but most of the nutrients of meat will also be lost.” He added that in Singapore and Hong Kong, the use of PVDC film is prohibited.
|CP Prima invents practical solution for shrimp farmers|
[24 September 2014] Central Proteinaprima (CP Prima), the largest aqua feed producer and shrimp exporter in Indonesia, has said that it has invented a practical solution to help shrimp farmers achieve good production. It involves the use of specially formulated feed and application of supplemental liquid in the pond water. “The feed formulation is made with natural herbal extracts that increase the natural immunity of shrimp,” said Head of Corporative Communications George Basoeki. CP Prima expects to produce and distribute the special formulated shrimp feed and liquid supplement in the near future.
Top stories in Asian Poultry Magazine, October 2014
[24 September 2014]
Antibiotic-free operations at LPS Farm pays off
Keeping the birds healthy with minimal medication is paramount to the success of LPS Farm, a layer operation in Southern Philippines. With antibiotic free operations, the farm opts for good nutrition with home mix feed to ensure the feed quality and that has led to efficient production, writes ISA Q TAN.
Al-Meezan’s feed gains quality recognition
Al-Meezan Poultry Feed & Allied Products (Al-Meezan) has been working hard to provide good quality feed to farmers in Pakistan to help them improve productivity. The company’s dedication gained recognition recently when it received the Emerging Feed Miller Award 2014 from Asian Agribiz in association with EW Nutrition. ARIEF FACHRUDIN reports that while it continues producing quality feed, the company aims to achieve 10% business growth this year
Optimizing intestinal health with butyrate
VALENTINE VAN HAMME concludes that a consistent supplementation of broiler, breeder, or layer feed with butyrate will result into excellent production results on one hand and better intestinal health on the other hand.
Seleno-hydroxy-methionine: An innovative anti-oxidant
Seleno-hydroxy-methionine analogue, as produced through a chemical process, offers a pure, consistent, highly bio-efficacious thus reliable source of organic selenium for the animal industry claim PIERRE-ANDRE GERAERT and KEVIN LIU.
Feed mycotoxins decrease vaccine efficacy
RADKA BORUTOVA and OLGA AVERKIEVA claim that the use of effective mycotoxin control offers an opportunity to significantly modify animal response to vaccination and help to improve animal health and performance.
|Thailand to export cooked chicken to the Philippines |
[23 September 2014] Seven chicken processing plants in Thailand have received approval from the Philippines to export cooked products to the country, according to Chavalit Chookajorn, Permanent Secretary of Thailand’s Ministry of Agriculture and Cooperatives. Those plants include six facilities of Charoen Pokphand Foods (CPF) and one of Cargill Meats (Thailand), he revealed. “With this approval, these Thai plants are expected to be able to start shipping cooked chicken to the Philippines within the next six months or by February next year,” he said. Thailand has never been able to export cooked chicken to the Philippines and the two parties have been negotiating on this for a while. The exports to this new market will help boost the overall export of Thai chicken in 2015.
|Russia lifts ban on Indonesian seafood products|
[23 September 2014] Indonesia’s Ministry of Fisheries and Marine Affairs announced last week that Russia has lifted the ban on imports of Indonesian seafood products. Director General of Fish Processing and Marketing Saut Hutagalung said that for the initial stage Russia will only allow 15 exporters that meet their standards to export frozen tuna and shrimp to the country. “It is good news for us,” Thomas Darmawan, Chairman of the Indonesian Fishery Products Processing and Marketing Association, told Asian Agribiz. With the ban lifted, Mr Thomas believes that Indonesia can achieve USD 40 million in exports in the fourth quarter of this year.
|Taiwan approves imports of Spanish pigmeat |
[23 September 2014] Taiwan has opened its market to Spanish pork and pig meat products. This follows negotiations held between the Ministry of Agriculture, Food and Environment of Spain and the Taiwanese authorities of the Bureau of Animal and Plant Health Inspection and Quarantine and the Food and Drug Administration. The agreement is far-reaching, because it will allow the export of fresh meat and offal, as well as of all kinds of pig meat products.
|India-Vietnam sign agri pacts|
[23 September 2014] The agriculture ministries of India and Vietnam have signed an MOU on cooperation in the field of animal health. This includes protection of their respective territories from animal diseases and infection caused by the trade of animals, products of animal origin and materials of animal reproduction. Both countries will also share information on meat processing, meat products and slaughterhouses. The MoU aims to extend cooperation in the field of setting up of pangasius breeding and farming in India as well.
|India’s Odisha poultry sector grows over 10%|
[23 September 2014] The poultry sector in Odisha, India has been growing at over 10% annually, according to State Chief Secretary GC Pati. Mr Pati called researchers and industry players to widen the genetic base of the poultry sector as it is vulnerable due to dependence on one breed of broiler and layer birds and stressed the need for use of local feed raw materials to counter the challenge on account of high feed costs. State Minister of Agriculture and Fisheries & ARD Pradeep Maharathy encouraged investors to either expand or set up new poultry units to avail themselves of the enhanced subsidy ceiling of USD 130,000 per case.
|Vietnam to spend USD3.6b on dairy imports|
[23 September 2014] Nguyen Dang Vang, President of the Vietnam Husbandry Association, said the country was aiming to meet 60% of domestic demand for fresh milk for an anticipated population of about 113 million by 2045. According to Viet Nam News, to achieve this, the country must develop a herd capable of producing 5.65 million tonnes of milk per year. The country's domestic fresh milk production in 2013 was 456,400 tonnes, equivalent to 5.1 litres per capita per year. This satisfied only 28% of the country's demand. Vietnam’s average annual per capita consumption of fresh milk was 18 litres in 2013. In 2013 alone, milk and dairy product imports were worth USD 1.089 billion. By 2045, Vietnam will still have to import 2.25 million tonnes of milk worth USD 3.6 billion every year. Figures from the Viet Nam Dairy Association showed that as of April 1, the country had 200,400 cows, a 14% increase over 2013.
|Livestock production on the rise in Vietnam|
[22 September 2014] Nguyen Tri Cong, Chairman of Dong Nai Husbandry Association, said pork prices have bounced back and remained stable at about USD 2.73/kg. Therefore, more farmers have raised pigs and increased their herds, resulting in higher demand for animal feed. According to the General Statistics Office, pig and poultry breeding last month edged up 1-1.5% and 2% respectively compared to the same period last year. Data from the Ministry of Agriculture and Rural Development showed that seafood exports in the first eight months of this year jumped 25.3% year-on-year to 4.95 billion USD owing to higher demand from export markets and supply in Vietnam.
|Philippine egg industry expanding|
[22 September 2014] Expansion in the egg industry is happening all over the Philippines, with an increasing number of new layer farms now housing 30,000-50,000 heads, said Mr Arthur Baron, Vice President of the Philippine Egg Board at the Philippine Poultry School last week. About 66% of the industry is concentrated in Luzon, 19% in Mindanao and 15% in the Visayas. He said many of the new farms are automated, and some are already equipped with cool cell systems. However, Mr Baron noted that among the challenges facing the egg industry is the aggressive expansion against disproportionate demand. Annual per capita egg consumption in the country remains at about 100 eggs. Still, the low consumption is seen as a growth opportunity and the Egg Board has been continuously promoting egg consumption and its benefits.
|Exporting countries call for full liberalisation of markets|
[22 September 2014] Pig farmers associations in Australia, Canada, Chile, Mexico, Peru and the US have joined forces to push for the elimination of tariffs on pork. In an open letter sent to the negotiators involved in the Trans-Pacific partnership (TPP) talks, the associations called for a “comprehensive, high-quality” agreement which would result in the removal of market access barriers such as Japan’s Gate Price to be eliminated by the end of the negotiation period. “Failure to achieve these objectives would call into question the oft-stated pledge to make TPP the gold standard for future FTAs and our ability to support the agreement,” read the letter. It added that any exemption for Japan will “set a dangerous precedent for the expansion of the TPP when other nations are likely to demand a Japan-type deal,” said the letter.
|India’s oilmeal exports decline|
[22 September 2014] India has posted a 36% decline in oilmeal export, to 865,000 tonnes, from April to August 2014. During the same period last year, export of oilmeal was 1.35 million tonnes, the Solvent Extractors’ Association of India (SEAI) said in a release. “Export of soybean meal greatly reduced in the last five months due to a lower crop. This lead to total disparity for soybean meal in the international market,” SEAI said. However, the association said that during the period the share of rapeseed meal increased from 358,000 tonnes to 514,000 tonnes.
Merial Avian Forum Asia 2014
[22 September 2014]
Speaking at the Merial Avian Forum Asia 2014, Dr Munawar Ali, General Manager Production & Technical Head, Islamabad Farms, Pakistan gave a presentation on practical biosecurity. “Biosecurity is not only science, but an art and culture as well,” he said. “This means that the approach of applying this science is to tilt the balance in favour of birds, rather than bugs, the application is an art, which should be adopted as a culture. He stressed that studies have shown that people are the main culprits, contributing 90% of disease spread.”
Stabilising vaccines: New generation advances
Dr Ryan Izard, Chief Science and Technology officer, Animal Science Products Inc, discussed that failing to manage the numerous risks that exist among all water supplies, such as oxidisers, pH and osmotic balance, can reduce vaccine effectiveness and leave holes in the flock’s immunity. New-generation stabilisers for drinking water, spray and eye-drop seek to keep vaccines safe. He concluded that “in the end, safe food comes from companies with healthy birds, healthy birds come from farms with strong vaccination management, and this includes new-generation stabilisers.”
|Lay Hong considers rights issue|
[19 September 2014] Malaysian poultry integrator, Lay Hong's Managing Director, Yap Hoong Chai said that the company is considering a rights offering or a private placement to reduce its current level of gearing. As at June 30th this year, Lay Hong's net gearing ratio stood at 1.13 times. However, he noted that any corporate exercise will only be made when the group’s profit performance is stronger. “I believe our profits will improve with our major expansion in the last two years,” he told The Edge Financial Daily. The group has spent USD 26.50 million in capital expenditure mainly to increase its production capacities and manufacturing of downstream poultry products, and expand its G*Mart supermarket outlets in Sabah. Next year it is allocating USD 3.09 million to USD 4.65 million for capex, which would mainly be utilised to relocate one of its farms in Ijok, Selangor.
|Vietnam, animal feed output to grow 10% |
[19 September 2014] Vietnam’s animal feed output is projected to increase 10% this year against 2013, buoyed by a recovery of cattle and poultry farming and strong growth in seafood exports, the Saigon Times Daily reported. Le Ba Lich, Chairman of the Vietnam Feed Association, said demand for cattle and poultry feed is forecast to reach 14 million tonnes this year, 700,000 tonnes higher than last year while feed for shrimp and tra fish farming is also expected to fare better.
|Differentiation key to competitiveness in poultry industry|
[19 September 2014] Differentiation is key to competitiveness in the poultry industry when the Asean Economic Community (AEC) is fully implemented at the end of 2015, Dr Vikash Kumar told participants of the Philippine Poultry School yesterday. Dr Kumar, Manager International Business of Natural Remedies Pvt Ltd from India, said that with the elimination of tariffs on most farm goods traded under the AEC, there would be tougher competition among the region’s poultry players. However, by differentiation through healthier options and sustainable production practices, producers will be better able to compete. The Philippine Poultry School is a two-day seminar organised annually by the Philippine College of Poultry Practitioners.
|Farm in Laos tests positive for H5N6|
[19 September 2014] Some 200 birds were destroyed in Luangprabang, Laos, after low pathogenic avian influenza was discovered on a poultry farm. The World Organisation for Animal Health (OIE) said the disease – serotype H5N6 – had affected two birds, with the remaining 198 birds were destroyed as a precaution. The report was sent by Dr Khambounheuang Bounkhouang, Director General of the Department of Livestock and Fisheries, Ministry of Agriculture and Forestry, in Vientiane. “As of September 15 2014, the laboratory diagnostic results from the National Animal Health Laboratory revealed that a poultry farm with day-old chicks and ducks tested positive for H5N6,” he reported. The samples will be sent to the Australian Animal Health Laboratory for sequencing. An active surveillance program for AI was set up in Laos targeting provinces in the north in July.
|Shrimp farmers oppose new port in India|
[19 September 2014] The proposal to set up a new port in the Kakinada Special Economic Zone area in East Godavari district, India is facing opposition from shrimp farmers. “The proposed port will spell doom to shrimp hatcheries catering to the needs of farmers in Andhra Pradesh. The proposal should be given up,” said L Satyanarayana, President of the All-India Shrimp Hatcheries’ Association. Mr Satyanarayana said there were already 100-odd shrimp hatcheries functioning in the 50-km stretch. These hatcheries have been operating for years "It would be more appropriate to declare the area as a national hub of shrimp hatcheries and protect it,” Mr Satyanarayana remarked.
|KAL to import 1500 heifers from Australia|
[19 September 2014] Kalteng Andinipalma Lestari (KAL), a subsidiary of Indonesia-based oil and gas company Medco Group involved in oil palm plantation and cattle breeding in Central Kalimantan, plans to import 1500 heads of productive heifers from Australia. Cattle Operations Manager, Nursyamsa Setiawan said this is planned for the fourth quarter. “Currently we have around 560 heads. We have 70,000ha of palm plantation that can accommodate some 20,000 heads of cattle in a palm-beef cattle integration concept,” said Mr Nursyamsa. KAL can reduce production costs by 70% since it utilises palm leaves, palm kernel meal and grass around the plantation for feed. “With this integration project we can support Indonesia’s beef self-sufficiency program,” Mr Nursyamsa said.