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28 August 2015
|Bangkok Ranch targets 5% sales growth |
[28 August 2015] Bangkok Ranch, Thailand’s leading duck meat producer, has maintained its sales growth target at 5% with better profit despite a deficit in the first half of the year following a slow global economy. The company reported a 10% drop in sales in Q2. The company expects sales in the second half of the year, normally the high season especially the last quarter, will outpace 27,200 tonnes in the first half. The company is also negotiating an alliance in Indonesia for a joint venture for a duck integrated business. Progress is expected in Q4 this year. Bangkok Ranch is also looking for business opportunities in China and Vietnam.
|Pakistan seeks preferential trade agreement with Russia|
[28 August 2015] Pakistan is seeking a Preferential Trade Agreement with Russia to achieve easy access to the Russian market, which is importing food items worth USD 35 billion from around the world. A statement from the country’s Commerce Ministry said that a delegation led by Trade Development Authority of Pakistan (TDAP) will visit Russia to define a strategy to enhance Pakistan’s export of agriculture products to Russia. “Pakistan is looking to benefit from the vast opportunities that has surfaced recently,” according to Federal Minister for Commerce Khurram Dastagir Khan.
|Linde Group to invest USD200m in seafood processing in India|
[28 August 2015] Germany’s Linde Group, experts in cryogenic freezing, has expressed interest in supporting India’s seafood processing sector in Andhra Pradesh state. “We want to help add value to exports. We are looking to invest over USD 200 million,” Chief Executive Officer Wolfgang Buchele said. According to him, the company is also interested in setting up a laboratory and an academy to train personnel required for supporting food processing. Andhra Pradesh is a major player in India’s aquaculture sector contributing about 46% of India’s seafood exports in 2014-15.
12th Southeast Asia USACC 2015, Siem Reap, Cambodia
Onsite report by ARIEF FACHRUDIN
[28 August 2015]
Innovation, quality & safety standards vital in AEC
The Asean Economic Community (AEC) 2015 will be a huge and interesting market, not just for Asean member countries but also for foreign countries like the US and EU. Sara Aparicio Hill, Partner of Singapore-based Food Compliance International, said however that building blocks such as tariffs, non-tariff barriers and uniform application and enforcement need to be addressed. With AEC especially in the agro-food sector, Ms Hill underlined that countries with good innovation, quality and safety standards, and low production costs will benefit.
Asian poultry industry needs to develop innovation-based solutions
Population growth and GDP increase will drive demand for animal protein in Asia. According to Dr Jan van Eys, Principal of Global Animal Nutrition Solutions Inc, Asian countries recorded positive growth in poultry and egg production in 2014. However, he said feed cost, will continue to increase and then put pressure on margins. Besides, the industry is also facing significant challenges such as health, biosecurity and consumer demand. “To address the challenges, the industry needs to continue to develop solutions through innovation,” Mr van Eys said.
US DDGS exports to Asia
In 2014 the US exported around 12 million tonnes of DDGS. Of the figure, according to Justin Cauley, US-based CHS Export Commodity Manager, 39% was exported to China, 6% to South Korea, 6% to Vietnam and 4% to Japan. From January to May 2015, China’s share of US DDGS exports increased to 52%. Mr Cauley said the supply of US DDGS is stable, but cheap oil, cheaper global fat/protein competition, restrictive government policies abroad, high USD and mycotoxins could be the future threats.
Asian ports are busiest in the world
Of the 10 busiest ports in the world, nine are in Asia. Of the top 10, six are on the Chinese mainland. The port of Shanghai is number one, followed by Singapore. These two ports are larger than all North American ports combined. According to John Vickerman, Principal of US-based Vickerman & Associates. The facts represent the growing Asian import trade. On shipping routes, he said while the Panama and Suez canals are important, alternatives for both are in progress. In 2012 Hong Kong-based HKND Group signed a USD 40 billion contract with Nicaragua to establish a rival to the Panama Canal.
12th Southeast Asia USACC 2015, Siem Reap, Cambodia
Onsite report by ARIEF FACHRUDIN
[27 August 2015]
The 12th Southeast Asia US Agricultural Cooperators Conference which opened yesterday, drew 170 participants. With the theme of ‘Opportunities for an industry in transition’, the conference aims to highlight the changes and challenges faced by agribusinesses today. With the Asean Economic Community coming together at the end of this year, coupled with record supplies and a lacklustre Chinese economy, production and supply chains may have to make fundamental adjustments to meet this new market environment. The conference is organised annually by the US Grains Council (USGC), US Soybean Export Council (USSEC) and US Department of Agriculture (USDA).
Biotech soybeans increase profitability, sustainability
Jim Call, past Chairman of United Soybean Board, shared information about his soybean farm located in Minnesota, USA and how he and his family deal with the issue of sustainability. “Our business has to be profitable first,” said Mr Call who grows biotech soybeans which not only increase profitability, but also enhance sustainability. “With biotech soybeans, we have improved weed control and allows increased use of no-till and direct drilling into the crop stubble,” he said. Jim Miller, USSEC Vice Chairman, concurred and said biotechnology has reduced the amount of crop protection agents used.
Southeast Asia excellent market for US soymeal
Southeast Asia is an excellent market for the US. “Politically and economically Southeast Asia is stable and market-driven. Countries in the region are quick to adopt new technologies and management systems. In addition, biotech acceptance is not a major issue,” said Thomas Hammer, President of the US’ National Oilseed Processors Association. US soymeal has a 17% market share in Southeast Asia. The export value increased 214% in 2014 from 2009 to equal USD 1.12 billion. Soymeal consumption in Southeast Asia is forecast to reach 18.95 million tonnes in 2015/16.
Global oilseeds overview
John Baize, President of John C. Baize & Associates, said in 2014/15 global soybean production and consumption reached 319 million tonnes and 296 million tonnes, respectively. In 2015/16 USDA forecasts production will remain the same, but consumption may increase to 306 million tonnes. He said China will be the world’s largest soybean importer with a predicted figure of 77.5 million tonnes. Global soymeal consumption in 2014/15 was 198.6 million tonnes, while in 2015/16 USDA forecast the consumption to reach 208.6 million tonnes. Mr Baize predicted that in 2015/16 Southeast Asian countries will be among the five soymeal importers. Indonesia is predicted to import 4.7 million tonnes, followed by Vietnam at 4.25 million tonnes, Thailand at 3.05 million tonnes, the Philippines at 2.65 million tonnes and Malaysia at 1.5 million tonnes.
Global ag markets over the next decade
Global economic growth and the rise of the middle class in developing countries will impact global agricultural markets over the next decade, according to Michael Dwyer, USGC Chief Economist. “The middle class in developing countries is projected to increase 92% by 2023. The impact on global food demand will be significant due to higher income,” Mr Dwyer said. “China and India will dominate the outlook.” He added that global agricultural trade is projected to reach nearly USD 1.2 trillion. Likewise, global coarse grain imports are projected to reach nearly 180 million tonnes, mainly from developing markets.
India’s soy dynamics
Vijay Anand spoke about soy dynamics in the Asian Sub-continent region, particularly India. He said constraints there are reducing exports from India to other regions and there is no significant growth in soy production to meet growing demand. “India’s soy meal production too has remained flat for about 5 years forcing other countries to cover their raw material requirements from other sources. However, a growing internal demand in the region and increased interests in crushing are positive signs.” He continued that an encouraging move in the relaxation of the trade policy in India is possibly in the offing to help the industry use external supply sources of soy if the industry thinks it’s economical to do so.
|Tainted feed in Vietnam |
[27 August 2015] Prohibited substances have been found in animal feed and veterinary medicine sold in Ho Chi Minh City and Dong Nai provinces in Vietnam, an official from the Ministry of Agriculture and Rural Development (Mard) said. According to Vietnam News, a report from Ho Chi Minh City’s Veterinary Medicine Bureau showed that beta agonist was found in urine samples taken at slaughterhouses. An inter-branch inspection, found workers at Khoa Nguyen Company in Ho Chi Minh City packing beta agonist. Police said the spot check was carried out several days after they had traced the origin of the substance in the slaughterhouse. Some of the chemical packages had labels from China and others had no labels of origin.
|Wuhan Chia Tai projects 150,000t of aqua feed annually|
[27 August 2015] Wuhan Chia Tai Group Aquatic Products Co Ltd (CP Group) in China, which began production on April 2015, can produce 150,000 tonnes of aquafeed annually. The USD 2.4 million project consists of an extrusion line, two pelleting lines for shrimp and crab feed, two hard pellet fish feed lines and an extra extrusion line. The plant features a central batching system and an efficient inventory management tool that ensures the scheduled production to be carried out for timely delivery.
|Micky Pant is Yum Brands’ CEO for China |
[27 August 2015] Yum Brands Inc’s China division will have Muktesh ‘Micky’ Pant as its new CEO replacing retiring Sam Su. Mr Su, who has been with Yum for 26 years, was instrumental in making Yum the biggest Western restaurant chain in China. He will serve as executive adviser through February 2016 and remain on Yum’s board to assist with the transition. The company also announced that Joey Wat, 44, was promoted to CEO of KFC China. She was previously President of KFC China. Yum spokesman Jonathan Blum declined to comment on growing speculation that the company would spin off its China operations.
|QL Indonesia targets 1 million DOC a month|
[26 August 2015] QL Group Indonesia produces around 2.4 million DOC/month both at its own farms and at contract farm spread in many regions in the province. Cecep Muhammad Wahyudin, Director, told Asian Agribiz that this year the company targets the chick-in at its own farms to reach 1 million DOC/month to support its growing chicken processing business. Mr Cecep also informed that this year the company plans to add the Indian River strain to its breeding operation. “There are farmers who want to raise a different strain. From our trials, we found that Indian River has good performance at breeding level and has a high carcass yield,” he said.
|China boosts EU pork exports|
[26 August 2015] Strong demand from China helped boost EU pigmeat exports in June this year. Exports rose 21% over the previous year's level to reach almost 139,000 tonnes, the UK's Agriculture and Horticulture Development Board (AHDB) said in a web report. China took in 38,200 tonnes or about 27% of the total. For H1 2015, EU pork meat exports stood at 765,600 tonnes, up 49% year-on-year, with China again accounting for more than a quarter of the total. South Korea also imported 24% more pork meat from the EU in the first six months of this year at 104,800 tonnes. However, export volumes to Japan, Hong Kong and the Philippines were down by 20%, 34% and 4%, respectively. Altogether, these Asian markets accounted for about 66% of total EU pigmeat exports.
|Vietnamese farmer sees success with mallard farming|
[26 August 2015] Two farms in Bac Giang Province in northern Vietnam are successfully raising mallards, a species of wild ducks that are difficult to keep as they fly off regularly, reported Tuoitre News. Its meat is favoured in Vietnam and is expensive by local standards at around USD 11/kg on farm or USD 27/kg in restaurants. At five months, an adult mallard weighs between 0.8 and 1kg. One farmer, Nguyen Dang Cuong said the secret is in getting them to fly back twice a day for their feed. “I give them sufficient food, making them too lazy to fly.” He currently rears 40,000 mallards. He hopes to rear 100,000 and increase his productivity so that price per kg of mallards can drop by 2018, and the meat will become more affordable.
Sneak preview of Asian Poultry Magazine, September 2015
[26 August 2015]
Seahisun Group: Taking advantage of an industry slump
The Chinese consumer’s seemingly insatiable demand for poultry meat hit a pause recently, but Jin Jun, Chairman, Seahisun Group, is undismayed and believes his company can take advantage of the situation, writes RICH HERZFELDER.
Soonthorn reaps benefits from good waste management
Soonthorn Farm achieved a milestone this year when it expanded its capacity to 250,000-270,000 layer birds from 120,000 earlier, producing around 230,000 eggs at present from 90,000 previously. Yet another significant step was the inauguration of the waste recycling system that endorses its environmental management and good farm as well as revenue performance, writes NITSARA THONGRUNG.
Pronic grows with probiotic chicken demand
With current production of 10,000 carcasses per month, Pronic Indonesia is not able to meet demand for its probiotic chicken. It plans to triple production to 30,000 carcasses, writes ARIEF FACHRUDIN.
Record keeping raises productivity at Lendes Farm
Lendes Poultry Farm is now the largest layer farm in the Philippines’ Bicol region. ISA Q TAN reports on what brought success to this family owned operation and where it is headed.
Synbiotic proven effective AGP replacement in broilers
Since the advent of the complete ban on antibiotic growth promoters (AGPs) as feed additives in livestock feed in the European Union (EU) in 2006, poultry producers struggled to search for proven effective alternatives to help them produce broilers. RANDY PAYAWAL and JUSTIN TAN report on a university trial from Taiwan where a multi-strain synbiotic product successfully replaced AGPs.
Nutrition of intensively-farmed modern meat-type ducks
In the second part of this four part article DAVID J FARRELL reviews recent advances in the nutrition of meat-type ducks. Historically, many feed formulators relied on the U.S. National Research Council’s Nutrient Requirements of Poultry, last revised in 1994, but these are mostly not now relevant to the modern genotypes.
Salmonella live vaccination
Biological measures including vaccination will necessarily form a major part of a holistic approach to infection control of Salmonella. PAUL BAROW discusses the importance of limited excretion of the vaccine strains and the role of secretory IgA and cell immunity after administration of live Salmonella vaccines.
Improving broiler flock uniformity
Getting broilers off to a good start is important in achieving excellent performance and flock uniformity is one of the essential components. BRUCE ZHOU discusses recommendations to help achieve improved flock uniformity. When the birds are uniform, all birds respond evenly and management decisions are made much easier, and profits are increased.
|Thaifoods Group defers IPO plan|
[25 August 2015] Thaifoods Group has deferred its plan for an Initial Public Offering (IPO) to raise funds for expansion due to unfavourable investment sentiment following the recent bomb blasts in Bangkok. Winai Teawsomboonkit, Chairman of the Executive Committee and the Chief Executive Officer, said the company has decided to differ the IPO which was scheduled for September. However, the IPO will happen this year, he confirmed. TFG plans to issue 1.4 billion ordinary shares to raise funds for its investment plan over the next three years, worth USD 77 million. This includes the expansion of its chicken processing business, sausage production and pig farming.
|China's pork production declines, imports afoot|
[25 August 2015] In the last 18 months, China’s pork industry has experienced one of the largest culls on record—the effects of which are just now being felt globally, according to Rabobank Animal Protein Analyst William Sawyer. The decline of nearly 100 million head in China’s hog herd and 10 million in its breeding herd is equivalent to the US, Canadian and Mexican pork sectors all disappearing from global supply in a span of less than two years. “For 2015, Rabobank expects China’s pork production to decline by 6.5%, the third-largest decline in production in the last 40 years. This will be supported by a 600,000 tonne increase in imports – primarily from the EU, the US and Canada– in the second half of 2015,” said Mr Sawyer.
|GPMT seeks government help to secure local corn|
[25 August 2015] Following the government’s import ban on corn that has left corn-related industries scrambling for supplies, the Indonesian Feed Millers Association (GPMT) has approached the Agriculture Ministry for help in sourcing corn from the country’s corn producing centres. “We have talked about [high] logistics costs and our efforts to secure local supply,” said Sudirman FX, GPMT Chairman. According to him, the government has committed to easing the industries’ access to local supply and reducing logistics costs. The government has banned corn imports to maintain an average of USD 0.20/kg for local farmers.
|Vietnam reports H5N6 outbreak |
[25 August 2015] Animal health officials in Vietnam said a highly pathogenic H5N6 outbreak has been detected in backyard poultry in Lao Cai province, located in the northern part of the country, according to a report from the World Organization for Animal Health (OIE).The outbreak began on August 18. Of 700 susceptible birds, the virus killed 200, and the rest were culled. Vietnam reported its first outbreak of H5N6, then described as a new strain, in August 2014, and since then it has reported sporadic events involving the strain.
|India to organise international seafood show|
[25 August 2015] India’s Ministry of Commerce and Industry plans to stage the India International Seafood Show in Vishakhapatnam in Andhra Pradesh state, said Minister of Commerce and Industry Nirmala Sitharaman. It is scheduled for January 2016. She said the ministry is extending its support to facilitate seafood exports through the Marine Products Exports Development Authority. Mrs Sitharaman added that once established, the Export Inspection Council facility at Vishakhapatnam with state of the art laboratory infrastructure will help meet the analytical requirements of the seafood industry.
|Partnership to build safe pork supply chain in HCMC|
[24 August 2015] Vietnam Meat Industries Limited Company (Vissan), De Heus Ltd and Fresh Studio Innovations Asia have signed a cooperation agreement to build a safe pork supply chain in Ho Chi Minh City. Director General of De Heus Gabor Fluit said his company together with Fresh Studio Innovations Asia will organise courses for about 200 pig farm owners in Dong Nai about breeding pigs, feed and Dutch farming technology application. The Dutch Government will assist the companies and provide experts for farming technique consultancy. Pork quality will be supervised from farming, slaughtering to distribution for clear origin, permissible level of antibiotic residue and no bacterial contamination.
|Government, GPMT form corn team to control supply-demand|
[24 August 2015] Indonesia’s Ministry of Agriculture and the Indonesian Feed Millers Association (GPMT) recently agreed to form a special team to control the supply and demand of corn for animal feed. The two parties also agreed to prioritise local corn as the main supply. This agreement came after the ministry suddenly suspended corn imports. Agriculture Minister Amran Sulaiman said the team, which consists of the Agriculture Ministry, Trade Ministry, state logistics agency Bulog and GPMT officials, will facilitate better communication between the government and businesses. “Besides focusing on problems related to supply and demand data, the team will also map corn production centres in the country and its potential,” said Mr Amran.
|Pakistan to import soybean from US and Brazil|
[24 August 2015] Pakistani importers are negotiating the purchase of about 66,000 tonnes of soy from the United States or Brazil, according to traders. Pakistan has been a big buyer of soy this year as import duties and local sales taxes have imports for local crushing more attractive than soymeal imports. “The country has already purchased over 700,000 tonnes of soy since the end of February this year and Pakistani processors are crushing over 75,000 tonnes each month,” said a trader. According to USDA forecast, Pakistan’s soybean imports will rise from 450,000 tonnes in the 2014-15 season to about 1 million tonnes in 2015-16.
|Korean food producers target solo diners |
[24 August 2015] South Korean food producers and retailers are expanding their ready-to-eat meal products to cater to the country’s rapidly growing single households who opt to eat in, partly to save time and money, said market watchers. CJ Cheiljedang, one of the country’s biggest food producers, is targeting the market with cooked rice and assorted toppings packed in a cup. “Consumers now want a meal that is fast and good,” the company said, adding it has sold more than 2 million cup rice products since their launch in April. E-Mart Inc, the country’s biggest discount grocer, is also moving to bolster its foothold in the market by teaming up with its hotel affiliate and targeting consumers looking for quality ready-to-eat meals. The company said it plans to increase the current 600 products to 1000 by 2019.
|Hot weather pulls down fisheries production in the Philippines|
[24 August 2015] The Philippine fisheries subsector recorded a 1.53% dip in production during the second quarter this year, with 'intense heat' being the main culprit, the Philippine Statistics Authority (PSA) said. Milkfish, tilapia, roundscad and skipjack production all posted declines, although tiger prawn and yellowfin tuna production posted double digit growths of 10.68% and 19.08% respectively. However, total gross earnings of the subsector topped USD 1.38 billion, up 0.56% from the same period in 2014, as average farm gate prices in the subsector rose by 2.12%.
|McDonald’s Japan posts loss in H1|
[24 August 2015] McDonald’s Holdings Company (Japan) Ltd, reported a nett loss for the first half of 2015 of around USD 211 million against a profit of USD 15 million a year ago as a slew of food safety scandals keep consumers away. This is reportedly the biggest loss the company has incurred since the listing of McDonald’s Holdings in 2001. The overall downside reflects weak demand as a result of a food safety scandal in China in July 2014 that has been hurting consumers’ confidence. Moreover, a series of other food contamination scandals like vinyl and teeth being reportedly found in some products further worsened the situation.
|CP Vietnam to grow processed food business |
[21 August 2015] CP Group is placing its bets on the processed food business in Vietnam boosted by the country's 6.2% GDP growth this year. Montri Suwanposri, Vice President of CP Vietnam Corporation said that food consumption in Vietnam is forecast to grow faster in the second half and Vietnamese consumers trust the quality and safety of products from Thailand. “We will continue to expand our business in Vietnam with a focus on processed foods, traceability and food safety,” said Mr Montri. This year, he said CP Vietnam will double the numbers of Five Stars grilled and fried chicken stalls to 1200 branches across the country while CP Fresh Mart will be increased to 20 outlets from 10 currently.
|US AI outbreaks officially resolved|
[21 August 2015] The World Organization for Animal Health (OIE) and the US Department of Agriculture (USDA) have announced closure to its follow-up to H5N8 avian flu outbreaks and noted that 11 states—because of measures taken after H5N2 outbreaks—are now free to move poultry domestically and internationally. In the first Aug 17 OIE report, the USDA noted that the last highly pathogenic avian influenza (HPAI) H5N8 detection was on May 10, and that all H5N8-related control areas have been released and H5N8 outbreaks closed. The USDA said that H5N2 events in all affected states except Iowa and Minnesota, the two hardest-hit states, are now resolved. The USDA said states that have not been released are making good progress. Experts anticipate that outbreaks of both H5N8 and H5N2 may resume in the fall as wild birds again migrate.
|Vietnam produces less pangasius |
[21 August 2015] In the first half of 2015, the pangasius farming area in Vietnam’s Mekong Delta stood at 5795 ha, down 3.7% year-on-year. According to the Ministry of Agriculture and Rural Development, in Q1 and Q2 of 2015, pangasius production was affected by a decline in exports and unstable prices. Disease due to higher temperatures maintained over many days, was also a factor that discouraged farmers to rear the fish. Pangasius production, in the first half of 2015, in Mekong Delta was 533,500 tonnes.
Striking a balance with beef in Indonesia
[21 August 2015]
The beef trade is a ‘hot’ discussion topic in Indonesia. The price usually declines gradually after Ramadhan and Eid Fitr as demand slumps. However, this year prices have remained high rising to USD 9.5-10/kg this week. Limited supply and high prices has caused traders in traditional markets to stop trade activities. In Q2 the government released import permit for only 50,000 head of cattle, confident that the national stock can meet the demand for Q3. But to stabilise the price now, the government plans to import 50,000 tonnes of beef and add on an import allocation in Q3 of 50,000 heads. Australia, the largest exporter of beef and cattle to Indonesia, wants Indonesia to change its beef and cattle calculation based on yearly rather than quarterly calculations.
New Trade Minister weighing beef imports
Indonesia’s new Trade Minister Thomas Lembong is ready to flood the markets with imported beef to bring down the price, but only if it’s necessary. Mr Thomas met President Joko Widodo on Wednesday to discuss the beef price spike that resulted after his predecessor slashed permits for Australian live cattle imports. Mr Thomas said he will watch the market before issuing permits for between 200,000 and 300,000 heads of cattle in the last quarter of the year. “If the price goes down by itself, why must we import? Even though I’m ready to flood the market with imports if necessary, to stabilise the price, I also agree that it’s the last option,” he told Skynews. He predicts that the beef price would ease in the coming three months.
Berdikari to set up cattle breeding farm and slaughterhouse in 2016
State-owned PT Berdikari that is involved in the integrated beef cattle business, is waiting for approval from the House of Representatives to get state investment capital of around USD 29.6 million. Majority of this will be used to develop a beef cattle breeding farm in Sidrap, South Sulawesi. Syukur Iwantoro, President Commissioner, said the company will also use the capital to set up cattle slaughterhouses in several regions where the company’s feedlots are located such as in Kupang, Bima, Lampung, Bali and Jember. “So far we sell live cattle to Jabodetabek, but with the slaughterhouses we plan to sell frozen beef to the market,” he said.
Indonesia assessing quarantine islands for imported cattle
The government plans to set up quarantine islands as it looks to import cattle from countries not entirely free of foot and mouth disease (FMD). The Indonesian Parliament passed legislation last year to allow for the importation of beef and live cattle from FMD free-zones of countries such as Brazil and India. The use of islands would allow Indonesia to closely monitor livestock imported from FMD free-zones and prevent the potential spread of disease. Islands being assessed include Naduk Island in the Bangka-Belitung province and Pulo Simuang Island in South Sulawesi. Muladno, Director General of Livestock & Animal Health, said that expanding import sources would be necessary to provide the country with affordable livestock and meat prices.
NT breeder cattle exported to Indonesia
Australia’s Northern Territory (NT) breeder cattle are starting to head to Indonesia, following the government's announcement that it wants to import two million breeders by 2018 to bolster the size of its domestic herd and decrease the country’s reliance on imports. Stocks from Hayfield Station were recently sold to clients in Indonesia as breeder cattle. The station’s Justin Dyer said the order of breeder heifers was organised before the announcement of the lower than expected live export permits for Indonesia. “I think it is just business as usual for this order. It is a good order and we are happy to supply them with these good breeder heifers,” he said.
Beef sellers stop trade due to skyrocketing price
Beef sellers in traditional markets in Jabodetabek, Bandung and Serang in Indonesia stopped selling beef to prevent further losses as the price of beef has reached USD 9.5/kg. “With the high price, consumer demand has dropped by 30%. This has affected our profits,” said Endang Mubarok, a member of the Indonesian Beef Sellers Association. To stabilise the high price, the National Logistics Agency (Bulog) is selling beef at USD 6.6/kg. Wahyu, Bulog Director, said: “We have prepared around 250 tonnes of beef for this. Plus, we have additional supply from Berdikari’s slaughterhouse in Cibitung that slaughters around 15-20 cattle per day.”
KPPU investigates possible beef cartel
Indonesia’s Business Competition Supervisory Commission (KPPU) is investigating the possibility of a cartel being involved in the drop in beef supplies and the increase in its price. “We are investigating whether there has been a conspiracy to withhold beef supplies,” said KPPU Head, Syarkawi Rauf. According to him, such an act would be considered a criminal violation of business competition laws. As a solution, the KPPU suggested that the government implement consistent and thorough trade regulations. Preferably whenever stock is limited, the government can intervene by, among other measures, allowing consumers to set the price and always maintaining the availability of products on the market.
Two Indonesian feedlots sealed due to stock withhold
Two cattle feedlots in Tangerang are being investigated for withholding stock amid Indonesia’s beef shortage. Indonesia’s National Police sealed the two Tangerang feedlots after discovering about 4000 slaughter-ready cattle. Beef prices soared after Indonesia’s decision to cut live cattle imports from Australia last month. However, officials suspect importers and feedlots of manipulating prices by holding back supply.
|Slower exports dent GPFT's profits|
[20 August 2015] Bangkok-based Bualuang Securities has advised investors to hold shares of GFPT, as lower chicken exports has resulted in reduced profit in Q2. The securities house said GFPT’s net profit fell 58% y-o-y to total USD 5.62 million due to lower exports to the EU and Malaysia and loss of domestic sales where price decreased. Chicken exports in Q2 dropped 24% from the same period last year to total 5300 tonnes. Brazil is a competitive rival as real depreciation has boosted its price competitive edge and some orders have been switched to Brazil. Bualuang Security forecast GFPT’s net profit for the Q3 at USD 8.98 million, a drop of 37% from the same period last year.
|Indonesia to run out of Australian beef in 6 weeks|
[20 August 2015] Indonesia is set to run out of Australian beef within six weeks, according to Australian cattle exporters who say Indonesia’s plan to combat rising meat prices and public protests has come too late. Last week Indonesian authorities issued import permits to state logistics agency Bulog for an extra 50,000 heads of slaughter-ready cattle. Stuart Kemp, Chief Executive of Australia’s Northern Territory Livestock Exporters Association, said Australian cattle producers would struggle to meet Indonesia’s new quota. Mr Kemp said most slaughter cattle had been sent to other overseas markets in the first half of the year, and dry conditions in Queensland would make the extra 50,000 difficult to source.
|Philippines livestock and poultry production up in Q2|
[20 August 2015] The livestock and poultry sector were the bright spots in Philippine agricultural production in Q2 this year, both showing growth, while other sectors declined. Data from the Philippine Statistics Authority (PSA) showed that output of the livestock grew by 5.2% year-on-year (yoy) on the back of a 5.6% growth by the hog industry, which reached 511,420 thousand tonnes. Gross value for the subsector also grew 1.6% yoy to reach over USD 1.3 billion for the period, with the pig subsector accounting for over 81% of the total. The PSA report also showed the poultry subsector growing by 4.71% in Q2 as chicken production rose to 403,380 tonnes and egg production grew to 107,850 tonnes for the period. However, total value for the subsector reached USD 989.5 million, down about 0.89% yoy. The PSA said the hog, chicken and chicken egg subsectors experienced declines of 4.7%, 6.9% and 0.56% in average farm prices, respectively.
|Vietnam shrimp exports to US decline 50% |
[20 August 2015] Vietnamese shrimp exports to the US faced a sharp decline in the first half of the year due to the low demand. Analysts said sales which generated only USD 262.7 million, were also affected by the US dollar appreciation against other currencies, which encouraged shrimp exporters from several countries to boost their shipments to the US leading to a price depreciation of 18.3%, from USD 14.50/kg. Meanwhile, Thailand and Indonesia increased exports to the US while sales from India and Ecuador decreased. The Vietnam Association of Seafood Exporters and Producers predicts that although exports to the US will fall by 40% this year to USD 638 million, increase in demand is expected thanks to lower anti-dumping taxes and low supply from India, Thailand, and Ecuador due to diseases, rising cost of farming and lower export prices.
|Bangladesh strengthens network of animal quarantine stations |
[20 August 2015] Bangladesh is strengthening its network of animal quarantine stations in ports to stop transboundary animal disease transmission. The Ministry of Fisheries and Livestock will set up these stations in six land ports and an airport to prevent diseases like foot and mouth disease, avian influenza, mad cow disease and anthrax. Project Director Dr Shafiqul Islam said the government has already established 17 quarantine stations in various land and sea ports. The project estimated to cost USD 7 million is expected to be completed in another two years.
|Cargill to enter salmon feed market with purchase of Ewos|
[20 August 2015] Cargill has agreed to acquire Ewos, a global leader in salmon nutrition, for USD 1.49 billion, giving the company an entry into the growing aquaculture industry, and specifically the salmon market. This is also the second aquaculture purchase the company has announced indicative of a ‘strategic investment’ in its long-term growth, said David MacLennan, Cargill President and CEO. “Adding Ewos’ will be transformational for our aquaculture nutrition business,” said Sarena Lin, President of Cargill’s Feed and Nutrition business. As part of the transaction, Cargill will acquire seven feedmills, three in Norway, and one each in Chile, Canada, Scotland and Vietnam, as well as two r&d centres located in Norway and Chile. Ewos produces more than 1.2 million tonnes of salmon feed for the biggest salmon producers in the world.
|Masan Group appoints new CFO|
[19 August 2015] Vietnam’s Masan Group’s deputy CEO Michael Hung Nguyen has been promoted to Chief Financial Officer. He will hold this title in addition to his role as deputy CEO and head of business development. At Masan Group, he assisted the CEO in executing the transformation of the company from a food firm into a leading private sector group. The establishment of the animal feed unit has helped Masan Group’s sales in the first quarter increase by 52% year-on-year to USD 480 million. Its profit after tax reached USD 30 million, while in the same period of 2014, it reported a loss of USD 1.2 million.
|Pakistan aims for slice of global halal meat trade|
[19 August 2015] Pakistan has introduced ‘The Pakistan Halal Authority Bill, 2015’ to promote halal meat exports and secure a share of the international halal business, which is now mainly supplied by non-Muslim countries. With the introduction of this bill, Pakistan will establish an authority at the national level to deal with the requirements of the halal sector. According to government sources, the Pakistan Halal Authority will be established soon. Apart from promoting halal trade, the bill also seeks to prevent imported food that is not halal certified.
|India second largest market for Domino’s Pizza |
[19 August 2015] India has emerged as the second largest market for Domino’s Pizza after the US, according to the 2014-15 annual report of the Indian franchisee Jubilant FoodWorks. The pizza major’s store count in India more than doubled in 2014-15 to 876 from just 378 in 2010-11. The report pointed out that though there is a huge difference between the Indian and US markets (US has more than 5,000 stores), India is still ahead of the UK, Australia and Canada. Interestingly, much of this growth came against the backdrop of a marked slowdown in discretionary spending.
|Dairy prices to recover|
[19 August 2015] In a new report, Dairy Industry Note - Riding out the storm, Rabobank says, while the dairy sector is currently experiencing a severe cyclical downturn, the mechanisms that will turn the market around have now been triggered and a substantial improvement in prices is expected by mid-2016. "Contrary to some recent analysis and commentary on the New Zealand dairy sector, Rabobank's view is the current price trough is part of an extended negative phase of the commodity cycle and not a structural, permanent change to supply and demand dynamics," said Rabobank New Zealand CEO Ben Russell. "We feel prices will recover to more sustainable levels over the medium term. Current market conditions are not the 'new normal', but a highly abnormal part of a difficult cycle."
|Poultry sector to propel amino acids market in India|
[19 August 2015] Growth in domestic compound feed in the Indian poultry sector is set to propel the amino acids market in India, according to Tech Sci research report. In India, amino acids find major application in the compound feed market for broiler and cattle feed. “Need for high end compound feed with amino acids has increased over the last few years due to integrated farming,” the report pointed out. The amino acids market in India which grew at 7.1% from 2010-14 is projected to account for revenues worth USD 471 million in 2020. High quality amino acids along with other feed ingredients are expected to increase the productivity of poultry.
Layer Feed Quality Conference - registrations close today
September 7, Jakarta, Indonesia
[18 August 2015]
Building on the success of the annual Poultry Feed Quality Conference, Asian Agribiz's inaugural Layer Feed Quality Conference has “Building a Sustainable Flock” as its theme. It will offer a dedicated focus on layer nutrition, management and feed production and will feature 11 presentations from renowned speakers, some of which are listed below. More details and registration form can be viewed here. Registrations close today.
Enzymes for layers: have we maximised the benefits?
The benefits of exogenous enzymes in layer diets have not been fully realized, due to a number of reasons including over-formulation of main nutrients, inconsistency of enzyme products and producers’ inability to judge enzyme efficacy. Dr Alex Wu, Adisseo will present new studies showing that a quality enzyme combination can significantly benefit the egg producers by contributing ME 50-65 kcal/kg, digestible amino acids 1.5-2.5%, calcium 1.2 g/kg and available phosphorus 1.5 g/kg, resulting in significant cost-savings and possibility to use wider-range of ingredients.
Impact of dietary organic acids on health and performance in layers
The presence of bacterial pathogens in the feed and environment of layer units can have serious consequences for bird health and productivity, especially in Asia, where higher environmental temperatures and humidity produce conditions where pathogens thrive. Dr Christian Lückstädt, Addcon will present data to demonstrate that 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.
Developments in gut health
Santiago Ramirez, Fractal Farming will focus on the description of the recent developments in gut health by focusing on three areas of influence: the physical aspects of the digestive system, microbiome of the digestive system and further nutritional strategies for optimizing gut health. He also provides a practical summary for the application of these concepts on farm in the different stages of the laying cycle.
Split feeding systems for sustainable egg production
The requirements of laying hens for protein, energy, calcium and phosphorous do not remain constant, but vary throughout the day, within the circadian cycle, based on their physiological needs for formation of the various components of the egg. Felipe Sánchez Trouw Nutrition will present the NutriOpt split-feeding system based on the concept of feeding hens two diets with different nutrients levels during the morning and the afternoon to meet the different requirements through the day.
Insoluble fibre, an “essential nutrient” for layers?
Insoluble fibre is an important component in layer nutrition. Traditional fibre sources bear a mycotoxin risk and the most traditional fibre sources contain significant amounts of soluble fibres. A good solution are the so called insoluble crude fibre concentrates based on lignocellulose. The do not carry mycotoxin risk and they are 100 % insoluble. Dr Luke Ing, J Rettenmaier & Soehne will present University and field trials that demonstrate that these insoluble, non-fermentable crude fibre concentrates have a positive impact in pullets one weight gain and gizzard size and in the laying stage on wet litter, feather pecking/cannibalism and performance.
|Thai food exports stable despite slow global economy|
[18 August 2015] Food exports from Thailand is forecast to reach USD 27.02 billion, below the earlier target of USD 28.14 billion due to contraction of the global economy, said Boonpeng Santiwattanatham, Chairman of the Food Processing Industry Club at the Federation of the Thai Industries. The sluggish world economy has resulted in delays in orders and lower import volume while fluctuating currencies has put more pressures on Thai food exports. The Yuan's depreciation is of concern as China is a rival exporter for products such as chicken meat and processed foods in markets like the European Union. However, Mr Boonpeng claimed that Thai products have a competitive edge in terms of trust.
|Carl’s Jr enters QSR market in India|
[18 August 2015] California based Carl’s Jr, one of America’s favourite burger chains has entered the quick service restaurant (QSR) market in India with the opening of its first restaurant in New Delhi. Carl’s Jr is known globally for its famous chargrilled burgers, hand breaded chicken tenders and hand scooped ice cream shakes. “India represents a tremendous market opportunity and we see the potential for more than 1,000 restaurants over time,” Ned Lyerly, President, International of CKE Restaurants, parent company of Carl’s Jr said. The restaurant will feature a special Indian palate menu that will include vegetarian options.
|Price of eggs up in Singapore|
[18 August 2015] The price of eggs in Singapore has risen slightly as supply from Malaysia is being diverted to Hong Kong, the Chairman of the Eggs Import/Export Trading Association Mr Tan Lau Huah told the Straits Times. Importers say prices have gone up by about 2 Singapore cents an egg, and Mr Tan foresees further increases. Hong Kong's supply of eggs from China has been disrupted due to heavy rains and Typhoon Soudelor. Mr Tan said the price may rise further as the farms in South China have been severely affected. Not all retailers are raising prices just yet but one supplier said in some places a tray of 30 eggs is now going for USD 3.65 instead of USD 3.22.
Poultry Feed Quality Conference registrations close tomorrow
September 3-4, Bangkok, Thailand
[17 August 2015]
The annual Asian Agribiz Poultry Feed Quality Conference is one of Asia’s leading conferences and scientific forums for poultry and feed industry professionals to update their knowledge and network with industry peers. The two-day conference has a strong technical program, led by internationally renowned speakers from academia and industry. Briefs of some of the papers are listed below. More details and registration form can be viewed here. Registrations close 18th August 2015.
Incorporating the immune system in feeding strategies
In the keynote presentation, Dr Jan van Eys, Global Animal Nutrition Solutions will focus on the demand for energy and protein (amino acids) of the immune system as a basis for enhancing effective nutritional intervention; be this at the immune systems “maintenance level” or during the instances of an increased demand for nutrients during specific challenges.
Rethinking the first load of feed
The first week post-hatch represents 20% of the life of a modern broiler; however it only consumes about 5% of the total amount of feed during this time. Relative cost is therefore less an issue in this early period. Chick weight on day 7 is usually a good indication of performance over the entire growout. Improving diet digestibility, increasing nutrient levels, or adding otherwise cost prohibitive additives might 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, University of New England will explore several ideas and present some on recent experiments.
Are we meeting the creatine requirements of poultry?
The endogenous supply of creatine is not sufficient to support the optimal production and performance of modern broilers and breeders, therefore it can be classified as a conditionally essential nutrient for poultry as the demand cannot fully be compensated by de-novo synthesis. Dr Girish Channarayapatna, Evonik SEA will review trials that show that supplementation of broiler and poultry breeder diets with guanidinoacetic acid (GAA), a natural precursor of creatine can successfully improve chicken performance and profitability, both in full vegetable diets and diets containing animal protein sources.
Beyond xylanases; the role of auxiliary enzymes
Not all xylanases possess the same efficacy against the large variation of plant substrates. According to Dr Pierre-André Geraert, Adisseo France SAS, numerous complementary enzymes are needed to maximize the breaking down of plant cell walls and enhance the feed value. He will address the structural complexity of NSP’s, such as the chain length, degree of substitution and the importance of debranching enzymes on the efficacy of NSPases.
Producing chicken without AGPs - what are the roles of pre and probiotics?
AGPs in animal feed are banned in some countries, while other countries are in the process of introducing similar restrictions. Consequently, the inclusion of either or both pro and prebiotics is now a routine procedure in many diets for a wide range of livestock species. It is reasonable to expect that the use of “natural” alternatives in animal production as replacement for “synthetic” molecules will increase. Dr Jan van Eys, Global Animal Nutrition Solutions will present that this change needs to be based on sound science and scientific process assuring improvements in animal health and/or well-being at a reasonable cost.
Hydrothermal refinement of carbohydrate-rich feedstuffs for use in poultry diets
Dr Heinrich Kleine Klausing, EW Nutrition GmbH will discuss actual results and experiences in Europe using pressurised hydrothermal processes in the refining of proteinaceous raw materials with a higher proportion of crude fibre – i.e. a higher content of structured carbohydrates – such as rapeseed extraction meal and sunflower extraction meal, as well as very high-fibre raw materials, such as soybean hulls. The objective is to increase the physical properties (swelling capacity) of the products, to make the enzymatic digestion of cell wall associated protein more accessible and to make the structured carbohydrates more fermentable for the intestinal bacterial flora.
|Trade blocs detrimental to Vietnam’s pig and poultry industries|
[17 August 2015] Vietnam’s livestock and poultry industries could lose out when trade blocs are formed, said Vietnam Institute for Economic and Policy Research. The research, conducted under the University of Economics and Business, highlighted the local livestock and poultry industries as unsustainable, uncompetitive and vulnerable, and could suffer when the Trans-Pacific Partnership and the Asean Economic Community (AEC) are realised. The country’s mostly small-scale farms, dependence on imported breeds, common diseases and limited slaughtering hygiene among others make it disadvantageous, said the research.
|New hybrid corn seed production lines by Dupont Indonesia |
[17 August 2015] Dupont Indonesia plans to add new hybrid corn seed production lines at its facilities in Sidoarjo and Pasuruan in East Java this year. George Hadi Santoso, Country Managing Director, said the expansion is important since their existing lines are now running at full capacity. According to him, the expansion was in respond the growing use of hybrid corn seeds in Indonesia. In addition, the company will also launch two new hybrid corn seeds, P35 and P32, that are resistant to weeds and for highlands, respectively. The new seeds are both for local and export markets, said Mr George.
|India introduces 10% import duty on wheat|
[17 August 2015] India’s Ministry of Finance has imposed a basic custom duty of 10% on imports of wheat till March 31, 2016. The move is aimed at offloading the government's wheat stocks and making cheaper wheat from Australia, France and Russia unviable. According to reports, traders have contracted to import over 600,000 tonnes of wheat, mostly from Australia this year. “The levy will result in a revenue gain of about USD 14 million in the remaining part of the current fiscal year,” Union Minister of Finance Arun Jaitley said.
|Hong Kong bans chicken meat, eggs from Vietnam|
[17 August 2015] Hong Kong’s Centre for Food Safety (CFS) said that in view of a notification from the World Organisation for Animal Health (OIE) about an outbreak of highly pathogenic H5N1 avian influenza in Tra Vinh Province, Vietnam, it has banned the import of poultry meat and products, including eggs. The centre has established a protocol with Vietnam for import of salted duck eggs but not for poultry meat. Due to the outbreaks, import of salted duck eggs from designated egg processing plants in infected regions has also been suspended. “The CFS will closely monitor information issued by the OIE on avian influenza outbreaks in the country,” the spokesman said.
Introductory and advanced NIRS workshops
Bangkok, September 1 & 2
[14 August 2015]
The Near Infra-Red Spectroscopy (NIRS) workshops to be held prior to the Asian Agribiz Poultry Feed Quality Conference in Bangkok will appeal to two levels of professionals. For further details click here or contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org). Registration closes 18 August.
Significant savings with NIR
According to workshop presenter, Ivan Ward of Agri-Torque measuring ingredients with an accurate NIR one can conservatively save USD 15/tonne of feed in Australian conditions, and that the potential savings in Asia are larger than in Australia due to higher nutrient variability, and these cost savings do not include improvements in animal performance.
Introductory NIRS workshop (1 September)
This workshop will be of interest to nutritionists, ingredient procurement and management who want to explore the different ways NIR can be used in their feed milling operations to save money, and improve feed quality and animal performance. Topics include
• Importance of nutrient data
• Where is nutrient data used
• Nutrient data sources
• How can nutrients be measured
• NIR basics
• Accuracy of NIR results
• NIR calibration process and
• Result validation.
Advanced NIRS workshop (2 September)
The NIRS Advanced Workshop will be of interest to technicians and nutritionists who want to understand more about NIR accuracy and using NIR data to capture opportunities. Topics include:
• NIR accuracy and calibration process
• NIR networks
• Using NIR data to build ingredient matrix, and
• Using NIR data to identify opportunities.
|Vietnam reaches FTA with EU |
[14 August 2015] The Vietnam EU Free Trade Agreement (EVFTA) that was endorsed recently gives both parties more accesses to each other’s markets. Frozen beef, dairy products, frozen pork and poultry from EU to Vietnam will enjoy zero tariffs after three, five, seven and 10 years respectively. According to EU’s Union of Producers and Employers of Meat Industry (Upemi), within the three quarters of 2014, EU’s beef and pork exports to Vietnam reached USD 3.3 million. Vietnam is a potential market of 90 million people for pork and beef products and is targeted by Upemi. Currently there are 100 meat exporters from EU that are allowed to export their products to Vietnam.
|Bulog guarantees sufficient corn |
[14 August 2015] Indonesia’s State Logistics Agency (Bulog) has guaranteed sufficient supply of corn for the animal feed industry despite the government’s import ban. The commitment was stipulated in an MoU signed by Bulog and 31 players in the feedmill industry recently as it aims to secure the industry’s commitment to absorb national corn production. Bulog will buy the corn from farmers and provide a buffer stock as well as distribute it to feed manufacturers. In exchange, feed millers have agreed to buy from Bulog, as well as from the farmers. “We are ready to absorb local corn production but the price should not burden the feed millers. We will look for the right price,” said, Djarot Kusumayakti, Bulog Director.
|India retains top spot in beef exports|
[14 August 2015] India has retained its top spot as the world’s largest exporter of beef with 2.4 million tonnes exported in 2014-15 financial year, according to data from the US Department of Agriculture, USDA. India’s beef exports have been growing at an average of nearly 14% each year since 2011 and fetching as much as USD 4.8 billion in 2014. About 80% of India’s beef exports go to Asian countries and 15% to Africa, with Vietnam being the largest recipient at 45%. Brazil and Australia were other top beef exporting countries in 2014-15 with 2 million tonnes and 1.5 million tonnes respectively.
|Chicken and egg prices surge in Pakistan|
[14 August 2015] Chicken and egg prices in Pakistan have seen sharp increases with live chicken prices touching USD 1.8/kg and eggs being sold at about USD 1.00/dozen. Pakistan Poultry Association Chairman Ahmed Waseem said that the sharp increase in prices is due to the severe heat wave that persisted for a longer period. “High mortality rate in poultry caused a gap in supply,” he said. Apart from this, energy shortage and rise of feed and medicine prices caused prices to rise further.
|Kerala plans for modern slaughterhouse in Kochi|
[13 August 2015] India's Kerala state government plans to build a modern slaughterhouse in Kochi city via a public private partnership. “The estimated cost for setting up the slaughterhouse is USD 2.5 million and the private agency operating the facility will share its revenue with the Kochi city corporation,” TK Ashraf, Kochi Corporation Chairman told Asian Agribiz. According to him, the modern slaughterhouse will meet all the safety guidelines issued by the Food Safety and Standards Authority of India.
|QL raises farmed shrimp output|
[13 August 2015] Malaysian agribusiness firm QL Resources aims to expand its farmed shrimp output and build a new processing plant, reported The Star, cutting a note from CIMB Equities Research. The brokerage stated that QL is looking to double its output in FY16 as more ponds are built. QL had just completed the construction of its hatcheries and nurseries to reduce the mortality rate of post larvae and building a shrimp processing plant, noted CIMB. It is also planning to expand the Kembang Subur Sdn Bhd’s farm capacity by 60%. CIMB said QL continued to see strong demand for surimi-based products, prompting the company to buy a parcel of land nearby to build an additional chilled surimi-based product plant in the later part of FY16.
|Corn import ban troubles Indonesian feed millers |
[13 August 2015] Indonesia’s recent move to temporarily ban corn imports has left vessels carrying 480,000 tonnes of imported corn stranded at domestic ports, forcing additional charges on importers. Desianto Budi Utomo, Secretary General of the Indonesian Feed Millers Association, said the vessels, which were supposed to dock at ports in Medan (North Sumatra), Jakarta and Surabaya (East Java), had yet to acquire permits to unload the shipments. He estimated that feed millers had to pay a daily fee amounting to USD 13,000 to the vessel owners for the extended use of the vessels. He added that the industry was not given enough time to adjust following the government’s sudden ban.
|Vietnam aims for import-export balance |
[13 August 2015] Vietnam is planning to restructure its animal husbandry industry to help the country find a balance in import-export, which is currently biased on imports. According to the Department of Animal Husbandry, in the first five months of this year, Vietnam imported 2032 tonnes of pork valued at USD 4 million, or up 46.6% in quantity and 59.5% in value. Chicken meat imports, meanwhile, increased to 56,917 tonnes valued at USD 52.7 million, or up 54.5% in quantity and 31.3% in value. Cao Duc Phat, Minister of Agriculture and Rural Development, said: “This restructuring also includes changing the perspective and increasing competitiveness in terms of quality and value.”
|KFC Thailand on expansion drive|
[13 August 2015] KFC plans to spend around USD 51 million for expansion and to upgrade its services in Thailand. Waewkanee Assoratgoon, Country General Manager for KFC at Yum! Restaurants International (Thailand), the operator of KFC in Thailand, said they expect to open 40 new restaurants this year including 10 drive-through outlets, to total 535 stores nationwide. “Despite the economic challenges, we see a trend towards convenience and urbanisation and this has spurred our growth in Thailand,” Ms Waewkanee said. KFC is also introducing the ‘Speed Up Order Process’ (SOP) for faster deliveries. It doubles the number of customers served per hour. It will install this new system at all outlets this year.
|AB Vista opens office in India |
[13 August 2015] AB Vista has opened its first office in India following extensive growth in the region over the past eight years, said a company statement. Located in Pune, the office will serve as a base for sales, technical, finance and supply chain functions. “We have a number of long term plans for the market and are committed to the Indian feed sector,” Dr Dinesh Bhosale, Regional Sales Director for AB Vista South Asia said. Ari Kiviniemi, Global Sales Director said that the company’s rapid growth in India has exceeded expectations and the new office is a milestone in that journey.
|US beef industry seeks better access to Indonesia|
[12 August 2015] The US Meat Export Federation (USMEF) and related associations recently filed comments with the US Trade Representative USTR highlighting a number of requirements that are inconsistent with Indonesia’s international trade obligations. “This is a market with excellent potential for US beef – from high-end cuts for the hotel and restaurant sector, to variety meats used for processing," said Thad Lively, USMEF Senior Vice President for Trade Access. "But the business climate must be more stable and reliable. We’re hopeful that the dispute settlement process allows us to re-establish the presence of US beef in Indonesia.” In 2011, the US beef industry shipped nearly 18,000 tonnes of product to Indonesia, valued at more than USD 28 million. However, exports declined in 2012 to 1,646 tonnes valued at USD 8.5 million.
|Esso to increase Burger King stores |
[12 August 2015] Oil Company Esso (Thailand) plans to expand the number of Burger King restaurants at its gas stations in Thailand after the first store in the eastern part of Bangkok received good patronage. Mongkolnimit Auacherdkul, Esso (Thailand)’s Director, said the company will accelerate its expansion this year and will focus on suburban areas around Bangkok. Apart from Burger King, Esso is also looking for possible partnerships with other food chains such as KFC, McDonalds, Lawson and Family Mart convenient stores as well as local coffee shops.
|Soy acreage hits record in India|
[12 August 2015] Total area sown under soybean in India has crossed record 11.18 million hectares this monsoon season, the highest in recent years. Executive Director of Soybean Processors Association of India (SOPA) DN Pathak said there has been a shift from paddy to soy in some parts of Madhya Pradesh and Rajasthan states as farmers saw better returns with soy. “Farmers were encouraged to shift to oilseed crops because of the good returns with soy, groundnut and sesame in the last season,” he said. Madhya Pradesh and Maharashtra are the leading soybean growing states in India.
|Cargill blames weak markets for poor results|
[12 August 2015] Cargill reported that earnings for the fiscal year dropped 13% to USD 1.58 billion from a year ago, due to sluggish economies in many emerging markets. In its press release it revealed that revenues decreased 11% to USD 120.4 billion. Fourth-quarter revenues were USD 28.4 billion, compared with USD 36.2 billion in the year-ago period. “While several Cargill businesses generated strong earnings in 2015, we lagged results from the prior year and did not meet our own expectations,” said David MacLennan, Cargill’s President and Chief Executive Officer. “The economic environment remains sluggish in many emerging markets where we have invested significantly over the past several years. Even so, we aim for growth and profitability through these cycles.”
Asian Agribiz regional dairy update
[12 August 2015]
Vinamilk kicks off construction of dairy farm network
Vietnam Dairy Products Joint Stock Company (Vinamilk) this week (Aug 10) broke ground for the construction of a high-quality dairy farm network at Yen Dinh district, Thanh Hoa province. It is the biggest agricultural project in the locality to date. The network will group four farms covering a total area of 2500ha. Built with a capital of USD 73.3 million, it can hold 16,000 cows imported from Australia and the US. This will be increased to 24,000 head in phase II. The network is set to apply modern dairy farming technology to ensure environmental hygiene with the system farming, grass warehouse, agricultural cultivation area for milk processing and supporting works. Once operational in 2017 the farms are set to produce 36 million litres of milk annually.
Muthoot group to enter dairy business
Muthoot Group in India’s Kerala state, a diversified business conglomerate has announced plans to enter the dairy business with a pilot project in Kerala. “The USD 0.18 million project will start in six months at Kozhippara, near Walayar in Kerala state,” Thomas Muthoot, Executive Director of the company said. The group will initially process 6,000-8,000 litres of milk sourced from within a 30-40 km radius and plans to scale up the project. According to him, Muthoot’s microfinance division has around 50,000 small dairy farmers among its customers and the business opportunity was noted after studying the financials of marginal dairy farmers.
Philippine dairy imports down
The Philippines imported less dairy products in 2014, just above 1740 tonnes, or down 10.57% from the previous year, the Philippine Statistics Authority said. The value however, is up 2.2% to USD 876 million from USD 857 million in 2013. The US and New Zealand led the list of dairy exporters together accounting for about 58% of the total. Milk and cream made up the bulk, or 92%, of the total, with butter and cheese making up the rest. Meanwhile local milk production inched up by 1% to 19,728 litres (L) from 19,526L in 2013. The Philippines, which currently imports more than 98% of its total milk requirements, is trying to boost its dairy industry through various programs including the improvement of its local animals and the development of more dairy zones in the country.
India extends ban on Chinese dairy
The Food Safety and Standards Authority of India has extended its ban on products containing dairy from China for another year till June 2016. The ban was first imposed in 2008 due to melamine contamination and was extended year-on-year on the basis of annual review. Rakesh Chandra Sharma, Director of FSSAI said that the ban would be removed only if China gives credible information that milk and milk products are safe for human consumption. According to the notification, safety of products containing Chinese dairy could not be assumed unless it is substantiated.
|Lifting Cambodia’s food standards from farm to table|
[11 August 2015] Some farms and food production establishments in Cambodia are working towards raising the quality of the local food supply chain, said a report in the Phnom Penh Post. Using quality feed ingredients such as soybean and broken rice, for instance, has helped La Ferme de Bassac pig farm in Kandal province in Phnom Penh, produce safe meat that is flavourful and has a healthy white hue, said Thierry Pradalet, Executive Director. Its 700 pigs live on a healthy diet and do not use growth-inducing hormones or disease-preventative antibiotics. The 1ha farm sells its meat at about USD 2.75 per kg, roughly USD 0.50 more than the price in wet markets. These good practices allows the five-year-old farm to also supply meat to some of Phnom Penh’s better known up-market establishments.
|CP Prima reports increase in shrimp, feed sales|
[11 August 2015] Central Proteinaprima (CP Prima), the largest shrimp processor in Indonesia, reported strong sales and operating profits for H1 2015. The company’s feed sales were USD 192,000, up 12.58% y-o-y, while shrimp sales increased 10.48% y-o-y to USD 113,000. Despite this, the company – which generates the biggest chunk of its sales from feed production, followed by shrimp – saw its first half net loss widen, due to foreign exchange losses. CP Prima incurred foreign exchange losses on bonds of USD 16.06 million, compared to gains of USD 1.4 million in H1 2014. However the turnover for CP Prima increased 10.78% year-on-year, to USD 341.88 million.
|India, US working on compliance date in WTO poultry case|
[11 August 2015] India and the US have begun deliberations to agree on a deadline, to comply with the WTO decision that faulted India’s ban of US poultry. If both the countries cannot come to an agreement, an arbitration panel will craft a reasonable time period for India to bring its import rules into compliance. India announced its intent to comply with the WTO's panel and Appellate Body rulings last month and promptly informed the US and other members that it would need a reasonable period of time for compliance.
|Indonesia’s corn exports reach 400,000t|
[11 August 2015] Indonesia’s Ministry of Agriculture claimed that until July the country has exported around 400,000 tonnes of corn. Amran Sulaiman, Minister of Agriculture, said the corn was from Gorontalo, South Sulawesi, Dompu, Bima and Sumbawa. “We are optimistic that next year we will be able to export around 700,000 tonnes,” he said. Desianto Budi Utomo, Secretary General of the Indonesian Feed Millers Association, commented that corn producers prefer to sell their produce to the Philippines as they get a better price there.
|US restores GSP to Indian exporters |
[11 August 2015] The US has renewed its generalised system of preferences (GSP) under which Indian exports will see tariff benefits. Federation of Indian Export Organisations (FIEO) President SC Ralhan said that it will increase competitiveness of Indian goods covered under GSP in the US market. Ever since the GSP program expired in 2013, Indian exporters were demanding renewal. It has now been renewed with retroactive effect from August 1, 2013 and will be in place until December 31, 2017. The US Customs and Border Protection will again accept claims for GSP from July 29, 2015.
|Beef price up in Kerala due to low supply|
[10 August 2015] Beef price in India’s Kerala state has increased by around 10% to USD 5/kg as cattle supplies from neighbouring Tamil Nadu has been disrupted. K Mohammed, Joint Secretary of the Kerala State Meat Workers Congress told Asian Agribiz that the disruption was because cattle suppliers in Tamil Nadu were under attack by those opposing beef. “The state is facing a beef shortage and our demand for beef is largely met by supplies from other states as cattle raised within Kerala can meet only a fraction of the demand,” he said.
|Suspension of corn imports will raise poultry prices|
[10 August 2015] Indonesia’s recent move to suspend imports of corn for animal feed will cause wholesale poultry and egg prices to rise at least 6% over the next month, according to the Indonesian Poultry Farmers Association (Pinsar Indonesia). Indonesia, which imports corn mainly from Argentina and Brazil, stopped issuing import permits for corn in July as it made a broader push for food self-sufficiency. “The policy has good intentions but it was too sudden,” Hartono, Pinsar Indonesia Chairman, commented. “The import of 3mt of corn per year can provide jobs for so many people here,” he added, referring to the volume of grain that had been slated for import this year. He also informed that after the announcement of the suspension, corn traders had raised prices by 10%.
|Canadian seafood gains ground in Asia|
[10 August 2015] Canada’s seafood industry is making a comeback thanks largely to growing exports to Asia, and China in particular. Trade numbers released by Statistics Canada showed that exports of seafood products jumped nearly 130% in June from May. “Prepared and packaged seafood products … comprised almost 30% of the growth in the consumer goods section,” said Nita Boushey, an analyst at Statistics Canada. A good chunk of those exports have been heading to Asia. Data provided by the Department of Fisheries and Oceans showed lobster exports to Asia, specifically to China, have nearly doubled in recent years, rising to 4700 tonnes of product valued at USD 76 million in 2014. That compared with 2700 tonnes of product worth USD 42 million in 2013.
|Sierad Produce reduces feed production by 50%|
[10 August 2015] The weak purchasing power in Indonesia, currency depreciation, broiler DOC oversupply and low chicken prices have led Sierad Produce to reduce its (poultry) feed production by 50% to prevent more losses. Its current feed production is around 20,000 tonnes/month, as reported by Kontan daily. “From our total corn need, we import around 40% from Argentina and Brazil. And the currency depreciation has raised import costs,” said FX Awi Tantra, Director.
|Corn prices continue uptrend in India, says USGC|
[10 August 2015] Corn prices in India continue to move up as supplies have diminished and requirements for the next three months have to be met through the stocks, according to the US Grains Council. USGC India Representative Amit Sachdev said that the 4.5 mt needed for August to October, has to be met with stocks from the 2014-15 crop. “There was an increase of almost USD 24 tonnes in 15 days,” he said. According to him, spot market prices continue to move up and the new crop for this season will start arriving only in October.
|Introductory and advanced NIRS workshops|
[07 August 2015] The Near Infra-Red Spectroscopy (NIRS) workshops to be held prior to Asian Agribiz Poultry Feed Quality Conference in Bangkok and Layer Feed Quality Conference in Jakarta will appeal to two levels of professionals. The NIRS Introductory Workshop will be of interest to nutritionists, ingredient procurement and management who want to explore the different ways NIR can be used in their feed milling operations to save money, and improve feed quality and animal performance. The NIRS Advanced Workshop will be of interest to technicians and nutritionists who want to understand more about NIR accuracy and using NIR data to capture opportunities. For further details click here or contact Omthong Tjoa or Sutasinee Lake (email@example.com). Registration closes 18 August.
|TFMA expects Thai feed demand to grow|
[07 August 2015] The Thai Feed Mill Association (TFMA) expects overall feed demand to increase to around 18 million tonnes in 2015, up 7% from last year. This reflects growing boiler production which is expected to rise by 10%, driven by anticipated chicken meat exports which are forecast to increase by 5% this year, particularly in the second half of the year as South Korea is anticipated to lift the ban on Thai frozen chicken meat. While broiler feed demand accounts for around 40% of total feed demand, swine feed production, which accounts for around 30%, will likely grow 3%. Layer feed production which accounts for 20% is expected to grow by 5%.
|Bangladesh considers formal cattle trade with India|
[07 August 2015] In the backdrop of India putting an end to cattle smuggling into Bangladesh over security concerns, Bangladesh is mulling a formal cattle trade with India. India’s action has resulted in spiralling of beef prices in Bangladesh and an acute shortage of the meat. Bangladesh's Ministry of Commerce will consider the opinion of the Ministry of Foreign Affairs before putting the proposal across to India. A spokesperson of Ministry told Asian Agribiz that Bangladesh fears a further spike in prices if cattle cannot enter Bangladesh from India. As per estimates, around 170,000 cattle were smuggled to Bangladesh from India in 2014.
|Price decline affects Indonesia’s shrimp performance|
[07 August 2015] Indonesia’s Fisheries and Marine Affairs recorded a decline in shrimp price on August 3 to USD 5.1/kg from USD 5.6/kg. Saut P Hutagalung, Director General of Fish Processing and Marketing, said international shrimp prices have been declining since Q3 2014. Thomas Darmawan, Chairman of the Indonesian Fish Processors and Exporters Association, said weak demand in the US contributed to the decline. “Our exports to the US are also declining since India offers a lower prices.” Meanwhile Iwan Sutanto, Chairman of the Indonesian Shrimp Club (SCI), said the price decline will lead to lower margins or even losses to shrimp farmers. In H1, SCI produced around 200,000 tonnes of shrimp, while in H2 the association targets to produce around 300,000 tonnes.
|Philippine pizza chain to expand in the UAE|
[07 August 2015] Max’s Group Inc (MGI), a large casual dining restaurant company in the Philippines, announced that it will bring Yellow Cab Pizza, a popular homegrown Philippine pizza chain to the United Arab Emirates (UAE). MGI said it has signed a development agreement with Middle East-based Cartoon Fashion Group to build 10 Yellow Cab Pizza outlets in the UAE within the next five years. MGI President and CE Robert Trota said the move is in line with the company’s thrust to expand its international presence into new markets. Yellow Cab, best known for its New York-style pizza, already has six branches in Qatar.
|Fast Food Indonesia plans for 20 new KFC outlets|
[07 August 2015] Fast Food Indonesia, the operator of KFC in Indonesia, plans to renovate its existing outlets and open new outlets during the second half of this year. The company will renovate 40 outlets that will cost around USD 2 million. “This is aimed at attracting more consumers,” said Justinus Dalimin Juwono, Director. Meanwhile 20 new outlets are planned for Jakarta, Kalimantan and Sulawesi. This expansion will cost the company around USD 6 million, according to Mr Justinus. At the moment the company operates 510 KFC outlets throughout the country.
|Early bird and team registrations close tomorrow|
[06 August 2015] The 2015 Poultry Feed Quality Conference organized by Asian Agribiz and which will be held on 3-4 September at the Amari Watergate Hotel in Bangkok has a strong science-based technical program with carefully selected papers containing relevant trial data and practical solutions for Asia. Register here by August 7, to enjoy the early bird and team registration discounts. Contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org) for any queries.
|China looks for consistent beef supply|
[06 August 2015] Rabobank believes that Chinese investors will play an influential role in the global beef market over the next decade. According to its latest report, ‘Moving Globally: What role will China play in the global beef market?’, China's beef demand will grow an additional 2.2 million tonnes by 2025. "Beef companies face the challenge of where to source consistent beef supply, but they also need to develop, and even create, new markets by delivering new products and addressing the needs for convenience, tailor-made value-added products," said Pan Chenjun, senior analyst from Rabobank. To cope with the challenge, Chinese beef companies aim to participate in the whole supply chain--from farming to processing--in order to not only secure resources such as grassland, but also to take a strategic step to integrate the whole value chain.
|Tesco Lotus cuts prices in Thailand|
[06 August 2015] Tesco Lotus, the UK hypermart chain in Thailand, has announced a major slashing of retail prices of various food items to levels equivalent to wholesale prices. Chief Commercial Officer Sompong Rungniratttisai said Tesco Lotus spent around USD 17.1 million to reduce prices of fresh foods such as farm produce, meat, eggs and seafood by 15% from normal prices to help customers save on living costs amidst a difficult economy. This campaign is the largest in 20 years of the chain’s operation in Thailand.
|Japfa Indonesia hit hard by rupiah, rising costs|
[06 August 2015] Japfa Comfeed Indonesia continued to suffer net losses in the first half of this year due to foreign exchange volatility and the rising cost of goods sold. The company ended the first six months of this year with around USD 20.2 million in net losses compared to around USD 24 million in net profit in the same period last year. Net sales dropped to around USD 899.6 million in the first half from around USD 902.5 million over last year. Japfa slashed its capital expenditure this year to around USD 55.5 million from USD 133.3 million. This will be used for breeding farm and feedmill expansion and production facilities maintenance. According to Bambang Budi Hendarto, Vice President Director, the company cannot aggressively expand its business this year due to low demand.
|Lite Bite Foods enters travel food retail |
[06 August 2015] Indian food & beverage retail company Lite Bite Foods is cooperating with HMSHost, the world’s largest provider of food & beverage services for travellers to expand its presence in the travel food retail industry. Lite Bite Foods Chairman Amit Burman said that the 49:51 joint venture with HMSHost aims to acquire rights to launch and operate outlets at airports in India and neighbouring countries. “We plan to enhance our brand presence at strategic locations,” he said. The company has strong brands like Punjab Grill, Fresc Co, Subways and Baker Street under its umbrella in India.
|Anna Creek Station is up for sale|
[06 August 2015] The world’s largest cattle ranch, Anna Creek Station in South Australia, is up for sale. Owner S Kidman & Co has put up 11 million ha of land up for sale including working units in Western Australia, Queensland and the Northern Territory. This includes 10 cattle stations, 185,000 cattle as well as a bull breeding stud farm and a feedlot. Headquartered in Adelaide, the company turns out an average 15,000 tonnes of carcass beef annually, supplying 1.3% of Australia’s boxed beef exports. It is believed that more than half of the prospective buyers are Australian, with other bidders from China, Indonesia, Britain, the US, Canada, South America and Switzerland.
|Learn how to use NIRS to improve feed quality and save costs|
[05 August 2015] Following the success of its Near Infra-Red Spectroscopy (NIRS) workshops in Bangkok, Thailand at the 2014 Poultry Feed Quality Conference, Asian Agribiz will hold two, one-day NIRS workshops in Bangkok prior to the 2015 event and one prior to the inaugural Layer Feed Quality Conference in Jakarta. The workshops will be presented by Australian NIRS expert, Ivan Ward of Agri-Torque Pty Ltd. Ivan has extensive practical experience implementing NIRS systems, in particular with Australia’s largest feed miller. For further details click here or contact Omthong Tjoa or Sutasinee Lake. Registration closes on 18 August.
|Philippines, Vietnam cooperate in tuna industry|
[05 August 2015] Vietnam plans to send a working group to the Philippines to learn about tuna fishing and processing technologies, said Deputy Minister of Agriculture and Rural Development Vu Van Tam. He said Vietnam and the Philippines have signed a fishery cooperation agreement and set up a hotline to deal with issues related to fishing at sea. He added that the Philippines wants to learn aquaculture and fish processing technology from Vietnam while Vietnam should study tuna fishing and processing technology from the Philippines.
|Pakistan offers tax holiday for meat processing sector|
[05 August 2015] Pakistan’s meat processing sector is set to grow at a faster pace as the Federal Government has offered a four-year tax holiday for new entrants. Meat processing facilities established by December this year and with Halal certificates will be eligible for the tax reprieve. Industry sources said the country’s meat processing sector has been doing reasonably well and the tax holiday will help draw new companies. Meat exports from Pakistan have grown in the last decade and raised USD 240 million in 2014-15 financial year.
|Bulog to get exclusive corn import permit|
[05 August 2015] Indonesia’s government plans to give an exclusive permit to the National Logistics Agency (Bulog) to import corn for animal feed. Muladno, Director General of Livestock and Animal Health, said this is in anticipation of a corn shortage, as well as to stabilise the price. He denied that the move is aimed to compete with corn importers. The government has currently suspended corn imports as the national corn supply verification process is ongoing.
|HPAI outbreaks in Vietnam, Taiwan|
[05 August 2015] Veterinary officials in Vietnam and Taiwan have reported highly pathogenic avian influenza outbreaks from different strains - H5N6 in Vietnam and H3N2 in Taiwan. In Vietnam, the virus struck village birds in Quang Ngai province, on the country's central coast, according to a report to the World Organization for Animal Health (OIE) yesterday. The virus killed 115 of 1,200 susceptible birds, and the remaining 1,085 were culled to control the spread of the virus. Meanwhile, Taiwan authorities reported four more H5N2 outbreaks in Changhua and two in nearby Yunlin. Taiwan has been battling both low-pathogenic and highly pathogenic H5N2 outbreaks over the past several months, in addition to several involving highly pathogenic H5N8.
|Black Sea feed wheat flooding Asian market|
[05 August 2015] Black Sea feed wheat is flooding the Asian market as feed millers snap up cheap supplies, booking shipments right up to December as they replace corn in animal rations. South Korea, the Philippines and Thailand have booked close to 3 million tonnes for shipment between July and December, worth about USD 600 million. A jump in Asia’s feed wheat consumption could reduce the region’s dependence on corn imports from the US and South America, weighing on prices of the feed grain. “In the past few weeks’ Brazilian corn has been a little more expensive than feed quality wheat coming from Ukraine,” said a Singapore-based trader told Reuters. “Millers have booked several (wheat) cargoes. We expect some importers to buy feed wheat on a regular basis.”
|Thaifoods plans for IPO|
[04 August 2015] Thaifoods Group is planning for an Initial Public Offering (IPO) of up to 1.4 billion ordinary shares to raise fund for the expansion of its poultry and pig farming and processing business. The company has submitted the filing to the Stock Exchange of Thailand and expects to conduct the book building in August and commence share trading in September. Winai Teawsomboonkit, Chairman of the Executive Committee and the Chief Executive Officer, said the company will use the funds of up to USD 77 million over the next three years for a chicken sausage plant, expanding poultry processing, intensifying commercial pig farming capacity and upgrading machinery at the existing feed mills and building a new feedmill.
|Sierad ventures into beef sector|
[04 August 2015] With its recent acquisition of cattle feedlotter Great Giant Livestock in Lampung earlier this year, Indonesia’s poultry integrator Sierad Produce will extend to the domestic beef market. “We are targeting the fast food sector,” said Director FX Awi Tantra. At the moment Sierad is trying to supply its beef to McDonald’s Indonesia. Mr Awi said: “The beef still needs to be certified by the fast food chain’s international laboratory. After granting certification, discussions of pricing, volume and distribution can proceed. With the certification we can also talk about the possibility of exporting to McDonalds in Malaysia or even Singapore.”
|Japan, US discuss TPP beef, pork safeguards|
[04 August 2015] Japan and the US are in the final stage of talks on criteria for invoking safeguard measures to limit imports of US beef and pork as part of the proposed Trans-Pacific Partnership (TPP) trade pact, reported the Japan Times. Presuming a final agreement is reached, the two countries are planning to put safeguard measures for beef in motion 15 years after the resulting trade accord takes effect, if the total amount of beef imports exceeds around 739,000 tonnes, and for low-priced pork in 10 years if total imports exceed 150,000 tonnes. Tokyo called for safeguard measures to protect domestic farmers. Japan-US differences over the TPP have been one of the thorniest issues in the negotiations.
|Japfa’s Q2 earnings plunge to USD2.96m|
[04 August 2015] Singapore-based agrifood company Japfa Ltd reported an 86% year-on-year slide in net profit to USD 2.96 million for the second quarter ended June 30, 2015, due in part to lower revenue as well as the absence of a one-off gain from an asset disposal in the corresponding quarter a year ago. Revenue declined 8% to USD 704.25 million mainly due to the Indonesian operations in the animal protein and consumer food segments that saw continued decline in consumer demand. For the six-month period, net profit dropped 71% to USD 9.96 million, while revenue slid 5% to USD 1.38 billion. “As we navigate the headwinds in Indonesia, we will continue to leverage our track record in replicating our industrialised and scalable business, to build our three key business pillars - dairy in China, poultry in Indonesia, and poultry and swine in Indochina,” said CEO Tan Yong Nang.
|Philippines ban poultry from UK|
[04 August 2015] The Philippines has placed a temporary ban on poultry imports from the UK after the UK’s Department of Environment, Food and Rural Affairs (Defra) confirmed an outbreak of highly pathogenic avian influenza (HPAI) serotype H7N7 among free range and house-laying hens in Lancashire, England. Defra reported the outbreak on July 14. The ban includes domestic and wild birds, poultry meat, day-old chicks, eggs and semen however, frozen poultry meat that was slaughtered or processed 21 days prior to the HPAI outbreak will be allowed entry, subject to compliance to veterinary quarantine rules and regulations. The Philippines has been strictly monitoring its borders to keep AI at bay.
|Good prospects for India’s summer crops |
[04 August 2015] Due to good rainfall during the recent monsoon in India, prospects of summer crops like rice, pulses and oilseeds are good in most parts of the country. As per latest data from Union Agriculture Ministry more than 50% of sowing of summer crops has been completed and farmers have taken up pulses, oilseeds and coarse cereals in a big way. Area under these crop categories has increased signalling record production of these crops. India Meteorological Department Director General Laxman Singh Rathore said that except for Maharashtra, Andhra Pradesh, Telangana and Karnataka, which received lower rainfall, the crop situation in rest of the country is good.
|QL Indonesia sells more eggs to modern market|
[03 August 2015] In less than five years QL has become a major quality egg producer in Indonesia. QL eggs are produced in a modern layer farm in Cianjur, West Java. The closed house farm is equipped with modern technology including washing, grading and packing machines. “At the moment we have a population of 1.6 million birds. Our egg production per day reaches 800,000 eggs, or around 50 tonnes,” Cecep Muhammad Wahyudin, Director of QL Group Indonesia, told Asian Agribiz. Around 48% of the total egg production is sold to the modern market in the Jabodetabek region. QL also supplies eggs to all outlets of McDonald’s in the country. Its eggs packed in 10's is retailed under the ‘QL NutriFresh’ and ‘QL Fresh Egg’ brands.
|NZ to ban antibiotics by 2030|
[03 August 2015] By 2030, New Zealand Veterinary Association (NZVA) said, the country will not need antibiotics for the maintenance of animal health and wellness. Dr Steve Merchant, NZVA President, said this is a significant undertaking, requiring considerable teamwork and commitment from the veterinary profession, working with the medical, scientific, government and relevant primary industry sectors. Scientific adviser on the project Eric Hillerton said New Zealand animals were among the healthiest in the world. Dairy cows need a third of the antibiotics that they need in the US, and sheep are rarely given drugs. Mr Hillerton said there was already zero use of antibiotics in aquaculture, and the country’s grass-based farm management systems were healthier ways of raising livestock than intensive systems.
|Thailuxe expects 40% revenue growth|
[03 August 2015] Thailuxe Enterprises, a producer of aqua feed and frozen food, expects revenue to grow by around 40% this year thanks to the recovery of the shrimp market and a new plant, Anurot Seneepakonkai, Chairman, said. The company produces, sells and exports feed for fish, shrimp and pets and also frozen food, and does fish farming. Mr Anurot said Thailuxe’s feed business contributes 70% to revenue, followed by frozen food with 20% and fish farming 10%. To reduce the effects of the shrimp market slowdown, the company plans to reduce shrimp feed contribution to less than 15% and up pet food to more than 25%. Recently Thailuxe opened a new plant in Songkhla province. It can produce around 13,000 tonnes per year of fish, shrimp, and pet feed.
|Upsurge in India's egg price |
[03 August 2015] Wholesale price of eggs in India has increased by USD 0.0028 at 0.051 per egg and is expected to increase in the coming days due to high demand. P Selvaraj, Chairman National Egg Coordination Committee, Namakkal zone said that egg production had dropped due to heavy rains in many parts of India. “This led to a drop in supply while demand in Delhi and Uttar Pradesh and the NECC Zones has grown,” he said.
|Meat imports pose challenge for Vietnam|
[03 August 2015] Over the past three years, the volume of frozen pork imported from the EU has increased 7.5 times to 6100 tonnes, and that of beef jumped six-fold to 1000 tonnes, The Viet Nam Trade Promotion Agency reported. Nguyen Van Trong, Deputy Head of the Livestock Department, said the meat industry has developed over the last few years but is likely to face challenges. Backyard farms are the major producers in the local livestock industry, however, this farming system does not see farmers coming together as part of a production chain. Food producers too have not been able to integrate backyard farmers into their operations.
|11 presentations at Layer Feed Quality Conference in Jakarta|
[31 July 2015] The program for Asian Agribiz's Layer Feed Quality Conference in Jakarta, Indonesia on September 7 will feature 11 presentations including From egg to plate - opportunities for enriched eggs by Han Zhaopeng, Vice Director of Beijing DQY – the largest egg producer in Asia; Nutrient retention and nutrient waste for layers by Dr Rosalina Angel, Assistant Professor, University of Maryland, US; Developments in gut health by Santiago Ramirez, Principal Consultant and Nutritionist with Fractal Farming, Australia; while Felipe Sanchez, Application & Solution Specialist with Nutreco, Spain will explain the latest developments in time-based split feeding systems. More details here or contact Omthong Tjoa or Sutasinee Lake (email@example.com).
|Vietnam livestock producers challenged by imports|
[31 July 2015] Imports of meat is putting pressure on the growth of Vietnam’s livestock industry. According to the Livestock Department, Ministry of Agriculture and Rural Development, Vietnam imported 2432 tonnes of pork and 68,100 tonnes of chicken in the first half of this year, a year-on-year increase of 47% and 54.5%, respectively. Imports saw a surge after the ministry permitted 106 eligible firms to import all types of meat in mid-May. Some 100 exporters from the EU have been granted certificates to export meat to Vietnam.
|South Korea reports 110 H5N8 outbreaks |
[31 July 2015] South Korea this week reported 110 outbreaks of H5N8 avian flu affecting more than 3 million poultry, with some events dating back to last fall, according to a report posted by the World Organization for Animal Health (OIE). The outbreaks involved ducks and chickens in the western and southern parts of the country. Only 236 bird deaths were reported across all the outbreaks, and some involved no H5N8 cases, but all involved positive tests. Dates of outbreak onset range from September 2014 to June 2015. South Korea had previously reported 52 H5N8 outbreaks in the country last fall through early March.
Sneak preview of Asian Pork Magazine, August 2015
[31 July 2015]
Quickgrow Genetics aims for more productive breeders
The Philippines hosts some leading global pig genetics companies and well-respected local breeding companies. Yet for many small and medium size raisers, access to quality pigs remains an obstacle. One rising genetics company in Northern Philippines has taken the task to hand, writes ISA Q TAN, and is now building up its operations to bring quality pigs to those who most need them.
Fine Foods leads with high quality pork in India
A new entrant in India’s infant pork sector, Fine Foods International is determined to provide high quality products to consumers in northern India. While it only started pig farming in Haryana state last year, the company has received good response from consumers who prefer hygienic pork, writes SM ARUN.
VPF Group runs healthy farm for quality pork
VPF Group, an integrated pig farming and processing operator based in Chiang Mai, Thailand, adopts the concept of ‘healthy farm, happy pig’ to ensure the quality pigmeat they produce. With efficient farm management, meticulous breed line selection and competent disease control and vaccinating practices, the company thrives on wholesome pig health and profitable performance, thus benefitting expansion plans for its downstream business, writes NITSARA THONGRUNG.
Biotransformation of deoxynivalenol to a non-toxic metabolite
SHU GUAN, SIMONE SCHAUMBERGER, and CHRISTINA SCHWAB report a kinetic study that confirmed by biomarker the efficacy of Biomin BBSH 797 (the microorganism component of Mycofix that biotransforms trichothecenes) to detoxify Deoxynivalenol (DON) to the non-toxic metabolite de-epoxy-deoxynivalenol (DOM-1) in the gastrointestinal tract of pigs. DON and DOM-1, measured in serum of pigs, are important biomarkers to demonstrate the efficacy of DON-deactivating products in vivo.
Feeding sows to get more piglets born alive
Chromium (Cr) supplementation to sow diets has been shown to improve the performance of sows and their progeny. CHINNADURAI SUGUMAR, BRIAN KREMER and EDWIN CHOW report on a trial, where supplementation with chromium propionate in gestation and lactation feeds resulted in improved sow and piglet performance in two consecutive reproductive cycles. The sows produced and weaned more piglets - key performance criteria for commercial swine herds.
MCFA as an alternative to antibiotic growth promotants
The use of antibiotics as growth promotants (AGP) was not only banned in the EU in 2006, but also the use of therapeutic antibiotics is more and more under pressure. An expansion of this policy can undoubtedly be expected in Asia sooner rather than later. With a continuous focus on improving sow fertility and better growth rate and feed conversion in piglets and fattening pigs, pressure on gut health becomes immense. Several non-antibiotic, plant-derived antimicrobial substances have been proposed as promising alternatives for AGP. WOUTER NAEYAERT reviews the use of medium chain fatty acids (MCFA) as potential alternatives to AGP.
|QL Indonesia ventures into value-added eggs |
[30 July 2015] QL Group Indonesia recently launched Omega eggs that contain Omega 3 plus DHA and vitamin E. “This premium egg is special because the chickens are fed with special feed containing fish oil imported from Peru. The fish oil is made of quality salmon,” Cecep Muhammad Wahyudin, Director, told Asian Agribiz. “We want to provide Omega eggs at an affordable price. We think that the eggs don’t have to be expensive so it can be affordable for all consumer levels,” said Mr Cecep. QL has partnered with a major minimarket chain Indomaret to sell the Omega eggs.
|VRK to commission poultry biogas facility|
[30 July 2015] Pune based VRK Nutritional Solutions in India is set to commission its poultry biogas facility by the end of 2015. Director of the company Dr VR Kulkarni told Asian Agribiz that the project also includes production of 20 tonnes/day of bio fertiliser apart from the main 1000kg/day of compressed bio methane production. “We are not going to stop with producing electricity but will also go into purifying and converting raw biogas to 92% bio methane and then bottling it in CNG cylinders,” he said. According to him, even at the trial stage they had a surplus of electricity and now they are in talks with state electricity board to add the surplus power to the grid.
|CJ Vietnam opens USD20m feedmill|
[30 July 2015] CJ Vina Agri recently celebrated the opening of its fourth feedmill in Dau Giay industrial park (Dong Nai province). The plant worth USD 20million occupies an area of 8.3ha and has a capacity of 390,000 tonnes/year. The company is set to build the fifth plant in the North, the sixth plant in the central region and the seventh plant in the Mekong Delta.
|S. Khonkaen starts operation at new seafood processing line|
[30 July 2015] Thailand's S. Khonkean Foods Plc commenced operation at its new seafood processing line that will focus on fish balls and cephalopod balls for the domestic and export markets, said CEO Charoen Rujirasopon. S. Khonkaen invested around USD 10.03 million to increase production capacity to 15,000 tonnes per year from 9000 tonnes earlier. The new processing line is equipped with the most advance machines including fish head cutter and fish meat separator that can help reduce labour by 30%, Mr Charoen added. S. Khoankaen is also preparing for a test run at its new halal meat snack factory that will produce fish and chicken meat snacks for domestic sales and export to countries in the Middle East and Asean.
|Premium Japanese meat to debut in Vietnam|
[30 July 2015] Japanese Hida beef, slaughtered from the famous black-haired cattle raised in the Japanese prefecture of Gifu, will debut in Vietnam in early August. The specialty product won the top prize at the Kinki Tokai Hokuriku Beef Cattle Exhibition in Japan fetching around USD 145/kg in its home market, the region’s Governor, Furuta Hazime, told Tuoi Tre. This makes Hida beef costlier than Kobe beef. Regular beef is retails at USD 12/kg at most in Vietnam. Hida beef will be distributed to luxury Japanese restaurants in Vietnam to serve the growing number of middle-class consumers in the country, Mr Hazime said. Hida-gyu is known as one of the finest varieties of beef, with quality marbling, lustre, colour, texture and smell.
|Thailand’s CPF to buy Russian poultry integrator |
[29 July 2015] Thailand’s Charoen Pokphand Foods Plc (CPF) will proceed with plans to buy a leading poultry integrator in Russia for USF 680 million said CPF’s President and CEO Adrirek Sripratak said. The shares will be acquired from Agro-Invest Brinky BV in CJSC Poultry Production Severnaya (S) and CJSC Poultry Parent Stock Production Woyskovitsy (W). CPF’s Board of Directors approved the acquisition of 80% of the Russian poultry integrator’s shares by CPF Netherlands B.V. with the remaining 20% to be secured in 2018. “This investment will foster CPF’s potential and opportunity and support our food business in the Russian market where meat consumption rate is high,” said Mr Adirek. CPF will use the Russian poultry company as a production base for domestic sales and exports to markets in nearby regions.
|Cambodia ready for first slaughterhouse |
[29 July 2015] Cambodia’s first slaughterhouse in Preah Sihanouk province and built by SLN Meat Supply, is expected to be fully operational by year end. Initially, SLN is aiming to process about 1700 head of Australian cattle per day, with 1000 destined for Vietnam and the remainder for local consumption. The firm is also negotiating with Chinese buyers and hopes that it will be able to export 2000 head of cattle per day as soon as Chinese safety standards have been met. But it is Vietnam’s demand for Australian beef that will give SLN the kick-start it needs. Cambodian beef imports were valued at about USD 722,000 last year, according to government figures.
|Sierad Produce books losses in Q1|
[29 July 2015] Indonesia’s Sierad Produce has reported a loss of around USD 8.7 million in Q1 2015, compared to a recorded a profit of USD 116,000 in the same period last year. Income for the period decreased by 26.21% from USD 49 million. Poultry and processed food sales contributed around USD 29.5 million and USD 6.5 million, respectively to the income. Eko Putro Sandjojo, Vice President Director, pointed production cost increase and low chicken price as reasons for the loss. Mr Eko revealed that this year the company plans to venture into beef processing by acquiring PT Great Giant Livestock.
|Potential of blue LEDs to deactivate bacteria|
[29 July 2015] A team of scientists from the National University of Singapore (NUS) has found that blue light emitting diodes (LEDs) have strong antibacterial effect on major foodborne pathogens, and are most effective when in temperatures of between 4-15°C, and mildly acidic conditions of around pH 4.5. “Acidic foods such as fresh-cut fruits and ready-to-eat meat can be preserved under blue LEDs in combination with chilling temperatures without requiring further chemical treatments that are commonly needed for food preservation,” said a press release from the National University of Singapore. “Taken together, our studies point to a potential for preserving acidic foods in combination with chilling temperatures without chemical treatments. This could meet the increasing demand for natural or minimally-processed foods without relying on chemicals such as acidulants and artificial preservatives to preserve food products,” said Asst Prof Yuk Hyun-Gyun, from the Food Science and Technology Program.
|Gina Rinehart increases ag exposure to Asia|
[29 July 2015] Australia’s richest person, Gina Rinehart, has beaten fellow billionaires Andrew Forrest and Kerry Stokes in a race to buy Kimberley cattle station Fossil Downs in a deal that increases her exposure to Asia’s growing demand for Australian beef. Mrs Rinehart paid about USD 30 million to buy the 400,000ha property under an agreement finalised just days after Australia signed a historic deal for live cattle exports to China. She was able to convince Fossil Downs’s long-term owners, John and Annette Henwood, to sell her the station on the basis she would maintain it as a major export operation. Fossil Downsboasts 15,000 head of cattle.
|Austfeed Vietnam to break ground for new feedmill|
[28 July 2015] Austfeed Vietnam Corporation, based in the northern province of Hung Yen in Vietnam, will start work on a new feedmill in the Nghe An province in the third quarter of this year. The feedmill, which will be commissioned in July 2016, will cost the company USD 15 million and will have a capacity of 300,000 tonnes a year, Dao Manh Luong, Austfeed’s CEO, told Asian Agribiz after signing an investment licence for the construction. The new plant will produce swine and poultry feeds, especially for its contract farms, and sow and grower-finisher farms in the area. “It will be our fourth feedmill. We hope to build a fifth mill in the Mekong region at the end of this year,” he said.
|India’s seafood exports cross USD 5.5 billion|
[28 July 2015] Seafood exports from India has crossed USD 5.5 billion in 2014-15 despite a sharp fall in shrimp prices in the last quarter (January-March 2015), Marine Products Export Development Authority (MPEDA) said. Leena Nair, Chairman of the seafood export promotion agency said that volume of exports crossed record one million tonnes for the first time during the 2014-15 fiscal year. “Compared to 2013-14, seafood exports recorded a growth of 6.86 % in volume and 10.05 % in value,” she said. Frozen shrimp continued to be the major export item in terms of quantity and value accounting for 34.01% in quantity and 67.19% in earnings, data from MPEDA revealed.
|Sierad Produce to build more commercial farms|
[28 July 2015] Indonesian poultry integrator Sierad Produce plans to expand its commercial broiler farms this year. FX Awi Tantra, Corporate Secretary and Finance Director, said the company will build more commercial farms in West Java with closed-house system. “The commercial farms will support our growing food business. With the modern farms we can control the quality of our food products,” he said. The company has invested around USD 2 million for this.
Sneak preview of Asian Poultry Magazine, August 2015
[28 July 2015]
Althea Farm tips the scale with good management
Raising broilers in the Philippines is regularly difficult, but raising poor quality chicks presents even more challenges. However, for one farm in Compostela Valley, good management turns what would have been rejects into marketable birds, reports ISA Q TAN.
Jadeed bids for larger share in DOC market
Jadeed Group of Companies in Pakistan started raising Ross GP from Aviagen in 2013. After introducing this DOC to local poultry operators, it clinched a good number of transactions. Thanks to good performance at its GP farm, the company’s Chief Executive Mian JM Javaid told NITSARA THONGRUNG that he believes his company will be able to grow its market share for DOC, PS & broilers
Menara’s win-win with quail breeding
By cooperating with groups of quail farmers, Mentari Nusantara (Menara) Feedmill successfully grew its feed business by 50% in the last two years. The company told ARIEF FACHRUDIN that it also ventured into quail breeding to provide farmers with quality DOQ in addition to quality feeds.
Growing potential for probiotics in poultry feed
Antibiotics, once a boon for the livestock industry, is now being seen as a blight even to producers. The search is on for viable alternatives. According to Principal Scientist and Director of Singapore-based Otemchi Biotechnologies Pte Ltd, Chia Tet Fatt, probiotics is the future but farmers must be able to look beyond costs and understand the benefits of using the product on their chicken, RACHAEL PHILIP writes
Comparing organic selenium sources
There is a growing interest in using selenium (Se) based products as an antioxidant, not only for breeding stock, but also for commercial animals. A wide range of products is available. The question is how to choose the most efficient one? Chemical analysis does not appear sufficient to appreciate the bioavailability of the large range of dietary sources of selenium available for animal feeding. Tissue Se deposition is a reliable criteria to evaluate the bio-efficacy of various Se sources write PIERRE-ANDRE GERAERT, MICKAËL BRIENS, YVES MERCIER and Y.G. LIU.
Recent advances in the production & management of ducks
In the first of a four-part article DAVID J FARRELL* reviews recommendations for the production and management of meat and egg hybrid domestic ducks kept mainly under intensive management systems.
Impact of heat stress on the amino acid needs of broilers – part 2
The nutritional strategies often considered to overcome the adverse effects of heat stress are to reduce dietary intact protein levels to minimize the metabolic heat production or to increase dietary amino acid levels to account for decreasing feed intake. Unfortunately, previous research does not clearly indicate which of these strategies is correct. In the second of this two-part article, GIRISH CHANNARAYAPATNA and ROB PAYNE* write that recent research indicates that the amino acid needs of broilers raised in heat-stress situations are likely higher than for those reared at thermal neutral temperatures.
Dietary fibre: pros and cons in poultry feeding and nutrition – part 1
In the first of this two-part article GONZALO MATEOS* writes that traditionally dietary fibre has been considered as a diluent and an anti-nutritional factor. Recent research, however, indicates that this may not be the case. The inclusion of moderate levels of insoluble fibre improves gastrointestinal function.
|Focused technical meetings for broiler and layer producers|
[27 July 2015] The Layer Feed Quality Conference is an off shoot of Asian Agribiz's Poultry Feed Quality Conference, a broiler focused technical meeting that has been growing in size and stature over the last six years and now attracts more than 300 nutritionists from throughout Asia. The 2015 Poultry Feed Quality Conference will be held in Bangkok from 3-4 September. Both conferences feature strong science-based technical programs with carefully selected papers containing relevant trial data and practical solutions for Asian broiler and layer producers. More details here and here or contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org).
|USDA's new H5N2 vaccine works well |
[27 July 2015] A vaccine that the US Department of Agriculture (USDA) developed for H5N2 avian influenza has tested "100% effective" in chickens and is now being tested in turkeys, according to the Associated Press (AP). If the vaccine also works well in turkeys, the USDA plans to license it for production, Agriculture Secretary Tom Vilsack told the House Agriculture Committee. The H5N2 virus led to the destruction of 48 million poultry during the spring and early summer, mostly in Iowa and Minnesota. No more outbreaks have been reported since mid-June, but experts are concerned that the virus may return in the fall, when migratory birds head south.
|Fairfax India acquires National Collateral in USD 126 million deal|
[27 July 2015] Fairfax India Holdings Corporation, an investment holding company traded on Canada’s Toronto Stock Exchange has agreed to acquire 74% of National Collateral Management Services Limited, a leading private sector agricultural commodities storage company in India for USD 126 million. According to a Fairfax India press release, the transaction is expected to be completed later in 2015. National Collateral has operated for over 10 years and is now preparing to expand to take advantage of the significant market potential in India’s underdeveloped agricultural storage industry. “National Collateral will continue to operate independently under the leadership of its present CEO Sanjay Kaul to build on its position as India’s largest private sector agricultural warehouse and grain collateral storage company,” Chairman of Fairfax India Prem Watsa said.
|Feed additives market in Vietnam forecast CAGR 4.7% |
[27 July 2015] The Vietnam animal feed additives market (antibiotics, vitamins, antioxidants, amino acids, enzymes and feed acidifiers, for poultry, pigs and cattle) was valued at USD 112.4 million in 2014 (up 4.1% in 2013), and is expected to reach USD 160.5 million by 2022 growing at a CAGR of 4.7% from 2015 to 2022, according to Grand View Research. Increasing per capita meat consumption is expected to be a major factor driving the market over the next seven years. Antibiotics emerged as the leading product segment and accounted for over 36% of the total market revenue in 2014.
|KFC partners with Indian Railways |
[27 July 2015] KFC has partnered with Indian Railways to offer meals on board to people travelling in trains under the e-catering service. The facility is now available on 12 trains passing through New Delhi railway station and will be expanded to Vishakhapatnam, Hyderabad and Bangalore railway stations over the next 10 days, KFC said in a statement. Consumers will have to visit Indian Railways website or call a toll-free number to place their order. “We think this initiative gives us a great opportunity to bring the taste and quality of KFC to our fans,” KFC India Chief Marketing Officer Dhruv Kaul said.
|Layers - how to build a sustainable flock|
[24 July 2015] The inaugural Layer Feed Quality Conference by Asian Agribiz will address 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. More details here or contact Omthong Tjoa or Sutasinee Lake (email@example.com).
|US raises dispute over Indonesia’s pork imports|
[24 July 2015] The US is raising a dispute with the World Trade Organisation (WTO) against Indonesia for violating agreements on pork imports. Although Indonesia is a predominantly Muslim country, there is significant potential demand for pork products in the Horeca industry, as well as among minority populations, said The US National Pork Producers Council (NPPC). In the NPPC’s view, Indonesia’s import permit system violates numerous provisions of the WTO Agreement on Import Licensing Procedures. Indonesia currently allows imports from only five US slaughter and processing plants, limiting the supply of US pork to the Indonesian market. According to the USDA Foreign Agricultural Service office in Jakarta, the Indonesian government is making “little effort” to approve additional plants.
|Sufi Group ventures into further processing|
[24 July 2015] Pakistan’s Sufi Group, a top producer of fast moving consumer goods in the country, has started to produce a variety of further processed poultry products under the ‘Simply Sufi’ brand. The focus of the group has now turned to the processing of broilers both as input for its further processing plant and to provide customers with the best possible natural products. Hamza Foods, a wholly owned Sufi company, has chosen Marel Stork Poultry Processing’s technology to enable high quality processing. The initial capacity of the new plant near Lahore will be 3000 birds/hour and this can be doubled.
|Vietnam's pig production up in first half|
[24 July 2015] According to the General Statistics Office, Vietnam currently has about 27.2 million pigs on farms (up 2.9% from last year). Production reached 2.05 million tonnes of pork in the first 6 months of 2015, an increase of 3.9% compared to the same period in 2014. The Ministry of Agriculture forecasts an increase in output this year of 2.4% to 3.37 million tonnes.
|SNC to invest in West Sumatera|
[24 July 2015] Indonesia has opened around 2000ha of agriculture land in West Pasaman, West Sumatera to attract more investors to the agro industry. The Ministry of Agriculture said Australia-based SNC has shown interest to invest in an integrated cattle operation starting from breeding to processing in the region. The investment is estimated to reach around USD 2.2 billion, as quoted by Investor Daily. Erinaldi, Head of the Animal Husbandry Agency in the province, said the local government has also improved infrastructure and transportation. Yusni Emilia Harahap from the Directorate General of Agro Processing and Marketing of the Ministry of Agriculture added that Japan has also shown interest to invest in integrated cattle operations in West Pasaman.
|Malaysia’s CAB Cakaran hopes for double digit growth|
[23 July 2015] CAB Cakaran Corp Bhd expects the financial performance of its nine-month period ended June 30 to improve by a double-digit percentage over the previous year’s corresponding period. Group Managing Director Chris Chuah said its Tong Huat Poultry Processing Factory in Singapore had started to contribute positively to the company’s bottom-line and revenue in the last four months, reported the StarBiz. He said the Singapore operations is expected to generate about 10% of the company’s revenue for this financial year ending in September. “The stability in poultry prices has also contributed to the performance of the group in the nine months, which has boosted sales,” Mr Chuah said. The company has also completed the acquisition of the 68ha broiler farm in Johor. It produces 1 million birds per month for the Singapore and Johor markets.
|Sojitz starts cold chain logistics business in Myanmar|
[23 July 2015] Sojitz Corp and Sojitz Logistics Corp have established a tie up with Premium Distribution Co, Ltd, a foods and consumer goods wholesaler. Called Premium Sojitz Logistics the deal will provide cold-chain logistics services from three temperature logistics warehouses to be built in Yangon City. Premium Distribution handles food wholesale for City Mart Group. The group has 20 supermarkets, seven hypermarkets, and 45 convenience stores in the country, as well as food and consumer goods wholesale businesses in major Myanmar cities. Sojitz Corp, in a press release, said demand for refrigerated and frozen food products in Myanmar is on the rise.
|Pioneerindo to expand with satellite CFC outlets|
[23 July 2015] To grow its business this year, Indonesia's Pioneerindo Gourmet International, the operator of California Fried Chicken, will establish satellite outlets that are smaller than its regular outlets. Kristanto Cendra, Finance Director, said with the new concept can save investment costs and be more productive. “The outlets will only sell ready-to-eat products. While the processing and cooking will be done in our central kitchen. Each satellite outlet will need two operators only,” he said, adding that the investment for one satellite outlet is only around USD 11,200. Mr Kristanto revealed that by end of this year the company plans to open 50 new satellite CFC outlets in Jabodetabek.
|Minh Phu primed for investment|
[23 July 2015] Minh Phu Seafood, Vietnam’s largest shrimp exporter, has reported its plan to the Ministry of Agriculture and Rural Development (MARD) for a USD467.3 million project to raise shrimp and African carp nationwide, according to Vietnam Breaking News. This project will be deployed in an integrated production chain, which involves the participation of millions of farmers. The project plans to produce 140,000 tonnes of shrimp and 50,000 tonnes of African carp by 2020, when the total revenue is projected to hit USD 2.5 billion USD, and 200,000 tonnes of shrimp and 100,000 tonnes of African carp by 2025, when the total revenue is expected to reach USD3.5 billion. The project will include the construction of sub-projects, including a research institute, a shrimp breeding centre, animal feed and medicine factories, aquatic product processing factories, a logistics and distribution company, and market expansion.
|Ban on poultry products from Kerala state lifted|
[23 July 2015] South Indian state of Tamil Nadu has lifted the ban on entry of poultry products from neighbouring Kerala state following a notification from the Central government. The ban was imposed in November 2014 after avian influenza was reported among ducks. Tamil Nadu State Animal Husbandry official Dr Vishnugurubaran told Asian Agribiz that the Central government has certified that Kerala had brought the disease under control. “However, importers of poultry products from Kerala must still produce a certificate from animal husbandry department certifying that the products are free of pathogenic influenza,” he added.
|Countries ban imports from the UK |
[23 July 2015] Singapore and Japan have imposed restrictions on the importation of poultry and poultry products from the UK after an outbreak of H7N7 Highly Pathogenic Avian Influenza (HPAI) was reported in a poultry farm in Lancashire. Singapore’s Agrifood and Veterinary Authority said heat processed poultry products, which meet the requirements for heat inactivation of AI virus, will not be affected. Hong Kong’s Centre for Food Safety (CFS), has also imposed a ban. A CFS spokesman said about 18,000 tonnes of chilled and frozen poultry meat and about 7.2 million poultry eggs were imported into Hong Kong from Britain last year.
Preview of Asian Agribiz 2015 Layer Feed Quality Conference
Jakarta, Indonesia, September 7, 2015
[22 July 2015]
Building on the success of the annual Poultry Feed Quality Conference, Asian Agribiz will launch the inaugural Layer Feed Quality Conference this September. With the theme “Building A Sustainable Flock” the Layer Feed Quality Conference will offer a dedicated focus on layer nutrition, management and feed production and will feature 11 presentations from regionally and internationally renowned speakers. More details and registration form can be viewed here or contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org). Early bird and group registrations close August 4.
From egg to plate – opportunities for enriched eggs
Han Zhaopeng, Vice Director r&d for Beijing DQY Agricultural Technology Co Ltd, China, the largest egg producer in Asia, will present the conference keynote paper and discuss marketing innovations in the Chinese egg industry.
Nutrient retention and nutrient waste for layers
Associate Professor Rosalina Angel, University of Maryland, will focus on improving nutrient retention and reducing nutrient waste in laying hens through the use of feed additives, feed nutrient changes, and proper selection of ingredients.
Fibre in layer diets – choosing the right source
The use of crude fibre in layer feed formulations is controversial. Breeding companies consider crude fibre an essential component in layer feed, while nutritionists often try to avoid the use of fibre, as most sources do not deliver energy for monogastrics. Ike Ng, JSR will present that insoluble, non-fermentable fibres should be the first choice fibre source for poultry as there are lots of positive effects on health and performance, such as an improved litter quality and reduced incidence of feather pecking as well as a bigger gizzard and better growth rate in pullets.
Split feeding systems for more sustainable egg production
The requirements of laying hens for amino acids, energy, calcium and phosphorous vary during the day, depending on the hen’s physiological needs for the formation of the albumen and shell components of the egg. Felipe Sanchez, Application & Solution Specialist Poultry Technology Transfer, Nutreco will consider how split feeding with morning and afternoon diets better meets the bird’s physiological requirements, improving egg shell quality, and is a more sustainable feeding system because nitrogen and phosphorous excretion are reduced.
Developments in gut health
Santiago Ramirez, Consultant, Fractal Farming will review practical strategies for improving gut health at farm level, using husbandry practices such as hygiene, ventilation and ammonia control. He will also consider feeding strategies such as enzymes, vitamins and mineral nutrition and other feed additives and will focus on the effects of gizzard development.
|Imported sausages threaten Indonesian meat processors|
[22 July 2015] Indonesian meat processors are worried about the import surge of Malaysian processed meat over the last three years. Ishana Mahisa, Chairman of the National Meat Processors Association, said that in the long run this condition could endanger the survival of the domestic industry. Mr Ishana said the average price of sausages imported from Malaysia is USD 2.29/kg while the price of locally made sausages of the same quality is around USD 4.50/kg. According to Indonesia’s Statistics Agency data, the import value of processed meat with the harmonised system code of 1601 (sausages and other processed meat) has increased by 18 times from 2012’s USD 305,612 to USD 5.6 million in 2014. By volume, meanwhile, the imports in 2012 were 244.63 tonnes, and then jumped to 2420 tonnes in 2014. Of the total volume in 2014, around 2000 tonnes were from Malaysia.
|China to boost global pork trade in 2H|
[22 July 2015] Things are looking up for the global pork industry in the second half of 2015, with growth in China’s pork imports expected to boost global trade towards the end of Q3 and into Q4, Rabobank said in its latest Pork Quarterly Report. China’s pork supply has been tight due to its current low sow inventory, but rising piglet and hog prices indicates that the supply/demand situation in the country is rapidly changing, “which supports rising imports into Q4” and possible into 2016. The report also noted that prices are on the rise in almost all major exporting and importing countries as the supply and demand balance improve across the globe. According to Rabobank animal protein analyst Albert Vernooij, “the main questions are when Chinese import growth will start, how much volume growth there will be and what the support for pork prices will be across the globe.”
|USDA projects higher poultry production in Asia |
[22 July 2015] Based on USDA’s 2015 long-term projections to 2024, poultry production in China is expected to increase to 16,925 kmt (‘000 tonnes) at a compound annual growth rate (CAGR) of 3.0%. Poultry production projections for 2024 and CAGRs for other Asian countries are; India 6,818 kmt (6.4%), Indonesia 1,961 kmt (2.1%), Japan 1,456 kmt (0.8%), Malaysia 1,772 kmt (2.2%), Pakistan 1,492 kmt (11.3%), Philippines 1,189 kmt (3.0%), South Korea 1,772 kmt (2.7%), Taiwan 468 kmt (-0.2%), Thailand 2,198 kmt (3.3%) and Vietnam 1,091 kmt (3.4%). Production for all countries and regions modelled is expected to increase to 125,363 kmt (2.3%) to 2024.
|QL Indonesia to double production by 2020|
[21 July 2015] QL Group Indonesia targets to double production by 2020 for all of its business lines to meet consumption increase of animal protein in the country. Cecep Muhammad Wahyudin, Director, told Asian Agribiz that of the double production, 80% is targeted for sale in modern markets. The company targets 80% of its broiler production to be absorbed for internal use for value added products. “To realise this we will implement an integrated business model and focus on quality improvement and branding,” said Mr Cecep. 'From 2010 until now QL has invested around USD 120 million in Indonesia. By 2020 our total investment could reach USD 300 million.” The group operates through two subsidiaries. QL Agrofood is involved in layer farming and feed production, while QL Trimitra operates an integrated broiler business.
|Philippines looks to Efta for food products|
[21 July 2015] The Philippines is seeking to export processed food and fishery products to member countries of the European Free Trade Association (Efta), said Philippine Agriculture Undersecretary Segfredo Serrano. He said the Philippines began free trade negotiations with Efta, which includes Iceland, Norway, Liechtenstein and Switzerland, in March this year and negotiations will continue in September and November, as they hope to finalise an agreement prior to the end of the current administration’s term in 2016.
|New challenges require livestock overhaul in Vietnam|
[21 July 2015] Vietnam’s livestock sector must restructure to produce competitive, high-quality products for the global market, said the Minister of Agriculture and Rural Development, Cao Duc Phat, at a meeting of Government officials and experts. Although meat production has increased by about 4% since 2013, many obstacles remain unresolved. The biggest are productivity and cost of meat which is higher than other countries reported Vietnamnews.vn. “We have the second largest number of farm ducks in the world and the fifth biggest number of pigs, yet productivity is nowhere close to the international average,” Minister Phat said. "When trade agreements take effect and tariffs are reduced imported meat will flood our market. The husbandry sector will have to be competitive in quality and price,” said Chairman of the Vietnam Animal Feed Association, Le Ba Lich added.
|Soybean meal export from India at historic low|
[21 July 2015] Soybean meal exports from India was at a historic low this June at just 2098 tonnes the Solvent Extractors' Association of India said in a member statement made available to Asian Agribiz. According to export data, soybean meal exports stood at 18,017 tonnes in April and 14,046 tonnes in May before sliding. “Adding to the woes of the industry, domestic demand for oilmeals has also reduced,” Dr BV Mehta, Executive Director of the association said in the statement. Overall export of oilmeals in June was reported at 137,571 tonnes or 34% lower than June 2014.
|Myanmar approves Brazilian poultry and beef|
[21 July 2015] The Myanmar government has approved imports of Brazilian poultry and beef, Brazil’s Minister for Agriculture, Livestock and Supply Katia Abreu announced recently. The industry expects poultry exports of 12,000-15,000 tonnes/year valued at USD 36-45 million. For cattle, the estimate is 10,000 tonnes/year, valued at USD 42 million. Brazil will be the first country to export beef to the Southeast Asian nation. When the new market has opened, companies interested in exporting to Myanmar may submit a request for qualification. “Myanmar government technicians were presented with our Agricultural Management Platform. They know the models of international certificates,” said Ms Abreu.
|India's aqua feed demand to reach 7mt|
[21 July 2015] India’s aquaculture feed demand is to touch 7 million tonnes by 2017-18 according to a report by Yes Bank. India has around 26 aqua feedmills with a total production capacity of 1.25 million tonnes. But in 2013-14 only about 43.4% was utilised. The feed demand only from shrimp and fresh water shrimp is around 1 million tonnes. India currently has 13 feedmills that can produce modern feed for the shrimp sector with a production capacity of 1.33 million tonnes. On fish feed, the current installed capacity is 1.55 million tonnes. The total feed production for shrimp and fish stands at 572,000 tonnes and 684,000 tonnes respectively, the report added.
|Science, trial data and solutions focus of conference|
[20 July 2015] The Poultry Feed Quality Conference organised annually by Asian Agribiz has ‘Science, trial data, solutions’ as its banner. The program for this year's event to be held in Bangkok, Thailand on September 3 and 4 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 here and here or contact Omthong Tjoa or Sutasinee Lake (email@example.com).
|Drought, low fish supply boost egg price |
[20 July 2015] Egg prices in Thailand have increased slightly boosted by the severe drought and growing consumption as consumers are switching to egg as a substitute amid tighter seafood supply, President of the Egg Farmers Association Annop Akaranithiyanont said. Demand for eggs has increased as many fishing boats are not able to go out due to a new regulation. Farm gate egg price has risen by THB 0.10 to THB 2.70 per egg [USD 0.08]. However, the price is still lower than production cost of THB 3/egg [USD 0.09]. “Farmers have been generating losses for 10 consecutive months already,” he said. The Department of Livestock at the Ministry of Agriculture and Cooperatives hopes to increase consumption from 200 eggs per person per year in 2012 to 300 by 2018.
|Jember government inaugurates new chicken processing plant|
[20 July 2015] The government of Indonesia’s Jember regency in East Java recently inaugurated a new 1000 birds/hour chicken processing plant. According to Sugiarto, Secretary of the regency government, the processing plant complex, which cost around USD 165,000, is equipped with a 2-tonne cold storage facility and waste treatment facility. Mahfud Afandi, Head of Livestock Agency in the regency, said the plant will be operated by a professional private party, and “the plant will support chicken producers in the region to have better quality and hygiene processing for their chickens.”
|KFC China reports lower Q2 sales|
[20 July 2015] KFC’s problems in China continued in the second quarter of 2015, with same-store restaurant sales down 12%, according to parent company Yum Brands. KFC sales have suffered in China since July 2014, when one of its former suppliers was accused of improper food handling practices. The company’s overall China Division sales, which include Pizza Hut and Little Sheep restaurants, were down only 4% due to added sales from newly opened units. The company said it was encouraged that operating margins remained relatively high at 14.6%, and that it still expected substantial same-store sales and profit growth in the second half of the year.
|Apfindo looks for local cattle|
[20 July 2015] With the limited cattle import quota (only 50,000 heads) for Q3 released by Indonesia’s Ministry of Trade, the Indonesian Feedlotters Association (Apfindo) is now looking for local cattle. Chairman Jhony Liano said: “At the moment our feedlot capacity is around 350,000 heads for around 2-3 months. It’s not easy to fulfil demand as supply of local cattle is also limited and scattered in many rural regions. So the cost to collect the cattle and then transport them to Jakarta is high.” Based on Apfindo’s calculations, this year Indonesia needs around 3.4 million cattle, and local supply can only meet around 2.4 million of the total. “We still have to import around 1 million cattle to fill the gap,” said Mr Johny.
|McDonald opts for free-range eggs in New Zealand|
[20 July 2015] McDonalds has announced that its restaurants in New Zealand would switch to free-range eggs by the end of 2016, Quartz of New Zealand reported. The fast food giant serves around 13 million eggs per year in its menus including Egg McMuffins at 164 outlets in the country. Free-range egg in this case will be eggs from cage-free chicken and New Zealand producers can supply this to McDonalds.
|Manipulating prestarter and starter feed|
[16 July 2015] At Asian Agribiz's Poultry Feed Quality Conference in Bangkok this September, Bob Swick, Industry Professor of Poultry Nutrition at the University of New England, Australia, will challenge participants to rethink what can be done to manipulate prestarter/starter feed to make a difference at the end of the grow-out. This year, in addition to the main conference, Asian Agribiz will also stage a satellite, inaugural Layer Feed Quality Conference in Jakarta on 7 September 2015. Click here and here for more details on both conferences or contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org).
|Sneha Farms to commission two new feed plants by 2016|
[16 July 2015] Hyderabad based poultry major Sneha Farms Pvt Ltd in India will commission two new feedmills by 2016, D Varun Reddy, Director of Sneha Farms said. “We are developing two new Greenfield feed projects, one at Rajahmundry in Andhra Pradesh state and the other at Gangawati in Karnataka state, each attracting an investment of around USD 8 million,” he told Asian Agribiz. Both these plants will have an installed capacity of 400 tonnes per day with an option to double its output. According to him, they are yet to finalise the equipment for the new feedmill projects.
|Indonesia slashes cattle import quota to 50k in Q3|
[16 July 2015] Indonesia has issued permits to import 50,000 heads of cattle in the third quarter, a trade official said, less than one-fifth of what was allowed in the previous quarter. Lower purchases by Indonesia could hurt the cattle industry in Australia, the world’s third-largest beef exporter, whose farmers last year supplied around 40% of the beef consumed in Indonesia. “It is based on demand but we are also aware of our local farmers. If we need more, we will add (to the quota),” said Partogi Pangaribuan, Director of the Foreign Trade Ministry. Indonesia initially issued permits to import 250,000 cattle in the second quarter and later issued permits for an additional 29,000 head for the three-month period.
Asian Agribiz dairy update
[16 July 2015]
JD.com invests in Murray Goulburn
Chinese billionaire Richard Liu has invested about USD 15 million on a stake in Australia's Murray Goulburn's (MG) new unit trust or 4.6% of the dairy co-operative's trust, which was listed on the Australian stock exchange recently. This makes Mr Liu's e-commerce company, JD.com, the sixth-biggest holder in the trust behind Chinese food processing and purchasing company China Resources Ng Fung, which owns 4.9%. JD.com launched an online 'Australian Mall' this month. "Launching Australian Mall gave us a tremendous opportunity to engage with local brands and evaluate partnerships and investments," a JD.com spokesman said. The website sells Murray Goulburn's Devondale-branded products at a significant premium.
Sebi clears Prabhat Dairy’s IPO plans
Indian capital markets regulator Securities and Exchange Board of India (Sebi) gave the green light for Prabhat Dairy to raise at least USD 47 million through an initial public offer. The integrated milk and dairy products company plans to raise the amount by issuing fresh shares and offer for sale of up to 14 million equity scrips. Proceeds of the issue would be used for the payment of loans, to meet capital expenditure and for other general corporate purposes. The company had earlier filed a draft of its red herring prospectus with the regulator through its lead merchant banker Edelweiss Financial Services in March.
Friesland Campina opens diary zone
Friesland Campina Vietnam officially held the inauguration ceremony for their sustainable dairy zone in the northern province of Ha Nam on June 24, following nearly one year of construction. The 66 Ha dairy zone in Moc Bac commune, Duy Tien district, is projected to become a typical model dairy zone in Ha Nam province. As planned, eight more dairy farms will be established in this 66-hectare dairy zone through 2017. Each farm will include a dairy herd of 50 to 80 head and have at least 30 lactating cows. According to the scope of the project, it is expected that by December, 2018 the specialised dairy zone will be made up of 50 dairy farms and produce at least 7,000 tonnes of fresh milk per year.
Prabhat Dairy creates cheese, yoghurt production lines
India’s integrated milk and dairy products company Prabhat Dairy has set up new lines of production for value-added products such as cheese, cottage cheese and yogurt at its Shrirampur facility in Maharashtra. The plant is expected to commence commercial production of these products next year, according to a press release by the company. The dairy major has a processing capacity of 1.5 million litre/day. The new unit at Shrirampur has automated production facilities. “We intend to continue to invest in increasing our capacity for our existing dairy products and also develop manufacturing capabilities for new products,” Vivek Nirmal, Joint Managing Director of Prabhat Dairy said.
Mobile app for dairy farmers
The National Dairy Development Board in India has launched a mobile app named ‘Pashu Poshan’ that will recommend a balanced diet for cows and buffaloes. “This will help boost dairy farmers’ income by raising milk yield and cutting feed cost,” Union Agriculture Minister Radha Mohan Singh said after the launch. The application will be available on both web and android platforms. To use the application, farmers have to provide a complete animal profile such as breed, age, milk production, fat content in milk and current feeding pattern. “Farmers will then get information about balanced rations for their cows and buffaloes,” Mr Singh added.
Orissa dairy to collaborate with Amul
Orissa State Cooperative Milk Producers Federation (OMFED) in India has announced that it is planning to collaborate with Amul to scale up its operations. Bishnupada Sethi, Chairman and Managing Director of Omfed said that Amul has agreed to receive surplus milk from the federation at its plant in Kolkata. “Amul will also help us improve our quality standards and market our products,” he said. Apart from this, Amul will also help Omfed in doubling the ice cream manufacturing capacity at Bhubaneshwar dairy by sharing its expertise. Omfed’s milk procurement from farmers has touched 600,000 litres/day against the 2014-2015 average of 445,000 litres/day.
|QL Group’s new mill in Bekasi in operation|
[15 July 2015] QL Group Indonesia, through its subsidiary QL Agrofood, has put a new feedmill in Bekasi, West Java into operation. The plant has an installed capacity of 20,000 tonnes/month and is equipped with 10 silos with a total capacity of 36,000 tonnes to store corn. “In May we ran test production and field trials for the feed at our own farms. The results were satisfying,” Cecep Muhammad Wahyudin, QL Group Indonesia Director, told Asian Agribiz. “At the moment we still produce for our internal needs that reach around 8000 tonnes/month. But we plan to launch the feeds for commercial purpose in the third quarter of this year,” said Mr Cecep. Around 80% of the total corn required is sourced from farmers in Tasik, Garut and Majalengka in West Java.
|Suguna to grow retail through franchise|
[15 July 2015] South Indian poultry major Suguna Foods Private Limited is looking to expand its retail outlets Suguna Daily Fressh through the franchise model. GB Sundararajan, Managing Director of Suguna Foods said that they will take the store count to 500 in the next three years. Suguna Daily Fressh offers a range of fresh chilled chicken apart from ready to eat chicken products and value added eggs. “We are looking at individual entrepreneurs who are passionate about this business and can invest between USD 6,000-10,000 to start a Suguna Daily Fressh store,” he said.
|Taiwan battles H5N2 again|
[15 July 2015] Taiwan has had three more in a long series of highly pathogenic H5N2 outbreaks that began in January, authorities told the World Organization for Animal Health (OIE) on July 13.The outbreaks were identified at a chicken farm in Changhua county and a turkey farm in Yunlin county, both in the west-central part of the island, and a goose farm in the south-western city of Kaohsiung, the report said. The virus killed 5,527 of 25,640 birds on the three farms, and the rest have been culled to prevent any further spread. The farms have been cleaned and disinfected, and other farms within 3km will be under special surveillance for three months.
|Gorontalo exports 2000t of corn to Philippines|
[15 July 2015] Indonesia’s Gorontalo province has resumed corn exports, sending off a 2000-tonne shipment, this time to the Philippines. Mulyadi Mario, Gorontalo Agricultural Food Crops and Horticulture Office Head said the total export volume of corn has reached 95,967 tonnes as of July this year, or valued at about USD 426 million. “The volume excludes the total inter-island corn consignments worth about USD 32 million. In other words, around USD 73.5 million has been spent purchasing corn from farmers in Gorontalo,” said Mr Mulyadi. The Gorontalo Central Statistics Agency recorded an accumulated export value of 7.5 million tonnes of corn passing through the port in Gorontalo from January to April this year.
|Organic minerals the better option|
[15 July 2015] Studies have shown that over-fortification with inorganic trace minerals is wasteful and poses dangers to the environment, yet they remain the main option for mineral fortification in the animal production industry. At Alltech Philippines’ Rebelation held yesterday in Manila, Steven Elliot, Global Director of Alltech Mineral Management Division, told participants that organic minerals are the viable and better option because they not only lead to better performance at “significantly lower inclusion rates” but also to less heavy metal excretion, less pollution and less risks to the food chain. He enumerated three options that producers can apply organic minerals, including: adding “on top” of current program; partial “displacement”; and total replacement of inorganic trace minerals.
|MPEDA launches mobile app for global shrimp prices|
[15 July 2015] India's Marine Products Export Development Authority (MPEDA), a nodal agency for promotion of marine exports from India has launched a mobile app to help farmers get global prices on shrimp. Information on the global price of shrimp for different grades in major markets like Japan, US and EU will be provided by SMS on a missed call to +918590100800 or +918590200800. The prices are obtained from published data of Infofish (an intergovernmental organisation of the FAO). The agency has also introduced a new facility to provide Certificate of Registration online to seafood exporters.
|Japfa sets up new hatchery in Tangerang|
[14 July 2015] Japfa Comfeed Indonesia is expanding its hatchery network in Indonesia with a new facility in Tangerang, West Java. The new hatchery will be equipped with SmartPro single stage incubators from Pas Reform. A SmartCenter hatchery information system will monitor and record each incubation cycle. “Our adoption of modern technology, together with our focus on biosecurity and food safety, puts Japfa in an excellent position to deliver premium quality broilers that have had an excellent start, with high uniformity throughout the integration to achieve a superior retail product,” said Akhyar, Japfa Head of Hatchery West Area.
|Adhi Farm improves genetics, nutrition|
[14 July 2015] For Indonesia’s Adhi Farm based in Solo, Central Java, sustainable improvement in genetics and nutrition is key to its pig farming business. “We cannot control the market, but we can improve our genetics and nutrition for better production, efficiency and profit,” Alexander Kasim, owner, told Asian Agribiz. At the moment Adhi Farm, which has 200 sows, is running a breeding program to produce GGP of Landrace, Duroc and Yorkshire breeds with frozen semen imported from the US. On nutrition, raw material quality is monitored while knowledge on feed formulation is being upgraded. Every day Adhi Farm mixes around 5 tonnes of feed/day for its 2000 pigs.
|Sneha Farms expands capacity at existing feedmills|
[14 July 2015] Sneha Farms Pvt Ltd in India recently embarked on capacity expansion at two of its feedmills in Jadcherla in Telangana and Hanuman Junction in Andhra Pradesh. “We installed two 600 tonnes per day lines from Switzerland’s Buhler Group at these feedmills,” Mr Varun Reddy, Director of Sneha Farms told Asian Agribiz. Sneha Farms has six feedmills located across Telangana, Andhra Pradesh and Karnataka states in India with a total capacity of 4400 tonnes of poultry feed per day. The company also has dedicated lines at its Hanuman Junction facility to produce 350 tonnes per day of fish feed.
|Food Empire sells 40% stake in frozen seafood processor|
[14 July 2015] Singapore-based Food Empire said its wholly-owned subsidiary, Future Investment Holdings, has disposed of its entire stake in PT Marindo Makmur Usahajaya to PT Kelola Mina Laut and Mohammad Nadjikh, for USD 667,000. “The divestment is because the investment has not managed to fully deliver the value the group had hoped to reap,” the company said. The transaction is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the group for the current financial year, its filing added.
|Japan calls on US to expand beef imports|
[14 July 2015] Japan wants the US to expand imports of Japanese beef under a low-tariff quota to 2000 tonnes from the current level of 200 tonnes annually, as part of the terms for the proposed Trans-Pacific Partnership (TPP), negotiation sources said. Japan exported a total of 1251 tonnes of beef in 2014, of which 153 tonnes was for the US. Tokyo plans to boost total beef exports to 4000 tonnes by 2020. If the TPP comes into being, Japan would incrementally cut its 38.5% tariff on imports of US beef to as low as 9% over 15 years. The higher export volume could help alleviate the negative impact on local farmers and allow them to gain global recognition for wagyu beef.
Preview of Asian Agribiz 2015 Poultry Feed Quality Conference
September 3-4, Bangkok, Thailand
[13 July 2015]
The annual Asian Agribiz Poultry Feed Quality Conference is one of Asia’s leading conferences and scientific forums for poultry and feed industry professionals to update their knowledge and network with industry peers. The two-day conference has a strong technical program, in which internationally renowned speakers from academia and industry will present new, innovative, and regionally relevant research and trial data to provide useable information, with practical results that turns science into solutions and profit. Four chaired discussion forums will offer opportunities for these experts to answer questions and engage in a lively discussion. More details and registration form can be viewed here. Early bird and group registrations close on August 4.
The challenge of producing chickens with AGPs
To help Asian broiler producers address the evolving challenges of growing broilers without AGPs, specialists will share their experiences and offer insights on solutions to the production, disease, welfare and sustainability issues of managing AGP-free flocks. This session features experts - Walter van Hofstraeten, Senior Consultant Poultry Nutrition, Schothorst Feed Research, Netherlands, Heinrich Kleine Klausing, Head of Product Management & Production, EW Nutrition, Germany, Jan van Eys, Principal Global Animal Nutrition Solutions, USA and Pathawit Ngamchapoen, Poultry technical Adviser, Innovet Corporation Thailand
Emerging tools – epigenetics to improve feed nutrient use
The central concept behind the promising exciting new field of study of epigenetics is that environmental forces can affect gene behaviour, either turning genes on or off. Professor Roselina Angel, University of Maryland, will detail research on how neonatal conditioning, resulting in epigenetic changes, shows great promise in terms of improving phosphorus utilisation, with the goal of reducing environmental impact as well as improving production efficiency and costs of production. By applying a moderate phosphorus deficiency in young chicks, the bird is conditioned to utilise phosphorus more efficiently throughout its life. The timing of the conditioning is critical and requires a clear understanding of skeletal growth, the main driver of calcium and phosphorus requirements.
Energy sparing mode of action of ß-mannanase enzyme
Dr Sarah Cervantes-Pahm, Nutrition Adviser Asia Pacific region, Elanco Animal Health will show that by acting on feed, ß-mannanase helps reduce wasteful energy losses caused by the bird’s innate immune response to beta-mannans (ß-galactomannans) found in soybean meal and other feedstuffs. With fewer ß-mannans, there is a lower need for a feed-induced immune response, allowing the bird to direct more energy to growth and performance.
NIR and moisture management in feed
Ivan Ward, Agri-Torque will consider ways moisture is measured in feed and ingredients, challenges with moisture analysis and opportunities during feed manufacturing to monitoring moisture content. Monitoring the moisture levels of ingredients coming into the site is an important step in managing feed quality and limiting microbial growth. Water activity, not water content, determines the lower limit of available water for microbial growth. While temperature and pH can influence whether an organism will grow in a product and the rate of growth, water activity is the most important factor.
Practical application of the latest in-line moisture system in determining feed quality
Yiannis Christodoulou, Agentis Innovations will present practical applications of the latest technology in-line moisture management based on microwave resonator technology which is both highly accurate and also can process up to 3,000 measurements per second, making it particularly well suited for measurements of fast flowing ingredients. The technology now provides the feed industry with a solution that allows for real time moisture measurement and automated process control of moisture for the benefit of feed quality, stock control and process efficiency.
|Robby’s layer farm enjoys benefits of biosecurity|
[13 July 2015] Robby Susanto, a layer farmer in Solo, Central Java, Indonesia, is enjoying the results of good biosecurity. His farm was chosen as a pilot project farm for FAO’s layer biosecurity program. Mr Robby told Asian Agribiz that now the farm has better production, lower mortality rates, lower medication costs and better income. However, he said the main challenge of implementing the biosecurity program lies with labour. “Making it a habit for our farm operators is a challenge. We need to give examples, not just instructions and advice.” Mr Robby now raises around 100,000 birds of Lohmann Brown in open sided houses. Every day he sells around 4-5 tonnes of eggs to middlemen and directly to markets in the region. He also produces herbal eggs for a niche market.
|Vietnam surimi exports to Japan touch USD14m |
[13 July 2015] Some 12.4% of Vietnam’s total surimi output is exported to Japan, its third largest export market, after South Korea and Asean. In the first five months of the year Vietnamese companies earned USD 13.9 million from surimi exported to Japan, up 11.5% year-on-year, reported Vietnam Association of Seafood Exporters and Producers (Vasep). Vietnam has 7% of Japan’s market share. In this market, pollock surimi is higher priced than tropical surimi. However, as the exchange rate of the yen against the dollar fluctuates, pollock surimi will rise in price and Japan is likely to switch to tropical surimi, said Vasep.
|Corn project will boost Bisi International’s performance|
[13 July 2015] The new initiative from Indonesia’s government to boost corn production in 101 regions has is a blessing for Bisi International, a subsidiary of Charoen Pokphand Indonesia involved in seed production. It is predicted that the company may increase its corn seed sales by 30% this year. The company plans to distribute 10,000 tonnes of hybrid corn seed for the project. Jemmy Eka Putra, President Director, said the project has had a positive impact for the company. “We expect our income to reach USD 112 million this year,” he said.
|Conference to tackle feeding strategies that boost immunity|
[10 July 2015] Feeding strategies that can boost the immune system of a broiler will be the lead presentation by Jan van Eys, of US-based consultancy Global Animal Nutrition Solutions, at the 2015 Poultry Feed Quality Conference to be held in Bangkok from 3-4 September. The conference, staged by Asian Agribiz, aims to build industry capacity and update industry professionals on research based developments in the broiler feed sector. More details here or contact Omthong Tjoa or Sutasinee Lake (email@example.com).
|Low rubber prices affect FSI’s pig sales|
[10 July 2015] The low price of rubber in the West Kalimantan market and neighbouring regions has affected the sale of finisher pigs of Indonesia’s Fajar Semesta Indah (FSI). FSI is a subsidiary of integrated livestock company Sujaya Group based in Singkawang, West Kalimantan. Nawa Subianto, FSI Farm Manager, told Asian Agribiz that the live pigs market in the province is unique. “Since the majority of people here are rubber and oil palm farmers, the consumption of pork is heavily affected by the price of the two agri commodities.” According to Dr Nawa, the current (July 3) price of live pigs in the province is around USD 2.25/kg. With this price, the profit margin for the company and pig farmers in the region is small since most of feed raw materials such as corn, pollard and wheat brand have to be imported from other regions. “As a result, we control our sow population at 5000 heads since our main market is still in the province,” Dr Nawa said.
|Shrimp die en masse in Soc Trang|
[10 July 2015] Soc Trang Province in the Mekong Delta continues to be a hot spot for shrimp diseases. Until end June shrimp from nearly 5500ha have seen die offs. This accounts for 29% of the total shrimp breeding area in the province. Disease outbreaks could spread to many areas in the province, an official said. The effects of prolonged hot weather and changes in the environment have led to heavy losses. According to a report from a veterinary station, 70% of shrimp in farms were affected by liver disease and 20% by environmental changes, while the remaining died of other causes. The province will implement disease prevention measures, especially in localities that have been seriously affected.
|North Sulawesi ships tuna to the Netherland|
[10 July 2015] Indonesia’s North Sulawesi exported 8.9 tonnes of frozen & canned fish, mainly tuna, to the Netherlands in late June, according to T Hasudungan Siregar, Head of Foreign Trade Department of Industries in the province. The value was around USD 64,343. Mr Siregar said demand for frozen tuna from the Netherlands is quite high. Besides, the country is also interested to import frozen skipjack. “Looking at the export potential, we will support fish processors and exporters to develop their business and venture into value added products,” Mr Siregar added.
|Volac, Wilmar create global animal feed fats business|
[10 July 2015] Volac International Ltd and Wilmar International Ltd announced the creation of a joint venture group to develop their value-added animal feed fat business around the world. Volac Wilmar Feed Ingredients combines the nutritional reputation, global brand and sales network of Volac with the operational raw material logistics and scale of Wilmar, the companies said. The jv will market an expanded ‘Mega’ branded range of feed fat products that are responsibly sourced through a leading sustainability approach and by maximising operational efficiency. “Volac believes that responsibly-sourced feed fats will play a key role in sustainable livestock nutrition in the future. The jv with Wilmar will supply fat nutrition ingredients that will help improve the productivity of livestock production across world markets,” said David Neville, Managing Director of Volac Animal Nutrition.
|Philippine pork supply remains tight|
[09 July 2015] Despite claims by the Philippine Department of Agriculture that a robust local demand for pork is encouraging pig producers to increase production, local pork supply remains tight. However, Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that demand is also down so prices have remained relatively stable over the past few months. However, he said there is an oversupply of imported pork meat in cold storages. As of end-June, National Meat Inspection records showed there are over 10,111 tonnes of pork meat in storage, 91% of which are imported.
|CP Indonesia to expand its pig station in Sulawesi|
[09 July 2015] Charoen Pokphand Indonesia this year plans to expand its pig station located in Manado, North Sulawesi, according to Phaithoon N Na Ayudhaya, Business Development Advisor. He told Asian Agribiz that the company plans to increase the number of sows at the pig station by 300 sows. This station raises Landrace, Yorkshire and Duroc breeds. However with the popularity of black pig breed in the country, Mr Phaithoon said the company will consider setting up a special station for black pig breed. “In addition, we also want to set up a pig station in Toraja, South Sulawesi to cater to the growing demand in the region.”
|Manhattan Fish Market opens first restaurant in India|
[09 July 2015] Malaysian seafood restaurant The Manhattan Fish Market has entered the Indian market with its first outlet in Chennai with the help of its master franchisee Jumbo Seafoods Pvt Ltd. Shafraz Anees, Managing Director of the seafood restaurant chain in Sri Lanka and India said that there is a large market in India to cover and they have plans to open at least 10 restaurants through sub franchising. “We want to position ourselves as an affordable seafood chain offering good quality seafood,” he said. The restaurant brand known for its American style seafood entered Sri Lanka in 2013 and has two outlets in the country.
|Vissan opens food processing plant |
[09 July 2015] Vietnam Meat Industries Limited Company (Vissan) recently inaugurated a food processing plant in Tien Son Industrial Zone in the northern province of Bac Ninh. The plant costing USD 3 million has a capacity of 20,000 tonnes of processed food per year. Van Duc Muoi, CEO of Vissan, said the North of Vietnam has a population of more than 32 million people, with the launching of its plant in Bac Ninh Province, Vissan will be able to produce various products that fit each locality’s palate. The plant is a part of Vissan’s development strategy for 2015-2020 in Vietnam in general and in the northern market in particular, aiming to improve its food supply capacity.
|Judge in Smithfield suit blocks “inflammatory” references to China |
[09 July 2015] A US judge has ruled that the plaintiffs in a lawsuit against a Smithfield Farms subsidiary may not mention the Chinese Communist Party, the Chinese army or the Chinese government. In a ruling last week in North Carolina, Judge W. Earl Britt said the references were 'inflammatory’, ‘highly prejudicial' and irrelevant to the lawsuit, which alleges that hog waste lagoons maintained by Murphy-Brown LLC, a Smithfield subsidiary, are affecting local health and property values. Lawyers for Smithfield had accused the plaintiffs of trying to rouse anti-Chinese prejudice among potential jurors. Judge Britt refused, however, to strike references to the fact that Smithfield is controlled by WH Group, a Chinese company, to Chinese pork demand, and to the potential for exports to China, since they "address a potential source of the alleged nuisance and provide potentially useful contextual information.”
|Huge potential for Australia’s breeder cattle |
[09 July 2015] The Indonesian government is looking to import 2 million head of breeder cattle by 2018 to increase the size of the domestic herd and improve the country's ability to be self-sufficient in beef. The government is providing financial support to its eastern provinces to import breeding stock from Australia. The East Kalimantan, provincial government plans to import an initial 11,000 head reported ABC Rural.
|Poultry feed conferences to tackle feeding strategies |
[08 July 2015] Asian Agribiz's Poultry Feed Quality Conference has been growing in size and stature over the last six years and now attracts more than 300 nutritionists from throughout Asia. This year, in addition to the main conference in Bangkok, Thailand from September 3-4, Asian Agribiz will also stage a satellite, inaugural Layer Feed Quality Conference in Jakarta, Indonesia on 7 September 2015.Both conferences feature strong science-based technical programs with carefully selected papers containing relevant trial data and practical solutions for Asian broiler and layer producers. More details and registration form can be viewed here and here.
India's vaccination challenges and developments
[08 July 2015]
As an emerging producer and consumer of animal protein, India is fast becoming a lucrative market for veterinary vaccines. In this special web report SM ARUN reviews the latest developments in the Indian animal vaccines industry and the contributions of local vaccine manufacturers.
Development of bird flu vaccine in progress
The National Institute of High Security Animal Diseases (NIHSAD) in Bhopal is developing a bird flu vaccine, which it targets to be more effective than the one developed in 2006. The externally funded project aims at development and evaluation of neuraminidase DIVA marker (Differentiating Infected from Vaccinated Animals) vaccines against highly pathogenic H5N1 avian influenza viruses in chickens. A spokesperson of NIHSAD told Asian Agribiz that the vaccine against highly pathogenic avian influenza, lab generated H5N2 is ready for validation.
AIV vaccine dropped by government
In 2006 when avian influenza first hit India, the country’s then High Security Animal Diseases Laboratory (HSADL) in Bhopal developed and tested an AIV vaccine. However, the Union Government later decided not to adopt vaccination policy in the country. According to the National Institute of Agricultural Sciences, the decision was taken as the indigenously developed vaccine was a homologous one. “Vaccines incorporating the homologous strain is not advisable as it does not differentiate whether the AIV antibodies are due to vaccination or due to infection,” a government policy paper noted.
IIL to set up USD 47 million vaccine plant
Hyderabad based vaccine manufacturer Indian Immunologicals Ltd (IIL), a subsidiary of National Dairy Development Board (NDDB) is setting up a new vaccine manufacturing facility in Pondicherry in south India with an investment of USD 47 million. “The facility is part of the Union Government’s strategy to meet the anticipated doubling of demand for veterinary vaccines,” NDDB Chairman T Nanda Kumar said. According to him, the demand for veterinary vaccines in India is estimated to reach 600 million doses over the next 3-4 years from around 300 million doses now. “Decision on whether to manufacture new vaccines or expand the existing portfolio is yet to be taken,” he added. Once set up, this will be the fourth facility for IIL.
India opposed to vaccination for valid reasons, FAO
Even though India is aware of the benefits of vaccination, they refrain from using it as part of their control and prevention strategy for a range of valid reasons, a report by the UN Food and Agricultural Organisation, FAO said. “The reasons include practical issues related to the administration of the vaccine and the nature of the poultry production sector,” the Animal Production and Health Paper titled ‘Approaches to controlling, preventing and eliminating H5N1 Highly Pathogenic Avian Influenza in endemic countries’ said. The report also added that technical and cost effectiveness issues have also influenced the decision not to vaccinate.
First pig vaccine for cysticercosis
Indian Immunologicals Limited (IIL) has partnered with Scotland-based GALVmed and the University of Melbourne to launch the world’s first pig vaccine for procine cysticercosis on an industrial scale by the end of 2015. Classified as a neglected tropical disease by WHO, cysticercosis is a parasitic infection that can cause brain disorders like epilepsy or seizures in humans. The disease spreads from pigs infected by tapeworms called Taenia solium to humans upon eating raw or undercooked pork and vice-versa to pigs in contact with human faeces. The vaccine works by eliminating the parasite’s ability to transmit. The vaccine will be based on antigen TSOL-18, which was identified and tested on pigs with the help of researchers at the University of Melbourne.
Goat plague vaccine to be produced in Kerala
Institute for Animal Health and Veterinary Biologicals is set to produce a vaccine against goat plague to combat the fast spreading virus that affects goats and sheep. A highly contagious viral disease, 'Peste des petits ruminants' (PPR) or goat plague carries a mortality rate of 50%. Director of the institute Dr NN Sasi said that initial production capacity will be 500,000 vials per year and could be scaled up according to demand. The dehydrated and freeze dried PPR vaccine has a shelf life of up to one year under refrigeration. “As many as 50 animals can be immunized using one vial of vaccine,” Dr Sasi added. According to FAO, goat plague impoverishes millions of small farmers across Africa and Asia but awareness to eradicate the disease has been low so far.
IIL is world’s largest producer of FMD vaccine
Hyderabad based Indian Immunologicals Limited (IIL) has emerged as the world’s largest manufacturer of foot and mouth disease (FMD) vaccine with a capacity to deliver 360 million doses per year. General Manager of IIL NSN Bhargav said that Merial of Brazil is the second largest producer of FMD vaccine with an installed capacity of 300 million doses a year. IIL recently opened a new, fully automated FMD vaccine manufacturing block, which conforms to stringent regulatory norms by developed countries. IIL currently meets the bulk of the requirement for the FMD Control programme in India besides exporting the vaccines to West Asia and CIS (Commonwealth of Independent States) countries.
|Myanmar delegation explores opportunities with Japfa Indonesia|
[07 July 2015] A delegation from Myanmar consisting of the government officials and livestock industry players recently visited the head office of Japfa Comfeed Indonesia in Jakarta to explore business opportunities and partnerships. In a press release made available to Asian Agribiz, A Harwanto, Executive Vice President – Head of Feed Division of Japfa, said the delegation has shown their interest to buy Japfa’s quality DOC. According to the release, most of the company’s breeding & commercial farms have been certified with avian influenza-free certification. Led by Myanmar’s Deputy Minister of Livestock, Fisheries and Rural Development, Aung Myat Oo, the delegation also got the opportunity to visit the vaccine producing plant of Japfa’s subsidiary Vaksindo in Bogor, West Java.
|Boost for India's crop production |
[07 July 2015] With the onset of southwest monsoon in India having recorded above normal monsoon rains this year, crop sowing has received a much needed boost and fears of deficient rainfall allayed. According to the India Meteorological Department (IMD), the country has received 28% above normal rainfall this monsoon. Oilseeds witnessed an over fivefold rise in coverage followed by an almost twofold rise in the area under pulses. In India, around 60% of the country’s farmland is rain fed and the above normal rainfall would not just boost prospects of the farm sector growth but is also expected to bring down food inflation.
|Bali farmers suffer losses due to oversupply|
[07 July 2015] Pig farmers in Bali, Indonesia are suffering losses due to the low price of live pigs due to oversupply. I Ketut Hari Suyasa, Chairman of the Bali Pig Farmers Association, told Asian Agribiz that as of July 2 the price of live pigs was around USD 1.65/kg. “Over the past six months we enjoyed a good price of around USD 2.62/kg,” he said, and this led farmers to increase their herds. “We feel that the output increase at contract farms affiliated with a big company is too high, while the output by our members who are mainly backyard and small-scale farmers has less impact on the market,” Mr Suyasa explained.
|Indian animal feed industry to double in five years|
[07 July 2015] The Indian animal feed industry, which is currently valued at USD 15 billion is poised to double and touch USD 30 billion in the next five years to cater to the growing protein requirements of the country, according to a report published by Yes Bank. The report stated that with changing income levels and more people eating fish, meat and chicken there will be a higher requirement of processed dairy, aqua and poultry products, which in turn will result in higher feed requirement.
|AACo wants to become Asia’s premium butcher|
[07 July 2015] Australia’s leading beef producer and exporter Australian Agricultural Company (AACo) is keen on becoming the world’s finest beef producer, according to Cye Travers, General Manager for Branded Beef. He said Australia doesn’t have the production capacity to become Asia’s food bowl, but could become its delicatessen and AACo its premium butcher. Asia’s growing middle class offers the Australian farm sector an unprecedented opportunity. AACo has rapidly lifted sales of premium boxed beef and is now the world’s biggest producer of Wagyu.
|CP Indonesia to develop pig business in East Nusa Tenggara|
[06 July 2015] Charoen Pokphand Indonesia this year plans to develop its pig business in East Nusa Tenggara, according to Phaithoon N Na Ayudhaya, Business Development Advisor. Mr Phaithoon told Asian Agribiz that the company already has a good business in Kupang, and now plans to develop business in Flores. “We are bullish about the potential in this region. Pork consumption is around 10 kg/capita. Meanwhile the average price of live pigs is around USD 3/kg and is relatively stable and not affected by prices in Jakarta, Solo or Bali,” said Mr Phaithoon. To develop its business in Flores, CP Indonesia will support pig breeders and farmers in the region with good quality feed, breeds and technical management. “We also plan to set up a pig station there with a population of 100 black sows,” said Mr Phaithoon.
|Indian poultry industry seeks imports of soy meal|
[06 July 2015] Against the backdrop of India losing the poultry ban case against the US, the Indian poultry industry is lobbying the government to allow import of US soy meal, which is cost effective compared to Indian soymeal. The poultry industry here believes this will help the industry to get cheaper raw material and reduce its cost of production so that it can compete with impending US chicken imports in India. Mr Amit Saraogi, Chairman of the Compound Feed Manufacturers Association of India said that while the cost of processed chicken in India is USD 3/kg, cost of imported chicken legs from the US will be just USD 1/kg.
|Dharma Samudera records positive Q1 growth|
[06 July 2015] Indonesia’s seafood processor and exporter Dharma Samudera Fishing Industry recorded good business growth in Q1 of this year. The company produced 1848 tonnes of fish valued at USD 10.2 million. In the same period last year it produced 1727 tonnes valued at USD 7.8 million. J Sarsito, President Director, said the company this year targets to produce 8200 tonnes of fish valued at USD 38.6 million, with 6450 tonnes targeted for export. To achieve the targets, Dharma Samudera will strengthen its partnership with fishermen in Java and Sulawesi to ensure continuous supply to its 25 tonnes/day fish processing plant. It also plans to extend its reach to Japan, Australia, the US and EU. At the moment, 41% of Dharma Samudera’s production is tuna, followed by fish fillet, octopus and king fish.
|Higher price of chicken in Malaysia|
[06 July 2015] The Agriculture and Agro-based Ministry is confident Malaysia will have sufficient chicken supply during the Eid festival this month. Minister Datuk Seri Ismail Sabri Yaakob said the country produces 125% and exports chicken. But poultry traders at supermarkets and wet markets are reportedly bracing themselves for rising broiler prices due to the higher cost of chicken feed as well as increased demand for chicken amid low supply, The Star reported. Perak poultry association Chairman Datuk Ding Thong Chow said chicken price had increased to USD 1.32/kg from USD 1.27/kg last month. Mr Ding said besides shortage broilers were also experiencing stunted growth. He blamed the poor quality of dried maize imported from Argentina.
|US Golden Chicken to enter Pakistan|
[06 July 2015] Golden Chick Restaurant, a Texas-based US fried chicken chain is all set to enter Pakistan, and will initially open three restaurants this year and aims to raise the number to 30 joints in subsequent years. The company signed a ‘letter of intent’ with Crescent Star Foods (Pvt) Limited (CSF), a wholly-owned subsidiary of the Crescent Star Insurance Limited this month. According to Dawn, a flagship restaurant would be set up in Lahore while two others would be set up in Karachi and a smaller town. Golden Chick would also introduce roasted chicken (charga), while other players that serve either grilled or fried chicken.
|Banks in Bangladesh to open agri credit divisions |
[06 July 2015] Bangladesh Bank, the central bank of Bangladesh, has asked the scheduled banks in the country to open agriculture credit divisions by July 7. According to a circular from the central bank, the move aims to put agriculture loan disbursement, realisation and other related activities under intensive monitoring. “At least one officer must be assigned to every branch to carry out the agriculture loan related activities,” it added. The circular has been sent to the chief executives of all 39 private and nine foreign banks operating in Bangladesh. The new division of each bank will conduct activities such as selection of clients, preparation and evaluation of loan proposals, approval, disbursement, supervision and collection of credit.
|Rains force early shrimp harvest in India|
[06 July 2015] Heavy rains in the state of Andhra Pradesh, the heart of India’s shrimp farming region, have forced farmers to harvest early, causing farm-gate prices for all sizes of whiteleg shrimp to drop, except for 90 and 100 count/kg whole shrimp reported Marine Shrimps. Indian processors are dropping export prices for customers in the US because Indonesian processors are offering lower prices. US buyers have been holding back on making big commitments and only buying to cover holes in their inventories.
|SKM Animal Feeds venture into chicken processing|
[03 July 2015] South Indian animal feeds manufacturer SKM Feeds and Foods (India) Private Limited has ventured into chicken processing with the acquisition of a 3000 birds/hour chicken processing unit in Tamil Nadu. Speaking to Asian Agribiz, Dr M Chandrasekar, Managing Director of the company said that they are now producing 1100 tonnes/month of processed chicken from their unit near Coimbatore. “We have launched the brand Porna chicken in South India,” he said and pointed out that once they reach full processing capacity of 1800 tonnes/month they will embark on expansion.
|China plans 10.5 million tonnes of new grain storage|
[03 July 2015] China is planning to build 10.5 million tonnes of new grain storage capacity in order to improve management of the country’s current grain surplus, according to a report by the official news agency Xinhua. High government subsidies have encouraged farmers to grow vast surpluses of corn, with stocks reaching almost 100 million tonnes by the end of the 2014 crop year. Officials for the state grain reserves said they are planning to build more storage facilities in the grain-rich northeast, as well as in other areas where grain is stored and sold, the Xinhua report said. Meanwhile other government officials are encouraging farmers to grow alternative crops, but there has as yet been no change in the subsidies that have raised domestic corn prices 30% above the world market price.
|GGP offers to buy rest of Sierad for USD29.64m|
[03 July 2015] Indonesia’s Great Giant Pineapple (GGP), a subsidiary of Gunung Sewu group, has offered to buy the remaining 49.49% of poultry firm Sierad Produce that it does not own for USD 29.64 million. GGP has offered to buy 464.79 million Sierad shares at IDR 850 each, according to a prospectus published in the Investor Daily newspaper. That is 1.8% above Sierad’s closing price on Monday. GGP said the Indonesian poultry sector offers strong potential and it is keen to expand the company’s product distribution network.
|KFC opens first outlet in Myanmar|
[03 July 2015] US chain KFC opened its first outlet in Yangon, Myanmar, on June 30, becoming the first major western fast food chain to establish a foothold in the country. “It has been our dream for a long time to have a KFC in Yangon,” said Micky Pant, CEO of KFC. KFC views the country with a total population of 50 million as an important emerging market, he said. The Southeast Asian country has seen an influx of foreign brands since the end of military rule in 2011, which prompted the lifting of many Western sanctions. KFC’s parent company, Yum! Brands, had signed a deal with Singapore-based Yoma Strategic Holdings as a local partner in Myanmar.
|OSI committed to China despite losses|
[03 July 2015] OSI Group remains committed to the China market despite losing close to USD 1 billion since a food safety scandal last summer, according to an OSI executive quoted by the official Chinese news agency Xinhua. Speaking to local reporters during a tour of a new OSI plant in the central province of Henan, OSI China Vice President Lü Yong said the firm had lost about USD 987 million since July 2014, when allegations surfaced that an OSI plant in Shanghai was using out-of-date meat, the Xinhua report said. “However, our faith in the Chinese market has not changed,” Mr Yong said, adding OSI has invested more than USD 500 million in China over the last five years.
|Valid data crucial to stabilise supply & demand|
[03 July 2015] In order to control the supply and demand of poultry, Indonesia’s Ministry of Agriculture is now trying to get valid industry data. Muladno, Director General of Livestock and Animal Health, said the ministry is looking for a professional survey agency to do data verification. “This week we will also ask all poultry breeding companies to send their production and supply data. In addition, we plan to call poultry genetics companies to explain about production cycle and the right method to calculate potential production of DOC,” Dr Muladno said. From the three actions, Dr Muladno said the ministry will then launch e-poultry or an online data-base application on the real supply of DOC.
|Agri firms unhappy over FTA with South Korea|
[03 July 2015] Agri businesses in Vietnam fear the free trade agreement (FTA) with South Korea will bring them more losses than gains, reported Thanh Nien News. Signed in May, the FTA is expected to boost Vietnam’s exports to Korea and more than double bilateral trade over the next five years. Next year South Korea will remove tariffs on shrimp from Vietnam, currently at 10-15%, raising hopes of expanding exports. South Korea is Vietnam’s fifth biggest shrimp importer. Last year Vietnam surpassed China to become the biggest exporter to Korea. However, Le Van Quang, General Director of seafood producer Minh Phu, said it is not easy for local seafood enterprises to increase exports because there is a quota for Vietnamese shrimp of only 10,000 tonnes enjoying zero tax. The quota will be increased by 10% every year until it reaches 15,000 tonnes.
|NIRS workshops – making the most of feed|
[02 July 2015] Feed producers are constantly under pressure to produce consistently high quality feed, while maintaining profitability and production targets. Consistent feed quality begins with having full knowledge of your incoming ingredients. Asian Agribiz Skills Development will be holding one day NIRS workshops, presented by Ivan Ward of Agri-Torque Pty. Ltd. Mr Ward has extensive practical experience implementing NIR systems, in particular with Australia’s largest feedmiller. Introductory Workshops will be held in Bangkok (September 1 and Jakarta September 5) and an Advanced Workshop for people with more than two years NIR experience will be in Bangkok (2 September). Please register your interest today with Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org
|Sats to evolve into regional food company |
[02 July 2015] Singapore’s Sats Ltd’s joint venture with Brazil’s BRF GmbH to manufacture food products will eventually evolve into an integrated branded food company with a physical presence in other Southeast Asian markets. “After configuring a distribution presence in these new markets we will look at the value added servuces such as cutting and marinating, and later finished products such as ready-to-eat meals,” CEO Alex Hungate said recently. “Asean is an attractive and high potential meat market,” he said, adding that the urbanisation has seen rapid growth in the middle and affluent class. “This category will want to consume higher quality and safe food. The jv is targeted at this trend especially with meat."
|Cargill’s latest animal nutrition centre opens in China|
[02 July 2015] Cargill in China has opened its 12th Technology Application Centre (TAC) in Bazhou, Hebei. The centre has 120 lactating dairy cows and 280 sows, and focuses on technology applications to improve animal performance, lower diet costs, reduced nitrogen and phosphorus excretion and enhanced animal health. “Our TAC is designed to evaluate and test the application of Cargill technology under local conditions. This TAC allows us to deliver new products and services that are customised to meet requirements of our customers in China,” said Scott Ainslie, Global Strategic Marketing and Technology Director for Cargill’s Animal Nutrition Business. “The new TAC allows our Chinese customers to tap into best possible solutions from around the world,” said Jason Shelton, Global Technology Application Director.
|CP Indonesia reduces capex|
[02 July 2015] Indonesia’s largest poultry integrator Charoen Pokphand Indonesia this year will spend only around half of its total capital expenditure of last year, which amounted to more than USD 225.3 million, according to Director Ong Mei Sian. The company will spend a smaller amount of capex this year because it carried out fewer expansion projects in line with around a 20-30% reduction of its DOC output, which resulted from a regulation requiring large companies to reduce their DOC production. Ms Ong said the company could not yet predict its revenue this year, but she expects that it would be at least the same as last year’s.
|Chinese officials seize ‘zombie’ chicken paws|
[02 July 2015] Chinese health officials in Chongqing seized pickled chicken paws and pig’s trotters that may have been as much as 40 years old, according to the Xinhua news agency. The meat, which the report referred to as ‘zombie flesh’, had been chemically processed and then sold to midnight snack stalls and restaurants. “The meat was older than some of the men who were eating it,” said the report, which did not specify whether the meat was a domestic product or had been imported or smuggled into China.
|Water-injected beef found in Surakarta|
[02 July 2015] Indonesia’s Surakarta municipal administration in Central Java has called on local residents to lookout for water-injected (beef) meat in traditional markets throughout Ramadhan. The warning was made after the city’s Agriculture Agency last week confiscated 40kg of water-injected meat from two vendors during a raid on the Nusukan traditional market. The agency’s Veterinary Public Health Section Head, Bagus Sarwoko, said this indicated that unsafe products have started to flood the city in the midst of growing demand during Ramadhan. Mr Bagus added that the local administration has been cooperating with authorities in six neighbouring cities to intercept the influx of water-injected meat from and to their respective regions.
|Disease threat among pigs in India’s Mizoram|
[02 July 2015] Disease threat has surfaced in parts of northeast India after samples of pigs that died in Aizwal and the surrounding areas in Mizoram state in India tested positive for classical swine fever and Porcine Reproductive and Respiratory Syndrome (PRRS). Confirming this, State Animal Husbandry and Veterinary Director Dr L B Sailo said the samples were tested at the laboratory in Veterinary Science College in Selesih. According to him, the outbreak of classical swine fever has been a yearly affair during the pre-monsoon season. “This is due to the changes in weather and the situation would soon normalise,” he added.
|Pure Pig Genetics acquire ACMC assets|
[01 July 2015] Pure Pig Genetics Ltd, a new company owned by Matthew Curtis, former Managing Director of ACMC, has taken over major assets owned by ACMC, which went into administration in April. Included in the acquisition are ACMC’s nucleus herd and Gene Bank Stud. Pure Pig has also taken over ACMC’s worldwide franchise contracts as well as its high health multiplication contracts in the UK and purchased all breed genetic rights worldwide, all the brand names and intellectual property, PigCom herd management system and the Genetic Evaluation Program. Mr Curtis said that “after a considerable period of uncertainty,” ACMC customers no longer need to worry as they can now acquire ACMC products through Pure Pig. Meanwhile, Dr Danny Silbor, Country Manager of ACMC Philippines told Asian Agribiz that they will continue operating in the country. “The Philippines remains one of the most successful ACMC franchises outside of the UK and this year will be good for our two nucleus farms.”
|STM Group to venture into chicken processing|
[01 July 2015] Indonesia’s Sinar Terang Madani (STM) Group based in Makassar, South Sulawesi plans to venture into chicken processing. Audy Joinaldy, President Commissioner, told Asian Agribiz that the company recently set up a chicken trading division for the plan. “We are still analysing the market potential and channels. But for the first stage we plan to have a 1500 bird/day chicken processing plant in South Sulawesi,” he informed. Mr Audy said South Sulawesi with a population of 8 million people is a fast growing province in Indonesia. Although marine fish is the number one animal protein source in the province, the consumption of chicken continues to increase.
|Chinese vaccine production centre fitting out|
[01 July 2015] Luoyang Huizhong Biotechnology Co Ltd in China is building a USD 25 million animal vaccine production centre that will include six vaccine production lines, according to the Luoyang Daily News. The project, which has entered the equipment procurement stage, will manufacture vaccines against Newcastle disease, avian influenza, infectious bronchitis and other poultry diseases. Luoyang is located in the central province of Henan, one of China’s most important animal protein production centres. The Chinese animal vaccine market is growing at a 15% annual pace, with sales expected to reach more than USD 3 billion by 2017.
|Pakistan plans to produce 3.8m tonnes of meat in 2015-16|
[01 July 2015] The Pakistan government has set a target to produce 3.8 million tonnes of meat in 2015-16 to fulfil local requirements as well as exports. According to the Ministry of National Food Security and Research, beef production target has been set to 2 million tonnes, mutton production targets was fixed at 686,000 tonnes and fish production targets at 788,000 tonnes in 2015-16. Apart from this, the government has also scaled up its target of milk and egg production in the country for the said period. To meet this target, the government is developing its veterinary infrastructure, standardisation of feed and development of skilled manpower, a statement from the ministry added.
|China report new H5N1 outbreaks |
[01 July 2015] China reported more outbreaks of H5N1 avian flu, affecting about 15,000 domestic birds, according to reports posted by the World Organisation for Animal Health (OIE). The virus hit a flock of 2349 ornamental birds on a farm in Jiangsu province in the east and a 12,554-bird chicken farm in Guizhou province in the south, health ministry officials reported in a June 19 OIE report. The small flock had 2149 cases and 1858 deaths, while the larger farm reported 4615 cases and 3800 deaths. The remainder of the flock was culled to prevent disease spread.
2015 7th International Symposium on Emerging and Re-Emerging Pig Diseases
Reports from CRAIGE ALLAN
[01 July 2015]
Why ileitis remains a problem
Dr George Aretis, Apac Regional Swine Consultant, Elanco Animal Health, said ileitis is “the most underestimated problem in the swine industry.” About 96% of farms globally are infected. Based on the level of management, sometimes subclinical or even chronic cases of ileitis can be underdiagnosed. Pigs recover in 3-4 weeks after the clinical phase, however, the adverse effect on average daily gain cannot be compensated. Mr Aretis described ileitis as “a disease that stays on the farm”. This is because pigs with subclinical infections can excrete 10 million lawsonia bacteria per gram of faeces, and it takes just 1 million lawsonia to cause an infection. The bacteria can also survive for 14 days in the faeces at 15 degrees Celcius.
Transmission of PEDV through feed
Scott Dee from Pipestone Applied Research presented the results of a study on the risk of feed and feed ingredients as vehicles for porcine epidemic diarrhoea virus or PEDV transmission. Initial reports indicate the ability of PEDV to survive in dry feed for seven days and in wet feed for 28 days when stored at room temperature. In studies the use of a swine bioassay demonstrated infection in naïve pigs following ingestion of contaminated feed. Mr Dee concluded that as the global swine industry prepares itself for the spread of the virus a biosecurity program designed to reduce the risk of feed along with plans for reducing transport and aerosol risk becomes essential.
Infection chain and prevention chain
In Boehringer Ingelheim Vetmedica’s ‘Chain thinking in disease prevention’ satellite meeting, Dr Eduardo Fano presented “Infection Chain/Prevention Management” which aims to connect epidemiological events, or infection chain, between the different production phases, or production chain. He gave an example of the gilt acclimation initiative ‘50-350’, which aims to reduce vertical transmission for Mycoplasma hyopneumoniae from gilts to piglets. Gilts are exposed to M hyopneumoniae at 50-80 days of age, targeting complete population infection at 100 days with validation by diagnostics. Recovery and shedding stops at 300-320 days before the first farrowing at 350 days.
Producers accede to demands for antibiotic-free products
[30 June 2015]
Antibiotic use in animals is expected to surge by two-thirds globally between 2010 and 2030, while doubling in emerging giants like China, Brazil, India and Russia, said a study by the International Livestock Research Institute. By 2030 Myanmar and Vietnam are projected to be two of the top five countries with the largest increases in antibiotics use – 205% for Myanmar and 157% for Vietnam. However, Asian lawmakers, feedmillers, poultry and livestock producers are taking charge of the situation. A survey by the ASIAN AGRIBIZ team showed that consumers and retailers are driving the move for antibiotic-free meat products, and for producers to be more ethical in their use of drugs.
Indian government urges industry to stop using AGP
Fearing the threat of antibiotic resistance, India’s Drug Controller General of India (DGCI) and Union Agriculture Ministry have directed state governments to stop the use of antibiotics and hormones in animal feed. However, there is no regulatory provision regarding the use of antibiotics in livestock and hence there is no immediate ban. “The idea is to cut the misuse of antibiotics by phasing out these practices completely but it would be done while sensitising farmers about the risk it poses to health of people,” a DGCI spokesperson told Asian Agribiz.
Indonesia targets antibiotic-free production
The Indonesian government and poultry stakeholders have put a timeline on antibiotic-free poultry production in its poultry industry roadmap. Desianto Budi Utomo, General Secretary of the Indonesian Feed Millers Association and President of the Indonesian Poultry Science Society, told Asian Agribiz that the country plans to achieve it in the next 10-15 years. “It takes time because industry players and infrastructure are not ready for a total ban. We learnt from a case in a Scandinavian country where a total ban of AGP without a transition process caused the use of antibiotics for therapeutic reasons to increase. So it is important for Indonesia to use the 10-15 years as a transition period and also to educate farmers,” said Dr Desianto.
Full ban could lead to bacterial infections
Even though the Indian Government has asked industry players to stop the use of antibiotics and hormones in feed, there is no blanket ban on its use. Dr Sujit Kulkarni, Managing Director of Biomin India, told Asian Agribiz that if there is a blanket ban it would lead to more incidences of dysbiosis or other bacterial enteritis, which can open the door for more bacterial infections. Despite the risk of price escalation, he said considering the health hazard of antibiotic residues in chicken meat, people are ready to pay a premium for AGP-free chicken.
Consumers drive demand for antibiotics-free food in Vietnam
In Vietnam the move towards antimicrobial-free products stems from food producers and retailers. “Broiler farmers are being asked by the slaughterhouses to remove antibiotics from feeds in the last phases. The slaughterhouses are instructed by fast food retailers like KFC, Jollibee and Lotteria, food caterers and big hotels,” Gabor Fluit, General Director De Heus Vietnam, told Asian Agribiz. The dairy sector is more advanced. Vinamilk, Friesland Campina and TH are serious about zero antibiotics contamination in processed milk products. In the pig sector, he said, both feedmillers and farmers are starting to feel the pressure from consumers. In export-driven products like pangasius and shrimp, feedmillers, farmers and processors work closely and monitor the whole chain to prevent antibiotic contamination in end-products. “Producers do not want to risk losing important export markets, so there is a natural drive to improve and perform,” he said. “In general we see a clear trend,” Mr Gabor said.
Use of AGP in feed declines
With the Central Government directing the industry to stop antibiotics in feed, Biomin India observed that poultry integrators have reduced the use of antibiotic growth promoters in feed in the last few years. “Poultry industry players seriously observe the withdrawal period. They ban the use of AGP in feed in the final 8-10 days of production to eliminate antibiotic residue in chicken meat,” Sujit Kulkarni, Managing Director of Biomin India, told Asian Agribiz. According to him, these farmers have managed to maintain good husbandry practices by using alternatives such as phytogenics, probiotics, prebiotics and organic acid in combination or by itself.
Philippine producers not ready for blanket ban
Despite decisions by McDonald’s, Tyson and Walmart in the US to phase out antibiotics in meat products, this could take a longer time in the Philippines. “We can only implement this if our farmers are already mature enough to observe proper biosecurity, strict feed quality and good animal husbandry,” Dr Roland Cruz, a veterinarian consultant in the Philippines told Asian Agribiz. He noted that regulators are still unable to overcome the use of banned beta-agonists as meat enhancer. He said highly integrated operations like San Miguel Foods, Bounty Fresh and Robina Farms could supply meat that is antibiotic free, but many others cannot. Besides, despite food safety awareness, most consumers are still price-sensitive and this could affect how producers raise their animals. Nevertheless, many producers are anticipating shifts in consumer preferences and are slowly making changes.
Indonesia to reduce use of AGP on farms
In order to achieve antibiotic-free poultry production in the next 10-15 years, Indonesia’s government is planning to reduce the number of AGP from 30 to six items. This will be gradually reduced to zero. Desianto Budi Utomo, General Secretary of the Indonesian Feed Millers Association and President of the Indonesian Poultry Science Society, told Asian Agribiz that besides reducing the products, its usage will also be limited based on feed phase. “Considering the withdrawal time before harvest, the use of AGP in (broiler) finisher feed will be prohibited.” As a result of this, Dr Desianto said, farmers have to improve their biosecurity and farm management.
Awareness levels high in Malaysia
Stakeholders in Malaysia’s livestock and poultry industry have been talking about the misuse of antimicrobials as growth promoters for some time now. “Awareness levels are high among feedmillers, and livestock and poultry producers. The Department of Veterinary Services has been pushing for this for a long time,” Dr C Paul Suppiah, Veterinary Association Malaysia President, told Asian Agribiz. Many producers have established good biosecurity on their farms to keep their animals safe. Meat producers, on the other hand, demand for meat that is free from antibiotics residue. Malaysia also exports poultry, pork and eggs to Singapore where the country’s Agri-Food and Veterinary Services maintains high food safety standards that Malaysian exporters comply to. However, Dr Paul does not foresee Malaysia issuing a nationwide-ban on the use of drugs as growth promoters. “There are many farms that are still open house facilities.”
CP Indonesia initiates change with higher biosecurity
Major poultry integrator Charoen Pokphand Indonesia has done much to reduce the use of antibiotics in its operations and improve traceability. Desianto Budi Utomo, Vice President of Government and Academic Liaison, told Asian Agribiz the company gradually transformed its internal commercial broiler farms from open house to closed house. “We raised the biosecurity level of our commercial broiler farms. We place much attention on the withdrawal time of antibiotics since this relates to traceability,” Dr Desianto said, adding that since the company plans to export its further processed chicken products to Japan, a team of auditors has surveyed its production facilities. “They found that we can meet their food safety standards and can guarantee compartmentalisation and traceability.”
De Heus can work out alternative solutions for feed
De Heus Vietnam installed its first antibiotic-free production line for dairy cattle feed back in 2011. “Back then we saw the biggest risks in the dairy market,” Gabor Fluit, General Director, told Asian Agribiz. Today the company’s aqua feeds are antibiotic-free as well. “That is the reason why we have two fully-dedicated aqua production locations in Vinh Long and in Vinh Phuc. For pig and poultry feeds we are reducing the risks of contamination by producing high-risk feeds on dedicated production lines like the piglet feed, and frequently cleaning the lines,” he said. He expects costs could go up in the short term for producers. “There could be an upward price impact on some products as antibiotics are not only used for disease tackling, but also as growth promoters. Alternatives are available in the market, but these alternatives are in some cases more expensive,” he said. Long term, however, Mr Gabor believes that Vietnam will be able to adapt to a changing environment.
|CP Prima launches shrimp feed to overcome disease|
[29 June 2015] Responding the spread of white faeces disease in shrimp ponds in Lampung and East Java, Indonesia’s largest aqua feed producer Central Proteinaprima (CP Prima) recently launched a special shrimp feed to overcome the problem. Irwan Tirtariyadi, President Director, said several trials of the special feed have been done in East Java and the results showed that after treatment with the feed, infected shrimps could grow again. Mr Irwan informed that the feed will be produced at its feedmills in East Java, Lampung and North Sumatera.
|Poultry and livestock production to grow in the Philippines|
[29 June 2015] The Philippines’ poultry production in 2015 could increase by 9% year-on-year, while livestock output could increase by as much as 5% this year on the back of good weather and the absence of diseases, according to the Department of Agriculture. Robust domestic demand for chicken and pork is encouraging hog raisers and poultry growers to increase their output.
|Austrex signs end-to-end meat processing deal|
[29 June 2015] Austrex, one of Australia's largest exporters of live cattle has signed a deal, reported to be worth about USD7.7 million, with two Indonesian businesses Pramana Agri Resources and Rumpinary Agro Industry to form an end-to-end meat processing company based in South Sulawesi. The deal will allow the joint venture to have control of the cattle supply from Australia through to the sale of boxed beef. The business model will be integrated, from the animal feed supply to the fattening, up to the meat cutting and the beef box processing," Pramana Agri Resources director Robert Erizo Kusnadi told the Jakarta Globe. In the first phase, we would have a feedlot capacity in the range of 10 [thousand] to 15,000 cattle," he said. Operations for the joint venture were expected to begin in the second quarter of 2017.
|McDonald’s to sell Taiwan stores|
[29 June 2015] McDonald’s Corp said it is aiming to sell all of its 413 Taiwan-based stores to a franchise operator, as the US fast food chain looks to cut costs globally and turn around its flagging China business. The move could help comfort investors who were sceptical and wanted specific details after McDonald’s new CEO Steve Easterbrook announced a revamp plan in May that included reorganising business units and selling outlets to franchisees, reported Reuters. “McDonald’s has decided to search for suitable candidates to become its developmental licensee in Taiwan,” the company said. It added the model would enable “faster local decision-making, quicker learning, and restaurant growth”.
|China continues to dominate aqua market|
[29 June 2015] China will increasingly influence global fish markets, says a World Bank report titled Fish to 2030. It says that by 2030, China will account for 37% of total fish production (17% of capture production and 57% of aquaculture production), and account for 38% of the global consumption of fish.
|Russia limits buffalo meat imports from India|
[29 June 2015] Russia is imposing restrictions on the supply of buffalo meat from India over disease concerns as incidents of foot-and-mouth disease have been recorded in India, Sputnik News reported. “The restrictions will apply to companies of the Uttar Pradesh state in India, where cases of foot-and-mouth disease have been recorded,” a spokesperson for Russia’s agriculture watchdog Rosselkhoznadzor said. Of the four Indian companies exporting buffalo meat to Russia, three are from Uttar Pradesh.
|USD 480m worth of meat seized in month-long ‘grey channel’ crackdown|
[26 June 2015] China Customs officials broke up 14 smuggling gangs and seized more than 100,000 tonnes of frozen meat worth up to USD 483 million in a month-long crackdown on ‘grey channel’ imports, according to Chinese media reports. The seizures came as part of a continuing food safety and anti-corruption campaign that began late last year. Grey channel imports are not properly inspected either when they enter China or when they pass through Hong Kong or Vietnam, according to Yang Bo, an official at the Changsha bureau of Customs, where 800 tonnes of meat up to four years old was seized during the crackdown.
|BAI opens new duck slaughterhouse|
[26 June 2015] The Philippine Bureau of Animal Industry (BAI) opened the first government-owned duck slaughterhouse and packing plant last week, a report by BusinessMirror said. The new plant, which can process 150 head per hour, is located in BAI’s Animal Products Development Center in Valenzuela City in northern Metro Manila. BAI Director Dr Rubina Cresencio said the facility is part of the government’s efforts to develop the country’s duck meat industry. She said this will encourage increased production to help meet increasing demand in both the local and overseas market. Last year, the Philippines started the commercial shipment of duck meat to Japan.
|Novel H5N9 virus described as hybrid of H5N1, H7N9|
[26 June 2015] Chinese researchers who analysed influenza viruses from poultry in live-bird markets said they have discovered a novel H5N9 virus that represents a hybrid of the highly pathogenic H5N1 avian flu virus and a human H7N9 virus, along with other elements. The researchers took samples in 2013 at two live-bird markets in Hangzhou, a city in Zhejiang province, where human H7N9 cases had occurred, according to their June 17 report in the Journal of Virology. The report does not indicate that any of the birds were sick. The team isolated 13 viruses from the samples: 1 H5N1, 2 H5N9, 4 H9N2, and 6 H7N9. They determined that the novel H5N9 virus prefers avian-type cell receptors, known as alpha2,3 sialic acid, rather than the human-type receptor, called alpha2,6. “This newly isolated H5N9 virus is a highly pathogenic reassortant virus originating from H5N1, H7N9, and H9N2 subtypes,” the researchers wrote. “Live bird markets represent a potential transmission risk to public health and the poultry industry.”
|Kimchi-based probiotics study in Malaysia shows good results|
[26 June 2015] A group of Universiti Sains Malaysia researchers used an extract from kimchi to develop probiotics as an additional nutrient for poultry and an alternative to antibiotics. The study, conducted at the TerokaJaya Farm in collaboration with several industrial partners, including Probionic Corp from South Korea, showed good results. Adviser to the program Prof Madya Dr Liong Min Tze said changes in the health and growth of the birds can be seen in day 42. “The probiotics act against harmful bacteria in the intestines and help birds maintain good health,” he said. “Most importantly, livestock productivity can be improved as the probiotics are capable of reducing animal death rate,” he added.
|Ramadan spikes cattle demand in Indonesia |
[26 June 2015] A good supply of Australian cattle has been exported to Indonesia’s feedlots in time for Ramadan and following festivals, reported ABC Rural. Preparation for Ramadan is also one of the busiest times of the year for livestock exporters as it is the peak period for consumption of meat and beef in Indonesia. Scot Braithwaite, COO for Wellard Rural Exports in Asia, said timing of this year’s Ramadan has worked well for the industry. “Ramadan, has arrived just in time for the first part of the second quarter permits for those cattle available.”
|FTAs to put Vietnam livestock sector to the test|
[26 June 2015] Vietnam’s animal husbandry industry is expected to face serious challenges under new and future free trade agreements (FTA) because of low productivity, high production costs and small scale of production. Speaking at a conference held in Ho Chi Minh City, Doan Xuan Truc, Deputy Chairman and General Secretary of the Animal Husbandry Association, said that FTA would adversely affect the industry. But he noted that FTAs would also help the industry access new technology, products, and animal breeds as well as production methods. “If the sector does not lower production costs, cheaper imported meat will enter the market,” he said.
|STM Group to double DOC production |
[25 June 2015] Indonesia’s Sinar Terang Madani (STM) Group, based in Makassar, South Sulawesi, plans to increase its broiler DOC production by 6 million hatching eggs per year. Audy Joinaldy, President Commissioner told Asian Agribiz that currently the company produces around 3 million hatching eggs per year. “We recently finished the construction of our second PS breeding farm in South Sulawesi, and are now setting up the third and fourth farms also in the province,” he said, adding that the company raises Cobb strain. To expand its market reach, STM Group also plans to set up a breeding farm in South Kalimantan and North Sulawesi. Currently its DOC production is only for internal use and contract farming.
|Another big grey channel bust in China|
[25 June 2015] Customs officials in southern China have busted two smuggling gangs, made 20 arrests and seized 800 tonnes of meat worth about USD 1.7 million, the official Xinhua news service reported. The meat, much of it in packaging with foreign language labels, was being smuggled through the Red Star Wholesale Frozen Market in Changsha, the capital of Hunan Province, and would have been distributed to cities across southern China. The busts were part of a continuing crackdown on the Hong Kong ‘grey channel’. Some of the meat was three to four years old, and one official said poor handling and uncertain cold chain in the grey channel caused serious sanitary issues for such aged product. China Customs estimated that one-third of the Red Star Market’s annual 800,000-tonne throughput came from unknown overseas origins.
|VVV is Grupo CEM’s agent in the Philippines|
[25 June 2015] Argentina’s Grupo CEM, a group of companies that produces, sells and exports different agricultural products and commodities, has named Veritas Vetnutrition Ventures Inc (VVV) as its sole agent in the Philippines. With this partnership, “poultry and livestock producers can now purchase commodities and products like soybean meal direct from an Argentinean producers,” Dr Nervy Santiago, President and CEO of VVV told Asian Agribiz, during the contract signing ceremony recently. Meanwhile, Nico Bolzico, General Manager of LM10 Corp, a local company with Argentine capital that was instrumental in developing the partnership, told Asian Agribiz, the tie up will introduce “premixes with sorghum, corn, wheat and sunflower among others that will allow local producers to achieve a more cost efficient ratio conversion of vegetable to animal proteins”.
Onsite reports by ISA Q TAN
[25 June 2015]
The third edition of Livestock Philippines began yesterday and will run until tomorrow. Today, President Benigno Aquino III will be the guest of honour at the show’s official opening ceremony. With more than 200 brands coming from 18 countries, the three-day event with the theme Farm to Shelf, serves as a platform for global stakeholders in the livestock, animal health and feed industries to share the latest developments in the animal protein production.
Producers must improve farms
Philippine livestock and poultry producers should realise that there are plenty of opportunities for growth both locally and globally, but they must also look at things that they need to improve on, Dr Eugene Mende, President of the Philippine Veterinary Drugs Association, told Asian Agribiz at Livestock Philippines. He added that the global meat market, particularly in Asia, has been bullish and will continue to be so. To take advantage of these opportunities, he said producers must achieve efficiency in production costs and management, be updated on the latest trends and industry technology, and invest in research and development.
Philippines develops diagnostic test kit for PED
The Philippines now has a rapid diagnostic test kit for porcine epidemic diarrhoea (PED). Dr Clarissa Yvonne Domingo of the College of Veterinary Science and Medicine of Central Luzon State University, who developed the Andali PED RT-Lamp based diagnostic test kit, told Asian Agribiz the portable and easy-to-use kit can produce fast and efficient results in less than an hour. It is also affordable. The university has not commercialised the test kit, but Dr Domingo said there are several business plans they are exploring. At this time, the researchers are still doing molecular characterisation of the virus, in order to identify where the strain of the virus present in the country originated.
Yemmak ventures into the Philippines
Yemmak, a producer of feedmill equipment from Turkey, is bringing its products into the Philippines and later to other Southeast Asian countries. Selcuk Erdem, Yemmak Marketing Manager, told Asian Agribiz the company has been in the equipment business for 50 years and has decided to expand its business into Southeast Asia. “According to our market research, to start in the Philippines is the best way, and then we will be moving into Malaysia, Indonesia and Vietnam. We see good potential in these markets.” Yemmak equipment is being represented in the Philippines by EVP Trading.
|OIE declares Philippines FMD free without vaccination|
[24 June 2015] The Philippines received its official recognition as an FMD-free without vaccination country during the 83rd General Session of the World Organisation for Animal Health (OIE) in May. “It’s a nationwide recognition with emphasis on ‘without vaccination’,” said Dr Rubina Cresencio, Bureau of Animal Industry Director and Chief Veterinary Officer, adding that previous declarations were done on per zone basis, beginning with Mindanao in 2001, Visayas in 2002 and finally Luzon in 2010. The OIE also recognised the Philippines as free of Peste des Petits Ruminants, a highly contagious disease affecting small ruminants. With these declarations, the Philippines is aiming to become a strong player in the global market.
|STM Group to set up bigger feedmill|
[24 June 2015] Indonesia’s Sinar Terang Madani (STM) Group, based in Makassar, South Sulawesi, has recorded significant growth in its feed business in the last three years. Audy Joinaldy, President Commissioner, told Asian Agribiz the company, which was founded in 2011, has seen its feed sales grow from 500 tonnes/month to 2000 tonnes/month. “Our 2000 tonnes/month feedmill in Barru is now running at full capacity. We need a new feedmill to increase production capacity and meet increasing demand for our broiler and layer feed,” he said. STM Group plans to set up a new 8000 tonnes/month feedmill which is targeted for operations in early 2017. STM Group sells its poultry feed under the Perkasa Feed brand to regions in eastern Indonesia, mainly in Sulawesi. Of its total production 50% is for internal use and the remainder is for its customers.
|US rejects shrimp with traces of antibiotics|
[24 June 2015] The US Food and Drug Administration (FDA) has refused entry to certain consignments of shrimp exported from India, Malaysia and Vietnam as traces of banned antibiotics were found. A report from USFDA stated that the refusals involved six different companies from these three countries. The main reason cited by the US regulator was related to nitrofuran or other veterinary drug residues found in the shrimp. Edwin Samuel, a seafood exporter from India, told Asian Agribiz that educating exporters against the continued use of antibiotics in shrimp aquaculture is a continued process. While the USFDA refused entry to 208 shrimp entry lines for banned antibiotics in 2014, the figure has already touched 203 in between January and May this year.
|Egg prices soar in Hyderabad|
[24 June 2015] With the layer farm industry in India’s Hyderabad reeling with a shortage of birds due to severe heat wave, egg prices in the city have increased to INR 5 per egg (USD 0.08). Sanjeev Chintawar, Business Manager of the National Egg Coordination Committee, said since more than 5 million chickens across Telangana state were killed due to the heat wave there is a drastic drop in egg production. “Daily egg production in the region has come down from 30 million to 27 million per day due to this and hence the increase in price,” he commented.
|Vietnam breaded shrimp exports to US up 50% in Q1|
[24 June 2015] First quarter US imports of Vietnam's frozen breaded shrimp rose, with tonnage up 50% year-on-year and value up 42%. During the quarter, the US imported 1491 tonnes of frozen breaded shrimp worth USD 11.9 million. Total shrimp imports fell 23% year-on-year to 12,341 tonnes, the Vietnam Association of Seafood Exporters and Producers said. Meanwhile tra fish exports continue to fall. Its turnover this year would be USS 1.7 billion, a 4% year-on-year drop due to difficulties in importing markets and tighter regulations. The association said export turnover to China surged 46%, and Canada went up 12.5% over last year, while exports to the US increased slightly by 8.8%. However, the export value of tra fish to the EU saw a sharp decrease of 16%, to Mexico of 21% and Colombia of 8%. In the US the export value of tra fish represented a strong reduction of 23% in January due to anti-dumping operations by the US Department of Commerce.
|Nepal needs USD 20 million to kick start agri sector|
[24 June 2015] About USD 20 million is needed to support farmers in earthquake-hit Nepal so that they can resume agricultural activities and stave off the threat of prolonged food insecurity, the Food and Agriculture Organisation (FAO) said. The recent tragedy heavily disrupted agri activities in the country. “To date only 13% has been received of the USD 23.4 million in emergency agricultural assistance, which FAO estimated is required, as part of the revised UN Flash Appeal for Nepal,” FAO said. The repair and functioning of irrigation systems will be crucial for the winter cropping season while livestock urgently require shelter, feed, water, medicine and vaccinations. About 15% of cattle and 36% of poultry were lost in the disaster with detrimental effects on rural household consumption and income.
2015 7th International Symposium on Emerging and Re-Emerging Pig Diseases, Kyoto, Japan
Onsite report by CRAIGE ALLAN
[23 June 2015]
Recognising the increased importance of Asia in controlling emerging and re-emerging infectious diseases globally, the 7th ISERPD is for the first time being held in Asia with the theme ‘Global Collaboration in controlling emerging and re-emerging pig diseases: From Asia to the World’.
The emergence and re-emergence of pig diseases: What next?
In the opening lecture, Joaquim Sengalés, IRTA Centre dé Recerca en Saitat Animal (CReSA), said 42% of emerging swine pathogen species are zoonotic. Most emerging virus species are variants from RNA viruses. Moreover, most swine RNA viruses are multi-host compared to emerging DNA viruses, which are all swine specific. It is hard to predict what will come next in pig diseases but the advent of PPRS by the late 80s and beginning of the 90s, PCVDs by the late 90s, the pandemic A/H1N1 by 2009 and PED in North America and Europe by 2013/14, implies that new diseases emerge every seven to eight years.
International framework for addressing emerging and re-emerging diseases
Bernad Vallat, Director General of the OIE, said key elements of efficient veterinary services such as early detection and rapid response to animal disease emergencies that could pose a risk to human health are essential. Alliances are key and it is the responsibility of governments to ensure these alliances are there and working well with the capacity to implement biosecurity measures. He also said antimicrobial resistance is a growing global concern. Veterinarians are not the problem. Instead they are the solution to minimise antimicrobial selection.
Swine industry in China
Pig production and pork processing are still two essentially different and unrelated businesses in China, according to Zhichun Yan, New Hope Liuhe Group, China. He believes there are less than 40 million sows in China, and that less than 10% of all pigs sold come from backyard production that carry 20 or less sows. These farms, however, are disappearing quickly.
Healthy r&d pipeline
According to Narciso Bento, MSD Global Swine Business Unit Manager, Asia is where the future will be, with projections that more than half of the increase in animal protein consumption by 2021 will be in Asia. “We want to work not only as a science-based company, but aim to provide solutions that increase the return on investments of our partners. R&d ensures not only MSD’s future but that of our customers too. With multiple late stage swine product development projects, which may become commercial products in the next five years, this shows the robustness of our r&d program to bring these new solutions,” he said.
PRRS in Asia – from the lab to the field
Several studies have indicated that PRRSv can cause immunosuppression, and interleukin 10 (IL-10) plays a major role in causing weak innate immune responses, said Professor Roongroje Thanawonguwech, Faculty of Veterinary Medicine, Chulalongkorn University, Thailand. The timing of vaccination is key. Prof Thanawonguwech recommended that vaccination needs to be done at least 3-4 weeks prior to field virus exposure for optimum development of protective immunity.
Experience with PCV2 control under field conditions
Professor Mathias Ritzmann, Clinic for Swine, Ludwig Maximilans-University Munich, said the diagnosis of PCV2 is not easy as clinical manifestations vary and can result in distinct diseases. In Europe, vaccination of piglets starting at three weeks of age has been shown to reduce viral shedding. It protected the animals successfully and is a valuable tool against PCV2. However, elimination of PCV2 under field conditions is not possible.
Innovation in vaccination
Vaccination is the preferred method to control PRRSv and PCV2, said Dr Rika Jolie, MSD Global Technical Director for Swine. Traditional vaccines are administered by intramuscular injection. However, MSDs IDAL offers intradermal and needle-free vaccination for registered vaccines, with benefits including fast immune response, less pain and stress for pigs, improved welfare, no tissue damage and no transmission of disease.
US strains of PED outside North America
Veterinary consultant Dr John Carr discussed his experience of a 2014 clinical outbreak of PED in a 5000-sow unit in Ukraine which practiced extremely good biosecurity measures. The outbreak resulted in a loss of six pigs per sow and took 20 weeks to resolve. Initial control measures on Day 1 included euthanasia of all piglets less than 10 days old and weaning of all piglets more than 10 days old.
|Singapore launches world’s first biochip diagnostic tool|
[22 June 2015] Singapore’s Agri-Food and Veterinary Authority (AVA) and supplier of diagnostic tools Veredus Laboratories Pte Ltd launched VereVet, a biochip that can identify nine major poultry diseases, including Newcastle disease virus, salmonella pullorum, salmonella enteritis, campylobacter and avian influenza, in one sample. Emphasising the significance of the breakthrough, Tan Poh Hong, CEO of AVA, said, “The new Lab-on-Chip will enable authorities to take appropriate action. This will, in turn, strengthen animal and public health for the region.” Veredus is a Singapore-based majority-owned subsidiary of Accuron Technologies Limited, a precision engineering and technology group wholly-owned by Temasek Holdings.
|Indonesia’s shrimp ponds infected by white faeces disease|
[22 June 2015] Shrimp farmers in Indonesia’s East Java and Lampung recently learnt that their ponds are infected with white faeces disease, reported Bisnis Indonesia. According to Slamet Soebjakto, Director General of Aquaculture of the Ministry of Fisheries and Marine Affairs, lab test results have shown that the dead shrimp samples collected from the regions were negative of early mortality syndrome but positive of white faeces disease. Mr Slamet added that technical teams from the ministry have been deployed to control the disease and educate farmers in the infected regions of remedial measures.
|Philippines adds to areas with import bans|
[22 June 2015] The Philippines has added Turkey and the state of Nebraska in the US on the list of areas for which it has a temporary ban on poultry imports. Both Turkey and Nebraska have reported outbreaks of highly pathogenic avian influenza, serotype H5N1 and H5N2, respectively. The ban covers domestic and wild birds, poultry meat, day-old chicks, eggs and semen, but does not include heat-treated products. The Philippines, which remains AI-free, has been imposing bans on AI-infected countries in an effort to keep the disease at bay. Agriculture Secretary Proceso Alcala said that being disease-free will help the country penetrate more export markets, especially now that the Asean economic integration is close to implementation.
ProPak Asia 2015
Onsite report by ARIEF FACHRUDIN
[22 June 2015]
Meat processing technology developers and suppliers gathered in Bangkok from June 17-20 for the annual ProPak Asia exhibition. The show featured the latest in machinery and technology in the meat processing industry, and updated participants on trends in the sector.
Frey launches dosing station
The ready-meal sector in the region, especially in Thailand, is growing, and food producers are looking for the next level of automatisation, Heinrich Frey, Managing Director of German based Frey Maschinenbau, said. At the show the company launched its dosing station DS. Earlier in the year the DS was unveiled for the first time at Anuga FoodTec in Germany. The system features a servo-controlled dosing and portioning system with integrated filling flow divider from 1 to 8-way distribution and dosing in thermoformers, cans, and trays or on racks, grids and dough lines. “This new system is perfectly matched with what producers need since the movement and speed is infinitely adjustable,” he said, adding that CP Group is its big customer for the new system in Thailand.
G Mondini partners with Forefront Foodtech
Italy-based packaging solutions provider G. Mondini recently teamed up with a new agent in Thailand. Gianfulvio Spelgatti, Area Sales Manager, said the company chose Forefront Foodtech because of its expertise in the food sector. “We see many developments in the ready meals category in this region. We expect to tap the market potential with the new agent,” said Mr Spelgatti.
Emerson Technik promotes smoking, cooking chambers
Emerson Technik promoted its smoking and cooking chambers for the production of cooked and smoked products in small and medium-sized plants as well as in large factories. The chambers are preferred for smoking different kinds of products like sausages, salami, injected products and for all kinds of meat including pork, beef, poultry and fish. Gabriel Trasca, Sales and Marketing Manager for Asia, said the chambers feature fast programs due to perfect ventilation system for each trolley and less energy consumption due to innovative airflow design. “With our chambers meat processors will get products which are uniform in quality and with minimum weight loss,” said Mr Trasca.
|Pork traceability system for the Philippines|
[19 June 2015] Researchers from the University of the Philippines in Los Baños have developed a nationwide pork traceability system (NPTS) that can assure the safety and quality of locally produced pork meat. One of the researchers, Dr Jaderick Pabico, said that the NPTS is an information and communications technology-based system that will allow real-time tracking of animals from ‘pen to plate’, and trace meat cuts and permit the use of a DNA-based verification system. It is also designed to be responsive to international standards in preparation for the regional economic integration later this year. The NPTS not only represents improved livestock monitoring but can also pave the way for the entry of Philippine meat products into other global markets.
|Berdikari to operate cattle slaughterhouse in Lampung|
[19 June 2015] Indonesia’s state-owned company Berdikari involved in cattle integration recently signed an MoU with the local government of Lampung province to operate the cattle slaughterhouse in Way Laga that is owned by the local government. Librato El Arif, Director, said the company targets to send beef to Jakarta from the facility in the next two weeks. “The slaughterhouse has an installed capacity of 100 heads of cattle per day, but for the first stage we will only slaughter around 20 heads per day.” Berdikari is now also setting up two new slaughterhouses in Bali and Kupang. The slaughterhouse in Bali is targeted to start operations next month.
|Pakistan soy imports to grow prior to tariff rise|
[19 June 2015] For the second consecutive year, Pakistan is set to increase the tariff on imports of soybean meal on July 1. Tariffs will climb to a minimum of 21% from 11%. The proposed rate has prompted importers to increase their 2014/15 imports of soy to an estimated record 450,000 tonnes, said a USDA Foreign Agricultural Service report. For 2015/16, imports of soybeans are expected to climb to 1 million tonnes as the higher tariff takes full effect on sourcing decisions.
ProPak Asia 2015
Onsite report by NITSARA THONGRUNG
[19 JUNE 2015]
Meat processing technology developers and suppliers gather in Bangkok from June 17-20 for the annual ProPak Asia exhibition. The show features the latest in machinery and technology in the meat processing industry, and updates participants on trends in the sector.
Leading Thai food processor to take delivery of Handtmann’s AST 340
Handtmann celebrated its first transaction in Thailand of the Automatic Smoke Sticks Transferring Unit AST 340. The robotic solution, which will be delivered to a leading food processor soon, ensures that the smoke sticks are accurately positioned and set down in the smoking trolleys. This reduces costs, brings in high production output and improves system utilisation due to optimisation. “With this robot, processors achieve reliability, food safety, lower labour cost and production efficiency. Automation is key,” Sale Director Uwe Kessler told Asian Agribiz. Handtmann also highlighted the PVLH automatic line for automated filling and portioning system.
Sairem cuts defrosting time
Sairem, supplier of microwave and radiofrequency machines for the food industry, displayed the AWM 200, a 915 MHz microwave batch machine. According to Managing Director Jean-Paul Bernard the machine allows frozen foods such as meat poultry, fish, cheese, butter and fruits and vegetables to be defrosted quickly. “The advantages of this machine includes its sanitary features, its reliability and the short time it takes to defrost meat as time is of essence. The machine has been sold globally including Singapore and Malaysia, Mr Bernard said.
Holac makes first appearance at the show with distributor K&W
Holac, specialist in slicing and cutting technology from Germany, made its first appearance at the show displaying its wares at the booth of its local distributor K&W Global Technology. “The show is a good platform for the company to gain experience and understanding of Thai and other Asian markets,” Ronald Ralf Ambrassat, International Sales of Holac, told Asian Agribiz. Working with K&W, Mr Ambrassat expects Holac to learn and grow in this region.
Grasselli exhibits 2D slicer
Grasselli from Italy exhibited the NSA series, its latest 2-dimension automatic slicing machine. The machines are the automatic product infeed and outfeed for a total inline solution. “Meat processors are now looking for equipment that is flexible and can be added to the line, and work completely inline. This is for time saving and operational efficiency,” Riccardo Guidi, Export Manager, told Asian Agribiz. The machine features 610mm or 1000mm of useable width with minimum slice thickness of 3mm or 5mm for fresh and cooked boneless meat.
|Komarla Group to commission USD3m feedmill |
[18 June 2015] India’s Komarla Feeds & Foods Pvt Ltd based in Maharashtra will commission a 20 tonne/hour poultry feedmill next year. “We plan to develop this into a Greenfield project at a total investment of about USD 3 million,” KV Krishna Charan, General Manager (Operations), Komarla Feeds told Asian Agribiz. The company, which has a strong customer base in Miraj, recorded an annual revenue of about USD 31 million in financial year 2014-15. With the commissioning of its new feedmill by next year, Komarla Feeds eyes to increase its share in the local market.
|Bulog to import 1000t of secondary beef, offal |
[18 June 2015] Indonesia’s Ministry of Trade has issued a permit for the Logistics Agency (Bulog) to import 1000 tonnes of secondary beef and offal. “We issued the permit last week to prevent a price increase during Ramadhan and Idul Fitri,” Partogi Pangaribuan, Director General of International Trade, said. Mr Partogi is optimistic that with the recent additional imports of 29,000 ready-to-slaughter cattle plus the import of secondary beef and offal, the supply of beef during the period is sufficient and will remain at an affordable price.
|Farmers demand subsidy for poultry feeds|
[18 June 2015] Layer farmers in India’s Tamil Nadu state are demanding a subsidy for poultry feeds as egg prices touch a new low of INR 2.25 (USD 0.04) compared to INR 5 (USD 0.08) few months ago. R Nallathambi, President of the Tamil Nadu Poultry Farmers’ Association, said layer farmers are affected due to the high cost of production and the fall in the price of eggs. “We expect the government to provide subsidies for poultry feed to tide over this crisis,” he said. According to him, of the total corn requirement for poultry feed only 50% is available in Tamil Nadu and the rest has to come from neighbouring states.
|More H5N2 outbreaks strike Taiwan|
[18 June 2015] Three new H5N2 avian flu farm outbreaks have affected more than 23,000 poultry in Taiwan. All the outbreaks are in Yunlin County in the west, one of Taiwan's most-affected counties. They involve geese flocks of 1,500 and 3,380 birds, and a chicken farm of 18,648 birds. Of the 23,528 susceptible poultry, 8,894 were killed from the virus, and the rest were culled to contain the outbreaks, which began on May 28, May 30, and Jun 1. As is standard procedure, a 3 km zone of intensified surveillance has been created around each farm.
|Harim Group proceeds with Pan Ocean merger|
[18 June 2015] Harim Group, a major livestock and animal feed group in Korea, will move forward with its takeover of troubled dry bulk carrier Pan Ocean. Harim, partnering JKL Partners, participated in the bid last year and was picked as the preferred bidder in December. The company paid over USD 895.5 billion for the deal earlier this month. “Prices of grain and corn are determined by international markets, so there is not much room for cost efficiency,” said a Harim spokeswoman. South Korea depends almost entirely on foreign companies like Cargill, ADM and Louis Dreyfus for grain supplies.
|Berjaya Food Q4 earnings up 21.5%|
[18 June 2015] Berjaya Food Bhd, which operates the Kenny Rogers Roasters chain of restaurants in Malaysia, saw its net profit rise 21.5% to USD 1.71 million for its fourth quarter ended April 30 2015 from a year ago, mainly due to the full effect of consolidation of the newly-acquired wholly-owned subsidiary, Berjaya Starbucks Coffee Co Sdn Bhd. Revenue for the fourth quarter more than tripled to USD 34.41 million from USD 9.76 million in 2014. For the 12-month period net profit rose to USD 49.28 million from USD 6.05 million in 2014, while revenue jumped 150.95% to USD 100.70 million from USD 40.13 million. On prospects, the company said the weakening of the ringgit against the US dollar is expected to increase to cost of sales and thus compress the group’s profit margin.
|Opportunities in AEC abound, but Philippine producers wary|
[17 June 2015] Philippine Agriculture Secretary Proceso Alcala has urged local livestock and poultry raisers to focus on opportunities with the Asean economic integration rather than threats. He said the Department of Agriculture will assist producers meet international quality and safety standards to help them thrive globally. Although the country has been FMD-free and AI-free, pork exports have yet to happen, while chicken exports have been minimal. “We are not ready for AEC,” Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz. He added that producers can compete, having already had experience competing with cheap and illegal importation. However, a key player in the pig industry, who did not want to be named, told Asian Agribiz that producers should work with the government. “There are opportunities and as responsible businessmen, we should trust our government to help us. We should help each other.”
|Yum! Brands and Jardines to bring Pizza Hut to Myanmar|
[17 June 2015] Yum! Brands will partner Jardine Restaurant Group, a subsidiary of Hong Kong-headquartered conglomerate Jardine Matheson, and local retail company City Mart Holding to open its first Pizza Hut outlet in Myanmar. The restaurant will be located in a standalone building beside City Mart’s Marketplace supermarket and is scheduled to open in November. Jardine Pacific operates over 600 Yum! franchises in Hong Kong, Taiwan, Vietnam and southern China. Elsewhere, it also represents KFC, but failed to secure the franchise in Myanmar. KFC instead partnered with Singapore-based Yoma Strategic Holdings Ltd. The only international food and beverage franchises in operation in Myanmar are South Korea’s Lotteria and Malaysia’s Marrybrown. Both entered the market in 2013.
|Vietnam feed additives market to reach USD 161m |
[17 June 2015] Vietnam’s feed additives market is expected to grow to USD 160.5 million by 2022 from USD 112.45 million last year, growing at a CAGR of 4.7% from 2015 to 2022, said US-based market research and consulting company Grand View Research. The report added that meat consumption is expected to drive demand for feed enzymes, feed acidifiers, amino acids and antioxidants over the next seven years. Antibiotics emerged as the leading product segment and accounted for over 36% of the total market revenue in 2014. Feed acidifiers are expected to be the fastest growing product segment over the next seven years. Shift in meat consumption from pork to poultry is expected to further drive poultry feed demand, thus further complementing feed acidifiers growth.
Indian dairy sector update
[17 June 2015]
Cargill’s dairy feed additive now available in India
Cargill’s dairy feed additive Promote Amaferm sold under the Provimi brand is now available in India to help dairy farmers increase milk production. In 2013, field trials were conducted in Jabalpur district in Madhya Pradesh, which revealed an improvement of 4.7% milk fat due to better fibre digestion. Maxime Hilbert, Cargill’s Technology Leader for additives said that Amaferm acts as a prebiotic, delivering more microbial protein and energy to the animal through increased digestibility. “Along with increased milk production, trials also demonstrated improved weight recovery after calving by 22% as well as an ability to decrease ketosis risk,” the press release added.
Milk Federation to sell dairy products using app
Karnataka Milk Federation (KMF) in India has launched an android based app that will enable consumers to buy its Nandini milk and dairy products using the app. According to a statement, KMF has tied up with BigBasket.com to deliver the products in the shortest possible time. Consumers can also find the nearest milk parlour on the app under ‘Locate Nandini’ option by typing the name of location or PIN code. The app also provides details of special offers on products. KMF produces about 7 million litres of milk every day.
Mahindra Group to enter dairy business
India’s multi-business conglomerate Mahindra Group is all set to enter the dairy business. Ashok Sharma, President and Chief Executive of Mahindra & Mahindra said that the group plans to start its operations from Indore in Madhya Pradesh state. “Initially, we will outsource the processing and once we are able to secure our supply chain we will invest in our own plant,” he said. As per initial plans, the company will not be buying cattle but will source milk directly from farmers. Mahindra Group also has plans to expand to other regions in phases and will introduce a retail brand at a later stage.
|CP Cambodia builds feedmill in Pailin |
[16 June 2015] CP Cambodia (CPC) plans to build a new feedmill in Pailin, in the west of the country, with a full capacity of 15,000 tonnes/month. Its existing capacity is 30,000 tonnes/month. The test-run of the mill is expected late July. Securities company Bualuang Securities said it believes the feedmill will represent the company’s growth driver from second half of the year until 2016. CP Cambodia also aims to increase the food portion of its business from 3% to 10% in the next five years through modern trade and food service channels. CPC operates a fully-integrated agribusiness in Cambodia, which includes a feedmill, breeder and hatchery farms for pig, broilers and traditional chicken and a processed food plant. Its Phnom Penh feedmill’s full capacity is 318,000 tonnes/year.
|Al Shaheer Corporation to go public|
[16 June 2015] Pakistan’s Al Shaheer Corporation Limited, the parent company of Meat One, a high end retail chain of butcheries, is set to expand across the country by going public. The Karachi based company will utilise the additional capital of about USD 10 million to fund its nationwide expansion and leverage off its first mover advantage. Chief Executive Officer Kamran Ahmed Khalili, said that consumer awareness and demand for hygienically processed quality meat is set to increase in Pakistan. The company’s listing in the Karachi Stock Exchange will make it the first initial public offering by a local foods company in five years since 2011.
|Indon-Australian JV for beef processing|
[16 June 2015] Two Indonesian agriculture companies have formed a joint venture with Brisbane-based Australian Rural Export, or Austrex, for a USD 10 million end-to-end meat processing company in South Sulawesi. Pramana Agri Resources and Bogor-based Rumpinary Agro Industry, which specialises in fattening and selling both local and imported cattle, signed the agreement with Austrex in Jakarta recently, reported the Jakarta Globe. “The business model will be integrated, from the animal feed supply to the fattening, up to the meat cutting and the beef box processing,” said Robert Erizo Kusnadi, Pramana Agri Resources Director. He added that the jv is scheduled to settle licensing over the next three months with operations to begin sometime in the second quarter of 2017. “In the first phase, we would have a feedlot capacity in the range of 10,000 to 15,000 cattle.”
|Lower grain shipping cost|
[16 June 2015] Transportation costs for shipping corn and soy from Minneapolis, MN, to Japan decreased significantly through the Gulf and moderately through the Pacific Northwest (PNW), in Q1 2015 compared to the previous quarter, reported the USDA in last week's Grain Transportation report. The year-to-year transportation costs for shipping corn and soy were down notably from the Gulf and PNW. The decreases were caused by lower rates for each of the transportation modes. Much lower ocean rates also helped push Gulf transportation costs down. High vessel supply and lower demand for bulk grain continued to drive transportation costs down.
|Indonesia develops harvest strategies for tuna|
[16 June 2015] Indonesia has embarked on an ambitious program to develop harvest strategies for its tropical tuna fisheries in archipelagic waters. Indonesia is the world’s largest archipelagic nation, contributing more than 15% of global tuna production. The aim of the harvest strategy is to maintain commercial tuna stocks at sustainable levels, while maximising returns. Under the leadership of Indonesia’s Ministry of Fisheries and Marine Affairs, the harvest strategy will also create a more reliable and predictable operating environment for the fishing industry. "As an archipelagic nation, our future depends on us developing harvest strategies to manage our fishery resources effectively,” said Saut Tampubolon, Deputy Director of Fishery Resource Management.
|New promotion to boost Pizza Hut sales|
[16 June 2015] Pizza Hut Malaysia expects its 2015 Ramadhan or fasting month promotion to boost sales by 10% during the period. Senior General Manager, Low Kang Moon, said Pizza Hut will be introducing an Italian-flavoured chicken dish. The promotion is available at all Pizza Hut restaurants in Malaysia until July 21, 2015. Early this year the company launched the Pastry Crown pizza — a combination of Italian pizza with sweet buttery pastry. “When it comes to inventiveness, combining unlikely elements together can either result in a complete mess, or it can lead to something truly amazing. The Pastry Crown pizza is proof of this as we managed to create a combination of tastes that comes together perfectly.”
|CP Prima to increase production, expand market|
[15 June 2015] Indonesia’s largest processed shrimp and aqua feed producer Central Proteinaprima (CP Prima) aims to increase production and expand its market reach this year. During a meeting in Jakarta last week, President Director Irwan Tirtariyadi said with the weakening price of frozen shrimp globally, the company wants to focus on further processed shrimp production. “Further processed products will give us added value and better profit margin,” he said as quoted by Kompas. In order to get higher growth, the company plans to open new markets for its further processed products such as to China, Italy, and Switzerland and Asean countries. In addition the company targets to export 6000 tonnes of aqua feed to India, or 10 times higher than last year.
|China confirms new H7N9 cases|
[15 June 2015] Chinese health officials reported nine new H7N9 avian flu cases last week including one fatality. The newest case is a 61-year-old male resident of Shanghai who is undergoing treatment. The other eight cases were included in a national health ministry update on notifiable diseases. The report also noted a death in May from bird flu separate from the H7N9 cases. The reports raise the H7N9 global total to 681 cases, according to a list maintained by FluTrackers.
|Corn prices down due to poor demand |
[15 June 2015] Corn prices in India have declined due to a sudden drop in demand from the poultry sector, according to US Grains Council report. USGC India Representative Amit Sachdev said prices are down to about USD 169 per tonne. “The decline is attributed to the sudden drop in demand from the poultry sector due to lower placement and high mortality in south India due to heat wave,” he explained. However, he said prices may improve in July. Mr Sachdev pointed out that despite the decline, India will not be able to export corn to Southeast Asia and Bangladesh as prices need to drop further for the country to be competitive and export.
|Enough cattle in Indonesia for Ramadhan |
[15 June 2015] Indonesian Cattle Importers and Feedlotters Association (Apfindo) has said that it is confident that enough cattle are now on feed to fulfil Ramadhan and Idul Fitri requirements, reported Beef Central. Endro Susilo, Apfindo Board Coordinator, said its members collectively had over 200,000 cattle on feed in their feedlots at the beginning of May, which should guarantee sufficient beef supply for the holiday period. Previously in April, the government issued additional import permits for 28,000 head for heavier, ready-to-slaughter cattle. For Q3 2015, meanwhile, Apfindo predicted that permit allocations would be similar to Q3 2014 where the government issued permits for 167,000 cattle, which contained a mix of 133,000 feeder cattle and 34,000 slaughter cattle.
|KFC, Pizza Hut shut indefinitely in Nepal|
[15 June 2015] International fast food chains KFC and Pizza Hut restaurants in Nepal have been shut down indefinitely following a dispute between the management and the local staff over long working hours. “We could not operate in such an environment,” said Rohit Kohli, the company's Kathmandu-based director. There has long been a dispute between the workers and management over working hours. In 2012, the restaurants were shut down temporarily for about a month as staff had allegedly attacked and threatened branch managers over a labour dispute.
Malindo hopes for better results in 2015
Report by ARIEF FACHRUDIN
[12 June 2015]
Indonesia’s leading poultry integrator Malindo Feedmill last year recorded a net sales of USD 338.3 million, an increase of 7.4% over the previous year, the company stated during its public expose yesterday in Jakarta. This increase was fuelled by an 11.6% increase in feed sales worth USD 26 million. However, its gross profit decreased by 55.1% to USD 24.2 million due to low DOC prices and feed raw materials price increase. As a result, the company last year recorded a net loss of USD 6.4 million.
Malindo’s poor show persists in Q1
The unsatisfactory results of Malindo Feedmill in 2014 persisted to the first quarter of this year. Although the company’s net sales increased by 4%, boosted by feed sales, its gross profit decreased by 42% due to low DOC prices and the increasing cost of DOC production. As a result the company recorded a net loss of USD 4.5 million in Q1. Director Rewin Hanrahan told Asian Agribiz that the poultry business will still be challenging for the rest of this year. He mentioned that currency depreciation, economic slowdown and operational cost increase due to the fuel price hike are the main challenges.
Strategies for positive results
To prevent losses, Malindo Feedmill this year will continue to increase production efficiency at all of its operational and production lines. Director Rudy Hartono told Asian Agribiz that the company has also decided to postpone its expansion plans. “Our plans to set up a feedmill in Sumatera and poultry farms in different regions have been postponed. We may realise these plans next year.” Director Rewin Hanrahan added that the company will also better manage feed raw material purchase by monitoring global raw material prices and inventory. With all the strategies, Mr Rudy is optimistic that this year the company will be able to record a 10% growth in revenue.
New feedmill in Sulawesi
During the public expose, Malindo Feedmill also announced that it the construction of its new feedmill in Makassar, South Sulawesi was completed in May this year. This plant cost the company around USD 16.9 million and has an installed capacity of 240,000 tonnes/year (expandable to 360,000 tonnes/year). Director Rewin Hanrahan told Asian Agribiz that east Indonesia is a focused region for expansion. He said that the company has broiler PS breeding farms in South Sulawesi that cater to demand from Sulawesi and Papua.
|JBS to shift to group housing for sows|
[12 June 2015] By 2016, Brazil-based JBS, the world’s leading meat processor and exporter, will no longer use gestation crates and instead use collective housing for breeding sows in its own farms, a report by Meatingplace said. The company said it is supporting its partners to make a similar move, but did not give a timeframe for its suppliers to stop using gestation crates. JBS is the latest in a line of pork producers to make this move, following Smithfield Foods, the world’s largest swine producer, as well as Hormel, Cargill and Maple Leaf Foods. Last year, Brazil’s leading pork processor, BRF, also announced it will phase out the use of gestation crates. The report said the gestation crates are already banned in the EU, Canada and nine US states, while New Zealand and Australia will phase them out by 2015 and 2017 respectively.
|PPA warns of 25% hike in poultry prices|
[12 June 2015] Pakistan Poultry Association (PPA) has warned of a 25% increase in prices as the Federal Government has introduced duties and taxes on poultry feeds in the 2015-16 budget. The government recently imposed a 10% sales tax and 10 % import duty on soybean meal and 5% sales tax on all types of poultry feeds. “The budget has a demoralising effect on poultry farmers and the heavy duty on the import of soybean meal is illogical because it is a basic raw material and is not produced in Pakistan,” PPA Chairman Muhammad Mustafa Kamal said. According to him, this might result in a 25% additional cost to consumers.
|Jammu and Kashmir mulls poultry feed plant|
[12 June 2015] India's Jammu and Kashmir state is planning for a poultry feed plant for the industry in the state. According to State Minister for Animals, Sheep Husbandry and Fisheries the proposed feed plant will employ modern feedmilling technology and will help build the poultry industry in the state. Funding for the proposed plant is expected from the Central Government under the agricultural promotion schemes. The proposal is part of the state government’s effort to make the state self-sufficient in poultry production.
|New Hope Liuhe to invest USD 60m in Asian feed, poultry sector|
[11 June 2015] China’s largest animal feed maker New Hope Liuhe will expand its feedmill and poultry business in 10 Asian markets, the company said recently. New Hope Singapore Pte Ltd, a subsidiary of the Chinese firm, will use a USD 60 million loan from the International Finance Corporation (IFC), a World Bank organisation, to build new projects in India, Lao People’s Democratic Republic, Myanmar and Nepal and expand existing businesses in Bangladesh, Cambodia, Indonesia, the Philippines, Sri Lanka, and Vietnam. The company is focusing on international expansion as growth in animal feed demand slows at home, hurt by weaker economic growth and a clampdown on official spending.
|Probiotech receives USD 3.8m to rebuild facility|
[11 June 2015] The World Bank's International Finance Corporation (IFC) and the Private Sector Window of the Global Agriculture and Food Security Program have disbursed USD 3.8 million to Probiotech Industries, following a commitment announced last year to support the Nepalese private sector more so as it rebuilds itself after the devastating earthquakes. Probiotech is a poultry feed manufacturer that set up the first pellet feed mill in the country. The company will use the funding to finance manufacturing capacity for high-margin value-added products such as soy flour nuggets, and refined oil, and streamline the food supply chain. “Through IFC’s investment and advice, we seek to rebuild this sector and adopt best practices for production efficiency, environmental and social standards, and to upgrade technology,” said Anand Bagaria, Managing Director, Probiotech.
|Soy exports from India set to decline|
[11 June 2015] India's soy exports to Southeast Asia is set to decline due to a rise in domestic demand and stagnation in harvest, Bloomberg reported. Pawan Kumar, Associate Director, Food and Agribusiness Research and Advisory, Rabobank Singapore said Southeast Asian countries will turn to Brazil, Argentina and US for supplies against this backdrop. “India’s crop is not enough to cater to both domestic and export markets,” Mr Kumar said. According to him, India is losing customers because supplies are more expensive than global rates as a result of the crop's non-genetically modified status and lower supply.
|CP Prima records strong Q1 operating results|
[11 June 2015] Indonesia’s largest shrimp processor Central Proteinaprima (CP Prima) reported strong operating results in the first quarter of this year, reported Undercurrentnews. During the period CP Prima recorded turnover (against the same period last year) of USD 170.47 million, up 15.51%. The company’s gross profit was USD 28.4 million, up 23.81, with operating income at USD 4.5 million, up 4.23%. However, financing costs and a heavy loss on the foreign exchange on bonds dragged the company’s bottom line into the red. CP Prima’s increase in sales was driven by feed (up 21.65%), shrimp (up 4.45%) and shrimp fry (up 40.62%).
|Insufficient rain to hit agri production|
[11 June 2015] With the Indian Meteorological Department (IMD) issuing deficient monsoon forecast for the upcoming four-month southwest monsoon season that started in June, agricultural production in India is expected to be affected. “This will be the second year in a row when rains will be deficient and could affect the grain, oilseeds and pulses production in country”, India Representative for US Grains Council Amit Sachdev commented. Poor monsoon rains could lead to inflationary pressure on food crops such as rice, oilseeds, corn and pulses. A normal southwest monsoon brings 70% of India’s total rainfall and even for irrigated agricultural lands strong monsoon is crucial to boost yield and reduce cost of production.
|Singapore, FAO to collaborate on food safety, illegal fishing|
[11 June 2015] Singapore and FAO will work together to improve food and nutrition security in Southeast Asia, with a special focus on food safety and fisheries, according to an agreement. Improving the health and safety of food, including street foods, and combating illegal, unreported and unregulated fishing are key areas in a larger collaboration that will also look at cutting food losses and waste, making trade and agriculture more sustainable, and building resilience to animal and plant-related threats.
|Sneha Farms to commission new plant by year end|
[10 June 2015] India’s Sneha Farms is expected to commission its new chicken processing plant in Telangana state, by the end of 2015.D Varun Reddy, Sneha Farms Director, told Asian Agribiz that the 6000 birds/hour processing plant will be India’s largest and is expandable to double the initial capacity. The USD 16 million facility being developed by Marel Stork Poultry Processing will have 2000 tonnes of cold storage. Commenting on the project, Erik Talens, Area Sales Manager of Marel Stork told Asian Agribiz that the greenfield project incorporates various solutions for high speed automatic evisceration and giblet processing.
|Indon meat processors experience decline in sales|
[10 June 2015] Indonesia’s National Meat Processors Association Chairman, Ishana Mahisa, told Asian Agribiz that in Q1 this year many meat processors experienced a decrease in sales compared with Q4 2014. “The average decrease was around 15%, especially sales in traditional markets. During the period, the purchasing power was weak led by currency depreciation,” Mr Ishana said. However, compared with Q1 2014, most meat processors recorded a small growth in sales. “The main problem in this industry is still the price of meat. If we can get cheaper beef and chicken, we will be able to sell meat products at affordable prices,” said Mr Ishana.
|QL Livestock Farming launches Omega eggs in Sarawak|
[10 June 2015] QL Livestock Farming launched QL Omega Eggs in Sarawak, Malaysia recently. According to Mark Chia Mak Hooi Managing Director, the eggs are produced with feed enriched with fish oil, flax seed oil and vitamin E, through enhanced bio-security and stringent quality screening processes. He said the eggs contain more than 10 vitamins and minerals, high quality proteins and low saturated fat such as EPA and DHA. “We will continue to invest in nutrition research, farming technology and product development to bring quality food products to customers,” he said. QL Livestock Farming is the largest egg producer in the Asean region with almost five million eggs produced daily across Malaysia, Indonesia and Vietnam. QL also produces a full range of premium frozen chicken products at affordable prices.
|KFC China files suit against rumour mongers|
[10 June 2015] Encouraged by the Chinese government's intensified campaign to stop the spreading of false information, KFC has filed a lawsuit against three companies that it says used social media accounts to spread false rumours about its food, including that its chickens have eight legs. KFC, China’s biggest restaurant operator, has had major setbacks with other issues relating to food safety in the past. In an announcement posted last week on its Chinese website, KFC said one of the most prevalent fake stories was one claiming chickens used by the company are genetically modified and have six wings and eight legs.
|Shrimp exports from Mekong Delta down 32% |
[10 June 2015] Shrimp exports from Vietnam's Mekong region fell 32% in the first five months of the year because of a slump in demand from Europe, Australia, Japan, and Korea. Vietnamese shrimp also has to compete with products from Thailand and India. The decline has pushed prices down in the delta, posing a big challenge for shrimp breeders, Sai Gon Giai Phong newspaper quoted Deputy Chairman of the Ca Mau People's Committee, Le Dung, as saying. Due to the low demand Vietnamese exporters shipped large quantities to the US, causing prices there to go down sharply. To cope with competition, Mr Ca Mau asked authorities to help with information about market demand, prices, and types of goods in demand to help exporters and farmers/buyers.
|Betagro to open more Bee Cheng Hiang stores in Thailand |
[09 June 2015] Betagro Group of Thailand plans to open more Bee Cheng Hiang outlets, a famous brand of barbequed pork, or Bakkwa from Singapore. The first outlet that Betagro launched has received impressive response. “We plan to open around two to three shops per year,” Betagro Group’s Senior Department Manager for Operation Piyaporn Taepaisitphongse told Asian Agribiz. Betagro brought Bee Cheng Hiang to the Thai market via a franchise agreement. It set up Betagro Bee Cheng Hiang Co Ltd to operate this premium brand. The first flagship Bee Cheng Hiang store in Bangkok opened in late March. Betagro expects Bee Cheng Hiang to generate around USD 900,000 a year in sales.
|Pronic Indonesia to triple its probiotic chicken production|
[09 June 2015] Pronic Indonesia, a producer of probiotic (broiler) chicken under the Probio Chicken brand, plans to triple its production by 30,000 carcasses per month. Atanasius Harpen Tulis, General Manager, told Asian Agribiz that its product is gaining ground, especially in big cities where medium and high-class consumers work and live. “The demand for antibiotics and hormone-free chicken in Indonesia is growing along with income growth and awareness of healthy food products,” he said. Probio Chicken is sold at a premium price of around USD 3.74/kg. Mr Atanasius revealed that within the next five years he plans to set up a chicken processing plant in West Java to have better control on carcass quality. “At the moment we cooperate with QL Group Indonesia to slaughter our chickens,” he added.
|San Miguel Foods exports chicken to South Korea|
[09 June 2015] The Philippine Department of Agriculture (DA) announced yesterday that San Miguel Foods Inc shipped 11 tonnes of frozen chicken to South Korea last Friday. DA Assistant Secretary Davinio Catbagan said the shipment is expected to arrive in South Korea today. The Philippines, which remains free of avian influenza, has been negotiating with several countries to ship their chicken products. Meanwhile, DA Secretary Proceso Alcala said that the DA is looking to take advantage of the Japan-Philippines Economic Partnership Agreement, under which the Philippines could export pork to Japan at a lower tariff. According to DA Undersecretary for Livestock Jose Reaño, the country will soon start negotiations with Tokyo for pork exports.
|No immediate threat to Indian poultry industry|
[09 June 2015] Although the WTO's appellate body upheld the panel’s report against India, industry players feel there is no immediate threat. GB Sundararajan, Managing Director of Suguna Foods Ltd said that there will not be any immediate impact on the industry as the consumer market in India is largely driven by whole chicken. According to him, in India almost 96% of retail consumption is of live birds and hardly 4-5% of frozen chicken meat. “We may see an impact in about two years,” he said.
|Whiteleg shrimp leads seafood exports for Vietnam|
[09 June 2015] In the first four months of the year whiteleg shrimp remained Vietnam’s main export item despite its 29.3% year-on-year decline in export value. Accounting for almost 60% of Vietnam’s total shrimp exports, whiteleg shrimp export was valued at USD 340 million, reported Vietnam Association of Seafood Exporters and Producers. Black tiger shrimp exports, meanwhile, dropped by 31.6% to USD 178.1 million. Vietnam is the world's leading producer of black tiger shrimp with a production of 300,000 tonnes per year. Whiteleg shrimp has been cultivated in different provinces in the country since 2008. According to the association shrimp exports last year reached USD 3.95 billion, up 27% over 2013. Whiteleg shrimp exports doubled the sales of black tiger shrimp to reach USD2.3 billion, up 46.3% over 2013.
|US confident of new market in India|
[09 June 2015] The WTO’s ruling backing exports to India has instilled confidence in the US poultry industry. It will help lower trade barriers and open new markets for US farmers, according to US officials. Welcoming the WTO decision, US Trade Representative Michael Froman in a statement said that this will help eliminate unjustified trade barriers so US farmers can sell high quality US agricultural products to customers around the world. US Secretary of Agriculture Tom Vilsack said that this is a major win for US agriculture, in particular, the US poultry industry.
|De Heus plans for feedmill in Indonesia|
[08 June 2015] Netherland-based De Heus plans to have a feedmill in Java, Indonesia. Jan Cortenbach, Chief Technical Officer of De Heus-Wellhope, told Asian Agribiz that the company hopes to realise the plan within a year. Setting up a new plant and acquisition are options being considered. An acquisition will only push through if there is a good feedmill that meets its requirements and standards. Mr Cortenbach said it plans to produce aqua (shrimp and fish) feed. “Aquaculture is a vibrant sector in Indonesia and offers good potential,” he said. Besides, it will also produce dairy cattle feed. “We have good knowhow in this sector and we want to transfer this to farmers in Indonesia,” he said.
|India loses WTO appeal against US imports|
[08 June 2015] An appellate body of the World Trade Organisation (WTO) has upheld the rule of a WTO panel that India's ban on American poultry product imports was inconsistent with international norms. In January 2015, India filed an appeal with the Dispute Settlement Board of the WTO against the ruling passed by a panel in October 2014. The appellate body also endorsed the panel's finding that India's avian influenza measures violated global norms on the grounds that the prohibition was limited to just one country and not to all imports from any country with avian influenza risk. India will have 12-18 months to implement this ruling, after which the US can begin exports of poultry products to India.
|ADM builds fourth premix plant in China|
[08 June 2015] Archer Daniels Midland Company is building a new feed-premix plant in Zhangzhou, southern China, bringing to four the number of plants in the company’s premix network in the country. “Demand for safe, high-quality animal feed in China is growing, and we are expanding our feed business there to meet that demand,” said Brent Fenton, President, ADM Animal Nutrition. The plant, to be completed in the fourth quarter of 2016, will manufacture a range of premixes that will contain various vitamins and minerals, amino acids such as lysine and threonine, and special feed additives, among other ingredients. It will produce about 30,000 tonnes of premix products per year, which will also provide 80,000 tonnes of additional capacity for the production of complete feeds and concentrates. “This plant will serve Fujian, Guangdong, Guangxi and Hainan,” said Mr Fenton.
Seminar on best farming practices in Indonesia
Onsite report by ARIEF FACHRUDIN
[08 June 2015]
In line with its vision to share knowledge and technical advances to improve the livestock industry, the organisers of Ildex Indonesia held the Best Farmer Practice seminar in Jakarta last week. The event served to promote the show which will be held at JI Expo in Jakarta from October 8-10, said Manuel Madani, VNU International Sales Manager. Ildex Indonesia will focus on feed-to-meat solutions and integrated farming solutions, as well as support international collaboration.
Challenges in the hatchery
The current challenges in the hatchery industry are food safety, animal welfare and sustainability, according to Bouke Hamminga, Pas Reform Director of International Sales and Business Development. The challenges require industry players to have better hygiene, information technology, track & trace and hatchery automation. Mr Hamminga said to help industry players Pas Reform has developed SmartCenterPro that enables hatchery managers to make well-informed decisions for the future refinement and development of incubation programing, hatchery management and maintenance schedules. In addition, the technology supports the hatchery to meet traceability demands of its customers.
Solving on farm problems
Jan Cortenbach, Chief Technical Officer of De Heus-Wellhope, said every farm, even the best ones face problems. But the difference between a good and a bad farm is that the good ones will detect it much earlier and will take the appropriate measures. “Gather the correct information by listening to what the birds tell you. Take time to learn the poultry language, and this can only be done in the poultry house, not in the office,” said Mr Cortenbach. He spoke about the importance of poultry pre-starter feed to stimulate a healthy gut flora. “Early development is important to achieve good results. If weight development is under target, pre-starter feed will offer benefits and is cost effective,” he said.
Shift in current poultry breeding goals
According to Willie Blokvoort, ISA Sales Manager for Indonesia and the Philippines, there is a shift in current poultry breeding goals. In the past the goals were on production efficiency and parent stock efficiency, but now the goals also include product quality and health & welfare. “ISA as a leading layer genetic company is responding to the trend and improving the genetics of our layers,” said Mr Blokvoort. The current breeding goals of ISA are to increase earnings for the egg value chain by delivering excellent products, to produce quality food and to support sustainable operations and improve the welfare of animals," he said.
Common indicators of mycotoxicosis
Representing Biomin, Prof Charles Rangga Tabbu, an expert in pathology from Indonesia’s Gadjah Mada University discussed mycotoxicosis in poultry. According to him, the common indicators of mycotoxicosis are: 1) if a group of chickens that consumed the same feed/ingredients are affected, 2) there is no signs of disease transmission between chickens, 3) antibiotic treatment has little or no effect on the disease, 4) field outbreaks are seasonal and associated with specific feedstuffs, and 5) examination of the suspected feed reveals signs of fungal activity.
Combi tunnel versus pure tunnel
Devan Krishnan, Big Dutchman Technical Sales Advisor-Climate, compared the minimum ventilation of combi tunnel versus pure tunnel. Results from trials (period: from day 1 to day 34) showed that birds raised under the combi tunnel system had better weekly bird weight and FCR. In addition the system saves power and heat. Mr Krishnan said during the trials, the birds were well spread in the house under the combi tunnel system, which in turn resulted in better bird uniformity.
Time to invest in processing
It is undeniable that the popularity of fast food and ready meals has grown in Indonesia, said Rudy Hudin, Country Manager Indonesia of Marel. At the same time, he added, time spent on cooking at home is decreasing. He said in the US, the further processing value is increasing while the whole bird value continues to decrease, “and this trend will also happen in Indonesia.” Looking at this phenomenon, Mr Rudy said poultry producers should invest in processing. “The live bird market is open to steep price fluctuations that limits profits. In the processed/further processed products market, the profit margin is stable and high.” However, he advised producers not to be ‘me too’ players. “We have the technology to help them innovate and generate new products.”
|Vietnam feed companies muscle for bigger market share|
[05 June 2015] Local animal feed producers in Vietnam are keen to grab a larger share of the feed market from their foreign counterparts. According to Tuoitrenews.vn, Masan Group recently announced an ambitious plan to take 50% of the local market share in the next five years. It recently acquired Sam Kim Co Ltd, renaming it Masan Nutri-Science Co Ltd. Masan, now with subsidiaries in Proconco and Anco, has become the second largest company in the local feed market. Hanoi-based Hoa Phat and Hung Vuong in Tien Giang Province of the Mekong Delta are also names to look out for. Hoa Phat has a capacity of 300,000 tonnes per year and aims for a 10% market share in the next five years while Hung Vuong is considering M&A to grow its business. Currently, demand for animal feed in Vietnam is 16mt, worth about USD 6 billion per year, and expected to reach 25-26mt by 2020.
|New feed, hatchery and poultry breeding unit in Puducerry|
[05 June 2015] India’s Rajiv Gandhi Institute of Veterinary Education and Research has launched a new feedmill, and poultry and hatchery unit at Kurumbapet, Puducerry. The mill is expected to roll out up to 6 tonnes of poultry feed on an eight-hour shift. The plant will have a feed grinder, feed mixer, motor control centre and other equipment. The feed will be rolled out in 250kg bags each and will later be sold loose to farmers. The unit will also establish parent stock of the Giriraja breed and a hatchery, to supply chicks of this dual purpose breed of chicken to rural farmers. By supplying poultry feed the institute hopes to help encourage small farmers to take up poultry farming, and provide a sustainable income through the sale of eggs and chicken meat.
|Indonesia still needs imported beef, cattle|
[05 June 2015] Newly elected Director General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture, Prof Muladno said it’s undeniable that the country still needs to import beef and cattle as local supply and demand are not balanced. “Without imports, our local cattle stocks will run out.” Prof Muladno, chose to be realistic about the beef self-sufficiency program. “It’s not easy to reach the target in the near future, it may even take up to 30 years. But to quicken this, we need to import superior breeding cattle from abroad.”
Sneak preview of Asian Poultry Magazine, June 2015
[05 June 2015]
Sunfresh Farm rises on good management and nutrition
In just a few years, Sunfresh Agricultural Ventures, a layer farm in Mindanao, Philippines, more than tripled its size. ISA Q TAN writes that much of the farm’s successes lay on good management and its strong relationship with its nutrition provider.
You cannot sell a percentage!
In an integrated broiler operation, money is only truly made at the back door of the plant when the product is sold in kilograms or pounds to the customer, writes DOMINIC ELFICK. Many integrators today operate a profit centre model to help each department or phase of the production cycle to focus on maximising their potential and profitability.
High farming standards breeds success for quail farmer
William Ho, Lian Wah Hang Farm Pte Ltd’s Managing Director, dispels misconceptions on quail meat and eggs, and gets Singaporeans to add protein variety to their meals, RACHAEL PHILIP writes.
Rohini Minerals to maintain lead with R&D
With a strong R&D division, Rohini Minerals based in South India aims to improve the quality of its poultry feeds and maintain its competitive edge. ARIEF FACHRUDIN also learns that the company embraces modern technology for its feed milling and quality control facilities.
Optimising broiler performance in open-sided housing
In Asia, broilers are still commonly raised in naturally ventilated open-sided housing. The main dilemma is how will the producers in these farms be able to maximize the genetic potential of the current broilers? In this article, RAUL ELIAS LOPEZ discusses some points which may help producers to get the benefit of the improved genetics in open-sided housing.
Reducing feed induced immune response from galacto-mannans in sbm
Feed Induced Immune Response (FIIR) is a recently recognised phenomenon in animal nutrition. The use of enzymes to control this occurrence is likewise a fairly new concept in feed enzyme use explains SARAH CERVANTES-PAHM and MARCO MARTINEZ. β-mannanase enzymes can minimise the metabolisable energy loss caused by FIIR from β-mannans, allowing more energy to be available for growth and performance.
Greater specificity for mycoplasma monitoring
Routine mycoplasma monitoring can help avoid production losses and animal health costs associated with infection, but not all tests are created equal. New studies show that greater test specificity pays report CHAVALIT PIRIYABENJAWAT and YANG ZHAO.
|Thailand’s Sun Group plans new feedmill |
[04 June 2015] Sun Group of Thailand, plans to construct a new feedmill in the next three years, CEO Chamlong Termglinchan told Asian Agribiz. “By 2017 we plan to set up a new feedmill that will be fully automated to reduce reliance on human labour,” he said. The new facility will have a capacity of 300,000 tonnes/year, complementing the existing mill churns out feed production at 500,000 tonnes/year. The new feedmill will have two processing lines and both will be antibiotic-free lines. Sun Group produces around 1 million DOC per week and slaughters around 100,000 birds/day.
|Chicken prices increase due to heatwave |
[04 June 2015] With the death of over 7 million poultry due to the heatwave in India, chicken prices have increased by USD 1.49/kg. Valsan Parameswaran, Secretary of All India Poultry Exporters Association told Asian Agribiz that the increase in price is also attributed to the beef ban imposed by a few states in India. With chicken being the most popular meat in India, consumers are feeling the pinch. However, the onset of the southwest monsoon set to begin in the first week of June is expected to bring some relief to the poultry industry as temperatures will go down.
|Busung Farms upgrades breeder hatchery|
[04 June 2015] South Korea’s Busung Farms Co Ltd has upgraded its Busung breeder hatchery, replacing its previous installation with Pas Reform’s SmartPro single stage incubation for better hatchability and chick quality. The company carries Ross, Arbor Acres and Indian River DOC for its own HapDeok, GoeSan and BaRan breeder farms. South Korea’s poultry sector has experienced steady growth in recent years, with increased parent stock production to meet anticipated growth in demand as poultry is a less expensive alternative to beef and pork.
Grain & Feed Asia Conference in Jakarta, Indonesia
Report by ARIEF FACHRUDIN
[04 June 2015]
Feed wheat use to remain stagnant in 2015/16
World wheat production in 2015 could decline by 1.4% from last year's record output due to uncertainties like El Nino, geopolitical risks and economic conditions, said Mark Smulders, Senior Economist and FAO Representative to Indonesia. “As one of the main wheat producers China could produce a bit more this year. However, higher production levels are expected in the US,” he said. The use of wheat for feed, meanwhile, increased sharply in 2014/15 by 8.5%, but will remain stagnant in 2015/16, and inputs may be down slightly in Asia. “Feed wheat use in China is up 2 million tonnes annually, but the stock is down,” Mr Smulders added.
Canola & dehulled lupin meal as alternative feed ingredients
Asia’s growing animal protein consumption is driving demand for feed grains and protein meal in the region, said Neoh Soon Bin, CEO of Malaysia’s Soon Soon Oilmills. Southeast Asia alone currently produces around 60 million tonnes of animal feed with poultry and pig as the main species. However, Mr Neoh said the region is short of protein meals and relies too much on imported SBM. With this in mind, he said the region needs alternatives. From its research and trials, Soon Soon Oilmills found that canola meal and dehulled lupin meal are the best alternatives as they contain high AME and digestible amino acids.
Pulau Sambu promotes copra meal for local market
Indonesia’s PT Pulau Sambu - Kuala Enok is currently trying to sell its copra meal in the local market. The company has a production facility in Riau, Sumatera and produces coconut milk and oil and the by-product copra meal. “Our copra meal is exported to Korea and they use it for pig feed. Now we are also targeting local markets for poultry and pig feeds,” Kenneth John Macleod, Business Development, told Asian Agribiz on the sidelines of the conference. He said for poultry feed copra meal can be used at around 1-2% as a source of protein and energy.
World coarse grain production to decline by 2.6%
World coarse grain production this year is predicted to decline by 2.6% from last year's record, according to Mark Smulders. The decline is to happen in all regions except Oceania and Asia where it could increase slightly. Mr Smulders said the decline would be due to moderate to severe El Nino challenges that will last until 2015 and will result in low planting.
More food needed for population in 2050
The world population in 2013 reached 7.2 billion, and in 2050 the figure is forecast to increase to 9.6 billion. Mark Smulders said the world population increase means that demand for food will be higher. “People will consume more, especially animal protein sources,” he said. “We have to increase agricultural production by 60% globally, and by 100% in developing countries.” Sources of the increased production could come from yield shifts, intensification and land expansion.
|Thai pig prices rise on drought, disease |
[03 June 2015] Pig prices in Thailand have been rising buoyed by the heat and Porcine Epidemic Diarrhoea (PED), said Surachai Sutthitham, President of the Thai Swine Raisers Association. Prices of live pigs have increased to USD 2.04-2.11/kg from around USD 1.84-1.87/kg in April. Retail price of pork has increased to USD 4.45/kg from around USD 4.09/kg in April. “The drought has slowed down pig growth while PED in several farms, especially in the north-eastern region in the beginning of the year have caused the death of up to 30% of piglets,” he said. Pig and pork prices are expected to decline in the coming rainy season, he added.
|Pacific West wins product innovation award|
[03 June 2015] Malaysia’s Pacific West Oven Baked Fish Fillets clinched the Malaysian Institute of Food Technology Product Innovation Platinum Award 2015 last week, Paul Loo, Pacific West Foods (M) Sdn Bhd Branding Support Executive, told Asian Agribiz. The award recognises Malaysian food processors and manufacturers in their effort towards producing outstanding food products. Judging criteria included its sensory attributes, technological innovation, nutrition and wellness, consumer appeal, packaging, material and design. Pacific West is the premium brand of Golden Fresh. The company sources its raw products from well-managed fisheries and processes them at its world-class facility in Penang, which is capable of processing over 8000 tonnes of frozen value-added seafood products annually.
|Taiwan continues to battle H5N2, H5N8 outbreaks|
[03 June 2015] Taiwan reported four new H5N2 outbreaks and one H5N2 incursion to the World Organization for Animal Health (OIE) on May 29. The country has reported numerous outbreaks of the two viruses on poultry farms over the winter and this spring. The four H5N2 outbreaks affected close to 55,000 while the H5N8 outbreak struck a farm housing 12,000 chickens. In line with Taiwan's standard procedures, farms within 3 km of the affected ones will be under intensified surveillance for three months, officials said.
|Indonesia revitalises idle shrimp ponds|
[03 June 2015] Revitalising idle ponds is one strategy by Indonesia’s Ministry of Fisheries and Marine Affairs this year to increase shrimp production. The ministry has targeted this year’s shrimp production to reach 785,900 tonnes, an increase of 32% over last year. Recently the ministry revitalised around 13,000ha of idle ponds in North Mamuju, West Sulawesi. “This region has potential to increase national shrimp production. With good farming practices supported with good fries and feed, we can harvest 6 tonnes/ha/year,” said Slamet Soebjakto, Director General of Aquaculture.
|South Korea to scrap tariffs for shrimp from Vietnam|
[03 June 2015] South Korea will eliminate tariffs for seven types of shrimp imported from Vietnam beginning next year. The quota for 2016 is 10,000 tonnes. By 2020, Vietnam will be permitted to export 15,000 tonnes of shrimp annually without the imposition of import duties. Currently, Vietnam can only ship 2500 tonnes without import taxes under the Asean Korean FTA. According to the Vietnam Association of Seafood Exporters and Producers, the South Korea market is the fifth largest consumer of Vietnamese shrimp, after the US, Japan, EU and China. Vietnam also overtook China to become the largest shrimp supplier to the republic last year when it imported 27,791 tonnes from Vietnam.
|East Kalimantan to import BX cattle from Australia|
[03 June 2015] Indonesia’s East Kalimantan province plans to import 11,000 Brahman crossbred (BX) cattle from Australia. The local government recently held a meeting with several Australian business institutions such as the Northern Territory Cattlemen’s Association and the Northern Territory Livestock Exporters Association. Dadang Sudarya, Head of Animal Husbandry Agency in the province, said Australia has paid close attention to the cattle specifications requested by the East Kalimantan government, such as the requirement that 40% of the cattle are pregnant. “Once the cattle arrive, we will distribute them to farmer groups to support the cattle-oil palm integration program and the cattle integration program in former coal mining areas,” he said.
|Sido Agung inaugurates fifth mill |
[02 June 2015] Indonesia’s Sido Agung Agro Prima last week inaugurated its new feedmill in Cirebon, West Java. The mill, which will produce mainly poultry feed, is the company’s fifth. It will service markets in Banten, Jakarta, West Java and Central Java. Bram Sebastian, Operational Director, said the mill cost the company around USD 49 million. “It has an installed capacity of 300,000 tonnes/year. With the addition of this new mill, our total capacity has increased to 900,000 tonnes/year,” Mr Bram said, adding that the other four feedmills are located in Sidoarjo and Pasuruan in East Java, Makassar in South Sulawesi and Magelang in Central Java.
|Avian Flu challenging global trade |
[02 June 2015] The global trade streams and poultry prices are expected to remain under pressure for the remainder of 2015, due to the impact of avian flu stated Rabobank in its Poultry Quarterly Q2 report. The long-term impact may be significant due to several trade bans. "Poultry industry fundamentals are facing meaningful headwinds with stronger than expected feed prices due to a strong US dollar, increased competition from falling pork prices and restrictions on trade," says Rabobank animal protein analyst Nan-Dirk Mulder. "Prices for whole chicken, leg quarters and chicken feet are declining further, while breast meat prices remain relatively strong." The report stated that many countries in Asia, including China, who have implemented restrictions on trade on breeding stock might be affected by low supply next year due to expected future shortages in local breeding value chains.
|Indonesian poultry stocks back to prospective |
[02 June 2015] In the face of school holidays and Ramadhan, the stocks of Indonesian poultry companies are back to prospective status. Taye Shim, Research Head of KDB Daewoo Securities, said during the period poultry products consumption will escalate. “We have seen the price of poultry products such as chicken and eggs reverting to normal. So this is the right time for investors to back the poultry sector,” he said. Besides, Mr Taye also sees clear income visibility of the sector due to the increase in selling prices and production volumes in the next two to three months. Poultry companies that are listed in Indonesia’s Stock Exchange are Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Malindo Feedmill and Sierad Produce.
|Canada detains corn imports from India|
[02 June 2015] The Canadian Food Inspection Agency has detained corn shipments from India after the agency found high levels of aflatoxin, a toxic element linked to various diseases. In a notice, the agency informed that this measure was necessary to prevent contamination of livestock feed and to protect Canadian livestock and public health. The agency will detain all incoming shipments of corn from India, including organic corn, intended for use as livestock feed until it has been tested for aflatoxins. “Importers must sample the imported corn upon arrival in Canada and provide test results to the agency,” the notice said.
|Altor and Goldman Sachs to acquire Hamlet Protein|
[02 June 2015] Altor Fund IV and Goldman Sachs Merchant Banking Division are partnering to acquire the majority of Hamlet Protein from Polaris Private Equity and the founder of the company, Ole K Hansen. Hamlet Protein, a global provider of soy-based protein solutions used in high value-add animal feed for young animals, services more than 50 countries from its two production facilities in Horsens, Denmark and Findlay, Ohio. Søren Munch, CEO of Hamlet Protein said: “With the strong support of Altor and Goldman Sachs Merchant Banking Division we are uniquely positioned to accelerate the development and growth of Hamlet Protein and better service our customers and partners globally.”
|Malaysia exports frozen chicken to Japan|
[01 June 2015] Malaysia has resumed shipping frozen poultry meat to Japan. “On April 1 three containers of frozen chicken meat was shipped to Japan from one processor in Perak,” Dr Kamarudin Md Isa, Deputy Director General (Veterinary Health), Department of Veterinary Services, Malaysia, told Asian Agribiz. “There are a total of 13 processors from the states of Perak, Selangor, Negeri Sembilan and Malacca who are able to export to Japan. They are in the process of finding their own importers in Japan.” He said Japan has agreed to import poultry from Malaysia because the country has been free from bird flu disease since 2007. Japan is also satisfied with the compartmentalisation practice where Newcastle disease is concerned. “The import requirements are stringent in Japan. The country wants quality and safe food. Japan is also developing its halal market in the light of the 2020 Olympic Games.”
|Heat waves claim 7 million birds in India|
[01 June 2015] An unprecedented heat wave in Telangana and Andhra Pradesh states in India led to the death of about 7 million birds last week. G Ranjith Reddy, President of Telangana Poultry Breeders Association told Asian Agribiz that the poultry industry has incurred losses to the tune of USD 16 million because of the weather. According to him, temperatures touched 49 degree Celsius in some parts of these states paralysing normality. “This has come as a shock to the poultry industry in this region, which is recovering from an avian influenza outbreak,” he said.
|Fast Food Indonesia optimistic of 12% growth in Q2|
[01 June 2015] Fast Food Indonesia’s income in Q1 2015 did not reach the growth target of 7-10%. The operator of KFC in Indonesia only recorded around USD 76 million or an increase of 3.4% compared to the same period last year. Director Justinus Dalimin Juwono said the income growth slowed down due to the weak purchasing power caused by currency depreciation and raw material price increase. “However we are optimistic that income in Q2 2015 will escalate by 10-12% led by school holidays and Ramadhan,” he said. Mr Justinus revealed that in Q2 the company will open 12 new outlets in Jabodetabek, Central Java, East Java and Sulawesi. Meanwhile in Q1 it opened 13 new outlets in the same regions. Mr Justinus also said that the company plans to improve its online order & home delivery system.
Brighter days for pork industry in SEA/China
[01 June 2015]
Weather, diseases, costs continue to weigh on the pig industries in Southeast Asia and China, but brighter days might be in the offing for producers. Read this as well as a comprehensive report in Asian Pork Magazine this June
Prices to remain stable
Farm prices of hogs and retail prices of pork in the Philippines have remained stable since the beginning of the year, and despite the expected drop in consumption in the third quarter when the rainy season sets in, prices will likely remain stable. Edwin Chen, President of the Pork Producers Federation of the Philippines, told Asian Agribiz that the current rate at which traders are now buying live pigs might mean a tighter supply in the third quarter. Even the supply of culled sows and oversized pigs is down. “This could mean that despite lower demand during this period, we may not see prices reducing,” he said.
Hot weather pulls down supply
The hot summer weather that has led to lower pig weights and a decline in overall pork supply in Thailand. Coupled with farmers’ earlier bouts with PEDv and PRRS, this has kept farm prices of pigs steady at a “fair level,” Surachai Sutthitham, President of the Swine Raiser Association of Thailand told Asian Agribiz. The onset of the rainy season, however, is expected to improve farm conditions and animal performance. Meanwhile, pig farmers in northeast Thailand say prices are likely to remain steady and may even increase in the next 3-4 months, boosting demand for commercial piglets.
Festivals to push up pig demand in Indonesia
Indonesian pig producers can look forward to a better second half thanks to festivals that are happening in various parts of the country. In Bali, the Galungan festival in June/July is expected to push up demand for pigs, Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia told Asian Agribiz. Similarly, pig farmers in North Sulawesi, who suffered low prices last year, reduced their sow population. Thus the province now has insufficient pork and prices have since gone up. Mr Phaithoon predicted prices would continue to go up in the province, especially from June to September, when traditional ceremonies requiring large numbers of pigs, are celebrated. “Each ceremony usually requires more than 1000 pigs, so this is a great opportunity for farmers and I see that they there are already prepared for this.”
Some relief for China
After falling almost continuously since September 2014, China’s pork price reversed course in late March, offering some relief to hard-pressed farmers facing persistent negative margins. The USDA office in Beijing forecast an 8% reduction in China’s pig production this year. Lower feed prices are expected in 2015 going forward, partly due to reduced demand from a smaller herd, which with the rising pork price may allow producers to make some money this year. However, prices also rose for a period last year, but never reached profitable levels for producers. “It’s the same trend as last year, but the curve (of price increases) is not as steep as last year,” Michael Ellermann, a partner at Carthage MHJ (CMHJ), a swine consultancy based in Suzhou, China told Asian Agribiz, adding that price will likely “follow the same pattern as last year, and peak in August or September.
Vietnam pig producers to maintain profitability
While prices of live pigs have declined in Q2 this year, Vietnamese pig farmers remain profitable as lower feed prices have helped keep production costs down, a report by Rabobank said. Meanwhile, the Ministry of Agriculture and Rural Development forecast a 2.4% increase in output this year to 3.37 million tonnes. Despite the challenges it still faces, Vietnam’s pig industry is in transition and is witnessing investment in genetics in order to improve farm-level efficiencies. Rabobank said that despite the growth in production, the supply/demand situation in the country remains in a balance.
|Saha Farms creditors approve rehabilitation plan|
[29 May 2015] Major creditors of Thailand’s indebted poultry integrator Saha Farm voted earlier this week to approve the rehabilitation plan proposed by its assigned debt restructuring planner Ernst and Young Corporate Services Limited Thailand. Up to 67% of the creditors including banks, farmers, suppliers, employees and others, and 76% of creditors of its subsidiary Golden Line Business approved the plan. The rehabilitation will be completed when Saha Farms and Golden Line Business return monies owed to their creditors within seven and 10 years respectively. The Bankruptcy Court agreed in July last year that Saha Farms and Golden Line Business enter into the rehabilitation process. Its major creditor Krung Thai Bank extended a loan for cash flow, allowing the company to resume operation at much smaller level.
|QL Resources declares strong Q4 results|
[29 May 2015] Malaysia’s QL Resources Bhd announced that its net profit for the fourth quarter ended March 31 2015 jumped 21% year-on-year to USD 12.83 million. It attributed this to higher contribution from its integrated livestock farming and marine products, which surged 53% and 41% respectively. Revenue rose 9% year-on-year to USD 181.73 million, boosted by sales of its marine products. For the full year the company’s net profit increased 19% year-on-year to USD 52.33 million. Revenue increased 10% to USD 741. 58 million. Segmentally its marine products division contributed 51.4% to the group’s pre-tax profit followed by integrated livestock farming (43.3%) and palm oil plantation (5.3%).
|Indonesia to develop mariculture|
[29 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs has said that besides freshwater fish production, it is also focusing on increasing the production of mariculture as its commodities have huge potential in the global market. “Mariculture products have high economic value as they have immense global market potential and good export prospects,” said Slamet Soebjakto, Director General of Aquaculture, adding that the government needs to develop fishery zoning to facilitate the development of mariculture. He explained that fish commodities to be developed in the zoning system will be adjusted to the local conditions. Fish species will include snapper, grouper, pomfret, starfish and abalone.
Asian Agribiz regional dairy update
[29 May 2015]
Amul to have 1000 more franchisees by 2015
Indian dairy major Amul plans on having 1000 more franchisees by December 2015 to expand its distribution network. R S Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF) that markets Amul said exclusive retail outlets is the only way to showcase their entire range of products. "Franchising is a logical method of expanding,” he said. Amul has been expanding its franchise since 2001 and has 8000 franchisee run and 125 company owned units in more than 2000 towns in India.
Dairy equipment market estimated at USD10b
The global dairy processing equipment market is projected to reach USD 10.4 billion by 2019, growing at a CAGR of 5.3% from 2014 to 2019. According to the Dairy Processing Equipment Market by Equipment Type, Application and by Region - Global Trends and Forecasts to 2019, the market is growing in accordance with the increasing demand for dairy products and the technological advancements in dairy processing equipment. It is driven by the rise in consumption of dairy products and particularly the increase in demand for milk powders and protein concentrates. The market for dairy processing equipment in Asia Pacific is estimated to be the fastest-growing market from 2014 to 2019. In 2013, the region emerged the largest dairy processing equipment market, dominated by Australia. It lists IDMC Limited from India as a key player in the industry among Switzerland’s Tetra Laval, Sweden’s Alfa Laval, US’ SPX Corporation and Germany’s GEA Group.
Pakistan may increase import duty on milk powder
Pakistan is considering increasing the import duty on milk powder and whey powder to protect domestic dairy players. At present, 20% duty is imposed on these products from SAARC (South Asian Association for Regional Cooperation) countries and 25% on imports from other countries. Based on representation by the Ministry of National Food Security and Research, the federal Finance Ministry is expected to increase the import duty in the upcoming budget. According to local industry players, dumping of dry milk powder from around the world has affected dairy farmers and milk production.
Parag to focus on value added dairy products
Indian dairy player Parag Milk Foods Pvt Ltd will focus on value added products such as cheese and ghee to fuel its growth. Both accounted for nearly half of the company's turnover in the last financial year, which was about USD 235 million. Chairman of Parag Milk Foods Devendra Shah said that the company is also betting on the dairy beverages space which has an estimated market size of about USD 861 million and is growing at 25% in volume terms every year. Parag Milk Foods recently launched new varieties of dairy beverages.
Dutch Lady’s Q1 profit down 26%
Malaysia’s Dutch Lady Milk Industries Bhd registered a 26.2% year-on-year drop in net profit to USD 4.688 million for its first quarter ended March 31 2015 on lower revenue and increased marketing investments to support its relaunch activities. Revenue for the quarter fell 13.5% to USD 54.12 million. In a filing with Bursa Malaysia the dairy products manufacturer said its business environment is expected to remain competitive against the backdrop of less robust consumer confidence. “Despite the ongoing business challenge for 2015 the company remains committed to leveraging the strength of the Dutch Lady brand with the introduction of the Dutch Lady Purefarm range and the relaunch of Dutch Lady Childrens' Formula Milk.
Amul to support Mongolia’s dairy sector
Gujarat Cooperative Milk Marketing Federation (GCMMF) is all set to support the dairy sector in Mongolia to develop an effective milk procurement system. According to an agreement between GCMMF and the Institute of Technology of Mongolia, Amul will work with Mongolia’s cooperative sector and milk processors to restructure the dairy industry. Amul will help develop training programs on management of bulk milk cooling systems, clean milk production and animal health.
|TGM will start test run at new plant in June |
[28 May 2015] Thailand’s meat processor Thai German Meat Product Co will start test runs at its new meat processing plant next month, Managing Director Chantana Puapattanakajorn told Asian Agribiz. The new plant, located at the same site of the existing facility, will produce varieties of ham at a capacity of 50 tonnes per day, she said. “Initially, this plant will produce only hams. Sausages and other products will be added later,” she said.
|GoGo Franks grows to 19 outlets in Indonesia |
[28 May 2015] Singapore’s GoGo Franks, a premium sausage retail outlet, will open its 18th and 19th outlet, the first two for Jakarta, in Indonesia by next month, Jean Lee, Managing Director of Carona Holdings Pte Ltd, told Asian Agribiz. The company opened its Indonesian arm in 2013 with the launch of Carona Indo, which consists of two entities – production and retail. “Indonesia is our future and I think we can grow quickly,” she said. Late last year the plant opened its second line to cope with growing orders. “We started out with 500kg/day. Now we are doing 3000kg/day in two eight-hour shifts.” Plans are already in the pipeline to build a second plant in Indonesia.
|CAB Cakaran profit declines 24% |
[28 May 2015] Malaysian poultry integrator CAB Cakaran Corp Bhd’s reported a net profit decline of 24% to USD 687,000 in its second quarter ended March 31 2015, from the previous quarter, despite a 27.2% increase in revenue. Revenue came in at USD 57.28 million. In a filling with Bursa Malaysia the company attributed the higher revenue to better sales by its integrated poultry farming and processing division. It recorded an increase in the production of chicks and broilers as well as higher demand for feed from contract farmers. The division recorded a lower profit of USD 1.93 million due to the lower average selling price of broilers. On prospects, the Group expects its farming and processing division to improve on expectations of higher average selling price of broilers and stable price of feeds.
|DMC aims for integration|
[28 May 2015] Dimanika Megatama Citra (DMC), a PS breeder in Surabaya, Indonesia aims to be an integrated poultry company. Last year the company put its new 15,000 tonne/month poultry feedmill in East Java into operation. The capacity of this plant is expandable to 50,000 tonnes/month. It is also expanding its broiler contract farming business in Java, Sumatera, Kalimantan and Sulawesi. In addition, it also has a chicken slaughterhouse in Pasuruan, East Java that is supported with commercial broiler farms to ensure the supply of live bird for processing.
|PISAgro allocates funds to corn farmers |
[28 May 2015] PISAgro, a multiplayer platform initiated by Indonesia’s government to improve agri production, is ready to allocate around USD 2.3 million for 2000 corn farmers in Bima and Dompu regencies in West Nusa Tenggara. The number of farmers in this year’s project is 10 times more than the previous year. Syngenta Indonesia that is leading the project targets to increase corn productivity in the regencies by 7.2 tonnes/ha, or an increase of 20% of the current average corn productivity. Lim JungLee, President Director of Syngenta Indonesia, said the project is aimed at self-sufficiency in corn. Developed under the micro-financing model, the project plans to partner with 5 million farmers by 2020.
|Russia interested in poultry exports to India|
[28 May 2015] Russia, which is actively seeking export markets for its poultry products has expressed interest in poultry exports to India. Deputy Head of Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) Alexei Alexeenko said this is part of its plan to diversify exports. “There is demand for poultry in India and our Indian partners have shown interest,” he said. Russia exported 57,000 tonnes of poultry in 2014, 5% more than in 2013. Russian Agricultural Ministry expects that export of poultry will increase fourfold within the next five years to about 200,000 tonnes.