TOP STORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 December 2015
|Indonesia’s AP5I vote for RCEP over TPP |
[30 November 2015] While Indonesian President Joko Widodo expressed interest in joining the Trans Pacific Partnership led by the US, Thomas Darmawan, Chairman of the Indonesian Fishery Products Processing and Marketing Association (AP5I), told Asian Agribiz that most of TTP members are developed countries that implement different standards from developing countries. “So if seafood processors export to those countries, there will be many barriers,” he said, adding that for Indonesia TPP is more beneficial for the automotive industry. “But for agribusiness and fishery, it is better to join the Regional Comprehensive Economic Partnership (RCEP) as the potential market is around 3.4 billion people, higher than the TPP,” he added.
|Nestlé to combat forced labour in Thailand|
[30 November 2015] Nestlé, one of the biggest food companies in the world, has pledged to tackle any forced labour employed in its supply chain in Thailand. Nestlé’s commitment came after a report, conducted by Verite and commissioned by Nestlé, found that forced labour, trafficking, and child labour to be present among sea-based and land-based workers in the Thai seafood industry. The report also found deceptive recruitment practices and exploitative and hazardous working conditions on fishing boats and in processing factories. Nestlé has published an action plan on seafood sourced from Thailand, aimed to protect workers.
|Chicken egg prices in Malaysia see gradual uptrend |
[30 November 2015] Chicken egg prices in Malaysia have been recovering over the past four months. Grade A egg price at the farm in the week of October 15 reached 38 sen (USD 0.09) per piece, the highest since prices dipped to 31 sen in the week of July 14, according to the Department of Veterinary Services. Prices are still low compared with the start of the year. The EdgeMarkets quoted industry sources cautioning that a possible glut could cap prices in the coming months. Some 20 Malaysian companies export eggs to Singapore. Egg producers make about 3 sen more per egg exported across the Causeway.
|Vitamin E alleviates heat stress in growing pigs|
[30 November 2015] Pigs raised in hot weather have an increased carcass to fat to protein ratio noted Fan Liu, of the University of Melbourne at the Australian Pig Science Association Conference. Reduced lipid mobilisation during heat stress was ameliorated by a high vitamin E diet (200IU/kg a-tocopherol), but not by a high selenium diet (1ppm Se yeast), suggesting that vitamin E may prevent increased adiposity experienced during hot seasons.
|Cargill's 11th feedmill in Vietnam to commence operations in 2016|
[30 November 2015] Cargill's feedmill in Nghe An, Vietnam which is under construction, will begin operations in the first half of 2016. The company has also invested USD7 million for the expansion of its existing animal feed mill in Dong Thap. Cargill currently has 10 feedmills that produce compound feed for both livestock and aquatic species, and one facility in Dong Nai which provides premix to feed manufacturers and vertically integrated producers. “Vietnam represents an important market for us and presents clear growth opportunities. Our investments here reinforces our commitment to the Vietnamese market and its people,” said Cargill Chairman and CEO David MacLennan.
|Australia’s ProTen eyes Asia for future growth|
[30 November 2015] ProTen, Australia’s largest independent contract grower of broiler chickens and the supplier to Australia’s biggest chicken processor Baiada Poultry, is eyeing Asia for future growth. The company is considering taking its corporate chicken farming model beyond Australia and into Asia, for future expansion. “We have got enough capital now to probably meet the next three to four years of our program. Funding into Asia would require additional investment. Potential expansion into Asia would likely be in the next two to five years,” Maxwell Bryant, Executive Director, said.
|H7N9 picks up in China|
[30 November 2015] China's fourth wave of H7N9 infections has hit its fifth victim in Guangdong province. The man, a farmer in his 70s has been hospitalized, according to a report from Xinhua. This is the first case from Guangdong province. The earlier four were from Zhejiang province. More infections are expected in coming months.
|Thai corn farmers urged to embrace technology|
[27 November 2015] “Corn planted area is limited in Thailand and productivity is low. We need to boost output by embracing technology in farming and in seed improvement," Pornsil Patchrintanakul, President of Thai Feed Mill Association told Asian Agribiz. He added that if productivity cannot be improved, corn imports would be inevitable. Feed corn price is currently around USD 0.24/kg. Mr Pornsil said next year the price of corn will not fall below the current level because demand is growing and an anticipated drought could impact supply.
|Kee Song to invest 5% of revenue on brand building|
[27 November 2015] Antibiotic-free Keesong chicken, a product of Singapore-based Kee Song Group of Companies, is growing in popularity on both sides of the Causeway as consumers look for safer chicken meat. The brand offers three categories of premium products – fresh whole chicken, fresh chicken parts and frozen chicken parts – in its Lacto, CaroGold and Cordyceps range. James Sim, Group Marketing Manager, Kee Song Brothers Poultry Industries Pte Ltd, told Asian Agribiz that the company is focused on creating a brand that is synonymous with healthy living. To push their agenda, the company has allocated a 5% marketing budget to ensure its brand building targets are met.
|Petersime establishes its regional hub in Malaysia|
[27 November 2015] Belgian manufacturer of incubators and hatcheries Petersime NV customers in Southeast Asia can expect quicker and more efficient sales and services. The company opened its regional office in Malaysia yesterday. Carmelo Ferlito, Commercial Director Southeast Asia, said the office will allow Petersime to be closer to its customers in the project design stage and provide field service engineers for effective installation and technical support. “There was a need for a business hub in the region. To follow up from Europe is no longer feasible. It’s not just about supplying good equipment anymore. It’s also about building relationships,” he told Asian Agribiz.
|Indonesian and Philippines firms in jv for chicken processing|
[27 November 2015] Indonesia’s Triputra Group and Persada Capital Group recently cooperated with the Philippines’ Bounty Fresh Food Inc to set up a jv company called PT Bounty Segar Indonesia to venture into the chicken processing & further processing sector. The jv was signed last week in Jakarta. Bounty Segar plans to set up a production facility in West Java. Martinus Sinarya, President Director of Triputra Group’s subsidiary Sumber Energi Pangan, said the facility is targeted to start production in 2017.
Poultry India 2015, Hyderabad, India
On-site report by SM ARUN
[27 November 2015]
On the second day of the show in Hyderabad, India, Asian Agribiz caught up with key suppliers to the market. Following is a report on trends and developments.
Kemin sets up new R&D facility in Chennai
Kemin Industries South Asia Pvt Ltd based in Chennai has set up a new R&D facility in Ambattur Industrial Estate in Chennai. R Kannan, Marketing Manager, Animal Nutrition & Health said the lab set up at an investment of USD 2 million reflects Kemin’s dedication to research. “We have also moved our office to Ambattur Industrial Estate, which will enhance the company’s operational capabilities,” he added. Kemin is aggressively promoting its products KemZYME XPF and KemZYME Proteas that helps improve the performance of broilers.
Jamesway enters Bangladesh market
Poultry incubation systems manufacturer Jamesway has entered the Bangladesh market. SV Deshmukh, Area Sales Manager said that the company has supplied incubators to three poultry players New Hope Group, Kazi Farms Group and Advance Chicks in Bangladesh. “On seeing the efficiency and superior after sales service by Jamesway, we are getting more enquiries from players in Bangladesh,” Mr Deshmukh said, adding that they are growing stronger in the country. Jamesway is all set to supply incubators to three more poultry players in Bangladesh in the next few months.
Big Dutchman optimistic about Indian market
Poultry production equipment manufacturer Big Dutchman is optimistic about its growth in India as poultry producers in the country are gradually turning towards automation. “Our local presence in India is an advantage and poultry farmers are now confident that we can provide efficient and timely solutions,” Bernada Luers, Training & Marketing Manager of Big Dutchman said.
Meyn to exploit changing market conditions
With more poultry producers turning towards processing, poultry processing technology company Meyn is looking forward to leverage the opportunity. Dennis Groesbeek, Regional Director of Meyn said that India is an exciting market for Meyn as the processing industry here is expected to double in the next five years. “Even though the Indian market is different from other countries, our rich experience in providing processing technology to customers all over the world will help in providing solutions that best fits the Indian conditions,” he said.
Biomin plans for a production facility in India
Animal nutrition company Biomin is planning to set up production facility in India in the next 3-5 years. Sujit Kulkarni, Managing Director of Biomin India said that this will help the company to meet the growing demand for Biomin products in the country. “Identification of land for the new production facility is expected to be done next year,” he said. 'Biomin recorded good growth in India last year. We are also expanding our team to reach out to more customers,” Dr Kulkarni added.
Andritz expands market presence in India
Feed processing technology provider Andritz has expanded its market presence in India in the last few years. “In the last 3-4 years, we have installed 52 feed plants across India and have achieved the number one position in this market,” Arul Jerish, Project Executive of Andritz Technologies Pvt Ltd said. “Equipment quality and a competent team that offers good service helped us achieve the top sport,” Mr Jerish added.
|Thailand’s feed corn demand to reach 6.5-7 mt by 2018|
[26 November 2015] Meat exports from and meat consumption in Thailand have been growing annually and these dictate feed supply, Pornsil Patchrintanakul, President of Thai Feed Mill Association told Asian Agribiz, adding that feed corn demand will reach 6.5-7 million tonnes/year in the next three years, while production this year is estimated to be just 4.7 million tonnes. He said corn supply will not match future demand, and imports are limited.
|Revolutionising sow management|
[26 November 2015] Current sow management is essentially dominated by the need to wean sows to then re-mate them. This is based on the long held paradigm that sows are anoestrus during lactation. Dr Jeff Downing, University of Sydney, Australia said that group lactation provides an opportunity to use proven stimuli to induce lactational oestrus. Mating in lactation will remove the need to wean pigs early and allow not only older age weaning, but also gradual weaning he said at the Australian Pig Science Association Conference in Melbourne, Australia.
|Exclusive marine food park planned in Kerala|
[26 November 2015] A mega food park to cater exclusively to the marine food processing sector will be set up in Cherthala in India’s Kerala state. Chief Minister of the state Oommen Chandy said that the food park with an investment of USD 38 million will have common infrastructure facilities such as cold storage, ice plant and reefer vehicles. “The project is expected to attract investment of USD 75 million from the marine processing industry when it comes into operation in three years,” he said.
|Global processed meat market to reach USD1222.3b by 2022|
[26 November 2015] The global processed meat market was valued at USD 529.3 billion in 2014 and is projected to reach USD 1222.3 billion by 2022, growing at a CAGR of 11.02% from 2014 to 2022. According to Market Research Store, key factors fuelling market growth are demographic variations in terms of rise in disposable revenue, age and salaries particularly in Asia Pacific. Increase in food service and trade in Asia has led to better supply of processed meat products. Increasing cost of raw materials is the main problem while organic livestock is generating market opportunity.
Poultry India 2015, Hyderabad, India
On-site report by SM ARUN
[26 November 2015]
The ninth edition of the growing Poultry India international exhibition opened in Hyderabad, India yesterday, with active participation from both domestic and international exhibitors. The three day show offers a wide platform with valuable information about the poultry industry and disseminates knowledge about the latest technology available to producers in South Asia.
Like the earlier editions, this year’s Poultry India exhibition witnessed vibrant participation by around 220 companies including 40 from overseas. Harish Garware, President of Indian Poultry Equipment Manufacturers’ Association (IPEMA), said that the exhibition focuses on growth of the poultry sector with the core theme as ‘Sustainable Growth for All’. “Our focus has always been on exploring ways to further accentuate growth of the Indian poultry industry, which is progressing,” he said.
Knowledge Day focuses on science of poultry and latest innovations
In the run up to Poultry India, a one day interactive technical seminar themed ‘Knowledge Day’ was held on November 24. Leading regional and international experts presented a series of lectures on current challenges and problems. “The intelligence and experience shared by experts on different aspects of poultry science and latest innovations such as breeding, hygiene, nutrition, animal health, poultry equipment and logistics were beneficial and shed light on new areas,” a participant said.
Farmers keep up with advances in technology
The exhibition also served as an ideal platform for hundreds of poultry farmers operating in semi urban and rural areas of India to learn about modern technology. “It is a good opportunity for us to learn the latest trends in the international poultry sector from international exhibitors,” Surendra Yadav, a poultry farmer and visitor to the exhibition commented. According to him, the popularity of the exhibition is that it brings international exhibitors to the doorstep, which helps in improving the competitiveness of the Indian poultry industry.
Godrej Agrovet eyes USD 0.67 billion revenue
Diversified agribusiness company Godrej Agrovet Limited expects to rake in USD 0.67 billion in revenue this year. Balram Yadav, Managing Director of the company said that they are in the process of acquiring Mumbai based Astec Lifesciences. “Last year our revenue was USD 0.57 billion and we expect to reach USD 0.67 billion post-acquisition,” he said. Godrej Agrovet is planning to acquire up to 5 million shares in Astec at USD 3.71 per share.
Industry urges government to remove import duties
The poultry industry has asked the Union Government to remove duties on imports of corn and soy to help farmers meet feed shortage. The demand was made against the backdrop of a severe drought that resulted in poor corn and soy output. GB Sundararajan, Managing Director of Suguna Foods Pvt Ltd in his address at the exhibition said the shortfall would mean an additional expenditure of 20-30%. “This would result in heavy losses in the industry,” he said.
|Thai chicken producers told to cut costs, increase processed chicken|
[25 November 2015] Chicken producers should reduce costs and produce more value-added chicken products amid weak prices, Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. “Fresh chicken is a commodity and its price fluctuates based on competition,” he said, adding that prices for export and domestic chicken has been weak due to lower prices from overseas markets. Mr Kukrit said that some producers are operating at a loss as live chicken is retailing at USD 0.97/kg currently, while production cost is USD 0.97-1.03/kg.
|Cargill has no plans to enter animal protein space in Malaysia|
[25 November 2015] Cargill Feed and Nutrition confirmed that it has no plans to enter the animal protein space in Malaysia. Instead it will focus on working with and supporting its customers in the poultry, pork and swine industries. “We are here to meet our customers’ needs, and we are focused on the growth of their animals,” Beth Carlson, Managing Director, told Asian Agribiz. "We are moving away from focusing on the price of feed and instead looking at the technical support and farm management tips we can provide them,” she said. The company recently announced that it plans to invest in poultry production in the Philippines.
|Lay Hong’s net profit rises 36% on unit disposal gain|
[25 November 2015] Malaysian poultry integrator Lay Hong Bhd registered a 36% net profit rise to USD 2.0 million in the second quarter ended September 30, 2015 from gains on disposal of a subsidiary, it said. Revenue, meanwhile, slid a marginal 1.3% to USD 38.52 million from the same period last year. The company said in a statement that revenue from its integrated livestock farming segment for the two quarters remained at a similar level. Moving forward Lay Hong said the strengthening of the US dollar against the ringgit will have a serious impact on the group's profitability due to costs of major raw materials, especially corn and soybean.
|India proposes Blue Revolution to boost fisheries|
[25 November 2015] The Indian government has proposed a ‘Blue Revolution’ to boost the fisheries sector with an outlay of USD 452 million. “The scheme will cover inland fisheries, aquaculture, marine fisheries, deep sea fishing and all allied activities,” Union Agriculture Minister Radha Mohan Singh announced. According to him, the government is intent on harnessing all possibilities for intensive and integrated development of the fishery sector. The country’s fish production crossed 10 million tonnes in 2014-15 with export earnings of USD 5.51 billion.
|Antimicrobial stewardship vital in pig management|
[25 November 2015] Antimicrobial stewardship is emerging as a vital management tool in efforts to contain antimicrobial resistance and retain the efficacy of available agents stated Prof John Turnidge, Australian Commission on Safety and Quality in Health Care, at the Australian Pig Science Association (APSA), in Melbourne yesterday. Stewardship is more than producing and promulgating guidelines, rather it should support a program of audits and interventions, which will identify areas of suboptimum antimicrobial use and working with prescribers to improve use.
|Taiwanese meat company accused of using non-food grade ingredients|
[25 November 2015] A Taiwanese hot dog and ham production company based in Taipei has been accused of using non-food grade chemical ingredients in its products, the Taipei City Health Department announced. Health officials said the company, Tai Chuan Hot Dog and Ham Factory, was found with hot dogs, ham and bacon produced with sodium nitrite and nitrite. Prosecutors suggested the business wished to lower the costs of producing the meat by using non-food grade chemical ingredients and urged related government sectors to uphold food safety standards.
|Singapore recalls tainted Highway luncheon meat |
[24 November 2015] A batch of Highway brand canned pork luncheon meat was recalled after a fragment of a hypodermic needle was found in the product, the Agri-Food and Veterinary Authority of Singapore (AVA) said. The product has been removed from retailers’ shelves. Distributor, Hock Seng Food, explained that the fragment could have been from a needle that broke when the pig was vaccinated. It said that their supplier in France has been warned to tighten checks. The processing and packing plant in China has also added metal detectors as a precaution. It assured customers that other batches of the product are not affected.
|Century Pacific posts 22% hike in 9-month profit|
[24 November 2015] Century Pacific Food Inc, a Philippine company that produces processed fish, meat, and dairy products, posted a net profit of USD 31.9 million in the first nine months of this year, up 22% from the same period last year. The company credited the growth to higher local demand that boosted sales which reached USD 365.8 million, up 13% year-on-year. The company’s brands include Century Tuna, Argentina Corned Beef, 555 Sardines, Angel Milk and Birch Tree Milk. It exports tuna products for private labels overseas.
|Marel to acquire MPS|
[24 November 2015] Marel has agreed to acquire MPS meat processing systems for around USD 406 million on a debt and cash-free basis. MPS is a global leader in primary processing solutions for the meat industry. The two companies have a great strategic and cultural fit with complementary product portfolios and geographic presence. Arni Oddur Thordarson, Marel's CEO, said: “MPS is a great complementary fit with Marel and we have been partners in several projects in the meat industry around the globe. Together the companies are stronger and in the position to deliver full line solutions to meat processors around the world.”
|Australia blocks cattle station sale to Chinese investor|
[24 November 2015] Australia’s Trade Minister has criticised his government’s decision to block the sale of a huge cattle station to a Chinese investor, according to published reports. Shanghai Pengxin Group was bidding for S. Kidman & Co’s ranch properties, but Treasurer Scott Morrison said national interest and national security issues required the government to block the sale. Trade Minister Andrew Robb said the decision was politically driven and added that the sector needs foreign investment. Pengxin has been an aggressive buyer in both Australia and New Zealand, and is suing the New Zealand government over its decision to block a proposed purchase there earlier this year.
15th Biennial Conference of the Australian Pig Science Association
On-site report by CRAIGE ALLAN
[24 November 2015]
The Australian Pig Science Association (APSA) conference promotes interaction between scientists from different disciplines and from different countries, with particular emphasis on fostering the development of young scientists. With the theme ‘Manipulating Pig Production’ presentations centred on functional carbohydrates, impact of heat stress on the performance & health of pigs and meat quality.
Feed NSPs – classification and function
According to Prof Mingan Choct, University of New England, Australia, although crude fibre (CF) is used in feed formulation to set the fibre level in feed, it is not at all a reliable, let alone accurate indicator of the true fibre content of feed. For example, the CF content of soybean meal is about 5%, whereas the true fibre level is as high as 25%. He said that nutritionists in the future will need to move away from using CF in order to improve the precision of feed formulation for monogastric animals. This will require a comprehensive non starch polysaccharide (NSP) database for ingredients used in pig and poultry feed.
Nutritional strategies to alleviate heat stress in pigs
Prof. Frank Dunshea, University of Melbourne, Australia highlighted that pigs are comparatively less heat tolerant than other species of production animals. He said that management of heat stress requires multiple strategies, and recent research is improving the understanding of the application of nutritional strategies to ameliorate the effects of heat stress. In particular, the use of feed additives is an important, flexible and economical method to alleviate heat stress. Some specific examples include antioxidants, betaine and chromium.
Reducing pork eating quality fail rates
Boar taint is an issue facing the Australian pig industry. Karen Moore, Department of Agriculture and Food, Western Australia confirmed immunisation against gonadotrophin releasing factor is effective in eliminating boar taint and reduces pork quality fail rates by approximately 10%, compared to pork from entire male pigs.
|Thailand's livestock groups oppose TPP|
[23 November 2015] The Thai government is studying the impacts of joining the US-backed Trans-Pacific Partnership agreement (TPP). However, local livestock groups do not want Thailand to join TPP, citing severe negative effects on the livestock industry. Suthep Vongruen, President of Animal Husbandry Association of Thailand said that Thailand joining TPP may push livestock producers and feed makers (such as corn and soybean farmers) into bankruptcy because they cannot compete with the US, which is a major global livestock producer. Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz that if Thailand joins the TPP, unwanted chicken parts from the US will flood the Thai market and will lower chicken prices. “Ultimately it will affect live chicken prices in Thailand and farmers will operate at a loss. Consequently, farmers will stop raising chickens and then who will buy corn?”
|USDA will ask China to modify poultry ban|
[23 November 2015] USDA officials will again attempt to convince China to lift or modify a ban on US poultry at the upcoming meeting of the US-China Joint Commission on Commerce and Trade, US Agriculture Secretary Tom Vilsack told Reuters news agency. An outbreak of avian influenza last January prompted China and many other countries to ban US poultry imports. No bird flu has been detected in the US since June 17 but with the winter flu season approaching officials are worried about renewed outbreaks. The US wants China to switch to a regional basis for banning imports. Mr Vilsack said he didn’t expect the ban to be lifted at the JCCT but he hoped “over time to see a relaxation of that ban.”
|Purefoods’ income up on feed trade|
[23 November 2015] Philippine food group San Miguel Pure Foods Co Inc grew its nine-month net profit by 7% year-on-year to USD 6.2 million, driven by its animal feed businesses and branded consumer food. The company reported a 3% growth in revenue for the January to September period to USD 1.6 billion, while operating income expanded by 4% year-on-year to USD 95.6 million. Purefoods said strong revenues from the feeds and branded value-added businesses offset weaker sales in the poultry, meats and flour segments. Its agro-industrial businesses, consisting of feeds, poultry and Monterey meats, registered combined revenues of USD 1.1 billion, 3% higher than last year. Growth came largely from the feeds business.
Asohi addresses animal protein challenges in Indonesia
Onsite report by ARIEF FACHRUDIN
[23 November 2015]
The Indonesian Veterinary Drugs Association (Asohi) hosted a seminar in Jakarta on November 18 that focused on a number of issues related to the progress of the animal protein sector in the country.
Reliable data required for beef cattle industry
Director General of Livestock and Animal Husbandry, Muladno Basar explained that the beef fattening sector is dominated by feedlot companies with cattle imported from Australia while the breeding sector is dominated by small-scale farmers. In the processing segment, Dr Muladno said there are no international standard slaughterhouses and the sale of fresh warm beef is far higher than frozen beef. “Another big problem is cattle here have no identity. That is why the data on local cattle population is always debated. The same thing applies to beef consumption data,” he explained.
SPR program for 2016
Dr Muladno said the local cattle self-sufficiency program was terminated at the end 2014. It has been replaced with the cow oestrus synchronization and artificial insemination program to increase the local cattle population. “Starting next year, the policy is to develop small farmer centres (SPR),” he said. In SPR, around 500 farmers will be grouped in one organisation with one database, SOP and one-door business system. It will cover all livestock, with one SPR having a minimum of 1000 dairy and beef cattle, while for broiler, layer, duck and pig, it is 125,000 birds/cycle, 50,000 birds/cycle, 20,000 birds, and 1000 sows respectively.
Collaboration is important
Dr Muladno said that to improve the local beef industry, Indonesia has to think about collaboration rather than competition. "We have to collaborate with Australia because they have good cattle resources, knowhow and technology. Together we can target the global halal beef market,” he said. Dr Muladno said: “We are also open for collaborations with Brazil, India and Mexico.”
Broiler DOC supply & demand
Krissantono, Chairman of the Indonesian Poultry Breeding Companies Association, said in 2015 the supply of broiler DOC is around 48-50 million chicks/week, while demand is only around 37-40 million. In 2014 supply was around 42 million chicks/week and demand was only around 37 million. “The supply of GPS and PS in the country is quite high. We need accurate data to prevent over cutting of DOC supply,” he said. The Directorate General of Livestock & Animal Health and poultry breeding companies agreed to cull 6 million broiler PS. “Until now, 2 million broiler PS have been culled. If we trim too much, in 2017 we will have to import a lot of PS and imported PS is expensive,” he explained.
Bad year for many feed millers
The last 3-4 years saw many new local and foreign players enter the feed industry in Indonesia, said Sudirman FX, Chairman of the Indonesian Feed Millers Association (GPMT). However, in 2015 some stopped production, due to the economic slowdown, low purchasing power and broiler DOC oversupply. A feed industry executive told Asian Agribiz that there are four feedmills that are for sale. “Two are in discussions with international feed producers,” he informed.
Feed consumption in 2015 to reach 16mt
Total feed production capacity in Indonesia this year increased 1 million tonnes to 21 million tonnes because of the addition of two new feedmills. GPMT has 84 feedmills under its umbrella, said Mr Sudirman. He believes that this year national feed consumption will reach 16 million tonnes. In 2020, he said it is predicted that feed consumption in the country will reach 26 million tonnes. With this figure, the country will need around 13 million tonnes of corn for animal feed.
Feed consumption in 2016 projected to reach 17.5mt
Indonesian feed consumption in 2016 is projected to reach around 17.5 million tonnes. However, according to Mr Sudirman, this depends on currency and government policy. “So far, currency depreciation is at a high level. That is why, although the global price of corn and sbm is declining, we cannot enjoy the low price,” he said. Another important point is government policy. GPMT expects supportive policies from the government for the feed industry to grow.
Animal health products market to grow at 7-10% in 2016
The market for animal health products in Indonesia is predicted to reach USD 276 million this year. Of this figure, poultry biological & pharmaceutical products are predicted to reach around USD 129 million, while pig and cattle biological & pharmaceutical products at around USD 16 million and premixes at around USD 131 million. Irawati Fari, Chairman of the Indonesian Veterinary Drugs Association, said if the economy next year grows at 4.9%, livestock population at 5-8% and feed consumption at 7%, “we predict the market for animal health products will grow by 7-10%.”
|More energy needed for broiler breeders|
[20 November 2015] Broiler breeders today are different from the past due to genetics, Dr Craig Coon, Poultry Nutritionist and Professor at University of Arkansas told Asian Agribiz at the Novus Breeder Forum in Bangkok yesterday. In the past, people assumed that when broiler breeders got older and heavier, they gained fat, not muscle. However, broiler breeders today gain a tremendous amount of muscle and protein. “We have to feed broiler breeders more energy to take care of extra muscle and extra protein and if we don’t, we lose eggs.” Dr Craig said producers tend to underfeed energy to broiler breeders in the last part of production. He added that overfeeding protein in broiler breeders decreases fertility and hatchability.
|Cargill opens its largest feedmill in South Korea|
[20 November 2015] Cargill marked a significant milestone in South Korea with the official opening of its Agri Purina feedmill in Pyeongtaek, its largest plant to date. The 53,000 sq m facility has a capacity of 870,000 tonnes and produces poultry, ruminant, swine and pet food products marketed under the Purina and Nutrena brands. Dr Lee Bo Kyeun, South Korea country representative and President of Cargill Agri Purina Korea, said this investment focuses on delivering success. “The new feedmill will enable us to better serve our customers with advanced technology and high quality, safe animal feed.”
|Indian university develops Omega-3 chicken |
[20 November 2015] The Bhartiya Vidyapeeth Deemed University in Pune, India has developed Omega-3 chicken and is looking to promote it in different parts of the country. Principal Project Investigator PB Ghorpade said the healthier chicken with more than 300mg of Omega-3 per 200g is expected to retail well among health conscious consumers. “We have introduced Omega-3 into milk and clarified butter and expect the dairy sector to embrace the technology,” he said.
|Jollibee sets 2016 capex at over USD 221m|
[20 November 2015] Jollibee Foods Corp (JFC) has earmarked more than USD 221 million for its capital and expenditure in 2016 as it seeks to expand its presence in the international market. In a disclosure to the Philippine Stock Exchange, JFC said nearly three quarters of the total will be used for new stores, rehabilitation of existing stores and the expansion of its commissary. JFC CEO Ernesto Tanmantiong said the target is to open more than 300 stores next year.
|FAO helps Indonesia evaluate post-harvest fish loss |
[20 November 2015] Indonesia’s Ministry of Fisheries and Marine Affairs has formed a partnership with FAO to evaluate post-harvest fish loss (PHFL). Nilanto Perbowo from the ministry’s Research & Development Agency said the PHFL rate of the Indonesian fishery industry is about 30%, “even FAO estimates bigger than this at 35%.” He continued that through the partnership the ministry wants to evaluate losses during production, processing and marketing. The ministry recorded that last year’s PHFL value was about USD 2 billion.
|New vaccine facility in India|
[20 November 2015] Indian Immunologicals Limited (IIL) has set up a vaccine manufacturing facility in Hyderabad to manufacture vaccines against infectious diseases. “The USD 38 million facility is India’s largest facility for producing animal health formulations and will cater to domestic as well as international markets,” a statement from the company said. The new facility will produce animal health formulations for bovine, sheep and pets and anti-rabies vaccine for humans.
|Thaifoods Group’s Q4 earnings to remain weak|
[19 November 2015] Thailand’s Thaifoods Group’s (TFG) earnings is expected to remain depressed in Q4, hit by decrease in live chicken and pig prices and softening demand. Bualuang Securities expects TFG to post a loss of USD 8.3 million in Q4. Meanwhile, TFG posted a net loss of USD 7.6 million in Q3. Bualuang Securities expects TFG’s earnings to bounce back sharply next year, led by higher prices of chicken and increased domestic consumption energized by the government’s economic stimulus measure. “I think the Thai economy will rebound next year and consumption will increase.” Prasit Sujiravorakul, analyst at Bualuang Securities told Asian Agribiz. He predicts TFG’s profit will be in the region of USD 23.7 million in 2016.
|Cargill invests in new feedmill in Vietnam|
[19 November 2015] Cargill revealed plans yesterday, for a new USD 30 million feedmill in Vietnam's Binh Duong province and a USD 10 million agreement with Saigon International Terminals Vietnam (SITV) for dedicated grain and oilseeds warehousing facilities in Phu My. The feedmill in Binh Duong, Vietnam will have a total capacity of 260,000 metric tonnes per year and will become operational in the first half of 2017. It will bring Cargill’s total number of animal nutrition production facilities in Vietnam to 12.
|Philippine hog, poultry production up in Q3|
[19 November 2015] Despite the threat of El Niño, Philippine hog and poultry production both posted growths in Q3 this year, revealed the Philippine Statistical Authority (PSA). Hog output reached 500,110 tonnes, up 3.76% from the previous year with the PSA noting higher numbers of animals being slaughtered in key producing regions. Chicken production rose 8.77% to 393,520 tonnes during the review period, as industry expansion continues. Meanwhile, egg production was also up 9.91% year-on-year as many layer breeder and layer farms have recovered from the effects of Typhoon Ramassun which hit the country in July 2014. The typhoon caused massive damage to poultry producers in Central Luzon and Calabarzon, two of the major chicken and egg producing regions in the country.
|Sekar Bumi plans for three seafood processing plants in Indonesia|
[19 November 2015] Indonesian shrimp and fish processor and exporter Sekar Bumi will have three new processing plants in operation in 2016 and 2017 to meet growing demand for its products from the US, EU and locally. Two plants in Cikupa, Banten, will start operations in the first half of 2016. Another plant in Lamongan, East Java, will come on-stream in the second half of 2017. The company commissioned a new shrimp processing plant in Sidoarjo, East Java last month. It is able to produce 500 tonnes of frozen shrimp and 300 tonnes of processed seafood products a month. This has increased the company’s total frozen shrimp and processed seafood production capacity to 1500 tonnes and 500 tonnes a month, respectively. Harry Lukmito, President Director, revealed that it plans to launch ready-to-eat fish sausages soon.
|Cambodia, Vietnam report AI outbreaks|
[19 November 2015] Cambodia confirmed two recent outbreaks of H5N1 avian influenza (AI) in 8800 ducks, while Vietnam reported the H5N6 strain in a backyard poultry flock, according to reports posted by the World Organization for Animal Health (OIE). The outbreak in Cambodia was in Siem Reap province and in neighbouring Battambang province. In Vietnam, the outbreak was in Ca Mau province in the south.
|US shrimp entry line refusals reaches all time high|
[19 November 2015] The US Food and Drug Administration has refused a total of 377 entry lines of shrimp products between January and October this year for reasons related to banned antibiotics. According to Southern Shrimp Alliance (SSA) in USA, the refusals so far has exceeded the total number of such refusals between 2012 and 2014. “FDA’s refusals of shrimp entry line for reasons related to banned antibiotics in 2015 substantially exceeds the agency’s actions over the prior thirteen years,” SSA said. FDA has so far refused 33 shrimp imports from India until October this year, compared to a total of 27 in the previous three years combined.
|Pig Feed conference looks at enhancing performance through nutrition|
[18 November 2015] Boasting a strong technical program that addresses various themes to enhance pig performance through nutrition, Asian Agribiz’s 2016 Pig Feed Quality Conference has been set for March 31-April 1, 2016 in Bangkok, Thailand. Within the framework of ‘Science, trial data, solutions,’ this conference will be divided into four sessions that include: 1) Fine tuning piglet nutrition; 2) Feeding for superior performance; 3) Nutrition for improved health; and 4) Harnessing feed technology. Papers will detail the latest research with practical take-home messages to help pig producers and feed producers improve productivity and profit margins. Contact Omthong Tjoa or Sutasinee Lake at email@example.com for further details.
|CPF Q3 profit down 14%|
[18 November 2015] Charoen Pokphand Foods (CPF), Thailand’s largest meat and feed producer, reported a 14% drop in its Q3 net profit as falling meat prices and lower sales outweighed gains from asset sales and foreign exchange. The company said it expected its loss-making shrimp business to return to profit in 2016. Net profit in Q3 was USD 99.8 million. Meanwhile, sales were down 0.4% at USD 3.1 billion, of which 67% came from overseas operations. CPF is still looking to acquire assets overseas to offset weaker domestic demand and the impact from a weak economy, CEO Adirek Sripratak said in the statement. Mr Adirek said the company will focus on high-growth markets in Russia, Vietnam, the Philippine and India.
|Victam to promote safer additives, energy efficient machinery|
[18 November 2015] Victam Asia 2016, Southeast Asia’s largest exhibition of equipment and technology for the production and processing of animal feed, will be held at BITEC in Bangkok, Thailand, from March 29-31, 2016. It will be co-located with GRAPAS Asia 2016 and FIAAP Asia 2016. General Manager of Victam International BV, Henk van de Bunt told Asian Agribiz that visitors can expect to see new ways to produce feed and improved machinery. Visitors can also expect to meet experts in the feed industry. ”The focus will be on safer and natural additives and safe growth promoters. For machinery the focus will be on lower energy consumption.”
|India’s oilmeal exports plunge 94%|
[18 November 2015] India’s exports of oilmeal in October plunged a record 94.3% compared to the same month last year. Solvent Extractors’ Association of India in a statement said that India shipped only 13,716 tonnes of oilmeal this October. Soymeal, which forms the bulk of Indian oilmeal exports became uncompetitive in the international market as a 15% drop in output pushed up the prices. While the price of Indian soymeal in the export market is at USD 500/tonne, Argentina and Brazil are selling soymeal at USD 360-370/tonne prompting key Asian buyers to switch to South American suppliers.
|Indonesia’s CFC offers discounts to boost sales|
[18 November 2015] Indonesia’s Pioneerindo Gourmet International, the operator of California Fried Chicken (CFC) QSR, plans to launch CFC Boks and Fun Meal and offer price discounts to increase its sales in Q4. Kristanto Cendra, Finance Director, said the company targets its Q4 revenue to increase by 3-4% or around USD 28 million. In addition, during this last quarter, the company plans to open eight new outlets. In the last nine months, the company has opened 18 new outlets in western and eastern Indonesia. This year the company chose to open outlets at shopping centres, hospitals, airports and highway rest areas.
|Jollibee pursues expansion beyond Philippines |
[18 November 2015] Philippine fast food giant, Jollibee Food Corp (JFC), reported a profit of USD 26.7 million in Q3 this year, up 7.3% from the same period last year, as system wide sales rose 13.7% to USD 686.18 million. Sales in the Philippines grew 13.6%, while total sales of its foreign business rose 14.2%. In a statement, JFC CEO Ernesto Tanmantiong said sales growth during the period was higher than the first half of this year which stood at 8.9%, and that the company targets to open “at least 300 stores in 2015.” The company is pursuing international expansion. In October, it acquired a 40% stake in Smashburger, a US-based burger restaurant. Mr Tanmantiong said the company plans to expand into new markets like Malaysia, Oman, Canada, Italy and the UK.
|Monsanto Indonesia offers solutions to increase corn production|
[18 November 2015] Monsanto Indonesia has offered two solutions for the Indonesian government to increase national corn production next year. First, the company suggests the government plant biotech corn as this will increase output by 2.3 million tonnes. Second, the government should offer subsidies to corn farmers to be able to plant the biotech seed. Herry Kristanto, Corporate Engagement Leader, said: “Biotechnology presents a perfect solution to increase corn production."
Asian meat industry responds to WHO report
[17 November 2015]
The review by the World Health Organization’s (WHO) International Agency for Research on Cancer (IARC), released on October 26, said eating processed meats could cause colorectal cancer in humans, and red meat is also a likely cause of the disease. IARC defines processed meat as any meat that has been transformed through salting, curing, fermentation, smoking or other processes to enhance flavour or improve preservation. Each 50g portion of processed meat eaten daily increases the risk of colorectal cancer by 18%, the agency estimated. In this web special, Asian Agribiz presents the views of Asian producers.
Relative risk, not absolute risk
It is important to understand that this is a relative risk, not an absolute risk, cautioned Jonathan Schoenfeld, Assistant Professor at Harvard Medical School’s Department of Radiation Oncology. “The statistic doesn’t mean that eating 50g of processed meat daily causes you to have an 18% total chance of developing cancer – it means you’re 18% more likely to develop cancer relative to whatever your initial, absolute risk already was. For example, if you had a 10% risk of developing colon cancer to begin with, and you ate 50g of processed meat every day, your risk would increase by 18%.”
China processors say meat is necessary for health
China’s meat processors have angrily criticised the WHO report, saying that eating meat has always been part of human civilisation. Lin Jintao, Vice Marketing Manager at Shuanghui, China’s largest pork producer, said the report was “inhuman” and that “side effects should not be exaggerated.” Ma Xiaozhong, Head of the Jinhua Ham Industry Association said some concerned Jinhua customers had called, but nobody cancelled orders. Chinese consumers said they weren’t worried and would continue to buy processed and red meats. Several said they thought other scientific studies would come along to demonstrate the health value of eating meat, as happened with egg consumption in the US.
Regulators should test products says Malaysian producer
The WHO report linking processed meat products to cancer is not labelling sausages and bacon as unhealthy but the additives such as nitrites, preservatives and colouring that are used in the processing facility, said Dr Subramaniam Perumal of General Manager of Malaysia's Farm’s Best Food Industries. Sodium nitrite is a salt and an anti-oxidant used to cure meats such as ham, bacon and sausages. It also gives a nice red colour to the products, he said. “To modern food processing plants that are compliant to the Food Act 1983 – which states that the permissible level of nitrite in sausages is 200ppm – the health hazard issue does not arise,” he said. But there are processors, small-scale producers, which may not be following the directions set by the Ministry of Health and the Food Act.
Meat in Singapore meet stringent standards
Nitrite is used in the meat processing industry to prolong the shelf life of processed meat products, said Ronald Ang, Managing Director of Singapore-based meat retail outlet Meat the Butcher. “I think every government organisation in the world has regulations in place regarding the use of nitrites in processed food products. The Singapore government is strict with regulations on imported meats and locally processed meat. I am confident that the products sold in Singapore have high standards,” he told Asian Agribiz. He believes the issue that processed meat such as bacon, sausages and hot dogs is a cancer threat is hyped up. “Meat is important in our diet. We should take everything in moderation,” he said.
Additives could be cancer causing
Singapore’s Huber’s Butchery Executive Director Andre Huber said its raw sausages contain only minced meat, water, salt, herbs and spices that are then put into a “natural casing”. It could be the chemicals, additives, flavouring and fillers used by big commercial producers that are cancer causing, he said. “For hundreds and thousands of years, humans have processed meat to preserve them and never had such a widespread problem with cancer,” he added. Mr Huber said over 90% of the meat at its store does not contain growth hormones, and he does not think the IARC’s statement would affect sales.
Eating in moderation is important
An executive of Singapore’s Hu Zhen Long Foodstuff Trading that sells bak kwa said eating in moderation is important. “More and more people are getting cancer and eating meat is a factor, but to blame it all on barbecued meat is not quite correct. There are so many kinds of processed meat in the market, so it’s up to customers to distinguish for themselves,” said Roy Aw, owner and Director. “If it is cancer causing, I’ll be the first one to get cancer because I've literally been eating bak kwa every day, since I was young,” he added.
Processed meat scare won’t affect consumption
The report is not likely to make an impact on processed meat consumption in the Philippines, Edwin Chen, President of the Pork Producers Federation, told Asian Agribiz. Mr Chen, who is also part of the Bounty Fresh Group of Companies, added that people tend to dismiss warnings like these. “They say that if you eat [too much] of any food, there is a possibility of getting cancer. I think what is needed is to have a well-balanced diet and to take food and drink in moderation.” Another industry official agreed, telling Asian Agribiz that “in everything we do there is a risk involved, and eating too much of anything could understandably lead to health problems."
Nampa takes WHO report as turning point
Indonesia’s National Meat Processors Association (Nampa) has chosen not to react to the WHO report. Haniwar Syarif, Nampa Executive Director, told Asian Agribiz that the report is a turning point for the industry to actively promote and educate consumers that processed meat products are safe. “From the report, I learned two things – risk and moderation. If we talk about risk, beef consumption in Indonesia is only about 2 kg/capita and consumption of the processed product is only 10% of beef consumption. In this case, Indonesia needs to increase its animal protein consumption and processed meat products are a source,” Mr Haniwar said. “The second thing is moderation.”
No impact in Indian market
Since the meat consumed in India is predominantly fresh warm meat, the WHO report will have less or no impact in India. “In India, only around 1% of meat is processed compared to around 70% in other world markets,” Dr Robinson Abraham, Head of Department of Livestock Products Technology told Asian Agribiz. According to him, the predominance of fresh warm meat can be considered a blessing in disguise as there are no adverse impacts on sale of meat locally.
Processed meat sale in India is steady
Processed meat products are yet to gain market penetration in around 70% of India as the market is still maturing, Hari Vasudevan, General Manager (Sales) at Kannan Retail Group told Asian Agribiz. “However, in cities where processed meat products have gained acceptance there is no impact on sale,” he said. According to him, the current scenario proves that the WHO report is not taken seriously by the consumers. Stakeholders in the domestic red meat sector said that there is no notable impact in sale of red meat. ed.
Indian buffalo meat exports not likely to be affected
Buffalo meat exports from India worth USD 4.5 billion might not be affected since red meat is a staple in many countries. However, experts stated that the recent WHO report would prompt people to continue to move towards healthier eating. “It doesn’t mean that there will be any direct and immediate repercussion in the short term,” Priya Sud, Partner of Al-Noor Exports in New Delhi said. India is the world’s top exporter of buffalo meat and is expected to maintain its leading position in 2016, according to a USDA report.
Production is the problem not processing says Professor
Although meat consumption in India is on the rise, it is nowhere close to what the West consumes. The proportion of processed meat in India is small compared to most countries. According to Prof Ramanan Laxminarayan, Vice President for Research and Policy at the Public Health Foundation of India, the biggest health threat to the average Indian is likely to come from meat production rather than consumption of processed or red meat. "Meat production consumes vast quantities of water compared to other foods. The second impact is in terms of climate change. Third, meat impacts land availability. Finally, meat production in India is increasingly using more antibiotics.”
WHO to conduct follow-up study
A WHO official on November 10 confirmed that the organisation will stage a follow-up study to this controversial report. The official said that another panel will be looking at the results in the context of a healthy diet. It would lead to suggestions on the public of an average intake of red and processed meat. He continued that it was being established partly following criticisms of the WHO that it released a statement on the conclusions of an IARC monograph evaluating the potential carcinogenicity of the consumption of read and processed meat, without publishing the full background documentation.
|Tyson plans expanded brand promotion in China|
[16 November 2015] Tyson Food Inc is planning a new emphasis on e-commerce retail channels and will spend at least USD 16 million promoting its brand in China over the next year, according to China Daily. “There is a whole set of consumers doing their shopping on line,” the newspaper quoted Bill Mayer, Vice-president and General Manager of Tyson China, as saying. The company plans to strengthen cooperation with Yihaodian.com and other leading online sites. Tyson introduced 22 new frozen food items specially designed for the Chinese customer last summer, and Mayer said demand is growing for marinated and ready-to-eat convenience items.
|Philippines SMPFCI's revenue up 3%|
[16 November 2015] Philippine food and beverage leader San Miguel Pure Foods Co Inc (SMPFCI) posted a 3% growth in its consolidated revenues in the first three quarters of 2015, a company disclosure said. For January-September this year, its revenues hit USD 1.63 billion. SMPFCI attributed the growth to strong revenues in the feeds and branded value-added business, which offset weak sales in its poultry, meats and flour businesses. The company’s agro-industrial division, which comprise the feeds, poultry and meats businesses, posted combined revenues of USD 1.12 billion or about 69% of the total. SMPFCI said it expects to 'sustain its growth momentum' over the rest of the year.
|CJ’s processed foods & bio products record strong sales|
[16 November 2015] South Korea-based CJ CheilJedang reported a group operating profit of around USD 198 million for the July-September quarter, up 33% from the year-earlier period, on healthy sales of core processed foods and bio products. Its net profit soared 120% to USD 43.4 million, and sales grew 13% to USD 2.9 billion. Its Hetbahn packaged-rice line and Bibigo processed foods moved briskly. Strong sales of the amino acid methionine for livestock led growth in the bioscience business.
|China records four H7N9 infections for the season |
[16 November 2015] China has acknowledged two more H7N9 avian flu infections, both of which occurred in October, increasing the total in the early phase of what appears to be a fourth wave of infections to four. The cases, reported by China's National Health and Family Commission, were noted in a statement from Hong Kong's Centre for Health Protection (CHP).The agency said the cases were in Zhejiang province. A Hong Kong health department spokesman said in the statement that, based on earlier seasonal patterns, it's likely that avian influenza activity will increase in the coming winter months, requiring increased vigilance.
|Indonesia’s agrifood consumption projected to quadruple|
[16 November 2015] The real value of agrifood consumption in Indonesia is projected to quadruple between 2009 and 2050, on the back of expected sustained economic growth, population increase and continued urbanization, according to a report of the Australian Bureau of Agricultural and Resource Economics and Science (Abares). Between 2009 and 2050, the real value of beef consumption is projected to rise more than 14 times, and dairy tenfold. “In 2050, imports of beef are projected to reach USD 26 billion, compared with USD 500 million in 2009. Imports of dairy products are projected to be USD 7 billion in 2050, compared with USD 400 million in 2009,” said Karen Schneider, Abares Executive Director.
|MSD to acquire Harrisvaccines|
[16 November 2015] MSD Animal Health has signed an agreement to acquire Harrisvaccines Inc, a privately-held company that develops manufactures and sells vaccines for food production and companion animals. Harrisvaccines’ owns a unique RNA Particle technology as well as a versatile production platform that targets a wide range of viruses and bacteria. The transaction is expected to be finalised before the end of 2015.
|Indonesia has special ship to transport cattle|
[16 November 2015] Indonesia’s Ministry of Transportation recently released KM Camara Nusantara 1, a special ship to transport cattle from East Nusa Tenggara to Tanjung Perak seaport in Surabaya, East Java. Ignasius Jonan, Minister of Transportation, said: “It is the first livestock ship and was designed according to animal welfare standards. The ship has the capacity to transfer 500 cattle in one trip.” Next year the ministry plans to build six livestock ships.
|German scales maker opens office in Singapore|
[13 November 2015] Bizerba has opened a sales office in Singapore, signalling its commitment to the Asian market, and its focus in becoming a major player in the region. The company also has an office in Shanghai, China. “This office builds the platform for our next growth period, which is in Asia,” CEO Andreas Wilhelm Kraut told Asian Agribiz. “We have to see how we can do things differently. We have to learn the local habits, eating trends, ways of treating food, and combine this with our experience in other locations.”
|Philippine chicken imports up 16.8% in first nine months|
[13 November 2015] Data from the Philippine Department of Agriculture showed that Philippine chicken imports rose to over 144,898 tonnes, up 16.8% from the previous year. More than 82% of the total was made up of mechanically deboned meat (MDM), while leg quarters accounted for 15.5%. The rest was offal, rinds and fats, which along with MDM are used by the meat processing industry. The US continues to be the leading supplier of the chicken to the country, with a 37.9% share, followed by Brazil with 19.5% and the Netherlands with 19.2%.
|Shanghai sow seminar addresses antibiotics reduction |
[13 November 2015] The Sixth Chinese Sow Nutrition and Management Seminar kicked off yesterday in Shanghai with presentations on ways to reduce the use of antibiotics and other additives while maintaining efficiency. Antibiotic use has become a major issue for the industry, and hundreds of senior managers from major pig companies throughout China gathered for the two-day seminar. Thursday’s speakers included Dr Jan Merks of the Institute for Pig Genetics, who discussed ways of using breeding to reduce the need for antibiotics, and Jan Cortenbach, Chief Technical Officer for De Heus-Wellhope, who spoke on feed alternatives to pig antibiotics. The gathering was sponsored by China’s National Feed Engineering Technology Research Centre.
|Indonesia’s beef consumption to reach 2.56 kg/capita|
[13 November 2015] The Indonesian Beef Cattle Feedlotters Association (Apfindo) says the country’s beef consumption will be 2.56 kg/capita for 2015 and total beef demand may reach 653,000 tonnes, or 3.6 million heads of cattle. Local breeders are estimated to produce 406,000 tonnes or 2.3 million heads of cattle, so there will be a shortfall of 1.3 million cattle. Djoni Liano, Apfindo Executive Director said private companies need support and incentives to increase their business scale so meet growing demand.
|China's first shipment of live Aussie cattle arrive by air|
[13 November 2015] The first shipment of live beef cattle from Australia to China was flown in, but future shipments should not expect the same treatment. After years of negotiation, the two countries signed a feeder and cattle health protocol in September. Chongqing Hondo Food Development Co, imported 150 Angus steers from Australia in late October. Hondo is located in southwestern China, where it is hard to source high quality cattle, and is planning to take advantage of this opportunity. Optimists say the live trade could reach 1 million head a year.
|Investment in Indonesia’s fishery sector to reach USD7b|
[13 November 2015] Investment in the fishery sector in Indonesia is expected to reach USD 7 billion within the next five years. Susi Pudjiastuti, Minister of Fisheries and Marine Affairs, said to achieve this target the sector should have an economic growth of 7% or more so potential investors will be interested to invest. “To build a strong and sustainable fishery industry, we need new investments, focused on developing regions outside Java, Sumatera, Sulawesi and Bali,” she said.
|Oversupply in Philippines chicken meat market|
[12 November 2015] The high import volume of chicken in the Philippines has given rise to the misconception that there is not enough chicken in the local market. Philippine chicken imports rose to over 144,898 tonnes, up 16.8% from the previous year. This has encouraged new players in the local industry. However, Elias Jose Inciong, President of the United Broiler Raisers Association of the Philippines, told Asian Agribiz that this has led to oversupply, since the existing industry can already supply the chicken meat needs of the market.
|Kerala’s meat market worth USD 1.5 billion|
[12 November 2015] Despite constraints like lack of space for rearing cattle, Kerala state in India has become the leading meat consuming state in the country. Estimates from the State Animal Husbandry Department reveals that the value of meat consumed is about USD 1.5 million/year. “Beef is the most popular item in Kerala followed by chicken and pork and the consumption figure doesn’t include unaccounted sale of meat in rural areas,” the department stated. While large animals like cattle are transported from neighbouring states to Kerala for slaughtering, pigs are domestically reared and slaughtered.
|Indonesia’s food tech firm raises USD8m for growth|
[12 November 2015] Jakarta-based food discovery app Qraved has announced USD 8 million Series B financing co-led by Richmond Global Ventures and Gobi Partners, followed by GWC, Convergence Ventures, 500 Startups, Toivo Annus, and M&Y Partners. The company plans to use the funding to develop features in its core mobile and web app as well as ramp up marketing and promotional efforts. “My vision is for Qraved to become the exclusive platform for Indonesians to connect with food,” said Steven Kim, Qraved CEO. Since late 2014, Qraved has rapidly gained traction with more than 1 million monthly users in six months.
MSD Animal Health High Quality Pork Congress Chiang Mai, Thailand
On-site report by CRAIGE ALLAN
[12 November 2015]
The High Quality Pork Congress on November 9 and 10, organised by MSD Animal Health, bought together a wide range of local and international speakers and highlighted the essential steps to ensure high quality pork production. It served as a platform for the exchange of information among key producers and other industry stakeholders from around Asia. The first day of the Congress focused on consumers – choices, needs and market trends. The second day of the Congress focused on reproduction and the respiratory diseases, porcine reproductive and respiratory syndrome (PRRS) and porcine circovirus type 2 (PCV2).
MSD Animal Health committed to providing added-value
Pork producers need much more than to just control diseases said Narcisco Bento, Head of Global Swine Business Unit, MSD Animal Health. This is why it is important that MSD Animal Health brings new things that help our industry cope with change and consumer trends such as reducing antibiotic use and increasing animal welfare and food safety. If we want to be part of the future we have to work together to produce what the consumer wants. Mr Bento concluded that the company wants to be so much more than just a supplier, we want to be a trusted partner.
Global trends in the animal protein industry
Gordon Butland, G&S Agriconsultants gave a financial perspective of the global animal protein sector. The biggest problem the animal protein industry faces in Asia is that our price of corn is usually about double that of the US, he commented. He observed that while we often see that we need to produce 70% more food by 2050 to feed 9 million people, it is only 1.54% CAGR. "If your company is going to grow then you need to move from a processing platform to a sales and marketing platform, value added products and branding, and also consider acquisitions.
Philippines swine industry update
According to Dr Dante J. Palabrica, Director Pig and Poultry Operations, Universal Robina Corporation (URC), who manages their fully-integrated 25,000 sow operation, the Philippines is dominated by backyard farms that raise about 64% of pigs this year. URC has developed an effective nationwide distribution chain and sales network bypassing the middlemen. It sells its branded food products primarily to supermarkets, as well as directly to wholesalers, convenience stores, large scale trading companies and regional distributors.
Market access and consumer choice
Consumers are kings, so we need to think like consumers to understand their expectations, stressed Dr Rodrigo Santibanez, Global Market Access Lead, MSD Animal Health. When consumer’s make a choice they usually don’t factor in science, therefore perceptions are taking over. Dr Santibanez, admitted that the science is difficult to explain, but as an industry we are not putting enough effort into consumer perception. Let’s be part of the message and manage consumer’s expectations and influence their perceptions he concluded.
How does MSD Animal Health contribute to consumer market trends
John Walters, Regional Swine Marketing Manager, MSD Animal Health detailed market access initiatives to communicate with customers and consumers on how its products can help meet marketplace demands as well as create reasonable expectations for food production animals. He gave the example that the company believes that antibiotics to treat sick animals are needed, but the best approach is to treat disease by vaccination. Furthermore, MSD Animal Health’s IDAL (IntraDermal Application of Liquids) needle-free application for specific vaccines, prevents the food safety issue of broken needles in loins, as well as being animal and user friendly.
Economics of reproduction in the sow herd
Dr Derald Holtkamp, Associate Professor in the Department of Veterinary Diagnostics and Production Animal Medicine, Iowa State University asked the question, what is disease costing? The vet’s challenge is that the cost of interventions is known with a high certainty, while the benefits are variable and unpredictable. In the breeding herd about 95% of the costs are fixed or vary with the number of sows, implying that only around 5% of the costs vary by the number of pigs born alive or weaned. He emphasised that more pigs from the same number of sows means more revenue for very little added cost.
Maximising reproductive outcomes
A good mating starts in the farrowing room commented Miquel Collell, Global Technical Director Swine, MSD Animal Health. Sows must be weaned in optimum body condition score (score 3), as thin weaned sows tend to have lower ovulation, take longer to get into heat, require more repeated services and produce less piglets born. He suggested not to mate sows below score 2.5. Mr Collell introduced ReproPig Management System – a web-based platform to audit, evaluate economics and provide the training needed for farms. ReproPig identifies key areas of optimization and maximizes reproductive performances with the ReproPig product portfolio.
Practical use of reproductive hormones
Dr John Carr, Carrs Consulting emphasised two take-home messages. Firstly, get your gilt management right. Secondly, you should only cull a sow when you have a pregnant gilt available. This will decrease pigs/sow/year but will increase profits. Traditionally in Asia, sows and gilts are mated three times, but Dr Carr suggested a change in philosophy by moving to a single service. Reproduction (farrowing rate and litter size) is as good as multiple breeding, but requires less boars, allowing producers to increase selection pressure on boars and move genetic improvement into the finishing herd to select boars for FCR, carcass confirmation and meat quality.
Economics of PRRS infections
Dr Derald Holtkamp presented his 2011 assessment of the economic impact of PRRS in the US. Productivity losses were estimated at USD 664 million with a further USD 140 million for animal health costs and USD337 million for biosecurity and other related costs. The value of weaning a PRRS-negative pig was USD 2.61, even if it gets infected during the grow-out period, increasing to USD 4.90 if the piglet was kept negative all the way to market. US producers have favoured control of PRRS over elimination, particularly in pig-dense areas, he suggested PRRS elimination.
PRRS evolution in Asia
In the opinion of Dr Frederick Leung, Professor in Molecular Biotechnology, Hong Kong University, you cannot eliminate a virus globally, but it is important to keep pace with virus dynamics using phylogenetic tools in order to gain full knowledge regarding its evolution. Know thy enemies he stressed. PRRS is a rapidly-evolving virus. Viruses evolve by drift (by mutation) and shift (by recombination), which is why vaccines need to be updated. PRRS vaccines work if you use the correct vaccine.
Benefits of intradermal & needle free vaccination
According to Dr Rika Jolie, Global Technical Director - ResPig for MSD Animal Health, vaccination is effective and is the preferred method in the prevention/control of PRRS and PCV2. Traditionally, vaccines for both pathogens have been administered intramuscularly, however, intradermal vaccination is now being used overseas. Dr Jolie said benefits of intradermal vaccination include less stress and pain for pigs, improved welfare, no tissue damage and reduced transmission of diseases. Other advantages include a small injection volume (0.2mL), no needle-stick injuries for operators, and less maternally-derived antibody interference. Intradermal vaccination via the IDAL needle free injector is now used for PRRS control in Europe, and has become available in Thailand, the Philippines and other Asian countries.
|Thailand wants Japan to raise pork import quota|
[11 November 2015] A Thai trade delegation that will visit Japan at the end of November will urge Japan to raise its import quotas for cooked pork. Sirinart Chaimun, director-general of the Trade Negotiations Department, said Thailand would ask Japan to raise imports from the current 1200 tonnes to 12,000 tonnes annually. The Bangkok Post report that Thailand now ships 6400 tonnes annually and the non-quota exports incur a tax of 20%.
|India maintains high corn price|
[11 November 2015] The price of India corn is expected to remain high as demand remains buoyant, even as arrivals increase later this month. For the week ending November 6, the maize prices on NCDEX were up for all contracts. In the US however, prices have come down as harvest is fast paced and the export is a little slow. "If one looks at an average world price which is averaging at USD 173/MT on FOB basis, corn could be delivered to the Southeast Asia region at close to USD 209/MT. Indian corn on the side will be delivered to the Southeast Asia region at USD 265/MT, 26% higher than the world average price," said Amit Sachdev, USGC Representative for India, Bangladesh and Sri Lanka.
Asian Agribiz regional dairy update
[11 November 2015]
CEO says Fonterra committed to China strategy
Fonterra’s chief executive says the company will stay the course in China despite slower growth and lower prices, according to China Daily. CEO Theo Spierings said food services and consumer goods will be new growth areas for the company in China, in addition to boosting its farming business in cooperation with the local dairy industry. Mr Spierings said Fonterra also wants to expand online sales in China. Fonterra opened its second Chinese dairy application centre recently in Guangzhou, the capital of Guangdong Province.
Philippines to remain reliant on imported dairy products
Philippine milk imports will likely reach 1.8 million tonnes this year, up 3.4% from 2014, a report by the USDA said. In its latest Global Agricultural Information Network (GAIN) report, the USDA said the increase is “due to rapid expansion of the food processing industry and large global dairy supplies in 2015.” New Zealand, the US and Australia are the top three suppliers, accounting for 30%, 24% and 7%, respectively, of the country’s total imports. The report noted that the Philippines produces less than 1% of its annual requirement, although government data show that dairy production is on the rise. This year, the Philippine National Dairy Authority projects local production will go up to 21,000 tonnes.
Pengxin disappointed twice in NZ dairy bids
Shanghai Pengxin Group has withdrawn its bid for a New Zealand dairy company, while at the same time appealing to the government’s decision to block the acquisition of another. In a posting on its website, Pengxin said its subsidiary Dakang New Zealand withdrew a USD 29 million bid for 3,300 hectares of land and 3,900 milking cows owned by Pinny Farms because it was “not confident of a favourable outcome” from a government review. In the second case, the group is appealing the government’s decision to deny Pengxin’s bid to buy Lochinver Farms, a 13,800-hectare sheep and cattle operation, which Pengxin was planning to partially convert to dairy use.
|India imports non GMO soymeal |
[09 November 2015] India, once a major exporter of soymeal, has entered into contracts to import soymeal as international prices have dropped sharply below domestic rates. Indian soymeal is selling at over USD 531/tonne locally. “Even though the country has a 15% tax on soymeal imports, imported soymeal is still cheaper at USD 478, delivered on the ports,” traders said. Most imports are non-GMO from China as India still has restrictions on GMO products.
|QL counts on growing Asian food demand to drive its expansion|
[09 November 2015] QL Resource Bhd plans to increase its capital expenditure over the next two years as it bets on Asian food demand to drive its expansion. The company targets to spend about USD 58 million in the year ending March 2016, USD 70 million in 2017 and USD 81 in 2018, The Edge quoted founder and Managing Director Chia Song Kun as saying. He said the funds will be used to expand its poultry farms, fishing boats and factories. “We have been a fast-growing company. We still have a lot of capital expenditure,” he said. QL has grown in Vietnam and Indonesia in recent years, taking advantage of rising incomes. Earnings from overseas operations may account for a fifth of the company’s profits in three to five years, compared with 10% now, he said.
|Cargill opens new chick facility in China|
[09 November 2015] Cargill has opened a new hatching facility at its integrated chicken production and processing complex in central China’s Anhui Province. The new facility, located in Bantazhen or Half Tower Village, about 70 km north of Nanjing, is equipped with 10 HatchBrood units that provide temperature control, plenty of space and access to light, heat and water. Cargill’s complex has the capacity to produce 25 million chicks per year, with eventual expansion planned to 65 million chicks per year.
|Vietnam outlines food safety goals|
[09 November 2015] Vietnam's Ministry of Agriculture and Rural Development (Mard) said it plans to work with relevant agencies to examine and ensure food safety. Minister Cao Duc Phat urged localities to form safe food supply chains in cities like Hanoi and Ho Chi Minh City. Mard is implementing a food safety and hygiene campaign until February 2016 with the main aim of preventing the use of banned agents in livestock farming. Inspections during January-September showed that the use of banned substances was on the rise. Some 1.01% of the seafood samples taken in the period were found to contain higher chemical and antibiotic residues than permissible levels. Some 7.6% of the meat samples had antibiotics content that was higher than allowed.
|Burger King to expand operations in South India|
[09 November 2015] American QSR chain Burger King, aims at opening more outlets in South India. The restaurant chain recently opened its 32nd outlet in Hyderabad and is in the process of opening three more outlets in the city. The only other Burger King outlet in South India is in Bangalore. “We want to expand our footprint across the southern region of India and have plans to enter Chennai shortly,” Rajeev Varman, Chief Executive Officer of Burger King India said.
|Malaysia's Lay Hong closer to sealing foreign deals|
[06 November 2015] Malaysia’s Lay Hong Bhd said its planned joint venture projects overseas may be sealed in less than two months. Lay Hong said this in a written reply to the local stock exchange’s query on unusual market activity. Its share prices jumped 20% to USD 1.53 early this week. “Lay Hong is in the midst of discussions and negotiations with two foreign groups on taking a strategic investment stake in the company and also a possible JV to invest in integrated layer farming and broiler processing locally and overseas. The company expects to conclude and execute definitive agreements in less than two months,” the company said.
|Indonesia to lead Asian shrimp recovery|
[06 November 2015] Global farmed shrimp production is expected to fully recover from EMS and continue to grow in the next few years, according to the annual survey conducted by the Global Aquaculture Alliance (GAA). Within Asia, GAA said Indonesia will experience the most dramatic growth. Indonesian shrimp production is expected to shoot up and continue growing from slightly above 300,000 tonnes in 2013 to about 800,000 tonnes in 2017. Similar patterns are expected in India, Thailand, Bangladesh, Malaysia, the Philippines and Taiwan albeit on a smaller scale, with more ups and downs expected in China and Vietnam.
|DBS raises Japfa target price to 90 cents|
[06 November 2015] DBS Vickers has raised its target price on Japfa Ltd to 90 cents from 46 cents following better than expected Q3 earnings and an improving outlook. Japfa reported Q3 2015 core earnings of USD 14.1 million, which beat expectations of around USD 7.4-10.1 million. This brings its nine-months 2015 core earnings to USD 30 million. The growth was driven by better performance of its Japfa Comfeed division. The company was also able to regain pricing power in its other businesses like DOC in Indonesia as well as raw milk prices in China. Ben Santoso, DBS Analyst, said: “Japfa intends to double its dairy farm production capacity in China by constructing another five farm hubs in Inner Mongolia.”
|Norway hopes to double seafood exports to India|
[06 November 2015] Norway, the world’s second largest seafood exporting country is expected to leverage its export market by doubling seafood exports to India. “We want to achieve this in the next few years and have asked the Indian government to drop the 30% import duty on seafood imports,” said Terje E Martinussen, Managing Director of Norwegian Seafood Council during his recent visit to India. Norway exported seafood worth USD 4 million to India in 2014.
|South Korea resumes import of US poultry|
[06 November 2015] South Korea will resume importing chickens from the US this month as no new outbreaks of bird flu have been reported in recent months, the government said Wednesday. Yonhap News reported that the farm ministry has revised regions subject to restrictions and took both the US and Canada off its import ban list. The country started to ban imports of all meats from chickens and ducks, as well as other birds, after the US and Canada reported outbreaks of the virulent H5N8 and H5N2 strains of avian influenza last year. Last year, South Korea imported 66,780 tons of chicken meat from the US.
|El Toro opens online beef sales in Hong Kong|
[06 November 2015] Argentine online butchery El Toro Limited announced recently that it has opened an office in Hong Kong, the first in the city to offer door-to-door delivery of Argentine premium chilled beef from grass fed cattle. Hernan Castro, Co-founder, said: "We're bringing the finest beef from Argentina to meet the demand from discerning Hong Kong customers.” Mercedes Landa, another Co-founder, added: “We will use the Hong Kong office as our headquarters in Asia. We are also studying the possibility of selling our high quality Argentine beef to local restaurants.” El Toro offers prime beef from cattle raised in La Pampa, one of the best known cattle producing regions in South America, where the animals feed entirely on natural grass.
|Malaysian egg farms benefit from SGD appreciation |
[05 November 2015] Shares of egg producers Huat Lai Resources Bhd and Teo Seng Capital Bhd on Bursa Malaysia gained as the Singapore dollar appreciated against the Malaysian ringgit. Huat Lai’s shares rose 10.53% to reach a high of MYR 4.20 while Teo Seng’s shares rose 0.6% to close at MYR 1.69. According to Inter-Pacific Research, Huat Lai is the largest Malaysian exporter of eggs to Singapore, while Teo Seng is the second largest. Huat Lai has a capacity of 3.6 million eggs per day and Teo Seng has a 2.7 million eggs per day. “Our reading is Huat Lai and Teo Seng are racing for market share while QL Resources Bhd and Lay Hong Bhd are expanding at a slower pace,” said a market analyst.
|Hong Kong to import eggs from Thailand|
[05 November 2015] Eggs from Thailand will once again be exported to Hong Kong after many years on the banned list. The new import allowance measure by Hong Kong will take effect on December 5, 2015. Apiradi Tantraporn, Thailand’s Commerce Minister said Thai eggs have overtaken rivals such as China, Japan, Malaysia and the Ukraine, which have not yet received approval to export eggs to Hong Kong. “Thai eggs should enjoy a competitive edge over the US and the EU because of the closer distance and cheaper logistics cost,” she said.
|India’s soybean output declines|
[05 November 2015] India’s soybean output is likely to drop by 15.3% compared to last year. Laxmichand Aggarwal, President of The Central Organisation for Oil Industry and Trade said that the country is expected to produce 7.2 million tonnes in 2015. “This is due to erratic rainfall in Maharashtra and Madhya Pradesh states, which account for 85% of India’s total soybean production,” he said. According to him, this could impact India’s ability to import soymeal.
|Skretting launches aqua hatchery feeds in Indonesia|
[05 November 2015] Skretting launched three aqua hatchery feeds namely PL, Gemma Wean and Gemma Diamond last week at Indo Aqua expo in Jakarta. Fauzan Bahri, Senior Sales Executive of Skretting for Indonesia & Malaysia, told Asian Agribiz that the feeds, which are imported from Skretting’s production facility in France, are microcapsuled, contain high protein and processed through low temperature extrusion. "Indonesia is one of the largest producers of shrimp and fish in the world. We want to contribute to the development of Indonesia’s aquaculture industry by providing high quality hatchery feeds,” said Mr Fauzan.
|MPEDA alerts shrimp farmers on EHP|
[05 November 2015] India’s Marine Products Export Development Authority (MPEDA) has alerted Indian shrimp farmers on the spread of Enterocytozoon Hepatopenaei (EHP), a micro sporedean disease. “The disease has been reported in the coastal districts of Andhra Pradesh state and is causing losses to farmers,” S Kandan, MPEDA’s Deputy Director for Aquaculture said. Presence of EHP can reduce the weight of shrimp and farmers have been alerted to adopt preventive measures. Surveillance teams have also been formed to collect water and shrimp samples from major aquaculture areas.
|H5N2 affects chickens and ducks in Taiwan|
[05 November 2015] Highly pathogenic H5N2 has hit four farms and an abattoir housing more than 36,000 poultry in Taiwan, the World Organization for Animal Health (OIE) noted late last week. The four affected farms include two neighbouring duck holdings in Yunlin County in the west and a chicken farm in nearby Changhua County, as well as a duck farm in Pingtung County in the south. The farms had flocks ranging from 3,274 to 22,000 poultry. The affected abattoir is in Taitung County in the southern part of the island. It held 750 chickens. Taiwan has battled a host of avian flu outbreaks this year caused by H5N2 and H5N8. Yunlin has been one of the hardest-hit counties.
|InVivo acquires Indonesian feed miller Welgro|
[04 November 2015] InVivo NSA has acquired Indonesian feed milling company Welgro, confirming its ambition to grow in Asia and strengthen its presence in the layer sector. The company is now consolidating its position with respects to this acquisition. Welgro is not only recognised for the quality of its products, but also its strong ‘Gelang Merah’ brand. Alain Symoens, Country Manager of InVivo Indonesia, told Asian Agribiz that in the future it wants to focus on layer feed production where many independent producers still exist. “I think layer farmers here will stay independent. With our expertise we believe we have the capacity to provide nutritional value within the layer feed market,” said Mr Symoens.
|Vietnam seafood fails to reach 2015 export revenue targets|
[04 November 2015] High production costs, quality concerns and unhealthy competition are keeping the Vietnamese seafood sector behind its target of USD 8 billion in export revenue, the Vietnam Association of Seafood Exporters and Producers (Vasep) said. The sector is forecast to rake in only USD 6.6 billion from exports in 2015. Vasep added that catfish growers are experiencing the most hardship. While catfish is one of the export staples, the fish growers in the Mekong Delta are unable to find buyers, prompting catfish processors to cut production and temporarily lay off employees. Vietnam’s catfish export sector only earned USD 1.15 billion in the first nine month of this year, down 9.3% from a year earlier, according to Vasep.
|DA reassures Filipinos of enough meat for the holidays|
[04 November 2015] Philippine Agriculture Secretary Proceso Alcala reassured Filipinos that there is enough pork and chicken for the coming Christmas holidays despite the damage wrought by Typhoon Koppu to Central Luzon last month. The region is the leading producer of pork and chicken in the country. Addressing supply fears, Mr Alcala said he does not foresee any price problems in the coming weeks. While Typhoon Koppu was reportedly the worst typhoon for the country yet this year, its effect on the livestock sector was minimal compared to that of Typhoon Ramassun which severely affected livestock, particularly chicken, production in the Q3 of 2014.
|Thai CPF commits to non-discriminatory principles|
[04 November 2015] Charoen Pokphand Foods (CPF) has underlined its commitment to migrant workers – especially those from Cambodia and Myanmar who help drive the Thai economy, promising fair pay and practices for all. The company employs more than 3400 Cambodians work at its processing plants in Saraburi and Nakhon Ratchasima. CPF is aware of the indispensability of the migrant workers, said Senior Vice President Suchart Sitthichai, who manages the Nakhon Ratchasima processing plant. He said the company adhered to non-discriminatory principles, in line with international standards that denounce all forms of exploitation – child labour, forced labour and human trafficking. All the Cambodian workers are directly hired by CPF, with help from the Cambodian government.
|Indonesia prepares lands for cattle breeding|
[04 November 2015] Indonesia’s Ministry of Agriculture has prepared around 350,000ha of land in Kalimantan, Sulawesi and Papua for investors who are interested to invest in cattle breeding. Muladno Basar, Director General of Livestock and Animal Health, said the directorate is ready to help and facilitate investors interested in the sector, especially on things related to regulations. “So far we have met 20 potential investors who are keen to develop cattle breeding in the regions,” Dr Muladno said.
|Kuwait lifts ban on Indian poultry products|
[04 November 2015] Kuwait has lifted the ban on import of poultry products from India. Public Authority of Agriculture Affairs and Fish Resources of Kuwait said the decision to lift the ban followed the declaration by the International Organisation for Animal Health that India is free from highly pathogenic avian influenza, H5N8.
|Suguna starts poultry institute in India|
[03 November 2015] India’s leading poultry company Suguna Foods Pvt Ltd has started a poultry institute in Udumalpet in Tamil Nadu offering a one-year diploma program in Broiler Breeder Management and Broiler Breeder Production. Speaking to Asian Agribiz, GB Sundararajan, Managing Director of the company said that Suguna Institute of Poultry Management (SIPM) will provide hands on training to students at Suguna’s hatchery unit, feedmills, processing plant, broiler and breeder farms and laboratories. “This will help address the skilled manpower shortage in the industry and SIPM is one of a few to offer specialised courses,” he said.
|Japfa records ‘best performance’ since listing|
[03 November 2015] Indonesia agricultural conglomerate Japfa Ltd’s 3Q earnings fell 26% to USD 8 million, in what the agri-food company described as its best performance since listing. Revenue slipped 11% to USD 695 million, mainly due to a decrease in revenue from its Indonesia operations in the animal protein and consumer food segments. This stemmed from a weaker rupiah against the US dollar. The group also recorded foreign exchange adjustment losses of USD 28.9 million, compared with USD 3.3 million last year. This was also partially offset by an increase in revenue from the Vietnam operations in the animal protein business, as well as dairy operations in China.
|China restores pork import from US, Canadian plants|
[03 November 2015] China has restored permission to import pork produced after October 16, 2015 from 28 meatpacking plants and cold storage warehouses in Canada and the US, according to a posting by AQSIQ, China’s quarantine authority. China prohibits ractopamine, a drug used to help pigs gain muscle, and pork producers were banned from exporting to China unless they could prove that their pork was ractopamine-free. AQSIQ listed the facilities – 14 US pork producers, eight US warehouses and six Canadian facilities – by plant number on its website. A number of US producers had previously qualified to export pork to China under the ractopamine-free protocol, including several operated by Smithfield, which is owned by China-controlled WH Group.
|Thai Union aims for complete traceability by 2020|
[03 November 2015] Thai Union Group, the world’s largest tuna canner, has stopped receiving supplies from about 1200 fishing boats in Thailand over the past one to two years as part of its strictly-enforced code for responsible sourcing and conduct. “Our mission is not only to be the largest company, but also to be the most trusted seafood leader because our stakeholders need a trusted company,” Thiraphong Chansiri, President and CEO, said. Darian McBain, Director of Sustainable Development, said the group has set a target to achieve 100% “from catch-to-consumption” traceability in all of its seafood products by 2020.
|Feedmill could raise production of Bali farmers|
[03 November 2015] The local government in Bali, Indonesia has revealed its interest to build a feedmill in Bangli regency to help local farmers. According to the local Animal Husbandry and Health Agency, the province has around 550,000 heads of beef cattle, 1 million pigs, 8 million broilers, 4 million layers and 700,000 ducks. Putu Sumantra, Head of the agency, said the feedmill will help farmers increase production and cost efficiency. “We have encouraged local businessmen to realise the plan,” he said.
|KFC Thailand revamps its stores|
[03 November 2015] KFC Thailand said it is revamping its stores, starting with the Future Park Rangsit branch, to create a new experience of innovation and design, aiming to become a new hangout for every age group. Waewkanee Assoratgoon, General Manager, said service has been improved to offer customers quick attention. The ‘Speed Up Ordering Process’ system allows KFC to service 83 customers per hour, while the current system can only serve 41 customers. “The new concept responds to the new lifestyle of customers,” she added.
|Indonesia plans to set soybean buying price|
[02 November 2015] Indonesia’s Ministry of Agriculture plans to set the buying price (HBP) for soybean to maintain price stability. Hasil Sembiring, Director General of Food Crops, said the zero import tariff on soybean has impacted the price of domestic soybean. “At the moment the farm-gate price is around USD 0.29-0.36 per kg. If this situation persists, farmers will stop planting soybean,” he said. “We have discussed this plan, plus import tariff for soybean, with the Ministry of Trade. We recommend the HBP at USD 0.62/kg and 10% for the import tariff.” According to the National Statistic Agency data, soybean production in 2015 is predicted to reach 998,866 tonnes, or 5% lower than the target of 1.2 million tonnes.
|Malaysia's MFM to expand poultry integration|
[02 November 2015] Malayan Flour Mills Bhd (MFM) wants to acquire 2.96% and 17.55% of the equity interest in Dindings Poultry Processing Sdn Bhd and Dindings Soya and Multifeeds Sdn Bhd (DSM) respectively, from the Perak State Agricultural Development Corp (PSADC) for a combined USD 1.95 million. This acquisition will see MFM’s stake increasing to 97.7%, from 94.74%, while its stake in DSM will increase to 87.76%, from 70.21%. MFM said the proposed acquisitions will facilitate the group’s expansion of its poultry integration business. It expects the transactions to be completed in the first quarter of 2016.
|Burger King opens first store in Mongolia|
[02 November 2015] Burger King recently opened its first store in sparsely populated Mongolia. The QSR chain partnered with Mongolian franchisee, Max Group, one of the country’s largest conglomerates, engaged in mining, food and beverage, agriculture and real estate. Ganbaatar Dagvadorj, Max Group President, said it plans to open 10 Burger King stores in Ulaanbaatar and then expand elsewhere in the country. “By bringing Burger King here, we are providing employment,” Ganbaatar said.
EHP may pose bigger risk than EMS
[02 November 2015] New measures to control the early mortality syndrome (EMS) which devastated Asia's shrimp industry in recent years have been effective, an executive of Thailand’s Charoen Pokphand Foods said. However, the parasite Enterocytozoon hepatopenaei (EHP) may poses a bigger risk, said Robins McIntosh, Senior Vice President at the company. The biggest difference between the diseases is that EMS typically kills shrimp while EHP causes them to grow slowly and vary in size. He said EHP is a tiny fungus related spore that’s “very resistant to the environment and to chlorination. EHP requires clean, specially disinfected hatcheries, clean ponds and clean broodstocks. This is not easy on a large scale,” Mr McIntosh said.
|Myanmar’s fisheries industry learns food safety|
[02 November 2015] The European Union recently held a Good Aquaculture Practices Compliance and Traceability training in Yangon, Myanmar, which was aimed to promote food safety procedures and monitor food control compliance by producers and exporters of aquaculture fishery products. Win Kyaing, General Secretary of Myanmar Fisheries Federation, said the training was a great opportunity to improve Myanmar's fishery sector according to international food safety and hygiene standards. “Our product quality will improve and we can export globally.”
Asian Agribiz regional dairy update
[02 November 2015]
Fukushima dairy farmers to restart production
Dairy farmers who were forced to suspend business following the 2011 nuclear accident in Japan’s Fukushima plan to restart milk shipments as early as this year, with a new large-scale stock farm completed in the prefecture. The stock farm, with 580 cows, is expected to become a foothold for rebuilding the prefecture’s dairy industry. It is operated by a company established jointly by five dairy farmers. The company aims to produce 5000 tonnes of raw milk annually. Of the 76 dairy farmers that suspended their operations only 13 have restarted their business. Annual production of raw milk in the prefecture remains sluggish at around 80,000 tonnes, down 20% from before the disaster.
Polish dairy company to tap into Indonesian market
A number of Polish companies, ranging from those in the energy sector to food and beverage, are looking to tap into the Indonesian market. Bakoma aims to grab a slice of the country’s market for dairy products, particularly yogurt. “We’d like to get into this market and extend our sales here. We’re also considering producing here in the future,” said Piotr Komorowski, Bakoma CEO. According to Mr Komorowski, Indonesia has promising market potential. Indonesia’s annual household consumption of dairy products rose to 313 ounces/capita last year from only 209 ounces in 2013.
TH Group invests in dairy farm and processing in Moscow
Vietnam’s leading milk suppliers TH Group will invest USD 2.7 billion in a cow breeding and dairy processing facility in Moscow. The project is part of an agreement signed between TH Group’s Chairman Thai Huong and visiting Governor of Moscow Oblast Andrei Vorobyov. The project will be launched next April and the first batch of TH milk in Russia will be in the market by mid-2017. Once completed, the 140,000ha facility is estimated to house 350,000 cows and have a total capacity of processing 5900 tonnes of fresh milk per day or nearly 1.8 million tonnes per year. The project will similarly be carried out with the group’s central Nghe An Province-based feeding farm, recognised as Asia’s largest hi-tech farm.
US to ship dairy cattle to Vietnam late November
The Port of Olympia in Washington, US, is set to ship 1400 head of dairy cattle to Vietnam late November. Before the cows are shipped, they will spend 28 days in quarantine at a US Department of Agriculture-approved farm. Once loaded, the voyage is expected to take two weeks. A veterinarian will travel with the livestock. “The USDA has vetted all parts of this supply chain to ensure the most humane handling of the animals, and the port has taken the appropriate measures to alleviate environmental concerns,” the port said in a news release.
Milk ingredients market to grow on demand for protein-rich food
The milk ingredients market is expected grow in the coming years due to rising demand for protein-rich food products among consumers, said a report from Persistence Market Research. Milk ingredients include milk powder, casein and caseinates, milk protein concentrates and isolates. Milk powder is expected to be the dominating segment, followed by casein and caseinates. Milk powder is seen to contribute maximum revenue during the forecast period owing to the rising baby boomer population and a growing pharmaceutical industry. Asia Pacific is seen to experience the highest growth in the coming years owing to consumer awareness of specialty nutrition.
|Indon feedmillers in dire straits on vague corn import policy|
[30 October 2015] At the moment around 200,000 tonnes of imported corn is still being held at the Cigading port in Banten province. An industry player told Asian Agribiz that the corn cannot be unloaded due to the ‘unclear’ policy of the Ministry of Agriculture. “Feed millers who purchased the corn now have to bear around USD 2.2 million for demurrage cost.” Intan Mustika, Purchasing & Nutritionist of Bogor Eco Farming, told Asian Agribiz that the price of local corn has skyrocketed to USD 0.31/kg. “Furthermore, it’s not easy to get local corn due to limited supply, increasing price and logistics. The government has yet to release the new import quota,” she said.
|Haze hits chicken farm in Thailand’s Satun|
[30 October 2015] A chicken farm in Satun province, Thailand, which houses up to 70,000 hens, has opted to prematurely sell its hens before the haze totally ruins its business. Owner Wassana Noodang said the hens consume less and become less active. “Air ventilators and water sprinklers have failed to improve the situation.” She said premature sale means a 40% loss, but if all the hens die, her loss would rise to 100%. She noted that the haze occurs too often and is beyond control. “Artificial rain may help,” she said.
|Pakistan to start meat and dairy exports to Malaysia|
[30 October 2015] Four meat and dairy export companies from Pakistan will start exports to Malaysia following approval from Malaysia’s Department of Veterinary Services. The Trade Development Authority of Pakistan in a statement said that in April 2015 a delegation from Malaysia inspected seven meat and dairy exporters from Pakistan and shortlisted four companies. “The companies will export products like cattle and buffalo meat, dairy products, edible gelatin and pharmaceutical gelatin,” the statement said and added that it is an important milestone for Pakistani meat and dairy exporters.
|Thailand’s TVO eyes soy markets in neighbouring countries|
[30 October 2015] Thai Vegetable Oil Plc (TVO) will set up a manufacturing plant in neighbouring countries if their markets for soybean meal, cooking oil and oilseeds show bright prospects. “We are conducting a feasibility study that should be finalised by the second half of next year before making a decision on investment,” said Witoon Suewatanakul, TVO Managing Director. The company plans to ship soybean meal (SBM) to animal feed producers in Myanmar, Laos and Cambodia soon.
|Indian QSR market to reach USD 3.8 billion by 2020|
[30 October 2015] The Indian quick service restaurant (QSR) market is expected to touch USD 3.8 billion by 2020 from USD 1.3 billion currently, according to analysis done by the Associated Chambers of Commerce & Industry of India, Assocham. “The expanding middle class, urbanisation and better logistics are the main reasons for expansion of the QSR market in India,” the report said. Entry of national and international players in this sector has resulted in increased activity in tier-2 and tier-3 cities as well. “There are more than 120 brands with more than 4,000 outlets spread across various cities in India,” the report added.
|Vietnam's feed additives market to reach USD 160.5m by 2022|
[30 October 2015] Vietnam’s animal feed additives market is expected to reach USD 160.5 million by 2022. Increasing per capita meat consumption is seen as a major factor driving the feed additive market over the next seven years, said a report by market research and consulting company Grand View Research. Antibiotics emerged as the leading product segment and accounted for over 36% of total market revenue last year. Feed acidifiers are expected to be the fastest growing product segment over the next seven years. Animal feed additives imports accounted for more than 77% of the overall consumption in 2012.
|China needs to spend even more on cold chain facilities|
[29 October 2015] China needs to spend at least USD 85 billion to improve cold chain over the next 10 years, according to a new report by Rabobank. The report, Freight Trains and Cold Chains, was released during Rabobank’s “One Belt, One Road” conference in Shanghai. China has increased its cold storage capacity by 800% since 2007, to roughly 100 million cubic metres, but even more investment is needed to satisfy growing consumer demand for fresh meat and produce, the report said. The report's title and the conference title both refer to the so-called “New Silk Road” connecting China and Europe by rail, which promises to enhance opportunities to export perishable food to China by reducing transport times by 30 days compared to shipping.
|Malaysia's MFM extends lease to grow poultry business|
[29 October 2015] Malayan Flour Mills Bhd (MFM) has proposed to extend the lease on six pieces of land totalling 664.96 acres from the Perak State Agricultural Development Corp (PSADC) reported The Edge Markets. The properties currently hold breeder houses, hatchery buildings, a flourmill, among others. The company has been operating here for more than 20 years. MFM said the lease period of the six lands are for 30 years, with automatic renewal of another 30 years. MFM added that the extension of the lease is for the continuity and progress of the Group's poultry integration business.
|Indonesia’s shrimp mainly bound for US |
[29 October 2015] Indonesia’s President Joko Widodo's official visit to the US “is to strengthen economic cooperation," according to Finance Minister Bambang Brodjonegoro. The US is an important partner in the food sector. Data from Indonesia’s Trade Ministry shows that the US is the main export destination for Indonesia’s frozen shrimp products, followed by Japan, Vietnam and the UK. Exports of frozen shrimp in 2013 reached USD 663.5 million. Over the past five years, exports of frozen shrimp to the US have increased by 25.93%.
|YG trying to acquire KFC Korea|
[29 October 2015] Korea’s YG Entertainment is reported to be trying to branch into the fast food industry, with a merger & acquisition of KFC’s Korean operations. The acquisition came to a halt due to various circumstances, but talks have begun again for YG to acquire the fast food chain. According to reports from the investment banking industry, private equity fund CVC Capital Partners has been initiating the appropriate measures to sell the Korean KFC operations. CVC owns a 100% stake in SRS Korea, the sole franchisee of KFC in Korea. Investors believe that the fast food chicken franchise is a lucrative business.
|ILRI launches fodder project in Indonesia|
[29 October 2015] A new research project by the International Livestock Research Institute (ILRI) to improve fodder market performance and quality has been launched in East Java, Indonesia. The project will identify factors that affect the use or non-use of local feeds and forage materials by ruminant producers. It will be carried out in targeted zones where beef and dairy production is concentrated. Partners in the project will include the Australian Centre for International Agricultural Research, BPTP Jawa Timur, Indonesian Agency for Agricultural Research and Development and Indonesia’s Ministry of Agriculture.
|India's egg sector sees opportunity in high pulse prices |
[28 October 2015] Skyrocketing prices of pulses in India might help the poultry industry in terms of increased demand for eggs, according to experts. Prices of pigeon pea and lentils, protein sources for millions of people in India has more than doubled due to low domestic output. “Demand for animal proteins is likely to go up as they are now economical compared to pulses,” OP Singh, Core Committee Member of Poultry India, an industry advisory body said. According to him, eggs are now viewed as an alternative source of protein and this will benefit the ailing poultry industry.
|China’s Bright Food Group buys Spanish, NZ companies|
[28 October 2015] Bright Food Group has completed its USD123m acquisition of Miquel Alimentacio Grup, Spain’s second-largest food distributor, according to a report by China Daily. The acquisition was Bright Group’s second major foreign investment in the last two months, after its Shanghai Maling unit bought a 50% share in New Zealand’s leading meat processor, Silver Fern Farms. The Miquel Alimentacio purchase will enable Bright to expand its distribution network in Europe, China Daily quoted company officials as saying. Bright has been one of China’s most active overseas buyers, with acquisitions including Australian dairy company Mundella Foods, 60% of the UK’s Weetabix, and 40% of New Zealand infant formula maker Synlait Milk.
|Taiwan’s Changhua culls 20k chickens |
[28 October 2015] Officials in Taiwan’s Changhua steeled themselves to cull 20,060 chickens on a farm where the highly pathogenic H5N2 avian flu virus was found recently. According to the Bureau of Animal and Plant Health Inspection and Quarantine, the infection was confirmed last week. Epidemic prevention measures were then set in motion by the Chunghua County Animal Disease Control Centre. Tung Meng-chih, Head of the Chunghua County ADCC, urged poultry farmers to prepare for possible bird flu outbreaks by tightening biosecurity, restricting access of personnel and vehicles, installing sanitizers at entrances, changing clothes before entering farms and actively monitoring animal health conditions.
7th APVS Congress, Manila, Philippines
Onsite report by ISA Q. TAN
[28 October 2015]
The 7th APVS Congress, with the theme ‘Asian Pork Challenge: Moving As One’ showcased the challenges and opportunities that lie before pig veterinarians all over Asia. It covered various topics including important economic diseases that affect the pig industry in the region, transboundary disease transmission and regional cooperation, antimicrobial usage in pig production and human health.
China targets to eradicate pig diseases
Home to more than half of the world’s pigs, China has been hard at work to prevent and control pig diseases. Speaking during the Congress’ plenary session, Dr Qigai He of the College of Veterinary Medicine, Huazhong Agricultural University said the government plans to eradicate classical swine fever and hog cholera as part of its ‘Long and mid-term national plan to prevent and control animal disease (2012-2020).’ The plan lists the technical requirements and timeline to control these diseases through various strategies, including vaccination, early detection, removal or depopulation. He said the government is also promoting genetic improvement in pig production. Toward this end, 96 pig breeding farms have been named as national nuclear breeding farms. Their task is to exchange semen and other genetic materials.
Japan refines pork production system
As it recovers from its bout with porcine enteric diarrhoea (PED), Japan’s pig industry is working to refine its pork production system to further improve efficiencies. Currently about 80% of domestic pork is produced by a third of the country’s pig farm, said Dr Katsumasa Kure of Value Farm Consulting Co Ltd, as bigger farms use better technologies. He said among the key components for successful pork production in Japan are good sanitation and environment, excellent biosecurity, segregated production, all-in-all-out system, reduction and proper use of antibiotics, and early detection and early treatment of diseases.
Korea bats for sustainable pig industry
Over the past decade, South Korea’s pig production has steadily increased, the only exception being in 2011, when production after a new FMD outbreak hit the country. However, production quickly rebounded, hitting the highest number in 2014, said Dr Won Hyung Lee, President of the Korean Association of Swine Veterinarians.” He said substantial improvement in biosecurity and production system has led to higher pork quality and increased meat safety, leading to higher profitability. However, for the Korean pig industry to develop sustainably, Dr Lee said it has to overcome various obstacles including disease control, high labour cost, alternatives to antibiotics and environmental factors.
Diseases accounts for 20% of losses in Philippine pig production
Diseases takes a big toll in Philippine pig production, accounting for 20% of total economic losses for the country’s swine farmers, Dr Wilfredo Resoso, immediate past President of the Philippine College of Swine Practitioners said. To help control diseases and disease transmission, he said the government now requires that all transport of pigs, piglets and especially breeders too be profiled every six months for diseases to help prevent their spread to other regions. Dr Resoso noted that in the past 5-10 years, several pneumo-enteric problems or outbreaks hit the industry, affecting the supply and demand situation for pork in the country.
Low hygiene, diseases plague Vietnam's pig industry
Vietnam's pig production has grown substantially over the years and plays a large role in the country’s agriculture production and economy. Nonetheless, the industry’s development is still hampered by several factors. Dr Nguyen Quang Thieu of the Faculty of Animal Science and Veterinary Medicine of Nong Lam University explained that while there are now a number of big players in the industry instituting modern farming techniques, the industry is still dominated by small farms with low hygiene and poor biosecurity. At the same time, disease continues to be a big problem. He said it is important that these small-scale producers are educated about hygiene and biosecurity, not only so that they can improve production, but also to help prevent the spread of disease.
|Shenglong Biotech India to set up aqua feedmill and shrimp hatchery|
[27 October 2015] Aqua feed manufacturer Shenglong Biotech India Pvt Ltd based in Chennai plans to set up a 50,000 tonnes aqua feedmill and shrimp hatchery in Tamil Nadu. A Kumaresan, Director of the company told Asian Agribiz that this wold involve an investment of USD 21.44 million. “The shrimp hatchery will produce two billion young shrimps per year,” he said. The decision to invest in Tamil Nadu was taken by the company after the Global Investors Meet in September.
|Indonesia identifies quarantine islands|
[27 October 2015] Indonesia’s government regulation on the development of quarantine islands for imported cattle will be issued in November. “The draft has been completed so the regulation can be issued in November,” said Agriculture Minister Andi Amran Sulaiman. Mr Andi said the islands’ development is aimed to solve Indonesia’s dependency on beef imports. Previously, Banun Sri Harpini, Agriculture Quarantine Agency Chief, said potential quarantine islands could be Naduk Island in Bangka Belitung province, Durian Besar Island in Riau province and Simuang Island in Southeast Sulawesi province. The islands are free from animal diseases, have clean water and their ecosystems can support imported cattle.
|Indian poultry farmers lobby government for soy imports|
[27 October 2015] With the higher cost of domestic soybean, poultry farmers in India have urged the Central Government to allow them to import soybean to reduce feed input costs. Tamil Nadu Egg Poultry Farmers Federation Vice President V Subramaniyam said that farmers could not afford domestic soybean and using this resulted in financial loss. “Frequent increases in soybean cost in the past three years has affected the poultry industry,” he said adding that soybean prices had gone up by more than 20% in the past year.
|WHO’s report on processed meats simplistic say scientists|
[27 October 2015] Processed meats like hot dogs, sausages and bacon have come under fire as World Health Organization (WHO) experts say they can cause colorectal cancer in humans. WHO's International Agency for Research on Cancer (IARC) said additionally that there was some link between the consumption of red meat and pancreatic cancer and prostate cancer. "The risk remains small, but increases with the amount of meat consumed," Dr Kurt Straif of the IARC said. Scientists and researchers said the analysis was simplistic and may not add much to long-standing health recommendations to limit consumption of such meat.
|Sekar Bumi receives Indonesian export award|
[27 October 2015] Indonesia’s value added seafood producer Sekar Bumi received the Primaniyarta Award at Indonesia Trade Expo 2015 last week from the government as the most successful exporter. Howard Ken Lumito, Business Development Manager said the company plans to continue to expand its market in the US, EU and China. “In this era of globalisation and stiff competition from Thailand and Vietnam among others, we will continue to strengthen our commitment to quality, food safety and innovation,” he said. At the end of 2014 Sekar Bumi set up a jv with Japanese companies Seinankaihatsu and Nomura Trading to produce ready-to-eat seafood products.
|Singapore to raise fish production by 7%|
[27 October 2015] Singapore wants to raise the amount of locally produced fish to 15% from 8% in a bid to diversify its food sources and raise local food production. According to Senior Minister of State for National Development and Home Affairs Desmond Lee this will help face uncertainty of overseas sources. “For example, every now and then, Malaysia, which provides around a quarter of our fish supply, bans the export of certain fish for various reasons,” he said. Mr Lee said the aquaculture industry needs to innovate and adopt technology to boost productivity in fish farms.
|ISE Indonesia to set up integrated egg facility|
[26 October 2015] ISE Foods Indonesia has been selling value added eggs since end 2014. The eggs are produced by its partner in West Java according to standards of ISE Foods Group in Japan for quality and (food) safety. However, within the next five years, Yoshio Mizuno, President Director, told Asian Agribiz that it plans to set up its own layer farm and egg handling facility. “Once we have our own facility, we will produce more products such as liquid egg, egg powder and ready-to-eat egg products like what we have in Japan,” he revealed.
|Tight supply keeps China pork price high: Rabobank|
[26 October 2015] Despite weakening pork prices in China over the last eight weeks, tight supplies will keep prices relatively high in the coming months, according to Rabobank’s Q4 pork report. Prices rose from March to August, helping pig producers recover from a grim year in 2014. But prices have weakened since, although farmers are still making a profit as they have not fallen as far as they did in 2014. Herd replenishment has been slow because farmers hit by the 2014 slump don’t have the capital to expand rapidly, the Rabobank report said. The report also predicted a record year for imports due to the higher price levels.
|Sri Lanka’s Pussalla to invest in poultry feedmill|
[26 October 2015] Sri Lanka’s Pussalla Meat Producers has signed an agreement with Andritz Feed & Biofuel to set up a fully automated poultry feedmill. The company will invest USD 6.4 million in the project, which will be constructed in Gampaha district. “Capacity of the feedmill is 20 tonnes/hour and it is capable of producing 12,000 tonnes/month,” Philip J. Wewita, Managing Director of Pussalla Meat Producers said.
|CPF receives ProSustain certificate|
[26 October 2015] Charoen Pokphand Foods (CPF) has been awarded the ProSustain standard certificate for more than 700 poultry products and across all five processing plants. The standard helps organisations assess, improve and communicate their commitment to product sustainability. It enables tangible and cost-effective improvement of a product’s sustainability performance. Prasit Boondoungprasert, Executive Vice President for Domestic and International Trade Business said a wide range of environmental, social and economic impacts result from raw material harvesting and the manufacture, supply, use and disposal of products. “We have to adopt and demonstrate how we address risks and opportunities, ensure compliance with relevant requirements and continually improve the performance of our products through the supply chain,” Mr Prasit said.
Biomin’s Asia Nutrition Forum, Jakarta, Indonesia
Onsite report by ARIEF FACHRUDIN
[26 October 2015]
Biomin’s Asia Nutrition Forum this year focused on tackling the global mycotoxin menace, and achieving higher performance by optimising gut health amid increasing consumer concerns in safe and ethical meat production. Mycotoxin risk management, pathogen control, the elimination of AGP in animal production, and the pressure to use cheaper feed ingredients in feed production are some of the challenges industry stakeholders have to tackle. With this in mind, “we always want to be a trusted partner for the agrofood industry to tackle the challenges with our innovative solutions,” said Dr Erich Erber, founder of Biomin, at the forum in Jakarta. Around 260 delegates from Asean countries attended the forum.
Global trends in animal protein consumption
Worldwide, consumers seek best value when purchasing food products but, increasingly, they will also seek values such as ethically produced food, which has a softer step on the environment. According to David Hughes, Emeritus Professor of Food Marketing at Imperial College London, periodic food safety scares associated with meat will make consumers sceptical and they need reassurance. Meat that is ‘Free-from’ will be demanded such as free from antibiotics and hormones, campylobacter and salmonella and unnatural additives. “In a less trusting world, traceability and transparency in supply chains will be essential and the brand owners of meat products will require supply chain partners who understand, share and live the core values that they and their customers profess,” Prof Hughes said.
Keys to achieving top broiler performance
Michael Block, Live bird Production Manager of New Zealand’s Tegel Foods, said there are no secrets or silver bullets to achieving top performance. “It simply comes down to attention to detail and ensuring all the basics are done well. This starts with solid biosecurity and hygiene. Regular audits are also done to ensure a high standard is maintained.” He said that a batch book, a checklist and sign off at each stage, is kept for each run. A lot of emphasis goes into the brooding of young chicks. Health monitoring is also important for a healthy flock. “At the end of the day it is hard work, attention to detail and your ability to understand the bird behaviour that will deliver top results,” he concluded.
Mycotoxin consequences for poultry, pigs
According to Julian Wiseman, Professor of Animal Production at University of Nottingham – UK, when considering fumonisins, deoxynivalenol (DON) and zearalenone, poultry are less sensitive than other animals, although younger birds are probably more susceptible. Pigs are more susceptible with both aflatoxin and DON being responsible initially for a reduction in weight gain, the more so as dietary concentrations increase. “It is important to be aware of storage conditions leading to fungal growth that is influenced by moisture, temperature, cracked/broken seeds and germination temperature and moisture (humidity) interact,” Prof Wiseman said. He mentioned that antifungal treatments may be applied to grain to reduce mould growth in storage. Other strategies include physical/chemical adsorption, and inorganic and organic binders.
Pig feed formulation for gut health & performance
The pig’s gut is critical to its overall wellbeing. That’s why, “in formulating diets for pigs we need to be cognisant of the digestive competence of the animal and the stress that particular materials can place on the animal if supplied beyond their tolerance level,” said Tony Edwards, Pig Nutrition and Production Consultant of Australia’s ACE Livestock Consulting Pty Ltd. However, he continued that the issue is not just a question of specific materials but also the way in which they are presented which involves feed milling and feeding management. “We can counter many of the undesirable aspects of feed complications for pigs using acids, enzymes, probiotics, phytogenic compounds and antioxidants, but we need to set the stage with the best formulations to allow them to deliver their benefits,” he explained.
Pathological lesions of mycotoxicosis in poultry
Effects of mycotoxins in poultry are great according to their mechanisms of toxicity and primary target organs such as liver, kidney and lymphoid organs, explained Charles Rangga Tabbu, Professor of Veterinary Pathology at Faculty of Veterinary Medicine, Gadjah Mada University – Indonesia. He explained that mycotoxins may have immunosuppressive, hepatotoxic, nephrotoxic, neurotoxic and genotoxic effects. The clinical signs are usually as a secondary effect of mycotoxin contamination such as poor growth, egg production decrease, decreased fertility and hatchability and immunosuppression. “Clinical and pathological lesions on the primary target organs can be used as an early warning system. Final diagnosis of mycotoxicosis should be based on the isolation, identification and quantification of the specific mycotoxins in feed/ingredients,” Prof Charles said.
Shrimp health management
In the last decade, emerging shrimp diseases caused by viruses and bacteria have continuously affected the shrimp industry worldwide. Dr Jorge Cuéllar-Anjel, Project Director, Shrimp Pathology and Research of Camaronera de Coclé SA (Camaco) in Panama, said disease prevention, diagnosis and management have become the backbones of best management practices in shrimp farming, “though efforts have been emphasised on disease prevention,” said Dr Jorge. “Two aspects to be considered for successful shrimp farming are the implementation of biosecurity and best management practices.”
Differentiation through innovation
Franz Waxenecker, Biomin Development Department Director, said quality standards must be maintained. Intensification of livestock rearing, the continuous pursuit of efficient gains, high production costs, low selling prices, shifting legal framework and greater scrutiny of environmental impacts all come into play. In order to help the livestock industry address these challenges, he said Biomin adheres to five key principles: a clear focus to develop innovative and sustainable solutions; ideas can come from everywhere; early prototype serves as proof of an idea; in-vivo proof – Biomin conducts testing to document the safety and effectiveness of our products on the field; and the open ear – customer feedback is a cornerstone.
Branding creates value
Broiler is a sterling example of how r&d has helped produce high quality protein with low feed consumption, said Hansel D’souza, Professor at India’s ACCS Mumbai. “While this superior product provides a great opportunity to feed the world, making it available at ‘an arm’s length of desire’ is the challenge. Processing, packaging and logistics is the key to making this happen,” he stressed. Prof D’souza said branding is the next logical step after creating a great product. Branding helps translate consumer delight into recall and repurchase. “In India, 95% of broilers produced are sold to wet markets, only 5% go to processing plants. Because they sell live birds, they have to accept market price. However, if they venture into processing, packaging and branding, they will determine the price,” said Prof D’souza.
|Indonesia’s ISE Foods extends footprint in Asia|
[23 October 2015] With a mature egg market in Japan, Tokyo-based ISE Foods plans to expand its egg business in in Asia. At the moment, the group is present in China, Singapore and Indonesia. Yoshio Mizuno, Executive Officer, told Asian Agribiz that the group is now expanding into Vietnam and is in discussions with potential partners. “We also expanded to Myanmar this year,” he said. In April it started hatchery operations in Myanmar with a capacity of 60,000 (layer) DOC per month. This is expected to increase to 240,000 by end 2015. Mr Mizuno added that the group also plans to expand to Thailand, the Philippines, India, Bangladesh and Sri Lanka. At the moment the group produces around 22.5 million eggs/day from its facilities in Japan, the US and China – of this, 12.5 million eggs are produced in Japan.
|China poultry sector's woes continue|
[23 October 2015] Two of China’s largest poultry companies have projected losses for the first nine months of the year, evidence that the poultry sector’s woes have yet to ease. Shandong Minhe projected a loss of USD 18.9 million for Q1-Q3, against a profit of almost USD 9 million in 2014. Shandong Yisheng projected a Q1-Q3 loss of USD 43.4 million to USD 44.2 million, about 10 times as much as it lost during the same period in 2014. Both companies attributed the loss to lower sales and lower prices for their products. Consumer demand for chicken slumped in 2013 due to food scandals and avian influenza.
|Thailand's Tanaosree aiming for exports|
[23 October 2015] Tanaosree Group plans to invest USD 4.5 million in 2016 to set up a new subsidiary to produce cooked chicken for export, mainly to Japan and Asean countries, both from commercial broilers and native chicken. The processing facility will be in Nakhon Pathom province. “We are also looking to expand our upstream farming and slaughtering businesses to neighbouring markets in Asean. The expansion could be through co-investing, selling chicken breeds, and providing technical support and know-how. For the downstream businesses overseas expansion will be in focus within three to five years,” revealed Kanop Sujikara, Deputy Managing Director. The group expects its sales revenue to reach about USD 227 million this year of which 10-15% will be from exports.
|Slow recovery for pork industry in Q4|
[23 October 2015] Global pork trade will slowly improve towards the end of 2015 and into 2016, Rabobank said in its Global Pork Quarterly Q4 report. The report also noted the disappointing development in the global pork market in Q3 resulted from adverse exchange rates which limited pork trade. “The global pork market shows a clear mismatch between supply and demand across the globe, with elevated price levels in one group of countries and stable/pressured prices in other countries,” said Rabobank’s Animal Protein analyst, Albert Vernooij. The report said that in Q4 and into the first part of next year, developments in foreign exchange rates will continue to impact global pork trade, affecting volume and earnings from key export markets.
|Feed, food to lead CP Cambodia’s sales|
[23 October 2015] CP Cambodia’s 2015 sales is projected to reach USD 283 million or up 20% year-on-year, and its 2015 net profit to be USD 24.2 million or up 15% year-on-year, led by its feed and food business expansion. The company has built a new feedmill in Pailin with a capacity of 15,000 tonnes/month. “We believe the new plant will be CP Cambodia’s growth driver from H2 2015 to 2016,” said Thailand's Bualuang Securities. CP Cambodia also aims to increase the food portion of its business from its current 3% to 10% in the next five years through modern trade and food service channels. CP Cambodia’s 2014 total sales were USD 235 million while the net profit was USD 21 million.
|Subway to switch to antibiotic-free meats|
[23 October 2015] Sandwich chain Subway will start serving antibiotic-free chicken and turkey at its US restaurants next year. By 2018 it expects to shift all of its chicken and turkey supplies over to antibiotic-free meats. In addition, the company said that within six years after that, it will begin selling only pork and beef raised without any antibiotics. “A change like this will take some time, particularly since the supply of beef raised without antibiotics in the US is extremely limited and cattle take significantly longer to raise,” said Dennis Clabby, Executive Vice President of Subway’s independent purchasing cooperative. “But, we are working diligently with our suppliers to make it happen.”
|Positive outlook for Thailand's Bangkok Ranch |
[22 October 2015] Thailand’s Bangkok Ranch's (BR) core earnings is expected to recover in 2016, led by lower interest expense, recovery in export volumes to Japan and the EU, gains in sale price in the Netherlands and Thailand, and more efficient cost control. According to Bualuang Securities, BR’s long-term core earnings growth profile remains solid, with an 11% CAGR for 2015-19. “We assume a flattish gross margin in 2016, as raw material prices will rise year-on-year. Moreover, the next scope for earnings upside is based on the planned mergers & acquisitions deals in Cambodia-Laos-Vietnam-Myanmar subregion, China and Indonesia expected in H1 2016.”
|India's broiler production projected to increase|
[22 October 2015] India’s broiler production is projected to increase by 8% to 4.2 million tonnes in 2016 on rising demand from the growing middle class, according to USDA Foreign Agricultural Service report. India’s per capita consumption of chicken is at 3.1 kg/year, and is projected to increase in the coming years. “Rising middle class incomes and quick service restaurants play a major role in increasing consumption of chicken in India,” the report said. Southern states in India are the largest chicken meat consuming states.
|CPF’s earnings predicted to rebound in 2016|
[22 October 2015] Thailand’s Charoen Pokphand Foods (CPF) earnings is predicted to gradually recover quarter-on-quarter in the second half of 2015, with a strong financial year expected in 2016. “We expect all CPF overseas units except Turkey to improve in 2016, led by India, Russia, Vietnam, Malaysia and the Philippines. Turkey and China remain the key factors to watch in 2016. We expect the Thai shrimp unit to turn around by H2 2016, due to the cost reduction programs and a rise in shrimp supply,” said Thai securities company Bualuang Securities.
|Fourth wave of H7N9 begins in China|
[22 October 2015] Human cases of H7N9 avian influenza are expected to rise in south eastern China over the next several months, according to an update from the Food and Agriculture Organization (FAO).The FAO said the fourth wave of H7N9 began on October 2 after the first two human infections since July were reported in Zhejiang Province. The increase in H7N9 infections in southern China follows a seasonal pattern, but FAO officials also said it is likely exacerbated by a lack of biosecurity measures in the region.
|South Korea to adopt UAE’s halal system|
[22 October 2015] South Korea is hoping to establish a strong export trade in meat products with the United Arab Emirates (UAE), and has announced it will adopt the UAE’s halal certification system to help ease the process. “The UAE halal certification program will be introduced in South Korea,” said Kwon Hae-ryong, South Korea’s Ambassador. “When our President visited UAE last March, we signed an agreement on agricultural cooperation and halal food cooperation.” According to industry sources, the halal food market reached USD 1.09 trillion in size in 2012 and is expected to grow to USD 1.62 trillion by 2018.
|Filling Indonesia’s Q4 cattle order is challenging|
[22 October 2015] As prices for export cattle to Indonesia reach unprecedented highs, Australian livestock agents and exporters admit filling Indonesia’s Q4 order of 200,000 heads will be challenging. Feeder steers are now fetching around USD 3.30/kg, with at least one exporter forking out a record USD 3.40/kg. Australia’s Katherine livestock agent Paul McCormick said: “It’s becoming increasingly difficult to see where the decent lines of cattle are. We’ve identified a shortage of cattle for the rest of this quarter.” Mr McCormick said he was surprised to see prices so high.
|14th China Foodtech, October 19-21|
On-site report by RICH HERZFELDER
[22 October 2015]
At the 14th Foodtech China held at the China International Exhibition Centre in Beijing, exhibitors told Asian Agribiz that attendance in general was disappointing, although some did good business anyway. Exhibitors noted that attendance might have been affected because China hosted two similar exhibitions in two months – the China International Meat Industry Exhibition (CIMIE) in Qingdao, which took place in September, and China Foodtech. For packaging companies there is a third, Shanghai World of Packaging (SWOP), in November.
Tipper Tie improves safety with raised air inlet
Tipper Tie’s TTChop33 bowl chopper boasts several improvements that should appeal to safety-conscious food processors and ultimately to consumers. Among other improvements, the motor has been upgraded to reduce maintenance and extend the working life, and the air inlet has been moved from the bottom of the machine to the top. “The air in a production facility is better at the top of the machine, there is often a lot of dust near the floor,” said Stefan Kuenzle, Sales Director for Asia. The 330-litre machine – the most common size sold in China – is more efficient than ever, and safer to work with, Mr Kuenzle said.
High-speed trains drive new packaging: Multivac
China’s high-speed train stations have become a driver for packaging innovation in the Chinese market, according to Jens Richter, Managing Director of Multivac’s Shanghai branch. The high-speed rail network has spurred travel for both business and pleasure, and instead of souvenirs, Chinese prefer to buy packages of local food specialties as gifts. “Airports, high-speed train stations, even highway rest stops, have become centres for packaged food sales,” said Mr. Richter. Several companies that make local varieties of preserved duck have had great success with Multivac packaging, he said.
Hoegger brings meat pressing technology to China
Swiss-based Hoegger is entering the China market because the spread of automatic slicing has created an opening for the company’s meat pressing machines. “These machines are new in China,” said Stefan Koller, Director of Sales and Marketing. Using a presser before slicing enables processors to standardise weights and appearance, Mr. Koller said. Companies that use presses can save 15-20% on trimmings in pork, and up to 30% in beef. “The press is where the money comes from,” added China Sales Representative James Zhu.
|Ise Indonesia to increase its value added egg sales|
[21 October 2015] Ise Foods Indonesia, a subsidiary of Japan-based ISE Foods Group, targets to sell more than 10 tonnes of value added eggs per month in Greater Jakarta. Yoshio Mizuno, President Director, told Asian Agribiz that the market size of value added eggs is around 150 tonnes. “If we can sell around 15 tonnes/month, we will have a 10% market share. However, our focus is more on value,” he said. Since end of last year Ise has been selling its Mori-Tama branded eggs at more than 60 high-end stores in Greater Jakarta. The eggs, which are said to contain higher vitamin E, DHA and Omega 3, are priced 4-5 times higher than normal eggs.
|Tanaosree Group to grow downstream business|
[21 October 2015] Thailand’s Tanaosree Group has set a strategy for the development of its downstream business. Kanop Sujikara, Deputy Managing Director, said the primary business of his family is poultry-breeding. However, the company set up a new subsidiary two years ago, T Leading Food, as it recognised that it had to diversify. T Leading Food produces chicken sausages and meatballs. Mr Kanop said Thai lifestyles and consumption have changed significantly. As a result, there is less demand for whole chicken. Also two years ago, the company set up Asian T, a chicken-rice restaurant business. The first two pilot restaurants have been successful and it plans to open five more restaurants in Bangkok next year.
|Megha Farm to market table eggs|
[21 October 2015] Megha Farm based in Mysore, India plans to aggressively market its table eggs locally. “We are already marketing our medium sized white eggs under the Sampurna brand and selenium rich eggs under the ‘egg nest’ brand,” MR Manickam, Managing Partner of Megha Farm told Asian Agribiz. Under the ‘egg nest’ brand, Megha Farm markets both white eggs and brown eggs. The company has drastically reduced its dependence on egg traders by marketing under its own brand.
|Yum spins off China business|
[21 October 2015] Yum Brands (YUM) CEO Greg Creed has announced that the company will spin off its China business. The company operates about 6,900 restaurants in China, including KFC, Pizza Hut and the Little Sheep hot pot chain. As part of the transition, the new Yum China will have the opportunity to launch Taco Bell, Yum's strongest franchise in the USA, in China. The transition is to be completed by the end of next year. The new China company is expected to have no significant debt, with substantial financial capacity to invest in its business, according to Yum.
|Laos reports H5N6 outbreak on farm|
[22 October 2015] An outbreak of H5N6 avian influenza (HPAI) in poultry has been reported for the first time since last September, in Laos, according to a report filed by the local health authorities with the World Organisation for Animal Health (OIE). The outbreak involved a farm that housed 534 ducks and chickens. Of those, 314 died from the disease and the rest were culled to prevent disease spread. The farm is located in Xaignabouli province in the north-western part of the country adjoining Thailand. The country’s previous H5N6 outbreaks were reported on September 16 and March 31 2014.
|14th China Foodtech|
On-site report by Rich Herzfelder
[21 October 2015]
Exhibitors at the 14th China Foodtech which is underway at the China International Exhibition Centre in Beijing, told Asian Agribiz that traffic was a bit slow on the first day but picked up on day two. Slicing equipment, once rare in China, has become more popular as the Western taste for convenient sliced products begins to penetrate food service and retail channels.
Chicken processors taking up separators and desinewers
Chinese chicken processors are buying meat/bone separators and desinewers because they help improve quality and save labour costs, according to Boris Galisson, Sales & Marketing Director for Lima. “This type of application is common in Europe, and Chinese companies are beginning to understand the value add,” Mr Galisson told Asian Agribiz. Lima’s machines not only save labour costs, they do a better job. “Even if you desinew by hand, you can’t do a complete job,” he said.
Wetter focuses on Asia
K+G Wetter is focusing on marketing its customised bowl cutters and grinders in the East Asian region, said Volker Schlosser of Wetter’s sales and distribution department. “The market is also changing, more in the Western style,” said Mr Schlosser. Wetter’s emphasis on safety is also suited to the China market, where consumers have become sensitive because of numerous scandals. Wetter’s grinders have a special cleaning system, and Wetter machines use quality control software that improves traceability by storing the whole process of production.
Textor introducing its slicing technology to China
Textor is using the China Foodtech show to introduce itself and its slicing technology to the China market, which is becoming more and more open to sliced products. “It’s not a big slicing market at the moment, but you can see the growing taste for sliced products even in the shops here,” said Mathias Salmen, Head of Applications & Training. The company is exploring the market, trying to understand what adaptations may be needed. “The big players know what they’re looking for, but the smaller players really need to be educated,” Mr Salmen said.
Laska’s safety software a plus in China market
A series of food scandals have made Chinese consumers extremely sensitive to safety issues, and Laska’s cutters, grinders and emulsifiers now come with software that enhances traceability, according to Sales Manager Joe Preidl. “You can record the production run, the conditions of the process, the origin of the material,” Mr Preidl said, allowing customers to retrace and troubleshoot problems even months after a production run.
Weber’s slicers help processors reduce the ‘giveaway’
Big meat producers in China are becoming much more conscious of yield and the 'giveaway' that is lost in trimming, according to Michael Kleck, Sales Director Export for Weber. “If you are a big producer, if you run 20 tonnes you can save 500 kg, it’s a lot of money,” said Mr Kleck. “It’s a tendency which is recognisable from the market,” he added. Weber’s slicers are well-positioned to take advantage of market growth because they can produce fixed-weight slices that sharply reduce ‘giveaway’,” he said.
14th China Foodtech
On-site report by Rich Herzfelder
[20 October 2015]
The 14th China Foodtech is underway at the China International Exhibition Centre in Beijing, from October 19-21. Exhibitors identified several trends affecting the Chinese market, including a slower economy, improving quality, an increased interest in labour-saving and margin-improving technology, and a rising taste for beef.
Poly-clip celebrates rep office’s 20th anniversary
Poly-clip is celebrating the 20th anniversary of its first representative office in China at the China Foodtech 2015 exhibition. “Then it was a real adventure,” said Sales Director Reiner Feuser, recollecting watching thousands of bikers commuting on what is now an eight-lane highway that runs past the China International Exhibition Centre (CIEC). Mr Feuser sees larger packaging and automation as major trends in China today. Food safety is also a huge issue, and Poly-clip has designed its clips to be food-safe, colourfast and traceable.
Slowing economy puts focus on costs, says Treif
The slowing economy is forcing Chinese meat processors to cut costs, and investing in automation is the best way to do it, according to Treif’s Global Head of Sales, Marc Klaassen. The company is promoting its Falcon hybrid high speed portion-cutter, which can produce fixed weights or thickness. “It matches the market, it’s a standard in Europe,” said Mr Klaassen. “Chinese demands are starting to match EU standards.”
Automation helps control labour costs, says Inotec
The Chinese meat market is looking for automation in order to control labour costs, which are increasing dramatically, according to Inotec’s Managing Director, Adrien Dessert. A machine like Inotec’s WT99 IT offers several improvements that should attract Chinese processors, including 15-20% higher speeds, a sensor that ensures accurate cuts even for irregular sausages, and automated calibre setting – no need to use a crank to change a setting. The machine’s touchplay controls are designed to be as easy to use as a smartphone, according to Asia-Pacific Sales Manager Andreas Plassmeier.
Autotherm’s defrosting rooms attract meat importers
Defrosting rooms are becoming a big business in China for Autotherm, according to Sales Manager Norbert Hoffman. “We came into the market at the right moment with the right product,” he told Asian Agribiz. Few European companies need defrosting rooms, because they have good cold chain and deal in chilled meat. But China is now importing a lot of frozen meat, especially beef and mutton, which has created a market for the defrosting room.
Chinese processing market ripe for value-added separators
The China meat market is becoming a more interesting market for sophisticated processing machinery like Baader’s sinew and membrane separators, according to Sales Manager Martin Schaarschmidt. “It’s still a new market, but they are looking to increase quality now, not just produce quantity,” he told Asian Agribiz. Chinese processors now have a full menu of basic machinery like grinders and stuffers, and the next step is to create a higher quality, higher margin product by removing sinew and membrane.
Frozen meat improvements open market to reducing technology
Improvements in frozen meat quality and handling have opened the Chinese market to frozen block handling and reducing technology, according to Andreas Hager, Managing Director of Magurit. “In the past Chinese frozen meat had so many impurities and foreign materials that they had to fully defrost just to clean the meat,” Mr Hager said. But frozen meat quality has been improving, which means that the meat can be cut safely without being defrosted.
Metalquimia: Chinese processors looking for Western-style products
Chinese processors have become more interested in Western-style over the last few years, according to Daniel Borrell i Dols, Area Sales Manager for Metalquimia, which is best known for its tumblers and injectors. Processors are interested in both bacon and ham, but more bacon than ham. Mr Borrell also said customers used to focus much more on price than on technology, but that is changing and customers are looking at the technological advantages. “It’s a change in values,” he said.
|Singapore’s FairPrice sells pork from Sarawak|
[20 October 2015] Frozen pork from Sarawak is now available at Singapore’s NTUC FairPrice supermarket, following the Government’s approval of imports. The product is sold exclusively by FairPrice under the Borneo Pork brand and hit the shelves in October, reported the Straits Times. PFA Director Dr Ng Siew Thiam told Asian Agribiz the first consignment of frozen pork totalling 11.8 tonnes arrived in Singapore in February and, by the end of 2015, it hopes to export about 1200 tonnes of frozen pork. He said the pork is slaughtered and portioned before it is shipped out to Singapore. Mr Tng Ah Yiam, Deputy CEO (Merchandising) at FairPrice said the expansion of its range of pork products allows Singapore’s largest retailer to diversify its offerings and maintain stability in prices and supplies for customers.
|Jollibee buys into Smashburger|
[20 October 2015] Philippine fast food giant Jollibee Foods Corporation (JFC) has bought a 40% stake in Smashburger, a Denver-based burger chain, for USD 99 million. JFC Chairman Tony Tan Caktiong said the acquisition will significantly increase the company’s presence in the US, “going beyond the Filipino market and serving the mainstream consumers” in the US burger market. The acquisition is the largest investment ever made by JFC outside of the Philippines, where it recently opened the 900th Jollibee flagship store. The Jollibee brand already has a presence in Southeast Asia, the Middle East and the US. Besides the Jollibee brand, JFC also owns the home-grown brands ChowKing, Greenwich Pizza, Red Ribbon Bakeshop, and Mang Inasal, as well as being the franchise holder for Burger King in the Philippines.
|CP Prima to increase pangasius fillet production|
[20 October 2015] Responding to growing demand for pangasius fillet in the domestic market, Indonesia’s largest aqua feed and fish and shrimp producer Central Proteinaprima (CP Prima) plans to increase its pangasius fillet production by 180 tonnes/month in 2016 from the current 75 tonnes/month. Stephanie Endang, Assistant Vice President, said with the plan the company will double the number of its contract farmers to 150 farmers. Ms Stephanie claimed the company has a 30% market share in the domestic market, while other local companies and imports from Vietnam fill the rest. CP Prima has been in the pangasius fillet business for three years.
|Russia bans buffalo meat imports from Uttar Pradesh|
[20 October 2015] Russia has banned import of buffalo meat from Uttar Pradesh state in India. Temporary restrictions have been imposed on buffalo meat imports from three approved exporters located in Uttar Pradesh. Industry sources said that the restrictions are due to the prevalence of FMD in the Uttar Pradesh. However, Russia still allows imports from an exporter in Maharashtra state.
Asian Agribiz Web Special
Mixed reaction to Trans-Pacific Partnership
[19 October 2015]
The conclusion of the TPP negotiations in Atlanta took the world a step closer to becoming more prosperous and more food-secure. Negotiators from 12 Pacific Rim nations reached an accord over what would be the largest trade pact in history. TPP has the potential to set the standards for 21st century international trade, promoting the movement of goods, capital and ideas that spur economic growth. The Asian Agribiz team looks at the impact it will have on the animal protein sector.
TPP to increase US agri exports
US Agriculture Secretary Tom Vilsack said the Trans-Pacific Partnership (TPP) agreement will eliminate or significantly reduce tariffs on US products and deter non-science-based sanitary and phytosanitary barriers that have put American agriculture at a disadvantage in TPP countries in the past. TPP countries currently account for up to 42% of all US agricultural exports, totalling USD 633 billion. Mr Vilsack predicted the agreement will increase exports of meat, poultry, dairy, grains, processed products and other agricultural products. US Meat Export Federation said the organisation is looking forward to examining the red meat trade provisions agreed to in Atlanta and discussing them in detail with its members.
Philippines to seek TPP membership, animal producers wary
The Philippine government will seek membership to the Trans-Pacific Partnership (TPP) once it opens to new members. According to media reports, Department of Trade and Industry Secretary Gregory Domingo said the Philippines is ready to enter into discussions for its possible inclusion in the trade bloc. However, some local livestock and poultry producers are wary as they have not been able to take full advantage of the existing free trade pacts of which the Philippines is part. It is better to ensure first the competitiveness of the local industries before inflicting on them the burden that comes with another free trade deal, an official who did not wish to be identified told Asian Agribiz. He said, is that the government officials taking part in negotiating these deals do not really understand how the livestock and poultry industries work.
Philippine pork industry not keen on TPP
Philippine Pork Producers Federation President Edwin Chen told Asian Agribiz that as the TPP includes key producers and exporters like the US, Canada, and Australia, this would adversely affect local producers, who for the most part, are not yet ready and competitive enough against foreign competition. Meanwhile, Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz that the country would be "worse off with TPP, because we cannot compete especially with 0% tariff on all agri imports."
Opportunity for Malaysian integrators to improve
While the full text of the TPP agreement and schedules of market access concessions is still not know to the public, what is known is that Malaysian poultry, pork and seafood industry will have to achieve higher standards. “The pork industry for one must look into genetic development for efficient production. Producers must also step up and consider the environment and sustainability,” said Steven Goh, Regional Business Director, DelstAsia Sdn Bhd. He said the question of low quality poultry and pork imports flooding into the country when the TPP comes into force is worrying. “Poultry producers must think of ways to reduce the cost of production so that they can become competitive.” Meanwhile beef may become cheaper as Canadian and Chilean exports can now vie with Australian and New Zealand meats.
Vietnam’s livestock industry will face big challenge
Vietnam’s Minister of Industry and Trade, Vu Huy Hoang warned that the livestock industry would face the biggest challenge under the TPP as its competitiveness is now low. Van Duc Muoi, Gerenal Director of Vietnam’s leading meat processor Vissan, said 85% of livestock is now being bred on small-sized farms and only 15% is bred on large-scale farms. He said though Vietnam has the world’s third largest number of female pigs, its pork output ranks 15th-16th. “Low productivity makes Vietnamese pork prices higher than other countries. The deal will force the livestock industry to change and fix its weaknesses, otherwise it will not survive,” said Mr Muoi. “Vietnam has to restructure its agricultural with technology, better standards and economies of scale,” said Mr Hoang.
Vietnamese chicken farmers to file anti-dumping lawsuit
Vietnamese chicken farmers plan to file a rare anti-dumping lawsuit accusing US producers of selling poultry below cost, highlighting the challenges facing the nation as the TPP is set to open its markets. The first-of-its-kind complaint, to be filed next month with the Vietnam Competition Authority, will seek tariffs against imported dark-meat chicken that American consumers typically avoid. Vietnam’s South eastern Livestock Association asserts the poultry is sold at prices lower than that in the US. “We need to save our industry,” said Au Thanh Long, Vice Chairman of the livestock association. Inexpensive frozen US chicken imports have caused USD 120 million in losses for Vietnamese chicken breeders over the last 16 months, said Mr Long.
Manitoba pork to make inroads in Vietnam
Manitoba pork producers in Canada see opportunities under the TPP. “This is a huge deal for Manitoba,” said Andrew Dickson, Manitoba Pork Council General Manager. “If we hadn’t been part of this, we would have faced an uncertain future.” The trade will allow Manitoba to make inroads in Vietnam. “There are seven million people in Vietnam and their preferred meat is pork,” Mr Dickson said.
TPP to benefit Vietnam’s seafood industry
Vietnam, whose low-wage economy relies on exports, is likely to be the biggest winner of the TPP that slashes an estimated 18,000 tariffs among the dozen participating countries. In a decade, the country’s gross domestic product will be boosted 11%, or USD 36 billion, as a result of the TPP. Exports may soar 28% in the period as companies move factories to the Southeast Asian country. The country’s seafood industry will benefit from the elimination of import taxes on shrimp, squid and tuna, now averaging 6.4-7.2%.
US producers upbeat about TPP
US’ North American Meat Institute (NAMI) and US’ National Chicken Council (NCC) issued statements announcing their support of the TPP agreement. Barry Carpenter, NAMI President and CEO, said TPP will cut trade barriers and set common standards for more than 40% of the global economy. “It is essential to the stability and long-term viability of our industry by expanding US beef, pork, lamb and poultry exports. TPP will strengthen the meat and poultry industry’s strategic relationships with trade partners in the Asia Pacific region,” Mr Carpenter said. Mike Brown, NCC President, meanwhile said the TPP represents a significant opportunity to expand US chicken exports and bring increased economic benefits to chicken farmers and companies across the country.
USGC applauds completion of TPP negotiations
US Grains Council (USGC) President and CEO Tom Sleight said he is pleased with the TPP negotiations. “In 2014 the US exported more than USD 6 billion in corn and corn co-products to the TPP region out of a world total of USD 11.4 billion. A TPP agreement is expected to increase the output of all grain exports from the US by 11%,” said Mr Sleight. “Our priorities in the talks have been focused on the broad goal of securing increased market access for US grains and ethanol and ensuring that existing access remains open."
Cargill believes TPP will benefit food and agricultural production
Cargill wants governments of the TPP countries to follow through on the progress made by the negotiators, as TPP would benefit many sectors of the world economy, including food and agricultural production. David MacLennan, Cargill Chairman and CEO, said farmers in producing countries could potentially reach nearly 500 million new customers in Asia, who would in turn gain access to more affordable, higher quality products. “We believe the TPP will allow food to move more freely across borders,” Mr MacLennan said.
Australian seafood company hopes TPP will boost exports to Asia
The owners of an Australia’s seafood business are already calculating how the TPP will benefit their export business. Con Andronis and George Kaparos started Clamms Seafood in Yarraville, southwest Melbourne, in 1988, selling fish over the counter. Now its products are in demand across Asia. Exports are a small percentage of their business, but they hope the TPP could change that. “Exports are probably about 8-10%. If we can build that up to about 20% we’d do really well out of that,” said Mr Kaparos. “Any increase into those countries would be a real benefit immediately, so we’d be going from 0% to whatever per cent we could sell,” added George Faltiska, Clamms Seafood Manager.
MLA welcomes TPP agreement
Meat and Livestock Australia (MLA) also welcomed the TPP. TPP member countries account for about 52% of Australia’s beef, sheepmeat and offal trade, and the existing tariffs represent a tax on the supply chain of about USD 1 billion, the organisation said. “The implementation of the TPP will also help to ensure that the Australian red meat supply chain remains internationally competitive - with more seamless trade rules, reduced costs and less red tape making it easier for our sector to respond to the growing consumer demand across much of the Asia Pacific region,” it said. From the agreement, Australia’s beef industry will secure a better deal with Japan, and live cattle tariffs to Japan will be eliminated.
New Zealand’s MIA welcomes TPP agreements
New Zealand’s Meat Industry Association (MIA) welcomes the TPP. According to Tim Ritchie, MIA CEO, the meat industry exports close to 90% of production to some 120 countries, so remaining competitive in the global market place and improving the ability to capitalise on opportunities into more markets is critical to the industry’s profitability. In 2014, New Zealand exports of beef, sheepmeat and co-products to TPP countries totalled USD 2.4 billion. This is over one third of New Zealand’s exports to the world. The sector’s exports were charged a total of USD 94.3 million in tariff costs, with USD 77.4 million incurred on exports to Japan. “We don’t have trade deals with Japan, Canada, the US, Mexico or Peru. Japan, Canada and the US are not only some of the most protected agricultural economies but also some of the most valuable markets for New Zealand beef and sheepmeat,” said Mr Ritchie.
|The Halal Guys open in the Philippines|
[16 October 2015] The Halal Guys, America’s iconic halal street food cart franchise, opened its first store in the Philippines this week, the first such store to open outside of the US. Founded in New York City by Muhammed Abouelenein, Ahmed Elsaka, and Abdelbaset Elsayed, The Halal Guys was originally a hot dog cart, but later shifted to its current menu that includes chicken and gyro combo platters, falafels and sandwiches. The first Philippine store is located at the Mega Food Hall in SM Megamall in Mandaluyong City.
|Vietnam reports new H5N6 outbreaks|
[16 October 2015] Vietnamese officials announced two new H5N6 avian flu outbreaks this week affecting more than 2,300 birds. According to separate reports posted by the World Organization for Animal Health (OIE), the larger outbreak affected a backyard flock of 2,000 poultry in Thai Binh province while 100 birds also died from H5N6 in a backyard flock in Tuyen Quang province in an outbreak that began on October 9. Officials have responded to both outbreaks, which are in northern Vietnam, with typical steps such as disinfecting the premises and increasing local surveillance efforts. Vietnam has now reported six H5N6 outbreaks in domestic birds since August.
|Santeh Feeds launches Tateh AquaBiz app|
[16 October 2015] Santeh Feeds Corp has launched Tateh AquaBiz, a new Android app packed with features that can help those wanting to venture in aquaculture get a head start. Dennis Rito, Santeh Marketing Coordinator, told Asian Agribiz that the app can help interested investors through different aspects of aquaculture, such as choosing the right species to raise, where to get stock and feeds, as well as keep them updated on the latest market information. More importantly, the Tateh AquaBiz has an FCR calculator that can help calculate the daily feed requirement so as to avoid underfeeding or overfeeding, as well as check how the feed has been converted.
|Meat consumption increases in Kerala|
[16 October 2015] Consumption of meat in India’s Kerala state continues to increase. In 2014-15 the state consumed 445,000 tonnes of meat. State Director of Animal Husbandry Department Chandrankutty told Asian Agribiz in 2013-14, consumption was 416,000 tonnes whereas it was 401,000 tonnes in 2012-13. The state has seen a steady rise in beef consumption in Kerala.
Vietstock introduces Hanoi edition
Onsite report by CRAIGE ALLAN
[16 October 2015]
Recognising that northern Vietnam accounts for a significant proportion of national feed, livestock and meat production, Vietstock has been expanded to include the Hanoi edition. The opening day featured a technical seminar with the theme ‘Disease control and farm management in livestock production.’
Open the look in swine production
Waranee Prakatthagomol, Better Pharma urged delegates to focus their efforts on weaners, as they are the important link between the sow and finishers, and because of they offer a high FCR. The first thing you should do when you have a pig health problem is get an accurate diagnosis based on clinical signs and gross findings, confirmed by laboratory tests. When using antibiotics, the minimum inhibitory concentration should be confirmed by laboratory tests she advised.
Improving sow productivity through management
Assistant Professor Dr Pariwat Poolperm, Kasetsart University, Thailand concluded that you can do two things to improve sow productivity. Firstly, ‘flush’ sows after weaning by feeding lactation feed. Feed them as much as they will eat, he recommended. This stimulates the ovaries to produce more eggs, and unrestricted feeding for this short period will not cause sows to get too fat. Secondly, increasing lactation feed intake will increase milk production and piglet growth, and also decrease the wean to service interval.
Challenges of diseases in poultry farms
Mr Hartono Ladi, Medion said the five major poultry diseases in Vietnam are; avian influenza, complicated chronic respiratory disease (CCRD), infectious bronchitis (IB), E. coli, Newcastle disease and Ornithobacterium rhinotracheale (ORT). Many diseases have similar clinical signs and are difficult to differentiate, such as Newcastle disease and avian influenza. Modern disease diagnosis using PCR is fast and accurate. For killed vaccine, he concluded that the more homologous the vaccine with field isolate the better the protection it will provide.
How ventilation affects poultry production
The high growth rate potential of modern layer genetics results in high metabolic heat production, which can cause heat stress resulting in decreased feed intake and reduced growth rates and egg production. Assistant Professor Dr Theerawit Poeikhampha, Kasetsart University (KU), Thailand presented a trial at KU comparing the performance of layers (21-44 weeks of age) in open houses and evaporative cooled housing. The mean maximum temperature in the evaporative cooled houses was more than 6 degrees lower, resulting in increased egg production and reduced mortality. Dr Theerawit recommended increasing fats and oils, a low crude protein diet and balancing amino acids and supplementing water with minerals and vitamins to help reduce heat stress.
Managing the quality of drinking water in poultry farms
Water is an essential, but often overlooked nutrient said Kai Jens Kühlmann, Trouw Nutrition. Water intake is more than double feed intake and is important for many metabolic functions, including regulation of body temperature. He recommended using highly buffered blends of organic acids to reduce the pH of drinking water to around pH4. This lower pH reduces the survival of pathogenic bacteria, such as E.coli and Salmonella, and activates enzymes for protein digestion. Buffered organic acid blends are also active in the small intestine promoting intestinal health by killing pathogenic gram negative bacteria.
|Inaugural National Pork and Egg Festival launched|
[15 October 2015] The first National Pork and Egg Festival opened on Tuesday in Mandaluyong City, Philippines. The two-day event, jointly organised by the Pork Producers Federation of the Philippines (Propork) and the Philippine Association of Breeder Layers Inc, aims to create better public awareness on the benefits of pork and egg products. “The shows we currently have are focused more on the production side, but there is really no event that focuses on meat and eggs,” Propork President Edwin Chen told Asian Agribiz. “So we came up with this, to complement, and not compete, with the other shows that focus on production.” Among the goals of the festival is to educate consumers about the benefits of eating pork and eggs, as well as showcase the various uses of these products in daily meals.
|CP Prima to further develop vannamei household program|
[15 October 2015] Indonesia’s largest aqua feed and shrimp producer Central Proteinaprima (CP Prima) plans to develop its vannamei household program called ‘Rumah Tangga Vannamei’ in the near future in more regions in the country. The new regions include Aceh, Medan and Sulawesi, according to Nonot Tri Waluyo, Technical General Manager. Mr Nonot said it’s easy for people to join the program. They only need land of 1000sqm or less for a shrimp pond and funds for production cost. Mr Nonot said the current program generates 15-30 tonnes/ha. “We expect this program will increase the sales of CP Prima’s shrimp feed,” he added.
|Beef prices shoot up in Bangladesh|
[15 October 2015] India’s vigilance on smuggling cattle into neighbouring countries has led to a sharp rise in price of beef in Bangladesh. Earlier, India's Home Ministry has asked the Border Security Force to step up surveillance on the 4,096 km long India-Bangladesh border to stop cattle smuggling. Illegal cattle trade to Bangladesh was worth USD 770 million annually with around 1.3 million cattle smuggled across the border. The number has now declined to between 200,000 and 300,000.
|Indonesian permit for live cattle imports in limbo|
[15 October 2015] Indonesia’s Agriculture Minister, Amran Sulaiman said he’s not convinced about moving to annual permits for its live cattle trade with Australia. “Annually or quarterly is no different. The most important thing is that we design it based on needs, not wants. That’s the key word.” However, Muladno, Director General for Livestock and Animal Health, had a different view. “We think an annual permit will help customers with a more stable, affordable price. We are still working on the details, we hope we can finalise it by December,” he said.
|FMD centre in India to be completed in 2016|
[15 October 2015] Works on an International Centre for Foot & Mouth Disease (ICFMD), being set up by Indian Council of Agricultural Research in India’s Odisha state is expected to be completed in 2016. The USD 61.75 million R&D facility with Bio Safety level 3+ laboratory will undertake FMD research. “The Centre will work to control virulent, pathogenic and mutagenic FMD viruses,” according to information posted in Central Government's website. The lab will also act as a repository for various serotypes. FMD is endemic in India and severely affects the country’s rural economy and meat exports.
|Indonesia culls 2 million broiler PS |
[14 October 2015] Last month Indonesia’s government through its Directorate General of Livestock and Animal Health and 13 broiler breeder companies agreed to cut DOC production by culling 6 million PS. Muladno, Director General of the directorate, claimed that 2 million PS were culled this week. “We are now seeing the market response. If the price of live birds at farm gate is still weak, we will cull more PS in the coming weeks,” he said. Last week the average price of live birds was at USD 1.11/kg, while the average production cost at independent farms was around USD 1.26-1.30. Farmers have been struggling with oversupply since last year and many have had to exit the industry.
|Prabhu to enter value added egg segment|
[14 October 2015] Predicting an increase in demand for value added eggs in South India, Namakkal based Prabhu Poultry Farm is set to enter this segment with DHA rich eggs. R Prabhu, Proprietor of Prabhu Poultry Farm told Asian Agribiz that entering this segment will offer an edge to the company's domestic operations. “Consumers in South India are becoming health conscious and the growing awareness of the benefits of DHA or Omega-3 will help drive our new initiative,” he said. According to him, this will also help Prabhu Poultry sustain its business in the ‘loose eggs’ market, where price is determined by traders.
|Ha Tinh faces H5N1 bird flu threat|
[14 October 2015] Ha Tinh Province faces the risk of the spread of the H5N1 avian flu due to inadequate community awareness. Nearly 1400 birds were culled during a H5N1 outbreak in Thach Ha and Can Loc Districts of the central Ha Tinh Province, the provincial veterinary division said. Previously, an outbreak hit the household of Phan Nhat Thanh in Phu Loc Commune in Can Loc District on September 17, when nearly 400 chickens and ducks fell sick and died with avian flu symptoms. A week later, authorities detected another outbreak among 1000 chickens in Thach Tri Commune in Thach Ha District. The veterinary division said the birds were raised in unhygienic conditions and had not been vaccinated.
|KFC Malaysia has most successful Facebook page|
[14 October 2015] KFC Malaysia’s Facebook page is one of the most successful KFC social properties globally and the most popular Facebook page in Malaysia. An investment into their social properties saw their number of fans rise from 200,000 to 32 million. A campaign for Zinger burgers that encouraged participants to share their experience on social media drew 1.2 million views online and 75,328 more fans were won over to its Facebook page. A Nielsen study revealed that some 86% of Malaysian consumers trust word-of-mouth recommendations, with digital formats offering further opportunities for brands. Craig Johnson, Nielsen’s head of reach solutions for Southeast Asia, North Asia and Pacific, said brands that master ‘online word-of-mouth’ marketing techniques can gain quicker and viral reach.
4th Leman China Swine Conference
On-site report by CRAIGE ALLAN
(14 October 2016)
The Leman China Swine Conference successfully completed its fourth conference, with top researchers and veterinarians from North America and around the world, as well as leading Chinese swine industry professionals, focusing on improving swine production in China by concentrating on scientific research and investigation.
Biosecurity policies & procedures
Frequently we spend most of our time on external biosecurity, but we must recognise that once a pathogen enters a herd we must focus on internal biosecurity, said Dr Joe Connor, Carthage Veterinary Services, USA. Internal biosecurity includes preventing and controlling spread and shedding risks. Transport is a key source of contamination. According to Dr Connor, drying trailers after disinfection is common in the US. He suggested that research with lower temperatures and longer drying times to give the same results is required in China. He also stated the carcasses are excellent vectors for disease and must be removed from the facility daily.
Nutrient requirements of sick animals
Nutrient requirements are normally determined for growth and maintenance, however, during disease challenge pigs have decreased feed intake, decreased nutrient digestibility and repartition on nutrient utilisation. Dr Pedro E. Urriola, University of Minnesota discussed the paradox of nursery pigs which have a high lean growth capacity, thus have a high requirement for amino acids, however, excess amino acids ‘leak’ and cause fermentation and diarrhoea. More is not always better, said Dr Urriola and indigestible protein can be decreased by using amino acids and enzymes and establishing proper requirements.
A global awareness of disease threats
It is a global economy and that has global risks stated Dr Paul Sundberg, Swine Health Information Centre, USA. A void exists within countries and internationally regarding novel emerging diseases, as unlike known diseases for which standards exist, reporting and managing unknown emerging diseases are left to a member’s discretion, causing time delays. He concluded that the need to protect national herds from emerging diseases or syndromes will drive cooperation.
Biotechnical methods in pig production
From a practical point of view, the organisation of group-wise insemination and parturition of sows, and weaning of piglets benefits the outcome of ‘balanced batches’ of pigs for breeding and pork production, said Prof Klaus-Peter Brüssow, University of Veterinary Sciences, Budapest, Hungary. Application of prostaglandin F2 on day 114 of gestation, and oxytocin 22-24 hours later, resulted in a greater synchrony of farrowing compared to spontaneous farrowing, shortened the period of piglet delivery, ensuring a similar weaning period for all sows within a group and also freeing the weekend of farrowing.
Advanced biosecurity and practices
Biosecurity is not just about mortalities, it’s also about subclinical disease noted Anthony Pearson, Chemours. It’s also about collaboration with other stakeholders such as feedmills and veterinarians. This will allow reduced use of medication and antibiotics in the food chain, we have to work together he commented. Nobody should enter the farm, unless they bring value to the farm. If people understand why they have to practice biosecurity, they are more likely to do it, Pearson advised.
|Marrybrown opens in Singapore|
[13 October 2015] Malaysia’s quick-service restaurant (QSR) chain, Marrybrown, has opened an outlet at iFly in Sentosa, Singapore. The company said it is looking to open 20 outlets here in five years’ time. “We are proud to open in Singapore and we attribute this success to our unique food culture,” Marrybrown’s Chief Executive Officer Dato’ Joshua Liew said. The fast food chain counts itself as the world’s largest halal QSR brand from Asia. Marrybrown operates in Malaysia, China, Indonesia, India, Sri Lanka, Maldives, Africa, the Middle East and Myanmar. Founded in 1981 Marrybrown has more than 130 quick-serving restaurants in Malaysia and more than 350 international restaurants.
|Pork, chicken supply for year-end assured|
[13 October 2015] Filipinos need not worry about their pork and chicken supply for the coming Christmas holidays, Agriculture Undersecretary Jose Reaño said. There have been reports that the El Niño weather might pull down production, but as yet, there is enough. Philippine Pork Producers Federation President Edwin Chen told Asian Agribiz that in fact, “there is a glut of imported pork and pork products in cold storages,” and this along with local production would be more than enough to meet the expected rise in holiday demand. According to the National Meat Inspection Services, as of end September, frozen pork inventory stood at over 13,532 tonnes, while dressed chicken was at more than 15,595 tonnes, up 83% and 187%, respectively from the same period in 2014. Mr Chen pointed out that this year’s volume of pork imports is “unprecedented,” adding that another concern is the continued smuggling of meat.
|Australia supports Indonesia’s beef self-sufficiency with R&D|
[13 October 2015] Australia has promised to help Indonesia reach its target of beef self-sufficiency by 2019 with R&D support in the sector. “Australia can take part in genetic research and breeding development. If we are given enough time, we can support the government’s program,” Australia’s Agriculture and Water Resources Minister, Barnaby Joyce said. A million hectares has been allocated by the Indonesian government to construct a special cattle-breeding facility to meet growing demand. Indonesia imported 97,610 heads of cattle in Q1 2015 and 201,640 heads in Q2, according to data from Indonesia’s Trade Ministry.
4th Leman China Swine Conference
On-site report by CRAIGE ALLAN
[13 October 2015]
The University of Minnesota 4th Leman China Swine Conference, Nanjing China began with a well-attended pre-conference session ‘Porcine Respiratory Disease Complex (PRDC) – diagnosis, treatment, vaccination and management strategies’ that was supported by Carthage & MHJ Agritech Consulting Limited. The conference focus is to improve pig production, by concentrating on scientific research and investigation. Training and educating future generations has always been Leman China’s top priority.
Overview of PRDC in China and around the world
“PRDC diseases is still one of the most important problems in modern swine production”, said Dr Joe Connor, Carthage Veterinary Services, USA. Some of the more common viral components of PRDC include Porcine Reproductive and Respiratory Syndrome virus (PRRS), swine influenza virus, pseudorabies virus and porcine circovirus type 2 (PCV2). Bacterial infections involved in PRDC include Mycoplasma hyopneumoniae, Pasteurella multocida Streptococcus suis and Haemophilus parasuis. According to Dr Connor “genetic selection has provided improvements in production, but these animals are more susceptible to disease." In a recent US study, the cost increased by USD 2.84/animal from wean to market comparing PRRS positive and negative batches. The economic impact pre and post Mycoplasma hyopneumoniae outbreak was a decrease in average daily gain and FCR of 7% and 10% respectively.
Calculation of economic impact of PRDC
Martin Hjorth Jensen asked the question “is pigs’ weaned/sow/year a good way to measure productivity?” He contended that we have to look at our end product, so kg of pork produced/sow/year should be the main target. PRDC is important because it directly impacts the amount of pork produced/sow/year. Based on a 2013 report, PRRS cost the US pork industry USD 664 million/year. The Chinese pork industry with about 39 million sows, however, doesn’t know the cost of diseases. “I know it is not so simple in China” commented Jensen. “But you have to have accurate data to manage your farm to make the right decisions,” he advised. Jensen calculated the economic losses caused by Mycoplasma hyopneumoniae for a 1,000 sow farm with 20 pigs marketed/sow/year to be about USD 122,000. “Prevention costs less than treatment,” he concluded.
Practical approach to diagnostic PRDC
Dr Connor discussed clinical – pathological, laboratory, anatomical – pathological (slaughterhouse checks) as sanitary monitoring approaches to diagnosing PRDC. While clinical/pathological monitoring is subjective he encouraged its use on a day-to-day basis. Clinical signs of pneumonia are important when the cough counting is higher than 5%. “In the US, the use of microphones to monitor coughing is highly effective for intervention”, advised Dr Connor. Slaughterhouse checks have the advantages of low cost, and a large number of animals and diseases can be monitored, however, they dramatically under-estimate the prevalence of disease that occurred more than 30 days before slaughter,” he said.
General managements to prevent PRDC
Michael Ellerman considered prevention and control strategies to prevent PRDC, including improving managing colostrum. He explained that virtually no antibodies are transferred through the placenta from the sow to her piglets before birth. Without maternal antibodies the piglet is highly susceptible to infection. Therefore it is essential for the piglet's survival that it drinks enough colostrum, which is rich in antibodies to provide passive immunity. He recommended piglets need to suckle colostrum for at least 12 hours to have sufficient immunisation. A normal farrowing is 3-4 hours duration, but may take longer as litter size increases. The risk of mortality increases in last born piglets as the concentration of immunoglobulins in sow’s colostrum declines quickly over time. A split suckling can to improve colostrum intake for the lightest piglets in the litter by giving them uninhibited access to the sow.
Specific strategies to control PRDC – PRRS
“With any disease you have to decide if you are going to stabilise or eliminate that disease,” stated Dr Connor. Typically, herd closure of about 30 weeks can eliminate the PRRS virus, however, this is highly variable between herds and viral strains, ranging from 84 to 301 days in one study, with a median of 210 days. He said that in the US modified live vaccines have reduced morbidity and mortality, and clinical signs, improved average daily gain, reduced lung lesions and shedding of the PRRS virus in aerosol, but vaccination does not prevent new infection he stressed.
According to Prof. Bob Morrison, University of Minnesota. PRRS is one of the most important pathogen in the US. While the incidence of PRRS is decreasing, there is a repeatable incidence. There is a nation-wide epidemic in the fall (October – November), and based on data China is similar. For within herd PRRS control it depends on management, it’s all about us, he said. This includes strict biosecurity between litters and not holding pigs back. Vaccines aren’t 100%, but they help in reducing clinical cases.
PRRS control in China
According to Cameron Schmitt’s experience, there is little or no control of PRRS in China. The limiting factor for this he noted is the lack of diagnostic laboratories and high variability in laboratory results, as well as over-interpretation of diagnostic test results. Vaccines are also over-valued, without understanding what they can do. He also observed that the primary focus of biosecurity has been on people. Transport biosecurity is one of the largest gaps that he has seen in China.
Leading and managing people
Cameron Schmitt, an owner in Pipestone Veterinary Services, USA which has about 180,000 and 30,000 sows in the US and China respectively, with around 1,000 employees, noted that when you’re building a team, something that is often overlooked is emotional quotient (EQ). I don’t necessarily want the smartest, I want the best team member. As in the US, the best Chinese farm managers Schmitt has observed have originated from within the farm. We probably overvalue degrees, and undervalued experience, he advised.
Prevention and control of porcine viral diarrhoea (PVD)
Characteristics of PVD include watery diarrhoea, vomiting, dehydration, suckling piglet mortality with an increase in body temperature, commented Dr Li Feng, Harbin Veterinary Research Institute. Accurate diagnosis is often hard in the field, requiring laboratory diagnosis to determine the cause, such as TGE, PED or PRV. Li recommended focusing on sow vaccination, especially gilts, as suckling pigs depend on passive immunisation. He added that, vaccination is not for treatment, prevention is the key.
Strengthening swine influenza virus (SIV) control strategies
In contrast to many other diseases, SIV is capable of causing disease in other species, including man, commented Dr Matt Allerton Holden Farms Inc., USA. We are concerned with type A SIV. Based on a 2012 paper, the economic cost of SIV in the US was USD 3.23/head, increasing to USD 10.41/head due to SIV/PRRS combination. Neonatal pigs are important for the maintenance of SIV in the sow herd. Transport of weaned pigs has been identified as a potentially important means for dissemination of SIV.
Prevention, control and eradication strategies for Pseudorabies Virus (PRV)
After infection with PRV, animals will carry the virus for their lifetime, it’s impossible to eliminate the latent virus hiding in the central nervous system, said Prof. Qigai He, Huazhong Agricultural University. PRV can be transmitted by aerosol for 3km, requiring regional eradication programs. Sudden deaths of rodents, cats or dogs in farms indicates that something is wrong, which may be PRV. The most effective method of vaccination is intranasal administration of live, attenuated vaccine he said.
Innovation and development of modern nutritional programs
Dr Pedro E. Urriola, University of Minnesota, USA, made the interesting observation that we purchase feed ingredients on price, but formulate on value. Price is determined by traditional metrics such as moisture, protein and fat, whereas value is determined by ME or NE content, digestible amino acid content and available or digestible P content, which is what is important to the animal. The problem is that traditional chemical analysis of ingredients does not adequately determine actual nutritional value. Rapid, accurate and relatively low cost in vitro methods are being developed to accurately estimate energy and amino acid digestibility of feed ingredients, Urriola noted. These new nutritional tools will be of high value for improving energy and nutritional efficiency when formulating commercial swine diets using ingredients with variable nutrient composition.
ARIEF FACHRUDIN reports from
Ildex Indonesia, Jakarta, October 8-10
[12 October 2015]
Ildex Indonesia which took place at Jakarta International Expo from October 8-10 drew more than 140 exhibitors. According to the organisers VNU Exhibitions Asia Pacific and Permata Kreasi Media, around 10,000 visitors from local and internationals were expected. Fitri Nursanti, President Director of Permata Kreasi Media, said at the opening ceremony that apart from modern farming systems, the seminars on best practices in the poultry and dairy farming, and meat processing sectors would benefit visitors.
No decline in price despite reduction of broiler PS
There is uncertainty in the Indonesian broiler industry. Industry players met by Asian Agribiz said they did not make good money last year and this will persist until Q1 2016. Feed additives, farm & hatchery equipment, and feed milling equipment suppliers also feel the impact of the market weak. The government and 13 broiler breeding companies last month agreed to cut DOC production by culling 6 million PS. However, an industry player told Asian Agribiz: “This was agreed on paper but no one knows whether it will happen in reality? Who will monitor? If production was trimmed, the price of live birds should increase, but now it’s still below production cost,” he said.
Growth of 5% expected by 2020
Indonesia's poultry industry is expected to grow at an annual growth rate of 5% by 2020, according to Pawan Kumar, Rabobank Director for Food & Agribusiness Research and Advisory. He explained that population is a driver for the growth since Indonesia has a young population, with 45% below 24 years old. The rising middle-class and urbanization will also drive consumption. “The economic growth and increasing spending power will drive expenditure on meat. We already see a rise in spending on meat, and poultry heads the list,” Mr Kumar said. However, he added, the key challenge is that the share of wet market trade is still relatively high compared with other countries in the region – although this situation is expected to drop with the growth of processing and further processing.
Grimaud Freres restarts duck enterprise in Indonesia with CP
After a lapse, Grimaud Freres, the duck genetic business of France-based Grimaud Group, this year started its business again in Indonesia with Charoen Pokphand Indonesia. “This is a good opportunity for us to come back to this market with a big customer,” said Jerome Boucherot, Export Sales Manager. “Placement of Star 53 (meat type) PS breeders happened three months ago. So we will ensure the breeders and commercial ducks perform well.” Mr Boucherot believes Indonesia has a promising potential as consumption of duck meat is still low. “The potential is good as Indonesia’s population is huge and Muslims also eat duck meat,” he said.
GSI introduces poultry cage systems
Agco GSI (Malaysia) took the opportunity at the event to promote its cage systems for broilers, pullets and layers for the first time in Indonesia. Khenddro Low, Marketing Manager, said: “The systems are made by Farmer Automatic in Germany, which recently became part of Agco. It has been manufacturing poultry farming systems since 1961. The systems are of good quality.” According to Mr Low, previously GSI had no poultry cage systems, so with the addition of Farmer Automatic, GSI can offer a complete solution for its customers. “Feedback from visitors was encouraging, especially for the cage system for broilers,” Mr Low added.
Jamesway promotes new incubator
Jamesway promoted its new P105 single-stage incubator at the event. According to Bill Horricks, Vice President Sales and Marketing, the P105 is a perfect fit for conversion from fixed rack multi-stage machines to single-stage incubation. Tests have shown that the P105 reduces incubation time, increases productivity, maximises uptime, enables mixed flock incubation, as well as reduces labour costs. For capacity, the P105 has room for twenty 16-tier high two-column racks (ten on each side).
Linco launches compact processing plant
Linco Food Systems launched its new compact chicken processing plant at the event. Ng Yee Teck, General Manager, said the new system is perfectly matched for industry players who want to venture into processing on a small scale. Mr Teck explained the system includes processing and evisceration of 1000 birds/hour in a compact design. “Its external dimensions make this system an obvious choice for broiler processors with limited space and small scale production, or even farmers who wish to commercialise their products,” he said. Benefits of the system are minimum use of space, plug and play installation, low investment, and simple to use and maintain and open construction for easy wash down.
Valli products gain ground
Thanks to its product and service quality, Valli’s poultry equipment is now gaining ground in Indonesia. Paolo Zazzeri, International Sales, revealed that it already sold a layer cage system to Malindo Feedmill for 47,000 layers per house. “We see a big potential for our equipment here since more players are looking for quality equipment for better results,” said Mr Zazzeri.
ISA Q TAN reports from the
28th Philsan Convention in Manila, Philippines
[09 October 2015]
In its continuous efforts to support the advancement of the Philippine animal industry, the Philippine Society of Animal Nutritionists (Philsan) held its annual convention yesterday at the Marriott Hotel in Manila. Already on its 28th year, the convention attracted animal nutritionists, technical personnel, purchasers, and farm and feedmill owners keen to learn about advances in the field of animal nutrition as well as in the area of feed milling. The event theme this year was 'The Philippine Feed Industry: New Opportunities in an Integrated and Competitive ASEAN Economy'.
Early nutrition benefits broilers
With current genetics, the starter phase now represents 24-36% of the broiler’s production cycle. Thus good early nutrition is critical to produce healthy birds that achieve target market weights. Dr Paul Iji of the University of New England in Australia said that feed management, such as in ovo feeding and post-hatch feeding, during this period is useful not only for the development of the bird’s digestive function but also its productivity. Studies have shown that birds respond to such management, and that new procedures and products are being developed to meet for use in the pre-starter and starter phases of production.
Use of alternative ingredients calls for new feed processing technology
The growing use of non-traditional feed ingredients brings with it challenges including variation in quality and nutrient content, higher risks of mycotoxins and traceability, remarked Dr Charles Stark of Kansas State University’s Department of Grain Science and Industry. He said this calls for new technology and more automation in the entire feed manufacturing process that will help the animal feed industry, and ultimately meat production, meet the demand of consumers in the coming 10-20 years.
Functional AA can help regulate immune system
The regulation of the immune system, including gut immunity, is important to help pigs achieve optimum performance and production efficiency. Dr John Htoo of Evonik Nutrition & Care Gmbh said that some amino acids (AA), in addition to protein synthesis, are also involved in modulating the animal’s immune system. He cited a study which showed that during immune system stimulation, nutrients are redirected away from growth and towards tissues involved in immune response, which implies that the requirement for some AA at this time would increase. The application of functional AA, ie Met + Cys, Trp, Thr, Gln, Arg and Gly, can enhance immune status, maintain a healthy gut and promote growth.
|Lay Hong buys Thai processing company Takaso SC|
[09 October 2015] Malaysia's Lay Hong Bhd is acquiring the Thai unit of Takaso Resources Bhd, Takaso SC (Thailand) Ltd, for USD 2.07 million. This is part of Lay Hong’s business expansion in chicken processing and further food processing overseas with the objective to export to regional countries. It is expected to contribute positively to Lay Hong's revenue, profit and cash flow from the financial year ending March 31, 2017 onwards. Being located in Thailand would allow the group possibilities of exporting to Japan and the EU.
|Vietnam duck egg production readies for a revamp|
[09 October 2015] Vietnamese salted duck eggs is a promising export item and the country wants to revamp its production to boost exports. Nguyen Thanh Son, Director of the National Institute of Animal Sciences, Ministry of Agriculture and Rural Development, said the local salted duck egg export firms must invest in a closed production process, which includes quality feed, safe breeding area and proper material to cover the egg shell such as rice husk. Currently only three companies specialise in exporting this product mainly to Singapore, Malaysia and Hong Kong. The export volume of salted egg has increased to over 27 million since 2014 after falling for three consecutive years. In the first six months of the year Vietnam exported over 10 million salted eggs.
|Philippine chicken imports soars 24% in H1|
[08 October 2015] The Philippines’ chicken meat imports rose in the first six months this year, a report by Business Mirror said, citing data from the Philippine Statistics Authority (PSA). The country brought in more than 81,147 tonnes valued at USD 85.4 million during the period, up 23.7% and 32.2% in volume and value from the previous year. Meanwhile, the National Meat Inspection Service reported that as of end-September, the country’s dressed chicken inventory is almost 15,596 tonnes, or more than 187% year-on-year, indicating a glut in the industry. The figure does not include fresh chilled chicken and mechanically deboned chicken meat, which makes up a big chunk of chicken imports.
|Power subsidy a boost for poultry industry|
[08 October 2015] India's Telangana state government has introduced a poultry power subsidy scheme for the industry. Under the scheme, the government will provide USD 0.03 (INR 2) per unit of power consumed by the poultry industry with retrospective effect from December 2014. “The scheme also covers feedmills, apart from layer and broiler farms and hatcheries,” S Balija Reddy, Designated Officer of Telangana government told Asian Agribiz. Telangana Poultry Federation will submit the list of service connections of the poultry industry, which will be inspected and verified by a team.
|Labour concerns drive automation|
[08 October 2015] The F&A sector in Asia has been fraught with labour concerns and this has pushed many animal protein producers towards modernisation and automation. With this progression a new level of skills sets come into play. At the same time, the playing field is not level throughout Asean with some members racing ahead to adopt modern technology while others are content for now with manual operations. “Labour costs within Asean are currently mismatched and once infrastructure differences are more equal, companies will be inclined to move operations to regions where labour is cheaper,” Pawan Kumar, Director of Rabobank told Asian Agribiz.
|Poor show from Yum in China and India|
[08 October 2015] Yum Brands Inc has revised its earnings outlook for the year after its China and India operations presented disappointing quarterly results. The company reported an increase in overall profit on Tuesday, but its China operations has been dogged for the past three years with a series of food-safety controversies. Same-store sales in China for the quarter ended September 5 rose just 2%, well short of the 9.6% analysts expected. Chief Executive Greg Creed said the company is “experiencing unexpected headwinds” in China, making the second half of the year more challenging than anticipated. Same-store sales in India—a much smaller market thought to be promising for the company—also came in below expectations, falling 18%. Analysts expected a 5.4% decline.
|Australia proposes annual quota for Indon cattle imports |
[08 October 2015] Using an annual quota method for managing live cattle exports, rather than quarterly, will help stabilise domestic beef prices in Indonesia and prevent the system being “gamed”, said Barnaby Joyce, Australia’s Federal Agriculture and Water Resources Minister, who is now visiting Indonesia reported The Land. “I think it’s in Indonesia’s interests and in our interests to have an annual quota system. We want to be a secure supplier and we want a secure market and that can be achieved by moving to annual quotas,” said Mr Joyce.
|More Indonesian meat processors expected to venture into e-commerce|
[07 October 2015] According to Ishana Mahisa, Chairman of the Indonesian Meat Processors Association (Nampa), e-commerce for food products in Indonesia continues to show a positive trend. “The main drivers are heavy traffic that makes the journey to the markets a chore, lifestyle and convenience,” he told Asian Agribiz. Mr Ishana believes that more Nampa members will venture into e-commerce. “E-commerce offers benefits to meat processors who already have a good distribution network in the country,” he said. Mr Ishana, who is also Director of Dagsap Endura Eatore, a meat processing company based in Jakarta, revealed that his company also plans to venture into e-commerce. “We are now preparing the website and special products.”
|Dry spell to pull down Philippine corn production|
[07 October 2015] The current dry spell in key corn production areas in the Philippines is expected to pull down the country’s corn output for the third quarter. The Philippine Statistics Authority estimates that corn production for the period may reach 2.45 million tonnes, down 1% from its earlier target. Meanwhile, in the latest GAIN report, the USDA’s Manila post forecasts that with the El Niño phenomenon expected to intensify in the coming months through to early 2016, corn output and consumption is likely to decline. For marketing year 2015/16, it noted that feed wheat consumption has gone as substitute for corn, but overall it sees the country’s overall demand for feed grains up as meat production continues to grow.
|Odisha cooperative begins online sales|
[07 October 2015] The Odisha State Poultry Products Cooperative Marketing Federation (Opolfed) in India has started online sales of poultry products in Bhubaneswar city. State Agriculture Minister Pradeep Maharathy launched the chickenfresh.in portal recently and said that based on response from consumers the service would be extended to other cities in the state. Opolfed operates ‘Chicken Fresh’ outlets in Odisha state, which offers safe and hygienic chicken meat and eggs to consumers. “Opolfed is a trusted name in Odisha and this online platform will provide our customers a flexible buying experience,” Mr Maharathy added.
|Lay Hong eyes jv with foreign investors|
[07 October 2015] Malaysian poultry integrator Lay Hong Bhd is in talks with a few potential foreign investors and expects to complete negotiations by November 2015. The company has submitted a few proposals to them and is waiting for their confirmation. It expects to complete negotiations within a month, it told the stock exchange last week. The news comes less than three weeks after QL Resources Bhd sold its entire 38.6% stake in the company. Lay Hong also said it is in discussions for a possible joint-venture overseas.
|Processed meat products market expected to reach USD924b by 2020|
[07 October 2015] Processed meat products are gaining ground globally. The global processed meat market was worth around USD 482 billion in 2013 and is expected to reach USD 924 billion by 2020 growing at the CAGR of 14.1% during the forecast period of 2014 to 2020. Processed poultry is the largest segment and accounts for around 40% of the market share. Major factors driving the growth are demographic changes in terms of age, increase in disposable income and two salaries within the family especially in Asia Pacific and South America. Growth in the food service and retail industry in Asia has led to increased supply of processed meat products. Innovation in processing technologies has led to introduction of diverse products in the market thus ensuring bigger consumer base.
|Japan agrees to slash pork, beef tariffs under TPP agreement|
[06 October 2015] Japan has agreed to reduce tariffs on pork, beef and other items under the Trans-Pacific Partnership (TPP) agreement, leaving dairy products and rice as the final sticking points. The 4.3% tariff on high-priced pork will likely be eliminated 10 years after the TPP comes into effect, and the tariff on low-priced pork will be cut from the current USD 3.99/kg to USD 0.42/kg over the same period, reported Nikkei Asian Review. Though tariffs on the meat will be phased out, the two countries have, in a nod to Japanese producers, settled on a safeguard allowing a temporary return to high tariffs should imports spike.
|Five Star Chicken expands in India|
[06 October 2015] Charoen Pokphand Foods (CPF) has opened new Five Star Chicken outlets in Pune and Mumbai in India. Five Star Chicken now has a total of 319 outlets in India in Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Goa and Maharashtra states. “We are growing steadily in metros as well as in smaller towns through franchising,” Sanjeev Pant, Senior Vice President of CP Foods said. CPF is planning for expansion in south India and the western part of the country by end 2015.
|Midamar manager gets probation for role in beef misbranding|
[06 October 2015] A former manager of Midamar, a halal food supplier in the US, has been sentenced to three years of probation and fined USD 20,000 for conspiring to mislabel beef for sale abroad. Philip Payne was charged in December last year and pleaded guilty in January to the conspiracy charge. Mr Payne and others at Midamar were accused of creating false certificates and writings to give the impression shipments of beef headed for Malaysia and Indonesia had been slaughtered according to Shariah law and met import requirements.
|Taiwan to maintain ban on US pork with ractopamine|
[06 October 2015] Taiwan’s Council of Agriculture (COA) said that it will insist that the country maintains a ban on pork imported from the US that contains traces of ractopamine, amid fears that the issue could affect future bilateral trade talks. According to Chang Sheng-chin, Secretary General of Taiwan Swine Association, Taiwanese nationals consume 37kg of pork annually and the government has vowed to make food safety a priority. The issue also has economic implications, Mr Chang said. There are nearly 8000 swine farmers in Taiwan who raise 5.5 million pigs with an annual output value of around USD 2.03 billion, accounting for 44.3% of the livestock industry.
|Queensland cattle exporters start to fill Indonesia’s Q4 quota|
[06 October 2015] Australia’s Queensland live cattle exporters have followed in the footsteps of their Northern Territory counterparts to begin sending cattle to Indonesia. Indonesia last week issued import permits for an additional 200,000 heads before the year’s end. Wellard Manager Bernie Brosnan said: “The Australian herd is under a lot of pressure. You’ve got increasing demand from Vietnam in parallel with Indonesia.” Indonesian and Australian Trade ministers have recently expressed support for a yearly permit system, a move Mr Brosnan said would deliver more security for the cattle export trade.
|New slaughterhouse for General Santos|
[05 October 2015] The Philippine Department of Agriculture (DA) will construct a USD 2.15 million abattoir complex in General Santos City, a major pig producing region in the country, a report by Mindanews said. The complex will also include packing and storage facilities. According to Dr John Pascual, Livestock Coordinator for DA-Region 12, bidding for the project has already begun and construction could start by December. He said the facility will process pork and other meat products for export out of the region, and even for the Middle East, where there are significant numbers of overseas Filipino workers. A local industry player, who did not wish to be identified, told Asian Agribiz that the project, would be welcome, as currently there is only one Triple-A meat processing facility in the region.
|Asian shrimp processors automate production of value added products|
[05 October 2015] Shrimp processors in Asia are looking to automate production of handmade value added products like shrimp rolls, dim sum, samosa and dumplings. Fumihiko Hirabayashi, Senior Staff of Japan’s Nichimo Co Ltd, told Asian Agribiz during Allpack Indonesia Expo in Jakarta: “Processors also want to reduce exports of raw frozen shrimp as value added products offer a premium.” Nichimo’s machines are gaining ground especially in Thailand and Indonesia. “We sold units to CP Foods in Thailand and CP Prima in Indonesia. And we are now eyeing Vietnam,” said Mr Hirabayashi. Nichimo offers fully automatic machines with capacity ranging from 1000-15,000 pieces/hour.
|GBT slashes production, leaves farmers unpaid|
[05 October 2015] Global Bio-Chem Technology (GBT), China’s largest corn refiner, has left thousands of farmers unpaid after it suspended operations in Northeastern China, according to Chinese media reports. The company reported a H1 loss of USD 126 million last week and said it had cut production of lysine and other refined products in H1. Government support has kept domestic corn prices well above international prices, squeezing margins for refiners like GBT and making it difficult to compete in the export market. GBT owes corn farmers at least USD 12.7 million, according to reports by China Business News. It plans to raise capital via an equity subscription by a state-owned company, to pay the farmers.
|Farmers launch campaign for cheaper chicken |
[05 October 2015] To ensure lower chicken prices, farmers in India’s Maharashtra state have launched the ‘My Bird My Price’ campaign. Models such as encouraging farmers to set up their own stores and employing salespersons to cut out middlemen are being followed to keep the retail prices lower. While farm gate price of chicken in India is just USD 0.84/kg, customers pay up to USD 2.3/kg. “The campaign has helped us bring down the retail price to USD 1.45/kg in some localities,” Sanjay Brahmankar, Secretary of Central India Vencobb Broiler Breeder Hatcheries Association said. According to him, lower retail prices would encourage higher consumption.
|Indonesia eyeing to import beef from Brazil, Uruguay|
[05 October 2015] The Indonesian government hopes to start importing beef from Brazil and Uruguay next year to meet demand for the country’s expanding population. “The soonest we can start importing is next year, since we have to prepare the infrastructure, lay out the quarantine process and establish other requirements to ensure that it is safe for public consumption,” said Karyanto Suprih, Acting Directorate General of International Trade at the Trade Ministry. Australia is currently Indonesia’s only source of imported beef. The government of Colombia also recently expressed interest in beef exports to Indonesia, Mr Karyanto said.
|H5N6 detected again in Vietnamese poultry|
[05 October 2015] Vietnam's agriculture ministry reported another highly pathogenic H5N6 avian flu outbreak late last week. The outbreak began on September 29, striking backyard birds in a village in Lai Chau province, in North Vietnam, according to a report to the World Organization for Animal Health (OIE). Vietnam has had a host of H5N6 outbreaks since August 2014, when the virus was first detected there and identified as a new strain.
|Evonik plans for new DLmethionine plant in Singapore|
[02 October 2015] Evonik Industries has started plans for the construction of an additional world-scale production facility in Singapore to produce the amino acid DLmethionine. It is expected to have an annual production capacity of 150,000 tonnes and is expected to start operations in 2019. “We are convinced that the market for DL-methionine will continue to show dynamic growth," said Klaus Engel, the Chairman of the Evonik Executive Board. The new facility will be next to the existing Evonik methionine plant on Jurong Island in Singapore. The location in Singapore allows Evonik to serve Asian growth markets well.
|Formal indictments in Shanghai expired meat scandal|
[02 October 2015] Shanghai authorities have formally indicted an OSI Group subsidiary and 10 of its employees in connection with the sale of expired meat products last year, according to reports in Chinese media. The subsidiary’s plant was closed and all products recalled after the scandal broke in July 2014. The incident was a blow to OSI itself and its customers in China, including McDonald’s and KFC. Several OSI employees have been held in custody since they were arrested last year. Following the announced indictments, OSI posted a statement on its website saying it would “address the charges according to legal procedures,” and added, “We have confidence in China’s legal system and believe that the judicial authority will come to a fair and reasonable judgment with full respect to the facts and laws.”
|Karya Indah Pertiwi grows broiler business|
[02 October 2015] Karya Indah Pertiwi, Indonesia’s poultry company based in Tasikmalaya, West Java, recently received around 30,000 (D-Line) broiler GP hatching eggs from Hubbard. “We are pleased that Karya Indah Pertiwi chose to grow their broiler business with Hubbard. They chose us because France is free from avian influenza,” Suryo Suryanta, Hubbard Regional Technical & Sales Manager, told Asian Agribiz. Karya Indah Pertiwi is a family-run company that currently produces 150,000-160,000 broiler DOC per week for both internal needs and commercial purpose.
|New meat processing plant in Pune|
[02 October 2015] The Pimpri Chinchwad Municipal Corporation (PCMC) in Pune, India will set up a USD 2.7 million modern meat processing unit. The slaughterhouse in the plant will have the capacity to slaughter 200 large animals and 1000 small animals per day. “The meat processing plant will meet high standards of hygiene and safety. Consumers will get certified meat after this plant is commissioned,” Mr Rajeev Jadhav, Commissioner of PCMC said. The integrated abattoir project will also have chiller systems, a blood rendering plant and an effluent treatment plant.
|Indonesia to import 10,000t of beef from New Zealand|
[02 October 2015] In order to stabilise the price of beef, Indonesia’s Trade Ministry has issued permits for the State Logistics Agency (Bulog) to import 10,000 tonnes of frozen (prime cut) beef from New Zealand. “The permit has been issued. Bulog must now check the price to ensure that it won’t be too high,” said Karyanto Suprih, Acting Director General of Foreign Trade. Darmin Nasution, Coordinating Minister for Economy, said the beef is estimated to arrive next month. New Zealand was chosen because the price of beef from the country is lower than that from Australia.
|CP Prima ventures into e-commerce|
[01 October 2015] Indonesia's Central Proteinaprima (CP Prima) launched belanjaseafood.com early this year, an online sales platform for its processed products. This saw it lead as the first company in Indonesia to venture into e-commerce in the frozen seafood category. With the online platform, CP Prima aims to extend its market channel. Ricky Suhendar, Deputy President of Marketing, told Asian Agribiz that e-commerce is gaining popularity in the country. "Consumers prefer quick and efficient transactions using their gadgets,” he said. CP Prima sees a bright future in e-commerce. “Online shopping for frozen food is still growing so we need to do a lot of education and promotion to draw customers.”
|India’s buffalo meat exports down by 30%|
[01 October 2015] India's buffalo meat exports have come down by close to 30% in the last three months due to a 50% drop in Chinese demand. India's buffalo meat exports to China is routed through Vietnam. Buffalo meat has traditionally been India's top agri export commodity generating over USD 4 billion per year. “Buffalo meat exports have come down by at least 30% in the last three months. China is reluctant to buy buffalo meat that has been indirectly exported via Vietnam,” DB Sabharwal, Secretary of All India Meat and Livestock Exporters' Association said. Exports to Vietnam were down by nearly 20% in terms of both quantity and value.
|Association for pig farmers in North Sulawesi |
[01 October 2015] More than 100 pig farmers in Indonesia’s North Sulawesi recently gathered in Tomohon to form the North Sulawesi Pig Farmers Association. Ronald Rumondor who was elected Chairman told Asian Agribiz that their aim is to advance pig farming in the province, as well as to increase the capacity and prosperity of members. Gilbert Wantalangi, Head of Public Relations, said the association plans to collect data such as pig population, consumption, market demand and import figures from neighbouring provinces. “To increase capacity, we will ask feed millers and veterinary drug companies to share their technical expertise. In addition, we plan to cooperate with the local government to utilise the pig slaughterhouse in Manado,” Mr Gilbert told Asian Agribiz. According to him, pork consumption per capita in the province is more than 10kg.
|QL Resources puts off expansion plans |
[01 October 2015] Malaysian egg producer and marine products maker QL Resources is reviewing its expansion plans in Vietnam and Indonesia as a weakening ringgit makes foreign operations costlier. The company has been eyeing growth opportunities in these countries where per capita consumption of eggs lags that in Malaysia. “Potential is big but our investment capex will be reviewed in view of the ringgit depreciation,” said the company’s Head of Financial Reporting and Investor Relations, Freddie Yap. Indonesia consumes about 90 eggs per capita while Vietnam’s per capita consumption stands at about 70 eggs, reported Nikkei Asian Review.
|Sausage exports from India up in 2014-15|
[01 October 2015] Exports from India in the sausage and similar products category rose to 321.14 tonnes in 2014-15, according to government data. The Directorate General of Commercial Intelligence and Statistics (DGCIS) revealed that the country exported 112 tonnes of sausage to Vietnam only in 2014-15. This is the first time since 2012-13, sausages are being exported to Vietnam. Saudi Arabia, United Arab Emirates, Thailand and Qatar are other notable importers of sausage from India. “Exports have increased to 321.14 tonnes valued at USD 2.06 million in 2014-15 from 169.91 tonnes valued at USD 0.74 million in 2012-13,” data from DGCIS pointed out.
|Chinese beef market steady despite weaker economic growth|
[01 October 2015] Demand for beef in China will remain firm through 2016 despite weaker economic growth, according to analysis recently issued by USDA and Rabobank. Rabobank’s Q3 beef sector report noted that retail prices have fallen slightly, but said supply remains tight compared to demand going into the peak winter and Chinese New Year seasons. The USDA Beijing office’s annual livestock report forecast 2016 beef production of 6.785 million tonnes, with another 600,000 tonnes of imports bringing consumption to 7.35 million tonnes, all slightly higher than 2015. USDA said continued demand is attracting investment and consolidation to the sector, even though economic weakness is leading to some consumers opting for cheaper protein.
|South Korea expected to import more beef in 2016|
[01 October 2015] Soaring South Korean beef prices should be welcome news for the country’s hard-pressed cattle producers, but a failure to rebuild herds and customers balking at paying record levels for prized local Hanwoo meat mean imports are set to keep pouring in. Imports are at four-year highs and a further rise is expected in 2016 - mainly benefiting Australia. While locals have been prepared to pay more for Hanwoo, their willingness to pay extra may have reached a tipping point. “Hanwoo is the beef we eat on special days but on a regular basis we eat imported beef,” said Park Hee-jung, a housewife, as reported by The Land.
|BIPS to inaugurate new chicken processing plant|
[30 September 2015] Indonesia’s Batam Inti Pangan Sejahtera (BIPS) based in Batam Island is set to inaugurate its new chicken processing plant in October. Jeffry Hakim, Director, told Asian Agribiz that construction has been completed and test runs are in progress. “In line with the local government’s target to make Batam a smart & clean city, the plant will provide quality dressed birds and portioned cuts with a good cold chain system to consumers, helping reduce the sales of live birds in traditional markets,” said Mr Jeffry. The plant, which cost the company around USD 484,000, has an installed capacity of 1000 birds/hour that can be upgraded to 2500 birds/hour.
|High cost preventing Philippines from exporting pork|
[30 September 2015] High production cost is keeping Philippine pork producers from exporting their products and competing in the international market, Chester Warren Tan, President of the South Cotabato Swine Producers Association, told Asian Agribiz. Reacting to a news report that Japanese and Singaporean buyers are interested to buy Philippine pork, Mr Tan said “interested buyers are always there given our historical animal health and animal welfare record, but the problem eventually lies in the price. There is no way we can compete.” He said local producers are already at par with other pork exporters in terms of technology and know-how, but government support and protection which will allow them to be more competitive, is lacking.
|Wellhope establishes JVs in India, Russia|
[30 September 2015] Wellhope Agri-Tech, a major Chinese feed company, has inked international joint ventures in India and Russia. The first JV with Nexus Feeds, India’s largest aquafeed supplier, was signed in Shenyang, Liaoning Province. According to a report by China Securities Journal, the JV is capitalised at USD 1.6 million, with 70% coming from Nexus and 30% from Wellhope. Wellhope also inked a JV with the Hua Yu Group to form a joint venture in Russia. Hua Yu is based in Heilongjiang, which shares a border with Siberia. Royal De Heus Group, the Dutch feed company, owns a minority share in Wellhope, which is a listed company.
|Russia restricts import of buffalo meat from India|
[30 September 2015] Following cases of foot and mouth disease in Uttar Pradesh state in India, Russia has limited meat deliveries from the state. Buffalo meat exports to Russia commenced earlier this year and four processing units, three in Uttar Pradesh and one in Maharashtra supply buffalo meat. “There are only few reported cases and no major FMD outbreak but yet Russian authorities have limited buffalo meat exports from Uttar Pradesh,” Pravin Chawla, a Commerce Ministry official told Asian Agribiz. According to him, stringent measures to eliminate FMD is in place.
|Monsanto eyes Indonesia as potential global corn exporter|
[30 September 2015] Monsanto is eyeing Indonesia’s potential as a global exporter of corn, riding on President Joko Widodo’s food self-sufficiency goals. “Indonesian farmers can deliver self-sufficiency in corn and make the country a global exporter,” said Christopher Samuel, Director Corporate Engagement for Monsanto Asia Pacific. He said the government’s goals need the support of innovative partnerships and technology to increase yields and Monsanto wants to participate. Indonesia produced 19 million tonnes of corn last year, up 3% from the previous year on nearly 4 million ha. Still, the country’s consumption reached nearly 20 million tonnes last year, which led to a deficit of some 941,000 tonnes.
|Lack of vaccination affects livestock in Bangladesh|
[30 September 2015] About 80% of livestock deaths in rural Bangladesh are due to diseases because of a lack of quality vaccination in the country, a study claimed. The study by Islamic Relief Bangladesh and Bangladesh Agricultural University said that Department of Livestock Services in the country can vaccinate only 10% of the livestock and provide treatment to 6.5% of the rural livestock population. “The ratio of animals to a qualified veterinarian is 1:170,000 and there are no staff at the union or village level,” the study said. There is also an acute manpower shortage in the livestock department.
|Sumber Pakis diversifies into RTE pork products|
[29 September 2015] Business diversification is important in the pig industry in Indonesia. Since January 2012, Sumber Pakis, a pig breeding & fattening company in Surabaya, has been producing ready-to-eat (RTE) pork products such as slow roasted and smoked pork knuckle, ribs and loin packed in an attractive paper bags with the Crispigs brand. “This business is progressing well and we target medium to high earners. Every month we sell around 180 bags and we rely on social media to promote the products,” Andrew Djuana, Managing Director, told Asian Agribiz. Its main market is now in Surabaya, but its market penetration has reached Bali, Jakarta, Central Java and Kalimantan. For orders outside Surabaya, the products are vacuum packed.
|FMD-free status fails to drive Philippine pork exports|
[29 September 2015] Despite the country being been declared FMD-free for several years now, the Philippines has yet to take advantage of opportunities offered by the global pork market. According to Eduardo So, President of Davao Hog Raisers Association, while the capability to produce pigs is there, government support particularly with accreditation and other policies is needed. With the regional economic integration due end 2015, local hog raisers have been working towards being competitive. A local swine production consultant told Asian Agribiz that until now, the industry focus remains mostly on the local market, noting that the country is still not self-sufficient in pork.
|Burger King Cambodia to open outlets outside capital|
[29 September 2015] Having established a foothold in the capital, Burger King is pushing into Cambodia’s provinces and will launch its first branch in Siem Reap next month. The US fast-food giant plans to open four branches outside the capital by the end of 2016, with locations in Sihanoukville, Battambang and Poipet set to open after Siem Reap, according to Fin Sotheany, Operations Manager for Burger King Cambodia. Cam F&B Services, a jv between Vietnamese conglomerate Pan-Pacific Group Inc and local partner HSC Group, operates Burger King in Cambodia. The company currently manages five outlets in Phnom Penh. A sixth outlet will open on Mao Tse-tung Boulevard in the capital next month.
|KPPU takes feedlotters to court on beef price fixing allegations|
[29 September 2015] Indonesia’s anti-monopoly agency is taking 32 cattle feedlot companies to court under allegations of price-fixing and holding back supplies from the Greater Jakarta region, after beef prices spiked nationwide last month. After the first hearing in Jakarta, M Syarkawi Rauf, Chief of the Commission for the Supervision of Business Competition (KPPU), said that his team has been investigating these companies since 2012. “During a visit to the market, we discovered that one month prior to the Idul Fitri holiday, slaughterhouses received as many as 30 heads of cattle from the feedlots, but after Idul Fitri, they only received eight, because supply from the feedlot had declined,” Mr Syarkawi said. “Based on that, we saw that there may be a deliberate move to control supply.”
|Erratic monsoon hits corn output in India|
[29 September 2015] The erratic monsoon in India this year will affect corn production. Production is expected to be around 20 million tonnes, the lowest in five years due to irregular rainfall across Tamil Nadu, Andhra Pradesh, Maharashtra and Madhya Pradesh, according to estimates by the Central Government. Corn production was 23.67 million tonnes last year. Up to 7.59 million hectares was planted up to September 11 compared with 7.46 million hectares last year. Lower production is expected to keep prices remain firm even though global prices have declined.
|Fucheng Group to buy Queensland cattle ranch|
[29 September 2015] China’s Fucheng Group has agreed to buy a 31,000-hectare cattle ranch in Queensland, Australia for about USD 20 million, according to owner, MP Evans Group. In a filing at the London Stock Exchange, MP Evans said the sale price covered property only, with cattle, plant and equipment to be sold separately. Fucheng last month said it had established a wholly-owned Australian subsidiary, capitalised at USD 31 million, to invest in beef properties. In a filing on the Shanghai stock exchange, Fucheng said it was investing in Australia to “solve the shortage of beef cattle” in China and to improve the company's breeding, slaughter and processing capacities.
|MAP brings down energy cost for Indian meat exporters|
[29 September 2015] The Indian Institute of Packaging in Mumbai claims that its modified atmosphere packaging (MAP) technology can help meat exporters bring down energy cost by up to 40%. “MAP allows export at -4°C instead of the present -20°C,” N C Saha, Director of the institute said, adding that this sees a massive saving in energy cost and will benefit the export community. According to him, this extends the shelf life of goat meat from three days to nine days and shelf life of buffalo meat from seven days to 13 days.
|Damage from El Niño tops USD 70m|
[28 September 2015] The Philippine Department of Agriculture (DA) said that as of August this year, damage to agriculture, including corn and the livestock sector, has topped USD 70 million, with losses in the corn sector alone accounting for about two-thirds of the total. About 112,387 ha planted to corn has been damaged, with 36,869 ha unlikely to recover. To help mitigate damage, the DA has been conducting cloud seeding as well as distributing drought resistant seeds. Meanwhile for the livestock sector, the DA has been encouraging modernisation toward climate control and other cooling facilities. Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that producers raising animals in traditional open sided houses would be most affected. However, many bigger commercial producers have already begun converting operations to tunnel ventilation to improve efficiencies.
|TUF initiates global rebranding |
[28 September 2015] Thai Union Frozen Products Plc announced a rebranding for its businesses around the world with the company changing its name to Thai Union Group Public Co Ltd and its share symbol moving to TU from TUF previously. CEO Teerapong Chansiri said this rebranding reflects confidence and transparency of its operations and will encourage efficiency of the company as a leader in the seafood industry with better products and service and higher share value. The new vision of TU is to become the most trust seafood processor and the leader for change in the seafood industry with greater emphasis on the environment and on sustainable operations.
|Colombia offers beef to Indonesia|
[28 September 2015] Colombian entrepreneurs have offered Indonesia the opportunity to import beef from the Latin American country, according to the Indonesian Chamber of Commerce and Industry (Kadin). “They have asked for beef export access to Indonesia,” said Jocobus Dwihartanto, Kadin Chairman for South American Affairs. He further said Colombia desire to export its beef to Indonesia can be taken into consideration as the government is now taking steps to reduce its beef and cattle supply dependence on Australia.
|Taxes push up poultry production cost in Bangladesh|
[28 September 2015] Owing to withdrawal of tax exemption and imposition of new taxes in Bangladesh, production cost of poultry products including eggs and chicken meat have gone up. Bangladesh Poultry Industries Coordination Committee (BPICC) said this would result in reduction in consumption of poultry products as it affects the consumers directly. “This in turn will affect demand and supply and future investments in the poultry sector in Bangladesh,” Moshiur Rahman, Convener of BPICC said. BPICC also wants the government to continue tax exemption for another 10 years to save the domestic poultry industry from further decline.
|Central Sulawesi develops super-intensive shrimp farms|
[28 September 2015] To boost vannamei production, Indonesia’s Central Sulawesi has introduced environment friendly, super-intensive shrimp farming. Shrimp production in the province reached around 8000 tonnes in 2014. Following the introduction of the super-intensive technology, the province is projected to become a major shrimp producers in Indonesia as the technology could boost production to 153 tonnes/ha, according to Hasanuddin Atjo, Head of the Central Sulawesi Maritime Affairs and Fishery Office. “If the province is able to develop 1000ha of shrimp ponds using this technology, it will be able to produce 300,000 tonnes of shrimp annually,” Mr Hasanuddin said.
|Burger King launches home delivery in India|
[28 September 2015] Within nine months of its debut in India, Burger King has launched home delivery services in the country. With a footprint in close to 100 countries, it offers home delivery only in the US, Spain, Korea and China, with India being the latest and only the fifth country. The company has partnered with three tech firms to start the service in Delhi and Mumbai to begin with. “We believe tech enabled solutions will give us a chance to keep pace with customers as online apps and mobile penetration have changed the way business is being done," Burger King CEO Raj Varman said.
More from Livestock Asia Expo and Forum 2015
September 21-23 2015, Kuala Lumpur
[28 September 2015]
Valli sees quality customers in Asia
In Europe enriched housing that promotes animal welfare is compulsory. This is not the case in Asia. Nevertheless some producers are installing this system. “Farmers here have no reason to buy them but sooner or later this is going to happen so they want to be in the lead,” Paolo Zazzeri, International Sales, Valli SpA told Asian Agribiz. Enriched systems have bigger colony cages for layers, and costs about 35% more compared to conventional systems. These systems have laying nests, perches, litter distribution system and additional feed trough for extra feeding space. Each house can hold 47,000 layers per building compared to a conventional house, which can hold about 60,000 birds. “Asia is a good market for us,” he said. “If a customer chooses Valli they are interested in quality. Some 60% of our sales in the last few years make their way to Asia. We sell to China, Taiwan, Japan, Korea, Indonesia and Singapore.”
Equipment makers see dent in sales due to currency drop
Large integrators in Malaysia are not much affected by the drop in the value of the ringgit. With their economies of scale it balances out. “They may see a small drop in revenue but this is not the case with small producers,” said Alfred Tan, BD Agriculture (Malaysia) Sdn Bhd, Vice President of Sales. “There is a slowdown on expansion in Malaysia. Integrators are not much affected. The medium-sized farmers, yes. Even those who have decided to upgrade their machines, are putting their decision on hold,” he said. “Indonesia is also seeing a slowdown due to the overproduction. Small and medium producers are suffering.” On the upside foreign suppliers are seeing opportunities across the region because of the impending Asean Economic Community.
Termotecnica Pericoli expects sales to grow in China
Two years down the road and Termotecnica Pericoli is satisfied with its regional office in Malaysia, one of three globally. “We are able to grow our business from Malaysia. The strategic duty-free agreement the Malaysian government has with China is one of the reason we are here. Our business with China has grown from zero to good numbers today,” Mauro Pericoli, Sales Director, said. In 2017 the company will celebrate its 50th anniversary and among its plans is to improve its presence in China. The company also enjoys a good market share in Malaysia. “Our products are produced here with the same quality and standards as in Italy, said Felix Tang, Regional Technical Sales Engineer.”
Emka Incubators expect energy-saving models to sell well
Emka Incubators is two years in Malaysia and is represented by RhoneMa. “In the last two years we have successfully installed our systems in Indonesia, Thailand and Pakistan,” said Daniel Abrahams. He observed that hatcheries in the region are consolidating. Smaller farms are either getting bigger or disappearing, and “we are seeing more integrated set ups”. He said energy saving systems are popular. Its Extend incubator allows producers to hold fertile eggs at cold store temperature and increases hatchability rate and chick quality even after long-term storage. Special features of the system ensure controlled and progressive heating of the eggs to incubation temperatures.
|Chellam Poultry to double layer capacity |
[25 September 2015] Chellam Poultry Farm in India’s Namakkal region is set to expand its layer capacity by another 100,000 by March 2016. CS Prakash, Joint Managing Director of the company told Asian Agribiz the capacity addition will be done in a phased manner with 50,000 birds in a month and another 50,000 birds by March 2016. Chellam Poultry has three farms in Namakkal with a total capacity of 400,000 birds. “We are looking forward to a major expansion of our operations and plan to increase our layer flock to 800,000,” he said.
|5L Farm expands pig farm capacity through acquisition|
[25 September 2015] Many pig farms in Solo, Indonesia’s Central Java are family-run farms. These farms are facing succession problems as the next generations are reluctant to continue the business, said Lingko Sugiarto, owner of 5L Farm in Solo. “However, this is an opportunity for me to expand my farm capacity. I am ready to grow and develop my pig business through acquisition. I am looking for pig farms that are for-sale,” he told Asian Agribiz. Mr Lingko has been in pig farming since 2007. He acquired three farms in Solo with a sow capacity of 550 heads. “Setting up new farms will result in over population as market demand is restricted. Besides, farmers in Solo rely heavily on the Jabodetabek market.”
|Philippine pork prices to rise by end October|
[25 September 2015] Pork prices in the Philippines have remained fairly stable over the past few months, albeit lower than the previous year. This is expected to remain until next month, when prices are expected to pick up with the coming holiday season. “We are expecting that by end of October, prices will pick up,” Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz. Demand for pork typically picks up leading up to the Christmas season, Mr Tan said. He added that prices would increase further in January due to shortage following the holiday. Meanwhile, Pork Producers Federation of the Philippines President Edwin Chen told Asian Agribiz that traditionally, pork demand tapers in Q3, but agreed that things will get better when the last quarter kicks in.
|Cargill Indonesia to invest USD750m|
[25 September 2015] Cargill Indonesia plans to invest USD 750 million over the next few years to expand its operations in Indonesia, a government official claimed. The food-processing giant will expand its animal feed and sweetener plants across the country, according to Tamba Hutapea, Deputy Chairman for Investment Planning of Indonesia’s Investment Coordinating Board (BKPM). The company has invested more than USD 1 billion in Indonesia in the last five years and employs 26,000 workers at its various operations producing animal feed, cocoa, sugar, grains, palm oil and other vegetable oils, according to the BKPM.
|S. Khonkaen moves into fast food|
[25 September 2015] Thai meat processing company S. Khonkaen which is famed for its pork snacks, has set up a new company to operate a fast food business. Deputy Chief Executive Officer Niramon Rujirasopon said S. Khonkaen holds 79.98% in the new company named Thai Home Food (Bangkok) Co Ltd. It serves noodles and rice with varieties of choices such as rice with pork leg stew, rice with barbeque pork and beverages. “The setting up of the new company is expected to be completed in November,” she said. Apart from this, S. Khonkaen also has a marketing plan for its halal food products and will expand exports of halal snack made from seafood and chicken to countries in the Middle East in Q4 this year.
|Rabobank Indonesia focuses on agrifood sector|
[25 September 2015] Rabobank Indonesia said it will be focusing on the food and agribusiness sector in the country, after its parent company injected USD 35 million capital in May. “Rabobank Indonesia finances the entire food supply chain, from farm to fork,” said Jopie Jusuf, Director for Business Banking. “If we take the dairy supply chain for example, Rabobank Indonesia can finance the milk cooling tanks, cattle feed providers, cattle, milk processing plants, dairy product manufacturers, transportation companies, packaging companies, as well as the distributors and supermarkets that sell the milk and dairy products,” he said. Recently the bank signed a deal to finance six automated cooling tanks for dairy farmer members of the Dairy Cooperatives of South Bandung in Pangalengan, West Java.
|KFC records 10% annual growth in Bangladesh|
[25 September 2015] KFC in Bangladesh is recording 10% annual growth and is planning more outlets in the country. Akku Chowdhury, Managing Director of Transcom Foods Ltd, the local franchisee of KFC said that they have a total of 15 outlets in the country and will open four more outlets as the market is growing, riding on the expansion of the middle class. KFC celebrated nine years of operations in Bangladesh recently. “Keeping in mind the local taste, we introduced beef burger,” Mr Chowdhury said, adding that they import processed beef from Saudi Arabia.
13th CIMIE features automation, safety and new products
September 20-22, Qingdao, China
Onsite report by RICH HERZFELDER
[23 September 2015]
Automation, product diversification and product safety were the watchwords for exhibitors and potential customers at the 13th annual China International Meat Industry Exhibition (CIMIE) in Qingdao September 20-22. The show drew about 500 exhibitors occupying three halls, fewer than last year when the show took place in conjunction with the World Meat Congress in Beijing. Some exhibitors complained that this year’s CIMIE was scheduled only one month before the China Foodtech expo in Beijing next month. Even so, Chinese interest in automation and in raising product quality and safety led to encouraging business, although some projects are being slow-walked due to the slowing Chinese economy.
Vemag helps processors diversify their offerings
Chinese meat processors are increasingly looking to diversity their products and raise their quality instead of simply making plain sausage, because sausage has become a commodity item with low margins, Matthias Becker, head of Vemag’s office in Shanghai, told Asian Agribiz. Customers are switching to natural casing instead of cellulose and are making Taiwan-style sausages with bigger cubes of fat and meat. Customers are also interested in Vemag’s extruders, which can extrude 6-14 “lanes” of product that can be dried into jerky in stick, small chunk and puck form, all of which have become popular (and higher margin)snacks in China.
Banss introduces CO2 stunner
Banss introduced its Somnia CO2 pig stunner to Chinese meat processors at CIMIE with a special presentation at a well-attended seminar. Pigs enter a gondola at ground level and are then lowered into a pit of CO2 which knocks them out. They are then raised back to the exit position for slaughter and processing. The stunner takes advantage of the pig’s natural curiosity, handles pigs in groups and minimises human contact, all in order to reduce stress for the animals. A medium gondola stunner can handle 400-600 head per hour.
Marel boosts focus on China market
Marel has decided to boost its focus on China as part of a wide-ranging restructuring, according to Johannes Gunnarson, who took over as general manager at the company’s China office earlier this year. Marel, which has been on an acquisition spree over the last few years, will close some of its 19 manufacturing sites around the world to eliminate redundant operations. The company formerly classified China as an emerging market, but it will now become a priority region. Marel will focus on determining the specific characteristics of the market and on adapting its machines to meet specific Chinese requirements.
Holac says processors moving to automation
Chinese meat processors are increasingly interested in automation, and increasingly sophisticated about the functions and the results that they want, according to Roland Ambrassat, international sales representative for Holac. “I need to go into a lot of detail, because they already know the basics,” he said. The Cubixx120 dicing machine is well-adapted to the market, says Mr Ambrassat, because it’s easy to handle, boasts programmable functions and gives the final product a good appearance.
Handtmann features flexible computer-controlled equipment
Handtmann featured its VF612 vacuum filler in combination with its PVLH228 with double nozzle, suitable for all kinds of casing, at CIMIE. The machine can handle a wide range of sizes, and offers operational flexibility because an operator can adjust for a new product run with computer controls, without needing to open the machine or make any other hand or instrument adjustments. “You can cover a big part of your product range with one set-up,” said Sales Director Uwe Kessler.
First-timer Ceylan introduces its flavours and aromas
Ceylan, Spain’s largest meat flavouring company, introduced itself to the Chinese meat market at CIMIE in Qingdao. The family-owned company produces more than 300 varieties of savoury, sweet and spicy flavourings in markets around the world, but only began to distribute in China last year. “We are just at the beginning, China is a difficult target,” said Technical Director Vicente Margarit. The flavouring market in China is in its infancy, but meat producers are beginning to look for ways to save money, time and labour. The company plans to set up a test facility at its representative’s office in Zhengzhou, Henan Province, where it can show customers how the technology works and how it can benefit their operations.
|Arm & Hammer, Vicor merger smooth|
[23 September 2015] Arm & Hammer is in the midst of a merger with Vicor, and by early next year it hopes to complete the takeover process and the rebrand its products. “Vicor is a science-based company steeped in research. It produces natural products to enhance the productivity of animals,” Roger E Beers, Manager, Global Business said. “Through the merger we hope to create a suite of products for our clients in the beef, dairy, swine and poultry categories,” he said, adding that the transition has been relatively smooth. The company has managed to capture double digit growth through the process. The merger offers some exciting opportunities in the dairy sector. “International markets that are trying to get dairy started, such as China and Vietnam, need more technical support and resources. We have the means to do this.” He said these countries are only realising 30% of the genetic potential of the cows and that there are opportunities to improve, he told Asian Agribiz.
|Astino grows in confidence, takes on challenging projects|
[23 September 2015] Malaysia-based Astino Agro-House Multi System Sdn Bhd has matured and can tailor-make its products to suit its clients’ requirements. According to Edvent Chin, General Manager, the company now has more machines and is more flexible with design and manufacturing. It hopes to soon clinch a deal and take on a Japanese client. “Japan is interesting because their requirements must take into consideration many things like the climate and animal welfare,” Mr Chin told Asian Agribiz. In Bangladesh the company is manufacturing whole systems and taking on turnkey projects.
|Indonesia to broaden cattle imports|
[23 September 2015] Indonesia will seek to import cattle from a wider range of countries, said Indonesia’s Chief Economics Minister Darmin Nasution. This is reduce the cost of beef, which has contributed to keeping inflation high. “With more suppliers beef prices can be more competitive,” Mr Darmin said during the announcement of a stimulus package. The package is intended to support the rupiah, help contain inflation and prop up sagging growth in Southeast Asia’s largest economy.
|Illegal facilities taking up slaughter business|
[23 September 2015] Illegal slaughterhouses are taking a toll on licensed, qualified facilities in the southern Vietnamese province of Dong Nai by offering much cheaper prices, despite their openly flouting safety and hygiene regulations. One illegal facility can slaughter up to 60 pigs per night and the pork, with no safety and hygiene certificate, is distributed in Dong Nai and Ho Chi Minh City. Tran Van Quang, head of the Dong Nai Animal Health Agency, admitted that there are more than 60 illegal slaughterhouses in the province. These facilities are operating with impunity, leaving those with a safe and hygienic slaughtering process in dire shortage of pigs to maintain their operations.
|McDonald’s India to double number of outlets|
[23 September 2015] McDonald's India is stepping up its operations in the western and southern parts of the country, doubling its outlets by investing USD 113 million in the next five years. "We currently have 213 restaurants in India and are looking to add another 250 restaurants by 2020,” said Amit Jatia, Vice Chairman, Westlife Enterprise, a master franchisee for McDonald's here. According to him, they have brought down the calorie content in its sauces by 60-70%, cutting down the overall calories in the meal by 9%. “We also plan to increase our McCafe outlets from 45 to 140 in the next two years,” Mr Jatia added.
Livestock Asia Expo and Forum 2015
September 21-23 2015, Kuala Lumpur
Onsite report by RACHAEL PHILIP
Bangkok Ranch, Meng Kee Poultry win Asian Livestock Industry Awards
Thai duck producer and processor Bangkok Ranch Plc emerged the winner of the prestigious Asian Livestock Industry Award while the Emerging Poultry Integrator Award went to Meng Kee Poultry (M) Sdn Bhd, a broiler and dressed meat producer that has operations in Malaysia and Singapore. The awards were presented at the opening ceremony OF Livestock Asia Expo and Forum 2015, which opened in Kuala Lumpur yesterday. Mooted by Asian Agribiz, the award is presented bi-annually in association with United Business Media (M) Sdn Bhd. “Nominations for these awards have grown over the years. Asian producers are placing emphasis on good production standards, efficiency, productivity, safety, innovation, branding and marketing both locally and increasingly within the region,” said Asian Agribiz CEO Rex Holyoake.
Livestock Asia honours 17 Malaysian individuals and organisations
Livestock Asia 2015 opened which opened in Kuala Lumpur yesterday also celebrated 17 individuals and organisations in the 8th Malaysian Livestock Industry Award. Among the winners were Dindings Poultry Development Centre for Outstanding Broiler Farm Award and Outstanding Breeder Farm Award, while FFM Bhd emerged won the Outstanding Feedmiller Award. CAB Cakaran clinched the Outstanding Meat Processor award. Malaysia’s Ministry of Agriculture and Agro-Based Industry, Dato Ahmad Shabery Cheek, said producers must embrace technology in farming, especially when faced with current challenges such as limited resources, feeding a growing population and climate change. “We might have the technology and the tool but the challenge is in the adoption of these technologies,” he said.
Producers must find long-term solutions to challenges
The Malaysian livestock industry has to move out of its reactive approach to problems and instead understand to root cause of the problems and from there find solutions. For instance, said Steven Goh, Regional Business Director, Delst Asia Sdn Bhd, one of the causes of poor feed quality is mould in feed ingredient raw material. Mould is caused by is water activity. “Producers should keep water activity at a safe level and treat feed raw ingredients that are in storage,” he said. Delst is in the midst of building a new USD 7 million production facility in Westport, Malaysia. The facility, which will be ready in 2018, will manufacture the company’s DMX-7, which helps to inhibit mould growth in grain and feed. The new plant will have the capacity to produce 6000 tonnes/month compared to its current plant’s production capacity of 1000 tonnes/month.
Dindings to double production capacity
Malaysia’s Dindings Poultry Development Centre Sdn Bhd is in the midst of expanding its breeder and broiler businesses to accommodate its growth at its processing plant. The company will increase its breeder farms to four from the current two farms. It hopes to produce 40,000 tonnes of feed a month by then. Besides dressed chicken, the company produces Dindings, Ayam Jimat and Fiesta brands of ready-to-cook products. “We want to make sure that Malaysians have safe food that is free from antibiotics. We support the government’s move to encourage farmers to build closed houses," said Dindings Executive Director, Ang Pun Heng. Some 80% of houses in the country are open houses. Closed houses deliver production efficiency, lowers mortality rate and reduces complaints from residents and businesses close to the farms.
|Lay Hong plans for egg and downstream business expansion|
[22 September 2015] Malaysian poultry firm Lay Hong Bhd expects to attract institutional investors to subscribe to shares in the company now that rival company QL Resources Bhd had divested its 38.6% stake in the company. Group Managing Director Yap Hoong Chai said the group has set aside some USD 6.96 million as capital expenditure for financial year 2016 to grow and expand its egg and downstream business. Lay Hong is aiming to increase its egg production by 30% within three years and boost its export market to sustain growth. Meanwhile, a report from TheEdgeMarkets.com said QL Resources’ stake was sold to RHB Investment Bank Bhd, which has now placed the shares in several tranches. Kenanga Research said that QL Resources will remain as a business partner to Lay Hong Bhd, in a business deal which involves USD 11.61 million.
|KPPU: Indonesia’s beef self-sufficiency is too ambitious |
[22 September 2015] Indonesia’s monopoly watchdog said that the government’s goal to achieve beef self-sufficiency by 2019 is too ambitious, warning of possible scarcity if the administration of President Joko Widodo continues to aggressively pursue the target. “Targeting to be self-sufficient in beef by 2019 is too soon. It shouldn’t be a five-year target, maybe a 10-year,” Syarkawi Rauf, Chairman of the Business Competition Supervisory Commission (KPPU). “Self-sufficiency means lowering the portion of import, however the current local cattle population won’t be able to completely cover the demand, which will lead to beef becoming scarce,” he explained.
|India releases guidelines for biosecurity for poultry farms|
[22 September 2015] India’s Department of Animal Husbandry, Dairying & Fisheries (DADF) recently released the ‘General guidelines for biosecurity at Central Poultry Development Organizations (CPDO)'. Rakesh Kumar Dogra, Senior Officer with DADF told Asian Agribiz that the department from time to time reviews the biosecurity situation in CPDOs. The last biosecurity guidelines was issued in 2013. “It was decided to revisit the biosecurity guidelines in light of latest developments and to incorporate some practices for better efficacy,” he said. According to him, basic tenets of revised guidelines is now applicable to state and private poultry farms and not just CPDOs.
|Indonesia’s fish canning capacity utilization not yet maximal|
[22 September 2015] Fish canning plants in Indonesia have not maximised capacity utilisation, according to the Indonesian Fish Canning Association. Of the total installed capacity of around 575,000 tonnes/year (225,000 tonnes/year for sardinella and 350,000 tonnes/year for skipjack tuna), the capacity used is only around 45%, said Adi Surya, Chairman of the association. “This is because it’s not easy to get the raw material, especially sardinella fish.” Mr Adi said that in the last five years there was no significant increase in capacity utilisation. From 2009 to 2014 the increase was only 10%. There are 38 fish canning plants in the country spread in Sumatera, Java and Bali, and of the plants 20% is foreign-investment companies.
AEC offers challenges and opportunities
[21 September 2015]
The Asean Economic Community (AEC) will be realised by the end of 2015. AEC envisages the following key characteristics; a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy. It will transform Asean into a region with free movement of goods, services, investments, skilled labour, and freer flow of capital. However, consequences of the trade bloc on the poultry industry and trade in the region has had mixed reactions as Asean member countries are likely to experience both opportunities and challenges with regional economic integration.
Thailand sees better flow of products via inland borders
AEC will allow for better flow of Thai chicken exports and related trade to member countries, especially those that share borders with Thailand such as Laos and Cambodia, Teerasak Urunanon, Executive Director of Charoen Pokphand Foods Plc (CPF) told Asian Agribiz. “Prior to AEC, products from Thailand went via border trade, and we sometimes smuggled across. But AEC will facilitate official flow of our products,” he said. Free flow under the trade bloc will benefit Thai poultry raising as raw materials for feed such as corn from Laos and Cambodia, for example, can be easily accessed, Mr Teerasak said. However, a concern is that Asean corn supply can also go outside the bloc if prices are more attractive, he pointed out. “Corn supply in Southern Vietnam, for instance, could go to China instead of Thailand. Price will be a factor to be considered,” he said.
Free flow of labour a boon to Thailand
According to the Thai Broiler Processing Exporters Association, labours from neighbouring countries namely Laos, Cambodia and Myanmar are expected to move freely into Thailand after the AEC and this would help ease the labour shortage problem in the poultry processing industry. Meanwhile, Mr Teerasak added that although more foreign labour is anticipated, the food and poultry processing sectors are still likely to face shortages so processors should look at automation. “We must opt for technology and automation to reduce our reliance on human labour,” Mr Teerasak said.
Investment base for Thailand
Several Thai companies such as CPF and Betagro have already invested in poultry and related businesses such as feedmills, farms and processing in AEC countries. Thai processors have production bases in Vietnam, Malaysia and Indonesia but most of the products are currently designated for those domestic markets. However, there are efforts to export chicken products from Indonesia to Japan. Bangkok Ranch, a Thai duck processing company, also has plans to extend its reach to Asean markets particularly Indonesia and Vietnam and also plans to invest in a duck processing plant in Indonesia.
Common effort on bird flu disease control
Thailand and other countries in AEC have conducted workshops on epidemic prevention that also includes the prevention and spread of the bird flu. Although Thailand has bird flu-free status, the free flow of people would raise concerns over the spread of the disease as several AEC countries are still riddled with outbreaks. The Department of Livestock of Thailand will continue to strictly implement bird flu x-ray and disinfection practices on regular basis, especially along the borders and risky areas, as a preventive measure.
Indonesia aims for AI-free status
Indonesian poultry industry is working hard to prepare itself and benefit from the AEC and gaining AI-free status is a goal. The Ministry of Agriculture of Indonesia since last year has been actively auditing and certifying poultry breeding, hatchery and commercial farming units. Recently the ministry certified 34 poultry production units with AI-free compartmentalisation status. Companies that received the certification are Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Malindo Feedmill, Sierad Produce, Sujaya Group and Kerta Mulia Sejahtera. Syukur Iwantoro of the Ministry of Agriculture said the compartmentalisation program is important for the companies to tap export markets in the region. This effort has already seen results as Myanmar recently sanctioned the import of PS broiler and layer hatching eggs from Indonesia.
Indonesia aims for corn self-sufficiency
For Indonesia, the AEC is driving it towards corn sufficiency. Indonesia is currently the region’s largest corn producer, however, its corn consumption continues to outpace domestic production. Corn is among the four strategic commodities accorded special attention in the blueprint of AEC to enhance food security. Indonesia wants to achieve corn self-sufficiency within two or three years, but this may be unrealistic as demand is growing at 40% annually, while domestic corn production has been growing at 6% annually. Agriculture Minister Amran Sulaiman remains optimistic that corn self-sufficiency can be achieved through state efforts such as adding 1 million ha of corn plantations, promoting the use of hybrid corn seeds and relying on state logistics agency Bulog for the availability of corn reserves and price stability.
Cold chain network offers competitive edge for Indonesia
Logistics and infrastructure are seen as weaknesses in Indonesia’s meat processing industry in the face of AEC. Bambang Sutantio, Advisor of the Indonesian Meat Processors Association, told Asian Agribiz that despite these weaknesses the industry could compete with other Asean member countries, saying that an established cold chain distribution network would offer a competitive edge. “It’s not easy for other countries to export processed meat products to Indonesia since they need to have a cold chain distribution network here,” said Mr Bambang. Haris Munandar, Head of Industrial Policy Assessment of the Ministry of Industry, said to help players in the industry improve their competitiveness within Asean, the ministry plans to offer incentives like tax holidays or lower taxes.
Vietnam will grow in competitiveness
Despite detractors who say that Vietnam’s livestock and poultry industries could lose out when trade blocs are formed, Dr Tong Xuan Chinh, Director of Livestock Production Department, Ministry of Agriculture and Rural Development (Mard), is confident that Vietnam will only grow in competitiveness. He told Asian Agribiz that big poultry companies in Vietnam, such as CP Vietnam, Emivest and Japfa Comfeed already operate an efficient farm-to-table system for poultry production. “These companies are expanding their businesses not only in poultry but also in pigs. Some new companies from Japan are looking at investment opportunities in Vietnam,” he said, adding “the local poultry sector will modernize and shift from household production to a more intensive and integrated farming system”.
While the AEC may increase the movement of meat products among member countries, these products must be well treated so that diseases such as avian influenza does not spread and other food safety risks are not breeched. “It will be important for member countries to develop standards on animal health, food quality and safety as well as technical standards for poultry raising, such as AEC GAHP, AEC GMP, etc,” said Dr Tong Xuan Chinh, Director of Livestock Production Department, Mard.
Opportunities with China
The advent of the AEC may provide future opportunities for expanded trade, according to an analysis by the Gira Asia Meat Club. Chinese and Asean officials recently agreed to speed talks to upgrade the China-Asean Free Trade Area. However, China’s poultry industry is suffering from overcapacity following a slump in demand due to AI and consumer safety concerns. China has not officially imported frozen or chilled poultry meat from any Asean nation in more than five years. An improved FTA might give Asean nations an edge as Chinese importers are looking to diversify their sourcing. Chinese producers are also looking to boost a modest trade in processed chicken products, as their main market in Japan has weakened due to safety concerns.
Philippines still focused on domestic market
Despite its AI-free status, the Philippine poultry industry is not ready for the AEC. While the bigger integrators are exporting, the volume remains small. The domestic market is still the main market for poultry producers. According to Atty Elias Jose Inciong, President of the United Broiler Raisers Association (UBRA), to say the Philippines is ready for the AEC is “wishful thinking.” He pointed out that the industry and allied industries like corn get little support from the government. Unlike Thailand, where the poultry industry is controlled by just a few corporations, in the Philippines a substantial commercial sector made up of small and medium players coexist with the big integrators. In such a situation, he pointed out that subsidies would be an ideal. Meanwhile, AEC provides challenges as it allows countries like Thailand to export easily to the Philippines.
Imports and investment implication
The Philippines still lacks a genuine quarantine system. As such imports are only inspected when they are in cold storage, where they can be mixed with locally produced chicken, at which time contamination could occur. The Philippine government still must address these and several other problems, said Atty Elias Jose Inciong. On a positive note, the AEC could result in more investments in the country, whether from multinational or domestic investors.
Non-tariff barriers prevalent in agri-food sector
While Asian tariffs are currently low, non-tariff barriers such as licensing, quotas, certifications, origin of the product, are increasing. This is especially prevalent in the agri-food sector. Puspanathan Sundram, Deputy Secretary of Asean, AEC, told Asian Agribiz these “road blocks at the national level in Asean countries must be dismantled to facilitate poultry trade”. He said the non-alignment of laws and regulations between AEC and the national economies will impede poultry exports within Asean. When these are out of the picture, he said companies will be able to place their production and processing facilities across Asean taking advantage of the factors of production. Meanwhile, Malaysian International Trade and Industry Minister Mustapa Mohamad said despite current global headwinds, Asean would be staying the course of regional economic integration. “We are committed to reducing the gaps among us and engaging more intensively with our partner countries.”
|Malindo confident of exports to Japan|
[18 September 2015] Indonesian poultry integrator Malindo Feedmill remains confident of exporting processed chicken products to Japan by the end of this year. The company has already secured a permit to ship chicken nuggets, karaage, wings and drumsticks, but has yet to find a suitable partner in the East Asian country, said Rudy Hartono, Finance Director. “But, [the goal of starting shipments] can still be realised this year depending on the negotiations,” Mr Rudy said, referring to ongoing talks with prospective partners. The setback may hurt the company’s sales, which was targeted to grow 10% to USD 344.6 million.
|Japanese seafood exports rising|
[18 September 2015] Demand for seafood has been dropping in Japan over the past decade as people eat more pork and beef, forcing domestic fishermen to look for buyers abroad. With the plunging yen, exports are surging, and companies like Yamato Holdings and ANA Holdings are expanding a delivery network across Asia. “We can offer fish we catch in the morning to buyers in the afternoon of the same day,” said Shigeru Koike, a fisherman in the port of Inatori. Foreign shipments by Japan reached 293,806 tonnes this year through June, up from 232,424 over the same period in 2014, according to data from the Ministry of Agriculture, Forestry and Fisheries.
|Lay Hong expects better performance in current FY |
[18 September 2015] Malaysian poultry integrator Lay Hong Bhd expects to perform better in the current financial year ending March 31, 2016 thanks to low feed prices and a favourable foreign exchange. “The current financial year will be better than FY15,” Group Managing Director Yap Hoong Chai said after the group’s annual general meeting. However, net profit growth would be under 10% driven by its chicken and egg business segments. For the first financial quarter ended June 30 2015, Lay Hong saw its net profit jump 66% to roughly USD 600,000, despite a 1.04% fall in revenue to USD 35.88 million. Mr Yap said the group’s export segment is benefitting from a weaker ringgit. Lay Hong exports eggs to Singapore and Hong Kong, which combined account for about 20-30% of the group’s revenue from the egg segment.
|Indonesia needs to import 390,500 beef cattle in Q4|
[18 September 2015] Indonesia will need to import 390,500 heads of cattle, including 100,000 heads for breeding, and 38,400 tonnes of frozen beef in Q4 to meet domestic demand. Indonesia has already issued permits for the import of 482,600 heads of cattle and 45,000 tonnes of frozen beef in the first nine months of this year, said Suhanto, Secretary at the Trade Ministry’s Domestic Trade Directorate General. Local businesses are concerned that, without the additional import, current stocks of cattle will run out in October, said Yudi Guntara Noor, Deputy Chairman of Agri-industry and Livestock at the Indonesian Chamber of Commerce and Industry.
Asian Agribiz regional dairy update
[18 September 2015]
Amul to set up cheese plant in Gujarat
Gujarat Cooperative Milk Marketing Federation (GCMMF) in India, owner of dairy brand Amul, has plans for a greenfield cheese plant in Palanpur in Gujarat state. Amul hopes to service the horeca sector, which contributes substantially to the company’s revenue. The USD 92 million project would initially produce mozzarella and processed cheddar cheese before venturing into other varieties. “The new project is also expected to increase Amul’s share in the Indian cheese market from the present 65%,” R S Sodhi, Managing Director of GCMMF said.
Japfa, Food Union plan milk processing plant in China
Singapore-based agrifood company Japfa Ltd and European-based dairy and milk processing company Food Union Group unveiled a jv between Japfa’s 61.87% owned subsidiary, AustAsia Investment Holdings (AIH), and Food Union to build, own and operate a USD 200 million premium milk processing plant in Shandong province, China. AIH will invest up to USD 20 million in stages for a 10% stake in the milk processing plant. The approximately 300,000-metric tonnes per annum milk processing plant is about 5km from AIH’s dairy farms in Dongying city, Shandong province. The plant is expected to commence operations in the first quarter of 2017.
Financial support for Philippine dairy industry
Philippine dairy farmers have a new fund source as the Development Bank of the Philippines (DBP) and the National Dairy Authority (NDA) signed a memorandum of agreement for a special lending program aimed at aiding the local dairy industry in boosting production, a report by BusinessWorld said. The credit program is meant for projects throughout the dairy value chain from production to marketing, and is available to funding institutions as well as “all types of duly-registered dairy businesses and even local government units and government-owned and controlled corporations with dairy development initiatives and commitments.”
Amul introduces India’s first lactose free milk
India’s Gujarat Cooperative Milk Marketing Federation (GCMMF) is all set to launch the country’s first branded lactose free milk under its Amul brand. R S Sodhi, Managing Director of GCMMF is confident that many consumers in India will opt for lactose free milk. “We are yet to work out pricing but like other Amul products, this too will be reasonably priced,” he informed. According to him, a large percentage of Amul’s turnover comes from liquid milk sales and premium products like this is expected to increase the revenue for the dairy cooperative.
China dairy production down for the first time in 30-years
Dairy production in China fell for the first time in 2014 over the last three decades, said a Research and Markets report. Last year China produced 26.5 million tonnes of dairy products, down 1.23% year-on-year. Major regions such as Inner Mongolia, Heilongjiang and Shandong all reported a decline in production. The report said output showed signs of slowing down in 2009, when growth averaged 15-20% per year. Weak consumption growth resulted from high price and high cost of production; imports of cheap dairy products and frequent safety incidents lowered confidence of domestic dairy products. According to the statistics, 2.1 million tonnes of dairy products were imported into China in 2014, increasing 12.30% year-on-year.
Prabhat Dairy’s IPO fetches USD 45 million
The initial public offering of India’s Prabhat Dairy has fetched the company over USD 45 million, the company said in a statement. With this, Prabhat Dairy has successfully concluded the IPO despite a soft market. The proceeds from the fresh issue would be used for repayment of loans, capital expenditure and general corporate purpose. On the final day of the closure period, the integrated milk and dairy ingredients company lowered the price band to USD 1.72-1.88 a share from USD 2.09-2.20 and also extended the issue closure by three days amid tepid response from investors.
Fonterra opens first plant in Indonesia
Fonterra Brands Indonesia began operations at its USD 23.7 million blending and packing plant in Bekasi, east of Jakarta, recently in efforts to meet growing demand for milk and dairy products. The plant, which the company began building in March last year, is the New Zealand dairy cooperative’s first investment in Indonesia and its biggest in Southeast Asia in a decade. “Fonterra has supplied quality dairy-based nutrition to Indonesia for more than 30 years. The opening of the plant is an exciting step for the continuation of our relationship with Indonesia, as well as the local dairy industry,” said John Wilson, Fonterra Chairman. The plant can produce up to 87,000 packs of milk products daily.
Sahayog Dairy raises USD 1.6 million
Sahayog Dairy, a dairy start-up based in Madhya Pradesh state in India has raised USD 1.6 million from social venture capital investor Acumen. The firm will use the funds for expansion of its chilling and processing plant in Madhya Pradesh. The dairy sources its milk from 23,000 farmers in five districts in the state. It also operates 272 primary milk collection centres, where milk is tested and evaluated. “By bringing milk directly from dairy farmers, Sahayog Dairy creates a fair and transparent marketplace for rural farmers,” Ajit Mahadevan, Director, Acumen India said.
|Sujaya Group plans for modern pig slaughterhouse|
[17 September 2015] Indonesia’s Sujaya Group based in West Kalimantan plans to set up a pig slaughterhouse next year. Dede Slamet Ruchyadi, Advisory Board Member, told Asian Agribiz that the group’s subsidiary PT Fajar Semesta Indah involved in pig farming, has a total pig population of around 70,000 heads. “So it’s important to have a modern slaughterhouse to reduce our dependence on live pig markets,” he said. Mr Dede said the slaughterhouse, which will be located in Singkawang, will have an installed capacity of 500-1000 heads per day. Target markets of products (carcasses and portioned cuts) from the slaughterhouse are domestic markets, Singapore and Sarawak in East Malaysia.
|Itoham, Yonekyu jv to create largest ham and sausage vendor|
[17 September 2015] Japan’s second-largest meat processor Itoham Foods and seventh-ranked Yonekyu are planning an operational merger that will create the country’s biggest vendor of ham and sausage and position them for a push beyond a shrinking domestic market. Itoham President Mamoru Horio is expected to head the holding company. The combined entity will have USD 5.24 billion in revenue based on the units’ fiscal 2014 results.
|No spike in pork prices in Cambodia|
[17 September 2015] As Siem Reap battles porcine reproductive and respiratory syndrome (PRRS), consumers are staying away from pork. Several hotels in the province have replaced pork with fish, beef or chicken. Pork prices are reportedly stable and there are no reports of shortages. However, the country will observe the 15-day Pchum Ben festival in about a month’s time where respect is paid to ancestors. There are concerns that supply of pork may be in short supply then. Tan Phannara, chief of the Animal Health Office at the Agriculture Ministry, said the country will continue to import pork to stabilise prices. The country’s last severe outbreak of PRRS was in 2009, when more than 1000 pigs died.
|Vietnam police investigate pig farms amid drug overuse concerns|
[17 September 2015] Police in some southern provinces in Vietnam have launched investigations into local pig farms following allegations that they overused banned substances to produce more lean meat, reported Thanh Nien News. In Tien Giang, 32 of 50 samples recently taken from 12 big farms were tainted. So far only one farm owner admitted to drug overuse, while others blamed it on the feeds, said the news report. In Dong Nai, half of six newly inspected pig farms were using large quantities of the drug, some 556 times higher than the legal limit.
|Agco launches new plant in China|
[17 September 2015] Agco which manufactures and distributes agricultural equipment, has opened a manufacturing base in Changzhou, China investing USD 300 million in factories. “China is one of the world’s largest farm equipment markets,” said Martin Richenhagen, Chairman, President and Chief Executive Officer. “The opening of the new Changzhou location will enhance our r&d and manufacturing capacity in China, and is a critical step in the implementation of our development strategy for the Asia Pacific region.” Since entering China in 2001, the company has taken a series of measures to expand the business. The plant will serve both domestic as well as export markets. Established as a manufacturing and r&d base, the company said it aims is to promote the localisation of product manufacturing in China.
|McDonald’s India to double outlets |
[17 September 2015] McDonald's India is stepping up its operations in the western and southern parts of the country to double its outlets by investing USD 113 million in the next five years. 'We currently have 213 restaurants in India and are looking to add another 250 restaurants by 2020,” said Amit Jatia, Vice Chairman, Westlife Enterprise, the master franchise holder for McDonald's here. According to him, they have brought down the calorie content in its sauces by 60-70%, which has cut down the overall calories in the meal by 9%. “We also plan to increase our McCafe’s within our outlets from 45 to 140 in the next two years,” Mr Jatia added.
|Strong collaboration needed to control AI in Indonesia |
[17 September 2015] Highly Pathogenic Avian Influenza (HPAI) continues to present a threat to poultry health and production in Indonesia. Since 2006, the FAO Emergency Centre for Transboundary Animal Diseases (ECTAD) Program, in partnership with Indonesia’s Directorate General of Livestock and Animal Health Services, has provided capacity development and technical assistance to close to 3000 animal health officers in 31 provinces. James McGrane, FAO ECTAD Team leader, stressed the need for investing in further capacity development to ensure a sustainable HPAI prevention and control strategy. “The key to the positive progress made in HPAI prevention and control in Indonesia lies in the strong collaboration between the government, the private sector and grass-root communities,” he added.
|CPF honoured with DJSI selection|
[16 September 2015] Charoen Pokphand Foods Plc (CPF), the leading Thai food and agro-industry conglomerate has been officially selected to join the 2015 Dow Jones Sustainability Indices (DJSI) - Emerging Markets. CPF is the first Thai integrated agro-industrial conglomerate to be selected by DJSI. Adirek Sripratak, President and Chief Executive Officer said that joining DJSI reflects CPF’s strong commitment to sustainability throughout the business. Teerasak Urunanon, Executive Director of CPF told Asian Agribiz: “We will continue to upgrade our standards and move forward. This listing on DJSI reflects our credibility in the global market. It supports our strategy to become the Kitchen of the World”. CPF share increased more than 3% yesterday to close at THB 21.20 per share after the company’s listing on DJSI. The company is also expected to be selected to join the listing under Thailand Sustainability Investment (THSI) that will be announced on October 15.
|Cambodia dispatches 13,000 vets to help curb spread of PRRS virus|
[16 September 2015] Cambodia’s Ministry of Agriculture has called on the services of 13,000 veterinarians listed with the ministry to help eradicate the current outbreak of blue-ear disease, or porcine reproductive and respiratory syndrome virus (PRRS), in Siem Reap. The disease, first spotted on August 14, had killed more than 1200 animals and sickened more than 3000. Two districts in Siem Reap -- Sotr Nikum and Chi Kraeng -- have borne the brunt of the outbreak. According to one news report dead pigs in Siem Reap were either buried or sold to crocodile farms. “The Agriculture Ministry has about 13,000 veterinarians to inspect the transportation and trading of pigs, to ensure the use of antibacterial spray and injection of pigs, to cure sick pigs and educate local people to participate in inspections until early October,” Lor Reaksmey, spokesman for the ministry, said.
|Farmers told to seize opportunities with AEC|
[16 September 2015] Poultry and pig farmers in Malaysia were told to seize the opportunities that the Asean Economic Cooperation (AEC) will bring. “Stakeholders in the industry must understand how they can gain from the AEC,” Pushpanathan Sundram said. Mr Sundram, Managing Director Asia Pacific at EAS Strategies, was involved in the crafting of the AEC blueprint. He was speaking at a special seminar organised by the Federation of Livestock Farmers Association of Malaysia on the AEC. He said SMEs must be made aware of opportunities and risks that the AEC can bring and adjust, adapt and harness the opportunities. “Companies must develop regional strategies within Asean. They should tap on economies of scale and utilise dedicated industries or trade associations to shape policies and regulations in AEC.”
|Kupang aims to become beef cattle production hub|
[16 September 2015] The local government of Kupang in Indonesia’s East Nusa Tenggara plans to dedicate 400ha for a beef cattle ranch in an effort to become a beef cattle production hub over the next five years. The project is a collaboration between the government of Kupang, the government of Jakarta, and the Indonesian Institute of Sciences. “The land will be developed as a ranch, so that it will be easier to breed cattle and send the beef to Jakarta,” said Ayub Titu Eki, Kupang District Chief. If successful, an Australian investor has promised to help establish a meat-processing facility in the region," said Mr Ayub.
|Lay Hong names new exec chairman|
[16 September 2015] Malaysian egg producer Lay Hong Bhd has redesignated its Group Managing Director Yap Hoong Chai as its new Executive Chairman. Mr Yap, a founding member of the group, is also brother to two company directors Yeap Weng Hong and Yeap Fock Hoong, Lay Hong’s filing with Bursa Malaysia showed. Mr Yap was first appointed to the board of directors of Lay Hong in 1983. As at February this year he held a 1.18% direct stake, with a 42.79% indirect stake in the company. Mr Yap was previously the President of the Selangor Livestock Association’s egg division and is currently the Chairman, Layer Unit, of the Federation of Livestock Farmer’s Association of Malaysia.
|Indonesia receives Australian live cattle shipment|
[16 September 2015] The first shipment of Australian live cattle has arrived in Jakarta following a drastic import cut earlier this year. More than 2000 heads of cattle were unloaded on September 2, a far cry from 12,000 head per shipment at the peak of the trade. A massive 80% slash in Australian imports ordered by the Indonesian government in July saw local beef price shoot up on low supply. David Lamb, Head Stockman on board the first shipment, said he was not happy about the uncertainty and that there were more stable markets Australia should be concentrating on. "Shipping such a small number to Indonesia is not cost effective,” he said.
|QL sells its shares in Lay Hong|
[15 September 2015] Malaysia's QL Resources Bhd, which failed to get board representation on Lay Hong Bhd’s board, had divested its 38.6% stake for USD 14.04 million, reported The Star. The agri-food and poultry giant said last week it had sold the stake in a direct business deal. It explained that since it does not have any board representation in Lay Hong and was unable to influence its corporate direction, it decided to dispose of the shares and realise an investment gain. The disposal is expected to net in a total gain of USD 4.37 million, considering that its cumulative cost of investment in the poultry firm to date stood at USD 9.67 million. The identity of the buyer was not disclosed in the QL Resources announcement.
|GPPU estimates Indonesia’s broiler DOC production to reach 3.3b|
[15 September 2015] The Indonesian Poultry Breeders Association (GPPU) estimates a final total stock of 3.3 billion broiler DOC this year, while domestic demand stands at only 2.44 billion, an oversupply of 35%. At this stage, the listed poultry companies such as Charoen Pokphand, Japfa Comfeed and Malindo Feedmill are cutting DOC production by 15-20%. Michael W Setjoadi, Research Analyst of Bahana Securities, said many small breeding companies are going out of business. “We believe the government may intervene to help small breeders and broiler farmers.” Mr Michael said to stabilise the poultry market, the management of a leading poultry company has indicated the possibility of the government creating floor and ceiling prices or DOC production limits through GPS import quotas, which were cut by 8% year-on-year earlier this year.
|Chinese pork producers hoping to avoid price plunge|
[15 September 2015] Chinese pork producers are anxiously watching pork prices, which has levelled off in the last month after rising from March through early August. The average pork price was USD 3.95/kg in the first week of September, and the live pig price, also stable for the last month, was at USD 2.84/kg, according to government figures. Two producers who lost money in 2014 told Asian Agribiz that they have been booking profits since the price turned around a month after Chinese New Year. Pork consumption normally picks up in the fall and winter, but in 2013 and 2014 the price plunged from September to the New Year because of low demand and over production. Producers are hoping that severe herd culls over the last year have wrung the slack out of the market, allowing them to book profits this fall and winter.
|Cargill helps increase beef & milk production in Indonesia|
[15 September 2015] Indonesia’s government continues to strive to increase national beef and milk production through a cattle feed procurement program. One strategy of the program is through partnership with Cargill Feed & Nutrition Indonesia, a producer of quality beef & dairy cattle feed in the country. In addition to providing feed, Cargill also helps train the farmers on effective and efficient feeding management in order to achieve optimum production. Recently more than 500 tonnes of beef & dairy cattle feed were given to 25 groups of farmers in Jogjakarta. “We are happy to get the trust from the central and local governments to help them supply good quality beef & dairy cattle feed for farmers,” said John Miftah Ahmad, Cargill Sales Manager for Ruminants, in a release made available to Asian Agribiz. Cargill also cooperates with the local governments of West Bandung, Bandung, Sukabumi, Blitar, Banyuwangi and regencies in West Sumatera.
|Meat sale ban reduced to two days in Mumbai|
[15 September 2015] Following opposition from political parties and civil society, the meat sale ban imposed in India’s Mumbai city on account of a Jain religious festival was reduced to two days from four days. Instead of meat being banned on September 10, 13, 17 and 18, only September 10 and 17 have pushed through. The decision by the city's civic body came as the Bombay High Court described the ban as regressive. Shiv Sena, a political party in Maharastra state also protested the ban by announcing that it would defy the ban and ensure that meat is openly sold and eaten in the financial capital on the days of the ban.
Food ingredients Asia 2015 highlights progress
Onsite report by NITSARA THONGRUNG
[15 September 2015]
Food ingredients Asia 2015 held in Bangkok from September 9-11 showcased advanced products and technologies for food ingredients to meet demand from processors who are looking for innovations and product development. This year more than 650 companies from 40 countries participated in the exhibition. Around 15,000 visitors were expected to have attended the event, with Asean visitors increasing by around 30%.
DSM, BASF promote healthy additives
Major producers of food additives such as DSM Food Specialties and BASF exhibited innovative products at the event. DSM Food Specialties promoted MEG-3, sustainable, pure and trusted source of EPA/DHA omega-3 and Life's DHA, a vegetarian algal source of DHA omega-3 for brain and eye health. The products are suitable for many applications, providing product differentiation and added value to diary products and processed meat. BASF, offered innovative ideas with their Vitamin E product that can be used as an antioxidant to reduce rancidity in meat products.
Products for quality, healthy and effective cost
Okuno Auromex Food offers a range of food ingredients for meat that can extend shelf life of products like sausages and ham, improve texture and yield and enhance water and fat holding. These help increase meat product quality and cost saving. Meanwhile, NutritionSc Co promoted a yeast extract that enhances salty flavours so that producers can reduce the use of sodium and follow the low-sodium food trend without compromising on taste. The company also offered meat enhancers and other ingredients for improving texture and yield of ham and sausage products.
Thai sausage producer promotes brand
A Thai producer of Vietnamese-style sausages promoted its Wassana Porkroll brand at the show. Wassana Porkroll has been building its brand of the same name for two years but has been producing and supplying the products for more than 40 years. Owner, Ruamporn Sirapanichart told Asian Agribiz that the company invested in new technology from Handtmann and changed from traditional packaging using banana leaf to food-grade German imported plastic for cost effective and safety reasons. The company also uses food ingredients to achieve premium quality.
|QL Resources may divest stake in Lay Hong|
[14 September 2015] Malaysia's QL Resources Bhd’s Managing Director and Founder Dr Chia Song Kun brushed off speculation that it would make a renewed bid for Lay Hong at a higher price following the failed takeover bid last year. In a local daily, he noted that QL Resources was assessing its options, which may include selling off its 38% stake in Lay Hong because it has no board representation. Last September the company launched a voluntary takeover of Lay Hong, putting on the table an attractive USD0.80 a share, an almost 40% premium to the five-day weighted average price. This came after Lay Hong’s controlling shareholders decided not to re-elect QL Resources’ sole representative on the board.
|US companies plead guilty to mislabelling halal beef exports|
[14 September 2015] Two companies charged in a US court for conspiring to export misbranded beef products to Malaysia, Indonesia and other markets have pleaded guilty, said an Associated Press report. In a plea agreement, Midamar Corp and Islamic Services of America (ISA) pleaded guilty to one count of conspiracy to make false statements on export certificates, sell misbranded meat and commit wire fraud, among other offences. With the plea bargain, each company will be required to forfeit USD 600,000 in proceeds, on top of a possible probation term and an additional fine at sentencing. The two companies were hauled up before the federal court last December for selling at least USD 4.9 million worth of beef to Malaysia, Indonesia and other countries that were labelled halal despite flouting Islamic practices.
|Jinxinnong buys vet company to keep abreast of pig industry consolidation|
[14 September 2015] Shenzhen Jinxinnong, a major pigfeed producer based in southern China, has acquired a 51% stake in Wuhan Huayang Veterinary Medicine Co for USD 15.6 million, according to an announcement on the company website. Jinxinnong, also known as Golden New Agriculture, said the changing face of China’s pig industry was behind the purchase. The company said the growing scale of pig facilities and high efficiency production methods meant that the market for animal health products would also expand quickly over the next 15 years. The contract contains a repurchase agreement if Huayang is unable to hit profit benchmarks with the new investment.
|NZ fighting Indonesia beef trade curbs|
[14 September 2015] New Zealand is prepared to fight for the principles of trade in its beef battle with Indonesia. This year, New Zealand and the US requested that a World Trade Organisation dispute settlement panel assess the import restrictions that led to a collapse in Kiwi beef exports to Indonesia. The non-tariff barrier saw the value of New Zealand beef and offal exports slump to USD 48.8 million in 2012 from USD 185 million in 2010. “We’re prepared to fight for what we think are the principles of trade,” said Trevor Matheson, New Zealand’s Ambassador to Indonesia. “These are principles that Indonesia accepted by becoming a member of the WTO.”
|Mumbai abattoir to get bio-methanation plant|
[14 September 2015] Deonar abattoir in Mumbai city in India is set to install bio-methanation plant to get rid of solid waste generated by the slaughterhouse. The abattoir has a capacity to slaughter 4,000 animals a day and 1200 workers are employed in it. Brihanmumbai Municipal Corporation (BMC) also known as Municipal Corporation of Greater Mumbai recently approved the upgrade. The project will be undertaken at an estimated cost of USD 1 million. Earlier, a study undertaken by Maharashtra Pollution Control Board discovered that the abattoir was in urgent need of an environment friendly method to treat solid waste.
CLFMA addresses profitable livestock production
Onsite report by SM ARUN
[14 September 2015]
The 48th Annual General Meeting & 57th National Symposium of Compound Livestock Feed Manufacturers' Association (CLFMA) of India, was held in Jaipur on September 10 and 11. Attended by over 500 delegates, the meet focused on the sustainable and profitable growth of livestock agriculture in India.
Compound feed industry expected to grow 8% by 2020
The compound feed industry in India is expected to grow 8% to 40 million tonnes by 2020, according to Amit Saraogi, CLFMA Chairman said. In his address at the AGM, he said that 28 million tonnes of compound feed was produced in India in 2014-15 to support the growing livestock industry. “India’s livestock GDP is growing at 3.5% and the growth rate of the dairy industry and broiler meat industry are 6% and 8% respectively,” he said. According to him, one third of the total animal feed requirement of 80 million tonnes in India is in the form of compound feed.
Animal protein consumption expected to double
Factors like urbanisation and income growth will result in increase in animal protein consumption in India, according to Mangesh Wange, Deputy Chairman of CLFMA in his address. “In the next few years, the growing population in the country is expected to consume almost double the amount of animal protein,” he said. Mr Wange also pointed out that the industry requires R&D in scientific and technological innovation along with the right policy approach to face the challenges in enhancing and sustaining productivity.
Poultry industry has benefited from scientific advancements
The Indian poultry industry has benefited immensely from scientific advancements, according to GB Sundararajan, Managing Director of Suguna Foods Pvt Ltd. In his presentation on ‘Increasing consumption of animal protein’, he said that the Indian poultry industry has fully utilised the benefits of poultry genetics and other innovations in the feed industry. “The industry should sponsor studies to determine how the consumption of chicken meat has benefited consumers,” he said. He also said the level of antibiotic residue in chicken in India is way below the maximum residue level prescribed by the US and EU.
EW Nutrition concludes field trials for alternatives to AGPs
EW Nutrition has successfully completed field trials for alternatives to AGPs in India. Speaking to Asian Agribiz, Dr P Kowsigaraj, Zonal Business Manager of South India & Sri Lanka the field trials were undertaken over the last two years and trial data had shown excellent results. “Awareness on alternatives to AGPs among Indian poultry, aqua and dairy sector players has increased and acceptance for our range of alternative feed additives and secondary plant compound (SPC) products has gone up,” he said. According to him, their trial data has proved that increased performance is possible without AGPs.
NCDEX to launch forward trading contract in soybean meal
India’s National Commodity & Derivatives Exchange Limited (NCDEX), the country’s second largest commodity and derivatives trading platform is expected to launch forward trading in soybean meal by the end of September. NCDEX is already trading soybean and refined soy oil in forward transactions. “We are optimistic as the poultry industry in India is a major consumer of soybean meal,” an official with NCDEX told Asian Agribiz. According to him, NCDEX is expecting approval for trading soybean meal from its regulator Forward Markets Commission (FMC) shortly. “The forward trading contract for soybean meal will be in both non-transferable specific delivery and transferable specific delivery at fixed price,” he added.
Venky’s to distribute Delacon products in India
Phytogenic feed additives company Delacon has entered into a distribution agreement with Venkateshwara Hatcheries (VH) Group in India to distribute its products in the country. Revealing the development to Asian Agribiz, Dr Jeetendra Verma, Regional Manager, South Central Asia of Delacon said that Delacon products will be made available to its customers in Q3 of 2015-16. “Prior to the agreement, Mr Deepak Khosla, General Manager (Marketing) and Mr Sudhir Kulkarni, General Manager (Finance and new projects) visited our Performing Nature Research Center (PNRC) in Czech Republic to learn about our manufacturing and R&D facilities,” he said. Delacon has also done product training with Venky’s team at six different locations in India.
|Bullish outlook for poultry industry|
[11 September 2015] The outlook for the global poultry industry for late 2015 and 2016 is bullish, as feed prices are still expected to remain at low pricing levels, and global breeding stock supply will be very low in regions with AI-related import restrictions, such as China and Southeast Asia. According to Rabobank's latest Poultry Quarterly Q3 report, supply is balanced in most regions, beef prices are high, feed costs are low. Nan-Dirk Mulder, animal protein analyst at Rabobank said China is expected to face a shortage in poultry and pork supply next year and this could become a major swing factor for the global poultry industry. The AI situation in the US is a major wild card for the industry outlook in the second half of this year.
|Diversification a boon for QL Resources|
[11 September 2015] Diversification has helped QL Resources Bhd weather the ringgit’s current fall. The company said its diversified core businesses have provided a natural hedge for each other. The export of its surimi products is earning US dollars, which has helped offset adverse impact the company may have on the weaker ringgit such as the importing of feed for livestock farming. For Q1 ended June 30 the company posted a profit of USD 9.50 million, a 1.4% growth from the previous corresponding quarter. The company's integrated livestock business saw profit before tax fall by 30% year-on-year to USD 3.02 million, while revenue remained flat at USD 87.87 million.
|Meat ban in Mumbai provokes controversy|
[11 September 2015] The move by India’s Mumbai civic body to ban meat for four days has sparked controversy throughout the country as it would amount to imposing food habits on the people. Mohammed Ali Qureshi, President of Bombay Suburban Beef Dealers' Association said that the meat ban cannot be justified as 98% of the population in Mumbai will be affected. “The vegetarian Jain community forms just 2%,” he said. The move has come under sharp criticism as it will affect thousands of butchers and traders in Mumbai city. Manish Tewari, a political leader commented that the government cannot impose rules on what and when to eat.
|Indonesia’s smart fish feeder maker gets funding for expansion|
[11 September 2015] Indonesia based eFishery, a smart fish feeder manufacturer, has received funding from Aquaspark, a Netherlandsbased aquaculture investment fund, and Indonesian venture capital firm Ideosource. The funds will be used to broaden eFishery’s distribution network locally. Traditionally, fish feed forms between 50-80% of the fish farming overhead costs and overfeeding negatively impacts the environment in many ways. eFishery tackles this through an affordable, techbased solution in the form of an automatic smart feeder that uses sensors to measure fish appetite and appropriate feed amounts.
|Taiwan reports separate H5N8, H5N2 outbreaks|
[11 September 2015] Taiwan has had two new highly pathogenic avian flu outbreaks, one involving the H5N8 strain and one caused by the H5N2 virus, according to separate OIE reports. The H5N8 outbreak affected a farm of 7000 ducks in Chiayi County at the end of August. Meanwhile H5N2 struck a Yunlin County farm containing 23,240 native chickens. Taiwan has battled scores of H5N8 and H5N2 outbreaks this year, many in Chiayi and Yunlin counties. Control measure have been put in place in both areas, including disinfection, control of poultry movement, and enhanced surveillance for three months.
|Potential for mid-sized food companies to grow in Asean|
[10 September 2015] Asean’s economic integration is expected to take longer than anticipated due to numerous challenges and stages of growth that member countries have to contend with. Still, with a population of over 600 million and growing incomes, the region is expected to generate demand for high protein and convenient food products, said Pawan Kumar, Director Food and Agribusiness Research and Advisory, Rabobank. Mr Kumar told Asian Agribiz that mid-sized companies should grab the significant potential available to address this market though online sales.
|Thaifoods Group maintains September IPO plan |
[10 September 2015] Thaifoods Group will maintain its plan for an Initial Public Offering (IPO) in September as the market situation is favourable following a cabinet reshuffle. Economic stimulus measures were introduced and the prices of chicken and pork are rising, said Chairman of the Executive Committee and the Chief Executive Officer, Winai Teawsomboonkit. The company said in August following the bomb blast in central Bangkok that the IPO would be postponed due to the unfavourable investment sentiment. TFG expects to raise fund through the issuance of 1.4 billion ordinary shares.
|CCK sees higher turnover, earnings in Q2 2015|
[10 September 2015] CCK Consolidated Holdings Bhd (CCK) based in Kuching, Sarawak in East Malaysia reported higher turnover and earnings in Q2. The poultry products distributor told Bursa Malaysia that revenue in Q2 grew 5.7% year-on-year to USD 28.03 million while profit before tax in Q2 increased by 41% year-on-year to USD 0.98 million. CCK attributed the growth to increase in sale from the group’s expansion through increasing stores or outlets at strategic locations. Moving forward, CCK said the group will continue to look for opportunities to expand its network of outlets in both Malaysia and Indonesia.
|Meat sale banned in two cities in Maharashtra state|
[10 September 2015] India’s Brihanmumbai Municipal Corporation has banned the sale of meat in Mumbai for four days from September 10-18 on account of a Jain religious festival. “Slaughter houses in Mumbai will be shut on these days and sales will be prohibited after Mumbai’s vegetarian Jain community demanded the ban,” Rakesh Samrat, an official with Mumbai Corporation told Asian Agribiz. The ban covers slaughter of buffaloes, goats and hogs, but excludes fish and poultry. According to him, the four day ban has been in place for the past 10 years. Similarly, Mira-Bhayander Municipal Corporation in Maharashtra state has also banned the sale of meat for eight days during this period.
|Japan to set standards for beef aging|
[10 September 2015] Japan’s Agriculture, Forestry and Fisheries Ministry has begun considering setting standards for aging beef, a practice that has sparked an ongoing red meat boom. While the number of restaurants offering aged beef, prized for its deep flavour, has been rapidly increasing, the levels of quality and hygiene control differ among restaurants. By setting certain public standards, the ministry aims to provide reassurance to consumers and help the trend flourish. The ministry plans to add dry aging to the scope of the Japanese Agricultural Standards (JAS) and establish standards for production methods and the conditions of a completed product.
|Karnataka's food processing policy to raise farm income|
[10 September 2015] India’s Karnataka state is formulating a new food processing policy by exploring avenues to set up medium sized food processing units. Karnataka’s Industries Minister RV Deshpande said that the government is also planning to organise a Global Investors Meet this year for the development of this sector. “Food processing has the potential to raise farm incomes through value addition of agricultural produces,” he said during a recent meeting and added that potential for food processing sector is huge in Karnataka.
Asian Agribiz Layer Feed Quality Conference
[09 September 2015]
Asian Agribiz Conferences successfully conducted its inaugural Layer Feed Quality Conference in Jakarta, Indonesia on September 7. Attended by more than 160 participants from Indonesia, India, the Philippines and Sri Lanka, the conference saw 11 reputed professionals offer a dedicated focus on layer nutrition, management and feed production, which is important to build a sustainable flock.
DQY surpasses with egg branding strategy
Keynote speaker Han Zhaopeng, Vice Director R&D of Beijing DQY Agricultural Technology from China, shared his company’s strategies as a leading and innovative egg producer in China. Mr Zhaopeng said current challenges in the China egg industry include price fluctuation, food safety, complicated disease, poor marketing and the environment. To deal with these challenges, the company chose to brand its eggs to ensure quality, safety and traceability. “We differentiate our eggs and pack it well. And then we work hard to promote it,” he said. Currently DQY raises 3.6 million birds, and owns three grading facilities, three breaking plants, a further processing plant, two feedmills and biogas facilities. In future DQY plans to provide more product choices.
Improving nutrient retention for layers
Tools are available to improve nutrient retention for layers, according to Rosalina Angel, Associate Professor at the University of Maryland, the US. Tools such as feeding closer to requirements, ingredient selection and knowledge, particle size and feed additives, if used correctly can have a large impact on how well the animals use the nutrients that are in the diet for productive means. Focusing on calcium, Dr Angel recommended the participants select sources based on particle size and solubility to minimise bone mobilization, decrease incidence of cage layer fatigue and cracked or soft shelled eggs, and increase sellable eggs per hen.
Selecting fibre sources
Selecting the right fibre source is important, according to Ike Ng, Asia Pacific Manager for Animal Nutrition of J Rettenmaier & Soehne (JRS). He said traditional fibre sources, which contain significant amounts of soluble fibre, bear mycotoxin risk. Meanwhile, insoluble crude fibre concentrates based on lignocellulose don’t carry mycotoxin risk and are 100 % insoluble, “so this is a good fibre source for layer diets,” he remarked. Trials have shown that insoluble, non-fermentable crude fibre concentrates have a positive impact on pullets on weight gain and gizzard size and in the laying stage on wet litter, feather pecking/cannibalism and performance.
β-mannanase supplementation in layer diets
In recent years, better awareness of the negative effects of β-mannan and better understanding of the mode of action of β-mannanase has led to its increasing use in poultry including layers. Sarah Cervantes-Pahm, Elanco Nutrition Adviser for Asia Pacific, said recent research indicates that β-mannan-induced intestinal inflammation can be reduced through β-mannanase supplementation in the diet. “By reducing β-mannan-induced intestinal inflammation, we observed improvement in egg production or FCR, more grade-A eggs (cleaner eggs) and more XL eggs (larger eggs). These because of better intestinal integrity,” she explained.
Tryptophan’s role for layer production & performance
Maria Eloisa C Carpena, Evonik Technical Sales Manager, explained that tryptophan is the 4th or 5th limiting amino acid after the sulphur-containing amino acids, lysine and threonine for laying hens. It plays a significant role in reducing the dietary CP levels while optimising production and performance, and profitability of laying hen operations. According to her, increasing the ratio of digestible tryptophan:lysine from 19 to 24.5% positively affects laying hen performance such as feed consumption, egg production, egg weight and egg mass. However, the variation in the level of response of laying hens indicates that the optimum tryptophan requirement of laying hens is influenced by age, strain, diet design and composition and environmental conditions. The dietary concentration of large neutral amino acids also affects the dietary tryptophan requirement of laying hens.
Benefits of enzyme combination in layers
The benefits of exogenous enzymes in layer diets have not been fully realised, due to a number of reasons including over-formulation of main nutrients, inconsistency of enzyme products and producers’ inability to judge enzyme efficacy, according to Alex Wu, Regional Technical Manager Asia of Adisseo Asia Pacific. Dr Wu explained that enzyme synergy appears to exist between NSPase and phytase in layer feeding. And a more diversified NSP-degrading enzyme plus an effective phytase is proven to be effective in facilitating digestion of cell wall matrix and increase digestibility of major nutrients, which can contribute ME by 50-70 Kcal/kg, digestible amino acids by 1.5-2.0%, and compensate Ca/avP by 1.2/1.5 g/kg.
Split-feeding system for optimal nutrient utilisation
The requirements of layers for protein, energy, calcium and phosphorous vary throughout the day, within the circadian cycle, based on their physiological needs for formation of the various components of the egg. Feeding methods based on a diet with constant levels of nutrients may not result in optimal utilization of these nutrients. Felipe Sanchez, Nutreco Application & Solution Specialist Poultry & Technology Transfer, said Trouw Nutrition has developed the NutriOpt split-feeding system based on two diets with different nutrients levels in the morning and afternoon to meet the different requirements through the day. The system improves the quality of eggshell, increases the number of saleable eggs, improves the performance, and offers profitable & sustainable egg production.
Developments in gut health
With the removal of antibiotic growth promoters, rising feed costs, lower selling margins and the emphasis on improving efficiencies and sustainability, both academic and commercial poultry nutrition are now quiet focused on better understanding gut health. Specific to laying hens, Santiago Ramirez, Principal Consultant of Fractal Farming, said recent developments in gut health research and applications are being targeted to gain a better understanding of the functionalities of the crop and gizzard, the management of gut microbiome balance and the application of novel feed additive strategies to improve gut health. He added that commercially the application of new knowledge and experience should assist in improvements of laying performance through higher egg numbers and egg yields, better health and reduction in mortality.
Organic acids impact on layer health & performance
Organic acids have long been used in animal nutrition, usually to stabilise compound feed and enhance animal performance. The use of these valuable additives has been adopted by the layer industry. Christian Lückstädt, Technical Director Feed of Addcon, said the use of organic acid salts have a range of beneficial effects in layer production. The issue of biosecurity in the feed addressed effectively, by assisting the bird to avoid the negative health and productivity impacts of bacterial pathogens, and improvements in nutrient digestibility, especially minerals leads to better egg quality. He added that the use of organic acids, their salts – and especially dietary sodium diformate (NDF) is an effective and sustainable tool for performance enhancement, in terms of egg quality and gut microflora in laying hens under Asian conditions.
Ingredients assessment and mixing
Three aspects of feed manufacturing, namely ingredient evaluation, recipe optimisation and mixing are important components of manufacturing quality animal feed and directly relate to animal performance. A key aspect of producing quality feed is achieved by appropriate assessment of inbound ingredients. Ivan Ward, Director of Agri-Torque, said with the advances in NIR technology, the assessment of ingredients has become easier as the ingredients are assessed prior to receiving on-site. “The additional nutrient data from the NIR plays an important role in assisting nutritionists to correctly update nutrient levels in optimisation software, as well as improving the accuracy of recipes sent for manufacturing,” he said. Mixing is another important process in manufacturing quality feed. Poor mixing performance can lead to poor animal performance and therefore mixer performance needs to be routinely measured, Mr Ward said.
Impact of encapsulated Ca butyrate in layers
Butyric acid can promote the growth and health of an animal’s digestive system. Liong Kah Heng, Kemin Industries Marketing Director Animal Nutrition & Health for Asia Pacific, introduced encapsulated Ca butyrate that contains 45% butyric acid embedded in a matrix of vegetable oils and sugars to sustain its release in the gastrointestinal tract. A layer trial in Malaysia showed that the use of encapsulated Ca butyrate at a lower dose of 300 g/tonne will give a better performance as compared to sodium butyrate at 1.5 kg/tonne. Birds fed with the product during the 140-day trial had better egg production, lower pale coloured eggs and less dirty and cracked eggs.
|Navis considers sale of GFS|
[08 September 2015] The owner of Golden Foods Siam (GFS) is considering exiting the Thailand-based poultry group. Richard Foyston, Chairman of Navis Capital, the Malaysia-based private-equity firm that acquired it in 2009, said it is assessing what level of interest there could be in the business. “It may come to fruition in the next couple of months, or maybe not.” The Wall Street Journal quoted Mr Foyston as saying that falling feed prices could be an opportune time to sell. According to just-food, Golden Siam Food has attracted a lot of interest from the trade as it is one of the largest fully-integrated value added chicken producers in Thailand. Thailand is the global low-cost and largest producer of internationally-traded value added chicken, and Golden Siam Food is the only large company in the sector that is available to be acquired for the long-term foreseeable future.
|Pig farm owners reject growth promoters|
[08 September 2015] More than 300 Vietnamese pig-breeding households in Dong Nai province recently signed a commitment not to use banned chemical substances such as lean-meat agents that have harmful side-effects on humans. The use of lean-meat agents was banned in Vietnam in 2002. They include salbutamol, clenbuterol and ractopamine that stimulate growth and quickly develop lean meat. This follows the recent detection of banned lean-meat substances in pork in the province. The province has about 1.5 million pigs. In the first seven months of this year, 17 of the 84 samples taken by the department from breeding households tested positive for salbutamol.
|Japan to process tuna in Vietnam|
[08 September 2015] Japan’s Hokugan Ltd Company plans to build an 1800-tonne/month capacity plant for processing ocean tuna and other aquatic products in the Dong Tac fishing port in the province of Phu Yen. Phu Yen’s annual catch is 6000 tonnes of ocean tuna and 3000 tonnes of cuttlefish, said Vice Chairman of the provincial People’s Committee, Le Van Truc, adding that the output and quality would increase, thanks to modern Japanese technology. The Japanese company would provide fishing tools for locals and will send experts to offer technical knowhow to local fishermen.
|Canadian QSR chain to enter India|
[08 September 2015] Canadian sandwich maker Mr Sub, popular for its submarine sandwich is set to enter India. Arnav Saluja, Chairman, Beverly Food and Beverages, the master franchisee for Mr Sub in India said that they plan to start with an outlet in New Delhi. “We aim to establish 30 outlets by March next year and a total of 200 outlets across India by 2020,” he said. Mr Sub’s submarine sandwich will retail at about USD 2 for vegetarian and USD 3 for non-vegetarian sandwiches. “After Delhi, we will move to Mumbai, Hyderabad and Bangalore, with 65 outlets targeted by March 2017," he added.
|Food safety testing market expected to reach USD16.1b by 2020|
[08 September 2015] The global market for food safety testing is projected to reach a value of USD 16.1 billion by 2020, at a CAGR of 7.4% from 2015, according to MarketsandMarkets recent report. Asia Pacific is likely to be the fastest growing region, due to the rising demand for food safety. The most rapidly moving country in Asia Pacific is China. The Asia Pacific market is expected to grow due to the increase in agriculture produce trade supply. This is because food exports and imports have to be certified based on the food safety regulations of that particular country.
|Layer Feed Quality Conference in Jakarta today|
[07 September 2015] The inaugural Asian Agribiz Layer Feed Quality Conference opens in Jakarta, Indonesia today with the theme ‘Building a sustainable flock’. The intent is to make producers think about how they approach layer nutrition and management, and feed production. Leading layer industry experts will address topics such as opportunities for enriched eggs, nutrient retention and nutrient waste for layers, developments in gut health and novel split feeding systems. Watch this space for a brief tomorrow.
|Trouw Nutrition inaugurates new plant in East Java|
[07 September 2015] Trouw Nutrition International recently staged the grand opening of its second plant in Indonesia and fifth in Asia that is located in Pasuruan Industrial Estate, East Java. The plant, which cost the company around 6.5 million, has an installed capacity of 12,000 tonnes/2 shifts/year and has two dedicated production lines namely medicated and non-medicated lines. The plant will produce premixes, base-mixes and nutritional specialties for local and export markets. The new plant only has 20 staff to control the production. Knut Nesse, CEO of Nutreco, the holding group of Trouw Nutrition International, told Asian Agribiz that the new plant is the company’s commitment to support the development of the livestock industry in the country and to maintain the company’s leadership in the animal nutrition (premix & feed additives) market. Mr Nesse revealed that Nutreco also plans to drive its aqua feed agenda in Indonesia.
|Philippines seeks lower tariffs for poultry exports to Japan|
[07 September 2015] The Philippines is seeking lower tariffs for its poultry exports to Japan under a free trade agreement. Agriculture Undersecretary Jose C. Reaño said that the Department of Agriculture is currently negotiating with Tokyo to bring down the current tariff rate for yakitori chicken exports from 8.5% to 4.5%. However, Mr Reaño clarified to Asian Agribiz that dressed frozen chicken and cooked chicken are also included in the negotiations, although the Philippines are not yet exporting these products to Japan. “We are still reviving the [export of] fresh frozen chicken, while cooked chicken is being developed by Magnolia of San Miguel Pure Foods Co and Bounty Fresh Foods Inc.” The lowering of the tariff, he said, will level the playing field for the Philippines in Japan, pointing out that Thailand’s cooked chicken exports to the country is currently levied a 3% duty.
|Beef prices in Indonesia still high|
[07 September 2015] The Indonesian government’s apparent attempt to boost beef self-sufficiency by lowering cattle imports from Australia by 80% may backfire, as prices have spiked and sellers in Jakarta are going on strike in protest. Merchants at the Kramat Jati market in East Jakarta recently said that they would not sell beef for four days to express their frustration over the high prices. Endang, a beef seller, said sellers want prices to come down and that the Indonesian Association of Cattle and Beef Entrepreneurs had called for a strike. According to her, the price of beef at the traditional market has been USD 8.85/kg since before the end of the Muslim fasting month in mid July. “Beef sellers just want normal prices,” she said.
Asian Agribiz Poultry Feed Quality Conference
Bangkok, Thailand - September 3-4
[07 September 2015]
The 2015 Asian Agribiz Poultry Feed Quality Conference, held in Bangkok last week, was well received. Some 300 nutritionists, feed processors and poultry integrators from the region heard presentations from academia and the industry who spoke on four main themes over two days. Day one looked at New Thoughts on Energy and The Challenge of Producing Chicken without AGPs. Day two focused on Utilising Amino Acids and Harnessing Feed Technology.
Improving nutrient retention in broilers
The emphasis on regulation, a growing trend in Asia, is driving changes in how poultry integrators and nutritionists feed and manage animals on the farm. According to Dr Rosalina Angel, Assistant Professor, University of Maryland, US, tools are being developed to meet these challenges. “Knowledge of the ingredients available and how best to use them in diets as well as our feed manufacturing limits and needs for safety margins can substantially change the nutrients we formulate into the diet and diet costs,” she said. It is therefore important to understand the animals we are feeding and their nutrient needs, and digestive and absorptive limitations at different production stages. This, she said, is still not greatly understood. “But we have a plethora of tools available to better meet the goal of producing poultry products more efficiently and more cost effectively while reducing nutrient emissions to the environment.”
Are we meeting creatine requirements of poultry?
Creatine is an essential nutrient for high yield broilers. It is a compound formed in protein metabolism. It is involved in the supply of energy for muscular contraction. “In fast growing animal, creatine can’t be fully compensated by endogenous synthesis making it a necessary compound. Approximately two-thirds of the creatine requirements of broiler chickens are met endogenously, the remainder must be supplied by diets,” Dr Girish Channarayapatna, Director, Nutrition and Technical Sales Nutrition and Care, Evonik (SEA). In a paper that has been presented for the first time in Asia, Dr Channarayapatna introduced CreaAmino, a suitable feed additive that is affordable and chemically stable compared with pure creatine sources. He said its supplementation can successfully improve chicken performance both in full vegetable diets and diets containing animal protein sources. Inclusion of CreAmino at 0.1% to poultry breeder diets can improve the reproductive parameters and performance of progenies.
Roles of sulphur containing amino acids
The industry has a narrow understanding of synthetic amino acids and how they are only considered as protein building blocks. As such nutritionists have focused their work on balancing diets for digestible amino acids to ensure adequate supply of all essential amino acids at right levels and ratios to lysine in order to achieve desirable weight gain and feed conversion ratio. But new research is looking at the unseen benefits of methionine. Dr Kevin Lui, Vice President of Adisseo, Asia Pacific, said there is much to learn about the protein source. “Methionine not only increases performance but also influences birds in different ways. For instance, the biological functions of methionine are multiples, such as methyl donation, precursor of cysteine and further sulphur compounds implicated in redox homeostasis.”
Different ways of measuring moisture
In the session on harnessing feed technology, Ivan Ward, Director, Agri-Torque, Australia discussed ways in which moisture is measured in feed & ingredients, challenges with moisture analysis and opportunities during feed manufacturing to monitoring moisture content. Moisture content provides valuable information about feed quality as it impacts the nutrient concentration of feed ingredients as well as affecting the shelf life of feed, he said. The difficulty with moisture content assessment of feed is there are many types of equipment used, and to compound the issue, the same equipment can have many accredited methods for measuring moisture he added. For example, the two commonly accredited oven dried methods for moisture determination (103oC for three hours and 135oC for two hours) produce different results.
Real-time inline feed formula adjustment during batching
Moisture is an important diluent of the nutrients that comprise animal feed. Knowledge of the moisture content is essential for calculating nutrient density as well as the impact on operational efficiency, feed quality and associated economic losses. Yiannis Christodoulou, President of Agentis Innovations highlighted the latest technology that addresses this problem, which is based on microwave resonator technology (commercially known as M007). It is both highly accurate and can process thousands of measurements per second. It can not only measure in real time the moisture of the raw material before batching, but auto corrects the batching weight to correct for the true dry matter.
Steam conditioning to improve feed pellet efficiency & feeding value
Producers still face problems producing pelleted feeds stated Steven Goh, Regional Business Director, Delst Asia as they do not have the correct steam to cook raw starch granules effectively or have insufficient conditioning dwell time for steam/meal interaction. To maximise feed pelleting efficiency and feeding value, he suggested among others, working with the ideal steam conditioning temperature (70oC for pig feed/78 oC for poultry feed) and ensuring there is sufficient conditioning time (dwell time), with close to 60 seconds as the ideal.
Asian Agribiz Poultry Feed Quality Conference
Bangkok, Thailand - September 3-4
[04 September 2015]
The Asian Agribiz 2015 Poultry Feed Quality Conference opened yesterday at the Amari Watergate Bangkok Hotel. The program features 17 speakers from academia and industry who will present 21 papers over two days. Yesterday touched on two of the four relevant themes - New Thoughts on Energy and The Challenge of Producing Chicken without AGPs.
Consider the immune system in feeding strategies
Poultry producers and nutritionists at the conference learnt that moving on to a more complex feeding system, one that takes into consideration the chicken’s immune systems can enhance productivity. Key note speaker Dr Jan van Eys, Principal from Global Animal Nutrition Solutions said the current energy-protein feeding systems are geared towards healthy birds and maximum production. “In the future systems that incorporate immune challenges, environmental stress, essentially the fine-tuning of nutrients, can lead to better productivity,” he said. Individual nutrients such as glutamic acid, arginine, amino acids, omega 3 fatty acid, selenium and vitamin E can help with the immune response of the bird. “However, sick birds may not eat, but they will drink. If the farm has the facilities, adding these supplements to the drinking water may also enhance an immune response.”
Change in the way energy is supplied
Net energy (NE), which includes metabolised energy (ME), has the potential to save money and improve uniformity, but its implementation has been lacking. Meanwhile, the ME system works and is easy to use but “in growing chicks, the relative efficiency of energy utilisation for carbohydrate, fat and protein has been determined to be 100%, 113% and 78%, respectively,” Bob Swick, Industry Professor of Poultry Nutrition, University of New England, Australia, said, adding that it overvalues the productive energy value of protein meals and undervalues fat or ingredients with a high fat content. Adjustment of ME values for heat increment have the potential to improve profitability in poultry production. The magnitude of savings will depend on relative differences in protein, fat and carbohydrate between ingredients and price. Research currently underway at the University of New England has shown that broiler NE and heat increment can be predicted from chemical composition of feed.
β-mannanase enzyme can reduce intestinal enzymes
β-mannans induced corn-soybean meal diet can induce inflammation in the gut. According to Sarah Cervantes-Pahm, Advisor Animal Nutrition, Asia Pacific, Elanco Animal Health, adding β-mannanase supplement to the diet can reduce inflammation. “This can potentially reduce the net energy for maintenance, most importantly, the immune response of the birds, and potentially increase the net energy for body weight and egg gain, as whatever energy is used for net energy for maintenance will reduce net energy for gain ” she explained. β-mannanase, she further explained, may spare energy by preventing the available energy from unnecessarily being diverted away from growth, thus improving intestinal health and bird performance.
First feed have benefits over entire growout
Chick weight on day seven is usually a good indication of performance over the entire growout. Improving diet digestibility, increasing nutrient levels, or adding otherwise cost prohibitive additives may improve health and growth during the first week. If this sets the bird up for robust growth later, it may be economically justified and could be considered an investment. Dr Bob Swick, Professor of Poultry Nutrition, University of New England, Australia, in his presentation explored several ideas and presented some on recent experiments on amino acid levels, anti-nutritional factors and plasma proteins in starter feed. He said additional digestible amino acids were beneficial when provided at levels 10% above breeder recommendations for the first 10 days. The response to soy protein concentrate provided in starter feeds, meanwhile, varied by type of product provided. “The further processed soybean material was effective in increasing performance over the entire growout when only used in the starter feed. Spray dried plasma proteins were found to be effective in several experiments,” he said admitting that the limiting factor in the acceptance of these products is cost.
Nutritional concepts that boost the immune system
Producing chicken without the use of Antibiotic Growth Promotants (AGPs) was discussed extensively at the conference. Walter van Hofstraeten, Senior Consultant Poultry Nutrition, Schothorst Feed Research presented to the audience that the use of veterinary antibiotic use reduced by 50% in 2013 and is expected to drop a further in 70% in 2015 in the EU. He added that better farm management, climate control housing and hygiene and nutritional concepts play a great role to boost the immune system of the flock. Using feed additives in diet helps and it is good to use products that have different working mechanisms to avoid the interaction of products. “Also if you like to use products to stimulate the immune system, keep in mind that there is an optimal dose,” Mr van Hofstraeten advised.
European Experience on feed additives
Dr Heinrich Kleine Klausing, Head of Product Management and Production, EW Nutrition Germany said support of gut health and maintaining performance data is possible without the use of AGPs. He spoke about the new generation of alternative feed additives and secondary plant compound (SPC) products that offer potential replacement to AGPs such as the organic acids and enzymes that are used widely in Europe. However, a bundle of different actions in feed quality, feed processing and formulation concepts must be taken rather than a one measure-solution.
The role of pre and probiotics
Dr Jan van Eys said that AGPs are on their way out. In the wake of this, pre and probiotics offer a viable alternative and are also consumer friendly. However, the effectiveness of the products will differ with the type of the pre and probiotic and diet and the response on FCR reduction still needs some additional study. Dr van Eys pointed out that a better understanding and a more integrated approach is needed in cooperate with evaluating the combination of pre and probiotics to achieve an effective and economical alternative.
Hot trials – new developments in feed additives
At the conference, participants were presented with trial results using feed additives to replace AGPs. A Thai field presented by Dr Pathawit Ngamchapoen, Poultry Technical Advisor, Innovet Corporation, Thailand observed the effectiveness of Salmonella infection prevention by the targeted supplement. Dr Pierre-Andre Geraert – Director Innovation Marketing, Adisseo, France, addressed the structural complexity of non-starch polysaccharides. Tim Goossens, Business Development Manager, Digestive Performance, Nutriad International, Belgium, presented experiments that explored the potential of coated butyrate products which showed some potential effects of butyrate in the gut while R. Chanthirasekaran, Senior Global Product Manager, Kemin Industries, Singapore presented Clostat as an alternative to AGPs. Hans van der Waal, Market Development Manager for Bestmix software, Adifo N.V introduced the Formulation as a Service (FAAS) Platform for feed formulation and raw material management and equation.
|Science, trial data and solutions focus of conference|
[03 September 2015] The Poultry Feed Quality Conference organised annually by Asian Agribiz begins in Bangkok, Thailand today. The two-day conference which has ‘Science, trial data, solutions’ as its banner, has attracted about 300 participants from throughout the region. The program for this year's event is divided into four sessions - new thoughts on energy; utilising amino acids; producing chicken without AGPs; and harnessing feed technology. There will also be a hot trials session with short papers on the latest product-related research in Asia. More details in this space tomorrow.
|TGM target double digit growth in 2015|
[03 September 2015] Thailand’s veteran sausage and meat product producer Thai German Meat Product Co Ltd (TGM) is targeting a double digit growth this year with its new [second] plant up and doing trial runs. “Sales for the first seven months grew 10% and I hope the momentum continues and that we achieve a double digit growth for the whole year,” Chantana Puapattanakajorn, Managing Director, told Asian Agribiz. TGM generated sales of USD 42 million in 2014, up 8% from the earlier year. Ms Chantana said the company's new plant is conducting test runs and will run at full capacity in October, producing 50 tonnes of ham products while the old plant will be used for sausage products only. The new plant will facilitate TGM's plan of exporting to Japan, Ms Chantana said.
|High mycotoxin levels, weather dampen Philippine poultry performance|
[03 September 2015] High toxin levels in feed raw materials and the rainy weather are affecting animal production in the Philippines. Dr Miriam Alberto Tempra, Vice President of the Philippine Society of Animal Nutritionists told Asian Agribiz that there are many reported cases of mycotoxin-related problems in farms around the country. “We have high levels of aflatoxin, T2 and zearalenone in corn, soybean, copra and rice bran,” she said, adding that “the high toxin levels has reduced the immunity of animals. In broilers, this has led to slow growth and birds are more prone to diseases.” Egg production too has been affected. Atty Elias Jose Inciong, President of the United Broiler Raisers Association, confirmed with Asian Agribiz that the toxin problem has indeed led to increased disease incidence and has “significantly” affected broiler production for the third quarter, but did not offer figures.
|Vietnam reports H5N1, H5N6 outbreaks |
[03 September 2015] Vietnam confirmed two separate outbreaks involving H5N1 and H5N6 avian flu strains affecting more than 10,000 poultry, according to separate reports posted by the World Organization for Animal Health (OIE) on August 31. The H5N1 outbreak involved a backyard flock of 1,550 birds in Vinh Long province in the south while the H5N6 outbreak affected a backyard flock of 8,600 poultry in Quang Ngai province in central Vietnam. A total of 1,056 died from their infections, and the rest were destroyed as a containment measure.
|Malaysian Burger King franchise sold to Newscape Capital|
[03 September 2015] The Burger King franchise in Malaysia and Singapore has been sold to Newscape Capital Sdn Bhd – a company registered to supermarket chain 99SpeedMart founder Lee Thiam Wah and his business partner Datuk Chua Tai Guan. The sale by Ekuiti Nasional Bhd (Equinas) comes months after earlier plans to sell the fast food franchise to airline caterer Brahim’s Holdings Bhd fell through. The franchise was sold for USD 17.85 million. CEO Datuk Abdul Rahman Ahmad said: “This exercise has also enabled Ekuinas to successfully complete the restructuring of its f&b portfolio involving our exit from the QSR segment to fully focus and expand the core casual dining and beverage segments with brands such as Tony Roma’s, Manhattan Fish Market, New York Steak Shack, Coolblog and San Francisco Coffee.”
|Cargill to invest USD200m in the Philippines|
[02 September 2015] Cargill Inc is set this year to invest USD 200 million to put up integrated plants in the Philippines, particularly in Mindanao, a report by BusinessMirror said. The plants will include feed manufacturing and chicken growing stations, and are dubbed “feed to fork” because they will provide seeds to produce raw materials, produce the feeds, and raise chickens and process chicken products. Philippine Agriculture Undersecretary Jose Reaño said that Cargill’s investments will benefit Filipinos because the feed raw materials will come from local farmers while the workers in the plants will be Filipinos. Already Cargill has applied for membership to the United Broiler Raisers Association (UBRA). Atty Elias Jose Inciong, UBRA President, told Asian Agribiz that investments, whether multinational or domestic, would be positive for the industry.
|Japfa Indonesia to export hatching eggs to Myanmar|
[02 September 2015] Indonesia’s poultry integrator Japfa Comfeed Indonesia is preparing to export 348,905 broiler PS hatching eggs to its sister company Japfa Comfeed Myanmar this year. The export will mark the first shipment of the product abroad since the avian influenza (AI) outbreak in Indonesia in 2004. “We have got the import permit from Myanmar since our breeding and hatchery facilities are AI-free on the compartmentalization system, and this status is recognised and certified by Indonesia’s Ministry of Agriculture,” Fitri Nursanti Poernomo, Senior Manager Government Relations, told Asian Agribiz. Ms Fitri said the stocks will be divided into three shipments – in early September, mid-October and early December. The import permit is until 2017. In 2016 and 2017 the company plans to export 704,982 and 808,329 hatching eggs respectively.
|CP to collaborate with Aussie meat processor |
[02 September 2015] Charoen Pokphand Group (CP) has signed a memorandum of understanding with Australia’s Thomas Foods International Consolidated Pty Ltd, bringing together two leading food producers. Thailand-based CP and Thomas Foods said they are exploring a number of opportunities to collaborate across their respective markets, particularly in value-added meat processing and food business on the back of state-of-the-art technology and know-how from CP as well as the best quality raw materials from Thomas Foods and other sources in Australia. Thomas Foods is Australia’s largest 100% family-owned meat processing company. It processes 120,000 lambs and sheep and 5000 cattle per week while exporting to 80 countries.
Asian Agribiz NIRS Introduction Workshop, Bangkok
On-Site Report by CRAIGE ALLAN
[02 September 2015]
As part of Asian Agribiz’s Skills Development program, an Introductory NIRS workshop was held in Bangkok yesterday, prior to the Poultry Feed Quality Conference. The workshop, presented by Ivan Ward of Agri-Torque covered the importance of nutrient data, where nutrient data is used, nutrient data sources, how nutrients can be measured and NIR basics. Case studies where used to put the theory into practice.
Importance of nutrient data
To realise the opportunities from variation in nutrient data firstly you need to be able to measure it, and secondly to be able to react to it. Measurement of nutrient data can be used to improve animal performance, reduce feed costs, improve feed efficiency and improve profit. Nutrient data can be used in procurement to specify ingredients, identify preferred suppliers and to make claims on out of specification ingredients. Quality control can also use this data for inbound approval of raw materials. Measuring ingredients with an accurate NIR can conservatively save USD 15/tonne of feed in Australian conditions, and the potential savings in Asia are larger than in Australia due to higher nutrient variability, and these cost savings do not account for any improvements in animal performance, said Mr Ward.
Surprisingly, moisture is one of the hardest ingredients to accurately measure, whether you use wet chemistry or NIR. If you can conquer moisture, other nutrients such as fat and protein, will seem relatively easy commented Mr Ward. He explained that moisture analysis is difficult because of different equipment, drying methods, sample storage requirements and even the method used to calculate the results can differ. He advocates using oven drying at 103 degrees for three hours as the preferred method, since this gives good reproducibility and less volatiles are heated off than drying at 135 degrees for two hours. He also recommends that the difference in sample temperature before and after grinding should be as small as possible to reduce the amount of moisture leaving the sample.
According to Mr Ward the commercially reliable limit of detection is 0.5% or 5,000ppm, however, this limit depends on the accuracy of your wet chemistry. He added that this limit is above what is required for trace minerals for example. Therefore, he recommended that NIR is not suitable to predict trace minerals in raw materials or feed, and other methods should be used. NIRS is also not a suitable method for analysing non-homogenous compounds, such as mycotoxins.
What makes a good calibration?
To produce a good NIR calibration you need to exceed the nutrient component range that you are likely to encounter remarked Mr Ward. For global ingredients with many production regions, such as soybean meal, he suggested a minimum of 2,500+ samples with good regional representation across seasons, years and processing conditions. For ingredients that are sourced from a single region 200 samples is adequate, but 1,000+ would be better. If you receive ingredients that are outside of your calibration range, you will need to have these analysed by your laboratory reference method and added into the calibration.
NIR result verification
The accuracy of the NIR result depends on a number of factors, including the sample, NIRS hardware, environmental conditions, alarm and warning limits, and the calibration – samples, reference analysis and NIR and calibration validation. It is often overlooked that NIR instruments can take up to several hours to warm-up until the instrument is fully stable, therefore Mr Ward recommends the NIR be powered on continuously.
|CPF supports traceability for its 400 corn suppliers|
[01 September 2015] Bangkok Produce, a subsidiary of Charoen Pokphand Foods (CPF), which buys corn for livestock feed, announced that it has installed a traceability system for its 400 corn suppliers to identify the source of the crop in accordance with CPF’s sustainable corn policy. Paisarn Kruawongvanich, Executive Vice President of Bangkok Produce, said that extending the system to its suppliers would encourage them to improve corn planting practices. Corn plantations, especially in the north of Thailand, have been rapped for pollution due to improper post-harvest practices.
|Sierad takes control of Belfoods Indonesia|
[01 September 2015] Indonesia’s poultry integrator Sierad Produce and its subsidiary Transpacific Niagareksa recently signed a sale and purchase agreement with DK Intertrade ApS on the transfer of ownership of 33% of Belfoods Indonesia. With this, Sierad now indirectly owns 100% of Belfoods. In its official statement the company said the corporate action was in line with its strategy to expand its food division by strengthening the capital structure of its food-processing subsidiary (Belfoods). The company is also optimistic that this will improve its business performance.
|Ducks from Ireland popular in Singapore restaurants|
[01 September 2015] Ducks from Ireland are popular in restaurants in Singapore, despite being 30% more expensive than Malaysian ducks, because their high fat content makes the meat more tender and flavourful. It is distributed by Lee Kim Tah Holdings, which owns the restaurant Legendary Hong Kong, to a number of restaurants in Singapore. Originating from the family-owned Silver Hill Farm in Monaghan, north of Ireland, they are raised according to the specifications of the restaurants and are slaughtered at 42-45 days. These free-roaming ducks are fed a grain-based diet and raised in a calm environment. They are also defeathered by hand, which reduces bruising. Jarrod Seah, Director of Lee Kim Tah said he is in talks with three or four Chinese restaurant chains that want to use the ducks.
|Japan announces partial lifting of ban on US poultry products|
[01 September 2015] Japan's Farm Ministry partiality lifted a ban on imports of live poultry and poultry meat from the US and Canada last week, following an outbreak of bird flu. Imports from Oregon, Washington, Idaho, California, Kansas, Arkansas, Montana and Indiana, and Canadian Province of British Columbia will resume after restrictions were imposed for up to nearly nine months, the Ministry of Agriculture, Forestry and Fisheries said in a statement. However, restrictions on live poultry and poultry meat still remain for Minnesota, Iowa, Wisconsin, Missouri, North Dakota, South Dakota and Nebraska, and Canadian Province of Ontario, pending local checks by Japanese officials, a ministry official said.
Sneak preview of Asian Pork Magazine, September 2015
[01 September 2015]
Consistent supply supports Ana Swine Farm
A relatively young operation, Ana Swine Farm is now the biggest commercial pig farm in the Philippines’ Bicol Region. While a bit of luck and good timing were partly instrumental to the farm’s success, ISA Q TAN writes that what pushes the farm forward is its hardworking and very involved owner, and as the region continues to grow, so too does his farm.
Mavin Foods aims for Asean
Mavin Foods Joint Venture Company is ready to strengthen its position as Vietnam’s top food company with expansions in its processing plant. A strong and reliable upstream business, which includes pig rearing and breeding farms, will give the endeavour the thrust it needs to succeed, RACHAEL PHILIP writes.
Chilled meats gradually gain ground
Most Asians buy meat, particularly pork, either ‘hot’ or ‘warm’ but there is no denying that meat sold chilled is gaining ground. This is evident by the growing number modern meat shops across the region sell products in chilled formats. Who is mooting the change? Processors or consumers, and why? ARIEF FACHRUDIN and the ASIAN AGRIBIZ team find out.
Nutritional management of the modern sow – part 2
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 two of this two-part article will consider feeding from entry to the farrowing facility to the re-mating period.
Superdosing phytase: a cost-effective alternative to spray dried plasma?
Spray Dried Plasma (SPD) may help mitigate weaning stress and therefore it is often formulated into nursery diets at a minimum level with an added cost to the diet. Data taken from a larger study in the USA demonstrates superdosing with phytase may help replace SPD with soybean meal (SBM) in piglet diets without negatively affecting pig performance. CASEY BRADLEY and USAMA AFTAB report that coupled with significant feed cost savings, superdosing appeared to recover completely the lost performance when all of SDP was replaced with an extra 10% SBM in the nursery diets.
Evaluation of an innovative form of creatine for pigs
Creatine as a feed additive is costly, and not thermostable making it unsuitable for pelleting. Guanidinoacetic acid (GAA), a natural precursor of creatine (CREA) in the body may be a more suitable dietary source of CREA for pigs. The impact of feeding GAA on the growth performance and meat quality of pigs is reviewed by MARIA ELOISA CARPENA, GIRISH CHANNARAYAPATNA and MEIKE RADEMACHER. Dietary supplementation of GAA may contribute to the improvement of growth performance like weight gain and feed efficiency, and also to improve meat quality parameters such as drip loss and post mortem pH.