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22 November 2014
|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.
Merial Avian Forum Asia 2014
[18 September 2014]
With the theme ‘Impact and Control of Respiratory Diseases of Poultry’ the forum in Kaohsiung, Taiwan was attended by more than 200 poultry professionals from throughout Asia. In the opening address, Harry Picard, Avian Head of Marketing Asia commented that respiratory diseases are among the most common problems seen in poultry production. The forum featured a range of distinguished speakers and opened with a presentation on, infectious bursal disease (IBD), since to control respiratory disease first you need to control IBD. Other presentations included infectious bronchitis, avian metapneumovirus, avian influenza, Newcastle disease, infectious coryza, mycoplasmas and the serology of respiratory diseases.
Modern mycoplasma control
Speaking at the Merial Avian Forum Asia 2014, Dr Chris Morrow, Global Technical and Marketing Manager Bioproperties Pty Ltd, said “although mycoplasma freedom has been seen as the ultimate control strategy, this has not been achieved for a variety of reasons. Mycoplasma vaccination with MS MSH and MG ts-11 vaccines is now a viable alternative for mycoplasma control (with biosecurity) in poultry.” According to Dr Morrow, “commercial experience in Asia has shown that mycoplasma vaccination in layers resulted in about a 4% improvement in FCR, which more than offset the cost of vaccination.”
Serology of respiratory diseases
Dr Rafael Monleon in his presentation “Serology of Respiratory Diseases” at the Merial Avian Forum Asia 2014 commented: “Monitoring vaccination responses helps to detect and diagnose vaccine failures, and will allow one to take corrective actions when vaccination has failed. He stressed that when conducting ELISA monitoring you have to be prepared to take proper action on the results. In most cases this may mean that one has to be prepared to immediately revaccinate a flock when results are not good. Without taking action you cannot expect to improve, optimise and maintain the efficiency of vaccination programs. The detection of success or failure in vaccine applications and subsequent corrective action is key in preventing disease from occurring, due to poor vaccine handling and/or application.”
|AgFeed charged USD18m over fraud|
[18 September 2014] AgFeed Industries Inc, a Chinese animal-feed and hog-production company has agreed to pay USD 18 million to settle Securities and Exchange Commission allegations that it reported fake revenue to meet financial targets and boost its stock price, reported the Wall Street Journal. The company inflated its revenue by USD 239 million by creating fake invoices for the sale of feed and purported sales of hogs that didn't actually exist, among other methods, the SEC said. The moves boosted the company's annual revenue over a 3 ½-year period by amounts ranging from 71% to 103%, according to the SEC. The case against AgFeed is among more than 20 the SEC has filed against US-traded Chinese companies and their officials over alleged accounting fraud and other issues.
|Yum's logo raises ire of Viet community in Dallas |
[18 September 2014] Yum! Brands Inc has opened the first of two test locations for a Vietnamese-inspired restaurant called Banh Shop that will sell banh mi sandwiches. Both will be located in the Dallas area. However, the logo of the outlet which features the name of the restaurant set against a five-pointed red star, has raised some ire. The five-pointed red star is the symbol for communism. "The red star in the logo is offensive to the thousands of Vietnamese Americans who have suffered from the Vietnamese Communist regime," Nikki Duong Koenig told a local daily. "The disenchantment over the logo has swept the Vietnamese community, who've made "banhshoplogochange" a hashtag cause.
|Convenience food spurs regional growth in packaging |
[18 September 2014] Asia-Pacific is driving global growth in food packaging technology due to the rising popularity of convenience foods and branded products. According to MarketsandMarkets sales in Asia Pacific will grow at a CAGR of 9.1%. Global food packaging technology sales will hit USD 46.69 billion by 2019, rising at a CAGR of 6.1% from 2014 to 2019. Global food packaging equipment sales will hit USD 19.21 billion by 2019, growing at a CAGR of 4.8% during this period. Senior research analyst, Malarkodi Mahendran, said there is intense competition in the food packing equipment and technology sectors, but believes there is still room for new entrants.
|CP Indonesia looks at new markets|
[17 September 2014] Charoen Pokphand Indonesia plans to expand overseas by exporting processed chicken. It is targeting Japan for products such as nuggets and sausages, and will soon go to Singapore, Cambodia, Myanmar, Laos and Vietnam as well as the Middle East, said Dr Desianto Budi Utomo, Vice President for Government & Academic Liaison. The initial phase of exports to Japan may begin as soon as the fourth quarter of this year, with the company aiming to secure around USD 20 million in sales, Dr Desianto said. “At first we will try to gain a foothold in the Japanese market. We will begin with a moderate target.”
|TUF acquires European seafood companies|
[17 September 2014] Thai Union Frozen Products Pcl (TUF), the world's largest producer of canned tuna, is set to acquire Norwegian seafood firm King Oscar for an undisclosed amount. This acquisition is to prime itself for the surge in demand expected after the formation of the Asean Economic Community next year, which would create a USD 2 trillion combined economy. The King Oscar deal comes a few weeks after Thai Union Frozen said its MW Brands subsidiary had signed a deal to buy French smoked salmon maker MerAlliance, also for an undisclosed sum. TUF wants to increase sales to USD 8 billion by 2020, mainly through overseas acquisitions. The company has targeted USD 5 billion in sales next year, up from an expected USD 4 billion in 2014.
|IFMC starts commercial feeds production|
[17 September 2014] Inoza Feed Milling Corporation (IFMC), a company under the Philippines Bounty Fresh Group, has entered commercial feed production with the recent launch of its Bounty Poultry Feeds and Inoza Pro Premium Hog Feeds. IFMC’s main state-of-the-plant is located at Bamban, Tarlac Province. It initially served the internal feed requirements of Bounty Fresh Foods Inc and Bounty Agro Ventures Inc, manufacturers of leading brands Bounty Fresh Chicken and Chooks-to-Go respectively.
|Japan to boost Thai poultry exports|
[17 September 2014] "The global outlook for the poultry industry is bullish for the remainder of 2014." said Rabobank analyst Nan-Dirk Mulder in the latest Rabobank Poultry Quarterly report. "We expect strong fundamentals to keep white meat prices high, while dark meat prices may come under some pressure," he said. In China, poultry markets are showing signs of recovery as concerns over AI fades and industry initiatives to reduce production capacity take effect. With poultry and pork prices being strongly correlated, a bullish outlook on pork prices will give poultry strong support in the coming months. In Japan, the industry for 2H will remain bullish with ongoing low stock levels and limited impulses from the local industry to expand. Thailand will enjoy better Japanese demand while fragile recovery is underway in India.
|WTO to decide on India poultry dispute|
[17 September 2014] The US is awaiting translation of the ruling from the World Trade Organization (WTO) dispute settlement panel with regards to poultry exports to India. In 2012, the US launched a WTO dispute, claiming India placed an unjustified ban on imports of US poultry and live pigs because of an outbreak of a low pathogenic avian influenza in Virginia, even though the US has not had an outbreak of high pathogen avian influenza since 2004. The results will lead either to both parties developing a program to remove the trade barrier or to both or either one appealing against the ruling.
|Halal market to reach USD1.6t by 2018|
[17 September 2014] The halal food and beverage market is expected to be worth USD 1.6 trillion by 2018, growing at a compound annual growth rate of about 6.9%, said a research note by Dubai Chamber of Commerce and Industry based on a recent study by Thomson Reuters in collaboration with Dinar Standard. Last year the market was worth USD 1.1 trillion last year. The market includes a large variety of products from raw chicken and beef to halal processed foods and cold drinks. The reports noted that Indonesia was the biggest halal food market with market value of USD 197 billion in 2012.
|Philippines chicken prices ease on stable supply |
[16 September 2014] Live and retail prices of chicken in the Philippines declined in early September as supply has begun to stabilise. Agriculture Undersecretary for Livestock Jose Reaño said that retail prices of dressed chicken in local markets in the first week of the month ranged between USD 3.09-3.21/kg, down from a high of about USD 3.67/kg in August. Meanwhile farm prices have ranged between USD 1.76-1.95/kg in the first week of September, Atty Elias Jose Inciong, President of the United Broiler Raisers Association, told Asian Agribiz. Farm prices and retail prices, however, are disconnected, he said, noting that when farm prices are down, retail prices remain relatively high.
|Betagro eyes better than target sales in 2014|
[16 September 2014] Betagro Group expects sales revenue in 2014 to grow 15% to reach USD 2.55 billion, exceeding the earlier target of USD 2.36 billion, according to President Vasit Taepaisitphongse. The growth is expected from expanding sales generated by regional offices in provinces bordering neighbouring countries namely Myanmar, Cambodia and Laos, said Mr Vasit. He added that restaurants here opt to buy meat and food from Thailand for quality and safety reasons. For the first six months, Betagro achieved sales of USD 1.24 billion, up 17-18% from the same period a year earlier. Broiler operations accounted for USD 311.14 million, animal feed operation at around USD 186.7 million, pig business was USD 84 million, animal health medicinal products at USD 56 million and sales from regional branches at USD 497 million.
|CPF reports profit increase in first half 2014|
[16 September 2014] Charoen Pokphand Foods Plc (CPF) reported a sharp increase in net profit for the first six months of 2014, thanks to recovery in both its Thai and international operations. The company generated a profit of USD 174.3 million for the first six month, up 110% from the same period of the previous year. CPF’s sales revenue for the first six months of 2014 was USD 6.36 billion, an increase of 13% from the same period last year. Sales from its Thai and international operations rose 8% and 16%, respectively, due mainly to a recovery of its livestock business especially in Thailand and Vietnam which were affected by oversupply last year. Adirek Sripratak, President and CEO said CPF’s operations for the whole year this year is estimated to meet the target. “In addition to the positive outlook of our aqua business, expected growth in chicken exports to China and Russia would benefit CPF," he said.
A quality edge in Asian Pork Magazine, October 2014
[16 September 2014]
Xinnian creates a niche for its pork
Chinese consumers love pork. Pork makes up 63% of China’s meat supply, and consumers are constantly seeking more, safer and higher quality meat. Getting consumers to actually pay for that extra quality however, has been a headache. In the past, Chinese consumers have focused on price above all. RICH HERZFELDER reports that one company has found the answer.
Retailing gives Bibiana Farm an edge
As just one of many pig farms in Region 12 in the Philippines, competition is stiff for Bibiana Farm, one of the first commercial pig farms in the region. Striving to improve efficiencies despite mounting limitations, the farm’s owners have had to look at other options to give it an edge in the market, writes ISA Q TAN.
Southeast Asia pork industry readies for AEC
With just a year-and-a-half to go before the launch of the Asean Economic Community, Asean member countries are working hard to get their upgraded facilities up and running, accreditation papers in order and farms and feedmill capable to meet rising orders, writes RACHAEL PHILIP.
|Philippine province bats for native hogs|
[15 September 2014] The government of Pangasinan province in Northern Philippines has signed an agreement with the Department of Agriculture (DA) to develop the province’s native hog production. Under the project titled ‘Multiplier Production Farm for Native Pigs,’ the province will identify production farms and stations that will be provided with the needed stock and technical assistance to raise the native pigs. Five raiser associations have been identified as project beneficiaries. At the signing, the DA turned over USD 91,117 in loan assistance to support the project.
|Karya Prospek Satwa raises Kurobuta pigs|
[15 September 2014] CP Indonesia Business Development Advisor and Swine Specialist Phaitoon N Na Ayudhaya told Asian Agribiz that the company’s close partner PT Karya Prospek Satwa is trying to develop Kurobuta pig farming in Bali. “The population is still small since it’s more like a trial,” said Mr Phaitoon who is in-charge of the project. Mr Phaitoon said the growing number of Japanese and Korean restaurants in big cities such as Jakarta and Bali has motivated the company to raise these premium pigs. “This project will be a significant part of our future business here in the coming years.” Kurobuta pork is the most highly priced pork in Japan and comes from the ancient breed of pig known as Black Berkshire.
|Indonesia to set up 21 new fish cold storage|
[15 September 2014] Indonesia’s Ministry of Fisheries and Marine Affairs this year plans to build 21 new cold stores in several locations to strengthen the national fish cold chain system. Director General of Fish Processing and Marketing Saut P Hutagalung said the capacity will vary, from 300 tonnes to 15,000 tonnes. “It depends on the fish supply in each region.” In 2013, the ministry set up 54 cold stores with a capacity of 30-1500 tonnes/unit in several key islands including Java, Sumatera, Sulawesi, Kalimantan, Maluku, Nusa Tenggara and Papua. Mr Saut hopes the cold storage project will help increase shrimp, fish processing industry and stabilize fish prices.
|Government sends new list of shrimp, fish processing plants to Russia|
[15 September 2014] The government of Bangladesh has sent a new list of 14 shrimp and fish processing plants to Russia with a view to expand its markets. “We selected 14 shrimp and fish processing units after inspecting 23 such units in Khulna and Chittagong zones,” said Joint Secretary of the Ministry of Fisheries and Livestock Anisur Rahman. Mr Rahman explained that a seven-member committee visited the plants and examined different issues like maintaining standards of fish collection to finished products, internal quality control, laboratory tests, storage facilities, workers’ wages, their hygiene, sanitation and effluent treatment plants. At present, only five Bangladeshi companies are exporting frozen seafood to Russia. The country exports about 7% of total frozen seafood exports to Russia, worth USD 45.2 million.
|Global aqua feed market to reach USD124b by 2019|
[15 September 2014] According to ReportsnReport, the global aquafeed market is projected to be valued at 89,479 million tonnes by 2019 and USD 124 billion by 2019 at a CAGRs of 10.7% and 12.3%, respectively, from 2014 to 2019. The Asia-Pacific region again will enjoy the major market share in terms of consumption with 76% of the total aqua feed market share in 2013. Increase in domestic demand has contributed to the continuing growth trend particularly in this region. Fish dominated the aqua feed market, by animal species, in 2013, with more than half of the market share.
|Itochu, CPP transaction due for completion|
[12 September 2014] The purchase by Itochu Corp of a stake in CP Pokphand Co Ltd (CPP) will be completed on 18 September 2014. Charoen Pokphand Foods Pcl together with CPF Investment Ltd will hold approximately 50.43% of CPP’s total issued share capital including convertible preference shares and Itochu will hold approximately 23.75% of the total capital including convertible preference shares.
|Indonesia’s Agri Ministry refutes DOC supply control|
[12 September 2014] Indonesia’s Ministry of Agriculture has refuted a regulation by the Ministry of Trade to control the supply of broiler DOC. According to Director General of Livestock and Animal Health, Syukur Iwantoro, the regulation to control the supply of DOC through limitation of GP import is not correct. “Although it is only in Java, many poultry companies have units in different islands. Besides, enforcement will be weak.” Commenting on the regulation, an industry player told Asian Agribiz that he prefers the supply of DOC to be unregulated. “You can imagine the losses to the industry if the government limits DOC production by 5-10%. The regulation is negative to the industry.” He continued: “Let the supply and demand of DOC follow market trend." The Ministry introduced the regulation in April to control the price of chicken at consumer level.
|Asia continues as key market for US beef exports|
[12 September 2014] Beef exports to Asia for January through July were equal to 14% of total production and 11% for muscle cuts. Export prices per head of fed cattle was USD 298.56 in July, down slightly compared to June but more than USD 25 higher year-on-year, reported the US Meat Export Federation (USMEF). “Demand for US beef in Asian markets has continued to strengthen this year,” said President and CEO Philip Seng. “Competition among Asian buyers contributes greatly to US cattle prices.” Across all its markets, US beef export volumes declined 15% in volume in July to 101,799 tonne, while export values were steady at US 621.7 million. Beef export volumes from January through July, at 687,752 tonnes maintained a 4% lead over year-ago totals and remained on a record pace in value at USD 3.89 billion.
|Chitwan poultry farmers demand ban on imports|
[12 September 2014] Members of the Poultry Farmers Association in Chitwan, Nepal recently organised a rally and submitted a memorandum to the district administration office demanding a ban on the import of chicken, eggs and chicks. They want action taken against those importing meat illegally from India. Toyanath Aryal, a poultry farmer, said that smuggled chicken and eggs had been affecting small producers in the region. He added that the investment of small farmers in the poultry sector was always at risk of disease. More than 1000 farmers make up the association, and each of them raise 500 to 3000 birds. Chicks can be produced in Nepal at USD 0.3/bird, while farmers are forced to pay USD 0.7/bird for chicks smuggled in from India.
|Bird flu spreads in Vietnam|
[12 September 2014] The A/H5N6 bird flu virus has surfaced in Quang Tri and Quang Ngai provinces in Vietnam, raising the total number of affected localities to five, confirmed the Department of Animal Health. The department, under the Ministry of Agriculture and Rural Development, said the virus was detected in a poultry farm in Quang Tri province’s Trung Hai commune late August. Around 350 out of 1500 infected ducks have died. The virus has also killed 200 out of 1100 infected poultry that tested positive for H5N6 in Quang Ngai province. There is a high risk of the virus spreading with the infected birds in Quang Ngai province coming from Dai Xuyen market in Hanoi – the biggest poultry market in the country.
|Fonterra announces ‘game changer’ tie-up with Beingmate|
[12 September 2014] New Zealand dairy giant Fonterra has announced its intention to take a 20% stake in one of China's biggest milk processors, Beingmate. The tie-up would help create a global supply chain aimed at China's market using Fonterra's milk manufacturing partners in Australia and Europe. It would also help Fonterra increase its share of China's large and lucrative infant dairy food market. If successful, the new partnership between Beingmate and Fonterra would see the Chinese firm set up a joint venture to buy a Fonterra plant in Australia. Fonterra's chief executive Theo Spierings said the partnership would be a "game changer" and that it would provide the New Zealand firm with "a direct line into the infant formula market in China".
|Thai pig production rises as disease abates|
[11 September 2014] Pig production in Thailand is expected to increase as the Porcine Epidemic Diarrhoea (PED) virus that devastated supply from late last year through to the first half of this year has receded. “The situation has abated and the country’s finisher production has improved to 39,000-40,000 pigs per day at present from around 37,000 pigs/ day when the disease was resilient,” Kiddivong Sombuntham, Secretary-General of the Thai Swine Raisers Association in Thailand told Asian Agribiz. Supply recovery coupled with seasonal decline in demand and lower consumption partly due to the political changes resulted in softening of pig price; farm gate price of live pig has dropped to around USD 2.31/kg at present from USD 2.50/kg earlier and may decline further to around USD 2.03 - 2.19 until the end of October before climbing back towards the year-end holiday season, commented Mr Kiddivong.
|De Heus’ latest mill in Dong Nai is its most modern yet|
[11 September 2014] De Heus’s fourth feedmill in Vietnam situated in Dong Nai, is its most modern plant in the country. Almost 80% of the plant’s processes are automated. It only requires about half the workforce compared to other plants. “We are trying to reach 100% automation like our headquarters in the Netherlands,” Deputy Production Manager Hoang Quoc Hung told Asian Agribiz. In its first phase it has a capacity of 150,000 tonnes/year. It hopes to reach 300,000 tonnes/year by end 2015. All its equipment comes from Holland. The pelleting mill from PTN is stable, sophisticated and easy to clean. “The first thing the customers check is the quality, colour and size of the pellets. Poultry farmers here want yellow pellets. This tells them that the product contains a lot of corn. This is good for the birds.” The plant produces four pellet sizes, from 4mm and 3.2mm for swine grower-finisher and starter respectively, to 2.3mm and 2.5mm for chicks and broiler.
|Sierad to export processed chicken products to Japan|
[11 September 2014] Sierad Produce of Indonesia has got ‘green light’ to export its processed chicken products such as nugget, yakitori and karaage to Japan after auditors from Japan stated the company’s facilities, processes and products fulfil the requirement specified by the Japanese government. Vice President Director Eko Putro Sandjojo said: “Our Company is bird flu free certified and applies good breeding, farming and processing practices.” Mr Eko said that the company has forged a relationship with Mitsubishi Corp to distribute and sell Sierad’s products in Japan markets. Mr Eko considered that the taste preferred by Japanese people is different from Indonesians, “so we need to adjust the taste of our products.”
|Pakistan's poultry sector modernising rapidly|
[11 September 2014] Corporate farms in Pakistan are gradually swallowing small poultry farms as more than 50% of small businesses have packed up following failure to sustain pressure and compete with rapidly growing state-of-the-art poultry sheds over the last six years. “Although the number of farms has decreased, the production of broilers has increased manifold,” said Dr Hasan Sarosh, a poultry industry expert. Dr Sarosh said around 25,000 poultry farms were producing chicken previously but this has now dropped to 8000-10,000. However, average production has increased to 30,000 per house. The number of open-house poultry farms is declining sharply while the figure for environmentally controlled poultry houses is increasing exponentially.
|Genus results reflect weak Chinese swine market |
[11 September 2014] In its preliminary results for year ended June 30, 2014, Genus Plc announced a 14% increase in its 2014 profit before tax of USD 62.87 million against last year’s USD 54.97 million. Revenue in 2014 rose 8% to USD 612.57 million against last year’s USD 568.29 million. However, its adjusted operating profit in Asia was 49% lower compared to 2013 mainly due to a drop in its Chinese porcine profit. This was caused by the group’s planned investments in capacity and adverse market conditions for pig producers in the first half of the calendar year. The group’s porcine operating profit in China fell more than USD 8.23 million after stocking its Besun joint venture farm, the expected investment in start-up losses from capacity increases at Besun and its Chun Hua nucleus farm. “Despite our results in China, we continue to believe the opportunity there is large, that we are laying the right foundations for long-term success and have adapted our strategy to ensure this,” said Genus CEO Karim Bitar.
|Mahindra Agribusiness to enter dairy industry|
[11 September 2014] India's Mahindra Agribusiness is planning to enter the dairy industry by focusing on the production of pouched milk. Growth opportunities in the dairy sector prompted the move by Mahindra as farm productivity in the country is only about 50% of that in advanced countries, reported The Economic Times. Mahindra Agri and Allied Businesses chief executive Ashok Sharma said: "We are exploring inorganic strategies for entry into the dairy business. The company is planning to replicate the supply chain model of its grape exporter Mahindra ShubhLabh Services to boost its milk production. Mahindra ShubhLabh works with grape farmers, offering them the required technical support.
|Saha Farms returns with 200,000 chickens per day|
[10 September 2014] Thailand's Saha Farms is getting back on track aided by a rehabilitation process and financial support from its major creditor Krungthai Bank. Parinya Patanaphakdee, Senior Executive Vice President - Managing Director Credit Restructuring and Asset Management Group at Krung Thai Bank said the bank has extended around USD 21.82 million to Saha Farms for labour expense and for purchase of PS and another USD 62.35 million for cash flow. "The production capacity at Saha Farms is around 200,000 chickens per day now and it is expected to reach the breakeven point at 300,000 birds/day” Mr Parinya said. Capacity before the financial crisis was 600,000 birds/day.
|Vietnam's pig farms upgrade gene pool|
[10 September 2014] Mid-sized swine farmers in Vietnam are advancing their businesses by upgrading the genetics on their farms. Ba Bach farm, for example, introduced 150 sows from Genus PIC last year to its 14-year-old open house farm. Unlike its old stock, which is hardy and can withstand high temperatures, the new breed prefers a cooler atmosphere, said owner Ba Bach. “I am planning to gradually upgrade to a closed house facility. When it is hot, the feed intake is not as good compared to GreenFeed’s pilot farm,” he told Asian Agribiz. GreenFeed Vietnam Corporation is a Vietnamese feed producer. It signed a joint venture agreement with Genus Plc’s porcine genetics division to supply gilt and semen to farmers in Vietnam. Mr Bach plans to build closed houses for his sows next year, and gradually extend this to the porkers. In the next five years he hopes to double his farm size to 300 sows.
|Myanmar poultry producers slam imports|
[10 September 2014] Cheap imports into Myanmar could undercut local producers, hurting the domestic industry as well as related industries and the workers they employ. “Our country can’t manufacture cars or airplanes, but we can do poultry well and improve it step-by-step,” said U Kyaw Htin, Chairman of the Mandalay Region Poultry and Egg Production and Trading Association. He said Myanmar is beginning to build modern industrial farms. Larger-scale production, meanwhile, will close the gap between prices on the farms, at USD 3.08/bird and at the market, where prices are about double. The Myanmar Livestock Federation said domestic poultry farming has increased annually by about 5% in recent years until 2013, where it grew 20%. The federation predicted higher growth this year.
|Malaysia's Marrybrown to expand food outlets in India|
[10 September 2014] Malaysian quick service restaurant chain Marrybrown will be expanding its foot print in southern India. The restaurant chain will also be adding more dishes to its menu card by mid-September, reported India’s Economic Times. “We are seeing growth in smaller towns like Rajapalayam, Dindugul and other places in Tamil Nadu. We would like to leverage the first mover advantage by opening outlets in smaller towns in the southern states,” said S. Ajith, Director of MGM Entertainments Pvt Ltd, master franchisee for the brand in India. “By the end of this fiscal we would like to increase the number of outlets to 75 from the current 48 (44 in Tamil Nadu, two each in Bangalore and Kochi). The expansion will be through a mix of owned and franchise outlets. For every five franchise outlets we will have an owned one,” he added.
|CP Prima produces vaccine to control IMNV|
[10 September 2014] CP Prima, the largest aqua feed producer and shrimp exporter in Indonesia, has said that the company has successfully produced a vaccine for infectious myonecrosis virus (IMNV). IMNV is one of the most dangerous viruses in shrimp farming. “Through modern scientific process and lots of trials we finally found the perfect vaccine to control the disease,” said Head of Corporate Communication Goerge Basoeki. However, according to Mr George, the vaccine is not ‘a silver bullet’. “It should be complemented with strict biosecurity and good farming practices and the use of good quality fry and feed.” Mr Goerge informed that CP Prima's subsidiary Centralpertiwi Bahari in Lampung has successfully curtailed the disease to less than 1% with the vaccine.
|India to set up indigenous cattle, buffalo breeding centres|
[10 September 2014] India’s government has said that it will set up two breeding centres with an outlay of USD 8.3 million to raise productivity of indigenous cattle and buffalo to meet the growing demand for milk and its products. “Currently, there is no national breeding centre in the country for development of cattle and buffalo. So, we have decided to set up the National Khamdenu Breeding Centres,” Agriculture Minister Radha Mohan Singh said. The purpose of the centres is to raise productivity of indigenous cattle and buffalo in a scientific manner, he said. Instead of going for foreign breeds for higher milk yields, Mr Singh said that there was a need to improve the productivity and quality of milk from indigenous cattle and buffalo, thereby improving the additional income of farmers.
|Japfa's image boosted with IPO|
[09 September 2014] Indonesia's Japfa Comfeed is emerging from an Indonesia-centric company to one with an Asian focus. Speaking to Asian Agribiz, Vice President Corporate Marketing Strategy, Like Chen-Joncas said that apart from boosting its Pan-Asian image, its recent IPO in Singapore offered the company traction in this robust financial market. “We were able to access international recognition from key investors. They have confidence in the governance in Singapore and we have always operated in the lines of good governance and integrity. Our IPO received tremendous support because investors understand what we’re trying to achieve and our focus. They are confident with our growth model," she said.
|Genus signs strategic pig multiplication deal in China|
[09 September 2014] Genus Plc signed a strategic agreement with Riverstone Farm (Shandong) Co Ltd to become Genus’ first commercial multiplier in China. Riverstone is a joint venture between Black River Capital Partners Food Fund Holdings (Singapore) Pte Ltd and US-based pig management company Pipestone System. Under the terms of the multi-year agreement, Genus PIC will exclusively stock and sustain Riverstone’s new pig production project in China, with a total anticipated herd size of 24,000 sows. Riverstone’s project comprises four breeding farms based in Shandong, capable of producing more than 600,000 pigs per year. The first module of 6200 pigs will be ready for stocking in the first quarter next year.
|Call for CP Cambodia to cap live exports|
[09 September 2014] A livestock industry representative has called on the Cambodian government to cap CP Cambodia’s live pig exports to Laos, citing shortages in the local market. CP Cambodia exported some 25,000 head of live swine – boars, sows and piglets – to Laos in the first six months of the year, The Phnom Pehn Post reported quoting data from the Ministry of Commerce. “CP Cambodia is the only exporter because they can produce quality sows, boars and they also have their own network in Laos,” said Suon Sothoeun, Deputy Director of Animal Health and Production Department of Agriculture Ministry. Cambodia imports more than USD 2 million in pigs from neighbouring countries for slaughter to supply the estimated 3 million pigs that are consumed annually.
|Minimum price of corn set to keep farmers’ productivity|
[09 September 2014] Chairman of the Indonesian Poultry Entrepreneurs Association (Gappi) Anton J Supit sees that price of local corn declining. Previously local corn was priced at USD 0.32-0.34/kg, now the price is around USD 0.27-0.29/kg. “Of course this is good news for feed millers. However, if this trend continues, corn farmers will choose to grow other food crops,” said Mr Anton. To overcome this situation, Gappi has coordinated with feed millers in the country to agree to a minimum selling price of USD 0.24/kg applied to six corn production centres namely North Sumatera, Lampung, West Java, Central Java, East Java and West Nusa Tenggara. “The minimum selling price is important to keep or even increase corn farmers’ productivity,” said Mr Anton.
|Vannamei drives India’s seafood exports |
[09 September 2014] India, the world’s second-largest producer of fish, exported USD 5 billion of seafood during 2013-14. Overall, the fisheries sector registered 5.9% growth during the year, with total provisional production at 9.58 million tonnes, according to the Handbook of Fisheries 2014 released recently by India’s Department of Animal Husbandry, Dairying and Fisheries. The surge in exports from USD 1.7 billion in 2009-10 to USD 5 billion in the past year ended March, was on account of vannamei shrimp, introduced in 2009 for coastal aquaculture, the report said. Vannamei alone contributed over USD 3.3 billion in exports in the past year.
|OSI scandal costs KFC|
[09 September 2014] The food-handling scandal at OSI’s Shanghai subsidiary sent KFC’s China sales into a severe slump, but sales were already recovering only a month after the scandal broke, the company said in a filing with the US Securities and Exchange Commission. Yum said China division same-store sales for KFC and Pizza Hut were down 13% for Q3 2014 compared to last year. The figures may understate the full extent of the sales slump, since the scandal hit halfway through Yum’s third quarter, suggesting late Q3 sales were down more than 25%. The company also said it is pursuing legal action for compensation against OSI. Slumps caused by past scandals have lasted longer than one month, and the SEC filing said Yum’s brands “have proven resilient over time, and we expect this to be the case with this situation as well.”
|De Heus’ Dong Nai mill invests in ICP machine|
[08 September 2014] De Heus’ newest plant in Dong Nai, Vietnam, recently took delivery of the ICP Machine Optical Emission Spectometry. The machine is used to analyse heavy metal content in raw material. “We use high technology equipment to get fast and accurate results,” Deputy Production Manager Hoang Quoc Hung told Asian Agribiz. The laboratory helps ensure quality and safety of products. Besides, heavy metals, the lab checks incoming samples for aflatoxin, fibre and protein content, fat and mould. “We pay attention to the stability and quality of products. We conduct audits at the suppliers’ base anywhere in the world not just at the gate,” General Director Gabor Fluit added.
|WH Group subsidiaries first to win Russian import license |
[08 September 2014] Two subsidiaries of Chinese pork giant WH Group have become the first Chinese companies to get permission to export pork to Russia, according to the Yangcheng Evening News. The two subsidiaries, Shuanghui Baochengling and Shuanghui Beidahuang, are both located in the Northeastern province of Heilongjiang near the Russian border. Russia is seeking pork imports from China following a US and EU embargo imposed after Russia’s actions in the Ukraine. The newspaper said Russia’s Veterinary and Phytosanitary Surveillance Service, which has been inspecting Chinese pork processing facilities, approved the facilities last week, and that other companies are expected to win approval soon.
|Sierad Produce to expand food division|
[08 September 2014] Indonesia’s poultry integrator Sierad Produce plans to invest USD 12.2 million to expand its food processing facilities, to be financed with internal cash and bank loans, said Director FX Awi Tantra. The company aims to boost food products output by 30%, said Mr Awi, adding that a new food processing plant would be built in either Central or East Java. The expansion is expected to be completed by 2015.
|Bird Flu hits northeast China|
[08 September 2014] The H5N6 bird flu virus hit a poultry farm in the north-eastern province of Heilongjiang, killing 18,000 geese, according to the Chinese Ministry of Agriculture. Officials sealed off the infected farm and culled another 69,000 birds, the ministry said in a posting on its website. No human infections were reported. Last April, an H5N6 infection killed a man in Sichuan Province, the first known human casualty from the H5N6 bird flu variety.
|Japan, Hong Kong bar NJ poultry on bird flu fears |
[08 September 2014] Findings of low pathogenic H7 avian influenza in ducks and pheasants in New Jersey, USA has prompted Japan and Hong Kong to suspend imports of poultry from the state, according to USDA’s Food Safety and Inspection Service (FSIS). The disease was found in Salem County, NJ, on a breeding farm and hunting preserve housing some 40,000 mallard ducks and about 8000 pheasants, a notice by the World Organisation for Animal Health stated. Japan also suspended poultry imports from regions in California and Delaware based on avian influenza concerns, FSIS said.
|India’s ITC ventures into milk business|
[08 September 2014] Indian tobacco-to-hotels conglomerate, ITC, is going to set up milk processing plants across Bihar, Uttar Pradesh, Punjab, Maharashtra, Andhra Pradesh and Telangana. The company has set up 261 cattle development centres in states like Karnataka, Odisha and Madhya Pradesh, and managed to increase daily yields nearly four times to up to 11 litres. ITC is already working with 30,000 farms in Bihar’s Munger and has set up integrated centres for delivery of animal husbandry services. To ensure fair remunerative prices, it is popularising transparent measurement practices by setting up e-testing equipment at milk centres. The company is also working on financial inclusion of farmers through tie-ups with banks for cashless farmer payment systems.
|Crysbro to invest in poultry farming in the Middle East |
[05 September 2014] Crysbro Group of Companies, one of the largest poultry integrators in Sri Lanka, plans to invest in broiler breeding and commercial farms in the Middle East, Chairman Mohamed Imtiaz told Asian Agribiz. The plan is sound as Crysbro has been selling broiler hatching eggs to the region for some years now. “We have found the right partner to set up a joint-venture there,” Mr Imtiaz said. For domestic expansion, meanwhile, Crysbro plans to venture into the ready meals sector. “We see that people are now very busy, they don’t have much time to cook. Besides, there are no competitors in this sector at the moment. Crysbro also plans to venture into commercial layer farming.
|GreenFeed targets feed sales of 4mt annually by 2020|
[05 September 2014] Greenfeed Vietnam Corporation recently celebrated its 11th anniversary signalling the start of its next phase of its growth towards 2020. This month the company will hold a ground-breaking ceremony for its sixth feedmill in Ha Nam province, south Hanoi. This plant will produce 300,000 tonnes/year of animal feed and 100,000 tonnes/year of aqua feed. It will be commissioned in September 2015. To be built at a cost of USD 25 million, it will feature two separate towers as well as three lines for animal feed and two lines for aqua feed. “From now until 2020 we plan to build one feedmilll per year. This year we are trying to reach a sales target of 1 million tonnes,” said General Director Tran Ngoc Chi. By 2020 it hopes to reach 4 million tonnes in sales per year. The company is also trying to expand to Myanmar, Cambodia and other Asean countries.
|WH Group's turnover up, profitability down after Smithfield acquisition |
[05 September 2014] WH Group’s turnover increased substantially in the first half of 2014 due primarily to the acquisition of US pork leader Smithfield Farms, but net profitability was down 37% from the same period last year. First half figures showed turnover up 220% to USD 10.54 billion, and net profit up 106% to USD 366 million compared to the same period in 2013, when WH Group did not own Smithfield. However, net profit as a percentage of turnover declined from 5.4% to 3.4%, according to figures in a WH Group announcement. The company said packaged meat sales revenue in China was up 5% year-on-year and fresh pork revenue was up 4%. The company, previously known as Shuanghui, also said that its debt-to-equity ratio had been reduced from 218% to 88% using USD 2.28 billion raised in the company’s August 5 IPO on the Hong Kong Stock Exchange.
|South Korea lifts ban on beef with feed additive|
[05 September 2014] South Korea has lifted a ban on the use of animal feed additive zilpaterol in beef, opening the door to imports containing the growth enhancer as well as domestic sales of the product. Seoul said last October that it intended to ease its zero-tolerance policy on zilpaterol-based drugs, such as Merck & Co Inc’s Zilmax, after a risk assessment found it could be permitted at certain levels. Many European countries as well as China have banned the import of zilpaterol-fed beef due to concerns about side effects of the additive, which is used to aid growth in the weeks before an animal is slaughtered. South Korea last year suspended some US beef imports for more than two months after traces of zilpaterol were found in two shipments. An official at South Korea’s Food Ministry confirmed that imports of beef muscle with 1 part per billion (ppb) of zilpaterol, 5 ppb in beef liver and 10 ppb in beef kidney had been approved as of late August.
|India's soymeal exports may hit decade low|
[05 September 2014] Soybean meal exports in the current financial year are expected to remain at a decade’s low of just two million tonnes as higher domestic prices have rendered it uncompetitive in the international marketplace, reported The Hindu. Soybean meal exports fell by 19% in 2013-14 and 10% in 2012-13, compared to previous years. Shipments during April-July 2014 stood at 107,381 tonnes, down by around 79%, compared to the corresponding period last year, revealed data from the Solvent Extractors Association of India. According to the Central Organisation of Oil Industry Trade, crop available for crushing in 2013-14 was about 9 million tonnes, down 7.4% compared to 9.7 million tonnes in 2012-13.
|China’s milk thirst will grow|
[05 September 2014] China’s thirst for imported dairy products will expand over the next five years to equate to New Zealand’s entire annual production, Agrifax Senior Dairy Analyst, Susan Kilsby said. “The gap between demand and supply in China has opened up and is expected to expand further. China was importing 25% of its dairy needs to fill the gap but by 2020 it would have to import 30%. That meant imports in 2020 would be 20 million tonnes, 70% higher than in 2013. New Zealand supplies 60% of China’s dairy products and virtually all their imported milk powder. The Chinese Government had set a target for domestic milk production of 50 million tonnes by 2015, which equates to a 40% increase from 2013 levels.” But Ms Kilsby said this is far too ambitious and will not be achieved. "It is hard to see the industry rapidly expanding when imports are cheaper."
|De Heus to sell 1mt of feed in five years’ time|
[04 September 2014] De Heus is currently building two new plants in Hanoi and Central Vietnam, which will be completed in January 2015. “A relatively young company in Vietnam, we have to catch up. Logistics costs are rising annually so it is important for us to have feedmills as close as possible to our customers. Also we need the additional capacity,” General Director Gabor Fluit told Asian Agribiz. Its new plants are built in two phases. According to Mr Gabor its available feed production capacity in January 2015 is estimated to stand at 850,000 tonnes at all its six locations. Four of these locations can increase their capacities further. With a market share of 6-7%, De Heus hopes its sales will reach 500,000 tonnes this year. In 2012 the company sold 260,000 tonnes of feed and last year it sold 380,000 tonnes. “Our goal is to reach 1 million tonnes in five years’ time. So that’s an additional capacity of 100,000 tonnes every year.”
|Phi Long Farm eyes a further processing plant|
[04 September 2014] Vietnamese mid-sized poultry farmer Phi Long, which operates 40 broiler houses in Dong Nai, each with roughly 15,000 birds, plans to venture into further processing in the near future now that its first slaughter facility is up and running. About 60% of the operation at the slaughterhouse is automated. The remaining 40% is where the hanging birds are slaughtered and eviscerated. Workers also cut the birds up into parts before they are packed. “Our customers are the traditional wet markets. Some 20% of our products are supplied whole while the remainder are sold in parts,” Mr Phi Long told Asian Agribiz. He said the planned meat processing plant will be fully automated for better hygiene. “We are hoping to produce canned food, as well as traditional Vietnamese food items which are ready-to-eat such as stews and fried products, as well as sausages and marinated items.”
|Thai operators support safe practices |
[04 September 2014] The Animal Husbandry Association of Thailand (AHAT) has told the public to stop spreading a video clip that damns contract farming saying that it leads to unsafe food as the scheme involves the use of antibiotics in livestock production. “The video produced in 2013 contains untrue information and damages the Thai food industry,” said AHAT’s President, Suthep Vongreun. He explained that Thailand has been developing its agriculture and food industries to meet food safety standards and does not use antibiotics in livestock production. Instead Thai operators opt for good genetic, good housing and feed and modern technology. Thai livestock operators also make sure that the use of any medicine in animals is for disease treatment and approved by law.
|Vietnam's demand for feed increases|
[04 September 2014] Demand for livestock and aquaculture feed in Vietnam in 2013 was 17 million tonnes and is expected to increase to 18-20 million tonnes in 2015 and rise to 25-26 million tonnes in 2020. In May 2014, Cargill completed the expansion of its Binh Dinh feedmill from 60,000 to 240,000 tonnes. China’s Tongwei was granted permission in May 2014 by Hoa Bihn province to build a feedmill with a 200,000 tonne annual capacity to be operational in late 2015. Dutch feed producer De Heus is building a feedmill in the northern province of Vinh Phuc. This will be the company’s fifth mill in Vietnam, and the company plans to build two more mills by late 2015. Chinese producer Tequhope, which currently has only one feedmill in Vietnam plans to build 12 more mills in Vietnam by 2020.
|Bangladesh, cautious outlook for agriculture|
[04 September 2014] Business Monitor International (BMI) in their Q4 2014 Bangladesh Agribusiness report holds a cautious outlook towards the Bangladesh agriculture sector. With high levels of toxic substances found in poultry feed and low food safety standards, it is evident that structural problems still plague the industry. Over the long term, BMI believes that there is much more room for growth and improvement in sub-sectors such as grains and livestock. That said, as the agriculture sector in Bangladesh employs close to 70% of the working population but contributes to only 20% of the country’s GDP; there is an obvious need for improvement in efficiency of operations. GM food policy is also an interesting area to look out for as Bangladesh is undoubtedly one of the most open Asian countries to GM food cultivation.
|Saudi Arabia may lift ban on Pakistan poultry|
[04 September 2014] Saudi Arabia, the world’s largest importer of broiler meat (875,259 tonnes in 2013) is all set to lift the ban on import of poultry products from Pakistan. The kingdom had suspended import of eggs and day-old chicks from Pakistan in 2005 due to bird flu. A four-member technical delegation of Saudi Food and Drug Authority (SFDA) recently visited Pakistan, and after visiting veterinary laboratories, SFDA officials expressed their satisfaction and observed that “standard of poultry facilities in Pakistan is as good as in many European countries”, reported Halal Focus. Secretary of National Food Security, Seerat Asghar, told the delegation that Pakistan has been declared free from bird flu since September 2008 and the poultry industry has been growing at an annual rate of 13%.
USSEC swine feed seminar in Bali, Indonesia
Notes from ARIEF FACHRUDDIN
[03 September 2014]
Important factors in adopting alternative feed ingredients
Using alternative feed ingredients in swine diets should be considered by self-mix farmers, according to Rommel C Sulabo, Professor of Monogastric Nutrition at the University of the Philippines Los Banos. However Prof Sulabo said that there are important factors in adopting alternative feed ingredients including accuracy and consistency of nutrient profile; palatability; risk to performance, pork quality and safety; presence of anti-nutritional factors; impact on gastrointestinal health; risk of contamination; quantity and consistency of supply; and ease of handling.
Maximising the use of high-fiber agricultural co-products
Prof Sulabo observed that there is an increase in use of agricultural co-products high in fibre in swine diets such as wheat bran and soybean hull. To maximise the use of these ingredients, Prof Sulabo said they should be fed to the right animal. “Research data shows that adult pigs have better energy digestibility since they can better degrade the fibre.” Besides, Prof Sulabo said: “Grinding, fermentation and enzyme treatment as pre-processing of fibre, and use of carbohydrase enzyme can help maximise the use of high-fibre ingredients.”
Measuring protein quality of alternative ingredients
Prof Sulabo said that protein quality of an alternative ingredient may be measured by total concentration of standardised illeal digestible amino acids, balance of amino acids and degree of heat damage. “Accurate assessment and proper adjustments in diet formulation can increase the feeding value of lower-quality protein sources.”
Fullfat soybean great energy, amino acids source for swine diets
USSEC Technical Manager Dr Basilisa P Reas said fullfat soybean meal (FFSBM) is a great source of both energy and essential amino acids and an excellent source of essential fatty acid linoleic acid and lecithin. “FFSBM improves palatability and reduces dustiness thus increasing feed intake. It can be used up to 20-22%,” she said. From her recent study comparing the use of extruded FFSBM made of US soybeans with non-US soybeans in pigs, FFSBM made from the US soybeans offer better performance at a lower cost.
Reducing feed wastage to improve farm profitability
Reducing feed wastage is the easiest way to improve farm profitability, said Prof Sulabo. He explained that sources of feed wastage may come from poor feeder design, broken feeders, carelessness, improperly adjusted feeders and meal feed at less than 700 microns. On the farm, 10% feed wastage can cost the owner around USD 13,500/year. Prof Sulabo reminded: “Don’t look too far to increase profitability. Opportunities may just be in front of you.”
CP Indonesia uses alternative feed ingredients
Charoen Pokphand Indonesia's Nutritionist for Eastern Indonesia Dr Nasril Surbakti told Asian Agribiz that the company has been using alternative feed ingredients for its pig feed such as DDGS, 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 cannot be used in high volume. “If used more than 10%, it may negatively affect the performance.” Dr Nasril revealed that with the increasing price of feed ingredients the company is active sourcing and evaluating alternative feed ingredients.
|De Heus breeds high standards for Vietnamese farmers|
[03 September 2014] Feed producer De Heus’s partnership with Belgium parent stock producer Belga Broed saw the joint venture supply the first batch of DOC in July. “We hope to grow to 200,000 DOC/week,” General Director Gabor Fluit told Asian Agribiz. He said the joint venture also hopes to supply quality DOC to Cambodia. De Heus ventured into the business as a service to their customers. The main suppliers of DOCs in Vietnam are integrators who hold back stock when demand is high. For swine breeding De Heus is working with Topigs from the Netherlands. “We tested to see which the best genetics for the country are. We hope to build a farm by the first quarter of 2015. In the first phase we will have semen available for our customers and in phase 2 we hope to have gilts.” He said although there is sufficient supply of semen, quality is an issue. “The average farm here can produce 20-22 piglets/sow/year. Countries in Europe are producing 28-30 piglets/sow/year. There is a huge gap in productivity.”
|Indonesia, Brazil challenges beef imports in WTO|
[03 September 2014] Brazil’s Council of Ministers of the Foreign Trade (CAMEX) announced that it will initiate a dispute process through the World Trade Organisation (WTO) to challenge the validity of a 2010 ruling by Indonesia’s Supreme Court, which annulled the 2009 Animal Husbandry Law that had allowed the importation of beef and cattle into Indonesia from “disease-free-zones” within countries, even from countries where other areas or zones country were affected by the same disease. The development of this issue comes amid news that the Indonesian government has also just revoked a four year ban on beef and cattle imports from Japan. While Japanese beef export volumes to Indonesia will be very small, the move underlines a desire within Indonesia to diversify supply options.
|Rains raise hopes among Indian soy farmers|
[03 September 2014] A poor monsoon, coupled with soaring domestic prices, has taken a toll on Indian soymeal exports in the current financial year. However, a spell of rains in soy-growing areas has brought fresh hope for the farmers. On one hand some soymeal exporters are apprehensive of a further decline in exports. Indore-based Soybean Processors Association of India (Sopa) has said the crop condition is not that bad. “It would be premature to predict exports and crop yield. Exports are likely to decline but it would stay near three million tonnes,” Rajesh Agrawal, Sopa spokesperson said. According to Sopa in the current year, soymeal exports during April-July 2014 stood at 93,000 tonnes against 518,000 tonnes in the corresponding period last year, a decline of 82%.
|Indonesian poultry companies’ profit drop on soaring costs|
[02 September 2014] Charoen Pokphand Indonesia in its unaudited financial report also reported weaker earnings. Its net income fell 18.2% to USD 107 million. Malindo Feedmill, meanwhile, booked a 19% profit decline in the first quarter of this year to USD 8 million. Corporate Secretary Rudy Hartono Husin said the profit decline was due to currency depreciation that affected the selling price of products. “At the end of 2013, the rupiah fell by 26% to IDR 12,189 per US dollar.” Despite the profit decline, Malindo booked a 15% net sales increase to USD 92.3 million in the first quarter of this year.
|Japfa’s operating costs outpace sales|
[02 September 2014] Japfa Comfeed Indonesia booked a 34% profit decline in the first half of this year as soaring operating costs outpaced sales. Japfa said that net income fell to USD 28 million in the January-June period from USD 42 million in the same period last year. Sales rose 18% to USD 1.04 billion, but the cost of goods sold jumped 22% to USD 885 million. Japfa said the company has had to bear higher costs since June of last year after the average 33% rise in subsidised fuel prices. Apart from that, higher labour wages and a weakening rupiah contributed to higher costs of many companies across the country.
|Vietnam government approves VAT exemption for animal feed|
[02 September 2014] Vietnam's government has agreed to the Ministry of Finance’s suggestion to slash value added tax (VAT) on animal feed to zero from the current 5% in order to support the animal husbandry industry, the Saigon Times reported. According to the Ministry of Agriculture and Rural development, Vietnam imported around USD2.25 billion worth of animal feed raw materials in the first eight months of 2014, a year-on-year increase of 9%. Corn was the major imported ingredient during the period with 2.83 million tonnes, worth USD 734 million, increasing 2.3 times in volume and 1.8 times in value over the same period last year.
|India to double the value of seafood exports |
[02 September 2014] The Marine Products Export Development Authority (MPEDA) is aiming for a 100% increase on the value of its seafood exports over the next three years, bringing the total from its current USD 5 billion to a USD 10 billion. MPEDA officials are planning to host training sessions for aquaculture farmers for tips on cultivating high-quality yields. “We are currently exporting seafood to US, Japan, Thailand, Malaysia, Russia and other European, South and Middle East countries. Moreover, the MPEDA is searching for new market avenues,” MPEDA Deputy Director (Aquaculture) S. Kandan said.
|Pakistan, chicken price drops as demand dips by 30%|
[02 September 2014] According to The Nation, the price of poultry meat in Pakistan dropped from USD2.28 to USD1.57/kg in one month as demand dipped to its new lows due to political uncertainty in the country. Broiler farm prices dipped to a low of USD0.93/kg in one month after Eidul Fitri, the season of marriages and festivities when demand for chicken meat usually peaks. Pakistan Poultry Association North Zone chairman Raza Khursand said that presently production cost is about USD1.33 – 1.37 while farm-gate price has crashed to USD0.93/kg. He said that around 3 million birds are produced on daily basis across the country.
|Poultry farm in Nepal to convert droppings into energy|
[02 September 2014] The Annapurna Poultry Breeders Farm in Khaireni, Nepal plans to produce electricity by using biogas from chicken droppings. Frustrated by constant load shedding, the owner Arjun Aryal has created a scheme to generate 30 kW of electricity from biogas. His farm raises 60,000 birds. Mr Aryal expects to be able to produce enough power to light his farm for five hours daily. The farm has invested USD 25,000 to produce biogas. “Nobody has produced power using chicken droppings in other parts of Nepal,” said Jeevan Shrestha, an expert on biogas at Luniva Green Energy Development, the firm that is helping Mr Aryal to develop the biogas plant. According to Mr Shrestha the plant will come into operation in six months.
|India, must increase milk production by 7.8 million tonnes|
[02 September 2014] The National Dairy Development Board (NDDB) has said India must increase the average incremental milk production from 4 million tonnes (mt) in the last 10 years to 7.8 mt in the next eight years to meet growing demand. India’s estimated demand for milk is expected to be about 155 mt by 2016-17 and 200 mt in 2021-22, said NDDB Chairman T Nanda. He said the ongoing National Dairy Plan (NDP) is a scientifically planned multi-state initiative to increase productivity of milch animals and thereby increase milk production to meet the rapidly growing demand. The first phase of NDP is focussing on 14 major milk producing states, which account for more than 90% of the country’s milk production, over 87% of the breedable cattle and buffalo population and; 98% of the country’s fodder resources.
|Crysbro, Bairaha setting up new feedmill|
[01 September 2014] Together with Bairaha Farms, Crysbro Group of Companies in Sri Lanka are setting up a new feedmill. Crysbro Chairman Mohamed Imtiaz told Asian Agribiz that the plant will have an installed capacity of 20 tonnes/hour, but the capacity is expandable to 40 tonnes/hour. The plant will also have six 3000-tonne silos to store corn and soybean. He said the plant will be equipped with a feed milling system from Buhler and the least cost formulation software of BestMix from Adifo. “The plant will be the most modern plant in the country,” Mr Imtiaz said, adding that it is expected to be operational in April 2015.
|Poultry manure more potent for biogas production|
[01 September 2014] Philippine poultry producers can utilise their chicken manure for biogas production, Mr Romel Gozas, VP for Business Development of Bio-Alternative Green Solutions told participants of the Bitrade Poultry Breeder Summit held in Manila, Philippines on August 28. Among the benefits of biogas include the elimination of odour and groundwater pollution, provides a non-polluting and renewable source of energy, and it also is an effective fly control mechanism to name a few. He said unknown to many, poultry manure is actually a more potent source of biogas than pig manure, yielding 130 cu.m/tonne of gas vs 80 cu.m/tonne from pig manure.
|Vietnam, pig farmers targeted in chemical probe|
[01 September 2014] Agencies in Vietnam's Ho Chi Minh City and Hanoi and the provinces of Dong Nai, Vinh Long, Hung Yen and Thanh Hoa plan to conduct investigations into the pig breeders' use of banned chemicals in animal feed according to Vietnam News. Tran Van Quang, head of the Veterinary Department of Dong Nai Province, said that six of more than 20 pig-breeding farms that were inspected in the provinces had been using the banned lean-meat additive Sulbutamol. The price hike of pork had prompted breeders to use the chemical in animal feed, he told the meeting organised by the Department of Livestock Production and the HCM City Department of Agriculture and Rural Development in Ho Chi Minh City recently.
|Greenfileds Milk to double Malaysian sales by 2015|
[01 September 2014] Indonesia’s Greenfields Milk is eyeing the bullish business growth in Malaysia and aims to double total sales to two million litres of milk worth USD 6 million by end-2015. The fresh milk brand, which entered the market in October last year, has so far recorded USD 2.7 million in sales value with four products available in the market -- Fresh Milk, Choco Malt, Whipping Cream and 200 gram Mozzarella cheese. Sally Lum, Head of Marketing for Austasia Dairy Group, distributor for Greenfields Milk, said the growth would be driven by the increasing demand for dairy products, changing lifestyle, better education on dairies, as well as, better and more modern retail operations. She said the product's quality itself, location wise, new variant products, coupled with better technology in chilling and transporting goods would also support the growth target.
|Nepal receives first container of Danish pork|
[01 September 2014] Last month Nepal took delivery of its first container of Danish pork. The 20-foot container had a mixed consignment of pork loins, bones, hams, bellies and spare ribs. It was shipped to Calcutta in India then transported by lorry to Kathmandu. According to Denmark's ESS Food Area Export Manager Lars Bo Hansen, Sanu Khadgi, a wholesaler in Kathmandu ordered the products. “This has been a really exciting job, initiating the first Danish pork meat export to Nepal.”
|17 plead guilty in toxic dog meat scandal |
[01 September 2014] Seventeen men in the Zhejiang Province port city of Ningbo pleaded guilty to charges of stealing dogs, killing them with poison and selling the poisoned meat, according to Shanghai Daily. In another food scandal revealed earlier in the week, Zhejiang Province authorities charged 38 people with selling chicken feet soaked in hydrogen peroxide, used to bleach aging meat. In the dog meat case, two of the dealers were charged with selling 22 tonnes of toxic meat in 2012 and 2013. The dogs were killed with cyanide or succinylcholine, an aesthetic, traces of which remained in the meat. Most of the meat was sold to restaurants, police said.
|Maharashtra Feeds to open new mill in September|
[29 August 2014] India’s Maharashtra Feeds Pvt Ltd, which operates feedmills in North, Central and East India, will commission its seventh feedmill in September. The newest mill, a 250 tonne/day facility, will initially have an operating capacity of 150 tonnes/day. “This is the market we know we already have,” Managing Director Kamal Deep Jain told Asian Agribiz. The company, which started operations in 1993 with only mash feed, has launched about one new mill every year since 2006. “In the last seven years we have been growing at a rate of 40% per year,” he said. The next two years the company will consolidate its operations and plan for the coming years.
|Producers urged to take advantage of preference for smaller birds |
[29 August 2014] One of the strategies that Philippine poultry producers can take to survive in an increasingly liberalised market is to focus on the local consumers’ preference for whole chicken at smaller sizes, Atty Elias Jose Inciong, President of the United Broiler Raisers Association (UBRA) told participants of the Bitrade Poultry Breeder Summit held in Manila, Philippines yesterday. Noting that local producers cannot compete with global players like the US and Thailand when it comes to efficiencies, he said several local players have decided to turn to supply the growing roasted chicken market, which require smaller birds. Although efficiency figures may not hold against other key global players, these producers make up for it by having more production cycles per year and faster turnarounds.
|Russian companies to buys Thai chicken at visit|
[29 August 2014] Three Russian companies visited Thailand recently to buy Thai foods products including chicken and duck, according to Nantawan Sakultanak, Director General of the Department of International Trade Promotion at the Ministry of Commerce. The Russian companies will also explore chicken processing procedures at Charon Pokphand Foods Plc and Betagro, she said. Thailand expects demand for chicken from Russia to increase as sanctions by the US and European Union has forced the country to find alternative sources. A Thai delegation will visit Russia soon to meet with its Federal Service for Veterinary and Phytosanitary Surveillance (FSVPS) to negotiate to eradicate obstacles on meat product imports from Thailand. At present, FSVPS has approved imports from 21 chicken plants in Thailand.
|Malaysia's agri-sector lifts GDP growth|
[29 August 2014] Malaysia’s Central Bank or Bank Negara Malaysia (BNM) said the country’s GDP expanded to 6.5% in Q2 compared with 6.2% in Q1. For the previous corresponding quarter, the GDP grew by only 4.5%. The main contributor was the agricultural sector which grew by over 200% to reach 7.1% compared with only 2.3% in Q1. In fact, the sector posted the fastest growth in the last 10 quarters, averaging 2.2. “The agriculture sector rose by 7.1% year-on-year (yoy) during the quarter, highest since Q3 2011. The growth was broad-based, led by crude palm oil, which strengthened by 14.9% yoy as a result of better yield performance, and by the livestock sub-sector, mostly consisting of poultry, which grew by 6.1% yoy amid higher domestic demand for chicken products.
|Thai investor buys Vinamilk shares|
[29 August 2014] Thailand’s F&N Dairy Investment has bought 15 million shares of Vinamilk (VNM) at a price higher than the Vietnamese company’s actual market value reported Vietnam News. Investors linked to Dragon Capital and a fund managed by VinaCapital reportedly sold a combined volume of 15 million shares to the Thai shareholder. Notably, VinaCapital announced the purchase price at more than USD 5.7, which was 9.7% higher than Vinamilk’s value at the time of the transaction.
|Greenfields Milk to double production by 2016 |
[29 August 2014] Indonesia's Greenfields has imported 1,200 Holstein Heifer cows from Australia in a move to help double annual milk production in the next two years. Greenfields 50-hectares farm in Malang East Java currently has 6,000 pre-bred Holstein cows, producing more than 27 million litres of milk, annually, which are packed and distributed to Singapore, Malaysia, Indonesia, Philippines, Myanmar, Brunei, Cambodia, and Hong Kong. A plan to build a second integrated farm is currently underway with 8,000 new Holstein cows to be imported from Australia. The new 180-hectare farm, expected to be completed by late 2016, would likely double Greenfields' total milk production to 54 million litres per annum.
11th Southeast Asia US Agricultural Co-operators Conference, Danang, Vietnam
Onsite reporting by RACHAEL PHILIP
[28 August 2014]
US Soybean Board predicts bumper crop in 2014/2015
The US Soybean Board expects 2014/2015 to be a record year with soybean production hitting 98.93 million tonnes. Although the year began with low stocks of 3.53 million tonnes, end stocks are expected to touch 8.98 million tonnes. According to Chairman Jim Call, planted hectares in 2014 stood at 32.98 million against 31.21 million. Speaking to Asian Agribiz, he said beans from the north has a lower crude protein content compared to beans from the mid and south US. “We are looking at increasing crude protein content through seed technology. Sometimes the crude protein levels are high but oil levels come down. If we can fix this we get a better market.” He said buyers prefer their soybean shipped out from the Pacific Northwest because of the shorter time compared to the Gulf in the south but end up choosing the latter because of the higher crude protein content of beans from the south.
US farmers prioritise sustainability issues
In the last 20 years US farmers have increased crop yields while decreasing negative environment impacts such as energy, land use, soil erosion and irrigation. USSEC Chairman Randy Mann said US farmers are dedicated to innovation and best practices. For instance, after collecting soil samples, precision chemical application via GPS technology alerts the farmer on which part of the land needs to be fertilised. Speaking to Asian Agribiz, he said the council made it a point to listen to the needs of Asian buyers. “One of the concerns buyers had was that China would take up all the soybeans. This is tough if Brazil suffered a drought. Over the years we have increased our soybean production and yields through hybrids and genetics, which offer better traits. In this way we can meet our livestock demand and have about 61% to export.” Mr Mann retires this year from the council.
Will the industry see multi-year declines in grain prices?
Global corn supplies is expected to surge to roughly 1.15 billion tonnes in 2014 compared to roughly 1.10 billion tonnes in 2013 and 1.00 billion tonnes in 2012. The USDA recently forecasted a flat US ethanol demand into 2022. Will these factors contribute to a multi-year decline in feed grain prices? In his presentation, AgResources Company Chief Economist Dr William I Tierney Jr, estimated average farm price could drop to USD 4.45/bushel in 2013/14, and much lower in the subsequent years. Factors that could damper the drop in prices are extreme weather conditions and China’s policy regarding feed grain prices. “Corn prices will drop but there is an uncertainty on how fast prices will adjust,” he said. Mr Tierney also expects transportation costs to go up as operators of US rail are increasingly opting to transport oil over grain. This could have a spill over effect on barge charges. “Farmers will receive less and importers will have to pay more.”
Buyers, integrators confident of low prices
A quick survey at the conference showed that buyers and integrators were optimistic over feed grain prices for next year. They expect prices to show a noticeable decline after years of tight supply and high prices. “Net prices could come down by as much as 12-15% by early next year because of the ample supply of corn and soybean,” said Dato’ Fong Kok Yong, Managing Director of Malaysian integrator Sinmah Resources Bhd. “The basis will have only a marginal effect on the overall cost,” said Selpha O Trinidad from Longview Agribusiness Solutions. Meanwhile Thomas Milke, Executive Director of ISTA Mielke GmbH, said now is the time consumers should build their stocks. “Consumers are tempted to wait out in a declining market, they are waiting for the market to bottom out as soybean meal is still overvalued,” he said.
|China seizes 30,000t of contaminated chicken feet |
[28 August 2014] Chinese authorities had seized 30,000 tonnes of chicken feet polluted with hydrogen peroxide after police busted nine factories in the provinces of Jiangsu, Anhui, Henan and Guangdong, according to china.org.cn, citing a Xinhua report. Up to 38 people have been arrested so far on suspicion of making or selling contaminated chicken feet which is one of the country's favourite snacks. This latest food scandal in China broke after the tainted snacks were first found in Yongjia County of Zhejiang Province in east China. The factories used hydrogen peroxide solutions as bleach and antiseptic. Hydrogen peroxide has a wide use in the manufacturing and medical sectors as a disinfectant and bleach but could be harmful to health if mixed with food. Police are looking for another 11 suspects.
|KKR takes 18% share in Fujian Sunner|
[28 August 2014] US private equity investor KKR has agreed to pay USD 400 million for an 18% share in Fujian Sunner Development, China’s largest chicken producer, giving it a foothold in yet another industry where the Chinese government is encouraging consolidation. The government has made safety a priority in the meat and dairy sectors following a spate of scandals, and believes vertically integrating the dairy, pork and poultry sectors is a key step in improving overall food safety. KKR has also taken large stakes in China Modern Dairy and COFCO’s pork unit, following a classic China investment strategy by looking for profitable deals that fit in with government policies.
|Asia Pacific second highest feed enzymes market|
[28 August 2014] According to a new report of MarketsandMarkets, the feed enzymes market is estimated to reach about USD 1,280.1 million by 2019. The Asia Pacific market is estimated to have the second-highest CAGR of 7.6% from 2014 to 2019 after Europe. The rest of the world market for feed enzymes is projected to grow at the highest CAGR of around 8.8% from 2014 to 2019.
Asian Meat Magazine highlights in September/October
[27 August 2014]
Raising the standards in shrimp farming
For the fourth year running disease is the number one concern among shrimp producers, surpassing production and feed costs. Last year global shrimp production was some 15% off from 2011. Although a dreaded disease, the EMS is a potential game changer that could revitalise the entire shrimp industry in the region. Producers are learning that diseases like the EMS are manageable, and investment in the industry is necessary to take the industry to the next level, RACHAEL PHILIP and the ASIAN AGRIBIZ team report.
Burapa Farm to create community pork shops
Apart from building a pig slaughterhouse some years ago Burapa Farm 101 owner and Manager Prasit Laungmanee opened a retail shop for pork meat and pork-based products early this year. He wants the company to become the Kitchen of Roiet and for nearby provinces in the north-eastern region, writes NITSARA THONGRUNG.
CJ to develop brand and raise sales by 90%
Last year the chicken slaughterhouse division of CJ Indonesia recorded good business growth spurring the company to consider increasing its sales by 90% this year. ARIEF FACHRUDIN learns that it plans to build a third slaughterhouse and, within five years, a further processing plant.
Fresh Options expands and widens product offerings
Fresh Options has come a long way since its establishment almost nine years ago, expanding aggressively from a small meat shop in Central Luzon into one of the fast-rising meat companies in the country. ISA Q TAN reports where the company is headed and how it plans to get there.
Plus special reports on ProPak Asia 2015 in Bangkok Thailand; the 12th Annual China International Meat Industry Exhibition in Beijing, China and VIV India in Bangalore, India.
|Essar Agro to double capacity of oil plant |
[27 August 2014] Indian premix producer Essar Agro Products’ two-month-old soy-based oil plant in Indore has the capacity to produce 6000 tonnes of oil per year. Managing Director Lucky Bhatia told Asian Agribiz that strong demand from feedmillers and integrators will see the plant double its capacity by December this year. “Our product undergoes a special purification process that removes all impurities and toxic material such as wax, saponifibles, peroxides and moisture,” he said adding that prior to this feedmillers did not have much option and were forced to buy oils that were blended with up to three types of raw material and contained toxic substances and free minerals. Called Booster, the energy concentrate, which promotes growth, can be used as an animal feed supplement for all species.
|Thailand denies rumours about mysterious death of pigs|
[27 August 2014] Thailand’s Department of Livestock Development has denied rumours in social media about the mysterious death of pigs in the major production areas in Nakhon Pathom and Ratchburi. DLD Director General Trissadee Chaosuancharoen said DLD has investigated the farms in the areas and found no proof of this. He confirmed that DLD employs stringent surveillance measures against livestock epidemics and that pig farms are regularly examined and audited. Surachai Sutthitham, President of the Swine Raisers Association clarified that Porcine Epidemic Diarrhoea (PED) virus was the cause of pig mortality but consumer safety is not compromised. The Thai swine industry is working hard to control the PED epidemic, Mr Surachai said.
|Bird flu detected among pheasants in Vietnam|
[27 August 2014] The highly pathogenic H5N6 Avian Influenza virus had been detected in a flock of pheasants in the northern province of Lao Cai's Bao Thang District, Vietnam, Vietnam News reported. Local authorities in Lao Cai have taken measures to prevent the spread, including strict quarantine regulations and inspection of poultry transport and trading. A total of 558 pheasants were found susceptible, out of which 498 cases and deaths were reported and all remaining poultry in affected flocks were destroyed after the virus was detected. The deadly H5N6 bird flu strain was detected for the first time in Vietnam in mid-August in chickens in the northern province of Lang Son on the border with China, and a flock of ducks in the central province of Ha Tinh which borders Laos.
|Japan looks to Indonesian poultry supply|
[26 August 2014] Indonesia and Japan are in talks to resume poultry shipments from Indonesia after a 10-year suspension. The talks began just weeks after the latest food safety scandal involving a Chinese meat supplier caused McDonald’s Corp in Japan to withdraw its full-year earnings forecast. “We expect to export chicken to Japan worth around USD 200 million, or 10% of Japan’s total chicken import market of USD 2 billion,” Indonesia’s Trade Minister Muhammad Lutfi said. “Japanese inspectors are now in Indonesia to inspect production facilities.” Although talks are still ongoing, Mr Lutfi said he was optimistic the ban would be lifted and exports would resume by December 2014. This would benefit poultry producers such as Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Sierad Produce and Malindo Feedmill.
|Godrej Tyson to widen distribution|
[26 August 2014] Godrej Tyson Foods is expanding its distribution network for both fresh chicken and ready-to-eat products especially tier II and III cities. The joint venture between Godrej Agrovet and US-based Tyson Foods currently supplies fresh chicken under the brand name Real Good Chicken in the top seven cities and ready-to-cook Yummies in 62 cities. In the past two years, the company has been investing in cold chain infrastructure to reach out to more stores in tier II and III cities. “The inadequate cold chain infrastructure in India has been restricting us from expanding our market. In the past two years we have provided over 2,000 chillers to mom and pop shops, in these cities to stock our Yummies brand. We have spent around USD 1.6 million on this,” said Godrej Tyson Foods COO Arabind Das.
|Late monsoon delays corn planting in India|
[26 August 2014] Corn planting in India has been affected by the late monsoons. Up till August 24 up to 7.42 million hectares had been planted against 8.01 million hectares last year said Amit Sachdev, India Representative of the US Grains Council. He added that despite the absence of buying pressure the average prices of corn has moved up by 3.93% to USD 222/mt, similar to last year's level.
|Indonesia revokes beef import ban on Japan|
[26 August 2014] Indonesia has revoked a four-year ban on beef and cattle imports from Japan, in a move to diversify its supply sources, an official of Indonesia’s Agriculture Ministry said. Indonesia banned Japanese beef imports in early 2010 following concerns over foot and mouth disease. Indonesia is potentially a new market for Japan’s wagyu beef and may help meet the Japanese government’s goal of increasing agriculture-related exports. Director General of Livestock and Animal Health Syukur Iwantoro said that following inspections and an audit, all importers are now free to buy from Japanese suppliers. “This will reduce Indonesia’s dependency on Australia,” he said.
|South Korea expected to import more beef|
[26 August 2014] South Korea is expected to import more beef next year as domestic cattle numbers continue to fall and beef prices rise. According to the US Department of Agriculture total beef cattle numbers continue to drop as many smaller operations have struggled with high feed prices “coupled with the government plan to compensate farmers that stopped raising cattle”. Meanwhile, an increase in calf prices is causing farmers to retain their cows for breeding purposes. Next year’s beef production is slated to decrease by 7.4% from this year’s level.
Asian Agribiz Poultry Feed Quality Conference 2014
Focus on feed enzyme development and proteins
[25 August 2014]
The second day of the conference saw another eight expert speakers present topics on feed enzyme development and proteins, complementing the first day’s presentations on carbohydrates and fibre and quality assessment by NIR.
Optimising protease use
Although opportunities exist to reduce feed costs with the use of proteases, performance advantages of up to 10% have been reported when diet characteristics e.g. amino acid ratios, energy density etc are aligned to product functional patterns, said Aaron Cowieson, Principal Scientist, DSM Nutritional Products. He concluded that proteases offer enormous potential to the global feed industry and play an important role in environmental and financial sustainability. However, he added that the effects exploited today represent only a small portion of the potential of this emergent feed enzyme technology.
Better FCR with superdoses of phytase
In her paper titled ‘Superdosing phytase – providing more than just phosphorus’, Carrie Walk, Research Manager of AB Vista said superdoses of a highly efficient dietary phytase improved FCR of market age broilers by 5 points, 88% of the time. This is due to nearly complete phytate destruction and the mitigation of the anti-nutrient effects of phytate. However, successful implementation of a superdosing program in broiler diets requires a specific phytase matrix and a highly efficient phytase, able to maintain activity at low phytate concentrations.
Crucial that exogenous enzymes are not added on top of diets
It is crucial that, in feed formulation, exogenous enzymes are not added on top of diets, or given arbitrary fixed matrix values that are independent of the substrate levels and inherent digestibility of the diet to which they are added, said Peter Plumstead, Associate Professor, Monogastric Nutrition, University of Pretoria, South Africa. Rather, nutrient contributions from enzymes can be more accurately derived using empirical models that include a description of the substrates contained in the diet to strategically inform the end user of the biological and economic value of the enzyme product.
Full fat canola seed an attractive energy and protein source
As the price of oil is generally increasing, in most cases it may be uneconomic to supplement poultry diets with oil, explained Reza Barekatain, Senior Research Officer Poultry Nutrition, South Australian Research and Development Institute. “There has been renewed interest in the use of full fat oilseed meals to replace a portion of added feed grade fat as the price differentials between oilseeds, protein meals and extracted oils have changed due to increased oil demand from the biofuel sector. Full fat canola seed is considered an attractive energy and protein source that can potentially substitute supplemental oil in poultry diets,” he said.
Formulate diets on possible differences in AME and digestible amino acids
Addressing recent research on soybean meal (sbm) at Massey University, Basilisa P Reas of the US Soybean Export Council said animal performance is directly related to digestible amino acid and AME contents of sbm. “Nutritionists should, therefore, formulate diets not exclusively on the adjustments to total amino acids based on crude protein contents, but also consider possible differences in AME and digestible amino acids as this is of economic importance. The current practice of using an average value for the AME and digestible amino acids will lead to imprecise feed formulations.
|Sri Lankan demand for chicken down in Q2|
[25 August 2014] Sri Lankan demand for chicken declined in Q2 2014 with the prices of both broiler and DOC declining to a considerable level while the cost of production rose rapidly, poultry producers complained. Poultry Producers Forum’s Joint Co-coordinator Yakooth Naleem, who is also Bairaha Group’s Managing Director, said that there was a lull in the market due to a dip in demand by low and middle-income consumers while demand was stable among high-income segments. “The reason for this was the buying power fluctuation among consumers.” Mr Naleem added that the industry has experienced many months of excess production, as a result of reduced demand for chicken.
|Chinese pork to Russia?|
[25 August 2014] The Russian government, which recently banned pork imports from the US and the European Union, has decided to allow pork imports from China, according to media reports. That might create a worldwide trade shuttle, with China importing pork from the US and EU, while at the same time exporting domestic pork to Russia. Russia’s veterinary service is now preparing a list of approved Chinese exporters, according to an Interfax news agency report quoted by China Daily. While China is a net pork importer, price and regional variations may make it profitable for some Chinese companies to export to Russia. Industry insiders say the most likely route is via China’s western rail route through Xinjiang to Kazakhstan, the shortest route to European Russia.
|Surging Asian demand makes dairy the top earner in US|
[25 August 2014] Last year US dairy farmers generated a record USD 6.7 billion in export revenue, more than corn, poultry, beef or pork exports for the same period. Strong demand growth in Asia for US dairy products was seen as an important driver of growth. This trend, said a report in Reuters, is reflective of yet another wave in the ongoing westernisation of diets across much of the developing world, especially in Asia where a majority of the world’s butter and whole milk powder is consumed. Chinese consumers in particular have developed a taste for milk, yogurt and cheeses to complement their higher intake of meats and other fats. Dairy demand growth has accelerated at a faster pace than demand for grains and meat products over the past five years.
Asian Agribiz Poultry Feed Quality Conference 2014
Carbohydrates & fibre, and NIR dominate Day 1
[22 August 2014]
Asian Agribiz’s annual two-day Poultry Feed Quality Conference opened in Kuala Lumpur yesterday. The conference focused on Carbohydrates and Fibre, and Near-Infrared Spectroscopy on the first day. Today expert speakers will address Enzymes and Protein. The conference hosted over 300 participants from the region and 18 expert speakers.
Raw material variables cannot be avoided but must be managed
Raw material variability is especially high in animal by-products such as meat and bone meal, fish meal and poultry by products. According to Evonik (SEA) Pte Ltd Technical Sales Manager Dr Kiran Doranalli the variables cannot be avoided but they can be managed. “It is important to analyse raw material for nutrient content and this information can be used as a purchasing decision or when selecting suppliers.” He said, after analysis raw material can be classified based on supplier, country of origin or even on crude protein levels. “Once this is done, feedmillers can produce different formulations so as not to compromise on animal performance.” He said it is crucial to communicate the analysis to the purchasing department, nutritionist, quality control and feed managers so everyone is kept in the loop.
New analytical methods for dietary fibre
Analytical methods for the analysis of mono- di- and oligosaccharides as well as available and resistant starch have been available for a number of years, explained Hadden Graham in his presentation titled 'Carbohydrate chemistry, analysis and nutrition'. He added that new analytical methods or combinations of methods for both total and soluble/insoluble dietary fibres in accordance with new international definitions have been developed. These methods can give much more accurate and informative figures than traditional gravimetric methods, and therefore databases need to be developed to include both more classical and newer analysis of a wide range of feedstuffs.
Pelleting does not always mean better digestibility of nutrients
Professor Gonzalo G Mateos from the Universidad Politecnica de Madrid, Spain, reminded participants that birds will eat more if the feed is pelletised and subsequently grow faster but this does not mean that the digestibility of nutrients will improve as feed conversion rate does not always improve with pelleting. “New research indicates that high temperatures used in the pelleting process can reduce nutrient digestibility,” he said. Producers must also control the amount of fibre used in the diet of birds. “Excess fibre will reduce feed intake and digestibility while low fibre intake will reduce gizzard function.” He said fibre intake depends on particle size, type of fibre and the problems faced by the poultry farmer.
Latest formulation tools offer quick results and convenience
In a presentation entitled Money and Time-Saving Formulation Tools Adifo NV Consultant Arpad Zsok said feed formulation tools today must provide easy data management, formulation recipes at the best quality and the lowest cost, translate the optimum recipe into practical products and can integrate with ERP systems. “Advance user interface will feature fast access, one-screen handling which is capable of showing multiple tables such as composition, contribution and analysis on a single screen.” The tools must also be able to provide moisture and enzyme optimisation data. For instance, for enzyme optimisation, it must be able to provide multi-blend formulations for a range of products, multi-plant formulations, which can help reduce ingredient costs, and multi-period formulations cutting across seasons and months.
NIR platform offers accurate nutrient analysis
Nutrient analysis can be done for ingredient testing, in-process testing and final product testing. While wet chemistry testing can take days and is expensive, the NIR platform is a practical, convenient and accurate nutrient management technology. “It is a quick testing method, non-destructive and does not use hazardous chemicals. The machine can conduct multi-component analysis with a single sample. More samples are measured showing a better nutrient profile of the samples compared to wet analysis,” said feed milling consultant Ivan Ward. He said producers must keep in mind the components that contribute to the accuracy of the NIR platform, namely reference analysis, calibration, results interpretation and NIR hardware. “The accuracy of the machine depends on regular maintenance and a decent calibration range.”
Crude fibre concentrate is a good alternative to traditional fibres
Insoluble fibre is a better fibre source as it contributes to faster transit in the bird’s gut compared to soluble fibre, which increases digesta viscosity, slowing down the transit period. According to Manfred Pietsch, Business Unit Manager Animal Nutrition of J Rettenmaier & Soehne GmbH, traditional fibre sources such as rice and wheat bran are easily available and cheap but they are highly contaminated with mycotoxins and contain low fibre levels which are soluble. “One good alternative is crude fibre concentrates, also known as functional fibres, which undergo special milling technology.” The product, he said, reduces mortality rate, increases hatchability and egg production in layers. “It also increases gizzard size, improves starch digestibility and limits feather pecking.”
|Poultry Feed QC opens today in Kuala Lumpur|
[21 August 2014] Asian Agribiz's annual Poultry Feed Quality Conference opens in Kuala Lumpur, Malaysia today. It will see 18 expert speakers address four themes namely enzymes, protein, NIR and carbohydrates & fibre. The conference this year has attracted 330 participants from throughout the region and it will run until August 22.
|Thai eggs price to drop on rising supply|
[21 August 2014] Egg price in Thailand is expected to decline in September-October as higher egg supply is forecast then. Chavalit Cookajorn, Permanent Secretary of the Ministry of Agriculture said that the Egg Board, the core body overseeing egg industry policy and measures, predicts supply will hit 39.2 million eggs per day, up from 38.8 million eggs at present. The Egg Board’s committee on consumption promotion is assigned to introduce measures to boost per capita consumption to 300 eggs per day from 270 eggs per day at present while the committee on price is asked to consider cost of production and set an appropriate price for reference. Benchmark price of egg is now at THB3.30/egg (USD 0.10) while cost of production is around THB2.90/egg (USD 0.09) which Mr Chavalit considers an appropriate price.
|Philippines livestock production value up in 1H 2014|
[21 August 2014] The Department of Agriculture announced that production in the Philippine’s livestock sector grew slower at 0.94% compared to the 2.12% growth in the first half of last year. Cattle, hog and dairy production, continued to increase albeit slower compared to the same period last year, while lower goat production brought down overall growth. Gross earnings in the livestock subsector, however, rose 6.33% to USD 2.735 billion at current prices on increased revenues from carabao, cattle and hog raising. The poultry subsector registered a slower production growth rate of 0.73% against 4.56% in the same period last year on increased production of chicken and duck. Egg production, however, fell 4.18% during the reference period as layers were affected by extremely hot weather conditions. Gross value output of the poultry subsector, however, rose 5.91% to USD2.247 billion at current prices on increases in earnings from chicken, duck, and duck egg production.
|Blockades affect Punjab poultry industry|
[21 August 2014] Poultry production was badly affected by present adverse law and order in Punjab, according to a statement issued by Pakistan Poultry Association (PPA). Blockades hit transportation of DOC from hatchery to poultry farms, broiler from poultry farms to market, poultry feed from feedmills to poultry farms and diesel from filling stations to poultry farms. The statement said the poultry industry faced great difficulties. Raza Khursand, PPA Chairman, said supply-side constrains led to heavy mortality, causing huge losses to owners of poultry farms. He added this would ultimately lead to unavailability of broiler in the market, besides a price hike. He added despite intervention by the Punjab Livestock and Dairy Development Department, transportation related problems could not be resolved, inflicting losses of millions to industry.
|Vietnam is top shrimp exporter to Korea|
[21 August 2014] Vietnam's shrimp exports to Korea skyrocketed 92.2% since the start of the year, according to the Vietnam Association of Seafood Exporters and Processors. As of end June, Korea was the fourth largest export market for Vietnamese shrimp, accounting for 7.7% of the sector’s total export value. In the six month period, exports of white-leg shrimp rose 17% while prawn exports declined by 17.9% and other shrimp products saw a modest rise of 1.2%. The average price of Vietnamese shrimp hovered around USD 11/kg. According to the latest data from Korean Customs, Vietnamese shrimp held a 44.54% market share in the country. Vietnamese shrimp imports were 3.6 times higher than neighbouring China, the second largest supplier.