TOP STORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29 January 2015
|Positive Q1 expected for China's pig sector|
[28 January 2014] Turbulence is expected to remain with uncertainty in the global pig market in 2015 due to the possible reemergence of PEDv, the developments regarding African swine fever (ASF), the Russian ban and exchange rate developments across the globe, said Rabobank in its Pork Quarterly Q1 report. Driven by production growth after PEDv, Rabobank expects a further cooling down of markets and resulting price pressure in Q1 2015," said Albert Vernooij, Animal Protein analyst, Rabobank. China however, alongside Brazil is expected to experience a positive Q1. In China, the declining sow herd will only be partly compensated by increasing sow productivity, resulting in pressured production which will support prices.
|India to curb antibiotic use in poultry, animal feed|
[28 January 2014] The Food Safety and Standards Authority of India (FSSAI), the apex government body handling food related issues in India has issued a draft notification prohibiting the use of antibiotics as growth promoters in the poultry and animal husbandry sectors. “We have directed provincial governments to stop use of hormones as growth promoters in poultry and meat as there are known adverse effects on human and animal life,” according to an official in FSSAI. The food regulator has invited comments from stakeholders in this regard and a final notification or order will be passed accordingly.
|Big Dutchman’s buys Proline|
[28 January 2014] The Big Dutchman Group from Germany has acquired a controlling interest in Canada-based Proline Group to strengthen its position in Asia. With about 50 employees globally, Proline is a leading supplier of production technologies for the pig, poultry, and grain handling industries in Asia and Oceania. Its brands are PigPro, ChickPro and GrainPro. Proline has been present in Asia since 1991. Its regional focus, among others, lies in countries such as the Philippines, Vietnam, Australia and China.
Asian Pork Magazine, February 2014 – a sneak peek
[29 January 2014]
Thai pig industry opts for quality meat and exports
Thai pig producers realise the potential and opportunities for the sector, especially now that Russia has opened its market for Thai pork. However, challenges especially on safety issues linger. NITSARA THONGRUNG spoke with the Thai Swine Raisers Association and the Swine Producers and Processors for Exporting Association about the current situation in the Thai pig industry, its issues and concerns and the long term goal.
GreenFeed promotes good swine genetics
Stiff competition in Vietnam’s feedmilling sector has caused feedmillers to take on a broader strategy in their businesses. Foreign and local feedmillers, like GreenFeed Vietnam Corporation, have picked out genetics as the weakest link in the value chain and are ready to offer solutions, RACHAEL PHILIP writes.
Yurun boards the e-commerce train
Retail e-commerce is exploding in China. More and more people are shopping online, buying a bigger variety of products. Now young, urban, internet-savvy, social media-wired consumers are even demanding perishable food like pork meat and other meat products delivered to their doorsteps. RICH HERZFELDER writes one Chinese company is blazing the trail.
FeedPro boosts backyard pig raising
Backyard pig farmers remain the backbone of the Philippine pig industry, but many have been forced out of the business due to high production costs and inefficiencies. ISA Q TAN writes that one company is on a mission to help backyard raisers remain afloat and profitable even with the threat of a more competitive market.
Feed processing – unlocking the nutrient potential – part 2
There still exists a considerable gap between the gross-nutrient content of feedstuffs and that which can be captured by the pig writes TONY EDWARDS. In this last of a two-part series he examines the impact of particle size.
Using biomarkers to detect mycotoxin exposure in swine
For more than 30 years, scientists have worked on the development of so-called ‘biomarkers’ to link health effects and exposure to mycotoxin contamination by measuring one crucial parameter in the blood, gall or other physiological samples. CHRISTINA SCHWAB discusses what are the potentials and pitfalls for mycotoxin biomarkers.
|Indonesia bans live GGP, GP imports |
[27 January 2014] with the rise in avian influenza cases, specifically H5N8 in the US, the Netherland, Germany and Australia, Indonesia’s Ministry of Agriculture has banned the import of live GGP and GP from those countries. However imports in the form of hatching eggs are still allowed. “The measure is to prevent AI virus transfer through live DOC importation,” said Syukur Iwantoro, Director General of Livestock and Animal Health. Mr Syukur said at the moment only two GGP/GP exporting countries are still free from H5N8 namely France and New Zealand. However, he believes that the ban will not affect the number of GGP/GP imports from the US that accounts for 92% of the country’s total GGP/GP import since the bird strains are different.
|Four-day ban on slaughter in Taiwan|
[27 January 2014] With 414 farms confirmed infected with various strains of avian flu, including the new H5N2, as well as H5N8 and H5N3, Taiwan began a four-day ban on the killing of chickens, ducks and geese at slaughterhouses across the island, last Saturday until Wednesday . The agriculture council said that a total of 605,308 birds have been culled at 276 affected farms. Chen Bao-ji, head of the agriculture council, said the ban will last until Wednesday noon, during which slaughterhouses will be cleaned and disinfected.
|Brazil’s WTO move raises fears in Indonesia |
[27 January 2014] Brazil is ramping up efforts at the World Trade Organisation (WTO) to resolve a long-standing dispute with Indonesia, which has placed restrictions on the South American country’s chicken exports. Commenting on the news, Don P Utoyo, President of the Indonesian Poultry Society Federation, said the news has raised fears among industry players. “If imports of Brazilian chicken are allowed, the Indonesian poultry industry, from the upstream to the downstream, will suffer losses,” said Mr Don. He calculated that the total losses – from breeding, commercial farming, feed milling, veterinary drugs and processing – can potentially reach USD 30 billion.
|Burger King introduces double pork burger to Beijing|
[27 January 2014] Pork makes up almost two-thirds of the Chinese meat diet, but Western QSRs have not had much success putting the most popular meat onto their menus. Now Burger King is making a new effort to crack the code with its double pork burger, two grilled pork patties on a hamburger bun. The item is part of Burger King’s ‘King Value’ menu, introduced to Beijing outlets late last year. With China’s beef price at an all-time high, the pork burger also provides a lower price point for customers. Burger King’s Beijing outlets recently raised the price of its basic all-beef Whopper to USD 3.60, but for the same price you can get a set meal of double pork burger, fries and a Pepsi. A standalone pork burger is just USD 1.57.
|Vietnam seafood exports up in 2014 |
[27 January 2014] Vietnam’s seafood exports surged in 2014 with an export turnover of USD 7.9 billion, the highest in three years. This exceeded the target of the Vietnam Association of Seafood Exporters and Producers (Vasep) by USD 920 million and was an 18.4% increase on 2013. According to Asia Briefing Ltd, by end 2014, orders to its key markets slowed down, however, an increase in exports to Asean nations and China made up the shortfall. “It is worthwhile to note that the main reasons for growth were external rather than because of quality. This could prevent growth from continuing in 2015,” said the report. For 2015, Vasep has set a target of USD8 billion. “The biggest challenges will be due to the new safety standards that are expected to be implemented later this year,” said the report.
|Brunei’s Golden Corp to boost shrimp output by 2017|
[27 January 2014] Brunei-based seafood processing firm Golden Corp processes more than 60 tonnes of shrimp per month and exports them to China, Hong Kong, Taiwan, South Korea, Japan and the US. The company said it has acquired 2 million sq km of land in the Tutong district to breed organic blue shrimps and plans to increase its annual production from 1000 tonnes to 5000 tonnes by 2017. Golden Corp’s MD Richard Chuang Hsi Shan said: “There are four zones at the shrimp farm and we are hoping to get Zone A fully operational by early 2015.”
|Kambing Burja to improve pedigree recording |
[26 January 2014] With helps from the Animal Husbandry Agency of East Java province, Indonesia, Kambing Burja Farm located in Malang plans to improve its pedigree-recording program. M Alexander, owner of the Boer goat farm, told Asian Agribiz: “This is in response to demand from Malaysia. They need a supply of Boer goats for breeding, but they require a good pedigree recording to determine the quality of the bucks and does.” At the moment Mr Alexander raises more than 500 heads of Boer goat with parent stock imported from Australia. Every month he mixes around 32 tonnes of feed that consist of forage, concentrates, and premixes & feed additives from Trouw Nutrition.
|CPF shrimp unit’s recovery slower than expected|
[26 January 2014] Thai agribusiness giant Charoen Pokphand Foods (CPF) is set to report reduced losses for its shrimp unit in Q4 2014, but still above the level expected by analysts. The unit will post a USD 27.6 million operating loss for Q4 2014, shallower by 22% year-on-year, but seasonally deeper by 99% quarter-on-quarter, according to a report from brokerage Bualuang Securities. “The unit's recovery is proving weaker than we had earlier anticipated,” the brokerage noted. Bualuang Securities expects stronger numbers for the unit, from Q2 2015 through H2 2015. CPF’s shrimp operating loss should ease to USD 30.7 million for 2015, an improvement on USD 107.4 million for 2014. Bualuang Securities is basing this recovery on a greater industry-wide shrimp output of 280,000-300,000 tonnes, compared with 200,000-220,000 tonnes in 2014.
|Promising future for Indonesian poultry firms|
[26 January 2014] Indonesian poultry companies will enjoy a more favourable business environment this year with lower commodity prices and the lifting of Japan’s ban on processed chicken imports from Indonesia, according to analysts. Michael W. Setjoadi, Bahana Securities Analyst, said that lower corn and soybean prices would help offset the adverse impact of rupiah depreciation. US soybeans declined 7.3% in two weeks, the highest since July 2014, while corn shed more than 4% over the same period. In addition to the drop in commodity prices, the country’s poultry industry would likely also benefit from stabilised prices of DOC and broilers, according to UOB Kay Hian Analyst Franky Kumendong. The DOC price currently stands at around USD 0.24/chick, far better than the price in October 2014 of around USD 0.08-0.12. The average broiler price has also surged to around USD 1.36/kg from around USD 1/kg in October 2014.
Asian Agribiz Dairy update
[26 January 2015]
Amul to invest USD 814 million in processing plants
Indian dairy products giant Amul is planning to invest USD 814 million to set up around 10 milk processing plants in the next financial year in order to achieve a revenue target of about USD 8 billion by 2020. Revealing this at the India Food Forum 2015, Managing Director of Amul R S Sodhi said this includes two plants in Delhi, three in Uttar Pradesh, one each in Kolkata and Maharashtra and the rest in Gujarat. “Amul is on track to achieve annual revenue of USD 3 billion this year,” Mr Sodhi said. Amul, the dairy cooperative based in Anand district of Gujarat, formed in 1946, is a brand managed by Gujarat Co-operative Milk Marketing Federation.
Malaysia’s F&N to invest USD 9.12m in Thailand
Fraser & Neave Holdings Bhd (F&N) has set aside USD 9.12 million in capital expenditure to support the double-digit revenue growth of its Thai dairy division. Lim Yew Hoe, Chief Executive Officer, said the amount would be used to expand the company’s production capacity in Thailand by adding one tall can packaging line for evaporated milk. “We want to take advantage of the growth in the evaporated milk segment in Thailand. The expansion will support our double-digit growth from Thailand,” he told reporters after the company’s annual general meeting (AGM) in Kuala Lumpur. The capex is in addition to the USD 13.88 million allocated for maintenance of all its other operations in Malaysia and Thailand.
ITC to venture into dairy, fruit juices sectors
Indian Tobacco Company Limited (ITC) is gearing up to venture into the branded dairy and fruit juice sectors over the next few months. The company is setting up its first dairy plant in Munger district in Bihar state to manufacture value-added milk products. Chitranjan Dar, CEO of ITC Foods, said the company is developing a back-end structure to ensure an increase in milk yields and milk-processing capacity. ITC plans to invest USD 142 million in 2015, and plans to position the dairy products and fruit beverages on the health platform.
|Monsanto, Cargill to develop corn farming in Indonesia|
[23 January 2014] Under the umbrella of PISAgro, a cooperation platform between the government and private sector in Indonesia on food security, Monsanto Indonesia, Cargill Indonesia and Bank Rakyat Indonesia (BRI) have established a pilot corn farming project in Mojokerto, East Java. The project involves 50 corn farmers and a land area of 100ha. PISAgro’s role is to select eligible corn farmers, while Monsanto provides hybrid corn seeds and technical assistance. BRI offers working capital at a rate of 5.5% and Cargill will buy the harvest. Arief Susanto, Cargill Corporate Affairs Director, said the project is a good model and will help grow farmers’ skills and well-being. From the first crop in November last year, corn productivity per ha was 14% higher than the average 7 tonnes in the region. With the good result, PISAgro plans to replicate the project in other regions.
|India tightens rules for US chicken leg imports|
[23 January 2014] In an effort to protect its domestic poultry industry from cheap chicken leg imports from the US, India plans to tighten the rules. The Indian government has proposed to ban frozen chicken older than six months and poultry with hormones or fed genetically modified feed. It is expected that this new standards could offer some protection to the growing domestic poultry industry from competitively priced American chicken legs. India is preparing to contest a WTO ruling to lift the ban on US poultry imports to India and the appeal is expected to be filed within two days.
|Danish food exports to expand to Southeast Asia|
[23 January 2014] Denmark is making a push to sell its pork-based food and other products in new Southeast Asian markets to offset the negative impact of the Russian food boycott and low European food prices, its Ministry of Foreign Affairs said in a press release. “The Russian import ban hurts,” said Mogens Jensen, Minister of Trade and Development. “But we are helping to open new markets for Danish export companies particularly in Vietnam and the Philippines, which have high growth rates of 6-7% and a great demand for pork.”
Asian Feed Magazine, February/March 2014 – a sneak peek
[23 January 2014]
De Heus packs in automation in new plant
Assured of their growth in Vietnam, De Heus’ latest feedmill is a prototype of the kind of mills the company will be building in the country. Featuring high-end technology and robot arms, the Dong Nai plant requires only 50% of the workforce compared to its older plants, RACHAEL PHILIP writes.
Maharashtra Feeds races ahead with its seventh mill
India’s Maharashtra Feeds Pvt Ltd has been launching about one new mill every year since 2006. Growing demand and confidence in its products have placed the company one up above its competitors. Innovation such as toasted guar korma to be used as a replacement ingredient for soybean meal has also placed the company in good stead among its customers, RACHAEL PHILIP writes.
New developments in the precise application of enzymes post-pelleting
Post-pelleting liquid application (PPLA) of enzymes and other heat-sensitive feed additives reduces the risk associated with heat damage during the conditioning/pelleting process. HANS CHRISTOPH WAGNER reviews the advantages of using simple to install Controlled Droplet Applicator (CDA) technology for the precise and accurate application of enzymes in the post-pelleting process.
NIR: Practical applications for feedmills
IVAN WARD writes that a validated near infrared (NIR) spectroscopy platform and continual monitoring can provide reliable data to make correct decisions that can save money and ensure that feed is within specifications.
|Malindo ready to export to Japan|
[22 January 2015] Malindo Food Delight, a subsidiary of Indonesia’s Malindo Feedmill, has received the approval from the Japanese government and is now ready to export its processed chicken products like nuggets and karaage to Japan. Director Rewin Hanrahan said the approval reflects the quality of our products since we can meet the strict food standards of the Japanese market. Malindo views this as a stepping-stone to enter other foreign markets. “We are also targeting the Singapore and Middle East markets,” said Mr Rewin. With this opportunity, Malindo plans to increase the capacity utilisation of its 7000 tonnes/year further processing plant which now stands at 30%.
|Ba Huan opens processing plant in Long An|
[22 January 2015] Vietnamese poultry company Ba Huan Co Ltd has commissioned the first phase of a processing plant covering 7ha in Duc Hoa District in the southern province of Long An, costing over USD 2.8 million. Pham Thi Huan, Director, said the facility consists of a 1500-2500 bird/hour slaughterhouse and a 5-10 tonnes/day further processing line. Mr Huan said the plant will produce dressed chicken, chicken sausages, eggs, flans and other ready-to-eat chicken products for the domestic market. The plant is part of the company’s strategy to develop a closed system from farming to processing poultry to ensure food safety and hygiene.
|Industry in Bangladesh suffer losses due to blockade|
[22 January 2015] The poultry industry in Bangladesh has been badly hit by the shutdown and blockade called by Bangladesh National Party (BNP) leader Khaleda Zia. According to Chairman of the Bangladesh Poultry Industries Coordination Committee (BPICC), Moshiur Rahman, the poultry sector is facing very difficult times and has suffered losses to the tune of USD 33 million over the last two weeks due to the nonstop blockade. “We have no other option than to destroy the DOCs and eggs as we cannot ship these items on the same day,” he said adding that the farms lack storage and preservation facilities.
|Saliman Group inaugurates first further processing plant|
[22 January 2015] Saliman Group, an Indonesian poultry integrator based in Jogjakarta, recently inaugurated its first further processing plant in Sleman, Jogjakarta. Operated by its subsidiary Sera Food Indonesia, the new plant produces chicken nuggets, meatballs, spicy wings and sausages under the ‘Hato’ and ‘Ooye’ brands. Atie Raharjo, Sera Food Director, said the plant has an installed capacity of 650 tonnes/month and has halal, ISO 22000 and GMP certifications. Raw material for the plant is sourced from the group’s chicken slaughterhouse that receives supplies of live birds from its own broiler farms. Ms Atie said: “The further processing plant is our effort to integrate our business, as well as to prepare for the Asean Economic Community.”
|Poultry prices to come down by January-end in Pakistan|
[22 January 2015] The recent hike in prices of poultry products is temporary and the rates will gradually come down by the end of January, according to Dr Hassan Sarosh, Chairman of Pakistan Poultry Association (PPA). “Prices will soften as the demand-supply gap narrows due to favourable weather conditions,” he said. "The increase in price is due to the closure of poultry farms as farmers faced losses due to over-production. But now that the situation has eased farmers have come back to the industry,” Dr Hassan added.
|Philippines bans poultry from Vietnam, Italy and Holland|
[22 January 2015] The Philippines has imposed a temporary ban on imports of live poultry and poultry meat from some areas in Vietnam, Italy and the Netherlands following reports of high pathogenic avian influenza (H5 serotype) in these countries. The areas covered by the ban are Vinh Long and Tra Vinh, Vietnam; Veneto, Italy, Ter Arra, Zuid-Holland, and Kamperveen and Utrecht City, the Netherlands. Although these countries are not among the Philippines’ traditional sources of poultry meat, Agriculture Secretary Proceso Alcala noted that the bans must be in place “to prevent the entry of HPAI to protect the health of the public and the local poultry population.” The ban however, does not cover heat-treated poultry products.
|Indonesia lowers broiler GP import quota |
[21 January 2015] Indonesia’s Ministry of Agriculture has set this year’s import quota of broiler GP at 665,000 birds, compared to 720,000 birds in the previous year. Syukur Iwantoro, Director General of Livestock and Animal Health, said the quota was set after reviewing the supply and demand in 2014. “The quota was calculated based on the real demand of broiler DOC last year. Last year the production of broiler DOC reached 48 million/week, while demand was only 40 million,” explained Mr Syukur. “The decline in broiler GP import quota this year is aimed to prevent oversupply and maintain the stability of the selling price of live birds.”
|CP, Itochu to buy 20% of Citic Ltd|
[21 January 2015] Thailand’s Charoen Pokphand Group has joined hands with Japans’ Itochu Corp and agreed to pay about USD 10.4 billion for 20% of Citic Ltd, a major Chinese state-owned conglomerate. The agreement jibes with a new Chinese government policy of expanding outside investment in state firms in hopes of making them more productive and efficient. It also follows a thaw in Sino-Japanese political tensions after the Beijing APEC summit in November last year. While CP has extensive feed industry investments in China and Itochu is a major grain trader, Citic is not known for the agricultural component of its diversified investments, and the overall effect on the meat sector is likely to be small.
|Smuggled eggs from Thailand upset Myanmar market|
[21 January 2015] Poultry breeders in Myanmar fear the collapse of poultry market and the outbreak of bird flu with the continued influx of duck and chicken eggs smuggled from Thailand. More than 50,000 duck and chicken eggs were seized on December 14. In addition, the authorities seized more than 40,000 eggs in November 2014. “We are afraid of bird flu spreading through these smuggled eggs. The breeders in Thanphyuzayat faced losses as chickens from all poultry farms were culled after the last bird flu outbreak. It is difficult for a breeder to re-establish a poultry farm after the collapse,” said Nyo, a local breeder in Mawlamyine. “Chicken eggs from Thailand costs USD 0.05 in Mawlamyine. Local eggs cannot compete as the original cost is USD 0.07. The local poultry industry may face collapse in the long-run,” he said.
|No change in prices with lower fuel costs|
[21 January 2015] Following the collapse of fuel costs, Thailand’s Internal Trade Department said the prices of agricultural products may not change much. For example, pork will only see a price cut of 0.08%, eggs of 0.14% and chicken of 0.17%. The department will continue to discuss with producers and retailers about revising down some of their prices if it finds that their cost of production has dropped due to lower fuel prices. As a measure to protect consumers from unfair quotes, the department will dispatch teams of officials every week to the field to inspect prices and tags. It will also set up community markets in some areas to sell cheap products for consumers as part of the government's plans to help ease the cost of living.
|HCM City ensures meat supply for Tet |
[21 January 2015] Businesses in Ho Chi Minh City, Vietnam have completed plans to prepare goods for the Tet holiday, which falls on February 19. Van Duc Muoi, General Director of Vissan Limited Co, which processes and trades fresh and frozen meat and meat-related foods, told Vietnam News the company had prepared 46,000 pigs, 2000 cows and 4000 tonnes of processed food to serve customers, 10% more than the previous Tet. “There will be no price shock during Tet,” he said, adding that “we will slash prices sharply on days near Tet to stimulate consumption.” Many poultry and egg providers such as Ba Huan Co Ltd and Vinh Thanh Dat plan to increase supply by 10-15% for Tet.
|Fish processing plants in Sulawesi stop operations |
[21 January 2015] Eight fish processing plants in Bitung, North Sulawesi, Indonesia recently stopped their operations due to limited raw material supply resulting from the government’s ban on transhipment. Bahmi Said, Chairman of the Bitung Fish Processing Units Association, said they tried to get raw material from other regions like Kendari, Kotabaru and Muara Baru. However, the regions are also facing the same situation. “Because of this, we plan to import fresh fish from Maldives, China and India,” Mr Bahmi said. Normally fish processing plants in Bitung process around 1400 tonnes of fish per day, but due to the transhipment regulation, the production decreased by 20%.
|Nominations open for DSM Nutritional Sciences Award 2015|
[20 January 2015] Royal DSM is inviting nominations for the DSM Nutritional Sciences Award 2015 for research in the field of “Swine Nutrition“. The award, which carries a cash prize of EUR 50,000 forms part of DSM’s Bright Science Awards Program and recognises and rewards excellence in innovative research in the nutritional sciences. The theme for the Nutritional Sciences Award 2015 is ‘Optimum Swine Nutrition for Sustainable Food Production’. More information on the DSM Nutritional Sciences awards can be found at www.dsm.com/awards. The closing date for submissions is February 15, 2015.
|CAB Cakaran eyes 20% revenue growth in FY15|
[20 January 2015] Malaysia's CAB Cakaran Corporation Bhd expects to achieve more than 20% revenue growth for its financial year ending September 30, 2015 riding on its business expansion in Singapore. Christopher Chuah, Group Managing Director, said the acquisition of a 51% stake in Tong Huat Poultry Processing Factory Pte Ltd would allow the group to expand its broiler business to Singapore. “The company raked in sales of about USD 188 million last year and we expect close to USD 253 million in sales for FY15 with the Singapore business before hitting USD 281 million by FY16,” he said after the group's annual general meeting. He said the strategic acquisition had also enabled the group to expand its broiler farming activities to Johor Baharu, about 400km south from Kuala Lumpur, where it acquired a few pieces of land on which it can raise 2.2 million chickens.
|South Korea approves purchase of Thai chicken|
[20 January 2015] Thai exporters will soon have a new customer as South Korea has agreed in principle to buy Thai frozen chicken. According to Thailand’s Department of International Trade Promotion, South Korea has issued a letter to the Thai Embassy in Seoul detailing the import plan. The announcement is the fifth step out of the required 8-step procedure prior to the purchase of Thai chicken. South Korea’s decision to import Thai frozen poultry follows its ban on poultry imports from the US that was imposed in December 2014 due to the bird flu outbreak. Seoul now mainly imports poultry from Brazil.
|Indonesia reduces cattle import permit for Q1 |
[20 January 2015] After a long and anxious wait, the Indonesian Government has finally released permits for the importation of Australian cattle. Indonesia has issued 100,000 permits for the first quarter of 2015. This is about 33,000 less than in Q1 2014 and appears to have caught exporters by surprise. Ashley James, from Frontier International, said exporters were hoping for more. “It’s not as good as we hoped,” he said. “We were hoping for 150,000 to 160,000 permits because there’s been good demand from Indonesia.”
|SMEDA to prepare guidelines for meat exports|
[20 January 2015] Pakistan's Small and Medium Enterprises Development Authority (SMEDA) is preparing compliance guidelines for exporters of red meat, Chief Executive Officer of SMEDA Alamgir Chaudhry said recently at a program in Lahore. According to him, SMEDA's initiatives are aimed at promoting Pakistan's red meat industry globally. Pakistan has only a 0.44% share in the global red meat market with exports worth USD 200 million a year. “The volume can be enhanced by transforming the red meat resources of Pakistan into value-added products. But first, the industry has to meet international compliance standards,” Mr Chaudhry said.
|Indonesia to set up food estate in Kalimantan|
[20 January 2015] Indonesia’s Ministry of Agriculture is planning to build a food estate in Kalimantan. Minister of Agriculture, Andi Amran Sulaiman said the project will be started in 2016 on 500,000ha and around 50,000ha will be set aside for Bogor Agricultural University for research and development. Mr Andi added that there are plans to raise 500,000 heads of beef cattle to produce around 52,000 heads for slaughter per year, here.
Bird flu, FMD raise concerns in China, Taiwan
[19 January 2015]
Fujian poultry industry in turmoil as H7N9 kills two; Cases top 500
Poultry prices are tumbling in China’s Fujian Province following the deaths of two people from H7N9 avian flu, according to media reports. Fujian has suffered 15 confirmed human cases of the disease so far this year, according to the Xinhua News Agency, bringing China’s total to more than 500 cases and 170 deaths since 2013. China Daily reported live poultry sales have dropped more than 50% in the major port city of Xiamen, where one of the victims died, and prices are tumbling as wet markets close, restaurants stop serving and consumers avoid chicken.
More farms in Taiwan hit by H5N3 strain
Taiwan’s Council of Agriculture on January 17 announced the latest inspection results of the widening avian influenza outbreaks that hit the nation’s poultry farming sector last week. The latest statistics showed that 142 poultry farms across the nation were hit by the highly pathogenic strains consisting of the H5 subtype, of which 57 had been culled. The virus has affected a total of 222,896 birds, of which 89,806 were exterminated while the rest died from the disease, Bureau of Animal and Plant Health and Inspection Director-General, Chang Su-san said. Authorities said the new strain, H5N3, infected geese on farms in southern Taiwan. H5N8 and two versions of the H5N2 strains were identified earlier in January.
Hong Kong bans poultry imports from Japan
Hong Kong has banned the import of poultry meat and products from Okayama prefecture, Japan, in view of an outbreak of H5 avian influenza announced by the Japanese authorities, the city’s Centre for Food Safety (CFS) said on January 17. The CFS has contacted the Japanese authorities over the issue and will closely monitor information issued by the OIE on the avian influenza outbreak in the country, according to a CFS spokesman. More than 5000 tonnes of frozen and chilled poultry meat and 20 million poultry eggs were imported from Japan into Hong Kong from January to November 2014, said the spokesman.
Widespread reports of FMD in China
Porcine FMD has broken out in seven provinces covering a wide area of China, according to Chinese media reports. The disease has been reported on pig farms in Henan, Anhui, Jiangxi, Hubei, Hunan, Tianjin and Liaoning provinces. The disease is spreading due to winter weather, farmers skimping on disease control, and crowded and unsanitary conditions on some farms, according to Chinese analysts. Despite the outbreaks and the approach of Chinese New Year, wholesale pork prices have fallen in the last month, suggesting a market in oversupply.
|Buffalo meat is now India’s top agri export item|
[19 January 2015] Buffalo meat exports have overtaken those of basmati rice for the first time. According to Commerce Ministry data, India exported buffalo meat worth USD 3.22 billion in the April to November 2014 period, up over 16% from the corresponding period in 2013. Buffalo meat exports saw a phenomenal growth of 31% in quantity and 36% in value in 2014. Among the top export destinations were Vietnam, Malaysia, Egypt, Thailand and Saudi Arabia. Russia recently opened up its market for Indian buffalo meat.
|Suri Tani Pemuka ready to export pomfret to S. Korea|
[19 January 2015] Suri Tani Pemuka, a subsidiary of Japfa Indonesia involved in aquaculture, is ready to export pomfret fish to South Korea this year. Arie Prabawa from the marketing division said the company has received orders to supply the marine fish to markets in South Korea. “Per month we can supply around 25 tonnes,” he said. Suri Tani Pemuka has hatcheries for pomfret and production units with floating net cages in Bali and Banyuwangi (East Java). Mr Arie said that for export, the fish that is also known in Japan as Marukoban, is priced around USD 3.2-4.8/kg.
|Asean largest importer of Thai food, ag products|
[19 January 2015] The cross-border trade of agricultural commodities and foods between Thailand and its four neighbouring countries has grown in both value and volume thanks to the on-going regional collaboration in reducing trade barriers. According to Pisan Pongsapitch, Deputy Secretary-General of Thailand’s National Bureau of Agricultural Commodity and Food Standards, major Thai exports to Myanmar, Laos, Cambodia and Malaysia are vegetables, sugar, chicken and pork meat. Vice versa, Thailand has imported beans, corn for animal feed and shrimp from its neighbours. The combined value of bilateral trade between Thailand and those countries is worth around USD 3 billion and is expected to increase in the future.
|South Korea orders lockdown to fight FMD, bird flu|
[16 January 2015] South Korea has announced a 36-hour lockdown over this weekend on poultry and livestock farms across the country to curb the spread of two highly contagious animal diseases namely foot and mouth (FMD) and bird flu. The Agriculture Ministry said the movement of animals, people and vehicles at thousands of farms would be banned from 6am on January 17, 2015 for disinfection. A series of outbreaks of FMD in recent months have resulted in the slaughter of around 25,000 pigs, and concern has grown as cases have spread to farms close to the capital Seoul. The battle to contain FMD has coincided with outbreaks of avian flu in poultry farms that have resulted in the culling of more than 500,000 birds in the past four months.
|Chicken blood banned for use in food|
[16 January 2015] Thailand’s Livestock Development Department (LDD) has banned the use of chicken blood as an ingredient pending a probe into which food-processing plant is responsible for many cases of Vibrio parahaemolyticus infections. This bacteria causes food poisoning and is believed to have come from chicken blood. “Infections reported in Chiang Mai province have been traced to a plant in Nakhon Ratchasima province, but we have to determine which one exactly,” LDD Deputy Director General Soravit Taneeto said. He is confident that given the standards used by Thai-based plants, relevant authorities will be able to trace the origin of the bacterium. All shops selling khao man kai (chicken and oily, flavourful rice) are also encouraged to leave chicken blood out of their recipes.
|Broiler farmers urged to build slaughterhouses|
[16 January 2015] The average price of live birds in Indonesia in 2014 was only USD 1.1/kg, while the production cost ranged between USD 1.2-1.3/kg. Chairman of the Indonesian Poultry Slaughterhouses Association, Achmad Dawami said: “It’s time to change. Farmers should move from selling live birds to dressed birds.” Mr Achmad urged farmers with broiler production capacity of more than 500,000 birds/month to set up slaughterhouses and cold storage facilities. “The price of dressed birds is more stable than that of live birds. Besides, by selling dressed birds, sales of fresh warm chicken can be reduced in the interest of food safety.”
|Barramundi Asia launches fish delivery service|
[16 January 2015] Singapore-based Barramundi Asia launched its barramundi fish delivery service via its website. The model does fillet processing with an unbroken cold chain. According to the company the fish are harvested to order directly from the 7.5ha ocean farm located at the south of Singapore. After harvest, the fish are kept submerged in ice and, within hours, are filleted in a cold room and vacuum-packed. The fillets are then packed in insulated containers before reaching the consumers’ doorsteps. Currently, Barramundi Asia is offering an introductory price of about USD 37/kg, which is inclusive of delivery. Single portions are also available at USD 7.50 for 200g fillets.
|China bans all US poultry imports over AI|
[16 January 2015] China has banned all US poultry imports following reports of Avian Influenza (AI) in the US Pacific Northwest. US industry representatives immediately protested, saying the HPAI was found in wild birds hundreds and even thousands of miles from major production areas. Exporters said international guidelines call for regional bans in such cases. China has imposed regional bans in the past, but this time the Ministry of Agriculture has banned all US imports. South Korea and Thailand have also banned all US poultry imports, but most other nations have imposed only regional bans. The US was the second largest exporter of poultry products to China in the first half of 2014, just behind Brazil, shipping more than 220,000 tonnes. Analysts noted that Hong Kong has imposed only a regional ban and shipments may continue to move by the Grey channel.
Bird sanctuary shut after 40 birds found dead
[16 January 2015] The Sultanpur National Park in Gurgaon near New Delhi, India has been shut down after nearly 40 birds were found dead recently triggering fears of bird flu. “Even though the Animal Husbandry team has not found any indication of bird flu, samples have been sent to a laboratory in Bhopal to rule out the virus,” District Forest Officer K S Khatkar said. According to him, most birds that died were seed-eating birds and probably fed on seeds sprayed with pesticides. Meanwhile, around 100 poultry farms located in the vicinity have been put on alert by the Animal Husbandry Department.
|Plastic in nugget not from Cargill facilities|
[15 January 2015] Cargill announced yesterday that after an exhaustive investigation, they are confident the blue, plastic foreign material found in a McDonalds Chicken Nugget in Japan did not originate from its production facilities. The investigation included physical analysis, chemical analysis, microscopic third-party lab analysis and a step-by-step search across Cargill’s entire production facility. Chemical and physical analysis revealed that the type of plastic found in the nugget does not exist in the Cargill production plants in Thailand. “We are very confident that the plastic film in the nugget occurred outside of our production plant,” stated Chuck Warta, President, Cargill Meats Thailand.
|Nampa supports investments in intermediary industry|
[15 January 2015] Indonesia’s National Meat Processors Association (Nampa) observes that products from intermediary industry like ingredients for the meat processing industry such as sausage casings and enzymes, as well as meat processing machines in Indonesia are imported. Nampa Chairman Ishana Mahisa hopes the government could offer incentives to encourage investments in Indonesia. “Many players in the industry prefer to invest in Singapore, Malaysia and Thailand. We are ready to help and support if they want to invest here since the investments will help the meat processing industry grow faster,” Mr Ishana told Asian Agribiz.
|Trouw Nutrition opens regional hub in Bangkok |
[15 January 2015] Trouw Nutrition, a Nutreco company, officially opened its Asia Pacific regional office in Bangkok yesterday. “With the opening of this office, we will be able to provide better support to the whole region,” said Haiko Zuidhoff, General Manager Asia Pacific. The Bangkok office will offer technical support to customers in the Asia Pacific including South Asia, Southeast Asia, Japan, Australia and New Zealand. “We are global company that acts locally. We work to address specific need of customers to make sure feed and food is safe and to reduce the use of antibiotics (in feed and livestock production),” Martiin Adorf, Managing Director Feed Additives of Nutreco said. Trouw Nutrition has nine plants in the region including those in China, Indonesia and Vietnam. The company plans to officially open its new plant in Surabaya, Indonesia in July or August and the plant in Vietnam in March.
|Incentives to help processors be more competitive|
[15 January 2015] Logistics and infrastructure are key weaknesses in Indonesia’s meat processing industry said an official of the Ministry of Industry. Haris Munandar, Head of Industrial Policy Assessment, said to help players in the meat processing industry improve their competitiveness within Asean, the ministry plans to offer incentives like tax holidays or lower taxes. “We will also harmonise regulations that currently prevent players from developing their businesses.”
|Pakistan to play bigger role in meat trade|
[15 January 2015] Pakistan is on the verge of becoming an active players in the global meat trade particularly in the Middle East and Southeast Asia. According to Pakistan Bureau of Statistics, the country’s halal meat exports rose to USD 230.2 million in the 2014 financial year, an increase of 9% over 2013. About 80% of Pakistan’s meat exports go to the Middle East and Gulf countries. Pakistan ranks 22nd in the world in the export of halal meat, more than half of which is beef.
Andhra Pradesh to be marine processing hub
[15 January 2015] The Indian state of Andhra Pradesh is seeking collaboration with Australia in the aquaculture and food processing sectors. Plans are afoot to turn the state into a marine processing hub with Australia's help. Andhra Pradesh tops in brackish and fresh water shrimp production and is second in fresh water fish production and fourth in marine fish production in the country. The state government is keen on establishing fishing harbours through public-private partnerships, cold chain infrastructure, pre-processing facilities and value-added production facilities.
|Cold chain network could offer competitive edge |
[14 January 2015] Although logistics and infrastructure is one of Indonesia's weaknesses in the face of the Asean Economic Communities, meat processors believe that the industry can compete with other Asean member countries. Cimory CEO, Bambang Sutanti told Asian Agribiz that an established cold chain distribution network would offer a competitive edge. “It’s not easy for other countries to export processed meat products to Indonesia since they need to have a cold chain distribution network here. It will take time for them to develop the network, not to mention that Indonesia is an archipelagic country,” said Mr Bambang.
|San Miguel Purefoods to expand in Asean|
[14 January 2015] San Miguel Pure Foods Co Inc (SMPFCI) is taking advantage of the opportunities in the regional market by expanding in Asean. The company is set to spend between USD 178-223 million annually in the next few years to fund its expansion locally and overseas. SMPFCI President Francisco Alejo III said that the company will build new facilities in Indonesia and Vietnam, where it already has a presence, as well as venture into new markets like Malaysia and Thailand. He said SMPFCI is already exploring overseas companies for possible acquisitions and is also in talks with potential partners. In the local market, Mr Alejo said plans to put up 10 new facilities in the Philippines this year to expand its feed and further processing capacity. The expansion will help the company “take advantage of the opportunities when the market improves,” he said.
|NZ mutton exports soften|
[14 January 2015] New Zealand mutton export volumes fell 4.4% to 17,200 tonnes shipped weight in the last quarter of 2014 compared to a year earlier as demand from North Asia softened. North Asia accounted for 68% of total mutton shipments, down from 77% during the same period in 2013. As a result, New Zealand mutton export destinations were more diversified than in 2013-14, with a surge in exports to South Asia, North America and the European Union. The average per tonne value of mutton exports increased by 3.5% to USD 4194/tonne.
|Nampa seeks fair competition|
[14 January 2015] Haniwar Syarief, Executive Director of Indonesia's National Meat Processors Association has urged officials of the Ministry of Industry to help the meat processing industry with supportive regulations. “We want the government to ensure a level playing field with other Asean countries. Governments in other countries allow their processors to import and use Indian beef. Our government should also do this. We can’t compete if we use Australian beef worth USD 5.5/kg, while Indian beef is only USD 3.2/kg,” he explained.
|More H5N2 outbreaks in Taiwan|
[14 January 2015] Taiwanese authorities have reported five H5N2 avian flu outbreaks to the World Organization for Animal Health (OIE). Four involved goose farms in Yunlin County on the west coast of Taiwan, and one was at a duck farm in Pingtung County in the south. The goose flocks ranged in size from 2,640 to 7,600 birds while the duck farm houses 7,000 layer ducks. Previous media reports described an outbreak involving 120,000 chickens in Pingtung County.
|India likely to appeal against WTO ruling |
[14 January 2015] The deadline for India's appeal against the World Trade Organisation's (WTO) ruling that India’s ban on poultry imports from US is ‘inconsistent’ is drawing close. Authorities are in a delicate position as the deadline coincides with US President Barack Obama’s visit to India on the same date (January 26), to celebrate India’s Republic Day. Analysts say that an appeal is imminent as allowing US poultry imports will pose a serious threat to the domestic industry.
|Importers, feedlotters welcome Brazilian cattle|
[13 January 2015] Indonesia's revision of cattle and beef imports from country-based to zone-based rules has received positive response from importers and feedlotters in the country. Juan Permata Adoe, President Director of Bina Mentari Tunggal that is involved in cattle imports, feedlots and beef processing, told Asian Agribiz that Brazil is ready to supply feeder cattle to Indonesia. “Cattle from Brazil will help rationalise cattle supply and price in the country. So far feeder cattle are only supplied by Australia,” said Mr Juan. Besides, Indonesia has to compete with China and Vietnam for feeder cattle from Australia.
|Pig farming area will solve pollution problems|
[13 January 2015] Farmers will have much to benefit from the proposed pig farming area in Selangor, Malaysia. According to consultant Dr Chin Vei Ching, the modern farming area will solve the severe pollution problems in the Tanjung Sepat area. “With the integrated facility farmers can update their breeds and operate modern facilities, which can help them realise better productivity,” Dr Chin told Asian Agribiz. He said a dialogue with farmers proved that they are supportive of the move. He added that “the government too is eager to solve the pollution problems facing the state”. Dr Chin, a government retiree, was project director between 2004 and 2013 for the country’s first PFA in Sarawak. He said if all goes as planned the project can be completed in five years.
|Indonesia’s Ag Ministry bans secondary meat imports|
[13 January 2015] Raw material, especially beef, will still be a problem for meat processors in Indonesia this year. The Ministry of Agriculture recently issued a regulation that bans imports of secondary meat like skirt, chuck, flank, brisket and blade saying supply can be met locally. Import of primary, manufacturing and varied meat, meanwhile, is still allowed. Ishana Mahisa, Chairman of the National Meat Processors Association, told Asian Agribiz that the new regulation would hamper the growth of the meat processing and Horeca industries. “We hope the government can review the regulation since it will also affect the competitiveness of this industry in the face of the Asean Economic Community.”
|Philippines imposes more import bans|
[13 January 2015] The Philippines has imposed temporary bans on imports of FMD-susceptible animals, their products and by-products from South Korea, China and Namibia after reports of the disease in these countries. The Department of Agriculture said the ban was necessary because the country is working to maintain its FMD-free status and cannot afford to take chances. Agriculture Secretary Proceso Alcala said the country needs to ensure it remains free from the disease as this will be an “advantage for the country once the ASEAN Economic Community integrates and opens a free regional market this year.”
|Chinese bust network selling pork from dead pigs|
[13 January 2015] Chinese authorities have busted 11 gangs and arrested 110 people suspected of selling pork from pigs that died of disease, the Ministry of Public Security announced. The ministry said a criminal network had been buying dead pigs from farms at low prices and selling the meat to markets in 11 provinces, including Henan, Hunan and Guangxi. The investigation began in late 2013, and more than 1000 tonnes of suspect meat and 48 tonnes of waste oil have been seized. Regulatory personnel who issued blank safety certificates to gang members and insurance company representatives who participated in the scam are also being prosecuted, the statement said.
|Taiwan hit by H5N2 outbreak |
[13 January 2015] Taiwan has confirmed a H5N2 outbreak in chickens on a farm in Pingtung County's Xinpi Township, according to the Taiwan Central News Agency (CNA). The Pingtung Agriculture Department is culling all 120,000 chickens at the affected farm of Dawushan Livestock Products Co. Dawushan is one of the leading chicken farms in Taiwan, and eggs from the farm have been shipped and may still be available to consumers.
|PigFQC 2015 to tackle performance and profitability|
[12 January 2015] This year’s Pig Feed Quality Conference (PigFQC) by Asian Agribiz will tackle four fundamental themes which can enhance the performance and profitability of pig and feed production. The two-day conference is scheduled for April 9-10 at the New World Hotel Saigon in Ho Chi Minh City, Vietnam. Widely recognised as one of Asia’s premier scientific forums for industry professionals, the 2015 PigFQC, organised annually by Asian Pork Magazine and Asian Feed Magazine, will update participants on the latest research and provide real solutions to complex issues facing Asian pig producers. Topics will focus on four fundamentals: sow nutrition, ingredients, additives and feed manufacturing. The detailed program for this year’s conference will be available on February 1 at www.asian-agribiz.com.
|Meat processors hail Indofood-BRF JV |
[12 January 2015] The majority of meat processors in Indonesia have responded positively to the news about the joint-venture agreement between Indonesia’s largest food company Indofood and Brazilian poultry company BRF. Ishana Mahisa, Chairman of the National Meat Processors Association, said the JV could offer technology transfer and job opportunities. Juan Permata Adoe, President Director of Bina Mentari Tunggal and Vice Chairman of the Indonesian Chamber of Commerce and Industry, meanwhile said that for about 30 years the poultry industry has been ‘protected’ by the government. “The JV will trigger industry players to move on and become more efficient. And this is good for the industry,” he told Asian Agribiz.
|FMD kills 314 pigs on Chinese Farm|
[12 January 2015] Foot and mouth disease (FMD) has killed 314 pigs on a farm in central China, according to a report by The Pig Site. The report said FMD had been diagnosed in 556 animals on a farm in Ci Hu, Henan Province. Apart from the 314 that had died, a further 612 had to be destroyed. The report gave no further details. As Asian Agribiz reported in December, industry sources are saying FMD has broken out in several Chinese provinces and caused high mortalities on some farms.
|Indonesian meat processors need cheaper MDM|
[12 January 2015] Besides beef, meat processors in Indonesia are faced with the poor supply of chicken MDM (mechanically deboned meat) at a competitive price as imports are banned. Ishana Mahisa, Chairman of the National Meat Processors Association, said that the problem would weaken the competitiveness of this industry in the face of the Asean Economic Community. “Malaysia in 2012 imported around 5 million tonnes of MDM from 1.7 million tonnes in the previous year. While the Philippines reduced its Indian beef import and substituted it with MDM. The competition will not be fair if we have to compete with meat processors from other Asean member countries who use imported MDM. At the moment the price of imported MDM is around USD 0.8-1 per kg, while local MDM is around USD 1.1-1.5,” he added.
|Chinese feed companies required to buy government grain|
[12 January 2015] The Chinese government is requiring feed companies that want to import grain in 2015 to first buy grain from government reserves, according to a notice posted on industry websites in China. Chinese agricultural authorities have found themselves forced to buy local grain due to bumper crops in China. Chinese companies often prefer to buy imported wheat and corn that meets higher quality standards, can fill specialty niches and is currently 24-30% cheaper than Chinese grain on world markets. The new rule requires companies that want to import grain at the most favourable tariff rates in 2015 to buy an equivalent amount of old Chinese grain before receiving permission to import, according to a posting on oils.net.cn. An analyst at the Dim Sums blog said about half the stored wheat is poor quality and dates from 2013, and that nearly all of the corn has been stored in the open for up to three years.
|India’s oilmeal exports face steady decline|
[12 January 2015] India’s oilmeal exports have been witnessing steady decline over the last three years. After a record 5.60 million tonnes of oilmeal exports in 2011-12, its shipment fell to 4.85 million tonnes in 2012-13 and 4.33 million tonnes in 2013-14. But, 2014-15 has been the slowest in many years with overall exports at 1.42 million tonnes between April-November 2014 against 2.6 million tonnes in the corresponding period in2013. Against this backdrop, oilmeal exporters have urged the government to incentivise exports. “The government should consider higher incentives under the existing scheme on export of oilmeal,” Pravin Lunkad, President of the Solvent Extractors’ Association of India said.
|Papal visit could boost meat demand|
[09 January 2015] Philippine poultry and livestock producers are hopeful that the visit of Pope Francis to the Philippines from January 15-19, will boost demand in what is traditionally a slow period. Philippine Agriculture Undersecretary Jose Reaño had earlier said that demand for pork and chicken meat traditionally goes down during the first quarter of the year. This was confirmed to Asian Agribiz by both United Broiler Raisers Association Chairman Elias Jose Inciong and Pork Producers Federation of the Philippines President Edwin Chen. However, Mr Chen said that they are hopeful that the Pope’s visit, which is expected to bring in millions to Metro Manila will help boost demand for meat in the country’s biggest market on what is typically a “lean season”.
|Luheng Marketing to house more hens|
[09 January 2015] Luheng Marketing Sdn Bhd, a Malaysian company developing herbal-based supplements, wants to build six hen houses by end 2015 for a total of 15,000 hens. The company has been rearing 2800 regular and native spent hens, bought from local integrators, at its show farm opened last September. “When the birds arrived some had health issues, most had poor production level of about 40%. We only achieved between 300-400 eggs/day then. By mid-December we were achieving up to 1500 eggs per day,” Chow Khay Hoong, Director, told Asian Agribiz. The company is currently about to launch its brand 'Telur Kampung Free Range', or Free Range Native Chicken Eggs, and will sell them via small distributors at a premium, promoting them as antibiotic-free products, without colour additives.
|Indonesia to build fishmeal processing plants|
[09 January 2015] Indonesia’s Ministry of Fisheries and Marine Affairs this year plans to set up 10 fishmeal processing plants in fish production centres in an effort to reduce the import of fishmeal. Saut P Hutagalung, Director General of Fish Processing and Marketing, said that fishermen and aquaculture farmers would be grouped and educated to be able to run the small-scale processing plants. “With this we hope that fishmeal imports this year will reduce by 15%,” Mr Saut said.
|Soymeal exports drop by 79%|
[09 January 2015] India's soymeal exports in the first nine months of the 2014-15 fiscal has declined by 79% to 0.4 million tonnes tonnes as compared to 2 million tonnes in the same period last year, according to Soybean Processors Association of India (SOPA). Dr Davish Jain, Chairman of SOPA said that the export in December 2014 was around 0.2 million tonnes as compared to 0.47 million tonnes in the same period in the previous year. “Indian soybean meal continues to be out-priced because of higher global production in 2014 and lack of sufficient incentives to offset the higher transaction cost in India," he said. Iran, France, Indonesia and Belgium were the major importers in the April-December period.
|Pakistan’s halal meat exports appreciate|
[09 January 2015] Pakistan’s halal meat exports have grown by 9.5% to reach USD230 million in fiscal 2014, according to data released by Pakistan Bureau of Statistics. Beef constitutes more than half of Pakistan's meat exports, the rest being goat and sheep. Saudi Arabia and the United Arab Emirates are two big importers of meat from Pakistan. While nearly 88% of Pakistan's meat exports go to Gulf countries, the remaining are exported to Vietnam and Iran. Pakistan has the eighth largest cattle stock in the world and is among the world's top 10 countries for goat and sheep rearing.
|Cargill steps out of Nutreco bid|
[09 January 2015] US agribusiness giant Cargill Inc has pulled out of plans to buy Nutreco NV saying the deal is no longer attractive. In a statement issued last December Cargill said it has abandoned its plans after considering “all relevant facts including the attractiveness of Nutreco relative to alternative potential investments”. Cargill’s decision to walk away from Nutreco came after SHV, Nutreco’s largest shareholder, said that it would declare its offer unconditional if it obtained a minimum of 67% of Nutreco shares, compared with a previous target of 95%. The move was viewed by analysts as an attempt to deter Cargill from making a new bid. SHV said it already owns more than 15% of Nutreco shares.
|Producers want government to ban imports from the US|
[08 January 2015] Philippine poultry producers said the government should impose at least a selective ban on imports from the US following the confirmation of a highly pathogenic H5 strain of avian influenza in a backyard poultry flock in Washington State. United Broiler Raisers Association Chairman Elias Jose Inciong told Asian Agribiz that this is a cause of concern for the local industry, as the US is a major source of imported chicken for the Philippines. The Philippines has remained free of AI even as its neighbouring countries have had outbreaks, due to strict border control and surveillance. However the Department of Agriculture has not yet commented on whether or not it will impose a ban on US poultry.
|Indonesian farmers demand control on broiler DOC production|
[08 January 2015] Pinsar Indonesia, the Indonesian poultry farmers association, has predicted that broiler DOC production in the country might reach 64 million per week, while demand will only be around 47 million DOC, said Chairman Singgih Januratmoko. “This means that there will be a production surplus of around 17 million.” Mr Singgih noted that in 2014 the broiler industry experienced oversupply with losses of around USD 552 million. In that year broiler DOC production was 49 million/week, while demand was only 42 million. Mr Singgih said the association has raised the issue with the Minister of Agriculture. “The government should regulate broiler GPS imports to prevent production surplus to prevent another bad year,” he said.
|McDonald’s Japan investigates nuggets from Thailand|
[08 January 2015] McDonald’s Corp’s Japan business and Cargill Inc. are investigating complaints that objects were found in chicken nuggets made by a Cargill unit in Thailand, Bloomberg reported. The nuggets supplied by Cargill Meats Thailand, were sold at two outlets in Japan, including one in Tokyo. Cargill will work closely with McDonald’s as its investigation progresses. McDonald Japan is seeking new nugget suppliers including in Brazil, and doesn’t plan to halt production and sale of the food items. This case is the restaurant chain’s second food-safety crisis in six months after McDonald’s Japan had switched sources of chicken nuggets to three Thai factories, including two of Cargill’s, after a food safety scandal involving the OSI Group in China.
|Two GM soybean varieties approved|
[08 January 2015] In an encouraging sign for GMO seed developers, Chinese officials have approved two genetically-modified soybean varieties for import. DuPont Pioneer received approval for a product that produces healthier oil while controlling weeds, while Bayer received approval for its own GMO soybean variety. China also recently approved Syngenta’s MIR162 corn, which had become a major trade issue when China started turning back US corn shipments last year. Bayer’s application had been pending for seven years, and Syngenta’s for more than four.
|Naduk, Simuang identified as quarantine islands|
[08 January 2015] Indonesia’s Ministry of Agriculture plans to utilise Naduk Island in the province of Bangka Belitung archipelago and Simuang Island in Central Sulawesi province as quarantine islands for imported cattle. Banun Harpini, Head of the Agriculture Quarantine Agency, said that the presence of quarantine islands is important to prevent the possible spread of dangerous animal diseases. “Both islands have met the technical and economic aspects. Historically, there are no contagious animal diseases in both islands. In addition, feed and water sources are available in sufficient quantities,” said Mrs Banun.
|China reports another H7N9 case |
[08 January 2015] China reported its second H7N9 avian flu case this year, with both cases in Guangdong province near Hong Kong. According to Xinhua, the country's state-run news agency, the new case is in a 36-year-old man in the city of Dongguan, the same site of an H7N9 infection reported a day earlier in a 6-year-old girl. Officials in Guangdong and Hong Kong last week culled thousands of chickens after exports to Hong Kong were found to be infected with H7N9, the story said.
|Build goodwill to succeed in China: Rabobank Analyst|
[07 January 2015] Western companies hoping for success in China’s booming protein sector should pay more attention to understanding local culture and building political goodwill, according to a new report from Rabobank’s food research unit. The report, “Bulls in a China Shop, How Western Companies Can Navigate China’s Animal Protein Market,” says the protein sector has been difficult for Western companies to crack because it of its low margins and fragmented traditional supply chains, but those factors are changing as the protein industry modernises. A key for Western players is finding good local managers who can build relationships and establish trust, according to analyst Pan Chenjun. “It is better to acquire good management than to just acquire assets,” Ms Pan said in an interview with Asian Agribiz.
|Government urged to build more pig slaughterhouses|
[07 January 2015] Slaughterhouses can help produce safe and quality pork for the Indonesian market. Phaithoon N Na Ayudhaya, Business Development Advisor and Swine Specialist of Charoen Pokphand Indonesia, said standard slaughterhouses would help pig farmers in Indonesia to stay competitive in the wake of the Asean Economic Community. Therefore, Mr Phaithoon hoped the Indonesian government would build more pig slaughterhouses for the traditional slaughtermen in the country. “If the slaughtermen are gathered, the government can easily control and educate them on quality, cold chain and food safety standards.” Mr Phaithoon is encouraging investors to build standard pig slaughterhouses in Bali. “We, through PT Karya Prospek Satwa, are ready to support with finisher pigs supply and market information. We also want to produce frozen products with big cities outside Bali and eastern Indonesia as our market,” he told Asian Agribiz.
|PPA demands price control mechanism for poultry products|
[07 January 2015] Islamabad-based Pakistan Poultry Association (PPA) has stressed the need for determining the price control mechanism for poultry products in order to control any undue hike in its rates. According to Dr Hassan Sarosh, its Chairman, at present a few wholesalers in the market determine the poultry prices on their own in Islamabad and Rawalpindi. “It is against consumer rights and new price control mechanism is needed,” he said. Adding that the recent hike in poultry products is temporary, he said that the prices would soften by mid-January.
|Poultry entrepreneurs in Nepal seek friendly policy|
[07 January 2015] Poultry entrepreneurs in Nepal have urged the government to introduce policies and programs to lower production cost. In a program held in Bharatpur recently, producers said that though Nepal is self-sufficient in poultry products they cannot compete with neighbouring markets in India in terms of price as they are dependent on India for pellet feed. "The government imposes different taxes on pellet feed and this increases our production cost," Til Chandra Bhattarai, immediate past president of Nepal Chicken Entrepreneurs´ Forum said. He also urged the government to encourage farmers to cultivate maize and soybean to help reduce production cost.
|Denmark pledges support for Vietnam swine sector|
[07 January 2015] John Nielsen, the Danish Ambassador to Vietnam, said at a conference recently that Denmark would continue to support Vietnam in developing high quality pig breeding. He said Vietnam’s pig breeding sector improved significantly in recent years, but production and quality could not meet the demand, while Denmark’s enterprises could assist Vietnam with different pig varieties and equipment. Results on livestock imported from Denmark to Binh Thang and Thuy Phuong Livestock Breeding Centres showed a high genetic potential in terms of reproductive performance and growth. However, the centres also said not all the species could adapt to breeding conditions in Vietnam.
|Oman bans poultry imports from Kerala |
[07 January 2015] Oman's Minister of Agriculture and Fisheries, Dr Fuad bin Ja'far Al Sagwani has issued a ban on import of live birds, their products, their derivatives and offal from the state of Kerala, India. Apart from this, the ministry has also banned import of poultry and poultry products from the UK, the Netherlands, South Korea, North Korea and Germany. The decision was based on the recommendation of the veterinary authority due to disease issues.
Asia strengthens biosecurity against spread of avian flu
[06 January 2015]
Avian influenza (AI) remains a big hurdle in Asia. The new outbreaks and new strains in Asia and other parts of the world raised concerns in 2014 and continue to pressure the industry in 2015. The Rabobank Poultry Quarterly Q4 2014 report stated that several avian flu strains are already endemic in several parts of Asia and the region will continue to suffer from economic due to lost markets and lower local prices. In the longer term, industries need to prepare for on-going disease pressure, especially in times of bird migration and this will require higher levels of biosecurity and reconsideration of existing business models.
FAO, OIE suggest increased biosecurity
Outbreaks of the new highly pathogenic avian influenza virus H5N8 was reported in poultry in China, Japan and South Korea earlier in 2014 while countries in Europe namely Germany, the Netherlands and the United Kingdom also confirmed H5N8 on poultry farms. FAO and OIE experts said that evidence suggest that wild birds may have played a role in spreading the virus. At-risk countries are urged to step-up prevention efforts through increased biosecurity, early detection, strengthen rapid response capacities and by minimizing contact between domestic poultry and wild birds.
Thailand on alert
Thailand’s Department of Livestock Development (DLD) issued an alert to local farmers after reports of H5N8 in Europe and Japan and others strains in neighbouring countries. The OIE confirmed outbreaks of H1N1 in Cambodia and Vietnam while Laos reported a case of H5N6 in Xayaburi. H5N6 has also been confirmed in several provinces in Vietnam.
AI cases in Indonesia decline
Indonesia’s Ministry of Agriculture has said that AI in the country is showing a decreasing trend. Animal Health Director, Dr Pudjiatmoko told Asian Agribiz that from January to November 2014, there were only 326 AI cases (H5 subtype) found in native chicken, commercial layer, duck and quail. These were mainly in West Java, Central Java and Lampung. “The number of AI cases in 2014 decreased significantly compared to 470 cases in 2013 and 546 cases in 2012,” Dr Pudjiatmoko said. He added that the Participatory Disease Surveillance and Response (PDSR) team collected the cases through SMS (short message service) gateway and surveillance run by veterinary agencies. To control the virus, the ministry has released several regulations and advised farmers and industry players to strengthen biosecurity and vaccination.
H7N9 confirmed in imports from China
A handful of Chinese provinces have reported recent human H7N9 infections, and most of the patients had been exposed to poultry markets or live poultry. Hong Kong officials detected H7N9 in poultry imported from the mainland in previous waves of infection. The latest follow-up tests by Hong Kong's agriculture department on a shipment of live chickens from China's mainland revealed that the birds are infected with the H7N9 virus. After the findings, over 19,000 birds at the wholesale poultry market where the birds were kept were culled and a 21-day closure of the wholesale market was announced as well as temporary suspension of live poultry imports from the mainland. Biosecurity measures are in place before the farm that raised the infected birds is allowed to resume supplying birds to Hong Kong, and all 29 registered farms in Hong Kong will be inspected to make sure their flocks are not infected with H7N9.
Thailand kicks off preventive measures
As a preventive measure, Thailand’s DLD introduces the first integrated surveillance campaign for this year that will be implemented nationwide during from January 1-31. “This kind campaign has unremittingly been implemented twice a year but additional efforts will be carried out when there are outbreaks in neighbouring countries,” Acting Director-General of the Livestock Department Thanit Anekwit said. “Activities include searching for poultry that died of unknown causes and collecting samples of poultry in risky areas such as live poultry markets,” he said.
Several AI strains in China
Apart from H7N9, China has also faced outbreaks of several serotypes of AI. China reported outbreaks of H5N1 in Guizhou, Hubei and Yunnan; H5N2 in several provinces such as Ningxia, Hubei and Shandong; H5N3 in Hunan; H5N6 in many provinces including Sichuan, Heilongjiang, Zhejiang, Hunan, Hubei, Guangdong and Anhui; H5N8 in Liaoning. Measures applied to tackle the epidemic included stamping out, movement control inside the country, screening, and zoning, disinfection of infected premises or establishments dipping / spraying and for some case vaccination in response to the outbreaks.
Philippines remain free of AI
Since the AI virus re-emerged in 2003, the Philippines has managed to keep its poultry industry AI-free through strong coordination and collaboration between government, non-government and private groups, Dr Magdalena Cruz of the Bureau of Industry’s Philippine Animal Health Centre told Asian Agribiz. Together these groups launched a massive information drive as well as strict monitoring system that helped keep the industry updated and free of the virus. Dr Cruz also said “the infusion of funds to strengthen the government’s laboratory capacities made the difference,” noting that the country’s AI laboratory is one of the best in the Asean region. She added that the government continues to train both its lab and field personnel to keep them up to date on the disease. Meanwhile, industry players have lauded the government’s strict border control and surveillance, which has led to bans on poultry imports from AI-infected countries.
H5N1 clade 2.3 dominates AI cases in Indonesia
Although the case of AI in Indonesia is relatively under controlled since farmers conduct vaccination regularly and have strengthened biosecurity, sporadic cases of AI still happen, according to Dr Arini Nurhandayani, Sanbio Laboratories GM for Veterinary Biological Products. Her team found that H5N1 clade 2.3 dominated in many cases. The Medion team also confirmed this. Medion Technical Support, Dr Christina Lilis said the clinical signs are changing. “In the past, we found respiratory problems, but now we also find soft follicles and severe bleeding in the ovaries. In layers, the clinical sign resembles the Newcastle disease. This can lead to errors in diagnosis, so it is very important to run laboratory tests,” Dr Christina explained.
Avian influenza contained in India
The recent outbreak of AI in the southern state of Kerala has been contained with the consistent and coordinated efforts of the government. Around 17,000 ducks died in Kerala and laboratory tests revealed that the highly pathogenic H5N1 virus was the cause. As per standard protocol, about 200,000 ducks in the affected areas was culled. Duck meat is popular among the people in central districts of Kerala. Officials pointed out that though it is difficult to identify the source of virus, migratory birds might have acted as carriers. The government recently lifted the ban on transportation and consumption of poultry products including ducks after the affected areas were declared virus free.
No H7N9 AI virus in Indonesia
In order to prevent the spread of the H7N9 AI virus from China and other infected countries to Indonesia, the Ministry of Agriculture has analysed 864 samples taken from wet markets in Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi), North Sumatera and East Java. The results showed that 33.7% of the samples were positive for influenza matrix A, and 100% of the samples were negative for H7N9 virus.
Poultry market remains stable in India
The Southern Regional Disease Diagnostic Laboratory (SRDDL) has also notified that the outbreak of avian flu in Kerala is under control and is not likely to spread to any other states. Apart from the outbreak in Kerala, another outbreak of H5N1 was confirmed at Sukhna Lake, a popular tourist area in Chandigarh state, where 20 ducks died of H5N1. Health authorities culled all the 110 ducks in the lake and the entire area was sanitised. “Chicken and chicken products are safe and there has been no decline in consumption,” Ricky Thaper, Executive Committee Member of Poultry Federation of India told Asian Agribiz. While ducks in Kerala state are raised for commercial purposes, the ducks in Sukhna Lake are only for ornamental purpose.
|Jakarta to ban live poultry, pigs in the city|
[05 January 2015] For a better environment and the health status of the people living in Jakarta, Indonesia, the authorities have imposed a ban on the entry of live poultry into the city. Only fresh chilled and frozen chicken meat are allowed. Soon, the local government plans to also ban live pigs and ruminants from entry into the city “This will encourage the setting up of more pig slaughterhouses in pig production centres in Indonesia,” Alexander Kasim, General Secretary of the Indonesian Monogastric Association told Asian Agribiz. Mr Alexander, who is also owner of Adhi Farm, one of the largest pig farms in Central Java, hopes the government of Central Java responds to the news by helping pig farmers in the region set up slaughterhouses to produce frozen pork.
|China buying US grain again following GM corn approval|
[05 January 2015] Chinese buyers are ordering large shipments of US distillers’ dried grains (DDGs) following government approval of Syngenta’s MIR162 genetically modified corn, according to a Reuters report. China rejected more than one million tonnes of US corn and DDGs in 2014 because they contained MIR162 corn, which had not been approved by the government. On December 22, Syngenta announced that the variety, which farmers like because it protects against pests, had finally been approved. However, the news agency also reported that US exporters were demanding large down payments from buyers to protect themselves against possible unexpected problems with Chinese import regulations.
|Vietnam’s local authorities intensify influenza surveillance|
[05 January 2015] Vietnam’s Ministry of Health has urged all provinces and cities in the country to intensify measures against the spread of influenza viruses and diseases following reports of avian flu outbreaks in some localities, reported Vietnamplus. Earlier, the Ministry of Agriculture and Rural Development’s Animal Health Department said H5N1 was recorded in flocks in three communes of the Mekong Delta provinces of Tra Vinh and Vinh Long. Meanwhile, virus A/H5N6 affected quails in Tinh Ha commune and Son Tinh district, in the central province of Quang Ngai. The Ministry of Health urged local health departments to tighten supervision at communities and border gates and gear up for flu prevention and patient treatment.
|Malaysian farmers brace for low prices|
[05 January 2015] Chicken farmers in Malaysia are being forced to sell poultry below the controlled price of USD 1.31/kg due to a drastic drop in demand caused by the floods in the east coast. Jeffrey Ng, Federation of Livestock Farmers Association of Malaysia Secretary General, said about 3000 poultry farms nationwide were struggling to clear their ‘excess stock’ of birds. “Restaurants and eateries are essential markets for our members and since the floods, kitchens cannot operate, and the demand for poultry is very low,” he said. Yap Chau Hen, Selangor and Federal Territory Chicken and Duck Traders Association Vice-President, said some traders were selling birds for as low as USD 1.00/kg.
|Oman lifts poultry import ban from Vietnam, Nepal|
[05 January 2015] The Ministry of Agriculture and Fisheries in Oman has decided to lift the ban on importing poultry from Vietnam and Nepal. Minister of Agriculture and Fisheries Dr Fuad bin Ja'far Al Sagwani said a ministerial decision has been taken to lift the ban on importing live poultry, non-processed meat and chicken eggs from Vietnam. “Apart from this, we are also lifting the ban on importing live birds, their products, and their derivatives and offal from the Republic of Nepal,” he said. The decision to lift the ban was based on the recommendation of the veterinary authority.
|Hong Kong suspends live chicken sales|
[02 January 2015] Hong Kong has closed its live chicken wholesale market for 21 days and ordered the destruction of 15,000 birds following the discovery of chickens infected with the H7N9 bird flu virus. The virus was detected in birds imported from China, and the farm that supplied them will be banned pending results of an investigation. Only one-third of Hong Kong’s live chicken is imported, but the closure means all live sales are suspended since Hong Kong requires all live birds be sold through the wholesale market.
|MPEDA banks on genetically-improved tilapia|
[05 January 2015] Marine Products Export Development Authority (MPEDA) in India has set a target to produce around 1.2 million tonnes of genetically-improved farm tilapia fish, valued at about USD 1.2 billion in the next five years in Andhra Pradesh state. Chairman of MPEDA Leena Nair said that MPEDA is planning to organise more meetings on tilapia fish farming to enlighten farmers and said that increased production of tilapia can boost marine exports. According to her, China is the largest producer followed by Egypt and Indonesia. Production of this genetically-improved fish was 4.3 million tonnes in 2012 and is expected to reach 7.3 million tonnes by 2030.
|FLFAM extends aid to affected member farms|
[02 January 2015] Torrential rains has caused flooding in what has been called the worst floods in four decades in Malaysia. Jeffry Beh Secretary General of the Federation of Livestock Farmers Association of Malaysia (FLFAM) said it is too soon to give an assessment of the situation and to say how many farms were affected. “Right now the association is doing all it can for our members and to give them whatever assistance we can,” he said. “But demand is dropping. Today (31 December) prices at farm gate is USD 1/kg,” he said. Despite the year end festivities, consumers are eating simple food and are unable to go out and buy chicken because of the rains.
|Fast food outlets asked to ensure import of halal meat|
[02 January 2015] Punjab Food Authority in India has directed all franchised fast food outlets to ensure the use of halal meat, The Express Tribune said. “The directions were issued after the authority received several complaints that meat being imported by the food outlets was obtained through stunning,” a PFA official said. “The authority held a meeting under the supervision of its chairperson Aamer Raza Khan to discuss the issue. It was recommended that import and use of meat of stunned chicken, goat and cattle be banned.
|Poultry farmers in Japan fear avian flu pandemic|
[02 January 2015] The highly pathogenic strain of the avian influenza virus was confirmed at a poultry farm in Nagato, Yamaguchi Prefecture, following detection in Nobeoka and Miyazaki, both in Miyazaki Prefecture. The latest outbreak is the third this season, defined as October to May, and it is feared that it may develop into the first nationwide pandemic since 2010, when the virus brought about a massive plague among birds. “We have been reinforcing our sense of urgency much more than the usual year as the flu was spreading in South Korea. And now the fear is getting real,” said an official. “We’re now in a situation where a nationwide pandemic can be expected,” said Chief Cabinet Secretary Yoshihide Suga at a recent meeting among Cabinet members held at the Prime Minister's Office. He suggested the relevant bodies take all measures to deal with the situation.
|Vietnam increases efficiency and quality of dairy sector|
[02 January 2015] Vietnam’s Dairy Demonstration and Experimental Farm was officially launched in August 2013 as part of a memorandum of understanding on cooperating between Israel and Vietnam in the dairy sector. So far it has succeeded in increasing local milking efficiency and quality. Farms in Vietnam produce an average of 12l of milk per day, or 3500l/year, as opposed to the Israeli average of 13,000l/ per year. Although many dairy farmers in the Ho Chi Minh City region have been receptive to adapting changes, the process is slow and difficult, said Tran Thi Bich Nguyen, the Vice Director of the demonstration farm. It hopes to see the area’s farmers achieve 8000l per year for their milking cows.
|Avian flu surfaces in Taiwan, South Korea, Japan|
[31 December 2014] Various strains of both highly pathogenic avian influenza (HPAI) and low-pathogenicity H5 avian flu have been reported in birds in Taiwan, South Korea, Japan and Russia in recent days. The Taiwan outbreak, reported by OIE Dec 26, involves subclinical low-pathogenicity H5 avian flu in 20 ducks on a breeder farm housing 2,600 birds. In South Korea the case of avian flu is of an unspecified type and is the first case in the Seoul area this winter. In Japan, 42,000 chickens have been slaughtered on a farm in Miyazaki after confirmation of H5N8 avian flu there. It is the second outbreak of HPAI this year in Japan.
|Philippines’ inclusion in EU’s GSP+ list to benefit local tuna industry|
[31 December 2014] The Philippine tuna industry, an export winner, is expected to get a boost from the country’s inclusion in the EU’s Generalised System of Preferences Plus (GSP+) list, a report by the Philippine News Agency said. Richie Rivera, Executive Vice President of RD Group of Companies, a leading exporter, said that GSP+ would allow zero tariff entry of Philippine tuna to member states. However, he reiterated that only processed and canned tuna products caught by 100% Philippine-registered vessels would be eligible for GSP+ coverage. Industry sources said the inclusion of the Philippines in the EU GSP+ will mean an additional USD 15 million in revenue for local tuna exporters.
|Government licence ruling for meat shops, slaughterhouses|
[31 December 2014] The Food Safety and Standards Authority of India (FSSAI), under the Union Health Ministry, has announced that all meat shops and slaughterhouses should secure mandatory licences from the government to continue operations. In a notice to all food safety commissioners and secretaries of urban local bodies across the country, FSSAI said that licences from the civic bodies alone is insufficient.
|More H7N9 cases in China|
[31 December 2014] China has reported four more H7N9 avian influenza infections in the past week, three in Zhejiang province and one in a Hong Kong resident that had recently traveled to Guangdong province. Two of the Zhejiang province cases are a 57-year-old man who has been isolated and hospitalized and a 75-year-old who died from his infection. The third is a 20-year-old woman who had visited a farmers market a week before she got sick and is hospitalized in critical condition. The four new cases lift the global H7N9 total to 474 cases, according to a case list kept by FluTrackers.
|Agri dept assures enough pork, chicken supply|
[31 December 2014] Local production is enough to assure pork and chicken supply through the first quarter of 2015, Philippine Department of Agriculture Undersecretary Jose Reaño assured Filipino consumers. He noted that most retailers are selling these products at suggested retail prices (SRP), with some even selling at lower prices. He did say that price of pork belly has gone up beyond the SRP of USD 4.13/kg due in part to higher institutional demand that was affected by the port congestion and transport problems. However, supply is expected to grow and this will eventually bring down prices.
|Chinese officials dismissed due to tainted pork scandal|
[31 December 2014] China has dismissed eight officials after pork from pigs infected with a ‘highly contagious virus’ was found to have entered the market, the state media said. The country’s latest food scandal was revealed in an investigation by state broadcaster China Central Television which said the annual revenue of the tainted pork was more than USD 3.2 million. The meat had come from slaughterhouses in the city of Gaoan in central Jiangxi province and had entered at least seven provinces in total, said the report. “Some of the pigs had a highly contagious virus,” added the report, which contained grisly images inside slaughterhouses of scattered pig carcasses, many with their bellies cut.
|Processors continue reliance on imported meat |
[30 December 2014] Philippine meat processors continue to import meat as local livestock raisers prefer to sell their produce whole and live, a report by BusinessMirror said. Citing Dr Minda Manantan, National Meat Inspection Service Executive Director, the report said European countries supply most of the raw material. The Bureau of Animal Industry reported that in the first eight months of 2014, the country imported 342,470 tonnes, with pork accounting for about 157,336 tonnes. Jess Cham, President of the Meat Importers and Traders Association of the Philippines told Asian Agribiz that “local meat processors have offered to issue blanket purchase orders to local hog raisers, but nobody takes them up on it.” With the meat processing sector steadily growing, Dr Manantan said the government and local animal producers should align their production to meet the needs of local processors.
|Fast Food Indonesia to open 65 new KFC outlets |
[30 December 2014] Fast Food Indonesia, franchise holder for the KFC brand in Indonesia, plans to open 65 new outlets within and outside Java to tap into the country’s growing food retail market. Gandhi Lie, Business Development Manager, said the company would spend USD 16 million to open 45 new standalone outlets and USD 3.2 million to set up 20 KFC Box outlets. Mario B Ledres, Finance and Administration Manager, estimated that the growth would help the company reach between 10-14% sales growth in 2015, outperforming the industry growth. Fast Food Indonesia currently operates 476 outlets across the country, over 400 of which are wholly owned.
|Egg price drops with cold weather, oversupply|
[30 December 2014] Egg price in Thailand has dropped as supply has risen. Boonyarit Kalayanamit, Director-General of the Department of Internal Trade (DIT), said egg price is now at its lowest, with farmgate price of wholesale egg at USD 0.07, down from USD 0.94 earlier in the year, and it is expected to fall further. Cold weather is among the factors encouraging better output while demand for eggs has declined with the holiday season. Sources said some farms even sell their eggs at USD 0.058.
|Jakarta to invest in cattle breeding in East Nusa Tenggara|
[30 December 2014] The city administration of Jakarta, Indonesia has signed an MoU with the East Nusa Tenggara (ENT) administration to invest in cattle breeding to meet Jakarta’s demand of 150 tonnes of beef per day. According to Darjamuni, Jakarta’s Maritime Affairs and Agriculture Agency Head, the city will provide cattle for ENT farmers and develop quarantine facilities and slaughterhouses. Mr Darjamuni explained that the calves produced would be owned equally by the city administration and the cattle breeders. Mr Darjamuni said the city administration would also cooperate with city-owned firms Dharma Jaya and Pasar Jaya. “Dharma Jaya will operate the slaughterhouses while Pasar Jaya will be responsible for the distribution of the meat in Jakarta,” he said, adding that the investment could range from USD 800,000 to USD 1.6 million.
|Thai food exports forecast to reach USD33b in 2015|
[30 December 2014] Thailand’s National Food Institute (NFI) forecast that the country’s food exports would reach around USD 33 billion next year, thanks to growing economies in Asia including China and Asean countries, said President of the NFI Petch Chinabutr. For 2014, NFI estimates food exports to reach a record high of USD 30.7 billion, up 15.4% from last year and above the earlier target of USD 29.8 billion. Chicken, rice, tapioca, canned pineapple and seasoning are among export products with high growth.
|Herbal supplement helps spent hens produce quality eggs|
[29 December 2014] Luheng Marketing Sdn Bhd, a Malaysian company developing herbal-based supplements for the agriculture industry, said it is able to reverse the egg size and quality of spent hens. According to its Director Chow Khay Hoong, hens aged 70 weeks and above often produce large eggs. “But we are able to bring down the size,” he told Asian Agribiz. Luheng opened its show farm using spent hens bought from local integrator. Besides better quality eggs, the farm is also able to save about 10g in feed consumption. The herbal concoction makes the birds healthier and they tend to consume less feed, said Mr Chow.
|Vietnam exports USD 4 billion worth of shrimp in 2014|
[29 December 2014] Vietnam’s Ministry of Agriculture and Rural Development reported that its agriculture sector earned USD 30.86 billion from exports this year, a year-year increase of 11.2%. Shrimp made the largest contribution at USD 4 billion, a 28% growth over the previous year, the highest value so far. The US remains the biggest importer of Vietnamese shrimp. Meanwhile, tra fish contributed around USD 1.8 billion to the country’s total export value, a rise of 5.8% against a year earlier. It makes up 21.8% of total seafood exports. The EU and the US are leading importers of the product.
|Angel investors back food delivery service |
[29 December 2014] Angel investors have contributed USD 1.6 million to a WeChat-based food delivery start-up in China called Call a Chicken. The food delivery service based in Chengdu offers chicken-based dishes prepared by renowned chefs and cooked with fresh meat, for home delivery. According to Sina Tech, investors are buying into Call a Chicken because they believe in the business model, but they have also chosen this specific start-up to support because of China’s culinary tastes. Spicy Sichuan food – which the start-up specialises in – is a popular cuisine all over the nation, and investors believe the potential market is massive.
|Brazil may challenge Indonesian rulings|
[29 December 2014] Brazil may step up its fight at the World Trade Organisation against Indonesia’s poultry import rules after a recent consultation failed to provide a definitive answer, a trade official said. Indonesian Trade Ministry’s Director General for International Trade Cooperation, Bachrul Chairi, said Brazil might formally request the establishment of a dispute settlement panel under the remit of the global trade governing body to address its complaint. Indonesia’s rulings include requiring importers to register, granting special import licenses and tightening up examinations of inbound animal shipments.
Coming up in Asian Meat Magazines, January 2015
[29 December 2014]
Imported meat gains acceptance in varied sectors
With the rise of globalisation and freer trade, many countries in Asia have seen a spike in frozen meat imports. While a small albeit growing portion makes it onto home dining tables, the Horeca (hotels, restaurants and catering) sector takes a choice portion for its restaurants and cafes, while the further processing sector takes a large chunk for its sausages and deli products, ISA Q TAN and the ASIAN AGRIBIZ report.
Japfa parks USD 10m for Holstein feedlots in China
Demand for safe dairy products has exploded in China, and so has demand for a safe, consistent beef supply. Indonesia’s Japfa group has been a pioneer in the dairy industry, with its AustAsia subsidiary one of the first to develop large-scale Holstein dairy farms in China. Now it is leveraging its dairy operation to become a leader in beef production, too, writes RICHARD HERZFELDER.
MeatLovers keep it fresh online
Buying meat online in Singapore is no longer a novel thing. With the click of a button meat can be ordered, paid for and delivered to homes. More and more companies are offering this service via butcher shops or direct from processing plants dedicated to this type of business - meatlovers.com.sg, is one such e-commerce business offering on-time delivery, fresh products and an informative, easy-to-navigate website, RACHAEL PHILIP writes
FRESHmart sets trend with safe meat retail
A pioneer in chicken meat retail in West Kalimantan, FRESHmart is a one-stop retail outlet offering hygienically-slaughtered chicken meat in a clean and comfortable atmosphere, writes ARIEF FACHRUDIN.
|FMD detected in Chinese pig herd|
[24 December 2014] Incidents of foot and mouth disease (FMD) have broken out among pigs in several Chinese provinces, industry sources told Asian Agribiz. Mortality has been high on some farms because they are not large enough to isolate sick animals, according to one well-placed source. In November rumours of an outbreak in central Henan province surfaced in media reports, but there has been no official confirmation to date. Industry sources confirmed that cases of porcine FMD in Henan and several other provinces. China suffers frequent low-level FMD outbreaks, and it is not yet clear if the current outbreak will seriously affect production or prices.
|Japfa’s outlook rating revised to negative|
[24 December 2014] Indonesia’s credit rating agency Pefindo has revised the corporate rating outlook of Japfa Comfeed Indonesia, to negative from stable. This is in view of the weaker-than-projected capital structure and cash flow protection measures as a result of pressure on the company’s profitability margins. In the first nine months of 2014, the company’s main business segment including DOC and commercial farming reported lower-than-expected operational results. Its DOC segment reported operating loss of USD 5 million, while its commercial farming segment booked minimal operating profit at USD 755,000. In the same period last year, the operating profits of DOC and commercial farming were USD 37 million and USD 20.3 million, respectively.
|Seven H7N9 cases reported in China|
[24 December 2014] Hong Kong’s Centre for Health Protection reported seven more H7N9 avian influenza infections—four of them fatal—in three different provinces in China. The statement said four patients are from Xinjiang, two from Zhejiang, and one from Jiangsu. The four fatalities were from Xinjiang and Jiangsu.
|MPEDA aims for 1.2mt of tilapia production|
[24 December 2014] Marine Products Export Development Authority (MPEDA) in India has set a target to produce around 1.2 million tonnes of Genetically Improved Farm Tilapia fish, in the next five years in Andhra Pradesh state. Chairman of MPEDA Leena Nair said the authority is planning to organise more meetings on tilapia fish farming to enlighten farmers and said that increased production can boost marine exports. According to her, China tops the world followed by Egypt and Indonesia in Tilapia farming. Production of this genetically improved fish was 4.3 million tonne in 2012 and is expected to reach 7.3 million tonnes by 2030.
|Oman ministry bans poultry imports from Kerala |
[24 December 2014] Minister of Agriculture and Fisheries in Oman Dr Fuad bin Ja'far Al Sagwani has issued a ministerial decision to ban the import of live birds, their products, their derivatives and offal from the state of Kerala in India. Apart from this, the ministry has also banned import of poultry and poultry products from the United Kingdom, Netherlands, South Korea, North Korea and Germany. The decision was based on the recommendation of the competent veterinary authority to ban the import of live birds, their products, their derivatives and offal from some countries.
|Seafood exports reach USD 7.9 billion in 2014|
[23 December 2014] Vietnam will hit USD 7.9 billion in the value of seafood exports for 2014 due to high growth in key products. General Secretary of the Vietnam Association of Seafood Exporters and Producers, Nguyen Hoai Nam said the world market had seen recovery, and sales of seafood products has risen more than other types of food. Meanwhile, Vietnam maintained stable and high quality seafood supplies, as the nation was estimated to gain a year-on-year increase of 18% in seafood export values for this year, rising to USD 7.9 billion. The value of shrimp exports in 2014 was expected to reach 22% year-on-year, surging to USD 3.8 billion, while the value of tra fish exports would be USD 1.8 billion, he said.
|Brazil steps up dispute with Indonesia|
[23 December 2014] Brazil is ramping up efforts at the World Trade Organisation to resolve a long-standing dispute with Indonesia, which has placed restrictions on the South American country’s chicken exports. “First we notified the WTO (regarding setting up a panel to adjudicate the dispute) and in Geneva we presented our objections, more than 100, to the legislation they’re enforcing,” Ricardo Santin, Vice President of the Brazilian Animal Protein Association (ABPA) said. Indonesia imposed the trade barriers due to outbreaks of foot-and-mouth disease in Brazil and they have not been lifted even though international organisations have certified that the country is free of that viral infection. In a statement, ABPA President Francisco Turra said Brazil’s meat sector expects the panel will be set up between February and March unless Indonesia opens its market before then.
|Jeil Holdings tagged as preferred bidder for Pan Ocean|
[23 December 2014] A unit of South Korean poultry firm Harim Group said a court chose its parent’s holding company Jeil Holdings Co Ltd as the preferred bidder to buy bulk shipper Pan Ocean Co Ltd in a deal worth at least USD 771 million. Pan Ocean, South Korea’s largest bulk shipper was spun off from now-defunct shipbuilding conglomerate STX Group and entered court receivership in June last year. Harim Group, which supplies animal feed, pork and poultry products, said in a statement earlier it had turned in a binding bid for Jeil Holdings to acquire the shipper in order to enter the international grain distribution business.
|New FMD outbreak in South Korea|
[23 December 2014] South Korea has reported a new outbreak of foot and mouth disease, the first in three months. The South Korean veterinary service sent an notification to the World Organisation for Animal Health (OIE) in early December. The outbreak at a farm in North Chungcheong province (Chungcheongbuk-do) in the centre of the country claimed 30 of the 15,884 pigs on the farm. Another 574 were destroyed, reported the Cattle Site.
|Shortage of supply of fish leads to higher prices |
[23 December 2014] The monsoon season in Malaysia has led to a shortage of fish, and the repercussions are being felt in Singapore. Vendors in local markets said that the shortage of fish from Malaysia has led to an increase in prices - from an average of USD 3.03/kg to USD 5.31. Fish seller Leung Teng Foo said, “The supply has decreased by 30 % in the past few days. Fewer fishermen are heading out to fish due to strong winds and heavy rain.” The vendors believe that the Malaysian government is worried that it might not be able to meet domestic demand and is cutting down on fish exports.
Vietnamese importer sells fresh Australia beef
[23 December 2014] A Vietnamese company has started selling Australian beef and buffalo meat directly from its abattoir to local consumers in Hai Phong. Animex has imported around 75,000 head of cattle from Australia since 2012, and this year has also imported about 5000 buffalo. The company is now delivering Australian beef and buffalo meat to a handful of supermarkets around Hai Phong and Hanoi.
|Cargill Vietnam remains optimistic over local feed industry growth |
[22 December 2014] Cargill Vietnam’s Binh Dinh plant recently increased its capacity by four times, from 60,000 tonnes to 240,000 tonnes. According to Jorge Becerra, Managing Director, while the industry is relatively young it is also one of the most promising markets in the region, and this is driving the company’s optimism in Vietnam. “Vietnam has a strong and consistent GDP growth as well as a young population base, where the median age is just around 29 years, indicating that we will see continued and growing demand for animal protein. Meat consumption in Vietnam almost doubled from 16.7kg per capita in 2001 to 32.8kg per capita in 2011, and is projected to hit 35kg per capita by 2020,” he told Asian Agribiz.
|Russia approves four plants for beef imports from India|
[22 December 2014] Russia’s Rosselkhoznadzor or Federal Service for Veterinary and Phytosanitary Surveillance has included four Indian plants producing buffalo meat for imports. It is learnt from the Rosselkhoznadzor website that the announcement was made by authorities earlier this month close on the heels of Russia allowing import of buffalo meat from India. The plants are Fair Exports Pvt Ltd, Frigerio Conserva Allana Limited, Frigorifico Allana Limited and Amroon Foods Pvt Ltd. All these firms have the approval to export beef to Russia with effect from December 5 2014. Meanwhile, SKM Egg Products Export (India) Limited continues to be the only Indian exporter of egg and egg products to Russia.
|Brazil’s BRF signs JV deal with Indonesia’s Indofood|
[22 December 2014] Brazil’s top poultry processor BRF has signed a joint venture deal with Indonesia’s Indofood Suskes Makmur to invest USD 200 million in its poultry and processed foods, the company announced as quoted by Meatingplace. BRF and Indofood will each carry a 50% stake in the JV, with plans to invest roughly USD 200 million together over the next three years. The deal represents BRF’s first foray into Indonesia, a market with more than 250 million people and major growth potential. BRF said it would provide its insight into the poultry and ready foods processing business, while Indofood will contribute its market access and distribution networks.
|Thai shrimp industry has turned the corner|
[22 December 2014] Thailand’s shrimp industry is expected to recover now that the epidemic of early mortality syndrome (EMS) has eased. The Bangkok Post reported that farmers have been successful at adjusting their farming methods to curb the virus. The Thai Shrimp Association forecast Thai shrimp production would recover between 250,000-300,000 tonnes in 2015, with exports of 180,000 to 200,000 tonnes. “Prices are expected to remain stable next year as global demand for shrimp is large,” said President Somsak Paneetatyasai. He added that the industry was expected to end the year with production of only 230,000 tonnes due to EMS, with exports of only 150,000 to 160,000 tonnes. Before the disease Thailand produced 500,000 to 600,000 tonnes of shrimp annually.
|South Korea bans poultry imports from US|
[22 December 2014] South Korea has banned all imports of all poultry products including live birds, from the US following an outbreak of a highly pathogenic avian influenza at one of its chicken farms. The ban affects inbound shipments of any live birds and eggs, as well as poultry products that have not been heated over 30 minutes at a temperature of higher than 70 degrees within the past 21 days, the Ministry of Food, Agriculture, Forestry and Fisheries said. South Korea imported 62, 595 tonnes of chicken through November, more than the 44,129 tonnes for the whole of last year.
|SurePure launches commercial trials with dairy producers in India |
[22 December 2014] SurePure Inc, a global leader in liquid photo-purification, has announced that commercial trials with key dairy players in India are in progress. The commercial trial was made possible after Food Safety and Standards Authority of India gave the necessary approval for the use of SurePure’s proprietary photo-purification technology. It may be noted that this technology is an alternative to thermal pasteurisation for milk and other dairy products. “We believe that SurePure brings a cutting-edge milk processing alternative to India. The robust SurePure technology retains the integrity of milk while delivering milk in its most nutritious form to the consumers,” said Guy Kebble, CEO of SurePure.
|Philippines look at possible ham shortage over Christmas |
[19 December 2014] A new truck ban in one of the major roads in Metro Manila could lead to a shortage of ham and other meat products that are staple fare on many Filipino dining tables during the Christmas season. Mr Jess Cham, President of the Meat Importers and Traders Association Inc, said the total truck ban on Roxas Boulevard, which is used by 30% of port-related trucks, will result to delays in delivery of cargo. There will be “shortage in steak, ham and pork belly,” the cargo of many of the ships currently berthed in the Manila port. It is unlikely that these will be delivered by Christmas, Mr Cham told Asian Agribiz, adding that since the start of the year, truck bans have led to a 5-20% mark up in prices since the beginning of this year. He said prices are likely to be high in January also, since the long holidays that will begin next week will “result in another logjam.”
|Avian flu to put a damper on global poultry trade in 2015|
[19 December 2014] Global issues such as avian flu and trade restrictions will remain on the horizon for 2015 and will have a big impact on global poultry trade, a Rabobank report stated. Regions affected by avian flu outbreaks such as the EU, Canada, India and Egypt, East Asia and Mexico will continue to suffer from economic damage and temporary lost export markets. “A key concern for the coming months is the spread of avian flu, which has become a global issue in recent months. Several avian flu strains are already endemic in several parts of Asia and Mexico, and the disease is increasingly spreading globally via wild birds,” explained Rabobank’s Nan-Dirk Mulder. However, the report noted that despite the impact of the disease on international markets, margins look healthy in strong markets and especially with low feed prices. Global poultry trade prices are expected to remain stable after declines in recent quarters.
|First consignment of Thai pork bound for Russia|
[19 December 2014] Thailand’s first ever shipment of pork has left for Russia. Its Agriculture Minister Pithipong Pheungboon Na Ayutthaya said it opens doors for Thai products in the Custom Unions comprising Russia, Kazakhstan and Belarus, which is home to around 180 million people. Russia is currently keen on securing its food source from non-traditional countries following a ban by the EU and the US. The Acting Director General of the Department of Livestock Development Ayuth Harintaranon said Thailand hopes to export 60,000 tonnes of pork to Russia annually while Russia’s demand is forecast at 1 million tonnes a year. Adirek Sripratak, President and CEO of Thailand’s Charoen Pokphand Foods, said the Russian market benefits the local pig industry.
|Poultry breeding companies have to implement national standards|
[19 December 2014] Indonesia’s Ministry of Agriculture recently announced that all poultry breeding companies in the country must implement the Indonesia National Standard (SNI) in producing broiler and layer DOC. The Ministry’s Director of Livestock Breeding, Abu Bakar, said there are three criteria that have to be implemented by the companies. “By implementing the SNI, we hope national DOC standards will increase. And we also hope that there are no more complaints from farmers regarding DOC quality,” said Mr Abu adding that the directorate is committed to monitor the implementation.
|Indonesia to export poultry products to Singapore|
[19 December 2014] In a recent forum between Indonesia and Singapore, the two countries have agreed to strengthen trade in the face of Asean Economic Community 2015. Specifically for agriculture, Indonesia will have the opportunity to export its poultry products to Singapore. Emilia Yusni Harahap, Director of Agriculture Products Processing and Marketing, said: “Singapore has opened their markets to our poultry products. We believe that we can meet all their requirements on quality and food safety.” Among the items that will be exported include nuggets, sausages, yakitori and karaage, and salted eggs. “The market potential in Singapore is higher than Japan,” said Mrs Emilia, adding that three Indonesian poultry companies were recently allowed by the Japanese government to export their processed chicken products to Japan. “Singapore imports 70% of their total need of chicken meat. So this is a good market potential.”
|High Court warns of meat ban in Chennai|
[19 December 2014] The Madras High Court in the state of Tamil Nadu has warned Chennai Corp that it will impose total ban on sale of meat in Chennai if the state-of-the-art slaughterhouse is not brought into operation immediately. The Court said that it will not permit the present situation to prevail where slaughtering is done in an unhygienic manner at the local slaughterhouse “even if it means completely banning the sale of meat in Chennai”. The modern abattoir is said to be a non-starter even three years after completion of works, and the Court’s order is based on a public interest litigation filed by one K Gafoor Basha. On average 2000 goats and 500 cows are slaughtered every day to supply 20,000kg of meat.
|Philippine poultry industry looks bullish in 2015|
[18 December 2014] Things are looking up for the Philippine poultry industry, with some USD 11.2 million worth of investments to be poured in, the Philippine Department of Agriculture (DA) said. DA Undersecretary Jose Reaño said the bulk of the investments would be coming from local players, although he declined to name the investors. Some of the investors, he said, have already started the projects, most of which will be located north of Metro Manila. In addition, a foreign investor is expected to pour in more than USD 22 million for a poultry project, but Mr Reaño gave no further details. Meanwhile, a local poultry player told Asian Agribiz that although it is likely “there will be some opposition from the smaller poultry producers, they cannot stop foreign investors from coming in unless they violate Philippine laws”.
|Indonesia to reduce broiler DOC production in 2015|
[18 December 2014] Indonesian Poultry Breeders Association has predicted that broiler and layer DOC production in 2015 will record a significant increase. Its Vice Chairman, Wahyu Nugroho, said broiler DOC production this year is predicted to reach 2.2 billion DOCs, an increase of 10% from the previous year. Layer DOC production, meanwhile, is predicted to increase 30% to 159 million DOCs. However, according to Dr Desianto Budi Utomo from the Indonesian Poultry Society Federation, industry players have agreed to reduce the production of broiler DOC in 2015 by 20-30% to control the supply of broiler DOC, which had reached 55-60 million DOCs/week while demand only stood at 44-45 million/week. This oversupply situation has affected the price of live birds this year and made many small- and medium-sized farmers collapsed. Industry players hope that with supply under control, the price of live birds will escalate.
|Kerala lifts ban on poultry products|
[18 December 2014] Indian state of Kerala has lifted the ban imposed on poultry products exactly a week before Christmas. State Agriculture Minister K P Mohanan informed the assembly yesterday that the ban was imposed last month after an avian flu outbreak in 13 villages in three districts was confirmed to be due to H5N1 virus. According to him, normalcy has returned in the affected places causing the ban to be lifted. Duck meat is a major product in most Christian households during Christmas, and with the ban lifted, ducks will now be allowed to be brought in from neighbouring state of Tamil Nadu.
|Avian influenza confirmed in Chandigarh|
[18 December 2014] Avian influenza H5N1 has been confirmed in one of the 30 domesticated ducks that died in Sukhna Lake in Chandigarh, according to animal husbandry officials. According to reports, test on five of the dead ducks were carried out by the National Institute of High Security Animal Diseases in Bhopa, and avian flu was confirmed in one of the samples. Local authorities have stepped up necessary measures to contain the avian flu. The 100-plus ducks in the lake that has been isolated is expected to be culled shortly, as per the guidelines.
|Mutton takes off in northern China|
[18 December 2014] Supermarkets in China are seeing brisk trade in packaged mutton for hotpots. Wholesale market vendors in the south-westerly city of Chongqing are quoting a jump of USD 0.32-0.48/kg in freshly butchered lamb prices to an average of USD 11.30/kg with a shortage of lambs and mountain goats blamed by traders at the Xiao Long Kan market in the city. Chongqing gets its supply from herds in neighbouring Gansu province where the government is providing close to USD 200 million in subsidies to create 35 farms in three cities with advanced breeding and fodder, due to be completed end 2015.
|Tra fish export to US down due to antidumping tax|
[18 December 2014] Vietnam’s tra fish export turnover to the US was recorded at USD273.3 million in the first 10 months this year, down 16.2% over the same period last year, reported the Vietnam Association of Seafood Exporters and Producers and the General Department of Vietnam Customs. High antidumping tax rates imposed by the US have made several businesses limit the fish export to this market. Despite of a reduction in volume, average export price increased nearly 4%. The US is the second largest importer of Vietnamese tra fish after the EU, accounting for 18.7% of the total export turnover.
SPECIAL ASIAN AGRIBIZ REPORT: Pork retailing diversifies
[17 December 2014] Fresh warm pork is still the preferred choice for a majority of consumers in the region. But the last few years have seen a segment of society opting to buy meat chilled and in the comfort of modern retail outlets, especially in Southeast Asia and China. The Asian Agribiz team look at the different ways pork is now available in the region and what is fuelling the shift. (A detailed story will be published in the January 2015 issue of Asian Pork Magazine.)
Modern trade boosts acceptance of chilled, frozen pork
The increase in the number of supermarkets has given rise to the availability and acceptance of chilled and frozen pork. Pork sold in modern retail outlets now account for about 15-25% of total pork meat sales in most countries in the region. Not just in urban areas, supermarket and meat shop chains are furthering their expansion even into rural areas. Fully integrated companies like Thailand’s Charoen Pokphand Foods and Betagro, the Philippines’ San Miguel Foods Inc and Malaysia’s AA Meat Shop Sdn Bhd, to name a few, are bringing their chilled and frozen pork meat out of town, and closer to more consumers. Modern pork retail is also on the rise in China as hypermarkets, supermarkets and cold chain logistics reach into growing cities across the country and even into rural areas. With wealthier consumers demanding improved safety, nutrition and taste, the market is working to develop packaging and branding to provide premium products.
Fresher, safer alternative to warm meat
Food safety is a big factor leading to greater acceptance of frozen and chilled meat. A growing number of consumers are aware that frozen and chilled meat is safer and fresher than warm meat, because quick freezing happens immediately after slaughter, minimising and halting bacterial growth. Jess Cham, President of the Meat Importers and Traders Association in the Philippines, told Asian Agribiz that the Codex Alimentarius, a collection of internationally recognised standards for food production and food safety, defines fresh as meat that, except for refrigeration, has not been subject to any processing and still retains the quality of freshness. He added the quality of freshness includes physical qualities like texture, smell and colour among others, and microbiological qualities that define the amount of bacterial colonies per gram. “You can only control the bacterial population by keeping the meat cold,” said Mr Cham.
Premium products on the rise
Rising incomes makes for stronger demand for pork. One quick growth segment is the premium product category. In Thailand, food processing giants Charoen Pokphand Foods (CPF) and Betagro have responded to consumers’ demand, and now offer hygienic pork under their labels CP and SPure pork respectively. In addition, CPF has launched its Kurobuta pork and is now expanding its marketing channel for this top-grade meat, which is known for its softer, marbled meat traits. Meanwhile, AA Meat Shop Sdn Bhd, which operates the An Xin Healthy Meat Shoppes in Malaysia, has also introduced its Kurobuta range, which now complements its other signature brands including Pearl Pork, Free-Range Pork and HyPork. In China, meanwhile, Jingqishen offers to the high-end market what it calls Hill Black Pig, which it claims is grown for one year using no medicines or artificial growth stimulants. These products are all priced higher than ordinary pork meat.
Value-added products lure consumers
Pork producers have upped the ante by offering consumers convenience through value-added pork products. These include marinated, ready-to-cook and cooked products. They report that demand is on the upswing. Dr Robert Lo, owner of Fresh Options, one of the fastest growing meat companies in the Philippines, told Asian Agribiz that from contributing only about 5% of sales just three years ago, these value-added lines now account for about 15% of total sales. In Thailand, CPF is also selling ready-to-cook marinated pork in three flavours. “These products are a solution for consumers who want quality, convenience and delicious food,” Vittavat Tantivess, CPF’s Executive Vice President for Marketing, said adding that sales was expected to hit USD 9.13 million this year. He also said that the marinated raw meat market in Thailand is valued at around USD 54.8 million, of which CPF holds a 50% market share.
Aiming straight for consumers
Some pork producers in Malaysia have gone the direct route from farm to consumers, driving home the point they are able to manage the whole chain from feed to farm and fork, guaranteeing the safety of their products. AA Meat Shop Sdn Bhd, which operates the An Xin Healthy Meat Shoppes, gets its pork from sister company Chau Yang Farm, which by yearend will be supplying 100% of its produce to An Xin shops. The Long Farm Meat retail outlet, which opened its first outlet in 2008, is another retail outlet that is linked to pig farms. The company is currently working on developing a line of pre-packed fresh meat for greater convenience for its customers. For its part, Sanbanto Cafe and Fresh Meat, operated by Ng Beng Tee Group, takes it one step further by combining retailing with dining. The outlet sources its products from the group’s 16-year-old farm Landyork Farming.
|H5 outbreaks sicken nearly 1000 birds in Vietnam |
[17 December 2014] The Department of Animal Health in Vietnam reported three outbreaks of the highly pathogenic H5 avian influenza affecting nearly 1000 birds. The first outbreak, which began in late November in Vinh Long province, saw 160 birds die from the disease in Tra On village. The remaining 120 birds were destroyed. A second outbreak, which began early in December in the village of Cau Ke in Tra Vinh province, killed 100 of 177 susceptible birds. The remaining 77 were destroyed. The third, which also began early this month, this one in Cau Ngang in Tra Vinh, caused 500 fatal cases in birds of 750 susceptible. The remaining 250 were destroyed. The total cases numbered 987, with 760 deaths, among 1207 susceptible birds. Control measures have included stamping out and disinfecting the affected premises.
|Bird flu virus hits Japan, 4000 chicken culled|
[17 December 2014] Authorities in Japan have ordered the slaughter of some 4000 chicken after confirming bird flu virus at a farm in the southwest region of the country. DNA tests confirmed the H5 strain of the virus at a farm in Miyazaki after its owner reported more than 20 sudden deaths among his poultry. “We confirmed at least three of the chicken tested positive for the virus. The Miyazaki government has already started culling all the chicken at the farm,” a ministry official said. This is first confirmed outbreak of bird flu at a Japanese poultry farm since April. Some wild birds that were found dead in southwestern Japan tested positive last month. Authorities in Miyazaki prefecture, on Kyushu island, have locked down the affected farm and nearby farms, with the movement of chickens banned while the areas are being sanitised.
|Poultry firms see net profit plunge this year|
[17 December 2014] Analysts predict that publicly-listed poultry companies in Indonesia will end the financial year with a deflating annual income due to slumping prices on the back of DOC oversupply, a condition that is expected to continue into early next year before demands start bouncing back. Herman Koeswanto, Mandiri Sekuritas Analyst, said the last quarter of this year remained challenging for poultry firms, which he projected to book lackluster financial performance by yearend, given slow recovery in product prices. He listed four main factors in deflating the companies’ income, which are continuing oversupply in the country’s poultry market, low demands in the start of the fourth quarter, currency depreciation as well as fuel-price hikes, which lowered consumers’ purchasing power. Many listed poultry firms such as Charoen Pokphand Indonesia, Japfa Comfeed Indonesia and Malindo Feedmill recorded significant year-on-year decline in their net profit as of the third quarter of 2014.
|Anil Nutrients expands capacity with 3rd feed plant|
[17 December 2014] Speciality cattle feed manufacturer Anil Nutrients Limited, part of Anil Group has announced that it will be setting up its third manufacturing unit at an outlay of USD 110 million. Announcing this, Amol Sheth, Chairman and Managing Director of Anil Group, said this is part of the group’s plan to expand its present capacity. “We have planned to introduce new cattle feed products so that we can tap the vast potential in this segment,” Mr Amol Sheth said. According to him, investment in the third manufacturing unit will be done in a phased manner over the next three to four years. Anil Nutrients is eyeing a turnover of USD 235 million when the new facility becomes fully operational in 2020.
|Russia opens doors to milk and dairy products from India|
[17 December 2014] A week after Russia allowed import of buffalo meat from India, it has now opened doors for import of milk, cheese and other dairy products from India. Western sanctions on Russia over its role in the Ukraine crisis resulted in Russia banning fruits, vegetables, meat, fish, milk and dairy imports from the US, EU, Australia and Canada. This in turn has opened up a plethora of trade opportunities for India, which is a strategic partner with Russia. “India has the potential to export dairy items worth USD 400 million in the first year itself, and it is likely to go up multifold subsequently,” Ajay Sahai, Director-General and CEO of Federation of Indian Export Organisations, said.
|CP Indonesia helps increase poultry production in North Maluku|
[16 December 2014] Charoen Pokphand (CP) Indonesia recently conducted a broiler technical seminar in North Maluku, to help increase the productivity of farmers, said Dr Syahrir Akil, General Manager Regional Head Office, Eastern Indonesia. He said that local production of broilers and also eggs should be increased so that consumers will get fresher quality products. Dr Syahrir revealed to Asian Agribiz that each month North Maluku imports around 10 containers of frozen chicken meat (around 150 tonnes), and 3 containers of eggs (around 220,000 eggs) from Surabaya, East Java. Local production of broiler and egg per day, meanwhile, only touch 2000 birds and 4000 eggs respectively. “With a total population of around 1.2 million people and the availability of farmland, the potential of poultry production in the province is promising. We will continue to upgrade the farmers’ capacity and ensure the adequate supply of DOC and feed,” said Dr Syahrir.
|Adhi Farm to produce frozen pig semen|
[16 December 2014] Adhi Farm, one of the largest pig farms in Solo, Central Java, plans to produce frozen semen in 2015. Owner Alexander Kasim told Asian Agribiz that this year it had set up a centre for artificial insemination (AI) and prepared good quality boars to produce the frozen semen. “There are only some equipment like filler and centrifuge that should be equipped to the lab for the production,” he said. Adhi Farm has also cooperated with a professor at Bogor Agricultural University and it plans to cooperate with AI experts from the livestock AI centre in Bali to train its staffs. “The semen will be sold to pig farmers with affordable prices. We hope this initiative will help increase the genetic quality of pigs of the farmers,” Mr Alex said.
|Vietnam swine development plan sees lacklustre growth|
[16 December 2014] Vietnam’s five-year plans to increase on-farm pig inventory and total carcass weights are showing lacklustre results. In 2011 the total pig population was 27.06 million pigs nationwide, the estimated total for 2014 fell to 2.7 million, however, for 2015 the sector is expecting 27.1 million on-farm pigs. Average annual growth reached 0.04% per year, but the total is 17.88% below what was planned for the five years. The lower number versus the target is due mainly to recent poor market pig prices. Several farmers have quit or reduced inventory, many large scale farms have been affected by the reduction in the herd that takes place because of devastating diseases such as PED and PRRS. Total pork supply increased by 2.12% per year. In 2011, meat production reached 3.09 million tonnes; in 2013 it was roughly 3.22 million tonnes and is estimated to be 3.29 million tonnes for 2014. The plan is to reach 3.37 million tonnes for 2015.
|QL fails in takeover bid of Lay Hong|
[16 December 2014] After failing in a takeover bid of poultry integrator Lay Hong Bhd, as it has not received more than 50% of acceptances at the cling date of the offer last week, QL Resources Bhd said it will continue to seek other avenues to protect its interest in Lay Hong. QL Resources had only managed to secure 38.19% stake of the company by November. QL Resources said it would return all Lay Hong shares to the respective holders who had accepted its offer. “Going forward we will continue to seek avenues to protect our interest, including writing in to Lay Hong to request for boards representation especially now that QL is the single largest shareholder in Lay Hong,” Executive Director Chia Mak Hooi told StarBiz.
|SugarBun rolls out chicken fillet meals|
[16 December 2014] SugarBun, a popular quick-service restaurant in Kuching, East Malaysia, launched its latest product innovation called the Chunky Boneless Chicken Meals in conjunction with the year-end festivity and New Year celebrations. The meals consists of two pieces of crispy whole chicken fillet drizzled with specially prepared Pedas or Teriyaki sauce, served in both Asian and Western styles. Go Asian with Savoury Rice and Fresh Pickles or Western with French Fries and Coleslaw. Each meal is sold for USD 3.29 per serving. There are 55 SugarBun outlets in Kuching.
|MLA shuffles international marketing offices|
[16 December 2014] Meat and Livestock Australia (MLA) is rationalising its international marketing offices. As part of its 10% cut to the research and marketing corporation, Richard Norton, MLA Managing Director, said he’s questioning the cost of flying staff around the world. MLA will create an Asian hub, like it has done in the Middle East. The International Business Managers in Asia could see Michael Finucan, who is in South Korea, also take on responsibility for China, Hong Kong and Taiwan. Andrew Simpson, who is currently the regional manager for China, would move to Singapore, and be responsible for Southeast Asia and the sub continent, covering Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, Burma and India. The regional manager in Indonesia, John Ackerman, has resigned, and a new role will be created, focussed on technical issues affecting market access. “We’re heading in the right direction, trying to utilise the skills of their managers in trying to get a better outcome, promoting our product particularly in Southeast Asia and China.”
|Konspol builds meat processing plant in Indonesia|
[15 December 2014] Poland-based Konspol has started constructing a new poultry meat processing plant in Indonesia as part of the company’s plans to expand sales to a number of markets in Asia, said Konrad Pazgan, Chief Executive. This will also help diversify its revenue stream and expand to a market that is less competitive, but also significant in size. “By producing similar products [in Indonesia] to those that we are currently making [in Poland], we believe we will be able to increase our competitiveness. And, let us not forget, the profit margins are also much higher [in Indonesia] than in Europe,” Mr Pazgan said. Asian Agribiz noted that the company had formed a joint venture in 2012 with a local company involved in QSR chain business PT Raja Ayam. Located in Purwakarta, West Java, the investment agency of Purwakarta noted that the JV’s operations are in broiler farming and chicken processing plant.
|Shuanghui inks cold chain logistics pact|
[15 December 2014] Shuanghui Group, China’s largest meat supplier, has signed a strategic partnership with Metro Group and Da Chong Hong (DCH) Holdings to improve cold chain logistics, according to the Animal Husbandry Network. Metro Group, the German wholesale and retail chain, has built a strong distribution network to supply its network of 79 warehouse-style wholesale stores in China, while DCH Holdings has a strong retail network in southern China. The agreement will help all three companies improve their cold chain distribution networks, and increase Shuanghui’s product offerings in the two store chains.
|Vietnam responds to detection of H5N1 in chickens|
[15 December 2014] Vietnamese health authorities are implementing numerous precautionary measures after 177 chicken in a coastal province tested positive for H5N1. All affected birds were from the Cau Ke district in the Phong Thanh commune, located in the Mekong Delta province of Tra Vinh. Vietnamese health officials have set up checkpoints near the surrounding provincial districts of Cang Long, Cau Quan, Thong Hoa, and Dinh An, as well as near waterways in Tra Vinh. The Tra Vinh People's Committee is overseeing livestock and poultry vaccination, sterilisation practices on local farms and slaughterhouses, and communication to residents. Quarantine staff are monitoring poultry activity at markets, wharfs, and bus stations. Early this year a flock in the Cau Ke district was the site of one of 25 H5N1 outbreaks causing the deaths of 16,500 chicken in 12 Vietnamese communes.
|Buffalo meat export expected to swell 50% this year|
[15 December 2014] India’s buffalo meat export is expected to rise 50% over last year, with Russia opening its market after a decade. Russia’s veterinary and phytosanitary service, Rosselkhoznadzor, together with Kazakhstan’s Agriculture Ministry included Indian buffalo meat producers on the register of bodies and individuals involved in the production, processing and storage of goods transported to the territory of the customs union of Russia, Belarus and Kazakhstan. “India replaced Vietnam to emerge the world’s largest supplier of buffalo meat in global markets last year. For several years, our buffalo meat exports have been rising by 25-40% annually. This year we would surpass USD 6 billion,” said Ajai Sahai, Director General of the Federation of Indian Export Organisations. India’s export of buffalo meat was USD 4.35 billion in 2013-14, a rise of 36% from USD 3.2 billion in 2012-13.
|CAB hopes to upgrade Tong Huat into further processing plant|
[12 December 2014] Penang-based integrator CAB Cakaran Corporation Bhd hopes to conclude by April 2015 its acquisition of a 51% stake in Singapore-based slaughterhouse Tong Huat Poultry Processing Factory. “After that we hope to upgrade the plant so that it will be able to slaughter about 26,000 birds/day from its current capacity of 20,000 birds/day,” Chris Chuah, Group Managing Director, told Asian Agribiz. “We plan to install machines to cook and marinade products for the F&B service industry such as fast food chains, hotels and restaurants,” he added. Currently the plant only slaughters and sells dressed birds to the Singapore market. It does not make any value-added products. CAB Cakaran hopes the plant, after its renovation works, will produce value-added products by end 2015.
|Cambodia closer to importing cattle from Australia|
[15 December 2014] The Australian and Cambodian governments moved closer to a live cattle trade deal this week after meeting in Phnom Penh to discuss details of the agreement. Health standards were a priority for completion of the agreement, Australia’s Northern Territory Minister for Primary Industry, Willem Westra van Holthe, said. He said Australian and Northern Territory authorities will work closely with existing feedlots and abattoirs to bring them to ESCAS standards. “This ensures that animal welfare standards are met and maintained as the basis for a sustainable trade in live cattle.” Australia’s ESCAS, or Exporter Supply Chain Assurance System, details the sanitary requirements and animal treatment obligations at slaughterhouses and export facilities. With assistance from Australian authorities, Mr van Holthe expects that Cambodia’s facilities will be up to standard and begin receiving live cattle for slaughter next year.
|Hog raisers doubtful of exports|
[12 December 2014] Philippine hog raisers are doubtful that the country will be able to export pork products soon. Commenting on a statement made by Amalia Jayag-Datukan, the Department of Agriculture (DA) Region 12 Executive Director, that pork exports from the region will “hopefully materialise soon”, and that the DA head office has been negotiating with stakeholders and players in potential markets, Chester Warren Tan, President of the South Cotabato Swine Producers Association, told Asian-Agribiz that his group “has great reservations” that it will happen. “We have had the Triple A abattoir here in General Santos since 2007 and several DA administrations have come and gone but nothing yet has happened.” In 2008, a local producer has been approved by the Singapore Agri-Food and Veterinary Authority to ship pork to the city state, but the DA halted the shipment samples from some pigs from Northern Philippines tested positive for the Ebola Reston virus.
|Cargill eyes Indonesian poultry sector|
[12 December 2014] Cargill Inc may invest USD 1 billion in Indonesia over the next three to four years, with a focus on entering the poultry sector and expanding its palm business, David MacLennan, CEO said. Cargill, which already has a presence in Indonesian palm oil, cocoa and animal feed sectors, sees great potential in the country’s poultry industry. “Japan is looking closely at Indonesian chicken and part of it is to replace volume that has fallen off from China through various industry issues that China has had,” Mr MacLennan said. “Indonesia is one of the top opportunities for Cargill in Southeast Asia. When the economy is healthy and growing, people want to eat better. We are interested in the poultry industry as a way to expand. The industry we are looking at, I think, is the perfect industry at the perfect time for Indonesia,” he explained.
|Indonesian beef cattle importers look to Brazil|
[12 December 2014] As Australian cattle exporters look to expand their market options via the imminent opening of trade to China, its customers in Indonesia, Australia’s largest export market, are also seeking to diversify their supply sources. Several members of Indonesia’s cattle importing and lot feeding industry recently travelled to Brazil to meet with cattle exporters and government officials. Buntoro Hasan from the TUM importing and feeding lot company said the Indonesian delegation found the Brazilian industry to be very advanced, with cattle of good genetic quality run on well-managed pastures. “While there is an issue with long logistic haul, they believe given the price of live cattle in Brazil, they can still remain competitive in the Indonesian market.”
|Mega dairy proposed in Karnataka|
[12 December 2014] A mega dairy or factory farm has been proposed in the Indian state of Karnataka by Karnataka Cooperative Milk Producers' Federation Limited (KMF). P Nagaraju, KMF President, said recently that the mega dairy proposed at Dharwad district in Karnataka would cost an estimated USD 16 million. Apart from this, KMF also has plans to set up a dairy unit and a Calf Nurturing Centre in different areas in the state. The mega dairy is aimed at exploiting the thriving dairy farming in North Karnataka region, according to Mr Nagaraju.
|Mekong Delta reports H5N1 bird flu outbreak|
[11 December 2014] A total of 177 chicken in Mekong Delta province of Tra Vinh have tested positive for H5N1 strain of avian influenza, Vietnam News Agency reported. The Provincial Department of Agriculture and Rural Development said the birds were in Phong Thanh commune, Cau Ke district. Tra Vinh People’s Committee has instructed all relevant agencies to step up prevention measures including vaccinating livestock and poultry against flu strains, sterilising farms and abattoirs, and alerting residents about the outbreak. Agencies have been told to set up checkpoints along waterways and roads traversing flu-hit communes, and localities near other provinces such as Cang Long, Cau Quan, Thong Hoa and Dinh An. Quarantine staff members have been dispatched to markets, wharfs and bus stations to monitor livestock and fowl trade and transport. In the first quarter of this year, Tra Vinh recorded 25 cases of avian influenza in 12 communes which killed 16,500 chicken.
|Japfa Indonesia allocates USD146m for 2015 capex|
[11 December 2014] Japfa Comfeed Indonesia has allocated around USD 146 million for its 2015 capital expenditure that will be used to increase production capacity. Unused 2014 capex of around USD 40.5 million will also be allocated for 2015. Vice President Director Putut Djagiri said that of the capex the company will use USD 24.3 million to increase its animal (poultry) feed production capacity and USD 90 million for the expansion of its two aqua feed plants and a freshwater fish processing plant. Some USD 48.6 million and USD 8 million will be used for the development of breeding farm and commercial broiler farm, respectively. Japfa will also finalise the acquisition of two cattle stations in Australia namely Riveren and Inverway through subsidiary Japfa Santori. “The margin in the beef cattle business is very good. We are confident that the two stations can contribute positively to our beef business,” Mr Putut said.
|Appeal against WTO ruling on US poultry items likely|
[11 December 2014] India is likely to appeal against the ruling by World Trade Organisation (WTO) that termed India’s ban on poultry imports from US as inconsistent with Sanitary and Phytosanitary Measures (SPS). The dispute settlement body of WTO passed an order to this effect on October 14 this year. Officials in the Ministry of Commerce hinted that an appeal will be filed at the WTO Appellate Body soon. It may be recalled that the ban on poultry imports from US was imposed earlier because of concerns related to avian influenza. The poultry industry in India is against lifting the ban but lifting the ban means more than USD 300 million in business for poultry industry in US.
|More meat producers in China eyeing export opportunities in Russia|
[11 December 2014] Five more Chinese companies have filed requests with China’s General Administration of Quality Supervision, Inspection and Quarantine to export meat products to Russia. The five companies are Shunxin Agriculture Co in Beijing, Linyi Xincheng Jinluo Meat Products Group Co in Hunan, the Delisi in Shangdong, China Yurun Group in Jiangsu and Sichuan Gaijin Food Co in Sichuan. Pork imports by Russia from China have resumed for the first time since 2004. China is set to increase the number of pork suppliers to the Russian market to 10 companies. Currently, only two Chinese enterprises, WH Group and Beidahuang, are allowed to export meat to Russia. The WH Group has already exported at least 3000 tonnes of frozen meat from its Heilongjiang Province subsidiaries to Russia.
|Asia, steady recovery in shrimp production projected|
[11 December 2014] The 2014 Global Aquaculture Alliance survey of production trends in shrimp farming polled 33 respondents from Asia and the Oceania shrimp producers. Asian production fell 21% in 2013 to around 2.7 million tonnes, with the most substantial declines taking place in China and Thailand. Although production in China is expected to recover this year from 1.1 to 1.2 million tonnes, output in Thailand is expected to decline even further to 200,000 million tonnes, with an eventual partial recovery in 2015. Production in Vietnam, Indonesia and India is expected to increase steadily between 2013 and 2016, with Vietnam and India achieving double-digit growth rates. By 2016, Vietnam, Indonesia, India and Bangladesh are expected to reach 590,000; 450,000; 395,000 and 107,000 million tonnes, respectively, in production. Thailand could drop from second to fifth place in the region, producing 328,000 million tonnes in 2016. Output in China is expected to reach 1.3 million tonnes in 2016, 16% below the record quantities achieved in 2011. These forecasts assume that impacts from diseases are reduced to manageable levels.
|Korea-Australia FTA comes into effect tomorrow|
[11 December 2014] The Australian Dairy Industry Council (ADIC) in a press release has welcomed the confirmation that the Korea-Australia free trade agreement (KAFTA) will come into effect tomorrow, as a positive step toward improved trade liberalisation with Asia. Once entry into force occurs, Australian dairy exporters will experience the first year of tariff reductions for dairy exports to Korea as agreed under the agreement. This will be followed by a further reduction in tariffs on January 1 2015. “Korea is a significant dairy market for Australia, and currently ranks 12th by value with USD 92 million worth of exports in 2013/14,” Noel Campbell, ADIC Chairman, said.
|Forbes includes Japfa CEO as Indonesia’s 50 richest|
[11 December 2014] In its latest Indonesia’s 50 Richest, Forbes included CEO of Japfa Group Handojo Santosa at number 49 with net worth USD 555 million. Mr Handojo received his Bachelor of Arts/Science from Pepperdine University in the US. He listed his holding company, Japfa Ltd, in Singapore in August this year. Japfa’s main revenue generator is a poultry business in Indonesia. The company makes 3.5 million tonnes of animal feed. It also has six dairy farms – five in China and one in Indonesia – with more than 45,000 cows.
ASIAN AGRIBIZ REGIONAL DAIRY UPDATE
[10 December 2014]
India’s Mother Dairy to enter southern region market
After test marketing its products for almost two years in southern parts of the country, New Delhi-based Mother Dairy will formally launch its dairy products in Chennai next month. The company that is currently growing at a CAGR of 20%, is also eyeing a USD 1.2 billion dairy business by 2017. “We are looking at Chennai market very closely. It offers huge potential. In a month or so, we will launch products in Chennai,” Sandeep Ghosh, Business Head, said. Mother Diary, a wholly-owned subsidiary of National Dairy Development Board, is also aiming to expand its outlets in the country. The company plans to set up 6000 outlets in Chennai, Bangalore and Hyderabad in six months. “We will be looking at 15-20% of business from southern region.” Mr Ghosh identified Chennai, Bangalore and Hyderabad as its markets in the southern region.
Indofood takes over Danone’s local dairy unit
Indofood’s consumer goods firm Indofood CBP Sukses Makmur has acquired the entire stake of Danone’s dairy produce subsidiary in an attempt to boost its own dairy output. Indofood revealed that the company, through its dairy subsidiary Indolakto, inked recently a sales and purchase agreement with Danone Dairy Investments Indonesia Pte Ltd and Danone Asia Pte Ltd to obtain 100% stake of liquid milk producer Danone Dairy Indonesia. “The transaction will be carried out with a price set at USD 20.53 million, in accordance to price adjustment mechanism as conditioned in the sales and purchase agreement,” the company said. “The transaction is aimed at increasing our production capacity to meet demand for dairy products in the western part of Indonesia, as well as strengthening our company’s position in Indonesia’s dairy industry.”
Yili pumps in USD327m into New Zealand production base
According to a press release, Chinese dairy company Yili has made a second investment into the dairy production base it acquired in late 2012. The company has added around USD 327 million to an initial investment of USD 196 million it made in the site located in Waimate on New Zealand’s South Island. The facility, which covers packaging, production, processing and r&d is the largest integrated dairy production base in the world, according to Yili. It is reported that the new investment will be used in four parts, including a raw milk deep-processing project, a UHT liquid milk project, a milk powder production facility and a packaging facility. The project hopes to make better use of the advantages of New Zealand’s raw milk costs.
Vinamilk to implement cow breeding project in Tay Ninh
Vinamilk will start a project to raise 8000 dairy cows in the southern province of Tay Ninh next year. The company will import 2500 cows early 2015 and the rest by end 2016. The project covering 685ha aims to produce 35 million litres of milk per year. Vinamilk announced plans to build a processing plant in Tay Ninh to reduce costs and provide jobs for locals.
Fonterra may slash milk payment by 20%
Fonterra may cut its forecast milk payout by a fifth this week with dwindling prospects that the price of whole milk powder will recover enough to support its current estimate. Whole milk powder (WMP) sold at USD 2229 a tonne in last week’s GlobalDairyTrade auction and would need to surge 57% by March to reach the USD 3500 a tonne level that Theo Spierings, Fonterra Chief Executive, has said the current forecast payout of USD 5.30 a kg of milk solids is predicated on. “No one seems to be as optimistic as Fonterra,” said AgriHQ dairy analyst Susan Kilsby. “The things that drive WMP prices are supply out of New Zealand, the biggest producer, and demand in China, and as yet there’s no solid pickup in demand from China."
|14th GoGo Frank outlet opens in Singapore|
[10 December 2014] Carona Holdings Pte Ltd opened its 14th GoGo Franks kiosk at Habourfront Cruise, Singapore. The 200sq ft space expects to sell 50kg of sausages at the ferry terminal on weekends. GoGo Franks sells halal chicken sausages in a number of renditions. GoGo or Gourmet-on-the-Go Franks offers an assortment of ‘Asian tasting sausages’ such as the black pepper, satay, cheese, char siew, mushroom and chilli, and sausage balls. “We are the only sausage retailer in Singapore with a 10-year success,” Jean Lee, Managing Director, told Asian Agribiz. “Our prices are high and so is the quality of our products. We sell sausages made from lean meat and our sausages are low in salt,” she said, attributing their success to focus on quality and taste.
|Adhi Farm eyes pig farming in Central Kalimantan|
[10 December 2014] Adhi Farm, one of the largest pig farms in Solo, Central Java, is currently eyeing the potential of pig farming in Central Kalimantan. With a population of around 2.2 million people, the province has vast potential for agriculture and livestock production. “The pork market in the province is limited, but some producers supply their finisher pigs to East Kalimantan where pork consumption is quite high,” Alexander Kasim, Adhi Farm owner, told Asian Agribiz. He disclosed that he received an offer to buy a 100-head farm in the province. “I am interested to buy the pigs, but I prefer to raise them in new and better designed houses,” he said. “I have also met people from Charoen Pokphand Indonesia and they said that they can provide complete pig feed.” As an added incentive, the local government offered him the use of an idle feedmill with a daily capacity of five tonnes, but he said he has not yet decided on the offer.
|Kazakhstan ready to sell meat to Indonesia|
[10 December 2014] Kazakhstan, the biggest economy in Central Asia, is ready to supply meat to Indonesia. “We are a major producer of meat. We are ready to provide this item to Indonesia,” said Kazakhstan Ambassador to Indonesia Askhat T Orazbay. Kazakhstan is fast emerging as a key supplier of premium beef. Last year, the total meat production in the country reached 871,000 tonnes. At least 5000 tonnes of premium beef was exported in 2013. “Many people in Indonesia do not know that meat both beef and lamb from Kazakhstan is much tastier than meat from many other countries. We don’t use growth stimulants in our meat industry. We grow cattle and sheep naturally,” Mr Orazbay said.
|CAB to have presence in Singapore market|
[09 December 2014] CAB Cakaran Bhd is on track to achieve USD 286 million in revenue next year, riding on its intention to tap into the Singapore market and its expansion plans for its poultry farms in the country. Chris Chuah, Group Managing Director, told StarBiz that the plan to acquire a 51% stake in Singapore-based poultry slaughtering house, Tong Huat Poultry Processing Factory, would enable the group to capture both the markets in Singapore and Johor, where the demand and pricing of broiler was steady and stable. “When the USD 5.51 million acquisition is completed in June 2015, the group will be able to raise its production of broilers to 3.6 million/month from 3 million at present. “We expect Tong Huat’s business to generate about 14% of our revenue for the 2015 fiscal year,” he said.
|Bali eyes new markets for pigs|
[09 December 2014] So far pigs produced in Bali, Indonesia are sold in local markets, so that if there is over-production, the price of live pigs will quickly fall, according to Chairman of the Bali Pig Farmers Association (Gupbi) I Ketut Hari Suyasa. In the 2012-2013 period, the pig population in Bali fell by 40% from around 900,000 heads because of low prices. “Our market reach is limited,” said Mr Hari. “The local government should help us find new markets like in Surabaya and Jakarta.” He told Asian Agribiz that the association is in talks with a meat importer and distributor based in Jakarta. “The company, PT Christy Sejahtera, needs two tonnes of pork per day.”
|Cofco building 500,000 pig production base|
[09 December 2014] Chinese state-owned Cofco Group has signed an agreement to invest USD 195 million in a 500,000 breeding and slaughter base in Guangshui, in central Hubei Province. The complex, part of an effort to boost the company’s pork market share with premium products, will provide production, supply and marketing services. Cofco has also agreed to invest in green food production, tourism and other rural construction projects in Guangshui, according to an article posted on China Pig Network News.
|Carona eyes more GoGo Franks outlets in Indonesia|
[09 December 2014] Singapore’s Carona Holdings, which has 14 sausage kiosks in the republic and 15 outlets in Indonesia, plans to open its 16th outlet at the Makassar airport in Indonesia. “Indonesia is our future and we can grow to 50, even 200 outlets. We have just opened our second production line because the first had reached full capacity,” said Jean Lee, Managing Director. In 2012 Carona opened a semi-automatic processing plant in Jakarta equipped with German machines and a smokehouse. The plant started out with 500kg/day. Today it produces 3000kg/day in two eight-hour shifts. Ms Lee has plans to build a second plant in Indonesia.
|Thai import protocol announcement for Australian feeder cattle imminent|
[09 December 2014] Beef Central reports that there will be an announcement any day now that the Thai protocol for the import of Australian feeder cattle has been officially agreed by both governments. This should allow imports to begin early next year, although the traditional issues of tight supplies and high prices during the northern Australian wet season is likely to delay the first shipments to April or May. Export Supply Chain Assurance Scheme requirements need to be established for new importers, so this will also need a little time to put in place.
|Belgian exporters look to Asia for new market|
[09 December 2014] To compensate for the pork export lost by the Russian ban on EU meat, Belgium has developed a three-year plan to forge business with new markets. Its main focus will be on Asia. The country’s meat office has come up with a three-year plan to raise exports, Joris Coenen, Belgian Meat Office Marketing Officer, told GlobalMeatNews. “Pig meat turnover is USD 1.97 billion. We export more pig meat than Brazil,” Mr Coenen said adding that Belgium is reputed for its tailor-made service.
|Hormel mulls Vietnam exit|
[08 December 2014] Hormel Foods is considering exiting the Vietnam market, where it has a joint venture with Philippine food giant San Miguel Pure Foods Co Inc, a report from just-food.com said. The report said the company could make the exit early in its current fiscal year. It quoted Hormel as saying that the Vietnam venture, which includes hog production, feedmills and a processed meats facility, “has not delivered the results we expect from our international investments.” Hormel owns a 49% stake in San Miguel Hormel (Vn) Co. San Miguel has not commented on whether talks are actually ongoing between the two companies. However, Astro del Castillo, Managing Director of First Grade Finance, a Philippine finance and investment company, told Asian Agribiz that if Hormel does exit the Vietnam business, “it will just be a temporary setback for San Miguel and it will not have a major effect on its business.”
|Thailand approves 11 US MBM plants|
[08 December 2014] Thai officials have approved early December an additional 11 US meat and bone meal (MBM) plants for export to Thailand. Following audits by Thai officials at the US plants, the eligible list has now grown from four to eight companies, after negotiations between US and Thai officials resulted in new import protocols for MBM products being agreed. The new facilities eligible for export to Thailand include three JBS Inc facilities, two APC Inc plants, four Pilgrims Inc and two Smithfield facilities. According to a Global Agricultural Information Network report from the USDA’s Foreign Agricultural Service, Thailand’s MBM imports totalled USD 152 million in 2013, around 10% of the total market. These newly-approved facilities could contribute an additional USD 2-3 million of exports annually. Thailand imported around USD 14.5 million worth of MBM imports from the US last year.
|Brahim’s, Carpenter Beef to build slaughterhouse in Perth|
[08 December 2014] Malaysia's Brahim’s Holdings Bhd has teamed up with Australia’s Carpenter Beef Pty Ltd to build a slaughterhouse in Perth that is designed to meet all China, European Union, the US Department of Agriculture halal requirements. Brahim’s said in a statement that the plant, Cataby Abattoir, will have a capacity of 100,000 cattle per annum on a single shift basis, with a 400-head per day capacity. It added that the memorandum of understanding will allow the company to tap into the opportunity of co-owning the Cataby Abattoir, as a halal compliance abattoir, with Carpenter Beef as its partner. Carpenter Beef will operate the Cataby Abattoir and oversee the management of cattle as feedstock for the abattoir. Brahim’s will be the major buyer of the products from the slaughterhouse.
|Indian beef exports get shot in the arm|
[08 December 2014] India’s beef industry got a shot in the arm last week with Russia’s decision to allow import of buffalo meat. Spokesperson of Russia’s Rosselkhoznadzor or Federal Service for Veterinary and Phytosanitary Surveillance confirmed this development. India’s beef industry, which is already a top exporter globally, is presently exporting beef to Vietnam, Malaysia, Egypt, Thailand, Saudi Arabia and Jordan. Four Indian provinces or states Uttar Pradesh, Andhra Pradesh, Maharashtra and Punjab are the major buffalo meat production areas in India. In 2013-14 India exported 14.49 million tonnes of buffalo meat valued at USD 4.34 billion against 11.07 million tonnes valued at USD 3.19 billion in 2012-13, according to Ministry of Commerce estimates.
|Indonesia ups fish products quality with standards|
[08 December 2014] In the face of the Asean Economic Community 2015, Indonesia’s Ministry of Fisheries & Marine Affairs has said that it will soon implement Indonesia National Standards (SNI) for processed fish products. This year the National Certification Agency defined eight SNI namely for fish balls, frozen fish, fresh tuna, frozen shrimps, frozen raw peeled shrimps, frozen eel, tuna loin and copper and zinc levels in fishery products. Director General of Fish Processing and Marketing Saut P Hutagalung said the SNIs are aimed at increasing the quality of Indonesia’s processed fish and shrimp products. “We will support processors particularly small and medium processors, with an incentive of around USD 650 to achieve the SNIs.”
|Fourth Chinese H7N9 case in two weeks|
[08 December 2014] A 27-year-old man from the city of Fuqing in Fujian Province has become the fourth victim of H7N9 avian influenza in China in the last two weeks, according to media reports. The man was hospitalised in critical condition in Fuzhou. Other infections, all of a single person, have been reported in Xinjiang, Zhejiang and Guangdong provinces. The latest case brought the total number of reported human cases to 463 since the spring of 2013, according to FluTrackers. At least 175 deaths have been reported.
|Bali declared national region for pig farming|
[05 December 2014] Bali was recently declared as the national region for pig farming in Indonesia. However, according to Chairman of the Bali Pig Farmers Association (Gupbi) I Ketut Hari Suyasa, the association has not got further information on the kind of programs to be implemented by the central and local governments. “We plan to propose Badung, Bangli and Gianyar districts as locations for pilot projects to enable efficient, productive, profitable and sustainable pig farming,” Mr Hari told Asian Agribiz. Besides, “we also hope the governments can help accommodate our pig farmers’ cooperative program in the three districts.” In May 2014 Gupbi initiated a program to form pig farmers’ cooperatives in every district in the province, with Badung district chosen for the pilot project.
|27 arrested in Chinese 'grey channel' beef bust|
[05 December 2014] Police have arrested 27 people and seized 300 tonnes of smuggled Brazilian beef in northern Jiangsu Province, according to a report by the Chinese news agency Xinhua. Brazilian beef was banned from entering China in late 2012 after a case of BSE was found in southern Brazil. However due to strong demand and high prices, substantial volumes continued to flow through the Hong Kong 'grey channel' to ports on the Chinese coast. Police said at least USD 16 million worth of Brazilian beef had entered via the port of Lianyungang in the last year. The bust comes less than two weeks after China officially lifted its ban on Brazilian beef with an agreement at the Group of 20 meeting in Brisbane, Australia.
|New FMD outbreak in South Korea|
[05 December 2014] South Korea's agriculture ministry has confirmed an outbreak of foot-and-mouth disease (FMD) at a pig farm located some 100 km south of Seoul. The outbreak at the farm in Jincheon, North Chungcheong Province, comes nearly four months after the last confirmed case was reported at a pig farm in Hapcheon, some 350 km south of Seoul. According to the Korea Herald, the ministry, however, noted the possibility of the animal disease spreading was slim as all farms here are currently required to vaccinate their cows and pigs against Type O FMD found at the farm in Jincheon.
|CP Prima targets Asean countries for its shrimp products|
[05 December 2014] Indonesia’s largest shrimp producer and exporter CP Prima exported its processed shrimp products to China for the first time last month, through its subsidiary Centralpertiwi Bahari. Following this success, the management has said that the company targets to enter processed shrimp markets in Asean countries. “Our main target is the Philippines and Myanmar,” said Director Sutanto Surjadjaja. CP Prima processes several processed shrimp products such as ebi fry, shrimp cutlets, shrimp nuggets, shrimp rolls and shrimp sticks. This year it targets to sell 1500 tonnes locally.
|Thai company introduces Taiwanese fried chicken locally|
[05 December 2014] Thailand’s grilled restaurant chain Barbeque Plaza Co Ltd has paid around USD 1.83 million to buy the Taiwanese Hot Star chicken franchise brand to serve local Thai consumers. The brand targets young people as they are the group of consumers who prefer snacks that are easy to eat and convenient. The company expects to earn around USD 3.04 million in the first year of operation. The first outlet of Hot Star chicken will open in March next year and the company hopes to have 5-10 outlets in the first year with a target of 35 branches in five years.
|Jollibee sets USD 200 million for capex in 2015|
[05 December 2014] Amid continued strong demand, Jollibee Food Corporation of the Philippines has allotted USD 200 million for its capital expenditure program for 2015, up 42% from its 2014 capex budget, the company said in a statement. The fund will be used to build new stores and renovate existing stores in both its Philippine and international operations, as well as to construct a commissary to increase capabilities. About 74% of the budget will be allocated for Philippine operations, 19% for China and the rest for the US, Southeast Asia and the Middle East. As of end-September this year, the company has opened 114 new stores in the Philippines and 34 overseas. It targets a total of 300 new stores by end-2014.
|GreenFeed ready to release PIC PS gilts in January|
[04 December 2014] GreenFeed Vietnam Corporation’s 1700 GP sows, which were imported from PIC, will produce PS gilts that will be released to farmers next month, Tran Ngoc Chi, General Director, told Asian Agribiz. “The farming technology in Vietnam is outdated. Farms producing 20-22 piglet/sow/year is considered good,” he said. GreenFeed’s farm in CuJut imported 800 nuclear and GGP sows in the first and second quarters of this year. Mr Tran explained that the input sow source is for Hung Yen, Binh Thuan and GreenFeed’s other GP farms. “In the US and the EU farms achieve up to 30 piglets/sow/year. Farmers in Vietnam must upgrade their technology and genetic pool if they want to survive in the coming years.”
|Three Indonesian companies to export chicken products to Japan|
[04 December 2014] Japan has officially announced that three Indonesian poultry integrators namely Charoen Pokphand Indonesia, Japfa Comfeed Indonesia and Malindo Feedmill can start exporting processed chicken products to the country. “The three companies meet all requirements required by the Japanese government,” said Director General of Livestock and Animal Health, Syukur Iwantoro. Sierad Produce Director Sudirman FX revealed that the company should improve its food safety procedures in order to comply with the Japanese government’s standards. CP Indonesia Vice President for Government and Liaison, Dr Desianto Budi Utomo said the company expects to export its products early next year. These will include chicken nuggets, meatballs, sausages, yakitori and karaage.
|Walmart closes regional office in China|
[04 December 2014] Faced with a weak sales environment, US retail giant Walmart announced it is closing its Northeast China regional office in the city of Dalian and cutting about 250 administrative jobs. The move is aimed at improving efficiency and leaves the company with five regional offices in China, instead of six. Walmart has more than 400 outlets in China and said earlier this year that it would close 20 of its less-profitable stores, but it's also opening 31 new stores and logistics centres to develop new territory. Walmart does not break out China figures, but the Asia Wall Street Journal reported the company suffered a 0.8% drop in Q3 China sales due to slower economic growth and the government’s anti-corruption drive, which has reduced gift-giving to government officials.
|Beef import realisation in 2014 only 70%|
[04 December 2014] Indonesian Meat Importers Association has said that the realisation of beef import this year will only reach 70% of the total import permit of 170,324 tonnes given by the Ministry of Trade. “This year the purchasing power of beef weakened due to currency depreciation which escalated the price of beef,” Chairman Thomas Sembiring said. He revealed that in Q1 its members imported 51,037 tonnes, 45,255 tonnes in Q2, 34,905 tonnes in Q3 and 39,137 tonnes in Q4. “For the first quarter of next year, we will import only around 30,000 tonnes since we predict that the weak trend will continue.”
|Philippines announces import bans|
[04 December 2014] The Philippines has imposed a temporary ban on poultry and poultry products from Russia and Germany following outbreaks of highly pathogenic avian influenza (HPAI) in these areas. The Philippine Department of Agriculture (DA) said HPAI virus serotype H5N1 affected poultry in Ilinsky and Dolgovo Novochikhinsky, Altayskiy Kray, Russia, while HPAI virus serotype H5N8 affected Heinrichwalde, Vorpommern-Greifswald, Mecklenburg-Vorpommern, Germany. Likewise, the DA also slapped a ban on importation of cattle products from Botswana after an outbreak of foot and mouth disease was confirmed in the African country. The Philippines has managed to remain free of both AI and FMD and is strictly monitoring its borders to keep both diseases at bay.
|Thai agri ministry raises concern on PRRS |
[04 December 2014] Thailand’s Ministry of Agriculture and Cooperatives has warned pig raisers to be alert on the Porcine Reproductive and Respiratory Syndrome (PRRS) disease during the cooler months at the end of the year. Wimol Jantrarotai, Deputy Permanent Secretary of the ministry said the transition from the rainy season to cooler weather can stress out pigs and cause them to eat less and weaken their immune system.“To avoid the risk of PRRS, farmers are encouraged to be strict with biosecurity. Pigs brought into the farm must be disease-free at origin,” Mr Wimol said. Pig farmers are urged to call the ministry for advice on biosecurity, he said.
|Indonesia aims to reduce fishmeal imports|
[03 December 2014] Indonesia’s Ministry of Fisheries and Marine Affairs expects that some 1.6 million tonnes of catch fish can be processed by fish processors in the country. Of the figure, there will be around 500,000 tonnes of waste that can be processed into fishmeal, said Saut P Hutagalung, Director General of Fish Processing and Marketing. “Fishmeal is an important raw material for aqua feed. We aim to reduce the import and replace it with local fishmeal.” Last year Indonesia imported 60,200 tonnes of fishmeal at a value of USD 74 million from Chile, Vietnam and China for aqua feed raw material.
|Jiaxing launches emergency bird flu plan|
[03 December 2014] The city of Jiaxing launched its emergency plan to control bird flu after a woman came down with the city’s first case since last winter, according to the official Chinese news agency Xinhua. Jiaxing, in Zhejiang Province, tested those who had come into contact with the infected woman and warned clinics and hospitals to immediately isolate any suspected cases. Relatives said the woman had bought two live chickens at a roadside farmers’ market and was keeping them at home before slaughtering them. Meanwhile, the Hong Kong Centre for Health Protection confirmed that a 31-year-old woman had come down with H7N9 across the border in Guangdong Province. Both infected women were being treated in hospital. China has reported 462 cases of human H7N9 infection since 2013, with 175 deaths.
|Global demand and weather to drive commodity markets in 2015|
[03 December 2014] Charting its outlook for the global agri commodity markets in 2015, Rabobank says the key variables to watch for are the US dollar strength, uncertain Chinese demand growth, slowing biofuel demand, and oil price weakness. “Macro drivers remain very much in play and price swings from supply and demand shocks are still likely, given that the stocks for most commodities are not yet at levels necessary to provide an adequate buffer,” said Stefan Vogel, Global Head of Rabobank Agri Commodities Markets Research. The bank expects farmers' selling and planting decisions, global demand and weather-related production risks to remain key drivers through 2015. Assuming normal growing conditions, moderate increases in demand will allow stocks to build for most commodities through 2015.
|Brahim’s buys Burger King franchise |
[03 December 2014] Malaysian in-flight caterer Brahim’s Holdings Bhd and private equity firm Quantum Angel Sdn Bhd announced a USD 27.68 million deal to buy the Burger King franchise in Malaysia and Singapore from Equinas Nasional Bhd. Brahim’s said its interest in the franchise will help to reduce its dependency on in-flight catering. According to Datuk Seri Ibrahim Ahmad, founder and Executive Chairman, the franchise will contribute around USD 87.40 million to the company’s revenue next year. He said that there are around 54 Burger King outlets in Malaysia and some 38 in Singapore, and the numbers would be increased annually.
|VietGAP certified aquaculture farms to reach 30% in 2015|
[03 December 2014] By 2015 there will be 30% of intensive, semi-intensive farms and aquaculture systems that are VietGAP (Good Agricultural Practice) certified and this percentage in 2020 will be 80%, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The application of VietGAP standards is considered crucial measures to minimise the negative impacts of aquaculture, to develop sustainable farming; and to enhance product value and, to promote export activities. Pangasius production reached 1.1 million tonnes with total farming area of 5,200 ha while brackish water shrimp yield was 550,000 tonnes from the total farming area of 666,000 ha.
|Singapore food manufacturers must continue to innovate|
[03 December 2014] Singapore’s food manufacturing sector has shown good growth, with total sales in 2012 totalling about USD 6.14 billion, Minister for Trade and Industry Lim Hng Kiang said. Speaking at the inaugural Great Singapore Food Gift Awards ceremony, Mr Lim said value-added growth in the food manufacturing sector has been at a compound annual growth rate of 8.7% from 2003 to 2012. The sector has also seen exports grow at a CAGR of 12.9% over the same period, reaching more than USD 3.45 billion in 2012. With the establishment of the Asean Economic Community, more opportunities will open up for Singaporean food manufacturers to grow through exports, he said.
|CP Indonesia invests USD453m in capex|
[02 December 2014] Indonesia’s largest poultry company Charoen Pokphand Indonesia has allocated a total of USD 453 million to capital expenditure this year and the next, with expansion and acquisition plans in the pipeline. Director Ong Mei Sian said USD 247 million would be spent this year and USD 206 million next year. With a bigger capex, the company aims to develop its three lines of business namely DOC, feed and processed chicken products. “The plan for next year is to build a new feedmill in Semarang, Central Java,” Ms Ong said.
|China Fishery’s earnings down 20% |
[02 December 2014] China Fishery Group’s earnings for the full year ended September 28 contracted 20.3% to USD 61.9 million as higher finance costs and income tax expenses offset an improvement in revenue. Finance expenses increased 60% to USD 80.8 million following the consolidation of Copeinca ASA, a Peruvian fishing company that China Fishery acquired last year using debt and equity. Revenue rose 13.7% to USD 630.8 million, driven largely by China Fishery’s Peruvian fishmeal operations. Revenue from the contract supply business fell 57.4% to USD 154 million.
|Malaysia food retail dominated by small players|
[02 December 2014] According to the USDA’s recent Malaysia Retail Foods Annual 2014 report, total retail sales of food and beverage in Malaysia amounted to USD 16 billion in 2014. The retail sector is expected to grow at 6% for the next two years due to cautious consumers spending with increased subsidy rationalisation and anticipation of GST implementation in 2015. The food retail sector continues to remain fragmented, with around 56% of retail food sales being made up of small retailers. Modern stores have around 43% share, while convenience stores have remained insignificant.
|Bangladesh poultry forecast for growth|
[02 December 2014] Business Monitor International holds a cautious outlook on Bangladesh's agriculture sector. It estimates that poultry production will grow to 224,000 tonnes by 2017/18, an increase of 22.9%. Better economic conditions and higher disposable incomes will help drive demand for meat. Improved disease control is also expected to support the recovery of the sector. Real GDP growth in 2015 is forecast to be 6.0%, up from 5.7% expected in 2014. GDP growth is predicted to average 6.0% from 2015-18.
|Taiwan forecasts lower broiler production |
[02 December 2014] In response to a Porcine Epidemic Diarrhoea Virus (PEDv) in Taiwan, pork prices this year have increased dramatically since 2013 resulting in increased demand for poultry. The USDA in their recent International Egg and Poultry Review forecasts Taiwan to import 145,000 tonnes of broiler meat, a 31% increase from 2013. In 2015 Taiwan’s total broiler meat imports are projected to increase 24% to 180,000 tonnes. Taiwan’s broiler meat production for 2014 is forecast to decrease 2% to 480,000 tonnes and projected to drop 1% in 2015.
|Global frozen food market to hit USD 307b in 2020 |
[02 December 2014] The global frozen food market is expected to reach USD 307.33 billion by 2020, according to a new study by Grand View Research Inc. Consumer shift towards adoption of food requiring less time to prepare on account of their changing lifestyle is expected to remain a key driving factor for the global frozen food market. Meanwhile the presence of a large unorganised market in Asian countries is expected to remain a challenge for existing market participants. Unbranded frozen food poses a threat to major companies in terms of quality and price offerings.
|Indonesia to reduce use of AGP |
[01 December 2014] Indonesia’s government has said that it is planning to reduce the number of antibiotic growth promoters (AGP) used in feed. This plan will be realised at the end of this year or early next year. Chairman of the Indonesian Veterinary Drugs Association Rakhmat Nuriyanto told Asian Agribiz that the number of AGP (plus anticocci) would be reduced from 30 to eight items. “Bacitracin, flavomycin, enramycin, avilamycin, virginiamycin, lincomycin, tylosin and colistin will remain on the list as they are backed with scientific data for the government to review.” Mr Rakhmat estimated that with the reduction, the market value of AGP (plus anticocci) that is currently around USD 164 million may shrink by about 10-15%. “However this will encourage the use of natural products like probiotics, prebiotics and phytobiotics.”
|Two outbreaks of HPAI in India|
[01 December 2014] Two outbreaks of H5 variant, highly pathogenic avian flu have been confirmed in domestic poultry in the Indian state of Kerala, affecting more than 240,000 birds. The Indian veterinary authority sent an Immediate Notification dated 25 November to the World Organisation for Animal Health (OIE). It described two outbreaks in farmed ducks, both in Kerala. An epidemiological investigation is ongoing, and an intensive surveillance campaign has been launched in a 10 kilometre radius of the affected villages. The Agriculture minister has ordered a cull of as many as 200,000 birds and a halt of transport of ducks or other poultry products from the region. The last outbreak of avian flu in India was in February 2014.
|Growth in China boosts Hormel|
[01 December 2014] Growth in China and higher pork exports has helped push Hormel Foods Corp. to record earnings and sales in its fiscal fourth quarter, according to CEO Jeffrey Ettinger. In its Q4 report, the company said sales and earnings were up 9% from last year. Profits at Hormel’s International Products division rose 34%, and Ettinger said Hormel expects double-digit growth in the division next year. Looking ahead to 2016, the company is planning to boost its profile in China with a new refrigerated meats plant, but may decide to exit a food processing joint venture in Vietnam.
Poultry India 2014
Onsite reports by ARIEF FACHRUDDIN and S M ARUN
[01 December 2014]
Biomin gains success in India
In India, Biomin is a big name in the feed additive industry. From a three-person set up, the company now employs 19 people to cover the growing poultry and livestock market in India. COO Sujit Kulkarni said: “We are now one of the market leaders in mycotoxin control management in India and the first company with EU-authorised mycotoxin control products.” Mr Kulkarni added that last year Biomin launched its phytogenic product range for the Indian market in response to the market's awareness of antibiotics and the government’s inspection on antibiotic residue. “Response from the market has been good. Phytogenics is not only an alternative to AGPs but also supports the gastro intestinal health of the bird.”
Zoetis aims to raise profitability in India
Zoetis which has acquired four leading companies in the animal health sector, is hoping to make it big in India in the coming years. Dr Mahesh Shivankar, Senior Product Manager of Zoetis India Limited said that they have completed the acquisition procedures over the last three years. "Our priority now is to raise our profitability in India, our customer support and the Zoetis brand," he said.
Kemin scales up r&d
Kemin Industries South Asia is banking heavily on its research and development to scale up its business all over the world. Samraj Jeyachandran, Senior Vice President, Animal Nutrition & Health said that their vision is to touch 3.5 billion people globally through their services. "We have already reached the 2.1 billion mark and our vision is to reach the figure by 2018," he said adding that 12-16% of their investment goes into R&D.
Foodmate sees good potential for its technology
Although the chicken processing industry in India is still in slow growth mode, Foodmate sees a big potential for its technology. “We know it will take time for the industry to progress since 92% of total broiler produced is sold in wet markets, but the potential is big,” said Sales Manager Hans Tieleman. “We also see that our cooperation with a local company RND is a good step for our technology here. RND is already into chicken processing equipment and has a good customer base. So when RND’s customers want to step up processing, we will be here to help them.”
VDL launches Valenta
VDL Agrotech launched its new versatile pan feeder called Valenta for broilers from starter to finisher period. Area Manager Sunny Sidhu said: “We took the opportunity at this event to launch Valenta as it can help broiler farmers gain better production performance and efficiency.” Valenta features a low ridge for easy access to feed from day one, open design to prevent chicks from getting caught inside the pan and to minimise feed spillage, and smooth surfaces for easy cleaning and disinfection.
Sanovo promotes pasteurisers
India is one of the largest chicken egg producers in Asia and Sanovo Technology Group sees this as an opportunity to promote its pasteurisers. Product & Business Manager, Roberto Roversi said that Sanovo pasteurisers are specially designed for the egg processing industry and are available with either plate or tubular heat exchangers. Mr Roversi added that the pasteurisers are equipped with Sanovo Wave Technology which can inactivate bacteria by 10 times, without influencing the functional properties. Sanovo pasteurisers are available in capacities of 600-10,000 litres/hour in standard configurations.
Japfa India’s feed business predicted to grow 40%
Winner of the Asian Feed Miller Award 2014, Japfa Comfeed India, expects its feed business this year to grow by more than 40%. Vice President, Head of Feed Division Ardi Budiono said: “Many customers of other millers have switched to our feed. We believe this is because we can maintain quality consistency, supported also with good and on-time delivery and farm services.” Mr Ardi also said that the company is currently setting up a new poultry feed plant in Bihar with an installed capacity of 15,000 tonnes/month. The plant is expected to be operational in the third quarter of 2015. “Next year, we will also expand the capacity of our existing plants to meet growing demand for our feed.”
IB Group promotes IB-Ross
Fast growing poultry company IB Group promoted its JV with Aviagen called IB-Ross at the show. President Dr RK Jaiswal said the company ventured into GP breeding last year and has started selling PS to its customers in the country. Dr Jaiswal said its GP farm produces some 200,000 PS per month. “The market response is good. The strain performs well and we are positive of its growth,” Dr Jaiswal said. He added that the company is setting up a new feed plant near to its head office in Rajnandgaon. Costing the company around USD 16 million, the new plant will have an installed capacity of 2000 tonnes/day and will be equipped with technology from CPM. Targeted to be operational in June 2015, the plant will produce feed mainly for poultry.
Poultry India 2014
Onsite reports by ARIEF FACHRUDDIN and S M ARUN
[28 November 2014]
Big Dutchman invests in total customer satisfaction
Shifting from manual to automated operations is not only about investment, but also management of technology. Big Dutchman India sees that farmers are comfortable with automatic drinkers and feeders, however for closed house they have to deal with ventilation that is not easy. Understanding this, Training & Marketing Manager Bernada Luers said the company recently added two trained veterinary doctors to its team. “They will visit our customers soon after we install our equipment and offer training and support to help them get used to the closed house system. Investment in total customer satisfaction is costly but we want long term relationship with our customers.” The existence of its equipment warehouse also supports the total customer satisfaction program, she added.
Marel expects more projects in 2015
Although feed price hikes and low broiler prices have slowed down the Indian poultry industry, the poultry processing sector continues to grow positively, said Export Manager of Marel Stork Poultry Processing, Erik Talens. Mr Talens revealed that this year the company received letter of credit from Sneha Farms for a 6000 birds/hour poultry processing unit. “The plant will be installed in June next year.” Marel is also currently upgrading a processing plant in Coimbatore owned by Shivshakti from 2000 to 4000 birds/hour. This semi-automatic plant will be up and running in February next year, said Mr Talens.
Indian poultry feed industry expected to grow 4%
The business environment in India now is positive, according to Chairman of the Indian Compounded Livestock Feed Manufacturers Association (CLFMA) Dr Dinesh Boshale. “We expect an increase in per capita income and the consumption of chicken and eggs.” Dr Boshale said at the moment poultry placement is back to some 60 million broilers per week. Poultry feed production, meanwhile, this year is expected to reach 21 million tonnes. Of this, 12 million tonnes are broiler feed and 9 million tonnes layer and breeder feeds. “This year, we expect the feed industry to grow by 4%,” he said. To make the industry more competitive, Dr Boshale said the association has asked the central government to offer a 5-year tax holiday for the industry in feed additive & supplement imports. “Import duty of the products is an obstacle.”
Danisco anticipates growth in animal nutrition
Danisco Animal Nutrition, part of DuPont, enjoys a strong presence in India and expects the animal nutrition sector to grow at a faster pace as the awareness level among stakeholders is increasing. Sheril V Vaidhyan, Business Director-South Asia, DuPont Industrial Biosciences said that the driver behind the growing awareness is the fact that all the agricultural land in India is saturated. "The challenge is to produce more meat with the available resources and that is why we believe that animal nutrition has huge potential,” he said. Mr Sheril also pointed out that the company is capable of meeting the anticipated growth in demand for animal nutrition in India.
Vimala Feeds evolves into a poultry focused company
Vimala Feeds started its business in 1969 by producing cattle feed. It now produces 100% poultry feed. “We shifted our focus because of the higher demand for poultry feed,” revealed Managing Director Ch. Madhusudhana Rao. At the moment the company has four feed plants producing feeds for breeders, broilers, layers and also emu. “This year we set up a new pellet feed plant in Andhra Pradesh. The installed capacity is 20 tonnes/hour,” he said. To support this feed business, last year it set up a soy solvent plant with a capacity of 500 tonnes/day in Karimnagar. Mr Rao said at the moment it is working on completing its integration project. “In 2006, we ventured into broiler breeding with 30,000 Vencobb PS, now we raise 100,000 birds. We want to double the capacity of our commercial broiler farming from 300,000 to 600,000 birds. We will also set up a processing plant.”
SR group setting up a new feed plant
SR Group through its subsidiary Rohini Minerals is setting up a new feedmill located near Hyderabad. General Manager Venkataramana V said the new 20 tonnes/hour plant will be equipped with technology from Andritz. Costing around USD 4 million, the plant is targeted for operations by end January 2015. “It will produce pellet and crumble feeds for broilers and layers in Telangana state,” said Mr Venkataramana. He revealed that next year the company will set up a new feed plant in Andhra Pradesh state. “We will expand our feed business gradually into the eastern and western part of the country,” he said. The company now has six feed plants in central and south India.
Skylark plans for expansion
Skylark group based in Haryana is looking to extend their operations. Managing Director, Jagbir Singh Dhull said that following the huge success of their operations in North India they are planning to extend their presence to other parts of India. "We are doing extremely well in feed and have already entered a few African countries,” he said. According to him, since the demand for their feed has grown steadily in Nepal they have set up a feed plant in Nepal.
Abca showcases organic selenium product
Abca showcased its innovative feed solutions and highlighted its selenium enriched functional food benefits. “Relevant to the functional food Industry, AB Tor-Sel, organic selenium (Torula yeast) from Abca is an ideal choice to enrich selenium level in poultry products to optimise health benefits,” said Managing Director, James Charteris-Hough. Comprehensive trials conducted at universities in Australia, proved the product to be an effective source of organic selenium that helps achieve better animal performance and significantly higher selenium content in eggs (extra 22%) and chicken meat (extra 10%).
Poultry India 2014
Onsite reports by S M ARUN
[27 November 2014]
The eighth edition of 'Poultry India' opened yesterday at Hitex Exhibition Centre in Hyderabad. The three-day event this time has sustainable development in the poultry sector in India as its focus. Organisers of this event said that the annual turnover of the poultry industry in India is approximately USD 16.5 billion while it provides employment to around 6 million people in rural India. Poultry equipment manufacturers, feed and nutrient suppliers from all over the world are participating in this event that will conclude on November 28.
Good prospects for Berg+Schmidt's fat powder
Berg+Schmidt who pioneered the use of liquid fat as A feed supplement for the poultry industry in India is now focusing on expanding their market to the dairy sector with their fat powders. Harish Dharne, General Manager of Berg+Schmidt (India) Pvt Ltd said that the prospects are good as the market for fat powder has grown over the last two years. "When we entered India in 2002 nobody was using liquid fats but now after 12 years it has become popular", he said and added that they are expecting a huge increase in the market for fat powders.
Jamesway banks on growth
Canada based incubator manufacturing company Jamesway, is hopeful that it will grow in India, Bangladesh and Sri Lanka by 2015. "Since the poultry industry in these countries have turned their focus towards automation we are hopeful that we will get some major projects next year," S V Deshmukh, Area Sales Manager of Jamesway Incubator Company said. According to him, Jamesway has an edge over local incubator manufacturers as the incubators by Jamesway are more user friendly. Pointing out that even though the price of their incubators is slightly more than the local ones, the company is confident that it will achieve a breakthrough next year.
|Indonesia sees robust demand for native chicken|
[27 November 2014] The native chicken business in Indonesia has seen significant growth in the last five years, according to Chairman of the Indonesian Local Poultry Farmers Association, Ade Zulkarnain. “Ten years ago, total native chicken production was only 60 million birds. However this year, production may reach 150 million birds, with 90% of the demand from the middle-up class up,” he told Asian Agribiz. There is demand also from Singapore, Brunei and Malaysia which the industry is unable to fulfil. Mr Ade noted that currently there are only five native chicken breeders who follow good breeding practices. Each of these breeders produces around 40,000-100,000 DOCs per month.
|China's sow numbers continue to decline|
[27 November 2014] China's Ministry of Agriculture said the October on-farm pig inventory was 436.5million (up 0.8% from September) and a 44.81 million sow herd (down 5.8%). The past 6 months has seen more than 3.12 million sows eliminated, resulting in the lowest inventory in four years. Genesus reports that it expects more sows lost in the next few months as rumours of Foot and Mouth Disease in Henan may make farmers sell off inventory. Hog production capacity has significantly been adjusted with the main cause being the loss of farm households. Despite the recent recovery of the market price for live pigs, several farm households are still in financial difficulty.
|Asean goods will not flood market Vietnam market|
[27 November 2014] Vietnam is scheduled to reduce the 5% import duty to zero on 1,720 tariff starting January 1, 2015 under an Asean trade pact, but this does not mean the market will be flooded with products originating from other Asean countries, Nguyen Thi Bich, head of the International Cooperation Agency under the Vietnamese Ministry of Finance, told Tuoi Tre newspaper. “As for products that are crucial to the country’s agriculture such as pork, poultry and eggs, Vietnam is negotiating to maintain import duties on them at 5%.” “Vietnam’s exports to Asean has expanded considerably over the last three years, whereas imports remain almost the same,” she said.
|Taiwan’s food safety act passes third reading|
[27 November 2014] An amendment to Taiwan’s Act Governing Food Safety and Sanitation, which not only increases fines for food companies involved in the production of food products with inappropriate additives and materials but also adds new regulations such as using electric receipts, holding regular food safety meetings and setting up food labs, passed a third reading at the Legislative Yuan. Under the revised law, food manufacturers who sell adulterated products will not only face a seven-year prison sentence but also an USD 2.61 fine. In addition, if adulterated food products are found to cause death, an individual can be issued with fines of USD 6.47 million and the punishment can be increased up to 10 times.
|CJ Indonesia inaugurates new mill in Lampung|
[26 November 2014] CJ Feed Indonesia recently inaugurated its new feedmill in Lampung, its second feedmill in Sumatera. Acquired from Sierad Produce, the mill was modified to comply with CJ’s standards, said General Manager Sales & Marketing Tevi Melviana. “The mill has an installed capacity of 20,000 tonnes/month for poultry feed,” Mr Tevi told Asian Agribiz. At the same complex, CJ also added a new line with an installed capacity of 1200 tonnes/month of shrimp feed. Mr Tevi said the mill is aimed to cover demand from Lampung, Bengkulu, Jambi, Palembang and Bangka Belitung.
|GreenFeed updates 10-year-old Cambodian feedmill|
[26 November 2014] GreenFeed Vietnam Corporation’s 10-year-old feedmill in Cambodia is currently undergoing renovation works to expand capacity and to adopt energy-saving solutions. The plant in Cambodia will operate at its maximum capacity of 200,000 tonnes/year after renovation works are complete early next month, General Director Tran Ngoc Chi told Asian Agribiz. “Our new feedmills, starting with the one built in Dong Nai in 2012, all feature the latest in engineering technology and plant design. They are efficient, run on low costs, rely more on renewable energy and deliver consistent production.” By 2020 it hopes to produce 4 million tonnes of feed per year.
|Poultry India 2014 opens today|
[26 November 2014] The 8th edition of Poultry India opens today and will continue until November 28 at HITEX Exhibition Centre in Hyderabad. It promises to offer new technology in breeding, feed milling, broiler & layer farming, equipment, health and nutrition, and processing from local and international suppliers. “Poultry India is a unique platform to display developments and thinking for the improvement of the industry and also attract ample trading and investment opportunities. The main aim is to help the industry players to keep abreast of the latest developments and practice in poultry production and management,” said the show organisers. Asian Agribiz is at booth number A20 promoting our market intelligence, conferences and skills development.
|CP considers buying back Tesco|
[26 November 2014] More than 15 years after selling out of a local supermarket chain to Tesco Plc, Dhanin Chearavanont, CEO and Chairman of Charoen Pokphand Group (CP), is considering buying back the business valued now at about USD 10 billion, sources told Reuters. Any bid would be made through Mr Dhanin’s CP Group, Tesco’s original partner two decades ago. Tesco spun off China operations this year to a separate joint venture and operates just in South Korea, Malaysia and India. Euromonitor International says Tesco ranks No 2 in Thailand behind Japan’s Seven & I Holdings Co Ltd.
|Corn prices likely to remain subdued in India|
[26 November 2014] Corn prices in the domestic market are likely to remain subdued this year due to abundant supply from the EU and the US. According to a report from USDA, the production of corn in the EU and the US is likely to be higher by 13.8% and 3.5% respectively. Production in India however, is estimated to decline by around 10% to 16 mt against 17.7 mt last year. “Global supply of corn has exceeded demand in the last four years,” said Raju Choksi, Vice President Agro-commodities of trading company Anil Nutrients. “India’s exports declined to 2.5 million tonnes in 2013-14 from 4.7 million tonnes a year ago as Indian exports were not viable due to higher prices,” he added.
|JBS eyes Asia with acquisition of Primo|
[26 November 2014] Brazilian food giant JBS, the world’s largest meat processor, has acquired Australia-based Primo Smallgoods. According to CEO Wesley Batista the acquisition is aligned with its strategy to expand high value-added products and brands into competitive regions such as Asia. With this USD 1.25 billion purchase, JBS aims to leverage Australia’s strong food-safety reputation to increase its presence in countries such as Singapore, Taiwan, China and Japan. “We have the conditions to double Primo’s production volume,” he said.
|Ekuinas may divest Burger King franchise|
[26 November 2014] Malaysia's Ekuinas Nasional Bhd is open to divesting its investments including its 74.1% stake in Cosmo Restaurants Sdn Bhd, the franchise holder of Burger King in Malaysia. The company also owns the franchise for Singapore under Burger King Singapore. Datuk Abdul Rahman Ahmad, Chief Executive Officer declined to comment on the current stage of negotiations with Brahim’s Holdings Bhd on the potential sale of its Burger King franchise.
|CP Indonesia gets loans worth USD400m|
[25 November 2014] Indonesia’s largest poultry company Charoen Pokphand Indonesia signed a syndicated loans agreement, worth the equivalent of USD 400 million, with 15 international and local financial institutions in Jakarta recently. The company said it will use the loans to secure funding needed for the company’s business expansion over the next few years as well as to support its working capital needs. Director Ong Mei Sian said the company expects 10% growth in sales to USD 2.3 billion at the end of this year, while total revenue reached USD 1.8 billion during the first nine months of the year. The company’s net profits stood at USD 140.5 million as of September this year, she added.
|Phillippines to establish halal economic zone|
[25 November 2014] The Philippines hopes to attract foreign investments by creating a halal economic zone in the country, Senen Perlada, Director of the Department of Trade and Industry’s Export Marketing Bureau said. This will also allow the Philippines to take advantage of opportunities in the growing global halal market. He said the government is considering the conversion of a part of the Zamboanga City Special Economic Zone into a halal ecozone, which will be a gateway to the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area, a region of over 57 million consumers. Mr Perlada also noted the need for an internationally recognised halal-certification agency in the country. Presently, the Islamic Da’wah Council of the Philippines is the only halal certifying organisation in the country that is a member of the World Halal Council.
|Vietnam's shrimp exports to hit USD 3.8 billion|
[25 November 2014] The Vietnam Association of Seafood Exporters and Processors forecasts shrimp export revenues of USD 3.8 billion this year as compared to USD 3 billion in 2013. According to the Ministry of Agriculture and Rural Development, 2014 will be a big year for Vietnam’s shrimp farming industry as output is expected to shoot up by 20.4% year-on-year to 660,000 tonnes. There are 676,000 hectares of shrimp-breeding ponds, an increase of 46.4% from the same period last year and 33.3% higher than targeted. The southern region accounts for 84.4% of Vietnam’s shrimp production.
|Indonesia’s cattle feedlot industry in stagnant mode|
[25 November 2014] Indonesia's cattle feedlot industry is currently in a difficult situation, said Joni Liano, Executive Director of the Indonesian Feedlot Association (Apfindo). “Global beef demand is increasing so supplies from cattle producing countries such as Australia, the US and Brazil are decreasing. China, Vietnam and other countries prefer to buy Australian cattle due to quality and competitive price. Demand has driven prices up,” Mr Joni explained to Asian Agribiz. “We have to compete with other countries to get live feeder cattle from Australia. But the selling price of beef in Indonesia cannot be increased because of limited purchasing power.” He predicted that the flat growth will continue into 2015. From January to October, members of Apfindo imported 500,000 heads of live feeder cattle from Australia.
DSM Aquaculture Conference Asia Pacific 2014, Bangkok, Thailand
Onsite report by CRAIGE ALLAN
[25 November 2014]
Update on current shrimp disease threats in Asia
According to Dr Timothy Flegel, Centex Shrimp, Mahidol University & BIOTEC, White Spot Syndrome virus (WSSV) and Yellow Head Virus (YHV) are still the most lethal pathogens for both vannamei and monodon. A new virus called Covert Mortality Nodavirus (CMNV) was recently reported from China, and has also been found in India and Thailand. CMNV has no distinctive gross signs of disease. Speaking of the Early Mortality Syndrome, he said its key diagnostic feature is Acute Hepatopancreatic Necrosis Disease (AHPND). The high prevalence of AHPND bacteria, including in broodstock indicates a biosecurity weakness in production systems. “I believe that APHND is a game-changer. It will force us to turn to more closed and biosecure culture systems,” said Dr Flegel.
Creating the perfectly coloured crustacean
Australian consumers have a preference for prawns which are a consistent, dark red colour, earning an AUD 3-4/kg premium. “The Australian market is almost exclusively monodon,” said Dr Nicholas Wade, Research Scientist, CSIRO. “Pigmentation in shrimp improves with increasing levels of carotenoids and there is strong evidence that the effects of carotenoids can extend beyond pigmentation at higher levels; including improved survival, growth, stress resistance and reproductive performance. Any changes in pre-harvest pigmentation are retained through freezer storage,” he noted.
Determining phytate P in raw materials
Based on analysis of a large number of plant raw materials, DSM has developed NIR calibrations to allow nutritionists to rapidly determine phytate levels. Our NIR results are highly correlated with wet chemistry results (R2 = 0.92), reported Dr Arne Korsbak, Market Development Manager, Feed Enzymes, DSM. “Due to the diversity of NIR instruments we can supply customers with a specific file correction for NIRS6500, XDS and DS2500 machines, for samples prepared to master specifications (particle size and temperature). For customers who do not have NIR, we have a phytate calculator, which will ensure that they have sufficient phytate levels in their diets to get the full benefit of Ronozyme enzymes”, he advised.
Feeding shrimp with biofloc
Widely known as “the father of biofloc”, Dr Yoram Avnimelech, Technion – Israel Institute of Technology, said biofloc is a relatively simple system. Intrinsic features of intensive ponds – high mixing, full aeration and very high concentrations of organic matter provide optimal conditions for a ‘microbial soup’ containing up to 1 billion organisms/mL. Shrimp retain about 30% of the nitrogen in feed, the remaining 70% is excreted. Biofloc is efficient at converting this nitrogenous waste to microbial protein. “Practically every bacteria in the world can do this, there is no need for special probiotics”, stated Dr Avnimelech. The bacterial biomass in biofloc contains about 61% crude protein, so it is possible to reduce feeding by up to 30%. The shrimp gut empties after about 1 hour, however, with biofloc systems shrimp are never hungry, they can eat whenever they need.
TPP and its impact on the global pig trade
[24 November 2014]
Around the world today, more trade agreements are being forged, liberalising markets to the advantage, and at times disadvantage, of its member-countries. The Trans-Pacific Partnership (TPP) is just one of these agreements, involving the US, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which together account for nearly 40% of global GDP. In September, hog farmers groups from Australia, Canada, Chile, Mexico and the US called for a “comprehensive, high-quality” agreement that eliminates tariffs on nearly all products, including pork. The Asian Agribiz team sought reactions from industry players in the region on this issue.
Vietnam sees TPP as a driving force
Vietnamese livestock operators see the TPP as a driving force, a strategic alliance that will propel the local swine industry to achieve better productivity and growth. “Vietnam sees the TPP as a boon because it accords the country the opportunity to become valuable trade partners with developed nations such as the US, Japan, Australia, New Zealand and Singapore. Vietnam can also approach new markets with lower import taxes,” said Dr Thanh Nguyen Tien, Technical Director for GreenFarm Asia Co Ltd, a subsidiary company of feedmiller GreenFeed Vietnam Corporation. Seen in this light the TPP offers Vietnam the opportunity for farmers to change and improve their farm management, product quality control and production cost. “It will force pig farmers and the swine industry as a whole to adapt to its rules and standards,” said Dr Thanh.
Impact to pig industry minimal if Indonesia joins
If Indonesia finally joins the TPP, the market liberalisation will have no big impact on the pig industry in the country, according to Phaithoon N Na Ayudhaya, Business Development Advisor of Charoen Pokphand Indonesia. “Indonesia’s FMD-free status is a strategic advantage and will serve as technical barrier for pork imports from TPP member countries that are not FMD-free,” he told Asian Agribiz. Besides, he added: “Pork is not a staple meat here since Muslims are a majority. Not to mention that people who consume pork here still prefer fresh warm meat sold in wet markets, while imported pork is usually in frozen form.”
Small farmers face uncertain future
Small swine farmers in Malaysia will face an uncertain future when the TPP is introduced. Their farming methods and the small scale of production may render them uncompetitive when the market is open, said Dr Cheang Heng Toon, General Manager of Chau Yang Farm, a subsidiary of Charoen Pokphand Foods (Malaysia) Sdn Bhd. “Malaysia is self-sufficient in all pork products but quality control in countries like the US is higher. Many small farmers in Malaysia are ignorant of the TPP and its effects. When the markets open the livelihood of these small farmers may be affected,” he said. Compared to 10 or 20 years ago the local industry has improved but, he said, small to mid-sized farmers have not gone all out and modernised their farms. “You need technology. You need to apply science in your farms or you will lose out.”
Tariffs still necessary to level playing field
Although not a member of the TPP, the Philippine government has expressed interest in joining the regional trade bloc. However, Pork Producers Federation of the Philippines President, Edwin Chen told Asian Agribiz that while such trade agreements “will force the local pig industry to be more competitive,” at this time the Philippines still needs to have some tariff on imported pork especially those coming from North and South America. Industry players pointed out that while local pig producers are already at par with their counterparts from other countries in terms of technical parameters, they remain burdened by high production costs. Mr Chen said if the government allows the entry of tariff-free pork, they will ask that it also allows the tariff-free entry of feed raw materials to help local players become cost competitive. He added that the government should provide more world-class slaughterhouses and processing facilities as well as develop the nautical highway to make logistics more competitive.
Indonesia shows little interest in TPP
Indonesia is not part of the TPP but local media report that the government is paying attention to the process and the possible results of the negotiation. However, it has no interest in being a part of the FTA. Yose Rizal Damuri, Head of Economics at Indonesia’s Centre for Strategic and International Studies, told local media that “it is not surprising that Indonesia shows little interest in the TPP. As a comprehensive and advanced trade agreement, the TPP covers many economic issues that are not in Indonesia interests. Joining the trade pact is expected to be costly to the economy and would likely reduce competitiveness even further.”
China, excluded from TPP talks, pushes rival plan
China promoted its own plan for a Free Trade Area of the Asia-Pacific (FTAAP) at the recent APEC summit in Beijing, while Chinese publications attacked the TPP as an effort to contain and control China. President Xi Jinping said he did not think TPP was targeting China, but TPP was attacked the next day in an article posted by Peoples Daily, the Communist Party’s official newspaper. “Washington still cherishes the wishful thinking that it is able to hammer out a US and Japan-led free trade system … and bend China’s will to their wishes,” said the article. It noted that China was already the largest trading partner for eight of the 12 countries involved in TPP talks, and said that a free trade area in the Asia-Pacific could not survive without China. APEC leaders agreed to begin studying China’s proposed FTAAP even as TPP negotiations continue.
|Betagro plans to set up Laos, Cambodia plants|
[21 November 2014] Betagro plans to establish pig farms and food processing plants in Laos and Cambodia to cater to address the Asean Economic Community scheduled to take effect at the end of 2015, said Athapol Uraipraiwan, Senior Vice President of the company. Betagro's planned plants in the two Indochina countries would become production bases for the company’s exports to the European and Japanese markets which are its major customers. Betagro projects meeting its USD 2.65 billion earnings target this year, with its business growing 10% in 2015, Mr Athapol added.
|Indonesia’s feed industry may only grow 10%|
[21 November 2014] The Indonesian Feed Millers Association has revised its growth estimate for the national feed industry from 12% to 10%. “We revised our prediction based on the first semester's performance,” Chairman Sudirman FX told Asian Agribiz. “Buying power of chicken and eggs this year is weak, partly due to currency depreciation. Besides, the government’s move to cut broiler DOC production affected the growth of the poultry industry,” he explained. Although the problems have affected the feed industry, Mr Sudirman believes that 10% growth is achievable. “Feed consumption this year may reach 15.2 million tonnes,” he said.
|Philippines pigs up, poultry down in the first nine months|
[21 November 2014] According to the Bureau of Agricultural Statistics ‘Performance of Philippines Agriculture January to September 2014’ report the livestock subsector which shared 16.1% in total agricultural production expanded by 1.05%. Pigs were the subsector’s source of growth. Gross earnings amounted to about USD 3.9 billion at current prices, a 6.1% increase from last year’s gross receipts. Production of the poultry subsector declined by about 0.7%. It accounted for 14.8% of the total agricultural output. Production increments were noted for chicken and duck while there was contraction in egg production. The subsector grossed around USD 3.1 billion at current prices or 7.6% more this year.
|Progress for Indonesia’s frozen poultry business|
[21 November 2014] Of the total broiler production of around 2 billion birds, only 17% is slaughtered in standardised slaughterhouses, according to the Indonesian Poultry Slaughterhouses Association (Arphuin). Of this, only 30% of the dressed birds and portioned cuts are sold in frozen form, with the rest sold in fresh chilled form. Arphuin Chairman, Achmad Dawami told Asian Agribiz that the frozen chicken business is growing. “Investment in slaughterhouses is increasing alongside investment in cold storage facilities,' he said. Mr Dawami is optimistic that the percentage of dressed birds and portioned cuts sold in frozen form could reach 40% in less than five years.
|Thailand on bird flu alert|
[21 November 2014] Thailand’s Ministry of Public Health has strengthened surveillance measures against the bird flu following reports about the latest outbreak of H5N8 in Netherland which led to the culling of 150,000 chickens. Permanent Secretary Narong Sahametapat said that current cooler weather in Thailand and movement of migratory birds in winter would raise the risk of disease spread. “The most important areas for surveillance are along the borders with Laos, Cambodia and Myanmar,” Dr Narong said. Thailand has remained bird flu-free since 2006.
|US to expand agri exports to Asean|
[21 November 2014] The US Department of Agriculture (USDA) said it is looking to expand its agriculture exports to Asia, particularly the Asean countries. In a statement, USDA Undersecretary Michael T. Scuse announced that he will lead a trade mission to Malaysia and the Philippines from March 9-14, 2015. While in Malaysia, the trade mission will also meet with buyers from Burma and Thailand. According to the USDA, Malaysia, the Philippines, Thailand and Burma together took in USD 5.4 billion of US agricultural products this year. Mr Scuse noted that growing income levels in the region coupled with increasing demand for US products presents market potential, adding that Malaysia is part of the Trans-Pacific Partnership negotiations that, once implemented, “will create new opportunities for US exporters.”
|Vietnam is largest shrimp supplier to South Korea|
[21 November 2014] In the first nine months of 2014, South Korean shrimp imports increased by 6.4% year-on-year in volume, and half of this came from Vietnam. From January to September 2014, South Korea imported 44,418 tonnes of shrimp, valued at USD 407.4 million, up 6.4% in volume and 44.5% in value, reported the Vietnam Association of Seafood Exporters and Processors. As imports from China plummeted and imports from Thailand fell sharply, Vietnam became the largest shrimp supplier to South Korea. Vietnam increased its market share from 33% last year to 44%.
|Meat processors and Horeca dominate frozen beef market|
[20 November 2014] Indonesia’s need for beef this year is estimated to reach 580,000 tonnes, according to data from the Ministry of Agriculture. The need will be met by local supply and frozen beef and live feeder cattle imports. Executive Director of the Indonesian Meat Importers Association, Thomas Sembiring told Asian Agribiz that the association this year can import up to 170,000 tonnes of frozen beef. “Around 50% of our total imports is for the meat processing industry, and around 45% for the Horeca (Hotels, restaurants and caterers) market.” Mr Thomas said imported frozen beef is preferred by the Horeca markets because of its quality and safety. Mr Thomas sees demand for imported frozen beef increasing.
|Importers advised to source DDGS from one plant |
[20 November 2014] One of the main complaints about DDGS is its inconsistency in nutrient content. On top of this, the latest report shows that more than 85% of ethanol producers are now extracting oil from DDGS because it offers good economic benefits. This reduces its energy content and feeding value. “You must get your matrix right, and then it is a good product,” said one participant at the US Grain Council’s roadshow on DDGS in Kuala Lumpur, Malaysia on Tuesday. Dr Budi Tangendjaja, Technical Director, US Grains Council, said there are 210 ethanol producers in the US and they practice different manufacturing processes. He said it is important to understand your source.” It would be ideal for feed producers to buy DDGS from one or a few plants so they will know its nutrient content,” he said.
|Thailand eyes Ayutthaya as chicken and egg hub for AEC|
[20 November 2014] Ayuttaya Provincial Livestock Office under Thailand's Department of Livestock Development plans to promote Ayuttaya as a center for broiler meat and egg production, to the markets in the Asean Economic Community. At present, Ayutthaya is the country’s major broiler farming area, housing more than 3 million birds and generates more than USD 51.8 million in income annually. Most farms in Ayutthaya practice the closed house system. Ayutthaya has easy access to the harbour and airport without passing through busy Bangkok as well as ample large cold stores.
|Halal test kit sells well following food integrity scandals|
[20 November 2014] French company Capital Biotech said it has received orders from as far as Indonesia for its Halal Test, which tests within 10 minutes whether a food item contains porcine ingredients. The company said it has received nearly USD 135,000 in orders. The one-use device costing USD 8.60 “allows you to dispel a one-off doubt, for example when you are on holiday or when a new halal product hits the market”, said Jean-Francois Julien, co-founder. To use the device, the diner mixes a small amount of food with hot water and inserts a small strip into the mixture. The strip tests for pork proteins and takes less than 10 minutes.
Asian Agribiz Regional Dairy Update
[20 November 2014]
Philippines dairy imports predicted to decline in 2014
The Philippines produced less than 1% of its total growing annual dairy of 1.886 million metric tonnes (liquid milk equivalent) in 2014, and continues to be a major global importer of dairy products, especially milk powder. Despite the continued rapid expansion of the food processing industry, persistent high prices in 2014 are expected to result in total annual imports dropping 7.5% to about 1.8 million tonnes (from 1.946 million tonnes in 2013). Dairy products are the country’s third largest agricultural import after wheat and soybean meal. Imports are expected to recover slightly to 1.9 million tonnes in 2015 as growth in local demand will likely continue to exceed any increases in domestic supply, predicts the USDA-FAS.
Indonesia’s daily milk production to reach 1.7ml
Indonesia’s milk production this year is estimated to reach 1.7 million litres/day on average, according to the Indonesian Milk Cooperatives Association (GKSI). Chairman Dedi Setiadi said that last year production was only 1.5 million litres/day, a 20% drop from 2012 due to the high price of beef that led dairy farmers to sell their cows. “However this year the situation is back to normal and heifer prices are around USD 820/head, so farmers have increased their cow population. Plus milk price has increased to USD 0.4/litre from USD 0.34,” said Mr Dedi. He said local production accounts only for 20% of the total demand and the rest is imported from New Zealand, Australia, the US and EU.
Japan's milk production to fall in 2014
Japanese milk production is projected to fall again in 2014, though a modest recovery is expected in 2015, according to the USDA-FAS. Dairy farmers continue their steady exit from the industry, without securing successors, resulting in fewer farms and lower milk production. At the beginning of 2014, there were a total of 18,600 dairy farms (down 4% year-on-year) raising a total of 1.395 million head of cows and heifers (nearly 2% lower). Japan’s 2014 national fluid milk production is projected to be around 7.315 million tonnes (down 3% on 2013), with milk for drinking at 3.915 million tonnes (down 2%) and milk for processing at 3.350 million tonnes (down 4%).
Australian dairy farm targets Chinese infant formula market
Australia's Hope Dairies, controlled by Hancock Prospecting, is seeking about 5,000 ha of farmland in Queensland, and is aiming to start production in the second half of 2016. The dairy farm, planned to be among Australia's biggest, may produce as much as 30,000 tonnes of formula a year. It will also supply UHT milk. “All the output is intended to be exported to China and the company will have investment partners including a Chinese entity”, said Jason Morrison, a spokesman for Gina Reinhart's Hancock Prospecting. Rinehart's planned operation would about 70 to 75% of its own milk from a herd of about 16,000 Holstein cattle.
Yakult Indonesia increases capacity to meet demand
Yakult Indonesia is planning a USD 25 million upgrade of its existing plant in Ngoro Industrial Park, East Java to increase production capacity, said Managing Director Indra Tjahjono. The plant currently has two machines with a production capacity up to 1.2 million bottles a day. Mr Indra said it plans to boost the Ngoro plant’s capacity to 4 million bottles a day in the next five years to meet rising demand. Production at the Ngoro plant will double to 2.4 million bottles in May 2015 with the addition of production facilities. Yakult Indonesia has another plant with a capacity of 3.6 million bottles a day in Sukabumi, West Java. Mr Indra revealed that it is also studying plans for a third plant in South Sulawesi or in Sumatra.
Dairy farmers to gain with China-Australia FTA
Under the FTA, finalised on 17th November, the 15% tariff on infant milk formula will be phased out within four years, while the 10% tariff on milk powder exports will be cut within 11 years. The FTA will also eliminate tariffs on cheese, butter and yoghurt within nine years, and ice cream, lactose, casein and milk albumins within four years. Liquid milk will be tariff-free within nine years. However, in the FTA with New Zealand, tariffs on liquid milk, cheese, butter and all milk powders can be reinstated if volumes breach a certain limit. Those rules won't apply for Australian products, with the exception of tariffs on whole milk powder.
|China lifts ban on Brazilian beef|
[19 November 2014] China has reopened its market to Brazilian beef following a two year ban after a BSE scare. Brazil's Agriculture Minister, Neri Geller described the reopening as a victory and an endorsement of the quality and safety of the animal and plant health protection system in Brazil. China bought USD 37.768 million worth of Brazilian beef in 2012. Brazil’s total beef exports to China doubled in 2013 despite the embargo, as Brazilian beef moved into the unofficial “grey channel” through Hong Kong. This announcement came soon after China and Australia endorsed a free trade agreement which abolishes tariffs on Australian exports to China, benefiting in particular beef. Minister Neri said he is not concerned by the agreement as he is confident of the Brazilian beef sector's capacity for supply.
|Ciomas enjoys good business in frozen chicken|
[19 November 2014] Ciomas Adisatwa, a subsidiary of Japfa Indonesia has seen demand for the company’s frozen whole carcass and boneless portioned cuts grow, Marketing Manager, Fenty Nirmala Aisah told Asian Agribiz. Ciomas’ frozen chicken is retailed through trader who distribute it to the Horeca [hotels, restaurants and caterers] sector, meat processors, retailers and in different regions in Indonesia. Ms Fenty said that demand for frozen chicken in the Jabodetabek [Jakarta, Bogor, Depok, Tangerang and Bekasi] region was lower than in outside Jabodetabek. “This is because there are many slaughterhouses located in and around Jabodetabek, so the preference is for fresh chilled.
|Two new H7N9 cases in China |
[19 November 2014] Hong Kong's Centre for Health Protection (CHP) has reported that a 54-year-old woman from China's Xinjiang Uygur Autonomous Region and a 45-year-old woman from Jiangsu province were diagnosed with H7N9 avian flu. The 54-year-old woman has died. There have been 443 human H7N9 cases in mainland China since February 2013, 58 in Jiangsu and four in Xinjiang, the CHP said. Apart from conducting thermal imaging at boundary control points and directing avian flu education at travellers and the travel industry, the CHP is encouraging people to avoid contact with birds.
|Preference for fresh beef|
[19 November 2014] Executive Director of the Indonesian Cattle Feedloters Association (Apfindo) Joni Liano told Asian Agribiz that imported live feeder cattle fattened for three months before slaughter are sold to slaughtermen who then sell the meat fresh. “Slaughtering is in the evening and the meat is distributed in the early morning to traditional markets and meatball sellers,” Mr Joni said. “However, some of our members have their own slaughterhouses. So they also sell their beef in fresh chilled form to hotels, restaurants and retailers.” According to Mr Joni, consumers prefer warm meat and this affects the growth of frozen beef demand.
|Livestock sector set to grow in Cambodia|
[19 November 2014] Although 90% of the livestock sector in Cambodia is managed by backyard farmers, Sen Sovann, Deputy Secretary General of the Ministry of Agriculture, Fisheries and Forestry said there is still great potential for growth. With a population of 16 million currently, meat consumption stands at 276,622 mt with a potential to grow to 314,028 mt in 2020 when the population is expected to grow to 17.7 million. Addressing delegates at Ildex Cambodia in Phnom Penh last week, Dr Sen said Cambodia exported 19,753 cattle to Vietnam, 22,989 pigs to Laos and 28,380 cattle (in transit from Thailand) to Vietnam in 2013.
|Biggest lobster farm in the world launched in Sabah|
[19 November 2014] Malaysia’s USD 1 billion Integrated Lobster Aquaculture Park, the world’s biggest lobster aquaculture park, is expected to produce 7% of the world’s supply of cold water and warm water lobsters. A joint venture between Darden Aquascience Sdn Bhd, Nexus Sustainable Seafood Sdn Bhd and Inno Fisheries Sdn Bhd, the project is located off the coast of Sabah, in Semporna. The park is located within a 9300ha area and will generate up to 18 million kg of hatchery-based tropical Sabah native spiny lobsters once it reaches maximum capacity in 2029.
|Asian millers caught short by surprise grain rally|
[18 November 2014] Feed millers in Asia have been hit by a surprise rally in the futures market over the past few weeks. Several millers in Indonesia, Vietnam and Thailand, have been ordering cargoes and locking in premiums they must pay over futures, but leaving that futures level to be fixed later. US soymeal futures jumped more than 30% in October, while corn gained almost 18%. “A lot of buyers in Asia have bought premium so they have the physical goods, but of course they haven’t priced their futures,” said a Singapore-based trader. Chairman of the Indonesian Feed Millers Association Sudirman FX told Asian Agribiz that corn prices are rising. “As of November 11, corns at CBOT were priced at USD 3.7/bushel. Soybean meal has risen from USD 310/short tonne to USD 370. Currency depreciation of 25% this year will also affect millers,” Mr Sudirman explained.
|Cambodia aims to reduce pig imports|
[18 November 2014] Cambodia's Department of Animal Health and Production (DAHP) is working towards increasing the country's cattle, pig and poultry production to meet local demand and reduce imports, particularly of pigs. Speaking to Asian Agribiz on the sidelines of Ildex Cambodia, Deputy Director of DAHP, Dr Ok Savin said up to 800 pigs are imported daily from Thailand and Vietnam to complement local supply of 3000-3500 pigs. “With the help of the EU we hope to improve the efficiency and competitiveness of livestock production in Cambodia," she said.
|US renews antidumping duties on Vietnamese fish|
[18 November 2014] Vietnam’s exports of tra and basa fish into the US will continue to be subject to anti-dumping tariffs for the next five years, authorities said. The US Department of Commerce said the revocation of the anti-dumping duty order could lead to the continuation or recurrence of underselling by up to 63.88% in the US market. The department instead will re-calculate the duties for affected Vietnamese exporters every year. Vietnam shipped USD 240 million worth of frozen tra and basa fillets into the US, Vietnam’s second-largest import market after Europe, in the first nine months of this year, a 17% decrease in value compared to the same period last year.
|Indonesia’s Centralpertiwi ships processed products to China|
[18 November 2014] Centralpertiwi Bahari, a subsidiary of CP Prima, recently shipped 23.53 tonnes of processed shrimp products to China for the first time. Assistant Vice President for Food Processing Samiono said the products that are under the Xia Bao brand include ebi fry, shrimp cutlet, shrimp nugget, shrimp roll and shrimp sticks. “The next shipment will be in early December. We are sure that our products will gain ground in China since we already have 30-year experience in foreign markets such as Japan, the US, Europe and Canada,” said Mr Samiono. Centralpertiwi Bahari is the first Gobal GAP certified aquaculture company in Indonesia.
|China, Australia seal major free trade deal|
[18 November 2014] Ministers from China and Australia signed a Declaration of Intent yesterday, which will see the scrapping of tariffs on Australian dairy products, beef and cattle, among others. The agreement will be signed in 2015 after the draft is translated and legally reviewed. Trade Minister Andrew Robb said the deal was the most significant China had ever signed with a developed country. The big winners are seen to be Australia’s dairy and beef industries, with dairy exports moving to a similar tariff reduction schedule as New Zealand. Beef exports, according to The Australian, are set to gain a multi-billion dollar boost. Parliamentary Secretary Josh Frydenberg said the agreement meant that “up to 95% of our exports over time will enter the Chinese market tariff-free”.
|Demand for safe meat drives growth in additives market|
[18 November 2014] The global market for animal feed additives is projected to reach USD 24.7 billion by 2020 driven by increasing per capita meat consumption and growing demand for safer and high quality meat, according to a Global Industry Analysts Inc report. Since the ban on antibiotics, livestock producers are seeking ways to promote animal production and deliver similar benefits offered by antibiotic growth promoters. This is fertile environment for the growth of feed additives such as acidifiers, enzymes, amino acids, probiotics, prebiotics, organic acids, as well as proprietary blends have emerged as potential alternatives. The report added that demand for amino acids is forecast to witness strong gains in developing markets.
|Indonesia may import 3.2mt corns this year|
[17 November 2014] The Indonesian Feed Millers Association has predicted that corn imports this year will be higher than last year. “From January to October, we imported some 2.6 million tonnes of corns. This may reach 3.2 million tonnes by end 2014,” Chairman Sudirman FX told Asian Agribiz. “Early this year we predicted that we will import less than year, since we were optimistic that national corn production will increase. However some natural calamities such as Kelud volcanic eruption in Java, Sinabung volcanic eruption in North Sumatera and also floods in Java affected corn harvests in those regions.”
|India should continue with non-GM soy |
[17 November 2014] India should continue with non-GM soybean in the interest of farmers and the environment, experts said. “Non-GM soybean is the pride of India. Value added soybean products including soybean meal are fetching premium price in the international market. It is a win-win situation for all stakeholders in the value chain,” Ruchi Soya Industries Managing Director Dinesh Shahra said. He added that soybean prices in India have always been higher than the US and above the Minimum Support Price announced by the government. So, Indian farmers are getting a reasonable realisation for non-GM soybean seeds produced by them.”
|Indonesia’s feed industry still promising|
[17 November 2014] Chairman of Indonesian Feed Millers Association Sudirman FX said the potential of feed industry in the country is still promising. “Our per capita consumption of chicken is only 8kg while eggs is only 90. The potential to increase is big. Companies such as Charoen Pokphand, Japfa and Malindo keep expanding. In Grobogan, Central Java for instance, there will be four feedmills. And then West Java will have three new feedmills. Sulawesi will also have more new feedmills since many millers are expanding their business to eastern Indonesia,” Mr Sudirman told Asian Agribiz. General Manager of CJ Superfeed Tevi Melviana also told Asian Agribiz that the company recently put its new feedmill in Lampung into operation. Malindo and New Hope will also set up feedmills in Lampung next year.
|Increase in cattle exports to Asia|
[17 November 2014] Live cattle export numbers from Western Australia rose by 56% to 305,000 head, driven by increased exports to Indonesia, Vietnam and Israel. Increased supply, however, may drive down prices, and this is worrying exporters. According to Southeast Asian Livestock Services Manager Dean Ryan, Indonesia led strong export numbers, but this may not be the case in 2015. “We have also had a large increase in the numbers exported to Vietnam.
|Murray Gouldburn pins hopes on Asia|
[17 November 2014] Australia’s largest dairy cooperative Murray Gouldburn will raise connectivity with markets outside Australia. “Until Australian companies like ours have our own people anchored in great bases like Singapore, China and Jakarta, living with them – understanding how they eat, what they want, we are not going to go very far,” Managing Director Gary Helou told participants at the Australian Farm Institute roundtable dinner in Melbourne. “We need a new mind-set in [these countries], a new footprint and a new food chain,” he said. He reiterated that innovation was at the forefront of the Murray Gouldburn vision and it was all about customising food for Asian consumers.
|Asia Pacific tops global aquafeed market|
[17 November 2014] Over the last two decades, the aquafeed industry has shown parallel growth to the aquaculture industry. Aquafeed is a demand-driven industry. There is growing expectation for aquaculture to meet the shortfall of aquatic products and to cater to the growing demand of the increasing population. The Asia Pacific market topped the revenue chart of the global aquafeed industry, accounting for around 76.1% and 75%, both by value and volume respectively, of the total market. The aquafeed market is expected to grow at CAGRs of 12.1% and 10.7% both by value and volume from 2014 to 2019, with the highest growth projected in the Asia-Pacific region. China is one of the major countries and also a leading producer of aquafeed.
|Itochu, Dalian Marine Fisheries boosts cold chain logistics|
[14 November 2014] In an effort to tap growing Asian perishable demand, Japanese logistics firm Itochu Logistics and Chinese fishing company Dalian Marine Fisheries Group have created a cold chain logistics service to serve China and eventually Southeast Asia. The service will be launched in 2015. China’s cold chain storage is concentrated on the coasts and near ports. The country still relies on refrigerated trucks to bring food and other perishables inland. According to the Global Cold Chain Alliance the global chilled and deli food markets will grow an average of 2.71% from 2012 to 2016, primarily because of the continued rise of the middle class in Asia.
|Avanti Feeds records strong Q2 results|
[14 November 2014] Avanti Feeds, a leading manufacturer of prawn and fish feeds and shrimp processor and exporter from India has reported a robust 84% year-on-year jump in standalone net profit at USD 5.6 million for the quarter ended September 30, 2014 (Q2), on the back of strong operational income. The company registered a profit of USD 3 million in the same quarter a year ago. Total income from operations for the quarter grew 74% to USD 86.4 million. Meanwhile, for the first half (April-September 2014) of the current financial year 2014-15, the company reported a net profit of USD 10 million. Avanti Feeds is the leading manufacturer of prawn and fish feeds and shrimp processor and exporter from India.
|China’s first inland checkpoint in Henan|
[14 November 2014] China’s General Administration of Quality Supervision, Inspection and Quarantine will establish a meat import inspection checkpoint in Luohe city, Henan province, the central China base of meat processor Shuanghui Group. Initially the centre will be used mainly by Shuanghui and is expected to be completed within four month. “In the future other meat companies could also use the checkpoint as long as they gain approval from Henan authorities,” said Dou Kai, General Manager of Shuanghui Import and Export Trade Company. The checkpoint will increase the efficiency of checking and quarantine of imported meat products in the province, helping to decrease costs.
|Thailand works hard to control hemorrhagic septicemia in cattle|
[14 November 2014] Cows and buffalos in five Thai provinces have been found to be infected with hemorrhagic septicemia. Ayuth Harintharanon, Deputy Director-General of the Department of Livestock Development (DLD), said the latest outbreak was in Chiang Rai province, north of Thailand, following outbreaks in Uthai Thani, Kanchanaburi, Tak and Nakhon Sawan. Some 250 cattle are sick and 32 have died. Smuggling of cows and buffalos from neighbouring countries is blamed for the outbreaks while the transition from the rainy season to winter may cause a further spread of the disease. Mr Ayuth said the DLD has sent its team out to treat, vaccinate and increase surveillance on transportation of cattle, disinfect high risk areas and destroy infected carcasses. The DLD hopes to put the brakes on the disease in 10 days from when it was discovered.
|H5N6 an emerging threat to poultry in East Asia|
[14 November 2014] Outbreaks of the highly pathogenic H5N6 avian influenza (HPAI) strain in Asian poultry may be an emerging public health threat, according to a November Empres Watch report from the UN Food and Agriculture Organisation (FAO). The H5N6 avian flu emerged in China in May. One man in China’s Sichuan province died of the virus on May 6 despite the disease being incapable of readily transmitting from birds to humans. A month later, the FAO identified 3434 poultry outbreaks of HPAI H5N6 in China, Laos, and Vietnam. FAO is conducting evaluation of poultry vaccines and diagnostic tests, and working with the US Agency for International Development to assist affected countries. The outbreaks are expected to rise as winter approaches.
|Vietnam hopes to maintain 5% tariff on ‘crucial’ items|
[14 November 2014] Vietnam is scheduled to apply zero import duties on more than 1700 tariff lines from the beginning of next year under the Asean trade pact. Starting January 1, 2015, Vietnam will have to slash the 5% import duty on 1720 tariff lines to 0% in compliance with the Asean Trade in Goods Agreement (ATIGA). Vietnam is given a flexibility condition to 2018 to zero import duties on ‘sensitive commodities’, said Nguyen Thi Bich, head of the International Cooperation Agency under the Vietnamese Ministry of Finance. “For products that are crucial to the country’s agriculture such as sugar, salt, pork, poultry, eggs and tropical fruits, Vietnam is negotiating to maintain import duties on them at 5%.” A zero import duty will allow Asean-made products to be sold at much cheaper prices in Vietnam.
|Teo Seng Capital records 56% y-o-y increase in 3Q 2014 net profits |
[13 November 2014] Teo Seng Capital Bhd’s net profit jumped 56% on year to USD 3.23 million from USD 0.97 million in its third quarter of financial year 2014 ended September 30. The better earnings were due to higher selling prices and lower feed costs. Revenue for the quarter has also risen 19.1% on year to USD 28.76 million. For the cumulative nine-month period of financial year 2014, net profit almost doubled to USD 9.21 million from USD 5.30 million in the year before, while revenue was up 12.8% to USD 81.68 million. In its 2013 annual report Chairman Lau Jui Peng noted: “By all accounts 2013 was an extraordinary year for Teo Seng Capital, and we are well positioned for continued growth and success in the subsequent year.” The company has eight of its farms accredited and granted export licence by Singapore’s Agri-Food and Veterinary Authority.
|Vietnam on track to become US’ largest supplier|
[13 November 2014] The American Chamber of Commerce said Vietnam will become the largest Asean supplier to the US by end 2014 – with a net export value of around USD 29.4 billion. This would be a historical achievement for a nation surrounded by supply giants. It added that Vietnam was likely to become the wealthiest Southeast Asian country in terms of trade. Additional statistics indicate that bilateral trade with the US will surge to USD 57 billion by 2020, cementing Vietnam’s prominence as a valuable hub for foreign investment and trade. Seafood, agriculture and garment are the nation’s top exports. According to Tran Thien Hai, Chairman of the Vietnam Association of Seafood Exporters and Processors, shrimp exports to the US increased 51.2% annually, reaching USD 820 million. Vietnam is now the third-largest shrimp exporter to the US, behind Indonesia and India.
|New president targets food self sufficiency|
[13 November 2014] Indonesia's new President Joko Widodo said he wanted the Southeast Asian nation to be self-sufficient in various food staples within five years. With a rising population of more than 240 million, Indonesia's food imports fluctuate each year as eating habits change or to offset potential food inflation risks. Indonesia will aim for self-sustainability in beef within one year, while targeting three years for rice, soybeans and corn, and four or five years for sugar, Mr Widodo said at a business conference. He did not give details on how that would be achieved. Even before being sworn in Mr Widodo had previously said he wanted the country to be self-sufficient in sugar, rice and corn within four years. To help the agriculture sector, which accounts for about 15% of GDP in Southeast Asia’s largest economy, Mr Widodo said that the construction of 11 new reservoirs would begin next year, with the aim of building 25-30 within five years.
|FAO backs farm input subsidies|
[13 November 2014] Investing in crop insurance and input subsidies, not price intervention schemes, is the way to support Thai farmers, the United Nations Food and Agriculture Organisation (FAO) said. Hiroyuki Konuma, FAO Assistant Director-General and Regional Representative for Asia and the Pacific, said providing input subsidies will encourage farmers to grow more food at lower costs, while crop insurance will protect them in case natural disasters destroy their produce. Mr Konuma told a UN Model Conference on Food Loss and Food Waste in Southeast Asia that this was a ‘much healthier way’ of helping farmers. He said support for the sector will prove increasingly important as food security is not guaranteed. By 2050, a 60% increase in global food production will be needed – rising to 77% in developing countries – to keep supplies high. “If we are to reduce poverty the best solution is to support small-scale agriculture and family-farming.”
|Taiwan to inspect processed meats in markets, steakhouses|
[13 November 2014] Taiwanese health department are now reintroducing inspections on processed meat in night markets and steakhouses to see if their products are labelled correctly. According to the authorities few restaurants properly label their processed meat products. Since these products need to be cooked thoroughly the fear is that many consumers may be getting undercooked meat. Also many consumers are unaware that they are being served processed meat taking them instead for a real cut of steak. The proposed amendment will force restaurants to mark their meat products correctly and to tell the consumers if they are using processed meat instead of original cuts.
|Malaysia develops halal contamination scene investigation|
[13 November 2014] Scientists in Malaysia have created the world’s first Halal Contamination Scene Investigation unit to test the existence of pork DNA and track sources of condemnation in halal food. “The unit is trained to conduct a thorough investigation to find out the source of the contamination, whether it was by sabotage, a problem in the formulation process or whether it was contaminated post-production,” Nor Amin Mohd Noor, Malaysian Technological Park (TPM) Biotech Manager, said. Tracing the source of confirmation may require searching outside the factory, starting with the methods of transportation of the products. The investigations may also include checking the packaging and storage process of the product. As the demand for halal products increased in several countries, TPM’s halal services have been extended to Korea, Brunei and China, he said.
|Philippine corn farmers seek removal of export restriction|
[12 November 2014] Philippine corn farmers once again called on the government to remove export restrictions on corn after the Philippine Department of Agriculture said the country has met its corn self-sufficiency target last year. Philippine Maize Federation Inc President Roger Navarro said his group has formalised their request with the National Food Authority, which must issue a certification on self-sufficiency before corn can be exported, however, there is no approval yet. He said, considering that other countries can freely export their corn into the Philippines, local corn farmers should also be allowed to export their corn with restrictions.
|Thai corn price down on ample supply|
[12 November 2014] The price of corn in Thailand dropped to around USD 0.22/kg, a decrease of 2.52% from around USD 0.23/kg in June due to ample supply flooding the market this peak harvesting season, said Lersak Riewtrakulpaibul, Secretary General of the Office of Agricultural Economics. Also, the recent spell of rain has given rise to corn quality issues. Mycotoxins, such as aflatoxin, have developed quickly, and livestock operators are putting off the purchase of the commodity for stocking, Mr Lersak said. Thailand is expected to produce around 5.01 million tonnes of corn in the 2014/2015 crop year while demand of corn for animal feed is predicted at 5 million tonnes for this year, up 5.93% from 4.72 million tons in 2013.
|Aussie beef producer CPC eyes opportunities in Asia|
[12 November 2014] Australia’s largest privately-owned beef producer Consolidated Pastoral Company (CPC) expects more than half its revenue to come from Asia within two years as it pursues partnership opportunities in China, Indonesia and new markets such as Vietnam. CPC holds a 50% interest in a joint venture that owns and operates two cattle feedlots in Indonesia and a partnership in China. According to Troy Setter, Chief Executive, the company was expanding one of the feedlots in Indonesia and was on the lookout for joint-venture partners in China. “We plan to build off our Indonesia and Chinese businesses. The Asian business now represents 40% of revenues. I think we will see that at least half of our revenue will come from Indonesia and greater Asia in the next couple of years.”
|India should continue with non-GM soybean, said experts|
[12 November 2014] India should continue with non-GM soybean in the larger interest of farmers and the environment, experts said. “Non-GM soybean is the pride of India. Value-added soybean products including soybean meal are fetching premium price in the international market for being authentic non-GM soybean products. It is a win-win situation for all stakeholders in the value chain,” Dinesh Shahra, Ruchi Soya Industries Managing Director, said. President of Soy Food Promotion and Welfare Association added: “It is observed that soybean prices in India have always been higher than the US and also much above the Minimum Support Price announced by the government of India. Thus Indian farmers are getting reasonable realisation for the non-GM soybean seeds produced by them.”
|Indonesia, Vietnam drive WA cattle exports up by 56%|
[12 November 2014] Live cattle export numbers from Western Australia (WA) rose by 56% to 305,000 head, driven by increased exports to Indonesia, Vietnam and Israel. Increased supply, however, may drive down prices, and this is worrying exporters. According to Southeast Asian Livestock Services Manager Dean Ryan Indonesia was the main influence on the strong export numbers, but he is concerned the statistics may not replicate in 2015. “It’s mainly because Indonesian import permits have increased," Mr Ryan said. “We have also had a large increase in the numbers exported to Vietnam. I would forsee that the Vietnamese trade will continue in 2015, but I am a bit concerned about Indonesia. There is some price resistance in Indonesia, with the larger numbers of cattle that have gone out, the prices have increased dramatically in Australia.”
|Walmart aims to boost profitability in its China stores|
[12 November 2014] Walmart Stores is focusing on food safety as the world’s largest retailer aims to boost profitability of its more than 400 stores in China, Scott Price, Chief Executive, told Reuters. “We play a very important role in China delivering food safety and quality products to our customers,” Mr Price said. Walmart has experienced “a few bumps around the road” said Mr Price. China was the only market of Walmart’s five largest ones that saw falling same-store sales in the second quarter, down 1.6% from the year-earlier period. He said the company would “continue to invest very aggressively” with a focus on food quality and safety to push up traffic to its Chinese stores.
|Itochu & CP agree to food tie-up|
[11 November 2014] Itochu Corporation, Japan’s third-largest trading company has agreed to a business tie-up with Thailand's Charoen Pokphand Group as the two companies seek to expand food supply in Asia. Itochu will buy a USD 852 million stake in Hong Kong-based unit CP Pokphand Co. and the Thai company will take USD 1 billion of Itochu’s stock, the companies said in separate statements. The cross shareholdings will help the two boost sales and cut the cost of buying raw materials as well as reducing asset running costs. Itochu President, Masahiro Okafuji in an interview with Nikkei Asian Review said “one idea is to build a distribution network for frozen and refrigerated food in China and elsewhere. We also want to utilise CP’s business model to access markets in Myanmar and India.”
|Indonesia’s corn, soy production predicted higher than last year |
[11 November 2014] Indonesia’s Statistics Agency predicted that corn production this year will reach 19.13 million tonnes, or an increase of 3.33% from the previous year. The agency stated that the production increase is based on harvest area and productivity increase. “South Sulawesi, West Nusa Tenggara, Central Java, Gorontalo and Lampung will score high production,” said the agency. Soybean production, meanwhile, is predicted to increase by 921,340 tonnes, or an increase of 18.12% from the previous year. West Java, Central Java, Aceh, South Sulawesi and Lampung will remain as the main production centres of soybean in the country.
|KFC Box, a new outlet concept in Indonesia|
[11 November 2014] Currency depreciation has pushed the operator of the KFC chain in Indonesia PT Fast Food Indonesia (FFI) to develop a cheaper new outlet concept called KFC Box. The first one is in Manggarai, Jakarta. “In terms of size, KFC Box is smaller than regular KFC outlets. One KFC Box only cost us around USD 132,000, while investment for the regular outlet is 2.5 times higher than the KFC Box. This will help us expand this business,” said Director Justinus D Juwono. The company plans to add two new KFC Box outlets in Jakarta by December, and 20 outlets in 2015.
|China close to finalising beef deal with Australia|
[11 November 2014] One million Australian cattle worth up to USD 1 billion are set to be exported to China each year, under a new trade deal being finalised between the two countries, reported ABC Radio Australia. The size of the deal would amount to a doubling of Australia's existing live cattle exports. The Australian Government said the cattle deal was not linked to long-running Free Trade Agreement (FTA) talks between Australia and China. China took more than 78,000 head of dairy cattle and about 15,000 beef cattle last financial year.
|Trans Food to open five new Wendy’s outlets|
[11 November 2014] CT Corp Group’s subsidiary Trans Food & Beverage, operator of US-based Wendy’s QSR chain, plans to open five new Wendy’s outlets early next year. President Director Fransiscus Sumampow said the new outlets will be set up in tier 2 and 3 cities namely Malang (East Java), Palembang (South Sumatera), Yogyakarta, Balikpapan (East Kalimantan) and Medan (North Sumatera). “We chose the locations as it’s not easy to find good locations in tier 1 cities, apart from the competition,” Mr Fransiscus revealed. He added that one new outlet will cost the company around USD 247,000.
|India to boost fish production|
[11 November 2014] Agriculture Minister Radhamohan Singh has said that the government is all set to launch the ‘blue revolution’ on the lines of the ‘white revolution’ which played a big role in increasing milk production in the country. The Blue Revolution envisages transformation of the fisheries sector with increased investment, better training and development of infrastructure. “India is the second largest producer of fish but scores low on productivity," said Mr Singh. Output in the country is presently about 10 million tonnes, with inland fisheries accounting for 5.6 million tonnes and marine fisheries 3.4 million tonnes. “India has large natural resources, and water bodies such as reservoirs, lakes and ponds, in addition to an 8,118km-long coastline. So it is well positioned for a Blue Revolution,” he added.
|Indonesia renews plans for beef self-sufficiency|
[10 November 2014] Indonesia’s new President Joko Widodo told media last week he wants the nation to be self-sufficient in beef within five years. According to Meat & Livestock Australia, Australian live cattle exports to Indonesia from January to September increased 115% year-on-year, to 532,998 head. Beef was introduced into Indonesia’s self-sufficiency plan in 1999, with the first plan aiming to achieve self-sufficiency by 2005. Self-sufficiency is going to be difficult to achieve, as the vast majority of beef producers have only one or two head of cattle that is sold for slaughter when money is needed for special occasions.
|US approves cooked poultry exports from China|
[10 November 2014] The US Food Safety and Inspection Service (FSIS) has officially approved four Chinese poultry processing plants to export cooked poultry products to the US. The four plants are: Shandong Delicate Food; Weifang Legang Food Plant No. 2; Qingyun Ruifeng Food; and Qingdao Nine-Alliance Group, Changguang Plant. FSIS inspected the plants in March 2013 and determined that China’s processed poultry inspection system is equivalent to that of the US. Experts consulted by Asian Agribiz said they did not expect high export volumes because US production costs are currently lower than China's. The FSIS also said it would re-inspect processed chicken from China when it arrived in the US, which may lead to delays and higher costs for importers.
|CPF reports 57% Q3 profit jump |
[10 November 2014] Charoen Pokphand Foods (CPF), Thailand's largest meat and animal feed producer, reported third-quarter net profit up 57% year on year, largely thanks to higher chicken prices and improved performance by its foreign operations. CPF achieved a net profit of USD 126.7 million in the three months to September 30. Third-quarter sales rose 7% year-on-year to about USD 3.4 billion, CPF said in a statement. Domestic chicken prices are expected to remain high until the first half of next year because of tight supply and rising demand for exports to Japan and Russia, analysts said.
|Vasep predicts seafood exports to climb this year|
[10 November 2014] The Vietnam Seafood Exporters and Producers (Vasep) expects total seafood exports in 2014 to be worth about USD 7.7 billion, due to high demand by the end of the year. Nguyen Hoai Nam, Deputy General Secretary of Vasep, said since the beginning of this year, the nation has exported seafood worth an average of USD 644 million/month. This is based on the General Department of Customs' statistics of USD 5.8 billion of seafood exports during the first nine months of this year, reported the Hai Quan newspaper. Last year, the total export value of seafood reached USD 6.7 billion, higher than the target of USD 6.5 billion. Vasep hopes for success again this year, he said, adding that it will be primarily due to the high export value of shrimp, which contributes 50% to the total export value of seafood products.
|Top three poultry diseases in Indonesia|
[10 November 2014] Based on field cases monitored by Romindo Primavetcom from January to October 2014, infectious bronchitis (IB) Qx strain topped poultry diseases in Indonesia. Technical Department Manager, Dr Antonius Sigit Pambudi told Asian Agribiz that the cases found in egg production centres in Java and Sumatera caused egg production to decline by 20%. The second was Newcastle disease (ND). “Our technical staff found the disease in layers, broilers and some breeders,” said Dr Sigit. The third was mycotoxicosis.
|China to send inspection team to Ireland|
[10 November 2014] China has agreed to send its inspection team to audit systems and beef plants in Ireland in December. Obtaining the green light from China to move to this stage represents an important milestone for Ireland. According to Simon Coveney, Minister for Agriculture, Food and the Marine, “with growing Chinese demand for high quality meat, Irish producers are well placed to take advantage of the market opportunity”. He said demand for beef in China is expected to rise by 1 million tonnes over the next five years.
|Growing potential for probiotics use in animal feed|
[07 November 2014] Poultry farmers regularly treat their birds with antibiotics to prevent the development of intestinal infections. But, with concerns over the development of antibiotic-resistant bacteria, some farms are keen on introducing probiotics. “This is going to be the future but farmers must be able to see two things – the costs effectiveness and the benefits. Can I sell my chicken at a higher price?” asked Dr Chia Tet Fatt, Director of Otemchi Biotechnologies. He told Asian Agribiz that Otemchi is already exporting its probiotics product Lactopac to three countries. “We have selected the lactobacilli strain from Malaysia and Singapore. The strains found in the tropics are more severe. This makes them more potent. We isolate, purify and test the strain.” Lactobacillus are naturally found throughout the world in plants, soil, animals, water and air.
|ND still dominant in Asia|
[07 November 2014] Monitoring poultry diseases in Asia, Dr Teguh Prajitno, President Director of Japfa Group’s subsidiary Vaksindo, said Newcastle disease (ND) cases are still dominant in most countries in Asia. “In China and Korea, infectious bronchitis [IB] is more dominant,” he told Asian Agribiz. In Indonesia, ND and IB are in the list of top three poultry diseases. Compared with the previous year, ND and IB cases this year seem to be at the same rate, while avian influenza cases show a decreasing trend, according to Dr Teguh. “Our field team also found some cases of mycotoxicosis in commercial broilers and layers with slow growth in clinical sign. We estimate this is due to poor quality of raw materials and poor feed storage management.”
|US red meat set for record exports|
[07 November 2014] US exports of beef and pork should set a record this year, with a combined total value of USD 13 billion, Mark Jagels, Chairman of the US Meat Export Federation said. Joel Haggard, the federation's Senior Vice President for Asia Pacific said the US has been able to keep pork export volumes to Asia steady. However, with Europe increasing its exports to the region, US market share is declining. “China’s pork sector continues to modernise,” he added. China’s pork production is up 3%, causing some softness in global pork trade, considering the nation is the largest pork importer in the world. For US beef, “we see record values for some cuts going to Japan, Korea, Taiwan and Hong Kong,” Mr Haggard said, noting that China has also become the world’s largest beef importer.
|Japfa sees profit slump|
[07 November 2014] Japfa has reported a steep fall in profits in the third quarter of 2014 due to surging costs and declining purchasing power. Its net sales were up by around 17% to USD 1.57 billion in the January-September period, compared to the same period last year. Still, net profits were slashed by more than half. “In the second half of 2013, the rupiah depreciated by approximately 20% against the US dollar. The increase in general wages in 2014 was not enough to compensate for the impact of the weaker rupiah. This has weakened the purchasing power of low-income consumers,” the company statement said. The poultry business contributed around 86% of the company’s annual sales last year. Animal feed contributed 44%, commercial farming 35% and DOCs 7%. Japfa said it had increased its selling prices to mitigate the losses from its animal-feed segment.
|Forum facilitates Indonesia’s shrimp exports to US|
[07 November 2014] Indonesia’s Ministry of Trade recently facilitated a trade forum between Indonesia’s Trade Promotion Centre and its counterparts in the US. One result of the trade forum was the signing of an MoU between Indonesia’s shrimp exporter Indokom Samudera Perkasa and a US shrimp importer Central Seaway Company Inc with a value of USD 5 million. “Through the forum, potential buyers can easily find professional and reliable shrimp exporters from Indonesia,” said Trade Minister Rachmat Gobel. Based on Indonesia’s Ministry of Trade data, from January to July 2014 export value of frozen shrimp to the US reached USD 518.3 million, or an increase of 65.09% from the previous year.
|Government to inspect processed meat in Taiwan|
[07 November 2014] Taiwanese lawmakers are coming down hard on traders including restaurant owners selling processed meats to ensure that their products are labelled correctly. According to Kuomintang lawmakers, they fear that many consumers may be getting undercooked meat. Also there is concern that consumers may be unaware that they are being served processed meat. Considering the cost of a real cut of steak, it is questionable for all-you-can-eat barbecue restaurants to launch the USD 22.96/person sets so commonly seen around the nation. Lawmakers plan to propose an amendment to force restaurants to mark their meat products correctly and to tell consumers if they are using processed meat instead of original cuts.
|Vaksindo shifting focus to bacterial vaccine|
[06 November 2014] Vaksindo, a subsidiary of Japfa Group involved in animal vaccine production, is shifting its focus from viral vaccines to bacterial vaccines. President Director, Dr Teguh Prajitno told Asian Agribiz that this does not mean that viral diseases are no longer a concern. "We still produce viral poultry vaccines from local isolates. But we found that there is a need for bacterial vaccines.” Recently Vaksindo launched a Coryza vaccine. This tetravalent vaccine, according to Dr Teguh, also contains B and C strains from local isolates for better protection against Coryza. In the near future, Vaksindo plans to launch vaccines for E. coli and Clostridium. “This year we found that necrotic enteritis [NE] in breeders was rampant. So we think that a vaccine to control Clostridium is needed,” Dr Teguh said.
|Robust exports to boost GFPT revenue in 2014|
[06 November 2014] Robust export growth is expected to boost sales of GPFT by 8-10% this year, Investor Relations Manager Jutamas Ingpochai said. The company’s exports in the first half of the year grew 15%, with the Japanese market being the main contributor to the expansion while the European market remained a major player. In 2013, GFPT sales revenue was USD 526.4 million. Analysts at DBS Vickers Securities (Thailand) rated GFPT shares as a top pick and forecast an operating profit of 28% in 2014 and 11% in 2015.
|Shanghai bans winter live poultry sales|
[06 November 2014] Shanghai will again ban live poultry sales next year from January 1 to April 30, the height of the bird flu season. The move, for the second year in a row, worries poultry traders because last year’s closing caused wide swings in demand, according to China Animal Husbandry Network. Live traders face four months of overhead with no business, while chilled poultry traders say demand for their product falls 30% when live trading resumes. Nevertheless the city of Nanjing, capital of adjacent Jiangsu Province, is expected to follow Shanghai’s example.
|Russia establishes imports from India and South Korea|
[06 November 2014] In a new initiative, Russian veterinary watchdog Rosselkhoznadzor plans to allow meat imports from India and South Korea. "Rosselkhoznadzor is ready to explore the possibility of safe pork supply from other countries in Asia, particularly South Korea, and India," said a statement from the veterinary body. Supplies of pork from South Korea were restricted from February 2010, in response to an outbreak of food-and-mouth-disease in the country. Russia has already allowed imports of buffalo meat from India, while imports of pork and other meat products will be adopted in two steps. "The veterinary service will continue the certification of companies, and soon we will come to producers of poultry, egg powder and dairy goods," said Alexei Likhachev, Russian deputy economic development minister.
|Chinese poultry production to remain flat|
[06 November 2014] Chinese consumers have yet to regain confidence in the safety of domestic broiler production after a series of scandals and outbreaks of "bird flu", and as a result production will remain flat at 13 million tonnes in 2015, according to the USDA’s annual report on China’s poultry market. China’s higher feed costs will also limit production, the USDA report said. Imports were forecast to fall 2% to 235,000 tonnes in 2015, while exports were expected to rise 5% to 460,000 tonnes due largely to robust demand in Malaysia and Japan.
|Vietnam sees growing demand for Australian cattle|
[06 November 2014] Imports of meat and livestock products will continue especially after Vietnam has joined the TPP, according the Tuoi Tre News service. Vietnam has surpassed China (90,000 live cattle in 2014) to become the second-largest importer of Australian cattle, behind only Indonesia, with shipments tipped to double to 130,000 head, according to Vietnamese and Australian meat traders. In 2013, Vietnam imported almost 67,000 cattle from Australia, but this has risen by more than 90% to 120,000 head in the first seven months and is projected to reach 130,000 by year's end. Meat and Livestock Australia said the growth is forecast to level out and an 8% decline in cattle exports to Vietnam is predicted for 2015. But the MLA, in a recent trade update, said expected demand to Vietnam was likely "to remain robust over the coming years, given the reported depletion of the national cattle herd and strong beef demand in the region".
|Evonik commissions new methionine complex in Singapore|
[05 November 2014] Global amino acids supplier Evonik yesterday commissioned its new methionine complex located in Jurong Island, Singapore. The plant has an annual capacity of 150,000 tonnes, bringing Evonik’s methionine [DL-methionine] capacity worldwide up to 580,000 tonnes. CEO Dr Klaus Engel revealed that the plant is the largest single investment to date for Evonik of over USD 627 million. “It is also the first world-scale methionine plant in the fast-growing Asian market,” he claimed. Head of Health & Nutrition Business Unit, Dr Reiner Beste ensured that: “With the new plant, we are able to offer our customers in Asia maximum security of supply.” Dr Beste added that progress in feed technology, rapid population growth and rising consumption of meat and eggs in the region are fueling Asia’s high methionine demand.
|Otemchi Biotech to raise production |
[05 November 2014] Singapore-based premix company Otemchi Biotechnologies Pte Ltd hopes to increase production to 200 tonnes/month from the current 20 tonnes/month after its new production plant in Malaysia’s southern state of Johor opens mid-2015. Dr Chia Tet Fatt, Director of Otemchi Biotechnologies, told Asian Agribiz, that with economies of scale, the price of Lactopac pre and probiotics will come down. “Removing antibiotics from animal feed is imminent. Even now the price is feasible if farmers sell their birds at a premium of 20-30%. Lactopac will not be as cheap as antibiotics but it will be feasible for farmers,” he said. Lactopac, sold in bags of 1kg, is given at an inclusion rate of less than 0.6%.
|New bird flu case in China |
[05 November 2014] Hong Kong's Department of Health (DH) reported that a 58-year-old woman in China's Jiangsu province has H7N9 avian flu and has been hospitalized in critical care. This brings the total number of cases in mainland China to 441 since the reports of H7N9 avian flu in humans began in February 2013. Of the total, 57 were in Jiangsu province. The DH has encouraged people to avoid live-poultry markets and farms, completely cook eggs and poultry before eating them, wash hands often and wear a mask if respiratory symptoms develop.
ASIAN AGRIBIZ REGIONAL DAIRY UPDATE
[05 November 2014]
Tamil Nadu increases retail prices of toned milk
At a time when an increase in power tariff is looming large, India’s Tamil Nadu government increased the prices of all toned milk (treated buffalo milk) varieties by USD 0.16/litre. The hike took effect on November 1. The retail price of toned milk, will go up by 40% to USD 0.55. Chief Minister O Panneerselvam said the procurement prices of cow and buffalo milk would also go up by USD 0.08 and USD 0.06 a litre, respectively. Mr Panneerselvam said the increase in the retail prices was meant to recover the rise in the procurement prices and the cost of processing. “The increase in the procurement prices would benefit 22.5 million milk producers.”
Indonesia, milk production in 2014 forecast to be stable
In 2014, total Indonesian production of fluid milk is expected to remain stable. Although there was a massive decline in small-holder cattle population in 2013, medium and large-scale farms continued to expand. Indonesian fresh milk production is expected to reach 1.68 million litres/day. In 2015, Indonesian fresh milk production levels are expected to increase 1.2% to 1.7 million litres/day. According to the Indonesian National Statistics Agency’s (BPS) the high level of dairy cattle culling in 2013caused the Indonesian dairy cattle population to decline to 395,000 head in 2014.
Philippines, first half dairy production up
The Philippines dairy production industry was expected to earn around USD 6.9 million in sales in the first half of the year growing a modest 5.6%, but is now on track to reach about 13.4 million by year end. Production in the first half reached 9,910 tonnes, up by 3.2% compared with the same period last year. Production comes from an estimated 9,608 cattle, 8,501 carabao, and 2,978 goats. The local dairy production comes mainly from cow’s milk, 65%; carabao milk, 32%; and goat’s milk, 3%. However, despite the growth in liquid milk production, the country remains to be an insignificant producer of its own dairy needs, importing about USD857 million of dairy products in 2013.
Nestlé opens Dairy Farming Institute in China
Nestlé officially opened a 60 hectare Dairy Farming Institute (DFI) in Shuangcheng, in Heilongjiang Province, China in October. Established to support the rapid development of dairy farming in China, the institute will serve the entire industry and will teach dairy professionals and other students about all aspects of modern dairy farming - thus helping Chinese dairy farmers secure a viable future. SCR Engineers Ltd was chosen by Nestlé to lead the cow monitoring and welfare aspects of the DFI, reflecting SCR's strengths as the world-leading pioneer of Cow and Milking Intelligence and its proven experience in large-scale Chinese dairy farms. Alltech is partnering with Nestlé to provide an in-vitro fermentation model, a diagnostic tool that simulates rumen fermentation and evaluates the nutritive value of total mixed rations.
Mahindra Agribusiness enters dairy segment
Mahindra Agribusiness, a subsidiary of home-grown auto major Mahindra & Mahindra, is planning to enter the dairy industry by focusing on production of pouched milk and is scouting for an acquisition in this space. The company will enter two verticals this year – dairy and pulses, and will focus on entering two other verticals next year.
|Vaksindo setting up new animal vaccine plant|
[04 November 2014] Vaksindo, a subsidiary of Japfa Comfeed Indonesia involved in animal vaccine production, is setting up a new plant in West Java, aimed at meeting increasing demand from domestic and international markets. “Our existing plant in Wanaherang, West Java is running at full capacity at the moment,” President Director, Dr Teguh Prajitno told Asian Agribiz. The new plant including modern equipment and facilities will cost the company around USD 8.3 million and is targeted to be operational in 2015. “All live vaccines and Gumboro vaccines will be produced at the new plant. The old plant, meanwhile, will be focused on producing killed vaccines and avian influenza vaccines,” said Dr Teguh.
|Corn, DDGS and freight prices up|
[04 November 2014] US corn prices on the CBOT were up by over 6% for the three contracts in December, March and May. Meanwhile, DDGS prices in the US continue to move up as domestic and international demand is high. FOB US Gulf prices were up by USD 8 against last week and were indicated at USD 194/MT. International freight rates were up against last week for some locations and this has added pressure to imported grain prices, said Amit Sachdev, India Representative, U S Grains Council.
|Red Star ready to develop beef supply chain|
[04 November 2014] Vietnam’s Red Star Company, an integrated farming facility that includes a feedlot, an abattoir and 1500ha of farmland to grow feed for cattle, is ready to start processing its first consignment of Australian cattle. Dean Ryan, from exporting company South East Asian Livestock Services, hopes it’s the start of a strong supply chain. "They’ve got a beautiful feedlot facility that’s quite mechanised and they obviously want to spread out their sales program over a period of time and optimise the price they could get.” Vietnam has become a major customer for Australian cattle and in the 2013/14 financial year imported a record 131,000 head of cattle.
|India's vannamei production could hit 500,000 tonnes|
[04 November 2014] With an increase in vannamei production, as many as 15 new shrimp processing plants are being planned or built in India’s Andhra Pradesh state, reported Undercurrent News. A new USD 10 million plant is being trialled currently. “In 2014, I think we will hit a production level of 350,000 tonnes. For 2015, this could be 500,000 tonnes, if all goes well,” said Marimuthu Sudhakaran, a farm and hatchery operator expanding into processing. “Currently, during peak production from May-July, there isn't enough processing capacity to go through all the raw material. We need more processing and that is coming. There are 10-15 plants being built or planned in Andhra Pradesh alone,” he said.
|Vietnam sees an increase in canned food imports|
[04 November 2014] Vietnam has seen a rapid increase in canned food imports mainly from Thailand, Malaysia, the Netherlands and the US. According to statistics released by market research firms, the total consumption of canned foods in Vietnam has risen steadily in recent years, by around 500 tonnes/year. The market also saw price competition - an imported can of fish often costs USD 0.62 to USD 1.50/can, while a locally made product costs less than USD 1.20/can. Leading local brand Vissan said they sell more than 100 types of canned beef, pork, chicken and fish. In 2010, Vissan’s sales accounted for 29% of the canned food market. This number is decreasing with the growing presence of imported brands.
|Taiwan opens food safety office |
[04 November 2014] A Cabinet-level Food Safety Office began operations recently in Taiwan to tighten food control and ease the public's fear in the wake of a spate of cooking oil scandals in recent months. The new office, tasked with 20-25 experts and officials from various agencies, such as the Council of Agriculture, the Ministry of Health and Welfare and the Ministry of Economic Affairs, is an upgrade of the Executive Yuan's food safety promotion task force, according to Taiwan News. The government said it will be a driving force in cracking down on substandard food products across the country and in food safety management across ministries and departments.
ASIAN AGRIBIZ WEB SPECIAL
Use of alternative raw materials in feed production
[03 November 2014]
There is no ‘crystal ball’ to predict the future price and supply of main raw materials such as corn, soybean and fishmeal. But over time, there has been an uptrend in the price of key ingredients. Alternative raw materials that are available locally are often sought to substitute the ingredients. Price, quality, supply and anti-nutrient content are some considerations when using these alternative raw materials. The Asian Agribiz team sought industry feedback on the use of local alternative raw materials.
CP Indonesia sources and evaluates alternative ingredients
With the increasing price of feed ingredients Charoen Pokphand Indonesia is active in sourcing and evaluating alternative feed ingredients. Nutritionist for Eastern Indonesia Dr Nasril Surbakti said that the company has been using alternative feed ingredients for its poultry and pig feeds such as palm kernel meal and copra meal. “And the new ingredient that we recently adopted is cotton seed meal. We use only about 2-3%.” Dr Nasril said that alternative feed ingredients can’t be used in high volume. “If used more than 10%, it may negatively affect the performance.” He added that it also uses cassava since it has found the technology to control the dust during processing.
PKM can bring real benefits to farmers
Besides rice other alternative feed ingredients used in Malaysia are tapioca, palm kernel meal (PKM), palm kernel cake, copra cake and soy hull. All these products are viable as they are locally available but are not used as much because of their disadvantages. PKM is common in feedlots, among dairy cattle, and in the swine sector but copper content, between 20-30 ppm, from the fertilizers used makes it unpopular as levels as low as 25 ppm in the diet can be toxic to sheep. Nutritionist Dr Vijaya Raghavan said that shell content is another issue facing the industry as this can damage the intestinal track and gizzard of birds. “We should be willing to adopt new technology which can translate into real benefits for farmers,” he said.
Cassava, sweet potato good alternatives to corn, wheat
Cassava and sweet potato can be direct substitute for corn and wheat in swine diets and partially replace them in poultry diets, said Mercy Buyoc, a leading animal nutritionist and consultant in the Philippines. “We’ve been studying these ingredients, but the problem is that they compete with human requirements.” She noted that cassava meal has the best potential because it is easy to propagate, but the Philippines “need a high yielding variety that can be mass produced at a lower cost.” Toward this end, government support would be critical. “We have the land and manpower for this, but we lack the financial and technical support from the government.”
Quality of local fishmeal is unstable
CJ Feed Indonesia uses alternative protein sources for its poultry feed like local fishmeal with 50% protein content from East Java. “We can’t use it in high volume. The average is only 3%, to replace the use of imported fishmeal,” said Nutritionist and R&D Head, Nugroho Adi. “This is because the quality variation is high.” In terms of price, however, local fishmeal is 50% cheaper than imported fishmeal. Mr Nugroho explained that result from several trials showed that the use of 2% local fishmeal in starter feed and 4% in finisher feed in broilers showed no differences with the control feed (100% imported fishmeal).
Rice co-products, tapioca as alternative carbohydrate source
Thailand is known as a large producer of rice and cassava. In the country rice co-products especially rice bran and broken rice, and tapioca are often used as alternative carbohydrate raw materials. “Livestock producers in Thailand use local crops like rice and tapioca as a substitute for corn for feed cost management and as a feed intake booster in the case of rice bran in pig feed,” said an official of the Thai Feed Millers Association. Tapioca is not used much in chicken feed as chickens do not like cassava in their feed. It is more often used in pig feed, but in a limited amount. At Burapa Farm, where three cross-line finishing pigs are raised, the farm owner uses cassava at an inclusion rate of below 30%. “Exceeding this rate won’t suitable for the three cross-line pigs,” he said. The use of rice co-products and tapioca, however, depends on prices. For instance tapioca demand for ethanol production affects the price.
Seasonality of supply a problem for local by-products
Although rice bran, pollard, copra meal and corn by-products can be effective alternative feed ingredients, but availability is a problem, said Mercy Buyoc, a leading animal nutritionist and consultant in the Philippines. Rice bran has high potential, she said, because it has the same energy value as corn and even has higher protein level. “Usage will be dictated by availability and the effect to meat quality, such as soft fat in pork. It is a good for broiler and layer diets because of the high level of linoleic acid, a major nutrient needed by poultry.” She also warned that quality might be an issue as some suppliers intentionally add adulterants to the product.
CGE uses coconut meal, rice polish
Ceylon Grain Elevators (CGE), the largest animal feed producer in Srilanka, uses coconut meal and rice polish at an inclusion rate of 2-5% as alternative raw materials for its poultry feeds. According to Assistant General Manager (Technical) Jeff Li Zhenjie, coconut meal is a good source of protein. “It contains 20-21% crude protein, however the fibre content is around 13-15%.” Rice polish, meanwhile, contains 9-12% crude protein, 10-14% fat and its metabolisable energy is around 2900-3100 kcal/kg. “Although the ingredients contain some anti-nutrient contents, we eliminate it by using enzymes and through extrusion,” said Mr Zhenjie. This year the average prices of coconut meal and rice polish are USD 270/tonne and USD 240/tonne, respectively. Mr Zhenjie added that the company continues to search for other local alternative raw materials.
Al-Meezan stocks its alternative ingredients
In Pakistan rice tips, rice polish, corn gluten and millet are available locally, but on a seasonal basis. To overcome this, Al-Meezan Poultry Feeds & Allied Products uses the alternative ingredients based on harvest schedule. Production Manager Dr Abdullah Ahmad explained that the raw materials are stocked up for about one month so it becomes more viable and economical. He claimed that the company saves by using alternative raw materials. “The price is reasonable. Rice tips is about USD 270/tonne, rice polish USD 200/tonne, corn gluten 30% USD 230/tonne, and millet USD 270/tonne.” Al-Meezan uses rice tips, rice polish and millet to substitute energy sources like corn, while corn gluten is an alternative protein source.
Using local ingredients is not easy
As a medium scale animal feedmiller, Indonesia’s Menara Feedmill thinks that using local alternative raw materials is not easy. Director Henry Haryono said: “We have to have a good focus in selecting the ingredients and suppliers. Common problem is that the quality fluctuates. Besides, we need to do trials to measure the right inclusion rate without affecting production performance. This takes time and money. So, we prefer to use regular ingredients such as corn, soybean meal and imported fishmeal due to quality concern,” said Henry.
Enzyme technology can increase the use of alternative ingredients
Among the alternative raw materials that are available and used in Malaysia are rice products such as rice bran, rice polish, full fat rice bran and rice bran with solvent extracted, which are high in fibre but also contain a high amount of anti-nutritional properties such as sand, silica and ash. To overcome these issues farmers can sieve the product or buy from quality suppliers. Rice products are popular in duck feed. It is also used in the layer and breeder industries at an inclusion rate of around 8-10% and 5-8% respectively. “Rice products can be used in the commercial broiler sector but this is where the sector must use enzyme technology to help the birds digest the fibre content,” said nutritionist Dr Vijaya Raghavan. “Protease can be used to hydrolyse vegetable protein such as soybean to release more energy so that alternative feed ingredients such as rice bran can be effectively utilised,” he said.
Fat content of rice should be stabilised
In Thailand rice bran is frequently used in pig feed, according to an official of the Thai Feed Millers Association. However the rice co-product is not popularly mixed into layer feed since farmers prefer to choose corn to boost their egg-yolk colour. “Pigs like rice bran-mixed feed as they like the smell. The ingredient also contains fat and vitamins,” the official said. According to Dr Hans H Stein from the University of Illinois, rice bran can be a good ingredient if the fat is stabilised.
|Thai egg price up ahead of holiday season|
[31 October 2014] Egg price in Thailand has risen on growing demand from hotels and restaurants ahead of the high tourism season. Annop Akaranithiyanont, President of the Layer Farmers Association, said that the association and farmers agreed on an increase in farm-gate price of THB 0.20/unit raising the selling price to THB 2.80 per egg. The retail price now is hovering around THB 3.20-3.30 per egg depending on transportation costs of each merchant. Mr Annop said the new price is still lower than production cost of around THB 3 per egg [USD 0.92]. This year, Thailand is expected to produce 14.27 billion eggs, up from last year’s production by 756 million eggs.
|China reports 51 bird flu Outbreaks|
[31 October 2014] China has officially reported 51 outbreaks of bird flu since September 1, according to the World Organisation for Animal Health. China stepped up its bird flu surveillance following outbreaks that seriously affected poultry sales in 2012 and 2013. Most of the recent outbreaks involved only one or two birds, although two larger ones led to the destruction of 7,400 birds. The surveillance also detected two strains, H5N8 and H5N3, previously unreported in China. Meanwhile, South Korea reported an outbreak of H5N8 that killed 1,200 ducks at a farm, with another 19,800 ducks destroyed as a precautionary measure.
|Vietnam, feedmillers renege on corn and soymeal deals|
[31 October 2014] Feedmillers in Vietnam have cancelled corn and soymeal imports after a steep drop in global prices, in a move that could compel suppliers to offer sharp discounts and chalk up huge losses, reported Reuters. Global corn and soymeal prices have plunged 25-35% in the past three months. Buyers in Vietnam have refused to honour deals to import some 200,000 tonnes of corn and 150,000 tonnes of soymeal in the past few weeks. Feedmillers are currently being offered Brazilian corn at USD 200 a tonne in containers, down from USD 275. For soymeal, the price drop is steeper with cargoes quoted at USD 475 a tonne, down USD 100 from when the deals were signed in July-August. Vietnam has seen corn imports doubling in five years to 2.2 million tonnes in 2013/14 and soymeal purchases have jumped to 3.1 million tonnes this year from 2.5 million tonnes 2008/2009, according to the US Department of Agriculture.
|Global pork production and China imports forecast to increase in 2015|
[31 October 2014] The USDA FAS forecast 2015 world pork production at 111.85 million tonnes, up 1.1% over 2014. In 2015, China’s pork production is projected to reach 57.35 million tonnes, 1.5% higher than 2014. China is the world’s leading pork producing nation with more than half of the world’s pork production. In 2015, world pork imports are forecast at 6.32 million tonnes, 1.2% higher than 2014. Japan, the main pork importing nation, is expected to import 1.28 million tonnes of pork in 2015, a 3.4% decrease from 2014, while China’s pork imports are expected to increase 23.5% over 2014 to a record 1 million tonnes.
|India, over-reliant on vannamei|
[31 October 2014] The Indian shrimp industry’s increasing dependence on vannamei production is a problem facing farmers even as producers could eventually see lower prices as early mortality syndrome hit competitors start to recover, said. V. Balasubramaniam, general secretary of the Prawn Farmers Federation of India. Of the 300,000 tonnes of shrimp the country produced last year, between 70-75% were vannamei, with the rest being black tiger, he said. Now, vannamei production is around 90%. While it would be desirable to have more back tiger shrimp in the mix, problems with broodstock have limited India’s cultivation of this species. “If the country can get specific-pathogen-free broodstock, then it would be able to increase its production of black tiger, which Indian farmers like to grow because of its larger size”, he said.
|2015 global beef production down, India exports up|
[31 October 2014] According to the recently released, USDA FAS bi-annual publication, 'Livestock and Poultry: World Markets and Trade, 2015', total world beef and veal production is forecast at 58.74 million tonnes, 1.4% lower than 2014. India’s beef exports in 2015 are projected to total 1.95 million tonnes, up 5.4% year-on-year. India is the second largest beef exporting country. Beef exports from Australia in 2015 are expected to equal 1.59 million tonnes, 10.4% less than the record setting export levels of 2014. Japan’s beef imports are forecast at 740,000 tonnes, down 1.3% from 2014 due to competition with China for supplies of frozen boneless beef primal cuts. Hong Kong is forecast to import 750,000 tonnes of beef in 2015, which is 15.4% higher than 2014.
|Matahari Sakti setting up first mill outside East Java|
[30 October 2014] East Java-based aquafeed miller Matahari Sakti is expanding its business into western Indonesia by setting up a new aqua feedmill in Tigaraksa, Tangerang – Banten province. Managing Director Teddy Njoto told Asian Agribiz that the plant that will produce feeds for shrimp, fish and pets is expected to be operational in 2015. “In the first phase, the plant will have an installed capacity of 2500 tonnes/month and this will cost us around USD 8.3 million. Once the plant is up and running, we will gradually expand the plant’s capacity to 12,000 tonnes/month.” The new plant will mainly cover demand from West Java and Sumatera.
|Gold Coin puts Brunei feedmill into operation|
[30 October 2014] Gold Coin recently inaugurated its new USD 15 million feed plant in Brunei. Gold Coin CEO Ian Glesson said it may start exporting feed from the Sultanate by 2016. Gold Coin brought livestock feed to Brunei from its mill in Labuan before the new Brunei mill was built. “Our Labuan mill's output is now a lot smaller and we may ultimately cease operations at this mill and export to Labuan from Brunei,” Mr Glesson said. The new mill plans to make full use of local raw materials to meet demand for feed, and next year the feed will be exported to Kota Kinabalu, Labuan and Limbang areas.
|Myanmar poultry consumption up by 20%|
[30 October 2014] Domestic poultry consumption has seen a 20% year-on-year increase since 2012, according to Myanmar Broiler Association, reports Myanmar Business Today. Increased consumption has been driven by the decline in pork production after bouts of PRRS, and the decrease in the production of fishery products. The government is planning to establish a wholesale poultry market on a 23 hectare area at the junction of Shwe Pyi Thar and Insein by 2015, which will also include cold storage rooms.
|Indonesia seeks solution to dispute with Brazil|
[30 October 2014] Indonesia is seeking to meet officials from Brazil to settle its dispute on poultry import restrictions. Brazil initiated a dispute against Indonesia recently at the WTO. Indonesia’s Trade Ministry Director General for International Trade Cooperation Bachrul Chairi said the ministry would liaise with the Agriculture Ministry. “Basically, we are trying to convince [the Brazilian government] that our rulings are in compliance with the WTO’s regulations,” Mr Bachrul. According to him, Brazil has deemed some of Indonesia’s regulations, such as stricter animal health checks and required import licenses, to have affected its poultry business in Indonesia.
|Vietnam to spend USD 4.5b on feed imports|
[30 October 2014] Vietnam is forecast to spend as much as USD 4.5 billion on imports of animal feed material and another USD 400 million on cattle and poultry meat shipments in 2014. According to Nguyen Dang Vang, Chairman of Vietnam Livestock Association, imports of raw materials for livestock feed, mostly corn and soy, are expected to increase by around USD 600 million compared to last year. The country is projected to import USD 250 million worth of live and slaughtered cattle this year, with shipments from Australia accounting for 80%, or USD 200 million. Imports of poultry meat and by-products are expected to top USD 120 million, he added.
|Higher demand continues to fuel Jollibee expansion|
[30 October 2014] Jollibee Foods Corp (JFC) is looking to spend around USD 207 million to open at least 300 stores in 2015 as demand continues to grow. JFC’s Chief Financial Officer Ysmael Baysa said the numbers are still being finalised, but it will likely be higher than the number of stores opening this year. The company is opening 300 stores for 2014, and Mr Baysa said they “could have opened more based on demand.” Of the 300 new stores this year, 200 will be in the Philippines and the rest in overseas markets. He said the opening of 200 new stores in the Philippines is “almost double [JFC’s] historical trend, but that is still short of demand.”
|Bangladesh’s NFML aims to raise USD2.3m from IPO|
[30 October 2014] The initial public offering (IPO) of Bangladesh’s National Feed Mill Limited (NFML) started on October 26 and will remain open till October 30 for Bangladhesi investors and it will continue till November 8 for non-Bangladeshi investors. As per the regulatory approval, NFML will offload 18 million ordinary shares at an offer price of USD 0.13 and raise a fund worth USD 2.3 million. The funds raised will be used for repayment of bank loans, business expansion and working capital. NFML is engaged in producing feed for poultry, shrimp, fish and cattle.
Animal Protein in Asia 2020 - Management and products
[29 October 2014]
Asian Agribiz’s Animal Protein in Asia 2020 Conference closed yesterday in Singapore. The two-day event featured reputed speakers and topics relevant to the growth of the animal protein sector. It offered industry leaders an opportunity to shape a vision for their companies as they approach year 2020. Day 1 of the conference looked at Consumers and Inputs in 2020. Yesterday the spotlight was on Management and Products in 2020.
Importance of vision, mission and values
Talent may be an important ingredient in helping companies grow but vision, mission and values, according to Michael O’Keeffe, Principal, O’Keeffe & Associates Pty Ltd, Australia, will lend companies direction. Elaborating on values, he said, it underpins the mission of the company and sets the scene for strategy and action plans. Besides attracting and retaining talent, companies must invest in training and development. “A balanced scorecard system involving pre and post training can help staff integrate what they have learnt in training with the business,” he said.
Redefining human resources
Workforce demographics are changing. The Asian employee today is more educated and internet savvy. In China they are most likely to be the only child with the responsibility of looking after their aged parents and grandparents. In affluent parts of Asia they have the support of their well-to-do parents. As such the role of Human Resources too must change to accommodate this new workforce. “HR can no longer be an administrator or payroll processor. Instead they must set out clear performance guideline, and create regular face-to-face communication and performance reviews,” said Peter Tay, Business Consultant, Singapore. Companies should also develop new and different ways to motivate the different types of employees.
Executive team has a role to play in branding
Branding enhances shareholder value and can deliver competitive results. It also enables a shared vision throughout the organisation. As such the executive team has an important role to play in brand leadership. According to Martin Roll, Principal, Martin Roll Company, Singapore, brand-driven companies have three things going for them – innovation, leadership and culture. “Companies can ask themselves, What does my organisation bring to the world? What should we do to compete successfully? Are we doing today what we need to do in order to matter tomorrow?” He said there is potential in Asia to build more global brands especially in the next 5-10 years.
Room for Asian producers to up productivity
The growing Asian population has its own set of challenges. More food has to be created, producers must balance the resources between humans and farming needs, and manage pollution. As food production grows supply chain issues especially for fresh produce must be looked into. Producers must also be able to maintain the quality and safety of their products. “Technology can help solve some of the challenges. There is room for Asian producers to increase productivity by adopting US and EU technology on genetics, technology and improved efficiency in food production,” said Rupert Claxton, Senior Analyst, Girag & Associates Sarl, France. “However Asia will not develop as a major exporter of animal protein because of disease issues and cost competitiveness, and also because the market is in the region.”
The line of the future
Automation is transforming the Asian food processing scene as producers try to produce more with less. “Automation can achieve higher throughputs per floor space, reduce the risk of contamination, offer better worker safety and help reduce dependency on labour,” said Andrew MacLeod, VP Asia Pacific, Provisur Technologies Inc, Thailand. “Today’s higher capacity machines are more efficient with servo drives and adaptive power control. They are made with higher grade stainless steel, clean-in-place features and anti-stick surfaces for better hygiene.” Offering a glimpse into the future he said production facilities could evolve into “lights out operations with high quality inspection”. Inline foreign substance detection, high-pressure pasteurisation and irradiation will be must-have features in these plants.
Customer education can drive packaging
When explained that vacuum-packed products can increase shelf life by up to three weeks compared to cling-wrapped products, sales of vacuum-packed products increased to 75% from 51% while sales of cling-wrapped products dropped to 25% from 49%, a survey from Sealed Air showed. “All the packaging technology that you invest in your business must be explained to your customers. This communication is not done effectively in Asia,” said Christophe Gottar, Executive Director Global Poultry, Sealed Air, France. Packaging can also help households reduce their food wastage by more than 50%. On packaging trends, Mr Gottar said consumers are looking for packaging that open easily, have portioning and offer cooking convenience.
|Chicken prices to go up going into Christmas season|
[29 October 2014] Despite a media report citing Philippine Agriculture Undersecretary Jose Reaño as saying that farm price of chicken is expected to contract to about USD 1.50-1.60/kg, United Broiler Raisers Association President Elias Jose Inciong told Asian Agribiz that farm prices going into the Christmas holidays might be between USD 1.90-2.10/kg. He said the higher prices would be because of higher demand and not because of insufficient supply, noting that the Department of Agriculture allowed the import of 5000 tonnes of leg quarters to assure enough supply during the holidays. The shipments are expected to arrive late in November or in early December. Mr Inciong also said that farm prices will likely start to taper around the third week of December.
|TCRS Restaurants to exceed its 20% growth in sales turnover|
[29 October 2014] The Chicken Rice Shop (TCRS) chain in Malaysia, has raised its number of new outlets this year to 30 from 17 initially. It now targets 110 outlets as a group by year-end, said Wong Kah Lin, CEO. “We are on track to achieving 20% growth in sales turnover this year. In fact, we are exceeding the 20% growth, based on existing store performance and new outlets performance and new outlet openings,” she said. The company has a presence in Singapore, Taiwan, the Philippines and, most recently, in Brunei. It is searching for the right partner in Indonesia. In the Philippines, Ms Wong said the company that franchised the business was recently acquired by one of the largest food chains in the country and the new owners are positive on the growth prospects.
|Allana Group eyes buffalo exports to Russia, Indonesia|
[29 October 2014] The Allana Group, which will be celebrating its 150th anniversary next year and exports buffalo meat to 64 countries, is looking for new markets. Afzal Aziz, President, said: “At the moment we are quite upbeat about the Russian market. The bans are a good opportunity for us. We do a lot of business in Africa and the Middle East. In Indonesia the laws have changed and they are looking at India. He said analysis by the US Department of Agriculture shows that buffalo meat, next to beef, is “much leaner, and contains more vitamins and protein. It is free from hormones, antibiotics and growth promoters. We use small livestock holdings in India, so it’s not so commercialised like in feedlots”.
|Meat and livestock products to remain on Vietnam’s import list|
[29 October 2014] Vietnam will continue to import meat and livestock products, even after Vietnam has joined the Trans-Pacific Partnership trade pact. According to Nguyen Dang Vang, the Chairman of Vietnam Livestock Association, the country’s cost prices for livestock are the highest among the nations in the TPP talks. “Our livestock breeders offer poor quality produce, and small-scale livestock farms account for up to 60% of the sector,” he said, adding that the livestock industry “will suffer the biggest disadvantage” when Vietnam joins the trade pact. “The government should have special policies to assist the industry.” Vietnam consumes 4000 cows daily, mostly imported cattle. Australian beef currently holds a 70% market share in Ho Chi Minh City. In 2013 Vietnam imported nearly 67,000 cows from Australia, but the figure rose to 120,000 in just the first seven months of this year.
Animal Protein in Asia 2020 - Consumers and inputs
[28 October 2014]
Asian Agribiz’s Animal Protein in Asia 2020 Conference opened in Singapore yesterday. The two-day event features reputed speakers and topics relevant to the growth of the animal protein sector. It offers industry leaders an opportunity to shape a five-year vision for their companies. Day 1 of the conference looked at Consumers in 2020 and Inputs in 2020. Today the spotlight will be on Management in 2020 and Products in 2020.
What do consumers want?
Food that is convenient to buy, prepare and eat tops the list of global consumer trends. Shoppers also want products that are healthy, nutritious and good for their well-being. Participants at the conference were encouraged to take a broader looked at the value that they can offer to consumers. “Value for shoppers is not only about price it is also about products being free from hormones and antibiotics. Consumers are also looking at core values that they subscribe to like sustainability and animal welfare issues,” said David Hughes, Emeritus Professor of Food Marketing at Imperial College London. Pack sizes that meet consumers’ eating occasions are also an important trend as are products that are natural and minimally processed.
Important to know your customers
Correctly positioning your products can help producers increase their sales. The Central Food Retail Co of Thailand has reaped benefits from introducing various retail formats as well as different categories of products based on data collected from its loyalty card program. Its private label Natural Pork, launched in 2011, is priced 30% higher than its other private labels like Hygienic Pork, but after two years of educating customers on the attributes of the Natural Pork today the category is favoured by its consumers that want healthy and nutritious meat. “We collaborated with our existing supplier to come out with Natural Pork. We try and work with them towards a win-win solution in order to maximise the carcass,” said Malinee Suwattanachot, General Manager – Meat and Seafood of Central Food Retail.
Transparency and traceability key to success
The panel discussions tackled relevant issues facing the industry. One participant wanted to know how the meat industry can brand itself when faced with negative assumptions such as red meat is unhealthy. Martin Roll, Principal of Martin Roll Company, said these bumps will come and go but it is important to keep the discussions transparent. “Push out the correct information but remember that it is an industry thing. Don’t make it your battle,” he advised. The panel also agreed that towards 2020 transparency and traceability are important as producers must remain relevant to their consumers. Meat producers must also constantly innovate to keep consumers engaged in their products.
Asian shifts towards brand building
Companies in Asia today are more open to branding their products compared to one decade ago. Said simply “branding does positive things to people”. According to Martin Roll, Principal of Martin Roll Company, “food is a big thing in Asia and issues on quality are important. The focus on branding will be enhanced in the coming years”. He said to build a strong brand, which is roughly a three-year project, a product must have functional attributes, a point of difference and emotional values. “Innovation is an ingrained part of brand building.” The challenge in Asia, he said, is that there is a lot of capacity but not much innovation.
China imports and investments will continue to grow
In China urbanisation is driving demand for more and better protein, and at a higher rate than GDP. While at-home meat consumption is growing, city dwellers also eat 30-50% of their meat outside their homes where they are more open to alternative proteins such as chicken, beef, sheep, fish, shrimp and dairy, said Rich Herzfelder, Agribusiness Commentator based in Beijing, China. “China will not be able to satisfy demand from domestic sources and imports will continue to grow. Reliance on China can be profitable and dangerous all at onc,” he said. A case in point are the 2013 and 2014 scandals affecting Yum! and OSI respectively. China will also control imports in its self-interest, he said, highlighting the issues with US GM corn as well as Australian chilled beef, which were suddenly dropped after imports rose 3600% y-o-y in Q1-3 2013.
|Disease spread in Cambodia due to illegal imports|
[28 October 2014] Cambodia's new draft law on animal health and production is expected to be approved by the December 2015, but Srun Pov, President of the Cambodian Pig Raising Association, said he is not aware of it. “It is good to have the law, but please make sure the law will help and encourage local raisers to raise the animals to the expected standard,” he said. He contends that loosely monitored illegal imports of swine from neighbouring nations had contributed to the spread of disease in Cambodian livestock and rendered many local producers bankrupt.
|China to import pork from Austria in 2015|
[28 October 2014] China has agreed to import pork from Austria from next year, the Austrian media reported. The media noted that Chinese authorities will drop veterinary restrictions, freeing the way for pork imports from 2015. Agriculture Minister Andrae Rupprechter said that South Korea, which already imports pork from Austria, will now allow imports of additional products such as bacon and sausages from 2015. Diversifying export markets is a priority for Austria after Russia introduced restrictions on food imports amid a trade row with Western countries over allegations that Moscow is supporting separatist rebels in eastern Ukraine.
|Bangladesh’s shrimp exports slowing down|
[28 October 2014] Shrimp exports from Bangladesh are facing a slowdown in the wake of reduced demand for locally-grown black tiger shrimp in major markets. An increased supply of vannamei from exporting countries at reduced prices account for the slowdown. Demand for black tiger shrimps from Bangladesh has declined in the French and UK markets because of the higher price. “Apart from lower price of vannamei, the weaker euro and pound sterling have also affected Bangladesh’s shrimp exports,” said Kazi Belayet Hossain, Senior VP of the Bangladesh Frozen Foods Exporters Association.