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3 June 2015
|Sido Agung inaugurates fifth mill |
[02 June 2015] Indonesia’s Sido Agung Agro Prima last week inaugurated its new feedmill in Cirebon, West Java. The mill, which will produce mainly poultry feed, is the company’s fifth. It will service markets in Banten, Jakarta, West Java and Central Java. Bram Sebastian, Operational Director, said the mill cost the company around USD 49 million. “It has an installed capacity of 300,000 tonnes/year. With the addition of this new mill, our total capacity has increased to 900,000 tonnes/year,” Mr Bram said, adding that the other four feedmills are located in Sidoarjo and Pasuruan in East Java, Makassar in South Sulawesi and Magelang in Central Java.
|Avian Flu challenging global trade |
[02 June 2015] The global trade streams and poultry prices are expected to remain under pressure for the remainder of 2015, due to the impact of avian flu stated Rabobank in its Poultry Quarterly Q2 report. The long-term impact may be significant due to several trade bans. "Poultry industry fundamentals are facing meaningful headwinds with stronger than expected feed prices due to a strong US dollar, increased competition from falling pork prices and restrictions on trade," says Rabobank animal protein analyst Nan-Dirk Mulder. "Prices for whole chicken, leg quarters and chicken feet are declining further, while breast meat prices remain relatively strong." The report stated that many countries in Asia, including China, who have implemented restrictions on trade on breeding stock might be affected by low supply next year due to expected future shortages in local breeding value chains.
|Indonesian poultry stocks back to prospective |
[02 June 2015] In the face of school holidays and Ramadhan, the stocks of Indonesian poultry companies are back to prospective status. Taye Shim, Research Head of KDB Daewoo Securities, said during the period poultry products consumption will escalate. “We have seen the price of poultry products such as chicken and eggs reverting to normal. So this is the right time for investors to back the poultry sector,” he said. Besides, Mr Taye also sees clear income visibility of the sector due to the increase in selling prices and production volumes in the next two to three months. Poultry companies that are listed in Indonesia’s Stock Exchange are Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Malindo Feedmill and Sierad Produce.
|Canada detains corn imports from India|
[02 June 2015] The Canadian Food Inspection Agency has detained corn shipments from India after the agency found high levels of aflatoxin, a toxic element linked to various diseases. In a notice, the agency informed that this measure was necessary to prevent contamination of livestock feed and to protect Canadian livestock and public health. The agency will detain all incoming shipments of corn from India, including organic corn, intended for use as livestock feed until it has been tested for aflatoxins. “Importers must sample the imported corn upon arrival in Canada and provide test results to the agency,” the notice said.
|Altor and Goldman Sachs to acquire Hamlet Protein|
[02 June 2015] Altor Fund IV and Goldman Sachs Merchant Banking Division are partnering to acquire the majority of Hamlet Protein from Polaris Private Equity and the founder of the company, Ole K Hansen. Hamlet Protein, a global provider of soy-based protein solutions used in high value-add animal feed for young animals, services more than 50 countries from its two production facilities in Horsens, Denmark and Findlay, Ohio. Søren Munch, CEO of Hamlet Protein said: “With the strong support of Altor and Goldman Sachs Merchant Banking Division we are uniquely positioned to accelerate the development and growth of Hamlet Protein and better service our customers and partners globally.”
|Malaysia exports frozen chicken to Japan|
[01 June 2015] Malaysia has resumed shipping frozen poultry meat to Japan. “On April 1 three containers of frozen chicken meat was shipped to Japan from one processor in Perak,” Dr Kamarudin Md Isa, Deputy Director General (Veterinary Health), Department of Veterinary Services, Malaysia, told Asian Agribiz. “There are a total of 13 processors from the states of Perak, Selangor, Negeri Sembilan and Malacca who are able to export to Japan. They are in the process of finding their own importers in Japan.” He said Japan has agreed to import poultry from Malaysia because the country has been free from bird flu disease since 2007. Japan is also satisfied with the compartmentalisation practice where Newcastle disease is concerned. “The import requirements are stringent in Japan. The country wants quality and safe food. Japan is also developing its halal market in the light of the 2020 Olympic Games.”
|Heat waves claim 7 million birds in India|
[01 June 2015] An unprecedented heat wave in Telangana and Andhra Pradesh states in India led to the death of about 7 million birds last week. G Ranjith Reddy, President of Telangana Poultry Breeders Association told Asian Agribiz that the poultry industry has incurred losses to the tune of USD 16 million because of the weather. According to him, temperatures touched 49 degree Celsius in some parts of these states paralysing normality. “This has come as a shock to the poultry industry in this region, which is recovering from an avian influenza outbreak,” he said.
|Fast Food Indonesia optimistic of 12% growth in Q2|
[01 June 2015] Fast Food Indonesia’s income in Q1 2015 did not reach the growth target of 7-10%. The operator of KFC in Indonesia only recorded around USD 76 million or an increase of 3.4% compared to the same period last year. Director Justinus Dalimin Juwono said the income growth slowed down due to the weak purchasing power caused by currency depreciation and raw material price increase. “However we are optimistic that income in Q2 2015 will escalate by 10-12% led by school holidays and Ramadhan,” he said. Mr Justinus revealed that in Q2 the company will open 12 new outlets in Jabodetabek, Central Java, East Java and Sulawesi. Meanwhile in Q1 it opened 13 new outlets in the same regions. Mr Justinus also said that the company plans to improve its online order & home delivery system.
Brighter days for pork industry in SEA/China
[01 June 2015]
Weather, diseases, costs continue to weigh on the pig industries in Southeast Asia and China, but brighter days might be in the offing for producers. Read this as well as a comprehensive report in Asian Pork Magazine this June
Prices to remain stable
Farm prices of hogs and retail prices of pork in the Philippines have remained stable since the beginning of the year, and despite the expected drop in consumption in the third quarter when the rainy season sets in, prices will likely remain stable. Edwin Chen, President of the Pork Producers Federation of the Philippines, told Asian Agribiz that the current rate at which traders are now buying live pigs might mean a tighter supply in the third quarter. Even the supply of culled sows and oversized pigs is down. “This could mean that despite lower demand during this period, we may not see prices reducing,” he said.
Hot weather pulls down supply
The hot summer weather that has led to lower pig weights and a decline in overall pork supply in Thailand. Coupled with farmers’ earlier bouts with PEDv and PRRS, this has kept farm prices of pigs steady at a “fair level,” Surachai Sutthitham, President of the Swine Raiser Association of Thailand told Asian Agribiz. The onset of the rainy season, however, is expected to improve farm conditions and animal performance. Meanwhile, pig farmers in northeast Thailand say prices are likely to remain steady and may even increase in the next 3-4 months, boosting demand for commercial piglets.
Festivals to push up pig demand in Indonesia
Indonesian pig producers can look forward to a better second half thanks to festivals that are happening in various parts of the country. In Bali, the Galungan festival in June/July is expected to push up demand for pigs, Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia told Asian Agribiz. Similarly, pig farmers in North Sulawesi, who suffered low prices last year, reduced their sow population. Thus the province now has insufficient pork and prices have since gone up. Mr Phaithoon predicted prices would continue to go up in the province, especially from June to September, when traditional ceremonies requiring large numbers of pigs, are celebrated. “Each ceremony usually requires more than 1000 pigs, so this is a great opportunity for farmers and I see that they there are already prepared for this.”
Some relief for China
After falling almost continuously since September 2014, China’s pork price reversed course in late March, offering some relief to hard-pressed farmers facing persistent negative margins. The USDA office in Beijing forecast an 8% reduction in China’s pig production this year. Lower feed prices are expected in 2015 going forward, partly due to reduced demand from a smaller herd, which with the rising pork price may allow producers to make some money this year. However, prices also rose for a period last year, but never reached profitable levels for producers. “It’s the same trend as last year, but the curve (of price increases) is not as steep as last year,” Michael Ellermann, a partner at Carthage MHJ (CMHJ), a swine consultancy based in Suzhou, China told Asian Agribiz, adding that price will likely “follow the same pattern as last year, and peak in August or September.
Vietnam pig producers to maintain profitability
While prices of live pigs have declined in Q2 this year, Vietnamese pig farmers remain profitable as lower feed prices have helped keep production costs down, a report by Rabobank said. Meanwhile, the Ministry of Agriculture and Rural Development forecast a 2.4% increase in output this year to 3.37 million tonnes. Despite the challenges it still faces, Vietnam’s pig industry is in transition and is witnessing investment in genetics in order to improve farm-level efficiencies. Rabobank said that despite the growth in production, the supply/demand situation in the country remains in a balance.
|Saha Farms creditors approve rehabilitation plan|
[29 May 2015] Major creditors of Thailand’s indebted poultry integrator Saha Farm voted earlier this week to approve the rehabilitation plan proposed by its assigned debt restructuring planner Ernst and Young Corporate Services Limited Thailand. Up to 67% of the creditors including banks, farmers, suppliers, employees and others, and 76% of creditors of its subsidiary Golden Line Business approved the plan. The rehabilitation will be completed when Saha Farms and Golden Line Business return monies owed to their creditors within seven and 10 years respectively. The Bankruptcy Court agreed in July last year that Saha Farms and Golden Line Business enter into the rehabilitation process. Its major creditor Krung Thai Bank extended a loan for cash flow, allowing the company to resume operation at much smaller level.
|QL Resources declares strong Q4 results|
[29 May 2015] Malaysia’s QL Resources Bhd announced that its net profit for the fourth quarter ended March 31 2015 jumped 21% year-on-year to USD 12.83 million. It attributed this to higher contribution from its integrated livestock farming and marine products, which surged 53% and 41% respectively. Revenue rose 9% year-on-year to USD 181.73 million, boosted by sales of its marine products. For the full year the company’s net profit increased 19% year-on-year to USD 52.33 million. Revenue increased 10% to USD 741. 58 million. Segmentally its marine products division contributed 51.4% to the group’s pre-tax profit followed by integrated livestock farming (43.3%) and palm oil plantation (5.3%).
|Indonesia to develop mariculture|
[29 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs has said that besides freshwater fish production, it is also focusing on increasing the production of mariculture as its commodities have huge potential in the global market. “Mariculture products have high economic value as they have immense global market potential and good export prospects,” said Slamet Soebjakto, Director General of Aquaculture, adding that the government needs to develop fishery zoning to facilitate the development of mariculture. He explained that fish commodities to be developed in the zoning system will be adjusted to the local conditions. Fish species will include snapper, grouper, pomfret, starfish and abalone.
Asian Agribiz regional dairy update
[29 May 2015]
Amul to have 1000 more franchisees by 2015
Indian dairy major Amul plans on having 1000 more franchisees by December 2015 to expand its distribution network. R S Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF) that markets Amul said exclusive retail outlets is the only way to showcase their entire range of products. "Franchising is a logical method of expanding,” he said. Amul has been expanding its franchise since 2001 and has 8000 franchisee run and 125 company owned units in more than 2000 towns in India.
Dairy equipment market estimated at USD10b
The global dairy processing equipment market is projected to reach USD 10.4 billion by 2019, growing at a CAGR of 5.3% from 2014 to 2019. According to the Dairy Processing Equipment Market by Equipment Type, Application and by Region - Global Trends and Forecasts to 2019, the market is growing in accordance with the increasing demand for dairy products and the technological advancements in dairy processing equipment. It is driven by the rise in consumption of dairy products and particularly the increase in demand for milk powders and protein concentrates. The market for dairy processing equipment in Asia Pacific is estimated to be the fastest-growing market from 2014 to 2019. In 2013, the region emerged the largest dairy processing equipment market, dominated by Australia. It lists IDMC Limited from India as a key player in the industry among Switzerland’s Tetra Laval, Sweden’s Alfa Laval, US’ SPX Corporation and Germany’s GEA Group.
Pakistan may increase import duty on milk powder
Pakistan is considering increasing the import duty on milk powder and whey powder to protect domestic dairy players. At present, 20% duty is imposed on these products from SAARC (South Asian Association for Regional Cooperation) countries and 25% on imports from other countries. Based on representation by the Ministry of National Food Security and Research, the federal Finance Ministry is expected to increase the import duty in the upcoming budget. According to local industry players, dumping of dry milk powder from around the world has affected dairy farmers and milk production.
Parag to focus on value added dairy products
Indian dairy player Parag Milk Foods Pvt Ltd will focus on value added products such as cheese and ghee to fuel its growth. Both accounted for nearly half of the company's turnover in the last financial year, which was about USD 235 million. Chairman of Parag Milk Foods Devendra Shah said that the company is also betting on the dairy beverages space which has an estimated market size of about USD 861 million and is growing at 25% in volume terms every year. Parag Milk Foods recently launched new varieties of dairy beverages.
Dutch Lady’s Q1 profit down 26%
Malaysia’s Dutch Lady Milk Industries Bhd registered a 26.2% year-on-year drop in net profit to USD 4.688 million for its first quarter ended March 31 2015 on lower revenue and increased marketing investments to support its relaunch activities. Revenue for the quarter fell 13.5% to USD 54.12 million. In a filing with Bursa Malaysia the dairy products manufacturer said its business environment is expected to remain competitive against the backdrop of less robust consumer confidence. “Despite the ongoing business challenge for 2015 the company remains committed to leveraging the strength of the Dutch Lady brand with the introduction of the Dutch Lady Purefarm range and the relaunch of Dutch Lady Childrens' Formula Milk.
Amul to support Mongolia’s dairy sector
Gujarat Cooperative Milk Marketing Federation (GCMMF) is all set to support the dairy sector in Mongolia to develop an effective milk procurement system. According to an agreement between GCMMF and the Institute of Technology of Mongolia, Amul will work with Mongolia’s cooperative sector and milk processors to restructure the dairy industry. Amul will help develop training programs on management of bulk milk cooling systems, clean milk production and animal health.
|TGM will start test run at new plant in June |
[28 May 2015] Thailand’s meat processor Thai German Meat Product Co will start test runs at its new meat processing plant next month, Managing Director Chantana Puapattanakajorn told Asian Agribiz. The new plant, located at the same site of the existing facility, will produce varieties of ham at a capacity of 50 tonnes per day, she said. “Initially, this plant will produce only hams. Sausages and other products will be added later,” she said.
|GoGo Franks grows to 19 outlets in Indonesia |
[28 May 2015] Singapore’s GoGo Franks, a premium sausage retail outlet, will open its 18th and 19th outlet, the first two for Jakarta, in Indonesia by next month, Jean Lee, Managing Director of Carona Holdings Pte Ltd, told Asian Agribiz. The company opened its Indonesian arm in 2013 with the launch of Carona Indo, which consists of two entities – production and retail. “Indonesia is our future and I think we can grow quickly,” she said. Late last year the plant opened its second line to cope with growing orders. “We started out with 500kg/day. Now we are doing 3000kg/day in two eight-hour shifts.” Plans are already in the pipeline to build a second plant in Indonesia.
|CAB Cakaran profit declines 24% |
[28 May 2015] Malaysian poultry integrator CAB Cakaran Corp Bhd’s reported a net profit decline of 24% to USD 687,000 in its second quarter ended March 31 2015, from the previous quarter, despite a 27.2% increase in revenue. Revenue came in at USD 57.28 million. In a filling with Bursa Malaysia the company attributed the higher revenue to better sales by its integrated poultry farming and processing division. It recorded an increase in the production of chicks and broilers as well as higher demand for feed from contract farmers. The division recorded a lower profit of USD 1.93 million due to the lower average selling price of broilers. On prospects, the Group expects its farming and processing division to improve on expectations of higher average selling price of broilers and stable price of feeds.
|DMC aims for integration|
[28 May 2015] Dimanika Megatama Citra (DMC), a PS breeder in Surabaya, Indonesia aims to be an integrated poultry company. Last year the company put its new 15,000 tonne/month poultry feedmill in East Java into operation. The capacity of this plant is expandable to 50,000 tonnes/month. It is also expanding its broiler contract farming business in Java, Sumatera, Kalimantan and Sulawesi. In addition, it also has a chicken slaughterhouse in Pasuruan, East Java that is supported with commercial broiler farms to ensure the supply of live bird for processing.
|PISAgro allocates funds to corn farmers |
[28 May 2015] PISAgro, a multiplayer platform initiated by Indonesia’s government to improve agri production, is ready to allocate around USD 2.3 million for 2000 corn farmers in Bima and Dompu regencies in West Nusa Tenggara. The number of farmers in this year’s project is 10 times more than the previous year. Syngenta Indonesia that is leading the project targets to increase corn productivity in the regencies by 7.2 tonnes/ha, or an increase of 20% of the current average corn productivity. Lim JungLee, President Director of Syngenta Indonesia, said the project is aimed at self-sufficiency in corn. Developed under the micro-financing model, the project plans to partner with 5 million farmers by 2020.
|Russia interested in poultry exports to India|
[28 May 2015] Russia, which is actively seeking export markets for its poultry products has expressed interest in poultry exports to India. Deputy Head of Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) Alexei Alexeenko said this is part of its plan to diversify exports. “There is demand for poultry in India and our Indian partners have shown interest,” he said. Russia exported 57,000 tonnes of poultry in 2014, 5% more than in 2013. Russian Agricultural Ministry expects that export of poultry will increase fourfold within the next five years to about 200,000 tonnes.
|Indonesia’s DMC setting up new breeding farm|
[27 May 2015] Dimanika Megatama Citra (DMC) based in Surabaya, Indonesia will set up a new broiler PS breeding farm in Jombang, East Java to meet growing demand for its broiler DOC. Yudi Martadi, DMC General Manager, told Asian Agribiz the company’s existing two broiler farms in Jombang and Malang produce 400,000-500,000 DOC/week. “With the new farm, we may produce around 700,000-750,000 DOC/week,” Mr Yudi said, adding that the company raises Cobb and Indian River strains.
|Pilmico eyes further expansion in Vietnam|
[27 May 2015] Pilmico Foods Corp, which is engaged in flour milling, feed production and pig production, is looking to expand further in Vietnam by acquiring another feed company there. In a report by BusinessWorld, Pilmico President and CEO Sabin Aboitiz said that they are currently considering three companies in northern Vietnam and that they hope something will materialise over the next two months. Last year, the company bought a 70% stake in Vin Hoan 1 Feed, one of the largest aqua feed producers in Vietnam.
|Nuscience opens new plant in Tianjin|
[27 May 2015] The Nuscience Group officiated its new plant in Tianjin, China, yesterday. The USD 16.16 million plant, with a production capacity of 10,000 tonnes per month, replaces its old plant in Central Teda, or Tianjin Economic Technological Development Area. With the new plant, production capacity has been increased and new production techniques have been added in order to answer to the growing market demand in China, said a Nuscience press release. “With this investment, Nuscience clearly states that it is ready for growth in China,” said Patrick Keereman, CEO of Nuscience Group.
Preview of Asian Pork Magazine, June/July 2015
[27 May 2015]
Brighter days await region’s pig industries
Despite some concerns, swine raisers in Southeast Asia and China may have something to smile about in the second half of this year, the ASIAN-AGRIBIZ team reports.
Breeding to stabilise Cambodia’s pig market
The pork industry in Cambodia is still seeing heavy imports, both legal and illegal. M’s Pig ACMC (Cambodia) Co Ltd aims to reduce imports and motivate local producers to get back to farming with its brand of Yorkshire-imported fast-growing pig, HE Mong Reththy tells RACHAEL PHILIP.
Quickgrow Genetics aims for more productive breeders
The Philippines hosts some leading global pig genetics companies and well-respected local breeding companies. Yet for many small and medium size raisers, access to quality pigs remains an obstacle. One rising genetics company in Northern Philippines has taken the task to hand, writes ISA Q TAN, and is now building up its operations to bring quality pigs to those who most need them.
Nutritional management of the modern sow – part 1
Just because you have hyper prolific genetics does not guarantee that the sow will perform in a hyper prolific manner in either the short or long term. MEGAN EDWARDS examines the findings of recent research into the nutritional management of modern sows with the objective of maximising reproduction and productivity. Part one of this two-part article will consider feeding from mating to entry to the farrowing facility.
Counteract health challenges with MOS
Post-weaning diarrhoea is usually associated with the proliferation of different enterotoxigenic Escherichia coli (ETEC) strains in the gastrointestinal tract. Yeast cell wall products naturally stimulate growth and immunity and can be an important tool to reduce prophylactic antibiotic treatments in weaning and sow diets, which are commonly used to reduce bacterial health challenges. Birgit Keimer and Katharina Göettke write that it is essential to compare the quality of these products, especially their pathogen binding capacity.
Improving sow energy utilisation with bioemulsifiers
Lactating sow nutrition is a huge challenge for farmers and nutritionists, because during the lactation period sows are always in negative energy balance, and very often feed intake is not sufficient to cover nutrients requirement, particularly for modern (hyper prolific) sow strains. In recent years, there has been increasing interest in the use of emulsifiers in swine diets. Lysophospholipids are biological emulsifiers highly effective in enhancing the absorption of oils and fats from feed by the animal. Lysophospholipids enhance nutrient absorption, which leads to improved animal performance explain Lakshmibai Vasanthakumari Bindhu and Mauro di Benedetto.
|Sarawak PFA hopes for more exports|
[26 May 2015] In the last weeks of 2014 Singapore’s Agri-Food and Veterinary Authority gave its final approval to the Sarawak Pig Farming Area (PFA) in east Malaysia to export frozen meat to the country. The first consignment arrived in Singapore in February and, by the end of 2015, Director Dr Ng Siew Thiam told Asian Agribiz that it hopes have exported a total of about 1200 tonnes of frozen pork. The PFA slaughterhouse has a capacity to slaughter 120 pigs/hour, and a cutting plant to process 50 pigs/hour. PFA’s long-term goal is to export 800 carcasses/day besides setting aside some carcasses for the local market. The processing facility was built according to export standards.
|InVivo aims for key position in pet food market|
[26 May 2015] The pet food market in Indonesia, which has a volume of 15,000-20,000 tonnes/year, is dominated by two big brands that control around 50% of the market share. Alain Symoens, Country Manager Indonesia of InVivo NSA, said the company through its subsidiary PT Guyovital involved in pet food trading hopes to register as a key player. “If in the next 10 years the market doubles to 40,000 tonnes, we will have a 10-20% market share,” Mr Symoens told Asian Agribiz. PT Guyovital sells premium cat and dog food imported from Brazil and Mexico. However in the near future the company plans to import more from InVivo NSA’s production facility in Vietnam. “We recently added a new pet food line at our facility in Vietnam which will supply to Southeast Asia and also China and India,” Mr Symoens said.
|China-Brazil beef deal threatens Australia|
[26 May 2015] A trade and investment deal between China and Brazil is expected to win Brazilian farmers up to USD 500 million a year in extra beef exports, raising fears Australian producers could lose out, reported Reuters. Brazil’s Agriculture Ministry said China was lifting a three-year-old ban related to mad cow disease. Before the 2012 ban, Brazil exported USD 1.5 billion of beef a year to China. Jed Matz, Cattle Council of Australia Chief Executive, said: “We are confident the free trade deal we have with China will give us a comparative advantage. We believe our reputation for food safety and reliability stands us in good stead.”
|Pakistan producers slam government's tax move|
[26 May 2015] The Pakistan poultry industry is decrying the government's move in withdrawing the zero-rated status for value-added, processed, frozen and packed poultry products. In a country where malnutrition is common, there is increasing focus on making the chicken industry modern and efficient. But with this withdrawal, the cost of production has gone up by PKR 20-40 depending on the product. Pakistan Poultry Association Chairman Khalil Sattar says the government has compounded the problem by imposing an import duty of 5-30% plus sales tax on ingredients used by local producers of value-added chicken. [USD 1 = PKR 100]
|Scanner to detect marbling in cattle |
[26 May 2015] Researchers at the National Institute of Advanced Industrial Science and Technology in Japan said they have developed a new in-vivo scanner to detect the level of marbling in cattle. “This is a world first,” Yoshito Nakashima, Chief Senior Researcher at the institute said. According to Mr Nakashima, it only takes about 10 seconds for the scanner to determine the level of fat inside the cattle. It can only check an area about three centimeters deep from the skin, but observing the cattle’s trapezius muscle is usually enough to provide the relevant assessment, he said.
|VPF Group to start further processing plant in November|
[25 May 2015] Thailand's VPF Group, based in Chiang Mai, hopes to put its first further processing plant into operation in November, Marketing and Sales Director Vanichaya Jeeraprapapong told Asian Agribiz. “The plant will has a production capacity of 30 tonnes per month initially and can be expanded if required,” she said. At present, the company slaughters around 600-700 pigs per day at its existing primary processing facility which also involves cutting, special cutting, portioning, cold storage and packing. The company is embarking on retail and the restaurant business, with two retail shops and a restaurant.
|Robina Farms inaugurates poultry biogas facility|
[25 May 2015] Robina Farms, one of the country’s biggest poultry and livestock producers, inaugurated on Friday its poultry biogas facility, the first of its kind in the country. The facility, located in the company’s farm complex in Naic, Cavite, powers the operation of the commercial layer farm. The facility was initially conceptualised to address waste disposal concerns, Francisco Castillo of Robina Farms told Asian Agribiz at the inauguration, but an added benefit is the savings on energy. Mr Castillo said that based on their computation, the company can save more than USD 11,000 per month on electricity costs while the facility is running at 16 hours a day and this could go up to more than USD 15,000 per month once they run 24 hours. The biogas facility, which includes two mixers, two digesters, a scrubber and a 250kVa generator set, cost around USD 540,000 to build and has been operating for more than a month.
|Dagsap records significant growth|
[25 May 2015] Dagsap Endura Eatore, a leading meat processors in Indonesia, last year recorded 39% growth. Director Ishana Mahisa told Asian Agribiz this was due to its good sales performance mainly in traditional markets with its nuggets, sausages and meatballs. “We plan to increase our market share in modern markets this year since our production capacity is ready to meet growing demand,” Mr Ishana said. Dagsap will also expand its distribution network to five regions namely Lampung in Sumatera, Semarang in Central Java, Madiun and Jember in East Java, and Purwakarta in West Java. “We want to be closer to our customers. We will set up cold storage facilities equipped with reefer trucks,” said Mr Ishana. To achieve better productivity and cost efficiency, Dagsap this year decided to automate the packaging lines of its plants with technology from Japan and Taiwan. “Labour and electricity costs are increasing. With automated packaging line, we need only one operator to control the process,” said Mr Ishana.
|Mavin Foods to tap export market by end 2016 |
[25 May 2015] Vietnam’s Mavin Foods Joint Venture Company hopes to export its processed products by Q4, 2016. The plant came into operation last September and has been producing more than 60 kinds of sausages, hams, pate, bacon and salami at the Dong Van Industrial Zone. “We hope to export sausages and cold cuts to Cambodia and the Philippines,” Nguyen Anh Tuan, Deputy General Director of Mavin told Asian Agribiz. Mavin Foods, a USD 15 million Vietnamese joint investment company with Australia, has the distinction of being Vietnam’s only farm-to-table food processor. A subsidiary of Austfeed Vietnam, which owns feedmills, veterinary pharmaceutical plant, GGP breeding swine farm and contract farms in Vietnam, Mavin uses meat from its own supply chain to produce high quality products. In the early stages, Mr Tuan said, exports will only make up 3-5% of its production capacity.
|Nafas Food Processing looks for suppliers in Pakistan|
[25 May 2015] Malaysia’s Nafas Food Processing and Marketing, a subsidiary of state-owned farmers’ organisation Nafas, confirmed that the group made a trip to Pakistan in April to source for alternative raw material, namely beef, for processing in Malaysia. To date it has no concrete plans to set up a processing plant in Pakistan to further process chicken meat to be exported back into the country, as reported in the media, but is open to the option. Nafas Food Processing and Marketing has a processing plant in Penang, Malaysia, capable of processing 1500 birds per hour. The company manufactures ready-to-cook products such as chicken satay, chicken nuggets and chicken pop.
|Odisha government launches Chicken Fresh outlet|
[25 May 2015] In a first of its kind initiative by a government in India, the Odisha state government has opened an outlet called Chicken Fresh in Bhubaneshwar to provide processed hygienic meat to consumers. Fisheries and Animal Resources Development Secretary Bishnupada Sethi said that the government will open more such outlets if there is good response from consumers. The Odisha government is already operating two fish outlets, Chilka Fresh, which has been well received by the consumers. The government is also exploring the possibility of a tie up with Venky's India Limited to provide ready to eat chicken products to consumers at an affordable price.
|Thai DOC output at risk with bans of GP & PS imports |
[22 May 2015] Thailand’s broiler industry is at risk of a sharp drop in production in 2016 following a ban of GP and PS imports from nine countries due to bird flu concerns. DOC production may fall to only 10 million chicks per week next year, from 32 million chicks/week at present if the bans continue to the end of this year, said Prajit Udnoon, Executive Vice President for poultry business of Charoen Pokphand Foods (CPF). Thailand banned imports from the US, Canada, UK, Netherland, Germany, Hungary, Italy, Japan and South Korea. The Department of Livestock Development is considering allowing imports from the UK and the Netherland who have confirmed they are free from the bird flu, said Watcharapong Suddee, head of the poultry section at the Bureau of Disease Control and Veterinary Services.
|Mavin Foods is ready for Phase 2|
[22 May 2015] Vietnam’s Mavin Foods Joint Venture Company has been producing more than 60 kinds of products of sausages, hams, pate, bacon and salami. It will launch Phase 2 of its expansion plan in Q1 2016. The plant currently consumes around 15-16 tonnes of meat per day and churns outs 10 tonnes of processed products per day. In Phase 2 production capacity will double. “We will get new machines from Germany,” Nguyen Anh Tuan, Deputy General Director of Mavin told Asian Agribiz. “We want to install fully-automated machines that will help us reduce human resource, and keep hygiene levels high. “We are hoping for an average revenue of USD 25 million per year and it is expected that profit will be recorded from next year onwards.”
|AVA allows boneless and bone-in beef cuts from US|
[22 May 2015] Singapore’s AVA has extended the range of US beef products for export to Singapore to include boneless and bone-in beef from cattle of all ages, processed beef products and offal. Previously it had only allowed boneless cuts from cattle less than 30 months old. Import of beef cuts must be sourced from establishments on the US Department of Agriculture’s list. Its Agricultural Marketing Service Beef Export Verification program for Singapore, stipulates the products should come from cattle born, raised, and slaughtered in the US. Beef and beef products derived from calves under 12 months of age imported from Canada for direct slaughter are also eligible, while products from cattle imported from Canada for direct slaughter can only be boneless cuts from animals less than 30 months of age.
|Proposal to sell new shares to Lay Hong’s Yap family rejected at EGM|
[22 May 2015] At an EGM, shareholders of Malaysian poultry company Lay Hong Bhd rejected a proposal to sell new shares to Managing Director Yap Hoong Chai, Executive Directors Yeap Weng Hong and Yap Chor How, and Non-Executive Director Yeap Fock Hoong. The Yap family, which owns 42.7% of the company, has been fighting a takeover bid by competitor QL Resources Bhd, which owns 38% of Lay Hong, and had previously opposed the company’s plan to place out new shares. “This is normal,” Yap Hoong Chai said, referring to the rejected proposal. He said the company’s relationship with QL Resources was ‘still friendly’. “We are still buying raw materials from QL Resources,” he said. Meanwhile, he added that the company expects to perform better this financial year.
|Vietnam wants to speed up feed checks|
[22 May 2015] Vietnamese feed importers are calling for a change to the system of inspection and quarantine of imported feed raw materials. Cao Duc Phat, Vietnam’s Minister of Agriculture and Rural Development, at a meeting with stakeholders, agreed that the time and cost involved in inspecting imported animal feed should be reduced. Tran Thanh Quang, Director General of Quang Minh Corporation, said plant quarantine and animal feed quality inspections affect animal feed importers. Storage fees at ports during are one of the biggest issues as quarantine procedures and quality inspection can take up to 10 days. Mr Phat has ordered the Animal Husbandry and Plant Protection Departments to hold talks with businesses later this month to find ways to minimise the time and costs. The proposals should be submitted to the minister before May 30, he said.
Trouw Nutrition's Modern poultry in the Philippines
Report by ISA Q TAN
[22 May 2015]
Ensuring feed intake crucial in production
No matter how good a feed formulation is, it will be for naught if the chicken is unable to take it in and absorb the nutrients, nutrition consultant Chris Cobacha told participants at a seminar organised by Trouw Nutrition yesterday in the Philippines titled ‘Feeding the Future: Modern Poultry Nutrition in the Philippines.’ He said management intervention is required to achieve maximum feed intake, and this includeS giving the birds a comfortable environment to minimise heat stress, especially in growing conditions like those in the country. He also discussed nutrition, noting the need to maximise the use of traditional feed ingredients while using non-traditional raw materials. He remarked that producers can no longer afford to waste resources so it is important to use various technologies to improve nutrient utilisation as well as implement more accurate feed formulation strategies.
Managing heat stress with betaine
Heat stress is a major concern in tropical countries like the Philippines because it leads to poor performance, which lowers farm income. There are several ways to address this, and one way is by adding betaine in feed. Dr Edita Zandee, Global Product Manager for Trouw Nutrition, explained that betaine is an osmolyte and methyl donor and is a highly effective anti-heat stress molecule. She presented trials which showed that adding betaine in the broiler diet had positive effects during heat stress, as it led to significant improvement in ADG, FCR and percentage of breast meat.
|VPF expects completion of pig farm expansion in 2016 |
[21 May 2015] VPF Group, an integrate pig farming and processing operator based in Thailand’s northern province of Chiang Mai, hopes to complete its pig farm expansion in 2016 when it will reach a full production capacity at 300,000-350,000 finishers per year, President Yutthapong Jeeraprapapong told Asian Agribiz during a visit to the farm site. “This is our second phase of expansion which started in 2014 and it is now 70% completed,” he said. At present, VPF Group raises 12,000 sows at two farm sites.
|Sarawak starts pork exports to Singapore|
[21 May 2015] Following more than a decade-long ban on pork from Malaysia, the frozen product is back on the shelves in Singapore. The Republic's Agri-Food & Veterinary Authority (AVA) recently approved the import of frozen pork from a slaughterhouse in Sarawak, East Malaysia. The Singapore Straits Times reported that the first consignment arrived in February and, as of April, about 9 tonnes of frozen pork products have been imported. An AVA spokesman said Sarawak's state animal and veterinary public health programs were assessed and inspections were conducted at the pig-farming area and slaughterhouse to ensure that bio-security control measures and hygiene standards meet AVA's requirements.
|Indonesia’s fishery, aquaculture record positive growth|
[21 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs reported that the country’s fishery and aquaculture sector recorded positive growth in Q1. Catch fish production increased by 4.69% to 1.4 million tonnes with a value of USD 2.2 billion in Q1. This increase was mainly due to the successful initiative on cracking down on illegal fishing. Aquaculture production, meanwhile, reached 2.92 million tonnes with a value of USD 1.6 billion in Q1. Commodities that recorded high growth in this sector were tilapia production of 149,000 tonnes and milkfish production of 137,000 tonnes.
Asian feedmills bet on technology
Preview of a special feedmill construction report in Asian Feed Magazine June/July 2015
[21 May 2015]
Poultry feed rules the roost
Across Asia feedmilling capacity expansion for poultry feed is growing at a faster pace compared to feed for other species. However, feed for other species is also on the rise. In China capacity expansion is seen for pig feed while in India dairy cattle and fish feeds are growing faster. Feed millers in Asia want improved and, in some cases superior, technology to achieve operational cost efficiency and better finished product quality and hygiene. The June/July issue of the Asian Feed Magazine, tracks the growth of feeedmilling companies in a comprehensive annual industry report.
More premix plants
Premix plants are becoming a more prominent feature in Asia. Their growth is spear headed by international companies such as Nuscience Group’s new facility in China and Trouw Nutrition’s new plant in Indonesia, while Evonik Industries in Singapore and CJ Bio Malaysia in Malaysia are keen to capture the sizable regional market for methionine.
Quest for operational cost efficiency
Feed millers in Asia want improved and, in some cases superior, technology to achieve operational cost efficiency and better finished product quality and hygiene. A quick survey among feed milling technology providers revealed that the Asian market is now looking for more advanced feed milling technology with higher capacity. Olaf Naehrig, Senior Area Manager of Germany-based Kahl, concurred. He said feed quality is becoming an important issue in the region because of the stiff competition between feed millers, and new technologies can help them reach that goal.
Bigger capacity to curb rising cost
Liu Guangdao, President Director of International Business Development, Muyang, told Asian Agribiz that the average capacity at the moment in Asia for poultry and aqua feed is 20 tonnes/hour and 5-10 tonnes/hour, respectively. However, due to rising production costs, millers are looking for bigger capacity. “I think feed millers in Asia will look at bigger machines and higher capacity as they are looking for lower operating costs and hygienic operations,” Jos van de Berg, Area Manager Asia, Van Aarsen, said.
Indonesia to record smaller growth
While feed milling technology providers talk about the impressive growth in Asia as a whole, some markets, however, are slowing down, and not registering the high number of investments seen two or three years ago. In Indonesia, for instance, issues in 2014 such as the oversupply of live birds and broiler DOC, and currency depreciation, persists. Chairman of the Indonesian Feed Millers Association, Sudirman FX, said several companies have decided to postpone their expansion plans. “Some six or seven feedmills have put on hold their growth plans due to the current situation,” he said. A Harwanto, Executive Vice President, Head of Feed Division of Japfa Comfeed Indonesia, told Asian Agribiz the company will not set up new feedmills this year but is refurbishing its old plants.
Disease and demand impact investments
India’s Telangana state recently witnessed a H5N1 avian influenza outbreak which could have caused a USD 24 million loss. This could affect investments in the feed industry. The Philippines, meanwhile, paints a different story. Players in the country told Asian Agribiz that big and medium-sized feedmills this year are expanding spurred by the growth in the poultry and pig sectors. This will continue to raise demand for feed.
|InVivo plans for new feedmill in Sulawesi|
[20 May 2015] Within the next five years, InVivo NSA plans to set up a new feedmill in Sulawesi, eastern Indonesia. Alain Symoens, Country Manager Indonesia, told Asian Agribiz that they are evaluating the location for the plant. The considerations are to be close to the port like many feed millers did in Makassar, South Sulawesi, or close to customers, or close to corn production centres. “Indonesia’s President Joko Widodo said in 2017 the country should not import corn. This means that the market would be complete feed or concentrate. If the market is concentrate where farmers have their own corn, we should build the plant between the port and the farmers,” said Mr Symoens. “But it is also important to know what the future would be in the region,” he added.
|Philippine hog, chicken production up in Q1|
[20 May 2015] Philippine hog production is up 3.8%, while chicken output rose by 5.3% in the first quarter of this year, a report by the Philippine Statistics Authority (PSA) showed. Hog production for the first three months was at 499,890 tonnes from 481,710 tonnes the previous year. Although average farm price for live pigs for the period slipped to USD 2.20 from USD 2.22 a year ago, the higher volume still led to a 2.9% increase in the sector’s production value to USD 1.1 billion in Q1. Meanwhile chicken meat production was also up by 5.3% to 414,180 tonnes from 393,410 tonnes the previous year. Similarly, despite a 3.4% drop in average farm prices, the higher chicken meat output pulled up industry production value by 1.7% to USD 782.18 million in Q1.
|Vietnam to buy more seafood from Indonesia|
[20 May 2015] Vietnam is looking to increase its fisheries imports from Indonesia. “We imported USD 8.90 million worth of seafood in the first four months of this year, almost half of the USD 17.32 million fisheries products that we imported from Indonesia in the same period in 2014,” Vietnam Embassy First Secretary Trung Truong Xuan said. According to the General Department of Vietnam Customs, last year Indonesia exported USD 43.98 million worth of seafood to Vietnam. Vietnam, could become a major market for Indonesia’s fisheries products. “Vietnam has been buying shrimp from Ecuador and India. Now they want our shrimp but we don’t have enough stock,” said Thomas Darmawan, Chairman of the Indonesian Fishery Product Processing and Marketing Association.
|Indonesia releases additional cattle import permits|
[20 May 2015] The Indonesian government recently issued additional import permits for 29,000 heads of slaughter cattle in a bid to ensure that sufficient heavy cattle would be available for the critical end of Ramadan and Lebaran period in mid-July. Beef Central reported that exporters have been active in April with over 60,000 feeder cattle delivered to Java and Sumatera. Many of these April deliveries will be ready for slaughter for the festival period. Partogi Pangaribuan, Director General of Foreign Trade, said during the period, “beef demand may reach 60,000 tonnes. Jakarta, Banten and West Java are regions with high demand.”
|Japan’s seafood imports from US escalate|
[20 May 2015] Japan’s seafood imports increased 0.3% year-on-year through March 2015, to about 2.11 million tonnes, according to trade data released by Japanese Customs. Products from the US are gaining market share, 13.7% of overall imports, a 1.4% increase. Compared to the previous year, seafood imports from the US increased by 280,000 tonnes, a 12% jump. A relative scarcity of whitefish in Japanese waters last year added to demand for US products.
|Singapore bans poultry from Nebraska|
[20 May 2015] Singapore’s Agri-food and Veterinarian Authority (AVA) has imposed a temporary restriction on the import of poultry and poultry products from Nebraska, USA due to the avian flu. However, heat-processed poultry products are not affected. Meanwhile, Singapore lifted restrictions due to H5N8 HPAI from the Netherlands. An AVA notice said the outbreaks in the Netherlands have been resolved and no further outbreak of the disease has been detected. Restrictions were imposed in 2013 and 2014. Restrictions remains for Barneveld, Gelderland and Tzummarum and Friesland where outbreaks of H7 LPAI in layer farms were seen and in Milheeze, Noord-Brabant, where the H5N2 LPAI were seen.
|Hypor supplies breeder pigs to Sri Lanka|
[19 May 2015] Pig genetics company Hypor has exported 32 breeder pigs to the National Livestock Development Board (NLDB) of Sri Lanka. Jacques Sips, General Manager, Asia of Hypor told Asian Agribiz that the animals were carefully selected in Canada in order to comply with the local breeding goals set by the NLDB. “The breeders will be housed at the farm of NLDB where they will contribute to an improved genetic profile of the swine population in Sri Lanka,” he said. The 32 breeder pigs exported to Sri Lanka in February this year include Large white, Landrace and Magnus Duroc breeds.
|GPMT, regions eye corn production boost|
[19 May 2015] The Indonesian Feed Millers Association (GPMT) and government leaders from corn-producing regions have expressed commitment to the Agriculture Ministry's food production goals. An MoU was signed by GPMT and 101 regents from corn-producing regencies across the country. The 101 regents, head regencies with a total area of 700,000ha of corn fields, while the GMPT represents 62 animal feed manufacturers, including Cargill Indonesia, Charoen Pokphand Indonesia and Japfa Comfeed Indonesia. “We are still importing 3 million tonnes of corn each year to fill the gap between supply and demand. That is why we are aiming to achieve self-sufficiency,” Agriculture Minister Amran Sulaiman said.
|Jollibee profit up 10.2% in Q1|
[19 May 2015] Jollibee Foods Corp (JFC) of the Philippines has reported a 10.2% rise in income in the first quarter of this year, backed by a 9.5% growth in system wide sales. The company said foreign sales grew 8.1%. According to CFO Ysmael Baysa, “overall business in the Philippines remained strong, with improving profitability in China and robust growth in Vietnam and in some parts of the Middle East.” As of the first quarter this year, JFC has a network of 2951 stores, 2335 of which are in the Philippines and 616 overseas. Mr Baysa said the company is “looking forward to improving raw material price trends and higher growth rate of its store network in the months ahead.”
|Indonesia’s fisheries exports down 15% in Q1|
[19 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs reported that its exports of fisheries dropped by 15% to USD 970 million in the first quarter of this year. Saut Hutagalung, Director General of Fish Processing and Marketing, said the total fisheries export volume declined to 246,000 tonnes during the period from 263,624 tonnes during the same period in 2014. Value also declined to USD 970 million from USD 1.06 billion. Last year, Indonesia’s total fisheries exports reached USD 4.63 billion, below the government’s target of USD 5.65 billion.
|Newcastle Disease behind bird deaths in Hyderabad|
[19 May 2015] The Animal Husbandry Department in Telangana state in India has found that Newcastle Disease is behind the recent deaths of over 15,000 poultry in Hyderabad. Y Thirupathaiah, Additional Director of the Animal Husbandry Department said that tests on samples are still underway and avian influenza can be ruled out only after confirmation by Bhopal-based High Security Animal Disease Laboratory (HSADL). G Ranjith Reddy, President of Telangana Poultry Breeders' Association commented that it would be helpful for the industry if authorities declare the cause soon as the delay could adversely affect the poultry industry.
|Vietnam must increase value-addition, branding of food products|
[19 May 2015] Vietnamese firms should supply quality products and increase export of farm produce. Deputy Minister of Industry and Trade Do Thang Hai said the agricultural sector not only met local needs and exported as well. Agricultural exports had increased to more than USD 30 billion last year. “However, limited processing capacity, a lack of brands and exports via intermediaries have resulted in low earnings,” he said. Pham Minh Duc, Senior Economist at the World Bank in Vietnam said local firms could expand through the Asean Economic Community, the Vietnam-EU free trade agreement, and the Trans-Pacific Partnership. He urged companies to increase value-addition and improve quality management to meet food safety demands.
|Thai feed industry expects growth|
[18 May 2015] The Thai feed industry is forecast to continue to grow this year thanks to the growing livestock industry, according to Pornsilp Patcharintanakul, President, Thai Feed Mills Association. Feed consumption demand this year is expected to grow by 7% to total 18 million tonnes, Mr Pornsilp said. Continued growth in the livestock industry spurred by the growth in chicken exports, is said to be driving the expansion, he added. Thailand is expected to export 600,000 tonnes of chicken meat worth around USD 2.48 billion this year, up from 579,466 tonnes valued at USD 2.36 billion, he said.
|New H7N9 cases in China|
[18 May 2015] China last week notified the World Health Organization (WHO) of six more H7N9 avian influenza infections, two of them fatal. The victims’ ages range from 3-67. Four of them had been exposed to poultry environments. Two were from Zhejiang while the rest were from Anhui, Fujian, Jiangsu, and Shanghai. Compared with the past 2 months, the number of H7N9 infections is decreasing in China, the WHO said.
|Government ensures adequate supplies ahead of Ramadan|
[18 May 2015] Indonesia’s Coordinating Economic Minister Sofyan Djalil has said the supply of staple foods is adequate ahead of the fasting month of Ramadan and Idul Fitri celebration, lessening worries on inflationary pressures that usually occur during the festivities. The Central Statistics Agency (BPS) said that currently the price of staple foods have begun to decline. However, anticipative measures, including preparing adequate food supplies, still needed to be carried out. An official of BPS said the fluctuating price of beef, sugar, red chilies, and fuel, have the potential to contribute to inflation in May. However, the supplies of several food commodities, such as cooking oil, shallots, milk and wheat are still adequate.
Asian Agribiz regional dairy update
[18 May 2015]
Amul eyes USD 3.8 billion turnover in 2015-16
Indian dairy major Amul is expecting an 18% increase in turnover of USD 3.8 billion in 2015-16 on the back of rising consumption. Gujarat Co-operative Milk Marketing Federation (GCMMF) Managing Director R S Sodhi said that the company expects milk procurement to increase by 13-14% while prices of products are likely to increase 4-5% compared to 2014-15. GCMMF that sells dairy products under the Amul brand posted a revenue of 3.2 billion in the 2014-15 financial year. According to Mr Sodhi, the company is witnessing higher consumption of dairy products with more availability of branded and packaged products.
China’s infant milk formula market to taper off in next 5 years
After more than a decade of rapid expansion, Rabobank expects growth rates in China’s infant milk formula market to taper off between 2015 and 2020. In its latest report, Rabobank said China’s infant milk formula market is expected to see growth but at a much slower rate. Sandy Chen, Senior Industry Analyst said the market grew at a 16% CAGR by volume between 2000 and 2013. International players have captured the largest share of this growth. “We estimate that China’s infant milk formula volume growth will halve by 2020, growing by a CAGR of 7-8%, driven largely by income growth and improving distribution networks into lower-tier cities and rural areas,” said Ms Chen. Also, a number of Chinese dairy companies have invested in new onshore and offshore capacity expansion projects which will be coming onstream by 2016.
Kwality Ltd plans USD 16 million dairy unit
Kwality Ltd, a leading dairy product manufacturer in North India has entered into a memorandum of understanding with the government of Jharkhand to set up a dairy unit at Ranchi with an investment of around USD 16 million. The company said in a filing before the Bombay Stock Exchange (BSE) that it would also invest in skills upgrading and training of youth. Kwality’s Dairy Best brand is considered to be one of the fastest growing private sector dairy companies in northern India and has various milk processing plants with a capacity to handle around 3 million litres of milk per day.
Amul cautions government about dumping of dairy products
The Gujarat Cooperative Milk Marketing Federation (GCMMF) in India, which markets its products under the Amul brand has requested the Indian government not to allow other countries to dump their dairy products in India under the Free Trade Agreement (FTA). Expressing his concern, GCMMF Managing Director R S Sodhi said that policy makers should ensure that dairy products are completely kept out especially since the European Union, New Zealand and Australia are under pressure to sell their surplus products as they have been hit by a major meltdown in global dairy products market recently.
|Thai GP imports in a balance|
[15 May 2015] Kukrit Areepakorn, Manager of the Thai Broiler Processing Exporters Association, told Asian Agribiz that due to farm expansion, Thailand imported around 1 million GP and PS last year. However, due to the ban on GP from the US, this year imports will be lower and the lower figure will see a decline in production in the second half of the year. “GP imports will definitely decline. But the quantum of reduction is yet to be assessed,” he said.
|Cargill’s corn milling plant due in October|
[15 May 2015] Cargill India’s new corn milling plant that is coming up in Karnataka state in India is set to become operational this October, said Cargill India Pvt Ltd Chairman Siraj A Chaudhry. The USD 95 million plant with an annual capacity of 300,000 tonnes will produce modified starch for the processed food and pharma industries. The company is also setting up a cattle feed plant at Bathinda in Punjab state with an investment of about USD 16 million, due for operations in March 2016. Cargill India is also looking to acquire popular brands to extend its reach in India.
|Betagro's Cambodia feedmill to start operations|
[15 May 2015] Betagro Group of Thailand will start operations at its feedmill in Cambodia later this month. Narongchai Srisantisaeng, Executive Vice President and Chief Operating Officer of the group visited the plant to check on the readiness of the facility, construction of which commenced in June 2013. The feedmill, located in the Phnom Penh Special Economic Zone, has an initial production capacity of 6000 tonnes per month of pig and poultry feeds for local customers in the provinces of Phnom Penh, Battambang, Kampong Chhnang and others.
|Indonesia initiates fish feed projects|
[15 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs has said that it will realise its independent fish feed project this September. Slamet Soebjakto, Director General of Aquaculture, said the ministry has allocated around USD 12 million for the project. “At the moment we are identifying locations to build small-scale feedmills in fish production centres in Indonesia. We are encouraging fish farmers to form groups that will manage the plants and will help with training,” explained Mr Slamet. He said the ministry has tasked Perindo, a state-owned company involved in fishery, to initiate a large-scale feedmill which will be set up in Surabaya, East Java.
|Australia expands beef market share in Japan|
[15 May 2015] Australia is set to strengthen its dominance over the US as Japan’s biggest beef supplier as a trade deal drives shipments toward a four-year high. Imports of Australian chilled beef rose 8% last quarter and may reach the highest since 2011 while shipments from the US has dropped to the lowest in three years, according to Tatsuo Iwama, Executive Director of Japan Meat Traders Association, as quoted by Bloomberg. The rising inflow of Australian meat to Japan’s USD 2.6 billion beef market is the result of decreasing tariffs triggered by a bilateral agreement that took effect in January, he said. “Lower duties for Australian products are attractive to Japanese meat importers and beneficial to local consumers,” Mr Iwama said.
|Currency depreciation impacts Thai chicken exports |
[14 May 2015] Thailand’s chicken exporters are facing a major challenge due to low export prices, Kukrit Areepakorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. He attributed this to currency depreciation adding that the decline amounted to about 10% over last year to around USD 2900 to USD 3000 per tonne. For major buyer Japan, the Yen has declined markedly while Russia, has taken a much lower volume than earlier expected due to the weakening ruble, Mr Kukrit explained. Russia has imported only around 100 tonnes so far this year while Thailand expected orders of around 8000-10,000 tonnes. That expected volume is not likely to materialise this year, Mr Kukrit said.
|Soon Soon to reproduce lupin meal next month|
[14 May 2015] Malaysia’s Soon Soon Oilmill’s, hopes to start producing lupin meal again next month. It was first launched two years ago but production ceased as it was not able to find a consistent supplier. “We have found other sources and are doing contract growing in Australia,” Dr Neoh Soon Bin, Managing Director of the Soon Soon Group, told Asian Agribiz. Late last year the company launched a processing facility in Penang, which manufactures high efficient protein meals such as Soon Soon High Efficiency HiFat Canola Meal and Soon Soon High Efficiency HiPro 50 SBM, which has a minimum protein content of 49%. It’s Soon Soon Dehulled Pre-emulsified Full Fat Lupin Meal has an amino acid profile similar to soybean meal. “This product can be used up to 15% in feed rations. It contains no trypsin inhibitor and is low in phytate and antigenic protein,” he said.
|Asia may face GP shortage if US bird flu persists|
[14 May 2015] The H5N2 highly pathogenic avian influenza outbreaks in the US could affect poultry production in Asia if the situation prolongs. “If (the outbreak) continues for a long time, say until the end of the year, it could affect production in Asia at the end of next year due to shortage of imported GP,” Gordon Butland, Director at G&S AgriConsulting Co, told Asian Agribiz. Imports will continue from some European countries and Australia but the capacity will not be enough to fulfil demand. “We are hoping that, once summer sets in, the problem (of bird flu outbreaks due to migratory birds) will be resolved,” Mr Butland said.
|Indonesia’s corn imports predicted to escalate|
[14 May 2015] Until May Indonesia has imported around 1.2 million tonnes of corn for animal feed. This figure is almost the same as the same period of last year. Sudirman FX, Chairman of the Indonesian Feed Millers Association, predicted that corn imports by mid-year may increase by 50% since local corn harvests in several provinces has ended. “Corn harvests in several regions in Sumatera and Java have ended. Now only two regions, namely West Nusa Tenggara and Makassar in South Sulawesi, will soon enter the harvesting period,” said Mr Sudirman. “West Nusa Tenggara may produce around 300,000 tonnes while Makassar around 3 million tonnes, but only 25% of that we can be accessed.”
|Cargill plans animal feed plant in Uttar Pradesh|
[14 May 2015] Cargill India, which started selling its animal and dairy feed products in Uttar Pradesh state in India last year is mulling setting up an animal feed unit in the state. Cargill India Chairman Siraj A Chaudhry said that the company has surpassed its target by almost 40% in Uttar Pradesh. The company is eyeing 600 tonnes in monthly sales of animal feed in this state and is expected to set up a unit after building capacity. According to him, since Uttar Pradesh is predominantly agrarian there is large potential for business in the dairy and poultry sectors.
|Association protests government decision on beef imports|
[14 May 2015] Indonesia’s decision to reopen the import of secondary meat and offal to stabilise the price of beef during Ramadhan and only allow PT Berdikari to import has invited protests from business players. PT Berdikari is a state-owned company involved in cattle breeding, feedlot and beef processing and retailing. Thomas Sembiring, Executive Director of the Indonesian Meat Importers Association, said: “We have been in this industry for more than 30 years and have developed our network and distribution but, are not allowed to import. This could lead to a monopoly.” Mr Thomas is also concerned that PT Berdikari will resell the meat to importers, and this will raise the price at consumer level. According to the Ministry of Trade data and survey results by universities, beef demand in the country this year is predicted to reach more than 600,000 tonnes.
|Sneha Farms to commission new processing plant |
[13 May 2015] India’s Sneha Farms based in Hyderabad is expected to commission its new chicken processing plant in Telangana state by end this year. D Varun Reddy, Director, Sneha Farms told Asian Agribiz that the 6000 birds/hour processing plant will be India’s largest chicken processing plant and is expandable to 12,000 birds/hour. “We have invested USD 15.5 million for this project, which also includes a 2000 tonnes cold storage facility,” Mr Reddy said. Equipment for the new plant is being supplied by Marel and Sneha Farms is expected to leverage its presence in Telangana and Andhra Pradesh with the commissioning of this plant.
|Higher tariff on pork jowl sought|
[13 May 2015] The Philippine Department of Agriculture (DA) is calling for higher tariffs on imported frozen pork jowl or neck cuts, saying these are premium meat cuts. DA Undersecretary Jose Reaño said pork jowl and neck cuts are currently lumped with offal and are only charged a 5% duty. Should the Tariff Commission approve the proposal, pork jowl and neck cuts will be included under the minimum access volume scheme and will be levied a 35% tariff. Reacting to concerns that higher tariffs would bring up prices, Mr Reaño countered that local producers can easily increase production to meet any increase in demand.
|Indonesia aims to produce 700,000t shrimp|
[13 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs has said that it aims to increase national shrimp production this year by 700,000 tonnes or a 24.2% increase over last year. Of the figure, the government targets to produce 500,000 tonnes of vannamei and 200,000 tonnes of black tiger prawns. To achieve the target, the government will reactivate idle shrimp ponds in Java, Kalimantan and Aceh. Slamet Soebjakto, Director General of Aquaculture, said: “Shrimp has been an important commodity for Indonesia. Around 70% of the production is exported to the US, Europe, Japan and China. We focus heavily on quality and are committed on ‘zero antibiotics’ in farming.”
Feed ingredient profiles and formulation seminar in Kuala Lumpur, Malaysia
Report by RACHAEL PHILIP
[13 May 2015]
Things to consider before buying alternative feed material
There are limited sources of good quality soybean meal (sbm) so producers turn to alternative feed ingredients. According to Dr Budi Tangendjaja, Technical Consultant, US Grain Council, feed producers must consider certain factors before they purchase these. “They must look at the stability and the variability of the product and consider the consistency of the supplier, the product’s anti-nutritional factors as well as moulds and mycotoxins,” he said. Using DDGS as an example, he urged feedmillers to consider the price of the product, its nutritional content as well as the digestibility and palatability of the product. “Producers must also find out about the processing operation and the equipment at the feedmill. This will contribute to the quality of the product.”
Soon Soon uses special processing method
Malaysia’s Soon Soon Oilmills Sdn Bhd’s new processing facility, launched late last year in Prai Industrial Estate, Penang, manufactures high efficient protein meals. The plant, capable of processing 5000 tonnes of seed per month, is expected to reach full capacity within a month or two, Neoh Soon Bin, Managing Director for Soon Soon Oilmill’s parent company, Soon Soon Group, told Asian Agribiz. The mill’s star products include High Efficiency Dehulled Full Fat sbm and, High Efficiency HiFat Canola Meal. “Our sbm is well received. This is because we use a special processing method. We are now applying this processing method to other ingredients such as peas as lupin to get consistent high quality,” said Dr Neoh.
Canola meal a good substitute for sbm
Canola meal is highly synergistic with sbm making the ingredient a good substitute. Malaysia’s Soon Soon Oilmills Sdn Bhd’s, one of the two crushers in the country, said its canola meal is produced from double zero canola seed. This means it is low in erucic acid and glucosiolates. Canola meal is different from other protein ingredients because it is a non-solvent extract product high in oil and with moderate protein. It is also high in methionine and threonine leading to cost savings in formulation. “Canola meal can be used at an inclusion rate of 5-15% for starters and growers, and at 10-15% for layers. It can be used at 6% for starter pig and 12% for grower and finisher pigs,” said Dr Neoh.
|San Miguel Pure Foods income up 7% |
[12 May 2015] San Miguel Pure Foods Company Inc (SMPFCI) posted strong first quarter results, with consolidated revenues reaching USD 563.3 million, up 4% year on year, and its net income topping USD 20.4 million, a 7% uptick from a year ago. The company attributed the strong performance to higher volumes and better selling prices and the strong performance of its core brands. Its Agro-Industrial businesses, riding on the back of its feeds business, posted a combined revenue growth of 4%. Although pork prices remained stable during the review period, the glut in the poultry market led to a slowdown for the poultry and meats business.
|Indonesia to increase aquaculture production |
[12 May 2015] Indonesia is aiming to up its aquaculture production in 2015 from 14.5 million tonnes to some 17.91 million tonnes, reported Antara News. Slamet Soebjakto, Director General of Aquaculture of the Ministry of Fisheries and Marine Affairs, said that the country plans to boost its aquaculture production by developing the potential of fresh, brackish and sea water farming. “With hard work and cooperation with neighbouring countries, we are optimistic the target can be achieved,” Mr Slamet said.
|PPA urges zero rating for poultry processing|
[12 May 2015] Pakistan Poultry Association (PPA) has urged the Federal Commerce Ministry for restoration of zero rating for the poultry industry to promote poultry processing. PPA Central Chairman Ahmed Wasim said that withdrawal of zero rating has increased the cost of processed chicken and value added poultry products. “Zero rating will not just promote poultry processing but will also bring stability in the prices and create more products for export,” he said. Pointing out that zero rating has helped the industries worldwide, Mr Ahmed Wasim said that it will also provide a competitive environment that will boost the quality.
|Modern International to open 50 new 7-Eleven outlets in Jakarta|
[12 May 2015] Although Indonesia’s economic growth is slowing down, Modern International, the operator of 7-Eleven in Indonesia, plans to open 50 new outlets this year. Tina Novita, Investor Relation Manager, said the new outlets will be in and around Jakarta. One outlet will cost the company around USD 152,000-228,000. By the end of December 2014, the company had 187 outlets in Jakarta.
|Pakistan withdraws increase in quarantine rates|
[12 May 2015] After persistent demand from meat exporters particularly from the poultry sector, the Pakistan government has withdrawn the raise in quarantine rates. The Ministry of National Food and Research increased quarantine rates on April 24, which according to Pakistan Poultry Association (PPA) would deal a blow to the industry. Dr Ehsan ul Haq, Director, Animal Quarantine Department in a statement said that the government has withdrawn the increase as international competition was too intense in some segments and the fee hike could hit sales.
|Chicken oversupply to continue|
[11 May 2015] The current rise in the farm price of chicken in the Philippines does not mean there is no longer an oversupply, Elias Jose Inciong, President of the United Broiler Raisers Association told Asian Agribiz. He noted that inventory of frozen chicken remains high at about 21000 tonnes. Normally farm prices go up during the summer season, when hot growing conditions extend the growing cycle or lead to smaller birds. However because of the high inventory of frozen chicken, prices have not picked up as they should have. Industry observers also point out that based on the number of broiler breeders currently in place, the potential production capacity is high and the oversupply situation is expected to extend throughout the rest of the year.
|CP Foods to double shrimp output from Vietnam|
[11 May 2015] Charoen Pokphand Foods (CP Foods) plans to double its shrimp production from Vietnam in 2015. Last year CPF produced some 6000 tonnes of finished products from its two plants in Vietnam. In 2015, the target is to produce 10,000-12,000 tonnes, reported Undercurrent News. CP Foods set up the second factory in Vietnam early last year, in Hue, through its CP Pokphand (CPP) subsidiary. Its first plant is in Dong Nai, while the company’s pangasius factory is in Ben Tre. The big drop in production seen in Thailand due to early mortality syndrome to around 200,000 tonnes in 2014, from a peak of 650,000 tonnes, is part of the rationale for the expansion in Vietnam. Although selling to the European market was part of the reason for the plants in Vietnam, demand is much stronger from Asia. “We are selling more to China and South Korea,” said a CP Foods executive.
|China refuses to drop nationwide ban on US poultry|
[11 May 2015] China has refused to drop its nationwide ban on US poultry imports due to Avian influenza. US Secretary of Agriculture Tom Vilsack asked Chinese Minister of Agriculture Han Changfu to limit its ban to US regions that have actually been hit by HPAI. Mr Han said Chinese law required a nationwide ban, according to media reports, although in the past China has imposed regional bans. Three Midwestern US states declared emergencies after an outbreak of H5N2 on turkey and layer farms, but so far it has not affected broiler production in the Eastern US. The Chinese poultry industry is suffering from overproduction and low prices, and China banned all US imports last December. In his conversation with Vilsack, Mr Han also brought up the US ban on imports of Chinese processed poultry, a sore point with Chinese trade negotiators who believe the ban is unjustified.
AI Update from China
[11 May 2015]
Flu season winding down, but new infections persists
Although the winter bird flu season is winding down in China, Central China's Hubei Province recently confirmed its first human infection with the H7N9 strain, according to the provincial health commission. The commission said a 50-year-old poultry trader and butcher from Luotian County developed symptoms after contact with infected live chickens. The victim was reported in stable condition and the county has closed live markets, culled infected birds and boosted patient monitoring at hospitals. The World Health Organisation reports that case numbers have declined in the last two months, but the H7N9 strain has infected more than 640 people and caused more than 220 deaths in China since it broke out in late 2013.
Few stalls resume live chicken sales in Shanghai
Shanghai’s winter ban on selling live chicken in wet markets officially ended on April 30, but a survey of several wet markets showed that few dealers have returned to the business. Dealers told Asian Agribiz that permit and inspection requirements are now extremely tight, and complained that they lost money during the winter months, when they were forced to stop selling live birds. Shanghai banned live chicken sales from January 1 to April 30, one of a number of bans on live chicken sales in cities and provinces around China. Some cities want to enact permanent bans and are encouraging development of slaughter and cold chain logistics capacities that would make live sales unnecessary, but aficionados of live chicken say the taste of chilled chicken is not the same.
Seahisun Chairman: Poultry slump temporary setback
The slump in the poultry industry due to avian influenza and safety issues is only temporary, according to Seahisun Group Chairman Jin Jun. “In the last 12 years, this is not the first time the market has faced problems,” Mr Jin said in an interview with Asian Agribiz. Some producers may be hurt, but the best producers will survive and improve their operations, Mr Jin said. Safety has become a major issue for consumers, and the industry needs to face up to the issue, improve safety and develop innovative products for consumers. “From the long view, we’ll all be better off because of this,” said Mr Jin.
China vaccine maker to use Finnish technology
China’s largest poultry vaccine manufacturer will use a novel gene transfer technology developed in Finland to research and develop a new vaccine for HPAI. QYH Biotech Company will also use FIT Biotech’s novel vector technology to develop other animal DNA vaccines, according to a joint press release by both companies. QYH is based in Beijing and has four plants in China. FIT Biotech, based in Tampere, Finland, developed a patented gene transportation unit (GTU) focusing on gene therapy and DNA vaccines.
China poultry company’s revenues fall
DaChan (Asia) Limited’s 1Q 2015 revenues fell 13.5% from last year following outbreaks of bird flu and food safety incidents that affected consumer demand, but says it has taken the opportunity to streamline operations and prepare for a rebound. In a filing with the Hong Kong Stock Exchange, the company said its first-quarter turnover in 2015 was more than USD 375 million, down from last year’s USD 430 million. The company said cheap pork prices also affected demand for poultry meat while market prices for DOC increased, squeezing margins. The company said it pruned less reliable contract farmers and took other measures to improve productivity, enabling it to maintain a 5.2% gross profit margin, down only 0.9% from last year.
|Medan Juara expands breeder capacity |
[08 May 2015] Malaysia’s Medan Juara Sdn Bhd, a subsidiary of Pertubuhan Peladang Negeri Johor (PPJN), or Johor State Farmers’ Association, plans to increase its breeder capacity by building three units of closed houses. “Currently the company delivers 4 million DOC per year. With the expansion it hopes to produce 500,000 DOC per month, Mohd Yazid Basirun, Manager, told Asian Agribiz. “Construction works will begin in June in Kota Tinggi, Johor, and the houses are expected to be ready in December this year.” Medan Juara produces DOC for PPJN members. The company also farms 300,000 broilers per month. With the upstream expansion, Medan Juara hopes to farm 450,000 broilers per month. PPJN, meanwhile, also operates a poultry processing plant. The facility, located in Machap, Air Hitam, Johor, is capable of processing 10,000-12,000 birds per day.
|Corruption crackdown affecting China’s grey channel|
[08 May 2015] China’s crackdown on corruption is severely affecting Grey channel meat import volumes, according to traders at the SIAL China 2015 exhibition in Shanghai. International traders from several nations told Asian Agribiz traffic was down for countries and companies that do not have legitimate access to the China market. “The first thing prospective Chinese buyers ask is, are you PRC-approved? If not, they turn away,” one trader said. However, other traders said some beef was still moving through the channel, although at higher prices and with higher risks. China imported more than 800,000 tonnes of Indian beef last year, all of it through the Grey channel. The Chinese government has been cracking down on corruption since 2013, but there was little impact on the Grey channel until early this year.
|Elders to replicate Indonesian supply chain model in Vietnam|
[08 May 2015] Leading Australian agribusiness company Elders confirmed recently that it is moving ahead with plans to establish a feedlot in Vietnam. Elders Chief Executive Officer Mark Allison said it may copy its Indonesian integrated cattle feeding and beef marketing operations for its business in Vietnam. For the Indonesian market, the company does live exports into its own feedlot. It uses its own abattoir and brands its products through top end markets. In Vietnam Elders has placed two additional people. “We are scoping our feedlot development there now,” Mr Allison was quoted as saying in Beef Central.
|Avanti Feeds achieves four star BAP status|
[08 May 2015] India’s Avanti Feeds Limited has become India’s third group to achieve four star Best Aquaculture Practices (BAP) status for shrimp from the Global Aquaculture Alliance. The status denotes that the processing plants, farms, hatcheries and feed mills are BAP certified. “Avanti Feeds has always promoted sustainability and reliability in aquaculture, and, as part of this effort, had its processing plant and feed mills BAP certified,” said the company in a statement. The company achieved this status on confirmation that it sources shrimp from BAP certified farms and BAP certified hatcheries.
|Vietnam authorities seize poultry smuggled from China|
[08 May 2015] Mobile teams, in co-operation with police and market watch inspectors from northern Bac Giang province, have seized 1000 live broilers smuggled from China. The birds were found in Yen Dung District recently when a truck carrying live poultry for examination was stopped. The driver, Luong Dinh Quang, had no documents saying where they came from and was fined USD 92. Soon after this incident the teams caught three more poultry smugglers from China and fined them a total of USD 276. Nearly 3000 birds were also culled.
|Indian food processing sector growing at 8.4%|
[08 May 2015] India’s Union Minister for Food Processing Industries, Harsimrat Kaur Badal declared that the food processing sector in India is one of the fastest growing sectors of the economy with the growth rate of 8.4%. “India has the potential to become a global leader in food processing sector and can close the gap between farmers and consumers,” she said. The sector being one of the major employment intensive segments, the government has permitted 100% foreign direct investment to tap the full potential. The ministry recently sanctioned 17 Mega Food Parks to attract foreign investment which includes 30 new cold chain projects.
|Malaysia’s EggTech launches new products|
[07 May 2015] EggTech Manufacturing Sdn Bhd, Malaysia’s first producer of liquid eggs, is diversifying its portfolio. Since August last year the company has been producing hard-boiled eggs as well as washed and sanitised eggs. “In 2013 we found the liquid egg market was too saturated. We came up with solutions. Now we want to concentrate on half-boiled eggs,” Wong Wing Hong, Director, told Asian Agribiz. Last year it installed a new machine that processes 8000 eggs per hour. Currently it works alternate days producing 8000 hard-boiled eggs per day. “We get about 5% rejects due to cracks. These will be used for our new spin off product, which is egg spread. We learnt that egg sandwiches is a big market in Malaysia,” said Mr Wong. Washed and sanitised eggs, meanwhile, is mostly for the hotel industry. “Washed eggs is a halal requirement. We produce about 5000-6000 of these products per week. This is about 50% of our capacity.”
|Weak rupiah, crowded market hit Japfa's Q1 performance|
[07 May 2015] Japfa Comfeed Indonesia has reported a loss of around USD 16.6 million in the first quarter of this year, on the back of the weaker rupiah and stiff competition. The loss came in stark contrast to the profit of around USD 5.3 million that the company recorded in the same quarter of last year, according to Indonesia Stock Exchange. Although revenue climbed by 5% to around USD 457 million, the cost of goods sold rose by 7% to around USD 409 million through the quarter. The company also suffered a USD 13.6 million loss from foreign exchange rates this year. “The market challenges in Indonesia have persisted longer than expected,” Tan Yong Nang, Chief Executive of Singapore-based parent company Japfa, said in a statement. “We continue to reduce capital expenditure and scale back on DOC production in Indonesia, and focus on improving operational efficiency and profitability.”
|Rabobank opens new office in Singapore|
[07 May 2015] Rabobank opened its new Singapore office at South Beach Tower yesterday to support its expanding presence in the region. The office serves as a regional product and service hub for Singapore, Malaysia, Philippines, Thailand and Vietnam. Marcel van Doremaele, Chief Executive Officer of Rabobank Singapore & Representative Markets, said the new office is an important milestone as it enters a growth phase on the back of increased investment in food and agriculture in Southeast Asia, and with commodity trading and logistics activity in Singapore continuing to grow. “From Singapore, we are well placed to serve the trading, and food and agri community locally, in the region and globally. With the changing needs of our clients, Rabobank remains in a strong position to finance the whole supply chain, linking origins to destinations across the world,” he said.
|Prima Meat Packers expects record profit |
[07 May 2015] Japan’s Prima Meat Packers is expected to post a record pre-tax profit of around USD 83 million for fiscal year ending March 2016, marking a 30% jump from results a year ago. Earnings will improve at subsidiaries that make pre-packaged dishes for convenience stores, and the ham and sausage businesses will expand. The weak yen will likely push up prices of raw materials, but elevated sales will make up for the increase. Fiscal 2014 saw the company hit with ballooning labour costs associated with a new manufacturing facility for convenience store products. But it expects production efficiency to improve in the current fiscal year, where sales are seen up 4% at around USD 2.92 billion.
|Tyson Foods plans to cut antibiotics use |
[07 May 2015] Tyson Foods Inc of the US plans to eliminate the use of human antibiotics in its chicken flocks by September 2017. The meat producer said it is also working to curtail on-farm drug use at its other protein businesses, which include pork and beef. The move marks the latest push by the livestock and food industries to reduce the use of antibiotics crucial to human health in meat production. Tyson's move will help the company meet a deadline recently outlined by McDonald’s Corp for its US restaurants to gradually stop buying chicken raised with human antibiotics over the next two years. Tyson is a leading chicken supplier to McDonald’s. Tyson said it has already stopped using antibiotics in its 35 broiler hatcheries and has cut human antibiotics used to treat its broilers by more than 80% since 2011.
|Global feed additives market to reach USD 30b |
[07 May 2015] The global feed additives market is expected to cross USD 30 billion by 2020 growing at the CAGR of 4.7% during the forecast period 2014-2020, revealed Mordor Intelligence. The market was worth around USD 25 billion in 2013. Amino acids, antibiotics, acidifiers and vitamins account for 45% of the global market. Feed antioxidant is listed as a high growth segment due to efforts of manufacturers to prevent feed spoilage and wastage. The market for this product is expected to grow gradually as more compound feed manufacturers are moving towards value addition to stay ahead of competition. The poultry segment accounted for around 35% of the market share in 2013. The demand for feed additives from the aqua feed industry is expected to be highest during the forecast period as a result of increase in adoption of aquaculture activities in Southeast Asian countries and demand for fish and fish products.
|Thai chicken exports face lower prices|
[06 May 2015] Thai chicken exports is facing a major challenge with a reduction in export price, Kukrit Areepakorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. He added that currency depreciation has led to a price decline of around 10% from last year to around USD 2900-3000 per tonne. For major buyer Japan, the Yen declined markedly while Russia, the new potential market for Thai chicken exports, saw less volume than earlier expected due to weakening of the ruble and economic difficulties, Mr Kukrit explained. “It appears that buyers bargain for lower prices,” he said. But the losses can be compensated by growing export volume especially to Japan. Thailand targets to exports 600,000 tonnes of chicken in 2015, up from around 579,000 tonnes in 2014, data from the association showed.
|Indonesia’s feed consumption predicted to reach 16.8mt|
[06 May 2015] Indonesian Feed Millers Association has predicted that this year’s feed consumption will reach 16.8 million tonnes from 15 million tonnes last year. According to Chairman Sudirman FX, the consumption increase will see the need for about 6.8 million tonnes of corn. “Last year we imported around 3.1 million tonnes. If the government fails to increase local corn production, we may import 4-5 million tonnes of corn,” said Mr Sudirman. Recently the Ministry of Agriculture declared its cooperation with 101 regents for the corn self-sufficiency program. This program is slated to expand corn-planting by 700,000ha.
|Malaysia’s Singapore Chicken Rice expands in Sabah and Indonesia|
[06 May 2015] Singapore Chicken Rice (SCR), a Malaysian family restaurant based in Sarawak, has expanded its franchise to Sabah and Indonesia. Johnny Leo Lee Boon, General Manager Franchising and Strategic Planning, said SCR has identified six new locations in Sabah as well as Pontianak in Indonesia. “We target to open the six outlets in the next two years,” he said. SCR ventured into the franchise business about three years ago, and increased its restaurants to 22 in Sarawak and Brunei, 10 of which were set up last year and six this year. It also operates 30 company-owned SCR restaurants, mostly in Sarawak. Offering a variety of local and western cuisine with Singapore Chicken Rice as its signature dish, the company is also eyeing Labuan and opportunities in Peninsular Malaysia.
|Aman Feed prepares for IPO|
[06 May 2015] The initial public offering (IPO) of Dhaka based Aman Feed to raise USD 9 million will begin on May 25, according to officials. The public subscription will conclude on June 4. Bangladesh Securities and Exchange Commission approved the IPO proposal of Aman Feed on April 9, this year. The company will offer 60% shares for the general public, 20% for small investors, 10% for non-resident Bangladeshis and 10% for mutual funds and the funds will be used for business expansion and repayment of long term loans among others.
|Nepal bans meat sale over pandemic fears|
[06 May 2015] In the aftermath of the devastating earthquake that hit Nepal last week, the Kathmandu District Administration has appealed to the public not to consume meat items. According to a public statement, this could trigger sanitation and health related complications as several agencies fear the outbreak of a pandemic. “We have urged the locals of Kathmandu not to slaughter animals and birds keeping in view the health condition of the local people,” Kathmandu District Administration Chief Ek Narayan Aryal said. There was a swine flu epidemic in Jajarkot district in western Nepal some time before the earthquake and a few people in Kathmandu were also infected with the bird flu virus.
|Massive cattle exports from Darwin in April|
[06 May 2015] The rush to supply cattle to Indonesia in time for the country’s peak Ramadan/Lebaran demand period in mid-July resulted in a massive cattle shipments in April from the Port of Darwin in Australia, reported Beef Central. The port usually ships an average of 26,000 cattle in April, the first month of the second quarter. However exporters shipped 78,128 heads from the port last month. Of this, 64,800 were delivered to ports in Indonesia, with 8000 shipped to Vietnam and 5400 to the Philippines.
|More pigs harvested due to hot weather|
[05 May 2015] Supply by weight of pigs has declined in Thailand due to the hot weather. “Normally around 40,000 pigs are harvested daily to meet consumption demand. But due to the hot weather that has reduced feed intake and lowered the weight of pigs for market, and additional 4000 pigs have to be harvested daily,” Surachai Sutthitham, President of the Swine Raiser Association of Thailand told Asian Agribiz, adding that this has had an impact on the cost of production. “Continued decline in weight gain and the heat could lead to higher mortality in the herds.” Farmers are trying to allay the impact by spraying water on the pigs and providing them with more water. The farm gate price of live pigs is hovering at fair levels of around USD 2.12-2.15 per kg in the eastern region provinces and around USD 1.96-2.00 in the western region areas.
|South Korea imports from Brazil |
[05 May 2015] Poultry exports by the US has dropped as importing countries including major Asian buyer South Korea has imposed a ban due to the bird flu. “Brazil has taken the US' share in the South Korean market and has exported quite a lot there,” Gordon Butland, Director of G&S AgriConsulting Co, told Asian Agribiz. Kukrit Areepakorn, Thai Broiler Processing Exporters Association Manager, also told Asian Agribiz that despite the demand from South Korea, Thailand will not be able to increase its export volume as South Korea has yet to lift its ban on Thai raw chicken imports.
|CP Prima increases focus on domestic market|
[05 May 2015] Indonesia-based shrimp supplier Central Proteinaprima (CP Prima) is unfettered by the recent drop in global shrimp prices, which has declined by about 26% since the same time last year, according to Undercurrent News. The company has a heavy focus on the US, where about 45-50% of its exports go, while 28% go to Europe, 18% to Japan, and the remaining to Australia, Korea and China. According to Arianto Yohan, Assistant Vice President, the company is more interested in a smaller, albeit more interesting and long term business in the domestic market. “While the plan is to have more geographic coverage, we are seeing more and more restaurants coming up locally," he said.
Regional dairy update
[05 May 2015]
InVivo Indonesia transfers knowledge to milk cooperatives
InVivo Animal Nutrition and Health Indonesia (InVivo Indonesia) is bullish about Indonesia’s dairy potential. Alain Symoens, Country Manager, told Asian Agribiz: “The potential in this sector is big since the current per capita milk consumption is only around 10 litres. But, we learned that farmers need education on farm management and they need quality feed to increase milk production,” he added. To support this as well as grow its business, InVivo Indonesia will work with many milk cooperatives in the country for technology and knowledge transfer. Mr Symoens said the company will also help the cooperatives on feed formulation. “We will analyse their raw material quality and supply them with our quality concentrate,” he said, adding that it has started working with some milk cooperatives in East Java alongside Danone.
Vinamilk receives 400 dairy cows from Australia
The Vietnam Dairy Products Joint Stock Co (Vinamilk) has received 400 out of a total of 1000 dairy cows it plans to import from Australia this month. It will import a further 2000 cows — 400 from Australia and 1600 from the US. Vinamilk is investing in developing its own dairy farms in what is a key long-term strategy to reduce dependence on milk imports amid global price volatility. As of April Vinamilk has nine dairy farms in Tuyen Quang, Thanh Hoa, Nghe An, Binh Dinh, and Lam Dong. Its farms provide the company 650 tonnes of fresh milk daily for processing.
FrieslandCampina Asia wins Gold Stevie Award
FrieslandCampina, one of the world’s top five dairy companies, was named the winner of the Gold Stevie Award for the ‘Corporate Social Responsibility Program of the Year’ at the Asia-Pacific Stevie Awards 2015. The award honours the company’s contribution through its nutrition-education campaign, Drink.Move.Be Strong - the region’s first integrated activation and advocacy campaign that aims to address malnutrition among children in Southeast Asia. The campaign encourages children to drink one glass of milk a day and exercise for one hour a day outdoors. The campaign currently runs in Indonesia, Malaysia, Thailand, Vietnam and the Philippines. Piet Hilarides, COO Consumer Products Asia, said: “We believe that FrieslandCampina can play a critical role in improving the well-being of our consumers in the region through our focus on a multi-stakeholder approach to Corporate Social Responsibility.”
Russia allows import of dairy products from India
Russia’s Rosselkhoznadzor or Federal Service for Veterinary and Phytosanitary Surveillance has allowed import of Indian dairy products. Rosselkhoznadzor has included two Indian companies namely Pune-based Parag Milk Foods Pvt Ltd and Mumbai-based Schreiber Dynamix Dairy Industries Ltd in the register of enterprises licensed to export products to the Russian Federation. Both the companies will supply hard cheese, which has huge demand in Russia and Parag Milk Food is ready to increase its cheese production capacity to cater to the Russian markets. According to Aleksey Alekseenko, Assistant Head of Rosselkhoznadzor, during the next inspection they will visit more Indian dairy product manufacturers.
Chitwan overtakes Kavre as largest milk producer
Chitwan has overtaken Kavre as the largest producer of milk in Nepal recording a daily output of 250,000 litres. According to the Chitwan Milk Producers Cooperatives Association, there are 151 milk cooperatives in the district with a membership of more than 35,000 small farmers. “Out of these cooperatives, 148 are linked to the association,” said Binod Khatiwada, Manager of the association. He added that the association collects milk daily from these cooperatives. The district consumes 35,000 litres daily while the rest is shipped to Kathmandu, Pokhara and Hetauda. Farmers earn USD 0.4 per litre of milk.
|Asia sees impact of US bird flu |
[04 May 2015] The H5N2 avian influenza outbreaks in the US could affect poultry production in Asia if the situation prolongs. “If the outbreak continues up to the end of the year, it could affect production in Asia due to the lack of GP imports,” Gordon Butland, Director of G&S AgriConsulting Co, told Asian Agribiz. Asian countries have banned GP imports from the US due to disease concerns. They continue to import from some European countries and Australia but the capacity is not enough. “We are hoping that with the onset of summer the problem will be resolved but it could resurface in November and December when the weather will see a new wave of migration of wild birds," he said.
|Hot weather causes decline in pig weight in Thailand |
[04 May 2015] Recent hot weather has caused a significant reduction in pig weight per head in Thailand and that would lead to increase in herd mortality and decline in overall supply. “The hot weather has discouraged eating among the pigs and growth rate has been affected,” Surachai Sutthitham, President of the Swine Raiser Association of Thailand told Asian Agribiz. Average weight of harvested pigs among farms in the eastern region of the country, has dropped by 5-6 kg/head in the second quarter, Mr Surachai said, adding that pigs are being harvested at around 100kg against the normal harvest weight of 110kg.
|US asks China to drop ban on poultry imports|
[04 May 2015] US Agriculture Secretary Tom Vilsack has asked China to drop a ban on imports of US poultry imposed because of an outbreak of bird flu in chickens and turkeys, reported Reuters. The US wants China to limit trade only from states or regions that have had cases of the flu. Cases of avian flu prompted China and South Korea to impose bans on US poultry imports earlier this year. Last year, the two countries accounted for about USD 428.5 million in export sales of US poultry meat and products, according to USDA data. China’s Agriculture Minister indicated he would consider Mr Vilsack’s request, but linked the matter to US limits on imports of poultry raised and processed in China. The US restrictions on imports of poultry from China are related to human health, while the bird flu is an issue of animal health, he added.
|Vietnamese shrimp exporters advised to cut prices |
[04 May 2015] The Vietnam Association of Seafood Exporters and Producers (Vasep) has warned shrimp exporters that they may lose the US market to India and Indonesia if they don’t lower prices. It said the price of shrimp shipped to the US averaged USD 13/kg last year, a 15-year high. The price of Indian shrimp however, is USD 11/kg. Chu Van An, Deputy General Director of Minh Phu Seafood Corporation, Vietnam’s leading shrimp exporter, said shrimp production is up in India and some other countries because they have been spared from early mortality syndrome, enabling them to cut unprocessed shrimp prices, which account for 60-70% of production costs. In addition to price cuts, Truong Dinh Hoe, Vasep General Secretary, called for its exporters to improve their shrimp quality, given the low demand in international markets.
|Brazil taps into cattle breeding potential in east Indonesia|
[04 May 2015] A Brazilian investor has expressed interest to invest around USD 77 million for cattle breeding on Buru Island in Maluku – east Indonesia, competing with other investors to tap into Indonesia’s lucrative but under-supplied beef market, reported the Jakarta Globe. Aside from Brazil, Australia and several local investors are attracted to investing in cattle breeding on the island. The government expects to sign an MoU with the Brazilian investor, whose plans to produce 200,000 cattle a year.
|IMD forecasts below normal monsoon in India|
[04 May 2015] The Indian Meteorological Department (IMD) has issued a below normal monsoon forecast for the upcoming four-month southwest monsoon season that begins from June. The first stage forecast statement issued by IMD predicts a 35% chance for below average rainfall, 33% chance for deficit rainfall and 28% chance for average rainfall. Poor monsoon rains negatively impact agricultural production and inflationary pressure on food crops such as rice, oilseeds, sugarcane, cotton, corn and pulses. A normal southwest monsoon brings 70% of India’s total rainfall and even for irrigated agricultural lands strong monsoon is crucial to boost yield and reduce cost of production. The second stage forecast will be issued in June.
|Sujaya Group to set up pig slaughterhouse|
[30 April 2015] Indonesia’s livestock and agriculture company Sujaya Group is planning to set up a pig slaughterhouse in the same region as its pig breeding and commercial operations in Singkawang, West Kalimantan. Dede Slamet Ruchyadi, Manager, told Asian Agribiz that the modern slaughterhouse will produce split carcasses and portioned cuts with Batam Island, Singapore and Malaysia as the market targets. In late 2013, Dr Nawa Subianto, Pig Farm Manager, told Asian Agribiz that the group was in talks with prospective buyers in Singapore and Malaysia. The group has been sending around 200 live finishing pigs to Batam Island and Singapore in every fortnight. At the moment the group has a total pig population of around 70,000 heads with 8500 sows.
|Teo Seng expands in Singapore with BH Fresh Food acquisition|
[30 April 2015] Malaysia's Teo Seng Capital Bhd’s unit Premium Egg Products Pte Ltd (PEPP) will acquire loss-making meat processor and wholesaler BH Fresh Food Pte Ltd (BHFF) for USD 7.37 million. PEPP had signed a conditional sale and purchase agreement with Oceantrade Foods Pte Ltd, Loi Teck Heng, Low Sook Cheng and Lee Yee Gee to acquire the entire equity interest in BHFF. Teo Seng, which has been operating in the Singapore market for a decade, will be able to expand its business operations by acquiring the property as a distribution centre to cater to demand for its products in the republic. PEPP also signed a conditional agreement with the vendors to dispose of the business and certain assets of BHFF, on an ‘as is where is’ basis, to LM Meat Pte Ltd for USD 1.35million.
|Soybean price rise worries Indian poultry industry|
[30 April 2015] The price of soybean in India was up 30% in April over March this year. The price rise is attributed to low supplies in the domestic market. In Indore, the soybean trade hub of India, the average daily arrival of soybean in April has declined to 65,000-70,000 bags of 100 kg each compared to 70,000-80,000 bags in March. “This price rise is a cause of concern especially for the broiler sector,” Valsan Parameswaran, Secretary of All India Poultry Exporters Association, told Asian Agribiz. According to him, this swill directly reflect in feed cost.
|Vietnam increases meat imports from Europe|
[30 April 2015] The volume of European pork, beef and poultry imported into Vietnam jumped to 6000 tonnes in 2014 from just 800 tonnes in 2012, according to Poland-based Union of Producers and Employers of Meat Industry (UPEMI). Export of pork, for instance, rose from 822 tonnes worth USD 1 million in 2012 to 6149 tonnes worth USD 7.2 million last year, said Agnieszka Rozanska, UPEMI Managing Director. In sourcing for imported meat producers look for clear origin of product, good quality and hygiene. UPEMI reported that over 100 European businesses have been licensed to export meat products to Vietnam, 40 of them from Poland. Vietnam, South Korea and the US are the largest importers of European meat products. The EU’s meat exports to Vietnam is expected to rise by over 5% next year, Ms Rozanska said.
|Artemia short supply hits Indian shrimp hatcheries|
[30 April 2015] Short supply of artemia used as live feed for shrimp larvae production has hit shrimp hatcheries in East Godavari and the rest of Andhra Pradesh in India. L Satya Narain, President of All India Shrimp Hatcheries’ Association said that the short supply is due to delay in clearance of artemia imported from the US. Artemia sourced from the Great Salt Lakes accounts for the strong post larvae produced by Indian shrimp hatcheries. “Hatcheries find it difficult to run production without artemia and if the situation continues, the hatcheries will have to close,” Mr Satya Narain said.
|Vinamilk to focus investments on cattle feed |
[30 April 2015] Vietnam’s largest dairy product company Vinamilk plans to set aside USD 185 million for mergers and acquisitions this year, mainly in the animal feed sector, the company announced. Vinamilk’s board of directors has approved the new initiative that involves partnering with other firms to develop the cattle feed business. In the past year, it has built two dairy farms, adding to the total of seven farming facilities.
|CV Missouri to expand alongside demand|
[29 April 2015] The layer DOC business of Indonesia’s CV Missouri based in Bandung, West Java and controlled by the Latif family has seen significant growth in recent years. Andry Latif who manages the technical division told Asian Agribiz that the demand for Hy-Line Brown DOC is growing and to respond to this demand the company has set up new breeding farms. “Our customers told that our strain performs and adapt well with the climate in this country." Although demand is growing, Mr Andry said the company does not want to expand rapidly. “Our expansion has to be well planned. Increasing supply is easy but it has to grow in tandem with demand,” said Mr Andry.
|Masan Group acquires Proconco and Anco|
[29 April 2015] Vietnam’s Masan Group said it has purchased 52% in Vietnamese-French Cattle Feed JSC (Proconco) and 70% in Agro Nutrition Company (Anco), after acquiring Sam Kim Co Ltd and renaming it Masan Nutri-Science Co Ltd. With this move Masan Group has gained second spot in the local feed market. The acquisition is a key step to increasing the productivity of Vietnam’s protein sector. Masan Nutri-Science will provide Masan Group a lead in the growing USD 6 billion animal feed sector. “Proconco and Anco, as a combined business, is the number one external pig feed and second overall animal feed player in Vietnam, supplying farmers with over 1.7 million tonnes of animal feed products in 2014. It is well on track to deliver revenue of USD 1 billion in 2015,” the company added.
|India widens lead over Brazil in beef exports|
[29 April 2015] India has widened its lead over Brazil as the top global beef exporter, according to a latest report by the US Department of Agriculture, with a projected export total of 2.4 million tonnes in 2015 against Brazil’s 2 million tonnes. Since Russia has opened its market to Indian buffalo meat, exports are expected to increase further. The report also pointed out that global beef exports are poised to reach a record 10.2 million tonnes in 2015 mainly due to larger shipments from India.
|Hormel breaks ground on new plant in China|
[29 April 2015] Hormel Foods Corporation held a ground-breaking ceremony recently to announce the construction of the Hormel Foods Jiaxing Plant in China’s northern Zhejiang province, reported meatingplace.com. The plant, which will be operational by the end of 2016, is located in the food industrial park of Jiaxing Economic and Technological Development Zone. The construction period is divided into two phases to achieve an annual processing capacity of 30,000 tonnes by the end of first phase, expanding to 50,000 tonnes when completed. The new plant will produce products such as bacon, ham and sausage, as well as a series of products specifically suited to Chinese consumers’ tastes and flavours.
|Vietnam shrimp, fish exports found with antibiotic residue|
[29 April 2015] The US Food and Drug Administration (FDA) refused 107 batches of shrimp from India, Malaysia, China and Vietnam in the first two months of the year as they contained nitrofurantoin, an antibiotic used to treat urinary tract infection, the FDA said. Nguyen Van Dao, General Director of Go Dang JSC, admitted it was difficult to control antibiotics in shrimp. Instead of using reasonable doses, Vietnamese farmers use medicine in an uncontrolled manner. He said seafood export firms collect shrimp from different sources, making it difficult to track down the source of materials. The Vietnam Association of Seafood Exporters and Producers said most businesses follow strict regulations in controlling the quality of input materials.
|Poultry industry can address malnutrition problem|
[29 April 2015] India's Poultry industry can help address malnutrition among children said geneticist Prof MS Swaminathan. Addressing the gathering at the Annual Scientific Program 2015 in absentia, organised by the Institution of Veterinarians of Poultry Industry in Bangalore, Prof Swaminathan said eggs and poultry meat have enough macronutrients to ensure a healthy future generation. “In states like Tamil Nadu, where eggs are provided to school children during noon meal there is no problem of malnutrition,” he pointed out urging the poultry industry to pursue this in other states.
|TUF plans new shrimp plant in India|
[28 April 2015] Thai Union Frozen Products (TUF), a global seafood company based in Thailand, is planning to build a new shrimp processing plant in India through a joint venture with publicly listed Indian firm Avanti Feeds, The Nation reported. TUF has a 25.1% stake in Avanti Feeds and the existing shrimp plant running under Avanti Feeds has an 8000 tonnes/year capacity. Rittirong Boonmechote, President for the global shrimp business of TUF, said recently that the company was looking to expand in India through the new joint venture, in which it would hold a higher stake. The new shrimp processing plant with the production capacity of 15,000 tonnes/year will require an investment of USD 10-20 million.
|Terminal Puyuh plans to produce cooked quail meat|
[28 April 2015] Indonesia’s Terminal Puyuh, one of the largest quail breeders in Kediri, East Java, plans to produce canned cooked quail meat. Takim, Director and owner, told Asian Agribiz: “Quail meat is a niche market in the region and it’s usually derived from spent layer quail. But we see that the demand for quail meat is growing since people are opting for different types of meat.” To realise the plan, Terminal Puyuh will cooperate with a local feed miller in the region Menara Feedmill. Both will also raise broiler quail since the supply of spent layer quail fluctuates. The target market for the canned cooked quail meat is food stalls and restaurants in the region.
|Indonesia commends Thai plan to monitor fishing vessels|
[28 April 2015] Indonesia has praised Thailand's initiative to monitor thousands of its fishing vessels with an automatic tracking system in an attempt to curb rampant illegal fishing in the region. Indonesia’s Coordinating Maritime Affairs Minister, Indroyono Soesilo said he had learned about the plan from Thai Deputy Prime Minister and Minister of Foreign Affairs, Tanasak Patimapragorn. “Thailand is planning to monitor their fishing vessels with 7,000 vessel monitoring systems to ensure their vessels only fish legally,” said Mr Indroyono. The 10 Asean member countries account for a quarter of global fish production. Indonesia, however, has been complaining of rampant illegal fishing in its waters, which the authorities claim accrues annual losses of USD 23.1 billion to the country.
|Chinese & Australian regions prepare for live cattle shipments|
[28 April 2015] The city of Huizhou in Guangdong province and the Australian state of Queensland have become the latest local government entities to sign agreements in anticipation of live cattle exports to China. In addition, the ports of Huizhou and Townsville signed a sister-ports agreement. However, the opening of the trade itself has been held up over quarantine restraints related to blue tongue disease. Australian politicians have predicted the trade will lead to shipment of up to 1 million head a year, but analysts say cattle producers have been hit hard by drought in recent years and it is not clear how many animals will be available for export.
|Philippines bans beef from Alberta|
[28 April 2015] The Philippines has temporarily banned beef imports from Alberta, Canada following the outbreak of bovine spongiform encephalopathy (BSE) or mad-cow disease in Edmonton. In a memorandum, Philippine Agriculture Secretary Proceso Alcala said: “The outbreak was confirmed to have been caused by a resistant prion protein-classical BSE-affecting cattle.” With the ban, the Department of Agriculture also suspended the processing and issuance of import clearance for animals and meat imports from Alberta. Canada is one of the biggest sources of pork and beef imports for the Philippines.
|Chicken sales in Hyderabad down 80% |
[27 April 2015] Chicken sales in Hyderabad, India declined by 80% last weekend due to the H5N1 outbreak in Telangana state. However, sales of chicken and eggs were not affected in the rural areas of the state. S Balasubramaniam, General Manager of Venkateshwara Hatcheries said that during the first four days after the outbreak chicken consumption dropped by 50% and subsequently to 80% last Sunday. It is estimated that the poultry industry in Telangana could have suffered a loss of USD 24 million due to the outbreak.
|Japfa Indonesia expects loss in Q1|
[27 April 2015] Japfa Comfeed Indonesia expects to register a net loss in the first quarter of this year. The will be the result of a combination of two main factors. First is the continuing weakness both in the poultry market and in the purchasing power of low-income consumers. And second is the translation loss from the company’s USD loans as a result of the 5% drop in the Rupiah to US Dollar exchange rate as at March 31, 2015. Taking into account the oversupply of broiler DOC, the company said it could not set an ambitious target this year.
|KFC China sales still down, poultry sector remains weak|
[27 April 2015] KFC reported Q1 same-store sales in China down 14% from the same period last year, a sign of continuing weakness in the poultry sector following last year’s food scandals and anxiety about avian influenza. Greg Creed, Yum Brands CEO, nevertheless expressed optimism, saying that China sales were recovering from last year’s lows along with “upward momentum in consumer perceptions.” The 14% sales decline represented a slight improvement over 2014 Q4’s 16% sales decline. Sales also declined at Yum’s Pizza Hut operations in China, but only by 6%, and Yum’s overall China sales were down 12%. Mr Creed said Yum remains “on track to open at least 700 new restaurants in China,” and expects a strong second-half performance from the China division.
|Sneha Farms expands its hatchery with energy saving technology|
[27 April 2015] India’s Sneha Farms from Hyderabad, will be increasing its commercial broiler operations with an energy conscious expansion to its hatchery. The expansion will bring six SmartSet setters and six SmartHatch hatchers online, with Pas Reform’s ESM (Energy Saving Module) in the setters to reduce energy consumption, as annual capacity increases to a total of 13 million set eggs. Varun Reddy Dendi, Sneha Farms Director, commented that the project presents the right opportunity to expand operations using the latest technologies from Pas Reform. Natarajan Venkitakrishnan, Pas Reform Sales Director for India, told Asian Agribiz that even during trials Sneha Farms was satisfied with the performance of Pas Reform’s ESM technology that helped them reduce energy consumption.
|AGCO acquires Farmer Automatic|
[27 April 2015] AGCO, a worldwide manufacturer and distributor of agricultural equipment, has acquired Farmer Automatic from The Clark Companies. The sale includes Farmer Automatic’s manufacturing operations in Laer, Germany as well as its global distribution network. Tom Welke, GSI Senior Vice President for Global Grain and Protein, said that they are excited to be adding Farmer Automatic to the AGCO family. “Farmer Automatic will enable GSI to move into the commercial egg business and provide a full-line solution for our poultry customers,” he said. Farmer Automatic products will continue to be sold through their present distribution channels. It will remain a stand-alone company and will be integrated into GSI over time.
|Southeast Asian markets take more sheepmeat|
[27 April 2015] Lamb and mutton exports to Southeast Asian markets improved for most countries during the last quarter, Meat and Livestock Australia (MLA) reported. Sheepmeat export volumes increased by 19% to 6815 tonnes into Malaysia and lifted by 9% into Singapore to total to 2541 tonnes, but were lower into Vietnam. MLA said total Australian red meat (beef, lamb, mutton, goat and offal) shipments declined by 7% to 28,441 tonnes into Singapore, Malaysia, the Philippines, Thailand, Vietnam, Laos, Brunei, Cambodia and Myanmar during the March quarter, but were higher than the five-year average of 21,344 tonnes.
|McDonald’s closing hundreds of stores|
[27 April 2015] McDonald’s closed 350 stores in early 2015, on top of the 350 it had already said it would shutter, as the burger purveyor seeks to stanch sales declines, reported Fortune. The company shuttered 350 poorly performing stores in Japan, the US, and China the first three months of 2015 as part of its plan to boost its sagging profits. The previously unannounced closings, disclosed during a conference call with Wall Street analysts, are on top of the 350 closures targeted for the year. While the 700 store closings this year represent a fraction of the 32,500 or so restaurants worldwide, it shows how aggressive McDonald’s is getting in pruning poorly attended locations that are dragging down its results. Recently the company reported an 11% decrease in revenue and a 30% drop in profit for the first three months of the year.
|Global pork prices drop|
[24 April 2015] Pork prices in the global market were down sharply in the first quarter this year, Rabobank said in its Pork Quarterly Q2 Report, noting “robust global supply growth, driven by US, Russia and Brazil, has outpaced rather subdued demand.” On the other hand pork prices in China, which bottomed out in March this year, are expected to go up and “will offer opportunities for considerable export growth” into the second half of the year. Albert Vernooij, Rabobank’s Industry Analyst for Animal Protein, told Asian Agribiz that “based on the current exchange rates and availability, European countries like Germany, Denmark, Netherlands, Spain, as well as Brazil are best positioned to take advantage of this development in China’s market, but added that the US and Canada will increase exports. Mr Vernooij also noted that rising production and steady demand in Vietnam and the Philippines, the two key pork markets in Southeast Asia, would mean no major changes in their import volumes.
|Vietnam top buyer of US soy|
[24 April 2015] In the last marketing year 2013/14 the US became the largest exporter of soybeans to Vietnam, surpassing Brazil, said the USDA Gain report, reaching close to 700,000 tonnes, 26% over the previous year. In the current marketing year exports are expected to reach about 750,000 tonnes as Vietnam’s domestic crushing is set to increase. Soybean meal imports meanwhile, were 3.64 million tonnes, a 14% increase in demand from the animal and aquaculture feed industries. The report noted that Vietnam’s oilseed production continues to fall below demand from the food industry and the livestock and aquaculture feed sectors due to low yield and strong competition from other field crops such as corn. “The competition will get even fiercer in the future as the Ministry of Agriculture and Rural Development has approved the first corn biotech events for commercial cultivation.
|US, Brazil, Japan meat producers’ eye Myanmar market|
[24 April 2015] Meat exporters from the US, Brazil and Japan are looking to export quality meat to Myanmar. Their representatives are in talks with Myanmar’s Meat Industry Board, said U Win Sein, Vice Chairperson of Myanmar Livestock Federation. “The US is set to exempt tariffs on fishery or garment exports from our country, and we will also have to allow their meat exports,” he was quoted by Myanmar Business Today. “This won’t be a problem [for local players] if the imported meat are more expensive than local products. However, we need to be careful to prevent low quality products being imported at low prices,” he added. Currently, high-quality pork and beef imported for the hospitality industry.
|Prantalay launches new fish snack |
[24 April 2015] Prantalay Marketing, a manufacturer and distributor of frozen seafood products and ready-to-eat foods in Thailand has introduced a snack product made from fish. Realising the value of the snack market of around USD 926 million a year, Chief Marketing Officer Anurat Khokasai said the company sees opportunity for its product named ‘Niji’ which is different from other meat snack products. The fish is tempura-coated, baked then deep-fried using a system that absorbs less oil. The company has invested around USD 3.1 million to acquire this innovative cooking machinery from Japan and will have a production capacity at 1 million packs per month.
|Suryamitra Exim achieves four star BAP status|
[24 April 2015] Andhra Pradesh based Suryamitra Exim Pvt Ltd has achieved the four star Best Aquaculture Practices (BAP) status, an international third party certification for shrimp, the Global Aquaculture Alliance (GAA) announced. Four star BAP status, the highest achievement in the BAP program denotes that the processing plants, farms, hatcheries and feedmills of the group are BAP certified. The effort was coordinated by US based National Fish and Seafood (NFS), a national supplier and partner of seafood in the US, which sources shrimp from Suryamitra. Suryamitra is the second Indian company to be four status BAP rated, the first one being Kerala based Penver Products Pvt Ltd.
|PPA seeks no increase in quarantine rates|
[24 April 2015] Pakistan Poultry Association (PPA) has urged the Federal Government to withdraw the proposed raise in quarantine rates as it will adversely affect poultry exports. Pakistan’s Ministry of National Food and Research increased quarantine rates on export of DOC and table eggs. PPA North Zone Chairman Dr Muhammad Mustafa Kamal said that the export of table eggs to Afghanistan will suffer and so will the poultry sector. According to reports, the ministry has also issued a warning to exporters saying that their facilities will be closed if the fee for quarantine is not paid. The Lahore Chamber of Commerce & Industry (LCCI) has also termed the increase in quarantine rates as exorbitant.
|Andhra Pradesh bans poultry products from Telangana|
[24 April 2015] Andhra Pradesh government in India has banned entry of poultry products from Telangana in the wake of the H5N1 outbreak last week. Andhra Pradesh Animal Husbandry Department’s Director P D Kondal Rao said that they have deployed six teams to the border with Telangana to stop the movement. “We are now stopping vehicles carrying poultry feed in addition to DOC, birds and eggs as there is a possibility that poultry feed could also be infected,” Mr Rao said. According to him, the ban may remain in place for around a month.
|Teo Seng to expand in line with local egg consumption |
[23 April 2015] Malaysian integrated layer company Teo Seng Capital Bhd, the country’s third largest egg producer by volume, expects per capita egg consumption in Malaysia to grow 3-5% this year from the current 36.5 million eggs per day, reported The Edge. Its Non-Executive Director Tan Sri Francis Lau Tuang Nguang said the average price of eggs has remained stable for the past six months at about 35 sen, or USD 0.09, and is projected to remain stable. The company said it hopes to spend USD 55 million to grow its capacity by 67% to produce 5 million eggs/day in the next four to five years. The group is also targeting to increase its market share to 10% in four years from 6.5% presently. About one-third of eggs produced by Teo Seng are exported to Singapore and the group expects to maintain that percentage.
|Retail price of beef up in Bangladesh|
[23 April 2015] With the Indian government stopping smuggling of cattle into Bangladesh, retail price of beef in Bangladesh has gone up. “Price of beef in Bangladesh has gone up by 30% due to heightened vigil by the Border Security Force against cattle smuggling,” Mujibur Rahman, a beef trader in Bangladesh told Asian Agribiz. According to the state-run Trading Corporation of Bangladesh which monitors commodity prices, beef is now being sold at USD 4.5/kg against USD 3.8/kg in March. “The price rise is also due to frequent blockade and strikes that has disrupted supply,” Mr Rahman said.
|SFI, BRF create jv company in Singapore |
[23 April 2015] Singapore Food Industries (SFI) has entered into a joint venture with Brazil’s BRF GmbH to set up a company in Singapore to process meat and manufacture branded food products for distribution to retailers, restaurants, wholesalers, distributors and ship chandlers. The jv company, called Sats BRF Food, will see SFI contribute a sublease of two meat processing facilities and a warehouse, the machinery related to the processing facilities and a licence agreement for the use of certain brands and trademarks in Singapore. Sats BRF will focus on expanding the supply of high value-added, semi-processed meat and further processed food products, initially for the Singapore market, said Augusto Riberiro Junior, Chief Financial and Investor Relations Officer, BRF, in a press release. SFI will hold a 51% stake in the jv.
|Cargill, Monsanto, BRI collaborate in boosting corn production|
[23 April 2015] A public-private partnership between Cargill, Monsanto and Bank Rakyat Indonesia (BRI) since 2012 aims to double Indonesia’s corn production capacity in the wake of the government’s food self-sufficiency program. Jean-Louis Guillou, Cargill Indonesia President Director, said: “We can help boost Indonesia’s corn production. With the right guidance and technology, we can achieve 7-8 tonnes/ha from 3-4 tonnes/ha now.” Indonesia’s Partnership for Sustainable Agriculture was formed in 2012 and the pilot project began with 100 farmers in June last year in Jrambe village, Mojokerto in East Java. Monsanto distributed its high-quality seeds while BRI facilitated finance to the farmers. The lender spent USD 23,500 on working capital credit. The farmers then sold their crops to Cargill.
|Jeil Feed, InVivo sign 2nd partnership pact|
[23 April 2015] Korean feed producer Jeil Feed has extended for a year a partnership agreement with French animal nutrition firm InVivo NSA which sees the Korean company gaining knowledge, assistance and technical support. The contract was signed by Yoon Ha Un, CEO of Jeil Feed, and Hubert de Roquefeuil, CEO of InVivo NSA, in Daejeon, South Korea. Doctor Jin Park, Pig Species Manager for Jeil Feed said after two years of successful cooperation, Jeil Feed decided to reiterate its trust in InVivo’s zootechnical expertise. “This allows us to work with InVivo to enhance our know-how in r&d and innovation,” he said. Jeil Feed produces 1.4 million tonnes of feed per year with a turnover of USD 535 million. The company, which recently invested in a pet food plant in Korea, belongs to the Harim Group.
|McDonald’s Japan expects sales to fall 10%|
[23 April 2015] McDonald’s in Japan is expecting another bad year. The 49%-owned subsidiary of the American fast food giant expects an operating loss of around USD 210 million in 2015, more than triple its losses last year, according to Quartz. The company also expects sales to fall 10% in what will be the seventh consecutive year of declines. In hopes of making a profit again in 2016, the company will close about 131 outlets and renovate another 2000. It also plans to cut about 100 jobs at its headquarters in Tokyo. As for the food, the chain has pledged stop importing chicken from China, and it has rolled out a faux chicken nugget made from tofu: the “Tofu Shinjo Nugget.”
|CPF seeks shareholders’ approval for Cambodia project|
[22 April 2015] Thailand’s Charoen Pokphand Foods (CPF) will seek approval from its shareholders at its annual general meeting today for its plan to increase investments in Cambodia. CPF’s Board agreed earlier to acquire a 75% stake in C.P. Cambodia Company Limited (CPC) for USD 87.87 million as it is deemed beneficial to CPF as Cambodia’s agro-industrial and food business have strong potential for growth. “The Board feels this investment will benefit shareholders as it corresponds with to the core strategy of the company and the agro industry sector in Cambodia, especially the livestock segment, holds great growth potential,” said CPF’s President and Chief Executive Officer Adirek Sripratak.
|Cargill considering poultry investments in Indonesia|
[22 April 2015] Cargill Inc. is seeking to enter the Indonesian poultry sector reported the Wall Street Journal. The Minnesota-based company is “in active discussions” to enter the poultry sector in Indonesia, which will include building a new facility and likely partnering, said Alan Willits, Cargill Chairman for Asia Pacific. “We’ll most likely partner with someone that is an integrated poultry producer, and we’ll do the value-added piece, the same thing we do in Thailand and China,” Mr Willits said. He also said the company is “very interested” in entering aquaculture in Asia. “We’ll most likely buy a global company that” could have a presence in Indonesia, he said. He added that the company could consider investing hundreds of millions in building a large-scale corn-processing facility, but would likely need assurances about importing some amount of corn.
|SRP for chicken set at USD 2.49/kg|
[22 April 2015] The Philippine Department of Agriculture (DA) has set the new suggested retail price for chicken at USD 2.49/kg in Metro Manila, the biggest market in the country. The new SRP, which took effect on Monday, is meant to better reflect the prices at the farm level. According to the United Broiler Raisers Association’s price survey, the average farm price of live chicken in Luzon is USD 1.48/kg, up from USD 1.14/kg the previous week. DA Undersecretary for livestock Jose Reaño said that with the new SRP, prices of chicken in both public markets and supermarkets have improved. Last week, the prevailing retail price was about USD 2.71/kg.
|After Telangana, H5N1 hits Manipur|
[22 April 2015] A week after the outbreak of highly pathogenic H5N1 in Telangana state in India, avian influenza has surfaced in the north eastern state of Manipur. Samples taken from the Indian Council of Agricultural Research (ICAR) poultry unit at Lamphelpat was found to contain the H5N1 strain. “So far around 1000 birds have been culled within a one-km radius of the poultry unit by the State Veterinary and Animal Husbandry Services Department,” Manipur Chief Secretary P.C. Lawmkunga said. According to him, culling will continue and steps have been taken by the government to control the outbreak.
Indian dairy sector in upgrade mode
[22 April 2015]
With Indian dairy companies securing funds for expansion through IPO's and the government's help in boosting dairy exports, the Indian dairy industry is in an interesting phase of growth. In this special web report, SM ARUN takes a look at the latest developments in the Indian dairy industry, which is growing at a faster pace than ever.
Growth of 15% in 2015-16
The Indian dairy sector is expected to continue its robust performance in 2015-16 with an impressive 15.6% growth, according to a report by India Ratings & Research (Ind-Ra). “During the same period, milk production is forecasted to grow at 4.6%. The sector will remain one of the focus areas of the government to improve the economic wellbeing of the rural population,” the report said. According to Ind-Ra, demand for milk and milk-based products remained high due to changing dietary habits and rising incomes. “Domestic price of milk has remained firm despite the collapse of global milk and dairy product prices,” the report added. The cooperative sector especially, continues to get policy and monetary support from the government, ensuring its growth.
Potential in Russian markets
After Russia opened its market to Indian buffalo meat, expectations are high that the country will open its market to Indian dairy products. Private dairy player Parag Milk Foods Pvt Ltd which has India’s largest cheese production unit with a capacity of 40 tonnes/day, is bullish about exports to Russia. “Russian demand is huge and it presents attractive potential if this market accepts our products," Mr Devendra Shah, Chairman told Asian Agribiz. In October-November 2014, a team from Russia’s phytosanitary watchdog Rosselkhoznadzor visited India to inspect dairy units but no approval has been secured yet.
Strategy required to boost dairy exports
India’s Union Ministry of Commerce and Industry has asked the dairy sector to prepare strategy paper to boost dairy exports. Even though India is the world’s largest producer of milk and has huge potential for exports, the government is concerned over the drop in exports due to quality issues. According to a report, the sector is unable to meet stringent export quality parameters as around 80% of the dairy industry in India is unorganised. The Ministry recently convened a meeting of representatives including Amul to discuss export challenges. “The dairy industry is expected to submit the paper soon and the government will take appropriate steps to encourage export of dairy exports after deliberating on the recommendations,” a statement from the Ministry said.
Prabhat Dairy to raise USD48m through IPO
Maharashtra based Prabhat Dairy Ltd, an integrated milk and dairy products company has filed for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). The IPO comprises a fresh issue of shares to raise USD 48 million in addition to an offer for sale of up to 14.7 million equity shares. With this, investors such as Rabo India PE and French DFI Proparco are set to part exit. Prabhat Dairy’s products include toned and raw chilled milk, sterilised condensed milk, milk powder, lassi, butter and ghee. It also supplies dairy based food ingredients to multinationals and Indian food and beverage companies like Abbott Healthcare, Mondelez (maker of Cadbury) and Britannia among others.
Mother Dairy forays into dairy whitener market
India’s Mother Dairy, a wholly owned subsidiary of National Dairy Development Board (NDDB) has ventured into the dairy whitener market with the launch of its brand ‘Dailycious’ in Guwahati. Subhashis Basu, Business Head for dairy products, Mother Dairy Fruit & Vegetable Pvt Ltd told Asian Agribiz that they have plans to expand in the entire North East region. “Dailycious will be made available through a wide network of distribution channels of close to 10,000 retail outlets across the region,” he said. Dairy whitener segment is a USD 320 million market in India and the company will compete with dominant brands like 'Everyday' of Nestle and 'Amulya' of Amul in this market segment.
Amul launches poly pack milk in Punjab
Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk and other dairy products under the Amul brand in India recently launched poly pack milk in Punjab state. GCMMF Managing Director R S Sodhi said that they have identified Punjab as an opportune market for their fresh product offerings. “We will be selling pouch milk at affordable prices to brand conscious consumers in Amritsar, Pathankot, Gurdaspur and Batala towns in Punjab and looking to garner 20% market share in these areas,” he said. Amul sells around 10.5 million litres per day of pouch milk across India.
Milk price hike unviable due to global trends, Amul
Talks about increasing the milk price locally has been ruled out as global trends are not favourable to it. R S Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul brand of milk and other dairy products said that since global milk prices are 40-50% lower than Indian milk prices any further hike will see a rise in imported milk or powdered milk. “Unlike private players, cooperatives are not under any margin pressure and could hold on to current prices,” he said and added that GCMMF is of the view that other players in the organised sector too might hold on to price levels. The last time GCMMF raised milk prices was in May last year.
|Kanemory's ready meal plant starts operations |
[21 April 2015] Kanemory Food Service, a joint-venture company between Japan-based Kanematsu Group and Indonesia-based Cimory Group, has put its USD 31 million ready meals plant in Cikande, Banten province – Indonesia into operation. Axel Sutantio, Vice President, said the plant is able to produce 10 tonnes/day for one ready meal item, while the installed capacity is around 27,000 tonnes/month. Around 90 items of ready meals are produced at the plant, such as meatballs, sausages, satay, and ready meals based on meat, fish, vegetables and rice in Japanese and Western styles. The products are sold in convenience stores, supermarkets, hypermarkets and restaurants. Mr Axel is optimistic that the company will be able to generate sales of around USD 8 million in the next three years.
|160,000 birds culled in Telangana state in India|
[21 April 2015] Following the outbreak of highly pathogenic H5N1 in Telangana state in India last week, animal husbandry officials have culled around 160,000 birds. D Venkateswarlu, State Animal Husbandry Director told Asian Agribiz that birds in a one km radius of the village in Ranga Reddy district have been culled and over 230,000 eggs destroyed. “We have now shifted our focus to a 10 km radius surveillance zone and we will conduct regular checks on poultry,” he said. According to estimates, poultry population in the surveillance zone in 18 villages is estimated to be around 1.3 million.
|CJ eyes stake in Vietnam food processing company|
[21 April 2015] CJ Cheiljedang Corp (CJ), a South Korean conglomerate and manufacturer of processed food, is reportedly interested in picking up a strategic stake in the Vietnamese state-owned food company Vissan, when the latter goes for an initial public offering (IPO), reported DealStreetAsia, a regional business portal. Vissan, has been operating for 45 years, and its latest financials reveal average annual sales of USD 209 million. It is known for Vissan sausage and ham products in the local market. Meanwhile, CJ is already present in Vietnam through CJ Vina Agri Co Ltd, which focuses on animal feeds.
|Japfa Indonesia cancels its export plan to Japan |
[21 April 2015] Japfa Comfeed Indonesia has said that it plans to cancel its plan to export further processed chicken products to Japan. Koesbyanto Setyadharma, Director, said the company doesn’t want to add more pressure to its operations since investment for the exports is high risk. “We once exported our products in 2003 but then Japan banned imports from Indonesia due to avian influenza. We experienced losses because of the ban.” Moreover, he added that the export volume to the Japanese market is small. During its public expose, meanwhile, Bambang Budi Hendarto, Vice President Director, mentioned that the company is in talks with some countries to export DOC. However Mr Bambang did not disclose what countries they are.
|DA to post farm prices in retail markets |
[21 April 2015] The Philippine Department of Agriculture (DA) said it will post farm prices of chicken and hogs in retail markets so consumers will know if these commodities are being sold at reasonable prices. In a statement, DA Undersecretary for Livestock Jose Reaño said the DA will post either daily or every-other-day the farm price of chicken. This will allow consumers to question retailers if the prices are much higher than farm prices. He noted that the reasonable retail price for chicken should be only about USD 1/kg more than the farm price. According to the United Broiler Raisers Association, average farm price of chicken is currently around USD 1.14/kg.
|Sabah to produce prawns worth USD 282m by 2020|
[21 April 2015] Malaysia’s Sabah state could emerge as the nation’s biggest producer of prawns by 2020. By then the state is expected to produce prawns valued at USD 828 million annually. This follows the USD 309 million invested by four companies to spur the shrimp aquaculture, with 30% of contributed by the Federal Government. “The price of white shrimp is between USD 7.50-8.50/kg. The estimated production of these four companies will be about 110,870 tonnes until 2020,” said Datuk Bobby Ahfang Suan, State Agriculture and Food Industry Assistant Minister. “In 2013, Sabah produced around 11,700 tonnes worth USD 51.66 million of white shrimp. Last year production increased to 18,900 tonnes worth USD 88.65 million, a 38% increase. This year, production is estimated at 30,000 tonnes,” he said.
|Taiwan has no plan to lift ban on US pork imports|
[21 April 2015] Taiwan has no plan to lift its current ban on imports of US pork containing the leanness-enhancing drug ractopamine, a Ministry of Foreign Affairs (Mofa) official said. Kelly Hsieh, head of Mofa’s Department of North American Affairs, yesterday said at a regular news briefing that Taiwan's government has no plan to change the ban despite US’ repeated concerns. “We will continue to talk to our US counterparts to make clear our stance,” he said, when asked to comment on remarks made by two US senior officials' last month who said that Taiwan needs to resolve issues surrounding the import of US meat products to speed up its push to join the US-led Trans-Pacific Partnership.
|Halal abattoir in the Philippines nears completion|
[20 April 2015] The first halal slaughterhouse in the Philippines is almost completed and will soon be operating, the Philippine Department of Agriculture (DA) said. The facility, located in Cotabato City in Mindanao, will have a slaughtering capacity of 15 heads of cattle, 10 heads of carabao, and 40 heads of goat per hour. DA Secretary Proceso Alcala said that the slaughterhouse will initially have an AA rating. With this rating, it will be allowed to send products all over the Philippines. However, the DA plans to upgrade the facility later to an AAA rating so it can be accredited to process meat for export.
|InVivo Indonesia to offer complete range of aqua feed|
[20 April 2015] InVivo Indonesia aims to be a leader in aqua feed in the country. Alain Symoens, Country Manager, told Asian Agribiz that the company recently ventured into the hatchery feed market. The company provides larval feed both for fish and shrimp that are sold under the BernAqua brand. In addition, Mr Symoens revealed that it will also venture into the marine fish feed market. “Our strategy is to offer a complete range of products that help our Indonesian partners realise better production, efficiency and profits.” He said that its freshwater fish feed sold under the Ocialis brand has progressed well in the market.
|Cambodia drafts standards for feed production|
[20 April 2015] The Institute of Statistics Cambodia has issued draft standards on chicken and duck feed production, aimed at bringing the products in line with international standards and helping producers increase exports. The new guidelines will give the products international recognition because they will specify how they should be produced and processed, therefore adding value. Chan Borin, Director General of the Institute of Statistics Cambodia, said once the standards are in place, the process of negotiating export of the products will be easier,” said. “It will help to boost trade and encourage farmers to expand the production.” The draft documents must be approved by the National Standards Council within 30 days of their issuing on April 6. Public comments may be submitted during that period.
|China pork price rises at last|
[20 April 2015] After falling almost continuously since September 2014, China’s pork price has finally reversed course and risen slightly in the last three weeks, according to the Ministry of Commerce’s weekly commodity price report. Although the total rise so far is only 2%, the beginning of a price recovery is a relief to hard-pressed farmers who have faced negative margins due to oversupply for more than a year. Live pig prices have also recovered slightly over the last three weeks in the major producing provinces of Shandong, Henan, Hebei, and Hunan, according to a compilation by Carthage & MHJ, a swine consultancy based in Suzhou. Consumption has declined due to the government’s austerity program and a weakening economy. In the last two years, millions of sows have been slaughtered and the herd’s overall size has shrunk significantly.
|India plugs cattle smuggling into Bangladesh|
[20 April 2015] Following orders from Union Home Minister Rajnath Singh, India’s Border Security Force (BSF) has stopped smuggling of cattle into Bangladesh. According to Mr Singh, the government had set up a committee to check smuggling of cattle, drugs and fake Indian currency notes. “It is more important to ensure security at the border by putting an end to all smuggling activities,” he said recently. Around 170,000 cattle were smuggled to Bangladesh from India in 2014. The move was initiated by the Indian government in the wake of killing of three BSF soldiers by smugglers in different incidents.
|H5N1 outbreak triggers alert in Telangana|
[20 April 2015] An outbreak of highly pathogenic H5N1 avian influenza has been confirmed at a poultry farm in the outskirts of Hyderabad in India. Following the confirmation by the High Security Animal Disease Laboratory (HSADL) in Bhopal, the Telangana government has ordered to cull as many as 145,000 poultry birds in a one km radius. The site of infection is Srinivas Reddy’s poultry farm located in Ranga Reddy district, which is about 50 km from Hyderabad. A ban on trading of all poultry products from farms in a 10-km radius 'surveillance zone' has also been put in place.
|Asian demand for live cattle export continues|
[20 April 2015] Australia exported almost 101,000 head of live cattle in February, up 29% year-on-year in trade. The trade has continued to increase following record levels in 2014, with February marking the fourth consecutive month of year-on-year growth. Indonesia remained the largest market, taking almost 47,000 head during the month, while Vietnam received over 35,000 head. With the Indonesian market constrained to a 100,000-head quota in the first quarter (68,000 head were sent to Indonesia during the first two months of the year) of 2015, it was encouraging that the second quarter quota is at 250,000 head. Strong Asian demand has translated into improved live export cattle prices. In February, light steers out of Darwin averaged 273 cents a kg live weight, up 19% year-on-year.
|Japfa Indonesia halves capital expenditure|
[17 April 2015] Japfa Comfeed Indonesia has decided to scale down its operations as a sluggish market continues to dampen its sales. Bambang Budi Hendarto, Vice President Director, said the company will cut its capital expenditure this year mostly that allocated for production and expansion, by up to 50%, down to around USD 58.6 million. Mr Bambang said that the oversupply has severely hit the local DOC market as the demand for chickens from customers had yet to show improvement. With such a situation, DOC and other broiler prices remain depressed. However, he said that the company’s feed division still generated stable profits, helping the company to reduce the losses suffered by the breeding division.
|Astra Agro to venture into cattle farming|
[17 April 2015] Indonesia’s major plantation company Astra Agro Lestari, a subsidiary of Astra International, is set to venture into cattle farming in an effort to diversify its business. Widya Wiryawan, President Director, said the company is assessing the possibility of entering the cattle-breeding business. “It may go hand-in-hand with our existing palm oil plantation, creating business synergy. We have many flat plantation sites that may suit the cattle’s needs,” he said. At present, Astra Agro’s plantation sites are scattered across the country, but most of them are located in Kalimantan and Sulawesi. Mr Widya acknowledged that cattle farming will provide a new business opportunity for the company, citing the government’s ambition to achieve national beef self-sufficiency.
|Japanese firm to invest USD9b in Andhra Pradesh|
[17 April 2015] Japan’s Mayekawa Manufacturing Company based in Tokyo is looking to invest USD 9 billion in Andhra Pradesh state in India to support the food processing sector. The move is expected to give a major boost to the poultry sector in Andhra Pradesh. Recently, a Japanese delegation led by Chairman of Mayekawa Manufacturing Company Yoshiro Tanaka visited Andhra Pradesh and explored opportunities to construct a mega food park that would facilitate technology transfer between Indian and Japanese companies.
|Research brings vaccine against ASFV a step closer|
[17 April 2015] Research work headed by Dr Fernando Rodriguez, IRTA researcher from the CReSA Animal Health Program, demonstrates the feasibility of designing a safe and efficient vaccine against African swine fever virus (ASFV) in the near future. There is no vaccine available today to fight ASF. The study confirmed the presence of multiple potential vaccine candidates. Specifically identifying them will allow developing safe and efficient subunit vaccines in the future. “This work opens the door to the possibility of obtaining an efficient and safe vaccine against ASFV in the near future” said Dr Rodriguez. “Identifying as many protective antigens as possible between those proteins codified by ASFV will allow designing an optimal vaccine formulation. It is just a matter of time, investment and willingness.”
2015 US Dairy Business Conference, Singapore
On –site report from CRAIGE ALLEN
[17 April 2015]
Hosted by the US Dairy Export Council (USDEC) the US Dairy Business Conference attracted stakeholders from all sectors of the dairy value chain from throughout Southeast Asia. This is the first time the conference was held in Asia, recognising the region’s growing demand for dairy products. Asean is the second largest market for US dairy products, with sales of USD 1.322 billion in 2014 (+3% year-on-year). A common theme of the presentations and panel discussions was that while historically the image of the US has been that of a commodity supplier of dairy products, USDEC is changing rapidly and becoming more responsive to the specific market needs in terms of what ingredients customers want.
Looking ahead: US position in the global dairy market
USDEC President, Thomas Suber was confident that “despite the current situation, in the long-term, the supply of dairy products will be constrained to meet demand. Furthermore he said that despite the recent lifting of EU quotas, with the exception of Ireland, which like New Zealand is a pasture-based production system, the EU does not have the additional feed capacity, and this will hamper their long-term supply capability. The US, however, has a cost of production advantage, primarily due to lower cost of feed. The EU also faces land and environmental constraints”, he said
US largest producer of cow’s milk
The average US dairy herd size in 2014 was 204 cows, with an average production of 10,100kg/cow/year. “Last year about 35% of US milk was produced by herds of more than 2,000 cows and 50% from herds of more than 1,000 cows” noted Mr Suber. He said the US is the largest single-country producer of cow’s milk, producing 93.4 million tonnes in 2014.
Expanding offerings to meet Southeast Asian demand
Marc A.H. Beck, Executive VP Strategy & Insights, USDEC provided perspectives on what the evolution of the US dairy product portfolio and plant expansions means for customers in Southeast Asia. He stressed the strategic importance of Southeast Asia and that the US wants to be a preferred supplier. In 2014 the global dairy market was estimated to be more than USD 19 billion in value, with Southeast Asia being the largest market with about 36% share, more than double China. 'It’s not only about selling more products, but how we provide business solutions, which deliver growth opportunities for ourselves and our business partners,” said Mr Beck.
Investment in innovation for continued growth
The US is the largest single-country exporter of whey and lactose ingredients, and also a rising exporter of milk powders and milk proteins, commented Vikki Nicholson, Senior VP Global Marketing, USDEC. She said that the US was committed to innovation to meeting customers’ growing needs. The major trends driving this innovation are; healthy ageing, childhood health, chronic disease risk and sports nutrition. 'For example, beginning at about age 40 we begin to lose 0.5% muscle mass every year, and whey proteins can help mitigate this loss.”
Maximising value with permeate
Food and beverage manufacturers are always looking for functional and nutritional ingredients that can also help their bottom line. Kimberlee J. Burrington, Dairy Ingredients Applications Coordinator, Wisconsin Centre for Dairy Research said that “permeate is one of the sleeping giants in the dairy industry and we are only just starting to tap its potential as a food ingredient. Besides cost reduction, permeate offers other benefits, such as moisture retention, browning properties, protein enhancement and reduction of sodium”. As a rule of thumb, Ms Burrington recommended “that the addition of 11g of permeate will allow a reduction of 1g of salt.”
|Chicken sales in India to be stable in summer |
[16 April 2015] Following the ban on sale of beef in India's Maharashtra and Haryana states, demand for chicken is likely to be stable this summer. Valsan Parameswaran, Secretary of All India Poultry Exporters Association told Asian Agribiz that even though drastic increase in chicken sales is not expected, the ban is likely to influence consumer preference. “Usually, chicken consumption drops during summer months in India but this year due to the beef ban in these two states, the market is expected to be steady,” he said.
|Pakistan poultry industry calls for review of FTAs|
[16 April 2015] Pakistan Poultry Association (PPA) has urged Commerce Minister Khurram Dastagir to review the free trade agreements (FTAs) with Malaysia, India and China to help the local poultry industry. Khalil Sattar, Chairman Tariff and Taxation Committee of PPA stated that Pakistan has opened up its market by allowing poultry products to be imported free of duty and sales tax. “But these trading partners have not reciprocated and use non-tariff barriers to discourage imports from Pakistan,” Mr Sattar said. According to him, India has placed all poultry products under ‘Sensitive list’, a non-tariff barrier, which prevents exports to the country. He also pointed out that these FTAs are hurting the local poultry industry.
|Food Panda and Korea’s BBQ Chicken to expand in Vietnam|
[16 April 2015] Food ordering platform Food Panda and the Vietnam-based unit of South Korea’s BBQ Chicken in Vietnam have forged an exclusive shipping agreement. The cooperation allows customers to access the services and promotion programs in the entire BBQ Chicken Vietnam system. Food Panda entered the Vietnamese market in 2012. It has connected nearly 20 franchises and 800 restaurants including popular brands of Al Fresco’s, Baskin Robbins, Burger King, Jollibee and Subway. By cooperating with the South Korean fast food chain, it is targeting a broader presence in the north of Vietnam, where BBQ Chicken is better known than Burger King, Jollibee or Subway.
|TET 2015 sees 10% rise in pigs slaughtered |
[16 April 2015] Vietnam's demand for pork just before TET (the New Year) this year was higher than estimated. “There was an adequate supply of pork,” said Ron Lane, Business Director for Asia Pacific, and Meggie Vo, Genesus Marketing Representative in Vietnam. According to the Department of Livestock, during TET it was estimated that the total number of slaughtered pigs was about 4.2 to 4.5 million nationwide, equivalent to about 310,000 tonnes of pork. This is an increase of over 10% compared with the average number of pigs slaughtered each month. For March and April, pork supplies will continue to hold steady. According to the Department of Animal Husbandry, between June to July, annual meat consumption should decline, but still remain on average, from 3.5-4 million pigs/month.
|Senepol-cross steers outperform Brahmans |
[16 April 2015] A beef researcher with Australia’s Northern Territory Department of Primary Industry (DPI) said Senepol-Brahman cross cattle are showing distinct production advantages for both northern cattle producers and Indonesian importers. The DPI has been studying the benefits of breeding Brahmans with Senepol bulls, and recently sold a number of crossbred and straight Brahman steers to an Indonesian buyer and their weight gain was tracked over 121 days in an Indonesian feedlot. Coordinator of the Beef Research Program for the DPI, Tim Schatz, said on average, the Senepol-cross steers put on an extra 21 kg compared to the straight Brahman steers. “There has been this perception that that high-grade Brahmans do better in Indonesian feedlots,” he said. “What we found was the Senepol-cross steers outperformed the Brahmans.”
|InVivo Indonesia to increase market share in poultry feed|
[15 April 2015] InVivo Indonesia plans to increase its market share in poultry feed. Alain Symoens, Country Manager, told Asian Agribiz that although competition is rife, the target is achievable. Several strategies have been prepared. For broilers it plans to launch an innovative pre-starter feed called Genesa in June. Fed to chicks from day 1 to 5, Genesa is designed to optimise the development of the chicks, improve feed intake & viability, and enhance flock uniformity. To support and provide its broiler customers with good quality DOC, it will also cooperate with local DOC producers. Meanwhile for layers, the company plans to launch Perfegg in September following several local trials. Perfegg is a vegetal active substances-based feed additive to increase egg production. “Layer farmers don’t need to reformulate as the product can be used on-top,” said Mr Symoens. He also revealed that the company is now eyeing local feed companies for acquisition to support its target on growing market share.
|Too early to predict impact of beef ban on chicken sales|
[15 April 2015] With two Indian states Maharashtra and Haryana banning sale of beef, speculation is high that consumption of chicken would increase in the coming months. M K Gupta, General Manager (North Zone), Venky’s told Asian Agribiz that it is too early to predict as consumer preference can be rigid. “It will take some time for the government decision to reach ground level,” he said adding that it all depends on how consumers are going to substitute beef in their menu. According to him, there are multiple choices for consumers such as mutton and seafood apart from chicken.
|US stops shrimp from five Asian countries |
[15 April 2015] Information released by the US Food and Drug Administration (FDA) showed that over one in three of the 155 seafood import entry lines refusals in March took place for reasons related to veterinary drug residues. The FDA reported that 58 entry lines were refused for banned antibiotics in March. With the March refusals, the FDA reports having refused 140 shrimp entry lines in 2015. In March, shrimp from Malaysia, India, Vietnam, China, and Indonesia were refused for reasons related to veterinary drug residues.
|Aman Feed gets IPO nod|
[15 April 2015] Bangladesh Securities and Exchange Commission has given the green light to Aman Feed to raise USD 9.3 million from the public. The feed producer plans to float 257,000 ordinary shares worth USD 0.13 each at an offer price of USD 0.46, with USD 0.33 as premium, the stock market regulator said in a statement. Aman Feed will use the funds from the initial public offering (IPO) for business expansion and long-term loan repayment. Aman Feed is primarily engaged in producing and distributing poultry, fish, shrimp and cattle feed. At present, the company's production capacity is 6000 tonnes a month.
|McDonald’s Japan’s sales in March fall 29.3%|
[15 April 2015] McDonald’s sales in Japan fell a startling 29.3% in March. Sales in Japan have now fallen for fourteen consecutive months, according to Bloomberg data. The stretch of unsavoury results for McDonals’s Japan, which boasts about 3100 restaurants, follows a series of high-profile food scares in Asia in 2014. Objects including a human tooth and a piece of vinyl were found in McDonald’s food in Japan. Those issues came just months after McDonald’s sales in China took a hit after Chinese supplier Shanghai Husi Food Co. was accused of selling expired meat. But while sales in China have recovered somewhat, in Japan they haven’t, suggesting deeper problems there.
|Change needed in Indonesia's cattle permits system|
[15 April 2015] Australia’s live cattle export industry is hopeful Indonesia will soon change its system of allocating cattle permits every three months, to a yearly quota system. Representatives from Australia’s live cattle industry were in Jakarta recently to meet with importers and government officials. Simon Crean, Chairman of the Australian Livestock Exporters’ Council, quoted by ABC Rural, said talks had been positive and there was support for the permit system to be changed. "The message we’ve been putting, is that Indonesia will run into problems unless they build certainty into the system,” Mr Crean said. “The best way to secure that, is through the mechanism of annual permits.”
|NECC launches mobile app for egg prices|
[14 April 2015] The National Egg Co-ordination Committee (NECC), an association of over 25000 layer farmers in India has launched a mobile app to provide access to egg prices across India. Sanjeev Chintawar, Business Manager of NECC said the app has been developed for both android and iOS platforms. “Egg prices will be updated on all days except Sundays,” Mr Sanjeev Chintawar told Asian Agribiz. According to him, the app will provide seamless access to egg prices and is a boon to farmers. He pointed out that they have plans to develop the app into an interactive platform, which includes news and blog columns for disseminating information. NECC has been declaring daily egg prices since May 1982.
|President Joko orders probe into Benjina slavery case|
[14 April 2015] Indonesia’s President Joko Widodo has ordered the formation of a special team to handle a slavery case in Benjina, Maluku. “What we are doing about the Benjina situation will become an international benchmark, [showcasing] the seriousness of Indonesia in addressing illegal fishing and slavery,” said Susi Pudjiastuti, Fisheries and Maritime Affairs Minister. Mrs Susi said local fisheries products were at risk of being boycotted if the government failed to show commitment in cracking down on forced labour. A recent Associated Press report exposed alleged forced labour practices in which the only official fishing operation on the island, PT Pusaka Benjina Resources, was suspected of treating hundreds of workers inhumanely.
|Fitch revises Japfa Indonesia’s outlook to negative|
[14 April 2015] Fitch Ratings has revised PT Japfa Comfeed Indonesia Tbk’s outlook to negative from stable. This reflects Fitch’s view that Japfa’s financial flexibility is under strain amid an uncertain market outlook. Weak demand growth and high supply led to thinner margins for Japfa in 2014. Japfa’s cost pass through ability appears to have been eroded by the increased supply over the last couple of years. While demand for chicken meat has been weak for the past two years, a reduction in supply has only kicked in over the past six months or so. Japfa has cut DOC production capacity by about 15% this year, and the company believes smaller producers are also making similar capacity cuts.
|Malaysian group shows interest in investing in Pakistan|
[14 April 2015] Malaysia’s Nafas Food Processing & Marketing Sdn Bhd (NFPMSB), a state owned company has shown interest in setting up a food processing and halal meat unit in the Special Economic Zone near Islamabad in Pakistan and then exporting the products back to Malaysia. Recently, a Malaysian delegation led by Dato Haji Ali Bin Shaikh Ahmad of NFPMSB met officials in Pakistan to discuss and explore the investment opportunities in Pakistan. Dr Miftah Ismail, Minister of State and Chairman, Board of Investment assured full cooperation to the Malaysian group for the venture which would boost trade and economic relations between the two countries.
Achieving food sovereignty needs multi-sector cooperation
Report from a seminar in Jakarta by ARIEF FACHRUDIN
[14 April 2015]
The Indonesian government under the leadership of President Joko Widodo AIMS to achieve food sovereignty mainly in rice, corn, beef, poultry, shrimp and fish. According to Prof Bungaran Saragih, former Minister of Agriculture (2000-2004), to achieve this the government must have a clear view of food sovereignty, and focused strategies, policies and programs. “There should also be a clear allocation of tasks of across departments and regions. And the most important is the existence of multi-sector cooperation between the government and farmers, businessmen and NGOs,” said Prof Bungaran.
Connectivity big challenge for food sovereignty
Connectivity is a key challenge for Indonesia as it is an archipelagic country, said Hari Priyono, Secretary General of the Ministry of Agriculture. “Therefore we need centralisation of certain commodities in certain regions.” He urged farmers to change their mind-set. “Now is the time for them to think of corn farms or livestock farms as ‘factories’ that should continuously meet market demand.” He added that: “The government will support with good policies and we will strengthen our communication with farmers and businessmen to respond to their needs and feedback.”
Technical ministries asked to be more creative
Bambang Adi Winarso, Deputy for Food Coordination and Biological Resources of the Coordinating Ministry for Economic Affairs, believes that plans and systems that have been prepared by the government to achieve food sovereignty have been good. However, he said manpower to run the plans and systems is the challenge. “Officials in technical ministries like the Ministry of Agriculture and the Ministry of Fisheries & Marine Affairs have to be more creative. They have to know that there is no ‘one policy fits for all’. They have to make special policies according to the potential of each region. In addition, they also have to think about market, not only production,” said Mr Bambang.
Livestock sector to meet increased animal protein demand
Indonesia’s population in 2015 is predicted to reach 255.5 million and by 2035 the figure is expected to reach 305.7 million. This means that in the next 20 years, the population increase per year will be around 2.51 million people. Fauzi Luthan, Director of Livestock Farming of the Ministry of Agriculture, said the livestock sector has to be able to cater to the growing demand for animal protein. He said the ministry plans to increase farmers’ economies of scale, improve the logistics system and develop a supply chain that follows animal welfare concepts. “We will also actively try to change consumers’ preference from fresh warm meat to chilled/frozen meat,” said Mr Fauzi.
Aquaculture sector to increase production
Indonesia's Ministry of Fisheries & Marine Affairs data, revealed that fish and shrimp production in 2014 reached 3.69 million tonnes and 0.59 million tonnes, respectively. Slamet Soebjakto, Director General of Aquaculture, said that to increase fish and shrimp production and to meet domestic and export demand, the ministry this year will certify farms and hatcheries to Good Aquaculture Practices. It will also increase farmers’ independence in feed, adopt biofloc technology for fish and increase the number of fish & shrimp health stations in production centres. “The programs will also be supported with the ‘Minapadi’ program – an integration of aquaculture and rice farm. FAO supports this integration program,” said Mr Slamet.
Asian Agribiz 2015 Pig Feed Quality Conference
Onsite report by CRAIGE ALLAN
[13 April 2015]
The second day of the Pig feed Quality Conference in Ho Chi Minh City, Vietnam on April 10, continued to present the latest science, trial data and solutions for Asian pig and feed producers. Presentations from the Feed Additives and Feed Manufacturing themes included;
The future of copper as a growth promoter in pigs
Xabier Arbe, Regional Technical Manager, Novus International reported recent research findings indicating that chelated copper (Mintrex Cu) is a more effective growth promoter than copper sulphate in weaner pigs. In fact, less total copper is required to exhibit the same or better growth and feed efficiency responses. He made the interesting observation that the dark green/black faeces normally attributed to high dietary inorganic copper supplementation was not present in manure from pigs fed chelated copper, and stressed that faecal colour has no bearing on the performance of the grower pigs.
Supporting the immune system of piglets with egg immunoglobulins
Piglets are born without any immune protection and need external support to their immune system right after birth, before passive protection provided by the sow’s colostrum starts working. Egg antibodies have been shown to be efficient immune ingredients, due to the reduced incidence of diarrhoea, medical treatment costs and mortality, said Felipe Freitas Barbosa, Product manager, Globigen, EW-Nutrition. In trials in Thailand, the return on investment for Globigen was 1:2.2, not including weaning weight improvement, he reported.
In-line moisture management determines feed quality
The feed industry needs the ability to measure moisture accurately throughout the production process but until recently has not had the tools to do this effectively in real time. According to Jon Ratcliff, Managing Director of Food & Agriculture Consultancy, the latest technology to solve this problem is based on microwave resonator technology (commercially known as M007) which measures in real time the moisture of the raw material before batching, and auto corrects the batching weight to correct for the true dry matter. The auto weight correction for moisture is completed without any delay to the batching process and the PLC provides an adjusted formulation for verification, traceability and stock reconciliation purposes.
Steam conditioning for pellet efficiency
Problems of feed pelleting were reviewed by Steven Goh, Regional Business Director, Delst Asia. He said that surfactants are commonly added to the mixer to address the issue of low moisture after steam conditioning. Because surfactants are added prior to gelatinization adsorb to the surface of the starch granule, the surface is rendered lipophilic, which retards the migration of water into the starch granule. There is no effective softening of the amylose, resulting in uncooked, resistant starch, affecting the digestibility of the starch, and hence the energy value of the feed is compromised.
NIR & moisture management in feed
Traditionally, discussions on controlling water in feed have focused on moisture content. This provides valuable information about product quality. Water activity is another important moisture measurement that defines the energy or ‘availability’ of water in a product. While both measurements are important, water activity provides the most valuable information, noted Ivan Ward, Director of Agri-Torque. Water activity, determines the lower limit of available water for microbial growth. Typical limits for water activity for feed are in the range of 0.65 and 0.73 aw.
|Harbin Institute introduces China’s first PEDv vaccine|
[13 April 2015] The Harbin Weike Biotechnology Company has introduced China’s first vaccine for the Porcine Epidemic Diarrhea virus (PEDv), part of a triple-vaccine that also protects against Transmissible Gastroenteritis (TGE) and Type G rotavirus. A PEDv outbreak severely affected the US pork industry last year, but China has also suffered frequent PEDv outbreaks. The new vaccine was developed at the Harbin Veterinary Research Institute, one of China’s top veterinary institutes, by a team led by Dr Feng Li. Veterinarians consulted by Asian Agribiz applauded the new vaccine, but cautioned that it may not be effective against all PEDv variants. The USDA licensed two PEDv vaccines for sale last year, but the licenses are conditional, meaning the vaccines are still being evaluated for final approval.
|Malaysian jv to open Johnny Rockets joints in China|
[13 April 2015] Johnny Rockets, a themed hamburger chain based on 1950s style US diners, plans to open 100 restaurants in China over the next decade. A company statement revealed that the restaurants will be operated by a joint venture between two Malaysian companies, AUM Hospitality and Parkson Retail Group Ltd. AUM already runs Johnny Rockets franchises in Malaysia, and Parkson has a network of about 60 grocery stores and malls in China. Johnny Rockets has about 330 outlets in 32 US states and 27 countries, and will be joining specialty hamburger outlets like Fatburger and Carls Jr. in the China market. Johnny Rockets is owned by Sun Capital Partners, a Florida-based private equity firm. Its first China store is expected to open in 2016.
|South Korea struggles with livestock diseases|
[13 April 2015] South Korea sees no relief in its fight against foot-and-mouth disease (FMD) and highly pathogenic avian influenza (HPAI) which, despite large scale culling and a vaccination program, have not been eradicated. Some 151 FMD cases in pig and cattle farms have been confirmed. To date 139,000 head on 160 farms have been culled. A USDA report stated that FMD disease cases recently spread to new areas and the number of cases is increasing. The government is introducing compensation for those who support suspected cases and provincial governments are taking action against farmers who intentionally avoid or delay reporting suspected cases. In addition, 800,000 doses of a new type of vaccine will be distributed to farms in FMD-infected areas and the government is planning to import another 2.4 million doses.
|India to increase buffalo meat exports to Russia|
[13 April 2015] Indian authorities are in talks with Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) to increase buffalo meat exports to Russia. Mr Amit Telang, First Secretary at the Embassy of India in Russia has asked Rosselkhoznadzor to hold a new round of inspections of Indian companies interested in exporting their products to Russia. A Russian delegation is due to visit India soon to review India’s food products inspection system. Currently, four Indian companies have been allowed to supply buffalo meat to Russia and two have already started exports.
|MoU for poultry courses in Pakistan|
[13 April 2015] The Technical Education and Vocational Training Authority (TEVTA) in Pakistan’s Punjab state has signed a MoU with University of Veterinary and Animal Sciences and Pakistan Poultry Association to offer poultry related courses. A Government Technical Training Centre will be established offering short term courses. Mr Irfan Qaiser Sheikh, Chairperson, TEVTA said that this joint venture wold increase employment opportunities and will enable the students to compete at both local and international level. “Students who pass out as Poultry Assistants will be an asset for the poultry industry,” he said.
Asian Agribiz Pig Feed Quality Conference 2015
Onsite report by ISA Q TAN
[10 April 2015]
With a record attendance of over 200 delegates, the Asian Agribiz 2015 Pig Feed Quality Conference presented science, trial data and solutions to update industry professionals and provide relevant and useful industry information for Asian pig and feed producers.
Feeding modern and hyperprolific sows
Rapid development in pig genetics mean that traditional feeding systems are no longer appropriate for today’s hyper-prolific sows. Dr Megan Edwards, animal nutrition consultant from ACE Livestock Consulting said there is a need to fine-tune how modern sows are fed to help them reach their genetic potential. While each genetics company has its nutritional recommendations, she stressed that these recommendations may need to be adjusted and customised to take into account other constraints to genetic potential like environment, housing, climate, labour just to name a few. Among the solutions she suggested is to adopt specific pre-farrow diets and micro manage sow nutrition during late gestation. “When designing nutrition programs, we need to consider not only the role of nutrition on metabolism but also on hormone regulation and subsequent reproduction,” she said. Dr Edwards also stressed the need for more research to address knowledge shortfalls in sow nutrition in order to keep up with genetic advances.
How NSP enzymes can benefit sows
After farrowing, sows reduce feed intake due to drastic changes in metabolism. During lactation, sows mobilise their body reserves to produce milk, leading to significant weight loss. However, extreme weight loss at this time affects subsequent reproductive performance and increases the duration of weaning to oestrus interval. Thus increasing feed intake during lactation is critical. Dr Kevin Liu, Vice President of Adisseo Asia Pacific, said recent studies showed that “adding NSP-degrading enzymes improves feed intake, hence reducing mobilisation of body reserves, leading to less live weight and backfat loss.” This finding led to the EU’s recent approval of the use of NSP enzymes in sow nutrition.
Bio-emulsifiers can improve energy utilisation during lactation
Feeding the lactating sow is one of the biggest challenges for pig producers and nutritionists as in this period, the sows’ feed intake is often insufficient to cover their energy and nutrient requirements. Dr Lakshmibai Vasanthakumari Bindhu, Staff Scientist at Kemin Industries Asia, said “such energy imbalance could negatively affect sow fertility as well as piglet weight and homogeneity at weaning,” thus it is critical to maximise energy intake during lactation. One way to achieve this is to increase the energy density of the diet by adding bio-emulsifiers like lysophospholipids. She presented a study that showed how adding lysophospholipids in sow diets improved metabolic adaptation to the demands of lactation as well as minimised body weight loss. The positive effect was further reflected in higher litter weight at birth and at weaning.
Legumes and canola can be effective protein sources
Soybean meal (SBM) remains the leading source of high quality protein for pig diets. However, issues with pricing and availability as well as the increasing calls for GM-free protein sources have led to the search for viable alternatives. Dr Megan Edwards said that among the possible alternatives are legumes and canola. Although their relative value is lower compared to SBM, the availability of synthetic amino acids today at competitive prices means that they can be used effectively in diets. However, she stressed that it is important that the attributes and shortfalls of these ingredients be properly understood, and that the materials are applied correctly in the diet. “By considering a broader portfolio of raw materials we have a means of providing partial buffering against pricing and supply volatilities and competition from other sectors. It may also allow feed supply to better meet changing consumer pressures.”
Creatine can boost growth performance and meat quality
In a highly competitive pork production industry, enhancing efficiencies help producers push up productivity and margins. Dr Eloisa Carpena, Technical Sales Manager of Evonik (SEA) Pte Ltd, said studies indicate that dietary supplementation of the amino acid creatine “may contribute to the improvement of growth performance like weight gain and feed efficiency of pigs and improve meat quality parameters like drip loss, post mortem pH and visual colour.” However, a downside is that creatine monohydrate (CMH) is expensive and is not thermostable. Dr Carpena presented new trials showing that an innovative form of guanidinoacetic acid (GAA), which is the only precursor of creatine, can be a more suitable dietary source of creatine for pigs and poultry. However, she said more research is needed to understand better the application of GAA in improving the growth performance and meat quality of pigs.
Minimising leg lameness in pigs
Despite improved genetics, nutrition, disease resistance and housing management practices, leg lameness in pigs continue to occur. Dr Thau Kiong Chung, Regional Vitamin Category Manager of DSM Nutritional Products Asia Pacific, said that this could be explained in part by the occurrence of osteochondrosis. What triggers its onset is still unclear. Moreover, osteochondrosis could cause premature culling among gilts and sows and decrease growth performance of fattening pigs, resulting in hefty economic losses. Nevertheless, while leg weakness cannot be prevented, Dr Chung said one way to halt its progression is to supplement pig diets with 25-OH-D3. Doing so tends to promote normal endochondral ossification, inhibit osteochondrosis progression and possibly regenerate destroyed cartilage tissue. Likewise, supplementing diets of growing gilts with 25-OH-D3 leads to a higher proportion of females being selected as breeding replacements.
|Indon farmers facing low live bird prices|
[10 April 2015] Broiler farmers in Indonesia are facing a hard time. Information of live bird prices on April 6 sent by Pinsar Indonesia to Asian Agribiz revealed live bird prices in Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi) is in the range of USD 1.00-1.15/kg, while production cost is around USD 1.15-1.31. In some regions such as North Sumatera, Central Java and East Java, live birds were priced at around USD 0.92/kg. Sigit Prabowo, Chairman of the National Poultry Farmers Association, told Asian Agribiz that the situation has worsened since the government increased the price of fuel. This plus currency depreciation has prompted plans by feed millers to increase the price of feed.
|Bird flu in China-Myanmar border area|
[10 April 2015] Avian influenza H7N9 has surfaced in the China-Myanmar border namely in Laukkai, Chin Shwe Haw and Muse Townships, eleven.com a Myanmar news site reported. The Livestock Breeding and Veterinary Department in Myanmar has been cooperating with the World Health Organization and a recent sample of avian influenza A tested in the border area was found to contain strains H9 and H5. The strains should be present together to incite an incidence of H7N9. No human infection of the virus has been reported. A researcher active in bird flu research in the China-Myanmar border area urged chicken meat sellers to clean their shops regularly to prevent the spread of the virus.
|US beef exports to Japan, South Korea up in February|
[10 April 2015] US beef exports in February accounted for 14% of total production and 11% for muscle cuts only – ratios similar to a year ago, but higher than in January. Exports to Japan rebounded significantly in February, up 11% from a year ago in volume (15,933 tonnes) and 23% in value (USD 112.6 million). For the two-month period, exports to Japan were still down 1% in volume (29,743 tonnes) from a year ago but increased 11% in value (USD 204.1 million). The trend was similar for South Korea, as February exports were up 16% in volume (10,899 tonnes) and 24% in value (USD 80.4 million). January-February exports to South Korea were still 7% lower in volume (17,972 tonnes) but increased 3% in value (USD 137.9 million).
Asian Agribiz Pig Feed Quality Conference 2015
[09 April 2015]
The two-day Asian Agribiz Pig Feed Quality Conference 2015 opens today in Ho Chi Minh City, Vietnam. Over 200 professionals will gain new knowledge from the strong technical program addressing themes that can enhance the performance and profitability of Asian pork producers. Yesterday, DSM held a Satellite Symposium on Clean Pork Production as a prelude to the Pig Feed Quality Conference. Following is some information that was conveyed:
Producing clean pork
Around the world, consumers are increasingly calling for safe and quality food, and pork is no exception. Many countries have now banned the use of antibiotic growth promoters in animal production, while at the same time urging prudent use of these substances even for therapeutic purposes. “Consumers demand and deserve clean pork that is free from harmful residues,” said Dr Rolando Valientes, Regional Category Manager-Eubiotics of DSM Nutritional Products Asia Pacific. He noted that production of clean pork requires a holistic approach that includes management, health and nutritional interventions. Toward this end, eubiotics like organic acids, essential oil compounds, probiotics and nucleotides can be used as tools to reduce the use of antibiotics and to produce clean pork.
Coping with heat stress
One of the biggest problems in pig production is heat stress, which adversely affects how the animal functions. Dr Megan Edwards, animal nutrition consultant from ACE Livestock Consulting Pty Ltd, said that to respond to heat stress, pigs reduce their feed intake to limit the metabolic heat derived from feeding, exercise, growth among others, but this leads to more problems. To cope in these circumstances, Dr Edwards said good nutrition is necessary and should focus on diets that minimise heat production and enhance thermal tolerance. Management should focus on maximising feed intake by reviewing and reassessing feed ingredients, feed processing and feeding processes and practices.
|CP Vietnam invests in new processing plant |
[09 April 2015] CP Vietnam Cooperation, a unit of Thailand’s Charoen Pokphand Foods Pcl (CPF), plans to invest USD 20 million to build a new food processing plant in Vietnam. The move is in line with the company’s strategy in 2015 to advance toward food processing and ready-to-eat food businesses. Montri Suwanporsi, President of CP Vietnam revealed that the new and third plant is now under construction and is expected to be completed in 2016. “With the new plant we will be able to grow our market share to 20% in three to five years, from around 6-8% at present,” Mr Montri said.
|Committee to meet on Thai egg price issue|
[09 April 2015] Thailand’s national committee on policy and measures to assist farmers will meet today to consider measures on tackling the low egg price problem, said Deputy Director General of the Department of Internal Trade Ittipong Kunakonbodin. The Egg Board earlier agreed on measures including exports of surplus eggs and early removal of spent hens. Compensation of THB0.50 for each egg exported and THB 40 for any spent hen removed earlier but not older than 70 weeks was suggested (1 USD = THB 32.60). The measures need funding and the national committee is expected to request for a budget for the program. More recently, egg price has improved with declining production as some farmers have succumbed to losses while the hot weather has reduced productivity.
|Vietnam more open to US beef imports|
[09 April 2015] Vietnam has removed all cattle age and product restrictions on US beef and beef products, provided these items are derived from cattle slaughtered on or after March 27. In 2014, the US exported a total of 2869 tonnes of beef and beef variety meat valued at USD 22.1 million to Vietnam. The US Meat Export Federation (USMEF) said the removal of cattle age and product restrictions is a positive development, especially in a market that is price-sensitive. Thad Lively, USMEF senior vice President for trade access noted that having access to Vietnam for a full range of beef products will allow the US industry to better capitalise on any market access gains resulting from the Trans-Pacific Partnership.
|West Kalimantan to balance egg supply and demand|
[09 April 2015] Indonesia’s West Kalimantan is currently facing a surplus of eggs. Abdul Manaf, Head of Livestock and Animal Health Agency of the province, said normal production in the province is around 100-120 tonnes/day, while current production has reached 160 tonnes. “Local consumption cannot absorb the entire production,” he said. Some egg producers have sold their eggs to markets outside the province, especially to Java. In addition, the local government plans to reduce layer population from now around 3.5 million birds to 2.4-2.8 million birds. “In the last two years, layer population in this province has increased from 2.3 million birds in 2011 to 3.5 million in 2014,” said Mr Manaf. Another strategy would be to stop layer DOC importation from outside the province that has reached around 150,000 chicks/month.
|Bombay High Court asks government to file affidavit on beef ban|
[09 April 2015] The Bombay High Court has asked the Maharashtra state government in India to file an affidavit on the necessity of the beef ban. The first hearing of a string of petitions that challenged the new law, which banned sale and possession of beef in Maharashtra was held on April 6. The division bench of Bombay High Court questioned the government on why its compassion was restricted to cow progeny. To this the Advocate General Sunil Manohar appearing for Maharashtra government said that ‘this is just beginning, and the state may consider taking it further’. After directing the government to file its affidavit in reply, the High Court posted the hearing for April 20.
|Feed still main revenue earner for CP Vietnam|
[08 April 2015] CP Vietnam generated total sales of around USD 2 billion in 2014, 95% of which came from domestic sales and the rest from exports. Considering sales by segments, around 45% of total sale revenues came from feed sales and another 45% from livestock operations while its food business accounted for 6-8% and the balance was others. This year, CP Vietnam targets its food business to grow 30% through marketing channels including supermarkets and modern trade stores as well as CP Shop and CP Fresh Mart stores.
|Asian markets import less US pork|
[08 April 2015] US pork exports to its main markets in Asia was down 16% in the first two months of this year, according to the US Meat Export Federation (Usmef). Total exports to Japan, Hong Kong/China, South Korea, Asean, and Taiwan reached 154,832 tonnes for the period compared to 184,676 tonnes a year ago. Export value also tumbled 14% to USD 489.7 million to USD 571.7 million during period in review. Volume and value of shipments to South Korea grew by 58% and 77% respectively as they did in Taiwan, however these were not enough to offset the drop in the other key Asian markets. Export volume and value to Japan both fell by 9% and 16%, Hong Kong/China 45% and 45%, and Asean 47% and 50%.
|Indonesia slammed for slave labour in fishing|
[08 April 2015] The US has threatened to stop importing fish and seafood from Indonesia if they are proven to be slave-caught. Catherine A Novelli, US Under Secretary for Economic Growth, Energy and the Environment, said that the US condemns forced labour and related practices. Stories about slave workers surfaced following an Associated Press report. The news agency conducted a year-long investigation into the fate of foreign fishermen in Aru, Maluku – Indonesia. About 4000 foreign fishermen, mostly from Myanmar, are employed by PT Pusaka Benjina Resources (PBR), a joint venture with Thai investors in Aru. They are forced to work under poor conditions. The Indonesian government, has ordered PBR to stop its operations. Most fish caught by PBR in Aru is shipped to Thailand for processing and then exported to the US.
|Yum! Brands commits to deforestation-free palm oil|
[08 April 2015] US-based Yum! Brands that owns QSR chains KFC, Taco Bell and Pizza Hut has announced that it plans to refrain from using palm oil obtained through deforestation. The company said by the end of 2017, it will “source 100% of its palm oil for cooking oil from responsible and sustainable sources.” The expansion of oil palm plantations has been blamed for driving rainforest destruction, particularly in Indonesian Borneo (Kalimantan). Indonesia’s tropical forest area is the third largest in the world, but Indonesia is also one of the world’s largest emitters of greenhouse gasses because of rapid loss of carbon-rich forests and peatlands.
|Belarus suspends poultry imports from India |
[08 April 2015] Belarus has imposed temporary restrictions on imports of poultry from India, according to the Veterinary and Food Control Department of the Agriculture and Food Ministry. The move follows cases of high pathogenic avian influenza in Uttar Pradesh state in India. The ban will cover imports of live birds, hatching eggs, poultry meat, egg powder and other food products from processed eggs. With this, all the previously issued permits to import the products from Uttar Pradesh will be cancelled.
PPA to organise two day poultry festival
[08 April 2015] Pakistan Poultry Association (PPA) in collaboration with the Punjab Livestock department will hold a two day Poultry Food Festival on April 10-11 in Lahore. Dr Mustafa Kamal, Chairman (North Zone) of PPA said that the festival is aimed at creating awareness among the general public on the importance of poultry products, which is the cheapest available meat protein source. “PPA also endeavours to promote egg consumption, which has many health benefits,” he said. According to him, poultry accounts for 40% of total meat consumption in Pakistan and generates employment for about 1.8 million people.
|CP Foods to invest USD500m for expansion in India|
[07 April 2015] Charoen Pokphand Foods India Private Limited (CPF) operating its Five Star Chicken franchise, plans to invest USD 500 million for expansion in India. Sanjeev Pant, Senior Vice President of CPF said that they plan to double the number of Five Star Chicken stores in the next five years and to enter the packaged food business. CPF has 260 Five Star Chicken stores in India and is growing at the rate of 10-15%. According to him, the investment of USD 500 million will go towards expanding shrimp, poultry and food business of CPF.
|Brazil lifts import ban on Vietnam seafood|
[07 April 2015] Vietnam’s Ministry of Agriculture and Rural Development’s Department of Animal Health said Brazil has lifted the ban on Vietnamese tra fish. The department’s Director Pham Van Dong said a number of Vietnamese enterprises are preparing to ship their products to Brazil. Previously, Brazil’s Ministry of Agriculture had requested for Vietnam to draw out a plan for preventing diseases on tra fish. Vietnam’s Department of Animal Health said the requirement was contrary to regulations of the World Organisation for Animal Health, the World Trade Organisation and those in the sanitary and phytosanitary systems.
|Eastern Indonesian pig farmers need training|
[07 April 2015] Results of a survey of pig farming in the east of Indonesia reveal a need for better education of farmers, particularly on pig disease and biosecurity. Pigs provide a secondary income source for smallholder farmers, with the majority slaughtering at their own premises for household meat consumption. Most of the pigs are kept in pens or tethered, while some roam free in the village. Farmers have limited access to animal health facilities and biosecurity is minimal, the researchers found. First-named author, Edwina E C Leslie, and co-authors reported that pig farming is common among smallholder farmers in East Nusa Tenggara.
Food safety focus for World Health Day
[07 April 2015]
Ensuring food safety from farm to plate
This year's world Health which falls today is dedicated to food safety. The World Health Organization (WHO) has declared the slogan for this as 'From farm to plate, make food safe'. “Food safety is a cross-cutting issue and shared responsibility that requires participation of non-public health sectors and support of major international and regional agencies and organisations active in the fields of food, emergency aid, and education,” said WHO in a release. Coordinated international actions are also needed to reign in foodborne disease, it added.
Foodborne diseases cause 351,000 deaths
Nearly 600 million cases of foodborne enteric disease, with 351,000 deaths, occurred worldwide in 2010, 40% of them in young children, a WHO research group noted as it released early findings of a broad analysis of the global burden of the diseases. The WHO’s Foodborne Disease Burden Epidemiology Reference Group’s (FERG’s) figures say that enteric disease cases from contaminated food numbered 582 million in 2010. Twenty-two different diseases were responsible, with Salmonella typhi infections causing the most deaths (52,000), followed by enteropathogenic E. coli (37,000) and norovirus (35,000). Southeast Asia was the site of the second highest disease burden after Africa.
Few countries implement integrated antimicrobial resistance surveillance
The Southeast Asia regional food safety strategy among others objectives, is building links across the region. From the Food Standard and Safety Authority of India’s mechanisms to certify safe food across all sectors to the ‘Clean food, good taste’ certification for street food vendors in Thailand, WHO is working with governments, policy makers, public health professionals, and individuals to build a synergy of safe food. This includes promoting and supporting implementation of laws and standards, improving public awareness and spurring action across various sectors. Despite this, harmonised integrated surveillance of antimicrobial resistance in food-producing animals and food is implemented in only a few countries. While national programs are working to create more reactive programs, a holistic solution must also come from each segment of the food chain, starting with the farmers.
Food safety starts from the farm
Safe food production practices at the farm can ensure that meat, dairy and egg products are well-tended from the source. WHO in its website presented a story about an organic poultry farmer from India, Vivek Kushwaha. His lifelong desire for healthy food ignited a passion to develop a successful organic poultry farm and bring local farmers together to form a network of producers of safe food. His ‘cycle of happiness’ philosophy has drastically improved the lives of the farmers Vivek works with. “They had almost quit farming but are now enthused as they produce the best quality products for the consumers. They also understand that providing healthy food is sustainable and the right thing to do.” WHO’s Antimicrobial Resistance Global Report on Surveillance has defined that resistance to antibacterial drugs has become a worldwide problem for both human and animal health. Irrational use of antibiotics causes antimicrobial resistance in both animals and humans.
SEA urged to make food safety a priority
Over 700,000 children die in Southeast Asia every year due to diarrhoea and several other diseases caused by the impure food and water. “Bacteria, viruses, parasites, chemicals, and other contaminants in our food can cause over 200 diseases ranging from diarrhoea to cancer,” said Poonam Khetrapal Singh, WHO Regional Director for Southeast Asia. She said countries must put in place comprehensive food safety policies and stringently implement it across the food chain. “WHO supports countries to prevent, detect and respond to foodborne disease outbreaks using the Codex Alimentarius, a collection of international food standards, guidelines and codes of practice that include microbiological norms, food additives, pesticides and veterinary drug residues, contaminants, labelling and presentation, and methods of sampling and risk analysis.”
Indonesia lacks adequate food safety standards
Indonesia still has a long way to go before it can ensure food safety as the country severely lacks adequate standards, according to Agustin Kusumayati, University of Indonesia Public Health Dean. “This may be because of a lack of priority [on the government side] to develop them. That’s why it’s hard for us to apply reward and punishment [with food producers]. However, having food safety standards is not enough to ensure consumer safety as food safety involves many stakeholders,” she said. The government is currently working on issuing more Indonesian National Standards (SNI) for food and agriculture products, according to Ita Munardini, Agriculture Production and Marketing Director General of the Ministry of Agriculture. “At the moment, we have about 500 SNIs, but only a few are mandatory. Without food safety standards our producers will not be able to compete [with foreign producers],” she said. Ms Ita said the reason Indonesia still lacked food safety standards was because they are expensive to develop.
|Thailand opts for sustainable corn project |
[06 April 2015] Bangkok Produce Merchandising Pcl, a company under Charoen Pokphand Foods Pcl, or CPF, has signed an MOU with the Agricultural Land Reform Office under the Ministry of Agricultural and Cooperatives to jointly implement a sustainable corn project. This involves transferring good agricultural practice for maize to farmers. The cooperation was prompted by the current smoke problem in the northern region, a major corn production area. Somchai Kungsamutr, President and CEO of Bangkok Produce said the project will promote proper corn planting knowledge and after-harvest management. Ploughing up and over of soil is promoted rather than burning to clear post-harvest waste. The project aims to cover 18,000 acres in eight provinces in the first year with a target for 90,000 acres by 2019.
|Indon poultry firms see profit decline in 2014|
[06 April 2015] Publicly listed poultry firms in Indonesia ended last year with lacklustre financial performances, surging expenses and low prices squeezing revenues. Major players Charoen Pokphand Indonesia, Japfa Comfeed Indonesia and Malindo Feedmill all recorded significant a year-on-year decline in their net profits last year. CP Indonesia saw its net profit plunge by 30.8% to around USD 134.6 million last year from around USD 194.5 million in 2013. Japfa recorded a 48.3% decline to around USD 24.5 million from around USD 47.4 million year-on-year. Malindo, meanwhile, booked around USD 6.5 million in net losses last year, a slump from around USD 18.5 million in net profits in 2013.“Declining prices on the back of DOC oversupply, currency depreciation and fuel-price hikes became the main factors deflating the firms’ financial performance,” said Herman Koeswanto, Mandiri Sekuritas Analyst.
|Betagro opens four food outlets in retail complex |
[06 April 2015] Betagro Group from Thailand has opened four outlets for its food and bakery brands at a new luxury retail complex, EM Quartier, in Bangkok. The restaurants namely the Japanese food chain Pomme-no-ki, the Japanese udon chain Miyatake Sanuki Udon, Little Mermaid bakery and the Singaporean barbequed pork chain, Bee Cheng Hiang. Betagro has invested significantly in the restaurant segment through joint ventures with several Japanese food chains and is expecting to add two to three more brands to its portfolio this year.
|US eyeing more Asian pork exports|
[06 April 2015] As the first quarter of 2015 ends, Joel Haggard, US Meat Export Federation (USMEF) Senior Vice President for the Asia Pacific, offered his insights on factors shaping demand for US pork in key Asian markets. “First, the US dollar is particularly strong and a strong dollar means weak currencies for the importing countries in Asia and also our competitors, including Europe and Brazil. On top of this, we see weak European pork prices in Euro terms,” said Mr Haggard, as quoted by Meat+Poultry. Meanwhile, domestic pork prices in Japan and Korea, two of the US’ major importing destinations, are up 15-20%. “We hope this will translate into overall increased imports,” he said. “We also continue to watch China closely. Imports are up 6% year-on-year despite soft domestic prices.”
|US corn, soybean, wheat stocks up from year ago|
[06 April 2015] The US Department of Agriculture (USDA), in its Grain Stocks report dated March 31, reported that corn stocks stood at 7.7 billion bushels, up 11% from a year ago, the second most in the history for the time of year and above estimates. Both soybean stocks and wheat stocks were up 34% and 6% respectively. In its Prospective Plantings report, also released on March 31, the USDA said it will reduce corn and wheat planted acreage by 2% and 3% from the year before, and increase soybean acreage by 1% from 2014.Soybean planted area for 2015, meanwhile, is estimated at a record high of 84.6 million acres. Compared with last year, planted acreage intentions are up or unchanged in 21 of the 31 major producing states. FT.com said world inventories of grain and oilseeds are “bulging after two years of good harvests”.
|CJ to promote products with less sodium, chemical additives|
[06 April 2015] Korea-based CJ Group plans to widen its processed meat market by promoting new products with less sodium and no chemical additives. The company said the demand for low-salt, chemical-free premium products was rising. “More consumers are exploring ways to lead a healthier life,” said Kwak Jung-woo, a marketing executive of CJ Cheiljedang. “This puts increasing pressure on food companies to reduce the use of sodium and chemical substances. We have led the market with a series of innovative products. We will shake up the market once again with new products that will present customers with healthier life choices.” He said that CJ products contained between 1.0% and 1.5% sodium, less than products made in the US, Europe and Japan.
|Japfa Indonesia acquires 70% of MMP shares |
[03 April 2015] Japfa Ltd has announced that its Indonesia listed subsidiary Japfa Comfeed Indonesia has acquired 70% of the issued share capital of PT Multi Makanan Permai (MMP) on April 1. The acquisition price was around USD 37,066, which was arrived at on a willing-buyer, willing-seller basis, based on 70% of MMP’s net tangible assets as at February 28, 2015. The purchase was financed by internal resources. MMP is into trading of animal feed raw materials. The customers of MMP are mainly self-mixer poultry farmers and smaller local feedmills. The acquisition provides Japfa Indonesia with the opportunity to expand its customer portfolio.
|Vietnam approves GM corn for animal feed|
[03 April 2015] Vietnamese farmers across the country can now plant three varieties of genetically-modified (GM) corn from Syngenta according to a government rule, reported Thanh Nien News. The three varieties are NK66 BT, NK66 GT and NK66 BT/GT, and will be supplied to corn farms nationwide with each variety being distributed to specific regions, said the Ministry of Agriculture and Rural Development. Pham Dong Quang, Director of the Department of Crop Production, said the three varieties are able to resist pest and herbicide as well as produce higher yields. “GM corn will be used for animal feed only and thus, it does not require special labelling,” he said. These developments were in line with a 2006 plan to develop biotech crops as part of a ‘major program for the development and application of biotechnology in agriculture and rural development’. The plan aimed to cultivate Vietnam’s first GM crops by 2015 and have 30-50% of the country’s farmland covered with genetically modified crops by 2020.
|Former Yurun CEO under house arrest|
[03 April 2015] The founder and former CEO of Yurun Food Group, Zhu Yicai, has been placed under house arrest by Chinese authorities, according to a statement posted by China’s second-largest meat company on the Hong Kong Stock Exchange website. Mr Zhu stepped down in 2012 to become Honorary Chairman and Senior Adviser to Yurun's board of directors. A story on the E-Pig (zhue.com) website said Mr Zhu was being investigated by the Communist Party’s Central Commission for Discipline Inspection, which is spearheading a nationwide anti-corruption campaign that has snagged scores of government and business officials. In its statement Yurun said it had no information on the reasons for Mr Zhu’s detention, but said he had no current role in managing the company, although he still owns 25% of Yurun’s shares.
|SEAI urges government to lift ban on shark fin export|
[03 April 2015] The Seafood Exporters’ Association of India (SEAI) has urged the Central Government to lift the ban on sharks fin exports. The Director General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry recently banned sharks fin exports. In a statement, the SEAI said that the ban is counterproductive and affects the livelihood of the economically backward fishing communities. “The order reflects apprehensions of environmentalists that the shark population is fast depleting because they are being caught just for their fins,” the statement added. According to SEAI, shark is not a focused fishery in India and is only caught along with other fish.
Preview of Asian Poultry Magazine, April 2015
[03 April 2015]
Cargill supports farmers to build market share
Cargill Feed and Nutrition Vietnam helps small-scale farmers tackle big challenges not with a general one-size-fits-all answer but with localised solutions which are developed closer to home, RACHAEL PHILIP discovers.
Liuhe taps into growing demand for goose, duck
Duck and goose meat have been on a roll in China for the last 15 years. China’s consumption of broiler chicken has been hit hard by recurrent outbreaks of Highly Pathogenic Avian Influenza, but goose and duck meat have become steadily more popular writes RICH HERZFELDER.
IFMC confident of retail success
The Bounty Fresh Group, one of the leading poultry integrators in the Philippines, has made a name for itself with high quality poultry products. ISA Q TAN reports that its sister company, Inoza Feed Milling Corp, backed by years of producing Bounty’s internal feed requirements, is now gunning to make its mark as a leading feed company in the country.
Rohini Minerals to maintain lead with R&D
With a strong R&D division, Rohini Minerals based in South India aims to improve the quality of its poultry feeds and maintain its competitive edge. ARIEF FACHRUDIN also learns that the company embraces modern technology for its feed milling and quality control facilities.
Utilising cotton seed meal in layer diets
In the first of this two-part article S.V. RAMA RAO and T. SRILATHA* showed that the nutritive value of cotton seed meal (CSM) can be improved by selective dehulling and fortification with neutraceuticals and included in broiler diets at up to 20%. In the second part of this article they write that dehulled CSM can also be successfully used in layer diets.
New generation stabilisers improve Newcastle disease vaccine performance
Asian poultry integrators increasingly rely on hatcheries to administer important vaccines. Pressures to adopt earlier vaccination strategies include injected, sprayed and in ovo programs, each method and antigen imposing its own particular burden application and risk of failure. ZHANG JIANG, VERGIL DAVIS and RYAN IZARD* discuss the potential of new generation stabilizer technologies to protect fragile Newcastle Disease (ND) vaccines from the harmful effects of chlorine. This can allow producers to use ordinary tap water or well water to make spray vaccination more convenient and efficient.
DDGS – Understanding quality & value
Many feed mills and integrators have become frustrated with the variable nature of DDGS. The use of book values has often resulted in reduced animal performance, increased diet costs or both. As a result some companies are simply not prepared to take on the risks using DDGS, while others have continued using, but have taken conservative positions on its nutritional value and inclusion rate. In both instances companies are losing out simply due to the fact that they don’t fully understand the material, through no direct fault of their own. MAX PURSER* outlines some of the considerations to understand specific sources of DDGS to be able to successfully use higher levels of this economical source of nutrients and energy.
|NIR workshop in HCMC - few places left|
[02 April 2015] A one-day workshop on Near Infrared Reflectance Spectroscopy (NIR) will be held in Ho Chi Minh City on Wednesday 8 April the day prior to the 2015 Pig Feed Quality Conference. This is to help pig feed producers utilise data to make decisions that can save money, and improve feed quality and animal performance. Presented by NIR expert, Ivan Ward (Agri-Torque Pty Ltd) it will be held in a modern computer lab and cover the challenges and opportunities of NIR. The workshop is limited to 20 participants. The cost of USD360 includes refreshments, lunch and workshop notes. Register your interest with Omthong Tjoa and Sutasinee Lake at firstname.lastname@example.org. Further information on Asian Agribiz's 2015 Pig Feed Quality Conference is available here.
|CPF targets 25% growth in pork production |
[02 April 2015] Charoen Pokphand Foods Plc, or CPF, targets to increase its pork production by 25% this year from last year’s 70,000 tonnes worth around USD 153.80 million, said Prapoj Chokpichitchai, CPF’s Executive Vice President for its pork processing business. CPF’s processing plant in Chachoengsao province has a capacity to produce 1400 tonnes of pork a week. CPF also has a further processing plant that can churn out around 5400 tonnes a year of further processed pork products. The company plans to build two new further processing plants; one is being constructed and is scheduled to be operational in the middle of next year. Once all three plants are operating, CPF will intensify production capacity of its further pork processing to total 19,000 tonnes a year.
|Two human cases of H5N1 in Indonesia|
[02 April 2015] An Indonesian Health Ministry official, reported two H5N1 human fatalities. The Jakarta Globe reported that the father and son from Tangerang in Banten province were hospitalised in separate facilities with severe flulike symptoms. The father (40) died on March 24, and his son (2) died two days later. Indonesia’s state media Antara said the two, along with other family members, had visited a relative in Bogor who owns a small poultry farm and sudden poultry deaths had occurred during their stay.
|Jinluo plant to reopen after FMD reports|
[02 April 2015] Xincheng Jinluo Group’s plant in Dezhou, China has been authorised to resume production less than two weeks after it was closed following accusations that it was processing pigs dead from foot-and-mouth disease. Safety control systems have been improved, and the Linyi County Animal Husbandry Veterinary Bureau inspected the plant and said it could resume production, Jinluo said in a statement posted on its website. FMD has been reported in at least seven Chinese provinces over the last few months, and the CCTV broadcast followed reports of a police investigation which found farm insurance agents were helping farmers sell pigs that had died of FMD. The swift re-authorisation for the Jinluo plant contrasts however with the treatment US-owned Shanghai Husi received last year, when it was permanently closed after a TV broadcast accused it of processing expired meat.
|Fast Food Indonesia sees profits dip|
[02 April 2015] Ballooning expenses from rising operational costs and a minimum-wage hike has Fast Food Indonesia, Kentucky Fried Chicken’s (KFC) operator in Indonesia, feeling the pinch. The publicly listed company ended last year with a 6.31% increase in revenue to USD 322.3 million. The moderate growth failed to compensate for the firm’s surging expenses, however, bringing down net profit by 2.7% to USD 11.63 million in 2014. Mario B Ledres, Finance and Administration General Manager, said increasing operational costs and the rise in minimum wage would affect the company’s bottom line. “The minimum wage increased 14.5% a few years back to more than 32% in 2013 and 18% in 2014,” he said. He added the government’s decision to raise the price of subsidised fuel late last year had increased transportation costs, which made up between 50- 53% of its total operational costs.
|Rainfall in India sounds alarm for crop damage|
[02 April 2015] With the Indian Meteorological Department (IMD) forecasting more rain in North West and North East India, the possibility of crop damage seems to be high. IMD has forecast more rain in many states including Punjab, Haryana, Uttar Pradesh, Bihar, Maharashtra and Madhya Pradesh. “This could cause some damage to standing crops like wheat and maize in these areas,” Amit Sachdev, India Representative of US Grains Council said and added that water logging could also affect standing crops. In most areas in India, crops are harvested and put out on the land for drying. According to him, extensive damage to wheat and mustard crop has already been reported from Rajasthan due to heavy rain.
|CAB Cakaran’s new business entity to generate 10% turnover |
[01 April 2015] Malaysian integrator CAB Cakaran Corp Bhd expects its new biomass power generation business to generate 10% of its turnover in two years. Chris Chuah, Group Managing Director, said the biomass power generation facility will utilise roughly 300 tonnes of chicken droppings collected from its farms daily. “This can produce more than one megawatt of power. We have yet to determine the cost of investment. The project should commence at end of the year,” he said after the company’s annual general meeting. CAB Cakaran recently inked a memorandum of understanding (MoU) with New Chemical Trading Co Ltd from Japan and Seri Kedah Corp Sdn Bhd to venture into the biomass project. The facility will incinerate chicken droppings for the project and also produce fertiliser as a by-product.
|De Heus Vietnam opens 5th feed factory|
[01 April 2015] De Heus Vietnam opened its 5th animal feed facility in Vietnam recently. The plant, located at Binh Xuyen Industrial Park in Vinh Phuc province, has a production capacity of 400,000 tonnes per year, lifting the company’s total production capacity to 850,000 tonnes per year. De Heus said the new plant will meet international quality standards as it integrates the advanced infrastructure imported from Europe and the US. It also has a well-equipped laboratory that monitors the quality of all raw material and finished products. “This facility will sustain our leadership in the animal feed sector and contribute to the development of the agriculture sector in Vietnam,” said Gabor Fluit, General Director. The plant is set up as a four-in-one production facility with a dedicated piglet feed line, a separate aqua feed line, its own bulk loading station and one line for other animals.
|Japfa Ltd shares fall by more than 30% since IPO|
[01 April 2015] Listed last August on the Singapore Exchange, Indonesian agrifood company Japfa Ltd has seen its shares fall by 34% from its listing price of SGD 0.80 (USD 0.58) . According to its financials for the year ended 31 December 2014, the company had seen its profit after tax and minority interests fall by 25.3% to USD 31.2 million despite experiencing a 9.3% increase in revenue to USD 2.9 5 billion. The integrator recorded a lower profit margin as a result of oversupply in its market, a fall in raw milk prices in China and a review of Japfa’s swine breeding practices in Vietnam. To drive long-term growth, Japfa said it will expand its dairy operations in China. The company is also temporarily scaling back its poultry business in Indonesia to improve operational efficiency. In addition, Japfa is also diversifying its business to reduce reliance on PT Japfa Comfeed by investing heavily in “high-growth consumer food brands in the region”.
|New Zealand farmers’ group welcome Korea FTA|
[01 April 2015] Farmer owned industry organisation Beef + Lamb New Zealand has welcomed the signing of the New Zealand-Korea Free trade Agreement, calling the deal ‘critical’ for sheep and beef farmers and exporters. James Parson, Chief Executive of the organisation, said the deal would help keep both farmers and exporters competitive in this key market for them. Korea is New Zealand’s fourth-largest beef market by volume, reported GlobalMeatNews.com. Volume, however, has dropped in recent years due in part to competition from the US and, more recently Australia and Canada, having a tariff advantage through their free trade agreements with Korea.
Gira Asia Meat Club review 2015
[31 March 2015]
Production, consumption to see modest growth
Economic growth should be better in 2015 spurring growth in the global meat market, said Richard Brown, Gira Director. However the market will be subject to more risk than previous years, with renewed problems in the Eurozone and the impact of the oil price decline. Meat production and consumption will see modest growth, supported by low feed costs, compared to the historical average. On the other hand, Mr Brown said the market will continue to be on high alert with diseases such as the African swine fever spreading into other countries with serious threat to trade and PEDv in the US being unpredictable.
Pigmeat production positive in most Asian markets
Asia saw a decline in pig herd numbers in 2014, most notably in Thailand, Japan and China. Rupert Claxton said Japan remains the largest importer of pigmeat in the region and Chinese imports continued to grow, despite low domestic prices. Mr Claxton said pigmeat production in the region in 2015 should be positive in most markets. Japanese import volumes may decline since pigmeat production in the country is forecast to recover (by 1.2%), stimulated by high market prices.
Poultry records strong production growth in 2014
Asian poultry meat in 2014 recorded strong production growth throughout most of region due to price, said Rupert Claxton. This year it is estimated that the production growth will continue, with incredible growth in India driven by a booming integrated chicken industry and the implementation of improved disease controls. In addition, Thai exports are set to continue to grow with new export opportunities opening in the Philippines and several other countries that recently lifted bans on imports of fresh chicken from Thailand. Chinese exports will also grow but slowly due to its poor safety recognition.
Asian sheepmeat production, consumption up
Sheepmeat production in Asia in 2014 increased in line with flock growth, but little investment in the industry limited productivity gains, according to Rupert Claxton, Gira Senior Consultant. Consumption grew as consumers looked to alternatives for beef, poultry and pigmeat. Exports remain limited due to small-scale & backyard production, while imports rose particularly in China, as demand outpaced local supply. “In 2015 sheepmeat production and consumption in Asia will continue to increase and sheep flocks are expected to grow, particularly in the Asian minor markets,” said Mr Claxton, adding that “China will remain the dominant producer, importer and consumer of sheepmeat in Asia and globally.”
Asian beef consumption to remain positive
Beef consumption in Asia this year will remain positive, said Rupert Claxton. Chinese beef consumption in particular will continue to grow, although at a lower rate of 1%. And to meet this consumption increase, Chinese beef imports will also continue to increase. In terms of production, India, China and Pakistan will continue driving production volume growth in the region, notably India with an increase of 5.2% this year. Besides, Indian beef exports will continue to grow at an estimated 7%.
|Indonesia’s CP Prima launches new fish feed|
[31 March 2015] Responding to Indonesia’s Minister of Fisheries and Marine Affairs’ call to provide cheaper fish feed, Central Proteinaprima, better known as CP Prima, recently launched a fish feed at an economical price of around USD 0.53/kg. George Basuki, Communication Manager, said the protein content of the new feed is around 27-28%, lower than the 32-34% protein content of its premium feed. “However, the protein content of the new feed is higher than Indonesia’s National Standard (SNI),” said Mr George. The company is promoting the new feed, and Mr George believes that the new feed will sustain fish farmers’ business in the midst of production cost increase.
|Jollibee to open first Canada store this year|
[31 March 2015] Philippine fast food giant Jollibee Food Corp (JFC) targets to open the first branch of its flagship store in Canada. JFC Chief Financial Officer Ysmael Baysa said that they are considering Toronto as the possible site but nothing has been finalised yet. The company is also looking at opening more locations in the Middle East and is hoping to open its first stores in Japan and Europe in the next 2-3 years. The company has been expanding both locally and overseas, having earmarked a budget of about USD 208 million for its capital expenditure this year.
|Indonesia assists neighbours in cattle breeding development|
[31 March 2015] Indonesia is assisting Cambodia, Laos and Timor Leste in sustainable cattle breeding aimed at tapping cooperation potential as well as narrowing the development gap among Asean member countries prior to the implementation of the Asean Economic Community (AEC). The training in artificial insemination, recently held in Jakarta and Malang, East Java, was also part of the Indonesian government’s efforts to develop South-South and Triangular cooperation within the AEC, the Foreign Ministry said in a press statement. The training included sustainable cattle husbandry, breeding strategy and artificial insemination followed by interactive discussions and field practice on artificial insemination and supply chain management.
|Japanese developments likely to remove key barrier to TTP |
[30 March 2015] Japan is looking at ways to prevent defensive agricultural policy being a barrier to the conclusion of the TTP negotiations this year. Structural reforms is one of three major components Japanese Premier Shinzo Abe has introduced to stimulate the economy. Structural reforms can dismantle some of the complex regulations in the agricultural sector, said Yi Chen, Gira analyst, at the recent 2015 Gira Asia Meat Club briefing in Jakarta. “Any changes to Japanese meat import regulations will be significant both to the domestic meat supply chain and also to exporters to Japan from around the world, even if TTP implementation is spread over a decade,” said Ms Chen. She added that regulations have limited import volumes to approximately 50% import penetration of a large – but stagnant – 6.5 million tonne cwe market. With a TTP agreement, import volumes will increase. “A successful TTP agreement might restore growth to a static Japanese meat market, while spurring growth in the other Asian markets,” she added.
|DA mulls new SRPs for pork and chicken|
[30 March 2015] The Philippine Department of Agriculture (DA) has called for a reduction in the retail prices of pork and chicken as farm prices of live hogs and chicken have gone down to USD 2.39-2.52/kg and USD 1.16/kg respectively. The DA said retail prices should now be about USD 3.57-3.91/kg for pork and USD 2.39-2.52/kg for chicken, and is considering revising its suggested retail prices (SRP). However, retailers balked at the idea, saying traders have not brought down prices. Meanwhile, Atty Elias Jose Inciong, President of the United Broiler Raisers Association told Asian Agribiz that oversupply has led to lower prices, and current farm price is below the breakeven range of USD 1.50-1.61/kg. He said the DA should consider revising the SRP weekly so it can better reflect changes in the farm prices. Meanwhile, Edwin Chen, President of the Pork Producers Federation of the Philippines welcomed the DA’s move, telling Asian Agribiz that this will make pork and chicken meat more competitive with other protein sources.
|Chinese pork price still falling|
[30 March 2015] After a brief pause at Chinese New Year, China’s pork price resumed its steady decline, falling 5% since the holiday ended in late February, according to the Ministry of Commerce’s weekly price survey. The pork price peaked in 2014 at USD 3.50/kg in mid-September, and has since slid more than 13% to USD 3. The Chinese pork market has been oversupplied since late 2013, despite a reduced herd as farmers culled millions of sows. Analysts said the government’s anti-corruption and austerity policies are one reason for the reduced demand, which is thought to have reduced banquet and restaurant consumption by one-third.
|India publishes draft veterinary certificate for pork imports|
[30 March 2015] India’s Department of Animal Husbandry, Dairying & Fisheries (DADF) recently published a draft veterinary certificate for import of pork and pork products into India. The draft has been published on the World Trade Organization’s (WTO) website for comment and the deadline is May 15. The draft combines two separate veterinary certificates for pork and processed pork products and includes several modifications to the import requirements. The requirement that a country be free from certain diseases has been modified, and now includes the World Organisation for Animal Health’s (OIE) guidelines. Moreover, the draft no longer prohibits the use of feeds produced from internal organs, blood meal, and tissues of ruminant origin.
|Indonesia set to announce higher cattle import permits|
[30 March 2015] The Indonesian government is set to announce 250,000 heads of live cattle import permits from Australia for the second quarter of 2015, according to industry speculation. In Q1 the government only approved import permits of 100,000 heads. An industry source said the Q2 import permits were set to be announced soon and aligned with local industry expectations, but fell slightly short of what Indonesians importers had bid for. Jed Matz, Cattle Council of Australia CEO, said he was unable to confirm or deny whether that number was accurate. But he said an official announcement was expected soon, and if 250,000 heads were the Q2 figure, it would be welcomed by industry. An Indonesian cattle importer, meanwhile, said permits totalling 250,000 heads had been allocated by the Ministry of Trade to more than 40 feedlotters/importers.
|AVA supports fish farmers hit by plankton bloom|
[30 March 2015] The Agri-Food and Veterinary Authority of Singapore (AVA) said it will provide assistance to fish farmers affected by the recent fish deaths caused by a plankton bloom situation. “Plankton bloom occurrences are difficult to prevent, but it is possible to reduce the impact. While we provide assistance to help farmers tide over this difficult period, it is also important for farmers to do their part to take mitigating measures early. AVA is also looking into how to build up farmers’ resilience against such incident,” Dr Mohamad Maliki Bin Osman, Minister of State for National Development and Defence, said. AVA has also called for proposals for the design and development of closed-containment aquaculture system for coastal fish farming last year.
9th Asian Grain Transportation Conference in Singapore
Report by RACHAEL PHILIP
[27 March 2015]
Soybean consumption to increase 6.3% to 290m tonnes
Global soybean production is expected to hit 315 million tonnes for production year 2014/15, an 11% increase from last year’s 284 million tonnes, according to the US Department of Agriculture. Global consumption, meanwhile, is expected to increase to 289 million tonnes, up 6.3% from 272 million tonnes the year before. John Baize, President of John C Baize & Association, US, in a presentation on Global Grains and Oilseeds Overview said if this trend continues, “the world needs 80 million tonnes of additional soybeans in a decade”. China is expected to import 74 million tonnes of soybean in the 2014/15 marketing year. Its closest competitor is the European Union with 12.75 million tonnes. Japan and Taiwan are expected to import 2.90 million tonnes and 2.35 million tonnes respectively, while Indonesia and Thailand is forecast to import 2.35 million tonnes and 2.00 million tonnes respectively.
Global corn consumption up 3% to 970m tonnes
In the year 2014/15 global corn production remains at 990 million tonnes, the same as the year before while global consumption of corn increases 2.85% to 972 million tonnes from 945 million tonnes the year before. The US, said John Baize, President of John C Baize & Associates, US, in a presentation on Global Grains and Oilseeds Overview, which is expected to produce 302.1 million tonnes in marketing year 2014/15, up from 293.0 million tonnes the year before, is forecast to export 45.7 million tonnes compared to last year’s 48.7 million tonnes. He said, China, according to USDA estimates will produce 215.5 million tonnes of corn in 2014/15, down 1.37% from last year’s 218.5 million tonnes.
VPF Group to develop new range of pork in 2016
The VPF Group in Thailand has started work to develop a premium range of pork called Natural Product. The product is expected to be available in the market next year. Piyaporn Ratanavanichrojn, Chief Administration Officer, told Asian Agribiz that the pigs will be fed a healthy diet free from chemicals. “We have our own feedmill so we can develop a healthy diet for the pigs. We have started building the farm houses,” she said. At the conference she outlined her company’s efforts at promoting their Green Pork where the pigs are fed quality feed. This range sells for roughly 5% more than regular pork in the market. Ms Piyaporn said customers are happy to pay for premium meat because they can taste the difference and are assured of its quality.
SEA must still battle infrastructure issues after AEC
Trade barriers may begin to ease in Southeast Asia as the region moves towards the Asean Economic Cooperation (AEC) in December 2015 but issues such as infrastructure and logistics remain key challenges, said Pawan Kumar, Associate Director, Food and Agribusiness Research and Advisory, Rabobank, Singapore. “The AEC’s biggest boost is infrastructure development,” he said. Looking at the region as a whole Mr Kumar pointed out that Vietnam, centrally located in the region, has the potential to be developed into a feed distribution hub. He also said China has access crushing capacity which can be utilised to export meal to Southeast Asia.
Indonesia’s new food strategy will empower food producers
To drive growth, production and investment in Indonesia’s food sector the new government has initiated the Food Sovereignty strategy, a mid-term development plan for 2015-2019. According to Dr Bustanul Arifin, Professor of Agriculture Economics at UNILA, the strategy will encourage public-private partnership and allow stakeholders to manage national food issues. Among others, the plan will see maize production grow from 20 million tonnes per year in 2015 to 24.03 million tonnes per year in 2019. Soybean is expected to grow from 1.13 million tonnes per year in 2015 to 2.57 million tonnes per year in 2019. He said Indonesia is dependent on Java for food production and over the next five years “the government will not take the risk by shifting the base of strategic food production to outside Java'.
|Prantalay appeals for its halal status|
[27 March 2015] Prantalay Marketing Public Co Ltd will appeal to the Central Islamic Council of Thailand to reinstate its halal status after the council withdrew the halal certification on 37 items produced by Prantalay and 69 items by Union Frozen, its parent company. The halal certification was revoked after porcine DNA was found in these products. Anurat Khokasai, Prantala’s Chief Marketing Officer, said pig DNA contamination was assumed to come from the container or foreign sources. He emphasised that the company’s products do not contain any pork. One of the products that was found to be contaminated with pig DNA is boiled rice with salmon, he added.
|Japan pork group agrees to halving tariffs for TPP agreement |
[27 March 2015] A producer group in Japan said that it can accept a 50% reduction in import tariffs to help pave the way for the nation to reach an agreement on the Trans-Pacific Partnership (TPP). The Japan Pork Producers Association said it could accept a cut in duties to as low as USD 2/kg from a maximum USD 4 at present, said Hisao Kuramoto, Managing Director of the Tokyo-based organisation. Japan imported 45% of its pork last fiscal year through March 2014, purchasing 744,000 tonnes from countries including TPP members of the US, Canada, Mexico and Chile, according to data from the agriculture ministry. “A tariff reduction exceeding the level would deal a fatal blow to Japanese pork producers, undermining the stability of supply to local consumers,” Mr Kuramoto said.
|NZ meat industry backs WTO complaint|
[27 March 2015] New Zealand's meat industry is backing its government move to take a complaint to the World Trade Organisation (WTO) over Indonesia's restrictions on beef imports. In January this year, beef exports to Indonesia fell by 95% because of new restrictions. The New Zealand government, along with the US, filed a request to the WTO this week for a formal dispute hearing. Tim Ritchie, Chief Executive of New Zealand Meat Industry Association, said the restrictions have had a severe impact on the trade. “We had steady growth in the first 10 years and then the restrictions came on as they sought to be self-sufficient, and then they found there were quite severe domestic consequences and had to relax the imports again to meet demand,” he said.
|Lower US prices will boost Smithfield synergies with China |
[27 March 2015] Lower US pork prices in 2015 will allow Smithfield Farms to export more pork to China and increase synergies with Smithfield’s Chinese owner, according to Smithfield CEO Larry Pope. Export potential was one rationale for WH Group’s acquisition of Smithfield in 2013, when US pork prices were much lower than Chinese prices. However, in 2014 unexpectedly high US pork prices due to PEDv and unexpectedly low Chinese pork prices due to slack demand limited those plans. “Lower pork prices should also allow us to leverage additional synergistic opportunities with WH Group and Shuanghui, our sister company in China," Mr Pope said. Despite the export woes Smithfield reported record net income of USD 556 million in 2014, up 361% from the year before, according to an earnings statement released by Smithfield on March 26.
|2015 Pig Feed Quality Conference - registration closes today|
[26 March 2015] Registrations for the 2015 Pig Feed Quality Conference will close today. As in the past, this year too the conference will present a strong technical program addressing themes that can enhance the performance and profitability of Asian pork producers. It will be held on 9-10 April at the New World Hotel in Ho Chi Minh City, Vietnam. More details and registration form can be found here.
|STP relocates Cirebon plant to Purwakarta|
[26 March 2015] Suri Tani Pemuka (STP), a subsidiary of Japfa Comfeed Indonesia involved in aqua feed production, plans to relocate its Cirebon aqua feed plant to Purwakarta in West Java this year. The company wants to be closer to the market in the region, said Aminto Nugroho, Head of Sales. “With the relocation, our feed distribution costs to farmers in and around Purwakarta may decrease by USD 0.005/kg. This, of course, will benefit the farmers. They will get fresh, quality feed at a cheaper price,” said Mr Aminto. To answer Minister of Fisheries and Marine Affairs’ challenge in providing cheaper fish feed, STP will soon launch a new fish feed that will be economical.
|Thai layer farmers call for dismissal of DLD head |
[26 March 2015] A group of layer farmers in central Thailand submitted a petition to Prime Minister Prayuth Chan-ocha urging the government to remove the Director-General of the Department of Livestock Development (DLD) Ayuth Harintharanon from his position as he has been unable to resolve the current low egg price problem. Chaiyaporn Seethan, head of the farmers, said if Dr Ayuth continues in his role for another one month, layers farmers would have to close their farms due to losses. Egg price in Thailand has been declining over the last eight months due to oversupply. Farm gate price of egg is now THB2.0 per egg while production cost is THB2.90 (1 USD = THB32).
|Middle Eastern countries lift ban on Pakistan poultry imports|
[26 March 2015] Countries in the Middle East have lifted their ban on poultry imports from Pakistan, said Pakistan's Federal Minister for National Food Security and Research, Sikandar Hayat Bosan. According to Pakistan Poultry Association former Chairman Abdul Basit, the ban was imposed after the bird flu outbreak in 2004. Pakistan sees the Middle East as a potential growth market for its halal meat, livestock and poultry products.
|Asia Pacific most dominant market for aqua feed|
[26 March 2015] The global market for aqua feed is expected to reach USD 133.1 billion by 2020, according to a new study by Grand View Research. Increasing use of aquafeed in carp and crustacean farming is expected to boost market demand over the forecast period. In 2013 the global aqua feed demand was 37.60 million tonnes and is expected to reach 77.93 million tonnes by 2020, growing at a CAGR of 11% from 2014 to 2020. Asia Pacific was the most dominant regional market accounting for 65% of global consumption in 2013. The vast aquaculture industry particularly in China is expected to enhance the demand for aqua feed in the region over the next six years.
|Higher fish and seafood prices in Philippines next week |
[26 March 2015] Philippine consumers can expect retailers to raise prices of fish and seafood with the ushering of the Holy Week next week, retailers said. In the predominantly Catholic country, demand for seafood and fish often goes up during this time, when the Catholic faithful tend to fast and abstain from meat.
|Thai corn farmers rapped for open burning |
[25 March 2015] Open burning at corn plantations in Northern Thailand has been linked to the haze problem in that region. Pollution has reached unsafe levels in Chiang Rai, Mae Hong Son and Chiang Mai. Chiang Mai Natural Resource and Environment Office Director Jongkhlai Worapongsathon said those who promote corn growing and companies buying corn must take responsibility and promote alternative approaches to corn husk clearance. Companies under Charoen Pokphand Foods, or CPF, namely Bangkok Produce and Charoen Pokphand Produce, the major corn buyers said they did not support clearing in this manner and would work with the Agricultural Land Reform Office to promote sustainable corn planting and after harvest management.
|Berdikari eyes 33.3% income growth|
[25 March 2015] Indonesia’s state owned company Berdikari that has an integrated beef cattle business expects its income this year to reach USD 69.3 million, a 33.3% increase from the previous year. Librato El Arif, President Director, said the company this year will focus more on processing. “We want to increase our frozen beef production. Last year we produced some 5000 tonnes from only our internal stock. This year we target to produce 6500 tonnes. To achieve this we will also buy cattle from farmers,” Mr Librato said. At the moment its breeding farm raises around 15,000 heads of Bali and Brahman cattle. To increase the breeding stock, it plans to import 2000 heads of Brahman cattle from Australia.
|Growth in agro-industrial segment boosts Pure Foods revenue|
[25 March 2015] Philippines' San Miguel Pure Foods Company Inc’s (SMPFCI) revenue topped USD 2.3 billion in 2014. This was 3% higher than 2013 on expansion of its exclusive franchise outlets including Magnolia Chicken Stations and Monterey Meat Shops. In a disclosure to the Philippine Stock Exchange, SMPFCI attributed its strong showing to higher volumes and better selling prices. Its operating income grew 17% to USD 145.3 million because of higher revenues, better efficiencies, and lower wheat costs. The company’s net income stood at USD 84.9 million while earnings before interest, taxes, depreciation and amortisation was USD 196.6 million.
Sneak peak at Asian Pork Magazine, April 2015
[25 March 2015]
Premium pork products rising
There was a time when pork was available to Southeast Asian consumers only in freshly slaughtered form, but the introduction of further processed pork changed all that. The ASIAN AGRIBIZ team writes that today, premium pork products make up one of the fastest growing segments in the processed pork industry, and from all indications, will keep rising.
KPS to popularise black pig meat in Indonesia
Karya Prospek Satwa (KPS) is currently developing the black pig breed and introducing the meat known as Kurobuta pork to markets in Jakarta and Bali. ARIEF FACHRUDIN learns that the company will involve pig farmers in Bali, Toraja and East Nusa Tenggara to raise the pigs.
McQuarry Farm builds on genetics
In pig production, having good genetics, management and nutrition play key roles to ensure a successful operation. ISA Q TAN reports that McQuarry Farm has taken these to heart as it builds both its breeder and its commercial operations.
Great Dragon Farm picks up on opportunity
China’s villages are slowly emptying as rural residents move to the cities, but this is also giving entrepreneurs the opportunity to build larger pig farming operations. At the same time, the expanding rural road system allows these entrepreneurs to ship their product to urban markets. RICH HERZFELDER writes that the Zhangs of New Victory Village in Inner Mongolia are making the most of the opportunity.
Breeding sows benefit from NSP-degrading enzymes
During the days before and after farrowing, sows show low appetite with reduced feed intake, which can impair the reproductive cycle. KEVIN LIU and PIERRE COZANNET discuss a meta-analysis of recent trials which revealed the addition of NSP-degrading enzymes increased voluntary feed intake, reduced weight loss of 3 kg on average or 20%, and back-fat loss by 24% during lactation.
Protecting and enhancing meat quality with vitamin E
Meat quality deterioration can occur due to a number of factors, including genetics, improper practices in handling, storage and cooking. However, lipid oxidation is probably the most substantive factor impacting commercially-crucial parameters such as colour, flavour and texture. The important role vitamin E can play in reducing meat deterioration and colour changes by combating the negative effects of oxidation is explained by GILBERTO LITTA.
Using feed more efficiently, naturally
Rising societal concerns about antibiotic resistance and residues from beta adrenergic agonists (ß-agonists) in products derived from animal production demands a new era of growth promoting substances. In particular, the ban of antibiotic growth promoters (AGPs) in the EU and other countries enforced the search for alternatives being able to replace the use of AGPs. CHRISTINE HUNGER explains that one potential successor is the group of phytogenic feed additives (PFAs).
Preview of Asian Agribiz 2015 Pig Feed Quality Conference
April 9-10, Ho Chi Minh City
[24 March 2015]
Widely recognised as one of Asia's premier scientific forums for industry professionals to update their knowledge on pig production, the Asian Agribiz 2015 Pig Feed Quality Conference brings the latest research and provides useful information for Asian pig and feed producers. REGISTER TODAY - registrations close Thursday 26 March 2015.
NIR and moisture management in feed
Ivan Ward will consider ways moisture is measured in feed and ingredients, challenges with moisture analysis and opportunities during feed manufacturing to monitoring moisture content. Monitoring the moisture levels of ingredients coming into the site is an important step in managing feed quality and limiting microbial growth. Water activity, not water content, determines the lower limit of available water for microbial growth. While temperature and pH can influence whether an organism will grow in a product and the rate of growth, water activity is the most important factor.
The role of creatine on growth performance and meat quality of pigs
Creatine is not thermostable thereby, it cannot withstand pelleting, however, an innovative form of guanidinoacetic acid (GAA) which a precursor of creatine can be a more suitable dietary source of creatine for pigs (and poultry). Dr Maria Eloisa Carpena will review results, including a 2014 Vietnam trial, which indicate that the dietary supplementation of creatine may contribute to the improvement of growth performance like weight gain and feed efficiency of pigs. Moreover, creatine supplementation may be used to improve meat quality parameters like drip loss, post mortem pH and visual colour.
Practical application of the latest in-line moisture system in determining feed quality
Jon Ratcliff will present the practical applications of the latest technology in-line moisture management based on microwave resonator technology which is both highly accurate and also can process up to 3,000 measurements per second, making it particularly well suited for measurements of fast flowing ingredients. The technology now provides the feed industry with a solution that allows for real time moisture measurement and automated process control of moisture for the benefit of feed quality, stock control and process efficiency.
Effective prevention and control of galactomannan, an immunogenic factor in soybean meal
Dietary mannans/galactomannans occurring widely in feedstuffs, including soybean meal, have structures with the potential to be recognised by immune cells. The energy cost of activating innate immune response is high, and a long-term and constant activation will cause damage to tissues, reducing carcass quality. Dr Humg-Yu Hsiao will discuss effective prevention and control using a beta-mannanase enzyme. After in-feed hydrolysis, the fragmented galactomannans lose their ability to activate immune response.
Improving the nutritional value of raw materials to increase sow’s feed intake
It is recommended to avoid a weight loss more than 5% of sow’s initial bodyweight to reduce adverse effects on subsequent reproduction. In practice, however, it remains a real challenge for nutritionists to increase energy intake, reduce losses of body weight and backfat and ensure maximal milk production. Increasing feed intake: is very difficult as sows undergo drastic physiological changes, limiting their feed intake potential. Dr Kevin Liu will review the use of NSP-degrading enzymes to alleviate the negative impact of sow feed intake on weight losses during lactation.
Role of proper steam conditioning to feed pelleting efficiency and feeding value
Steven Goh will examine how you need to approach steam conditioning for the best compromise between feed pellet quality, machine throughput efficiency, and feeding value of the processed pellet feeds. He will also review the various problems affecting feed pelleting.
More details and registration form can be found here.
|Thailand launches ‘strip test’ to detect beta agonists |
[24 March 2015] The Swine Raisers Association of Thailand has handed over the ‘Strip Test’ equipment to the Department of Livestock Development (DLD). It will be used to detect the use of prohibited lean meat promoters at farms, slaughterhouses, retail shops and meat vendors in fresh markets, President Surachai Sutthitham told Asian Agribiz. This is to reduce and eradicate the use of beta agonists in pig rearing, he said. Lerdchai Chintapitaksakul, Director of DLD’s Veterinary Research and Development Centre (Eastern Region) also told Asian Agribiz that this equipment can provide fast results, will reveal in just five minutes if the pig and pig meat is contaminated. DLD will launch the use of this test kit this year, starting with slaughterhouses under the supervision of DLD, Dr Lerdchai said.
|India begins buffalo meat export to Russia|
[24 March 2015] Two Indian companies, Fair Exports India Pvt. Ltd and Frigerio Conserva Allana Private Limited have started exporting buffalo meat to Russia. Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) said that the first 16 containers arrived in Russia through the checkpoint in St Petersburg. In December last year, four Indian companies were approved to supply buffalo meat to Russia. With buffalo meat exports worth USD 3.22 billion in the April-November 2014 period, it is India’s top agri export item. Among the top export destinations are Vietnam, Malaysia, Egypt, Thailand and Saudi Arabia.
|Century Pacific exploring expansion|
[24 March 2015] Century Pacific Food Inc, the Philippines’ canned food company, is exploring “a wide range of opportunities to grow the business and expand into new markets,” the company said in a disclosure to the Philippine Stock Exchange (PSE). A report by ManilaStandardToday cited Giovanna Vera, Century Pacific’s Investor Relations Officer, as saying that the company is looking to expand through organic growth or via acquisitions, especially in the canned food sector and that the company is “set to sell shares to fund acquisitions.” However, Ms Vera clarified with the PSE that the company’s plans “remain under study and are preliminary at this stage.”
|Brookside gets 333 Hypor GGPs|
[23 March 2015] Brookside Breeding and Genetics Corp, in the Philippines received 333 Hypor GGPs last Saturday night. The animals, shipped via air cargo from France, included 263 heads of Large White (LW) GGP gilts, nine heads of LW GGP boars, 52 heads of Landrace GGP gilts and nine heads of Landrace GGP boars. Dr Sheryll Caguicla, who heads Brookside’s Swine Division, told Asian Agribiz that the animals will stock Brookside’s new and modern nucleus farm in Tarlac Province, Central Luzon. She said the animals will spend about 42 days in quarantine. Meanwhile, Dr Evaristo Macalino, Area Manager Asia for Hypor, said the new GGPs are meant to produce for the internal requirements of Brookside Farms.
|Indonesia biggest shrimp exporter to US|
[23 March 2015] According the Indonesian embassy in Washington DC, USA, Indonesia was the biggest shrimp exporter to the country with a value of USD 93.5 million and a market share of 22.7% in January this year. According Ni Made Ayu Marthini, Trade Attache from the embassy, the product exported was frozen peeled shrimp. “The potential of shrimp is promising. That’s why Indonesia has to increase production, prevent EMS disease, as well as ensure food safety and quality,” she said. India was in second position with an export value of USD 91.4 million and a market share of 22.19%, followed by Ecuador with an export value of 51.1 million and 12.41% of market share. Vietnam, Thailand and Malaysia had 10.7%, 8.3% and 3.49% of market shares respectively, with export values of USD 44.3 million, USD 34.2 million and USD 14.3 million.
|Buffalo meat export industry not affected|
[23 March 2015] Legislative changes by Maharashtra and Haryana state governments in India banning beef has not affected the buffalo meat export industry, according to the All India Meat & Livestock Exporters Association in a statement. “Buffalo is a separate species from bullocks and the ban has no effect on slaughtering buffaloes”, the press release said adding that the buffalo meat industry uses only spent and unproductive livestock. The buffalo meat industry in India generates foreign exchange in excess of USD 5 billion per annum.
|NZ, US press WTO for action against Indonesia|
[23 March 2015] New Zealand and the US have escalated a complaint against Indonesia to the World Trade Organisation on import restrictions that led to the collapse in New Zealand beef exports to Indonesia. The two countries have requested that a WTO dispute settlement panel look at the import barriers, kicking off a process that could lead to sanctions. Indonesia’s import restrictions cover animals and animal products as well as horticultural products. Tim Ritchie, New Zealand Meat Industry Association Chief Executive said that Indonesia subsequently tightened restrictions again and in January this year New Zealand beef exports to Indonesia slumped to only 28 tonnes, from 2,669 tonnes in January last year.
|Goodman Fielder to extend reach in Asia|
[23 March 2015] Wilmar International Ltd and First Pacific Company Ltd have acquired 100% of Australian food processor Goodman Fielder. The new owners want to turn the consumer foods giant into a leading food company in Asia. The first brand to start selling in Asian supermarkets and convenience stores will be New Zealand-made Goodman’s Meadow Fresh UHT milk. The company hopes to leverage on the extensive distribution footprints of Wilmar and First Pacific in China, Indonesia, the Philippines and Southeast Asia to export Goodman Fielder’s brands. Wilmar and First Pacific are also investigating opportunities to bring some of Indofoods’ brands to Australia.
|Pig producers urged to get ready for AEC|
[20 March 2015] The implementation of the Asean Economic Community is sure to challenge Philippine hog raisers, but there will also be opportunities, Eliseo Yu, Chairman of the Pork Producers Federation of the Philippines, said at the opening ceremonies of the 24th National Hog Convention and Exhibits yesterday. He called on fellow hog raisers to be “open and ready to tap all the opportunities that would come our way,” and be ready to compete not only with Asean neighbours but also with markets bigger and beyond Asean. The three-day convention will run until tomorrow, during which the 8th Backyard Hog Congress will also be held.
|Exporters await Q2 cattle permits for Indonesia|
[20 March 2015] Indonesia issued just 100,000 permits for Australian cattle for the first three months of this year, which proved easy to fill for Australia’s live cattle trade and resulted in prices easing because of the supply and demand imbalance. The second quarter starts in a couple of weeks and exporters are hoping Indonesia will issue more than 200,000 permits. The Indonesian Beef Cattle Feedlotters Association has been lobbying the government to issue 250,000 import permits in Q2 and to allocate the permits as soon as possible. According to Bernie Brosnan from Wellard Rural Exports, if supply is tight heading into Ramadan, Indonesia is likely to fill the gap with extra permits for chilled boxed beef.
|Arm & Hammer acquires Vi-COR, expands its team|
[20 March 2015] US Princeton based Arm & Hammer Animal Nutrition has announced the acquisition of Vi-COR, a manufacturer of fermented yeast based feed ingredients and Refined Functional Carbohydrates (RFC) earlier this year. This is followed by several new additions to its leadership, marketing and sales teams, as well as new roles for current team members. All Vi-COR products are now part of the Arm & Hammer family of brands. “In addition to adding to our product portfolio, we added significant resources to our sales, marketing, research & development and technology teams,” Scott Druker, Director of Arm & Hammer Animal Nutrition said.
Asian Agribiz regional dairy update
[20 March 2015]
Amul most trusted F&B brand in India, says report
Indian milk and milk products brand Amul has been ranked top in consumer confidence as reported in Brand Trust Report 2015. The home-grown food brand ranked first in the Food and Beverages category. R S Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which markets Amul said Brand Amul has become an integral part of the lives of the common man and is accepted as a true Indian brand. “Amul has always maintained its vision to provide quality products at affordable prices to consumers," Mr Sodhi added.
West Java to stop calf, heifer exports
In order to increase milk production in the province, the Animal Husbandry Agency in West Java plans to stop the export of female calves and heifers to other provinces in the country. Doddy Firman Nugraha, Head of the agency, said last years’ exports affected the production of milk in the province which stands at around 239,000 tonnes/year. “We will cooperate with milk cooperatives in West Java to prevent export so the number of cows can be increased.” In a month the province produces around 1000 female calves, half of which is produced in Lembang, Bandung regency.
Fonterra acquires 20% of China’s Beingmate Baby and Child Food Company
Fonterra Co-operative Group confirmed it will soon acquire 18.8% of leading Chinese infant formula manufacturer Beingmate Baby and Child Food Company Ltd. “Over the next few weeks, Fonterra and Beingmate will enter into the next phase of our partnership, which includes establishing a joint venture to purchase the Darnum plant in west Gippsland and finalising a distribution agreement making Beingmate Fonterra’s exclusive Anmum distributor in mainland China,” Lukas Paravicini, Fonterra’s CFO, said. The partnership will create a fully integrated global supply chain from farm gate direct to China’s consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia, and Europe. The partnership is intended to increase the volume and value of Fonterra’s ingredients and branded products exported to China.
NZ sheep milk plant sold to HK company
New Zealand’s Blue River Dairy plant could see investments of up to USD 40 million following its sale to Blueriver (HK) Nutrition Co Ltd. Blue River, founded by Southland businessman Keith Neylon in 2003, converted three Southland sheep farms to dairying, generating about 1000 tonnes of sheep milk powder annually from 20,000 ewes. There are plans to expand to 100,000 ewes over the next few years, eventually producing more than 5000 tonnes of milk powder. Asia is the company’s main market. “We are now able to fully concentrate on milk production and let Blueriver Nutrition HK focus on the finished product,” Mr Neylon said.
Amul plans to market camel milk
Amul of India is planning to process and market camel milk. If the proposal is approved by the Food Safety and Standards Association of India (FSSAI), processing will begin at Amul’s Sarhad Dairy located in Gujarat state. Valamaji Humbal, Chairman of the Sarhad Dairy said that they are ready. “If the FSSAI approves it, one more production line will be added to the plant for processing camel milk,” he said. A similar initiative taken by Rajasthan Cooperative Dairy Federation (RCDF) was grounded in 2010 due to poor response from consumers. Considered to have several health benefits such as high insulin and vitamin content, camel milk is widely consumed in West Asia.
|Thai Egg Board agrees to price lifting measures|
[19 March 2015] Thailand’s Egg Board agreed yesterday that release of surplus eggs from the system and early removal of spent hens are two urgent measures to tackle the current low egg price problem. Deputy Secretary General of the Ministry of Agriculture and Cooperatives Wimol Jantrarotai said disposal of the egg surplus will be done via direct sale to consumers and exports and farmers will receive compensation of THB0.50 for each egg released. Farmers will receive compensation of THB 40 for early removal of each spent hen (1 USD = THB32.7). These measures are expected to reduce the oversupply by 1 million eggs per day. The Egg Board has to seek for approval from the national committee on farmer aid and policy regarding funding of the project prior to implementation.
|Indonesia’s corn imports expected to drop to 2.5mt|
[19 March 2015] Indonesia’s corn imports are expected to drop to around 2.5 million tonnes this year, from 3.5 million tonnes in 2014, as higher domestic output relieves overseas purchases, traders said. “The domestic market expects to see imports start falling from April,” a trader said. He added that Indonesia had already imported 600,000 tonnes over January and February, and arrivals by the end of March would hit 960,000 tonnes, or close to 1 million tonnes. The country is likely to harvest 9.7 million tonnes of corn in 2015, up from 9 million tonnes a year ago.
|Haryana government bans cow slaughter, beef sale|
[19 March 2015] Haryana government in India has passed a bill banning cow slaughter and sale of beef in the state. Anyone found guilty of cow slaughter or export of cows for the purpose of slaughter or sale of beef will face imprisonment of up to 10 years along with fines of up to USD 1600. The government will establish laboratories for differentiation of beef from meat of other animals. The new law will promote conservation and development of indigenous breeds of cows and establish institutions to keep, maintain and take care of the infirm, injured, stray and uneconomic cows.
|Taiwan to adopt closed farming to curb AI |
[19 March 2015] Taiwan’s Council of Agriculture has announced that it will be mandatory from September for poultry farms in Taiwan to raise birds in closed spaces in an effort to curb the spread of the Avian Influenza virus. Farms affected by the bird flu outbreak totals 860 across the country. The measure is being implemented to prevent poultry from coming into contact with migratory birds. The council will offer a six months grace period to farmers for them to comply; but a fine will be imposed after that. Soft loans at an interest rate of 1.5% will be given to farmers to support the construction of the enclosures.
|More countries to ban US poultry and eggs|
[19 March 2015] The US Poultry and Egg Export Council said it expects 30 to 40 countries to impose new trade restrictions on US poultry and eggs in the USD 5.7 billion export market. These include Mexico, the top US chicken importer, which already is blocking imports from Minnesota, Missouri and California due to bird flu. Previous cases of avian flu in other states triggered China and South Korea to impose bans, still in effect. Last year, they accounted for about USD 428.5 million in export sales of poultry meat and products, according to US Department of Agriculture data. Other countries have banned exports from only states or counties. Last week the government announced a case of bird flu in Arkansas, home of Tyson Foods Inc.
Singapore investor buys cattle station
[19 March 2015] Singaporean Bruce Cheung has bought Pilbara Cattle station in remote Western Australia for USD 10.31 million. The cattle station covers 198,000ha and includes 60km of coast between Port Hedland and Broome. It is stocked with about 6000 head of Santa Gertudis cattle, including 4776 breeders. Garland International’s John Garland, who handled the sale, said Mr Cheung wants to elevate the cattle stock to restaurant quality by infusing different breeds into the Santa Gertrudis cattle. Mr Garland said Western Australia was poised to capture the growing trade — noting free-trade agreements and negotiations with China, South Korea and Japan.
|NIR workshop limited to 20 participants|
[18 March 2015] A one-day workshop on Near Infrared Reflectance Spectroscopy (NIR) will be held in Ho Chi Minh City on Wednesday 8 April the day prior to the 2015 Pig Feed Quality Conference. This is to help pig feed producers utilise data to make decisions that can save money, and improve feed quality and animal performance. Presented by NIR expert, Ivan Ward (Agri-Torque Pty Ltd) it will be held in a modern computer lab and cover the challenges and opportunities of NIR. The workshop is limited to 20 participants. The cost of USD360 includes refreshments, lunch and workshop notes. Register your interest with Omthong Tjoa and Sutasinee Lake at email@example.com. Further information on Asian Agribiz's 2015 Pig Feed Quality Conference is available here.
|Broiler DOC surplus this year worse than last year|
[18 March 2015] Between February and March 16, the price of live birds in Indonesia has decreased to USD 1.02/kg while the production cost is around USD 1.32. Sigit Prabowo, Chairman of the National Poultry Farmers Association, said this indicates that the market is still experiencing an oversupply. He said broiler DOC production last week reached 64 million while the actual demand is only around 45-47 million. “The broiler DOC surplus this year is worse than last year. If the government is not serious about overcoming this problem, more independent farmers will have to exit the industry. In the beginning of last year there were around 120,000 independent farmers, but the number has dropped to 40,000,” he revealed.
|San Miguel Pure Foods boosts expansion overseas|
[18 March 2015] As it seeks expansion overseas, San Miguel Pure Foods Co Inc (SMPFCI), the Philippines’ leading food company, is looking to acquire food businesses including meat processing firms in neighbouring Southeast Asian countries. SMPFCI President Francisco Alejo III said the company is particularly looking at Indonesia and Vietnam, where it already has existing businesses. The company, which raised USD 338 million during its share sale last week, is eyeing about USD 180-225 million for its capital expenditure this year, part of which will be used for overseas acquisitions. Mr Alejo said they are hoping to finalise a deal in Vietnam within the year, although it may take a longer time for an Indonesian acquisition to materialise.
|Nebraska looks to Asia to sell beef|
[18 March 2015] Last year the US state of Nebraska exported more than USD 1 billion in beef. A recent trip to Southeast Asia by Greg Ibach, State Department of Agriculture Director, signals that the state is eyeing the region to grow its market. While Malaysia poses unique challenges such as strict guidelines on slaughtering and processing, Mr Ibach said the Philippines showed more opportunities. The market for Nebraska beef in the Philippines has exploded in the last five years, up from USD 1 million a year, to around USD 8 million. Mr Ibach said Japan, Hong Kong and South Korea have had significant beef import increases during the past six years and are countries where the state has conducted focused promotion activities. Besides muscle cuts, he noted export growth over the past six years for livers and tongues. “The sales increases for these products are important since there is not much value for them in the US,” he said.
|Price disagreement over buffalo meat exports to Russia|
[18 March 2015] Indian buffalo meat exports to Russia seem to be in a limbo as both parties cannot agree on prices, Russia’s Interfax news agency reported. Sergey Dankvert, Chief of Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) was quoted as saying that there seems to be some internal disagreement over prices. “The prices quoted by India were higher than that of Brazil, although earlier they claimed that the price was the most attractive,” he had said. In December 2014, Rosselhoznadzor approved four Indian companies to supply buffalo meat to Russia. However, no deliveries to Russia have been made yet.
|AVA imposes import curbs on US poultry products|
[18 March 2015] Singapore’s Agri-Food and Veterinary Authority of Singapore (AVA) has suspended the import of ornamental birds, eggs, poultry and poultry products from Arkansas, California, Idaho, Minnesota, Missouri, Oregon and Washington due to bird flu outbreaks in these states. The AVA said only processed poultry products such as pasteurised eggs and canned chicken products, which have been heat treated to eliminate the bird flu virus, are excluded from the suspension. Before the suspension, imports from the US accounted for about 13% of Singapore’s total chicken supply.
|Thai layer farmers call for fair egg prices|
[17 March 2015] Thai layer farmers have urged the government to help with egg pricing as there is a wide gap between farm gate price and retail price. Mongkol Pipatsattayanuwong, President of the Association of Hen-Egg Farmers, Traders and Exporters, said this is putting pressure on farmers who are already suffering losses from low price due to declining consumption partly prompted by relatively higher retail price. “While farm gate price is between THB 1.8- 1.9 per egg, much lower than the production cost of THB 2.50, the retail price is still as high as THB 3/egg.” (1 USD=THB 32.6). Mr Monkol urged the government to set a fair retail price to improve consumption. Otherwise, he said, many layer farmers might not be able to maintain their business.
|Ban on beef expected to boost chicken sales in India|
[17 March 2015] With Maharashtra state in India banning beef and few other states set to toe the same line, chicken sales in some parts of India is set to pick up. Prasanna Pedgaonkar, Deputy General Manager of Venkateshwara Hatcheries said that since chicken is a direct alternative to beef, chicken consumption is set to increase in Maharashtra. It is expected that when other state governments in Haryana and Jharkhand ban beef in their respective states, it is set to result in an increase in chicken consumption at the national level.
|EQT mulls selling Classic Fine Foods|
[17 March 2015] European private-equity firm EQT is considering divesting Classic Fine Foods, a Singapore-based importer and distributor of luxury French cheeses and high-end meats. The deal valued at USD 300 million, joins a list of private-equity firms looking to exit investments in Asia in recent months. The Wall Street Journal reported that EQT acquired Classic Fine Foods in 2011 for an undisclosed sum. The private-equity firm has been approached by several parties interested in the company, people with knowledge of the process said. The company has yet to launch a formal sale process.
|Bird flu alert in Uttar Pradesh state|
[17 March 2015] India's Uttar Pradesh government has sounded a bird flu alert following the confirmation of an avian influenza outbreak in one of its districts. As many as 350 birds died recently in Chandgarh and Sare Ka Purwa in Amethi district. Laboratory tests confirmed the deaths were due to H5N1. Uttar Pradesh Chief Secretary Alok Ranjan has urged precautionary measures. The state is also battling swine flu.
Aquaculture outlook seminar in Jakarta, Indonesia
Reports by ARIEF FACHRUDIN
[17 March 2015]
Producing more but sustainably
Indonesia’s Minister of Fisheries and Marine Affairs, Susi Pudjiastuti, in her welcoming speech said that Indonesia has to be a dominant player in the world fisheries industry. “We plan to decrease capture fish by 10% each year, and increase aquaculture by the same figure each year,” Mrs Susi revealed, adding that more efforts are extended to fighting illegal fishing that is limiting fish supply to the local processing industry. Mrs Susi reminded stakeholders to consider sustainability. “I think we should re-evaluate the concept of monoculture or intensification. We have to learn from the case of shrimp intensification and early mortality syndrome (EMS) disease in Thailand and other countries. Polyculture is a solution for sustainable production.”
Fish export value of USD5.86b is achievable
Indonesia’s Ministry of Fisheries and Marine Affairs targets to export fish, including shrimp, worth USD 5.86 billion this year. The export value last year reached USD 4.63 billion with the US, EU, Canada and China being the main destinations. According to Thomas Darmawan, Chairman of the Fish Processors and Exporters Association (AP5I), the target is achievable since China, Thailand and Vietnam currently need shrimp for its processing industries, while their local production is still challenged by EMS. “However, the government has to actively help shrimp farmers to reactivate idle farms, especially in Lampung. This should be supported with good quality fry, adequate power supply and infrastructure,” said Mr Thomas.
Indonesia to benefit from shrimp supply shortage
Indonesia’s Shrimp Club (SCI) predicts that world shrimp supply this year will decrease by 20% as producing countries in Asia are still battling EMS. “This will cause the world shrimp price to escalate,” said Iwan Sutanto, SCI Chairman. Mr Iwan explained that Indonesia produced about 250,000 tonnes of shrimp last year (from semi intensive, intensive and integration farms). “This year we expect production to reach 315,000 tonnes,” said Mr Iwan. Shrimp fry production last year, meanwhile, reached 2 billion fries/month, and this year is expected to increase by 2.3 billion. “To leverage on this opportunity, farmers have to strengthen biosecurity, and use good quality fry and feed.”
Processed fish products gaining ground
Indonesia’s processed fish product export volume reached 5.2 million tonnes last year. This year the government targets to increase the volume by 5.6 million tonnes. AP5I Chairman Thomas Darmawan said demand for processed fish products for export and local markets is increasing. Sushi, tempura, breaded shrimp, nugget and surimi are in great demand. “Their success is due to innovative products and packaging,” said Mr Thomas. “The number of players in this segment is growing and they are investing in new cold storage facilities and product innovation."
Aqua feed consumption to reach 1.7 mt
Total aqua feed consumption in Indonesia last year reached 1.48 million tonnes, according to the Feed Millers Association (GPMT). Denny Indrajaya, GPMT Chairman for Aquaculture Division, said fish and shrimp feed consumption was 1.1 million and 390,000 tonnes respectively. Compared with 2013, fish feed consumption in 2014 was stagnant, while shrimp feed consumption increased by 30% due to an increase in demand for shrimp from international market. “This year we expect consumption of fish and shrimp feeds to reach 1.25 million and 468,000 tonnes respectively,” revealed Mr Denny. He added that the industry this year will still face currency depreciation and raw material price increases especially for fishmeal. To keep the price of fish and shrimp feeds reasonable, industry players should substitute fishmeal with meat bone meal, poultry meat meal, soybean meal and local fishmeal.
|The role of feed additives in pig production|
[16 March 2015] Maximising the value of feed ingredients is crucial to producing quality pig feeds and save on cost. One way to maximise the value of these ingredients, as well as improve the health, welfare and performance of pigs and positively impact product quality and the environment, is to use feed additives. At the Pig Feed Quality Conference (PigFQC) organised by Asian Agribiz, a session on feed additives will tackle topics including the use of creatine in pig production; porcine bone health and the incidence of osteochondrosis; the future of copper as a growth promoter in pigs; reproductive function of breeding gilts exposed to zearalenone and a mycotoxin deactivator; and feeding of egg immunoglobulins to supporting the immune system of piglets during the first weeks of life. The PigFQC is scheduled for April 9-10, at the New World Saigon Hotel in Ho Chi Minh City, Vietnam. More information and registration details are available here.
|Indonesia’s beef self-sufficiency push will drive up price|
[16 March 2015] Plans by Indonesia’s new President to make the nation self-sufficient in beef are showing signs of backfiring, with a major industry group warning that prices could soar by 50% in the next few months. “The government is obsessed about self-sufficiency,” said Thomas Sembiring, Executive Director of the Indonesian Meat Importers Association (Aspidi). Beef imports is around 12,000 tonnes so far in Q1, versus 170,000 tonnes for the whole of 2014. The live cattle quota for the same period is just 100,000 head compared with a total of 720,000 last year. “The live trade is not a switch on or off industry,” said Alison Penfold, Chief Executive at the Australian Livestock Exporters Council. “The uncertainty coupled with an increasing shortfall in cattle in Indonesia to meet domestic demand will no doubt impact consumers, particularly during Ramadan.”
|Haryana and Jharkhand set to ban sale of beef|
[16 March 2015] Close on the heels of Maharashtra in India banning beef recently, Haryana and Jharkhand states are set to ban the sale of beef. Animal Husbandry Minister of Haryana, O P Dhankar announced recently in Chandigarh that the state government will impose a complete ban on the sale of beef. “The law will be more stringent with a 10-year imprisonment for those found guilty of cow slaughter,” he said. In a similar development, Jharkhand Chief Minister Raghubar Das hinted that his government plans to follow Maharashtra in banning the sale of beef.
|McDonald’s to raise the bar with antimicrobial ban|
[16 March 2015] In the Global Vision for Antimicrobial Stewardship in Food Animals document, McDonald’s said it will ban antimicrobial drugs defined as ‘critically important’ to human medicine in its supply chain. The policy will be rolled out to its US suppliers over the next two years. Among the drugs are lipopeptides, oxazolidinones, glycopeptides, carbapenems, third or newer generation tetracyclines and fifth or newer generation cephalosporins. For classes of antimicrobial drugs identified as critically important to human medicine and approved for food animal use, its use in animal health care is “contingent on local regulations and veterinary authorisation” said the document. McDonald's however, encouraged producers to rely on husbandry practices, instead of antimicrobials to prevent disease in food animals.
|Indonesia to set up 58 fish cold storage units|
[16 March 2015] The Ministry of Fisheries and Marine Affairs plans to set up 58 fish cold storage units located close to fishing centres this year. Saut P Hutagalung, Director General of Fish Processing and Marketing, said the units will be set up in 34 regencies including North Maluku. “The cold storage units will be followed with the setting up of 38 ice plants and the procurement of 10 reefer trucks. This will cost around USD 18 million,” he said. Between 2009 and 2014, the ministry set up 70 cold storage units with different capacities starting from 100 to 1500 tonnes in different regions. Yugi Prayanto, Vice Chairman of the Indonesian Industry and Trade Chamber for Fisheries and Aquaculture, commented that the ministry’s initiative will attract local and foreign investments. “To complete the initiative, the government should also ensure the supply of power.”
|Smithfield asks judge to bar reference to Chinese ownership|
[16 March 2015] Smithfield Farms, which is fighting lawsuits over hog waste in the US, has asked a federal judge to forbid the plaintiffs to mention that Smithfield is owned by a Chinese company, WH Group. The suits, filed on behalf of several hundred residents of North Carolina, allege that the company’s hog waste lagoons are affecting health and property values. The plaintiffs also said Smithfield is owned by a Chinese company and controlled by a high-ranking Communist Party member, and is planning to expand operations to ship more pork to China. In their filing, Smithfield’s lawyers said the farms have been in production for many years and the fact that the company is now Chinese-owned is irrelevant to the nuisance dispute. Smithfield’s lawyers say the plaintiffs are only emphasising the China angle in order to “inflame nationalist prejudices” among potential jurors in the case. The Smithfield request was filed in January, and the Centre for Investigative Reporting posted a story on its website last week.
VIV Asia 2015, Bangkok Thailand, March 11-13
Onsite reports by the ASIAN AGRIBIZ team
[13 March 2015]
MeatTech 2015 shows participants the potential in automation
Food processing plants today are more than stainless steel machines and conveyor belts. Participants at the two-hour MeatTech Asia 2015, organised by Asian Agribiz at VIV Asia in Bangkok, were shown the latest in processing and packaging technology to increase yield, promote food safety and reduce labour. Presenter Berry Klerks from MPS Red Meat Slaughtering introduced robotic arms to accomplish labour intensive, precision and repetitive tasks such as cutting open pig carcasses. Marco Kreienborg from Poly-clip System said the company wants to work with producers to find solutions in the packaging line. Silva Kumar from Provisur Technologies Inc said food producers in the region are adopting automated processes because of the shrinking pool of human and natural resources. Hugo Dissing from Linco Food Systems showed participants how carbon dioxide stunning saves time, reduces bruising, damage and miss-cuts. Jeroen Bohm from Meyn Food Processing said automation at plants are modular systems allowing processors to basic and simple designs that can develop with the growth of a company.
Danish Farm Concept brings pig production success to Asian producers
Danish producers are known globally for good pig production, averaging 30 pigs per sow per year. This success is based on a production model that includes modern farm design, efficient pig farm technology, Danish genetics, nutrition program, sustainable solution and training and management. A group of Danish companies working together launched at VIV Asia 2015 the Danish Farm Concept, a company and brand name that represents the entire Danish pig production model. These companies include Hamlet Protein, Danbred International, Vissing Agro, Danish Farm Design and Dalum Landbrugsskole. Working together with Skov A/S, a leading producer of climate control, these companies now market the Danish Farm Concept throughout the world.
FPT-installed warehousing system to be ready in June
Food Process Technology Co Ltd’s (FPT) second installation of a fully automatic warehouse logistics system in Thailand will be ready in June this year. The system, built similar to European standards for a large sausage maker in the country, will feature radio-frequency identification, or RFID, that stores data in microchips to identify and track fresh and frozen meat from the time it is received at the processing plant right up to when the products are sent out to retailers, Axel Arras, Managing Director, told Asian Agribiz. Data is keyed into the RFID tags on the blue boxes holding the raw materials. “The system will be the most advanced warehouse system for food processing in the region. It is fast and promotes food safety,” he said adding that FPT has also installed a similar system for a food processor in China.
Biomin unveils fifth generation of Mycofix
International feed additives company Biomin unveiled Mycofix 5.0, a fully reformulated, all-in-one mycotoxin risk management solution for livestock. The fifth evolution of Mycofix product line uses three modes of action namely biotransformation, adsorption and bioprotection to deliver absolute protection against mycotoxins. In addition, the company yesterday staged the second edition of its ‘Mycotoxins in Focus: Trends, Facts, and Effects’ conference. Dr Shu Guan, Technical Manager for Mycotoxin Management, said serious strategies are needed to counteract multiple mycotoxins that are commonly found in individual material. “Mycotoxin profile varies among regions and its contamination level fluctuates and it is hard to predict,” he said.
Petersime introduces two new incubators
Belgium-based Petersime introduced two new incubators to meet the demand for high density and fertility restoration. BioStreamer HD is a single-stage incubator that was designed to reduce the investment cost of a hatchery project and is engineered for higher capacity. Rudy Verhelst, Marketing Manager, explained that the honeycomb structured setter tray of the incubator allows setting 12% more eggs on the same surface while keeping the airflow between the eggs optimal. BioStreamer Re-Store, meanwhile, is a dedicated incubator for fertility restoration of stored eggs. This incubator warms up the eggs for short periods of time during storage, restoring a significant part of the hatch decrease.
Kohshin launches slat cleaner
Japan-based livestock equipment supplier Kohshin Engineering launched a semi-automatic slat cleaner for poultry cages. Kotone Asano from the Overseas Section of the Sales Division, said the slat cleaner is compact and portable and is designed for time and cost savings. Its weight is only 180kg and has a conveyor with a speed range of 30-100 mm/sec. Ms Asano added that the company took the opportunity at the show to promote its composters and robot washer that are gaining ground in Asia.
Kemin builds ruminant portfolio
Kemin Industries in Asia is building a dedicated team to service the ruminant sector in Asia and with a view to be a partner in its progress. Its new feed technology unit focuses on quality, efficiency and safety of feed with a target to improve milk production and the quality and yield of meat in ruminants.
Orvia to market Pekin duck variety in Asia
France based Orvia specialising in genetic selection of ducks has planned to aggressively market its Pekin duck variety in Asia. Vincent Baumier, Export Sales Director of Orvia told Asian Agribiz that the Pekin duck variety is more suitable for Asian countries because it is economic and efficient. “Our focus is to develop and sell GGP and GP of this variety in Asia particularly in South East Asian countries,” he said. According to him, they are already a major player in Europe with around 75-80% market share and is hopeful of extending their reach in Asia.
Pericoli promotes complete ventilation system
Pericoli showcased its new products at VIV Asia. “Our presence in the Asia Pacific region is important,” Director Enrico Viscardi told Asian Agribiz. New fans including ACF26 that increases air flow by 10% and consume 5% less energy and the premium EWD 37 exhaust fan for multiple applications with innovative shutter opening mechanism were among the highlights. “We distribute not only the components but complete systems that help livestock operators improve farming efficiency,” Mr Viscardi said.
Pancosma introduces TakTik
Pancosma has been promoting TakTik, an innovative synergistic solution for young animals. It has multiple actions on gut health and efficiency and promotes glucose absorption, increases gut defences and acts on the animal’s epithelial structure by stimulating intestinal development. Together this results in better feed intake, improved gut defence, good weight gain and lower FCR.
Symaga to expand into Indonesia and Thailand
Symaga which manufactures steel silos is looking to expand its market to Indonesia and Thailand. Raul Perez, Area Sales Manager of the silos division told Asian Agribiz that there is huge potential for feed storage in Indonesia and rice storage in Thailand. “We are looking to tap this and expand considerably in these markets in the next five years,” he said. Silos manufactured by Symaga are widely used in the poultry and swine industry. According to him, Symaga offers customised silos and guarantees that it can handle any project.
VIV Asia 2015, Bangkok Thailand, March 11-13
Onsite reports by the ASIAN AGRIBIZ team
[12 March 2015]
MeatTech Asia 2015 - Automation Rules
At MeatTech Asia 2015 this morning, organised by Asian Agribiz, a group of processing equipment manufacturers will discuss how their systems and products are helping slaughterhouse operators and meat processors improve quality, efficiency, to speed up processing, manage food safety and reduce costs in terms of manpower, floor space and energy.
Presentations will include:
• 'Advances in automation to further increase profitability in poultry deboning' by Jeroen Bohm, Product Manager Deboning Solutions, Meyn Food Processing BV, Netherlands
• 'Automating the Food Industry since 1919' by Hugo Dissing, International Sales Director, Linco Food Systems A/S (Member of the Baader Group), Denmark
• 'Adapting automated processes are a must' by Silva Kumar, Engineered Systems and Service Manager, Provisur Technologies Inc, Bangkok, Thailand
• ‘RMS Slaughtering automation’ by Berry Klerks, Area Sales Manager, MPS Red Meat Slaughtering BV, Netherlands
• 'State of the art and most efficient handling, packaging, and clipping of fresh poultry products' by Mr Marco Kreienborg, Product Manager - Packaging, Clipping, and Automation Poultry Division, Poly-clip System GmbH & Co KG, Germany
• 'Latest and most advanced fully automatic fresh meat/poultry warehouse systems, further meat preparation, and sausage production' by Mr Axel Arras, Managing Director, FPT Food Process Technology Co Ltd, Thailand
• 'An introduction to Active & Intelligent Packaging Solutions for Meat, Fish & Poultry' by Andrew Manly, Communication Director AIPIA, Thailand
Join us at Room 222 from 11am – 1pm. Admission is free.
XVET introduces fatty acid product
German-based XVET introduced its short and medium chain fatty acids product NovoVital at the show. The product is effective against certain enteric bacteria, some stages of protozoa, fungi and some fat-enveloped viruses that are common in animal production. The product also supports intestinal integrity and increases feed efficiency. Katerina Todoroska from the sales and marketing Department said that the product is stable and non-corrosive. It is available in liquid and dry form for use in poultry, ruminants and swine. In addition, the company also introduced its two botanical products namely GarVit Pro and OregoPlus as alternatives to antibiotics.
Norel promotes five key product lines
Spain-based feed additives company Norel promoted its five key product lines namely probiotic, sodium butyrate, flavour, rumen enhancer and organic minerals. Juan José Mallo, Technical and Commercial Director, said that the five product lines are classified into non-medicated feed additives. The company focuses more on these kinds of products since it believes that sooner or later the use of antibiotics in Asia will be prohibited. “And our company is concerned about food safety and traceability,” Mr Mallo added. The five product lines are sold under the brands of Ecobiol, Gustor, Fluidarom, Rumalato and Biomet and Glymet, respectively.
Darling promotes specialty products
Darling Ingredients that was established by the largest American and European rendering companies took the opportunity at the show to introduce its company and products. Geert van der Velden, Sales Manager of Sonac, part of Darling Ingredients group, said: “At this show we are promoting our specialty products which consist of spray-dried products, hydrolised products, and products with special benefits like to increase palatability and gut health and to reduce antibiotics use. In addition, we are also promoting an alternative source of cholesterol and plasma proteins.” According to Mr van der Velden, the Asian poultry, pig and aqua feed markets are growing significantly, “so it’s important to intensively promote our specialty products besides supplying commodities like MBM and fats to the markets.”
Enzymes to reduce dependence on feed antibiotics
Consumers in Asia are concerned about the use of antibiotics in food animals. Countries such as South Korea have banned the substance. “The use of antibiotics on farms will not go away even after AGPs are removed however feed additives such as enzymes based on their role in improving gut environment can be used to reduce dependence on feed antibiotics,” said Dr Ajay Awati, Global Product Manager for Enzymes at the animal nutrition division of DuPont Industrial Biosciences. Dr Awati in a presentation said enzymes such as carbohydrases can help reduce microflora overgrowth and activity in the small intestines and help better microbial fermentation in the large intestines. Enzyme combinations such as xylanase, amylase and protease, when used in combination with other additives such as essential oils and probiotics can produce a synergistic performance response and improve gut microbial environment. These effects of enzyme applications will play a vital role in transition towards reduced AGP use in animal production.
Sanovo innovates for small players
Small layer farms in Asia are growing in capacity. The younger generation wants to take the family business one step further by grading eggs. Sanovo Technology Group has the right solution. At VIV Asia 2015 the company is promoting its 4-grade Staalkat Farmgrader 80, a compact machine that is easy to clean, and not noisy. “Because it is compact it can even be placed in the hen house,” said Chew Yee Fat, Group Technical Support Manager. “It is ideal for farms that supply directly to food chains where only a certain weight is required. Weight classes are programmable with a touch screen,” he said. The machine can process 80 trays or up to 28,000 eggs per hour. Mr Chew said the new concept was originally used in the hatchery. Sanovo also showcased a newly-designed egg breaker for the Asian market, capable of processing 21,800 eggs per hour.
Impex Barneveld automates flushing drinking lines
Clean water is essential for healthy poultry but flushing the drinking line is tedious work and farmers do not flush them as often as they should. Impex Barneveld’s new flushing control, called the I-Control, makes the task an easy one. A computer setting can determine how many times the drinking line should be flushed, the amount of water used, and at what temperature. “The I-Control has standard programs to flush broiler and layer houses,” said Olaf van Steenis, Area Manager. “An additional feature is the option to flush and fill all the drinking lines at once. This is ideal for adding vitamins, medicines and vaccinations to the drinking water as the first and the last nipple of the drinking line will maintain the same amount of concentration,” he said.
Anitox trains eyes on Asia with new appointments
US-based Anitox is focused on microbes control in animal feed and promoting feedmilling efficiency. Besides these areas the company also looks into raising pet food standards and has a foot in the biofuel industry. “In a world where drug resistance is a major concern, our role is to reduce dependency on antibiotics,” said Richard Chong, Commercial Director for Asia Pacific. He said the company is expanding its team in Asia. By mid-2015 its new Indonesian office will be opened. The company recently introduced Rika Dachni Riantika as its Indonesian Country Manager, Ratchai Leethochawalit as its Regional Technical Sales Manager for Indochina, Daru Mukarta as Account Service and Installations Manager, and Gino Lorenzoni as Technical Services Director. According to Dr Chong, Asia has been placed as a key area of focus for the group after its restructuring in January 2014.
Roxell launches CoMeo
Roxell launched CoMeo, a new feeder for broilers at VIV Asia 2015. CoMeo is a new solution that gives birds’ easier access to feed from day 1 to harvest. Ben Dehaeck, Roxell’s Product Manager-Broilers, explained to Asian Agribiz that among CoMeo’s advantages is its shape that prevents birds from staying inside the pan, giving all birds full access to the feed at all times and maximising feed intake. Because the birds do not stay in the pan, do not scratch and spill the feed so feed wastage is minimised. The CoMeo, which can be used on both slatted floors or in broiler cages, is also easy to clean and maintain.
Delacon introduces Biostrong Forte in Asia
Delacon introduced Biostrong Forte to its Asian customers at VIV Asia 2015 in Bangkok yesterday. Delacon CEO Markus Dedl told Asian Agribiz that Biostrong Forte combines the beneficial effects of its phytogenic product with short and medium chain fatty acids. Biostrong Forte not only increase nutrient digestibility, improves feed efficiency and reduces noxious gas emission, but also controls and reduces common critical intestinal health challenge periods in the bird’s life. This leads to improved intestinal health, lower mortality and overall better performance of the birds.
Grimaud Freres genetic trial shows promising results
Grimaud Freres Selection promoted its broiler STAR 53 duck at VIV Asia and revealed a new scientific test that evaluates the best genetic expression of the breed. The test, in collaboration with Thailand’s Kasetsart University and one of Grimaud's client's Duck King Co, with a different kind of feed formulated with DSM nutritional products, was been completed at the beginning of 2015 and offered positive results, Yann Le Pottier told Asian Agribiz. The test shows positive rearing performance, with live weight at 3.54 kg at 45 days of age, average body weight gain of 77.53g/day and FCR improvement of up to 1.82. “This better performance makes duck a more competitive meat,” Mr Le Pottier said.
Nuscience Group to focus on marketing Aromabiotic products
Belgium based Nuscience Group will focus on marketing its Aromabiotic range of products in Asia. Katrien Deschepper, Chief Operating Officer of Nuscience Group told Asian Agribiz that the Aromabiotic range of products is available separately for poultry and pigs. “This is a carefully balanced mixture of medium chain fatty acids (MCFA) with unique antimicrobial, physiological and immunological properties,” she said. According to her, industry players in Asia have started showing interest in reducing antibiotics.
Innovad to expand its research team
Animal feed additives manufacturer Innovad is expanding its research team at its headquarters in Belgium. “Our Escent and Escent L products are extremely popular in Asia and we are planning to bring in more technologies to our existing market,” Ben Letor, Director, Innovad told Asian Agribiz. Adding that the Escent range of products supports the liver and kidneys of the animals, he said that they are among only a few feed additives manufacturer to provide feed additives in liquid as well as dry form. “Our market penetration in Malaysia is good and we plan to make inroads into other markets in Asia,” Mr Ben Letor added.
Importance of feed enzymes, selenium and methionine
The technical seminar ‘Shaping nutrition for tomorrow’ organised by Adisseo discussed the importance of feed enzymes, selenium and methionine. Dr Pierre-Andre Geraert, Director, Innovation Marketing for Adisseo explained about the function of feed enzymes. “Feed enzymes reduce gut inflammation in poultry and has a significant effect on gut function,” he said. According to him, quality evaluation of raw materials will help to better value enzymes in feed formulation. Dr Kevin Liu, Vice President of Adisseo Acia Pacific did a presentation on new research about methionine and its impact.
VIV Asia 2015, Bangkok Thailand, March 11-13
Onsite reports by the ASIAN AGRIBIZ team
[11 March 2015]
VIV Asia 2015 opens in Bangkok
VIV Asia 2015 opens in Bangkok, Thailand today and will end on March 13. The show at BITEC features an additional temporary structure next to the permanent halls at the showground to accommodate more exhibitors. The show traditionally known for promoting the production and processing of poultry, pork, meat and eggs also has additional components like Aquatic Asia and DairyTech conferences and pavilion areas arranged for the aquaculture and milk businesses. The show will open each day from 10am to 6pm.
Asian Agribiz hosts MeatTech Asia 2015
The growing demand for animal protein has registered affirmatively for equipment suppliers. Their systems are helping slaughterhouse operators and meat processors improve efficiency, to speed up processing, manage food safety and reduce costs in terms of manpower, floor space and energy. Asian Agribiz and its partners in the meat processing industry will offer information and insights into how modern processors can comply with and improve food safety standards with the use of modern processing systems at MeatTech Asia 2015 on March 12 from 11am – 1pm at Room 222, BITEC.
Utilising farm optimally means good management of pigs
For many pig producers, productivity is measured by the number of pigs produced per sow per year, but Niels Thing, Production Manager at Engholm/Krogsgaard, a 1200 sow herd in Denmark producing 42,000 piglets annually, said that this does not necessarily mean that the farm facility is being utilised optimally. At the ‘State of the Art in Swine Production’ Summit organised by Ceva Animal Health Asia in Bangkok yesterday, Mr Thing said the aim is to control and improve numbers and quality of pigs produced in every batch and to have a good production flow. One way this can be done is by using Altresyn, which suppresses oestrus and allows farm managers to schedule reproduction. This leads to optimised productivity and improved pig flow and better performance. He reiterated however that Altresyn is only a valuable tool only if it is used properly.
Ceva layer summit discusses ventilation, respiratory disease management
Ceva Animal Health Asia's ‘State of the Art in Layer Production Summit’ held in Bangkok yesterday ahead of VIV Asia 2015, addressed ventilation techniques that leads to the uniformity of the layer flock. Proper insulation and a proper air inlet system are recommended. Guidance on the technique was presented by Michael Czarick III from the University of Georgia. “With proper ventilation, moisture in the layer house can be controlled and that will promote a uniform environment which in turn will result in a uniform flock,” he said. Dr Marcelo Paniago of Ceva also addressed vaccination strategies as part of respiratory disease management.
Asia an important region for DSM
Asia is an important region for the growth of DSM Nutritional Products’ business. “We see Asia as an important market. We look forward to our growth in the region as the population, livestock industry and demand for animal protein continues to increase,” Mark Stock, President for Animal Nutrition & Health, told Asian Agribiz. To support the growth, the company recently opened a representative office in Bangladesh and has plans for more representative offices across Asia. “The representative offices will draw us closer to our customers, support their needs and offer solutions,” Mr Stock said. DSM recently opened an animal nutrition centre in China and plans to expand its work with universities. It also has plans for additional lines at its existing premix plants such as in the Philippines and to set up new plants in emerging Asian markets.
DSM discusses broiler performance, uniformity
Performance and uniformity are important challenges in broiler production. This topic was discussed yesterday at the DSM Nutritional Products technical forum in Bangkok, Thailand. Prof John Brake from the Prestage Department of Poultry Science, NS State University of the US, addressed an integrated management approach to improve broiler performance. He said that a study demonstrated that maintaining feed increases and body weight gain of broiler breeder males increases fertility and broiler performance. Dr Pim Langhout, DSM Director of Nutrition ANH Europe, said first week performance is important in modern fast growing broilers, so early access to feed is key. Fernando Cisneros, DSM Global Category Manager – Carotenoids, meanwhile spoke about benefits of Carophyll in strengthening vitelline membrane, increasing hatchability, fertility and egg production, and reducing early embryonic mortality. Two DSM Regional Technical Managers, Dr Rider Perez and Dr Salim Bootwalla, spoke about how to maximise amino acid from feed ingredients in broiler diets and effect of Ronozyme ProAct on amino acid digestibility in regional feed ingredients in broilers, respectively.
Victam Asia to return to Bangkok in 2016
Victam Asia will return to Bangkok, Thailand from March 29-31, 2016 at BITEC. Henk van de Bunt, Victam International BV General Manager, said yesterday during a press conference in Bangkok that the show will exhibit equipment, technology and ancillary systems required for the safe and effective production of feeds for livestock and aqua species, dry pet food and biomass pellet production. The show is co-located with Grapas Asia 2016 (a trade show for grain processing and storage) and FIAAP Asia 2016 (a trade show for feed ingredients, additives and formulation). Pornsil Patchrintanakul, President of the Thai Feed Mills Association, said that the association fully supports the shows since it will help improve the feed industry in the region with new advanced technology and solutions.
VIV Asia 2015, Bangkok Thailand, March 11-13
[10 March 2015]
Ag companies pitch technology to media
Twenty-eight companies and agricultural organisations pitched their latest technologies and products at VIV Asia 2015’s Meet the Press event in Bangkok yesterday. The companies made short pitches to reporters and photographers representing both local and international media, including Asian Agribiz. Companies in the feed, animal husbandry and processing sectors all took part in the presentations, which were followed by round-robin interviews with the assembled members of the press. The event took place at the Fahrenheit restaurant at the Bangkok International Trade and Exhibition Centre (BITEC), where the three-day VIV Asia 2015 trade fair kicks off on Wednesday.
IEC addresses egg branding and layer management at forum in Bangkok
More than 80 egg industry participants gathered at the two-day ‘IEC Asia leadership Forum’ which started yesterday in Bangkok. Organised by the International Egg Commission to discuss driving growth in egg consumption and improvement in layer management, ‘branding’ was the topic addressed with Han Zhaopeng from DQY, a market leader in China. He shared their experience with marketing eggs in China through branding. Andrew Joret from Noble Foods (UK) presented a case study. “Branding is not just labelling…you have to distinguish for consumers to buy your products,” said Mr Joret. Jan Dirk van der Klis from Delacon spoke about heat stress and the effect on layer performance while Dr Dough Grieve from Hy-Line addressed maximising productivity.
• Ceva Animal Health – Broiler, Layer and Swine seminars at Centara Grand Hotel at Central World, World Ballroom, starting at 0900 hrs.
• DSM Nutritional Products – Seminar titled ‘Broiler performance & uniformity’ at JW Marriot Hotel @ 1500hrs.
• Elanco – the ‘New Elanco’ launch party @ The Okura Prestige Bangkok starting at 1730hrs
• FIAAP, VICTAM & GRAPAS Asia 2016 – Press Conference @ JW Marriot Hotel @ 1500 hrs
• Progressus, Kasetsart University, Agentis Innovations and AgJobs Asia - Dinner @ Royal Dragon Restaurant @ 1800 hrs.
|CPF feed labs receive global standard certification|
[10 March 2015] Three feed laboratories of Charoen Pokphand Foods Pcl (CPF) in Ratchaburi,Hat Yai and Phitsanulok have received the ISO/IEC 17025 certification from the Ministry of Science and Technology of Thailand. Patthanee Leksrisompong, CPF’s Executive Vice President said the certification confirms the competence of the labs to carry out tests and calibrations, including sampling using Near Infrared Spectrometers (NIR) that analyses the quality of raw material and completed products as well as support research and development of CPF’s feed quality. “Modern, high quality and high accuracy labs allow us to produce high quality and safe feeds," she said.
|India to start exporting buffalo meat to Russia in May|
[10 March 2015] India’s buffalo meat exports to Russia is likely to start in 6-8 weeks, Santosh Sarangi, Chairman, Agricultural and Processed Food Products Export Development Authority said. Three months after formal approval to import buffalo meat, Russia’s veterinary and phytosanitary service Rosselkhoznadzor has appointed an inspector for India. The inspector will visit buffalo meat processing plants, packing houses and other stakeholders involved in meat exports. Until recently, Russia was among a number of countries which had banned import of meat and poultry products from India, due to an earlier foot and mouth disease outbreak.
|Brazil delays WTO filing on exports to Indonesia|
[10 March 2015] Brazil has delayed lodging its complaint to the WTO on the chicken export ban by Indonesia. Syukur Iwantoro, Director General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture said: “Still we must remain prepared. Indonesia is in a strong position to ban the import of chicken carcasses and portioned cuts from Brazil. And we are sure to win if Brazil files a complaint.” According to him, Brazil has not been able to comply with the halal provisions required by the Indonesian Ulema Body, overall review and individual slaughter. Commenting on the same issue, Anton J Supit, Chairman of the Indonesian Poultry Companies Association said that this news will encourage farmers. “If Brazilian chicken is allowed into the Indonesian market, the price of local chicken will be disrupted.”
VIV Asia 2015, Bangkok Thailand, March 11-13
Asian Agribiz’s recommendations
[09 March 2015]
In conjunction with VIV Asia 2015, a number of events, conferences and seminars will take place in Bangkok, Thailand. On today are the International Egg Commission Conference at the Shangri-la Hotel and later in the day, the VIV Meet the Press event at Fahrenheit Restaurant, BITEC @ 1430 hrs.
On March 10:
• Ceva Animal Health – Broiler, Layer and Swine seminars at Centara Grand Hotel at Central World, World Ballroom, starting at 0900 hrs.
• DSM Nutritional Products – Seminar titled ‘Broiler performance & uniformity’ at JW Marriot Hotel @ 1500hrs.
• Elanco – the ‘New Elanco’ launch party @ The Okura Prestige Bangkok starting at 1730hrs
• FIAAP, VICTAM & GRAPAS Asia 2016 – Press Conference @ JW Marriot Hotel @ 1500 hrs
• Progressus, Kasetsart University, Agentis Innovations and AgJobs Asia - Dinner @ Royal Dragon Restaurant @ 1800 hrs.
|Pangasius exports make slow recovery|
[10 March 2015] Pangasius exports from Vietnam made USD 1.76 billion in profits last year, representing a slight year-on-year increase of 0.4%. The category also represented 22% of total seafood sales abroad, compared to 26% last year. According to statistics from the Vietnam Association of Seafood Exporters and Producers, exports to the European Union and the US, the two largest importers of pangasius, decreased from 22% in 2013 to 19% for each market. The decline in exports to the EU was due to lower import demand, stricter inspection on chemicals and antibiotics, and abundant supply of white meat fish like cod. In the case of the US, the decrease in pangasius exports was the result of the antidumping imposed on frozen pangasius fillet imported from Vietnam, which was double the preliminary result.
|CPF to buy CP Cambodia's business|
[09 March 2015] The board of Thai food giant Charoen Pokphand Foods (CPF) has approved plans to buy the poultry business of CP Cambodia (CPC). CPF, which wants to expand its business overseas, is looking to take its stake in CPC from 25% to 100%. The acquisition of the rest of the business will cost USD 87.88 million. Adirek Sripratak, President and CEO, said CPC is “a leading player in the Cambodian agro-industrial business”. CPC’s total revenue was approximately USD 256 million in 2014, with a net profit of USD 22.94 million. Most of CPC’s revenues were derived from its swine and poultry business, the Thai group noted. In a statement, Charoen Pokphand Foods said, “The acquisition of CPC will enhance CPF’s position as a leading agro-industrial business operator in Indochina market which has strong growth potential."
|Staving off heat stress|
[09 March 2015] Countries in Southeast Asia can expect dry weather and rising temperatures until April due to the equinox at the end of March. Farmers are encouraged to keep their poultry and livestock comfortable to avoid heat stress which can cause sudden death. Dr Lim Hang Chern, Techno Commercial Manager of RhoneMa Malaysia, said when it's hot, birds reduce their feed intake and this can lead to slower growth. He advised farmers to increase the fat content in feed. “In this way the digestion process will not generate too much heat compared to energy sourced from starch and protein,” he told Asian Agribiz. Dr Lim said the normal temperature range for poultry is between 40.6 - 43 degrees.
|Indonesia targets to produce 785,900t of shrimp|
[09 March 2015] Indonesia is aiming to be the largest shrimp producer in Asia. The Ministry of Fisheries and Marine Affairs has said that the production of shrimp (vannamei and black tiger) this year is targeted to reach 785,900 tonnes. Minister of Fisheries and Marine Affairs, Susi Pudjiastuti said to achieve the target the ministry will encourage farmers to reactivate idle farms and increase productivity at existing farms through the adoption of more advanced technology.
|US panel gives the thumbs up for eggs |
[09 March 2015] The US Dietary Guidelines Advisory Committee recently removed warnings about dietary cholesterol, saying there is no link to dangerous levels of blood cholesterol that cause disease. “I’m glad they published this news,” Tan Leng Yee, General Manager of Malaysia's Liang Kee Farming Sdn Bhd told Asian Agribiz. Although not many Malaysians are aware of the decision, and it could take some time to create awareness, he said the news will nevertheless help the company in promoting egg consumption. After reviewing scores of studies that showed no correlation between dietary cholesterol and serum cholesterol, or ‘bad’ cholesterol present in the blood, the committee said that cholesterol was not ‘a nutrient of concern for overconsumption’, it wrote in a report.
|Fast Food Indonesia eyes 16% growth |
[09 March 2015] Fast Food Indonesia, the operator of KFC, is targeting an income of USD 383 million this year, an increase of 16% from the previous year. For the first quarter the company expects a 7-10% increase, over last year's USD 74.6 million. To achieve this, it will launch new menus. Early this year it launched Red Hot chicken that helped increase its January and February sales by 5%. Director Justinus Dalimin Juwono revealed that KFC will launch a new menu again this March. The other strategy is to setup new outlets. “We are planning for 10-13 new outlets in Q1, in Jakarta, Bandung, Surabaya and other cities in East Java. Each outlet will cost us around USD 308,000,” Mr Justinus said. By the end of this year, the company targets to open 45 new outlets and 20 KFC Box (smaller outlets).
|Assessing quality of feed ingredients and finished feeds|
[06 March 2015] Using quality raw materials and having quality finished feeds are essential to ensure profitable and sustainable pig production. At Asian Agribiz's Pig Feed Quality Conference (PigFQC), a session on feed manufacturing will look at practical possibilities to assess the quality of feed ingredients and feed, and improved efficiencies to ensure pigs receive optimum nutrition to give the desired performance. Jon Ratcliff of Food & Agriculture Consultancy Services UK will talk about the latest in-line moisture system & SCADA technology. Steven Goh of Delst Asia will discuss the role of steam conditioning to feed pellet efficiency and feeding value. Ivan Ward of Agri-Torque Pty Ltd will present about the role of NIRS in moisture management in feed, while Marnix De Schryver of Aveve Veevoeding will discuss NIRS as a tool for quality management in feed production. The PigFQC, annually organised by Asian Agribiz, will be held from April 9-10 in Ho Chi Minh City, Vietnam. For further details and to register, click here.
|High inventory of frozen pork affecting local demand|
[06 March 2015] Frozen imported pork is making its way into wet markets around the Philippines again, bringing down demand for local pork. Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that the inventory of frozen imported pork has gone up following the release of the meat that was held back when the country was experiencing port congestion problems in the latter part of 2014. With the current slow demand, some meat traders are selling the released frozen pork at cheaper prices. However, Mr Chen said handling of these products has been unsanitary, since most wet markets are not equipped to handle frozen meat. Pork producers are calling on the National Meat Inspection Service and administrators of local markets to enforce frozen meat handling rules strictly to ensure that consumers get safe meat.
|S khonkaen eyes 15% growth in sales |
[06 March 2015] Thailand's S Khonkaen targets to achieve a sale growth of 15% in 2015 after generating a sales expansion of 11% in 2014. It achieved USD 69.02 million in sales in 2014, with a net profit of 3.43 million, or 21% higher than in 2013. Chief Executive Officer Charoen Rujirasopon revealed that the company will continue to focus on adding value to its processed pork products and promote its fast food chains Zabb Express and Yunnan Pork Leg restaurants. The company will expand its Yunnan Pork Leg outlet to 35 branches in Thailand from 22 at present. It also has two Yunnan Pork Leg outlets in Vientiane, Laos. S. Khonkaen has also start selling packed frozen Yunnan pork leg in supermarkets.
|Consumers unhappy over beef ban|
[06 March 2015] Consumers in Mumbai city, India have voiced their displeasure over the beef ban. Sidharath Sundar, a college professor from Mumbai told Asian Agribiz that the State has no right to intervene in the food habits of the people. “The government cannot dictate what we should eat, it is something personal,” he said. Social activists like M Krishnan also came down heavily against the beef ban saying that it is baseless to declare the sale and consumption of beef as a non-bailable offence. According to him, the beef ban has also shown the Maharashtra government in poor light among the international community.
|McDonald’s Indonesia to promote breakfast menu|
[06 March 2015] McDonald’s Indonesia plans to host a National Breakfast Day on March 9, from 6 am to 6 pm. At this event the company will distribute for free, 150,000 Egg McMuffin at its 148 outlets throughout Indonesia, except in Bali and Lombok. Through this event, the company aims to introduce its breakfast menu. Michael Hartono, Marketing & Communication Director, said: “The breakfast menu is a significant profit maker for our business. We have conducted similar events in previous years, and the response from our customers was positive.”
|Opposition party in Maharashtra welcomes beef ban|
[06 March 2015] The beef ban imposed in Maharashtra state in India is highly unlikely to be made into a political issue as the main opposition party has welcomed the move. Leader of the opposition Radhakrishna Vikhe Patil said the Indian National Congress welcomes the beef ban. “The bill has been pending for long,” he said. According to him, implementation of this law needs to be totally transparent and the ruling party should not use it as a political tool to gather support.
Global Food Safety Conference, Kuala Lumpur, Malaysia
Food Safety: a Shared Responsibility
Onsite reports by RACHAEL PHILIP & CONNY PEREIRA
[05 March 2015]
Over 900 delegates from 50 countries converged at Kuala Lumpur Convention Centre in Malaysia for GFSI’s Global Food Safety Conference, held for the first time in Asia. The three day event which started on March 3, is set to provide safer food to 7 billion consumers around the world. Under the theme “Food Safety: a Shared Responsibility”, this year’s Program addresses hot topics in the food industry from both global and regional (APAC) angles.
GSFI aims to grow in Asia
The Global Food Safety Initiative (GSFI) wants to expand its work beyond the US, Europe, China and Japan. “It’s a strategic move on our part to bring the event to Kuala Lumpur. Asia is a big market,” Véronique Discours-Buhot, GFSI Director told Asian Agribiz. The GFSI provides leadership and guidance on food safety management systems along the value chain. She said food safety is important even for small and medium-sized food companies in Asia that do not yet have plans to grow internationally. “It is important to let them know how they can build and improve on safety.” GFSI’s Guidance Document, launched in 2001 and available on its website, mygsfi.com, will be releasing its latest version by mid-2015.
Food safety, a shared responsibility
The many demands placed on both producers and retailers have fast changed food chains into food webs, said Cenk Gurol, Vice President AEON Co Ltd of Japan. “With longer value chains from farm to fork, we also see a wider threat of contamination. This drives the need for ‘shared responsibility’ in this growing arena of food safety,” he said.
Cargill pleased with the way it handled blue plastic crisis
Looking back at the blue plastic crisis which unfolded in January Michael Robach, Cargill’s Vice President of Corporate Food Safety, Quality and Regulatory, said he was pleased with the way the company performed. “Our response was appropriate. We were transparent. We conducted analysis at third party labs and cooperated with McDonald’s and the government,” he told Asian Agribiz. Despite announcing within one week that the material did not originate from its plant, he said the crisis offered Cargill the opportunity to improve on crisis communication and its production process.
Megatrends in food safety
Measuring demographic and consumption pattern changes will draw industry players to conclude that it is all happening in Asia. By 2050, per capita food consumption in Asia will grow by 128% said Craige Armitage, Global food safety and Quality Service Leader, PwC, New Zealand. “Seven of the 10 fastest growing economies are in Asia and by 2050, we will see a 72% increase in urban populations that will drive the demand for safe food,” he added.
Asean working towards harmonisation of standards
The 10-member Asean community has until now achieved tariff reductions and is now working towards harmonisation of food safety standards. This will take some time because of the wide gaps in levels of economic maturity of the member nations, commented HE Puspanathan Sundram, Managing Director of EAS Singapore. He added non-tariff barriers are also a concern and this is being addressed in the run-up to the Asean Economic Community at the end of 2015.
Proper farm management key to antibiotics-free fish farms
Confusing regulatory landscape is one reason for the misuse of antibiotics in farming, said Lisa Goche, Vice President, Best Aquaculture Practices Division of the Global Aquaculture Alliance. “Aquaculture is projected to increase by 62% by 2030,” she said adding that a concerted effort is needed to ensure that farmers are trained on the judicious use of antibiotics. Proper farm management and best manufacturing practices are key ways farmers can reduce their dependence on antibiotics. Strict biosecurity controls, proper feeding, close monitoring of water quality and zero or minimal water exchange are some steps farmers take for better farm management.
|Beef traders plan to seek legal recourse|
[05 March 2015] Aggrieved over the beef ban imposed in Maharashtra, beef traders in the state plan to seek legal recourse. “The beef ban will affect about 70% of our business and thousands of people connected with the trade will lose their livelihood,” Mohammed Akhtar, a beef trader in Mumbai told Asian Agribiz. According to him, the Mumbai Suburban Beef Traders' Association is likely to approach the court seeking legal recourse as the beef ban is unjustified. Mr Mohammed Akhtar said that the beef ban will severely affect rural economy and prices of other meat will sharply increase.
|Effects of beef ban felt in Goa|
[05 March 2015] Two days after the Maharashtra state government in India banned the slaughter of bovine animals except water buffaloes and the sale and consumption of beef, the meat is now in short supply in neighbouring Goa state. Goa Meat Sellers Association spokesperson Anwar Bepari said that this has come at a time when the only slaughter house in Goa is non-operational due to renovation. “Beef ban in Maharashtra state will only make things worse. Beef sellers across the state are expected to meet to discuss the shortage issue.
|Thailand’s Egg Board to meet on low price issue |
[05 March 2015] Thailand’s National Egg Board will meet on March 10 to consider measures to tackle the current low price issue. Farm gate price of mixed grade hen egg is at around THB 2.20 per egg (USD 0.068) at present, lower than production cost of THB 2.90/egg (USD 0.090). Many small farms even offer lower price than the average as to clear their supply. AT an earlier meeting with the Department of Livestock Development, layer farmer representatives agreed on proposed solutions such as reduction of PS to not exceed 500,000 birds from around 699,000 in 2014, exports of surplus by large egg producers by 3 million eggs per month, earlier removal of spent hens (at age 70 weeks), exports of extra PS and stocking of surplus eggs in cold store. All the proposed measures are expected to be carefully considered at the upcoming Egg Board meeting.
|Indonesia still the biggest Australian cattle importer|
[05 March 2015] Indonesia is still the biggest importer of live cattle from Australia, with a 63% increase in imports recorded in 2014. According to Meat and Livestock Australia export data, Indonesia had in 2014 imported 730,257 live cattle from Australia. The strong demand has become the main driver of growth for Australia’s live cattle exports, which has increased by 33% in 2014, amounting to 1.29 million live cattle exported. Meanwhile in 2014, Indonesia’s position as the biggest importer is far above Vietnam, the second biggest importer of live cattle from Australia. In 2014, Vietnam imported 181,542 live cattle from Australia.
|Costs bear upon smaller feedmillers |
[04 March 2015] Rising costs of and difficult access to raw materials are working against small and medium-scale commercial feedmillers as well as home-mixers in the Philippines. Miriam Alberto-Tempra, Vice-President of the Philippine Association of Animal Nutritionists, told Asian Agribiz that there is a growing number of commercial feed manufacturers in the country, many of whom are big operations. She said that while costs of some ingredients like soy and amino acids have softened, many smaller feed manufacturers, producing between 5000-20,000 bags/month, are still feeling the pinch and finding it difficult to compete with bigger commercial feedmillers. “The bigger feedmills can import raw materials tariff-free, so they are able to sell their feed cheaper,” commented Dr Tempra.
|GSI to open office, plant, warehouse in Indonesia|
[04 March 2015] GSI Asia, a subsidiary of AGCO Corp providing grain systems and structure, poultry and swine solutions, plans to set up an office, assembling plant and warehouse in Tangerang, Indonesia. Khenddro Low, Marketing Manager, told Asian Agribiz that the facilities are targeted for operation at the end of this year. The existence of the plant will make the prices of GSI’s products more competitive. The plant will assemble products like feeding, watering and nesting systems and also plastic slats. The warehouse, meanwhile, will strengthen the company’s services to customers in the country. “Our business in Indonesia continues to grow positively. This year we expect our business in Indonesia to grow at least 7-8%,” Mr Low said.
|Beef trade come to a halt in Maharashtra|
[04 March 2015] Indian President Pranab Mukherjee has signed the Maharashtra Animal Preservation (Amendment) Bill, 1995 which ban the slaughter of bulls as well as bullocks. The slaughter of cows was previously prohibited in the state under the Maharashtra Animal Preservation Act of 1976, reported the Indian Express. Beef traders claim the move will not only render thousands jobless, but will also drive up the cost of other meats in the state. Anyone found to be selling beef or in possession of it can be jailed for five years and fined USD 160.
|H9N2 infection in pigs and farmers in China|
[04 March 2015] Low rates of antibodies to H9N2 avian flu were found in pigs and workers at pig farms in Shandong province in eastern China. Chinese researchers were said to have collected 2,176 pig samples from 50 swine farms on which pigs had contact with wild birds, and they also collected blood samples from 287 workers on the farms and from 100 healthy controls in the province. Antibody titers of 40 or higher were considered seropositive for H7N9.By hemagglutination inhibition (HI) assay, 4.9% of the pigs were seropositive, compared with 3.9% by microneutralization (MN) assay. In the farm workers, 2.1% were positive via HI assay and 1.4% by MN assay. No H9N2 cases in the pigs and workers were detected, which indicates that asymptomatic infections likely exist, the authors noted.
|Beef prices in Indonesia skyrocketing |
[04 March 2015] The reduction of import permits for live cattle and the ban on importing secondary beef cuts and offal could prove disastrous. The price of beef across Indonesia’s traditional and modern markets is on the rise, surging to USD 11.54/kg in many regions. The Indonesian Beef Cattle Feedlotters Association is lobbying the government to issue 250,000 import permits for Australian cattle in Q2 and to allocate the permits as soon as possible, so cattle can get into the feedlotting system and be ready for Ramadhan, which starts on June 18. Thomas Sembiring, Chairman of the Indonesian Meat Importers Association, said the price of beef could reach beyond USD 11.54/kg, if nothing is done. “The government has calculated that most of the secondary cuts of beef could be supplied locally, but I doubt it. It’s still debatable if there’ll be enough beef for Ramadhan.”
|Brahim’s shareholders squash decision to buy Burger King|
[04 March 2015] Brahim’s Holdings Bhd has aborted plans to acquire the Burger King business in Malaysia and Singapore after its shareholders voted against the decision at an EGM. “The deal was rejected by more than 90% of shareholders by a show of hands,” said Brahim’s Executive Chairman Datuk Ibrahim Ahmad Badawi after the meeting. Shareholders were concerned that the Burger King business was loss-making but he added that Brahim’s had plans to turn it around in two years. Last November, Brahim’s announced its plan to acquire Burger King for USD 26.34 million and was to jointly carry out the purchase with businessman Datuk Ahmad Zaki Zahid in an 80:20 joint venture. An industry source said there was scepticism about the company's ability to raise funds for the acquisition.
|Lay Hong reports 500% increase in earnings for 3Q|
[03 March 2015] Lay Hong Bhd, the Malaysian poultry company that was a takeover target by QL Resources Bhd last year, reported a 500% increase in its earnings for the third quarter ended December 31, 2014. The company’s net profit rose 500% to USD 1.75 million, a sharp improvement from USD 0.29 million a year ago. Its revenue increased 21.3% to USD 49.10 million. Its integrated livestock farming segment revenue increased 24.12% on higher productivity and poultry product prices. “Chicken and egg prices have remained stable for the past nine months and is projected to remain at this level for the remaining three months of the financial year. Raw material prices are expected to remain stable due to adequate supply of corn and soybean. Given this outlook, the group will continue to perform satisfactorily in the remaining quarter,” it said in a filing to Bursa Malaysia.
|Call for Vietnam to step up beef cattle farming|
[03 March 2015] Vietnam should convert ineffective rice cultivation areas into grass fields for raising beef cattle, Le Ba Lich, Vietnam Animal Feed Association Chairman said. He said Vietnam imports about 200,000 head of cattle every year. There are only 45,000 ha of grass across the nation at present which is only able to feed 45,000 cattle, he added. Nguyen Dang Vang, Animal Livestock Association Chairman, said about 70 million tonnes of agricultural by-products like straw, bagasse, and corn stalk, which can be turned into animal feed, are produced annually. If each kg of beef needs 6-7 kg of fodder, the country can produce one million tonnes of beef using only 20 million tonnes of by-products.
|Pig processing unit starts operation in Nepal|
[03 March 2015] A pig processing unit, promoted by Fresh Hygienic Food Agro and Animal Farming has started operations in Banke district, Nepal. The USD 100,885 processing plant will supply 400kg meat/day to Kathmandu valley. “We have signed an agreement to purchase pigs from around 300 farmers of mid and far western regions,” Dipendra Kumar Joshi, Managing Director of the company said. According to him, the processing unit purchases pigs at around USD 2/kg and since a competitive price is offered, farmers need not search for other markets.
Sneak peek at Asian Poultry Magazine, March 2015
[03 March 2015]
Asia strengthens effort on disease control and food safety
The spread of several avian influenza virus strains in many Asian countries has put pressure on the poultry industry. The AI outbreaks have encouraged increased biosecurity while other diseases and food safety issues continue to pose challenges to the poultry sector in this region. NITSARA THONGRUNG and the ASIAN AGRIBIZ team offer an update and review resolutions as well as recommendations to sustain growth.
Kaona Poultry invests in technology
Kaona Poultry Co Ltd in Thailand is investing in technology, primarily to ensure the quality of its products. NITSARA THONGRUNG writes this will also improve work efficiency and offer a higher degree of traceability.
Aviagen India sees potential for export
Ever since Aviagen established its presence in South India in 2007, the company has grown and is now able to service the central and northern regions as well with its products. Paul Gittins tells S M ARUN that the potential for export is good and how important India is to Aviagen’s global strategic plan.
Strong foundation helps Phi Long progress
Getting the basics right -- such as quality feed, clean water and keeping the birds comfortable – has helped Vietnamese farmer Phi Long grow gradually and reap success from his farm. After opening a primary processing plant in December 2013, he now wants to open a further processing plant, RACHAEL PHILIP learns.
Biocatalysis – improves nutrient digestion
Clays are well-recognised for their layered structure and surface properties, making them able to bind polar mycotoxins. However, VIRGIL MEALLET explains that a unique combination of clay and seaweeds boosts enzyme activity through the action of biocatalysis, improving feed efficiency.
Mycotoxins – impact on infectious diseases
The incidence of mycotoxin contamination of feed is likely to increase with the increasing use of DDGS, which are particularly susceptible to this problem writes RADKA BORUTOVA. Mycotoxins can cause immunosuppression, increasing the risk of infectious diseases and reducing the effectiveness of vaccination programs.
The use of probiotics to reduce reproductive tract pathologies in free-range laying hens
Manipulation of bacterial communities by administration of probiotics can reduce the occurrence of reproductive tract pathologies and improve the health and performance of free-range chickens reports WAEL ABDELRAHMAN.
|Making the most of feed ingredients|
[02 March 2015] With feed accounting for the bulk of cost in pig production, pig producers have turned to alternative ingredients to meet nutritional requirements while reducing cost. At the Asian Agribiz Pig Feed Quality Conference to be held from April 9-10 at the New World Saigon Hotel in Ho Chi Minh City, Timothy Low, Regional Director (SE Asia) of the US Soybean Export Council will give participants an update on feed commodities. Dr Nattawut Rattanawanichroj, Assistant Professor, Faculty of Veterinary Medicine of Kasetsart University will discuss the use local ingredients. Dr Megan Edwards of A.C.E Livestock Consulting Pty Ltd will also give an overview on and the potential uses of legumes and canola in pig nutrition. The conference is widely recognised as one of Asia’s premier scientific forums for industry professionals to update their knowledge on pig nutrition. More details and register here.
|Beef traders to go on nationwide strike if harassment continues|
[02 March 2015] Beef traders in Mumbai, India have decided to launch a nationwide strike if harassment by Hindu religious outfits continues in the state, said President of the Bombay Suburban Beef Dealers Association Mohammed Ali Qureshi. Beef processing has resumed at many facilities in Mumbai and the situation has eased now. Ashakir Akbar, a beef trader in Mumbai said that the beef traders’ strike in Mumbai last week had affected prices of almost all meat items. “If we call a nationwide strike the impact will be huge and even the export business will be affected,” Mr Ashakir Akbar told Asian Agribiz.
|MPEDA set to achieve USD6b export revenue|
[02 March 2015] The Marine Products Export Development Authority (MPEDA) in India is confident of achieving USD 6 billion in export revenue during the 2014-15 financial year. Exports by the Central Government owned agency has already crossed USD 5 billion by January this year. N Ramesh, Director (Marketing) of MPEDA said recently that seafood exports were registering close to 20% rise annually. Major customers of MPEDA that import shrimp, fish and squid are USA, Southeast Asia, European Union and Japan.
Reports from the Indonesian Poultry Club, Jakarta
by ARIEF FACHRUDIN
[02 March 2015]
Indonesian poultry needs grand design
The oversupply of broiler DOC and live birds in 2014 which had generated losses of more than USD 544 million in the industry and last year’s chicken consumption that did not meet the target resulted from the absence of a grand design, according to Professor Muladno from the Faculty of Animal Science, Bogor Agricultural University. “The idea to create a grand design has been discussed many times, but no real action was taken.” The grand design of Indonesian poultry industry for the next 25 years has to be formulated as soon as possible. “And then who will do what, what are the targets and when are the deadlines should be clear,” he added.
Chicken will be basic commodity
Indonesia’s Ministry of Trade has prepared a regulation about chicken trade which will soon be discussed at the government level. Robert James Bintaryo, Director for Basic Commodities and Strategic Goods, said that in the regulation the government will make chicken one of the basic commodities in the country. In addition, there will be floor and ceiling prices for live birds, chicken and DOC. According to Mr Robert, this effort was taken to stabilise the price and prevent oversupply.
GPPU to check incubator capacity
The Indonesian Poultry Breeders Association (GPPU) plans to check the capacity at all hatchery facilities of its members this year. This follows the oversupply situation of broiler DOC in 2014 that led to severe losses. Krissantono, GPPU Chairman, said the checks are aimed at getting more valid data regarding the production numbers of broiler DOC. “With more valid data, over estimation of production can be prevented,” he said.
Exporting countries have to follow Indonesia’s halal rules
Responding efforts by Brazil and the US to export chicken to Indonesia, poultry associations in Indonesia realise that this is the consequence of free trade. An industry player told Asian Agribiz: “We are open to imports but the exporters have to follow rules in Indonesia.” Most important is that the products should be halal as 90% of Indonesia’s population is Muslim. He explained that the halal concept in Indonesia is different from countries in the UEA. He said that the slaughter procedure, the facility and the production processes should be certified by the Indonesian Ulama Council.