TOP STORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 February 2016
|Nutrition for improved health|
[05 February 2016] Good and proper nutrition is critical to developing the pig’s immune system, especially since more than 70% of the pig’s immune cells are in the gut. How nutrition impact disease susceptibility and how disease affect nutrient utilisation is just one of the topics in the session on nutrition for improved health at Asian Agribiz’s 2016 Pig Feed Quality Conference on March 31-April 1, 2016 at The Landmark Hotel in Bangkok, Thailand. For more details, contact Omthong Tjoa or Sutasinee Lake at email@example.com, or visit our website.
|Thaifoods Group to see turnaround in Q2 |
[05 February 2016] Bualuang Securities anticipates Thaifoods Group’s (TFG) earnings to reach a bottom line break-even in Q1 2016 before a turnaround in Q2 and a strong recovery in H2 of 2016. TFG’s improved performance will be led by a recovery in chicken and live-pig prices, capacity gains and its cost efficiency programs. Moreover, it plans to set up a chicken sausage facility, which will likely be operational in Q2 2016. The firm also aims to add a production line at its Kabin Buri plant in Q2, which will increase its slaughterhouse capacity by 25% and feed production capacity by 60%.
|Indonesia to allow beef, cattle imports from disease-free zones|
[05 February 2016] Amid soaring beef prices, Indonesia’s government announced at the end of January its ninth economic stimulus package, which included measures to stabilise beef supply and prices by diversifying beef import sources and deregulating logistics. Darmin Nasution, Coordinating Economic Minister, said that under the new package, the Agriculture Minister will introduce a zoning system within a cattle-importer country, instead of using a country-based criteria, to help reduce dependence on a single country. “A country can have disease-free zones and we can import from these zones,” Mr Darmin added.
|Tech firms fined for spreading KFC 'mutant chicken' rumours|
[05 February 2016] KFC has won a court battle in China against three local tech firms that spread false reports saying KFC’s chicken comes from mutant birds with six wings and eight legs. The companies were ordered to apologize and pay a combined USD 91,300 fine for damaging KFC’s reputation. The Chinese rumours picked up on hoaxes that have been spread on the worldwide web since 1999, according to the myth buster website Snopes.com. KFC’s parent, Yum Brands, has always strongly denied the reports, calling them “ridiculous.” On Wednesday, Yum also reported that its China KFC same-store sales were up 6% in Q4 2015, recovering from 2014 lows.
|AVA refutes rumours that imported bak kwa contains rat meat|
[05 February 2016] The Agri-Food and Veterinary Authority of Singapore (AVA) has refuted rumours circulating via e-mail that the majority of bak kwa sold in Singapore and imported from China may contain rat, fox and mink meat. In a press statement, AVA assured the public that the majority of bak kwa sold in Singapore is produced locally from raw pork sourced from countries such as Australia, Brazil and Spain. Less than 5% is sourced from two establishments in China that have been approved to export semi-processed frozen sliced pork to Singapore. According to AVA, imported meat items are accompanied with health certificates endorsed by the overseas authority.
|Indonesia encourages sustainable aquaculture|
[05 February 2016] Indonesia’s Ministry of Fisheries and Marine Affairs continues to encourage sustainable aquaculture and has begun fish restocking as part of its efforts to maintain the sustainability of the environment and fishery resources. Slamet Soebjakto, Director General of Aquaculture, said: “The development of aquaculture must support the sustainability of nature and fishery resources.” On the fish restocking program, the ministry is pushing hatcheries to produce quality seeds. “Our aquaculture production target for 2016 is 19.5 million tonnes, for this some 101 billion seeds will be needed,” said Mr Slamet.
|Bulog buys corn detained at Indonesian ports|
[04 February 2016] Around 353,000 tonnes of imported corn from Latin America that arrived in Indonesia in January and was detained at five seaports namely Belawan, Cilegon, Semarang, Lampung and Surabaya, has been bought over by Bulog. Thomas Lembong, Indonesia’s Trade Minister, said Bulog has bought the corn from the importers for USD 0.22-0.23 per kg, and then sold it to poultry and livestock farmers and feed millers at a price of USD 0.26. Bulog and Indonesia’s Agriculture Ministry has also stabilised corn price in Blitar, East Java by distributing around 200 tonnes of corn to layer farmers in the largest egg production region in Indonesia.
|Global pork market weak in Q1|
[04 February 2016] The global pork market will remain weak in the first quarter of 2016 as sufficient supply and modest demand growth will likely see prices down to its lowest levels since 2006, Rabobank said in its Pork Quarterly Q1 2016 report. This follows a ‘stronger-than-expected drop’ in global prices at the end of 2015. However, some recovery is expected leading into Q2 as both positive demand and price developments in importing countries will begin to support prices in exporting countries during Q1.
|Thai Union expects lower profit for Q4 2015|
[04 February 2016] Thailand’s Thai Union is expected to post a net profit of USD 16.86 million for Q4 2015, down 14% compared to 2014. Bualuang Securities attributed this to extra expenses tied to the abandoned Bumble Bee deal and fishing fleet impairment. Bualuang Securities also estimates that TU’s Q4 sales will be at USD 915 million, down 9% over 2014. However, it will likely see sales in baht term to stay flat in Q4. Meanwhile, the mean price of raw skipjack tuna peaked at USD 1500/ tonne in August last year before plunging to USD 1000/tonne in November-December 2015, due to supply growth. The low tuna price is expected to continue through Q1 2016 before rising modestly in Q2.
|Vietnam’s Hung Vuong to invest in Russian fish company|
[04 February 2016] Hung Vuong Corporation, a processer and exporter of fishery products has announced plans to invest USD 15 million for a 51% stake in the Russian Fish Joint Stock Company. Duong Ngoc Minh, Chairman and CEO, said the company, a global exporter of the Alaska Pollak, produces animal feed and operates cold storage plants in Vietnam and Russia. It also imports and distributes fisheries products from 18 markets around the world. He said there was an opportunity for catfish exporters from Vietnam to sell tra and basa fish in Russia. He said, the co-operation between his company and the Russian firm would auger well for Hung Vuong.
|North Atlantic plans major expansion in Indonesia|
[04 February 2016] US-based fish importer, processor and distributor North Atlantic is planning to expand operations at its Indonesian subsidiary to improve sustainability, traceability and social impact. By building four processing plants in the country the company hopes to reduce waste in the supply chain. That waste occurs from product degradation primarily due to a lack of cold chain infrastructure. Construction of the first, near a traditional fishing village on the south-central island of Sumbawa, is expected to begin in March and to be operational by the end of the year. “The plant will produce fish products including individual vacuum packed (IVP) portions in retail bags, bulk IVP portions and bubble wrapped loins,” said Bill Stride, North Atlantic CEO.
|Marel concludes acquisition of MPS|
[04 February 2016] Marel recently announced that it has closed its acquisition of MPS meat processing systems (MPS). In November 2015 Marel announced that it had entered into an agreement to acquire MPS for USD 414.5 million on a debt and cash-free basis. United, the two companies will be at the forefront in developing full-line solutions and equipment for the meat processing industry.
|ND threatens in Philippine poultry industry|
[03 February 2016] An outbreak of virulent Newcastle’s Disease (ND) has hit several key poultry production areas in the Philippines, particularly in Central Luzon, threatening the country’s poultry industry. Agriculture Secretary Proceso Alcala said the Department of Agriculture is closely monitoring the situation to prevent further spread of the highly contagious disease. Some industry observers told Asian Agribiz that the problem was first noticed in mid-December, with the gamefowl sector and native chickens being most affected. There is some debate as to the type of the ND virus currently affecting chickens, with some saying that it is a new strain similar to that found in Malaysia. However, Agriculture Undersecretary Jose Reaño told Asian Agribiz that there is no indication yet that it is a new genotype, however samples have been sent to the OIE for genotyping. He said supply of chicken meat and eggs remain stable.
|Indonesia’s February corn harvest predicted to reach 3mt|
[03 February 2016] Corn harvest yield in February in several corn producing regions in Indonesia is expected to reach 3 million tonnes, according to Amran Sulaiman, Agriculture Minister. “The yield is expected to normalise the price of corn to USD 0.23 per kg. If the corn price returns to normal, this will stabilise the price of feed, and the price of chicken (dressed bird) will also return to around USD 2.3 per kg,” Mr Amran said. Previously the price of local corn skyrocketed to more than USD 0.5/kg, pushing the price of poultry feed and chicken up.
|Malaysia’s DBE Gurney eyes export market|
[03 February 2016] Malaysia’s DBE Gurney Resource Bhd, which started supplying poultry to KFC restaurants in two states last month, is also looking at exporting its premium poultry products to China, Japan and Kazakhstan. “Our chicken has reached export standards. We are waiting for approvals from the authorities,” Managing Director, Alex Ding said, adding that DBE Gurney would be the first Malaysian company to export chicken to China if it gets the green light. The integrator operates a 114,000-tonne per year feedmill and a 60,000-bird per day slaughterhouse. The company has six breeder farms with a total capacity of 100,000 birds per year, 11 broiler farms which can supply 10 million birds per year, and a hatchery with six sets of incubators that can produce up to 12 million eggs per year.
|OSI to appeal 'unjust verdict' in Shanghai Husi case|
[03 February 2016] The OSI Group has come out strongly against a Chinese court's verdict that its subsidiary sold expired chicken and beef to McDonald's, KFC and other QSRs in China. The Group said it was an "unjust verdict" by a Shanghai court on Monday to fine two of its Chinese units and sentence 10 employees to prison. Sensationalised media reports from Dragon TV led to a raid on the Shanghai Husi plant in July 2014. Dragon TV made false and incomplete accusations that ignored facts and Chinese law. After an actual investigation was completed, all authorities involved have recognised that this case has never been about food safety. The distortion of facts and evidence by Dragon TV and the general media clearly influenced the verdict", the company said in a media release.
|Corn imports stabilise market price in India|
[03 February 2016] Indian corn prices have remained stable across all markets as the tender to import tender has received support. Amit Sachdev, USGC Representative for India, Bangladesh and Sri Lanka said that there were 15 bids and the prices ranged from a low of USD 192/tonne to a high of USD 245/tonne. “It will now be in the hands of the exporter to mobilise supplies and also the end users to make payments for their requirements,” he said. The tender as quoted for 265,000 tonnes of maize is to be supplied in February/March 2016.
|Indonesia’s Bulog to stabilise beef prices in Greater Jakarta|
[03 February 2016] Anticipating the increasing price of beef in Greater Jakarta, Indonesia’s state procurement agency Bulog will distribute its cattle stock to slaughterhouses in the region. Fazri Sentosa, Bulog Commercial Director, said the agency will distribute 200 cattle per day. In addition, “we also have frozen boxed beef stocks,” said Mr Fazri. “We expect the price of beef in the region to contract to USD 6.5-6.9 per kg. Currently the price is around USD 8.”
|Science, trial data, and solutions at Pig Feed Quality Conference|
[02 February 2016] Recognised at Asia’s leading pig nutrition forum, Asian Agribiz’s 2016 Pig Feed Quality Conference will once again bring animal nutrition experts to discuss ‘science, trial data, and solutions’ aimed at addressing fundamental themes affecting Asia’s pig production industry. To be held at The Landmark Hotel in Bangkok, Thailand on March 31-April 1, 2016, the conference aims to give pig and feed producers actionable take home messages to help them improve productivity and profit margins. Visit our website or contact Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org for more information.
|Chicken price escalates in Indonesia|
[02 February 2016] The price of dressed birds in big cities in Indonesia, especially in Greater Jakarta, is skyrocketing due to the increase in feed prices. Based on the Indonesian Poultry Slaughterhouses Association (Arphuin) data, the average price of live birds in the last week of January was around USD 1.51/kg. “The price of dressed birds was around USD 2.67/kg. By calculating the body weight shrinkage of around 4% and transportation and processing costs, the price is fair,” said Achmad Dawami, Arphuin Chairman. Before the increase in feed prices, the average price of live birds was around USD 1.29/kg.
|Bairaha raises stake in feedmilling project|
[02 February 2016] Sri Lanka’s leading poultry producer Bairaha Farms PLC and its associate Farm’s Pride (Pvt) Ltd have decided to increase their stake in an USD 11.4 million billion feedmilling project coming up in Kurunegala district in the country. In a stock exchange filing, Bairaha said that the project will now be a 50:50 joint venture against the planned 45:45 with 10% planned for a foreign shareholder. Both the companies have raised their stake in the project as the expected foreign investment has not come through. Against the earlier plan, the joint venture will now undertake both stage one and stage two of the project simultaneously.
|Nuscience officiates new base in Singapore|
[02 February 2016] Partners and clients of Nuscience in Asia can expect ‘focused attention’ now that the group has a regional office in Singapore. “This means better real time response and support,” Graham Wong, Commercial Director in Asia, told Asian Agribiz. The Singapore office, he said, is a pivotal footprint for the group in Asia. Initially, it will focus on sales and customer support for the products of the Nutrition4U business unit which focuses on young animal nutrition, mineral feed, premixes and concentrates.
|Fast Food Indonesia to build 40 new KFC outlets|
[02 February 2016] Fast Food Indonesia, the operator of Kentucky Fried Chicken (KFC), has targeted a 10% business growth this year. Justinus D Juwono, Financial Director, said the company targets an income of USD 369 million this year. Last year it booked an income of USD 335.5 million. “Consumer purchasing power is still weak so we anticipate moderate growth for this year,” Mr Justinus said. To reach the target, Fast Food plans to add 30-40 new outlets. It has allocated a capital expenditure of USD 22 million – of this, the majority will be used for the new outlets, while the remainder would be for renovation of existing outlets. “Of the new outlets, 60% will be built outside Java, in central and eastern Indonesia,” said Mr Justinus.
|Thailand’s Buntaphan plans for second pig farm in Vietnam|
[01 February 2016] Thailand's Buntaphan farm which is has invested in a pig PS farm in Vietnam's Hoa Binh province is seeking permission to invest also in Vietnam's Quang Binh province. Owner, Somthad Buntaphan told Asian Agribiz that building a pig farm in Quang Binh province will require USD 10 million investment and the farm will cover an area of 208,000 sqm and will have 2400 parent stocks. “I think Vietnam presents attractive opportunities for those who want to do business in the country,” Mr Somthad said.
|Indonesian feed millers turn to wheat due to corn scarcity|
[01 February 2016] The Indonesian government’s decision to halt corn imports for the private sector has raised the price of local corn to USD 0.43/kg from the normal price of USD 0.21. In addition, supply is limited. This has led to feed millers competing to secure local stock. Sudirman FX, Chairman of the Indonesian Feed Millers Association (GPMT), said to overcome the situation some feed millers have turned to using wheat at around 15-20% in their formulation.
|Japanese beef and pork allowed into Singapore|
[01 February 2016] Singapore is allowing travellers to bring Japanese-bred pork and beef into the city-state for personal consumption. The agreement between the two countries, which took effect recently, covers products such as bacon and other meats sold at grocery stores, and lets individuals carry up to 5kg. Singapore previously banned individuals from bringing in Japanese beef and pork.
|Salted fish from Thailand, Taiwan flood markets in Sukabumi|
[01 February 2016] Cheap imported salted fish products have flooded the traditional markets in Indonesia particularly in Sukabumi, West Java. Trader Dani Supriyadi said the imported salted fish products are popular due to scarcity of local fish supplies. Traders opted for imported products to meet market demand for salted fish. Sadly, domestic salted fish has been in short supply lately. The quality of local salted fish products in the country is better than the imported stock, but it has a shorter shelf life as it is processed traditionally without the use of chemical preservatives.
|Australia’s Sunny Queen exports 21k eggs to Taiwan|
[01 February 2016] For the first time, a shipment of fresh Australian eggs has been cleared for sale in Taiwan. More than 21,000 eggs from exporter Sunny Queen were cleared by Taiwanese quarantine authorities last week, after Australia and Taiwan earlier agreed to rules for eggs and egg product exports. While that shipment is small, the company hopes Taiwan could prove to be an important new market. John O'Hara, Sunny Queen Managing Director, said it marks a promising start in a region rich in potential for export opportunity, and an exciting new direction for the business.
|Feeding for superior pig performance|
[29 January 2016] Presentations at Asian Agribiz’s 2016 Pig Feed Quality Conference on March 31-April 1, 2016 at The Landmark Hotel in Bangkok, Thailand will include the use of nutrition to mitigate impact of heat stress; establishing a digestible calcium requirement for pigs; Optimal amino acid ratios in AGP-free diets for weaned/starter pigs; improved methionine nutrition for swine; feeding the modern sow and her progeny. Contact Omthong Tjoa or Sutasinee Lake at email@example.com, or click here to get more information.
|Corn shortage troubles pig farmers in Central Java |
[29 January 2016] Pig farmers in Indonesia’s Central Java are now facing corn scarcity. In Solo, a pig farming hub, the price of local corn reached USD 0.49/kg from USD 0.20 earlier, exceeding the price of soybean meal (around USD 0.39/kg) that previously was always higher than corn prices. In addition, supply is limited, said Alexander Kasim, owner of Adhi Farm and General Secretary of the Indonesian Monogastric Association. “The stock from outside Java, has been taken up by feed millers as they haven’t received permits from the government to import corn. Because of, I have turned to complete feed and plan to use alternative ingredients such as cassava, pollard and copra meal,” Mr Alexander told Asian Agribiz.
|CPF expects good earnings despite economic slowdown |
[29 January 2016] Despite concerns over the global economic slowdown and foreign exchange volatility, Thailand’s Charoen Pokphand Foods’ (CPF) profit is expected to rise significantly in the first half of 2016. Bualuang Securities said that CPF’s 1H profit will be boosted by improved livestock and shrimp margins, bolstered by more balanced supply and demand mechanisms and the low 1H profit base last year. Bualuang Securities estimates CPF’s net profit for Q4 2015 at USD 52.87 million, up 135% from the same period in 2014, led by loss reduction in its Thai shrimp unit and improved performance in Russia and Vietnam. Its Turkish unit however, is expected to post a net loss in Q4 2015.
|Pork prices expected to increase by 10% this Chinese New Year|
[29 January 2016] Singaporeans may have to pay more for pork this Chinese New Year due to limited supply coupled with the increase in demand. Shin Min Daily News reported that prices for fresh and frozen pork are expected to rise some 10%. Pork in Singapore is sourced mainly from Australia and Indonesia, and supply from Australia has been dwindling since last December. The price of pork ribs currently stand at USD 8.03-8.38 per kg, while the price of pork belly is at USD 8.38 per kg.
|Adhi Farm to expand in eastern Indonesia|
[29 January 2016] Adhi Farm, one of the largest pig farms in Solo, Central Java, Indonesia, plans to expand its business in eastern Indonesia. Alexander Kasim, owner, told Asian Agribiz that he has visited East Nusa Tenggara often to share about pig farming with farmers in the province. “These are backyard farmers who only focus on fattening. This presents an opportunity for me to set up a breeding facility to supply good quality piglets,” he said. “I have an investor for this project.” Besides, Papua also has potential, Mr Alexander said. “There is an international mining company that needs quality pork and pig farmers in the region can’t meet their standards. My plan is to train the pig farmers in good farming practices and to achieve good pork quality.”
|FDI in food processing expected to go up|
[29 January 2016] Foreign direct investment in India’s food processing sector is likely to go up by 25% as the Food Safety and Standards Authority of India (FSSAI) has streamlined regulations to ease product approvals. Revealing this, Union Minister Harsimrat Kaur Badal said the industry’s concerns on product approvals will be addressed to a large extent with the changes in the approval process. According to her, this will ease the process of doing and expanding business in the food processing sector.
|Thailand’s Buntaphan invests in pig farm in Vietnam|
[28 January 2016] Buntaphan, a pig producer in Thailand's Nakhon Phanom province, is investing around USD 3 million on pig parent stock farm in Hoa Binh province in Vietnam. Somthad Buntaphan, Owner, told Asian Agribiz that the he is building swine farming facilities in the province and the facilities will be operational in about six months. The farm covers an area of more than 96,000 sqm and will have 1,200 parent stocks.
|Indonesian pig farmers to profit during Chinese New Year|
[28 January 2016] The price of live pigs in Indonesia continues to increase ahead of the Lunar New Year on February 8. According to Alexander Kasim, General Secretary of the Indonesian Monogastric Association and owner of Adhi Farm in Solo, the price of live pigs in Solo, Central Java has been on an uptrend since early January, reaching USD 2.16/kg from USD 1.91 earlier. “Last year many pig farmers exited the industry because of oversupply and low prices. So now the supply of live pigs is limited,” Mr Alexander told Asian Agribiz. “The price of pork belly has reached more than USD 7.22/kg from USD 5.41-6.14 previously."
|HKScan upbeat on premium meat market in Asia|
[28 January 2016] Finnish meat manufacturer HKScan is banking on the high-growth Asian countries such as China and Japan. “We have a well-established network of customers in Japan, Singapore, Korea and Hong Kong. Our current sales is largely from cuts which are not consumed in our Nordic home markets such as pork feet, pork and chicken offal, chicken wings and feet,” Jukka Nikkinen, Executive Vice President, Away from Home told Asian Agribiz. “We expect the market for imported premium or upper medium products with a true and good story to grow. Good taste, Nordic purity and safe food are clearly relevant to select consumers,” he said.
|First legal Hungarian beef arrives in China|
[28 January 2016] China has received its first shipment of legally imported frozen beef from Hungary, according to a report by China Daily. Twelve tonnes of Hungarian beef arrived in Shanghai for sale in the run-up to Chinese New Year on February 8, when China’s annual beef consumption peaks. Small amounts of Hungarian beef have previously entered China via the grey channel through Hong Kong. Chinese officials have been trying to expand legitimate supply sources and signed a beef trade agreement with Hungary in October. Only seven other countries have legitimate access to China’s beef market: Brazil, Australia, Uruguay, New Zealand, Argentina, Canada and Costa Rica.
|Shrimp hatchery to come up in Kerala|
[28 January 2016] Kerala University of Fisheries and Ocean Studies in India has obtained a licence to set up a hatchery to produce seeds of vannamei shrimp. B Madhusoodana Kurup, Vice Chancellor said that this represents the first such hatchery in the state and it would boost vannamei shrimp farming in Kerala. “Vannamei has not been popular in Kerala as farmers had to depend on other states for the seeds,” he said.
|Hong Kong company buys Australian grain producer|
[28 January 2016] A company controlled by Hong Kong billionaire Li Ka-shing has struck a deal to buy one of Australia’s largest grain producers, according to the Chinese news agency Xinhua. CK Life Sciences International has agreed to pay USD24 million for the Nicoletti Group, which owns 68,000 ha of wheat-growing properties in Western Australia. Nicoletti, which has suffered a series of poor harvests due to drought, will continue farming the land under a sale-and-leaseback arrangement, Xinhua said. CK Life Sciences is a subsidiary of CK Hutchison Group, controlled by Mr Li. The agreement must be approved by Australia’s Foreign Investment Review Board.
|Ensuring superior pig performance|
[27 January 2016] Correct nutrition is key to whether pigs will achieve their genetic potential, particularly in terms of performance and meat quality. Feeding to ensure superior pig performance is one of the four sessions at Asian Agribiz’s 2016 Pig Feed Quality Conference scheduled on March 31-April 1, 2016 at The Landmark Hotel in Bangkok, Thailand. Dr Julian Wiseman of the University of Nottingham will lead the presentations by discussing how to balance grower/finisher diets for standardised ileal digestible amino acid content to include performance and carcass quality. Contact Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org, or click here for more information.
|Pig farmers in North Sulawesi facing corn scarcity|
[27 January 2016] Pig farmers in Indonesia’s North Sulawesi are now facing corn scarcity, pushing them to use swill feed. The price of corn in the province skyrocketed to USD 0.5/kg from the normal price of USD 0.2. Ronald Rumondor, Chairman of the North Sulawesi Pig Farmers Association said: “There are corn suppliers who still have stock, but their price is exorbitant. Because of this situation, some farmers have paused production while others have turned to swill feed although the impact to production and health are not known.” Mr Ronald hopes the state procurement agency Bulog can help overcome the corn scarcity situation.
|Thailand’s PFP aims to achieve 15-20% growth in 2016|
[27 January 2016] Thailand’s PFP Group, a frozen seafood producer, has set its revenue growth target this year at 15-20% to USD 167 million. The firm plans to open new seafood-processing plants in countries in Asean countries including Indonesia and Vietnam. “We are preparing to reach more consumers both domestically and overseas,” said Thawee Piyapatana, Chairman of PFP Group, the Nation reported. Around 60% of PFP Group’s products are for the domestic market. PFP Group exports to more than 21 countries. In Thailand, Thawatchai Ratanapisit, Executive Director of PFP Group, said that the firm plans to increase sales through modern trade, hotels, restaurants and catering.
|Shutdown to hit beef supply in Meghalaya|
[27 January 2016] Beef supply is expected to be affected for the next two weeks in India’s Meghalaya state as butchers and cattle traders have called for a two-week shutdown to protest cattle smuggling into Bangladesh. The strike, which will end on February 3, was initiated after the Meghalaya government failed to prevent smuggling of cattle into Bangladesh. "All beef shops will continue to remain closed and there will be no purchase of cows from the cattle market till February 3," Vice President of the Butchers Welfare Association, Generous Warlarpih said.
|Trouw Nutrition opens Philippine office|
[27 January 2016] Trouw Nutrition opened its representative office in the Philippines on Monday, paving the way for the company to increase its presence in this market. “We have seen significant growth in Asia Pacific, and the Philippines is one of the specific growth markets in the region,” Ramakanta Nayak, Commercial Director of Trouw Nutrition Asia Pacific told Asian Agribiz. “It is important that we have a stronger presence here.” The focus of the new office is to offer solutions and innovations to customers.
|Indonesia’s FKS targets moderate growth|
[27 January 2016] Responding to the slowing growth in the animal feed industry, Indonesian animal feed ingredients trader FKS Multi Agro has moderate growth targeted for this year. Anand Kishore Bapat, Director, said FKS projects sales volume to grow 5-7% from 2.2 million in 2015. FKS is constructing a transit-warehouse in Teluk Lamong Port, East Java with a capacity of 100,000 tonnes. “The warehouse is targeted for operations in the middle of this year and will support our distributions to eastern Indonesia,” said Mr Anand. FKS’ main customers are Charoen Pokphand Indonesia, Central Proteina Prima and Japfa Comfeed Indonesia. FKS controls around 25% of the market share of animal feed ingredients in the country.
|Indonesia to remove VAT on livestock|
[26 January 2016] Indonesia this month will reverse a decision to impose a value added tax on most of its poultry and cattle businesses. The country has been struggling to rein in the prices of beef and chicken after a string of self-sufficiency policies backfired. The imposition of a 10% VAT on January 8, on almost all livestock businesses, ranging from cattle and poultry to sheep, but excluding imports of breeding cattle, caught many by surprise. Government officials initially said the move was intended to protect domestic breeders. “To synergise food policy, we will exempt livestock from VAT,” said Astera Primanto Bhakti, a special staff of the Finance Minister.
|QL Resources’ subsidiary buys Cargill Malaysia’s hatchery|
[26 January 2016] A subsidiary of QL Resources Bhd has snapped up a hatchery belonging to Cargill Malaysia for USD 270,000. Cargill Aquaculture is in the business of breeding, genetic selection and hatchery operation, for aquatic species, said QL Resources. It is now a wholly-owned subsidiary of Kembang Subur, which belongs to QL Resources. Last July brokerage firm CIMB Equities Research said QL Resources is aiming to expand its farmed shrimp output and it is also building a new processing plant. The company wants to double its output in financial year 2016 as it builds more ponds. CIMB also said QL Resources wants to expand Kembang Subur’s farm capacity by 60%.
|CJ Cheiljedang to acquire China’s lysine producer MeiHua|
[26 January 2016] CJ Cheiljedang Corp, South Korea’s largest food company, is planning to buy a controlling stake in China’s MeiHua Holdings Group Co Ltd. A CJ spokeswoman said the company wanted to boost the market share of its own animal feed and food additive business through the acquisition. According to an industry analyst, both companies are primary manufacturers of amino acids that have maintained a leading position in the global lysine, threonine and tryptophan markets. “If CJ and Meihua are integrated, they would account for 34.1% of the global lysine supply,” said the analyst.
|Indonesia’s Bulog to import 600kt of corn in Q1 |
[26 January 2016] Indonesia’s State Procurement Agency (Bulog) has said that it plans to import 600,000 tonnes of corn in the first quarter of this year. Wahyu, Bulog Director, said 100,000 tonnes will be shipped in January, 200,000 tonnes in February and 300,000 tonnes in March. “Bulog imported corn many years ago,” he said. “This will be the first time in the last 10 years.” Bulog will spend around USD 128.5 million on the corn imports, which will then be sold to feed millers in the country at a price set by the government, Mr Wahyu informed.
|Nutreco completes acquisition of Micronutrients|
[26 January 2016] Nutreco has completed the acquisition of Micronutrients which now allows Trouw Nutrition, Nutreco’s animal nutrition business, to beef up its Selko feed additives product portfolio. The acquisition makes Trouw Nutrition a global leader in hydroxy trace minerals and will strengthen Trouw Nutrition’s global premix business. Hydroxy trace minerals are specialty trace minerals that due to their unique chemical structure improve the stability of premix and feed and the bioavailability (better digestion) in animals compared to inorganic trace minerals.
|New Smithfield CEO joins WH Group board|
[26 January 2016] Kenneth Sullivan, the new CEO of Smithfield Foods, joined parent company WH Group’s board of directors on January 22, WH Group said in an announcement. WH Group, a Hong Kong-listed holding company, controls both Shuanghui, China’s largest pork producer, and Smithfield, the largest US pork producer. Mr Sullivan replaces former Smithfield CEO Larry Pope, who retired on December 31. Mr Pope led Smithfield through its acquisition by Shuanghui in 2013, while Mr Sullivan served as Smithfield’s CFO before succeeding Mr Pope as President and CEO.
|Thailand’s CPF aims to raise labour standards |
[25 January 2016] Thailand’s Charoen Pokphand Foods (CPF) said it is determined to raise labour standards for both Thai and migrant’s workers. It currently employs 5,200 migrant workers - 4,450 from Cambodian and the rest from Myanmar. CPF said that all of its migrant workers are treated the same as Thai workers with regards to salary, skilled-based pay and welfare. Speaking of CPF’s chicken manufacturing plant in Nakhon Ratchasima, Apichart Kaewking, Vice President of CPF said: “The labour practices of the Thai private sector follows international standards.”
|India’s broiler meat demand expected to grow|
[25 January 2016] India's domestic broiler meat demand is expected to grow at an annual rate of 5-7% in volumes and table eggs at 4-5%. Credit rating agency ICRA in its report also informed that growth in value of the broiler industry is expected to be higher at above 10%. “The transition of the poultry industry from a predominantly live bird and wet market to a chilled and frozen market would be crucial for the future growth of the domestic poultry industry as well as to increase its presence in international trade,” the agency said in a statement.
|Mealworm, pkm use expected to develop in Indonesia |
[25 January 2016] Mealworm and palm kernel meal (pkm) are local alternative feed ingredients that are expected to develop in Indonesia, according to Dr Nahrowi Ramli, Animal Nutrition Scientist from Bogor Agricultural University. These alternative ingredients contain high nutrient density, are safe for animals, humans and the environment, and do not compete with human needs. Dr Nahrowi explained that mealworm could replace mbm and fishmeal. Meanwhile, pkm is used regularly for ruminant feed, but in small amounts for poultry, fish and pig feeds.
|Aussie beef grows pricier in Japan despite tariff cut|
[25 January 2016] The price of Australian beef has risen in Japan, even after the import tariff was reduced under a bilateral trade pact that took effect a year ago. Japan imported 267,000 tonnes of Australian beef between January-November 2015, up just 2% on the year. The 38.5% tariff dropped to 28.5% for frozen meat and to 31.5% for chilled meat. Imports jumped in April, when the levy fell but a sharp rise in prices thereafter in the Australian market curbed imports. In Japan, the retail price of Australian beef sirloin is around USD 3.54 per 100g, up around 10% from a year ago.
|AVA issues travellers’ alert on bak kwa imports|
[25 January 2016] Ahead of the Lunar New Year Singaporeans have been reminded that bak kwa, or barbequed sweet pork, cannot be brought from Malaysia into Singapore. According to a joint statement by the Immigration and Checkpoints Authority and Agri-Food and Veterinary Authority of Singapore, bak kwa which is a pork product, and can only be directly imported from approved regions such as Australia, Japan, the US and a number of European countries. Malaysia is not one of the approved regions for meat import into Singapore.
|Proper feed processing impacts pig performance |
[22 January 2016] Nutrition goes beyond diet formulation, because diets must be properly processed before their potential is realised. How feed is processed affects the nutritional value and physical properties of a formulation, which can affect pig growth performance, carcass composition and profitability. At Asian Agribiz’s 2016 Pig Feed Quality Conference on March 31-April 1, 2016 at The Landmark Hotel in Bangkok, Thailand, feed and pig producers will learn how processing affects the nutritional and physical properties of a formulation, as well as how the ingredients in the formulation affect the process. For more details, contact Omthong Tjoa or Sutasinee Lake at email@example.com, or get an insight here.
|EU delegation to make decision on Thai seafood ban|
[22 January 2016] The European Union delegation, currently visiting Thailand to assess its progress in combating illegal, unreported and unregulated (IUU) fishing, will not make a decision this week on whether to ban Thai seafood products, the Thai government said. Vice Admiral Jumpol Lumpiganon, a spokesman for the Royal Thai Navy, said that the EU team is monitoring Thailand’s progress after it set up a centre last year to combat illegal fishing. “Once they are satisfied, they will go back and then make a decision,” Vice Admiral Jumpol told Reuters, adding that there was no timeframe for the decision.
|New cattle tax surprises live export trade to Indonesia|
[22 January 2016] The live cattle trade between Australia and Indonesia is coming to terms with a surprise decision by the Indonesian government to introduce a new tax on cattle imports. In mid-January Indonesia’s Ministry of Finance imposed a value added tax of 10% on feeder cattle – interpreted to mean both imported and domestic stock. Tracey Hayes, from Australia’s Northern Territory Cattlemen’s Association, said the tax would be of concern to the entire supply chain. “It’s still difficult to determine the consequences of this decision, but one can only imagine it’s going to exert pressure on pricing of meat in Indonesia,” said Ms Hayes. A trade source said the tax will impact the balance between Indonesia’s live cattle and boxed beef imports.
|Canada gains market access for pork exports to India|
[22 January 2016] Canada has secured market access for Canadian pork and pork products to India, according to Canadian Agriculture Minister Lawrence MacAulay. “Canadian pork producers can immediately benefit from this new opportunity, exporting their products into this emerging market and increasing their export returns,” he said in a government news release. The Canadian pork industry estimates that gaining access to this new market could be worth USD 2 million in the first year, with growth in future years, as demand for value added products is expected to increase.
|Indonesia needs 12.1mt of corn for animal feed|
[22 January 2016] Indonesia’s feed industry is expected to demand around 12.1 million tonnes of corn this year. The Indonesian Feed Millers Association (GPMT) projected that this year animal feed consumption will reach around 17 million tonnes. This means that feedmillers in the country will need around 8.5 million tonnes of corn. On the other hand, the National Layer Farmers Joint-secretariat revealed that layer farmers in the country this year in total need around 3.6 million tonnes of corn for their home-mixed feed.
|South Korea halts US poultry imports again due to AI|
[22 January 2016] South Korea has halted imports of US poultry and poultry meat just two months after shipments resumed, following a fresh discovery of avian influenza (AI) in the US, the Agriculture Ministry said. The ban will not apply to imports of poultry meat that has been heat-treated. A new strain of AI H7N8 was detected at a turkey farm in Indiana State, the US Centres for Disease Control and Prevention said. South Korea had lifted a ban on US poultry and fresh meat imports on November 19 last year.
|Nampa urges cooperation to face AEC |
[21 January 2016] The Indonesian Meat Processors Association (Nampa) has reminded all industry stakeholders to strengthen synergy in the wake of the Asean Economic Community (AEC) “Stakeholders should cooperate to improve competitiveness,” Ishana Mahisa, Nampa Chairman, told Asian Agribiz. “To be able to compete with other Asean countries, we also hope the government will create a policy to separate meat supply for the meat processing industry. We need consistent supply especially of good quality boneless chicken at a competitive price. For now we have to follow the volatile market price,” Mr Ishana informed. He urged the government to consider opening to imports of chicken MDM.
|Thai Union hires workers from former pre-processing suppliers|
[21 January 2016] Thailand’s Thai Union (TU) has hired almost 1,200 former employees from external pre-processing facilities. After ending all relationships with external pre-processing facilities to help ensure full oversight of the entire processing and supply chain, TU has offered safe and legal employment to workers from former suppliers. The new employees will work at TU’s factories in Samut Sakhon. “Ensuring transparency and traceability of our supply chain and upholding the rights of our employees is of paramount importance,” said Rittirong Boonmechote, President of TU’s Global Shrimp Business. The new employees will be paid wages consistent with the minimum wage policy under Thai law.
|CAB to place 9.1% of its shares with Salim Group|
[21 January 2016] In a filing with the local stock exchange Malaysia-based poultry integrator CAB Cakaran Corp Bhd said it has entered into a placement agreement with Plant Wealth Holdings Ltd, a company controlled by KMP Investments Pte Ltd, which in turn is 67% owned by Salim Group Chairman Anthoni Salim. CAB will place 9.1% of its shares to Salim Group for USD 7.14 million. The proceeds will allow CAB to reduce its bank borrowings and reduce its gearing from 1.05 times to 0.74 times. “By leveraging on KMP's agribusiness and retail presence in Indonesia CAB will be able to realise benefits for its customers and existing shareholders,” said the company.
|Thailand develops key systems to fight illegal fishing|
[21 January 2016] Thai authorities have developed key systems to combat illegal fishing. The Command Centre for Combating Illegal Fishing (CCCIF) said recently that two main systems have been set up. First, Monitoring, Control and Surveillance systems have been established at the CCCIF and the Department of Fisheries. Vessel monitoring systems have been installed in 2,076 out of 2,216 fishing vessels of over 60 tonnes gross. This system has led to more effective monitoring and detection of vessels that engage in illegal fishing. A traceability system has also been launched, which enables officers and consumers to detect whether fishery products originate from illegal fishing.
|HKScan to export fresh meat products with launch of Asian office|
[21 January 2016] Nordic meat producer HKScan opened its Asian sales office and launched Omega-3 pork products in Hong Kong recently. Its flagship, also known as Flodins Omega-3, will first be sold through a selection of restaurants, after which it will become available via wholesalers and retailers. The company said on its website that Asia has been an important export market for its products. Among its leading Asia-bound products are Finnish-grown pork bellies and pork loins exported to Japan. HKScan also exports Danish-grown chicken wings and drumsticks to Korea and Malaysia as well as Swedish-sourced products such as pork trotters and offal to various Asian countries.
|Malaysia's DBE Gurney to focus on processing |
[20 January 2016] DBE Gurney Resources Bhd of Malaysia which clinched a one-year contract to supply poultry to KFC last November, expects to return to the black in the financial year ending December 31, 2016 by focusing on poultry processing and its new food and beverage franchising business, reported The Edge Financial Daily. The company has also stopped supplying live poultry to focus on processed poultry products. “The profit margin for live chicken is thin and the selling price is volatile,” Managing Director Alex Ding said. Prior to this the company sold 50—50 live chicken and processed poultry products.
|AI on the decline in Indonesia |
[20 January 2016] In its new release, Indonesia’s Ministry of Agriculture announced results of rapid tests on avian influenza (AI) reported by veterinary officers in the country through the SMS gateway. In November 2015, there were five AI cases in five villages in two provinces. The cases caused the death of 250 native birds. From 2007 to 2015, AI case in Indonesia have declined significantly ie from 2,751 in 2007 to 111 between January to November 2015.
|India receives first pork shipment from Northern Ireland|
[20 January 2016] Northern Ireland’s largest meat processor, Dunbia delivered its first shipment of pork to India at the end of December 2015. "This shipment represents a significant opportunity for Dunbia and our pig farmers and is the beginning of what we hope will be a long and profitable relationship with India,” Chief Executive of Dunbia Jim Dobson said. According to him, the first container was well received by Indian customers and the company is currently consolidating further containers for shipment. Market for fresh pork and processed pork products is growing in India due to increased level of awareness.
|Thailand’s DLD urges goat farming amid declining rubber prices|
[20 January 2016] With declining rubber prices, Thai plantation owners are being urged to reduce their rubber-growing area and shift to raising goats and beef cattle, said Ayut Harintranon, Director General of the Department of Livestock Development (DLD). Thailand will see low rubber prices for the next four years amid global oil supply glut. However, goat and beef cattle are in high demand and there is not enough land to raise them in Thailand, Dr Ayut said, adding that DLD is supporting farmers to raise goats as a group. Each farmer group should have at least 10 goat farms, with 32 goats on each farm. “There is a strong demand for goat meat in Vietnam,” Dr Ayut said.
|NTT cattle not able to meet Jakarta’s beef demand|
[20 January 2016] As many as 353 head of local cattle from Indonesia’s East Nusa Tenggara (NTT) transported via a special livestock vessel developed by the government arrived in Jakarta last December and the beef was sold at USD 5.76-6.84 per kg. According to Asnawi, Chairman of the Indonesian Beef Sellers Association, cattle supply from NTT will not be able to meet demand in Jakarta. Every day the capital city needs around 700 heads of imported (Brahman cross) cattle or equal to 1400 head of local cattle. “From local cattle with an average weight of 125kg, the carcass yield is only 100kg. So if the government wants to control the price of beef in Jakarta at USD 5.76-6.84 per kg, they should bring in at least 1200 head of cattle from NTT per day,” he said.
|Healthy gut, healthy pig|
[19 January 2016] With more than 70% of the body’s immune cells located in the gastrointestinal tract, nutrition has a major influence on the pig’s immune system. Any disruption will provoke an immune response that will impact animal performance. With increasing calls to reduce the use of antibiotic growth promoters, the influence of good nutrition on health is all the more critical for pig productivity and welfare. At this year’s Asian Agribiz Pig Feed Quality Conference, a session on nutrition for improved health will look at how producers can help their animals develop a healthy gut that can lead to better overall performance. The annual forum, organised by Asian Agribiz, returns on March 31-April 1, 2016 at the Landmark Hotel in Bangkok, Thailand. Click here for more details or contact Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org for information.
|Fresh outbreak of bird flu detected in India’s Tripura state|
[19 January 2016] An avian influenza outbreak has been confirmed in a state owned farm in India’s Tripura state. Animal Resource Development Department Director Manoranjan Sarkar said that following reports of unusual deaths in Gandhigram State Poultry Farm samples were sent to the Bhopal High Security Laboratory. “It is confirmed to be a H5N1 outbreak and we have started the culling process,” he said. According to him, all poultry within one kilometre radius of the farm will be culled. This is the first time in the last three years that an outbreak of bird flu has been reported from Tripura.
Indonesia’s measures against illegal fishing bear fruit
[19 January 2016] Indonesia needs to maintain its momentum in fishery exports as its strict measures against illegal fishing has contributed to an increase in exports last year, according to a researcher. Suhana, a researcher from the Centre for Policy Analysis, said the moratorium on permits issued to foreign fishing vessels in 2014 and 2015 had contributed to an increase in tuna exports to the US last year, while neighbouring Thailand and the Philippines saw decreases. “We need to take this opportunity to become the largest fishery-product exporter,” Mr Suhana said. Based on the Ministry of Fisheries & Marine Affairs data, Indonesia’s tuna exports to the US booked a 7.73% increase year-on-year from January to September 2015, while exports from Thailand and the Philippines declined by 17.36% and 32.59% respectively.
|Philippines’ GenOSI celebrates 25th year|
[19 January 2016] GenOSI, a Philippine food processing company that is a joint venture between the OSI Group and the Philippines’ General Milling Corp and Alaska Milk Corp, celebrated its 25th year in December 2015. From producing only two items and supplying only 31 restaurants when it started in 1990, the company is now a leading processor of beef, pork, chicken and fish products for global and local chain restaurants throughout the Philippines, supplying almost 500 restaurants a variety of high-quality food products. GenOSI also manufactures private label retail brands for area grocery stores.
|South Korean food producers set sights on halal market|
[19 January 2016] South Korean processed food companies and farmers are increasing efforts to tap into the rapidly growing global halal market. According to data by the farm ministry, shipments of food and agrofisheries products to Muslim countries belonging to the Gulf Cooperation Council (GCC) moved up 5.9% year-on-year to USD 339 million in the January-November 2015 period. From 2010 through 2014, halal exports rose a solid 69.3%, outpacing the 51.5% growth in farm and food exports for the country overall. Besides the GCC countries, exports to Indonesia, Malaysia and Iran have all risen significantly. “With the global Muslim population on the rise, the possibility for growth is limitless,” an official at CJ CheilJedang said.
|New FMD outbreak in South Korea|
[18 January 2016] More than seven months after the last FMD outbreak was reported in South Korea, the country’s Ministry of Agriculture, Food and Rural Affairs confirmed a new outbreak on a pig farm in the province of Jeollabuk-do. The outbreak started on January 11, with symptoms seen in 30 pigs. Dr Won Hyung Lee of the Korean Pig Producers Association told Asian Agribiz that as preventive measures, all the pigs in the affected farm have been slaughtered and no movement of pigs is allowed within and out of the province. “We are still surveying the status of the spread. It is ‘O’ type and homogeneity of virus is being processed now,” he said, adding that although the severity of the problem cannot be identified at present, he does not see the damage resulting from it to be great.
|EU delegates to inspect Thai fishing industry this week|
[18 January 2016] Thailand is prepared to report on the progress of its clampdown on illegal, unreported and unregulated (IUU) fishing to the European Union this week, said General Prawit Wongsuwan, Deputy Prime Minister. General Prawit told The Nation that 2,076 fishing vessels of over 60 tonnes gross were equipped with a vessel monitoring system. EU representatives will visit Thailand from January 18 to 22. Meanwhile, Captain Benjamaporn Wongnakornsawong, secretary for public affairs at the Command Centre to Combat Illegal Fishing (CCCIF) said that the authorities have completed 80% of the IUU requirements in terms of law and policy. The EU gave Thailand a warning last year to fix the problem or face an export ban to the EU.
|Illegal Indian beef suspected in Indonesia|
[18 January 2016] The Indonesian Cattle and Buffalo Farmers Association (PPSKI) suspects that there was an illegal circulation of Indian beef in traditional markets in Indonesia between 2012-2015. Teguh Boediyana, PPSKI Chairman, said based on India’s trade data, “we found around 800 tonnes or 120 containers of Indian beef were exported to Indonesia in 2012 while in 2015 the beef exports was 82 tonnes.” Mr Teguh explained that India is not free from foot and mouth disease (FMD) and Indonesia prohibits beef from India due to the FMD status. “We suspect that the beef is repacked and sold at traditional markets,” he said.
|Aman feed to tie up with Tamim Agro|
[18 January 2016] Bangladesh’s fisheries and livestock feed producer Aman Feed Limited has decided to tie up with Tamim Agro for floating fish feed production and supply. Under the agreement, Aman Feed will provide raw materials and Tamim Agro will produce and supply floating fish feed to the company on a monthly basis. Aman Feed will sell this floating fish feed through its existing distribution network in the country. According to a disclosure posted on the Dhaka Stock Exchange, the agreement will be implemented from March 1, 2016.
|Vietnam hit by H5N6|
[18 January 2016] Vietnam has reported two more H5N6 avian flu detections in poultry, according to a report last Thursday to the World Organization for Animal Health, OIE. Both were in backyard poultry, in Tuyen Quang province in the north and in Kon Tum province in the south central region. The virus killed 1,045 birds, with the remaining 3,511 were culled to curb the spread of the disease. Vietnam is among four countries reporting recent H5N6 detections. The others are China, Laos, and Hong Kong.
|Feeding for superior pig performance|
[15 January 2016] Genetic developments have led to changes in the way pigs are raised and fed. Feeding pigs correctly will allow them to make the most of their genetic potential in terms of performance and producing high quality pork. At Asian Agribiz’s 2016 Pig Feed Quality Conference on March 31-April 1 at The Landmark Hotel in Bangkok, Thailand, nutritional approaches on how to achieve superior pig performance will be tackled, including how to reduce the negative impact of heat stress, a common problem for Asian pig producers. For more details, contact Omthong Tjoa or Sutasinee Lake at email@example.com, or find more details here.
|Danish Farm Concept signs contracts in Vietnam, Philippines|
[15 January 2016] Danish Farm Concept, a collaboration between six companies that can deliver the complete Danish model for pig production, has signed the first contracts to supply investors in Vietnam and the Philippines. Bjarne Kornbek Pedersen, a director of one of the participating companies, Danish Farm Design, said the Danish Farm Concept offers a holistic package, with expertise ranging from farm design, genetics, biosecurity, nutrition and health, education programs, and pig farm management. The pig production facilities on the way to Vietnam and the Philippines will be tailored to local needs and conditions, and once in operation will supply safe food to consumers and deliver good returns to investors.
|Indonesian fish farmers encouraged to use water hyacinth meal|
[15 January 2016] Indonesia’s Ministry of Fisheries & Marine Affairs is encouraging fish farmers to utilise water hyacinth meal as rice bran replacement. Slamet Soebjakto, Director General of Aquaculture, said water hyacinth is so far not used, but if processed into meal, it contains 12.5% of protein. In addition, the price of water hyacinth meal (around USD 0.07/kg) is cheaper than rice bran (around USD 0.28/kg). “Water hyacinth meal is a potential alternative feed ingredient to help farmers reduce production costs,” Mr Slamet said.
Highlights in Asian Meat Magazine, January/February 2016
[15 January 2016]
Prepacked, branded meat makes headway in Asia
As urbanisation spreads throughout Asia, its consumers are increasingly becoming more accepting of chilled and frozen meat, but at different paces in various countries. While some consumers have embraced prepacked, precut and preweighed meat, others continue to cherry-pick. ISA Q TAN and the ASIAN AGRIBIZ team take a look at how chilled and frozen meat are currently retailed around the region.
China’s booming e-commerce disrupts the grocery value chain
Growing e-commerce is disrupting every segment of the Chinese consumer market, and that includes meat, fish and other perishable products once thought impossible to deliver at home. In this first of a two-part series, RICH HERZFELDER reports that meat companies are wrestling with new business models even as they rush to keep up with a booming market.
Thai producers clean up their act
In the wake of allegations of abuse of migrant workers now in the animal protein sector, Thailand will be forced to upgrade its most valuable asset and comply with international standards. This will only make the industry stronger as a global food exporter, notes PAYUNGSAK WIRIYABUNDITKUL.
Pronic to triple production and revive further processing
Probiotic chicken producer, Pronic Indonesia produces 10,000 carcasses per month, but this does not fulfil growing demand. Plans are afoot to triple production to 30,000 carcasses, writes ARIEF FACHRUDIN.
SPECIAL REPORT–Livestock players express mixed reaction to TPP deal
The Trans-Pacific Partnership (TPP) agreement has the potential to set the standards for 21st century international trade, promoting the movement of goods, capital and ideas that could spur economic growth. The ASIAN AGRIBIZ team looked at reactions to the agreement and the impact it will have on the animal protein sector.
|Thailand’s Tanaosree Group to export cooked chicken to Japan |
[14 January 2016] Thailand’s Tanaosree Group will export its cooked chicken meat to Japan in Q3 this year, Kanop Sujikara, Deputy Managing Director of Tanaosree Group told Asian Agribiz. The firm is building a processing facility for cooked chicken in Nakhon Pathom province and the facility will come online in the third quarter Mr Kanop said, adding that “export of cooked chicken to Japan in 2016 is estimated at just USD 5.52 million in value terms. This will be a trial period for us to export cooked chicken.” Meanwhile, Tanaosree Group exports 800 tonnes of raw chicken meat to Japan each month. Tanaosree Group has set its revenue target for this year at USD 220.49 million, around 30% of its revenue will come from exports.
|CAB Cakaran to generate 50% of revenue from overseas ventures|
[14 January 2016] Malaysian integrator CAB Cakaran Corp Bhd expects its overseas and export business to generate about 50% of revenue in two years, in line with its strategy to diversify its revenue base. Group Managing Director Chris Chuah told StarBiz that the group’s proposed business venture for an integrated halal poultry farm in Indonesia with Indonesia-based Salim Group would be a key growth-driver. “Indonesia has the world’s largest Muslim population, which would create steady demand for our halal broiler meat,” he said. The JV aims to have a production capacity of 4-5 million birds per month in three years’ time, with ready demand from the Salim Group’s convenient stores, and could generate USD 227million in total revenue in three to five years, the report added.
|China stock authorities probe Shandong Delisi|
[14 January 2016] Shandong Delisi Foods, one of China's largest meat processing companies, is under investigation by China’s stock market authorities. The China Securities Regulatory Commission (CSRC) is investigating unspecified violations of stock market disclosure requirements. The company is actively cooperating with the CSRC, while production and distribution operations are unaffected, a company statement said. Delisi recently announced a joint venture with Australian meat packer Yolarno Pty to build a processing plant in Qingdao. Delisi’s previous Chairman, Zhang Heping, resigned in March 2015 due to personal reasons.
|Indonesia's cattle imports insufficient says Apfindo|
[14 January 2016] Indonesia plans to import 600,000 live cattle to meet local demand for beef. However, according to Joni Liano, Executive Director of the Indonesian Beef Cattle Feedloters Association (Apfindo), this is not enough and the ideal number is 780,000 heads. “This is based on per capita beef consumption of 3.09kg and the number of local cattle,” he said. Mr Joni hopes the government will adjust the number after evaluating the trend of beef supply and demand in Q1 and Q2. This year’s live cattle import quota decreased 2.7% compared with 2015.
|India banks on FDI to boost food processing|
[14 January 2016] India’s Ministry of Food Processing Industries has advocated 100% foreign direct investment (FDI) in multi-brand retail of food products as it would give the much needed boost to the food processing sector. Union Food Processing Industries Minister Harsimrat Kaur Badal said that it would also help in development of infrastructure such as cold chains that are critical for the food processing sector. “This will also act as an incentive for global players in the sector to start operations in India,” she said.
|Lay Hong ties up with Japanese firm NH Foods|
[13 January 2016] Malaysian poultry company Lay Hong Bhd plans to set up a joint venture with Tokyo Stock Exchange-listed NH Foods Ltd to expand its business overseas. According to the filing, NH Foods shall be responsible for, and shall contribute its expertise in the areas of R&D and manufacturing of further processed foods, and be responsible for matters relating to the sales and export of further processed foods to overseas markets including Singapore and Japan. Lay Hong shall be responsible for matters relating to the operations of the JV company in Malaysia, including licensing, taxation, obtaining certifications such as the halal and HACCP certifications, procurement of land/leasing of land, logistics and sales and marketing in Malaysia.
|Small increase in pig population expected in Indonesia |
[13 January 2016] Indonesia’s pig population in 2016 is expected to record a small increase over last year as many farmers are controlling their sow populations due to oversupply in 2015, according to Phaitoon N Na Ayudhaya, Business Development Advisor of Charoen Pokphand Indonesia. Mr Phaithoon told Asian Agribiz that farmers in Solo, Central Java will maintain the same population as last year. He added that land availability is limited and the local government is tight in giving permits for new pig farms. “I hope farmers in West Kalimantan and North Sumatera also control their sow population. If they don’t, they will send their excess to Greater Jakarta, and this will affect price and farmers in Solo,” he said. Mr Phaithoon predicted that production cost of live pigs will increase due to higher feed prices.
|Fishmeal exports from Mexico to China doubled in five years|
[13 January 2016] Mexican fishmeal producers reported that exports to China last year stood at 215,000 tonnes, almost double the sales in 2010, when the market was opened to fishmeal exports to China, the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food said. Last year the National Health, Food Safety and Quality Service issued 141 Certificates of Aquaculture Health for marketing different types of fishmeal, among which are steam dried fishmeal, fishmeal with addition of antioxidants, Mexican sardine fishmeal, 100% Mexican fishmeal, thread herring fishmeal and Atlantic mackerel fishmeal, among others. Mexico exports fishmeal and fish oil to countries around the world including Malaysia, Indonesia, Japan and Bangladesh.
|Cattle feedmill commissioned in Kerala|
[13 January 2016] Kerala Feeds Ltd, a government undertaking in India’s Kerala state recently commissioned its 300 tonnes/day cattle feed plant in Thiruvangoor. State Agriculture Minister KP Mohanan said that the USD 8 million feedmill will boost cattle feed supply to different locations in the state through 2,600 outlets. The 10.72 acre complex that houses the feedmill also has seven silos for storing feed raw materials. “The MMCP (Milling Mixing Cooking Pelleting) processing technology with imported batch mixer and pellet mill would meet all the modern quality requirements and address the shortage of standard feed in the Kerala market,” he added.
|Meat packaging sales to achieve single-digit growth|
[13 January 2016] A report by Future Market Insight (FMI) said meat packaging sales will achieve single-digit growth between now and 2025. Demand for new and improved meat packaging across Asia Pacific, Europe and the US is expected to help the meat packaging industry enjoy a decade of modest growth. Thanks to growing urbanization in large landmass countries such as China, coupled with a rise in demand for convenient products, meat packaging has been flourishing, the report said.
|The importance of early nutrition in pig production|
[12 January 2016] Early nutrition strongly influences a pig’s lifetime potential. Thus, feeding of piglets should aim to maximise feed intake to allow a better maintenance of gut health, improve future feed conversion rates and subsequent long term performance. At Asian Agribiz’s 2016 Pig Feed Quality Conference, set to be held on March 31-April 1, 2016 at The Landmark Hotel in Bangkok, Thailand, pig producers will get updates on how to fine tune piglet nutrition and get better results from their animals. Contact Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org, or click here for more information.
|Bangkok Ranch’s earnings to recover in 2016|
[12 January 2016] Thailand’s Bangkok Ranch's (BR) earnings are expected to recover this year, boosted higher domestic duck consumption and gains in sale price and volume in the Netherlands. BR is the largest fully integrated duck-meat producer in Thailand. Bualuang Securities said that nascent economic recovery in Thailand will increase domestic duck consumption and enhance BR’s pricing ability with clients in 2016. Moreover, BR plans to tap into Quick Service Restaurant (QSR) products and is in talks with QSR chains, such as Minor, Oishi and McDonalds. BR is also planning to acquire a 30% stake in a China-based duck operator. The deal is expected to be finalized in the first quarter of 2016.
|New mini fish feedmill in Sukabumi|
[12 January 2016] Indonesia’s Ministry of Fisheries & Marine Affairs recently inaugurated a new mini fish feedmill in the Freshwater Fish Culture Agency in Sukabumi, West Java. Slamet Soebjakto, Director General of Aquaculture, said the plant can produce 1.2 tonnes of catfish, tilapia and pangasius feed per day. The feed will be sold to fish farmers in the region at USD 0.36/kg. To reduce cost of production, the plant will use local ingredients such as fishmeal, tapioca and water hyacinth. “We hope the plant will help farmers in the region improve their production and at the same time reduce their cost of production. In addition, the plant is open for farmer groups who want to learn about feed plant operations,” said Mr Slamet.
China lifts import ban on live shrimp from Vietnam
[12 January 2016] China’s Administration of Quality Supervision, Inspection and Quarantine removed the country’s ban on import of live shrimp from Vietnam. According to the Vietnam Association of Seafood Exporters and Producers (Vasep), shrimp exports to China in 2015 totalled USD 344 million, down nearly 17% from 2014. China is currently the fourth largest importer of Vietnamese shrimp after the US, Japan and the European Union. Vietnam’s main shrimp exports are frozen tiger shrimp, which account for 30% of total shrimp exports, frozen white shrimp (30%), processed shrimp, lobsters and live crayfish. Vasep said in addition to processed shrimp, China buys unprocessed shrimp from India, Ecuador and Vietnam because its production of farmed shrimp declined in 2015.
|Cargill revenue falls 10% in Q2 2016|
[12 January 2016] Cargill Inc’s revenue fell 10% to USD 27.3 billion in the last quarter due to sliding beef prices and weaker demand in some markets. Revenue for the first half, meanwhile, totalled USD 54.8 billion. The company reported stronger profit from its animal feed and soybean processing segments. “Within the segments, we saw performance gains in key global businesses, including animal nutrition, grain and oilseed processing, most of our poultry operations, and several food ingredients categories,” said David MacLennan, CEO. And we are delighted to welcome global salmon feed producer Ewos to Cargill, as it brings new markets and deep expertise in nutrition for cold-water species.”
|Dubai accredits Philippine Peking duck producer|
[11 January 2016] A Peking duck producer in the Philippines, Maharlika Agro-Marine Ventures Corp, received halal certification from Dubai’s Ministry of Water and Environment, opening doors for the company to export its products to the Middle East. “We are currently negotiating with a few importers,” Vicente Lao, President and CEO of Maharlika told Asian Agribiz, adding that the company “will be exporting to the Middle East and Iran thru Dubai this year.” Maharlika has been exporting Peking duck to Japan since 2014, and is also developing the domestic duck meat market.
|Thailand’s CPF adopts new policy on corn purchase|
[11 January 2016] Charoen Pokphand Foods' (CPF) subsidiary, Bangkok Produce Merchandising (BKP), has introduced a new policy on corn purchase, directing farmers to commit to responsible practices in line with CPF’s sustainable sourcing policy. BKP has setup a corn traceability system and from January 1, 2016 onwards, the firm will purchase corn only from registered corn farmers and business partners. Somchai Kungsamutr, President and CEO of CP’s Feed Ingredients Trading Business Group said that “corn traceability system is a starting point for jointly solving natural resources and environmental problems in a sustainable way.”
|IBS Synergies to build poultry slaughter plant in Romania|
[11 January 2016] India's IBS Synergies’ USD 150 million investment in Romania will include a poultry processing plant with a slaughtering capacity of 30 million broilers per year. Chairman Dr Bindra told Asian Agribiz that Meyn has designed the plant taking into consideration animal welfare, sustainable processing and innovation. It will introduce steam scalding, automatic deboning and reduced animal handling for hygienic products. The company also has plans for the slaughterhouse to produce further processed products in the future. Currently it hopes to produce 1.2kg fresh and frozen whole birds, as well as parts. According to Dr Bindra there is a deficit in the poultry market in Romania making it an attractive market for the company.
|India to increase fisheries output by 2020|
[11 January 2016] The Indian government plans to increase fisheries production from the existing 10 million tonnes/year to 15 million tonnes/year by 2020. Aditya Kumar Joshi, Joint Secretary (Fisheries) of the Government of India said that the government has set an outlay of about USD 450 million for the implementation of the ‘Blue Revolution’ program in the next five years. “In the marine fisheries sector, the focus will be on upgrading technology and on developing and strengthening fisheries harbours and fish landing centres in the coastal areas of the country,” he said. According to him, the development of cold chain, fish processing centres, ice plants and marketing infrastructure will be part of this plan.
|Indonesia still far from beef self-sufficiency |
[11 January 2016] The Indonesian Cattle and Buffalo Farmers Union (PPSKI) is not certain that Indonesia can achieve self-sufficiency in beef by 2017 despite the government’s efforts. Self-sufficiency in beef is defined by the PPSKI as needing to import less than 10% of the nation’s total demand. Indonesia’s beef demand is estimated at more than 3.8 million (live cattle) in 2016, and the government is set to import up to 600,000 live cattle this year, nearly 16% of total demand.
|Ban on GM feed ingredients would push up prices|
[08 January 2016] Should the ban on GM feed ingredients in the Philippines continue, the immediate and direct consequence would be higher prices, with one official from the Department of Agriculture telling Asian Agribiz that prices of chicken, eggs and pork products could double or even triple the current prices. An industry source, citing price quotations by transcontinental traders, said rough estimates peg prices of non-GM corn and sbm at about USD 100/tonne more than GM corn and sbm. This would translate to an increase of about USD 1.00–1.70/kg in commercial feed prices, which in turn could push up production cost by USD 0.04–0.06/kg live weight for chicken and USD 0.06–0.08/kg live weight in large farms.
|Thailand’s TFG buys stake in Japan’s Seven Foods|
[08 January 2016] Thailand’s Thaifoods Group’s subsidiary, T Paragon Holding has acquired a 45.71% stake in Seven Foods Co Ltd, Japanese chicken producer, for a total value of USD 265,771. ThaiFoods Group (TFG) is a chicken and pork integrator in Thailand, while Seven Foods undertakes import, export, processing and sale of chicken meat and chicken products and other related businesses in Japan. TFG’s Deputy Managing Director Duangkamol Saisee said that investing in Seven Foods was in line with TFG’s plan and strategy to expand its export business. The acquisition will increase distribution channels for TFG’s export products.
|India allows duty free import of corn|
[08 January 2016] The Indian government has allowed PEC Ltd, a state owned trading firm to import up to 500,000 tonnes of corn at zero duty as drought has affected production for the second straight year. “At present, corn attracts 50% import duty and the zero duty concession is provided following representation from the poultry and animal feed industry,” K Unnikrishnan, an official with India’s Commerce Ministry told Asian Agribiz. However, as per government policy only non-GM corn can be imported. A global tender has been floated by PEC Ltd to meet the poultry industry’s demand.
|Indonesia’s fishery expands 8.37% in Q3 2015|
[08 January 2016] Indonesia’s fishery sector expanded 8.37% year-on-year in Q3 2015. According to Susi Pudjiastuti, Minister of Fisheries and Marine Affairs, the growth can be attributed to an increase in production of both captured and farmed fish. Captured fish rose by 5.03% to 4.72 million tonnes in Q3 2015 while farmed fish production rose 3.98% to 10.07 million tonnes. Mrs Susi is optimistic about the fishery sector's growth in 2016 as the central government has earmarked about USD 1 billion in its budget for her ministry, a 31.4% increase from the 2015 budget.
Highlights in Asian Pork Magazine, January/February 2016
[08 January 2016]
New Hope Liuhe plays big in Xiajin
Along an ancient bed of the Yellow River, New Hope Liuhe is building what will become one of the largest and most modern pig production complexes in the world. RICH HERZFELDER reports that company is planning five state-of-the-art farms at Xiajin, in Shandong Province, that will eventually become a home to 25,000 sows. The estimated price tag: about USD 43 million.
Tuyen Farm profits with quality leftovers
Over the past few years, high cost and farm inefficiencies have led many hog farmers in Vietnam to postpone or even stop stocking. Finding a way to reduce cost in a sustainable way is essential for small and medium-sized swine operations. HA THU writes about one farm that has been beating the odds by utilising a local feed resource that allows it to produce good quality and affordable pigs for the market.
Reliable partner needed to successfully import pigs
Asia currently relies on importing pigs to support continued growth in its pig production industry. To ensure that imported pigs have the best pedigree and are delivered safely in compliance with complex import regulations, partnership with a reliable supplier is essential. Dr WOUTER DELEY writes how leading global pig breeding company, Hypor, has provided pig producers throughout the region with pigs of top genetic quality, as well as expert support and services that extend beyond the physical transfer of pigs and pig semen, for many years.
Improving Reproductive Performance
Typically when we consider pig production, our first thoughts are around finishing performance, such as FCR, ADG and mortality. The importance of reproductive performance, however, is still often neglected or overlooked in Asia. GEORGE ARETIS considers realistic approaches to improving reproductive results.
Supporting the immune system of piglets
Piglets with insufficient immunity cannot cope well with stressful situations as they are more prone to pathogen infection, most likely causing diarrhoea. It is not only that cost and mortality increase when piglets get sick, but also and perhaps most importantly, their full performance potential for growth cannot be achieved. FELLIPE FREITAS BARBOSA and INGE HEINZL report that strengthening the immune system by supplying natural egg immunoglobulins is a feasible alternative in swine production.
In part, structural (leg) lameness may be explained by the occurrence of osteochondrosis, which may cause premature culling among breeding gilts and sows and decreased growth performance of fattening pigs, resulting in significant economic losses. While it is impossible to prevent the occurrence of ostoechondrosis, it is possible to intervene in its progression writes THAU KIONG CHUNG.
|Philippine grain imports not affected by ruling on GMO|
[07 January 2016] Following the Philippine Supreme Court’s ruling nullifying the Agriculture Department’s regulations that allows the importation of genetically modified (GM) crops, the department assured importers with existing transactions for soybeans and soybean meal (sbm), the bulk of which are GM products, that their deliveries will be allowed. A consultant nutritionist told Asian Agribiz that the Bureau of Animal Industry will issue a memo to sanction arrivals whether or not they are labelled GMO or Non-GMO. Meanwhile, Agriculture Undersecretary Jose Reaño told Asian Agribiz that the department is working on new guidelines that will address issues raised by the Supreme Court ruling to prevent or minimise any disruptions in future importations. The Philippines is 100% dependent on imported soybeans and sbm.
|Bioceleng expands its portioned cuts market to Jakarta|
[07 January 2016] Indonesia’s Bioceleng Farm has widened its market reach to Jakarta. In early January the Bali-based pig farming firm sent chilled portioned cuts such as ribs, belly and boneless leg to an international hotel in the capital city. Romeo Alfonso, owner, told Asian Agribiz: “It was the first shipment. It is not easy to supply pork to the hotel since they are concerned about quality, hygiene and safety, but we met all their requirements.” Since early 2015 Bioceleng has been operating its manual pig slaughterhouse with a capacity of 10 pigs/day. The slaughterhouse is equipped with freezers.
|IBS Synergies to build fully automatic feedmill in Romania|
[07 January 2016] India's Chandigarh-based IBS Synergies’ USD 150 million investment in Romania will include a fully automated feedmill capable of processing 10 tonnes of corn, wheat, full fat soy, wheat bran and premix per year. It is designed to continually analyse the mix of feeds to maximise growth rate and minimise feed conversion rate for the animals, Chairman Dr Bindra told Asian Agribiz. The plant’s receiving station is capable of receiving 100 tonnes per hour of raw material. Storage silos will be large enough to store six months of raw material.
|Taiwan and China report more bird flu outbreaks, infections|
[07 January 2016] Taiwan has reported 10 more avian flu outbreaks, all from December. Seven involved H5N2, and three were linked to H5N8. The country has been battling both viruses in poultry for the past several months. The H5N2 outbreaks struck six farms and one slaughterhouse in Changhua, Pingtung, and Yunlin counties, as well as Taipei City. Meanwhile China confirmed two human H5N6 infections in the past week. Both infections involved women from Guangdong province, one from Shenzhen and the other from Zhaoqing.
|India’s oilmeal export contracts by 34%|
[07 January 2016] Export of oilmeal from India fell by 34% to 389,000 tonnes in December 2015 compared to 590,000 tonnes in December 2014, mainly due to decline in soybean meal shipments, industry body Solvent Extractors Association said. “Export of soybean meal greatly reduced in the past nine months due to total disparity for soybean meal in the international market,” the association said in a statement.
|Thailand’s CPF to invest in East Africa|
[06 January 2016] Thailand’s Charoen Pokphand Foods (CPF) will invest more in Africa, home to more than 50 countries with an estimated population of 1.2 billion people, Adirek Sripratak, CEO of CPF told bangkokbiznews. Countries with good investment potential include Tanzania, Ethiopia and Kenya, Mr Adirek said, adding that CPF has invested in chicken farming and a feedmill in Tanzania and the firm is studying investment opportunities in Ethiopia. He said that chicken is in high demand in Tanzania and local chicken prices are high. CPF aims to increase annual revenue to USD 19.36 billion in the next five years, from approximately USD 11 billion currently. More than 60% of CPF's revenue now comes from overseas markets.
|IBS Synergies’ Romanian investment in early stage of development|
[06 January 2016] India's Chandigarh-based IBS Synergies’ USD 150 million investment in Romania will see an integrated poultry production that includes a hatchery, broiler farms, a feed processing plant and a slaughterhouse. “We have registered IBS Synergies Agro Company SRL in Romania, headquartered in Braila. The project is divided into various phases and is at the initial stage of development,” Chairman Dr AS Bindra told Asian Agribiz. He said there are two parts to the project. The arable farming operations will produce corn and soy for poultry feed while the poultry operations, with a targeted annual capacity of 30 million broilers, will produce dressed birds for the local market. The feedmill, meanwhile has a planned production capacity of 200 tonnes per day.
|KPS expands pig production facilities in North Sulawesi|
[06 January 2016] Indonesia’s Karya Prospek Satwa (KPS), a partner of Charoen Pokphand (CP) Indonesia that focuses in pig breeding and contract farming, is setting up a new pig station with a 250-300 sow capacity in North Sulawesi. KPS already has a pig station with a capacity of 150 sows there. Phaithoon N Na Ayudhaya, Business Development Advisor and Pig Specialist of CP Indonesia, told Asian Agribiz that construction is underway and the facility is expected to be operational in the first semester of 2016. “Around 30% of the piglets produced at the facility will be sold to pig farmers in the region while the rest will be raised as breeding stock. Since many farms there are weak in biosecurity, the piglets will also be vaccinated,” Mr Phaithoon said. “The piglets will be sold together with CP’s pig feed as a package.”
|Alibaba puts USD 1.25 billion into restaurant aggregator ele.me|
[06 January 2016] Chinese Internet giant Alibaba has invested USD 1.25 billion in ele.me, a major Chinese restaurant aggregation website, according to a report by Caixin, a leading financial website. The investment gives Alibaba 27% ownership of ele.me and values the website at USD 4.6 billion. Ele.me and other restaurant aggregators allow consumers to inspect menus, order meals and receive prompt delivery. They have been growing rapidly in the last year, drawing business from branded bricks-and-mortar restaurants like Pizza Hut.
|Indonesia to bring in 200k cattle in Q1|
[06 January 2016] The Indonesian government is preparing to import cattle in the first quarter of 2016 in an effort to keep inflation within its 3-5% target, according to Darmin Nasution, Coordinating Minister for Economic Affairs. The government has decided on a quota of 600,000 head of cattle, or 238,000 tonnes of beef, Mr Darmin said. “The plan is to bring in 200,000 head in Q1 and 150,000 in Q2. For the third and fourth quarters, import will depend on developments in the previous quarters,” he explained. Indonesia’s annual beef consumption stands at about 675,000 tonnes, while local farmers can only produce 416,000 tonnes of beef.
|Ciomas sets up chicken processing plant for research |
[05 January 2016] Indonesia’s Ciomas Adisatwa, a subsidiary of Japfa Comfeed Indonesia, recently partnered with the Faculty of Animal Science of Gadjah Mada University in Jogjakarta to set up up a chicken processing plant for research and teaching purposes. The plant, which will cost around USD 2.5 million, will have a capacity of 2000 birds/hour and will be located in Sleman, Jogjakarta. According to Yahya Djanggola, Director of Ciomas, the partnership will last for five years and after that the plant will be granted to the university. Mr Yahya informed that in 2003 the company also set up two broiler houses with a capacity of 50,000 birds as a teaching farm for the university.
|Chicken prices in India increase on high demand|
[05 January 2016] Broiler prices in India have surged by close to 40% in the past fortnight fuelled by higher demand. The average farm gate chicken price rose from USD 0.97/kg on December 18 to USD 1.35/kg on December 28. PG Pedgaonkar, Deputy General Manager at Venky’s said that chicken prices usually increase by up to 30% during this season but this year the prices have shot up as production contracted. The decline in production was due to prevalence of a cold wave in north India and cut in production by poultry farmers.
|North Sulawesi aims to be free of hog cholera |
[05 January 2016] Indonesia’s North Sulawesi Pig Farmers Association and the local government are aiming for the province to be free from hog cholera by 2020. According to Phaithoon N Na Ayudhaya, Business Development Advisor and Pig Specialist of Charoen Pokphand Indonesia, starting from January 2016 the association and the local animal husbandry agency will discuss strategies and policies to achieve the target. Mr Phaithoon told Asian Agribiz that there are three steps - stamping out of infected pigs; limitation of pig distributions from outside North Sulawesi, especially from infected regions; and no hog cholera vaccination for at least one year. In 2015 there were no outbreaks of hog cholera in the province.
|Trial in Shanghai OSI case, no verdict issued|
[05 January 2016] A Shanghai court has completed the trial of two OSI China units and 10 OSI China employees over the production and sale of sub-standard meat products in 2014, according to media reports. The trial lasted three days and was completed last week, but no verdict has been announced. The scandal began in July 2014, when a Chinese TV report claimed workers at an OSI Group production facility in Shanghai were using out-of-date meat and other unsafe practices. OSI suspended operations at the unit involved, Shanghai Husi Food Co Ltd. When the indictments were issued last September, OSI said it had “confidence in China’s legal system,” but it has not commented on reports of the trial.
|South Korea lifts ban on Canadian beef, veal|
[05 January 2016] South Korea has lifted its temporary ban on beef and veal imports from Canada, 10 months after suspending trade following confirmation in February 2015 of a case of bovine spongiform encephalopathy in a beef cow in Alberta. The move gives Canadian exporters of veal and beef renewed access to a market that was their sixth largest in 2014, generating around USD 18.8 million in sales that year, according to the Canadian government. “South Korea holds huge potential for beef and especially cuts. The country is a market that will pay more for those select items and that helps to increase the overall value of the animal for producers,” said Chrystia Freeland, Canada’s Minister of International Trade.
Asia's seafood sector looking to a good year in 2016
[04 January 2016]
The global fish and seafood market is expected to grow at a CAGR of more than 4% from 2016-2020, mainly due to growing demand for processed seafood. Time-strapped consumers prefer processed seafood that is convenient and often available in ready-to-cook packaging. The fresh and chilled fish and seafood segment dominated the market in 2015 in terms of revenue.
Processed seafood to lead seafood market rise
Growing health consciousness among consumers has led to increased demand for quality food, and changing demographics is fuelling the growth of this segment. Asia Pacific accounted for more than 40% of the market share in 2015 in terms of revenue. The primary factors contributing to the growth of the market in this region is population growth and the large number of people who consume fish. Countries like China, India, Japan, Thailand, Australia, Bangladesh, Singapore and Malaysia are the key contributors here.
Perindo to revamp Muara Baru fish market
Perindo, an Indonesian fisheries public company, together with the Ministry of Fisheries and Marine Affairs, plans to revamp the 110-ha Muara Baru fish market in North Jakarta this year. Perindo wants to make it modern and convenient for people to buy fish there. According to Agus Suherman, Perindo President Director, the firm aims to increase the cold storage capacity from 600 tonnes to 5000 tonnes, open a warehouse for equipment reparation and have a sea water reverse osmosis unit that will be able to supply 1500 cubic meters of clean water daily.
Tilapia production sees strong growth
Global tilapia production grew from 830,000 tonnes in 1990 to over 4.8 million tonnes last year. The strongest growth came from Asia (except for China), up from 340,000 tonnes in 2000 to 1 million tonnes in 2013. China has been the biggest producer in the world with production ranging from 1.1-1.5 million tonnes per year since 2008, followed by Egypt and Indonesia. Vietnam’s exports grew from 2012-2014 and by 2020, it aims to reach 25,000 ha of farming area with an estimated yield of 200,000 tonnes, half of which will be qualified for export. To reach this, Viet Nam Directorate of Fisheries has implemented a two-year development project, which will import high quality fingerlings for better growth, resistance to diseases and high adaptation to brackish water farming.
Indonesia needs better cold storage facilities
Fishery industry players in Indonesia have urged the government to address supply chain issues in the distribution of fresh fish to the local fish processing industry. Ady Surya, Chairman of the Indonesian Fish Cannery Association, said that the organization, an association of 41 fish processing companies, saw a 50% drop in exports in 2015 due to insufficient supply of fresh fish. “Fish stocks are now abundant [after the government took drastic action to combat illegal fishing] but they are not fresh so we cannot process them,” he said. According to him, the government should provide better cold storage facilities near ports to keep fish fresh. On the other hand, the government is currently in the process of attracting more investors to open cold storage facilities and increase electricity supply to increase ice production.
Vietnam seafood exports down 14% over last year
Vietnam’s seafood exports fell to an estimated USD 6.72 billion in 2015, down 14.3% over 2014. The seafood sector saw many challenges in 2015, especially in the export markets, Deputy Head of the Directorate of Fisheries Nguyen Thi Thu Nguyet said. Reduced seafood export turnover on the global economy's modest growth rate, competition from rival countries, diseases, and antidumping tariffs imposed on Vietnam’s tra fish in the US market, and stricter requirements on levels of banned substances in other markets, contributed to export decline, she noted. However, Minister of Agriculture and Rural Development Cao Duc Phat said, despite these challenges, total seafood output increased 3.8%.
|Thailand’s FPT to expand to GCC countries|
[31 December 2015] Thailand’s FPT Food Process Technology, distributor of food processing and packaging equipment used in the meat processing industry, took over Dubai-based Savico in August to expand within the Gulf Cooperation Council (GCC), Axel Arras, Managing Director of FPT Food Process Technology told Asian Agribiz. Countries in the GCC include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. FPT has been doing business in India, Sri Lanka and Pakistan and Dubai is not far from these countries, said Mr Arras, adding GCC members enjoy high meat consumption. “There is a good synergy effect and we will have higher business efficiency,” he said.
|Austfeed’s fifth feedmill to be in Mekong delta |
[31 December 2015] Austfeed Vietnam Corporation has been given an investment licence for a new feedmill in Dong Thap province, Mekong delta. Austfeed Mekong will be built with an investment of USD 30 million and a capacity of 400,000 tonnes per year. Ground breaking for the project is targeted for the first quarter of 2016 and the feedmill will likely be operational by February 2017. “This will be Austfeed’s first feedmill in the south of Vietnam. When it is completed our products will be available nationwide. The fully automated feedmill will have energy efficient machines from Europe and the US,” Dao Manh Luong, CEO, told Asian Agribiz. It will produce feeds for swine, chicken and ducks.
|Indonesia’s aqua feed consumption to grow 10-15% in 2016|
[31 December 2015] Denny Indradjaja, Chairman of the Indonesian Feed Millers Association for Aqua Feed Division, is optimistic that in 2016 the aqua feed industry will continue to grow positively. “Growth [in aqua feed consumption] at 10-15% is achievable for 2016.” According to him, the industry can grow more than 15% if the government and private sector together boost the production of mariculture. “It is time for the private sector to invest in high-value marine fish such as snapper and grouper. We have the potential to develop it for both the local and international market,” he told Asian Agribiz. The consumption of mariculture feed is only around 10,000-12,000 tonnes a year now.
|H7N9 claims a victim in Guangdong province|
[31 December 2015] Hong Kong's Centre for Health Protection (CHP) has confirmed a fatal case of H7N9 avian flu in Guangdong province, China, on December 26. The 61-year-old man had visited a local market and had contact with live poultry. He was admitted to a local hospital on December 22 and died the next day the CHP said. China's mainland has confirmed 664 human cases of H7N9 since 2013.
|European Union eases shrimp export from Bangladesh|
[31 December 2015] Bangladeshi exporters will now be able to export frozen shrimp products to Europe more easily as the European Union has abolished the provision that required a separate health certificate for every shrimp consignment from Bangladesh. The Fisheries and Livestock Ministry’s Additional Secretary Anisur Rahman said that the EU was satisfied with the quality of shrimp from Bangladesh. Bangladesh earns around USD 192 million from shrimp exports annually.
|Cofco assumes full ownership of Noble Group’s agri division|
[30 December 2015] Chinese food production giant Cofco has acquired the remaining 49% of Noble Agri from Noble Group for USD 750 million. Combined with its USD 1.5 billion purchase of 51% of Noble Agri shares in 2014, Cofco now owns Noble Group’s agriculture division. Noble is Asia’s biggest commodity trader by sales and Noble’s agricultural unit stores, processes and trades sugar, grains, oilseeds, and cotton. The completed acquisition of Noble Agri, combined with the 2014 acquisition of 51% share of Dutch grain trader Nidera, is a step toward Cofco’s ‘guiding vision: to be a multi-flag world-class global agribusiness’, according to CEO Matt Jansen. Noble Agri will become Cofco’s overseas purchasing platform, linking the company’s ‘upstream origination and trading operations with downstream processing and distribution capabilities of Cofco Corporation and its affiliates’.
|AEC no challenge in aqua feed sector|
[30 December 2015] The Asean Economic Community (AEC) will not affect the aqua feed industry in Indonesia since the main aqua feed producers have plants almost in every Asean country, according to Denny Indradjaja, Chairman of the Indonesian Feed Millers Association (Aqua Feed Division). The production cost of feed between countries in the region is relatively the same. “So the biggest impact will be in the end product (fish). That is why Indonesia’s processed and further processed fish products have to be able to compete with other countries in the region,” he told Asian Agribiz.
|Hong Kong opens poultry market for India|
[30 December 2015] Hong Kong has announced the opening of its market to Indian chicken and eggs, according to India's Agricultural and Processed Food Products Export Development Authority (Apeda). The Hong Kong market for poultry products is worth USD 2 billion and the decision by the Directorate of Food of Hong Kong presents a big opportunity for Indian exporters. “Hong Kong has allowed imports from India with strict quality conditions and all consignments must also be accompanied by health certificates,” UK Vats, an official with Apeda said.
Highlights in Asian Poultry Magazine, January 2016
[30 December 2015]
Sound financials gives Bangkok Ranch confidence to expand
The success of Bangkok Ranch’s initial public offering (IPO) in 2015, endorsed the company’s financial strength. Now, Thailand’s leading integrated duck meat producer says it is ready to take off on all round expansion and growth, NITSARA THONGRUNG reports.
Meng Kee invests in branding
Meng Kee Poultry (Malaysia) Sdn Bhd’s antibiotic-free Keesong chicken is growing in popularity on both sides of the Causeway as consumers look for safer chicken meat, writes RACHAEL PHILIP.
Promising expansion plans for QL Indonesia
Animal protein consumption in Indonesia that continues to increase has given QL Group Indonesia the confidence to double production of all its business lines by 2020. To reach this target it will implement a fully integrated business model to increase efficiency and quality, writes ARIEF FACHRUDIN.
Harmonising management and housing with poultry behaviour
Despite intensive genetic selection the natural behaviours of poultry are retained from their wild ancestors. Conventional broiler housing often provides little opportunity for a good range of natural behaviours, while conventional layer cages severely restrict normal movement and behaviour. Damaging behaviours have been shown to increase in chickens when they are deprived of natural behaviours or sufficient amounts of stimulation. KATE BLASZAK reviews key behaviours of poultry and associated production, economic and welfare implications, as well as the benefits of enrichment, particularly for broilers, and of cage free housing for layers.
Improving the titre of live infectious bronchitis vaccine for poultry hatcheries
Infectious bronchitis (IB) vaccines have not been recommended in combination with other sprayed additives that may inactivate the vaccine. RYAN IZARD describes how a new generation vaccine stabiliser can not only avoid soaking the chicks with aerosol spray, but also prolongs the viability and improves the effectiveness of a live IB vaccine.
Understanding poultry lighting
Supplementary artificial light is critical for maximising pullet growth and egg production. Understanding poultry light biology, the environment and terminology are essential to achieve the best results writes IAN RUBINOFF.
Fowl typhoid in laying hens
Fowl typhoid a severe septicemic bacterial disease generates important economic losses for the global poultry industry. Caused by Salmonella Gallinarum, the disease has been eradicated from commercial poultry in many developed countries, but still endemically subsists in commercial laying hen farms of some countries, including in Asia. The disease can be horizontally or vertically transmitted, and in poultry, the eggs and meat of infected animals can become a reservoir for infection of human consumers. In the first of this two-part article HORACIO RAÚL TERZOLO gives an overview of fowl typhoid in laying hens.
|Genus develops PRRS-resistant pigs |
[29 December 2015] Global genetics company Genus plc has announced the development, through its long-standing collaboration with the University of Missouri, of the first pigs resistant to PRRSv. Using precise gene editing, researchers at the University of Missouri were able to breed pigs that do not produce a specific protein necessary for the virus to spread. Early studies by the university showed that the PRRSv resistant pigs, when exposed to the virus, do not get sick and continue to gain weight normally. Genus said it will continue to develop the technology, and that it would take at least five years before the PRRSv resistant pigs are available to farmers.
|Indonesia to import 600kt of corn in Q1 2016|
[29 December 2015] Indonesia will import 600,000 tonnes of corn in the first quarter of 2016, according to Indonesia’s procurement agency Bulog. Djarot Kusumayakti, Bulog Chief Executive, said this is for corn imports up to March 2016. Earlier, an official of the Industry Ministry said Indonesia will import 2.4 million tonnes of corn for animal feed in 2016.
|Consumer spending on food in Singapore to grow 5% yearly until 2018|
[29 December 2015] A USDA Gain Report on Singapore’s food retail sector said consumer spending on food and beverages in the country is expected to grow 5% annually from 2016 through 2018. This is expected to drive continued growth in the retail food sector. Last year Singapore’s food retail sector saw total sales of USD 5.5 billion. Internet retailing is a growing trend in Singapore. Although still in its infancy the category is forecast to bring in sales of USD 1.3 billion this year to USD 1.8 billion in 2020. An estimated 9% of internet retail sales are expected to come from online grocers in 2015, said the report.
|Indonesia’s fishery industry to enjoy easier capital access|
[29 December 2015] Businesses operating in the fishery industry in Indonesia are expected to enjoy easier access to capital next year as authorities predict a near-doubling of bank loans in the sector, thanks to robust growth and a crackdown on illegal fishing. Indonesia’s Financial Services Authority (OJK) targets to increase 2016 committed loans to USD 713.5 billion, nearly twice that of 2015. Slamet Edy Purnomo, OJK Head of Permit and Banking Information, said fish production in Indonesia continues to increase and “the government is also developing infrastructure to support distribution.”
|4Fingers eyes global growth after opening in Malaysia|
[29 December 2015] Singapore brand 4Fingers Crispy Chicken hopes to see 15 4Fingers stores in Singapore by 2017, and 20 in Malaysia by 2018. CEO Steen Puggaard told a local daily the brand — often mistaken for Korean, given its Korean-style fried chicken — also has its eye on other mature markets, such as Australia, the US and Europe. Mr Puggaard said he hoped the brand would achieve the attention to quality such as that in higher-end restaurants, while at the same time possessing the mass-market reach of traditional quick-service outlets.
|Indonesia’s corn, sbm demand to grow in 2016 |
[28 December 2015] Corn and soybean meal demand (sbm) in Indonesia will increase in line with the increasing consumption of animal feed. For corn, Sudirman FX, Chairman of the Indonesian Feed Millers Association, predicted demand in 2016 will be around 8.9 million tonnes over 8 million tonnes in 2015. In 2015, 5 million tonnes was from local supply. “Corn imports in 2016 may be higher as local supply is not enough, but we will limit it to 3 million tonnes,” he told Asian Agribiz. Sbm demand, meanwhile, is projected to increase by 8% in 2016. “In 2015, from January to August, we imported around 2.57 million tonnes,” he informed.
|Philippine-EU FTA a concern for US meat exporters|
[28 December 2015] US meat exporters have expressed concern over recent announcements by the Philippines to pursue a free trade agreement (FTA) with the EU, saying this could be a threat for US pork and beef exports to its biggest market in Southeast Asia. Joel Haggard, US Meat Export Federation Senior Vice President for Asia Pacific, said more so that almost all other Asian markets, the Philippines is extremely competitive and price-sensitive. Already pork exports are slapped 30% tariff in-quota and 40% out-quota. He noted that “small duty differentials could radically alter supplier market shares.” He added that an FTA between the Philippines and the EU could lower duties for the larger EU suppliers who have been very aggressive in other Asian destinations and could threaten US sales to the Philippines.
|Decline in corn prices in India |
[28 December 2015] The price of corn in India has begun to decline offering some respite to end users like the poultry sector, according to the US Grains Council. “Prices have declined by between 1.5% and 2.07% in different parts of India,” Amit Sachdev, USGC Representative for India, Bangladesh and Sri Lanka said, adding that the futures price for corn has also declined. According to him, even though the poultry prices are on an uptrend as demand is rising, overall cost of poultry production still remains high.
|Aqua feed millers in Indonesia expand capacity|
[28 December 2015] Increasing fish and shrimp consumption locally in Indonesia has triggered aquaculture farmers to increase their production capacities. “Especially in shrimp production, there are many new investors since Indonesia is still free from EMS (early mortality syndrome),” Denny Indradjaja, Chairman of the Indonesian Feed Millers Association for Aqua Feed Division, told Asian Agribiz. Due to the positive trend, in 2015 many aqua feed millers have raised their production capacity and set up new feedmills and increased capacity at existing feedmills. They are CP Prima, CJ, Matahari Sakti and Gold Coin, to name a few. “Most of them increased their shrimp feed production capacity,” Mr Denny said.
|Vietnam's Spotlight awaits approval for new feedmill |
[28 December 2015] Vietnam’s Spotlight Animal Feed Corporation’s new feed processing plant in Vung Tau, which can run at 150,000 tonnes per year at full capacity, is awaiting final government authorisation. “In order to reduce production cost and improve product consistency, Spotlight has invested in the construction of our own feed production facilities,” said the company. “Spotlight’s plant in Sa Dec is running at full capacity, our Vung Tau location is awaiting final government authorisation, and we’ll be breaking ground on our Hai Duong plant early next year.”
|Nippon Ham to invest USD250m overseas|
[23 December 2015] Japan’s Nippon Ham (NH) Foods is looking to quintuple its investment overseas through March 2018, enhancing operations in Turkey, Australia and elsewhere to feed growing meat demand in emerging nations. The company plans to invest USD 250 million in facilities abroad from fiscal 2015 to 2017. The overseas expansion will target upstream operations, including the raising of livestock and meat processing, to beef up NH’s supply base. The company is looking to stake out a share of rising meat demand in China, Russia, Southeast Asia and elsewhere. “We hope to grow our own presence while teaming with industry leaders on product development, sales and other tasks,” Juichi Suezawa, NH President, said.
|EU cautions Thailand on slavery in seafood industry|
[23 December 2015] The European Union warned Thailand last week that it should promptly address the human rights and slavery issues in its seafood industry, the Associated Press reported. The EU issued Thailand a warning in April but a recent AP report revealed the enslavement of Myanmar workers at a shrimp–peeling mill in Samut Sakhon. Thailand said that it has worked closely with the EU to address the problem, adding that an EU delegation is due to visit Thailand in January 2016, Reuters reported.
|CJ Indonesia to help absorb live birds|
[23 December 2015] Market reach is the classic problem of broiler farmers in Indonesia, according to Tevi Melviana, General Manager of CJ Superfeed. “The competition in the live bird market is fierce as farmers have to compete with big companies. Brokers use this situation to manipulate prices, compromising the earnings of farmers,” he told Asian Agribiz. “Some years ago we expanded our business into the downstream sector. We want to help farmers by buying their broilers for our slaughterhouses,” Mr Tevi said. “If the farmers prosper, they will be able to buy our feed and DOC,” he added.
|Thai Union to acquire Germany’s Rügen Fisch |
[23 December 2015] Thailand’s Thai Union Group (TU) announced that it has entered into an agreement to acquire a majority stake in Rügen Fisch AG, a leading canned seafood company in Germany. Rügen Fisch currently generates revenue in excess of USD 151.96 million. It supplies ambient and chilled fish including herring, mackerel and salmon across Germany to leading retailers under the Rügen Fisch and Hawesta brands. “Germany is one of the largest seafood markets and part of our strategic pillars for growth in Europe,” said Thiraphong Chansiri, President and CEO of TU. The deal is expected to be completed by the end of January 2016, subject to merger clearance in Germany.
|Cambodia’s first animal health, production law passed|
[23 December 2015] Cambodia’s National Assembly recently passed the country’s first animal health and production law which sets rules for the humane treatment of livestock and the safe processing of animal meat. Lawmaker Yem Ponhearith said it was created to prevent the outbreak of animal diseases and to stop tainted meat from reaching consumers. “The law will require production to follow some standards, like proper hygiene,” he said. Until now, he added, the country also lacked specific penalties for farmers and abattoirs employing dangerous practices. “Now, the law includes penalties for farms that do not follow the standards. Veterinarians are also required to check for and track animal diseases.”
|Indonesia’s aqua feed consumption to grow double digit|
[23 December 2015] Indonesia expected double digit growth in aqua feed consumption in 2015. Denny Indradjaja, Chairman of the Indonesian Feed Millers Association for Aqua Feed Division, told Asian Agribiz that in 2015 fish feed consumption was estimated to grow at 10-15%, while shrimp feed consumption at 20% from the previous year. He said in 2014 fish feed consumption reached 1.1 million tonnes, while shrimp feed consumption was recorded at 350,000 tonnes. The major freshwater fish raised in Indonesia are carp, tilapia, catfish and pangasius, while for mariculture are snapper and grouper. For shrimp, vannamei is the major species.
|Positive outlook for Malindo in 2016|
[22 December 2015] Analysts predict a promising 2016 for Indonesian poultry integrator Malindo Feedmill after the company gained around USD 39 million from its right issue. This will be used to repay its USD-denominated debt. “This will have a positive effect on the valuation of the company,” said an analyst. The positive outlook is also backed by expectation of improving conditions in the country’s poultry breeding industry. The industry has started to recover, evidenced by the higher price of broiler DOC in early December.
|Thailand’s shrimp export to reach USD 1.66 billion in 2016|
[22 December 2015] Export of Thai shrimp in 2016 is estimated at USD 1.66 billion in value terms, up from USD 1.39 billion this year, Somsak Paneetatyasai, President of Thai Shrimp Association told Asian Agribiz. Thailand’s shrimp export is forecasted to hit 160,000-180,000 tonnes next year, he said. Meanwhile, Thai shrimp output is projected to reach 290,000 tonnes in 2016, up from an estimated 260,000 tonnes this year as farmers have adopted better strategies to cope with the early mortality syndrome. “We expect to see stable global demand for shrimp in 2016, compared to this year,” Mr Somsak said, adding that shrimp exporting countries, such as India and Vietnam, are battling shrimp diseases, resulting in lower output.
|Ecuadorian shrimp sales to Asia up sharply on China demand|
[22 December 2015] Ecuador’s shrimp exports to Asia recorded a sharp rise in 2015. Up to November, exports to all Asian markets was 126,099 tonnes, up 65% over last year according to Seafood News. Most of the shipments were bound for China. The country’s sales to Asia now represent 42.5% of its overall exports. According to the portal, China orders get filled first, and the US gets what is left over. China reprocesses some of its Ecuadorian imports.
|CJ Indonesia to build new feedmill in South Kalimantan|
[22 December 2015] CJ Indonesia plans to build a new feedmill in Banjarmasin, South Kalimantan. “Construction for a 20,000 tonnes/month feed plant is ready to start in the near future,” Tevi Melviana, General Manager of CJ Superfeed, told Asian Agribiz. “We see good potential in South Kalimantan since there is only one feedmill and most of the feed demand is met by imports from Java. We can then provide fresher feed, plus we already have a broiler breeding farm there,” Mr Tevi said. The Banjarmasin plant will target the broiler and layer feed market in South Kalimantan and also the broiler feed market in East Kalimantan and Central Kalimantan.
Asian Agribiz regional dairy update
[22 December 2015]
Japfa cuts investment for its China dairy business
Japfa is cutting its planned USD 90 million investment in its China dairy business and reallocating the unutilised money for general purposes. Japfa said it has used only USD 46.57 million of proceeds from its 2014 IPO on its China dairy business, with another USD 6.45 million expected to be spent this month. In response to changes in the business environment, Japfa will now use the remaining proceeds for investment, debt reduction, working capital and general corporate purposes. It has already decided to use USD 10 million of the proceeds as working capital for Annona, a procurement business for the company’s feedmills.
Malaysia’s Sabah state expects to produce 10m litres of milk in 5 years
Malaysia’s Sabah state spent close to USD 236 million from 2011 to 2015 to fund agriculture projects, said the Agriculture and Food Industry Ministry. “Milk, chicks and eggs have penetrated international market such as Vietnam, Brunei, Timor Leste and Sierra Leone,” said Minister Datuk Seri Yahya Hussin. The dairy industry is seen as the most exciting prospect for Sabah with production projected to reach more than 10 million litres per year in the next five years. “New players such as Keningau Integrated Livestock Centre and Sabah Livestock, Dairy and Breeders Sdn Bhd have started commercial-scaled operations. Sabah will soon become producers for downstream dairy products such as yoghurt, ice cream, cheese, margarine and others,” he said.
Australian judge clears the way for Chinese dairy bid
A judge has cleared the way for a Chinese-owned company to proceed with its attempt to purchase Australia’s largest milk supplier, according to media reports in Australia and China. The owners of Van Diemen’s Land (VDL) agreed to sell the Tasmanian property to Moon Lake Investments for USD 200 million, but TasFoods Ltd said it had already reached an agreement in principle to take over VDL for USD 180 million. Victoria Supreme Court Justice James Judd said TasFoods does not have a strong case and refused to block the sale. VDL is Australia’s oldest dairy company, operating 25 Tasmanian dairy farms. The deal still needs approval by Australia's Foreign Investment Review Board.
Investor to build dairy farm & milk processing plant in East Java
Indonesia’s Investment Coordinating Agency (BKPM) has received a USD 340 million proposal for a dairy farm and milk processing plant in Malang, East Java. The unnamed investor plans to first build a USD 15 million milk processing plant next year, sourcing milk from local farmers, before expanding operations over the next decade, BKPM said. “In terms of food security, the investment could boost our domestic milk supply to 40% of total demand from 19.5% previously,” said Franky Sibarani, BKPM Chairman. Last year Indonesia consumed 12.5 litres of milk per capita.
|Slavery in Thai shrimp industry spurs calls for boycott|
[21 December 2015] US officials and human right activists have called for a boycott of shrimp and fish from Thailand after the Associated Press revealed the slave-like working conditions of Myanmar workers at shrimp–peeling mill in Samut Sakhon. "The Thai government and Thai companies are trying to solve these problems. We understand the problem will not ignore it. Moreover, shrimp farmers are now working on good labour practices,” Somsak Paneetatyasai, President of Thai Shrimp Association told Asian Agribiz. According to Thai Shrimp Association, Thailand exported 57,543 tonnes to the US in the first ten months of this year, worth USD 556.29 million.
|CJ Indonesia ready to consolidate its business|
[21 December 2015] Although the feed business in Indonesia in 2015 is hard, Tevi Melviana, General Manager of CJ Superfeed, told Asian Agribiz that he believes CJ will close 2015 with good results. “Next year may be more challenging. Free market of poultry feed will continue to decrease as well as the profit margin, pushing players to embrace integration.” Feed millers who cannot adapt to the situation will exit, according to him. However, for CJ, feedmills that cannot survive and are available for sale are an opportunity to consolidate its business through acquisition.
|Wholesale price of eggs in Namakkal appreciates|
[21 December 2015] Due to the prevalence of a cold wave in North India and the resultant significant drop in egg production, the wholesale price of egg in Namakkal in South India is on the rise. National Egg Coordination Committee (NECC), Namakkal Zone has fixed USD 0.05 (INR 3.70) as the wholesale price of an egg. “The upward trend is expected to continue for another month as eggs will be in high demand during Christmas and New Year,” S Selvam, a poultry farmer in Namakkal told Asian Agribiz. According to him, even though the wholesale price has increased, farmers are still affected by high feed costs.
|Full range of US beef now available in Macau|
[21 December 2015] Macau has opened its market to the full range of US beef products effective November 7. A US Gain report said US beef shipments may be shipped to Macau via Hong Kong with a Hong Kong designated FSIS health certificate or directly to Macau with a Macau designated FSIS health certificate. Last year Macau imported USD 8.7 million worth of US beef products, some 28% of the country’s market share. Prior to November 7, 2015, Macau only allowed market access for bone-in US beef products originating from animals under 30 months of age and boneless beef from animals regardless of age.
|Poultry federation appeals for moratorium on loans|
[21 December 2015] The Telangana Poultry Federation in India has sought a moratorium on poultry loans for two years as poultry farmers are affected due to rising feed prices. President of the federation Errabelli Pradeep Kumar Rao said that while feed price has been increasing by about 20% per annum over the last three years, egg prices have gone up only 5-7% causing severe distress to poultry farmers. “Poultry farmers in Telangana state have taken USD 2.2 billion as loan from various banks, which they are struggling to pay in time due to unfavourable market conditions,” he said.
|CJ Indonesia setting up new feedmill in Central Java|
[18 December 2015] CJ Indonesia is currently constructing a feedmill in Batang, Central Java. Tevi Melviana, General Manager of CJ Superfeed, told Asian Agribiz that the new plant, which will have an installed capacity of 20,000 tonnes/month, is targeted for operation in May/June 2016. The new plant will produce poultry and fish feed. “Technology at the Batang plant will be more modern than other existing plants. For instance, the plant will employ robotic systems to ensure the accuracy of feed weight per bag,” Mr Tevi said.
|Thai PM pledges action against shrimp slave trade|
[18 December 2015] Thailand’s Prime Minister Prayut Chan-o-cha has vowed to punish officers who fail to tackle forced-labour at seafood processing facilities, the Bangkok Post reported. The Prime Minister’s comments came after Associated Press investigation found that enslaved Myanmar workers were forced to work for up to 16 hours a day for little or no pay, and shrimp from an abusive factory made its way into the global supply chain. Prayut said that all offenders will be arrested and officers who failed to do their jobs will be dealt with accordingly.
|India's Dan Turk to enter export market|
[18 December 2015] India’s Dan Turk Farms & Services Pvt Ltd which supplies turkey meat products to hotels in India has decided to focus on the export market. Sameer Mathur, Managing Director and CEO of the company said that they have tied up with 45 supermarkets in the US owned by the Indian diaspora. Dan Turk has also tied up with two mid-sized distributors in Taiwan and South Korea to distribute its products and is trying to get a foothold in the Middle Eastern countries like UAE, Oman and Kuwait.
|Indonesia may import 3mt of corn in 2016|
[18 December 2015] Indonesia may import 3 million tonnes of corn in 2016, an industry ministry official said, amid growing demand from feed millers, and following a disruption to the country’s corn imports. Indonesia’s demand for corn has grown in recent years due to higher demand for poultry, and the tightening of corn imports was expected to lead to increases in poultry and egg prices as farmers paid more for their feed. Demand for corn from Indonesian feed and food industries is expected to grow 4% to 13.8 million tonnes in 2016 from 13.26 million tonnes this year, Panggah Susanto, Director General of Agricultural Industries, said.
|Yum to complete China spinoff by end 2016|
[18 December 2015] Yum Brands will complete the spinoff of its China Division into a separate company called Yum China by the end of 2016, the company said at its annual investors’ conference in Dallas. The company, which owns the KFC, Pizza Hut and Taco Bell restaurant chains, will also return more than USD6 billion to stockholders via share repurchase, tender offer or special dividend before the spinoff. Yum China will pay licensing fees to Yum Brands once the spinoff is compete, and the current head of Yum’s China Division, Micky Pant, will become leader of the new company. At the same time, the company announced that November same-store sales in China were down 3% year-on-year.
|Consumer group urges HK QSRs to phase out antibiotics |
[18 December 2015] Hong Kong’s Consumer Council has called on fast-food franchisees to ban antibiotics in their meats, echoing plans of some chains in North America. The watchdog group has urged QSRs including McDonald’s, Subway and KFC to start the process to stop the sourcing of meat and poultry from farms that use these supplements. Amanda Long, Director General of Consumer International said: “Global restaurant chains are in a position to use their huge buying power to have real impact on the use of antibiotics in food production, to set the agenda for other businesses and to promote public awareness of this looming crisis.”
|US soybean transportation costs up|
[18 December 2015] Although lower than last year, the transportation cost of shipping soybeans from the US to China increased in the third quarter, compared to the previous quarter. The transportation costs of shipping soybeans from Minneapolis and Davenport through the US Gulf to Shanghai increased by 5%. It cost 2% more to transport soybeans from Fargo and Sioux Falls through the Pacific Northwest to Shanghai during the quarter. Transportation costs, meanwhile, declined in Brazil. The cost of shipping soybeans from North Mato Grosso and South Goiás to Shanghai during the quarter was 12-10% less, respectively.
|Industry association will develop China’s white chicken market|
[17 December 2015] Recipe development, chef endorsement and cooking contests will help develop a consumer market for white broiler chicken in China, Chris Langholz, Cargill’s incoming head of Global Protein, told Asian Agribiz in an exclusive interview. Most white broiler chicken in China is currently consumed at QSR outlets or in food service facilities like factory canteens. “One of the challenges for white feather chicken with consumers is that there is no culinary history to draw on, whereas with the traditional yellow feather chicken there is a history of recipes and consumption,” said Mr Langholz, who serves on the board of China’s White Feather Broiler Alliance.
|Cibadak increases broiler farm capacity|
[17 December 2015] Indonesia’s Cibadak Indah Sari Farm, a breeding and broiler production company based in Jakarta, plans to increase the capacity of its commercial broiler farms, an executive of the company told Asian Agribiz. However he refused to disclose figures related to capacity and investment. He said the plan is also to increase the capacity utilization of its 10,000 tonnes/month feedmill.
|Philippine corn farmers hit ruling against GM crop testing|
[17 December 2015] Philippine corn farmers have hit the Philippine Supreme Court's decision to ban field testing, commercialisation and importation of genetically modified (GM) crops, saying this would have repercussions not only on the country’s crops subsector, but also the feed, poultry and livestock industries. A report by BusinessWorld quoted Philippine Maize Federation Inc President Roger Navarro as saying the decision could also hurt the country’s food security program. Meanwhile, an industry official who did not want to be identified told Asian Agribiz that the decision seems odd considering that the cultivation of GM crops like BT corn is already widespread in the country. In fact, she said, the majority of yellow corn in the country is GM corn.
|Thai Union to take all shrimp processing in-house next year|
[17 December 2015] Thailand’s Thai Union Group (TU) announced last week that it will cease working with all external pre-processors by the end of this year and will bring all shrimp processing operations in-house. From January 1, 2016 onwards, TU will directly control all of its processing work, ensuring that all workers are in safe, legal employment and are treated fairly. “This is to rid the Thai seafood sector of illegal labour practices,” Thiraphong Chansiri, President and CEO of TU said, adding that the firm is committed to leading improvements in the seafood industry.
|Jakson postpones its new feedmill operational|
[17 December 2015] In early 2014 Indonesia’s Jakson Niagatama, a main trading company of feed raw materials, announced its venture into feed production with a new feedmill in Serang, Banten. Ari Nugroho S, Senior Trader, told Asian Agribiz that the feed plant was previously targeted for operations in 2015. “However, due to the slowing economy, low live bird prices and broiler DOC oversupply this year our management decided to postpone the project,” he said. "Construction has been completed. We expect business to be better next year.”
|Malaysia's Lay Hong revives private placement plan|
[17 December 2015] Poultry player Lay Hong Bhd, which scrapped its initial private placement plan two months ago, has revived it but with a lower ceiling limit of 10% compared with 15% previously. It wants to raise roughly USD 7.91 million, most of which would be used for buying raw materials, such as corn and soybean meal. In the recent announcement, Lay Hong said its directors felt a private placement would help the group raise funds without incurring interest costs from bank borrowings. It said that if the plan was not carried out, the cost to purchase raw materials would be funded by internally generated funds or via bank borrowings, as was usually the case. It expects to conclude the private placement exercise in the first quarter of 2016.
|MPEDA abandons international seafood show in Chennai|
[17 December 2015] The Marine Products Export Development Authority (MPEDA) has abandoned the 20th India International Seafood Show scheduled to be held in Chennai between January 22 and 24, 2016. Organisers said that the recent floods has forced them to cancel the show in Chennai. Plans are afoot to stage it in Visakhapatnam in the middle of 2016. The biennial seafood show, organised by MPEDA with the Seafood Exporters’ Association of India has emerged as an important platform for stakeholders in the seafood export sector.
|Thailand's Zone 2 aims to be FMD free|
[16 December 2015] The World Organization for Animal Health (OIE) will send its team to inspect Thailand’s livestock Zone 2 around September next year and it will then decide whether to declare this a foot-and-mouth disease (FMD) free zone. Zone 2 covers seven provinces in the eastern region of Thailand. The OIE team previously inspected the region two times and made some recommendations. Dr Sorravis Thaneto, Deputy Director General of Department of Livestock Development (DLD) told Asian Agribiz that “the department is doing all it can to ensure that Zone 2 will be FMD-free. The movement of animals within the zone has been strictly checked and verified.” If Thailand receives FMD-free status, it can export fresh pork to more countries. Separately, DLD also aims to improve slaughterhouse standards across the country, especially pig slaughterhouse, he said.
|Grey channel imports distort Chinese market|
[16 December 2015] Grey channel chicken imports are distorting the Chinese market and creating safety issues for the poultry industry, Chris Langholz, the incoming leader of Cargill’s Global Poultry unit, told Asian Agribiz in an exclusive interview. Over 750,000 tonnes of poultry entered China via the grey channel in 2014, according to an analysis by the Gira Asia Meat Club, almost 60% of China’s total imports. The erratic grey channel flows cut margins for companies that have legitimately invested billions of dollars in domestic Chinese production, said Mr Langholz, current head of Cargill’s China Animal Protein unit. “It’s illegal, it distorts the market, and the biggest problem is, there are safety issues,” he said.
|Sri Lanka introduces MRP for chicken meat|
[16 December 2015] Sri Lanka's Consumer Affairs Authority has introduced a Maximum Retail Price (MRP) for chicken meat and other essential consumer items. “The new maximum prices were introduced to safeguard consumers from sudden market price hikes, especially during the festival season,” Industry and Commerce Minister Rishad Bathiudeen said. Accordingly, the MRP for chicken (whole chicken without skin) will be USD 3.34/kg. MDM Kaleel, Proprietor of Ketawala Farm House in Sri Lanka told Asian Agribiz that the move would also prevent poultry firms from fixing the price of value added chicken based on market demand.
|Indonesia to set live cattle imports at 600k-700k heads|
[16 December 2015] Indonesia has reportedly announced an annual quota for live cattle imports in 2016. For next year, Indonesia will set the quota at around 600,000-700,000 heads. An announcement will be made early next year on how many animals will come from Australia. Indonesia’s Agricultural Minister Andi Amran Sulaiman said the government will also speed up the development of a quarantine island to allow Indonesia to import cattle from countries that are not completely free of foot and mouth disease, including India, Argentina and Brazil.
|Vietnam opens market to French beef|
[16 December 2015] French beef will be officially imported into and sold in Vietnam after many years of absence, an outcome of the EU-Vietnam trade deal clinched early December that will remove nearly all tariffs on goods traded between the two countries. Vietnam suspended beef imports from France 15 years ago after the mad cow crisis erupted in Britain, and then spread to other European countries, said Emmanuel Bernard from the French Meat and Livestock Association. Vietnam has licensed 23 French companies wishing to export beef to Vietnam. France can export fresh and frozen beef, but it will ship frozen beef to Vietnam first for market study.
|Tibet to get first KFC next year|
[16 December 2015] KFC is expected to open its first restaurant in Tibet next year, as parent Yum Brands Inc looks to expand in the Chinese market and shake off a series of food scares and marketing blunders that have severely dented its sales in the country. A franchisee will open the KFC restaurant in the Tibetan capital, Lhasa, in the first half of 2016, Yum said in a statement. The move comes as the owner of the KFC, Pizza Hut and Taco Bell brands prepares to spin off its business in China. The China unit aims to roughly triple its restaurant count to 20,000 and bring in more franchise partners.
|Dua Putra listed on Indonesia Stock Exchange|
[16 December 2015] Indonesia’s fish processing company Dua Putra Utama Makmur’s shares surged 20% on its trading debut recently, indicating a healthy appetite for businesses in the fisheries sector, which the government has prioritised in its development push. The company offered 1.67 billion new shares at a price of USD 0.04 each, raising up to USD 66.6 million. “We are proud to be the first integrated fishery company to be listed on the Indonesia Stock Exchange,” Witiarso Utomo, President Director, said recently. Dua Putra plans to spend about USD 14.4 million to build a new cold storage facility and invest in equipment, as well as USD 9.3 million to buy a purse seine fishing boat.
|Teo Seng to increase egg production capacity by 2019|
[15 December 2015] Malaysia based Teo Seng Capital Bhd plans to increase its egg production capacity to 5 million per day by 2019 from 3.3 million currently, said a report from The Edge Malaysia Weekly. The company will spend about USD 42 million on the expansion program, said Managing Director Nam Yok San. Teo Seng has a 7% share of the domestic market. It is among the few Malaysian layers that have been approved by Singapore’s Agri Food & Veterinary Authority to export eggs to the city state. It sells about 30% of its production to Singapore, enjoying a 16% market share there. The company said it plans to use USD 12 million of its USD 42 million capital expenditure towards building five biogas plants to help reduce operating costs. The biogas plants, which use about 80,000 tonnes of chicken manure each, are expected to bring cost savings of USD 0.3 million a year. Each plant will supply electricity to three farms.
|Indonesia delays WTO hearing on Brazilian chicken|
[15 December 2015] Indonesia has used procedural tactics to delay the establishment of a WTO disputes settlement panel hearing on Brazilian claims that Indonesia has illegally blocked its chicken exports. In a statement, Brazilian diplomats said exporters had been trying – and failing – to sell chicken meat and chicken products to Indonesia since 2009. Brazil saw no justification for the import ban and other restrictive measures imposed by Indonesia on Brazilian exports. However, rejecting Brazilian claims that its import controls are breaking WTO rules, Indonesian diplomats argued that Brazil had misidentified the regulation in this dispute and by correcting an earlier statement in a subsequent filing, could not demand that the meeting establish a panel.
|Wellhope opens subsidiary in SW China|
[15 December 2015] Wellhope’s new subsidiary in Yunnan Province will allow the company to explore the feed and animal husbandry markets in southwestern China, said Wellhope Chairman Jin Weidong in a speech at the opening ceremony in Kunming. Wellhope is based in northeast China, and the new subsidiary helps extend the company’s reach across the country. Co de Heus, CEO of Royal De Heus, also spoke, saying De Heus will provide support and knowhow on animal nutrition, technology and farm management. De Heus, based in the Netherlands, is the second-largest shareholder in Wellhope.
|Australian sheepmeat exports to Indonesia increase dramatically|
[15 December 2015] Australian sheepmeat shipments to Indonesia has increased from 1338 tonnes in 2014 to 2364 tonnes in the first 10 months in 2015 after the country imposed restrictions on beef imports earlier this year. According to MLA, by October 31 this year, Australia had shipped 1037 tonnes of frozen lamb, 28 tonnes of chilled product and 1299 tonnes of frozen mutton. Ben Thomas, MLA Manager of Market Information, said Indonesia’s increased sheepmeat intake could be partly attributed to Indonesian importers searching for an alternative protein source.
|India and Vietnam to cooperate in animal health sector|
[15 December 2015] Indian and Vietnam have signed an MoU to cooperate in the animal health sector through joint activities. “The MoU will facilitate in protecting each other’s territory from introduction of animal diseases through exchange of information on status of animal diseases,” a spokesperson of Union Ministry of Agriculture told Asian Agribiz. According to her, the countries will also cooperate in training and upgrading human resources in the field of animal health through exchange of delegations, workshops, expert visits and information on veterinary research.
|Avian flu confirmed in Taiwan |
[15 December 2015] Officials in Taiwan have reported four new outbreaks of highly pathogenic H5N2 avian flu and two of H5N8, according to separate reports filed with the World Organization of Animal Health (OIE). Taiwan's H5N2 outbreaks affected a chicken farm, chickens at an abattoir, and a duck farm in Pingtung County in the south, as well as a chicken abattoir in Hualien County in the east-central part of the country. Almost 27000 birds were culled to prevent disease spread.
|Thai swine group aims to venture into southern China market|
[14 December 2015] The Thai swine group plans to visit Yunnan province in China in the middle of December and aims to strike a deal to export live pigs to southern China. Nipat Nuanim, President of the Swine Raisers Association of Ratchaburi province told Asian Agribiz that his group, including representatives of pig farmers and merchants, will go to Yunnan province to meet with local government officials and Chinese business people this month. “We hope to negotiate with the Chinese side and if a deal can be reached, we can raise pig production capacity to export to China,” Mr Nipat said. At present, Thailand exports just 5% of its total pork production to foreign markets each year.
|Cargill is bullish on Chinese chicken despite slump|
[14 December 2015] Cargill is bullish on the Chinese poultry market long-term, despite the current doldrums, according to Chris Langholz, the incoming leader of Cargill’s Global Poultry Division. In an exclusive interview with Asian Agribiz, Mr Langholz said the near-term outlook remains challenging due to a slowdown in economic growth. “We don’t see any relief for the next six-to-nine months,” he said. “However, the things that make poultry good for the rest of the world apply to China – it’s economical, sustainable, creates less waste than other animal protein.” He added that poultry “works well for China. It uses less resources, and provides protein at a good price.” Mr Langholz, currently leader of Cargill’s China Animal Protein unit, will take over Global Poultry in January.
|Gadre Marine Export to double turnover in India|
[14 December 2015] Maharashtra-based Gadre Marine Export is looking to double its turnover from retail operations in India in 2015-16. “We are aiming at USD 3.7 million from domestic sales in 2015-16, up from USD 1.8 million last year,” Arjun Gadre, Owner of Gadre Marine Export said. The company, which exported processed seafood worth USD 78.5 million in 2014-15 offers Surimi-based (Japanese fish paste) products, marinated ready-to-cook fish and cut & clean raw fish. Gadre Marine Export supplies processed seafood to over 600 retailers across 20 cities in the country and is looking to double its reach.
|Analysts predict CP Indonesia to rebound in mid-2016|
[14 December 2015] In the midst of Indonesia’s efforts to balance supply and demand of chicken in the country, analysts have predicted Charoen Pokphand (CP) Indonesia would be the fastest company in the sector to come out of this challenging situation. Maureen Natasha, CIMB Securities Analyst, said until January 2016 the government and 13 breeding companies have agreed to cut broiler DOC production by culling 6 million PS. In addition, the government also reduced the import of GPS to only 665,000 birds this year from 720,000 birds previously. “We believe CP Indonesia will start to rebound in mid-2016,” said Ms Maureen.
USGC Jakarta seminar builds value of corn and DDGS
Onsite report by ARIEF FACHRUDIN
[14 December 2015]
The US Grains Council (USGC) continued its commitment to providing first-hand and comprehensive information to buyers and potential buyers with a seminar in Jakarta, Indonesia on US corn harvest quality and corn co-products in poultry and aqua nutrition. Around 50 delegates from trading and feed milling companies in the country attended the seminar.
Better quality than previous years
The US corn harvest quality for 2015 is good according to Kevin Roepke, USGC Regional Director for South and Southeast Asia. More than 600 samples from 12 states that account for 98% of US corn exports were tested by evaluating grading & physical factors, moisture, chemical composition and mycotoxins. Mr Roepke said 94% graded number 2 or better. The yields were high, accompanied by lower protein (8.2%, dry basis) and complemented by high starch (73.6%, dry basis) and similar oil concentration (3.8%, dry basis) compared to 2014 levels. “In addition, early and dry harvest conditions contributed to lower average moisture contents (15.7%) and lower total damage (1.4%) than in 2014, and much lower stress cracks (3%) than in previous years,” he explained.
Mycotoxins testing results
Aflatoxins and DON were two mycotoxins tested in the harvest samples. The results of aflatoxins testing showed that a slightly higher percentage of samples had no detectable levels of aflatoxins in 2015 compared to 2014 and 2013, and zero incidences of aflatoxins above the FDA Action Level. “Growing season conditions were not conducive to aflatoxin development,” said Mr Roepke. Meanwhile for DON, the percentage below 0.5 ppm in 2015 was larger than in 2014, and zero incidences of DON exceeding the FDA Advisory Level.
US corn production reaches 344.3mt
According to Prof Budi Tangendjaja, USGC Regional Technical Consultant, US corn production for 2015/16 (Oct) was 344.3 million tonnes. Of the figure, 38% was used for local feed consumption, 38% for ethanol production, 14% for export and 10% for food & seed. Prof Budi revealed that most of US corn was exported to Japan, Taiwan, South Korea and Mexico where the buyers are keen on quality consistency. “Meanwhile, Indonesia is still price sensitive,” he said. Mr Roepke added that’s why the seminar was important since he believes well-informed buyers will choose quality US corn and corn co-products.
DDGS benefits in layer duck and chicken feeds
Feed formulators may consider using corn co-products such as DDGS, CGM, CGF, hominy and DDGS oil for poultry feed. Prof Budi said DDGS can be a good source for layer duck and chicken feeds. A trial result showed that the use of DDGS up to 18% in layer duck diets did not significantly influence feed intake, feed efficiency and eggshell quality. In addition, the yolk color was better. Another trial, in Japan, found that 40% inclusion of DDGS in layer chicken diets had no significant impact on production performance.
India's feed sector pressured by high prices and lower exports
[11 December 2015]
India's poultry and dairy industries are under tremendous pressure as feed prices have increased by around 30%. Soybean processors and solvent extractors were also affected due to international market situation as exports have reached an all-time low. In this web special, SM ARUN reviews and reports on the latest trend in the feed industry and its implications on these sectors in India.
Indian soymeal exports fall after Japan opts for GM soymeal
Soymeal exports from India that reached a historic low suffered another jolt as Japan has started importing GM soymeal from other countries. “Japan was a big importer of Indian soybean meal as the local produce is non GMO,” a spokesperson of Solvent Extractors’ Association of India told Asian Agribiz. Japan has now shifted to importing GM soymeal from other countries. The main reason for India hitting the bottom in soymeal exports is due to lifting of western sanctions over Iran, which was the top soymeal exporting destination. “Iran now imports from South American countries,” he added.
Soybean processors to fight price speculation
Charging the futures market for price manipulation, the Soybean Processors Association of India (SOPA) has demanded that authorities check market manipulation by speculators. Davish Jain, Chairman of the association said that soybean futures should be suspended during the off-season when speculation is at maximum. “Heavy speculation and manipulation of prices in the futures market have resulted in negative margins in soybean crushing,” he said. The association is also taking efforts to raise the production and productivity of soybean to achieve market stability.
Poultry sector demands a stop to import duty
Due to shortage in poultry feed inputs like soymeal and maize, the poultry industry in India has petitioned the central government to drop import duties on both items. “A shortfall of 4 million tonnes of maize and 2-3 million tonnes of soybean is expected. This translates to an additional expenditure of 20-30%,” GB Sundararajan, Managing Director of Suguna Foods Pvt Ltd said. According to him, while the price of maize is USD 247/tonne against normal price of USD 195, soymeal is selling at USD 600/tonne compared to last year’s USD 450.
Maize prices continue to soar on slow arrivals, says USGC
Maize prices in India continued to increase up to USD 244/tonne as arrivals dried up and deliveries were scarce. Amit Sachdev, South Asia representative for US Grains Council said that at some market yards deliveries stopped while in other yards arrivals to date have been 50% that of last year. “Traders hint at prices going up further but such high prices are not sustainable for any end-user. Demand will drop and this will bring down the prices and arrivals may increase,” he said.
Opting for GM is the way forward, says expert
With poultry consumption growing at more than 12% and agriculture growth rate at 2%, genetically modified crops seems to be the way forward. Atul Chaturvedi, a veteran agribusiness expert said that this is necessary to bridge the widening gap between demand and supply, which is assuming alarming proportions. “We are actually staring at an impending disaster and the time for action is now or else the nation will forfeit its protein security,” he warned. According to him, maize and soy should be brought under GM and the feed industry should be allowed to freely import DDGS for the poultry industry.
Amul inaugurates new cattle feed plant
Dairy giant Amul recently inaugurated its new cattle feed plant in Kapadivav in India’s Gujarat state. The USD 30 million greenfield project comes with a capacity of 1,000 tonnes/day and can be doubled. The fully automated plant is designed and constructed by Andritz Feed & Biofuel and executed by Andritz Technologies, Chennai. “With this, Amul’s total feed capacity is now 8,000 tonnes/day from 15 feedmills spread across different locations,” RS Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF) marketing Amul brand said and added that there will be an addition of another 1,500 tonnes/day in the next two years.
High feed input costs affect dairy farmers
Spiralling price of feed inputs have not just affected the poultry industry but also the dairy farmers as they are paying 20-30% more for the feed. K Kandasamy, a dairy farmer in Tamil Nadu state told Asian Agribiz that farmers are abstaining from fresh investment due to high feed cost which could affect milk supply in the peak demand season beginning March. “Skyrocketing prices of feed is the main reason for the sharp decline,” he said. However, despite the high feed input costs, dairy companies have not raised milk prices.
|Thailand’s live-pig prices to rebound next year|
[10 December 2015] Surachai Sutthitham, President of the Swine Raisers Association of Thailand told Asian Agribiz that he expects domestic live-pig prices to rebound from USD 1.67-1.81/kg recently to around USD 1.95/kg in 2016, led by consumption recovery and higher cost of pig production. Surachai said lower live-pig prices this year and slowing economy was partly caused by a slump in agriculture prices. However, he added that domestic consumption will pick up next year due to increased government spending in infrastructure projects. Still, pig farmers will face some challenges next year. “I think Thailand will face a severe drought next year and the cost of pig feed, will increase,” he said.
|Vasham partners with 3000 corn farmers in Lampung|
[10 December 2015] Indonesia’s Vasham Kosa Sejahtera, which is involved in corn cultivation has seen growth through its partnership model with farmers. The company is led by Aldrian Irvan Kolonas who has a family relationship with Handojo Santosa, owner of Japfa Comfeed Indonesia. So far Vasham has partnered with 3000 corn farmers in Lampung province. Under the partnership, Vasham provides working capital, training, monitoring and market access to Japfa’s feed plant in the province. “In the future, we plan to partner with 200,000 farmers with a land area of 200,000ha. We will expand to Central Java, East Java and South Sulawesi. We want to add soybean, cattle and cassava to our program,” said Mr Aldrian.
|Malaysia’s CAB Cakaran confirms talks with Salim Group|
[10 December 2015] CAB Cakaran Corp Bhd said it is in the midst of discussion with Indonesia’s Salim Group for the latter to acquire a stake in the poultry producer. In a filing with the local bourse the company said it will make the necessary announcements in due course. The Edge Financial Daily reported that the Salim Group is eyeing as much as a 20% stake in the company. In a separate filing CAB Cakaran and Salim Group announced their intention to set up a full-integrated poultry business in Indonesia. CAB Cakaran will hold a 10% stake in this venture with an option to increase its shareholding to 30% in the next three years.
|Egg stocks pile up in Namakkal due to floods|
[10 December 2015] Due to the recent torrential rain in India’s Tamil Nadu state, egg stocks are piling up in Namakkal, India’s egg hub. V S Balasubramaniam, Senior Manager of the National Egg Coordination Committee (NECC), Namakkal zone said that poultry farmers in this zone usually supply 4.5 million eggs/day to government run schools across the state of Tamil Nadu. “But now about 1 million eggs/day pile up as schools are closed due to floods,” he told Asian Agribiz. According to him, egg production in Namakkal has also dropped by 5% due to the rains. Daily egg production in Namakkal ranges between 32-35 million eggs/day.
|Indonesia to abolish breeding cow import tax|
[10 December 2015] The Indonesian government plans to waive its import tax on bulls and cows used for breeding to support the local cattle industry. The Agriculture Ministry has approached the Finance Ministry with its proposal to waive the 5% tax, said Muladno Basar, Director General of Livestock and Animal Health. The plan should benefit cattle breeding companies. One of them is Santosa Agrindo, a subsidiary of Japfa Comfeed Indonesia, which has been developing a (wagyu, brahman and local) breeding facility in Jabung, Lampung province since 2012. The company has imported some 1000 breeding cows so far this year, said Dayan Antoni, Head of the company’s breeding division.
|Bangladesh and Saudi Arabia strengthen trade ties|
[10 December 2015] Bangladesh and Saudi Arabia have agreed to strengthen ties in agro and meat trade among others. Ahmad Bin Fahad Al-Fuhaid, Deputy Minister of International Affairs, Saudi Arabia said recently in Dhaka that their government is actively considering Bangladesh’s proposal of granting duty free market access in Saudi Arabia. The Saudi Food and Drug Authority has also expressed its consent to import halal meat and meat products, fresh fish and shrimp from Bangladesh.
|Salim Group, CAB Cakaran to set up jv company in Indonesia|
[09 December 2015] Indonesia’s Salim Group, the holding company of the largest food company in the country Indofood, through its KMP Private Ltd has recently partnered with Malaysia’s CAB Cakaran to set up a jv company to develop a poultry integration business in Indonesia. According to a local media, Salim Group will hold a 90% stake. Salim Group will manage the financial and local operations while CAB Cakaran will manage the production and technical matters.
|Thai swine groups choose RCEP over TPP|
[09 December 2015] “If Thailand joins the TPP (Trans-Pacific Partnership), pig and other farmers will be at a massive disadvantage,” Surachai Sutthitham, President of the Swine Raisers Association of Thailand told Asian Agribiz. However, Mr Surachai believes that Thailand stands to gain if it joins the Regional Comprehensive Economic Partnership (RCEP) as RCEP members make up more than 3 billion people, or around half of the world's population. “China and Japan are the major pork importing countries and if Thailand is part of the RCEP it will likely export pork to those countries more easily.”
|Taiwanese feed producer opens plant in the Philippines|
[09 December 2015] Taiwan-based aquafeed manufacturer Grobest Inc inaugurated a new feedmill in the Philippines last week. The facility, to be run by Grobest Feeds Philippines Inc, has an annual production capacity of 150,000 tonnes of aquafeed and 200,000 tonnes of livestock feeds. According to Grobest, the plant will use locally produced raw materials, so it stands to benefit not only aqua and livestock farmers, but raw material producers as well. It will also introduce new production technologies that will ensure the feed produced at the plant are high quality and environment friendly.
|Five Star Chicken set to appeal Indian taste buds|
[09 December 2015] QSR chain Five Star Chicken, a subsidiary of Charoen Pokphand Foods (CPF) will add two new Indian dishes to its menu in India. Biryani, a rice preparation and samosas will be made available to customers in both vegetarian and chicken options. According to the company, biryani will be priced at USD 1.18 and USD 1.48 and samosas at USD 0.43 and USD 0.58 for vegetarian and chicken options respectively. In India, CPF launched its first outlet in November 2012 in Bangalore and since then it has aggressively expanded to 330 outlets.
|Vietnam additives market to reach USD 161m by 2022|
[09 December 2015] Vietnam’s animal feed additives market is expected to reach USD 160.5 million by 2022. Increasing per capita meat consumption is seen driving the market over the next seven years, said a report by market research and consulting company Grand View Research. The nascent domestic probiotics production coupled with an inclination towards antibiotics as growth promoters has been instrumental in its growth. Antibiotics accounted for over 36% of total market revenue last year.
|Jollibee opens new store in Davao City|
[09 December 2015] Continuing its aggressive expansion, Jollibee Foods Corp opened its 25th branch in Davao City in Southern Philippines. The new 24-hour store, is owned by the company and is one of the biggest in Mindanao. In a statement, Ana Lourdes Aluyen, Regional Business Unit Head said that the new store is part of the company’s “commitment to reach out to more families in the region” as well as to support Davao City’s growing economy.
|Thai Union terminates Bumble Bee deal|
[08 December 2015] Thailand’s Thai Union Group (TU) announced last Friday that it has reached an agreement with Lion Capital to mutually terminate the acquisition of Bumble Bee Foods LLC (Bumble Bee Seafoods). TU said that over the last 12 months, both TU and Lion Capital have vigorously advocated the merits of the deal to the US Department of Justice but clearance is unlikely. Thiraphong Chansiri, President and CEO of TU said: "We have put a lot of efforts to get this deal approved but clearance is now unlikely due to a higher level of complexity in the process.” TU would have sold Chicken of the Sea, the third-largest US tuna brand, if the deal to purchase Bumble Bee was approved by the US Department of Justice.
|US free of HPAI, but China imports have not resumed|
[08 December 2015] The World Organisation for Animal Health (OIE) has declared that the US is free of H5N2 avian influenza, but the poultry industry is not sure when China will resume direct imports. The OIE noted that the virus had not been detected since June. One industry insider told Asian Agribiz he was optimistic that China would soon resume imports from the US, but participants in recent inter-government talks were more cautious. Bird flu is present in wildfowl populations and if there is another outbreak this winter, the US wants China to ban imports by region.
|Indonesia’s FKS to focus more on logistics efficiency|
[08 December 2015] Indonesia’s leading agro-commodity trader FKS Multi Agro aims to double its capital expenditure in 2016 to USD 30-40 million to support its Teluk Lamong project in Surabaya, East Java. The project which is targeted for operations by the end of 2016, includes a transit terminal for dry bulk commodities. According to Bong Kong Fui, FKS Independent Director, its strategy in 2016 is for more efficiency in logistics. FKS’ main buyers include Indonesia’s largest aqua feed producer Central Proteina Prima, North Sumatera based poultry integrator Sabas Indonesia and North Sumatera based animal feed miller Mabar Feed Indonesia.
|India maintains lead as top buffalo meat exporter|
[08 December 2015] India is expected to maintain its lead as the top buffalo meat exporter in 2016 as demand has picked up in Southeast Asia, Middle East and North Africa, according to a latest USDA report. “Buffalo meat exports faced new challenges like temporary ban on buffalo meat by Russia due to FMD, devaluation of the Brazilian currency among others,” Mohammed Salim, an exporter told Asian Agribiz. However, the situation is changing as demand from traditional buyers like Vietnam is increasing alongside new business opportunities from countries like the Philippines and Indonesia.
|France exports feed wheat to Indonesia|
[08 December 2015] France is set to export its first batch of wheat to Indonesia after six years. Animal feed companies in Indonesia have expressed keenness to use wheat from France as a feed raw material option. The first vessel bound for Indonesia was due to load up with 50,000 wheat at the French port of Rouen last week. More supplies could follow later this month. Following limited supply of wheat from Ukraine and high prices from Australia, traders turned to supply from France.
|Japan to extend protective tariffs on beef and pork imports|
[08 December 2015] The Abe administration and ruling parties plan to extend protective tariffs on beef and pork imports by one year until the end of March 2017. The administration will include the extension in its fiscal 2016 tax system reform package, informed sources said. For beef, for example, Japan applies a special tariff rate of 38.5%, instead of the original rate of 50%. Under the safeguard system, the rate will be raised back to the original level when imports exceed a threshold. The Abe administration believes that it is necessary to uphold the safeguard measures to protect the domestic livestock industries, the sources said.
|Positive outlook for global poultry industry in 2016|
[07 December 2015] Rabobank in its poultry quarterly Q4 said that key fundamentals for next year’s global poultry outlook are positive. Feed prices are expected to remain low, while competitive protein prices for beef and pork will be relatively high. This provides chicken with a potentially significant price advantage, especially with a weaker macroeconomic outlook. However, the threat of avian influenza (AI) has the potential to impact supply, trade and consumer demand. The second half of 2016 will be affected by AI-related import restrictions on breeding stock in countries like China and Thailand from the US and Europe, which will lead to lower production in these countries.
|Malaysia's PWF hopes for better financials in FY15|
[07 December 2015] Malaysia's PWF Consolidated Bhd which operates 70 broiler farms across three states in the northern region, can produce 2.5 million birds per month. The listed company is hopeful of better financial performance in FY15, but declined to comment on any key performance indicators. “We are aware of the challenges ahead. Fluctuating raw material price is a long-term challenge. For now, the weak ringgit is an immediate challenge as we import most of our feed raw materials,” said Group Accountant Loo Kok Wei. The group reported a net profit of USD 2.76 million in FY14, more than double its FY13 net profit. Revenue rose 8% to USD 66.11 million from USD 61.24 in FY13.
|CP Prima’s feedmill attains BAP certification|
[07 December 2015] Indonesia’s largest aqua feed producer and shrimp processor Central Proteina Prima (CP Prima) was recently awarded the Best Aquaculture Practices (BAP) certification for its feedmill in Lampung province. It is Indonesia’s first feedmill to achieve this. Currently there are more than 50 BAP-certified feedmills worldwide. CP Prima’s shrimp hatchery and one of its shrimp farms are also BAP certified. Companies are capable of offering four-star BAP products if the product originates from BAP-certified feedmills, hatcheries, farms and processing plants.
|Pizza Hut eyes 20 restaurants in Myanmar by 2020|
[07 December 2015] Hot on the heels of opening its first restaurant in Yangon, Jardine CM Restaurant Group will open its second outlet in early 2016, said Vipul Chawla, Managing Director of Pizza Hut Asia for Yum Brands. “Myanmar has huge potential with a population of more than 50 million,” said Mr Chawla at the official launch of Pizza Hut in Myanmar. “We will expand to between 15 and 20 restaurants over the next five years,” he said. Jardine Restaurant Group operates more than 680 Pizza Hut and KFC restaurants across Vietnam, Taiwan, Hong Kong and Macau.
|Indonesia plans to import buffalo meat from India|
[07 December 2015] Indonesia is banking on its strong trade ties with India to import buffalo meat and skimmed milk from India. Consul General of Indonesia Saut Siringoringo said special forums have been formed to increase trade ties between the two countries. “Presently, most skimmed milk imports are from New Zealand,” he said during a recent interaction with media in Pune in India’s Maharashtra state.
|IBS Synergies to invest poultry production in Romania|
[07 December 2015] Indian agribusiness company IBS Synergies plans to invest USD 150 million in poultry production in Romania, a Romanian government department said recently. The project, which involves the construction of a hatchery, a fodder processing unit and a slaughterhouse, will create over 500 jobs, the foreign investment and public-private partnership department said after a meeting with officials of the Indian company. The production unit will have an annual capacity of 30 million broilers. IBS Synergies is part of IBS Group, which is active in international trade and commercial and technical solutions.
|Brazil’s BRF acquires Thailand’s Golden Foods Siam|
[04 December 2015] Brazil’s BRF SA will purchase Thai poultry processor Golden Foods Siam for USD 360 million. Golden Foods Siam is owned by Navis Capital Partners, a Malaysia-based private-equity firm. The acquisition will be carried out by its subsidiary BRF GmbH and includes all the shares in Golden Foods Siam and its assets in Thailand and Europe, Reuters reported. BRF also announced it has signed agreements to pay USD 85 million for Eclipse Holding Cooperatief UA, which owns pork operations in Argentina and around USD 51 million for Universal Meats, a food distributor in the UK. On Golden Foods Siam acquisition, Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz that “BRF may want to diversify its investment across regions and is probably eyeing Asian markets.”
|Indofood embarks on local poultry production|
[04 December 2015] In the middle of this year Indonesia’s largest food conglomerate Indofood announced that they have signed a jv with Brazil’s top poultry processor BRF. However, the plan was derailed after opposition from the poultry industry over fears that Indofood will import chicken carcass and portion cuts from Brazil. But an industry executive told Asian Agribiz that Indofood may have resorted to local production. "They have hired two local experts in broiler breeding and commercial farming,” he said. “With the support of their good distribution network throughout the country and their Indomaret minimarket chains, I believe they will be a formidable competitor to existing players.”
|CJ CheilJedang wants to acquire stake in Vissan|
[04 December 2015] South Korea-based CJ CheilJedang Corporation is planning to invest in state-owned Vietnam Meat Industries Limited Company (Vissan). CJ CEO Kim Chul Ha said he believed that as a leading processed food manufacturer in South Korea, CJ can contribute to the development of Vissan. He said CJ will work to develop a wider range of products. CJ CheilJedang Corporation has operated in Vietnam since 1998, earning around USD 600 million per year. Vissan, founded in 1970, is among the country’s top manufacturers and exporters of fresh livestock, poultry meat and processed food.
|Philippines may find cattle imports difficult in 2016|
[04 December 2015] As demand for beef rises worldwide, a shortage in beef cattle is currently being felt in the global market. This development could make it difficult for the Philippine cattle feedlot operators to import stocks next year, Yulianto Queen, Country Manager of Wellard Philippines told Asian Agribiz. He said that even major beef exporting countries like Brazil and the US are experiencing supply problem and this is likely to push global prices up. With the Philippine beef market remaining relatively small and “very price sensitive,” Mr Queen said operators may find global prices too high and be discouraged from importing. He added that the country would also be competing regionally with countries that have bigger beef markets like Indonesia, Vietnam and China, which are more likely able to absorb the higher prices.
|PWF aims to double egg production by FY17|
[04 December 2015] Malaysia's PWF Consolidated Bhd hopes to double its egg production locally before venturing overseas. A broiler company, it ventured into layer operations four years ago. The layer segment contributes about 10% to group revenue now. “At present, we are producing 400,000 eggs per day. We hope to double this by our financial year end in December 2017,” PWF’s Group Accountant Loo Kok Wei said. It recently launched the second phase of expansion for its layer farm in Kedah, which it targets to be completed by Q4 2016. To date, PWF has spent USD 11.82 million in capital expenditure for the expansion of its layer farm.
|Floods wreak havoc in India's poultry industry|
[04 December 2015] A drastic drop in demand for chicken in India and increasing feed input costs especially soybean has severely affected poultry farmers. “Floods in Tamil Nadu and neighbouring states have wreaked havoc with demand for chicken for the last 15 days,” P Pradeep Kumar, Director of Kasthuri Breeding Farms told Asian Agribiz. According to him, Chennai is a major market for chicken in Tamil Nadu and the continuing flood situation has severely affected the poultry industry’s business.
|Thailand’s CPF commits to hire migrant workers on a fair basis|
[03 December 2015] In the wake of the Swedwatch and Finnwatch report that accused Thai chicken producers of abusing migrant workers, Suchart Sitthichai, Senior Vice President of Charoen Pokphand Foods (CPF), who manages the Nakhon Ratchasima chicken processing plant, said that in hiring migrant workers, CPF adheres to equal, fair and non-discriminatory policies that meet with international standards. CPF condemns exploitation in all forms, he said. At present, CPF’s chicken processing plant in Nakhon Ratchasima employs 2300 Cambodian workers. He said they enjoy the same legal labour rights as Thai workers.
|PKie Raha Mandiri to set up feedmill in North Maluku|
[03 December 2015] Kie Raha Mandiri, a local company in Indonesia’s North Maluku, plans to set up a feed plant to support broiler and layer farmers in the province. Syamsir Andili, Director, said the price of poultry feed in the province is high since the feed has to be imported from South Sulawesi and East Java. “This situation hampers growth and farmers are not able to expand to meet the local demand for broilers and eggs,” he said. “For instance, this province still imports around 50 tonnes of eggs a month from other provinces.”
|Pakistan lifts ban on import of live cattle and meat|
[03 December 2015] Pakistan has lifted the ban on import of live cattle and bovine meat from 41 countries, declared ‘negligible risk’ by the World Organisation for Animal Health (OIE). “Imports were subject to the condition that animals come from herds where no incidence of mad cow disease have been reported for the last 11 years,” Sikandar Hayat Khan Bosan, Minister for National Food Security and Research of Pakistan said. Pakistan banned imports of live animals from mad cow disease infected countries since June 2001. “Meat could be exported to Pakistan only after fulfilling health, sanitary and halal certification,” he added.
|P2HP encourages procurement of cold storage facilities|
[03 December 2015] Indonesia’s Directorate General of Agricultural Products Processing (P2HP) and Marketing has urged the Ministry of Agriculture to facilitate procurement of cold storage facilities for traditional markets and chicken & cattle slaughterhouses in the Greater Jakarta region. According to the directorate, a 10-tonne cold storage facility can supply a traditional market with frozen/chilled dressed birds for a month. The investment for a 10-tonne cold storage facility is around USD 29,000.
Preview of Asian Feed Magazine, December 2015/January 2016
[03 December 2015]
AEC – the start rather than the culmination of integration
Interesting times lie ahead for the Asean region end 2015, as the long awaited Asean Economic Community comes into being. The Asean original members namely Singapore, Malaysia, Thailand, Indonesia, the Philippines and Brunei will lead with the remaining four members Laos, Cambodia, Vietnam and Myanmar set to comply with borderless trade by 2020, writes CONNY PEREIRA
InVivo NSA is a reliable partner for Indonesian farmers
InVivo NSA is committed to supporting Indonesia farmers with quality feed, nutrition and health products as well as international expertise in multi-species products, writes ARIEF FACHRUDIN.
Conference offers producers answers to current issues
The 2015 Asian Agribiz Poultry Feed Quality Conference, held in September in Bangkok, attracted some 300 nutritionists, feed processors and poultry integrators, who picked up valuable information on feed technology, the benefits of first feed, energy and broiler productivity, among others.
Asian middle class to sway global agri markets
The 12th Southeast Asia US Agricultural Co-operators Conference, themed Opportunities for an Industry in Transition, drew more than 170 participants. It was organised by the US Grains Council, US Soybean Export Council and US Department of Agriculture.
Rapid mycotoxin analysis
Mycotoxins produced by moulds are a growing problem in animal feed production worldwide. Analysing mycotoxins is key in understanding and controlling mycotoxin risks in raw materials and feed. KAI-JENS KUEHLMANN, RAMAKANTA NAYAK and PIERRE VAN ZON present Mycomaster - a new user-friendly system that allows rapid and cost-effective analysis of mycotoxins on-site, enabling raw material quality screening before purchasing or processing, as well as detecting mycotoxin contamination in compound feed.
Role of proper steam conditioning – starch gelatinisation
Proper steam conditioning provides the bridge to feed pelleting excellence and may provide some direct link to animal health and productivity. STEVEN GOH writes that the most important objective is to find an approach that will effectively cook and gelatinise raw starch for better pellet quality and feeding value.
|Thai chicken producers accused of migrant labour abuses|
[02 December 2015] Report from Finnwatch and Swedwatch revealed that Thai factories that process broiler meat exported to Europe violate migrant labour rights. The groups conducted the research at six factories that process broiler meat belonging to four Thai companies and found abuses including confiscation of the passports of migrant workers, excessive recruitment fees and dismal working conditions. However, ML Boondarik Smithi, permanent secretary for labour, after meeting with Thai companies alleged in the report, said that the Ministry of Labour has not found that Thai companies violate or flout labour laws. She acknowledged that communication between workers and management might lead to misunderstanding because of differences in language.
|Pig feed production lifts Malindo’s profits|
[02 December 2015] Analysts have predicted that Indonesia’s Malindo Feedmill’s new USD 15 million feed plant in Makassar, South Sulawesi that has been running since early 2015 will contribute to the company's performance as this fifth plant also produces pig feed. “The plant also supplies pig feed to North Sulawesi,” said Michael W Setjoadi, Bahana Securities Analyst. “Not to mention that the price of pig feed is higher than poultry feed. This will offer better profits.” Mr Michael said the demand for pig feed in North Sulawesi is around 1000 tonnes/month.
|Australian beef featured at Asia’s largest Carrefour|
[02 December 2015] French hypermarket Carrefour has opened its largest store in Asia with plans to feature imported food to appeal to China’s medium and high-end consumers. The store covers more than 71,000 square metres and is located in north-eastern Beijing near a ring of middle and upper-class suburbs. The store creates a new retail channel for imported products like Australian beef and French sea salt. "Chinese consumers want to try everything,” Laurent Olszewski, regional manager at Carrefour, told China Daily.
|Indonesia’s Kendari to have a new feedmill in 2016 |
[02 December 2015] The local government of Kendari in Indonesia’s Southeast Sulawesi is building a medium-scale feedmill to support poultry farmers in the region. Zainal Arifin, Head of Agriculture Agency in the province, said construction is targeted to finish in 2016. “The feedmill will answer the poultry farmers’ request for cheaper feed price,” he said. He added that the plant will use leftover fish which is abundant in the region.
Asian Agribiz regional dairy update
[02 December 2015]
China's whole milk powder imports expected to rise
China’s whole milk powder (WMP) imports will recover somewhat in 2016, but will not touch the highs they reached in 2014, according to the USDA’s annual Dairy and Products report. WMP imports will reach 400,000 tonnes, up 14% from 2015, but nowhere near the 671,000 tonnes imported in 2014. Chinese buyers are also said to be looking for alternatives to supply from New Zealand, which now has 90% market share. Non-fat dry milk powder imports are also expected to rise slightly, from 200,000 tonnes in 2015 to 210,000 in 2016. USDA also forecast that fluid milk imports, mostly UHT, would continue to rise steadily, from 320,000 tonnes in 2014 to 350,000 in 2015 and 380,000 in 2016.
India’s dairy exports projected to remain flat
India’s dairy exports are projected to remain flat at 30,000 tonnes in 2016 on expectations of high global supplies and low prices, according to a recent USDA report. The country’s milk output may increase by 4.8% to 154 million tonnes and domestic consumption is forecasted to increase by 5%. “Overall dairy exports from India is set to minimal due to high domestic consumption and hence exports are projected to be flat due to uncompetitive export prices,” the report said.
Yashili-Mengniu open New Zealand infant formula plant
A state-of-the-art infant formula plant, one of the biggest Chinese investments in New Zealand, has opened, according to Xinhua. A subsidiary of China's Yashili International Holdings Ltd and Mengniu Dairy Co Ltd, invested USD 145.5 million to develop the plant in New Zealand’s North Island. The 30,000 sqm plant, employs 85 staff members and produces about 52,000 tonnes of formula annually.
India-Brazil agree to increase cattle and buffalo yields
India and Brazil have agreed to take up collaborative projects in the field of productivity improvement of cattle and buffaloes. India’s National Dairy Development Board and Brazil's Agricultural Research Corporation have agreed to enter into an MoU for knowledge sharing and also to exchange advanced breeding technology and genetic material for mutual benefit. The agreement was reached during the recent meeting between Indian Agriculture Minister Radha Mohan Singh and his Brazilian counterpart Katia Abreu.
|Kee Song's online retail picks up in Singapore|
[01 December 2015] Singapore-based Kee Song Group of Companies, will continue to focus on its online sales platform. James Sim, Group Marketing Manager, told Asian Agribiz its online.keesong.com site records about 1% of the company’s sales. On average per customer spends USD 50 in a transaction. “Despite the small percentage, the company sees good reason to continue to focus on online retail. Online sales are picking up with an average of 150 fresh customers signing up monthly,” he said. Besides its Lacto, CaroGold and Cordyceps range of frozen uncooked chicken the site also sells marinated RTC and RTE chicken products, sauces and condiments.
|Thai Union ready to sell Chicken of the Sea to acquire Bumble Bee |
[01 December 2015] Seafood company Thai Union Group (TU), is willing to sell its Chicken of the Sea tuna business in the US to acquire Bumble Bee Seafoods. TU is in talks with potential buyers and expect to sell Chicken of the Sea, the third-largest US tuna brand, if the US Justice Department allows the company to buy Bumble Bee, said Thiraphong Chansiri, President and CEO, Bangkok Post reported. TU’s Bumble Bee acquisition was suspended because the US Department of Justice launched an antitrust investigation of TU's subsidiary Tri-Union Seafoods, maker of Chicken of the Sea. The Department is expected to make a decision on December 18 on the proposed USD 1.5 billion acquisition of Bumble Bee Seafoods.
|Vietnam could emerge as world’s largest corn importer|
[01 December 2015] In the last 10 months Vietnam's corn imports surged 56% to 5.72 million tonnes, worth USD 1.26 billion, compared to the same period last year. If imports continue to grow as strongly Vietnam could become the world’s largest corn importer, Pham Quang Dieu, Vietnam Market Analysis and Forecast Joint Stock Company (Agromonitor) told a conference recently. Most of the imports come from Brazil (53%) and Argentina (42%). Vietnam needs more than 27 million tonnes of feed for livestock and aquaculture sectors a year. The Vietnam Feed Association said demand for animal feed is expected to rise in the coming years.
|Japfa Comfeed Indonesia records net loss |
[01 December 2015] Indonesia’s poultry integrator Japfa Comfeed Indonesia recorded a net loss of around USD 7.4 million in the first nine months of this year, compared to last year’s net income of USD 28.2 million. The loss was attributed to spiralling expenses and foreign exchange losses. Revenue meanwhile, increased marginally to around USD 1.3 billion while gross profit margins remained relatively stable at 14.5%. Animal feed, a major revenue contributor only achieved USD 506 million during the period. Commercial farm and consumer products led revenue contributions at around USD 554.2 million.
|Modern International to increase sales of ready meals |
[01 December 2015] Modern International, the operator of 7-Eleven convenience stores in Indonesia, hopes to book USD 87.3 million in sales in 2016. To achieve this target, Chandra Wijaya, Finance Director, said it plans to add 200 stores to its current 189 stores. The company wants to push the sales of its ready meal category. Its subsidiary Fresh Food Indonesia that produces various ready meals such as chicken katsu and chicken rice bowl recently completed expansion of its food production plant in East Jakarta. The plant is now able to produce ready meals and other food products for 500 stores.
|South Korea halts import of French poultry |
[01 December 2015] South Korea has suspended the import of poultry and live birds from France after the country reported an outbreak of avian influenza (AI). The Ministry of Agriculture, Food and Rural Affairs said birds at a farm in Dordogne were infected with the virulent H5N1 strain of bird flu. “All meat products, live birds, which include pets, and even eggs will be affected, although processed foods that have been treated with heat are exempt,” the ministry said. South Korea imported 1 tonne of duck meat, 13 tonnes of foie gras, 844,000 chicks and 41,000 ducklings from France between January and October.
|Indonesia’s AP5I vote for RCEP over TPP |
[30 November 2015] While Indonesian President Joko Widodo expressed interest in joining the Trans Pacific Partnership led by the US, Thomas Darmawan, Chairman of the Indonesian Fishery Products Processing and Marketing Association (AP5I), told Asian Agribiz that most of TTP members are developed countries that implement different standards from developing countries. “So if seafood processors export to those countries, there will be many barriers,” he said, adding that for Indonesia TPP is more beneficial for the automotive industry. “But for agribusiness and fishery, it is better to join the Regional Comprehensive Economic Partnership (RCEP) as the potential market is around 3.4 billion people, higher than the TPP,” he added.
|Nestlé to combat forced labour in Thailand|
[30 November 2015] Nestlé, one of the biggest food companies in the world, has pledged to tackle any forced labour employed in its supply chain in Thailand. Nestlé’s commitment came after a report, conducted by Verite and commissioned by Nestlé, found that forced labour, trafficking, and child labour to be present among sea-based and land-based workers in the Thai seafood industry. The report also found deceptive recruitment practices and exploitative and hazardous working conditions on fishing boats and in processing factories. Nestlé has published an action plan on seafood sourced from Thailand, aimed to protect workers.
|Chicken egg prices in Malaysia see gradual uptrend |
[30 November 2015] Chicken egg prices in Malaysia have been recovering over the past four months. Grade A egg price at the farm in the week of October 15 reached 38 sen (USD 0.09) per piece, the highest since prices dipped to 31 sen in the week of July 14, according to the Department of Veterinary Services. Prices are still low compared with the start of the year. The EdgeMarkets quoted industry sources cautioning that a possible glut could cap prices in the coming months. Some 20 Malaysian companies export eggs to Singapore. Egg producers make about 3 sen more per egg exported across the Causeway.
|Vitamin E alleviates heat stress in growing pigs|
[30 November 2015] Pigs raised in hot weather have an increased carcass to fat to protein ratio noted Fan Liu, of the University of Melbourne at the Australian Pig Science Association Conference. Reduced lipid mobilisation during heat stress was ameliorated by a high vitamin E diet (200IU/kg a-tocopherol), but not by a high selenium diet (1ppm Se yeast), suggesting that vitamin E may prevent increased adiposity experienced during hot seasons.
|Cargill's 11th feedmill in Vietnam to commence operations in 2016|
[30 November 2015] Cargill's feedmill in Nghe An, Vietnam which is under construction, will begin operations in the first half of 2016. The company has also invested USD7 million for the expansion of its existing animal feed mill in Dong Thap. Cargill currently has 10 feedmills that produce compound feed for both livestock and aquatic species, and one facility in Dong Nai which provides premix to feed manufacturers and vertically integrated producers. “Vietnam represents an important market for us and presents clear growth opportunities. Our investments here reinforces our commitment to the Vietnamese market and its people,” said Cargill Chairman and CEO David MacLennan.
|Australia’s ProTen eyes Asia for future growth|
[30 November 2015] ProTen, Australia’s largest independent contract grower of broiler chickens and the supplier to Australia’s biggest chicken processor Baiada Poultry, is eyeing Asia for future growth. The company is considering taking its corporate chicken farming model beyond Australia and into Asia, for future expansion. “We have got enough capital now to probably meet the next three to four years of our program. Funding into Asia would require additional investment. Potential expansion into Asia would likely be in the next two to five years,” Maxwell Bryant, Executive Director, said.
|H7N9 picks up in China|
[30 November 2015] China's fourth wave of H7N9 infections has hit its fifth victim in Guangdong province. The man, a farmer in his 70s has been hospitalized, according to a report from Xinhua. This is the first case from Guangdong province. The earlier four were from Zhejiang province. More infections are expected in coming months.
|Thai corn farmers urged to embrace technology|
[27 November 2015] “Corn planted area is limited in Thailand and productivity is low. We need to boost output by embracing technology in farming and in seed improvement," Pornsil Patchrintanakul, President of Thai Feed Mill Association told Asian Agribiz. He added that if productivity cannot be improved, corn imports would be inevitable. Feed corn price is currently around USD 0.24/kg. Mr Pornsil said next year the price of corn will not fall below the current level because demand is growing and an anticipated drought could impact supply.
|Petersime establishes its regional hub in Malaysia|
[27 November 2015] Belgian manufacturer of incubators and hatcheries Petersime NV customers in Southeast Asia can expect quicker and more efficient sales and services. The company opened its regional office in Malaysia yesterday. Carmelo Ferlito, Commercial Director Southeast Asia, said the office will allow Petersime to be closer to its customers in the project design stage and provide field service engineers for effective installation and technical support. “There was a need for a business hub in the region. To follow up from Europe is no longer feasible. It’s not just about supplying good equipment anymore. It’s also about building relationships,” he told Asian Agribiz.
|Kee Song to invest 5% of revenue on brand building|
[27 November 2015] Antibiotic-free Keesong chicken, a product of Singapore-based Kee Song Group of Companies, is growing in popularity on both sides of the Causeway as consumers look for safer chicken meat. The brand offers three categories of premium products – fresh whole chicken, fresh chicken parts and frozen chicken parts – in its Lacto, CaroGold and Cordyceps range. James Sim, Group Marketing Manager, Kee Song Brothers Poultry Industries Pte Ltd, told Asian Agribiz that the company is focused on creating a brand that is synonymous with healthy living. To push their agenda, the company has allocated a 5% marketing budget to ensure its brand building targets are met.
|Indonesian and Philippines firms in jv for chicken processing|
[27 November 2015] Indonesia’s Triputra Group and Persada Capital Group recently cooperated with the Philippines’ Bounty Fresh Food Inc to set up a jv company called PT Bounty Segar Indonesia to venture into the chicken processing & further processing sector. The jv was signed last week in Jakarta. Bounty Segar plans to set up a production facility in West Java. Martinus Sinarya, President Director of Triputra Group’s subsidiary Sumber Energi Pangan, said the facility is targeted to start production in 2017.
Poultry India 2015, Hyderabad, India
On-site report by SM ARUN
[27 November 2015]
On the second day of the show in Hyderabad, India, Asian Agribiz caught up with key suppliers to the market. Following is a report on trends and developments.
Kemin sets up new R&D facility in Chennai
Kemin Industries South Asia Pvt Ltd based in Chennai has set up a new R&D facility in Ambattur Industrial Estate in Chennai. R Kannan, Marketing Manager, Animal Nutrition & Health said the lab set up at an investment of USD 2 million reflects Kemin’s dedication to research. “We have also moved our office to Ambattur Industrial Estate, which will enhance the company’s operational capabilities,” he added. Kemin is aggressively promoting its products KemZYME XPF and KemZYME Proteas that helps improve the performance of broilers.
Jamesway enters Bangladesh market
Poultry incubation systems manufacturer Jamesway has entered the Bangladesh market. SV Deshmukh, Area Sales Manager said that the company has supplied incubators to three poultry players New Hope Group, Kazi Farms Group and Advance Chicks in Bangladesh. “On seeing the efficiency and superior after sales service by Jamesway, we are getting more enquiries from players in Bangladesh,” Mr Deshmukh said, adding that they are growing stronger in the country. Jamesway is all set to supply incubators to three more poultry players in Bangladesh in the next few months.
Big Dutchman optimistic about Indian market
Poultry production equipment manufacturer Big Dutchman is optimistic about its growth in India as poultry producers in the country are gradually turning towards automation. “Our local presence in India is an advantage and poultry farmers are now confident that we can provide efficient and timely solutions,” Bernada Luers, Training & Marketing Manager of Big Dutchman said.
Meyn to exploit changing market conditions
With more poultry producers turning towards processing, poultry processing technology company Meyn is looking forward to leverage the opportunity. Dennis Groesbeek, Regional Director of Meyn said that India is an exciting market for Meyn as the processing industry here is expected to double in the next five years. “Even though the Indian market is different from other countries, our rich experience in providing processing technology to customers all over the world will help in providing solutions that best fits the Indian conditions,” he said.
Biomin plans for a production facility in India
Animal nutrition company Biomin is planning to set up production facility in India in the next 3-5 years. Sujit Kulkarni, Managing Director of Biomin India said that this will help the company to meet the growing demand for Biomin products in the country. “Identification of land for the new production facility is expected to be done next year,” he said. 'Biomin recorded good growth in India last year. We are also expanding our team to reach out to more customers,” Dr Kulkarni added.
Andritz expands market presence in India
Feed processing technology provider Andritz has expanded its market presence in India in the last few years. “In the last 3-4 years, we have installed 52 feed plants across India and have achieved the number one position in this market,” Arul Jerish, Project Executive of Andritz Technologies Pvt Ltd said. “Equipment quality and a competent team that offers good service helped us achieve the top sport,” Mr Jerish added.
|Thailand’s feed corn demand to reach 6.5-7 mt by 2018|
[26 November 2015] Meat exports from and meat consumption in Thailand have been growing annually and these dictate feed supply, Pornsil Patchrintanakul, President of Thai Feed Mill Association told Asian Agribiz, adding that feed corn demand will reach 6.5-7 million tonnes/year in the next three years, while production this year is estimated to be just 4.7 million tonnes. He said corn supply will not match future demand, and imports are limited.
|Revolutionising sow management|
[26 November 2015] Current sow management is essentially dominated by the need to wean sows to then re-mate them. This is based on the long held paradigm that sows are anoestrus during lactation. Dr Jeff Downing, University of Sydney, Australia said that group lactation provides an opportunity to use proven stimuli to induce lactational oestrus. Mating in lactation will remove the need to wean pigs early and allow not only older age weaning, but also gradual weaning he said at the Australian Pig Science Association Conference in Melbourne, Australia.
|Exclusive marine food park planned in Kerala|
[26 November 2015] A mega food park to cater exclusively to the marine food processing sector will be set up in Cherthala in India’s Kerala state. Chief Minister of the state Oommen Chandy said that the food park with an investment of USD 38 million will have common infrastructure facilities such as cold storage, ice plant and reefer vehicles. “The project is expected to attract investment of USD 75 million from the marine processing industry when it comes into operation in three years,” he said.
|Global processed meat market to reach USD1222.3b by 2022|
[26 November 2015] The global processed meat market was valued at USD 529.3 billion in 2014 and is projected to reach USD 1222.3 billion by 2022, growing at a CAGR of 11.02% from 2014 to 2022. According to Market Research Store, key factors fuelling market growth are demographic variations in terms of rise in disposable revenue, age and salaries particularly in Asia Pacific. Increase in food service and trade in Asia has led to better supply of processed meat products. Increasing cost of raw materials is the main problem while organic livestock is generating market opportunity.
Poultry India 2015, Hyderabad, India
On-site report by SM ARUN
[26 November 2015]
The ninth edition of the growing Poultry India international exhibition opened in Hyderabad, India yesterday, with active participation from both domestic and international exhibitors. The three day show offers a wide platform with valuable information about the poultry industry and disseminates knowledge about the latest technology available to producers in South Asia.
Like the earlier editions, this year’s Poultry India exhibition witnessed vibrant participation by around 220 companies including 40 from overseas. Harish Garware, President of Indian Poultry Equipment Manufacturers’ Association (IPEMA), said that the exhibition focuses on growth of the poultry sector with the core theme as ‘Sustainable Growth for All’. “Our focus has always been on exploring ways to further accentuate growth of the Indian poultry industry, which is progressing,” he said.
Knowledge Day focuses on science of poultry and latest innovations
In the run up to Poultry India, a one day interactive technical seminar themed ‘Knowledge Day’ was held on November 24. Leading regional and international experts presented a series of lectures on current challenges and problems. “The intelligence and experience shared by experts on different aspects of poultry science and latest innovations such as breeding, hygiene, nutrition, animal health, poultry equipment and logistics were beneficial and shed light on new areas,” a participant said.
Farmers keep up with advances in technology
The exhibition also served as an ideal platform for hundreds of poultry farmers operating in semi urban and rural areas of India to learn about modern technology. “It is a good opportunity for us to learn the latest trends in the international poultry sector from international exhibitors,” Surendra Yadav, a poultry farmer and visitor to the exhibition commented. According to him, the popularity of the exhibition is that it brings international exhibitors to the doorstep, which helps in improving the competitiveness of the Indian poultry industry.
Godrej Agrovet eyes USD 0.67 billion revenue
Diversified agribusiness company Godrej Agrovet Limited expects to rake in USD 0.67 billion in revenue this year. Balram Yadav, Managing Director of the company said that they are in the process of acquiring Mumbai based Astec Lifesciences. “Last year our revenue was USD 0.57 billion and we expect to reach USD 0.67 billion post-acquisition,” he said. Godrej Agrovet is planning to acquire up to 5 million shares in Astec at USD 3.71 per share.
Industry urges government to remove import duties
The poultry industry has asked the Union Government to remove duties on imports of corn and soy to help farmers meet feed shortage. The demand was made against the backdrop of a severe drought that resulted in poor corn and soy output. GB Sundararajan, Managing Director of Suguna Foods Pvt Ltd in his address at the exhibition said the shortfall would mean an additional expenditure of 20-30%. “This would result in heavy losses in the industry,” he said.
|Thai chicken producers told to cut costs, increase processed chicken|
[25 November 2015] Chicken producers should reduce costs and produce more value-added chicken products amid weak prices, Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. “Fresh chicken is a commodity and its price fluctuates based on competition,” he said, adding that prices for export and domestic chicken has been weak due to lower prices from overseas markets. Mr Kukrit said that some producers are operating at a loss as live chicken is retailing at USD 0.97/kg currently, while production cost is USD 0.97-1.03/kg.
|Cargill has no plans to enter animal protein space in Malaysia|
[25 November 2015] Cargill Feed and Nutrition confirmed that it has no plans to enter the animal protein space in Malaysia. Instead it will focus on working with and supporting its customers in the poultry, pork and swine industries. “We are here to meet our customers’ needs, and we are focused on the growth of their animals,” Beth Carlson, Managing Director, told Asian Agribiz. "We are moving away from focusing on the price of feed and instead looking at the technical support and farm management tips we can provide them,” she said. The company recently announced that it plans to invest in poultry production in the Philippines.
|Lay Hong’s net profit rises 36% on unit disposal gain|
[25 November 2015] Malaysian poultry integrator Lay Hong Bhd registered a 36% net profit rise to USD 2.0 million in the second quarter ended September 30, 2015 from gains on disposal of a subsidiary, it said. Revenue, meanwhile, slid a marginal 1.3% to USD 38.52 million from the same period last year. The company said in a statement that revenue from its integrated livestock farming segment for the two quarters remained at a similar level. Moving forward Lay Hong said the strengthening of the US dollar against the ringgit will have a serious impact on the group's profitability due to costs of major raw materials, especially corn and soybean.
|India proposes Blue Revolution to boost fisheries|
[25 November 2015] The Indian government has proposed a ‘Blue Revolution’ to boost the fisheries sector with an outlay of USD 452 million. “The scheme will cover inland fisheries, aquaculture, marine fisheries, deep sea fishing and all allied activities,” Union Agriculture Minister Radha Mohan Singh announced. According to him, the government is intent on harnessing all possibilities for intensive and integrated development of the fishery sector. The country’s fish production crossed 10 million tonnes in 2014-15 with export earnings of USD 5.51 billion.
|Antimicrobial stewardship vital in pig management|
[25 November 2015] Antimicrobial stewardship is emerging as a vital management tool in efforts to contain antimicrobial resistance and retain the efficacy of available agents stated Prof John Turnidge, Australian Commission on Safety and Quality in Health Care, at the Australian Pig Science Association (APSA), in Melbourne yesterday. Stewardship is more than producing and promulgating guidelines, rather it should support a program of audits and interventions, which will identify areas of suboptimum antimicrobial use and working with prescribers to improve use.
|Taiwanese meat company accused of using non-food grade ingredients|
[25 November 2015] A Taiwanese hot dog and ham production company based in Taipei has been accused of using non-food grade chemical ingredients in its products, the Taipei City Health Department announced. Health officials said the company, Tai Chuan Hot Dog and Ham Factory, was found with hot dogs, ham and bacon produced with sodium nitrite and nitrite. Prosecutors suggested the business wished to lower the costs of producing the meat by using non-food grade chemical ingredients and urged related government sectors to uphold food safety standards.
|Singapore recalls tainted Highway luncheon meat |
[24 November 2015] A batch of Highway brand canned pork luncheon meat was recalled after a fragment of a hypodermic needle was found in the product, the Agri-Food and Veterinary Authority of Singapore (AVA) said. The product has been removed from retailers’ shelves. Distributor, Hock Seng Food, explained that the fragment could have been from a needle that broke when the pig was vaccinated. It said that their supplier in France has been warned to tighten checks. The processing and packing plant in China has also added metal detectors as a precaution. It assured customers that other batches of the product are not affected.
|Century Pacific posts 22% hike in 9-month profit|
[24 November 2015] Century Pacific Food Inc, a Philippine company that produces processed fish, meat, and dairy products, posted a net profit of USD 31.9 million in the first nine months of this year, up 22% from the same period last year. The company credited the growth to higher local demand that boosted sales which reached USD 365.8 million, up 13% year-on-year. The company’s brands include Century Tuna, Argentina Corned Beef, 555 Sardines, Angel Milk and Birch Tree Milk. It exports tuna products for private labels overseas.
|Marel to acquire MPS|
[24 November 2015] Marel has agreed to acquire MPS meat processing systems for around USD 406 million on a debt and cash-free basis. MPS is a global leader in primary processing solutions for the meat industry. The two companies have a great strategic and cultural fit with complementary product portfolios and geographic presence. Arni Oddur Thordarson, Marel's CEO, said: “MPS is a great complementary fit with Marel and we have been partners in several projects in the meat industry around the globe. Together the companies are stronger and in the position to deliver full line solutions to meat processors around the world.”
|Australia blocks cattle station sale to Chinese investor|
[24 November 2015] Australia’s Trade Minister has criticised his government’s decision to block the sale of a huge cattle station to a Chinese investor, according to published reports. Shanghai Pengxin Group was bidding for S. Kidman & Co’s ranch properties, but Treasurer Scott Morrison said national interest and national security issues required the government to block the sale. Trade Minister Andrew Robb said the decision was politically driven and added that the sector needs foreign investment. Pengxin has been an aggressive buyer in both Australia and New Zealand, and is suing the New Zealand government over its decision to block a proposed purchase there earlier this year.
15th Biennial Conference of the Australian Pig Science Association
On-site report by CRAIGE ALLAN
[24 November 2015]
The Australian Pig Science Association (APSA) conference promotes interaction between scientists from different disciplines and from different countries, with particular emphasis on fostering the development of young scientists. With the theme ‘Manipulating Pig Production’ presentations centred on functional carbohydrates, impact of heat stress on the performance & health of pigs and meat quality.
Feed NSPs – classification and function
According to Prof Mingan Choct, University of New England, Australia, although crude fibre (CF) is used in feed formulation to set the fibre level in feed, it is not at all a reliable, let alone accurate indicator of the true fibre content of feed. For example, the CF content of soybean meal is about 5%, whereas the true fibre level is as high as 25%. He said that nutritionists in the future will need to move away from using CF in order to improve the precision of feed formulation for monogastric animals. This will require a comprehensive non starch polysaccharide (NSP) database for ingredients used in pig and poultry feed.
Nutritional strategies to alleviate heat stress in pigs
Prof. Frank Dunshea, University of Melbourne, Australia highlighted that pigs are comparatively less heat tolerant than other species of production animals. He said that management of heat stress requires multiple strategies, and recent research is improving the understanding of the application of nutritional strategies to ameliorate the effects of heat stress. In particular, the use of feed additives is an important, flexible and economical method to alleviate heat stress. Some specific examples include antioxidants, betaine and chromium.
Reducing pork eating quality fail rates
Boar taint is an issue facing the Australian pig industry. Karen Moore, Department of Agriculture and Food, Western Australia confirmed immunisation against gonadotrophin releasing factor is effective in eliminating boar taint and reduces pork quality fail rates by approximately 10%, compared to pork from entire male pigs.
|Thailand's livestock groups oppose TPP|
[23 November 2015] The Thai government is studying the impacts of joining the US-backed Trans-Pacific Partnership agreement (TPP). However, local livestock groups do not want Thailand to join TPP, citing severe negative effects on the livestock industry. Suthep Vongruen, President of Animal Husbandry Association of Thailand said that Thailand joining TPP may push livestock producers and feed makers (such as corn and soybean farmers) into bankruptcy because they cannot compete with the US, which is a major global livestock producer. Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz that if Thailand joins the TPP, unwanted chicken parts from the US will flood the Thai market and will lower chicken prices. “Ultimately it will affect live chicken prices in Thailand and farmers will operate at a loss. Consequently, farmers will stop raising chickens and then who will buy corn?”
|USDA will ask China to modify poultry ban|
[23 November 2015] USDA officials will again attempt to convince China to lift or modify a ban on US poultry at the upcoming meeting of the US-China Joint Commission on Commerce and Trade, US Agriculture Secretary Tom Vilsack told Reuters news agency. An outbreak of avian influenza last January prompted China and many other countries to ban US poultry imports. No bird flu has been detected in the US since June 17 but with the winter flu season approaching officials are worried about renewed outbreaks. The US wants China to switch to a regional basis for banning imports. Mr Vilsack said he didn’t expect the ban to be lifted at the JCCT but he hoped “over time to see a relaxation of that ban.”
|Purefoods’ income up on feed trade|
[23 November 2015] Philippine food group San Miguel Pure Foods Co Inc grew its nine-month net profit by 7% year-on-year to USD 6.2 million, driven by its animal feed businesses and branded consumer food. The company reported a 3% growth in revenue for the January to September period to USD 1.6 billion, while operating income expanded by 4% year-on-year to USD 95.6 million. Purefoods said strong revenues from the feeds and branded value-added businesses offset weaker sales in the poultry, meats and flour segments. Its agro-industrial businesses, consisting of feeds, poultry and Monterey meats, registered combined revenues of USD 1.1 billion, 3% higher than last year. Growth came largely from the feeds business.
Asohi addresses animal protein challenges in Indonesia
Onsite report by ARIEF FACHRUDIN
[23 November 2015]
The Indonesian Veterinary Drugs Association (Asohi) hosted a seminar in Jakarta on November 18 that focused on a number of issues related to the progress of the animal protein sector in the country.
Reliable data required for beef cattle industry
Director General of Livestock and Animal Husbandry, Muladno Basar explained that the beef fattening sector is dominated by feedlot companies with cattle imported from Australia while the breeding sector is dominated by small-scale farmers. In the processing segment, Dr Muladno said there are no international standard slaughterhouses and the sale of fresh warm beef is far higher than frozen beef. “Another big problem is cattle here have no identity. That is why the data on local cattle population is always debated. The same thing applies to beef consumption data,” he explained.
SPR program for 2016
Dr Muladno said the local cattle self-sufficiency program was terminated at the end 2014. It has been replaced with the cow oestrus synchronization and artificial insemination program to increase the local cattle population. “Starting next year, the policy is to develop small farmer centres (SPR),” he said. In SPR, around 500 farmers will be grouped in one organisation with one database, SOP and one-door business system. It will cover all livestock, with one SPR having a minimum of 1000 dairy and beef cattle, while for broiler, layer, duck and pig, it is 125,000 birds/cycle, 50,000 birds/cycle, 20,000 birds, and 1000 sows respectively.
Collaboration is important
Dr Muladno said that to improve the local beef industry, Indonesia has to think about collaboration rather than competition. "We have to collaborate with Australia because they have good cattle resources, knowhow and technology. Together we can target the global halal beef market,” he said. Dr Muladno said: “We are also open for collaborations with Brazil, India and Mexico.”
Broiler DOC supply & demand
Krissantono, Chairman of the Indonesian Poultry Breeding Companies Association, said in 2015 the supply of broiler DOC is around 48-50 million chicks/week, while demand is only around 37-40 million. In 2014 supply was around 42 million chicks/week and demand was only around 37 million. “The supply of GPS and PS in the country is quite high. We need accurate data to prevent over cutting of DOC supply,” he said. The Directorate General of Livestock & Animal Health and poultry breeding companies agreed to cull 6 million broiler PS. “Until now, 2 million broiler PS have been culled. If we trim too much, in 2017 we will have to import a lot of PS and imported PS is expensive,” he explained.
Bad year for many feed millers
The last 3-4 years saw many new local and foreign players enter the feed industry in Indonesia, said Sudirman FX, Chairman of the Indonesian Feed Millers Association (GPMT). However, in 2015 some stopped production, due to the economic slowdown, low purchasing power and broiler DOC oversupply. A feed industry executive told Asian Agribiz that there are four feedmills that are for sale. “Two are in discussions with international feed producers,” he informed.
Feed consumption in 2015 to reach 16mt
Total feed production capacity in Indonesia this year increased 1 million tonnes to 21 million tonnes because of the addition of two new feedmills. GPMT has 84 feedmills under its umbrella, said Mr Sudirman. He believes that this year national feed consumption will reach 16 million tonnes. In 2020, he said it is predicted that feed consumption in the country will reach 26 million tonnes. With this figure, the country will need around 13 million tonnes of corn for animal feed.
Feed consumption in 2016 projected to reach 17.5mt
Indonesian feed consumption in 2016 is projected to reach around 17.5 million tonnes. However, according to Mr Sudirman, this depends on currency and government policy. “So far, currency depreciation is at a high level. That is why, although the global price of corn and sbm is declining, we cannot enjoy the low price,” he said. Another important point is government policy. GPMT expects supportive policies from the government for the feed industry to grow.
Animal health products market to grow at 7-10% in 2016
The market for animal health products in Indonesia is predicted to reach USD 276 million this year. Of this figure, poultry biological & pharmaceutical products are predicted to reach around USD 129 million, while pig and cattle biological & pharmaceutical products at around USD 16 million and premixes at around USD 131 million. Irawati Fari, Chairman of the Indonesian Veterinary Drugs Association, said if the economy next year grows at 4.9%, livestock population at 5-8% and feed consumption at 7%, “we predict the market for animal health products will grow by 7-10%.”
|More energy needed for broiler breeders|
[20 November 2015] Broiler breeders today are different from the past due to genetics, Dr Craig Coon, Poultry Nutritionist and Professor at University of Arkansas told Asian Agribiz at the Novus Breeder Forum in Bangkok yesterday. In the past, people assumed that when broiler breeders got older and heavier, they gained fat, not muscle. However, broiler breeders today gain a tremendous amount of muscle and protein. “We have to feed broiler breeders more energy to take care of extra muscle and extra protein and if we don’t, we lose eggs.” Dr Craig said producers tend to underfeed energy to broiler breeders in the last part of production. He added that overfeeding protein in broiler breeders decreases fertility and hatchability.
|Cargill opens its largest feedmill in South Korea|
[20 November 2015] Cargill marked a significant milestone in South Korea with the official opening of its Agri Purina feedmill in Pyeongtaek, its largest plant to date. The 53,000 sq m facility has a capacity of 870,000 tonnes and produces poultry, ruminant, swine and pet food products marketed under the Purina and Nutrena brands. Dr Lee Bo Kyeun, South Korea country representative and President of Cargill Agri Purina Korea, said this investment focuses on delivering success. “The new feedmill will enable us to better serve our customers with advanced technology and high quality, safe animal feed.”
|Indian university develops Omega-3 chicken |
[20 November 2015] The Bhartiya Vidyapeeth Deemed University in Pune, India has developed Omega-3 chicken and is looking to promote it in different parts of the country. Principal Project Investigator PB Ghorpade said the healthier chicken with more than 300mg of Omega-3 per 200g is expected to retail well among health conscious consumers. “We have introduced Omega-3 into milk and clarified butter and expect the dairy sector to embrace the technology,” he said.
|Jollibee sets 2016 capex at over USD 221m|
[20 November 2015] Jollibee Foods Corp (JFC) has earmarked more than USD 221 million for its capital and expenditure in 2016 as it seeks to expand its presence in the international market. In a disclosure to the Philippine Stock Exchange, JFC said nearly three quarters of the total will be used for new stores, rehabilitation of existing stores and the expansion of its commissary. JFC CEO Ernesto Tanmantiong said the target is to open more than 300 stores next year.
|FAO helps Indonesia evaluate post-harvest fish loss |
[20 November 2015] Indonesia’s Ministry of Fisheries and Marine Affairs has formed a partnership with FAO to evaluate post-harvest fish loss (PHFL). Nilanto Perbowo from the ministry’s Research & Development Agency said the PHFL rate of the Indonesian fishery industry is about 30%, “even FAO estimates bigger than this at 35%.” He continued that through the partnership the ministry wants to evaluate losses during production, processing and marketing. The ministry recorded that last year’s PHFL value was about USD 2 billion.
|New vaccine facility in India|
[20 November 2015] Indian Immunologicals Limited (IIL) has set up a vaccine manufacturing facility in Hyderabad to manufacture vaccines against infectious diseases. “The USD 38 million facility is India’s largest facility for producing animal health formulations and will cater to domestic as well as international markets,” a statement from the company said. The new facility will produce animal health formulations for bovine, sheep and pets and anti-rabies vaccine for humans.
|Thaifoods Group’s Q4 earnings to remain weak|
[19 November 2015] Thailand’s Thaifoods Group’s (TFG) earnings is expected to remain depressed in Q4, hit by decrease in live chicken and pig prices and softening demand. Bualuang Securities expects TFG to post a loss of USD 8.3 million in Q4. Meanwhile, TFG posted a net loss of USD 7.6 million in Q3. Bualuang Securities expects TFG’s earnings to bounce back sharply next year, led by higher prices of chicken and increased domestic consumption energized by the government’s economic stimulus measure. “I think the Thai economy will rebound next year and consumption will increase.” Prasit Sujiravorakul, analyst at Bualuang Securities told Asian Agribiz. He predicts TFG’s profit will be in the region of USD 23.7 million in 2016.
|Cargill invests in new feedmill in Vietnam|
[19 November 2015] Cargill revealed plans yesterday, for a new USD 30 million feedmill in Vietnam's Binh Duong province and a USD 10 million agreement with Saigon International Terminals Vietnam (SITV) for dedicated grain and oilseeds warehousing facilities in Phu My. The feedmill in Binh Duong, Vietnam will have a total capacity of 260,000 metric tonnes per year and will become operational in the first half of 2017. It will bring Cargill’s total number of animal nutrition production facilities in Vietnam to 12.
|Philippine hog, poultry production up in Q3|
[19 November 2015] Despite the threat of El Niño, Philippine hog and poultry production both posted growths in Q3 this year, revealed the Philippine Statistical Authority (PSA). Hog output reached 500,110 tonnes, up 3.76% from the previous year with the PSA noting higher numbers of animals being slaughtered in key producing regions. Chicken production rose 8.77% to 393,520 tonnes during the review period, as industry expansion continues. Meanwhile, egg production was also up 9.91% year-on-year as many layer breeder and layer farms have recovered from the effects of Typhoon Ramassun which hit the country in July 2014. The typhoon caused massive damage to poultry producers in Central Luzon and Calabarzon, two of the major chicken and egg producing regions in the country.
|Sekar Bumi plans for three seafood processing plants in Indonesia|
[19 November 2015] Indonesian shrimp and fish processor and exporter Sekar Bumi will have three new processing plants in operation in 2016 and 2017 to meet growing demand for its products from the US, EU and locally. Two plants in Cikupa, Banten, will start operations in the first half of 2016. Another plant in Lamongan, East Java, will come on-stream in the second half of 2017. The company commissioned a new shrimp processing plant in Sidoarjo, East Java last month. It is able to produce 500 tonnes of frozen shrimp and 300 tonnes of processed seafood products a month. This has increased the company’s total frozen shrimp and processed seafood production capacity to 1500 tonnes and 500 tonnes a month, respectively. Harry Lukmito, President Director, revealed that it plans to launch ready-to-eat fish sausages soon.
|Cambodia, Vietnam report AI outbreaks|
[19 November 2015] Cambodia confirmed two recent outbreaks of H5N1 avian influenza (AI) in 8800 ducks, while Vietnam reported the H5N6 strain in a backyard poultry flock, according to reports posted by the World Organization for Animal Health (OIE). The outbreak in Cambodia was in Siem Reap province and in neighbouring Battambang province. In Vietnam, the outbreak was in Ca Mau province in the south.
|US shrimp entry line refusals reaches all time high|
[19 November 2015] The US Food and Drug Administration has refused a total of 377 entry lines of shrimp products between January and October this year for reasons related to banned antibiotics. According to Southern Shrimp Alliance (SSA) in USA, the refusals so far has exceeded the total number of such refusals between 2012 and 2014. “FDA’s refusals of shrimp entry line for reasons related to banned antibiotics in 2015 substantially exceeds the agency’s actions over the prior thirteen years,” SSA said. FDA has so far refused 33 shrimp imports from India until October this year, compared to a total of 27 in the previous three years combined.
|Pig Feed conference looks at enhancing performance through nutrition|
[18 November 2015] Boasting a strong technical program that addresses various themes to enhance pig performance through nutrition, Asian Agribiz’s 2016 Pig Feed Quality Conference has been set for March 31-April 1, 2016 in Bangkok, Thailand. Within the framework of ‘Science, trial data, solutions,’ this conference will be divided into four sessions that include: 1) Fine tuning piglet nutrition; 2) Feeding for superior performance; 3) Nutrition for improved health; and 4) Harnessing feed technology. Papers will detail the latest research with practical take-home messages to help pig producers and feed producers improve productivity and profit margins. Contact Omthong Tjoa or Sutasinee Lake at email@example.com for further details.
|CPF Q3 profit down 14%|
[18 November 2015] Charoen Pokphand Foods (CPF), Thailand’s largest meat and feed producer, reported a 14% drop in its Q3 net profit as falling meat prices and lower sales outweighed gains from asset sales and foreign exchange. The company said it expected its loss-making shrimp business to return to profit in 2016. Net profit in Q3 was USD 99.8 million. Meanwhile, sales were down 0.4% at USD 3.1 billion, of which 67% came from overseas operations. CPF is still looking to acquire assets overseas to offset weaker domestic demand and the impact from a weak economy, CEO Adirek Sripratak said in the statement. Mr Adirek said the company will focus on high-growth markets in Russia, Vietnam, the Philippine and India.
|Victam to promote safer additives, energy efficient machinery|
[18 November 2015] Victam Asia 2016, Southeast Asia’s largest exhibition of equipment and technology for the production and processing of animal feed, will be held at BITEC in Bangkok, Thailand, from March 29-31, 2016. It will be co-located with GRAPAS Asia 2016 and FIAAP Asia 2016. General Manager of Victam International BV, Henk van de Bunt told Asian Agribiz that visitors can expect to see new ways to produce feed and improved machinery. Visitors can also expect to meet experts in the feed industry. ”The focus will be on safer and natural additives and safe growth promoters. For machinery the focus will be on lower energy consumption.”
|India’s oilmeal exports plunge 94%|
[18 November 2015] India’s exports of oilmeal in October plunged a record 94.3% compared to the same month last year. Solvent Extractors’ Association of India in a statement said that India shipped only 13,716 tonnes of oilmeal this October. Soymeal, which forms the bulk of Indian oilmeal exports became uncompetitive in the international market as a 15% drop in output pushed up the prices. While the price of Indian soymeal in the export market is at USD 500/tonne, Argentina and Brazil are selling soymeal at USD 360-370/tonne prompting key Asian buyers to switch to South American suppliers.
|Indonesia’s CFC offers discounts to boost sales|
[18 November 2015] Indonesia’s Pioneerindo Gourmet International, the operator of California Fried Chicken (CFC) QSR, plans to launch CFC Boks and Fun Meal and offer price discounts to increase its sales in Q4. Kristanto Cendra, Finance Director, said the company targets its Q4 revenue to increase by 3-4% or around USD 28 million. In addition, during this last quarter, the company plans to open eight new outlets. In the last nine months, the company has opened 18 new outlets in western and eastern Indonesia. This year the company chose to open outlets at shopping centres, hospitals, airports and highway rest areas.
|Jollibee pursues expansion beyond Philippines |
[18 November 2015] Philippine fast food giant, Jollibee Food Corp (JFC), reported a profit of USD 26.7 million in Q3 this year, up 7.3% from the same period last year, as system wide sales rose 13.7% to USD 686.18 million. Sales in the Philippines grew 13.6%, while total sales of its foreign business rose 14.2%. In a statement, JFC CEO Ernesto Tanmantiong said sales growth during the period was higher than the first half of this year which stood at 8.9%, and that the company targets to open “at least 300 stores in 2015.” The company is pursuing international expansion. In October, it acquired a 40% stake in Smashburger, a US-based burger restaurant. Mr Tanmantiong said the company plans to expand into new markets like Malaysia, Oman, Canada, Italy and the UK.
|Monsanto Indonesia offers solutions to increase corn production|
[18 November 2015] Monsanto Indonesia has offered two solutions for the Indonesian government to increase national corn production next year. First, the company suggests the government plant biotech corn as this will increase output by 2.3 million tonnes. Second, the government should offer subsidies to corn farmers to be able to plant the biotech seed. Herry Kristanto, Corporate Engagement Leader, said: “Biotechnology presents a perfect solution to increase corn production."
Asian meat industry responds to WHO report
[17 November 2015]
The review by the World Health Organization’s (WHO) International Agency for Research on Cancer (IARC), released on October 26, said eating processed meats could cause colorectal cancer in humans, and red meat is also a likely cause of the disease. IARC defines processed meat as any meat that has been transformed through salting, curing, fermentation, smoking or other processes to enhance flavour or improve preservation. Each 50g portion of processed meat eaten daily increases the risk of colorectal cancer by 18%, the agency estimated. In this web special, Asian Agribiz presents the views of Asian producers.
Relative risk, not absolute risk
It is important to understand that this is a relative risk, not an absolute risk, cautioned Jonathan Schoenfeld, Assistant Professor at Harvard Medical School’s Department of Radiation Oncology. “The statistic doesn’t mean that eating 50g of processed meat daily causes you to have an 18% total chance of developing cancer – it means you’re 18% more likely to develop cancer relative to whatever your initial, absolute risk already was. For example, if you had a 10% risk of developing colon cancer to begin with, and you ate 50g of processed meat every day, your risk would increase by 18%.”
China processors say meat is necessary for health
China’s meat processors have angrily criticised the WHO report, saying that eating meat has always been part of human civilisation. Lin Jintao, Vice Marketing Manager at Shuanghui, China’s largest pork producer, said the report was “inhuman” and that “side effects should not be exaggerated.” Ma Xiaozhong, Head of the Jinhua Ham Industry Association said some concerned Jinhua customers had called, but nobody cancelled orders. Chinese consumers said they weren’t worried and would continue to buy processed and red meats. Several said they thought other scientific studies would come along to demonstrate the health value of eating meat, as happened with egg consumption in the US.
Regulators should test products says Malaysian producer
The WHO report linking processed meat products to cancer is not labelling sausages and bacon as unhealthy but the additives such as nitrites, preservatives and colouring that are used in the processing facility, said Dr Subramaniam Perumal of General Manager of Malaysia's Farm’s Best Food Industries. Sodium nitrite is a salt and an anti-oxidant used to cure meats such as ham, bacon and sausages. It also gives a nice red colour to the products, he said. “To modern food processing plants that are compliant to the Food Act 1983 – which states that the permissible level of nitrite in sausages is 200ppm – the health hazard issue does not arise,” he said. But there are processors, small-scale producers, which may not be following the directions set by the Ministry of Health and the Food Act.
Meat in Singapore meet stringent standards
Nitrite is used in the meat processing industry to prolong the shelf life of processed meat products, said Ronald Ang, Managing Director of Singapore-based meat retail outlet Meat the Butcher. “I think every government organisation in the world has regulations in place regarding the use of nitrites in processed food products. The Singapore government is strict with regulations on imported meats and locally processed meat. I am confident that the products sold in Singapore have high standards,” he told Asian Agribiz. He believes the issue that processed meat such as bacon, sausages and hot dogs is a cancer threat is hyped up. “Meat is important in our diet. We should take everything in moderation,” he said.
Additives could be cancer causing
Singapore’s Huber’s Butchery Executive Director Andre Huber said its raw sausages contain only minced meat, water, salt, herbs and spices that are then put into a “natural casing”. It could be the chemicals, additives, flavouring and fillers used by big commercial producers that are cancer causing, he said. “For hundreds and thousands of years, humans have processed meat to preserve them and never had such a widespread problem with cancer,” he added. Mr Huber said over 90% of the meat at its store does not contain growth hormones, and he does not think the IARC’s statement would affect sales.
Eating in moderation is important
An executive of Singapore’s Hu Zhen Long Foodstuff Trading that sells bak kwa said eating in moderation is important. “More and more people are getting cancer and eating meat is a factor, but to blame it all on barbecued meat is not quite correct. There are so many kinds of processed meat in the market, so it’s up to customers to distinguish for themselves,” said Roy Aw, owner and Director. “If it is cancer causing, I’ll be the first one to get cancer because I've literally been eating bak kwa every day, since I was young,” he added.
Processed meat scare won’t affect consumption
The report is not likely to make an impact on processed meat consumption in the Philippines, Edwin Chen, President of the Pork Producers Federation, told Asian Agribiz. Mr Chen, who is also part of the Bounty Fresh Group of Companies, added that people tend to dismiss warnings like these. “They say that if you eat [too much] of any food, there is a possibility of getting cancer. I think what is needed is to have a well-balanced diet and to take food and drink in moderation.” Another industry official agreed, telling Asian Agribiz that “in everything we do there is a risk involved, and eating too much of anything could understandably lead to health problems."
Nampa takes WHO report as turning point
Indonesia’s National Meat Processors Association (Nampa) has chosen not to react to the WHO report. Haniwar Syarif, Nampa Executive Director, told Asian Agribiz that the report is a turning point for the industry to actively promote and educate consumers that processed meat products are safe. “From the report, I learned two things – risk and moderation. If we talk about risk, beef consumption in Indonesia is only about 2 kg/capita and consumption of the processed product is only 10% of beef consumption. In this case, Indonesia needs to increase its animal protein consumption and processed meat products are a source,” Mr Haniwar said. “The second thing is moderation.”
No impact in Indian market
Since the meat consumed in India is predominantly fresh warm meat, the WHO report will have less or no impact in India. “In India, only around 1% of meat is processed compared to around 70% in other world markets,” Dr Robinson Abraham, Head of Department of Livestock Products Technology told Asian Agribiz. According to him, the predominance of fresh warm meat can be considered a blessing in disguise as there are no adverse impacts on sale of meat locally.
Processed meat sale in India is steady
Processed meat products are yet to gain market penetration in around 70% of India as the market is still maturing, Hari Vasudevan, General Manager (Sales) at Kannan Retail Group told Asian Agribiz. “However, in cities where processed meat products have gained acceptance there is no impact on sale,” he said. According to him, the current scenario proves that the WHO report is not taken seriously by the consumers. Stakeholders in the domestic red meat sector said that there is no notable impact in sale of red meat. ed.
Indian buffalo meat exports not likely to be affected
Buffalo meat exports from India worth USD 4.5 billion might not be affected since red meat is a staple in many countries. However, experts stated that the recent WHO report would prompt people to continue to move towards healthier eating. “It doesn’t mean that there will be any direct and immediate repercussion in the short term,” Priya Sud, Partner of Al-Noor Exports in New Delhi said. India is the world’s top exporter of buffalo meat and is expected to maintain its leading position in 2016, according to a USDA report.
Production is the problem not processing says Professor
Although meat consumption in India is on the rise, it is nowhere close to what the West consumes. The proportion of processed meat in India is small compared to most countries. According to Prof Ramanan Laxminarayan, Vice President for Research and Policy at the Public Health Foundation of India, the biggest health threat to the average Indian is likely to come from meat production rather than consumption of processed or red meat. "Meat production consumes vast quantities of water compared to other foods. The second impact is in terms of climate change. Third, meat impacts land availability. Finally, meat production in India is increasingly using more antibiotics.”
WHO to conduct follow-up study
A WHO official on November 10 confirmed that the organisation will stage a follow-up study to this controversial report. The official said that another panel will be looking at the results in the context of a healthy diet. It would lead to suggestions on the public of an average intake of red and processed meat. He continued that it was being established partly following criticisms of the WHO that it released a statement on the conclusions of an IARC monograph evaluating the potential carcinogenicity of the consumption of read and processed meat, without publishing the full background documentation.
|Tyson plans expanded brand promotion in China|
[16 November 2015] Tyson Food Inc is planning a new emphasis on e-commerce retail channels and will spend at least USD 16 million promoting its brand in China over the next year, according to China Daily. “There is a whole set of consumers doing their shopping on line,” the newspaper quoted Bill Mayer, Vice-president and General Manager of Tyson China, as saying. The company plans to strengthen cooperation with Yihaodian.com and other leading online sites. Tyson introduced 22 new frozen food items specially designed for the Chinese customer last summer, and Mayer said demand is growing for marinated and ready-to-eat convenience items.
|Philippines SMPFCI's revenue up 3%|
[16 November 2015] Philippine food and beverage leader San Miguel Pure Foods Co Inc (SMPFCI) posted a 3% growth in its consolidated revenues in the first three quarters of 2015, a company disclosure said. For January-September this year, its revenues hit USD 1.63 billion. SMPFCI attributed the growth to strong revenues in the feeds and branded value-added business, which offset weak sales in its poultry, meats and flour businesses. The company’s agro-industrial division, which comprise the feeds, poultry and meats businesses, posted combined revenues of USD 1.12 billion or about 69% of the total. SMPFCI said it expects to 'sustain its growth momentum' over the rest of the year.
|CJ’s processed foods & bio products record strong sales|
[16 November 2015] South Korea-based CJ CheilJedang reported a group operating profit of around USD 198 million for the July-September quarter, up 33% from the year-earlier period, on healthy sales of core processed foods and bio products. Its net profit soared 120% to USD 43.4 million, and sales grew 13% to USD 2.9 billion. Its Hetbahn packaged-rice line and Bibigo processed foods moved briskly. Strong sales of the amino acid methionine for livestock led growth in the bioscience business.
|China records four H7N9 infections for the season |
[16 November 2015] China has acknowledged two more H7N9 avian flu infections, both of which occurred in October, increasing the total in the early phase of what appears to be a fourth wave of infections to four. The cases, reported by China's National Health and Family Commission, were noted in a statement from Hong Kong's Centre for Health Protection (CHP).The agency said the cases were in Zhejiang province. A Hong Kong health department spokesman said in the statement that, based on earlier seasonal patterns, it's likely that avian influenza activity will increase in the coming winter months, requiring increased vigilance.
|Indonesia’s agrifood consumption projected to quadruple|
[16 November 2015] The real value of agrifood consumption in Indonesia is projected to quadruple between 2009 and 2050, on the back of expected sustained economic growth, population increase and continued urbanization, according to a report of the Australian Bureau of Agricultural and Resource Economics and Science (Abares). Between 2009 and 2050, the real value of beef consumption is projected to rise more than 14 times, and dairy tenfold. “In 2050, imports of beef are projected to reach USD 26 billion, compared with USD 500 million in 2009. Imports of dairy products are projected to be USD 7 billion in 2050, compared with USD 400 million in 2009,” said Karen Schneider, Abares Executive Director.
|MSD to acquire Harrisvaccines|
[16 November 2015] MSD Animal Health has signed an agreement to acquire Harrisvaccines Inc, a privately-held company that develops manufactures and sells vaccines for food production and companion animals. Harrisvaccines’ owns a unique RNA Particle technology as well as a versatile production platform that targets a wide range of viruses and bacteria. The transaction is expected to be finalised before the end of 2015.
|Indonesia has special ship to transport cattle|
[16 November 2015] Indonesia’s Ministry of Transportation recently released KM Camara Nusantara 1, a special ship to transport cattle from East Nusa Tenggara to Tanjung Perak seaport in Surabaya, East Java. Ignasius Jonan, Minister of Transportation, said: “It is the first livestock ship and was designed according to animal welfare standards. The ship has the capacity to transfer 500 cattle in one trip.” Next year the ministry plans to build six livestock ships.
|German scales maker opens office in Singapore|
[13 November 2015] Bizerba has opened a sales office in Singapore, signalling its commitment to the Asian market, and its focus in becoming a major player in the region. The company also has an office in Shanghai, China. “This office builds the platform for our next growth period, which is in Asia,” CEO Andreas Wilhelm Kraut told Asian Agribiz. “We have to see how we can do things differently. We have to learn the local habits, eating trends, ways of treating food, and combine this with our experience in other locations.”
|Philippine chicken imports up 16.8% in first nine months|
[13 November 2015] Data from the Philippine Department of Agriculture showed that Philippine chicken imports rose to over 144,898 tonnes, up 16.8% from the previous year. More than 82% of the total was made up of mechanically deboned meat (MDM), while leg quarters accounted for 15.5%. The rest was offal, rinds and fats, which along with MDM are used by the meat processing industry. The US continues to be the leading supplier of the chicken to the country, with a 37.9% share, followed by Brazil with 19.5% and the Netherlands with 19.2%.
|Shanghai sow seminar addresses antibiotics reduction |
[13 November 2015] The Sixth Chinese Sow Nutrition and Management Seminar kicked off yesterday in Shanghai with presentations on ways to reduce the use of antibiotics and other additives while maintaining efficiency. Antibiotic use has become a major issue for the industry, and hundreds of senior managers from major pig companies throughout China gathered for the two-day seminar. Thursday’s speakers included Dr Jan Merks of the Institute for Pig Genetics, who discussed ways of using breeding to reduce the need for antibiotics, and Jan Cortenbach, Chief Technical Officer for De Heus-Wellhope, who spoke on feed alternatives to pig antibiotics. The gathering was sponsored by China’s National Feed Engineering Technology Research Centre.
|Indonesia’s beef consumption to reach 2.56 kg/capita|
[13 November 2015] The Indonesian Beef Cattle Feedlotters Association (Apfindo) says the country’s beef consumption will be 2.56 kg/capita for 2015 and total beef demand may reach 653,000 tonnes, or 3.6 million heads of cattle. Local breeders are estimated to produce 406,000 tonnes or 2.3 million heads of cattle, so there will be a shortfall of 1.3 million cattle. Djoni Liano, Apfindo Executive Director said private companies need support and incentives to increase their business scale so meet growing demand.
|China's first shipment of live Aussie cattle arrive by air|
[13 November 2015] The first shipment of live beef cattle from Australia to China was flown in, but future shipments should not expect the same treatment. After years of negotiation, the two countries signed a feeder and cattle health protocol in September. Chongqing Hondo Food Development Co, imported 150 Angus steers from Australia in late October. Hondo is located in southwestern China, where it is hard to source high quality cattle, and is planning to take advantage of this opportunity. Optimists say the live trade could reach 1 million head a year.
|Investment in Indonesia’s fishery sector to reach USD7b|
[13 November 2015] Investment in the fishery sector in Indonesia is expected to reach USD 7 billion within the next five years. Susi Pudjiastuti, Minister of Fisheries and Marine Affairs, said to achieve this target the sector should have an economic growth of 7% or more so potential investors will be interested to invest. “To build a strong and sustainable fishery industry, we need new investments, focused on developing regions outside Java, Sumatera, Sulawesi and Bali,” she said.
|Oversupply in Philippines chicken meat market|
[12 November 2015] The high import volume of chicken in the Philippines has given rise to the misconception that there is not enough chicken in the local market. Philippine chicken imports rose to over 144,898 tonnes, up 16.8% from the previous year. This has encouraged new players in the local industry. However, Elias Jose Inciong, President of the United Broiler Raisers Association of the Philippines, told Asian Agribiz that this has led to oversupply, since the existing industry can already supply the chicken meat needs of the market.
|Kerala’s meat market worth USD 1.5 billion|
[12 November 2015] Despite constraints like lack of space for rearing cattle, Kerala state in India has become the leading meat consuming state in the country. Estimates from the State Animal Husbandry Department reveals that the value of meat consumed is about USD 1.5 million/year. “Beef is the most popular item in Kerala followed by chicken and pork and the consumption figure doesn’t include unaccounted sale of meat in rural areas,” the department stated. While large animals like cattle are transported from neighbouring states to Kerala for slaughtering, pigs are domestically reared and slaughtered.
|Indonesia’s food tech firm raises USD8m for growth|
[12 November 2015] Jakarta-based food discovery app Qraved has announced USD 8 million Series B financing co-led by Richmond Global Ventures and Gobi Partners, followed by GWC, Convergence Ventures, 500 Startups, Toivo Annus, and M&Y Partners. The company plans to use the funding to develop features in its core mobile and web app as well as ramp up marketing and promotional efforts. “My vision is for Qraved to become the exclusive platform for Indonesians to connect with food,” said Steven Kim, Qraved CEO. Since late 2014, Qraved has rapidly gained traction with more than 1 million monthly users in six months.
MSD Animal Health High Quality Pork Congress Chiang Mai, Thailand
On-site report by CRAIGE ALLAN
[12 November 2015]
The High Quality Pork Congress on November 9 and 10, organised by MSD Animal Health, bought together a wide range of local and international speakers and highlighted the essential steps to ensure high quality pork production. It served as a platform for the exchange of information among key producers and other industry stakeholders from around Asia. The first day of the Congress focused on consumers – choices, needs and market trends. The second day of the Congress focused on reproduction and the respiratory diseases, porcine reproductive and respiratory syndrome (PRRS) and porcine circovirus type 2 (PCV2).
MSD Animal Health committed to providing added-value
Pork producers need much more than to just control diseases said Narcisco Bento, Head of Global Swine Business Unit, MSD Animal Health. This is why it is important that MSD Animal Health brings new things that help our industry cope with change and consumer trends such as reducing antibiotic use and increasing animal welfare and food safety. If we want to be part of the future we have to work together to produce what the consumer wants. Mr Bento concluded that the company wants to be so much more than just a supplier, we want to be a trusted partner.
Global trends in the animal protein industry
Gordon Butland, G&S Agriconsultants gave a financial perspective of the global animal protein sector. The biggest problem the animal protein industry faces in Asia is that our price of corn is usually about double that of the US, he commented. He observed that while we often see that we need to produce 70% more food by 2050 to feed 9 million people, it is only 1.54% CAGR. "If your company is going to grow then you need to move from a processing platform to a sales and marketing platform, value added products and branding, and also consider acquisitions.
Philippines swine industry update
According to Dr Dante J. Palabrica, Director Pig and Poultry Operations, Universal Robina Corporation (URC), who manages their fully-integrated 25,000 sow operation, the Philippines is dominated by backyard farms that raise about 64% of pigs this year. URC has developed an effective nationwide distribution chain and sales network bypassing the middlemen. It sells its branded food products primarily to supermarkets, as well as directly to wholesalers, convenience stores, large scale trading companies and regional distributors.
Market access and consumer choice
Consumers are kings, so we need to think like consumers to understand their expectations, stressed Dr Rodrigo Santibanez, Global Market Access Lead, MSD Animal Health. When consumer’s make a choice they usually don’t factor in science, therefore perceptions are taking over. Dr Santibanez, admitted that the science is difficult to explain, but as an industry we are not putting enough effort into consumer perception. Let’s be part of the message and manage consumer’s expectations and influence their perceptions he concluded.
How does MSD Animal Health contribute to consumer market trends
John Walters, Regional Swine Marketing Manager, MSD Animal Health detailed market access initiatives to communicate with customers and consumers on how its products can help meet marketplace demands as well as create reasonable expectations for food production animals. He gave the example that the company believes that antibiotics to treat sick animals are needed, but the best approach is to treat disease by vaccination. Furthermore, MSD Animal Health’s IDAL (IntraDermal Application of Liquids) needle-free application for specific vaccines, prevents the food safety issue of broken needles in loins, as well as being animal and user friendly.
Economics of reproduction in the sow herd
Dr Derald Holtkamp, Associate Professor in the Department of Veterinary Diagnostics and Production Animal Medicine, Iowa State University asked the question, what is disease costing? The vet’s challenge is that the cost of interventions is known with a high certainty, while the benefits are variable and unpredictable. In the breeding herd about 95% of the costs are fixed or vary with the number of sows, implying that only around 5% of the costs vary by the number of pigs born alive or weaned. He emphasised that more pigs from the same number of sows means more revenue for very little added cost.
Maximising reproductive outcomes
A good mating starts in the farrowing room commented Miquel Collell, Global Technical Director Swine, MSD Animal Health. Sows must be weaned in optimum body condition score (score 3), as thin weaned sows tend to have lower ovulation, take longer to get into heat, require more repeated services and produce less piglets born. He suggested not to mate sows below score 2.5. Mr Collell introduced ReproPig Management System – a web-based platform to audit, evaluate economics and provide the training needed for farms. ReproPig identifies key areas of optimization and maximizes reproductive performances with the ReproPig product portfolio.
Practical use of reproductive hormones
Dr John Carr, Carrs Consulting emphasised two take-home messages. Firstly, get your gilt management right. Secondly, you should only cull a sow when you have a pregnant gilt available. This will decrease pigs/sow/year but will increase profits. Traditionally in Asia, sows and gilts are mated three times, but Dr Carr suggested a change in philosophy by moving to a single service. Reproduction (farrowing rate and litter size) is as good as multiple breeding, but requires less boars, allowing producers to increase selection pressure on boars and move genetic improvement into the finishing herd to select boars for FCR, carcass confirmation and meat quality.
Economics of PRRS infections
Dr Derald Holtkamp presented his 2011 assessment of the economic impact of PRRS in the US. Productivity losses were estimated at USD 664 million with a further USD 140 million for animal health costs and USD337 million for biosecurity and other related costs. The value of weaning a PRRS-negative pig was USD 2.61, even if it gets infected during the grow-out period, increasing to USD 4.90 if the piglet was kept negative all the way to market. US producers have favoured control of PRRS over elimination, particularly in pig-dense areas, he suggested PRRS elimination.
PRRS evolution in Asia
In the opinion of Dr Frederick Leung, Professor in Molecular Biotechnology, Hong Kong University, you cannot eliminate a virus globally, but it is important to keep pace with virus dynamics using phylogenetic tools in order to gain full knowledge regarding its evolution. Know thy enemies he stressed. PRRS is a rapidly-evolving virus. Viruses evolve by drift (by mutation) and shift (by recombination), which is why vaccines need to be updated. PRRS vaccines work if you use the correct vaccine.
Benefits of intradermal & needle free vaccination
According to Dr Rika Jolie, Global Technical Director - ResPig for MSD Animal Health, vaccination is effective and is the preferred method in the prevention/control of PRRS and PCV2. Traditionally, vaccines for both pathogens have been administered intramuscularly, however, intradermal vaccination is now being used overseas. Dr Jolie said benefits of intradermal vaccination include less stress and pain for pigs, improved welfare, no tissue damage and reduced transmission of diseases. Other advantages include a small injection volume (0.2mL), no needle-stick injuries for operators, and less maternally-derived antibody interference. Intradermal vaccination via the IDAL needle free injector is now used for PRRS control in Europe, and has become available in Thailand, the Philippines and other Asian countries.
|Thailand wants Japan to raise pork import quota|
[11 November 2015] A Thai trade delegation that will visit Japan at the end of November will urge Japan to raise its import quotas for cooked pork. Sirinart Chaimun, director-general of the Trade Negotiations Department, said Thailand would ask Japan to raise imports from the current 1200 tonnes to 12,000 tonnes annually. The Bangkok Post report that Thailand now ships 6400 tonnes annually and the non-quota exports incur a tax of 20%.
|India maintains high corn price|
[11 November 2015] The price of India corn is expected to remain high as demand remains buoyant, even as arrivals increase later this month. For the week ending November 6, the maize prices on NCDEX were up for all contracts. In the US however, prices have come down as harvest is fast paced and the export is a little slow. "If one looks at an average world price which is averaging at USD 173/MT on FOB basis, corn could be delivered to the Southeast Asia region at close to USD 209/MT. Indian corn on the side will be delivered to the Southeast Asia region at USD 265/MT, 26% higher than the world average price," said Amit Sachdev, USGC Representative for India, Bangladesh and Sri Lanka.
Asian Agribiz regional dairy update
[11 November 2015]
CEO says Fonterra committed to China strategy
Fonterra’s chief executive says the company will stay the course in China despite slower growth and lower prices, according to China Daily. CEO Theo Spierings said food services and consumer goods will be new growth areas for the company in China, in addition to boosting its farming business in cooperation with the local dairy industry. Mr Spierings said Fonterra also wants to expand online sales in China. Fonterra opened its second Chinese dairy application centre recently in Guangzhou, the capital of Guangdong Province.
Philippines to remain reliant on imported dairy products
Philippine milk imports will likely reach 1.8 million tonnes this year, up 3.4% from 2014, a report by the USDA said. In its latest Global Agricultural Information Network (GAIN) report, the USDA said the increase is “due to rapid expansion of the food processing industry and large global dairy supplies in 2015.” New Zealand, the US and Australia are the top three suppliers, accounting for 30%, 24% and 7%, respectively, of the country’s total imports. The report noted that the Philippines produces less than 1% of its annual requirement, although government data show that dairy production is on the rise. This year, the Philippine National Dairy Authority projects local production will go up to 21,000 tonnes.
Pengxin disappointed twice in NZ dairy bids
Shanghai Pengxin Group has withdrawn its bid for a New Zealand dairy company, while at the same time appealing to the government’s decision to block the acquisition of another. In a posting on its website, Pengxin said its subsidiary Dakang New Zealand withdrew a USD 29 million bid for 3,300 hectares of land and 3,900 milking cows owned by Pinny Farms because it was “not confident of a favourable outcome” from a government review. In the second case, the group is appealing the government’s decision to deny Pengxin’s bid to buy Lochinver Farms, a 13,800-hectare sheep and cattle operation, which Pengxin was planning to partially convert to dairy use.
|India imports non GMO soymeal |
[09 November 2015] India, once a major exporter of soymeal, has entered into contracts to import soymeal as international prices have dropped sharply below domestic rates. Indian soymeal is selling at over USD 531/tonne locally. “Even though the country has a 15% tax on soymeal imports, imported soymeal is still cheaper at USD 478, delivered on the ports,” traders said. Most imports are non-GMO from China as India still has restrictions on GMO products.
|QL counts on growing Asian food demand to drive its expansion|
[09 November 2015] QL Resource Bhd plans to increase its capital expenditure over the next two years as it bets on Asian food demand to drive its expansion. The company targets to spend about USD 58 million in the year ending March 2016, USD 70 million in 2017 and USD 81 in 2018, The Edge quoted founder and Managing Director Chia Song Kun as saying. He said the funds will be used to expand its poultry farms, fishing boats and factories. “We have been a fast-growing company. We still have a lot of capital expenditure,” he said. QL has grown in Vietnam and Indonesia in recent years, taking advantage of rising incomes. Earnings from overseas operations may account for a fifth of the company’s profits in three to five years, compared with 10% now, he said.
|Cargill opens new chick facility in China|
[09 November 2015] Cargill has opened a new hatching facility at its integrated chicken production and processing complex in central China’s Anhui Province. The new facility, located in Bantazhen or Half Tower Village, about 70 km north of Nanjing, is equipped with 10 HatchBrood units that provide temperature control, plenty of space and access to light, heat and water. Cargill’s complex has the capacity to produce 25 million chicks per year, with eventual expansion planned to 65 million chicks per year.
|Vietnam outlines food safety goals|
[09 November 2015] Vietnam's Ministry of Agriculture and Rural Development (Mard) said it plans to work with relevant agencies to examine and ensure food safety. Minister Cao Duc Phat urged localities to form safe food supply chains in cities like Hanoi and Ho Chi Minh City. Mard is implementing a food safety and hygiene campaign until February 2016 with the main aim of preventing the use of banned agents in livestock farming. Inspections during January-September showed that the use of banned substances was on the rise. Some 1.01% of the seafood samples taken in the period were found to contain higher chemical and antibiotic residues than permissible levels. Some 7.6% of the meat samples had antibiotics content that was higher than allowed.
|Burger King to expand operations in South India|
[09 November 2015] American QSR chain Burger King, aims at opening more outlets in South India. The restaurant chain recently opened its 32nd outlet in Hyderabad and is in the process of opening three more outlets in the city. The only other Burger King outlet in South India is in Bangalore. “We want to expand our footprint across the southern region of India and have plans to enter Chennai shortly,” Rajeev Varman, Chief Executive Officer of Burger King India said.
|Malaysia's Lay Hong closer to sealing foreign deals|
[06 November 2015] Malaysia’s Lay Hong Bhd said its planned joint venture projects overseas may be sealed in less than two months. Lay Hong said this in a written reply to the local stock exchange’s query on unusual market activity. Its share prices jumped 20% to USD 1.53 early this week. “Lay Hong is in the midst of discussions and negotiations with two foreign groups on taking a strategic investment stake in the company and also a possible JV to invest in integrated layer farming and broiler processing locally and overseas. The company expects to conclude and execute definitive agreements in less than two months,” the company said.
|Indonesia to lead Asian shrimp recovery|
[06 November 2015] Global farmed shrimp production is expected to fully recover from EMS and continue to grow in the next few years, according to the annual survey conducted by the Global Aquaculture Alliance (GAA). Within Asia, GAA said Indonesia will experience the most dramatic growth. Indonesian shrimp production is expected to shoot up and continue growing from slightly above 300,000 tonnes in 2013 to about 800,000 tonnes in 2017. Similar patterns are expected in India, Thailand, Bangladesh, Malaysia, the Philippines and Taiwan albeit on a smaller scale, with more ups and downs expected in China and Vietnam.
|DBS raises Japfa target price to 90 cents|
[06 November 2015] DBS Vickers has raised its target price on Japfa Ltd to 90 cents from 46 cents following better than expected Q3 earnings and an improving outlook. Japfa reported Q3 2015 core earnings of USD 14.1 million, which beat expectations of around USD 7.4-10.1 million. This brings its nine-months 2015 core earnings to USD 30 million. The growth was driven by better performance of its Japfa Comfeed division. The company was also able to regain pricing power in its other businesses like DOC in Indonesia as well as raw milk prices in China. Ben Santoso, DBS Analyst, said: “Japfa intends to double its dairy farm production capacity in China by constructing another five farm hubs in Inner Mongolia.”
|Norway hopes to double seafood exports to India|
[06 November 2015] Norway, the world’s second largest seafood exporting country is expected to leverage its export market by doubling seafood exports to India. “We want to achieve this in the next few years and have asked the Indian government to drop the 30% import duty on seafood imports,” said Terje E Martinussen, Managing Director of Norwegian Seafood Council during his recent visit to India. Norway exported seafood worth USD 4 million to India in 2014.
|South Korea resumes import of US poultry|
[06 November 2015] South Korea will resume importing chickens from the US this month as no new outbreaks of bird flu have been reported in recent months, the government said Wednesday. Yonhap News reported that the farm ministry has revised regions subject to restrictions and took both the US and Canada off its import ban list. The country started to ban imports of all meats from chickens and ducks, as well as other birds, after the US and Canada reported outbreaks of the virulent H5N8 and H5N2 strains of avian influenza last year. Last year, South Korea imported 66,780 tons of chicken meat from the US.
|El Toro opens online beef sales in Hong Kong|
[06 November 2015] Argentine online butchery El Toro Limited announced recently that it has opened an office in Hong Kong, the first in the city to offer door-to-door delivery of Argentine premium chilled beef from grass fed cattle. Hernan Castro, Co-founder, said: "We're bringing the finest beef from Argentina to meet the demand from discerning Hong Kong customers.” Mercedes Landa, another Co-founder, added: “We will use the Hong Kong office as our headquarters in Asia. We are also studying the possibility of selling our high quality Argentine beef to local restaurants.” El Toro offers prime beef from cattle raised in La Pampa, one of the best known cattle producing regions in South America, where the animals feed entirely on natural grass.