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Feed hygiene and Salmonella – comprehensive, integrated and multiple hurdle approach
[1 July 2016]
Dr Rick Carter, Technical Services Manager, Kemin Agrifoods will be one of the speakers at Asian Agribiz Broiler Feed Quality Conference in Bangkok, Thailand on August 18-19. He will provide expert insights for controlling Salmonella at all levels along the feed-to-food chain: raw materials, finished feed, feed mill equipment, and at the farm level. He will also present some of the latest techniques and practices in Europe and Australia. More details: www.asian-agribiz.com/pdf/BroFeedQC16_web.pdf


Greenfields Indonesia in expansion mode
[1 July 2016]
PT Greenfields Indonesia, the dairy division of Singapore-listed Japfa Ltd, is currently setting up its second dairy cattle farm and a new milk processing plant in Blitar, East Java with investments of USD 38 million and USD 15 million, respectively. Darmanto Setyawan, Head of Milk Processing said the farm will have a capacity of 10,000 heads of dairy cattle, while the milk plant will be able to process 240,000 litres of milk per day. The company targets the milk plant to start operations this year. Meanwhile, “the farm will be operational in the next two years since we have to import the dairy cattle first,” said Mr Setyawan. With the addition of the new milk plant, the company targets the production of its milk products this year to increase to 40,000 tonnes. The company produces different ranges of milk products including fresh milk, pasteurised milk, UHT milk and cheese. Greenfields currently operates an 8000-head dairy cattle farm and a 120,000-litre/day milk processing plant in Malang, East Java.
AI virus detected in Macau’s Iao Hon market
[1 July 2016]
Sales in Macau of live poultry have been halted after a test sample recently showed avian influenza (AI) virus was detected in a local market, the China’s Special Administrative Region government announced. To protect public safety and minimise the risk of the virus spreading, the government has culled more than 9000 birds at the wholesale market in Macau. The action was conducted shortly after an environmental sample from a live poultry stall at the Iao Hon Market tested positive for the virus - an H7 subtype. Measures taken included suspending until further notice imports from the farm on the Mainland suspected of being linked on this occasion to the virus plus a thorough cleaning and sterilisation of Macau’s wholesale market for poultry, and of all stalls in local wet markets offering live poultry for sale.
Black tiger shrimp prices rising due to lower supply
[1 July 2016]
The offer price for farmed black tiger shrimp in India has been inching up due to decreasing supply across Asia. Production has been shifted to intensively-farmed products such as vannamei shrimp, which has a higher production efficiency. Moreover, strong demand for black tiger in China and the US has pushed up prices. The local offer price at the beginning of June in Kolkata for black tiger was around USD 12.3-12.5/kg, for size 16-20 shrimp. When the harvesting began from April, prices have slowly been rising. According to a Japanese trading company source, the supply of intensively-farmed Indian black tiger is likely to fall to about 10,000-22,000 tonnes. As supply is low, local producers “are in no hurry to sell”, said the source. Production of black tiger is also said to be down in Indonesia and Vietnam.

Indonesian govt prepares more frozen beef and cattle ahead of Ied Fitr
[1 July 2016]
Indonesia’s Minister of Agriculture Amran Sulaiman said the government has arranged 8110 tonnes of additional frozen beef and 1000 heads of cattle to meet consumers’ needs in Greater Jakarta during Ied Fitr festival. Mr Sulaiman added that together with 10 beef importers, the ministry is set to expand the current 3800 distribution points for cheap beef to areas across Indonesia. “With the measures, we are optimistic to slash beef prices to below USD 6/kg.” Ten beef importers involved in beef market operations include Agro Boga Utama, Indoguna Top, Aesthetics Tata Tiara, Bumi Maestro Ayu, Suri Nusantara Jaya, Anzindo National Gratia, Berkat Mandiri Prima, Bina Mentari Tunggal, Tita Jaya Beef and Artha Graha Peduli with a total of 6460 tonnes of beef and 1000 heads of cattle.
China’s Nine-Alliance exports chicken to Hong Kong from Guangxi facility
[30 June 2016]
Qingdao Nine-Alliance Group, a leading poultry processor and exporter based in east China’s Shandong province, said its Qinzhou unit shipped 27 tonnes of frozen chicken breast valued at USD 41,900 to Hong Kong in June, making it the first frozen poultry export from the southern Guangxi region. “More shipments to Hong Kong and Cambodia are under preparation,” the company said, adding that the Guangxi facility has also got export checks from the Malaysian authorities. Nine-Alliance launched the USD 300 million Qinzhou complex in May 2015 as the company shifted investment focus to south China. Earlier last year, it set up two poultry farming and processing joint ventures in Guangdong province.
Philippines opens market for processed pork from Italy
[30 June 2016]
The Philippine Department of Agriculture (DA) has awarded a system accreditation to the government of Italy that allows Italian meat processors to export processed pork meat to the Philippines. The accreditation was awarded after DA officials inspected and audited representative meat establishments from Italy and were found to comply with Philippine quarantine and meat-inspection systems procedures. The accreditation is valid for three years.

Indian food market to benefit from FDI overhaul
[30 June 2016]
India’s decision to overhaul its foreign direct investments (FDI) rules for food products manufactured in India would help home-grown players in the food processing and e-commerce sectors gain access to foreign funds, said industry experts. “I think it will help both foreign and Indian companies doing e-marketing to access foreign funds and help in promoting food products manufactured in India. I expect some specialised e-market platforms dealing only in agri- and food products might also come up with FDI,” said Gokul Patnaik, Global AgriSystem Private Limited. Biju Kurien, member of the advisory board at L Capital and former CEO at Reliance Retail, said foreign retailers would find it attractive to invest in Indian food retail.
Indonesia’s seafood products gain ground in China
[30 June 2016]
Indonesian seafood products recorded transactions worth USD 3.7 million at the 3rd China International Aquatic Products Exposition (CIAPE) in Zhanjiang, China in June, according to Dandy Iswara, Trade Attache at the Indonesian Embassy in Beijing. “Frozen vannamei shrimp, squid, skipjack and tuna are in demand among the Chinese importers and distributors,” he said. According to data from the Chinese Customs Office, exports of seafood products from Indonesia to the country reached USD 112.3 million in April, an increase of 46.5% from the same period of last year. Indonesia’s seafood exports to China include shrimps, squids, lobsters and fish – of these, squid is the most exported product with a value of USD 37.6 million.
Indian poultry farmers concern about feed ingredient prices
[30 June 2016]
Egg prices in India jumped as poultry farmers reared fewer birds after incurring losses in the past two years. However, poultry farmers are worried that this may only be a flash in the pan as prices of eggs would revert again in July but the feed ingredients will remain higher till the arrival of next crop, which is only after October-November. Dinesh Bhosale, Vice President of Poultry Federation of India said: “Maize is the major ingredient in poultry feed and constitutes 50-60% of all the inputs so an increase from an average USD 0.20/kg in April to USD 0.25 in June has put the poultry sector in stress. The delay in monsoon by almost three weeks has added speculation in the commodity prices and any further delay may splurge price pushing up costs of farmers.”

Impact of feed enzymes & probiotics on broiler’s gut health
[29 June 2016]
At Asian Agribiz Broiler Feed Quality Conference in Bangkok, Thailand on August 18-19, Dr Milan Hruby, Global Applications Senior Manager, DuPont Industrial Biosciences, Danisco Animal Nutrition USA will discuss that probiotics and enzyme technologies have shown complementary effects on nutrient digestibility and growth performance in broilers, which seem to be more evident in conditions of enteric disease challenge. Those effects may be explained by the direct effects of probiotics on intestinal health, which can create the correct environment for enzymes to increase the absorption of nutrients. Additionally, there is evidence of complementarity between probiotics and carbohydrase and protease enzymes on the digestion of fibre, which could imply both an increase of the digestion and absorption of energy yielding nutrients from the diet and possibly release prebiotic oligosaccharides. More details: www.asian-agribiz.com/pdf/BroFeedQC16_web.pdf
CP China non-feed business to exceed 50% in 2016
[29 June 2016]
Xie Yi, Senior Vice Chairman of Agro-industry & Food Business at CP China, said the group’s non-feed business is expected to surpass its feed operations in terms of revenue this year. In 2015, the group generated revenue of about USD 7.56 billion, with non-feed business accounting for 40-50%. “We now invest most in downstream farming and food businesses and several big such projects are under construction,” Mr Xie said. According to him, CP China has also ventured into rice and corn planting, as it is seeking to provide more ready-to-eat products besides of meat, in line with its vision to become a world kitchen.
Abrupt herd expansion in China could lead to low quality pigs
[29 June 2016]
In the rush to meet increasing demand from China, many pig farmers in Vietnam are expanding their herds, but not all is good news. Data from the Ministry of Agriculture and Rural Development showed that the country’s pig production in the first half of this year was up 25-30% from a year ago, fueled by higher purchases by China. However, Tran Hong Ha, Director of Alpha Livestock JSC said farms are expanding too quickly and spontaneously, without much regards for quality and efficiency, and this could backfire when the Chinese pig traders stop buying the animals which are not preferred by the local market.

Fresh chilled meat demand drives online meat sales in India
[29 June 2016]
According to India’s online meat-selling firm Licious, the demand for fresh chilled meat and the lack of quality options in the traditional ‘seller-centric market’ largely drive the online meat selling market in India. Increase in protein intake, preference of fresh chilled meat over frozen, and the lack of hygiene in the traditional meat markets have given rise to this form of business, which has better supply chain management and technological intervention than the offline options. Started last August by Abhay Hanjura and Vivek Gupta, Bengaluru-based Licious offers five broad product categories namely fresh chicken, lamb, seafood, marinades and cold-cuts. It generates 15,000 orders per month with an average order value of USD 9 and intends to increase the orders to 100,000 by October this year.
Indonesia’s import-oriented policies on beef may harm local farmers
[29 June 2016]
Indonesia’s State Logistics Agency (Bulog) said beef prices in the country are unlikely to be reduced by import-oriented policies which in turn harm local cattle farmers rather than helping consumers. “If you force the local beef price to USD 6/kg, you will sacrifice the local cattle farmers, we don’t want this happens,” said Djarot Kusumayakti, Bulog President Director during a meeting with the House of Representatives. Currently, the price of beef is set without specifying the source or the type of beef with the government wanting only to reduce the beef price to USD 6/kg through imports while local beef costs at least USD 6.7/kg.
China’s Yongda Food starts chicken exports to Mongolia
[28 June 2016]
Chinese poultry integrator Hennan Yongda Food Group said it has started chicken exports to Mongolia, with the first shipment of 20 tonnes arriving at Ulaanbaatar on June 21. Yongda, which has a slaughtering capacity of about 150 million birds a year, won in March the export permit for an annual quota of 6000 tonnes. Last year, the company exported more than 17,000 tonnes of chicken products to 13 countries including South Africa, Japan and South Korea. “Exporting to Mongolia is an important step for our global strategy. It may pave the way for our market expansion to Central Asia and Europe,” Chairman Feng Yongshan said.

GFN: global poultry oversupply hurts chicken export prices
[28 June 2016]
Global poultry oversupply is currently outweighing demand, sending chicken export prices lower, said Jessada Sirimongkolkasem, President of GFPT Nichirei (Thailand) Company Limited (GFN), as quoted by Prachachat. Mr Jessada said GFN’s chicken export prices are falling 5-10% due to oversupply problems. Meanwhile, GFN expects its sales growth of 3-4% this year, he said. The company posted sales of USD 226.61 million last year, 65% of its sales came from export. At the moment, GFN has a production capacity of 90,000 tonnes a year – 40,000 tonnes for export markets and the rest for domestic markets. GFN is a JV between Japan’s Nichirei Foods Inc and Thailand’s GFPT.
CP Vietnam continues efforts against banned substances
[28 June 2016]
CP Vietnam Corp (CPV) has turned over the second batch of rapid test kits for banned substances like salbutamol and clenbuterol to Vietnam’s Ministry of Agriculture and Rural Development (MARD), bringing to 14,000 the total kits it has donated so far. The test kits are part of CPV’s efforts to cooperate with MARD to help the country develop a safe and efficient livestock industry, said Vu Anh Tuan, CPV Deputy General Director. CPV is the first company in Vietnam to terminate contracts with pig farms using the prohibited substances.
Cargill Indonesia to launch feeds for goat
[28 June 2016]
Cargill Feed and Nutrition Indonesia plans to launch feeds for goat next year. “We will launch ‘Big Goat’ feed for fattening and ‘Lacto Goat’ feed for dairy goat,” Insanto Endro Bawono, Swine & Ruminant Business Development Manager told Asian Agribiz. “We received many requests from goat farmers in Central and East Java. We only target to sell hundreds of tonnes per month for the feeds since it’s a niche market. However, we see that the market continues to grow,” said Mr Bawono. Based on the Ministry of Agriculture data, goat population in the country reached 18.8 million heads in 2015, an increase from 18.6 million heads in 2014.

India’s AP government to invest USD85m to promote poultry industry
[28 June 2016]
With an eye on becoming the biggest egg and poultry meat producing state in India, the Andhra Pradesh (AP) government has announced the Poultry Development Policy and also has planned an investment of around USD 85 million over a period of the next four years in the state. The investment will lead to additional revenue generation of USD 997 million in the next four years. As part of its efforts to promote the poultry industry, the state government is planning to support establishment of egg collection centres, egg processing units and chicken processing units in public-private partnership mode in cities such as Chittoor, Vijayawada and Visakhapatnam.
Malindo to set up sixth feedmill in Lampung
[27 June 2016]
Malindo Feedmill, one of the largest poultry integrators in Indonesia, plans to set up its sixth poultry feedmill in Lampung province this year. For this project, Rudy Hartono Husin, Finance Director told Asian Agribiz that the company will allocate around USD 15-22 million. The new feedmill will have an installed capacity of 150,000 tonnes per year and is targeted for operational in the second half of 2017, said Rewin Hanrahan, Director. “With the addition of the 6th feedmill, our total installed feed production capacity will be around 1.8 million tonnes per year,” Mr Hanrahan told Asian Agribiz. Currently Malindo operates five feedmills located in Cakung, East Jakarta; Cikande, Banten; Gresik, East Java; Grobogan, Central Java; and Makassar, South Sulawesi. These feedmills have a combined installed capacity of 1.65 million tonnes per year.
Hog prices pick up in the Philippines
[27 June 2016]
Farm prices of hogs have picked up as demand for pork has begun rising with the start of the new school year, although supply has not kept pace, Philippine Pork Producers Federation (Propork) President Edwin Chen told Asian Agribiz. Mr Chen also said that the hot summer season that resulted from the El Niño adversely affected pig growth, but added that “since the start of the rainy season, we saw the steady increase in the growth rate of fatteners.” However, producers are also keeping tabs on the coming La Niña phenomenon, which could bring in heavier rains and flooding. Until that time, however, Mr Chen said live prices of hogs are “projected to increase weekly.”
First shipment of India’s carabeef to arrive in Jakarta in July
[27 June 2016]
Indonesia will import 10,000 tonnes of carabeef (buffalo meat) from India for the first time in an attempt to reduce soaring beef prices and to wean the country off its dependency on Australian meat imports. The government, which has imported beef from Australia and New Zealand for years, has been scrambling to curb persistently high beef prices. “Currently, we are in the final stages of the selection process. We expect the carabeef from India to arrive in Tanjung Priok Port in North Jakarta from July 20 to July 25,” said Wahyu, Procurement Director of State Logistics Agency (Bulog), which has been tasked with managing the importation. Bulog is currently selecting 10 slaughterhouses located in foot and mouth disease free zones in India, based on recommendations by the Agriculture Ministry. The selection process includes disease-free verification.
Suprieya Foods moves to semi-automated poultry processing
[27 June 2016]
India is one of the fastest growing markets for industrial poultry processing. Suprieya Foods based in Coimbatore, Tamil Nadu state used to deliver live broilers to the wet market, but the company has now taken a big step by integrating the entire slaughter process in its activities and by automating primary processing operations with Marel’s Stork equipment and knowledge. Its completely new processing plant has an hourly capacity of 4000 broilers and uses an overhead conveyor to transport broilers through the whole process. “It is a real challenge to enter the processing business as a newcomer like we did. There are a lot more to it than just installing machines,” said CV Subramaniam, Managing Director of Suprieya Foods.
Chitwan is Nepal’s poultry industry centre
[27 June 2016]
Nepal’s poultry industry, which is centred in Chitwan district, has an annual turnover of USD 310 million, according to the Central Bureau of Statistics (CBS). A survey conducted in 2014-15 shows that Chitwan is the largest producer of poultry products in the country with an annual turnover of USD 94 million. Chitwan produces USD 18 million worth of chickens and USD 54 million worth of eggs. Badri Karki, CBS Director said since 2003, a large number of people have become engaged in commercial poultry farming, especially in Chitwan. There are 1365 broiler and 502 layer farms in Chitwan. These farms rear 9.98 million chickens and produce 12,091 tonnes of meat annually. The industry directly employs 6868 people in Chitwan.
Predicting broiler performance through NIR
[24 June 2016]
Dr Usama Aftab, Regional Technical Director of AB Vista Feed Ingredients will introduce an NIR-enabled model which can rapidly predict the energy content of corn and other feedstuffs on a routine basis, and is highly correlated with broiler performance, at Asian Agribiz Broiler Feed Quality Conference in Bangkok, Thailand on August 18-19. Dietary energy is the major cost in broiler diets, however, measuring the energy content of corn, the main source of energy, by conventional laboratory methods is time-consuming and not routinely done. More details www.asian-agribiz.com/pdf/BroFeedQC16_web.pdf
Thailand’s pork exports to reach 17kt
[24 June 2016]
Thailand’s pork exports are expected to reach 17,000 tonnes this year, up from 16,558 tonnes last year, Boonpeng Santiwattanatam, President of Thai Swine Producers and Processors for Exporting Association told Asian Agribiz. Cooked pork exports will increase to 15,500 tonnes this year, while raw pork exports will grow to 1500 tonnes, he said. In value, Thailand pork exports will be USD 94.16 million this year, up from USD 91.72 million last year. Japan has been Thailand’s largest pork export destination – with a total of 14,734 tonnes of cooked pork exported to the East Asian country last year. “We are negotiating with the Singapore government. We aim to export more pork products to Singapore,” Mr Boonpeng said. Meanwhile, around 95% of pork produced in Thailand is consumed domestically.
China’s pork imports in 2016 seen at 1.2mt
[24 June 2016]
China’s pork imports (excluding pork offal) are expected to hit 1.2 million tonnes this year, up from 0.78 million in 2015, as more pork processors are turning to cheaper raw meat overseas, said Chinese agricultural consulting firm Bric Data. “Processors are under cost pressure since the local hog prices have been growing, while the prices of processed products maintain stable,” the consultancy said. Data from China Customs show that in the first five months of 2016, the nation’s pork imports totaled 0.57 million tonnes, up 120% from a year earlier. In May alone, the imports soared 202% year-on-year to 0.16 million tonnes. Bric Data said the June imports are likely to climb further to a record 0.18 million tonnes.
Feed industry’s demand increases Indonesia’s wheat imports
[24 June 2016]
Indonesia’s wheat imports could climb 35% to a record 10 million tonnes this year to replace corn for use as animal feed amid limited domestic supply, according to an industry group. “Wheat imports are increasing because of the animal feed industry. They can’t import corn,” said Franciscus Welirang, Chairman of the Indonesian Flour Producers Association (Aptindo). “Around 80% of the wheat that Indonesia will import this year will be used to produce flour, and the remainder will be used by feedmills,” he added. In the first quarter of this year Indonesia imported 2.9 million tonnes of wheat, about 500,000 tonnes of which went to feedmills, Mr Welirang said. Indonesia imports wheat from Australia, the US and Canada.
Rhone Ma intends to offer 42 million shares for IPO
[24 June 2016]
Malaysia’s Rhone Ma Holdings Bhd, supplier of animal health solution and food ingredients, intends to offer 42.12 million shares of USD 0.12 each for its initial public offer on Bursa Malaysia. In terms of capex, Rhone Ma intends to build a GMP-compliant plant. The total estimated cost of construction including cost of furnishing and fitting is about USD 3.22 million. “We are currently in the designing stage and construction is expected to commence in Q2 of 2017, subject to obtaining approval from the relevant authorities. The construction of the plant is estimated to be completed within 18 months from the commencement date of the construction,” the company said.
Foreigners can now own 100% stake in food retail in India
[24 June 2016]
India announced fresh liberalisation of FDI rules by opening food retail to higher overseas flows. An article in Business Standard said this will make it easier for retail outlets to set up food manufacturing and food-only retail bases in India. “Companies like Walmart and Tesco may look to embrace this new policy through a special purpose legal entity for trading in specific product category,” said Amarjeet Singh, partner–tax, KPMG in India. Until now, there were restrictions on multi-brand retailing, though 51% in single brand retail and 100% FDI in the cash-and-carry or wholesale business were permitted.
Wheat is first substitution choice for Indonesian millers over limited corn supply
[23 June 2016]
In the first quarter of this year Indonesia imported 2.9 million tonnes of wheat, about 500,000 tonnes of which went to feedmills, according to the Indonesian Flour Producers Association (Aptindo). Desianto Budi Utomo, Secretary General of the Indonesian Feed Producers Association (APPI) told Asian Agribiz that wheat is the first option to substitute the use of corn when its supply cannot meet demand from feed millers. Previously APPI members use corn of around 50-55% in their poultry feed formulations. However, with the limited supply of corn, the use is reduced to 35%. “The remainder 15-20% is substituted with wheat. We do this to prevent a drastic change in our feed formulations,” said Mr Utomo. As the consequence of using wheat, feed millers have to invest in enzymes to better utilise the cereal grain, which means an additional cost for the feed millers.
Cargill Vietnam targets 1.7 mt of feed by 2017
[23 June 2016]
Cargill’s feed and nutrition business in Vietnam hopes to produce about 1.7 million tonnes of feed in total production capacity by end next year. Its 12th feedmill in the country, located at Binh Duong, is expected to be completed in the second half of 2017. “The USD 30 million facility will have a total capacity of 260,000 tonnes per year,” Jorge Becerra, Country Representative and Managing Director told Asian Agribiz. In May Cargill opened its 11th feedmill in Nghe An, Vietnam. The USD 8.5 million plant has one production line for livestock feed and a total capacity of 66,000 tonnes per year. It has the ability to produce a full portfolio of products for all phases for pig and poultry production.
China declares Shandong Peninsula as first bird flu free zone
[23 June 2016]
China’s Ministry of Agriculture said the Shandong Peninsula in east China has been accepted by the ministry as a highly pathogenic avian influenza (HPAI) free zone, the first of its kind in the country. The Peninsula, which is comprised of cities of Qingdao, Yantai, Weihai and Weifang, was also declared as a foot-and-mouth disease free zone. The free zone is home to major Chinese poultry exporters whose shipments account for more than 40% of the country’s total, according to the local government.
Vemag sees business opportunities in meatball in Asia
[23 June 2016]
Allan Tibble, International Sales Manager of Vemag told Asian Agribiz during ProPak Asia 2016 in Bangkok, Thailand that convenience food is growing in Asia and demand is getting stronger. “At the moment, we see business development and opportunities in the meatball market here in Asia,” he said. According to Mr Tibble, the equipment that customers are now using is old and slow and not very accurate. “Our machine has a very high output and deliver consistent shape and weight control,” he said. Vemag’s Ball Control 236 is a machine for the manufacture of convenience products such as meatballs, fish balls and other products. “For this type of machine, I see strong demand in Thailand and Indonesia,” he added.
First shipment of Australian cattle arrives in Cambodia
[23 June 2016]
Cambodia received its first shipment of 2766 heads of cattle from Australia last week. Phnom Penh and Canberra finalised health protocols two years ago, reported Cambodia Daily. The cattle was transported to SLN Meat Supplies facilities within three hours, said Hor Sim Leang, SLN Managing Director. The cattle, each weighing 370-600 kg, and costing up to USD 1900, are expected to fetch USD 10-20 per kg once slaughtered, about 40% cheaper than imported frozen beef, he said. Following the initial shipment, a second delivery of nearly 2000 cattle mid-July will mark the beginning of up to four deliveries per month, he added.
Phytogenics market to be worth USD770m by 2021
[23 June 2016]
The global feed phytogenics market is projected to reach USD 769.5 million by 2021, growing at a CAGR of 7.1% from 2016 to 2021. One of the main reasons for its growth is its role as a substitute to antibiotic growth promoters, said new report from Market and Markets. The poultry segment accounted for the largest share of the global market in 2015. Significant growth for feed phytogenics is observed in the Asia Pacific region. Emerging countries in the region with increasing number of livestock and efficient management of feed operating cost are factors pushing the demand for nutritive feed and sustainable animal nutrition products.
Early nutrition strategies for peak performance in broiler chickens
[22 June 2016]
The production cycle of broilers has been reduced to such an extent that the starter phase represents more than a quarter of the cycle, poor feeding at this time can have a significant negative impact on the final weight of birds. Dr Paul Iji, Professor of Animal Science, University of New England, Australia will present two papers at the Asian Agribiz Broiler Feed Quality Conference, on August 18-19, in Bangkok, Thailand. These will consider using otherwise cost-prohibitive feed additives - spray dried plasma and processed vegetable protein that may improve health and performance during the first week. More details www.asian-agribiz.com/pdf/BroFeedQC16_web.pdf
Ningbo Tech-bank to set up 14 subsidiaries for pig farming
[22 June 2016]
Ningbo Tech-bank Co, an aqua feed and vaccine producer as well as pork integrator based in east China, said it is setting up 14 subsidiaries to expand its pig farming operations nationwide. The subsidiaries will be located in eastern provinces of Jiangsu, Anhui and Shandong, northern provinces of Shanxi and Hebei, and Guangxi in the south. In January, Tech-bank said it targets to produce 30 million pigs by 2025, up from 0.28 million pigs in 2015 and a goal of 1 million heads this year. The company is seeking to raise USD 225 million via a private placement to fund the expansion plan.
Thai livestock associations insist feed ingredients imports are necessary
[22 June 2016]
The Thailand Federation of Livestock and Aquaculture, which consists of 11 associations, said corn-based distillers dried grains with solubles (corn DDGS) and wheat imports are necessary because there is not enough local output to address growing demand for feed. The National Farmers Council recently asked the Commerce Ministry to strictly control the import of corn DDGS and wheat, saying the import negatively affects local raw material prices such as corn and cassava, as well as hurts local farmers. However, Pornsil Patchrintanakul, President of Thai Feed Mills Association said that corn production in Thailand is around 4.5-4.6 million tonnes a year but the livestock industry needs around 7.8-7.9 million tonnes of corn a year. “Demand of raw materials for feed grew at an average rate of 7.2% during the past 10 years, but the growth of local raw materials such as corn is not keeping pace with growing demand,” he said.
Australia suspends cattle trade to three abattoirs in Vietnam
[22 June 2016] The Australian government has suspended trade to three abattoirs in Vietnam after footage emerged of workers killing what appear to be Australian cows with sledgehammers. Australia exports live cattle to Vietnam – its second-biggest customer – on the condition that cattle are transported to approved abattoirs. The New Daily said the footage suggests some Australian cattle are instead being transported to brutal, unapproved slaughterhouses. The Vietnamese workers who were secretly filmed reportedly told Animals Australia the cattle were from Australia, and notches on their ears reportedly matched Australian animals.
No EMS outbreak in India
[22 June 2016]
Scientists from India confirmed there was no outbreak of acute hepatopancreatic necrosis, also known as early mortality syndrome (EMS), in the country. At a recently-held workshop organised by the ICAR-Central Institute of Brackishwater Aquaculture (Ciba) aimed at creating awareness among shrimp farmers on the disease, scientists explained that the disease spreads because of poor quality water used in farming. India exports seafood worth USD 4.4 billion, of which 70% are shrimp. In 2009 where China first reported the outbreak of the disease, panic spread among Indian shrimp farmers as the species had just been introduced in the country. “Until now, India is free of the pathogen that causes the disease,” said KK Vijayan, Ciba Director.
Unitherm to open innovation centre in Bangkok
[22 June 2016]
Barry Hansell, Sales Director of Asia Pacific at Unitherm Asia told Asian Agribiz at ProPak Asia 2016 in Bangkok, Thailand that Asia is an extremely large growth potential for Unitherm due to rising middle class and growing demand for high quality foods. “We are opening an innovation centre in Bangkok, Thailand in the middle of July and it will provide sales and service backup to our local agents,” Mr Hansell said. The centre will contain its full range of equipment. “Bangkok was selected because we consider it as the most central position within the region,” he added. Unitherm is a US-based company that supplies ranges of thermal processing systems including oven and chilling, pasteurizing and smoking processors to the food industry.
Daesang takes over Duc Viet Food to expand its market to SE Asia
[21 June 2016]
Daesang Corporation, a leading food producer in South Korea, is taking over a Vietnamese meat processing company to target the refrigerated ham market in Southeast Asia. The company recently announced that it signed an agreement with Duc Viet Food Joint Stock Company, a processed meat producer in Vietnam, to acquire its shares for USD 31.97 million. It will secure 13 million shares, or 99.99%, of Duc Viet Food by August. With the latest contract, Daesang plans to expand its market to Southeast Asia, including Thailand, Cambodia and Indonesia, based on the Vietnamese market. In the long term, the company will strengthen the competitiveness in processing meat through Duc Viet Food and target the domestic refrigerated ham market in earnest.
CP Indonesia welcomes Salim Group
[21 June 2016]
Salim Group’s decision to enter the poultry business in Indonesia in a bid to expand has yet to deter poultry giant Charoen Pokphand Indonesia, which holds a 34% market share. CP Indonesia voiced optimism that its parent company, Charoen Pokphand Group, will support the company, especially in term of technology. “We have not prepared any special strategy to anticipate their entrance into the market. We welcome newcomers in the competition,” said Tjiu Thomas Effendy, President Director of CP Indonesia. In December last year, Salim Group purchased a controlling stake in Malaysia-based poultry company CAB Cakaran, and together will form a joint venture in Indonesia this year. This opens the door for Salim, as the big player in the food industry, to enter, especially as Salim owns 35.8% of Fast Food Indonesia, the licensee for KFC in Indonesia.
China’s Foresun to set up Spain unit for beef business M&A
[21 June 2016]
Chinese beef supplier Foresun Group said it is building a platform for mergers & acquisitions (M&A) of overseas beef operations, by setting up a wholly-owned unit in Spain. The unit will have a registered capital of USD 6 million. In April, Foresun agreed to buy three beef slaughterhouses and a livestock confinement unit in Argentina from Brazilian meatpacker Mafrig Global Foods SA for USD 75 million. Foresun, headquartered in Qiqihar in north-eastern Heilongjiang province, is seeking a backdoor listing via Shenzhen-listed motorbike manufacturer Sundiro Holding.
Seydelmann says Asia is a growing market
[21 June 2016]
Steffen Kromer, Sales Manager of Seydelmann told Asian Agribiz at ProPak Asia 2016 in Bangkok that the company is active in Asia and it has a wide range of machines, including cutters, mixers, grinders, emulsifiers and other production lines. “We have a lot of projects in Asia, such as for sausage, nugget and pet food productions. Seydelmann can deliver machines for smaller capacities, mid-size and big customers,” Mr Kromer said, adding that the big customers want complete production lines and everything is fully automatic. More companies will go for automation, to save labour costs. “Asia is a growing market for us,” he added.
Pioneerindo targets 15% business growth
[21 June 2016]
Indonesia’s Pioneerindo Gourmet International, the operator of California Fried Chicken (CFC), targets its business to grow by 15% this year with sales of USD 35 million. Teh Kian Kun, Director said the QSR chain is optimistic the target is achievable since in Q1 it recorded a 21.7% sales growth to USD 6.7 million compared with the same period of last year, driven by the increasing sales of its ‘Paket Hemat’ menu. Mr Kun noted that the price of raw material (chicken meat) increased 10% in Q1. “However, our sales also increased,” he said.
Fujian Sunner imports broiler GP from Spain
[20 June 2016]
Fujian Sunner Development Co said it imported 31,450 sets of broiler GP from Spain in June, the first introduction by China’s largest broiler integrator in half a year after the nation banned US and French breeders last year. “We had 10 GP farms with a combined stock of 216,000 sets at the end of 2015, and the breeds were Ross and Cobb from the US,” Chen Zhihong, Deputy Director of Media Office told Asian Agribiz. China imported only 24,200 sets of broiler GP from New Zealand in Q1 due to the ban, compared with an annual introduction of 1.54 million sets at the peak in 2013.
New shrimp feed plant inaugurated in Andhra Pradesh
[21 June 2016]
Prathipati Pulla Rao, Agriculture Minister of India’s Andhra Pradesh recently inaugurated a shrimp feed plant for BMR Industries at Damavaram village, Andhra Pradesh. The feed plant was set up at a cost of USD 19 million. Mr Rao said the feed plant will be very much helpful to meet the growing requirements of aquaculture in the region. “There are about 39,000 aqua farmers who have been actively involved in the sector making large contributions to its growth,” he said.
San Miguel on USD1.1b expansion
[20 June 2016]
The Philippines’ San Miguel Pure Foods Co Inc (SMPFCI) is expected to finish a USD 1.1 billion expansion that will boost its feed milling, food business and flour business units over the next five years. A report by the Philippine Daily Inquirer said the company is adding seven feed plants, each with a capacity of 500 million tonnes, although San Miguel Corp President Ramon Ang said that even with this increased capacity, SMPFCI would still only capture about 37% of the market. The company is also expanding capacity for its processed meats products, its poultry dressing plant, and its ready-to-eat chicken and pork businesses, as well as its poultry and piggery operations.
Fast Food Indonesia to open 30 new KFC outlets
[20 June 2016]
Fast Food Indonesia, the operator of the QSR chain Kentucky Fried Chicken (KFC) in Indonesia, has said that this year it only plans to open 30 new regular outlets since it will focus more on KFC Box (outlet with a free standing & take-away concept). Justinus Juwono, Director said the company will open five more KFC Boxes this year. “KFC Box only costs a third of the investment for a regular outlet of USD 336,000”, he said. As of now, Fast Food has opened eight KFC Boxes in Greater Jakarta. The company has had successful trials with the KFC Box concept since last year.
Inotec sees strong demand for its complete processing lines
[20 June 2016]
Inotec is a Germany-based company that manufactures a complete range of processing equipment, emulsifiers and sausage separators. “We installed one of the biggest lines for chicken sausage in Thailand last year and we see the move in Thailand for more and more complete processing lines,” Adrien Dessert, Managing Director of Inotec told Asian Agribiz. Inotec has at least 3-4 projects of complete sausage processing lines in Thailand and it has also similar projects in Indonesia and Philippines, he said. “We offer unique processing lines concept based on vacuum emulsifier because we are the global leader in vacuum emulsifier,” Mr Dessert said, adding that its machine also performs specific mixing actions, where companies can produce cheese hot dogs.
Bisi International to increase corn seed sales
[20 June 2016]
Indonesia’s Bisi International, a crop seeds producing company owned by Thailand’s Jiaravanon family who controls the majority stake of Charoen Pokphand Indonesia, this year targets its corn seed (Bisi-18 variety) sales to increase 77% to 100,000 tonnes over last year, motivated by Indonesia’s corn self-sufficiency program. Jemmy Eka Putra, President Director said to reach the target the company will extend it partnership with corn farmers from 19,100ha last year to 30,000ha this year. “We will also try to integrate corn farming with palm plantation,” he said. Of its Q1 2016 financial performance, corn seed sales was USD 8 million.
India learns from UK to develop its pork industry
[20 June 2016]
India’s senior Punjabi government officials have visited UK pork factories to develop production methods, with India braced for a surge in meat demand. The delegation visited pig breeding firms, a feedmill, an abattoir and the headquarters of UK levy board AHDB Pork, driven by India’s aims to boost its booming pork sector. The Indian team were interested in pig genetics, breeding techniques, animal welfare and the economics underpinning the UK pork sector. “They [India] are seeking our pig genetics and management systems as they want to improve productivity, welfare and product quality,” said Jonathan Eckley, AHDB Pork Senior Export Manager as quoted by Globalmeatnews.
Can feeding the broiler breeder improve chick quality and offspring performance?
[17 June 2016]
Studies on the direct effects of breeder nutrition on subsequent chick quality and offspring performance are limited. Alex Chang, Aviagen, Poultry Nutritionist, Global Technical Operations will review the nutritional factors in broiler breeders that may improve chick quality and progeny performance at the Asian Agribiz 2016 Broiler Feed Quality Conference in Bangkok this August . Recent research has suggested that the feeding of low crude protein and medium to high energy breeder diets in both rearing and laying period will not only have a positive impact on egg production, egg size, breeder fertility, hatchability and embryonic livability, but also on offspring performance. More information is available here.
Guangdong Wens to expand pig farming in southwest China
[17 June 2016]
Guangdong Wens Foodstuff Group is expanding pig farming aggressively in the mountainous Yunnan province, one of the two southwest regions identified by China’s Ministry of Agriculture as a potential area for pork production. Wens has signed a framework agreement with the Qujing municipal government in Yunnan to build eight pig complexes, targeting a combined annual output of 5 million heads. A 2 million-tonne feedmill as well as administrative and living quarters will also be built to support the contract farming. In April, Wens signed an agreement to start a 3 million-head pig farming project in Honghe, Yunnan.
Imported feed raw materials in Indonesia charged 10% VAT
[17 June 2016]
Indonesia’s Ministry of Finance recently raised the value added tax (VAT) of imported feed raw materials including corn, wheat and soybean meal to 10%. Sudirman FX, Chairman of the Indonesian Feed Producers Association (APPI), said feed millers will include the tax in their production cost. As a result, the price of feed, for instance broiler feed, will increase from USD 0.48 to USD 0.51 per kg. “This price increase will then increase the price of chicken and eggs,” said Mr Sudirman. He added that the association hopes the Ministry of Agriculture can discuss with the Ministry of Finance to remove the tax.

Onsite at ProPak Asia 2016, Bangkok, Thailand
[17 June 2016

Amidst slowing economy, producers eye Asian-made machines
The meat processing industry in Thailand had grown steadily in the past years, according to Aisoon Sirichainakhon, Managing Director of Erawan Union, a distributor of meat processing equipment. However, due to the slowing economy, limited local market volume and limited export market, the industry tends to be saturated, Mr Aisoon told Asian Agribiz. The slowing economy, he said, also impacts investment for automation in the industry. “Not so much investment this year, but the interest to reduce labour is high. So some companies are eyeing Asian-made machines from Thailand, China and Japan.”    

Trends in automation and ready meals in Thailand
Automation is set to become a common thing in Thailand since labour is getting more expensive and hard to find, according to Somsuda Sriwattananont, Sales Manager of Forefront Foodtech, a distributor of meat processing equipment. Ms Somsuda told Asian Agribiz that neighbouring countries like Myanmar and Cambodia now are opening up their markets for investments, “so they need their people to work in their countries.” On ready meals, Ms Somsuda sees more companies venturing into the ready meals sector. “CP Food, with its 7-Eleven stores, is leading this sector, but companies like S&P and Bangkok Ranch also eyeing potential,” she said.

Frey sees more projects in Myanmar and Cambodia
Germany-based filling technology specialist Frey Maschinenbau is happy with their sales in Thailand and Vietnam. Now the company is looking for potential markets in Myanmar and Cambodia. Heinrich Frey, Managing Director of Frey told Asian Agribiz that the first filling machine in Myanmar was from Frey and the machine has been working for 10 years now. Frey has also sold machines in Cambodia. “The markets there are still on small-scale sausage production. However, with more tourists, this market will grow,” said Mr Frey. He revealed that Frey's client in Cambodia plans for a big project for sausage production in response to the growing population, income, and western style sausages.

Siam Food focuses on small-medium scale customers
Although the Thai economy is slowing, Siam Food Consultant, a distributor of primary and secondary meat processing equipment, still has many projects. Thanchanok Sirisap, Managing Director told Asian Agribiz: “It’s because we focus on the small-medium scale players who produce for the local market.” Ms Thanchanok said the small-medium scale players are growing and they are increasing their production capacity, as well as their market reach to neighbouring countries like Cambodia and Laos. “We have a customer who sells frozen marinated pork and beef slices to Cambodia, Laos and Vietnam. The buyers are from the restaurant industry,” she said.

Automation and food safety key issues in food industry in Asia
“What’s important now for the food industry in Asia are food safety, automation and reproducibility,” Uwe Kessler, Sales Director of Handtmann told Asian Agribiz. Handtmann specialises in portioning, forming, linking and hanging equipment for the meat industry. Mr Kessler said that it will be more difficult for companies to get skilled labour and machines will take over some human jobs. “So what they need is automation, which always having the same product with the same quality and the same material and no human error,” he said. In Thailand, Mr Kessler also expects more automation because labour is becoming expensive and hard to find.

Lima sees big opportunities in Thailand
Roger America, International Sales Director of Lima, a France-based producer of meat-bone separators, deboners and desinewers, told Asian Agribiz that when it comes to further processing and special products, Thailand is the most developed country in this field in Asia. After cutting up the chicken, there is meat with sinew or some bone particles and Lima’s deboning and desinewing machines enable the production of high quality meat ideally textured for further processing. Mr America said companies in Thailand have big enough production and volume and it’s profitable for them to invest in the machine to upgrade output.

InVivo NSA Philippines to launch global brands
[16 June 2016]
After acquiring Popular Feedmill Corp, InVivo NSA Philippines plans to introduce its global brands to the Philippine market. Mathieu Guillaume, Senior Director Business, told Asian Agribiz they are targeting to launch the Evialis brand, which will cater to commercial hog, broiler and layer producers by the end of the year. Noting too that Popular is involved in the country’s backyard livestock sector, he said InVivo will “continue to provide support to this segment” and help these farmers to improve efficiencies and productivity.
Pioneerindo to open 40 new CFC outlets
[16 June 2016]
Indonesia’s Pioneerindo Gourmet International, the operator of California Fried Chicken (CFC), plans to set up 40 new outlets this year, consisting of 25 restaurants and 15 semi-satellite outlets. Teh Kian Kun, Director said these will be in Greater Jakarta, Central Java, Bali, Kalimantan and Sulawesi. The restaurant and a semi-satellite outlet will need investments of USD 75,000 and USD 19,000, respectively. Mr Kun said the company has also allocated USD 280,000 to renovate its 15 existing outlets. As of now, Pioneerindo has 49 CFC outlets throughout Indonesia.
Thaifoods Group to supply chicken meat to Thai Airways
[16 June 2016]
Thailand’s Thaifoods Group (TFG) will supply chicken meat to the catering department of Thai Airways International from July 1, 2016 – June 30, 2017, efinanceThai reported. “We are pushing deeper into the domestic market,” Cherdsak Kukiattinun, Chief Operating Officer of TFG said, adding that TFG’s chicken meat will be served on Thai Airways and other international airlines. Meanwhile, with relatively high pork prices in Thailand, TFG will increase its pig raising capacity to 55,000 pigs a month, from 45,000 currently.
Slow sales at chicken outlet causes drop in Berjaya Food earnings
[16 June 2016]
Malaysia’s Berjaya Food Bhd, which holds the worldwide franchise for Kenny Rogers Roasters franchise, reported its lowest quarterly earnings in three years in the fourth financial quarter ended April 30, 2016. Its bottom line figure dropped to USD 905,276 compared with USD 1.57 million in last year’s corresponding quarter, despite revenue growing by 7.9% to USD 34.01 million. The company attributed the drop to lower contributions from the roast chicken label’s operations in Malaysia. It said consumers were cautious following the introduction of the goods and service tax last year.
Controversy over Indonesia’s beef import quota
[16 June 2016]
Indonesia’s Evita Manunggal received approval from the Ministry of Trade to import 9000 tonnes of frozen beef to support the government’s target of bringing the price of beef down to USD 6/kg. However, Evita is in a bind as it has not got a recommendation from the Ministry of Agriculture. Thomas Sembiring, Chairman of the Indonesian Meat Importers Association (Aspidi) said Evita is a new player and not an Aspidi member. “The appointment raised questions as a criteria is that the importer should have its own cold storage facility and reefer trucks,” he said.
Broiler Feed Quality Conference Keynote Address - Toward optimal enteric health in broilers
[15 June 2016]
The conference keynote address 'Toward optimal enteric health in broilers' will be presented by Dr Aaron Cowieson, Principal Scientist, DSM Nutritional Products, Scotland and Adjunct Professor, Poultry Nutrition, University of Sydney Australia on 18 August at the Amari Watergate Hotel in Bangkok . He will discuss the impact of exogenous enzymes on gut health, and their role in digestive health, physiological health, microbiological health and immunological health. Dr Cowieson considers that as AGP removal becomes more commonplace, the role of feed enzymes in gut health will increase. For more info click here.
Indonesia’s Serena to produce sausages
[15 June 2016]
Indonesia’s meat processor Serena Harsa Utama which specialises in meatball production has said that it plans to venture into sausage production this year. Imam Basuki, Director told Asian Agribiz that it has bought a bowl cutter from K+G Wetter, a Handtmann’s vacuum filler and a smoke house system. “All the equipment cost around USD 113,000,” Mr Basuki said. “The equipment is now being installed and we target to start commercial production in the second half of this year,” he added. Once the sausage production proceeds well, the company also plans to produce nuggets, but this will be a separate project.
China’s Xilinguole area to introduce 100,000 Angus, Simmental cattle breeders
[15 June 2016]
The Xilinguole League in Inner Mongolia, a major pastoral area in north China, said it is planning to introduce 100,000 heads of Angus and Simmental cattle breeders in 2016-2018, in an effort to expand its cattle stock to more than 3 million heads by 2020, from 1.39 million in 2015. In a guideline to promote the cattle industry, the local government said it will also cut the stock of sheep, which stood at 13.86 million heads last year.
Nepal poultry farms rake in USD 314 million in annual turnover
[15 June 2016]
Commercially run poultry farms in Nepal recorded an annual turnover of USD 314.29 million, equivalent to 1.5% of the country’s economy, stated a HimalayanTimes article quoting a survey commissioned by the Central Bureau of Statistics. The sector’s gross value addition stands at USD 63.75 million a year. Poultry owners spent USD 250.54 million a year on feed, vaccine, day-old chicks and salary for employees, among others, against total earnings of USD 314.29 million. “Seventy six per cent of the farms are in profit and 80% of the farm owners are considering expanding their business,” noted the survey.
Native chicken feed sees potential in Indonesia
[15 June 2016]
According to Ade Zulkarnain, Chairman of the Indonesian Native Poultry Farmers Association, there is no special complete feed for native chicken. So big scale farmers and breeders of native chicken use broiler complete feed. “I hope there feed companies consider producing native chicken feed. The market potential is good since the number of native chicken farmers and breeders continues to increase,” Mr Zulkarnain told Asian Agribiz. Without calculating the supply of live birds from backyard farmers, the current production of native chicken from intensive farming in Indonesia is around 90 million birds, according to Mr Zulkarnain. If the average feed conversion is 2.5, the potential market of native chicken feed is around 225,000 tonnes/year.
Thailand's CFR to increase online meat sales
[14 June 2016]
Sopaphan Juyjaroen, Vice President of Perishable at Thailand's Central Food Retail (CFR) told Asian Agribiz that people are buying more meat products online and CFR is seeing online business opportunities.  CFR is now selling meat products in packs on its website (Tops Shop Online) such as minced pork, but it hasn't sold meat by weight online yet. Ms Sopaphan said CFR is looking for a mechanism to handle the price by weight issue. CFR plans to sell meat by the kilo on its website in the third quarter of this year. It also plans to add more product variety to its meat by weight sales.
Cargill Indonesia will launch new dairy cattle feeds
[14 June 2016]
Cargill Feed and Nutrition Indonesia plans to launch new dairy cattle feeds in the second half of this year. Insanto Endro Bawono, Swine & Ruminant Business Development Manager told Asian Agribiz that so far the company has been producing three feeds namely Lactoplus for lactating cows, Calf Starter for weaned calves and Lactomix Mitra, a basemix specially made for milk cooperatives. “To complete our offering for different phases of a dairy cattle life, we will launch three new feeds namely feeds for calf growers, heifers and cows in dry period,” said Mr Bawono. According to him, special feed for cows in dry period is important as they are vulnerable to negative energy balance, so good and balanced nutrition should be assured.
Yisai Beef in China plans for 200,000-cattle complex in Inner Mongolia
[14 June 2016]
Henan Yisai Beef (Stock) Co., a halal beef producer based in central China, will invest total USD 463 million to build a cattle complex in Kailu County, Inner Mongolia. According to the local government, the complex will include a 200,000-cattle slaughterhouse and a 100,000-tonne feedmill. Construction of both is scheduled to start in July and with operations due to commence a year later. Another 20,000-tonne further processing plant is expected be launched within five years when the slaughterhouse is running at full capacity.
India embraces decade of dairy
[14 June 2016]
India is embracing a 'decade of dairy' and the government has embarked on efforts to raise the current milk production that is estimated at 140 mmt/year and to 180mmt by 2021. "The government is trying hard to drive change in this sector and is providing both the training and tools to small farmers, but the uptake is slow because of resistance to change. This group that numbers in the millions, makes up the bulk of the suppliers," Consultant Dr P G Phalke told Asian Agribiz. However, he feels that change has to be driven by the private sector, and sees companies like Amul, Mother Dairy and Nestle empowering co-ops and medium sized farmers. This he says will be the turning point for the industry.
Imports will lower beef price in Indonesia
[14 June 2016]
With a target to reduce the price of beef in the market to USD 6/kg, Indonesia’s government has passed on the import quota to some state-owned enterprises. Rini Soemarmo, Minister of State-Owned Enterprises mentioned that Bulog, Berdikari and PD Dharma Jaya have got beef import quotas of 10,000 tonnes, 5000 tonnes and 500 tonnes, respectively. Beyond these figures, the government through Bulog also plans to import carabeef from India. Djarot Kusumayakti, Bulog President Director said imports from India will benefit end consumers since the price of carabeef is cheaper than imported beef from Australia. “Besides India, we also have options to import from Spain and New Zealand,” said Mr Kusumayakti.
Singapore bakkwa producer to roll out new marketing strategy
[13 June 2016]
Singapore-based barbecued meat (bakkwa) producer Bee Cheang Hiang hopes to roll out a creative marketing strategy to promote brand awareness especially among the young, who prefer convenient, on-the-go snacks. Simon Teo, Chairman, told Asian Agribiz that for a product to have lasting appeal it must move out of the traditional perception of bakkwa. “Firstly there has to be brand awareness. The young can access our history from the Internet, they can read the comments section, and see that bakkwa makes a nice gift,” he said. “By mid-2017 the company hopes to roll out a creative marketing move that will see a loyalty program, connection with customers via facebook, an app as well as retail trucks with barbeque pits that can go out to the customers.”
Indonesia’s native chicken business to grow 10%
[13 June 2016]
Indonesia’s native chicken business this year is expected to grow at 10% since many farmers in Central and East Java will increase their production capacities, according to Ade Zulkarnain, Chairman of the Indonesian Native Poultry Farmers Association (Himpuli). Mr Zulkarnain told Asian Agribiz that native chicken business in the country had grown at a rate of 10-12% since 2013. Last year, production was recorded at 270 million birds or equivalent to 270,000 tonnes of carcass. With this figure, the market value was around USD 1 billion. He revealed that Himpuli targets native chicken meat to contribute 25% to animal protein consumption in the country in 2019. This means the production will be around 1 billion birds with a market value of USD 3.7 billion.
Hong Kong resumes live poultry trade
[13 June 2016]
Live poultry trade resumed in Hong Kong last Thursday after being suspended the week before after a faecal sample taken from a Tuen Mun retail market tested positive for H7N9 virus. Hong Kong's Secretary for Food and Health Ko Wing-man said 3360 samples taken from all local poultry farms as well as the 270 samples from Cheung Sha Wan wholesale poultry market tested negative for H7N9 bird flu virus, a BusinessStandard report stated.

Web special
Lifestyle changes transform cured meat sector
[13 June 2016]

Like manufacturers of other processed meat products, cured meat producers in Asia are eager to stay updated with current market trends. Changing lifestyles across Asia has pushed for innovation in almost all aspects of the sector. The Asian Agribiz team delves into the shifting trends in the region.

Cutting back on salt
There are calls for the use of less salt, and safer and natural preservatives in the processing of cured meat products in Asia. Some producers in the Philippines are now turning away from chemical curing salts, claiming that their products are free of preservatives such as nitrites and nitrates. Marlene Santos, who last year began manufacturing tocinos and tapas from her home, said she decided to use only natural ingredients and preservatives. “I use sea salt, when possible, or iodised salt,” she said. As such her tocinos do not have the red tinge due to nitrates and nitrites that is typical of the mass market counterparts. She also uses only natural flavourings and spices.

Amazing Ham from Jinzi
Although more traditional hams are sold in smaller cuts, it is still not convenient for young and busy white collar workers in China to slice and cook them. According to the Jinzi Ham Co survey, about 37% of the respondents expect ham products to be applied in a variety of dishes without much cutting. In response to this Jinzi launched the Amazing Ham last July. The product is selected from the top portion of a ham – a 3kg ham can only produce 200g of Amazing Ham. These are sold at USD 10 each. According to Jinzi, the manually-sliced ham has a lean meat rate of more than 85% after the removal of excess fat and skin. The ham is good for steaming, frying, stewing and boiling. It can even be enjoyed within seconds when used for shabu shabu.

Thailand’s CFR now offers dry-aged beef
Last October Thailand’s Central Food Retail (CFR) launched its in-house produced dry-aged beef, aiming to add value to its processed meat range.  CFR selects local premium beef from KU Kamphaeng Saen Campus Beef Producer Cooperative Ltd (KU Beef). Malinee Suwattanachot, General Manager of Perishable Meat and Seafood, said the farm raises young cows and the cows are not fed with pineapple, so the meat texture is soft. To make the product, fresh beef is marinated with salt and then is moved to a temperature-controlled dry-aging equipment for at least 21 days. CFR also sells dry-aged T-bones and prime-ribs at Central Chidlom’s Central Food Hall. Both products are priced at USD 44.78/kg.

Better quality raw materials
Health reasons and changing lifestyles have propelled changes in the sector, and producers in the region have responded by using better quality raw materials. Singapore’s leading barbecued meat (bakkwa) producer Bee Cheng Hiang, for instance, imports 95% of its raw material from Europe for its Malaysian market. Only a small percentage of raw material is sourced locally. Its floss products, for instance, require fresh meat, which has not been frozen. This comes from selected local suppliers. Bee Cheng Hiang is also particular on the breed of pigs it uses. “We favour breeds that have more fat. We also pick the first generation of pigs. We like black pigs because of the marbling but it is expensive,” said Simon Teo, Chairman.

Chance for chicken
With the price of beef at around USD 7.50/kg and limitations placed on importing high quality raw materials such as whole muscle meat, the price of cured beef products like smoked beef and beef salami in Indonesia has skyrocketed. “Price is the main reason why the sale of cured beef products is stagnant or perhaps even decreasing,” said Ishana Mahisa, Chairman of the Indonesian Meat Processors Association (Nampa). But this is an opportunity for cured chicken products. The price of chicken is much lower than beef. Also chicken is the meat of choice in terms of consumption and production. CP Food Indonesia, experts in producing chicken and processing chicken-based food products, developed smoked chicken breast and gave consumers in modern markets more options. Global Foods International also produces smoked broiler and native chicken meat.

Read the full report in Asian Meat Magazine, July/August 2016

2016 Broiler Feed Quality Conference addresses four key topics
[10 June 2016]
Attracting more than 300 delegates from throughout Asia and beyond, the annual Asian Agribiz Broiler Feed Quality Conference is one of Asia's leading conferences and scientific forums for poultry and feed industry professionals to update their knowledge and network with industry peers. With the theme ‘Science, trial data and applications’ the conference will feature a strong technical program with leading regional and international speakers addressing four key topics;
•         Effect of nutrition on gut health
•         Understanding chick nutrition
•         Maximising macro/micro minerals
•         Harnessing feed technology
Registration form here.
Chicken prices in Thailand likely to rise in H2 due to falling supply
[10 June 2016]
Broiler prices in Thailand are likely to rise in the second half of this year due to a decline in supply, Somboon Watcharapongphan, Secretary of Broiler Association told Asian Agribiz. In early 2015, the US reported the presence of avian influenza and Thailand has banned GP imports from the US. “Hence, we will see lower supply of PS in the second half of this year, which means supply of broiler will decline in that period,” Mr Somboon said. Moreover, the surge in pork prices will encourage people to consume more chicken meat, driving chicken prices higher. Pork prices recently rose due to the drought in Thailand.
Indonesian government encourages salted duck eggs producer to widen export market
[10 June 2016]
The government is ready to support Indonesia’s UD Surya Abadi based in Karawang, West Java in increasing its salted duck egg exports. Muladno, Director General of Livestock & Animal Health of the Ministry of Agriculture said he is ready to reduce bureaucratic obstacles and to coordinate with the Ministry of Trade. Rully Lesmana, owner of the firm told Asian Agribiz that it is the first livestock firm in Indonesia that is authorised by the Agri-Food & Veterinary Authority of Singapore to export salted duck eggs to the island state. “At the moment we produce around 40,000 raw salted duck eggs per day. These are sold to traditional markets and the horeca industry, as well as for export to Singapore, Hong Kong and Japan,” Mr Lesmana said.
Two more Jollibee stores open in Singapore
[10 June 2016]
Jollibee opened two new stores in Singapore bringing to four the number of outlets the popular Philippine fast food chain has in the city. The stores are at Square 2 Novena and at Changi City Point. A Jollibee official told Asian Agribiz that while the first two stores were located at Lucky Plaza, a mall popular to the Filipino population in Singapore, the new locations allow the company to reach a more diverse clientele. Three new menu items especially geared to suit Singaporean taste were introduced in the new stores: Spicy Chickenjoy, Crispy Chicken Burger and Chicken Tenders.
Royal De Heus cuts stake in China's Wellhope to 9.63%
[10 June 2016]
Liaoning Wellhope Agri-Tech Joint Stock Co. said its second largest shareholder Royal De Heus of the Netherlands has cut its stake to 9.63% from 12.83% previously. De Heus sold 26.67 million Wellhope shares at USD 61.17 million, and it’s expected to allocate the capital to fund its business expansion in west Europe, where the Dutch company recently purchased a feed miller and a poultry processor. Wellhope is more than 50% controlled by its Chairman Jin Weidong.
KKR takes 10.44% stake in Japfa Comfeed Indonesia
[09 June 2016]
Leading agri-food company, Japfa Ltd yesterday announced that global investment firm KKR will invest approximately USD 81.2 million for a 10.44% interest in the Group’s major subsidiary, PT Japfa Comfeed Indonesia Tbk. KKR will take up a 6.57% stake in PT Japfa Tbk via a private placement and acquire another 3.87% stake from Japfa, which will continue to hold a 51.00% stake in PT Japfa Tbk. Tan Yong Nang, CEO of Japfa said : "We believe PT Japfa Tbk will benefit from KKR's deep knowledge and experience in the agriculture and food sectors."
China’s Ningxia region to build beef complex with Argentina's Grupo Insud
[09 June 2016]
China’s Ningxia Hui Autonomous Region said it will partner with Argentine conglomerate Grupo Insud to build an Angus cattle complex in the western province where many of the country's Muslim Hui ethnic minority live. The complex will include a 30,000-head Angus breeder farm to serve about 10,000 contract farmers. It will also build a 50,000-head feedlot of its own and a 100,000-head processing plant for halal beef. Construction of the complex is expected to finish in 3-5 years.
Agro Investama eyes sheep exports to Singapore
[09 June 2016]
Indonesia’s Agro Investama is keen on developing its sheep breeding business. At the moment it has 350 breeding stock (pure Garut breed) which is targeted to produce 78 feeder sheep per month. Once this project is successful, owner Yudi Guntara Noor told Asian Agribiz that the company will increase its breeding capacity then venture into sheep commercial farming. “The commercial farming is aimed for export. Three years ago, I received an order for 5000 sheep for qurban from Singapore. But since I collected the sheep from different farmers, the Agri-Food & Veterinary Authority of Singapore turned down the order due to concerns on quality and traceability,” Mr Noor explained.
Texas Chicken to open first outlet in Laos
[09 June 2016]
Texas Chicken recently finalised a deal that will increase the brand’s exposure in Laos. The deal, which will see seven restaurants over the next few years, will make Texas Chicken the largest, most visible quick-service fried chicken restaurant in the country. The first restaurant location is expected to begin end July-August, said Jean-Boris Roux, Hospitality Division Director of RMA Group of Laos, the franchisee for this endeavour. “With its strategic location near Thailand and Vietnam, where we currently operate 13 restaurants, Laos is a logical next step in our development in Asia,” said Tony Moralejo, Senior Vice President and Chief Development Officer at Texas Chicken/Church’s Chicken.
South Korea imported 30,000 tonnes of shrimp from Vietnam in 2015
[09 June 2016]
Vietnam is exporting more shrimp to South Korea. According to Choi Dug-Boo, Director, Korean Fishery Trade Association (KFTA), South Korea imports shrimp from Thailand, Indonesia and Vietnam. Vietnam’s shrimp products makes up almost half of the total volume and value of imports. He was speaking at the Busan International Seafood and Fisheries Expo 2016 press meeting held by KFTA and the Vietnam Association of Seafood Exporters and Producers. Last year Korea imported about 140,000 tonnes of seafood products worth USD 600 million. Of these 70,000 tonnes were shrimp, reaching USD 240 million. Vietnam being the biggest supplier at 30,000 tonnes.
Malaysia's CAB Cakaran buys Farm’s Best processing unit
[08 June 2016]
Malaysia’s CAB Cakaran Corporation Bhd and three other parties are buying the entire stake in Farm’s Best Bhd’s poultry processing unit, Farm’s Best Food Industries Sdn Bhd, for USD 2.30 million. Farm’s Best said it had terminated the earlier USD 59.03 million deal to sell the processing plant, Sinmah Breeders Sdn Bhd and Sinmah Livestocks Sdn Bhd to CAB Cakaran. CAB Cakaran together with its 51%-owned subsidiary Tong Huat Poultry Processing Factory Pte Ltd, Plant Wealth Holdings Ltd and Brighton Property Pte Ltd entered into a conditional share sale agreement with Farm’s Best last Friday. Together with Tong Huat, the processing plant will effectively become a 53.04%-owned subsidiary of CAB Cakaran.
Hong Kong culls poultry in wake of H5N1 confirmation
[08 June 2016]
All poultry at Hong Kong's Cheung Sha Wan wholesale market was to be culled yesterday according to Secretary for Food and Health Ko Wing-man. The ShanghaiDaily reported that the health chief made the announcement after a special meeting following a fecal sample taken from a Tuen Mun retail market tested positive for H7N9 avian flu virus. Live poultry trade has been suspended in Hong Kong. Mr Ko said there are 4,500 live poultry at the Cheung Sha Wan wholesale market, the only poultry wholesale market in Hong Kong. The government will inspect and take samples from the remaining 20 local chicken farms, he said, hoping that the results could come out before the Dragon Boat Festive, when chickens are in high demand in Hong Kong.
Bee Cheang Hiang to open bakkwa pie outlet in Malaysia
[08 June 2016]
Current market trends are seeing processed meat producers push the boundaries of innovation to come up with new offerings for their customers. Singapore bakkwa manufacturer Bee Cheang Hiang is creating a bakkwa pie. “It is a Chinese pastry pie with bakkwa filling. This will be sold by our company, Chun Qiu Tang, that produces dim sum. By October we plan to open our first outlet in Kuala Lumpur. The branding will be Chun Qiu Tang by Bee Cheang Hiang. If some months later we find this is a good concept we may duplicate it all over the region,” Simon Teo, Chairman, told Asian Agribiz.
Pacific West Foods promotes fish consumption at event
[08 June 2016]
Pacific West Foods (M) Sdn Bhd, the producer of Pacific West ready-to-cook seafood, has launched the Fish Fry Day campaign in Malaysia to encourage Malaysians to make fish their main protein. The campaign will run through the months of June to July 2016. As part of the campaign the company has published a collection of recipes by local and foreign celebrity chefs who have developed their own recipes using fish as the main ingredient. “Aside from introducing our wonderful line up of fish and seafood products the campaign’s main objective is to create awareness among Malaysians of the benefits of a fish diet,” Saw Lip Teik, Director, said at the launch recently.
Pakistan milk processors decry new import duties
[08 June 2016]
Pakistan’s decision, in the budget for 2016/17, to impose a 25% regulatory duty on the import of powdered milk and whey powder, has angered milk processors. Total duties, including 20% customs duty, now stands at 45%. Chief Operating Officer Haroon Lodhi at Haleeb Foods said the steps announced in the federal budget will lead to an increase in the cost of inputs for processors. Mr Lodhi termed the withdrawal of zero rating status as a step to marginalise the dairy processing industry. “This will be a killer as it will increase the cost by at least 10%,” he said. Small farmers, meanwhile, felt the move will directly benefit local farmers.
China’s Truein launches cured ham products
[07 June 2016]
Truein Agro-Pastoral Group, a pork integrator based in central China’s Henan province, said it has launched high-end cured hams branded ‘Dexury’. “The products are for pre-sale now as they have to be fermented for a year,” Hou Jie, Deputy General Manager for Marketing told Asian Agribiz. In September 2015, Truein started operations of a ham factory equipped with processing lines from Travaglini S.p.A. of Italy, and the factory can produce 150,000 hams a year.
Berkah Citra Agro to open meat shops in other regions in Indonesia
[07 June 2016]
Indonesia’s Berkah Citra Agro has said that its pilot project with a meat shop selling fresh chilled and frozen beef in Bandung, West Java shows a promising future. The company plans to take this concept to other regions. Owner Yudi Guntara Noor told Asian Agribiz: “The key strength of our Agro Meatshop is the supply. We have our own beef cattle feedlot in West Java so that we can sell beef at cheaper prices. At the same time, we guarantee the quality and traceability of our beef.” Every day the company slaughters 3-4 cows for its meat shop. However, Mr Noor said: “We only take the hindquarters since it is the fast moving parts. The forequarters or the slow moving parts, are sold to meat processing companies.”
Philippine milk output up 3%
[07 June 2016]
Philippine milk output reached 20.38 million litres in 2015, up 3% from 19.73 million litres the previous year, data from the National Dairy Administration (NDA) showed. Since 2010, milk output has been slowly but steadily rising as farm productivity improved. According to the NDA, a growing number of players are investing in the industry. One local player however, told Asian Agribiz that production is still negligible in relation to the country’s total milk requirement, adding that one of the biggest challenges local dairy farmers face today is getting the right feed to help the animals reach their genetic potential.
Thaifoods Group to produce 500,000 chicks a day by end 2016
[07 June 2016]
Thailand’s Thaifoods Group (TFG) plans to produce 500,000 chicks a day by the end of this year, up from 360,000 chicks a day currently, Cherdsak Kukiattinun, Chief Operating Officer of TFG said, efinanceThai reported. TFG has managed to control chicken production costs effectively and the firm has decided to increase production, he said, adding that it plans to supply chicken meat to airlines, modern trade and food service networks. TFG has also increased its production capacity at its chicken slaughter house in Prachinburi province, aiming to boost exports to Japan and Europe. The firm is confident of achieving USD 566.83 million revenue this year, Mr Cherdsak added.
Agro Investama invests in sheep breeding stock
[07 June 2016]
Sheep meat demand in Indonesia for religious festivals and also for the horeca industry continues to increase. However, the supply cannot meet growing demand. This situation led West Java based Agro Investama to invest in 350 breeding sheep at its farming facilities in Garut. “There are many sheep feedlotters, but the main problem is not enough supply of feeder sheep,” Deiwan Rahwanandi, R&D Director, told Asian Agribiz. “With the breeding stock, each month we plan to produce 78 feeder sheep -- aged four months with an average weight of 16-20kg -- for the market. Each feeder sheep will be priced at around USD 90.”
GFPT joint venture to build new further processing plant
[06 June 2016]
McKey Food Services (Thailand) Limited, a joint venture between Thailand’s GFPT and Keystone Foods Inc, said recently that it will build a new further processing factory at Amphur Thungkwang in Chonburi Province. The new factory will produce and supply processed chicken products to leading quick service restaurants in both domestic and international markets. McKey’s new further processing factory will have a capacity of 25,000 tonnes per year, with an investment of USD 42.11 million. The factory is expected to be completed and ready to produce for export markets by the end of 2017. McKey Thailand directly serves key markets in Europe and the Asia-Pacific region. Currently, McKey has a total capacity of processed chicken products of 25,000 tonnes per year.
Vinamilk is the most favoured FMCG in Vietnam
[07 June 2016]
Vietnam’s leading dairy products company Vinamilk is currently the most favoured fast moving consumer goods (FMCG) brand in the country, according to a Kantar World Panel’s study announced early June. Vinamilk is ranked in three categories including FMCG, beverage and food. In Asia, three leading dairy companies made the list including Thailand’s Dutch Mill (Thai Lan), China’s Yili and Vietnam’s Vinamilk, which is targeting to be one of the 50 biggest dairy companies in the world with turnover of USD 3 billion. Kantar Worldpanel is the global expert in shoppers’ behaviour.
Fauji Group launches new halal meat processing plant
[06 June 2016]
Pakistan’s Fauji Group, through its subsidiary Fauji Meat Ltd, has launched the country’s biggest halal abattoir, meat processing and exporting unit near Port Qasim, Karachi. The facility, which cost around USD 75 million, has been fully operational since April. It has a daily production capacity of 100 tonnes of meats (85 tonnes of beef and 15 tonnes of mutton) in both frozen and chilled categories for worldwide export. Rehan Munawar, the facility’s Chief Coordinating Officer said at present the company is exporting all its processed meats. “The facility is exporting 7-10 tonnes per day to Kuwait,” he said, adding that the facility will be running at full capacity by mid-2017. The company is now in the process of securing approval for exporting processed meat to other countries including Saudi Arabia, Iran, Malaysia, Egypt and the UAE.
QL Resources net profit down 20% on El Nino conditions
[06 June 2016]
Malaysia's QL Resources said its Q4 net profit fell 20% year -on-year, dragged down by lower prices of eggs and palm oil that offset gains in fish products exports. Net profit for the three months ended March 31 totalled USD 9.3 million compared with USD 11.53 million a year earlier, the company said. Quarterly revenue however climbed 16% year-on-year to USD 186.34 million from USD 161.11 million. The company said searing heat lowered productivity of its livestock, although the warmer temperature boosted fish catch.

Vietnam’s HCMC to centralise animal slaughterhouses
[06 June 2016]
In order to make Vietnam’s Ho Chi Minh City (HCMC) a better city for living, as well as to ensure food safety and traceability, HCMC Department of Agriculture and Rural Development plans to modernise and centralise animal slaughterhouses in the city by the end of 2017. All unlicensed and manual slaughterhouses in the city, small and medium scale, will be closed. Existing pig slaughterhouses in the city will be replaced by six modern slaughterhouses with a combined capacity of 10,000-15,000 pigs/day, located in Hoc Mon and Cu Chi districts. For poultry, two modern slaughterhouses with a combined capacity of 250,000-300,000 birds/day have been prepared in Cu Chi district. Meanwhile for cattle, two companies namely Delta JSC and Vietnam Meat Industries JSC (Vissan) will support the program.

Southeast Asia provides market for Australian chicken meat
[06 June 2016]
Australian chicken meat producers should look to Asia for market expansion, according to a report by Rabobank. But with higher cost of production, they may have to focus on lower-value cuts to Asia for a greater overall return for each bird. “With an ever-increasing market of protein consumers in Southeast Asia, they need to be viewed as potential opportunities for production growth,” the report said. “Indonesia, Thailand, Vietnam, the Philippines and Malaysia area expected to increase chicken consumption by 15% in the next five years.”
New Hope launches new chicken complex in north China
[03 June 2016]
China's New Hope Liuhe Co has launched a broiler complex in Laoting in northern Hebei province. According to the local government, the complex includes a 240,000-tonne feedmill, an abattoir with daily processing capacity of 120,000 birds, as well as 10-15 commercial farms to produce 20 million broilers a year. A further processing plant is also in the pipeline. Total investment is expected to be around USD 200 million.
Anugerah Cipta starts value added eggs campaign
[03 June 2016]
Indonesia’s Anugerah Cipta, a poultry consultancy firm has recently started promoting antibiotic, Salmonella and E coli-free chicken eggs in Banten province. Ani Juwita, Director told Asian Agribiz that the mission is to educate consumers on good quality and safe eggs. The eggs are sold at USD 1.65 per pack of 10 eggs for promotion, while the regular price is USD 1.88. The eggs are produced at the company’s partner farms in Sukabumi and Bogor that apply an ecosystem balance concept developed by the company, and only use probiotics – no antibiotics, no disinfectant, but vaccines are still administered for disease protection.
Thailand ready to join TPP
[03 June 2016]
Thailand is ready to join the US-led Trans Pacific Partnership (TPP) as soon as the pact is open for new membership, Deputy Prime Minister Somkid Jatusripitak said recently during a visit to Tokyo. Thailand will conduct a public hearing to gather opinion from all stakeholders before signing the agreement. Thailand is also ready to join the Regional Comprehensive Economic Partnership (RCEP), Mr Somkid added. “The livestock industry plans to protest if Thailand joins the TPP,” said Wawat Pongwiwatchai, Chairman of Ratchaburi Livestock Cooperative Limited. If Thailand joins the TPP, Mr Wawat said it will push livestock producers, and corn, cassava and soybean farmers into bankruptcy. US livestock products including ractopamine-fed pork and unwanted pork parts will flood the Thai market and negatively affect farmers. According to the Thai law, ractopamine is prohibited for use in animal feed.
Cambodia lifts ban on snakehead farming
[03 June 2016]
Cambodia’s Fisheries Administration said the government has removed a 12-year ban on farm-raised snakehead fish. The ban was imposed to stop farmers from catching small fish during the breeding season to be used as feed for the farm-raised snakehead fish. Snakehead fish will now be fed with processed fish food, which is a combination of small salt water fish and animal carcass. Hav Viseth, Deputy Director General of the Fisheries Administration, said it will provide technical assistance to farmers and teach them cost-effective means of farming. He said the ban on harvesting small fish during the breeding season would remain in place.
Indonesia to import frozen cattle semen from Spain
[03 June 2016]
Indonesia’s Ministry of Agriculture recently signed an MoU with the Embassy of Spain in Indonesia on imports of frozen beef cattle semen from the European country. Andi Amran Sulaiman, Indonesia’s Minister of Agriculture said in the next two months the country will start importing frozen semen from Spain. “We will import in a big volume since it’s estimated that we have a standing breeding cow population of around 4 million heads,” he said. With the average success rate of artificial insemination at 90%, Mr Sulaiman believes the initiative will give more value and profits for farmers.
Orient Fresh Deli secures food safety certs
[02 June 2016]
Malaysian producer of pork hams, bacon and sausages Orient Fresh Deli Sdn Bhd last week secured the HACCP, ISO 22000:2005 Food Safety Management System and Good Manufacturing Practice certifications. The company produces 1200-1500 kg of products daily for sale at its own retail outlet called Mr Bacon and at four concession outlets with retailer Aeon Co (M) Sdn Bhd. “The certifications will help us expand our business and export our products to Sabah and Sarawak. We are also looking at opportunities in the Philippines and Indonesia,” Robert Kok, Managing Director, told Asian Agribiz.
Thailand to establish food innovation hub
[02 June 2016]
Thailand’s Ministry of Science and Technology last week signed a memorandum of understanding with 13 food companies, 12 universities and 10 government agencies, to establish the Food Innopolis. Located at Thailand Science Park in Pathum Thani province, it will be a food innovation hub, focusing on research, development and innovation. The food cluster will provide spaces for a variety of businesses including central lab, a one stop service centre and other facilities. Dr Pichet Durongkaveroj, Minister of Science and Technology said that Food Innopolis will focus on high value added food products such as premium seafood and aquaculture, food additives and ingredients. It will also support innovation in packaging, design, information technology, food safety, traceability, testing and certification.
Potential in Indonesia’s native chicken business
[02 June 2016]
Indonesia’s native chicken business grew 10% in the last five years, offering good future potential for expansion to existing players, according to Bambang Krista, Chairman of the Indonesian Local Chicken Breeders Association (Gapali). He said at times, demand exceeds supply. In addition, the price of live birds is relatively stable at around USD 2.3/kg. The biggest market for native chicken is still in Greater Jakarta. In the breeding sector, supply and demand of native DOC is balanced. Combined with non Gapali members, national native DOC (broiler & layer types) production is around 2 million per month, Mr Krista told Asian Agribiz.
Guangdong Wens eyes one tenth of China’s pig market
[02 June 2016]
Guangdong Wens Foodstuff Group in China said it targets an average 10% growth of in pig production, and eventually hopes to gain one tenth of China’s pig farming market, or an output of 50 million pigs a year, according to a roadshow memo obtained by Asian Agribiz. The company is seeking to raise USD 176 million through a private placement to fund its pig farm expansion in northeast China. Wens, already the largest livestock producer in China, produced 15.35 million pigs, 744 million chickens and 18.74 million ducks last year.
Tamil Nadu implements measures to prevent bird flu spread
[02 June 2016]
As part of the precautionary measures to prevent the spread of avian flu from India’s Karnataka, the Tamil Nadu government has suspended transportation of poultry items including chicken and eggs until the disease is brought under control in Karnataka. All district collectors have been instructed to monitor this. In all, 38 check-posts have been functioning round the clock in 10 districts bordering the neighbouring states. As many as 1200 rapid response teams have been kept ready across Tamil Nadu to take measures to curb the flu.
Omega-3 eggs to become new norm in Indonesia
[02 June 2016]
Omega-3 eggs are set to be a new norm in Indonesia since consumers are offered many choices at reasonable prices. The price is a bit higher than regular eggs, and consumers get clean eggs packed in proper packaging with added value in egg content. Pioneered by Sumber Inti Harapan Group led by Yoseph Setiabudi since 1990s, now many new players have joined the market. Although the competition is building up it is indirectly educating consumers. QL Group Indonesia this year targets to supply its QL Omega eggs to 4000 Indomaret stores. Last year it supplied around 1.5 million QL Omega eggs to 1500 Indomaret stores in Greater Jakarta and West Java each month.
Citra Lestari grows native chicken carcass production
[01 June 2016]
Indonesia’s Citra Lestari Food, the food division of native chicken breeder Citra Lestari Farm, plans to escalate its native chicken carcass production by 2000 carcasses per day this year. Currently it processes some 1500 carcasses per day, owner Bambang Krista told Asian Agribiz. Its latest product is Burangkeng native chicken, a marinated and ready-to-cook whole carcass product. All the products are sold to end consumers directly as well as via agents. Plans are afoot to market the Burangkeng native chicken to neighbouring countries such as Singapore, Malaysia and Brunei.
Betagro restructures it business units into two
[01 June 2016]
Betagro Group in Thailand has consolidated its six business units into two major units, agro business and food business, said Narongchai Srisantisaeng, Executive Vice-President and Chief Operating Officer of food business at Betagro. The company' previous six business units were food, swine, poultry, regional, feedmill and animal health. The Group has invested in enterprise resource planning software, which will help increase operational efficiency and competitiveness, he added. Meanwhile, Betagro is setting up a food innovation centre at the company's head office in Bangkok. This will be opened by the end of this year and will develop new products and packaging.
Lay Hong looks for JV partner for China market
[01 June 2016]
  Malaysian poultry producer Lay Hong Bhd is looking for a joint venture partner in China to manufacture and sell halal food products there in its bid to expand into the overseas market, reported The Star. Executive Chairman Yap Hoong Chai on a recent trip to China said he was keen to explore opportunities in the Chinese market after attending a business-matching extravaganza organised by the Bank of China. “We wish to find a partner in China to produce halal food products, just like what we have done with our Japanese partner recently,” said Mr Yap referring to Lay Hong’s JV with Japan-based NH Foods Ltd to, among others, make and sell processed meat-based foods.
The Wagyu House plans expansion beyond Jakarta
[01 June 2016] 
The Wagyu House, an online meat shop based in Jakarta, plans to expand its market to other big cities in Indonesia. Jessica Andrylie, owner told Asian Agribiz that it will soon launch a website to attract more customers. Founded in May 2015, its marketing & promotions is via social media and messaging apps. The Wagyu House offers only 21 portioned cuts of wagyu beef which are imported from Australia and Japan. Of the products, Ms Andrylie said round steak is the bestselling product, followed by tenderloin. “A cut of wagyu beef at supermarkets is more than USD 14.7, and it’s calculated per 100g. While a cut of my wagyu beef is only USD 5.1-5.8,” she said.
Chen Chunhua leaves as Co-Chairwoman of New Hope
[01 June 2016]
New Hope Liuhe Co. of China has announced that its Co-Chairwoman and CEO, Chen Chunhua has stepped down after a three-year term and will return to her education post. Liu Chang, daughter of New Hope founder Liu Yonghao, will remain the Chairwoman. With the contributions from Ms Chen, a well-known professor in business management, New Hope said it “has successfully expanded business to livestock farming and food processing from feed only amid a domestic overcapacity in the feed industry”, while the company posted an annual net profit growth of over 16% in 2013-2015.
India will require 32mt of feed corn by 2025
[01 June 2016]
By 2025, India will require 50 million tonnes of corn for domestic consumption, of which 32 million tonnes will be for feed. Agriculture Minister Radha Mohan Singh said doubling India’s corn production will be an opportunity “and it can be achieved.” Mr Singh said in order to explore maximum uses of the crop, the corn-based industry needs to be promoted in a big way and special incentives need to be given for the cultivation of corn. In spite of the drought last year, corn production stood at 24.17 million tonnes in 2014-15, Mr Singh said adding this signifies the resilience of corn cultivation against climatic variability. About 64% of the total corn production is used for poultry feed.

Special focus on feedmill construction in Asian Feed Magazine, June/July 2016
[31 May 2016]

The 2016 Feedmill Construction Report in the latest edition of Asian Feed Magazine, reveals that the region is building more feed processing plants to support growing demand for meat. “The recent economic slowdown in Asia did not stymie animal protein consumption. Instead meat consumption has continued to grow moving feed producers to pursue expansion plans,” the report reveals. The Construction Report tracks the annual development of feedmills in Asia.

Feed companies pursue expansion plans
In China despite the number of feed companies decreasing from 10,000 to 6000, production is on the rise, with some companies moving into livestock farming and food processing. In India Amit Saraogi, Chairman, Compound Livestock Feed Manufacturers Association, said the industry is expected to grow to 40 million tonnes by 2020. In 2014/15, compound feed production hit 28 million tonnes. “The growth of compound feed will keep pace with livestock GDP,” he said.

More fully-automated plants being built across the region
Across Asia feedmills are starting to look like efficient control centres. “Feed producers in the region are looking at efficiency and technology to ensure consistent quality, safety and lower costs. They are also concerned with traceability,” Kevin M Roepke, Regional Director, US Grains Council, told Asian Agribiz. He said another factor pushing for full automation is the cost and availability of labour. “Labour determines where a plant is built, how it is built and equipped,” he said.

India supports aqua sector with more feedmills
Early mortality syndrome was a major setback to the Thai shrimp industry but it opened doors for Indian farmers. India’s introduction of the Pacific white shrimp in 2009 and the cut back of black tiger on its farms, also proved to be a good move. With seafood production growing at a rate of 4% per year since 2012, its aqua feed demand is expected to touch 7 million tonnes by 2017-2018, according to Yes Bank at a Global Grain and Feed event. At least one shrimp company is taking on backward integration. Major shrimp exporter Devi Seafoods is building at 50,000 tonne per year shrimp feed plant.

Despite weak currency Indonesia sees room for growth
Indonesia’s feed consumption will increase alongside meat consumption. The Indonesia Feed Producers Association, formerly known as GMPT, expects feed consumption to touch 17.3 million tonnes this year, up 7% from last year. “There is room for growth in the industry for both local and international players,” Sudirman FX, Chairman, told Asian Agribiz. However, he added that currency exchange rates and government policies could derail its performance. Last year feed consumption reached 16.1 million tonnes, lower than the projected 16.8 million tonnes. This year it sees slower growth as the livestock industry recovers.

Foreign feed firms push on with investments in the region
Foreign feed companies are continuing to invest in Asia. Archer Daniels Midland launched a premix plant in Nanjing and hopes to launch its first facility in southern China by Q4. Cargill unveiled its largest plant in South Korea last year and opened its 11th and 12th plant in Nghe An and Binh Dong, Vietnam, respectively. DLG and partner Puai Feed will build a pig feedmill in China. Evonik has started work on its second facility in Singapore. Nutreco is converting its compound facility in China into a premix plant, and Royal De Heus is into its seventh feedmill in Vietnam, and is working on its first plant in Myanmar.

Asian firms continue expanding beyond their borders
Asian producers are strengthening their regional presence. QL Group Indonesia, via QL Agrofood, launched its first feedmill in Indonesia. The USD 17 million investment in Bekasi, West Java, has an installed capacity of 20,000 tonnes per month. This year Betagro will complete its feedmill in Cambodia. CJ Cheiljedang is eyeing a poultry and swine feedmill in Vietnam, while CJ Feed Indonesia targets two facilities in Indonesia. Japfa Comfeed is extending its presence in India with two new feedmills. Taiwanese aqua feed producer Grobest Feed is investing USD 15 million in a fish and livestock feedmill in the Philippines.

Cargill opens USD8.5m animal nutrition plant in Vietnam
[31 May 2016]
Cargill officially inaugurated a USD 8.5 million animal nutrition plant in Nghe An province, Vietnam on May 28.  This brings Cargill’s total number of animal feed mills in Vietnam to 11. The new facility will provide animal feed for livestock and will have a total capacity of 66,000 metric tonnes per year. It will incorporate Cargill’s uncompromising approach to feed safety, ingredient quality and product integrity.  “Vietnam is one of our best performing markets in our animal nutrition business globally. Our success in Vietnam is an invigorating story of how we are able to grow our business in a country, and at the same time contribute to the development of agricultural practices and improve the livelihoods of thousands of farmers,” said Sarena Lin, President of Cargill’s global feed and nutrition business.
CPF's new plant to produce food for seniors and hospitals
[31 May 2016]
Thailand’s Charoen Pokphand Foods (CPF) will spend USD 19.59 million for a new facility in Ayutthaya province's Wang Noi district, Sukhawat Dansermsuk, Chief Operating Officer of Food Business at CPF said. Construction will begin in July this year and will produce sauces, seasoning, curry paste, vegetarian food and food for the elderly and hospitals. The new facility will be completed by mid-2017. CPF will produce ready to eat, liquid foods for the elderly and patients in hospitals, with a production capacity of 12 million packs a year. The company will sell its liquid food to hospitals and plans to sell the products in 7-Eleven convenience stores. “People are now living longer and the number of older people is increasing in Thailand,” Mr Sukhawat said.
CP Indonesia records moderate growth in 2015
[31 May 2016]
Indonesia’s largest poultry integrator Charoen Pokphand Indonesia reported that it achieved moderate growth with sales of USD 2.2 billion, a 3.28% increase from 2014. Meanwhile, net income climbed 4.98% to USD 134 million. Poultry feed was the largest contributor (73%) to the total revenue, followed by DOC and processed food businesses. The company said the weak rupiah last year raised the price of imported feed raw materials. Besides, the weak market sentiment presented the company with limited opportunities. With the stabilisation of the rupiah, the company is confident of recording better performance this year.
CPF to open third sausage factory by end 2016
[30 May 2016]
Thailand’s Charoen Pokphand Foods (CPF) plans to open a new USD 28 million sausage factory in Nakhon Ratchasima province by the end of this year, said Sukhawat Dansermsuk, Chief Operating Officer of Food Business at CPF. CPF’s third sausage factory will have a production capacity of 60 tonnes a day. The firm operates sausage plants in Bangkok's Nong Chok district and in Saraburi province with a combined capacity of 70,000-80,000 tonnes a year. With the new factory, CPF will have a total sausage production capacity of 100,000 tonnes a year. Mr Sukhawat said that CPF has a market share of 28-30% in the sausage segment in Thailand. The company also plans to export its sausage products to Asean markets in the future.
Philippines endorses anti-agricultural smuggling law
[30 May 2016]
Philippine President Benigno Aquino III signed into law Republic Act 10845, known as the Anti-Agricultural Smuggling Act, which considers large scale agricultural smuggling as economic sabotage. Pushed by the Samahang Industriya ng Agrikultura (Sinag), a multi-sectoral group that included the country’s livestock and poultry raisers, the law is expected to give “smugglers and their cohorts in government second thoughts. The offense is nonbailable and carries harsher penalties,” Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz, adding that they hope the implementing rules and regulations to be drafted by the Bureau of Customs will truly make the law effective.
More egg choices for health-conscious Thai consumers
[30 May 2016]
Premium eggs, such as omega-3 enriched eggs and free-range and organic eggs, are good choices for health-conscious consumers, Manoch Chootubtim, Chief Advisor of Thai Layer Farmers Association told Asian Agribiz. Health-conscious consumers are growing every year in Thailand. “If consumers know that premium eggs are as good as advertised, I think that more people will consume these types of eggs.” Mr Manoch sees business potential in premium eggs that retail at USD 0.23-0.28/egg. Meanwhile, the price of mixed size eggs in Thailand is currently at USD 0.08/egg. “Premium eggs offer good profit but raising layers are difficult for farmers,” he said, adding famers need to build their credibility about the value in these eggs.
Indonesia’s cold storage industry needs more capacity
[30 May 2016]
The cold storage industry in Indonesia needs around USD 902 million to raise installed capacity to a sufficient level. Currently, the country has to cope with a deficit in terms of the availability of cold storage facilities. This is a challenge to preserving and transportation of (processed) seafood, meats, as well as fruits and vegetables. Hasanuddin Yasni, General Chairman of the Indonesian Cold Storage Association (ARPI), said the seafood industry requires some 14 million tonnes of cold storage capacity per year. However, currently only 7.5 million tonnes is available. The chicken meat industry requires about 5 million tonnes of cold storage facilities but only 1.5 million tonne capacity is available.
Sundaily gains largest market share with value-added eggs
[30 May 2016]
China’s Sundaily Farm, a specialised egg producer based in southwest Sichuan province, said it has ranked top for the fourth consecutive year with the biggest share of fresh egg market in the country. Its products range from free-range organic eggs to multigrain-fed eggs, omega-3, as well as vegetarian diet-fed eggs said to have lower cholesterol. According to the company, its vegetarian eggs are produced by layers fed without animal fat, but supplemented by alfalfa, seaweed and flax seed that could help reduce over 30% of cholesterol in eggs. Founded in 2001, Sundaily has set up seven layer farms of its own with a total stock of more than 4.5 million birds, including some 800,000 sets of breeders developed by itself.
Indonesia’s government urged to develop local cattle
[30 May 2016]
The Indonesian Cattle & Buffalo Farmers Association (PPSKI) has urged the government to give priority to developing local beef cattle rather than focusing on breeder cattle and frozen semen imports. Teguh Boediyana, PPSKI Chairman said local beef cattle like Bali and Ongole cattle also have good production performance. In addition, they have a strong adaptability to the environment in Indonesia. “We see that the government so far has no good programs in developing local beef cattle to support its beef self-sufficiency program,” said Mr Boediyana.
China's Truein builds sales through partnership with fast food chain
[27 May 2016]
Chinese pork integrator Truein Agro-Pastoral Group said it will partner with Shaxian Delicacies, a local fast food chain with about 20,000 restaurants nationwide, for fresh and processed pork supply, new product development as well as e-commerce operations. “We have pork processing plants from the south to the north of China, and a new complex with annual capacity of 4 million pigs will soon be launched in northeastern Jilin province,” Hou Jie, Deputy General Manager for Marketing told Asian Agribiz.
QSRs in Indonesia prepare for Ramadhan
[27 May 2016]
With the fasting month Ramadhandue to begin in early June, some QSR chains in Indonesia have prepared strategies to boost sales. McDonald’s Indonesia will launch a new menu said Sutji Lantyka, Communication Director of Rekso National Food, the operator of McDonald’s in Indonesia. “During Ramadhan our stores are always full, even more crowded than regular days.” Not poles apart, Fast Food Indonesia, the master franchisee of KFC in Indonesia will also launch special menus. During the month, Fast Food expects its sales to increase by 15-20%.
Balance needed between automation and management
[27 May 2016]
Poultry producers cannot fully automate broiler production but they need skilled management to obtain good production results, said Niels Henrik Lundgaard, Product Manager of Farm Management at Skov A/S. “We need to find a right balance between management and the right tools - it’s the man machine interface,” he said, at a seminar organised by Skov in Bangkok this week. “It is about enhancing the human factor by using automation,” he added. The value of automation is to increase productivity and give early warnings on feed and water intake, daily weight gains and weight uniformity.
Sustainability is main challenge for Indonesia’s tuna industry
[27 May 2016]
Indonesia has become one of the largest tuna producing countries in the world. It is estimated that Indonesia supplies about 1 million tonnes of the saltwater finfish per year or 16% of the world’s total tuna supply. As such, the tuna fishing industry has become a vital component of Indonesia’s fishing industry. However, according to Susi Pudjiastuti, Indonesia’s Minister of Fisheries & Marine Affairs, the main challenge in the industry is the conservation of tuna resources as only 66% of total tuna fishing takes into account the sustainability of tuna resources. The remainder is fished beyond ecologically safe limits.

Web special
China’s white broiler segment tipped for better days
[27 May 2016]

China’s white-feather broiler segment is seen to be the most advanced part within its animal protein sector, both for its large scale and high standards. However, the segment has been suffering from losses since 2012 and upstream breeders have had to limit the introduction of overseas GPs. At the recent annual conference hosted by the China Animal Agriculture Association (CAAA), in Shenyang, government officials, scientists and industry executives shared their views on the segment's future and initiatives to meet the challenge.

China association says current white-feather broiler GP stock ‘appropriate’
Gong Guifen, Vice Secretary General of the CAAA said it would be appropriate for the nation’s white-feather broiler segment to keep a laying GP stock of about 800,000 sets. The GP stock has fallen to 796,800 sets as of Q1 2016 after introduction fell 39% to 720,200 sets last year. Ms Gong said the 2015 introduction could ensure abundant supply of parent and commercial stocks this year, and the segment is expected to bottom out from a four-year downturn.

China Broiler Alliance sees 2016 GP introduction at about 500,000 sets
Li Jinghui, President of the China Broiler Alliance said the nation’s introduction of white-feather broiler GP stock is expected to reach about 500,000 sets in 2016, as international breeders are expanding their capacities in New Zealand and Spain, countries that are permitted to export GPs to China. China imported only 24,200 sets of broiler GP in Q1 2016 and this may cause a shortage of commercial stocks around early 2018, Mr Li said, adding that China may need another one million sets of GP in 2017 to fill the gap.

White chicken sees growing competition from yellow chicken
Zhang Fu, Deputy Director for animal monitoring and analysis at China’s Ministry of Agriculture, said the white-feather broiler segment is facing growing competition from the local yellow broilers as well as waterfowls. China produced 4.28 billion white broilers and 3.73 billion yellow chicken in 2015. Meat output was at 7.58 million tonnes and 3.64 million tonnes respectively. The nation also produced 6.94 million tonnes of duck meat and 1.51 million tonnes of goose last year.

China eyes 20% market share for locally-developed white broilers
China targets to develop two or three fast-growing white-feather broiler breeds of its own by 2025, with market share to exceed 20% of the segment, said Wen Jie, Chief Scientist for the National Broiler Industry Technology System. China introduced white broilers in 1980s, and now the segment is about half owned by Abor Acres Plus, followed by Ross 308 and Hubbard, according to Mr Wen.

CP China to expand further processing
Lv Pan, Vice Chairman of Agro-industry & Food Business at CP China, said the company targets to process 80% of its chicken into cooked or prepared products, up from a current 60% further-processing rate that already tops Chinese broiler integrators. He revealed that CP China recently launched two factories in Qingdao and Qinhuangdao to produce Chinese food like baozi, jiaozi and shaomai, with a combined capacity of 200,000 tonnes a year.

Fujian Sunner to sell processed products online via ‘weishang’
Fujian Sunner, the largest white-feather broiler integrator in China and supplier to KFC and McDonald’s, said it is enlisting ‘weishang’ (micro online business sellers) to promote its frozen processed chicken products on social media. The company has allocated 14 products in small packs such as grilled wings, popcorn and sausages for the online sale. “We will expand the channel after improving on logistics,” Brand Manager Lin Xiuying told Asian Agribiz.

Cargill, Jollibee set up JV for processing plant
[26 May 2016]
Cargill Philippines and Jollibee Foods Corp (JFC) has formed a joint venture company, Cargill Joy Poultry Meats Production Inc, to build and operate a poultry processing plant in Batangas province.  Cargill will own a 70% stake in the JV, with JFC owning 30%. JFC CEO Ernesto Tanmantiong said the plant “will provide JFC with dressed and marinated chicken to augment the chicken supply requirements” of the various JFC brands. The partnership is expected to generate some 1000 new jobs and develop opportunities for poultry farmers in Batangas and nearby provinces who will be contracted to grow chicken to meet the plant requirements.
Citra Lestari to increase native DOC production
[26 May 2016]
Indonesia’s native chicken breeder Citra Lestari Farm this year plans to increase its DOC production by 300,000 DOC/month. “This is in response to growing demand in existing regions and new regions in the country,” Bambang Krista, owner told Asian Agribiz. At the moment the firm has 20,000 native broiler PS and 1000 native layer PS. Of the PS stocks, the firm produces 200,000 DOC/month, 80-90% is broiler DOC. The DOC is sold throughout the country under the Dinar brand. However, the main market is still in Java, since the highest demand for native chicken is still in big cities on the island.
Thailand still has time to resolve IUU fishing
[26 May 2016]
On the issue of  illegal, unreported and unregulated (IUU) fishing, Thai Deputy Prime Minister General Prawit Wongsuwan recently said that in the latest round of talks with the European Union (May 17-19, 2016), the EU did not reach any decision on the red card or yellow card. Hence, Thailand still has time to work on this and reaffirms its commitment to continue working to tackle the IUU problem. The ministry of foreign affairs said in a statement that the EU has exchanged knowledge and experience with the Thai government to deal with the IUU problem.
Indonesia’s Ministry of Ag rejects MDM import proposal
[26 May 2016]
In a previous news item Asian Agribiz reported that Indonesia’s Minister of Industry Saleh Husin had proposed to allow imports of (chicken) mechanically deboned meat (MDM) of around 6000-6500 tonnes/year to support meat processors in the country to help them raise their competitiveness. In a new development, Indonesia’s Ministry of Agriculture has rejected the proposal due to halal considerations. Sri Mukartini, Director of Veterinary Public Health of the ministry said there are some requirements to import the product. “The chickens have to be slaughtered manually by halal certified slaughtermen in halal dedicated processing plants,” she said.

Asian Poultry Magazine, June/ July 2016 Highlights
[26 May 2016]

Cargill helps white chicken gain ground in China
The white broiler chicken market in China has suffered a number of blows in recent years. The situation is challenging, and producers suffered significant losses. But Christopher Langholz, leader of Cargill’s Global Poultry group, believes some basic virtues will help reverse the current trend. Mr Langholz, who previously headed Cargill’s animal protein unit in China from 2011 to 2015, told RICH HERZFELDER that ultimately, “Cargill is bullish on chicken in China.”

Maharlika raises opportunities with ducks in the Philippines
Presently, the duck meat industry in the Philippines is too small to make an impact on the country’s poultry sector. However, one company has taken the lead to develop and promote duck raising in the country, with eyes not only looking inward but outward to the global market, writes ISA Q TAN.

Citra Lestari Group grows its native chicken business
In order to respond to growing demand for its native DOC, Indonesia’s Citra Lestari Group, a leading native chicken breeder based in West Java, targets to raise its DOC production by 300,000 chicks/month this year. ARIEF FACHRUDIN also learns that the breeder plans to increase its processing capacity by 2000 carcasses/day.

Combined natural growth promotants – the new way in pathogen control
DR ATTILA KOVÁCS* presents how a natural growth promoter can successfully control harmful Gram-negative bacteria in poultry, without harming beneficial bacteria.

Part 1 DL-Methionine – nutritionally the mirror image of L-Methionine
PRADEEP KRISHNAN, ARIANE HELMBRECHT, BEHNAM SAREMI and GIRISH CHANNARAYAPATNA review biochemical and recent growth performance evidence comparing the nutritional value of DL-Methionine (Met) and L-Met.

Incorporating the immune system in feeding strategies Part 1 - effects of energy
JAN VAN EYS* focusses on the demand for energy of the immune system as a basis for enhancing effective nutritional intervention; be this at the immune systems “maintenance level” or during the instances of an  increased demand for nutrients during specific challenges.

Insoluble fibre - an “essential nutrient” for layers
IKE NG and MANFRED PIETSCH* present that insoluble crude fibre concentrates benefit health and performance, and should be considered as an indispensable component in modern layer feeds.

Asian producers caught short by soymeal rally
[25 May 2016]
  Several poultry, pig and cattle producers in Asia will be forced to pay more for soymeal after an almost 40% surge in prices in less than a month. Crop-damaging rains in Argentina and a drop in potential US plantings began pushing prices higher from early April. Prices of soymeal jumped around 37% to USD 367.60 a short tonne in early May.  The region consumes half the world’s soymeal production and contains seven of the top 10 global buyers.
High chicken price in Sri Lanka due to soaring temperature
[25 May 2016] 
Across Sri Lanka, small and medium scale chicken producers are struggling to keep their birds alive in the midst of high temperatures, reaching up to 40 degrees at mid-day, over the last two months. Many of the birds live in tightly packed houses, where the heat leads to dehydration. Rumi Jamaldean, a farmer in Kurunegala district with around 8000 birds, said he lost half of his flock.  The losses have translated into hikes in chicken prices. In Colombo and its suburbs, a kilo of fresh chicken was selling for around USD 5.5 in early May. Two months earlier it was only USD 3.0.
Russia interested to develop fishery centres in Indonesia
[25 May 2016]
  Russia has shown interest to invest in the development of 15 integrated fisheries and marine centres in Indonesia. Susi Pudjiastuti, Indonesia’s Minister of Fisheries & Marine Affairs said that she hopes Russia will set up a fish processing centre in the eastern region so that the quality of fish and exports from Indonesia will improve in the future. “Foreign investors may not be allowed to fish, but they will be allowed to set up fish processing companies, which may be owned up to 100%,” she added.
Vietnam set to import poultry breeders from China
[25 May 2016] 
Vietnam’s Department of Animal Health has proposed importing poultry breeders from China. According to the Department of Animal Health, under the Ministry of Agriculture and Rural Development, officially importing Chinese chicken will allow Vietnam to better control diseases and epidemics. Under the program, the department must ensure poultry from China is safe for imports. Local farmers are unhappy as chicken prices have been falling over abundant supply.  In Dong Nai recently prices fell to only USD 1. “The low prices indicate that there is a surplus locally so why should we import more from China?” the Director of a Dong Nai-based husbandry firm said.
Pakistan sanctions use of GM corn seeds
[25 May 2016]
  Pakistan will allow farmers to choose genetically enhanced corn seeds that will help them produce better crops. According to Croplife Pakistan Executive Director, Dr Muhammad Afzal, this landmark decision was taken after a rigorous process spanning seven years. The approval process involved monitoring of field trials and evaluation of risk assessments submissions by designated committees of the government as required by the country’s biosafety laws. “The government’s approval of insect protected and herbicide tolerant corn seeds will not only boost productivity, but will also encourage future local and international investment in Pakistan’s agricultural sector,” he claimed.
Indonesia’s MOA sets strategies to increase corn production
[25 May 2016]
  To increase local corn production, Indonesia’s Ministry of Agriculture (MOA) will accelerate the production of corn in West Sumatera, North Sumatera, Lampung, Banten, West Java, Central Java, East Java and West Kalimantan. In these areas, the ministry will provide free corn seeds for 1.5 million ha of land, as well as improve the post-harvest and distribution system to feed millers. With the program, Andi Amran Sulaiman, Minister of Agriculture believes local corn production will reach 24 million tonnes, over last year's 19.83 million tonnes. “We will be able to meet demand from feed millers,” he said.
Tangrenshen to invest USD 1.38 billion in pig farming
[24 May 2016]
Tangrenshen Group, a leading feed miller and pig integrator in central China’s Hunan province, plans to invest USD 1.38 billion in pig farming over the next 10 years, targeting to produce six million pigs a year by 2025. The company said it will achieve the goal through new farms of its own, contract farming, as well as acquisition of existing farms. “Industry players are extending the value chain as China is pushing structural reform. There will be great opportunities for integrators as more back-yard farmers are exiting,” said Tangrenshen Founder and CEO Tao Yishan.
Demand for natural pork grows in Thailand
[24 May 2016]
Sopaphan Juyjaroen, Vice President of Perishable at Thailand’s Central Food Retail told Asian Agribiz that demand for its natural pork, produced from free range and herb fed pigs, continues to grow in Thailand. Sales of natural pork at Central Food Hall and Tops Supermarket, grew 19% last year and surged 30% in Q1 this year, she said. “This was partly due to promotions and brand awareness,” Ms Sopaphan added. Central Food Retail has partnered with, Sampran Farm to produce natural pork and around 80 pigs are processed each day.
Sumatera Budidaya Marine ships 14.9t of grouper to Hong Kong
[24 May 2016]
Indonesia’s Sumatera Budidaya Marine recently celebrated its first shipment of 14.9 tonnes of grouper worth USD 134,000 to Hong Kong. Sahrul, an official of the company said the mariculture fish is farmed in Belitung Island under the partnership model. “So far we have partnered with 100 farmers in the island. We support them with good fry and feed, technical assistance and market guarantee,” he said. Based on Indonesia’s Ministry of Fisheries & Marine Affairs data, the island last year produced 84 tonnes of grouper. Mr Sahrul revealed that the company plans to develop the partnership model in other regions in the country.
India eyes new sbm markets
[24 May 2016]
As India’s soybean meal (sbm) exports in 2015-16 declined by 50% over the previous financial year, the industry has decided to explore new markets like Africa, Middle East and developing countries in Asia. India’s Solvent Extractors Association plans to participate in a trade fair in Tanzania in July 2016 and are also considering a techno-commercial delegation to East African countries to explore these markets. Over the last two years, India lost traditional markets. Iran shifted to other origins, Vietnam, Pakistan and Bangladesh switched from import of sbm to import of soybean, while Japan switched to GM sbm.
Jollibee to build at least 200 stores this year
[24 May 2016]
Jollibee Food Corp (JFC) said it is planning to construct at least 200 new stores this year. The company has earmarked more than USD 200 million for its capital expenditures in 2016, more than twice what it spent last year. About USD 161 million will be used for new stores and the renovation of existing stores. The remainder will be used to fund the construction of three new commissaries in Luzon, expand its largest commissary in Laguna province, and set up two new distribution warehouses in North Luzon to support its rapidly growing business in the Philippines. By end-March, JFC, the largest food service network in the country, had a total of 3143 stores worldwide.
Indonesia reports 148 bird flu cases up to April
[24 May 2016]
Indonesia’s Agriculture Ministry revealed that there were 148 cases of bird flu reported in the first four months of 2016, a sharp increase from the 123 reported throughout 2015. “Lack of public awareness has been cited for the continued circulation of the virus, especially among farmers who don’t implement biosecurity measures,” said I Ketut Diarmita, Director of Animal Health Services of Agriculture Ministry. Extreme weather changes has left poultry more vulnerable to the virus, he added.
Organic pork gains ground in Vietnam
[23 May 2016]
Despite selling at higher prices, organic pork is gaining ground in Vietnam. Le Bich Ngoc, who manages an organic food store in Ho Chi Minh told Asian Agribiz that higher income and health conscious consumers are willing to pay up to three times as much for the product, priced between USD 10.70-11.50/kg. Bui Bich Lien, Director of Thuy Thien Nhu Farm Ltd, an integrated farm of Orfarm organic brand, said the higher price is justified because organic pigs cost more and take longer to produce.
China forecasts stable pork production through 2020
[23 May 2016]
China will maintain stable pork production in the next five years, targeting an output of 57.6 million tonnes by 2020, compared with 56.71 million tonnes in 2014 and 50.71 million in 2010. In its five-year plan, the Ministry of Agriculture said it also targets to expand the proportion of large-scale pig farms, which are defined as with a stock of more than 500 heads, to 52% in 2020 from 42% in 2014. The plan also identified seven provinces (Hebei, Shandong, Henan, Chongqing, Guangxi, Sichuan and Hainan) as main pork production areas, with potential for production in the northeast provinces (Liaoning, Jilin, Heilongjiang and Inner Mongolia), and in Yunnan and Guizhou in the southwest.
Sierad Produce targets for 3000t of feed
[23 May 2016]
Indonesia’s integrated poultry company Sierad Produce has targeted to produce 300,000 tonnes of feed this year, or around 25,000 tonnes/month. For this, Eko Putro Sandjojo, President Director said it will need around 12,000-15,000 tonnes of corn per month. Amid corn import limitations, Mr Sandjojo said it relies on the supply of local corn from Lampung and East Java. This has also pushed the company to use wheat as a substitute although its price is higher than corn. Mr Sandjojo hopes the government will re-evaluate its policy of limiting corn imports this year to only 1 million tonnes.
Monsanto, Bayer apply for GM corn permits
[23 May 2016]
Monsanto Philippines Inc and Bayer CropScience have applied for permits to propagate and directly use genetically modified (GM) corn and corn seeds, said Merle Palacpac, head of the Bureau of Plant Industry’s National Plant Quarantine Services Division. The GM corn will be used for feed, food and processing. She said Monsanto has filed an application for propagation and four applications for direct use of GM corn, while Bayer applied for direct use or importation. The Philippines implemented new rules on the propagation, importation and use of GM products after the country’s Supreme Court struck down the previous order governing GM products.

Asian Agribiz regional dairy update
[23 May 2016]

Indian dairy firms to export to Russia
India has finally signed a protocol with Russia for export of dairy products to that country. Indian producers may start exports of hard cheese and the first consignment is expected to leave Indian ports by end June. After visiting more than 20 factories and milk procurement facilities in India, only two dairy farms- Parag Milk Foods and Schreiber Dynamix, conformed to Russian phytosanitary standards.

Vinamilk scraps foreign ownership cap
The board of Vietnamese dairy firm Vinamilk has decided to remove its 49% foreign ownership cap, paving the way for an expected flood of interest from overseas investors in a company valued at USD 7.85 billion. VinaCapital’s Chief Investment Officer Andy Ho said the move marks a huge milestone in the privatisation process. “Vinamilk is the country’s largest company by market capitalisation, is ranked as the most valuable brand in Vietnam and continually delivers strong results. This is the first significant state-owned enterprise to completely remove foreign ownership limits, and the start of significant momentum in foreign ownership expansion and privatisation,” he said. VinaCapital holds Vinamilk in two of its funds. In its Vietnam Opportunity Fund and Forum One-VCG Partners Vietnam Fund.

India’s Bamul to have new milk processing plant
With demand for milk increasing at a rate of 6-8% annually in India’s Bengaluru, the Bangalore Cooperative Milk Union (Bamul) is investing USD 64 million to set up a modern facility to process milk and to make other dairy products. The new facility will come up at Kanakapura which is about 60km from Bangalore, in about 18 months. “We will have one fully automated mega dairy where besides processing milk, we will also make products such as cottage cheese and other products,” said A Manju, Animal Husbandry Minister. Bamul sells 2.2 million litres under the Nandini brand in the city which is four-fifths of its market.

US dairy products see bright prospects in Vietnam under TPP
US Agriculture Secretary Tom Vilsack met with Vietnam’s Minister of Agriculture and Rural Development and Minister of Industry and Trade recently to discuss details of the Trans-Pacific Partnership (TPP) agreement.  Under the TPP, all Vietnam’s tariffs on dairy products, currently as high as 20%, will be eliminated within five years. Tariffs on cheese, milk powder and whey will be removed immediately. “Joining TPP, Vietnam’s GDP may increase by 10%. As the economy grows and income increases, consumer demand is also more diversified and sophisticated. The farmers will have more opportunities to satisfy the customers and increase their production scale,” said Mr Vilsack.

Indonesian government to intervene in broiler upstream sector
[20 May 2016]
In a recent coordination meeting on restructuring Indonesia’s broiler industry, the Minister of Coordinating Economics Darmin Nasution said the government should intervene in the upstream sector of the broiler industry. “We have to start preparing the policy for this,” he said. According to Mr Nasution, integrated companies control 95% of the broiler market. Indonesia’s State-Owned Enterprises Minister Rini Soemarmo added: “State-owned enterprises have to join the sector to offset the domination of the integrated companies.” The coordination meeting was a follow up to the alleged cartel in the industry reported by the Business Competition Watchdog Commission (KPPU).
Malayan Flour Mills’ revenue declines on weak poultry sales
[20 May 2016]
Malayan Flour Mills Bhd recorded revenue of USD 571 million for the financial year 2015, almost similar to 2014. Profit for the year however, dropped to USD 10.90 million from USD 20.77 million due to lower margins in the poultry segment and higher loss on equity accounted to a joint venture. The poultry integration business recorded lower revenue mainly due to lower sales. Its operating profit of USD 7.37 million in 2015, was a decrease of 44% from the previous year. Despite this the group said it is still well-positioned to benefit from the synergies derived from an integrated poultry business and will expand to enhance future earnings.
Thai Union Q1 consolidated sales up 9.3%
[20 May 2016]
Thailand’s Thai Union (TU) has posted consolidated sales of USD 871 million in Q1, up 9.3% from the same period last year, driven by its organic growth and the recent acquisition of a 51% stake in Germany’s Rügen Fisch. Moreover, TU said that its Middle East joint venture has begun to show positive results. TU signed a joint venture agreement with a subsidiary of Saudi Arabia's Savola Group last year to expand into the Middle East seafood market. However, TU’s net profit dropped 19% to USD 34.3 million in Q1 from a year ago, hurt by a significant decrease in foreign exchange gain. Thiraphong Chansiri, President and CEO said “TU is on track to achieve its full year target.”
CJ Group to invest USD2.1b in Indonesia
[20 May 2016]
Indonesia and South Korea have signed several business agreements valued at USD 18 billion, according to Franky Sibarani, Head of the Indonesian Investment Coordinating Board. The business agreements also cover the animal feed sector, and for this CJ Group, South Korea’s leading animal feed & food producer, has shown interest to invest around USD 2.1 billion.
Jollibee reports 17.7% rise in net income in Q1
[20 May 2016]
Jollibee Food Corp (JFC) reported a net income of USD 30.1 million for Q1, up 17.7% from the same period last year. In a filing with the Philippine Stock Exchange, the company said system wide sales jumped nearly 15% to USD 739.2 million in Q1 “driven by same store sales growth on a worldwide basis and store network growth of 6.8%.” Meanwhile, JFC’s overseas business posted a 10.5% growth in sales for the period, as its business units performed positively. Sales in the US grew 17.4%, in Southeast Asia and Middle East 32.2% and 1.9% in China.
CP Indonesia to export DOC to Timor Leste
[19 May 2016]
Timor Leste has agreed to open its market for (broiler & layer) DOC from Indonesia. Charoen Pokphand (CP) Indonesia is now in talks with the government of Timor Leste for the export. Desianto Budi Utomo, Vice President of Government & Academic Liaison of CP Indonesia said the company is now discussing technical aspects and price with the Timor Leste counterparts. He added that the company has been exploring the potential market of DOC in the country since last year. CP Indonesia plans to export its DOC from its facility in East Nusa Tenggara.
Bangkok Ranch's Q1 net profit contracts 48%
[19 May 2016]
Thailand's Bangkok Ranch (BR) has reported a net profit of USD 2.65 million in Q1, down 48% from the same period last year, hurt by lower sales revenue and rising expenses. The company’s sales revenue declined 7% year-on-year to USD 53.87 million in Q1 due to intense duck price competition. Although prices improved in Q1 the selling price was not up to last year’s level, BR said in a statement. Moreover, the consolidated selling and administrative expenses rose 12% year-on-year to USD 5.2 million in Q1 due mainly to an increase in sales and marketing expenses. BR expects the duck industry to improve in 2016 and price competition to ease.
Malaysian government mulls labelling feed for antibiotics
[19 May 2016]
The Malaysian government is studying the need for livestock industry players to label the types of antibiotics in animal feed to avoid misuse. Veterinary Services Department Director, General Datuk Dr Kamarudin Md Isa said his department and industry players are now discussing implementation. He said the Animal Food Act 2009 permitted control on the use of antibiotics in livestock feed. “We can arrest and charge livestock farmers under our monitoring system, if the types of antibiotics used are prohibited,” he said. The move was due to anxiety among consumers on the use of antibiotics in livestock production. Dr Kamarudin said antibiotics are used to treat sick animals, prevent disease and encourage growth but they should be used responsibly.

Web special
Adjective added products gain ground in Asia
[19 May 2016]

According to David Hughes, Emeritus Professor of Food Marketing at Imperial College London, food integrity issues will be of major concerns. He sees this trend in Asia too. ‘Adjective added’ animal protein products will be in demand, such as antibiotics & hormone-free meat and selenium enriched milk. In this web special, the Asian Agribiz team looks at trends and markets for ‘adjective added’ animal protein products in Asian countries.

Bioceleng to supply antibiotic-free pigs for Ubud Food Festival
Indonesia’s Bioceleng Farm in Payangan village, Bali has been chosen as the supplier of antibiotic-free pigs for the Ubud Food Festival from May 27-29, 2016 in Bali. Romeo Alfonso, owner told Asian Agribiz that: “It’s a new milestone for my farm after an order from a five-star hotel in Jakarta early this year.” Mr Alfonso said he believes this achievement is because his farm stays true to its commitment to produce AGP-free pigs under a semi-free range model. Nick Kennedy, Chef from Amandari Hotel in Ubud who inspected the farm for the food festival , said the farm is clean, with free-roaming Hampshire pigs.

Sales of Kee Song’s Lacto Chicken up by 15%
Kee Song’s Lacto Chicken sales in Malaysia is up 15% this year compared to last year. The company said this is because it has successfully reached out to a number of customers in face-to-face encounters. “We produce zero antibiotics chicken,” said Wong Nai Hon, Assistant General Manager, Lucky Poultry (M) Sdn Bhd, the Sales and Marketing arm of Meng Kee Poultry that produces Kee Song chicken. “We use lactobacillus produced using our own technology to keep our birds healthy and our farm environment clean.”

Anugerah Cipta plans to produce probiotic chicken
Triggered by the success of its ecosystem balance concept and probiotic products for layers, Indonesia's Anugerah Cipta plans to produce probiotic chicken on a commercial scale. Ani Juwita, Director told Asian Agribiz that the company has done trials on carcass quality. “The results were promising since the carcass contained less water, so it is good for meat processors that produce chicken fillet,” she said. The chicken will will be raised without antibiotics - only probiotics and good farm management practices.

Huaying to launch selenium-enriched duck products
China’s leading duck processor Henan Huaying Agricultural Development Co said it is planning to build a complex in Fengcheng in east China’s Jiangxi province, to tap into the city’s rich resource of selenium. “We will take full advantage of the selenium resources in Fengcheng and launch Huaying-branded premium duck products in the future,” the company said. The complex will include a duck slaughterhouse with an annual capacity of 20 million birds, a 300,000-tonne feedmill to produce selenium-enriched feed, as well as a 20,000-tonne cooked products factory. Total costs of the complex is estimated at USD 71 million.

No standards yet in Indonesia for organic animal protein products
There are not standards yet for organic animal protein products in Indonesia, according to Christopher Emille Jayanata, Chairman of the Indonesian Organic Community (KOI). “So no one can claim his/her animal protein products are organic,” he told Asian Agribiz. “Following the standards applied in developed countries is also not easy since the US and EU apply different standards.” However, some important points of organic animal protein products are the products have to be free from inorganic materials, free from GMO and free from pesticide.

Grass-fed cattle farmers team up with meat, dairy processors
Some members of the Indonesian Organic Community (KOI) are beef and dairy cattle farmers in Jogjakarta and West Java. Christopher Emille Jayanata told Asian Agribiz that they do not use hormones, vitamins, AGP and concentrates for their cattle. “They only feed their cattle with special grass with high nutrition content.” To help the farmers market their products, KOI links them with othermembers that produce processed meat and dairy products. “Together they can reach a wider market,” he said.

Pronic to increase its probiotic chicken production
Probio Chicken is a leading brand of probiotic dressed bird in Indonesia produced by Pronic Indonesia. Atanasius Harpen Tulis, General Manager told Asian Agribiz that the company plans to increase its probiotic chicken by 30,000 carcasses per month to meet growing demand. Each carcass, weighing around 1kg, is sold at around USD 3.74, or 40% higher than the price of regular broiler. Probio Chicken is raised for 28 days with good farming practices and without the use of antibiotics and hormones. Instead the birds are fed with probiotics and organic substances supplied through feed and water.

Thaifoods Group sees profit in Q1
[18 May 2016]
Thailand’s Thaifoods Group (TFG) recorded a net profit of USD 5.67 million in Q1, compared to a loss of USD 13.57 million last year, mainly to an increase in chicken and swine prices which rose to USD 1/kg and USD 1.74/kg respectively in Q1. The company’s sales revenue climbed 8.3% year-on-year to USD 124.67 million. TFG’s sales volume of swine increased from 17,164.6 tonnes (2015) to 18,517.9 tonnes in Q1 2016 due to additional capacity and productivity. Meanwhile, TFG’s sales volume of chicken decreased from 76,023.4 tonnes to 72,910.6 tonnes in Q1 2016. The company reduced its chicken meat production in Kanchanaburi province due to cost management reasons.
Indonesia open to MDM imports
[18 May 2016]
Indonesia’s Minister of Industry Saleh Husin has proposed to allow imports of (chicken) mechanically deboned meat (MDM) to support meat processors in the country to help them raise their competitiveness. The country has been closed to imports of the product since 2013. On the other hand, the local supply of MDM is controlled by three big chicken producers. MDM is used mainly for the production of sausages. “In the local market, the price of MDM is around USD 1.35/kg. Meanwhile, the price of imported MDM from the Netherlands is only around USD 0.75/kg,” Mr Husin said. He proposed an allocation of MDM imports of 6000-6500 tonnes a year.
El Niño pulls down corn production
18 May 2016]
Philippine corn production fell 19% to 1.92 million tonnes in Q1 this year from 2.37 million tonnes a year ago as the drought caused by the El Niño phenomenon forced some farmers to delay planting or to shift crops, the Philippine Statistics Authority (PSA) said in its quarterly agriculture performance report. The PSA also noted that some farmers left their field in fallow because of insufficient water supply. Meanwhile, in an earlier report, the PSA said that around 260,000 ha or 72.2% of the planting intentions for the April-June 2016 harvests have already been planted.
Egg price in Namakkal hits all-time high
[18 May 2016]
Despite a considerable drop in production as well as consumption due to hot summer in India, the farm gate price of eggs in Namakkal has been steadily increasing reaching USD 0.06/unit last week. This was the highest price recorded in the history of the Namakkal poultry sector, sources said. Notwithstanding the impact of a bird flu outbreak in Karnataka, the National Egg Coordination Committee, Namakkal Zone, continued to raise price since the beginning of May. Sources indicated that current price hike was aimed at inflating the rate to get a competitive price when the tender for eggs supply for government schools in Tamil Nadu is finalised soon.
KPPU pushes Berdikari to venture into broiler industry
[18 May 2016]
Following the allegedly broiler business cartel in the country, Indonesia’s Business Competition Watchdog Commission (KPPU) is edging state-owned integrated beef cattle company PT Berdikari to venture into the broiler industry. Syarkawi Rauf, KPPU Chairman said: “We expect Berdikari to venture into the upstream sector by producing PS, DOC and feed. The company is also expected to partner with independent farmers in broiler producing regions.” Mr Rauf believes this concept will strengthen independent farmers in the business. “We also want to push the big players to eye export markets.”
Tamil Nadu bans poultry products from Kerala, Karnataka over bird flu
[18 May 2016]
Close on the heels of India’s Karnataka sounding a bird flu alert, the animal husbandry department of Tamil Nadu has banned all poultry products, including chicken, turkey, duck, duck manure and chicken feed, from Kerala and Karnataka. It also has taken steps to stop the flow of poultry products from these states through the Tamil Nadu boundary. At least 23,000 birds have died from bird flu in Karnataka last week.
Pork prices rise in Thailand due to drought
[17 May 2016]
Surachai Sutthitham, President of the Swine Raisers Association of Thailand, told Asian Agribiz that pork prices have recently risen due to the drought in Thailand. Live pig prices are currently at USD 2.12/kg, compared to USD 1.81-1.87/kg early this year. “Pigs now grow more slowly as feed intake is low due to heat stress, he said, adding that they become weak and are more susceptible to diseases. Some farmers have found foot-and-mouth disease in pigs in the western region of Thailand. Hence, farmers see rising production costs.
InVivo buys Philippine feed manufacturer
[17 May 2016]
InVivo NSA has acquired a key feed producer in the Philippines, Popular Feedmill Corp. This strengthens InVivo’s presence in Asia where it already holds strong positions in Vietnam, Indonesia, China, India, Cambodia, Myanmar and Thailand. Popular has two feed plants in the Philippines producing about 150,000 tonnes of animal feed annually. Hubert de Roquefeuil, CEO of InVivo NSA said: "This acquisition confirms our willingness to develop ourg markets in Southeast Asia. It will also allow us to diversify and strengthen our revenue sources to build an even more efficient and resilient corporate business model.”
Indonesia releases permits for cattle imports
[17 May 2016]
Indonesia has released permits for cattle imports for the May to August 2016 period. The government has recommended the import of 250,000 heads. According to Dr Ross Ainsworth, Beef Central columnist, the release of official documentation was held up by bureaucratic problems, meaning exporters with ships ready to sail were once again forced to endure additional demurrage fees and cattle feeding charges that add further expense to the cost of landing cattle in Indonesia. “These additional costs are eventually passed onto the customer in one way or another,” he said.
India’s buffalo meat exports down to USD4b
[17 May 2016]
India’s buffalo meat exports dropped to USD 4 billion in 2015-16 from USD 4.78 billion in 2014-15. From April 2015-February 2016, buffalo meat exports declined 15% to USD 3.74 billion, said Nirmala Sitharaman, India’s Commerce and Industry Minister. “There decline is attributed to restriction of imports through Vietnam by China, price competitiveness due to devaluation of Brazilian currency, and turmoil in importing markets such as Syria and Yemen,” Ms Sitharaman said. However, Adi Godrej, Chairman of India’s Godrej Group said the beef bans in certain states in the country are hurting the economy and affecting rural growth.
Hong Kong bans poultry products from Karnataka’s Bidar
[17 May 2016]
Hong Kong’s Centre for Food Safety (CFS) recently announced that in view of a notification from the OIE about an outbreak of highly pathogenic H5N1 avian influenza in Bidar district, Karnataka state of India, it has banned the import of poultry meat and products including poultry eggs to protect public health in Hong Kong. A CFS spokesman said that Hong Kong did not import any poultry meat or poultry eggs from India last year and in the first three months of this year. “The CFS has contacted the Indian authorities over the issue and will closely monitor information issued by the OIE on avian influenza outbreaks in the country,” the spokesman said.
Sawit Sumbermas starts palm-beef cattle integration
[17 May 2016]
Indonesia’s Sawit Sumbermas Sarana has started to integrate its palm plantation in Central Kalimantan with the farming of 5000 heads of beef cattle breeders under a semi-intensive system. Rimbun Situmorang, President Director said the beef cattle farming will see additional revenue for the company. The company has trialled the integration concept for two years and is convinced that this concept will be successful in the future. “We imported the breeders from Bali and Australia. We will fatten the offspring then sell them as finisher cattle,” Mr Situmorang said.
DaChan Food expands branded business amid industry downturn
[16 May 2016]
China's DaChan Food (Asia) Ltd said its percentage of branded raw meat and cooked products climbed to 43% by end 2015 from 35% at the beginning of the year. This pushed up the company’s gross profit despite an industry downturn, as China’s white-feather chicken meat prices fell to a five-year low in 2015. Da Chan cut its slaughtering capacity by 40% last year to control operating loss, though its full-year loss expanded to USD 23.6 million from USD 16.7 million a year earlier. Turnover fell 22% to USD 1.37 billion. DaChan Food mainly sells chilled/frozen chicken and processed meat under the brand ‘Sister’s Kitchen', in addition to operating feedmills in China, Vietnam and Malaysia.
Philippine corn prices up on El Niño
[16 May 2016]
Average farm price of local yellow corn in the Philippines is now at USD 0.32/kg from only USD 0.27/kg about two weeks ago. The rise in price has been blamed on the drought caused by the El Niño phenomenon, which continues to hit major corn production areas in the country, affecting yield and supply. According to the Philippine Statistics Authority, corn production in Q1 is likely to only reach only 2.1 million tonnes, 12.4% below the year ago figure, as both harvest area and yield are also seen to drop. The government estimates that corn farmers have already lost some USD 60 million from the dry spell.
Thailand’s GFPT Q1 net profit rises 26%
[16 May 2016]
GFPT has reported a 26% gain in Q1 net profit to USD 7.76 million, helped by an increase in sales revenue. GFPT posted total revenue of USD 110.12 million in Q1, up 1.17% from a year ago, backed by a rise in chicken processing revenue. GFPT’s chicken processing sales rose 9.73% year-on-year to USD 46.15 million. Revenue from direct and indirect chicken exports increased by 16.02% and 12.25% respectively. Revenue from chicken processing segment contributed 41.91% to GFPT’s total sales. However, GFPT’s feed revenue declined 9.57% in Q1, hurt mainly by lower shrimp feed sales volume. The company said in a statement that farmers reduced shrimp production due to the drought in Thailand.
Beijing releases 3m kg of pork reserve to stem price increase
[16 May 2016]
Chinese news agency Xinhua reported that Beijing has released 3.05 million kg of frozen pork from its reserves into the market in an effort to ease pork supply pressure and avoid a price surge. Since the Chinese New Year at the end of January, pork prices have been rising on tight supply. Raw pork prices surged by 50.6% month on month in April, according to the region’s municipal government. The move, which will last until July 4, will see 50,000 kg of pork sold for a small sum to 121 supermarkets daily. The government will subsidise up to USD 1.40/kg to encourage vendors to decrease prices. Slaughterhouses are also being encouraged to increase pork supply though subsidies.
Thousands of pigs in India’s Mizoram die due to PRRS
[16 May 2016]
Around 2379 pigs in Champhai district of India’s Mizoram state bordering Myanmar in early May died due to porcine reproductive and respiratory syndrome (PRRS), according to the Champhai Pig Farmers Association. The association believes the pigs had been infected by the virus from pigs imported from Myanmar. K Zamlova, an official of the association said that there are more than 5000 pigs still surviving in the district. Dr Lalchungunga Pudaite, a veterinary officer in the district said some of the infected pigs have responded to antibiotics.
East Nusa Tenggara continues to increase corn production
[16 May 2016]
A sustainable program facilitated by Indonesia’s Agriculture Ministry has helped local farmers in East Manggarai, East Nusa Tenggara province to enjoy a great harvest of hybrid corn they planted on 250ha of land. Robertus Ongo, Head of Food Resilience of Agriculture Agency in the province said the administration has named the province a ‘corn producing area’. Mr Ongo said corn production areas in the province have continued to increase. As of 2016, there is 81,000ha of corn farms in 23 regencies and municipalities across the province. “Amid a long dry spell caused by uncertain weather, farmers in all villages have continued to increase corn planting to support food resilience,” he said.
Huaying to process selenium-enriched duck
[13 May 2016]
China’s leading duck processor Henan Huaying Agricultural Development Co said it plans to process selenium-enriched duck as it builds a USD 71 million production complex that includes a duck slaughterhouse, a feedmill and a further processing plant in Fengcheng in China’s Jiangxi province. Construction on the duck slaughterhouse, with an annual capacity of 20 million birds, is set to begin in July, and is expected to last two years. The 300,000-tonne capacity feedmill will be built from August 2018 to July 2019 with the following two years planned for the construction of the 20,000-tonne further processing plant.
Thailand’s CPF Q1 net profit up 27%
[13 May 2016]
Charoen Pokphand Foods (CPF) has reported a 27% rise in Q1 net profit to USD 106.49 million, driven by the recovery of its shrimp business in Thailand, rising livestock prices and improved operations in Vietnam. The company’s consolidated revenue rose 10% to USD 2.99 billion in Q1, backed by a 12% gain in sales from overseas operation, which contributed 60% to its total sales. President and CEO Adirek Sripratak said that CPF, in partnership with Japan's Itochu Corp, is now distributing its processed chicken to Japanese convenience stores Family Mart and Circle K. He added that CPF aims to achieve a 10-15% revenue growth this year. Meanwhile, the company has set its 5-year investment budget at USD 1.41 billion, excluding mergers and acquisitions.
Sundaily corners largest market share in China with healthy eggs
[13 May 2016]
Sundaily Farm, a speciality egg producer in southwest China's Sichuan province, said it has the biggest share in China’s fresh egg market for the fourth consecutive year. Founded in 2001, Sundaily owns seven layer farms with a total population of 4.5 million birds, including some 800,000 sets of breeders developed by the company. Its products range from free-range organic eggs to multigrain-fed eggs, Omega-3 eggs, as well as vegetarian diet-fed eggs said to have lower cholesterol.
San Miguel Pure Foods income up 34% in Q1
[13 May 2016]
Philippines’ San Miguel Pure Foods Co Inc reported a net income of USD 25.8 million in the first quarter of this year up 34% year-on-year, while consolidated revenues went up 4% to USD 558.9 million. The company’s branded food business, which includes processed meats, posted a 5% increase in revenue due to better product mix, improved efficiencies and lower raw material prices.
Global sales of processed food push CJ Cheiljedang's Q1 sales up
[13 May 2016]
South Korea’s CJ Cheiljedang Corp saw its earnings in Q1 up year-on-year as robust global sales in processed food compensated for poor demand at home. The company said its net profit jumped 37.1% year-on-year to USD 111.4 million while operating profit edged up 0.2% to USD 157 million. Sales gained 9.8% to USD 1.8 billion. The food maker shipped 50% more processed foods abroad while its overseas shipment of bioengineered food surged 72% from a year ago, sending the share of overseas sales against total sales to 39.3% in the first quarter. Flagship products, including ready-to-eat products under the brand Bibigo also fared well with sales up 10.6% to USD 993 million.
Local company to supply PRRS vaccine in Vietnam
[12 May 2016]
Beginning this year, the Pharmaceutical and Veterinary Material JSC (Hanvet), the first and only local producer of PRRS vaccine in Vietnam, will supply the vaccines to the Department of Animal Health and farmers throughout the country. This means Vietnam will no longer be dependent on imported vaccines, Tran Van Khanh, Vice Director of Hanvet's Vaccine Factory told Asian Agribiz, adding that the company also aims to export its product throughout the Asean region. In October this year, Hanvet will inaugurate a new vaccine manufacturing plant. Nationally certified and equipped with the latest technology, the plant can supply 500 million doses of poultry vaccines and 100 million doses of swine and cattle vaccines per year.
Egg prices in Thailand edge up on falling supply
[12 May 2016]
Thailand’s egg prices have risen slightly this year due to falling egg supply, Manoch Chootubtim, Chief Advisor of the Layer Farmers Association told Asian Agribiz. Prices of mixed sizes of eggs are currently at USD 0.079/egg, up from the 2015 average of USD 0.068. Because of this, many farmers have reduced production and some even stopped raising layers. “It is a market mechanism,” he explained, adding that “egg prices will likely climb to around USD 0.085/egg in the second half of this year.” However, he said that when cooler weather sets in, egg production and supply will rise again.
Philippine fish processor to beef up operations
[12 May 2016]
Alliance Select foods International Inc, a Philippine-based processor and exporter of tuna and salmon products, will reallocate USD 2 million to beef up its operations in Southern Philippines. The fund is part of the money generated from a rights offer in 2015, and will be used to finance fish purchases and other materials for its facility in General Santos City. Originally, the money was to be invested in PT Van De Zee, an Indonesia-based fishing company owned by Alliance, but the former stopped operation this year after Indonesia’s Ministry of Fisheries revoked its fishing license.
China Q1 pork, beef imports exceed 90%
[12 May 2016]
China’s imports of pork and beef rose more than 90% in Q1 2016, while mutton imports saw a slight decline, according to the Ministry of Agriculture. Pork imports totalled 286,000 tonnes during the period, up 90.3% from a year earlier, while imports of pork offal rose 48.8% to 287,000 tonnes. Beef imports also jumped 90.5% to 139,000 tonnes, but mutton imports fell 2.9% year-on-year at 64,000 tonnes, the ministry said. Top pork suppliers are Germany, Spain and the US, while beef suppliers were led by Brazil, Australia and Uruguay.
DBE Gurney director raises stake to 13%
[12 May 2016]
The Managing Director of Malaysian poultry integrator DBE Gurney Resources Bhd, Datuk Alex Ding Seng Huat has raised his direct shareholding in the company to 13.08%, from 9.9% previously. DBE Gurney said Datuk Ding made an off-market acquisition of 25 million shares at four sen apiece. In a separate filing to the stock exchange, the company said its Executive Chairman Datuk Ding Chong Chow has ceased to be its substantial shareholder after an off-market disposal of 28.52 million shares. The disposal, which was transacted at four sen per share as well, has resulted in Datuk Chong Chow’s direct shareholding being reduced to a 2.05% stake.
Novus to beef up US output of methionine
[12 May 2016]
Novus International, a unit of Japanese trading house Mitsui Chemicals Inc, will boost US production of methionine by building a new plant by 2020. The facility will open in either Texas or Louisiana, which both face the Gulf of Mexico. Novus currently has an annual capacity of 320,000 tonnes at its existing plant in Texas, but the new plant, which will cost USD 738 million, will increase this nearly 40% to 440,000 tonnes. Novus will also strengthen production of enzymes and minerals, and will update a Mexican plant to start producing minerals next year. The plan also calls for expanding its offerings of amino acids for swine, shrimp and salmon.

Onsite from IFFA 2016 in Frankfurt, Germany with CONNY PEREIRA
[11 May 2016]

Healthy offerings from Van Hees
With four key pillars presented at the show, Van Hees "Less is more" stood out as a trend that focuses on the reduction of ingredients in food, such as fat, sugar and salt as well as ingredients, such as glutamate, gluten, allergens or preservatives. Two products, Vantasia Atacama and Vantasia Panier stood out. In the former salts from the Atacama Desert which has inherently low sodium content but with the same flavour profile features strongly. According to Carsten Brinck, Head of Marketing, Vantasia Panier offers customers breaded meat specialties, with gluten-free breadcrumbs that are easy to use and the guarantee a constant quality in the end product.

GEA launches third generation of CookStar
Of the over 10 systems on GEA's stand, the CookStar  was a winner with its ability to use steam, hot air, roasting, smoking and drying in any combination for spectacular industrial Cooking. Launched 25 years ago as the world’s first double-spiral industrial oven, GEA's CookStar has evolved into today’s three-phase cooking solution which includes a booster / turbo impingement zone between the main oven sections. This extra zone uses high velocity, vertically flowing air to roast, brown or dry the product’s surface. Other incremental improvements are in terms of performance, versatility, energy efficiency, food safety, cleaning and cost of ownership.

Middleby introduces high performance bacon slicer
Middleby Worldwide which has nine meat processing brands in its fold has been busy with single as well as turnkey installations in Asia. The company introduced its IBS 2000 Select Bacon Slicer at IFFA 2016. It is said to offer maximum slicing performance for retail and food service bacon applications and unprecedented throughput. Inbuilt vision technology maximises on-weights while minimising giveaway.

Multivac expects growth markets to shift
Apart from presenting innovative packaging solutions and labelling and inspection systems for hand producers and industrial-scale meat processors, Multivac projected its leadership in packaging with a 19% growth in turnover, over the previous year. Hans-Joachim Boekstegers and Guido Spix, Directors and CEO and CTO respectively of Multivac spoke of developmental plans and a new Logistics Centre currently under construction in Wolfertschwenden. Both directors expect growth markets will shift over the medium term from Europe and the USA to Asia, South America and Africa.

Chinese pork buyers scramble for supply at SIAL Shanghai
[11 May 2016]
Chinese pork buyers mobbed export representatives from North America, South America and Europe at SIAL China in Shanghai, scrambling to assure access to pork supplies in a tightening market.  A wall of Chinese traders surrounded export representatives as soon as the trade fair opened on May 5, with queues of anxious buyers extending down the hallways. Chinese pork prices have been rising steadily since February, with the wholesale price reaching a near record USD4.08/kg). Meanwhile, an EU assessment last week suggested European production will fall in the second half of the year, and the prospect of tighter international supplies drove traders to lock up future contracts in hopes of taking advantage of high domestic prices.
Sausages are Vissan’s staple products
[11 May 2016]
In Vietnam, Vissan’s sausage making business accounted for about 60%, or roughly USD 24.4 million of the company’s total profits for the nine months of financial year 2015. In 2014 revenues, earned from sausages only accounted for 25.4% of Vissan’s total revenue. “For Vissan, sausages are a staple product contributing significantly to the profits of the company,” General Director Van Duc Muoi said. He added that Vissan is the leader in providing packaged sterilised sausages, holding 65% of the domestic sausages market. As of early March, the company’s products were already available in 223 supermarkets, 703 convenience stores, 59 showrooms and a wide range of distributors and agents. In addition, its sausages are also exported to Laos and Cambodia.
CPF sees good prospects for 2016
[11 May 2016]
Thailand’s Charoen Pokphand Foods (CPF) sees a bright year ahead for its livestock and shrimp businesses. Citing Adirek Sripratak, President and CEO of CPF, Bangkokbiznews reported that the company expects a downward trend in livestock and aquaculture feed prices in the first half of this year. Meanwhile, with countries such as China, Vietnam and Thailand facing pork shortage, CPF also sees an upward trend in livestock prices. Mr Adirek also said the firm is eyeing more potential acquisitions overseas.

Onsite from IFFA 2016 in Frankfurt, Germany with ARIEF FACHRUDIN
[10 May 2016]

IFFA, the world’s leading trade fair for the meat industry, opened its doors to a record number of 1027 exhibitors, up 6% from 2013. They exhibitors, which include market leaders, represent some 50 countries and showcase innovative and creative solutions for the meat industry’s entire process chain: from slaughtering and processing to packaging and sales.

Marel promotes DeboFlex
Marel promoted DeboFlex, a new solution for deboning pork fore-ends and legs. “Current pork deboning technology is based primarily on pace lines where products are transported on a belt in a random, sometimes chaotic flow, and worked on by highly skilled staff,” said Dorthe Christensen, Marketing Manager for Red Meat. “DeboFlex uses an overhead conveyor fitted with special rotatable carriers for gripping fore-ends or legs, which transports them in a controlled flow past workstation. The deboning process is split into simpler individual tasks with a dedicated workstation for each task.” DeboFlex promises lower labour costs, higher yield, better quality and longer shelf life.
Handtmann launches new vacuum filler series
Handtmann launched its new VF 800 vacuum filler series for medium-scale and industrial producers. The series’ main features include state-of-the-art and future-proof technology and quality down to the last detail, said Uwe Keßler, Sales Director. “This series has a new hygienic design, coupled with practical advantages in terms of handling and ergonomics.” A new, flexible configuration of the performance rating and modularity of the series is based on adapting the systems in line with today’s production requirements: flexible and quick performance alignment minimises the time needed to respond to production conditions and parameters which have been changed at short notice.
Poly-clip shows off automatic double-clipper
Poly-clip System introduced FCA 80, its new automatic double clipper that fits the needs of the Asian market. According to Mario Blass, Application Technology and Service International, the FCA 80, made from stainless steel, closes all fibrous and collagen casings up to a calibre of 100mm and plastic casings up to 160mm. “The machine features easy clipping optimised to the essentials, highest productivity adjustable in three speed levels, functional controls, and ergonomic handling for reloading of casing without swinging out the clip head,” Mr Blass explained.

Fessmann showcases new F-loader
Fessmann added a new complete automatic loading system called the F-loader on its multifunctional continuous system TF4000 which combines the basic elements of meat production, including drying, smoking, cooking and cooling. Sales Director Hans Heppner said the F-loader is suitable for various types of casings and different sausage lengths, and has a fully automatic stick management. Other selling points include labour reduction, productivity improvement and operating costs reduction.

Kalle presents clean-label casings
Kalle showcased its first ever range of clean-label casings which were developed in response to changing consumer preferences. Olaf de Wit, Director of Global Business Development said these new value-added products can transfer smoke, colour and/or flavouring directly to the filling surface without the use of preservatives or artificial colouring. “They are also entirely allergen-free,” he added. The clean-label casings bring the same efficiency benefits to the sausage production process as the company’s existing value-added casings.

Indonesia could import 600,000 heads of Australian cattle
[10 May 2016]
Speculation is rife that the Indonesian government will import of 250,000 heads of cattle for the next trimester. The government changed the import quota system this year to trimestral, rather than quarterly, announcements. Cameron Hall, Elders Manager of Livestock Exports said rumours about importation are now circulating, but declined to speculate on an actual number pending the official government announcement. However, Australian industry officials see potential export of 600,000 heads of cattle by end-2016.
DA approves import of day-old chicks from Spain
[10 May 2016]
Spanish company Iberica de Tecnologia Avicola (Ibertec), a sister company of Germany’s Lohmann Tierzucht, can now export day-old chicks and hatching eggs to the Philippines. Agriculture Secretary Proceso Alcala issued an Administrative Order approving the company’s export after the Bureau of Animal Industry inspected Ibertec’s farm in Valladolid, Spain and found “no imminent risk...to the Philippines based on the current highly pathogenic avian influenza virus-free status of Spain.”
Poultry processing equipment market to reach USD 3.83b
[10 May 2016]
The poultry processing equipment market is projected to reach USD 3.83 billion by 2020, at a CAGR of 4.7% from 2015 to 2020. According to MarketWatch, factors such as increased consumption of processed food, government support for the use of equipment in developing countries, demand for food safety, safety of workers, environment and sustainability, presence of small and medium enterprises in developing countries, rising raw material costs, and international trade rules continue to drive the market. Asia Pacific is seen to be the fastest growing market due to economic growth and the shift in consumer preference towards value-added food.
Chicken prices in the Philippines up
[09 May 2016]
Farm prices of chicken in the Philippines, which dropped to an average of about USD 1.31/kg in the first week of April, rallied to average USD 1.95/kg by the end of the month. United Broiler Raisers Association President Elias Jose Inciong told Asian Agribiz that the rise in prices is likely the result of the run up to the national elections on May 9, as well as in anticipation of town feasts around the country, which peaks this month. Whether prices will hold after the elections and the festive season remains to be seen. “It may take 1-2 weeks before we see how prices will move after the elections,” Mr Inciong said.
Japfa’s Q1 earnings touch USD23.4m
[09 May 2016]
Japfa’s earnings more than tripled to USD 23.4 million in the first quarter ended March 31, 2016, from USD 6.9 million a year ago. Revenue rose 6% to USD 717.7 million. The improved bottom line was driven by its 58.7% owned subsidiary, PT Japfa Comfeed Indonesia’s poultry business, which rebounded from a loss a year ago, the company said. The higher profitability was also due to the company’s dairy operations in China, which generated higher milk volumes and yields, despite lower raw milk prices. Japfa said it expects feed raw material costs to soften and raw milk prices in China to remain sluggish in the near term.
Myanmar reports first bird flu outbreak for the year
[09 May 2016]
An outbreak of highly pathogenic avian influenza has been reported on a layer farm in Myanmar’s Sagaing Division, Monya Township. Nearly 500 birds were destroyed by an H5 serotype. The outbreak was attributed to a lack of biosecurity on the farm. The Irrawaddy reported that since the outbreak over 20,000 chickens in the area have been killed and poultry trading has been restricted. The same area was also apparently hit by avian flu in early 2015, but Myanmar has not suffered from any further outbreaks until now.
India’s BAU unveils new chicken breed
[09 May 2016]
India’s Birsa Agricultural University (BAU) recently unveiled Jharsim, a new breed of chicken that is said to combine fast growth with adaptability to India’s environment and higher egg production than the normal desi hen. While the desi variety lays about 60 eggs in 54 weeks, each Jharsim hen will lay 110-130 eggs in 72 weeks. Jharsim is a crossbreed of desi and broiler varieties, further crossed with the imported Durham Red breed. “It was possible for BAU scientists to develop the new Jharsim breed only with help of continuous feedback from farmers across Jharkhand state,” said George John, BAU Vice Chancellor.
Fast Food Indonesia’s revenue grows 6.32%
[09 May 2016]
The revenue of Fast Food Indonesia, the operator of KFC in the country, grew 6.32% to around USD 339 million in 2015 despite dismal economic growth in the country. However, its net profit fell 32% to around USD 8 million. During 2015 it opened 15 new stores, 20 new in-line stores, seven new stores inside shopping malls, one new food court store and four KFC boxes. This rather aggressive expansion strategy caused additional costs that impacted on net profit. Analysts expect that the company will be able to raise the average selling price by 2.4% in 2016 amid the improving macroeconomic context.
Philippines market demand, weather calls for smaller birds
[06 May 2016]
Philippine poultry producers are harvesting smaller birds in response to market demand and to help mitigate the effects of the hot weather. “Many producers are harvesting at about 1.1kg for two reasons,” United Broiler Raisers Association President Elias Jose Inciong explained to Asian Agribiz. “First, the market segment that demands smaller birds, like those who produce lechon manok (roasted chicken), is growing, so raisers are filling their demand. Also, the high heat index is making stroke a real possibility if you grow your birds bigger.” He added that producers are now bracing for the third quarter, when weather conditions typically impact production negatively.
PurelyFresh gives Singapore customers the butcher experience
[06 May 2016]
Singapore’s PurelyFresh online retailer, which entered the market in July 2014, supplies a large range of fresh produce from their butchers and fishmongers. To add value it also provides customisation services for customers who want their fish sliced, pork minced or chicken portioned to a certain size. “Our professional butchers can prepare the meat according to customers’ requirements,” Desmond Khoo, Founder and CEO, told Asian Agribiz. On its long-term growth plans Mr Khoo said: “PurelyFresh is planning to expand in Asia, with Hong Kong and Taiwan as our first few stops”.
Shuanghui gains momentum with new products
[06 May 2016]
Henan Shuanghui Investment & Development Co, China’s largest pork company and an affiliate to Smithfield Foods of the US, said first-quarter sales of its packaged meat products rose nearly 8% year-on-year to 0.37 million tonnes, posting its first growth since Q2 2014. In Q1 2016, Shuanghui launched Smithfield-branded products manufactured at its American-style packaged meat factory in Zhengzhou. The company slaughtered 3.48 million hogs during the quarter, up 3% from a year earlier. Sale of fresh pork sales rose 19.7% to 0.34 million tonnes.
Indonesia’ corn production to grow to 9.4mt
[06 May 2016]
Indonesian corn production is expected to increase to 9.4 million tonnes in 2015/16 compared to 9 million tonnes in 2014/15 due to corn planted area increasing at the expense of paddy plantings, according to a USDA GAIN report. Despite higher corn demand, current import restrictions will reduce corn imports to 3 million tonnes in 2015/16 compared to 3.38 million tonnes in 2014/15, the report said. The report also estimated that Indonesian wheat imports will increase by 1.6% to 7.6 million tonnes in 2015/16 compared to 2014/15.
South Korea to inspect Irish meat plants
[06 May 2016]
A delegation from South Korea is expected to conduct a systems audit visit regarding Irish beef access to the country in May, said Ireland’s Minister for Agriculture, Simon Coveney. The minister was responding to a parliamentary question on new markets for Irish products. It is understood that the audit visit will be similar to that of the Chinese audit visit which took place earlier this year and that the food safety standards of meat plants will be examined. Currently, Ireland exports beef to the US, Japan, the Philippines, Canada, Singapore, Egypt, Iran and Oman.
Lifting of meat ban to strengthen Indonesia-India ties
[06 May 2016]
Indonesia’s President’s recent revocation of a meat ban has directed attention once again to the vast potential of trade and investment that remains dormant between India and Indonesia. Allowing bovine meat to be imported from regions free of foot and mouth disease, regardless of a country’s status overall, comes as a big positive for countries like India, which has been eyeing the Indonesian market since 1999. With Ramadan also around the corner, many are hopeful that this will end price fluctuations.
Vietnam firm develops high lean meat pig breed
[05 May 2016]
Lac Ve Breeding Pig Co Ltd, a subsidiary of Vietnam's Dabaco Group, has developed a new pig breed with good conformation, fast growth rate, good feed conversion ratio and most importantly, high lean meat percentage. Big-3, as the new breed is called, is a cross of “DLY (DuDa super-meat x Landrace-Yorkshire). DuDa is Dabaco's outstanding product, enhanced quality selected from Taiwanese Duroc breed,” said Le Thi Minh Thu, Director at Lac Ve. She added that Big-3’s lean meat percentage is about 62-65%. Beginning this month, the company will supply 5500-6000 Big-3 pigs to the market monthly.
Indonesia’s beef consumption set to more than double
[05 May 2016]
Beef consumption in Indonesia is set to more than double as the middle class continues to grow and the government encourages people to eat more meat. Indonesian Ambassador to Australia, Nadjib Riphat Kesoema estimates there are 60 million middle class Indonesians with a growing appetite for protein. He said the number is expected to reach 150 million in 20 years. “Now the consumption of beef is about 2.3 kg/capita. The government is determined to double or triple it in 10-20 years’ time. With the cooperation of Australia, I believe it will happen,” he said.
Jollibee takes full control of Mang Inasal
[05 May 2016]
Philippine fast food giant Jollibee Foods Corp (JFC) has taken full control of Mang Inasal, a local restaurant specialising in grilled chicken, after it acquired the remaining 30% stake in Mang Inasal Philippines Inc, for about USD 42.6 million. The company said there will be no changes in the business conduct and direction of Mang Inasal resulting from this acquisition except that the board of directors will now be composed completely of JFC representatives. As of end-March, there were 458 Mang Inasal branches in the country.
Indonesia, Traceall Global cooperate to reduce IUU fishing
[05 May 2016]
Indonesia’s Ministry of Fisheries & Marine Affairs has signed an MoU to work with Glasgow-based Traceall Global to carry out a pilot project aimed at reducing IUU (illegal, unreported and unregulated) fishing in the country. They will work with the Indonesian government to develop an electronic fisheries management logbook moving all data capture to a 24-hour real time system. The new systems will be implemented on all Indonesian fishing vessels to support the tracking and traceability of their fishing catch. Susi Pudjiastuti, Minister of Fisheries & Marine Affairs said illegal fishing costs the Indonesian economy USD 20 billion each year.
Burger King India to open 40 new outlets
[05 May 2016]
Burger King India plans to add 35-40 outlets this year across the country. “Burger King is a mass brand and the idea is to get into every city including tier 1, 2 and 3. The plan is to build a huge portfolio of restaurants in India. Our aim is to lead in India as a restaurant brand in QSR,” said CEO Rajeev Varman. “Last year, we entered about 13 cities, including Bangalore, Mumbai, Delhi, Hyderabad, Punjab and Pune. We are continuing to build at a similar pace like last year. The QSR opened 10 outlets in 2014, and added another 38 in 2015.
Harim to export ginseng chicken to China
[05 May 2016]
South Korea’s poultry integrator Harim Co. plans to export samgyetang, a pre-cooked ginseng and chicken dish, to China within the first half of 2016. Harim has finished registering to export the product with the Chinese authorities. Once labelling and quarantine regulations are agreed upon, it is expected to ship out the product soon. Oh Jun-ho, Senior Vice President said the company plans to ship just USD 3 million worth of samgyetang in the first year to tap demand in China.
Betagro confident of achieving USD 4 billion sales target by 2020
[04 May 2016]
Betagro Group is confident of achieving its USD 4 billion sales target by 2020, Vasit Taepaisitphongse, President of Betagro Group told Asian Agribiz. The firm posted a consolidated revenue of USD 2.74 billion in 2015. “We will invest about USD 86 million in new fixed assets such as farms and factories,” Mr Vasit said, adding that the Group plans to increase feed capacity in the Southern province as well as chicken production capacity in Lopburi province this year.
Guangdong Wens to expand chilled yellow chicken processing
[04 May 2016]
China's Guangdong Wens Foodstuff Group said it will focus on processing chilled products for its poultry business this year. The producer of local yellow feather broilers has been supplying chilled chicken to Hong Kong. Its processing business generated revenue of USD 81 million in 2015, down 5.43% year-on-year, accounting for only 1.08% of the company’s total revenue, which saw a 24.57% rise last year. “The segment’s revenue decline is a normal fluctuation for an individual year. We will actively push the meat processing business forward,” Chairman Wen Pengcheng told Asian Agribiz.
PurelyFresh takes on a new challenge
[04 May 2016]
Singapore’s PurelyFresh online retailer, which entered the market in July 2014, guarantees fresh meat and seafood products, and offers a 100% money back guarantee to unhappy customers. “Our Procurement Team does a great job in finding the freshest supply, but the pressure is on our Fulfilment Team to ensure it stays that way,” Desmond Khoo, Founder and CEO, told Asian Agribiz. “Our Fulfilment Team performs quality checks on all the items before delivery.” The company now wants to source healthy products for its customers. “We are looking at launching antibiotic-free fresh produce as well as expand our organic line,” he said.
Indonesia limits corn imports to 1mt
[04 May 2016]
Indonesia will limit maximum corn imports for feedmills to 1 million tonnes this year as domestic supply is expected to cover demand, the Ministry of Agriculture said in a statement. Indonesia imported 2.5 million tonnes during January-October last year. The ministry estimated domestic corn production to reach 21.53 million tonnes, higher than last year’s 19.83 million tonnes. State procurement agency Bulog said in February that it would bring in 200,000 tonnes of corn in Q1.
Taiwan protests against US pork imports
[04 May 2016]
Protestors, including the Chairman of Pingtung County Swine Association rallied against Taiwan allowing imports of US pork containing ractopamine. Pan Chang-cheng, a member of the Taiwan Solidarity Union (TSU) and a Pingtung county councillor, was joined by several dozen TSU members in the protest. Mr Pan said opening the market to ractopamine-laced US pork will not only affect the health of Taiwanese people, but will also pull down prices of Taiwanese pork by 50%, negatively affecting the livelihood of local swine producers.

Asia Pacific Aquaculture 2016
Onsite report by ARIEF FACHRUDIN
[04 May 2016]

Asia Pacific Aquaculture 2016, held in Surabaya, Indonesia from April 26-29, saw stakeholders in the region learn about the latest developments in aquaculture, come face-to-face with new technology and learn what is happening in Indonesia's growing aquaculture sector.

Aquaculture plays important role in feeding the world
With the need to feed a growing global population, aquaculture continues to play an important role as a source of animal protein. According to Rohana P Subasinghe, former Chief of Aquaculture Branch of the FAO Fisheries & Aquaculture Department, aquaculture is the fastest growing food sector and is the most sustainable animal protein. “In 2014, we captured 94 million fish and farmed 168 million fish. In the same period, 50% of the fish we ate came from aquaculture,” he explained. Asia is still the major farmed fish producer with China, India, Vietnam, Indonesia and Bangladesh being the top five producers in the world.

105mt more fish needed by 2030
Globally, fish consumption per capita is more than 19kg. According to Mr Subasinghe, fish consumption will continue to increase. “By 2030, we will consume more fish. We will need about 105 million tonnes more of fish by 2030. This is a challenge,” he said. “We need to improve and better manage marine captured fisheries, and have better & sustainable aquaculture production. We also need to adopt new technology and improve public-private partnerships.”

Shrimp production to increase by 2017
George Chamberlain, Global Aquaculture Alliance President and Integrated Aquaculture International Founder, said growth of shrimp production has slowed due to diseases. However, he said: “Production increases in all major farming nations are expected by 2017, especially in Indonesia.” He mentioned early mortality syndrome (EMS) and enterocytozoon hepatopenaei (EHP) as shrimp diseases with repeated outbreaks in many farming nations. To control EMS farmers in India use what is called ‘shrimp toilet’ to move out sediment. For EHP which is resistant to chlorination, Mr Chamberlain said SPF broodstock, quarantine, biosecurity, vet services and zoning are ways to manage the disease.

Indonesia is 2nd largest aquaculture producer
According to Albert GJ Tacon, independent aquaculture consultant, Indonesia is currently the world’s second largest aquaculture producer at 14.37 million tonnes, with total production valued at USD 10.56 billion. The sector growing at 21% annually. He mentioned that Indonesia is the world’s second largest producer for tilapia, catfish and shrimp with productions of 1.04 million tonnes, 1.10 million tonnes and 598,000 tonnes, respectively. Meanwhile for milkfish, Indonesia is the world’s top producer at 578,000 tonnes.

Indonesia should benefit from alternative feed ingredients
Although Indonesia is a big aquaculture producer, the sector relies on imported feed raw materials, with 50-80% being imported, said Dr Tacon. “As such locally produced feed is highly influenced by world commodity prices and currency exchange rates.” Dr Tacon said many alternative ingredients are available in Indonesia such as rice bran, copra meal and palm kernel meal. However, factors like low protein, high fibre and anti-nutrients limit its use in aqua feed formulation. To better use the ingredients, Dr Tacon recommends fermentation technology with probiotics, as well as enzymes.

Grobest Group to expand operations in Indonesia
Taiwan based aqua feed producer Grobest Group that has strong operations in different countries in Southeast Asia will focus on expansion in Indonesia. Aan Djamaloedin, Sales Manager of Grobest Indomakmur told Asian Agribiz that the company plans to set up its second aqua feed plant in East Java. The Indonesian subsidiary now runs an aqua feed plant in Tangerang, Banten province. The plant can produce 5000 tonnes of aqua feed a month. Mr Djamaloedin revealed that the company may set up internal shrimp ponds and cold storage.

CP Prima modifies existing plants
This year Indonesia’s largest aqua feed producer Central Proteinaprima (CP Prima) will modify its existing plants and add supporting systems. Willson Hendrata, Assistant Vice President for Aqua Feed Production told Asian Agribiz that this will increase CP Prima's production capacity. CP Prima has also adopted automation – from raw materials receiving to formulation – at all plants. “With automation, we only need one operator for one line,” Mr Hendrata said. CP Prima now has seven plants with eight towers (three for shrimp feed and five for fish feed), located in North Sumatera, Lampung, West Java and East Java.

Matahari Sakti targets 15% growth
Indonesia’s aqua feed producer Matahari Sakti targets 15% growth this year. Teddy Njoto, Director told Asian Agribiz that the company has launched a new feed for eel. In Indonesia eel farms can be found in Banyuwangi, Jogjakarta and West Java. The eels are processed into a product called unagi for export to Japan. Mr Njoto said of its total feed production, feeds for freshwater fish is still the main sales driver. He added that the company targets to put its new fish feed plant into operation in Q2 2017. Initially the plant will have a production capacity of 3000 tonnes of fish feed per month.

Evonik launches Aquavi Met-Met
Evonik took the opportunity to launch its Aquavi Met-Met, a new source of methionine specially developed for shrimp and other crustaceans, for the first time in Indonesia. Grant Xie, Regional Marketing Director – Animal Nutrition, told Asian Agribiz that Aquavi Met-Met is a dipeptide made up of two DL-methionine molecules. The dipeptide is far less water-soluble than the individual molecules and, for this reason, does not wash out of the feed as quickly.

CJ promotes fishmeal replacer
With the declining trend in catch fish, fishmeal supply is becoming a hot issue. At the show, CJ Cheiljedang promoted its Aquatide65, a fermented protein concentrate, which is said to be a cost efficient fishmeal replacer. Trial results in white leg shrimp showed that the product can replace 30% of fishmeal in feed. The product is now produced in South Korea but in the future may be produced in Vietnam.

Huaying to ship cooked duck blood to Australia in May
[03 May 2016]
Henan Huaying Agricultural Development Co., a leading duck processor based in central China, said it has won an Australian permit to export cooked products, with the first shipment of duck blood scheduled to arrive in May. Huaying slaughtered 38.5 million ducks in 2015, and in January this year, it launched the pre-boiling duck blood product that is said to have a high content of protein for meal. “We have set up a subsidiary that specializes in duck blood processing, and hope to develop this ‘small’ product to a ‘big’ segment,” Chairman and CEO Cao Jiafu told Asian Agribiz.
India’s Republic of Chicken up for sale
[03 May 2016]
India’s businessman and politician Kanwar Deep Singh has put his Republic of Chicken brand of retail outlets and the entire poultry farming chain from breeding to processing, up for sale. Mr Singh has decided to sell partly or fully the stake of his listed entity Alchemist Ltd. “In light of the changing economic scenario and due to the competitive environment the company intends to sell its shareholding in Alchemist Foods,” Alchemist told its shareholders. Republic of Chicken runs over 100 retail outlets in Delhi, Chandigarh, Punjab, Haryana, MP, West Bengal and Rajasthan serving raw, portioned and frozen processed items.
Malindo's performance to rebound
[03 May 2016]
Indonesian poultry integrator Malindo Feedmill is expected to post a net profit this year after two straight years of losses. This optimistic projection is based on higher purchasing power of people in the country. Last year the company posted a net loss of USD 4.8 million, due to an increase in foreign exchange losses and higher interest expenses. Rudy Hartono Husin, Finance Director said the company has allocated USD 34 million for this year’s capital expenditure, which will be spent on expansion of its feed and broiler breeding businesses. The company plans to build a feedmill in South Sumatra.
Antibiotics should remain a viable option says AAAP
[03 May April 2016]
Antibiotic use in poultry should be minimized through carefully planned and well-executed preventive practices, according to the American Association of Avian Pathologists (AAAP). The ‘AAAP White Paper on Poultry Welfare and Carful Antibiotic Use’ expressed concerns about the ‘growing trend’ for some food retailers and restaurants to only offer products from flocks raised with no antibiotics. “Farmers may be reluctant to allow treatment of flocks to maintain their ‘antibiotic free’ status,” the association said. “Veterinarians need the ability to make the proper treatment plans for animal health and animal welfare, including the use of antibiotics when warranted as part of their professional commitment and ethical obligation,” AAAP said.
Prima Meat Packer’s operating profit climbs 11%
[03 May 2016]
Japan’s Prima Meat Packers’ group operating profit climbed 11% to USD 73 million for the year ended March 2016, falling short of the USD 91 million forecast due to inventory valuation losses on imported beef and sluggish demand for gift items. Its sales rose 6% to USD 3.3 billion, topping the guidance by USD 9.2 million, thanks to solid demand for Prima Meat’s flagship wiener brand and growing sales of prepared foods at convenience stores. Demand for ham and sausage sold as year-end gifts slumped after the WHO classified processed meat as a carcinogen in October last year.
Vilsack touts benefits of trade with Vietnam
[03 May 2016]
Vietnam is one of the fastest growing markets for US food and agricultural products. Exports totalled USD 2.3 billion last year, making it the US’ 11th largest agricultural export market. US Agriculture Secretary Tom Vilsack on a trip to discuss details of the TPP deal with his counterparts in Vietnam touted the benefits of trade with the country. Once the TPP takes effect, the US is expected to cut 90% of the tax lines for goods from Vietnam. Vietnam will also reduce and eventually eliminate tariffs across a broad range of food and agricultural products, which will help put US exports on a level playing field.
Betagro plans for feedmills in Laos, Myanmar
[29 April 2016]
Vasit Taepaisitphongse, President of Thailand's Betagro Group told Asian Agribiz that the company is planning to construct feedmills in Laos and Myanmar. “In Laos, we are concluding the project plan. In Myanmar, we are studying the feasibility and we need some time to collect information,” he said, adding that the plans should materialise in five years. “Our partners in the two countries want us to jointly develop the food chain and we are ready to invest,” Mr Vasit added. Meanwhile, Betagro Group’s total feed production capacity is around 3-4 million tonnes a year. The firm aims to raises this to 5 million tonnes a year.
Fujian Sunner eyes 20,000 franchise outlets by 2020
[29 April 2016]
China’s Fujian Sunner Development Co. said it has opened 170 ‘Fresh Delicacy’ outlets so far, as part of a five-year plan to sell the company’s chilled chicken cuts via 20,000 franchised outlets by 2020. Financial Director Lin Qiqing said the program is already profitable as the price of chilled products are 25-50% higher than frozen chicken traditionally produced by the company. “We have an annual slaughter capacity of 500 million birds, and have no plan for any further investment at the moment,” Chairman and President Fu Guangming told Asian Agribiz during an online briefing.
Price of Indian poultry products rebound
[29 April 2016]
After incurring losses for nearly nine months, India’s poultry sector has become viable thanks to a sharp turnaround in product prices. Chicken and egg prices have increased 25-30% over the past two months, mainly because of a supply crunch. Prices slumped steadily following an oversupply situation that started in July 2015. In February it hit a final low with benchmark broiler and eggs prices at USD 0.9/kg and USD 0.04/piece, respectively. “Unviable prices triggered a cut in production. Besides, mortality has risen to 8-9% with temperatures above 40 degrees. These two factors have supported a rebound in prices,” said Balram Yadav, Managing Director of Godrej Agrovet.
Feedlot operators reject KPPU’s decision on beef cartel
[29 April 2016]
Following the fines of USD 8.1 million by Indonesia’s Business Competition Watchdog Commission (KPPU) on 32 cattle feedlot operators in the country who allegedly colluded on prices and supply, Nurmalita Malik, a lawyer representing Tanjung Unggul Mandiri (TUM), said feedlots did not fix prices. TUM was fined the most – around USD 1.6 million. Ms Malik said: “Witnesses and documents have shown that there is no cartel and we will challenge KPPU's decision.” The Indonesian arm of Elders said they will work closely with importers to understand and review the impact on its customer base in Indonesia. "The importers believe they have done nothing untoward,” said Cameron Hall, Elders Manager of Livestock Exports.
Vietnam to stop using infeed antibiotics in livestock by 2018
[29 April 2016]
By end April, Vietnam’s Ministry of Agriculture and Rural Development (MARD) will sign an amended Circular on the use of antibiotics in animal husbandry, which lowers the level of antibiotics allowed in animal feed from 8 - 10ppm per tonne to 5ppm per tonne. "We studied some neighbouring countries and we think that Vietnam may have to stop using antibiotics in livestock by 2018," Hoang Thanh Van, Director of the Department of Livestock Production, MARD said. "We need to prohibit the use of antibiotics and enhance traceability," said Cao Duc Phat, Minister of Agriculture.
Fujian Sunner says white chicken segment has bottomed out
[28 April 2016]
China's Fujian Sunner Development Co, the largest white feather broiler integrator in China, said the segment has bottomed out from a three-year downturn. “Last year was the turning point as it was the final stage to reduce overcapacity,” the company revealed in its annual report. China started limiting GP stock introduction in early 2014 with the establishment of the White Feather Broiler Alliance. The introduction fell more than 20% to 1.18 million sets during the first year, and plunged 40% to 720,000 sets in 2015. In the first quarter of 2016, China’s introduction of GP was less than 30,000 sets. “It is expected that China’s white chicken segment would take a favourable turn over the next three years due to short supply,” said Sunner.
Hung Vuong enters livestock feed market with USD 35m feedmill
[28 April 2016]
Vietnam’s Hung Vuong Corporation broke ground recently for a USD 35 million livestock feedmill in the southern province of Long An. The 6.8ha facility is equipped with European technology that allows it to produce 500,000 tonnes of product per year, mainly for its pig farms. “With our new feedmill employing the latest technology, Hung Vuong is setting long-term goals to meet consumers’ demand for safe products and competitive pricing,”   said Duong Ngoc Minh, General Director, Hung Vuong Corporation.
KFC to introduce edible packaging in India
[28 April 2016]
Starting with its Rice Bowlz, US fried chicken chain plans to introduce edible packaging in India soon. Previously made of plastic, the bowls will now be made of tortilla. “This is an India-first innovation and may be adopted in KFC’s global markets,” said Rahul Shinde, Managing Director of KFC India. Mr Shinde said the company has invested heavily in its innovation team and the edible bowl was a result of it. Other items from India that have been adopted in KFC’s global markets are KFC Chizza and KFC Krushers. The QSR chain plans to foray into tier III cities in the near future to boost consumption, said Mr Shinde.

Asian Meat Magazine, May/June 2016 - Highlights
[28 April 2016]

Cooked Meat Sector Report
Asian producers give more attention to packaging
Ready to eat (RTE) products in Asia is where taste, convenience and technology meet to provide quick and hassle free meals. While great strides have been taken to ensure quality meals, the industry is also driving changes on the packaging front for more attractive, safer and cost effective products, RACHAEL PHILIP and the ASIAN AGRIBIZ team learn.

Kerchin stays abreast of market development
Inner Mongolia Kerchin Beef Industry Co is focused on Chinese consumers’ awareness of food safety. The company has installed state-of-the-art technologies to improve the quality, safety and traceability of its products, writes RICH HERZFELDER.

VPF completes value chain for integrated food business
Thailand’s VPF Group, an integrated pig farming operator, is working towards becoming a fully integrated food company. Apart from expanding its pig farms, VPF is working on growing operations at its primary processing and further processing plants, as well as embarking on retail and restaurant businesses, writes NITSARA THONGRUNG.

SBB creates a fad for grilled sausages
Together with its 1000 partners stationed throughout Indonesia, Sosis Bakar Bandung has made grilled sausages popular in the country. As its business continues to grow and production capacity swells, ARIEF FACHRUDIN learns that the company wants to set up a new plant in a new region.

Iffa 2016 to serve solutions for eating trends
Clean labelling gives expression to the demands made by consumers and the retail sector to have products that are as far as possible additive-free. Today careful eaters tend to define themselves more by what they will not eat. These consumers have given rise to a market of ‘free-from’ products, such as lactose-free or gluten-free foods.

Thaifoods Group opens new chicken sausage factory
[27 April 2016]
Thailand’s Thaifoods Group (TFG) recently opened a chicken sausage factory with a production capacity of 30 tonnes a day in Prachinburi province, efinanceThai reported. Cherdsak Kukiattinun, Chief Operating Officer of TFG said that the firm invested around USD 10.8 million in the factory. The factory is expected to run at full capacity of 10,000 tonnes a year in 2018, Mr Cherdsak said, adding that the firm plans to increase its sales channels to include restaurants and hotels in the fourth quarter of this year and to include modern trade and convenient stores in 2017. TFG also plans to sell its chicken sausage products in Asean markets.
China ports see pork imports surge in Q1
[27 April 2016]
Major Chinese ports saw a sharp rise in pork imports in the first quarter of 2016, as the local market is still suffering from a shortage and pork prices have remained high. The General Administration of Customs said its Tianjin port in north China imported 75,000 tonnes of pork in Q1, up 93.8% year-on-year. The average import price was flat at USD 1,695/tonne, less than half of the local prices. About 80% of the pork shipment to the Tianjin port during the quarter was from the EU.
Andhra Pradesh’s egg exports challenged
[27 April 2016]
Layer farmers in India’s Andhra Pradesh will see a decline in egg sales to West Bengal, Bihar, Odisha and Assam, as the governments of these states are offering incentives to their local poultry industries to raise production. Nearly 45 million eggs are produced in Andhra Pradesh daily and 60% is exported to other states.

Asian Poultry Magazine, May 2016 - Highlights
[27 April 2016]

TCRS stays relevant with refreshed menus
In Malaysia chicken rice is standard daily fare that borders on being a delicacy. TCRS Restaurants Sdn Bhd has taken the meal and placed it in a quick service restaurant setting offering ambience, comfort and quality ingredients. Chief Executive Officer Wong Kah Lin tells RACHAEL PHILIP how the company has kept the menu fresh for customers over 16 years.

Branding gives Megha an edge in India
Mysore based Megha Farm has found that branding their eggs has given them an edge in the market. Managed by father-son duo, the company is poised to reach yet another milestone by completing three decades in 2017, writes SM ARUN.

Grimaud’s good productivity wins over Vietnam market
Dao Vu Ban, also known as ‘Ban - the duck king’, owns a 4ha Grimaud duck hatchery in Thinh Dan district in the northern province of Thai Nguyen, Vietnam. He has a flock of 8000 PS that produces 5600 eggs daily. With a hatching rate of 70%, Ban's farm can supply 4000 ducklings to farmers on a daily basis, writes HA THU.

Apayo suggests measures to stem low prices
If the supply of broiler DOC in Indonesia continues to exceed the demand, the resulting lower price of live birds will hamper industry growth in Indonesia’s Special Region of Yogyakarta, writes ARIEF FACHRUDIN.

Promoting eggshell quality with a prebiotic acidifier
Eggshell quality is an important determinant of the profitability of egg production and hatchability. EDI VIANELLO highlights the positive effects of supplementing hen’s diets with a prebiotic acidifier.

Pre-starter feeding for broiler chicks
To fully exploit the genetic potential of poultry, it is important to manage the first week of life successfully and to pay particular attention to feeding. Conditions at the start of broiler production can not only irreversibly affect the chicks' growth but also lower their resistance to pathogens. FRANÇOIS TILLY and ERIC FABRY discuss how the feeding of young chicks is a key factor in achieving good rearing performance.

A solid immune foundation is necessary for a strong ND protection
Infectious agents should be controlled as these diseases cause immune suppression and limit the proper functioning of the bursa, causing economic losses. DEXTER M. ABRIGO reports studies that demonstrates the efficacy of using a modern vectored vaccine, which aside from preventing occurrence of Marek's disease and IBD, also protects the bursa, strengthening the bird’s overall immune status, and enhances the effectiveness of ND vaccines.

Part 1 DL-Methionine – nutritionally the mirror image of L-Methionine
PRADEEP KRISHNAN, ARIANE HELMBRECHT, BEHNAM SAREMI and GIRISH CHANNARAYAPATNA review biochemical and recent growth performance evidence comparing the nutritional value of DL-Methionine (Met) and L-Met.

EU maintains threat of sanctions on Thai seafood
[26 April 2016]
The European Union is maintaining the threat of a seafood import ban on Thailand due to its inadequate fisheries legal framework and poor monitoring, control and traceability systems. Meanwhile, Thailand has proposed an action plan to address illegal, unreported and unregulated (IUU) fishing. The European Commission said that it is currently evaluating the progress. “The dialogue is proving difficult and there remains serious concerns about the steps taken by Thailand to fight IUU fishing activities,” said the European Commission, adding this means that further action by the Commission cannot be ruled out. The European Commission said a meeting with the Thai authorities in May will be a new opportunity for Thailand to show its commitment.
Indonesia’s KPPU fines 32 feedlotters over beef cartel
[26 April 2016]
Indonesia’s Business Competition Watchdog Commission (KPPU) has said that 32 cattle feedlotters in the country were guilty of price fixing and curbing the supply of beef in order to manipulate the market in Greater Jakarta. KPPU imposed fines worth USD 8.1 million on the feedlotters. Juan Permata Adoe, Deputy Chairman for Food Processing and Farm Business at the Indonesian Chamber of Commerce and Industry, deplored KPPU’s decision. “We are still working with the government to increase investment and jobs in the industry. But KPPU has taken an opposing position,” he said. Meanwhile, Muhammad Syarkawi, KPPU Chairman said cartel practices in this industry were rooted in the government’s policy to impose quotas rather than tariffs on beef imports. “The companies withhold or reschedule the sale of beef, resulting in an artificial shortage and rising prices, which hurt consumers,” he explained.
Indian carabeef expected to flow into Indonesia by Ramadhan
[26 April 2016]
Carabeef or buffalo meat can help diversify exports from India and benefit the people of Indonesia, said Nengcha Lhouvum, Indian Ambassador to Indonesia at the ‘Roadshow on Indian Bovine Meat’ recently in Jakarta. Muladno, Director General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture meanwhile said: “An audit team went to India in September 2015 to inspect abattoirs and research institutions, which confirmed that India has excellent meat processing and quarantine control.” He added the Indonesian government is making efforts to open its market for Indian carabeef by the Ramadan period.
Maharashtra’s poultry industry faces water scarcity
[26 April 2016]
As India’s Maharashtra continues to face the ravages of drought, the state’s poultry industry has started reporting almost 35% production losses. Ironically, this comes when for the first time in many months, the industry started reporting profits in broiler sales. Prasanna Pedgaonkar, Deputy General Manager of Venkateshwara Hatcheries said districts in Marathwada, Vidarbha, Ahmendnagar and many other areas were witnessing severe water crisis which has led to many poultry farmers temporarily closing their sheds. Maharashtra sees placements of around 35 million birds/month, of which around 5000 tonnes of chicken are supplied to Mumbai alone.
Necrotic enteritis in broilers: Disease or syndrome?
[26 April 2016]
Out of literally hundreds of pathogenic strains of Clostridium perfringens, one single isolate is enough to trigger a necrotic enteritis (NE) outbreak in broilers, says Steve Davis, DVM, Colorado Quality Research.“We’re learning that in addition to dealing with the large number of pathogenic strains, multiple isolates — each with unique disease symptoms — can be found in the same poultry complex,” Davis told Poultry Health Today which is sponsored by Zoetis. “With the number of C. perfringens pathogenic strains we’re seeing coupled with additional disease pressure from Salmonella and coccidiosis, I think NE can now be classified as a syndrome.” More.
ND situation in the Philippines easing up
[25 April 2016]
The pressure from Newcastle Disease (ND) is starting to ease up on Philippine poultry producers, a poultry practitioner told Asian Agribiz, thanks in part to government and industry interventions but also the start of the summer season. “The onset of the summer season hastens the inactivation of the virus,” said the practitioner, so it is likely that disease incidence will let up. Nevertheless, poultry players remain on alert against ND, especially in Luzon where sporadic cases continue to be reported.
Brahim’s products on 7-Eleven shelves in Malaysia soon
[25 April 2016]
7-Eleven Malaysia Sdn Bhd will work with Brahim’s Holdings Bhd’s 51%-owned subsidiary Brahim’s Sats Food Services Sdn Bhd (BSFS) to increase the convenience store’s range of products. Brahim’s Sats will produce for 7-Eleven Malaysia a range of chilled packaged ready-to-eat products that would be branded under 7-Eleven’s proprietary food service brand of Fresh to Go. 7-Eleven, meanwhile, will provide a central distribution centre for Brahim’s Sats to deliver all products. “We believe this range will be a further attraction to our shoppers,” CEO Gary Brown said.
Ceva launches live-attenuated IB vaccine in Thailand
[25 April 2016]
Ceva launched a vaccine, called Cevac IBird, for the active immunization of chickens against infectious bronchitis (IB) in Thailand. Ruud Aerdts, Asia Director of Ceva Sante Animale said that IB is an underestimated problem in most countries in Asia because it often goes unnoticed and causes major indirect losses to producers. “IB problems are the second most prevalent and serious disease affecting poultry production in the world,” he said. Cevac IBird is a safe product, which can be used in DOC in the hatcheries. Ceva also offers the vaccination equipment and vaccination services, ensuring proper and convenient hatchery vaccination.

India dairy update
[25 April 2016]

Medium scale farms to be India’s dairy growth driver
Milk procurement is expected to become the single most critical link in India’s dairy supply chain given the strong growth in the organised dairy industry, which has put the focus on raw milk sourcing. According to Rabobank, medium scale dairy farms will be one of the key growth drivers in Indian dairy going forward. Shiva Mudgil, Senior Dairy Analyst at Rabobank Food and Agribusiness Research and Advisory identifies medium scale dairy farms as the emerging trend. “As procurement from small and marginal dairy farmers will increasingly become a challenge for milk processors, the industry will see the emergence of farmer owned dairy farms, with herd sizes ranging from 50-300 cattle,” he said.

Indian private dairy companies see decline in profits
Several private dairy companies in India are experiencing pressure on profit margins owing to a fall in selling prices resulting from aggressive competition from global and domestic dairy companies including government backed cooperatives, even as successive draughts have resulted in demand-supply imbalances in certain regions. Private dairy company Kwality in North India saw its net profit drop to 11.29% at USD 21.3 million in 2015. Similarly, south based private dairy company Creamline Dairy controlled by Godrej Agrovet admitted pressure on their margins. “The failure of the monsoon and non-availability of fodder have also contributed to pressure, hurting our profit margins by 200-300 basis points,” said K Bhaskar Reddy, Creamline Dairy Managing Director.

India’s Mahindra & Mahindra enters milk business
India’s auto to aerospace conglomerate Mahindra & Mahindra has launched milk in Indore in Madhya Pradesh, expanding the offerings from its agricultural division. The milk, which is retailed under the Saboro brand and fortified with vitamin A and D, will also be launched soon in capital Bhopal and other big cities of the state. The company said it has put in place a technologically advanced milk collection supply chain around 70 villages near Indore where it works directly with farmers. “We will process 10,000 litres of milk a day and take it to 50,000 litres a day,” said Ashok Sharma, CEO of the agricultural division.

Milk Mantra Dairy to raise USD30m for expansion
India’s Milk Mantra Dairy based in Odisha is in talks with private equity firm Samara Capital to raise around USD 30 million to fund its expansion. With the funding, the company which already markets ready to drink milk beverage MooShake in markets such as Bengaluru, plans a pan India presence. Founded in 2009, the company collects milk from a network of more than 20,000 farmers across more than 500 villages. It currently has two processing plants at Konark and Sambalpur districts in Odisha. “Companies with strong milk procurement infrastructure and direct farm engagement will be the intended targets for acquisition and partnerships,” said Shiva Mudgil, Senior Dairy Analyst and Vice President, Food and Agribusiness Research and Advisory at Rabobank.

Hot weather to temper chicken overproduction in the Philippines
[22 April 2016]
Its recent bout with Newcastle Disease (ND) notwithstanding, the Philippine poultry industry continues to struggle with overproduction. “Prices have collapsed because of overproduction and poor demand,” Atty Elias Jose Inciong, President of the United Broiler Raisers Association, told Asian Agribiz. He added that ideal conditions in the first quarter led to higher output. However, the coming of the summer season and the hot weather is likely to temper production as conditions become less than ideal.
Royal De Heus Group opens 7th feedmill in Vietnam
[22 April 2016]
Royal De Heus Group inaugurated its latest feedmill in Vinh Long province, its 7th factory in Vietnam. The plant will help De Heus Vietnam hit its 1 million tonnes per year total production capacity. In its first phase the USD 30 million plant will produce 250,000 tonnes per year. Vinh Long 2 is its first plant with a river port, which improves logistic of incoming raw materials and outgoing finished products between Vietnam, Cambodia and the Mekong Delta. “The new factory and port are an important next step in our ambition to contribute to development in Vietnam,” Gabor Fluit, Business Group Director De Heus Asia, said. Along with the launch of Vinh Long 2, the company also announced that its Vietnam office operates as the group’s headquarters in Asia.
Thai Union expands research and development efforts
[22 April 2016]
Thai Union (TU) recently launched a seafood pilot plant, designed to innovate sustainable and value-added products. It is located within the Global Innovation Incubator (Gii), a joint research and development (R&D) collaboration between TU and the Faculty of Science, Mahidol University. “We believe that innovation will contribute to our business growth and help us achieve our USD 8 billion sales target by 2020,” Thiraphong Chansiri, President and CEO of TU said, adding that innovation will further TU's competitiveness, differentiation and capacity in the world food industry. TU has invested approximately USD 5.6 million to expand the Gii work space to twice its initial size and created the pilot plant to further boost R&D.
HLH Group upgrades Cambodia farm into agri park
[22 April 2016]
Singapore’s HLH Group Ltd has upgraded its existing 10,000ha farm in Aoral District, Kampong Speu Province in Cambodia into a full-scale agriculture park. While a main section of the land bank will be reserved for the cultivation and processing of cassava into chips and starch, the park is also attracting investors to set up integrated livestock farming. “Around 70% will be utilised for farming and processing operations (of cassava). We do not limit ourselves to poultry and pig farms,” Dato’ Dr Johnny Ong, Deputy Chairman and Chief Executive Officer of HLH Group told Asian Agribiz. “Cambodia depends a lot on imported feed. We believe by setting up the agricultural park we will allow more investors take advantage of Cambodia’s growth,” he said.
Japfa sells its cattle stations in Australia
[22 April 2016]
Australia’s Archipelago Beef Trust has purchased two cattle stations (Riveren and Inverway) for more than USD 60 million from Japfa, Indonesia’s biggest importer of live cattle. The properties in the Northern Territory carry about 40,000 heads of Brahman cross cattle, AFRWeekend reported. Director Luke Butler confirmed the transaction and said he looked forward to working with Japfa on trade. “Riveren and Inverway Stations are a key strategic acquisition targeting the continued delivery of cattle into the growing Asian live cattle export market,” Mr Butler said. Japfa originally purchased the properties from the Underwood family for about USD 35 million.
Vaksindo focuses on bacterial vaccines
[21 April 2016]
Vaksindo Satwa Nusantara, a subsidiary of Japfa Comfeed Indonesia, is currently shifting its focus from viral vaccines to bacterial vaccines. However, according to Teguh Prajitno, President Director, 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,” he told Asian Agribiz. Vaksindo launched a Coryza vaccine last year. Dr Prajitno explained that this tetravalent vaccine 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. “Last year we found that necrotic enteritis in breeders was rampant. So we think that a vaccine to control Clostridium is needed,” Dr Prajitno said.
China demand push up pork price in Vietnam
[21 April 2016]
Prices of oversized pigs has increased 22% since the start of April, as Chinese traders upped their purchase of live pigs from Vietnam. As of the third week of April, prices of live pigs in southeastern Vietnam was around USD 2.30/kg, the highest since the beginning of the year and up from about USD 1.90 before the Tet period. The situation is expected to continue until year end. “There are about 2000-3000 live pigs transferred from Dong Nai to China every day,” said Nguyen Kim Doan, Vice Chairman of the Dong Nai Animal Husbandry Association. “Most of them are oversized weighing about 120-140 kg.”
DBE Gurney optimistic that Harumi brand will be profitable
[21 April 2016]
Malaysia-based DBE Gurney Resources Bhd and Pexden Holdings Sdn Bhd recently formalised arrangements to produce and market DBE’s Harumi brand of further processed products. Pexden will provide the technical know-how, machinery, production expertise, branding and related software and other advisory services for the Harumi brand. DBE Gurney’s subsidiary DBE Poultry Sdn Bhd will market the products via kiosks, mobile trucks, outlets, restaurants and cafes. “We aim to have 3000 kiosks, 300 food trucks and 30 restaurants by 2018 through franchising. We already have 50 franchise kiosks,” DBE Gurney Group Managing Director Datuk Alex Ding Seng Huat said. Going forward, Datuk Ding said, the group plans to export Harumi products to Indonesia, the Philippines, Vietnam and Thailand.
Bangkok Ranch invests in new slaughter house and food-processing factory
[21 April 2016]
Bangkok Ranch (BR) plans to invest around USD 25.77 million this year in a new slaughter house and a food-processing factory in Sa Kaeo province, efinanceThai reported. BR is the largest fully integrated duck-meat producer in Thailand. Chonlachart Worawuitthichongsathit, Assistant to CEO at BR, said that the new slaughter house will be completed in 2018 and it will boost BR’s duck meat production capacity in Thailand to 27 million ducks a year, from 18 million currently. BR aims to increase its revenue by 10-15% this year and expects a net profit of USD 18.92 million in 2016, Mr Chonlachart said, adding that Thailand is seeing duck price recovery.
FamilyMart, QL Resources to extend convenience store reach in Malaysia
[21 April 2016]
Japan’s FamilyMart will open its first store in Malaysia end 2016. Eased foreign investment rules set by the Trans-Pacific Partnership trade deal has allowed Japanese businesses to take a stake of up to 30% in Malaysian convenience store operators. Via an agreement with Malaysia’s QL Resources’ subsidiary, FamilyMart plans to make the maximum allowable investment, giving the Japanese company a direct hand in management. Similar investments of FamilyMart in mainland China, Taiwan and Thailand through joint ventures with local partners has seen the company bringing know-how in product development and logistics cultivated in Japan. The Nikkei Asian Review said it plans to offer about 2000 different products.
Japfa India to start new feedmill project in Uttar Pradesh
[20 April 2016]
Ardi Budiono, Vice President – Head of Feed of Japfa India, told Asian Agribiz that it is going to start the construction of its 5th poultry feedmill in Uttar Pradesh in July. The project is targeted for completion in October 2017. “The plant will have an installed capacity of 15,000 tonnes/month,” said Mr Budiono. “Uttar Pradesh is one of the biggest states in India with a population of 200 million, and this offers a huge potential for our poultry and feed business. In addition, key raw materials such as corn are abundantly available.”
China’s Hondo to import Australian cattle for online sale
[20 April 2016]
Chongqing Hondo Agriculture Group, a leading cattle integrator based in southwest China, said it will import Australian beef cattle and presell them via local e-commerce giant JD.com. Parts of the Angus cattle will be presold from April 15-25, and will be delivered to buyers from April 26. The imported cattle will be slaughtered and portioned at the company’s Zhengzhou plant in central China. “The combination of cattle import and e-commerce presale is expected to boost premium beef consumption in China,” said Tang Yishen, General Manager of fresh food operations at JD.com. China’s imports of Australian slaughter cattle is projected to hit one million heads a year after the two countries signed a live trade agreement in July 2015.
Al Meezan expanding its Karachi feedmill capacity
[20 April 2016]
Pakistan’s emerging feed company Al Meezan Poultry Feeds and Allied Products (Al Meezan) is now expanding the production capacity at its Karachi feed plant from 25 tonnes/hour to 45 tonnes/hour. Abdullah Ahmad Tahir, Animal Nutritionist and Production Manager told Asian Agribiz that the expansion will meet growing demand for poultry and dairy cattle feed in the region. “The project will cost around USD 5 million. We will install modern technology from the US and Turkey,” Dr Tahir said, adding that it will be completed this year.
China to add 2.67 million hectares of soybean by 2020
[20 April 2016]
China targets to plant 9.33 million hectares of soybeans by 2020, up by 2.67 million from 2015, according to the Ministry of Agriculture. The ministry said in a guideline to promote soybean production, it will also seek to increase average soybean yield to 2,025kg per hectare by 2020, compared with 1,800 kg/ha in 2015.  China plans to reduce more than 3.33 million hectares of corn planting by 2020. China imported 81.69 million tonnes of soybeans in 2015, 6.8 times the local production.
Saudi Arabia bans shrimp imports from Pakistan
[20 April 2016]
The Saudi Food and Drug Authority has banned shrimp imports from Pakistan as a precautionary measure after detecting white spot disease in crustaceans exported from the country. The measure is based on a report of the World Organisation for Animal Health (OIE), which included Pakistan in the index of countries with shrimp affected by the disease. However, Pakistan’s Marine Fisheries Department said it was a misunderstanding, considering that the country produces mainly wild marine shrimp. “White spot disease only occurs in cultured shrimp,” the department said. In 2015 Pakistan exported 189 tonnes of shrimp to Saudi Arabia worth USD 2.2 million.
Indonesia, Denmark sign agreement on cattle, corn
[20 April 2016]
Indonesia’s government and its Danish counterparts recently agreed to strengthen cooperation in agriculture. At the meeting, Indonesia’s Minister of Agriculture, Amran Sulaiman and Denmark’s Minister of Food and Agriculture, Esben Lunde Larsen signed an MoU in agricultural investment including investments in a cattle farm and corn plantation. Mr Sulaiman said Indonesia will provide land for the cattle and corn investments in Sulawesi, Kalimantan and West & East Nusa Tenggara. He added that Denmark is a right investor and partner since the country has good and modern agricultural technology.
China’s Muyang eyes joint venture in India
[19 April 2016]
Liu Guangdao, Director and Vice President of Muyang, China’s leading feed machinery manufacturer, told Asian Agribiz that the firm is considering a joint venture with a local feed producer in India. Muyang is now in the process of collecting information and it may finalize its investment and partner next year. “India is a big country and is a potential market for us,” he said, adding that the company has already enjoyed good business in India. Apart from India, Mr Liu said the feed industry is growing fast in Vietnam, Philippines, Indonesia and Bangladesh and meat consumption in these countries keep getting higher and higher. Muyang has sale offices and spare parts warehouses in many countries in Asia. “We can supply service and spare parts very quickly,” he added.
Vaksindo inaugurates new animal vaccine plant
[19 April 2016]
Vaksindo Satwa Nusantara, a subsidiary of Japfa Comfeed Indonesia, recently inaugurated its new animal vaccine plant and BSL-2 laboratory in Gunung Putri, West Java to tap into increasing demand from domestic and international markets. “Our existing plant in Wanaherang, West Java is running at full capacity. That is why we need a new plant,” Teguh Prajitno, President Director told Asian Agribiz. “All live vaccines and Gumboro vaccines will be produced at the new plant. The old plant will focus on killed vaccines and avian influenza vaccines,” said Dr Prajitno. The new plant cost around USD 8.3 million. The latest and modern technology and equipment such as integrated aseptic filling line and lyophilizing and capping machines ensure quality vaccine production.
Vissan to serve VietGAP pork at all outlets
[19 April 2016]
On April 15, Vietnam Meat Industries Ltd Co (Vissan) started supplying VietGAP pork at all its retail outlets in Ho Chi Minh and neighbouring provinces. VietGAP pork is produced following good agricultural practices that ensures hygienic and safe pork meat. “We wish to become one of the leading organisations in the VietGAP supply chain to motivate farmers to shift from their old farming model to a new and standardised one like VietGAP and participate in a safe food supply chain,” Vissan General Director Van Duc Muoi said. Vissan currently supplies about 70 tonnes to local markets daily.
Chinese producers show support for packaging
[19 April 2016]
An enthusiastic standing-room-only crowd of more than 150 Chinese meat industry managers and technicians attended the 2016 Seminar on Cold Meat and Modified Atmosphere Packaging (MAP) in Shanghai recently. Speakers from Multivac, Bemis, DuPont and Linde described how MAP works and how it improves product appearance, extends shelf life and boosts safety. There was more than five hours of presentations at Multivac’s newly opened development and demonstration centre in Shanghai’s Waigaoqiao Free Trade Zone. Currently only a few companies in China use the technology, but its footprint is expanding quickly, according to participants at the seminar.
QL Resources to bring FamilyMart to Malaysia
[19 April 2016]
Malaysia’s QL Resources is making a foray into the consumer market by tying up with the world’s second-largest convenience store chain FamilyMart. The investment is seen as a move to expand its food business helping it grow its marine products and livestock value chain. “The convenience and proximity retail market is growing and there’s still opportunities for differentiation and additional players,” the company said. Maybank Investment Bank Research noted that the venture could be positive for the group if it manages to differentiate itself from existing competition by offering more food and fresh food lines, which carry better margins.
Legend Holdings to become seafood leader
[19 April 2016]
Chinese conglomerate Legend Holdings is setting its sights on being a leader in the seafood sector. The Hong Kong based company, which is the majority shareholder of PC maker Lenovo Group, inked a deal with Australia’s largest seafood firm, Kailis Bros in late March. Legend and Kailis have formed a joint venture called KB Food Group – 90% owned by the formers. Legend plans to use this as a starting point to build a seafood industrial cluster with a view to emerge a leader in the Asia Pacific region. Zhu Linan, Legend Holdings President said the company focuses on industries with enormous potential.
Japfa India inaugurates new feedmill in Bihar
[18 April 2016]
Japfa India recently inaugurated a new poultry feedmill in Bihar, East India. Around 600 dealers and farmers attended the ceremony. Ardi Budiono, Vice President – Head of Feed, told Asian Agribiz that the plant will strengthen its position in India as a leader in quality feed. Mr Budiono explained the plant, construction of which was completed in March 2016, has an installed capacity of 15,000 tonnes/month and is equipped with modern technology. Bihar was chosen as the location for its 4th feedmill since the state has become a key player in the poultry industry in India. “Given the population, economic growth and raw materials availability, the state offers immense opportunity for our feed business,” Mr Budiono said.
China Meat Association defends pork imports
[18 April 2016]
The China Meat Association (CMA) said the nation should stick to an open policy for the pork sector, in response to a public call to boycott imported pork products to protect the local industry. The arguments emerged in early April after WH Group, the Chinese owner of Smithfield Foods and the world’s largest pork company, said hog prices in China are too high and should decline by a half. WH Group has seen its 2015 net profit up 17.5% by expanding imports of US pork via Smithfield. China’s pork imports in 2015 rose 12.9% to 1.6 million tonnes or just 2.8% of local pork production last year. “Imported pork is competitive for its high quality and low prices,” the CMA said, adding that a lower stock of hogs has caused the high price of locally-produced pork.
Japfa Indonesia continues buying local corn
[18 April 2016]
Amid the termination of corn imports by the government, Japfa Comfeed Indonesia is currently buying corn from local farmers at USD 0.23/kg, which is slightly higher than the buying price (USD 0.20) of the State Logistic Agency. Boediato Soebijanto, Senior Vice President – Head of Marketing & Sales of Feed Division said the company’s average annual corn need is 1.5 million tonnes. “We purchase around 700 tonnes of corn per day from local farmers with a moisture content of 30-35%.” Regions in South Sulawesi like Sidrap, Gowa and Makassar are the main suppliers to the company.
Malaysia’s soybean imports forecast to increase
[18 April 2016]
Malaysia is expected to increase its soy imports this year, the US Department of Agriculture’s Foreign Agricultural Service said in a report. Imports increased slightly from 643,000 tonnes in 2014-15 to 650,000 tonnes in 2015-16, and is expected to reach 653,000 tonnes in 2016-17. Malaysia’s 2014-15 soybean imports, valued at USD 307 million, are in line with the projected increase in demand for swine and poultry feed, and also a slight increase in soy for human consumption.

25th National Hog Convention - Bacolod City, Philippines
Onsite with ISA Q TAN
[18 April 2016]

Philippine hog raisers celebrated a milestone with the 25th National Hog Convention held in Bacolod City, Philippines on April 14-16, 2016. While there is cause for celebration, producers united in their call to the government to address the continuing problem of agricultural, and particularly meat, smuggling in the country.

Smuggled meat pulls down pig price in the Philippines
Prices of live hogs in the Philippines has been on the decline, thanks mainly to unfair competition from smuggled pork meat. Vicente Mercado, Chairman of the National Federation of Hog Farmers Inc said at the opening ceremonies of the 25th National Hog Convention and Trade Exhibits that live price have gone down from about USD 2.42/kg in Luzon and USD 2.16/kg in the Visayas and Mindanao in November to the current USD 2.16/kg and USD 1.95/kg, respectively. Most affected, he said, has been the backyard pig farming industry, with more than 80,000 raisers stopping operations and losing their livelihood. He reiterated the united call of hog raisers together with other agriculture sectors for the government to act against smuggling, which he said has been “wreaking havoc” in the agriculture sector.

Small restaurants, eateries getting smuggled meats
These days, it is not only in the wet markets that local hog and pork producers are competing with smuggled meat, but in supplying to small restaurants and eateries as well. An industry player who did not wish to be identified told Asian Agribiz that traders have been offering smuggled meats to operators of small restaurants and canteens and as such demand for locally produced meat from this market has gone down. “This has really affected our market because there are many of these operators that previously were getting their meat from us, but are no longer doing so because they are offered cheaper imported meat.” He also noted that this raises questions on food safety because the smuggled meat may not be certified safe.

Hog raisers remain resilient
Despite the problems that continue to beset Philippine hog raisers, the industry has remained resilient, said the Pork Producers Federation of the Philippines Chairman Eliseo Yu. He noted that the industry has come a long way since the first convention was held in 1991, adding that unity has helped members weather the various challenges that the industry has faced and continue to face. He called on members not to be complacent but to continue to work together for development of the industry.

Ceva launches Cevazuril in the Philippines
Ceva Animal Health has launched Cevazuril for the control of diarrhoea caused by coccidiosis in suckling pigs. Coccidiosis is one of the most common parasitic diseases besieging pig producers worldwide. At the launch, Dr Mark Mombarg, Ceva’s Market Manager Asia for Swine, told participants that toltrazuril, of which Cevazuril is composed, has been proven effective against Isospora suis, the primary pathogen for coccidiosis in piglets, as it acts against all the intracellular development stages of coccidia.

Thailand's livestock industry prepares for drought
[15 April 2016]
Farmers in Thailand are preparing for a drought, Dr Ayut Harintranon, Director-General of the Department of Livestock Development (DLD) told Asian Agribiz. Small scale farmers who raise cows and buffalo in the north-eastern region, are already feeling the effects of the drought. “We are monitoring the situation. If there is a severe water shortage, we will coordinate with the army and help the farmers,” he said, adding the drought will drive up meat prices this year. Meanwhile, Pornsil Patchrintanakul, President of Thai Feed Mill Association said that the drought hasn't affected corn crops yet. “It will have little impact on animal feed,” he added.
Bulog to monopolise Indonesia’s corn imports
[15 April 2016]
Through a new regulation on corn imports, the State Logistic Agency (Bulog) is now the sole importer of corn for animal feed in the country. In the regulation, corn imports can proceed after the agency gets an assignment from the central government and recommendation from the Ministry of Agriculture. Meanwhile, import amount is determined and agreed at a coordination meeting with the Ministry of Coordinating Economics. On the other hand, the animal feed industry has slammed the new regulation. Anton J Supit, Chairman of the Indonesian Poultry Companies Association said Bulog should not monopolise corn imports.
China to expand soybean planting for local meal use
[15 April 2016]
China is planning to expand the area planted for soybeans for local meal use by reducing corn cultivation while leaving the oil-use soybeans to continue reliance on overseas imports. The Ministry of Agriculture will soon release guidance to promote soybean production in China, with aims to improve yield and quality, said Pan Wenbo, Deputy Head of the Planting Industry Management Division at the ministry. “We are not pursuing self-sufficiency but want to meet the growing meal demand,” Mr Pan said.
Vilomix sees potential for growth in Vietnam feed market
[15 April 2016]
Danish company Vilomix’s first feed production base outside Europe, a partnership with Hung Vuong Corporation, will be built in Long An, Vietnam. To be completed next year it will initially have a capacity of 20,000 tonnes, Peter Iversen, CEO, told Asian Agribiz. “Besides providing high quality products and knowhow, we believe in being close to our suppliers and our customers,” he said, adding that the company produces only customised premixes ensuring that their customers get as much out of the compound feed as possible as well as a perfectly balanced feed for their animals.
Floodplain conversion may increase Bangladesh’s aquaculture
[15 April 2016]
Bangladesh can increase its fish production by about 0.75 million tonnes by bringing 0.5 million ha floodplains under aquaculture by 2017, according to a study. If the floodplain areas are brought under the coverage of aquaculture by the period, the country will be able to earn additional USD 1 billion. The study suggested conducting a survey to ascertain floodplains and select 0.5 million ha in phases within 2-3 years, from the greater Mymensingh, Sylhet, Faridpur, Khulna, Jessore, Pabna and Comilla regions. According to official data, annual fish production has increased to 3.55 million tonnes in 2013-14 from 2.56 million tonnes in 2007-08.
High Australian cattle price squeezes Indonesian producers’ profitability
[15 April 2016]
Indonesian cattle importers and feedlot operators said their profitability is being squeezed by record high Australian live export prices. Prices for feeder cattle to Indonesia have risen sharply over 18 months, from USD 2.50/kg to USD 3.90, with importers having to pay over USD 4/kg for delivery. While the wet market price for beef knuckle in Jakarta is currently around USD 8.76/kg, it is not high enough to make a financial return given the current live cattle price, according to William Bulo from Juang Jaya Abdi Alam, a feedlot operator in Lampung. "If the retail price is too high, customers will stop buying beef altogether and find another cheaper protein source."

Web special
Modern meat retail picks up in the Philippines
Report by ISA Q TAN
[14 April 2016]

Modern retail is growing in the Philippines, having gone beyond the urban centres into the countryside as regional and nationwide supermarket chains push outwards into the rural areas. Meanwhile, consumers increasingly prefers convenient and accessible stores particularly those that are open after work hours. With this development comes changes in the way meat is sold in the market.

Demand for chilled meat on the rise
Meat shops and supermarkets continue to flourish alongside demand for chilled meat. About 20% of the country’s meat demand is now sourced at these modern retail shops, which sell fresh chilled meats. Noting the meat sold in these stores are now competitively priced compared to wet markets, industry players believe that retail volume in meat shops and supermarkets will grow faster than in wet markets. “More Filipinos are now aware that fresh chilled meat is safer than warm ‘freshly slaughtered’ meat they buy at the wet markets,” an industry practitioner told Asian Agribiz, adding that both the modern retail industry and the government have joined hands to educate consumers on the advantages of chilled meats.

Primal cuts giving way to choice cuts
Although most Filipino consumers still tend to buy primal meat cuts which they later cut into smaller pieces at home according to their needs, many have turned to buying choice or portioned cuts. “If you buy slabs of meat in the wet market, you are getting all the fat along with it because most of the time the seller won’t allow you to just buy the lean part,” Rodrigo de la Peña, who runs a meat shop in Quezon City, told Asian Agribiz. “With portioned cuts, you get more the kind of meat you want, and you don’t have to spend time cutting them up at home, so more convenient and less time-consuming.”

Cherry-picking still the norm
While a growing number of Filipinos are turning to meat shops and supermarkets for their meat needs, many still prefer to cherry-pick parts they want rather than buy pre-weighed and prepacked meat items. This is a holdover from a practice they are used to at wet markets, thus many stores continue to satisfy this preference, allowing customers to pick the parts and amount of meat they want. Another reason for cherry-picking is the fear of getting bad meat. “Many customers still have this mind-set that if they buy prepacked meat, they will find that inside there will be some not so fresh or not so good meat,” said Anthony Lozano of Fresh Options Meat Shops, adding that they tried selling prepacked and pre-weighed meat cuts in the past, but customers mostly ignored them.

Adding value to meat
As consumers increasingly call for convenience and ready-to-cook food products, meat retailers are stepping up by adding value to portioned cuts. It is common to find ready to cook marinated meats, such as those for barbecue and frying. Sold by weight or by piece, consumers are willing to pay extra for these products. Among the value added products are marinated and cured meats, native sausages, and other ready-to-cook meat preparations. “Our franchiser has formulations for these preparations,” a franchisee of one of the leading meat integrators in the country told Asian Agribiz. “So we just buy the mixes and spices from them and do the preparations in our store.”

CP Prima reports USD91.5m net loss
[14 April 2016]
Central Proteinaprima (CP Prima), Indonesia’s largest shrimp producer, processor and exporter, reported a net loss of USD 91.5 million and accumulated losses of USD 265.5 million in 2015, according to its annual report. As a result, independent auditors said: “These results may cast doubt about the subsidiaries’ ability to continue as a going concern.” The losses stem from the same source as in 2014 - the 2011 halting of shrimp farming in Lampung following the appearance of infectious myonecrosis virus, which decimated production on its main farm. The global decline in shrimp prices and foreign exchange losses in 2015 also negatively affected sales and income.
Indian researchers develop cheaper shrimp feed
[14 April 2016]
Researchers at the Central Institute of Brackishwater Aquaculture (CIBA) in Chennai, India have developed a locally formulated shrimp feed that cuts production costs by 20%. The feed is branded as Vannamei Plus, and is part of the “Make in India” push by Prime Minister Narendra Modi. The technology is attracting shrimp producers from states like Andhra Pradesh, Gujarat and Kerala. “One kilo of the commercial feed costs USD 2.1/kg to produce while with Vannamei Plus, the cost is just USD 1.4,” said Dr KK Vijayan, CIBA Director.
Vietnam reports H5N1 avian flu outbreak
[14 April 2016]
Vietnamese officials reported a new outbreak of highly pathogenic H5N1 avian flu to the World Organization for Animal Health (OIE) on Monday. The outbreak began on April 1 in a village in Nghe An province in the northern part of the country. Of 200 birds in the village flock, 100 were sickened by the virus and 50 died. The remaining 150 birds were culled to prevent the spread of infection. Health officials have implemented control measures, such as surveillance, vaccination, and disinfection of affected properties.
Brazil takes Indonesia to WTO over beef
[13 April 2016]
Brazil has launched a complaint at the World Trade Organization (WTO), to challenge Indonesia over its restrictions on Brazilian beef, the WTO said. Indonesia has 60 days to settle the dispute, after which Brazil could ask the WTO to adjudicate. On other developments, a poultry industry player told Asian Agribiz that it seems that Brazil is likely to succeed in this matter.
Thailand urges corn farmers to adopt good agricultural practices
[13 April 2016]
Thai Feed Mill Association, Ministry of Agriculture and Cooperatives and Ministry of Commerce are teaming up to encourage corn farmers to adopt good agricultural practices (GAP) and increase corn productivity, Pornsil Patchrintanakul, President of Thai Feed Mill Association told Asian Agribiz. In Thailand, corn planted area is estimated at 2.89 million acres, with 1.46 million acres cultivated in deforested area, he said. “We have so far introduced GAP to 40,000 acres of corn planted area. We aim to increase the number to 790,737 acres within 5 years,” Mr Pornsil said. GAP includes realigning farming systems, reducing fertilizer use and using water efficiently.
Malaysian-based e-commerce halal meat firm listed on LSX
[13 April 2016]
Malaysian-based DagangHalal, an e-commerce trading platform for halal products, was listed on the London Stock Exchange’s ISDX Growth Market, a market for small but high-growth firms. It listed around 58 million ordinary shares giving the company a market capitalisation of USD 20.5 million. DagangHalal said it plans to use some USD 5 million of the proceeds to “accelerate its growth strategy” by developing its sales and marketing departments as well as exploring new international markets. More than USD 1 trillion is spent on halal food and drink every year. DagangHalal hopes the listing on the LSX will enhance its ambition of becoming the single-platform solution for the B2B and B2C global halal trade.
Keystone China SVP: QSR sector partners must work together
[13 April 2016]
Equipment makers, ingredient suppliers, food processors and restaurants in the quick service restaurant (QSR) sector need to work together to adjust to changes in consumer eating habits, according to Wu Tong, Senior Vice President at Keystone Foods China. “We are all trying to understand the key changes in eating habits,” Mr Wu told Asian Agribiz.  Keystone is keen to work with innovative companies across the whole value chain to develop new approaches that will create value for consumers, he said.
Increased production cost affects prices in Pakistan
[13 April 2016]
The price of poultry products are still high in Pakistan’s twin cities Rawalpindi and Islamabad. The price of live chicken in the retail market reached USD 1.72/kg while eggs were being sold at USD 0.76/dozen. The high price has been attributed to increased production costs, according to Khalid Saleem Malik, Chairman of the Pakistan Poultry Association (PPA). He explained that production of corn and soybean is decreasing and farmers have to import from Brazil and other countries. He added that the price hike is temporary and due to low supply and higher demand.
KFC India partners with Mumbai Dabbawalas
[13 April 2016]
Yum! Restaurants, which operates the KFC chain in India, has tied up with India’s Mumbai Dabbawalas to deliver meals as it seeks new points of presence to increase sales. Mumbai’s Dabbawala system is over a century old and is a case study at the Harvard Business School for its low cost and six sigma quality. KFC is the first multinational food service retailer to tie up with it. “We are always on the lookout for the next big idea to engage consumers. We are doing everything that helps us increase our consumer base,” said Rahul Shinde, KFC India General Manager.
Japfa Indonesia to increase wagyu beef production
[12 April 2016]
Although the beef division of Japfa Comfeed Indonesia still recorded a loss in 2015, it managed to improve its performance over the previous financial year. The division, which is run by Santosa Agrindo, has started selling wagyu beef under the Tokusen Wagyu Beef brand targeting niche segments. Although its sales volume is still small, the product offers better margins. Expected to be a future sales contributor for the beef division, the company plans to increase the production capacity of its wagyu beef.
India’s GEAC considers GM feed ingredients
[12 April 2016]
While introduction of genetically modified (GM) crops in India remain debatable, some companies in the country have approached the government for approval to clear imports of GM feed ingredients for animals. The Ministry of Environment and Forest Genetic Engineering Approval Committee (GEAC) considered proposals from four companies for these ingredients from China, Brazil, Argentina, Vietnam, Singapore, Malaysia and the US. After considering the proposals, GEAC Member Secretary said that comments of the experts on the proposals are still pending. Experts expressed concerns saying animals are part of human food chain.
Farmers in China switch from corn to soybeans
[12 April 2016]
Corn growers in China are switching to soybean this year as the government reforms the corn cultivation sector by ending a near decade-old corn price support scheme. China said recently that it will stop its corn stockpiling program and allow markets to set prices. This move is expected to transform the agricultural landscape as farmers shift to more lucrative crops like soybean, rice and peanut. Meanwhile higher soy output in China is expected to hit farmers in top producing countries such as Brazil, the US and Argentina. “Soy prices have picked up and with government soy subsidies, we may be able to make USD 108-124 per ha,” said one farmer to Reuters.
Danish Vilomix to build first premix plant outside Europe
[12 April 2016]
Danish company Vilomix has partnered Vietnamese food company Hung Vuong Corporation to build a premix and vitamin factory in Vietnam. The plant will supply premix to Hung Voung as well as the open market. Chairman of the Board of Vilomix Holding A/S, Christian Junker sees the deal as Vilomix’s first step towards transforming the company from an international to a global player in the premix and vitamin sector. “We can now test ourselves on a remote market for the first time, where the commercial opportunities are enormous. Vietnam currently has over 4.2 million sows. There are 225 feed producers in Vietnam whom we want to offer products and services to in partnership with Hung Vuong,” he said.
Aman Feed of Bangladesh to invest in its associate company
[12 April 2016]
The board of directors of Bangladeshi animal feed producer Aman Feed recently decided to invest USD 313,000 in its associate company AKIN Feed, according to a statement posted on the Dhaka Stock Exchange. Aman Feed will invest the said amount in the ordinary shares of AKIN Feed as a sponsor shareholder equivalent to 49% of its initial total paid up share capital. AKIN Feed is a public limited company and its main business is the production of floating fish feed.

Vietnam introduces tougher laws for farmers using banned drugs
[12 April 2016]
The use of banned substances in animal farming in Vietnam can now lead to heavier punishment including 20-year imprisonment terms and fines of up to USD 4460, roughly five times more than the current fine. The new law will take effect July 1. Nguyen Van Viet, Chief Inspector of the Ministry of Agriculture and Rural Development, said the use of salbutamol in pigs in particular persists. Official data showed that 20 companies imported a total of 9.14 tonnes of salbutamol into Vietnam last year. Only 10kg were used legally in medicine.
New food safety institute for Asean
[11 April 2016]
The Asean Risk Assessment Centre for Food Safety (ARAC) was recently launched to oversee the safety of food in Southeast Asia. "ARAC is an important landmark that will contribute towards safe and quality food in the Asean community as well as in facilitating food trade within the region,” Malaysian Minister of Health, Dr S Subramaniam said. The new institute aims to be a regional coordinating centre for independent food safety risk assessment, formulate scientific opinions and provide advice on the safety of food. ARAC will provide the future basis for Asean policies and legislation for the safety of food and feed produced, sold or traded in the region.
Japfa Indonesia’s sales up 2.3%
[11 April 2016]
Indonesia’s animal protein company Japfa Comfeed Indonesia managed to record sales of USD 1.9 billion in 2015, a 2.3% increase over the previous year. Due to this increased performance, the net profit grew by 33.8% to USD 39.7 million. Animal feed division was still the largest contributor to the sales, with a contribution of 45%, followed by the commercial poultry farm and chicken slaughterhouse division (30.5%), poultry breeding (9.4%), aquaculture division (6.7%) and beef division (4.2%).
Punjab government supports pig farming
[11 April 2016]
India’s Punjab government is moving to boost the development of pig farming in the state. The Department of Animal Husbandry, Dairy and Fisheries is encouraging youth to raise pigs. Gulzar Singh Ranike, Minister of the department said there are about 230 pig farmers and 50,000 pigs in Punjab. In 2014-15 the state produced about 76,000 tonnes of pork. To support pig farmers, the state government has set up four breeding farms. It plans to sign an MoU with the British Pig Association to ensure more advanced and scientific techniques on the farms.
S Korea’s CJ CheilJedang bets on edible insects industry
[11 April 2016]
South Korean food manufacturer CJ CheilJedang Corp has signed an MOU with Korean Edible insect Laboratory Knowledge Coop to research and develop food using insects. This market in South Korea is estimated at USD 8.6 million in value, but is growing fast. Insects such as mealworms, grasshoppers, crickets and honey ants, commonly used as food resources, are known to be rich in protein, minerals and unsaturated fatty acids. “The research is still in its infancy,” said Moon Byung-seok, Head of Food Research and Development Institute at CJ CheilJedang. “We aim to develop edible insect food that people feel comfortable eating.”

Livestock Export Program Expo 2016 in Tangerang, Indonesia
Onsite report by ARIEF FACHRUDIN
[11 April 2016]

Indonesia allocates USD98.65m for breeder cow imports
With an aim for feeder beef cattle self-sufficiency, Indonesia this year plans to import 50,000 heads of breeder cows from Australia. Muladno, Director General of Livestock and Animal Health said the cows will be distributed to farmer groups in different regions in the country. “This project will require USD 98 million,” he told Asian Agribiz. Dr Muladno explained that livestock and veterinary experts, feedloters and academics will be enlisted to ensure the success of the project. He added that the government is considering abolishing the import duty for breeder cows which is at 5% currently.

Traders interested in imports from zones within countries
Following the release of the Government Regulation (PP) under the Animal Husbandry and Animal Health that allows import of meat and livestock products from zones within countries, Mr Muladno told Asian Agribiz that several importers have shown interest in meat and cattle imports from India, Brazil, Mexico, Spain and Belgium. “From India, they want to import carabeef, while from Brazil, Mexico, Spain and Belgium they want to import live cattle,” he said.

Challenges in beef cattle breeding
Beef cattle breeding is not easy said Dayan Antoni, Head of Breeding Division of Japfa Indonesia’s subsidiary Santosa Agrindo. 'To succeed feed cost, technical knowledge, calve birth management, economies of scale and financing are crucial. Another challenge is there are no low interest loans, so the government should intervene,” Mr Antoni said. On feed cost, he said palm-cattle integration and pasture based breeding are systems with low feed cost. He revealed that Santosa Agrindo is now developing beef cattle breeding in Kalimantan with a palm-cattle integration system.

GGL’s cattle partnership project progresses well
Gunung Sewu Group’s subsidiary Great Giant Livestock (GGL) is developing its beef cattle partnership project with small scale farmers in Lampung. The project, which was started in 1991, has been progressing well. In its first partnership model, farmers have to have cattle while GGL gives technical assistance and helps to market the finisher cattle. The total population of this model last year reached 2866 heads. In the second model, GGL provides the cattle, gives technical assistance and helps to market the finisher cattle. The total cattle population of this model last year reached 1930 heads, and is expected to increase to 2340 heads this year.

Danish Vilomix to build premix factory in Vietnam
[08 April 2016]
Danish company Vilomix has partnered with Vietnamese food company Hung Vuong Corporation to build a premix and vitamin factory in Long An, Vietnam. Vilomix will own 70% and Hung Vuong 30% of the factory. Construction is expected to start in May and completed by April next year. To manage the building process Vilomix has formed a new subsidiary called Vilomix Vietnam LLC. The premix plant is intended to meet Hung Vuong’s diversification into pig production. Hung Vuong’s primary focus is on pangasius farming and export. "It aims to farm 100,000 sows with Danish genetics by 2020,” said Vilomix CEO, Peter Iversen. He added that Hung Vuong is currently building a new 500,000-tonne feed factory. Vilomix is expecting to supply premix and vitamins to this plant.
Thailand to decide on TPP this month
[08 April 2016]
General Prayuth Chan-o-cha, Prime Minister of Thailand, is expected to make a decision on whether Thailand will join the US-led Trans-Pacific Partnership (TPP) at the end of this month. At a dinner in Washington, Mr Prayuth said that there are two relevant international agreements which are Regional Comprehensive Economic Partnership (RCEP) and TPP. “I see a need for us to integrate the region’s economy through RCEP and TPP in a way that is complimentary,” he said. However, Thailand's livestock industry has voiced concerns against joining the TPP, citing severe negative effects to the industry.
McDonald’s plans for 1500 new outlets in China, South Korea, Hong Kong
[08 April 2016]
McDonald’s Corp plans to open 1500 new restaurants in China, South Korea and Hong Kong. The company said it is looking for partners to help finance the expansion and will give local managers more decision making power to respond to Asian customers. “Asia represents a significant area of opportunity for McDonald’s to blend our global quality standards with local insights and expertise from partners who share our vision and values,” said CEO Steve Easterbrook. McDonald’s currently has 2800 restaurants in China, South Korea and Hong Kong, most of them owned by the company.
Nepal to step up meat shops surveillance
[08 April 2016]
Nepal’s government will step up surveillance of meat shops and slaughterhouses in Kathmandu. The Ministry of Livestock Development (MLD), in conjunction with thr Ministry of Agriculture Development, and Ministry of Commerce and Supplies, is coordinating the inspection as cases of meat shops selling rotten meat have increased. Shyam Prasad Poudel, MLD Joint Secretary said many meat shops do not follow basic hygiene and openly cull animals on the roadside.

LEP Expo 2016 in Tangerang, Indonesia
Onsite report by ARIEF FACHRUDIN
[08 April 2016]

The LEP Expo 2016 (Livestock Export Program) by Meat & Livestock Australia (MLA) in partnership with the Australian Livestock Export Corporation (LiveCorp), opened in Tangerang, Indonesia on April 6. It aims to provide information on products, services and technology for the meat and livestock industry players in Indonesia to improve supply chain efficiency and animal welfare.

Australia will continue to support Indonesia’s meat, livestock industry
Investments in the beef cattle feedlot sector in Indonesia have been significant in the last few years. The growing population and increased buying power have convinced investors of the potential of the beef market in the country. Opening the expo, David Galvin, LiveCorp Chairman said the Australian counterparts will continue to support Indonesia. “We are here to share information and add value to the supply chain of livestock and meat in Indonesia.”

Jakarta to centralise poultry slaughter
In order to ditch live bird trading in traditional markets and improve veterinary health status, the Jakarta government through PD Dharma Jaya plans to centralise the slaughter of poultry in the capital city. Dharma Jaya this year will set up 12 slaughterhouses – with a slaughter capacity of 1000-1200 birds/hour per unit – in Pasar Palad, an area dedicated for this purpose. An industry player met by Asian Agribiz said the project, which will start in the second semester of this year, needs an investment of around USD 2.8 million. “The slaughterhouses will be managed by 12 groups of poultry traders under the supervision of Dharma Jaya. The slaughterhouses are targeted to process 120,000 birds/day and produce chilled dressed birds,” he said. “This project will be a pilot project for other regions in the country.”

Indonesia’s meat processing industry expects to grow 20%
Indonesia’s meat processing industry is expected to grow at 15-20% this year following economic recovery in the country, said Budi Wahyu Setiadi, Managing Director of Javatec Food Technology. Mr Setiadi told Asian Agribiz that many meat processing companies are confident that the economy will improve this year. "They plan to invest in new equipment, facilities and production capacity expansion at existing facilities,” he said. In addition, “there are also new players who will invest in chicken processing and further processing facilities,” he added.

BRF opens investment office in Malaysia
[07 April 2016]
BRF SA, a global food company responsible for 14% of the world's poultry trade in 2015, has announced the opening of an office in Malaysia. It will serve as BRF’s national base in Malaysia and underlines the importance of Malaysia to the company. “This office will enable BRF to quickly establish and strengthen key relationships, gather critical information and accelerate our on-going business development and feasibility studies to invest in Malaysia, which will be completed in the next few months,” said Simon Cheng, BRF Asia General Manager. Laurent Levan has been appointed Country Manager (Malaysia) and will head this office.
Japfa Indonesia allocates USD53m for chicken slaughterhouses
[07 April 2016]
With per capita chicken consumption of only around 9.5-10kg and a population of 250 million, the business prospects of Indonesia’s poultry industry is still attractive. Last year, the gross sales of Japfa Comfeed Indonesia’s commercial poultry farm and chicken slaughterhouse division increased 9.12% to USD 780 million. Triggered by the business prospects, the company plans to set up more modern chicken slaughterhouses this year with an investment of around USD 53 million. The slaughterhouses will guarantee the availability of halal and hygienic chicken meat with good traceability. The company currently has modern slaughterhouses in eight locations throughout Indonesia.
China’s feed industry going through consolidation  
[07 April 2016]
China’s feed industry is currently facing overcapacity and the industry may go through a consolidation phase, Marcel Scherrer, Managing Director of Feed Division at Bühler AG told Asian Agribiz. “Many Chinese customers are now looking for opportunities on how to leverage off this phase,” he said. Southeast Asia sees continuing growth in the feed industry and demand for meat and aqua products are increasing. Bühler see growing demand for capacity in the region, he added. Meanwhile, feed producers are placing more emphasis on safe feed production. “They are looking for ways to produce hygienic feed,” he said, adding that customers are looking for complete solutions and efficient plants.
Wenger sees potential in aqua feed machinery in Asia
[07 April 2016]
“Business opportunities in Asia are quite high”, Joseph P. Kearns, Vice President of Aqua Feed Division at Wenger told Asian Agribiz. Asia is the aquaculture centre of the world and it is projected that requirement for aquaculture will double over the next 15 years, he added. Wenger manufactures animal feed equipment including aqua feed production equipment. “Our equipment is technically advanced and sophisticated and this allow our clients to maximize earnings while making a superior product,” he said. Meanwhile, Wenger needs to understand indigenous ingredients that clients want to use and design equipment that can use those ingredients effectively. Wenger has a sales office in Taiwan and has agents in many countries in Asia.
Vietnam closer to receiving chicken from China
[07 April 2016]
Vietnam may soon receive slaughtered chicken from China via official channels if Vietnamese and Chinese animal health agencies reach a consensus on the issue. Farmer associations, however, are uncertain of the effects. Food safety issues and the outbreak of the bird flu virus in China are some reasons. Between September 2015 and February 2016 44 flu cases and 10 deaths were reported. Nguyen Van Ngoc, representing farmers in the east of the southern region, said imports of Chinese poultry products could see a rise in ‘trade fraud’. “More waste chicken and ‘dirty meat’ will flow into Vietnam,” he said.
Singapore AVA warns against using meat glue to cheat
[07 April 2016]
Using meat glue with the intention to pass off reformed meat as more expensive cuts is not permitted, said an Agri-Food and Veterinary Authority of Singapore (AVA) spokesman. “This is not permitted as it would be potentially misleading to consumers.” Transglutaminase has been assessed to be safe and permitted for use in countries like Australia, New Zealand, Canada and the US, said the spokesman in a report in The New Paper. Singapore allows transglutaminase to be used as a general purpose food additive. “It is allowed to be used as a processing aid, under good manufacturing practice, in processed meat and fish products such as surimi, ham and fish balls to bind proteins together in the meat.”
Black chicken gains ground in South India
[07 April 2016]
Kadaknath, a breed of black chicken found in India’s Madhya Pradesh, is slowly becoming popular in South India. A Kochi based entrepreneur, K Georgekutty, who has a Kadaknath breeding farm is now helping set up poultry centres in Kerala, Andhra Pradesh and Tamil Nadu. “I also provide the incubator and give guidance to successfully hatch the eggs. Many rural women are gainfully employed in the project, which will soon be launched in Manipal in Karnataka,” Mr Georgekutty said. Scientific studies have shown that Kadaknath has high protein, iron and low fat content and is beneficial for people suffering from asthma, cardiac disease and other ailments. Meat of the black chicken is priced around USD 9.06-10.57 per kg.
Indonesian feedmillers to import corn directly again
[06 April 2016]
Indonesia will issue rules soon that will allow feedmillers to import corn directly once they have secured approval from the Ministry of Agriculture after imports of the grain were disrupted in 2015. “We can’t stop this. This business needs to make long term plans and policy changes can’t be abrupt,” said Karyanto Suprih, acting Director General of Foreign Trade. Indonesia, which imports corn mainly from Argentina and Brazil, temporarily stopped issuing corn import permits to feedmillers in July 2015, with the government making a broad push for food self-sufficiency and channelling imports through Bulog, Indonesia’s State Procurement Agency.
More further processing turnkey projects in China
[06 April 2016]
H-Plus Machinery Co, a Shanghai-based meat processing equipment distributor in China which represents more than 20 international brands such as Provisur and Foodmate, told Asian Agribiz that it will focus on further processing turnkey projects in coming years, with more attention to lines for Chinese-style meals. “There is a great potential for automated manufacturing of Chinese-style meals, as China has been speeding up urbanisation, and more young consumers can afford hygienic and consistent meat products,” H-Plus General Manager Peter Sun said.
CAB Cakaran to venture into biomass energy production
[06 April 2016]
Malaysian poultry integrator CAB Cakaran Corporation Bhd said it hopes its new biomass power generation business will generate 10% of its turnover in two years. The plant will be able to produce about 300 tonnes of biomass waste daily from chicken droppings. “This can produce more than a megawatt of power. The project should commence by the end of the year and is expected to be ready for operation in 2018,” said Managing Director Chris Chuah. CAB Cakaran said the acquisition will enable CAB Amesist Biomass Generation Sdn Bhd, its 51%-owned unit, to operate the plant.
Fujian Sunner starts cooked meat supply to McDonald's
[06 April 2016]
Fujian Sunner Development Co, an integrated chicken processor headquartered in southeast China, said it trucked about 20 tonnes of crispy chicken drumsticks and McChicken steaks to McDonald’s in late March, making it the first local Chinese supplier of cooked meat products for the fast-food giant. The products were from the company’s Zixi factory in neighbouring Jiangxi province, it said in a statement on April 1. Sunner currently has five processing plants for cooked products, with a combined capacity of more than 150,000 tonnes a year. Sunner has been supplying cooked chicken to major supermarkets like Wal-Mart and Carrefour in China. It also ships products to Japan and South Korea. In 2015, its exports exceeded USD 53 million.
Thai Union to purchase 40% stake in India’s Avanti Feeds
[06 April 2016]
Thai Union (TU) said it will spend USD 18.93 million to acquire a 40% stake of Avanti Frozen Foods Private Limited India (AFFPL), a shrimp processing unit of Avanti Feeds Limited. TU said that the deal will diversify its shrimp sourcing and add production capacity to meet growing demand. The deal will also help compensate TU’s current raw material shortfall in Thailand. “Avanti Feeds has been a long term partner in India,” said Thiraphong Chansiri, President and CEO of TU. He added that India is becoming an important shrimp processing base for export. Meanwhile, AFFPL is building a new facility at Yerravaram in East Godavari District, which will triple its production capacity to 75 tonnes per day.
CJ CheilJedang to continue to grow its presence in Vietnam
[06 April 2016]
Despite failing to acquire a 14% strategic stake in Vietnam's state-owned food processing  company Vissan, CJ CheilJedang, which owns a farm and four processing plants in Vietnam as well as a retail division, said it will pump another USD 500 million into the country via direct investments and mergers and acquisitions. This will bring its total investments in Vietnam to USD 900 million. It aims to make Vietnam its second largest production hub after China outside South Korea.
Hormel to triple meat processing capacity in China
[05 April 2016]
Hormel China is expected to add another 50,000 tonnes to its annual meat processing capacity, which currently stands at a combined 25,000 tonnes. This will be realised with the launch of a new facility in eastern China’s Zhejiang province which will be operational at the end of 2016, Swen Neufeldt, President Asia Pacific for Hormel Foods International, told Asian Agribiz. “Probably the biggest difference for the Jiaxing facility is that we will be adding canning capacity. We plan to produce Spam luncheon meat locally in China,” Mr Neufeldt said. All the company’s meat factories are capable of producing a full portfolio of frozen to chilled products, he added.
Indonesia’s sbm consumption to rise
[05 April 2016]
Indonesia’s soybean meal (sbm) consumption is expected to grow by 8% in 2015/16 and 2016/17, alongside the general growth of feed corn and poultry production, according to a USDA GAIN report. Total consumption is predicted to reach 407,000 tonnes in 2015/16 and 439,000 tonnes in 2016/17. Indonesia does not have a soybean crushing industry, and relies entirely on imports to fulfill its sbm requirement. In 2014/15 the country imported 3.84 million tonnes of sbm, while in 2015/16 and 2016/17 the imports are set at 4.1 million tonnes and 4.3 million tonnes respectively, the report said.
Packaging helps promote poultry brands in China
[05 April 2016]
Chinese-style meat products are drawing more attention from international providers of processing and packaging solutions, as many of the products are branded and attract a growing number of young consumers. “Most urban consumers in China may try Western meat products once a month, but they consume the Chinese-style poultry products more frequently,” Jens Richter, Managing Director China for Multivac told Asian Agribiz. “The MAP packages are not only a guarantee for food safety and a longer shelf-life, but also a platform for the processors to display their brands in an attractive manner,” Mr Richter said.
India expected to record single digit shrimp export growth
[05 April 2016]
Following lower international demand and last year’s floods, India’s export growth for frozen shrimp could drop to a single digit this year. India’s Marine Products Export Development Authority said exports of all marine products, of which frozen shrimp makes up two thirds of overall value, hit 421,385 tonnes for the first half of the 2015/16 year. That represents a 14% drop in value and a 4.5% fall in volume compared to the previous period. Several Indian states have cut back their fishing season to meet conservation rules. “This will have an impact on shrimp exports from India,” said Rustom Irani, President of the Indian Seafood Exporters Association, adding that shrimp farming growth has also slowed because of floods and disease outbreaks.
ChicKing to open 20 outlets across Indonesia
[05 April 2016]
ChicKing, a Fried chicken QSR headquartered in Dubai, UAE recently signed an MoU with Indonesia’s Ayam Top Dubai (ATD) to open 20 ChicKing outlets across Indonesia in the next five years. Hengki Setiawan, ATD President Director said the company plans to open outlets in Greater Jakarta, Bandung (West Java) and Surabaya (East Java) in the next two years. “We will then target outlets in Makassar, Medan, Aceh, Yogyakarta and other satellite cities.” Mr Setiawan said one outlet will cost around USD 120,000-190,000. Halal products will be the selling point for ChicKing.
South Korea finds AI on duck farm in Icheon
[05 April 2016]
South Korea recently found avian influenza (AI) in ducks on a poultry farm, 80km east of Seoul, according to an official of the Ministry of Agriculture. It came as the first discovery in four months and was been detected 30 days after the country regained its AI free status. The case included a strain called H5N8, which is the same strain that occurred in November 2015. The official said that all 11,604 ducks at the infected farm were culled.

Strong technical program defines Pig Feed Quality Conference
[04 April 2016]

Asian Agribiz’s 2016 Pig Feed Quality Conference that was held in Bangkok Thailand from March 31-April 1 was a resounding success with close to 250 regional and foreign participants. As in the past, the conference featured a strong technical program addressing fundamental themes which can enhance the performance, quality and profitability of your pig and feed production. This year, the theme ‘Science, trials & application’ saw speakers present a strong technical program with invited papers detailing the latest regionally relevant research-based knowledge to address key issues for the Asian pig industry.

SIDAA, more accurate on nutritional quality compared to crude protein
Protein evaluation based on standardised ileal digestibility of amino acids (SIDAA) offers greater accuracy on nutritional quality compared to an evaluation on crude protein and ileal digestibility as what is absorbed from the large intestine is of no nutritional value to the animal. But, amino acids absorbed from the small intestines are of nutritional value. Using this assessment Prof Julian Wiseman’s research to assess the potential for greater inclusion of home-grown legumes such as peas and fava beans as a replacement for soybean meal (SBM) showed interesting results. “Balanced for energy and SIDAA, growth performance and carcass quality on diets based on legumes are no different from pigs fed a diet based of SBM,” he said. Data based on faecal digestible AA meanwhile indicate that performance and carcass quality would have been worse with these raw materials.

Fine-tuning feeding of sow and litter for piglet survival and quality
Piglet survival and quality is influenced by the feeding strategy in the gestation and lactation period. Fetal growth mainly increases from day 70 of pregnancy onwards. René Bonekamp, Swine Specialist, EMEA, DSM Nutritional Products, highlighted the importance of protein and amino acids, fibre, fats and vitamins during this period. “Increasing protein and amino acids between 30-100 days of gestation improves piglet quality,” he said. More fibre in late gestation shortens the birth process by 25 minutes and subsequently colostrum intake of piglets. Fat and fatty acids have a positive influence on the duration of the birth process and litter size. Finally “vitamins such as E and C in combination with selenium can reduce oxidative stress during high productive processes like birth, lactation and mating”.

Digestibility of different soybean products fed to pigs
In her meta-analysis, Juliana A Soares Almeida, Adjunct Professor, Missouri Baptist University, US, determines if standardised ileal digestibility (SID) of crude protein (CP) and amino acids (AA) in different soybean products are different, and if the body weight of pigs influences SID of CP and AA. She said overall, the SID of CP was greater for soy protein concentrate (SPC). The SID of lysine did not differ among SBM 44%, enzyme treated SBM, SPC and soy protein isolate (SPI) when pigs of all ages were included in the analysis. However, there was an effect on body weight because SID of lysine was greater for SPC and SPI when compared with SBM 48% and fermented SBM when pigs were less than 20kg. She said, smaller pigs have lower SID of AA and CP than older pigs.

Adjusting DEB for sow and piglet feed
Heat stress limits feed intake, increases water consumption and impairs the acid-bases balance by losses of electrolytes. Sows, specifically, will see difficult farrowing conditions, stillborn births and low milk production. Young piglets, meanwhile, will experience low growth rates, poor feed conversion ratio and risks of diseases. Gilles Langeoire, Senior Consultant at Gilles Langeoire Consulting, France, said the control of adequate dietary electrolytic balance (DEB) value will reduce the risks of sanitary and economic issues faced in hot climates. For sows, Mr Langeoire proposed adjusting Na bicarbonate and chlorides to achieve 180-200 meq/kg for gestation, 130-150 meq/kg for farrowing and 250-300 meq/kg for lactation. For piglets a balance of around 200 meq/kg will improve feed intake, growth rate and digestibility of dry matter and protein.

Organic acids and plant extracts for better gut health
Nutraceuticals or functional foods such as plant extracts and organic acids are foods with ingredients either naturally occurring or added that provide a health benefit beyond the traditional nutrient value of the food. These have become increasingly common especially after restrictions and bans on the use of antibiotics. They help to maintain technical performance and control enteric bacterial diseases. Graziano Mantovani, Cargill’s Provimi Technology Application Lead for Southeast Asia, said new thinking is now focused on how essential oils and organic acids can be used to improve gut health. “Evidence suggests that the dual mode of action can complement traditional antibiotics by helping to maintain equilibrium in the gut microbial population,” he said.

Lysophospholipids to improve fat digestibility
For the sow feed intake goes down and they eat less after birth. This is a natural process because the sow is tired and stressed but they produce more milk for the piglet, said Dr Chinnadurai Sugumar, Product Manager at Kemin Industries Pte Ltd. “So some nutrient loss from the body is expected,” he said, adding this is called the negative energy balance, which means energy intake is less than energy output. “The only solution is to improve the energy density of the feed. The problem is more fat is not digestible,” he added. Hence, farmers should give lysophospholipids to the sow because they help digest the fat in the sow diets and release more energy. This will help with better meat production, he said.

Feeding strategies to cope with heat stress
Sows nowadays are more productive and efficient. However, they are less tolerant to heat stress, said Dr Bruno Silva, Professor in swine nutrition and production at Universidade Federal de Minas Gerais in Brazil. “We have to work on feeding strategies that can help the sows reduce the negative impact of heat stress,” he said. A reduction in crude protein content, will reduce the thermal effect of feed. Another alternative is to work with feed stimulation. “This includes working with flavours that can help sows increase feed intake under heat stress conditions,” he added. “You will never get a feeding strategy that will actually mimic the same effect of environmental changes,” Dr Silva said, adding that changing the microclimate is the best way.

Taking NIR to enhance pork production profitability
Near infrared reflectance spectrophotometry (NIR) is a cost effective and fast technology for predicting chemical and physical composition of feedstuffs. This allows nutritionists to expand the range of their analysis and get quicker results on the ingredients and feed being analysed. Dr Hadden Graham, Global Technical Director, AB Vista said that the future of NIR lies in development of technology. “It has been a movement from laboratory-based equipment into inline mobile-based equipment,” he said, adding nutritionists can use these hand-held web-enabled applications on the farm and outside the mill. Moreover, nutritionists can put all the calibration on one central computer, trial the NIR machine into that computer. “All you have to do is take a spec of your feed or raw material, download and get back the analysis within five seconds,” he added.

Optimum vitamin nutrition is essential for better performance
Vitamins are essential micronutrients, which are required for optimum health and normal physiological functions such as growth, development, maintenance or reproduction of the animal, said Dr Gilbert M. Weber, Senior Science Fellow, DSM Nutritional Products. Vitamins exercise catalytic functions and they facilitate both synthesis and degradation of the nutrients, thereby controlling the metabolism. Most vitamins cannot be synthesized by the animals and therefore they must be obtained from the feed. In case of a temporary or chronic undersupply with vitamins, Dr Weber said that animals will suffer from subclinical deficiency, impacting on performance, health and welfare. Clinical vitamin deficiency also results in growth depression, deterioration of feed conversion as well as in irreversible serious disorders of various origin, which can lead to death of the affected animal.

Nutritionists have to understand the immune system of pigs
The activation of the immune system will lead to a shift in the metabolism of piglets and negatively impact performance by decreasing feed intake and lowering average daily gain, said Dr Fellipe Freitas Barbosa, Globigen Product Manager at EW-Nutrition GmbH. “Nutritionists have to be aware of these changes and we have to understand that the requirements of the piglets are different when facing a disease,” he said, adding that the immune system has its own set of nutritional requirements. Right after birth and the first weeks after weaning are critical moments for piglets. “We have to use specific immune-ingredients and additives,” he added. At the end, a healthier piglet will always have the potential to perform to its full capacity resulting in higher output, lower costs and therefore higher profit.


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