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|Sri Lanka’s Bairaha forms JV with Farms Pride|
[17 April 2014] Bairaha Farms Plc (BFP) has decided to form a USD 12.6 million joint venture with Farms Pride Ltd, to boost animal feed manufacturing and storage in the country. BFP said the new venture, Fortune Agro Industries Ltd, is aimed at setting up a large-scale, state-of-the-art commercial animal feed manufacturing factory together with raw material procurement and modern post-harvest storage facilities. The new venture has already received preliminary approval from the Board of Investment with a seven-year tax holiday.
|Indonesia’s GGL buys cattle breeding station|
[17 April 2014] The Willeroo cattle breeding station in Northern Australia which was owned by the Sultan of Brunei, has been sold to Indonesia's Lampung-based Great Giant Livestock (GGL). GGL is division of Indonesian based PT Great Giant Pineapple, one of the biggest importers and feeders of Australian cattle in Indonesia. Willeroo Station has an estimated carrying capacity of 22,000 head.
|South Korea scraps import duty on Aussie beef|
[17 April 2014] South Korea signed a free trade agreement with Australia early April after five years of negotiations. In return for Australia abolishing tariffs on auto parts made by South Korean companies, South Korea will abolish a 40% import duty on Australian beef after the FTA takes effect. Australia held a 55.6% market share last year in the imported beef category, trailed by the US with a 34.7% share and New Zealand with 8.8%.
|WH Group Chairman to gain from IPO|
[17 April 2014] WH Group Chairman and CEO Wan Long stands to clear as much as USD831 million from the company’s IPO after it lists on April 30, while another company executive stands to clear as much as USD 371 million from the deal. Wan was awarded 573.1 million new shares last October, while the executive in charge of investments, Yang Zhijun, was awarded 245.6 million shares, according to Reuters. WH Group, which bought US pork giant Smithfield Foods last year, will list on the Hong Kong Stock Exchange on April 30. The price per share will be somewhere between USD 1.03 and USD 1.45. Even at the lower valuation, Wan’s new stock would be worth USD 590.3 million, and Yang’s USD 264.3 million.
|No serious shortage of beef in Malaysia|
[17 April 2014] Malaysia’s Ministry of Agriculture and Agro-based Industry refuted a news report that claimed the price of local beef may go up to USD 12/kg due to a shortage of supply. Minister Datuk Seri Ismail Sabri Yaakob said the Malaysian Federation of Ruminant Breeders Association had assured him the price of beef would not go up that high. He added that some 20,000 live cattle would be imported from Myanmar each year while discussions with Cambodia were in the final stages.
|Poultry prices up 133% in Myanmar|
[16 April 2014] High temperatures are killing off livestock in Myanmar and have forced local chicken prices up due to short supply. According to Myanmar Times the price of chicken has swelled by 133% to reach USD 7.26/1.6kg from USD 3.11 in January. “This season, demand is up and beef, fish and pork have also risen in price,” said U Myo Thant, General Manager of the Myanmar Livestock Federation, adding that though seasonal temperatures affect meat prices, 2014 has proven to be particularly bad for the market. “The numbers being bred have not fallen, but their weight is down,” said Livestock Federation Vice President Daw Hla Hla Thein, adding that three birds now weigh the same as two under normal conditions.
|Bunge to start exporting grain from Western Australia|
[16 April 2014] Bunge has commenced operations with its USD 40 million silos in Bunbury, Western Australia and is set to begin exporting by mid-year. The Bunbury port facility can hold up to 50,000 tonnes of grain and has permits to export up to 500,000 tonnes in the first two years of operation. Bunge's Bunbury Regional Manager Christopher Tyson says growers have welcomed the grain exporter's presence in the South West.
|Fitch affirms Japfa Comfeed's positive ratings|
[16 April 2014] Fitch Ratings has affirmed Japfa Comfeed Indonesia's long-term issuer default rating at ‘BB-’ with a stable outlook. Fitch has also affirmed Japfa’s national long-term rating at ‘A+ (idn)’ with a stable outlook, and its USD 131.2 million bonds due in 2017 at ‘A+ (idn)’. Japfa’s ratings reflect its strong cost pass-through ability, robust growth prospects and flexibility with its expansionary spending. The ratings remain constrained due to the inherent risk of disease outbreaks of the poultry industry.
|China re-admits imports from Chile|
[16 April 2014] China announced that it will re-admit pork and poultry imports from Chile after having suspended them last July over concerns of dioxin contamination. However China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) want importers to submit animal health documents and no-dioxin contamination test reports from Chile’s Agricultural and Livestock Service. AQSIQ said Chile had conducted a “comprehensive investigation and taken effective prevention and control measures” in solving the contamination issue. China was Chile’s fourth largest pigmeat export target prior to the ban, commanding 6% of total exports, behind Japan (35%), South Korea (24%) and Russia (11%), according to the Chilean Pork Producers Association.
|Global aquafeed market expected to reach USD133.1b |
[16 April 2014] The global market for aquafeed is expected to reach USD 133.1 billion by 2020, according to a new study by Grand View Research, Inc. Increasing use of aquafeed in carp and crustacean farming is expected to boost market demand over the forecast period. The growing market for aquaculture, owing to the static natural production of fishes is expected to be another key driver for market growth over the next six years. In addition, the increasing focus on nutraceuticals such as omega 3 enriched products is also expected to have a positive impact on aquafeed applications. Amino acids were the largest used additive in aquafeed product, with estimated market revenue of USD 236 million in 2013. Meanwhile, feed acidifiers are expected to be the fastest growing segment over the forecast period, at an estimated CAGR of 6.1% from 2014 to 2020.
|Chinese farmers record good results with insects in feed|
[16 April 2014] A two-minute video titled Eating Insects – New Proteins for Farm Animals show how poultry farmers in China who use insect-based feed in their poultry diet have records positive improvements. Guangdong province farmer Yaohui Che said feeding the birds with insects reduces the cost of farming improves their immune system and increases the chicken meat quality. The video follows a team of researchers from the EU-funded project PROteINSECT who are studying the potential of fly larvae as a new protein source for animal feed. “The aim is to help European meat producers to take advantage of this new source of protein,” said Elaine Fitches, PROteINSECT Co-ordinator at The Food and Environment Research Agency in the UK.
|Viet pig farmers expand flocks as prices increase|
[15 April 2014] Good prices have encouraged pig growers in Vietnam to restock their farms, particularly in the southern provinces. However, experts told Asian Agribiz that the sudden increase could lead to excessive supply when the pigs reach market weight. Tran Duc Vinh Quang, a farmer in southern Dong Nai province recently added 200 growers to his existing 500. At the current price of USD 2.35/kg, Mr Quang will make about USD 50 in profit for each finisher. “This situation could lead to an imbalance in supply and demand, forcing the price to go down again in the next few months,” Nguyen Kim Doan, Deputy Chairman of Dong Nai Animal Husbandry Association told Asian Agribiz.
|Indonesia to regulate poultry GP imports|
[15 April 2014] Indonesia’s Ministry of Trade has said that it plans to regulate the import of broiler and layer GP in order to prevent an oversupply of live birds and eggs. Commenting on this, Chairman of the Indonesian Poultry Breeders Association (GPPU) Krissantono said the government must be careful in regulating the import because if a supply shortage ensues, it will take about two years to stabilise the situation. “It is better if the government regulates the supply of final stock or commercial DOC since the risk is minimal compared to GP.” GPPU has estimated that imports of broiler GP this year could reach 725,000 birds, an 11.53% increase from the previous year.
|Van Aarsen sees demand for bigger machines|
[15 April 2014] Van Aarsen is preparing to cater to a growing demand for bigger machines in the region. “Customers want bigger machines to increase their capacity as they are looking for lower operation cost and hygienic operation for safe feed. This demand corresponds with cost [management] and feed and food safety,” Jos van de Berg, Area Manager Asia told Asian Agribiz. He added that the market will continue to grow especially in the Philippines where some project expansion is going on.
|Malaysia to lead common halal certification initiative|
[15 April 2014] Malaysia is taking the lead in discussions between Muslim countries on the development of common halal certification guidelines. Its Halal Industry Development Corp (HDC) will spearhead the initiative, with the final proposal to be presented to the Organisation of Islamic Conference. HDC CEO Jamil Bidin said the lack of common certification guidelines will slow down the global halal industry's growth in the coming years. “The halal industry is no longer a domestic industry. It involves many countries, with each nation having its own halal certification criteria,” he said. Malaysia will also push for the creation of an accreditation body, which will certify and approve all halal certification bodies worldwide.
|Kerala Feeds building new cattle feed plant|
[15 April 2014] India’s Kerala Feeds is building a new cattle feed plant in Thiruvangur that will cost the company about USD 8.8 million. The company said the plant will help dairy farmers in the Malabar region who are facing a shortage of quality cattle feed at affordable prices. Construction is scheduled to be completed by September this year. It will have a capacity of 300 tonnes of cattle feed a day. Though located in Thiruvangur, the products from the plant would be distributed through sub-dealers across the state.
|Grain handlers plan new terminal on Australia’s east coast|
[15 April 2014] A consortium of grain handlers, consisting of Emerald Grain, logistics company Qube Holdings, Noble Resource, a unit of Singapore’s Noble Group, and Cargill Group, plans to build a terminal in New South Wales, Australia, with a capacity of more than 1.3 million tonnes of export grain/year. The multi-user handling facility in Port Kembla is expected to be operational early 2016. The move signals fresh competition for GrainCorp, which has emerged as the biggest listed agribusiness company. “The direct link to Asia through the Sumitomo network and their customers in Asia significantly differentiates us from GrainCorp," Emerald CEO John Murray said. Sumitomo Corp recently gained full ownership of Emerald Grain after acquiring Emerald Agribusiness Group, its joint partner since 2010, for USD 112.99 million.
|Viet feedmillers share expansion plans|
[14 April 2014] De Heus and Vina Feed from Vietnam, both winners of the Highly Commended Feed Miller Award 2014 presented by Asian Agribiz and sponsored by Addcon are in expansion mode. De Heus plans to expand outside Vietnam. “We are planning an investment in Myanmar for pig and poultry feed production and we expect to start investing in the middle of next year,” General Director Gabor Fluit told Asian Agribiz. Vina Feed Marketing Director Le Ngoc Lam Quynh said the company is installing a new line for swine feed. She added that farmers in Vietnam are demanding high quality feed.
|GSI upbeat about growth in Asia |
[14 April 2014] Patrick Steube, Regional Manager Southeast Asia of GSI Group is confident of growth in Asia. Speaking to Asian Agribiz at Victam Asia in Bangkok he commented that although visitors seemed fewer, the quality was good. “We see growing prospects in Southeast Asia for our technology especially because of growing labour concerns. Machines for bulk storage use less labour and offer a more hygienic storage environment so [feed millers] can provide safe products to consumers." He added that animal protein consumption is growing in the region so feed milling operations are growing.
|WH Group to list but will not pay full debt |
[14 April 2014] WH Group will officially list on the Hong Kong Stock Exchange on April 30, but still will not be able to pay off all the debt it took on last year to buy US pork giant Smithfield. The offering will be priced on April 22 with the final listing a week later, raising up to USD 6 billion if there is enough investor interest. However, according to the term sheet only USD 4.2 billion would go to the company itself, with the rest going to outside investors who want to sell their stakes. WH Group, formerly known as Shuanghui, paid USD 4.7 billion for Smithfield last year, and also took on USD 2.4 billion in Smithfield debt for a total of USD 7.1 billion.
|Poultry conference in Queenstown looks beyond 2020|
[14 April 2014] Around 117 delegates and speakers from 15 countries are gathering in Queenstown New Zealand from today through to Thursday to attend the 5th International Broiler Nutritionists’ Conference. This year's event is themed “Poultry Beyond 2020”. Organised by the Poultry Industry Association of New Zealand and sponsored by DSM, Aviagen, Elanco, Biomin, Novus and US Soybean Export Council, there are various topics to be presented and discussed with the aim to offer the industry ideas and options and news technologies to move the industry forward in the next 5-10 years.
|China, Australia to push FTA talks|
[14 April 2014] China and Australia have agreed to speed up negotiations on a free trade agreement (FTA) that would sharply lower tariffs on Australian meat and dairy exports to China. Australian exporters have had to sit and watch as New Zealand exporters gained an increasing advantage because of the China-New Zealand FTA, which was signed in 2008. Under that agreement, tariffs on meat imports have steadily declined from the standard 13% and will reach zero in two years. China and Australia began FTA talks in 2005, but the talks did not begin to bear fruit until Prime Minister Tony Abbott , who visited Beijing last week, took office in the last Australian election.
|Rajkot Dairy targets USD107m turnover |
[14 April 2014] India's Rajkot District Co-operative Milk Producers Union Limited (Rajkot Dairy) plans to add 33 new bulk milk cooling (BMC) units with support from India’s National Dairy Development Board (NDDB). Presently, Rajkot Dairy has 33 BMC units. The Gujarat based cooperative is also planning to start 183 new dairy cooperative societies (DCS). Presently, about 55,000 milk producers are associated with Rajkot Dairy, of which 26,000 are women. It procures milk from small-scale producers from 14 centres before sending the milk to the nearest chilling centres. Turnover of the cooperative rose to USD 95 million in 2013/14 from USD 84.6 million in 2012/13 and it expects its turnover to touch USD 107 million in 2014/15.
On-site from Victam 2014
Reports by Arief Fachrudin & Nitsara Thongrung
[10 April 2014]
Japfa India bags Asian Feedmiller Award
Japfa Comfeed India yesterday received the Asian Feed Miller Award 2014 that was presented by Asian Agribiz and sponsored by Addcon. Head of Feed Division of Japfa Comfeed India Ardi Budiono said the award represented a milestone for the company which presents also a challenge to become better in terms of product quality and service. “There are several concepts that we want to launch this year for the Indian market. One of them is semi-pellet concept for broiler that will minimise stress at finisher stage in the extreme Indian climate,” Mr Ardi told Asian Agribiz. The company plans to have two new feedmills within the next three years and each will have a capacity of 15,000 tonnes/month. “We are now setting up a new feedmill in Bihar. This plant will also cater demands from Nepal.” Addcon CEO, Bernd Kochannek also presented ‘Highly Commended' awards to De Heus Vietnam and Vina Feed, also from Vietnam.
Al-Meezan to increase capacity, QC standards
The Emerging Feed Miller Award 2014 presented by Asian Agribiz and EW Nutrition yesterday went to Al-Meezan from Pakistan. Production Manager of Al-Meezan Dr Abdullah Ahmad told Asian Agribiz that the award would challenge them to be more innovative in terms of technology and QC. “In the future, we plan to increase our production capacity from 20 tonnes/hour to 50 tonnes/hour and then to 75 tonnes/hour gradually and employ modern feed milling technology. Next to that we want to upgrade our testing laboratory to strengthen our QC division, as well as increase the capacity of our r&d dairy and poultry farms,” he revealed.
Olmix promotes aqua feed product
Trinh Quang Thanh, Asia Pacific Manager of Olmix said the company's participation in Victam this year is focused on aqua feed mainly its feed additive for shrimp and fish. The MFeed supplement offers good response to productivity and efficiency. This is based on trails at universities and commercial tests in Vietnam and Thailand. "It has also been found to improve the immune system of shrimp," Mr Than said. “In the wake of the Early Mortality Syndrome, we will also challenge Mfeed to the EMS pathogen to see if it efficiently addresses the immunity issue,” Mr Thanh told Asian Agribiz.
Biomin offers smooth transition to natural products
Biomin is keen on providing customers with animal health solutions without the use of antibiotics. “Pressure from consumers is forcing feed and livestock producers to move away from antibiotics. With our experience and knowledge of the industry here, as well as being a long-standing natural feed additive supplier, we can help our customers with a smooth transition from antibiotic growth promoters to natural solutions,” CEO Asia Pacific Jan Vanbrabant told Asian Agribiz. Biomin showcased a wide range of products at the show including Fumzyme a purified enzyme, Mycofix and its Phytogenics line Biomin PEP, all natural solutions.
Muyang introduces bigger capacity machines
Muyang introduced its new extruder and pelletizer at the event. The capacity of the new machines is 20% more than the previous machines, according to Liu Guangdao, President Director of International Business Development of Muyang. “The average capacity at the moment in Asia for poultry feed and aquafeed is 30 tonnes/hour and 5-10 tonnes/hour, respectively. However, due to production cost increase, many millers in the region are looking for bigger capacity.” Mr Guangdao pointed out that labour cost is one of the concerns why many millers now need bigger capacity. “If you have two or three production lines, you will need about six operators. While if you have only one line but with a bigger capacity and automated system, one operator is enough. Besides, the investment for building and expense for spare parts would be much lower,” he said.
Agentis offers automated system for raw material, feed transport
President of Agentis Innovations Yiannis Christodoulou noted that many feed millers in Asia still work with bagged raw materials. “Deliveries of raw materials like corn, soy, wheat and wheat bran are bagged. This affects production costs and product quality and automating these systems can optimise these parameters,” Mr Christodoulou said. “Our Truck Plus system controls and monitors the flow of trucks into and out of the plant incorporating quality control procedures, traceability and stock inventory for on-site storage capacity. Bar code technology is also employed to control the accurate loading of finished goods.”
Zheng Chang to improve quality, technology
Zheng Chang recorded good business performance last year, said Office General Manager Hao Yun. “Last year we finished a project for CP in Bangladesh and some projects for Chinese companies in the Philippines, India and Indonesia.” Although last year it recorded good sales growth, Ms Yun said in the coming years the company is targeting stable growth with good customer satisfaction. “We are working hard to improve our product quality and technology with a view to meet our customers’ requirements in terms of capacity, quality, safety and services,” Ms Yun added.
On-site from Victam 2014
Reports by ARIEF FACHRUDIN& NITSARA THONGRUNG
[09 April 2014]
Wenger introduces new generation of extruder
Wenger introduced a new generation of extruder at the show. It is able to process a broader range of ingredients and more complicated formulations, according to Rock Chen, Director of Wenger Asia. Besides the capacity is bigger than the previous generation and this bigger capacity allows millers to save production costs. “Our customers are keen on the bigger capacity. In Asia, the current trend is that many millers are looking for big capacity extruders. They are looking for extruders with a capacity of 10 tonnes/hour or higher. And our new extruder can produce 20 tonnes/hour. It fits with what they are looking for,” Mr Chen explained.
Nuscience to expand Aromabiotic market
International animal nutrition company Nuscience plans to develop the market for its Aromabiotic product, one of its functional feed ingredient products, in Asia. Sales and Marketing Director for Asia Joost Ameye said that early this year the company strengthened its sales force to develop the medium chain fatty acids based product in Asia. “So far we have been selling Aromabiotic quite well in Korea, Japan and Taiwan where the use of AGPs in feed is limited or even banned. This year we want to expand its market reach to Southeast Asia. We know that it is not easy since the region still uses AGP a lot, but there are producers who are concerned about food safety and want AGP replacements,” he revealed.
Adifo's software improves collaborative interaction
Adifo showcased an innovative software that can improve the collaborative interaction between all parties in a feed milling company. “Traditionally, feed software is for the nutritionists. But if we look at it as a whole, there are people in QC, purchasing and other related parties. With the platform, all parties can share their data in the most optimal way in real time. With this the calculation for formulation will be more accurate and the company will get better quality products at a cheaper price,” explained Market Development Manager Hans van der Waal.
Kemin to focus on ruminant sector
Marketing Director of Kemin’s Animal Nutrition and Health Asia Pacific Dr Liong Kah Heng told Asian Agribiz that this year the ruminant sector will receive special focus. “From our studies, we found that the ruminant market has potential.” To tap into the market, Kemin has two rumen bypass and intestinally released lysine and methionine products namely LysiPEARL and MetiPEARL. The products are encapsulated using Kemin’s MicroPEARLS technology. According to Dr Liong, in dairy the products increase milk production and milk protein content. “To promote the products in the Asia Pacific region, we have hired an experienced sales person as well as a ruminant technical service manager,” he said, adding that a seminar has been conducted in Vietnam to promote the products and next one would be in Indonesia.
Vi-Cor highlights new poultry feed concept
Vi-Cor highlighted its newly formulated feed ingredient for poultry health. Its Aviator natural growth promoter helps enhance feed efficiency and boost the immunity of the birds and improves performance. “Food safety is a major issue and producers are shunning the use of chemicals. Our natural product ensures food at a competitive cost,” Ajeet Bishnoi, South Asia and Africa Business Manager told Asian Agribiz. Dr Bishnoi commented that he sees higher consumption in Asia and Southeast Asia, of animal protein especially poultry. 'Livestock producers are showing much interest in new technology to improve their operations,' he commented.
|Chinese pork giant buys Australian beef processor |
[09 April 2014] China’s WH Group, which is about to launch a USD 6 billion float on the Hong Kong Stock Exchange, has reportedly agreed to buy Tabro Meat, an Australian beef processor. WH Group was one of several Chinese companies that considered buying Tabro, which operates two abattoirs in Victoria with a total capacity of 1,000 heads/day, according to an article on beefcentral.com. Tabro principal Ted Brorsen said the purchase price was “a lot more” than USD 25 million. WH Group, formerly known as Shuanghui International Holdings, bought US pork processing giant Smithfield Foods last year for USD 4.7 billion. The company plans a listing on the Hong Kong Exchange by the end of the month.
|Vietnam considers USD475m support for small farmers |
[09 April 2014] Vietnam's Ministry of Agriculture and Rural Development (MARD) is considering support for small farmers with USD 475 million over the 2014-2020 period. This is part of a project under consideration to restructure Vietnam's livestock industry. According to the plan, each farmer will receive financial support to buy a sow, cow or semen. Contract farmers and owners of industrial farms will not benefit from this project. According to MARD, Vietnam has about 13 million small livestock household farmers. The project however has raised criticism from local experts. "If the project is implemented, it means we will support small-scale and backyard farming, which is not in our development strategy," Nguyen Thanh Son, Director of Vietnam National Institute of Animal Science told Asian Agribiz.
|Chinese corn production hits record, but feed sales slump |
[09 April 2014] China’s corn production will hit records in both the 2013/14 and 2014/15 marketing years, leading to reduced imports and overstuffed grain reserves, according to the USDA’s annual report on China’s grain industry posted on Tuesday. The record crops come even as poultry and pork producers reduce feed purchases because of food safety scandals and avian influenza. Corn production is predicted to reach over 217 million tonnes in 2013/14 and 218 million tonnes in 2014/15 as government subsidies encourage farmers to plant more corn and less soybeans and other crops. Imports are forecast at 4 million tonnes in 2013/14 and 3 million tonnes in 2014/15. Imports of sorghum, cassava and DDGS are expected to rise.
|China to continue strong beef imports|
[08 April 2014] The ongoing shortages in China will continue to support rising imports of frozen beef, with Australia remaining the biggest supplier accounting for 53% of total import volume in 2013. Overall, market fundamentals remain positive for the global beef industry, according to Rabobank's Q1 Beef Quarterly report. Although 2014 imports in China are not expected to reach the growth levels experienced in 2013, they will grow as Chinese farmers take little interest in Government-supported production expansion and strong profits. Market opening to Brazilian beef may happen imminently. "Prospects remain positive in Q2, with a possible upside due to pressured supply and scarce supply of competing proteins," explained Rabobank Analyst, Albert Vernooij. "Brazilian cattle prices and exports have surged to record levels, and Australian droughts have encouraged historically high slaughter levels to meet global demand."
|India’s meat exports on the rise|
[08 April 2014] India’s meat exports have surged over the last few years as a greater number of exporters have adhered to stringent global quality standards. The government too has undertaken several measures aimed at eliminating animal diseases, which have contributed to the jump in exports. As per the latest data, meat exports touched USD 3.4 billion in 2013. Major exports were buffalo meat at USD 2.9 billion and sheep and goat meat at USD 71 million. In fact, buffalo meat contributed over 86%. The Ministry of Commerce has said that meat exports registered 27% growth in 2013. Major destinations are Vietnam, Malaysia, Thailand, Saudi Arabia, Egypt and UAE.
|Delacon addresses post-antibiotic challenges |
[08 April 2014] “Considering the present animal health challenges, food safety and environment issues, there is no plan B,” Markus Dedl of Delacon told Asian Agribiz at the company's Performing Nature Symposium in Bangkok yesterday which emphasised its concept of Plan A – Efficiency and Safety in Animal Nutrition. “We will discuss how to deal with the challenges in the post-antibiotic era when the antibiotic uses fade away,” Mr Dedl said Delacon places its emphasis on research and development for animal health-oriented products and its phytogenic product Fresta F is officially approved by the European Union as is the world’s first phytogenic zootechical feed additive.
|Five-phase diet maximises broiler efficiency|
[08 April 2014] Precision feeding can help achieve the efficiency of broilers and maximise the nutritional value of the raw material, said Dr Ravi Ravindran, a Professor of Nutritional Science at Massey University, New Zealand. He advocates the five-phase or at least the three-phase feeding system on farms as a means of precision feeding where farmers very closely meet the nutritional requirements of the birds by changing their diet on a weekly basis. “The five-phase plan may not be a practical plan for some farmers to carry out but it has proven to successfully reduce waste, cut feed cost and lower nitrogen excretion,” he told Asian Agribiz at the Asiapac (Malaysia) Bio-tech seminar in Kuala Lumpur. He said a five-phase plan includes the pre-starter, starter, grower, finisher 1 and finisher 2 diets.
|Indonesia to stop cattle offal imports|
[08 April 2014] Indonesia’s Trade Ministry has said that starting from Q2 of 2014 it will not release import permits for cattle offal. According to Director General for Foreign Trade of Ministry of Trade Bachrul Chairi, cattle offal imports so far have impacted local farmers and traders since the price of imported offal is always lower than the price of local offal. “The uncompetitive local offal price will push local traders to increase the price of beef to make profits.” At the moment the price of local offal at wet markets is around USD 3.5/kg.
|Global aquafeed demand expected to reach USD122.6b |
[08 April 2014] According to a new report published by Transparency Market Research, the global demand for aquafeed was valued at USD 57.74 billion in 2012 and is expected to reach USD 122.6 billion in 2019, growing at a CAGR of 11.4% from 2013 to 2019. In terms of volume, demand was 35 million tonnes in 2012 and is expected to reach 72.2 million tonnes in 2019, growing at a CAGR of 10.9% from 2013 to 2019. Increasing aquaculture activity has driven the demand for aquafeed over the past few years and the trend is expected to continue over the next few years. Growing demand for conventional and functional feed for fishes, particularly from Asia Pacific is expected to provide new opportunities for market growth in the near future.
|Single digit growth for Indonesia’s cold chain |
[07 April 2014] Indonesian Cold Chain Association (ARPI) has estimated a 7% growth for the sector in seafood, beef and poultry this year, lower than last year, due to the depreciation of the rupiah against the US dollar. Chairman of ARPI Hasanuddin Yasni told Asian Agribiz that last year the industry grew at 15%. “Most of the systems and components for cold chain are imported. The currency depreciation has raised the price of the systems and components and this will delay investment.” He added that with a 7% growth, the cold chain capacity of seafood, beef and poultry in the country would increase by 500,000 tonnes (combined). In 2013 the cold chain capacity of seafood, beef and poultry was 7.2 million tonnes, 398,000 tonnes and 1.9 million tonnes, respectively.
|Hog supply to remain tight|
[07 April 2014] Supply of hogs in the Philippines will remain tight at least over the next few months as cases of porcine epidemic diarrhoea (PED) are on the rise. Dr Civilo Lima, General Manager of Villa Aida Farm told Asian Agribiz on the side-lines of the 23rd National Hog Convention and Exhibits held from April 3-5 in General Santos City, Philippines. He said that prices of hogs will likely be high in June and July, when farm prices are traditionally lower, because there will be less pigs available during the period. Dr Lima also noted that PED will continue to be a problem for the country’s hog farmers because the practice of feedback to address the disease keeps the virus in the farms, potentially infecting new gilts coming in. He said it might take some time before the industry stabilises and recovers.
|Thailand on alert after H5N1 report in Laos|
[07 April 2014] Thailand’s Department of Livestock Development has put local farmers on a surveillance and prevention alert for avian influenza H5N1 after the World Organization for Animal Health reported an outbreak in Xayaboury in Laos. DLD’s Director General Trissadee Chaosuancharoen said in a press release yesterday that DLD will continue carrying stringent surveillance and preventive measures and further strengthen inspection along the Thai-Laos border. Mr Trissadee urged farmers in Thailand to closely monitor the health status of their animals and encouraged them to promptly report any mysterious death of birds.
|Vietnam records 400% increase in corn imports|
[07 April 2014] So far in 2014, Vietnam's corn imports have increased more than 400% over the same period last year to a total of 1.41 million metric tonnes, according to the General Department of Vietnam Customs. US corn exports to Vietnam are enjoying an increase as well, up more than 735% over the same time period last year. According to USDA FAS, Vietnam had combined US corn outstanding sales and accumulated exports of 262,800 tonnes from September 1, 2013 to March 27, 2014. "The pace of corn imports by Vietnam is truly amazing," US Grains Council Regional Director of Southeast Asia Adel Yusupov said. "The Council will continue to provide reliable, transparent market information to Vietnamese importers and end-users to help bolster confidence in US corn."
|India to strengthen presence in global shrimp market|
[07 April 2014] “Now is the time for India to make its presence felt in the global shrimp market. Vietnam and China have been affected by EMS,” said S Kandan, Assistant Director of India’s Marine Products Export Development Authority. He added that shrimp exports was a major forex earner and had netted USD 3.8 billion last year. Though major aquaculture farmers had quit the profession, small farmers had stepped in, that too in a big way. The share of the small farmers in exports was about 60%. “To take the opportunity, farmers should adopt appropriate biosecurity measures such as quarantine of imported exotic brood stock, adopting SOP such as testing the seeds before breeding and also conducting pre-harvest tests.”
|IFFO opens up fishmeal, fish oil standard|
[07 April 2014] The marine ingredients organization IFFO has opened up its responsible sourcing (RS) standard to all fishmeal and fish oil factories. With IFFO members accounting for around 60% of world fishmeal and oil production, the previous restriction meant that 40% of global production was not eligible for the standard. “Now any fishmeal and fish oil factory wishing to demonstrate its responsible practices will be able to apply for certification to the IFFO RS standard,” said the organisation. The move is part of a ‘number of changes’ to improve the standard’s governance and enhance its credibility. IFFO launched RS in 2009 and some 40% of the world’s fishmeal and oil supply is now certified to the standard.
|China losses affect global poultry trade|
[04 April 2014] Avian influenza outbreaks in China and a weaker Asian economy as well as abrupt increases in feed prices are expected to affect the global poultry market in the second quarter, Rabobank reports. The Chinese poultry industry suffered big losses from the bird flu outbreaks; the disease has negatively impacted demand as consumers are concerned whether poultry is safe. “A slowdown in global trade volumes and lower product prices, especially for leg quarters, will affect companies in international trade and lead to shifts in global trade streams. Brazil is likely to be affected the most, while Thailand is likely to benefit due to its recent return to the Japanese raw chicken market,” said Rabobank analyst Nan-Dirk Mulder.
|Thai authority investigates pork price hike |
[04 April 2014] Thailand’s Department of Internal Trade will investigate the pork price situation in fresh markets across Bangkok following complains about high prices, Director-General Somchart Soithong said. Prices are believed to have escalated to USD 4.93-5.08/kg while the recommended price set by the department is USD 4.62-4.77 for pork and USD 2.40/kg for the farm-gate price of live pigs. The department will proceed with legal action if merchants are found guilty of raising the retail prices despite stability in the farm-gate price. Mr Somchart said he will proceed with measures to stop smuggling of live pigs to neighbouring countries that has led to domestic supply shortage. He expects the price of pork price to decline after April when weather conditions become more favourable for pig performance.
|Bisi to increase hybrid corn seed sales by 18%|
[04 April 2014] PT Bisi International, a subsidiary of Charoen Pokphand Indonesia that is focused on the seeds business, expects its hybrid corn seed sales this year to increase by 18% to 13,000 tonnes. In the first quarter of 2014, the company sold more than 1500 tonnes. “We are optimistic that we can achieve the target because the weather so far has been normal. Since March the rainfall has been decreasing,” said Market Development Manager, Doddy Wiratmoko. He added that due to lower rainfall many farmers in Sumatera and West Java have switched from paddy to corn planting.
|Work with feed enzyme companies for solutions|
[04 April 2014] Enzymes as a feed additive are known to add value to the diets of poultry and swine as it save on feed cost as it maximises nutrient availability and allows for the use of a wider range of raw materials in animal feed. Producers should not only pick the right enzyme but also work with the right enzyme company to help them improve feed digestion, said Dr Alex Wang, nutritionist at AsiaPac (Dongguan) Bio-technology Co Ltd in China. “If you have to change your feed formulation a good enzyme company should work out a plan for you to help reduce raw material cost and increase nutrient digestibility in animals,” he told Asian Agribiz at the Asiapac Bio-technology seminar in Kuala Lumpur. Asiapac (Malaysia) Bio-tech launched seven feed enzyme solutions for poultry and swine yesterday.
|Indon aqua sector to lose USD60m on Russia’s ban|
[04 April 2014] With Russia's ban on fish and shrimp imports from Indonesia since last year, the country would potentially lose around USD 60 million said Chairman of the Indonesian Fish Processors Association (AP5I) Thomas Dharmawan. “Russia plans to evaluate its policy this month. This evaluation may take up to one year. We hope that Russia can give a clear reason for the ban,” Mr Dharmawan revealed. With a population of around 150 million people, Russia is a new potential market for Indonesia's fish and shrimp products after the US and Europe.
|Poultry oversupply in Kashmir |
[04 April 2014] India’s Kashmir Valley has seen a surplus in poultry production this season sending chicken prices sharply down. Director of Animal Husbandry of Kashmir, Dr Shams-ud-Din Makhdoomi said that the valley has recorded a huge jump in poultry production and this has reduced its dependence on imports. Vice President of the Kashmir Poultry Farmers Association, Bashir Ahmad Sofi said broiler production has exceeded 4 million birds/month. "While the surplus is good, the government needs to restrict imports in the interest of farmers' profitability,” he suggested.
|Japfa Vietnam intensifies swine production|
[03 April 2014] Japfa Comfeed has become Vietnam’s second biggest pig producer with its total number of sow reaching up to 40,000 nationwide. The company will continue to expand its swine genetics and farming in the coming years. "We started operations in swine just four years ago, but now we are number two in swine production. We have grown very fast," Sanjeev Kumar, General Director of Japfa Comfeed Vietnam told Asian Agribiz. "Our strategy is to be bigger in swine," he said. The company plans to produce 600,000 commercial piglets this year, half of which will enter Japfa's swine farm.
|Cleaning bins is the best strategy to maintain quality of grains|
[03 April 2014] Sanitation or cleaning the grain storage bins are the cheapest and the best practice feedmillers can perform to maintain the quality of the grains they have. But according to Dr Carlos Campabadal from the International Grains Program, Kansas State University, this is not practiced as often as it should. “Producers do not tend to buy good quality grains. They want to buy the cheapest grain. Not only in Asia but all around the world,” he told Asian Agribiz at the 8th Asia Grain Transportation Conference. When faced with poor quality grains, he said producers can blend it with good quality grains. “Some animals, depending on species and age can tolerate some levels of aflatoxin. For instance cattle can tolerate up to 300 particles per billion of aflatoxin.”
|Most Asian agri companies do not have hedging plans|
[03 April 2014] Less than 30% of Asian agriculture companies have a formal hedging or risk management plan compared to between 70-80% of the companies in the US. Compared to the financial market, he said the agriculture market is more volatile and companies must put in place strategies to minimise their risk. “Most agriculture businesses are family-run entities. It is tough for them to change their way of doing business. Diversification is the best way to mitigate risk,” he told participants at the recently-concluded 8th Asia Grain Transportation Conference in Kuala Lumpur, Malaysia.
|Chinese soy importers cancel contracts |
[03 April 2014] Chinese importers have cancelled orders for more than 500,000 tonnes of US soybeans so far this year, depressing prices and raising fears about the strength of China’s economy. Predictions for record soybean and meat imports in 2014 were based on continuing strength in the Chinese economy, but the US Department of Agriculture’s export monitoring service recently recorded a series of soybean cancellations. Oil World reports that some South American contracts have also been cancelled because unsold soybean inventory is piling up in Chinese ports. The USDA had forecast that China would import a record 68 million tonnes of soy in the 2013/2014 market year, but in a March 6 oilseeds report, the Beijing USDA office lowered its estimate to 62 million tonnes.
|Russia ends ban on Bangladeshi shrimp exporters|
[03 April 2014] Russia has withdrawn temporary restrictions on another two Bangladeshi shrimp exporters this month that will help to pave the way for resumption of frozen food exports to the country. “The ban on ARK Seafood Ltd and ARK Sea Food Ltd was lifted in March,” said Nittya Ranjan Biswas, Principal Scientific Officer of Fish Inspection and Quality Control of Bangladesh’ Department of Fisheries. Executive Director of the Bangladesh Frozen Foods Exporters Association, Abul Bashar said: “We export around 7% of our total shrimp production to Russia and frozen foods worth USD 39-45 million are exported annually."
|Global market penetration of NSP enzymes increasing|
[03 April 2014] According to recent analysis carried out by AB Vista, the global market for non-starch polysaccharide (NSP) and protease enzymes is considerably larger than previously recognised, at around USD 550 million, and even larger than the USD 450 million phytase market. Overall market penetration of NSP enzymes has increased markedly over the last few years, and is now estimated at around 57% of global monogastric feed. "More swine and poultry producers are now taking advantage of the performance and financial gains available from NSP enzymes,” said Richard Cooper, AB Vista’s Managing Director. The AB Vista NSP analysis used data from the 500 largest global users of feed enzymes across 33 countries to reveal key trends within the NSP enzyme market.
|CJ Indonesia to build a new slaughterhouse |
[02 April 2014] Sales & Marketing Manager of CJ Indonesia’s slaughterhouse division, Adi Nugroho told Asian Agribiz that the company is now looking for a location in West Java province to build a new chicken slaughterhouse. The company so far has been operating two slaughterhouses in Sukabumi and Serang with a combined capacity of 3000 birds/hour. “The slaughterhouse will use a semi-automatic system and is targeted to supply products to quick service restaurants,” Mr Adi said. With this running well, the company plans to venture into the processed meat business, Mr Adi revealed. ”We want to have a fully integrated operation in the country. We are studying the market potential of further processed business.”
|US quarterly grain report disappoints|
[02 April 2014] The USDA Quarterly Grain Stocks Report containing the latest data on the amount of grain inventories in the US released on March 31 showed that corn stocks are up 30%, soybean stocks are down 1% and all wheat stocks are down 15% compared to March 2013. Despite the good inventories for corn buyers hunting for cheaper prices could be disappointed. “Buyers hoping for surprising bearishness and lower prices are not going to see that,” RJ O’Brien Senior Vice President (Department of Asian Market) Bell Chen told Asian Agribiz on the side-lines of the 8th Asia Grain Transportation Conference in Kuala Lumpur. Both corn and soybean stocks are below grain trade estimates prior to the USDA reports.
|US drought delayed 2013 planting season|
[02 April 2014] The effects of the severe US drought in 2012 eased in the spring of 2013 which saw abundant rainfall but this delayed field work in many planting areas in the country, said the US Soybean Export Council Chairman Randy Mann. “Last year was a good year despite a spring that was too wet and cold delaying the planting season by some 2-4 weeks,” he told participants of the 8th Asia Grain Transportation Conference themed Global Food and Agriculture: Vision 2021 in Kuala Lumpur. He said last year saw yields of 55-60 bushels/acre of soybean and 190 bushels/acre of corn. US produced 88.66 million tonnes of soybean in 2013 compared to 82.56 million tonnes the year before. The conference ends today.
|Betagro and Pomme Food to run new franchise|
[02 April 2014] Betagro of Thailand and Japan’s Pomme Food Co Ltd have joined forces to run the Pomunoki franchise, a chain of premium Japanese style flavoured fried rice in an omelette wrapping, in Thailand. Vanus Taepaisitphongse, Chief Executive Officer of Betagro Group of Thailand and Takao Idehara, President of Pomme Food Co., Ltd together with Takachi Kusumoto, Managing Partner of Kusumoto Chavalit & Partners Limited have signed in an agreement to set up the Betagro-Pomme Food Co Ltd joint venture and expect to open the first Pomunoki outlet in Thailand by this year.
|QL Indonesia widens market for sanitised eggs|
[02 April 2014] Malaysian-based QL Group’s subsidiary QL Indonesia has been producing sanitised eggs and is enjoying a good market share of this segment. According to Director Dr Cecep Muhammad, the eggs are supplied to all McDonald’s stores and some retailers such as Lotte Mart. Besides, the company also supplies the eggs to 3000 Indomaret outlets under ‘QL Fresh Egg’ brand. Dr Cecep said that the company only targets the middle class market as "awareness towards food safety, especially in big cities, is increasing,” he added. Dr Cecep said its layer farm currently produces around 50-54 tonnes or 900,000-1,000,000 eggs per day. General Manager Ang Bee Tiam revealed that next year the company plans to build an egg processing plant to produce liquid egg and mayonnaise.
|JBS profit up 29% in 2013|
[02 April 2014] Global meat company JBS said its net profit increase by 28.9% to USD 403.75 million in financial year ending 2013. Net revenue stood at USD 40.47 million for the period. The company attributed the results to improved sales throughout its business units. “Our exports last year increased 20% on 2012,” said JBS Global CEO Wesley Batista. This increase in exports is essentially based on two factors. The first is an increase in consumption and demand in emerging markets while the second is the increased number of countries JBS is exporting to. The company pointed out that export to Greater China increased 21.2% from 2012 to 2013.
|Global grain prices to remain stable|
[01 April 2014] The UN Food and Agriculture Organisation forecasts that by 2021 consumption of meat in developing countries is anticipated to increase substantially, accounting for 82% of the growth in demand. Taking a cue from this the US Soybean Export Council is hosting the 8th Asia Grain Transportation Conference in Kuala Lumpur from March 31 – April 2 with the theme Global Food and Agriculture – Vision 2021. Deputy Regional Director (Southeast Asia) Timothy Loh told Asian Agribiz that the global grain industry has moved away from the volatility of the past few years and prices today are relatively stable. “Customers want to learn about the latest trends and forecasts in agriculture worldwide. They want a starting point to position themselves for the next few years,” he said. On other developments, Mr Loh will take over from John Lindblom who retires as Regional Director at the end of this month.
|Hot weather delays shrimp supply recovery in Thailand|
[01 April 2014] Hot weather in Thailand has delayed the recovery of shrimp supply, Dr Somsak Paneetatyasai, President of Thai Shrimp Association told Asian Agribiz. The warm weather has raised the saltiness of the soil making it is risky for shrimp farmers to continue farming, he said. Thai shrimp industry is facing a shortage due to the outbreak of the Early Mortality Syndrome (EMS) since last year. “Earlier, the industry estimated that production will recover in the second quarter. We still anticipate that production will increase from 250,000 tonnes to 300,000-350,000 tonnes this year,” Dr Somsak said. He forecast that it would takes 2-3 years before Thailand returns to producing 500,000-600,000 tonnes of shrimp as before the EMS crisis.
|US to raise shrimp duty for India, Thailand, Vietnam|
[01 April 2014] The US Department of Commerce (DOC) plans to increase shrimp duty rates over prior final rates for major US shrimp suppliers in India, Thailand and Vietnam. This results primarily from the DOC’s use of a new calculation methodology called ‘differential pricing’. In India, rates were increased across the board from 0% up to 3.01%. Similarly, Thai exporters saw their shrimp antidumping duties tick up from 0% in 2013 to 1.1% industry-wide. Vietnamese exporters, meanwhile, were levied rates between 5 and 10%, a significant increase from 2013.
|Decline in China's soy imports from US|
[01 April 2014] Although China's soy imports from the US declined 7% last year, it imported significantly more (33%) during the fourth quarter compared to the same period a year ago. This was aided in part by a larger soybean crop in the US and declining soybean prices, which spurred increasing demand in China, revealed the USDA in its weekly grains report. China’s soybean production for the marketing year 2013/14 is estimated at 11.8 million tonnes due to less planted area and to yield factors. Due to increasing demand for soybeans by animal husbandry and feed industries, and falling soybean stocks, China is forecast to import more than 67.7 mt of soybeans during 2013/14—up from 60 mt in 2012/13.
|South Korea able to export poultry products to US in May|
[01 April 2014] The Republic of Korea can export poultry products to the US by end May. According to USDA’s Food Safety and Inspection Service (FSIS) certified South Korean plants will be eligible to export slaughtered and processed poultry products to the US effective May 27. The FSIS said the final rule allowing the import of poultry products follows the agency’s review of the republic’s poultry laws, regulations and inspection system, which found them to be equivalent to the US food safety system for poultry.
|Indonesia releases Q2 permits for 273,000 cattle|
[01 April 2014] Indonesia has released permits for Australia to export 273,000 head of cattle in the second quarter of 2014. It’s a major increase from the first quarter of this year, where 160,000 permits were released, but is not a surprise to the industry and follows a tradition of stacking to make sure there’s enough beef for major religious events such as Ramadhan and Eidul Fitr. Indonesia has also granted the Australian live export industry dispensation for permits issued in the first quarter, meaning the permits will not expire after March 31. Ben Hindle from the Northern Territory Livestock Exporters Association said it’s a big relief for industry. “Australia is on track to supply Indonesia with around 700,000 head this year and exporters and producers are confident of being able to meet that demand.”
|Vina to expand in northern Vietnam|
[31 March 2014] Pham Duc Ngu, General Director of Vina feed said the company is expanding its operations in the Northern provinces of Vietnam. Based in southern Dong Nai province, Vina operates three feedmills. "Our plant in Hai Duong in the north has reached maximum capacity. We are now building our fourth feedmill in northern Ha Nam province. It will have a capacity of 260.000 tonnes/year in the first phase," Mr Ngu told Asian Agribiz. Vina has a total capacity of 500,000 tonnes/year and targets to produce 1 million tonnes/year by 2018.
|CPF down sizes shrimp processing facility on EMS crisis|
[31 March 2014] Thailand’s Charoen Pokphand Foods Plc has decided to down size its main shrimp processing plant in Samut Sakhon province due to the lack of shrimp supply caused by the Early Mortality Syndrome (EMS), a source told Asian Agribiz. The plant will shift to other activities and may operate shrimp processing on a much smaller scale. Nattapon Nattasomboon, Director-General of the Industrial Works Department told Asian Agribiz that CPF will not switch its operations nor close the plant but will consider another business at this facility.
|DVS approves Asiapac Biotech enzyme products|
[31 March 2014] Malaysia’s Department of Veterinary Services has evaluated and approved for registration six Asiapac Biotech Sdn Bhd feed enzyme solutions which can be used to increase daily gain, improve feed efficiency and liveability in the poultry and swine sectors, General Manager Ng Sin Keong told Asian Agribiz. “Pokazyme is the company’s first batch of products approved for use in the country and will be launched at the Asiapac Asean Seminar on April 3 in Malaysia,” he said. The company, based in Klang, Malaysia, has also sent in its products for registration in Indonesia, Thailand and Vietnam, where it has appointed distributors. Headquartered in China, AsiaPac (Dongguan) Biotechnology Co Ltd has an R&D base in Taipei, Taiwan.
|Poultry prices in Pakistan to come down gradually|
[31 March 2014] Chairman of the Pakistan Poultry Association Dr Hassan Sarosh said that the recent hike in poultry products prices is temporary and will come down by mid-April. “The weather is expected to improve and the gap between demand and supply will reduce, and prices will stabilise,” said Dr Sarosh. The retail price of live chicken reached USD 1.8/kg in the twin cities of Islamabad and Rawalpindi. “The poultry industry had to deal with over supply and low prices in the past 18 months, leading to many farmers exiting the industry. This led to lower supply. "With better prices now, farmers are returning and supply and prices should even out,” Dr Sarosh explained.
|Surplus in global commodities dents Louis Dreyfus earnings|
[31 March 2014] Louis Dreyfus' 2013 net income fell to USD 640 million from a record USD 970 million the year before. Its ‘proteins’ division which encompasses oilseeds, grains and vegetable oils suffered losses after the 2012 US drought reduced processing and other opportunities for agricultural trading houses in the first half of 2013. The second half, however, saw a reversal of this trend with ample harvests of grain and oilseeds. “With the entire industry impacted, Louis Dreyfus Commodities responded successfully, delivering a solid performance with USD 63.6 billion in sales and USD 1.7 billion in operating profits,” said Louis Dreyfus Commodities Holdings Chairman Serge Schoen.
|US drug makers to limit antibiotics in livestock production |
[31 March 2014] The US Food and Drug Administration is initiating moves to reduce the use of antibiotics in livestock production by limiting it for therapeutic purposes rather than growth promotion. The agency said that 25 out of 26 drug companies have agreed to comply and will either withdraw the drugs completely from use in animal production or make them available only under a veterinarian’s oversight. These companies generate 99.95% of total sales of products affected by the agency's plan.
|Austfeed to import GGP to improve genetics|
[28 March 2014] Austfeed Vietnam will import 44 GGPs this month. "This is part of our strategy to expand our swine production in Vietnam," Dao Manh Luong, CEO of Austfeed Vietnam told Asian Agribiz. Large White, Landrace and Duroc breeds from the UK will be the first GGP stock for Austfeed, which currently has 600 GPs and 2,000 PS on its farms. The company targets to produce 20,000 sows and 40,000 commercial pigs by 2018. "Vietnam sits next to China, the biggest consumer of pigmeat in the world. We have great potential to export pork to China if we can reduce production cost and ensure meat quality," Mr Luong said.
|Weak demand makes exports more competitive |
[28 March 2014] Weak demand for broiler meat in China because of H7N9 will end up giving a boost to China’s chicken exports, according to the USDA. Chinese broiler production will decline to 12.9 million tonnes in 2014, and imports to 235,000 tonnes, the USDA said in a semi-annual status report on the Chinese industry. However, weak demand is leading to lower prices, making China’s cooked and prepared poultry products more competitive in export markets, and USDA forecast exports at 430,000 tonnes. The export market is a small piece of good news for China’s poultry industry, which has lost USD 6.45 billion since January this year because of avian influenza.
|Betagro adopts innovative vaccination technology |
[28 March 2014] Betagro showcased at a local agricultural show a Needle Free Injection Device (NFID). This innovative vaccination technology is from Canada said Chayanon Kittayachaweng, Senior Vice President of Animal Health at Betagro Group. He said the company uses this technology at its swine farms in compliance with animal welfare as the NFID is safe and painless. The technology provides high accuracy in terms of dosage and can be administered to 6-7 pigs per minute.
|Cambodia reports new outbreak of H5N1 flu|
[28 March 2014] Cambodia reported a new outbreak of H5N1 highly pathogenic avian influenza in a village poultry flock. The outbreak started on March 18 in a backyard flock of 526 birds at Kandal in the region of Kampot, which borders Vietnam. Around 300 of the birds died and the rest have been destroyed. After receiving a report from the birds’ owner, district and provincial veterinarians collected samples from chicken, ducks and geese, and sent them to the National Veterinary Research Institute where they were confirmed positive for H5N1.
|Nestle opens food safety research centre in Beijing|
[28 March 2014] Nestle has opened a food safety research centre in Beijing aimed at supporting Chinese authorities as they strengthen food safety policies and standards, Reuters reported. Food safety is a big issue in China after scandals involving tainted milk, recycled ‘gutter oil’ used for cooking and donkey meat found to contain traces of fox meat. Nestle said the new operation will provide early management of food safety issues and collaboration with local universities, research institutes and government agencies, while also helping to run food safety training programs. The centre is located within Nestle’s existing research and development operation in Beijing.
Fonterra builds first manufacturing facility in Indonesia
[28 March 2014] Fonterra recently commenced construction on its first blending and packing plant in Indonesia. Located in West Java, the plant is Fonterra’s first manufacturing facility in the country and its largest investment in a new manufacturing facility in Asean in the last 10 years. Pascal De Petrini, Managing Director of Fonterra Asia Pacific, Middle East & Africa, said that the Cikarang Plant will allow Fonterra to meet the demand for dairy nutrition in Indonesia. “Demand for dairy in Indonesia is expected to grow by around 5% each year to 2020, and our investment in this facility will help support this growth,” said Mr De Petrini. The plant is expected to be operational by March 2015 and will have the capacity to pack and blend 12,000 tonnes of advanced and base nutrition milk powder products annually.
|Indonesia to import more corn |
[27 March 2014] Indonesia’s corn imports this year is expected to increase over last year’s imports since some corn production centres in North Sumatera and East Java were affected by the eruption of Mount Sinabung and Mount Kelud. Secretary General of the Indonesian Feed Millers Association, Dr Desianto Budi Utomo said corn imports from January to March 2014 have reached 350,000 tonnes, while in the same period of last year corn imports were recorded at 250,000 tonnes. “Local supplies are limited due to the volcanic eruptions,” Dr Desianto pointed out. Due to the situation, he predicted that Indonesia’s corn imports this year could reach more than 3.6 million tonnes.
|EU–Thailand to cooperate on animal welfare|
[27 March 2014] Thailand and the European Union strengthened their cooperation on animal welfare through a workshop held in Bangkok on March 25. Dr Andrea Gavinelli, Head of Unit, Animal Welfare in the European Commission Directorate General for Health and Consumers said activities like this is aimed at passing on the knowledge the EU had built up over 40 years. "We believe that good animal welfare is crucial not just for the animals but also in delivering long-term sustainability for agriculture.”
|Indonesia’s aqua exports to US expected to grow 35%|
[27 March 2014] Indonesia’s Ministry of Fisheries and Marine Affairs has said it expects to see national fishery product exports to the US grow by 35% to USD 1.9 billion this year. Commenting on this, President of the Indonesian Fishery Product Processing and Marketing Association, Thomas Darmawan said the US economy is getting better, “that is why we believe that demand, especially for shrimp and tuna will grow. Indonesia should view this as an opportunity to increase national production as well as quality standards,” he said. Mr Thomas explained that of last year’s exports of USD 1.4 billion, 63.57% or around USD 890 million comprised of shrimp, while tuna made up USD 115 million in sales.
|PEDv to cause two-year shortfall in North American market|
[27 March 2014] The raging PEDv outbreak in the US, Mexico and Canada will cause a significant two-year shortage in the North American hog market, a report by Rabobank said. Already, PEDv has affected some 60% of the US breeding herd, 28% of the Mexican herd, and is beginning to develop in Canada. Rabobank said that if the virus spreads in Mexico and Canada at the pace it has done in the US, hog slaughter in the region could fall by nearly 18.5 million hogs in 2014-2015. Rabobank Analyst William Sawyer said that if the virus continues to affect US farms at its current rate, the country’s shortfall might be as much as 15 million hogs. Such a shortfall will likely affect US pork export volumes as well as prices.
|DaChan weathers H7N9 with de-risking strategies|
[27 March 2014] The H7N9 flu which affected China in the first half of 2013 severely dented DaChan Food (Asia) Ltd's business as consumers stayed away from chicken meat. The company adhered to its strategy of ‘de-risking, enhancement of food production and brand building’ which it introduced in 2012. The group said pursuing strict quality control helped it expand the proportion of sales of non-chicken products, increased the meat-to-food product conversion rate and enhanced its distribution and service capability. For year ended December 31 2013 DaChan said its overall gross profit margin decreased 4.5% as the gross margin of meat products decreased 49% against rising material cost, fierce competition, decreasing market selling price of meat products and weak demand for chicken meat.
|Chick-fil-A overtakes KFC |
[27 March 2014] With sales of USD 5.1 billion in 2013 Chick-fil-A has toppled KFC as the leading chicken chain restaurant in the sub-segment of limited-service restaurants. "Competition for share of stomach is getting more and more challenging. But brands that have found a way to differentiate themselves are gaining market share," said Ron Paul, President of Technomic a research and consulting firm in the US. Technomic's report revealed that among limited-service restaurants, the highest growth came from the Asian, bakery café and coffee café categories. McDonald's, the largest U.S. restaurant chain, saw minimal sales growth of 0.7%.
|Indonesian processors seek MDM imports|
[26 March 2014] Executive Director of Indonesia’s National Meat Processors Association (Nampa) Haniwar Syarief told Asian Agribiz that the association is lobbying the government to allow imports of poultry MDM (mechanically deboned meat). Local MDM that is supplied by the three major poultry integrators does not fulfil the market demand of about 500 tonnes/month. “The integrators can only supply around 200-300 tonnes/month,” said Mr Haniwar. "Besides, the price of imported MDM from the US and Brazil is only about USD 1/kg while the price of local MDM is about USD 1.4/kg,” he said. He expects the national processed meat business this year to grow by 30%.
|CJ Vina breaks ground for new feedmill|
[26 March 2014] CJ Vina in Vietnam has started the construction of its fourth feedmill in southern Dong Nai province. Costing nearly USD 14 million, the new plant can produce 390,000 tonnes/year. CJ Vina of Korea started operation in Vietnam in 1999. The company is also into pig and poultry breeding. Jos Van de Berg, Asia Manager of Van Aarsen said told Asian Agribiz that CJ Vina will use Van Aarsen equipment.
|Boehringer Ingelheim launches 3Flex in the Philippines|
[26 March 2014] Boehringer Ingelheim launched in the Philippines 3FLEX, the first and only licensed combination vaccine for the control of PCV2, PRRS and M.hyo. Given around the weaning period, the one-shot combination vaccine provides protection throughout the growing period. Speaking during the launch, Dr Oliver Duran, Head of Technical Services Swine, Global Marketing at Boehringer Ingelheim said studies show that 3FLEX is a safe and efficacious product. Being able to mix and administer these three single-dose products in one shot, with no interference among the antigens, reduces stress on both pigs and workers, as well as saves on time and labour.
|Pakistan to enhance livestock potential|
[26 March 2014] Pakistan’s government plans to offer incentives to exploit the vast livestock potential in terms of domestic requirements and exports, said Mumtaz Khan Manais, Chairman of Punjab Agriculture and Meat Company. Mr Manais explained that new policies being drawn up are aimed at capitalising the export potential of Pakistan’s livestock sector through capacity building of farmers and people involved in the supply chain. "Opportunities are available in the dairy farming and processing business. The supply chain for value enhancement in meat and meat products is very poor currently. The dairy department can help transform traditional meat shops into hygienic selling points.”
|East Java’s milk production back to normal|
[26 March 2014] Indonesia's East Java province’s milk production has returned to normal after the eruption of Mount Kelud. Agribusiness Head of the Animal Husbandry Agency of East Java province, Rohayati said during the eruption, milk production in the province dropped by 150,000 liters/day, “but it is now back to normal to around 980,000 liters/day.” Mrs Rohayati said that Nestle, which procures around 60% of the total milk production in the province, played a big role during the eruption by providing fodder to dairy farmers affected by the eruption.
|Feed acidifiers market estimated at USD2.6b by 2018|
[26 March 2014] The global market for feed acidifiers is estimated to be worth around USD 2,026.3 million in 2013 and is projected to reach USD 2,616.7 million by 2018, growing at a compound annual growth rate of 5.2%, according to a new market report by Markets and Markets. The main industry participants are involved in acquisitions to penetrate the untapped markets. The demand-driving factors of the feed acidifiers market are the ban on the use of antibiotics as animal growth promoters, and the increasing use of acidifiers in treating animal diseases. The main restraints of the industry are the emergence of substitute products such as metabolic peptides, microflora enhancers and herbal products.
|Indonesia’s processed meat business grows 10%|
[25 March 2014] Indonesia’s processed meat business in 2013 grew about 10% and the market value reached about USD 529 million, according to Haniwar Syarief, Executive Director of the National Meat Processors Association. Processed beef was stagnant since processors faced supply shortages and high prices. Meanwhile, processed chicken meat recorded a significant growth of 20%, Mr Haniwar told Asian Agribiz. With the change from the quota system to base price system of beef, he expects to see processed beef grow by 10% this year. “For processed chicken meat, meanwhile, I believe it will grow by 20% or even more since consumption continues to increase and there are no concerns over raw material supply.”
|Pig price escalates in southern Vietnam |
[25 March 2014] Pig prices in southern Vietnam have increased significantly over the last few days as consumers turn to pork instead of poultry over H5N1 fears. The price in southern Dong Nai province, Vietnam's largest production hub rose to USD 2.35/kg while it remains at USD 2.02 in Hanoi. "Some traders are transporting live pigs from Hanoi to the south due to the price difference," Kim Chung, a farmer in Binh Duong told Asian Agribiz. Mr Chung invested USD 3 million a few years ago to modernise his farm. He said about 2,000 - 3,000 tonnes of pig arrive in Dong Nai from the north each day.
|QL’s feedmill to be operational in Q3|
[25 March 2014] Malaysian-based QL Group’s subsidiary in Indonesia, PT QL Agrofood, plans to put its feedmill into operation in the third quarter of this year. Director Dr Cecep Muhammad said construction started in Q3, 2013. “The plant will have an installed capacity of 30,000 tonnes/month and will be equipped with 10 silos with a capacity of 3,600 tonnes each and technology from Germany.” Dr Cecep informed that all feeds produced would be used for internal needs. At the moment, QL Indonesia’s poultry farms consume about 6000-8000 tonnes of feed a month. To get better quality and fresher corn, he said the company will partner with local corn farmers in West Java province. “Efficiency and integration are the reasons behind the building of the plant,” he revealed.
|Philippine producer to export duck meat to Japan|
[25 March 2014] Maharlika Agro-Marine Ventures Corp, a Peking duck producer from Davao, Philippines has signed a one year sales agreement wtith Daigo Tsucho Co Ltd and Aono Fresh Meats Ltd for export of duck meat to Japan, the Philippine Embassy in Japan said. The agreement follows the successful trial shipment of Maharlika duck meat exports in January this year. Maharlika Chairman Vicente Lao said their initial shipment was “well received by the Japanese market.” The parties are also considering the possible exportation of whole ducks, premium breast meat, boneless leg meat, bone-in leg meat, wings, and fillets.
|Indonesia to release import permits for 278,000 cattle|
[25 March 2014] Indonesia is set to issue import permits for 278,000 cattle for the second quarter, starting April 1, said Bachrul Chairi, Director General for Foreign Trade of the Ministry of Trade. “Q2 permits will be issued for 214,000 feedlot cattle and 64,000 slaughter-ready cattle.” The figure is nearly twice the 160,000 cattle approved for import in the first quarter. According to Beef Central, the second quarter is always the period of greatest activity for Australia’s live cattle trade to Indonesia, as Jakarta looks to increase the number of cattle on feed ahead of the Ramadhan festival, which involves daily fasting for a month followed by days of celebratory feasting across the country.
|Pakistan to export poultry to Saudi Arabia|
[25 March 2014] Investments in the poultry sector in Pakistan are expected to grow as the country has been allowed to export to Saudi Arabia. Chairman of the Pakistan Poultry Association Dr Muhammad Aslam said the approval came after a Saudi delegation visited poultry farms, hatcheries and feedmills in Pakistan and was satisfied with the standards. Dr Aslam said that on the recommendation of the Saudi delegation, the Saudi government has permitted imports of chicken, hatching eggs and DOC from Pakistan.
Roundup of Ildex Vietnam 2014
Onsite report by TUNG NGO
[24 March 2014]
Big Dutchman to intensify pig services in Vietnam
Big Dutchman made a remarkably presence at Ildex Vietnam with a large booth that displayed modern poultry and pig farming equipment for visitors. Jan Hofstede, President for Asia Pacific said the company will intensify its services for pig farming in Vietnam by strengthening its team. “We were managing the pig business out of our office in Thailand. But now are going to step up our efforts,” Mr Hofstede told Asian Agribiz. For the poultry segment, Big Dutchman promoted Elevator ST, an egg collection systems for cage production.
Impex to introduce new products
Impex, which provides innovative drinkers, has been in Vietnam for more than 10 years. The company promoted a number of drinking nipples for broilers, layers and pigs. Olaf van Steeinis, Asia and Middle East Manager, told Asian Agribiz that Impex is about to launch a new product that will automate the flushing process in drinking systems. “This system will control the water quality,” Mr Steeinis said. “Farmers in Vietnam are more aware of the importance of the quality of drinking water. I am positive about the future of this market,” he said.
Vencomatic starts business in Vietnam
Vencomatic, which now combines Agro Supply, Prizen, and Vencomatic, is looking for distributors in Vietnam. The group provides solutions for egg handling, housing and climate control. At the show the company presented an egg transfer system with unique low pressure vacuum transfer heads. The head, which is adjustable, lifts eggs and places them carefully onto trays in different patterns.
Van Aarsen reaffirms its strong market base in Vietnam
Jos Van de Berg, Asia Area Manager of Van Aarsen said the company enjoys a big customer base in Vietnam. “Most of them have plans for expansion with new feedmills and production lines,” he said to Asian Agribiz. He added that small feedmillers are fast disappearing and the medium and large producers are growing. Mr Van de Berg said that the company is currently working on a major project with CJ Vina.
Moba recently closed a deal on supplying equipment
Teddy Wong Wei Suei, Area Sale Manager of Moba said the company recently signed a deal with a major egg producer in northern Vietnam. At the show, Moba introduced automatic egg grading machines in capacity ranges from 20,000 up to 180,000 eggs/hour. Mr Suei said with “individual egg handling” the eggs do not make contact after they are placed on the machine. In addition, advanced grading algorithms improve grading efficiency and guarantee exact traceability. Among Moba's customers in Vietnam are Ba Huan, which supplies up to 30% of market demand in Ho Chi Minh City. “When you grade eggs you can sell it at a higher price because of the quality,” he said.
Olmix introduces Amadeite and Ecopiglet
Olmix introduced its latest products, Amadeite and Ecopiglet. Amadeite is a new original hybrid material, a clay in which the structure has been modified by algae extracts. This organic-inorganic compound enables the adsorption of mycotoxins by the increase of the space between the layers of clay. The other product, Ecopiglet, is to ensure the growth of piglets by stabilising the digestive systems by the development of the villus. Trinh Quang Thanh, Asia Pacific Manager said the market in Vietnam has grown significantly. "In 2004 the feed production in the country was only about 5 million tonnes. Now it is more than 13 million tonnes," he said. Mr Thanh said Olmix plans to build a factory in Vietnam in the future.
|Madusari to expand its RTE sausage|
[24 March 2014] PT Madusari Nusaperdana an Indonesian sausage producer plans to expand its ready-to-eat (RTE) sausage business. Madusari’s General Manager of Business Development Jenny Kartika Rusli told Asian Agribiz that the market value of the segment is quite big and has shown positive growth in recent years. “The main market of this segment is school children who have it as a snack.” To expand its RTE sausage business, Madusari will increase its ‘below the line’ promotion activities. “We will promote our products directly to agents, merchants and school children through some events,” she said.
|Thailand sees over supply of hen eggs in 2014 |
[24 March 2014] Hen egg production in Thailand is forecast to increase by 2-3 billion eggs in 2014 and this would lead to an oversupply in the market and affect price, said Mongkol Pipatsattayanuwong, President of the Association of Hen-Egg Farmers, Traders and Exporters. Thailand imported 535,000 PS in 2012 and the number escalated to 629,000 in 2013. Every 100,000 PS adds another 10 million layer hens to the production cycle and produces another 3 billion eggs in a year, Mr Mongkol explained. “The surplus is worrisome. The uncontrollable number of layers and eggs produced leads to an unsustainable industry,” he said. The Office of Agricultural Economics forecast hen egg output to total 11.74 billion eggs in 2014.
|Legal push to end battery cages for India’s layers|
[24 March 2014] The Federation of Indian Animal Protection Organisations (FIAPO) has issued a notice to the governments of Punjab and Haryana as well as to the Poultry Federation of India and the Animal Welfare Board of India against the confinement of layers in battery cages. India is the third largest producer of eggs in the world. More than 200 million hens are confined in battery style cages. A year ago the Animal Welfare Board of India issued an advisory to all state governments stating that battery cages should not be used and existing ones should be phased out by 2017.
|Black hogs sales drive Tianli Agritech’s earnings|
[24 March 2014] For the 12 months ended December 31 2013, China's Tianli Agritech Inc's revenue increased by USD 6.82 million, or 25.7%, to USD 33.35 million over the same period in 2012. The company attributed the stronger results to sales of black hogs. “We sold 28,003 black hogs as breeder and market hogs at an average selling price of USD 222/hog, generating revenues of USD 6.21 million for the 12 months ended December 31 2013. We also sold 2,016 market hogs for processed pork through our retail channel during the year at an average selling price of USD 270/hog, generating USD 0.54 million in revenue.” As of the end of 2013 the company retailed processed black hog products at more than 12 supermarkets and 10 chain restaurants and hotels.
Ildex Vietnam 2014
Onsite report by TUNG NGO
[21 March 2014]
Government to lower levy on feed ingredients
Big Dutchman, Biomin, Buhler, Muyang, Novus and Behn Meyer are among the prominent exhibitors at Ildex Vietnam, which is into its final day in Ho Chi Minh City today. With more than 180 exhibitors from 25 countries, the show illustrates the growth potential within Vietnam's livestock sector. “We want to be a strong meat exporter by and we also want to reduce our beef imports by 2018,” Tong Xuan Chinh, Deputy Head Animal Production Department told Asian Agribiz at the event. He said the government will reduce the levy on some imported ingredients starting May this year to support the industry's growth. Corn import tax will be reduced from 5% to 2%.
Inaccurate data affects growth of sector
Nguyen Dang Vang, Chairman of Vietnam's Husbandry Association told Asian Agribiz that inaccurate data on meat production in Vietnam could be the reason for wrong investment decisions among local producers. According to official figures, Vietnam poultry production in 2012 was nearly 730,000 tonnes. However, he said the real production can be as high as 2 million tonnes. “Producers are unsure of supply and demand figures, leading to expansion of farms while there is an oversupply,” he said. Meat price in Vietnam has been low for more than two years, but Mr Vang and other experts believe there is potential for growth.
Good potential in swine sector
Exhibitors at the show said Vietnam's livestock industry holds huge potential for future development. “The industry has been changing. Small scale and backyard farms are being replaced by larger modern farm. It is happening and it will continue to happen at a faster pace. This is a very exciting time,” said Henry Hieu, a representative of Foodmate at the show. Mr Hieu said modern technology can help producers overcome many of the current issues in the industry and help drive profitability.
Amlan expands business in Vietnam
Amlam International, the animal health division of Oil-Dri Corporation of America, promoted its wet droppings control product to poultry farmers. Wet droppings increase bacterial load and ammonia concentration, creating an unhealthy environment for poultry. Amlan’s solution, MD09, reduces the negative effects. Jeff Turner, Amlan’s regional sales and marketing manager in Asia said the company is expanding its operation in Vietnam, including their new venture into the aquaculture industry. “We are venturing into shrimp. The aquaculture market is fairly new to us, so it is very exciting,” Mr Turner said.
Valli introduces cages for mid-size farms
Valli from Italy, introduced cages for 1000 - 100,000 birds. In Vietnam where small poultry farms dominate, Valli's high quality A-frame cages that are fully manual can be easily made fully automatic when farms expand and have the funds to upgrade. “We first came to Vietnam two years ago and since then, we have seen progress,” Andrea Ainis Bushcheirni, a representative of Valli said. He added that the company is getting closer to a major contract in Vietnam.
Vi-Cor working on trials in Vietnam
Roger E. Beers, Executive Vice President of international business development of Vi-Cor presented the company’s latest natural additive for animal health and productivity. “We have been working to facilitate trials in Vietnam in aquaculture as well as other sectors to demonstrate the benefits and value of our products,” Mr Beers said. He added that Vi-Cor can help handle antibiotics residue in animal products and this will improve Vietnam's global competitiveness,” he said.
JSR Genetics introduces Geneconverter 400
JSR genetics first came to Vietnam four years ago. Paul Anderson, International Sales Director said the company’s first franchise in Vietnam will be selling pigs in the next few months while the second franchise open in the near future. At the show JSR introduced Geneconverter 400, which Mr. Anderson said is a strong breed for the hot and humid weather conditions in Vietnam. “This pig will offer farmers strong piglets, lower mortality, disease resistance, and good feed intake,” he said.
Izo enters Vietnam market
Izo from Italy made its first appearance at the show, aiming to tap into Vietnam's growing market potential. Izo specialises on vaccines, aiming at preventing high risk and economic losses due to diffusive diseases in animals. “We know that there is a big potential especially in the poultry sector due to the many disease issues. Our products will work well here,” Nicoletta Lazzarini, export manager of Izo said.
|CJ Feed Indonesia launches MC series for pullet|
[21 March 2014] CJ Feed Indonesia recently launched new pullet feeds (MC-0, MC-1 and MC-2) at two egg production centres in Tangerang and Lampung. General Manager Sales & Marketing, Tevi Melviana said MC stands for Master CHEF, and C represents ‘complete nutrition’, H ‘healthy’, E and F ‘Environment Friendly’. “The launch is aimed at increasing our sales. We hope to achieve 30% growth in total feed sales,” Mr Tevi told Asian Agribiz. CJ Superfeed’s Nutritionist Nugroho Adi explained that so far many layer farmers paid minimal attention to pullet feed, although good quality pullet feed will determine the formation of good body frame of the bird before it starts laying. “The MC series will help pullets achieve good body frame and immunity, as well as reduce N and P excretion.”
|Thai government to curb pork price hike|
[21 March 2014] Thailand’s Internal Trade Department will discuss with swine farmers and pork processor and merchants next week to maintain the price of pork at no higher than USD 4.79/kg. Wet market prices are expected to escalate to USD 4.94/kg from USD 4.33-4.48/kg currently, Director-General, Somchat Soithong said. Prime Minister Yingluck Shinawatra has ordered the national Pig Board to review production cost and price structure. The price hike has been induced by a 20-30% reduction in supply due to hot weather conditions coupled with an outbreak of Porcine Epidemic Diarrhoea virus and Porcine Reproductive and Respiratory Syndrome virus.
|Chinese government buys corn as demand slips |
[21 March 2014] China's government is buying up a record volume of corn for state reserves because demand has slipped and farmers cannot sell the corn on the market. By March 10, Beijing had already purchased 54.66 million tonnes of corn for the 2013/2014 market year, in addition to about 30 million tonnes stockpiled during the 2012/2013 market year, according to a report by the China National Grains and Oils Information Center. That means the government has had to buy in more than one-fourth of China’s estimated 211m tonne 2013 harvest. Outbreaks of bird flu have hurt domestic demand for feed grain, so farmers are selling the grain to the government. The huge purchases will stretch government grain storage capacity, and partially explain the government's willingness to reject 800,000 tonnes of US corn exports over their GM content late last year.
|Stable price for poultry feed in India |
[21 March 2014] Poultry products in India dropped on slack buying, while prices of feed products continued to rule flat. Aditya Mishra, a commodity expert, said that though there are some fluctuations in prices of key ingredients, it has not made any impact on the cost of production. “Feed prices may continue to rule around current levels over the next few days. Key ingredients of poultry feed have been ruling in a tight range,” he said. In the physical market, pre-lay mash, layer concentrate 25%, layer concentrate 35% and broiler concentrate were sold at USD 18, USD 24.8, USD 19.5 and USD 34.5, respectively, for a 50-kg bag. Soymeal ruled flat at USD 625/tonne, while maize dropped by USD 1.6 to USD 23.5/quintal.
|Vietnam poultry price contracts over H5N1 spread|
[20 March 2014] The outbreaks of the H5N1 avian Influenza in Vietnam has raised food safety concerns, leading to a drop in poultry consumption and price. According to the Ministry of Agriculture and Rural Development (MARD), the poultry price has dropped by 20% while DOC prices have decreased by 70%. Fear among consumers was compounded by reports of H7N9, in bordering China, from where a lot of spent layers are smuggled into Vietnam annually. “We consider the disease [H7N9] extremely dangerous,” Hoang Thanh Van, Head of Animal Production at MARD told Asian Agribiz. “We have imposed a ban on imports from China and ordered the closure of live poultry markets one day in each month to apply quarantine measures. If the virus is detected in a particular market, it will be closed for seven days."
|Kanemory to begin production in July|
[20 March 2014] Indonesia's PT Kanemory Food Service, which is a joint-venture company between Cimory Group of Companies and Kanematsu of Japan will begin production in July this year. “In April we will do some trials and the first production is expected in July,” Cimory COO Boediono Tandu told Asian Agribiz. In 2012, Kanemory started the construction of its Japanese specialities processing plant in Serang with a capacity of 10 tonnes/day. The plant is a central kitchen for products like yakitori, onigiri and chicken katsu that will be supplied to convenience stores in Indonesia. The company decided to venture into this market since demands for ready-to-eat (RTE) meals in Indonesia is growing. “The market value of RTE meals in convenience stores currently is about USD 88,000/month,” Mr Boediono revealed.
|Indian meat exports to grow by 5% in year ending March 31|
[20 March 2014] India’s meat exports are expected to grow by 5% to about USD 2.97 billion in the current fiscal year ending March 31 driven by strong demand. According to Food Processing Secretary Siraj Hussain the industry is “booming”. The country exported USD 2.83 billion worth of meat, mostly unprocessed buffalo meat, in the last fiscal year. “The quality of meat has improved as our export-oriented abattoirs are much better now,” he said. The country is waiting for China to open its markets to Indian meat. This, he said, would see exports growing several times. “In fact, the agreement has already been signed with China but protocols are not yet finalised.”
|More Brazilian firms to export chicken to China|
[20 March 2014] Five Brazilian poultry companies have been authorised to export chicken meat to China, the Brazilian Poultry Farming Union (Ubabef) announced. The five companies – two BRF and two JBS units and Chicken Bello, are in addition to the 24 already approved by the Chinese government for export to the Chinese market. Ubabef President Francisco Turra said the association and the Brazilian Ministry of Agriculture, Livestock and Supply and Ministry of Development, Industry and Foreign Trade had been negotiating with Chinese authorities over several months. China is the sixth-ranked importer of chicken meat from Brazil, accounting for 5% of total exports in 2013, when it acquired 190,300 tonnes worth USD 441 million. In the first two months of 2014 Brazilian producers exported 32,300 tonnes, bringing in revenue of USD 73 million.
|Philippines lift ban on Japanese beef|
[20 March 2014] After a decade of discussion between their governments, the Philippines has lifted its ban on Japanese beef, the Japanese Embassy in Manila announced. It said that local governments and Animal Quarantine Service of Japan will start issuing the corresponding certificates required to accompany the beef. The beef exports, however, will be subject to the following conditions, among them the exclusion of specified risk material and that the meat will come from one of five accredited meat establishments in Japan. The Philippines imposed a temporary ban on Japanese beef in 2001 following an outbreak of Bovine Spongiform Encephalopathy or ‘mad cow’ disease in Japan.
|Another human fatality from H5N1 in Cambodia|
[20 March 2014] Cambodia’s Ministry of Health has revealed that a three-year-old boy recently died from a H5N1 infection. The boy was from Phnom Penh and his death marks the sixth human fatality from avian influenza in Cambodia this year and the 53rd since 2005. In response to this case the Ministry of Health has initiated a radio campaign to increase public awareness about the disease.
|Vietnam risks poultry shortage in Q2 |
[19 March 2014] The low chicken price in Vietnam has deterred poultry farmers from restocking their farms and experts say the country is likely to face a shortage in the next few months, particularly at the end of the second quarter. “Because of this, we will have to import poultry to meet local demand," Dam Xuan Thanh, Deputy Head of Animal Health Department at the Ministry of Agriculture and Rural Development told Asian Agribiz. Ho Chi Minh City has taken measures by encouraging big producers to purchase and store poultry and eggs at the beginning of March for future use. The local government is helping producers access a six-month-loan of USD 470 million at a rate of 6%. The live poultry price was USD 1.17/kg in mid-March for white feather chicken and USD 3.29 – 3.52/kg for local breeds.
|Sierad sets conservative growth target|
[19 March 2014] Sierad Produce of Indonesia has set a conservative growth target in 2014 due to the unstable exchange rate of the rupiah against the US dollar. “We expect the same growth as the previous year,” Vice President Director Eko Putro Sandjojo revealed, adding that the impact of the instability has been seen in the feed industry. Mr Eko added that natural calamities such as volcanic eruption and floods have impacted some corn production centres. “Due to this, our imports of feed raw material especially corn are expected to increase.” According to IQPlus data, the company’s profit in the third quarter of 2013 fell to around USD 601,000, a decrease of 59.28% against the same period in 2012.
|TUF targets higher sales and profit in 2014 |
[19 March 2014] Thai Union Frozen Products Pcl expects to generate sales of USD 4 billion in 2014, a growth of 9% from the year earlier when sales totalled USD 3.66 billion, according to Wai Yat Paco Lee, Deputy General Manager, Investor Relations. He estimates a profit of USD 123.55-154.44 million, from around USD 88.12 million last year. Growth in sales and profit are linked to the price of tuna that has declined to USD 1200-1300/tonne from last year’s average of USD 1956/tonne, as well as shrimp production which is back on track. TUF plans to invest USD 108.11 billion this year, mostly for productivity and machinery upgrade.
|Venkys to acquire Venkateshwara’s poultry, packaging businesses|
[19 March 2014] Venkys (India) Ltd’s board has approved a proposal to acquire the poultry and packaging business operations of Venkateshwara Hatcheries Pvt Ltd situated in northern India in the state of Haryana, Punjab, Himachal Pradesh and Uttarakhand. The acquisition is estimated to cost around USD 12.3 million. According to the company, the acquisition is a part of the inorganic expansion plan of the company, which will not only consolidate poultry operations but also strengthen the geographical presence for the company in northern India. This will also increase long-term value for all stakeholders.
|Texas Chicken to focus on Malaysia’s Klang Valley|
[19 March 2014] Texas Chicken (Malaysia) Sdn Bhd, which has seven outlets in the country, wants to zone in on the Klang Valley for its expansion plans, abandoning an earlier decision to expand to new geographical areas within Malaysia. The company hopes to open 8-10 more outlets this year. The restaurant is operated by Etika Holdings International Ltd, a regional food and beverages player with operating facilities in Malaysia, New Zealand, Indonesia and Vietnam. Etika Group CEO Datuk Kamal Tan, also CEO of Texas Chicken Malaysia, said the company plans to invest a total of between USD 3 million - 4.6 million for new outlets.
|Canada looks to resume beef trade with South Korea|
[19 March 2014] Canada said it has concluded talks on a free trade deal with South Korea which could help Canada’s beef and pork exporters regain market share in the Asian country. South Korea was one of the many nations to ban Canadian beef after a 2003 outbreak of mad cow disease, and one of the last to restore trade in 2012. Canadian fresh and frozen beef is subject to a 40% tariff, 8 percentage points higher than US beef. The tariff on Canadian beef is due to fall over 15 years in equal annual steps, with the first cut occurring when the deal is implemented.
|Berg+Schmidt to open deoiled lecithin plant in May 2014|
[18 March 2014] Berg + Schmidt Asia Pte Ltd will open its new Singapore plant in May, Managing Director HV Bhawe told Asian Agribiz. It will cater to the growing demand for safe lecithin products and will produce both GM and GM-free lecithin. “The GM-free products are for countries in Europe,” he said. To ensure that a mix up between GM and non-GM ingredients does not happen, the plant has a series of security checks which starts at the entrance of the facility where trucks arrive laden with the raw material right up to the input nozzles that feed the two lines.
|Fears of tight supply dispelled|
[18 March 2014] Prices of live pigs in the Philippines has hit as much as USD 2.80/kg as of the second week of March, while some industry observers fear tight supply due to the porcine epidemic diarrhoea (PED) virus. However, Pork Producers Federation of the Phililppines President Edwin Chen told Asian Agribiz that farm prices of pigs are typically high during the first half of the year, and allayed fears that PED will cause a big reduction in supply. He remarked that “PED, if ever, will not affect the supply in a big way.”
|Indonesia’s RTE meals sector has a good future|
[18 March 2014] General Manager of Business Development of PT Foodex Inti Ingredients in Indonesia, Jenny Kartika Rusli, told Asian Agribiz that ready-to-eat (RTE) meals in pouch packs is a new category in Indonesia. “We see that there is a need for RTE meals in simple packaging that is convenient.” Since early 2012, Foodex has been producing RTE meals in sterilised pouches such as chicken curry, beef stew and chicken and beef porridge. “Since its launch, the products have received positive response from consumers. Ms Jenny believes that the RTE meals sector in Indonesia has a good future.
|Hong Kong bans eggs from Vietnam|
[18 March 2014] Hong Kong has banned the import of salted eggs from Vietnam due to H5N1 outbreaks. "The import of salted duck eggs from four provinces (Lao Cai, Long An, Phu Yen, and Dak Lak) will be banned with immediate effect for the protection of Hong Kong's public and animal health," Hong Kong authorities said in a press release. The same ban had been imposed earlier on another eight provinces in Vietnam due to avian influenza flu concerns.
|India emerges as key market for Yum! Brands|
[18 March 2014] India is expected to drive substantial growth for Yum! Brands, the owner of KFC, Pizza Hut and Taco Bell, reported fnbnews.com. “Yum! and its franchise partners plan to invest USD 100 million in India over the next three or four years. We currently operate 625 restaurants and by 2015, we expect to have about 1,000 restaurants in about 100 cities,” its Director, Corporate Affairs, Devashish Dasgupta, said. “The business environment in India has seen many positive changes. It is our key growth market,” Mr Dasgupta said.
|Can China meet growth target?|
[18 March 2014] Chinese media and economic experts are debating whether or not China’s economy can meet the 7.5% GDP growth target set by Premier Li Keqiang at the National People’s Congress. Economic growth is a key factor in consumer demand, and slower growth would mean lower demand for meat imports, especially higher-priced products such as beef and lamb. Some economists said the government cannot meet the 7.5% target without an unhealthy dose of stimulus which would increase the risk of inflation and an already-existing debt overhang. Others said that the positive effects of ongoing economic reform efforts would buoy the economy and allow the government to reach its target.
Asian Agribiz Pig Feed Quality Conference 2014
Onsite reports by ISA Q TAN & TUNG NGO
[17 March 2014]
Full-fat soybean meal good source of digestible nutrients
Full-fat soybean meal (FFSBM) is a high density source of highly digestible energy and protein, making it ideal for young pigs, Dr Basilisa Reas, Technical Manager of the US Soybean and Export Council Singapore, told participants of Asian Agribiz’s two-day Pig Feed Quality that concluded in Manila, Philippines last Friday. FFSBM is a cheaper protein source than fishmeal and can be used in piglet feeds up to 20% without any negative effects. She pointed out that adding coconut oil further improves the nutrient profile of the diets with FFSBM and that the additional cost of processing in FFSBM will be compensated by better performance especially in younger and more sensitive animals.
NIRS an effective tool to analyse feed ingredient quality
The volatility in prices of feed ingredients as well as the variability in their nutrient content makes it imperative to have an effective tool to analyse these ingredients. Sheila Heidi Ramos, Technical Sales Manager of Evonik SEA, said that one such tool is the Near-Infrared Reflectance Spectroscopy (NIRS), which is a fast, economic and reliable way to analyse raw materials for their proximate parameters and amino acid contents as well as measure of heat damage. NIRS is especially valuable in analysing ingredients that has variable AA concentrations like expensive protein ingredients, and the data gathered are very useful for nutritionists, feedmill managers and purchasers to make better decisions regarding formulation, storage and purchasing.
Benzoic acid has role in grower-finisher pigs
With consumers increasingly calling for safe pork meat, the use of antibiotic growth promoters (AGPs) in pig diets is being reduced, if not altogether stopped, worldwide. One alternative to AGPs are organic acids, which by virtue of their antimicrobial, acidification and feed preservation properties has been used extensively in piglet diets but studies show that using acidifiers like benzoic acid in grower-finisher pigs have beneficial effects. Dr Rolando Valientes, Regional Category Manager-Eubiotics of DSM Nutriotional Products, said grower-finisher pigs given diets supplemented with benzoic acid gave better performance in terms of weight gain, ADG, FCR, and carcass quality. In addition, they also had the lowest feed cost/kg liveweight, making benzoic acid an economical product to use.
Millers need structured analysis of feed operation
Ensuring consistency of feed quality has been a difficult task for feed millers. Peter Wright, principal of Stockfeed Milling Services of Australia, suggested that feed millers should regularly apply structured analysis of its operation to prevent variance in consistency and quality. “Often when looking at variations in feed consistency, it is more likely to be small problems in a number of areas,” Mr Wright said. He added that millers need to divide the operation into five or six areas for review, following the natural flow of ingredients. The critical examination include raw material received and stored; material transfer and grinding; batching and mixing; steam addition, conditioning and pelleting; cooling, sieving and loading.
Global corn and soybean production to increase
John Lindblom, Southeast Asia Regional Director of the United States Soybean Export Council told the conference that the industry would experience an excellent harvest for soybeans, corn and wheat in the 2013/2014 production year. Global soybean production is forecasted to increase 7% or about 19 million metric tonnes. The expected increase in corn production could be as high as 12%. “This has had the predictable tempering effect on prices,” he said. Mr Lindblom also emphasized the increasing demand for corn and soybean. Over the past 10 years prices of these two basic feed components have increased over 140% and 200% respectively.
Understanding amino acid composition critical to feed production
Meat and bone meal have been a favourable alternative to soybean meal. Patrapan Rucngcharoen, Regional Swine Specialist of Novus International in Thailand cited studies saying that the nutrient composition, particularly digestibility of some of nutrients, including protein and amino acid level of meat and bone meal can vary widely between sources. She offered comparison between different methods and potential limitations of each in evaluating amino acid in meat and bone meals. “It is critical that nutritionists have access to a reliable and accurate method to determine the amino acid composition of the feed ingredients,” she said. She added that a combination of the total amino acid and immobilised digestive enzyme testing may be useful in examining the quality of different meat and bone meal sources.
Bio-Emulsifier helps reduce cost and improve growth performance
According to studies revealed at the conference, bio-emulsifiers can help reduce feed cost in pig farming. It stabilizes fat emulsion by increasing kinetic stability and helps with fat digestion and has been received as an alternative additive to reduce feed cost. In order to further evaluate the value of bio-emulsifier, Kemin Asia Pacific Animal Nutrition and Health conducted a trial on weaning and growing pigs in Korea. Chinnadurai Sugumar, Product Manager for Optimum Nutrition and Growth Platform of Kemin, presented the results. He said dietary synthetic emulsifier (LYSOFORTE) in weaning and growing pig feeds can improve growth performance while feed cost can be reduced by approximately 20%.
Industry players seek ways to reduce antibiotics in pig farming
As the use of antibiotics in farming continues to be rejected, industry players are focused on finding solutions and alternatives. Dirk Bogaerts, R&D Manager of Aveve Biochem of Belgim said this requires an integrated approach. Aveve opts for optimising pig intestinal health, by raising feed intake and preventing microbial imbalance. He pointed to a number of answers: using high quality raw materials to increase feed intake during the weaning period – palatable ingredients with high digestibility and minimal level of mycotoxins; and suppressing the development of pathogens in the intestine. He emphasised a relatively new approach of using medium chain (tri)glycerides (MCT) in piglet feeds. MCT is an antimicrobial oil with unique fatty acid composition and slow-release effect. “The use of antibiotics via medicated feed is reduced from 6 to 2 weeks,” he said.
|Investment in fish, shrimp processing reaches USD229m |
[17 March 2014] Investments in the fish and shrimp processing sector in Indonesia reached USD 229 million in 2013, an increase of 27.2% from the previous year. According to Director of Investment of the Ministry of Fisheries and Marine Affairs, I Made W Arthajaya, 74% of the figure was from domestic investment. “Most of the investment is in fish and shrimp processing facilities, cold storage, ice plant and fish meal processing facilities.” Mr Made expects investment in fish and shrimp processing to reach USD 262 million this year.
|GFPT expects 10% sales growth in 2014|
[17 March 2014] Thailand’s GFPT is forecast to generate a 10% growth in sales and 9% growth in profits, thanks to increase in exports said CIMB Securities (Thailand). GFPT is expected to escalate its chicken exports by 5,500 tonnes, with raw meat exports to Japan and processed chicken to Malaysia. Chicken exports and sales in 2014 are forecast to rise by 7% while feed sales will grow 6% following an estimated expansion of production capacity at its broiler farms by 10% in the second half of the year and a recovery in shrimp farming following the Early Mortality Syndrome pandemic.
|India’s poultry feed prices rise on costlier inputs|
[17 March 2014] Prices of poultry feed increased last week in India following an uptrend in prices of key ingredients. Higher input costs, especially soybean meal sent feed prices up, said Commodity Trade Expert Aditya Mishra. Prices of feed products have increased by USD 0.4-1.2 for a 50-kg bag. “If soybean meal continues to rally, feed prices may increase further in the coming days,” Mr Mishra predicted. In the physical market, soybean meal went up by USD 22.9 to USD 621.6/tonne, while bajra dropped by USD 19.6 and is sold at USD 213/quintal.
Asian Agribiz Pig Feed Quality Conference 2014
Onsite reports by ISA Q TAN and TUNG NGO
[14 March 2014]
Nutrient asynchrony leads to poorer results
Nutrient asynchrony happens when there is an imbalance in the way nutrients are delivered to the animal, leading to poorer animal performance. On the first day of Asian Agribiz’s Pig Feed Quality Conference 2014 in Manila, Philippines yesterday, nutrition expert Tony Edwards said nutrient asynchrony is not a new concept, but it explains why diets formulated to the same specs can give inconsistent results or the same diets used in different sites results in variable performance. He explained that “it is not just a matter of delivering the total nutrients in a day, it also has to do with how these nutrients are delivered in sequence with one another. So if there’s a variation in the timing of the delivery of those nutrients over the course of the day, evidence would suggest that they would be used in a different manner and therefore give poorer results.”
Lower protein diets key to sustainable animal production
Increasing dietary CP (crude protein) in animal diets has been a way for nutritionists to cover for the variability in the quality of feed ingredients and the potential errors of feed manufacturing. However, increasing CP levels is expensive and leads to higher excretion of nitrogen, which is a significant contributor to environment degradation. Dr Eloisa Carpena, Technical Sales Manager of Evonik, said that with the availability of supplemental amino acids, nutritionists have the flexibility to reduce CP levels based on ideal amino acid profiles and still achieve optimal levels of performance and production. In so doing, nutritionists can be more responsible in supporting more sustainable animal production.
β-mannanase allows higher inclusion of palm kernel meal, copra meal
With the upward trend in prices of major feed ingredients like corn, wheat and soybean meal, pig producers must find ways to help bring down feed costs while maintaining or improving productivity and feed efficiency. One strategy is to use alternatives like palm kernel meal (PKM) and copra meal (CM), said Prof Yoo Yong Kim of Seoul National University. He noted that while both PKM and CM are high in mannans, using β-mannanase allows for higher inclusion of PKM and CM without any detrimental effect on the growth performance and meat quality of pigs.
Ensuring good pellet quality
Studies have shown that pellet feeds result in better FCR than mash feed, and this has justified the additional cost in producing pelleted feeds. However, it is important to produce good quality pellets because pellets high in fines and low in pellet durability index will lead to lower FCR and this may not justify investment in a pelleting machine, said Sotero Lasap, Technical Sales Manager Animal Feed (Asia & Pacific) of Borregard. He said the five factors that affect pellet quality include formulation, conditioning, particle size, die specification, and the drying and cooling. In addition, he said it is important to understand the correlation between production rate, kwhr/MT (the amount of energy needed to produce a tonne of feed), and pellet quality. Understanding these factors, as well as the relationship between production rate and the kwhr/MT to make good quality pellets gives producers a better understanding of where to check when there is a problem with pellet quality.
Farmers must strive to improve energy utilisation
Professor Rommel C Sulabo of the University of the Philippines Los Banos, Laguna, said simply reducing cost of the feed in short term will not ensure profitability. “When we talk about the value of feeding programs, we have to move beyond diet formulation,” he told the conference. “When we talk about dietary economics, it’s more important to look at the marginal feed cost rather than at feed cost per kg,” he added. "While corn and soybean meal are industry standards for supplying energy and amino acids in swine diets, there are many suitable alternatives."
Genetic advantage should be realised with right nutrition
Current pig breeds can help farmers with animal performance. However, their potential can be fully realized only when they receive the right nutrition. “In order to be able to realize the genetic capacity, the environmental needs of the sensitive hybrids have to be fulfilled,” Andras Valentin Vucskits of Phytobitics Futterzusatzstoffe GmbH told the conference. He said farmers can achieve this by using feed additives that increase tryptophan absorption, which helps increase the stress threshold of the pig. He also cited studies suggesting that stress alleviation should be supported with intestinal “inflammation-management”. “Pure plant-origin feed additives that beneficially affect both inflammation and the stress threshold can be successful modern day growth promoters,” he said.
Secondary plant compounds increase FCR
High stock density may result in pigs being more sensitive to pathogens, which often results in decreased feed intake and lower growth rate due to intestinal disorders. “Secondary plant compounds improving palatability and digestion can be a good instrument for the maintenance of feed consumption and growth performance,” Rainer Aschenbroich, product manager of EW-Nutrition told the conference. Studies show that in the field of pig fattening often with low margins, it is important to maintain a high daily gain level and FCR as these two factors are related to feeding costs per pig. He added that the compounds could help farmers to increase production efficiency.
Dry extrusion improves nutritional value of ingredients
Mayette Ramos, Southeast Asia Regional Director of Insta-Pro International highlighted the benefits of dry extrusion to produce high quality feed. Raw materials benefit from dry extrusion because of the high temperature and short cooking time. The process will deactivate naturally occurring anti-nutritional factors, while nutrients are made more digestible when the extruded feeds are feds to pigs. “When the animal consumes these improved ingredients, the performance will improve,” Mayette Romos told the conference. She said the extrusion has been shown to be highly effective at reducing anti-nutritional factors in soy, which will hinder growth performance of swine if not deactivated.
|Enzymes key to minimising feed costs|
[13 March 2014] Energy, protein and phosphorus are the most expensive components in animal feed. At the DSM Satellite Symposium entitled ‘New approaches to gut health, meat quality and sustainability’ held yesterday, Dr Benito Oliveros, Regional Technical Manager-Southeast Asia of DSM Nutritional Products, told participants that using enzymes that ensures better or increased digestibility of these nutrients will help minimise feed cost. Using carbohydrases degrade cell wall and reduce viscosity of intestinal content thus increasing the energy from cereal grains. Proteases improve amino acid digestibility thus reducing the need for crude protein and amino acid in the diets, while phytases leads to better release of phosphorus, thus reducing the need for inorganic phosphorus sources. The symposium was held in conjunction with the two-day Asian Agribiz Pig Feed Quality Conference 2014, which begins today at the Edsa Shangri-La Hotel in Manila, Philippines.
|Consumers looking for healthy RTE meals |
[13 March 2014] Malaysia's Juradamai Sdn Bhd will move into a larger central kitchen at the end of the month as the company’s sales of its halal ready-to-eat (RTE) meals have taken off. Currently the company processes 200 native birds/day for its salt-baked chicken which is sold as whole birds and as part of a bento set with flavoured rice and condiments. By mid-year Juradamai hopes to process 500 birds/day. The meals are currently sold at the Circle K convenience outlets. “The working crowd is looking for tasty, healthy and hearty meals,” Head Chef and Director Kenneth Chen told Asian Agribiz. Mr Chen also sees potential in the export market. “We have had enquiries to sell our products in Sabah and Sarawak as well as China. The Middle East is another potential market we are looking at,” he said.
|Nationwide online meat delivery service opens in China|
[13 March 2014] Chinese e-commerce giant TMall.com has opened a new service that allows consumers nationwide to order meat via the Internet and receive delivery within 24-48 hours. The service is kicking off with a seven-day sale of American pork promoted by the US Meat Export Federation. Online food shopping has been booming in China, but TMall, which is the country's largest business-to-consumer platform, is the first to offer nationwide service for meat. The meat is delivered via one of China’s ubiquitous courier services in insulated packages.
|Vietnam imports USD 375 million in feed material in first two months|
[13 March 2014] Vietnam has imported USD 375 million worth of raw material for animal feed production in the first two month of this year, up 4.7% compared to the same period in 2013. The Ministry of Agriculture and Rural Development said the imports include 1.26 million tonnes of corn, increasing seven folds in volume year-on-year. The country grows about 1 million ha of corn with production of about 4 tonnes/ha and 100,000 ha of soy, with production of about 1.2 tonnes per ha. Vietnam imported USD 3 billion in feed material last year. This is expected to increase by about 20% per year over the next two years.
|MLA predicts a record year for cattle exports to Vietnam|
[13 March 2014] Meat and Livestock Australia (MLA) corrected an earlier prediction that live cattle exports to Vietnam would decline this year because of increase demand from Indonesia. It predicted Vietnam would import 40,000 heads this year, down from last year’s record of around 68,000 heads. Bernie Brosnan, a representative of MLA, said recently the 40,000 mark will probably be reached by the end of this month. “It’s definitely a 100,000-plus cattle market this year,” he said. Mr Brosnan said the growth of the Vietnam market has been phenomenal. Vietnam is now the second biggest market for northern Australia’s live cattle.
|Thailand confirms absence of bird flu |
[13 March 2014] Director-General of Thailand’s Ministry of Public Health, Narong Sahametapat, confirmed that a patient from a chicken farm in the north-eastern province of Nongkhai did not contract the bird flu virus. The male patient who is a worker on a farm where around 3000 chicken died is now getting better. The ministry is monitoring another six farm workers and residents in nearby villages. “At the moment, there are no traces of bird flu infections across the country,” Dr Narong said adding that while neighbouring countries still facing the virus threat, Thailand remain stringent in its surveillance.
|Grain prices appreciating|
[12 March 2014] The political crisis in the Ukraine is making it possible for grain prices in India, the US and other locations to move up in-spite of a bumper corn production across the world. In the US, prices moved up by more than 5% across all contracts. Meanwhile, the appreciating rupee is likely to make Indian corn a little more expensive in the export market.
|Asean to set own shrimp standards|
[12 March 2014] With Asean supplying 80% of the global shrimp output, producers and processors are working to build a common set of standards for their shrimp, which is suitable with regional conditions and harmonized with other popular international requirements. Currently, they have to follow various standards set by importing countries. Vice Chairman of Vietnam Association of Seafood Exporters and Producers Nguyen Huu Dung said the standards will be divided and applied for extensive shrimp and industrial shrimp and are expected to be enforced by 2015.
|Aussie meat prices to rise|
[12 March 2014] While Australia's red meat exports are predicted to find significant opportunities in emerging markets such as China and the Middle East, it should brace for competition from India, Brazil, the US and China. Economist Trish Gleeson from the Australian Bureau of Agricultural and Resource Economics and Sciences prices are set to rise as herd and flock numbers recover from the drought. “Beef cattle saleyard prices are expected to fall to an average 18% lower than the 10-year average saleyard price in real terms,” Ms Gleeson said. Assuming a return to normal after the drought, beef cattle prices are forecast to rise by 12% in 2014-15 while lamb prices, aided by strong export demand, are forecast to average 15% higher in 2013-14 and a further 8% higher in 2014-15 as availability tightens.
|India develops white spot virus diagnostic kit|
[12 March 2014] Mangalore-based College of Fisheries has developed a diagnostic kit for the detection of white spot virus in shrimp. Dean of the college K M Shankar said the virus causes an estimated annual loss of USD 82 million in the shrimp culture industry. The farmer-level kit is ideal for diagnosis and will cost farmers USD 0.65-0.82, whereas the laboratory-level diagnosis costs USD 8.2 a test. Stating that white spot viral attack is contagious and kills shrimps quickly, Mr Shankar said the kit would help in the early warning of the virus attack. The kit was evaluated in shrimp farms in India and outside since 2006 and the technology will be transferred to a multinational company Virbac Animal Health Care.
|China suggests move towards GM crop approval|
[11 March 2014] China’s minister of agriculture, Han Changfu, has expressed confidence in the safety of genetically modified (GM) food, suggesting that China is moving towards approving domestic GM crop production. The move would allow China to sharply reduce imports of soybean, corn and other animal feed ingredients. Speaking during the annual meeting of the National People’s Congress, Mr Han noted that imported GM soybeans are already used to make most Chinese soybean oil, which he himself eats. China currently grows only one GM food product, a kind of papaya, but has issued import permits for several varieties of GM corn, soybeans and other crops. His statement came only three months after China rejected more than 800,000 tonnes of US corn that contained MIR162, an unapproved GM variety. There is widespread public suspicion about the safety of GM food in China, but government officials and scientists are keen to move ahead with GM crop production to reduce dependence on imports.
|Majority of Malaysian slaughterhouses unlicensed|
[11 March 2014] Nearly 80% of the 2000 poultry slaughterhouses in Malaysia are not licensed and registered with the Veterinary Services Department. Agriculture and Agro-based Industry Minister Datuk Seri Ismail Sabri Yaakob said they were owned by small shops and the halal status was doubtful. “The ministry wants all state governments to enforce the Poultry Farming Enactment to ensure that all slaughterhouses are licensed and registered to enable the authorities to monitor their operations,” he said. Only two states, namely Terengganu and Penang, had yet to promulgate the enactment. “States armed with the enactment should enforce it to enable relevant authorities like the Islamic Development Department and the Veterinary Services Department to monitor the slaughterhouses and take action against errant ones,” he said.
|China should establish reserve to alleviate poultry crisis|
[11 March 2014] The Chinese government should establish a poultry reserve that would allow it to support producer prices, an agricultural delegate suggested during the National People’s Congress last week. China's poultry sector is in crisis because avian influenza fears have shut down live chicken sales in thousands of wet markets since Chinese New Year, while fearful consumers have reduced purchases of chicken and eggs. The government could protect producers by buying chicken when the market is weak, and also protect consumers by selling when prices are high, the delegate said. The government already operates a pork reserve with similar goals.
|India’s first trout fish feedmill set up in Jammu and Kashmir|
[11 March 2014] A trout fish feedmill has been established at India’s National Fish Seed Farm (NFSF) in Ganderbal district of Jammu and Kashmir - the first in the country. An official spokesman of NFSF said the feedmill is equipped with latest technology from the Netherland for producing extruded pellets for trout fish feed. “The feedmill has been established to cope with growing demand for trout feed for private fish farmers as well as the government fish farms. The feedmill is not only able to meet local demand in the state, but can also export the feed to other states and to neighbouring Asian countries,” he said.
|Feed phosphates market to reach USD5.3m by 2018|
[11 March 2014] The global market for feed phosphates, in terms of revenue, was estimated to be worth USD 4,620.3 million in 2013 and is expected to reach USD 5,328.3 million by 2018, growing at a compound annual growth rate of 2.9%. The revenue is projected on the basis of main regions such as North America, Europe, Asia-Pacific, and rest of the world. Leading manufacturers are focusing on expansion of their feed phosphate business across regions and setting up new plants so as to increase production capacity as well as strengthen their product line. Feed phosphates are nutritive supplements which are added as a source of calcium and phosphorus in the diet of animals.
|Victoria rolls out USD32m plan to promote products in Asia|
[11 March 2014] The Australian state of Victoria has launched a USD 32 million plan to put Victorian food and produce on tables in Asia. It is a bid to tap into the growing clout of middle-class Asians, expected to increase by six-fold to 3.5 billion people by 2030. State premier Denis Napthine, in announcing the initiative dubbed Food to Asia Action Plan in Victoria’s capital city of Melbourne, described it as “a concerted plan to give our food producers every opportunity to sell their high-quality products in Asia”. Victoria is Australia’s leading food and agriculture state, with food exports in 2012/2013 valued at USD 6.9 billion, or 26% of Australia’s total food exports, more than any other state.
|Pig prices high on tight supply|
[10 March 2014] Farm price of live pigs in the Philippines has gone up to about USD 2.69/kg due to tight supply that has been attributed primarily to an outbreak of porcine epidemic diarrhoea (PED). Dr Zoilo Lapus, President of the Philippine College of Swine Practitioners, told Asian Agribiz that the latest outbreak began in December 2013, and is similar to that which hit local pig raisers in 2006. The current outbreak has affected key pig producing provinces in Central Luzon like Bulacan, Pampanga and Tarlac, as well as Batangas Province south of Manila. Dr Lapus said that the current situation might last until the 3rd quarter this year. Although PED is mostly seen in piglets, the virus can also affect growing and finishing pigs.
|CP Pokphand acquires Hefei Chia Tai|
[10 March 2014] CP Pokphand Co Ltd, the Hong Kong-based affiliate of CPF, will acquire the Chearavanont-family controlled Chinese animal feed business Hefei Chia Tai for USD 36.4 million. Hefei Chia Tai was incorporated in 1992 and has paid up of USD 20.7 million. The company had an audited profit before taxation in 2013 of USD 3.4 million.
|Thai feed consumption to rise on higher chicken exports|
[10 March 2014] Animal feed consumption in Thailand is expected to rise to 16.5 million tonnes in 2014, from 15.6 million tonnes in the previous year, due to higher demand from the poultry industry following Japan’s lifting of its ban on Thai raw chicken exports, said Boontham Aramsiriwat, Secretary-General of the Thai Feed Mill Association. Mr Boontham also pointed out that Thailand still relies heavily on imported raw material, with 35% of the total requirements coming from imports. Last year, Thailand produced only 70,000 tonnes of soybean while the feed industry needed around 10,000 tonnes per day for feed production, he added and urged the government to pay more attention to protein sources for feed industry.
|India’s soymeal exports decline|
[10 March 2014] India’s export of soybean meal in February 2014 was 183,000 tonnes, as compared to 577,000 tonnes in February 2013, showing a decrease by 68.28%, the Indian Soybean Processors Association (SOPA) data showed. “This decline was primarily due to lower arrival of soybean resulting in lower crushing,” said SOPA Coordinator, Rajesh Agrawal. “It will improve only when the arrivals of soybean increases at various markets within the state.” He added information that on a financial year basis, exports between April 2013 and February 2014 was 2.6 million tonnes, a decrease of 16.19% from the same period in the previous year.
|Two-way investment opportunities for Australia, Indonesia|
[10 March 2014] National Australia Bank’s Chief Representative in Indonesia, Dean Horton, said beef consumption in Indonesia is rising from the current 2kg/capita and this offers two-way investment opportunities for both Australia and Indonesia. “Indonesia is looking for food security and more importantly, reliability of suppliers and price stability,” Mr Horton said. “For northern Australia beef producers and the broader industry, this means opportunities for investment in breeding properties in Australia, investment and joint ventures in vertically integrated feedlots and abattoirs and supply chains in Indonesia.”
|KFC Malaysia hope to increase QSR market share to 50%|
[10 March 2014] KFC Malaysia, a brand under QSR brands (M) Holdings Bhd, expects to increase its market share in the fast-food segment to 50% by year-end from 45% now. The company hopes to achieve this by intensive promotions and media expenditure in attracting more transactions, said Senior Vice-President Ling Mee Jiuan. She said the company had allocated USD 30 million for advertising expenditure this year as compared with USD 29 million last year. It recently launched an updated version of its classic KFC Zinger burger, a popular chicken burger in Malaysia. “We are confident that this product would be a hit among teens and young working adults who are always on the lookout for something simple yet satisfying to eat,” she added.
|Duc Viet operating at full capacity as demand grows|
[07 March 2014] Duc Viet Food, one of the biggest food processors in Vietnam, is operating at full capacity as demand for convenient food grows. 'More than 90% of our products are sausages and we have reached our full capacity of 25 tonnes per day,' Andreas Campioni, International Marketing Director told Asian Agribiz. Established in 2000 with only seven employees, the company has become one of the top three meat producers in Vietnam. Sources revealed to Asian Agribiz that Vissan, CP, and Duc Viet account for about 80% of the market share in Vietnam. Andreas Campioni added that Duc Viet's sausages account for about 30% of the Vietnam market, predominantly in northern Vietnam. He said the company has been focusing on mid-range products, catering to customers not only in big cities but also in local provinces.
|Thai pork price stays high as disease cuts supply |
[07 March 2014] Pork price in Thailand remains high despite falling demand due to lower expenditure on food. Pork in fresh markets is retailing at around USD 4.02-4.18/kg while the recommended price set by the Department of Internal Trade is USD 3.59-3.84/kg. Kiddivong Sombuntham, Secretary-General of the Thai Swine Raisers Association of Thailand, told Asian Agribiz that the PED and PRRS epidemics combined have slashed pig production by around 20%. This has reduced supply to around 1 million head per month from around 1.2-1.3 million normally. “I have surveyed the market and found that buying demand of pork and other food has declined by around 10-15%,” Mr Kiddivong said. Farm gate pig price is steady around USD 2.17-2.20/kg. Mr Kiddivong expects supply to recover in the third quarter.
|CP Pokphand revenue up but profit drops|
[07 March 2014] Revenue for CP Pokphand Co Ltd, the Hong Kong-based affiliate of CPF, grew 9.2% in 2013 to USD 5,414 million despite what directors describe as a “challenging year,” The economic slowdown, disease outbreak and food safety incidents affected profits which dropped by 8.8% to USD 186 million. CPP's directors are cautiously optimistic about 2014 believing that China’s emphasis on agricultural development will drive the commercialisation of agriculture, which in turn will stimulate demand for commercial feed and in Vietnam, if meat prices continue to recover, performance should improve.
|Indonesia may become Australia’s third biggest beef-export market|
[07 March 2014] “Indonesia has the potential to be Australian beef’s new Korea,” assessed Dr John Ackerman, Regional Manager for Indonesia of Meat and Livestock Australia. He said Indonesia’s economy is growing strongly, consumer confidence is on a high and demand for beef is soaring in all sectors, particularly the restaurant trade. “These factors will help Indonesia climb to become Australia’s third biggest beef-export market, pushing out Korea, where exports have been sluggish for some time.”
|India develops SPF black tiger shrimp|
[07 March 2014] Black tiger shrimp, a variety from India that once dominated the Asian aquaculture market, is getting a new lease of life. The Rajiv Gandhi Centre for Aquaculture (RGCA), a part of the Marine Products Export Development Authority (MPEDA), has set up a nucleus breeding centre for this species in the Andamans. Project Director of RGCA, Thampi Samraj said with the nucleus breeding centre in the Andamans, the RGCA is in the process of domesticating black tiger shrimp with specific pathogen free (SPF) specimens. “Mass production would be undertaken here and stock distributed to hatcheries across the country. The commissioning of the multiplication centre at Kanyakumari in South India, would facilitate the production and supply of SPF black tiger shrimp broodstock, resulting in the production of nearly 100,000 tonnes of black tiger shrimp. This would in turn yield nearly USD 1 billion,” he explained.
|Indonesia’s fish industry ready for AEC|
[06 March 2014] Indonesia’s Ministry of Fisheries and Marine Affairs is confident that its fishery and aquaculture sector can be competitive in the Asean Economic Community. “Indonesia’s fish exports are increasing and the national consumption of fish reached 35.62 kg/capita last year. Besides, the quality of our fish and processed fish products are on par with other Asean countries,” Director General of Fish Processing and Marketing, Saut P Hutagalung revealed to Asian Agribiz. However, he continued that there are certain issues that must be resolved, especially logistics. “This year, with support from the private sector, we will improve the National Fish Logistics System. We will set up cold storage facilities in several fish producing areas. Last year we set up a 300-tonne cold storage in Kendari and a 400-tonne cold storage in Brondong.”
|Singapore farm yields high success rate with lactobacillus|
[07 March 2014] Singaporean breeder and broiler farm Kee Song Brothers Poultry is the first company in Southeast Asia to prove that chicken can be successfully reared on a large scale without using antibiotics. According to The Straits Times, to prove the success of the technology, the farm conducted a study from May to August last year and invited six international companies in the food, agricultural and pharmaceutical industries to take part in an experiment involving the breeding of 180,000 chickens in its Johor farm. Results of the study showed that chicken which were bred using its own strains of lactobacillus had a higher survival rate of 98-99% compared to chicken fed with antibiotics, which had a survival rate of 95%. The former were also less likely to suffer from diarrhoea.
|DSM Indonesia to expand product portfolio|
[06 March 2014] The animal nutrition and health division of DSM in Indonesia this year plans to add to its range of its enzyme and eubiotics products portfolio. Animal Nutrition & Health Manager Suaedi Sunanto told Asian Agribiz that this year the company will also venture into the animal health business with a product called Zoosol. Zoosol is a nutrition supplement in liquid form and is administered through drinking water. Meanwhile in the premix business, the company which is popularly known as quality vitamin premix supplier will expand its premix portfolio through the addition of organic trace minerals, base-mix and ruminant premix. “These additional premixes can help support optimum growth and increase immune response, fertility and yield quality,” he revealed.
|Vietnamese poultry sector holds growing potential|
[06 March 2014] Vietnam’s poultry meat production is growing rapidly, supported by strong domestic demand and export potential, revealed Rupert Claxton at the Gira Asia Meat Club meeting in Bangkok last week. He said although backyard production rules, rapid integration is now driving change in structure to commercial farming. Poultry meat consumption is growing rapidly too, although pigmeat is still favoured. Fast expanding modern QSR chains are driving growth in poultry consumption. Vietnam also holds the opportunity to export its poultry meat to south China. However, the bird flu remains a major threat to the industry while limitations in cold chain infrastructure are an obstacle to development.
|S. Khonkaen Foods expects sales to increase 15%|
[06 March 2014] S. Khonkaen Foods of Thailand reported a 9.4% growth in sales in 2013 with revenue reaching USD62.07 million, according to CEO Charoen Rujirasophon. The company, however, experienced a decline in net profit of 4% with profit last year totalling only USD 2.82 million due to the 21% increase in pork price. This boosted production cost as pork is the main raw material for S. Khonkaen products. In 2014, S. Khonkaen will follow its 'Asean Kitchen' strategy and export its products to AEC markets via fresh markets and also expand its QSR business. The company expects to achieve sale growth of 15% in 2014.
|Hyderabad to get modern slaughterhouses|
[06 March 2014] Hyderabad in India will receive four modern slaughterhouses in Amberpet, Ramnasthpur, Gowlipura and Chengicharla in April, and another one in New Boiguda by May. The city’s Commissioner Somesh Kumar said 70% of the population of the city consume meat and there are nearly 3,000 meat shops to cater to their needs - these include 960 mutton shops, 681 beef shops, 1,077 dressed chicken outlets and 241 other outlets which sell eggs, pork and fish. He added that the simultaneous modernisation of five slaughterhouses was at a cost of USD 11 million, including a rendering plant for solid waste treatment. Siraj Hussain from the Ministry of Food Processing Industries, meanwhile, urged private slaughterhouses to make use of the grants for modernisation.
|Meat traders in Dhaka protest slaughtering fee hike|
[06 March 2014] Meat traders in Dhaka, Bangladesh recently protested the hike in slaughtering fee by the Dhaka North City Corporation (DNCC) authorities. The traders claimed this will lead to a hike in meat prices. Secretary General of the Bangladesh Meat Traders Association Rabiul Alam said that last month the DNCC authorities increased the slaughtering fee from USD 0.65 to USD 1.04 for cattle, from USD 0.97 to USD 1.43 for buffalo, and from USD 0.06 to USD 0.26 for goat without any negotiation with the traders. “If DNCC improves their services, we have no objection to the increased service charge,” he said.
|Pig farms in Thailand to upscale |
[05 March 2014] Small scale at present, pig farming in Thailand will upsize in the future, Craige Allan told members of the Gira Asia Meat Club (GAMC) in Bangkok, Thailand last Friday. He told the meeting held in association with Asian Agribiz that commercial farms account for only 1.1% while 94% are household farms and around 30% of the national production is dominated by two large operators. Mr Allan said pig meat consumption in Thailand is growing although at a slower pace compared to poultry and domestic demand is largely satisfied by local production, with only a small amount of pork imported or exported. Thailand’s production increased to around 951,100 tonnes in 2013 from 853,700 tonnes in 2009. Foot-and-mouth disease (FMD) remains an obstacle to trade but the country is aiming for an FMD-free zone in the eastern region.
|ProPak Vietnam 2014 kicks off in Ho Chi Minh|
[05 March 2014] ProPak Vietnam, the 9th processing, filling and packaging exhibition and conference, started in Ho Chi Minh City yesterday and will run until March 6. German firms figure strongly at the show with more than 25 brands. "There are many small slaughterhouses in Vietnam, but not many big ones. We will have a good future here," Andreas Friedrich, Managing Director of Sulmaq Meat Systems Technologies told Asian Agribiz. He revealed that the company is closing on a major contract to provide a pig slaughter line in southern Vietnam. The food industry in Vietnam is targeted to grow about 5.1% per year. Vera Fritsche of VDMA, Germany's food processing and packaging machinery association, told Asian Agribiz that about 3.8 million tonnes of packaged food was consumed in Vietnam last year. Reports at the show revealed that Vietnam has about 4,200 food processing companies in Ho Chi Minh City, and another 2,800 in Hanoi.
|Novogen enters layer market in North Sumatera|
[05 March 2014] French based layer genetic company Novogen has entered the layer market in North Sumatera, the third largest egg producing province in Indonesia after East Java and West Java, through the shipment of 11,600 Novogen Brown PS DOCs to the province. Regional Sales & Technical Manager Suryo Suryanta told Asian Agribiz that the shipment was sent from Novogen’s layer breeding partner in East Java to PT Expravet Nasuba, a subsidiary of Mabar Group, which is the major layer producer in the province. “The shipment reflects our strategy to expand our business in the western region of Indonesia,” he explained. Mr Suryo said that besides Expravet Nasuba, two other breeding companies in the province have shown their interest to raise Novogen Brown. “So far Novogen Brown has shown good performance in East Java. And we believe this will be followed in North Sumatera,” he added.
|China launches campaign to fight bird flu|
[05 March 2014] China’s agricultural ministry plans to set up monitoring networks for the H7N9 bird flu virus across the country. The campaign will monitor wholesale markets, traditional agricultural markets and poultry farms. Bird flu has caused some USD 3.27 billion to the poultry industry in the first two months of the year. The ministry said the virus was capable of mutating into highly pathogenic strains, posing even bigger risks to the industry. It said the bulk of infected birds had been found in markets, with a smaller number of cases being found on poultry farms.
|BKPM expects Australia to invest more in cattle |
[05 March 2014] The Indonesian Investment Coordinating Board (BKPM) has highlighted a lack of investment in spelling out its expectations for joint ventures built around the Australian cattle industry. BKPM Deputy Chairman of Investment Promotion Himawan Hariyoga said Australia should view Indonesia as a processing and marketing base for its cattle and beef. He believes the two countries can use their competitive advantage to supply not just Indonesia’s domestic market but other ASEAN countries, too. “The opportunity is huge and yet the realised investment still small. We expect more investment from Australia, our main trading partner in the cattle business,” Mr Himawan said.
|Cargill India’s cattle feedmill to start in 2015|
[05 March 2014] Cargill India plans to commence production of its new USD 11.3 million cattle feedmill in Punjab within one year, according to Cargill India Chairman Siraj Chaudhry. The plant which occupies 8.5 acres of land will produce about 120,000 tonnes of cattle feed annually and cater to the growing need for quality feed by dairy farmers in Punjab and neighbouring states. Punjab Deputy Chief Minister Sukhbir Singh Badal commented that Cargill India’s investment in Punjab will help make the state a ‘Dairy Hub’ in India. “Cargill India will provide training to more than 20,000 farmers in Punjab on dairy farming, farm management and animal nutrition,” Mr Badal said.
|Strong poultry consumption growth in Asia |
[04 March 2014] In Asia, consumption of poultry has progressed more rapidly than other meats, the Gira Asia Meat Club (GAMC) revealed at its meeting in Bangkok, Thailand last Friday. Consumption in China, for example, is set to strongly increase in 2014 in line with its production recovery and remains above the EU and the rest of Asia, according to Rupert Claxton. In Vietnam, consumption has also grown quickly, thanks to low relative prices. However, poultry meat in Vietnam remains sold through wet markets although modern retail is gaining a foothold, mainly in the south of the country. In Indonesia, consumption is expected to escalate sharply in mid-2014 as election campaigning is expected to boost consumption. Elsewhere, Japan, as the largest global poultry importer, will make a recovery in imports after a decline in 2013. In the Philippines, domestic production is expected to grow alongside demand, while imports are also likely to grow steadily.
|Beef imports continue to increase in Asia |
[04 March 2014] At the GAMC meeting held in association with Asian Agribiz, Rupert Claxton said that in 2014 demand for beef imports in Asia will continue growing as local production in many countries is still low and cannot satisfy domestic consumption. Although larger production growth is expected in India, China and Pakistan, imports will continue to increase in several markets including in South Korea, Taiwan and China. In the case of China, where the sector is led by smallholder beef farmers, Rich Herzfelder said the country is on a long ride to self-sufficiency and its structural deficit means beef imports will continue to rise. Mr Claxton pointed out that there are re-exports of beef from Vietnam to China and the latter's consumption is approaching EU levels. India, meanwhile, will continue high export growth while Pakistan will see growing exports too but at a smaller pace, said Mr Claxton.
|Viet poultry price contracts over H5N1 fears|
[04 March 2014] H5N1 outbreaks in Vietnam have raised food safety concerns leading to a drop in poultry consumption and price. According to the Ministry of Agriculture, the poultry price has reduced by 20% while DOC prices decrease by 70%. "I have two children and I am worried about food safety. I stopped buying poultry two weeks ago. We now eat pork, beef or seafood," Dinh Thi Thao, 32, an accountant told Asian Agribiz at a local wet market in Hanoi, Vietnam. This stance among consumers has hurt many local poultry farmers who maintain high biosecurity standards to keep their birds healthy. "I can't sell my birds because the market demand is so low. Consumers don't know where to find healthy birds, so they feel it is better to reduce poultry consumption," Nguyen Van Ky, a poultry farmer in Hanoi told Asian Agribiz.
|China’s appetite for mutton grows|
[04 March 2014] China imported 259,000 tonnes of mutton last years, more than double the import from the year before. Ding Shengjun, a senior researcher at the Academy of State Administration of Grain, said Chinese consumers have taken to lamb, and the meat can be found at hot pot, halal and other restaurants across the country. “Urbanisation is another key factor that has shifted Chinese diets from containing mostly grains to one that includes more meat and dairy products,” Mr Ding said. Consumers, he said, are “not only interested in buying lamb chunks as before” but are purchasing different parts of the sheep, a trend that has surged in recent years. Chinese citizens consumed an average of 16.5kg of mutton per capita last year, compared with only 12kg in 2008. The Beijing-based China Meat Association predicts that this figure will reach 28kg between 2017 and 2022.
|Bangladesh wants Russia to resume shrimp imports|
[04 March 2014] Bangladesh has requested that Russia resume shrimp imports, which were halted last year over quality issues. Fisheries and Livestock Minister Sayedul Haque made the request while meeting Russian Ambassador Alexander Nikolaev. “Bangladesh will write to the federation and will also request that they send a team to Bangladesh to review our standards,” Mr Haque said. Bangladesh exported a total of 7,651 tonnes of shrimp to Russia from 2010-14 after Russia signed an agreement in December 2009. However, Russia suspended imports in October last year after a mismatch of bacterial standards between the two countries raised health concerns.
|Fonterra UHT milk plant to begin operations in March|
[04 March 2014] Fonterra’s USD 99 million Waitoa UHT plant in New Zealand is on track to produce its first batches of Asia-destined Anchor brand long-life milk and cream next month. Once fully operational Fonterra claims that the plant’s five UHT processing lines will produce 95 million litre of Anchor brand UHT white milk and UHT cream each year, the equivalent of “24,000 UHT packs per hour, seven packs per second”. Global demand for UHT is growing by around 3.3% per year and with around 20% of the world’s population living without access to electricity UHT is a safe option which does not require refrigeration. Fonterra UHT Operations Manager Donald Lumsden said the company’s investment leaves it well-positioned to meet growing Asian demand for shelf stable dairy products.
|Indonesia’s aquafeed consumption reaches 1.38mt |
[03 March 2014] Chairman of the Aquafeed Division of the Indonesian Feed Millers Association, Denny Indrajaya told Asian Agribiz that total aquafeed consumption in the country in 2013 reached 1.38 million tonnes. Of the figure, shrimp and fish feed consumption were 291,000 tonnes and 1.1 million tonnes, respectively. “Based on the increasing demand for shrimp and fish in the domestic and overseas markets, we have projected that in 2014 and 2015 the total consumption could reach 1.519 million tonnes and 1.671 million tonnes, respectively,” Mr Denny revealed.
|Tulip expands facility to boost pork exports to China|
[03 March 2014] UK’s largest producer of pork Tulip Ltd is investing USD 25 million in its operations in a move to increase its pork sales to China and Hong Kong by 25% this year. The company hopes to increase pigmeat exports to China to 15,000 tonnes this year from 12,000 last year. The UK arm of Danish Crown started exporting pork products to China in 2012 following a trade deal between the UK and China. China offers potential for “enormous future growth”, said Tulip CEO Chris Thomas. At the end of 2013 UK’s Department of Environment, Food and Rural Affairs said it has secured a trade deal with China for USD 75 million worth of pig semen a year. Tulip said it was now close to adding pig trotters to its export portfolio. It currently exports a range of 16 products including tongues, heads and tailbones.
|Henan Shuanghui's 2013 net profits up 34%|
[03 March 2014] China’s largest meat processor Henan Shuanghui Investment and Development Co Ltd said its 2013 net profit rose 33.7%, boding well for an initial public offering by its parent WH Group Ltd which is expected to be the biggest Hong Kong listing since 2010, said a report from Reuters. Annual net profit rose to USD 633.68 million due to lower input costs which boosted margins. China is the world’s biggest pork consumer and estimated per capita spending on meat, poultry and processed products more than doubled in six years, to USD 190 in 2012. Parent WH Group, formerly known as Shuanghui International Holdings Ltd, last year acquired US pork producer Smithfield Foods Inc, which had sales of USD 13.2 billion in the fiscal year ended April 2013.
|Jollibee to expand into UAE|
[03 March 2014] Philippine fast food giant Jollibee Foods Corp (JFC) is expanding its reach into the Middle East by putting up stores in the United Arab Emirates (UAE). Its wholly-owned subsidiary Golden Plate Pte Ltd (GPPL) signed a joint venture agreement with Golden Crown Food LLC (GCFL) to put up and operate its flagship Jollibee restaurants in the country. GCFL will own 51% of the JV, with GPPL owning 49%, however both companies will equally share control and management. Initial funding for the JV is pegged at USD 80,000. Currently JFC has 19 branches of its flagship Jollibee brand in the Middle East.
|Pakistan expects UAE poultry ban lifted|
[03 March 2014] Pakistan expects the ban on poultry exports from the country by the UAE to be lifted shortly since it will enhance the current trade volume of food products by up to USD 200 million per annum, according to Pakistan’s Ambassador to the UAE Asif Durrani. The ban on poultry exports was placed in 2005 and since then Pakistani exporters have almost lost export opportunities to the tune of more than half a billion dollars. “It’s a matter of pride and pleasure to convey that persistent efforts of the Pakistan mission have been successful and the ban on exports of Pakistani poultry to the UAE will be lifted after the inspection of poultry infrastructure in Pakistan by a UAE team of experts,” Mr Durrani said.
|China is Malaysia’s top market for halal foods|
[03 March 2014] China has emerged as the top export market for Malaysian halal foods. “China’s halal market is worth USD 2 billion and is growing exponentially,” said Halal Industry Development Corporation Chief Executive Dato Seri Kamil Bidin, who added that the food safety issues in China over the years has created an opportunity for producers of halal foods. “Halal is seen as an assurance of safety and quality in China,” he said. According to Mr Kamil the majority of the halal foods being exported are in the confectionary and snacks segment. “Now when people see the halal certification label from Malaysia they know that it has gone through stringent quality and safety checks.”
Gira Asia Meat Club
[28 February 2014]
Reports by Nitsara Thongrung and Conny Pereira
Price stability in 2014
World meat trade (meat + live) is expected to be positive this year especially for China. However, any change in government policies in China could affect global prices said Richard Brown, at the Gira Asia Meat Club (GAMC) meeting in Bangkok, Thailand yesterday. He added that while 2013 was seen as a 'year of caution' due to high grain prices and a soft economy, the industry will see stability this year as feed costs have dropped. Growth and demand between species and regions is expected to appreciate. The meeting which ends today, is held in association with Asian Agribiz, in Bangkok, Thailand and offers an intense and in-depth analysis of Asia's meat markets.
Pig production up in Vietnam
In Vietnam, domestic demand for pig meat is strong and huge gains have been realised in moving from backyard to commercial farming, Rupert Claxton told the audience at the GAMC. However, little integration is seen between farming and slaughtering. Production in Vietnam continues to grow rapidly despite the persistence of the PRRS disease so it has the potential to supply pigmeat to Southern China while import opportunities are limited due to ample local supply. Consumption patterns show that people still prefer warm meat rather than chilled as the country still has a limited cold chain system though modern retail is gaining a foothold mainly in the southern part of the country.
China moving to modern pigmeat production
In China, there is a progressive removal of backyard production of pork in favour of commercial production and that it is seen in the consolidation of slaughterhouses into larger facilities, Rich Herzfelder told the audience at the GAMC. In his presentation, Rich picked out the deal between Shineway Group and Smithfield and the new company WH Group. It is expected that China’s pigmeat production and the use of processing equipment will continue to grow as farms modernise and the sector consolidates. The country is looking to increase its self-sufficiency in pork which is the main meat consumed here. Meanwhile, as the country moves from primary to a modern economy, consumption of offal may fade among the younger generation in the longer term.
China's demand for sheepmeat grows
In the last 18 months, China displayed a surprising growth of 25% in the global trade for sheepmeat. Imports in 2013 amounted to 309,000 tonnes, mainly from Australia and New Zealand. This represented only 6% of total consumption in the country. This growth was fuelled by the increasing popularity of Mongolian hot-pot restaurants. Local governments are now beginning to support investments in this sector, which is showing signs of modernisation with sheep being fed concentrated feed.
Mutton more popular in India
In India, mutton is more popular than sheepmeat. The sector is growing because of higher local demand. However, this growth is being led primarily by the backyard sector which retails the meat via informal channels. While it is a more culturally acceptable meat, both its production and price have increased faster than other meats. Tagged as the most expensive meat in India, consumption of sheepmeat stands at 0.237/kg/person while mutton or goatmeat is at 0.525/kg/person annually.
|S. Khonkaen promotes “Asean Kitchen” ahead of AEC |
[28 February 2014] S. Khonkaen is following its strategy to become an “Asean Kitchen” in preparation for the Asean Economic Community that will be realized in 2015. Under the plan, the company is accelerating appointments of distributors for its local food products, processed seafood products and meat snack in markets including Laos, Cambodia and Myanmar. CEO Charoen Rujirasophon said under the Asean Kitchen strategy, S. Khonkaen will rely on manufacturing facilities based in Thailand and let distributors in respective markets deliver the products to consumers via retail channels including wet markets. The company appointed distributors in Laos and Cambodia in the third quarter of 2013 and in Myanmar in the fourth quarter. S. Khoenkaen’s products include Chinese-style sausage, Vietnamese-style sausage, fermented sausage, shrimp ball, fish ball and pork-meat crispy snack under the brand “Entree”.
|Pig and pork prices remains down in China|
[28 February 2014] Pig and pork prices continue to fall in China, with pig prices in early February down 19.4% compared to the same period last year, while pork prices are down 13.1% in the same period, a report by GlobalMeatnews.com said. The low prices have been a boon for the country’s meat processors, who have lowered their purchase prices for pigs. Some industry predictions see prices remaining low at least through the first six months of this year. Meanwhile, things seem even gloomier for pig and pork producers considering the long-term outlook for the country’s pork consumption. A report by China’s State Council suggests that the country’s overall consumption of pork by 2020, when the country’s population is expected to reach 1.35 billion, is likely to be more than halved to 24.6 million tonnes from 54.9 million tonnes last year.
|Singapore food firms step up on r&d to cater to growing GCC market|
[28 February 2014] Singapore food companies are investing heavily in research and development, improved packaging and modern food processing technologies to cater to increasing regional demand, said Singapore Food Manufacturers’ Association (SFMA) Deputy President Jimmy Soh. “Coupled with strict industry standards, Singapore companies have been able to develop food products that are more innovative, healthier and that meet halal standards in the Gulf Cooperation Council (GCC).” He was speaking at Gulfood 2014 where a record 48 Singapore food and beverage companies exhibited at. More than 54 new products will be launched at the Singapore Pavilion this year, reflecting the focus by Singapore food and beverage manufacturers to develop Asian food products targeted at time-pressed, health-conscious GCC consumers.
|GAMC convenes for in-depth analysis of Asia's meat markets|
[27 February 2014] The Gira Asia Meat Club (GAMC) which was launched in 2013 in association with Asian Agribiz, will convene today in Bangkok, Thailand, for two days of intense and in-depth analysis of Asia's meat markets. Club members, who represent major producers and suppliers to the industry, will be privy to the extent of development in the various sectors of the meat trade according to species and country as well as the trends in each market. For more information on the club, contact Rex Holyoake (firstname.lastname@example.org).
|Registration for Pig Feed Quality Conference close today|
[27 February 2014] Registrations for Asian Agribiz’s Pig Feed Quality Conference close today. The conference which will run from March 13-14 at the Edsa Shangri-La in Manila is aimed at helping Asian pig producers unlock the potential of nutrients and to evaluate the quality of their feed. Apart from the main presentations that will centre on feeding grower pigs, there will be additional sessions that will tackle pig feed Ingredients, feed quality and processing. Enquiries can be directed to Rex Holyoake (email@example.com) or Omthong Tjoa (firstname.lastname@example.org). View the conference brochure here.
|Vietnam reports more H5N1 outbreaks|
[27 February 2014] Vietnam has reported H5N1 outbreaks in another ten provinces, raising the number of infected provinces to 21. More than 60,000 birds have been culled due to the virus. The bird flu has caused concerns among poultry consumers, forcing the poultry price to decline across the country. Experts worry that the disease will discourage poultry farmers and the country will face a poultry shortage in the long-term. "When poultry farmers abandon their farm, we will have to import poultry to meet local demand," Dam Xuan Thanh, Deputy Head of Animal Health Department at the Ministry of Agriculture and Rural Development told Asian Agribiz.
|Alltech celebrates 20 years in China. |
[27 February 2014] Hundreds of participants and experts came together in Beijing on Tuesday to celebrate Alltech's 20 years of operation in China. "Chinese agriculture of 20 years ago would almost be unrecognizable compared to today's modern industry,” Mark Lyons, Alltech Vice President told Asian Agribiz. "Exciting technological and environmental advancements have revolutionised Alltech," he said. US-based Alltech Inc. is one of the world's largest animal health and nutrition companies with annual revenue approaching USD 1 billion. The company targets USD 4 billion in sales revenue by 2016.
|CPF plans USD1.53b investment budget |
[27 February 2014] CPF plans to invest a total of around USD1.53 billion over the next five years (2014-2018), or around USD 306.8 million a year, with more than 50% of the planned budget allocated to expanding businesses overseas in line with its strategy to establish an integrated business and sustainable growth, President and CEO Adirek Sripratak told a press conference yesterday. The planned budget does not include M&A's, which CPF is considering in foreign countries in addition to some acquisitions last year including the acquisition of shares in Top Foods and a pig business in Russia. After a plummeting profit in 2013, Mr Adirek said that CPF will be back on track this year with profit forecast to rise to around USD 306.8 million from USD 217.5 million last year due to the slump in the shrimp business from the Early Mortality Syndrome (EMS). He expects sales to grow around 10% in 2014 to reach USD 13.81 billion.
|TUF's 2013 profits drops due to raw material crisis|
[27 February 2014] Thai Union Frozen Products Plc (TUF) reported a net profit of USD 86.12 million in 2013, plummeting about 40% from USD 141.50 million from the year earlier, due to the high price of tuna, the main raw material for TUF, suspension of orders from buyers and loss from its shrimp export business in the wake of the Early Mortality Syndrome (EMS), Kraisorn Chansiri, TUF’s Director, said in a filing to the Stock Exchange of Thailand. The high tuna price resulted in a demand decline and OEM customers then reduced their orders. Meanwhile the high price of shrimp prompted by EMS caused losses to TUF's business in the first half of last year. However, Teerapong Chansiri, TUF’s President, pointed out that recovery was in view, revealing that sales in the fourth quarter of 2013 grew 13% in dollar terms, reflecting the strong fundamentals of TUF's business.
|Oversupply likely to hound Philippine poultry industry|
[26 February 2014] Unless industry stakeholders put in the necessary interventions, Philippine poultry farmers might be facing an oversupply situation that could pull down the farm price of chicken, United Broiler Raisers Association (UBRA) President Jose Elias Inciong told Asian Agribiz. Although farm price of broilers have gone up since hitting a low of USD 1/kg last year, he said prices will remain volatile this year. Last week farm price hit about USD 1.90/kg, but added that prices will likely be down by the weekend. Mr Inciong noted that with the broiler industry being open and unregulated, new players with the mistaken notion that broiler raising is an easy business have entered the industry and this could lead to a further glut.
|After EMS, CPF eyes higher profits |
[26 February 2014] Thailand's CPF has reported a net profit of USD 217.50 million for its operations in 2013, sharply lower than a net profit of USD 577.98 million the year earlier. This is due to losses sustained in its shrimp business as the Early Mortality Syndrome disease (EMS) slashed supply. However, sales in 2013 grew 9% from the earlier year to USD 11.98 billion, thanks mainly to growth of business overseas and the domestic livestock business and rising domestic pork prices in the last quarter of 2013 coupled with lower cost of raw materials in inventory. Technical analysts at Krungsri Securities forecast CPF to see an 88% growth in profit in 2014 following recovery in the shrimp business, higher price of chicken and larger exports since Japan lifted the ban on raw chicken meat from Thailand, and the continued positive trend of businesses in foreign countries especially in Turkey. Sales in 2014 are forecast to escalate 11% to reach USD 13.22 billion.
|Thai pig farmers urge inspection on retail pork price |
[26 February 2014] Pig farmers in Thailand are asking the Internal Trade Department, a government core body overseeing prices of consumer goods, to inspect the retail price of pork cuts in the fresh market as the rates are unusually high compared to farm gate prices of live pigs. The Swine Farmers Association of Thailand confirmed that the farm gate price of live pigs at USD 2.31 while pork price is around USD 4.61. A director at the association said based on that price, it’s assumed that farm gate pig should have risen to USD 2.46. This means pork merchants might be taking advantage of consumers and this might negatively impact the pig farming industry as consumers might lower consumption and prices may decline and farmers might suffer losses at the end, he said.
|Avanti Feeds to commission new feedmill|
[26 February 2014] Avanti Feeds, one of the largest shrimp and fish feed producers in India, plans to put its new 85,000 tonne/year feedmill in Andhra Pradesh into operation. “It will become operational starting from next month,” said Managing Director Indra Kumar. “Improving industry dynamics and growing Indian consumption have given confidence to Indian shrimp and fish farmers, which has also boosted our feed business,” he said. Avanti Feeds has been operating two feedmills in Gujarat and Andhra Pradesh with a total production capacity of 140,000 tonnes/year which is close to 60% of India’s total capacity.
|Cattle semen bank planned in Punjab|
[26 February 2014] Deputy Chief Minister Sukhbir Singh Badal of Punjab, India said that a semen bank will be set up in Nabha city with the intent to improve the dairy cattle breed. “Punjab is coming up with a world class semen bank at Nabha at a cost of around USD 21 million and land for this purpose has already been earmarked,” Mr Badal said. He hopes the facility can help increase the milk yield of small farmers.
|UK hopes to increase sales of offal products to China|
[25 February 2014] China and Hong Kong combined was the biggest single pork export market for the UK last year. Both countries bought a total of 57,000 tonnes of pork of which about 27% was offal. While the country’s total offal exports fell by 7,411 tonnes to 41,123 tonnes, China and Hong Kong recorded increases in imports. The country is looking to export more meat to China particularly cuts that are not commonly sold in British supermarkets. Last year a trade visit to China saw British meat producers putting chicken feet on the plate together with other types of British meat. This year Britain hopes to export pigs’ feet and stomach, among other types of offal products. The country hopes that the value of pork exports to China, already worth USD 40 million, will increase 10-fold in the next five years, reported cctv.com.
|India’s poultry feed demand to rise in 2014|
[25 February 2014] India’s rising appetite for poultry products will boost domestic demand for corn and soy meal this year by about 9% to 12 million tonnes (combined), traders said. The higher local feed demand could further reduce overseas sales that are already under pressure from cheaper grains from Latin America. Corn will make up most of the feed demand growth because supplies are ample and prices cheaper. Demand for soy meal, meanwhile, may not rise as prices surged after late rains hit the soybean crop. “Consumption of feeds, mainly corn is expected to increase because demand for poultry products are likely to rise by at least 6% this year,” said Sanjeev Chintawar, Business Manager of the National Egg Coordination Committee.
|Denmark bans religious slaughter of animals |
[25 February 2014] Denmark’s government has brought in a ban on the religious slaughter of animals for the production of halal and kosher meat. Effective last week the ban is in line with European regulations that call for animals to be stunned before they are slaughtered. For meat to be considered kosher under Jewish law or halal under Islamic law the animal must be conscious when killed. The new regulation, in line with other countries in Europe, states that animals must be stunned before being killed. Non-profit group Danish Halal has condemned the ban. “It is a procedure that is done under the guise of animal welfare, despite the fact that many scientific studies show that the animal suffers less with a properly performed ritual slaughter than when it gets a blow to the head with a nail gun,” the group said.
|QSR chains expand in Indonesia |
[25 February 2014] Quick service restaurant (QSR) chains represent a lucrative market for food producers in Indonesia, according to Cafe and Restaurant Association of Indonesia Chairman Eddy Sutanto. It is because the sector recorded the fastest growth compared to other type of restaurants. “We now have over 1000 outlets registered with our association and nearly 1,000 of them are McDonald’s, Pizza Hut and KFC.” Mr Eddy said that food manufacturers expanded their business portfolios by operating restaurant chains to tap deeper into the promising food market, with a total annual value of more than USD 42.5 billion. “And the expansion will continue in the coming years since the number of people in the nation’s consumer class will double to at least 90 million people by 2030,” he said, adding that major consumer spending would be on food.
|Government intervention in poultry sector comes to an end|
[25 February 2014] Pakistan’s poultry industry this year is expected to see growth since the government’s market intervention, which has been counterproductive for the poultry sector, has come to an end, according to Raza Mehmood Khursand, Punjab Chairman of the Pakistan Poultry Association (PPA). “In 2013, a number of farms closed down because of losses, following interventions by the government which adversely impacted the revival of closed farms. Due to this, the total production of broilers in Pakistan through intensive poultry production declined by 20% in 2013 to 816 million birds against 1.2 billion of 2012,” he explained. PPA Former Chairman Abdul Basit observed that the end of market intervention by the government will help the poultry sector see new growth trends.
|More than 10,000 punished for unsafe food in China|
[25 February 2014] China announced that it has punished more than 10,000 people in the last three years for production, and sale of substandard and poisonous food. According to statistics from the Chinese Supreme People’s Procuratorate, prosecutors also approved the arrest of some 7000 people linked to the manufacturing and marketing of food products. Vice Director of the investigative body said illegal workshops, factories and markets were the major sources of problematic food. Suspects were mainly self-employed business people, farmers or unemployed, he added.
|Conference to give pig producers better grip on nutrition|
[24 February 2014] Feed and nutrition is a major concern for pig producers around the world and especially in Asia. Volatile prices and inconsistent quality of raw materials are just some of the factors that must be addressed. At the Asian Agribiz Pig Feed Quality Conference that will be held from March 13-14, 2014 at the Edsa Shangri-La in Manila, Philippines, producers and nutritionists will learn how to unlock the potential of nutrients from a variety of raw materials and produce quality feed that will meet the needs of today’s pigs. A special session on grower performance will examine the fascinating question of why grower diets of the same nutrient spec don’t always give the same performance. Registration for the conference will close on February 27, 2014. Click here for more information.
|Cold weather affects Vietnam’s shrimp production|
[24 February 2014] Cold weather in southern Vietnam has affected thousands of hectares of shrimp production, as farmers have to delay their new season of cultivation. “The unfavourable weather has led to diseases and slower shrimp growth,” Pham Minh Tuyen, Deputy Director of Tra Vinh Agriculture Department told Asian Agribiz. He said 25% of the province’s shrimp farms have been affected by the bad weather, which makes shrimp susceptible to the white spot virus. The government has urged farmers to delay the start of their farming to minimize the effects. Tra Vinh plans to cultivate 1.6 billion black tiger shrimp and 2.1 billion white leg shrimp, targeting nearly 28,000 tonnes. Vietnam exported more than USD 3 billion worth of shrimp last year.
|Bird flu outbreak in East Java|
[24 February 2014] A bird-flu outbreak has hit Indonesia's Trenggalek regency in East Java where thousands of birds were found dead in Durenan district. “Laboratory test results on 20 samples of bird carcasses confirm they were bird-flu H5N1 virus positive,” said Head of Trenggalek Animal Health Centre Budi Satriawan. Following the test results, the centre issued a recommendation letter ordering a mass cull and destruction of all poultry on the affected farm. “The rules are clear. Birds that are still alive must be killed and burned,” Mr Budi said. Poultry within a 200-meter radius of the outbreak location will be vaccinated and disinfectant would be sprayed on all farms, poultry and otherwise.
|Hong Kong bans eggs from Vietnam|
[24 February 2014] Hong Kong has banned the import of salted eggs from Vietnam due to H5N1 outbreaks. “The import of salted duck eggs from four provinces (Lao Cai, Long An, Phu Yen and Dak Lak), will be banned with immediate effect for the protection of Hong Kong’s public and animal health,” Hong Kong authorities said in a press release. The same ban had been imposed earlier on another eight provinces due to avian influenza flu concerns.
|Nutreco plans for new plants in Vietnam and Indonesia|
[24 February 2014] Nutreco is expanding its presence in Asia with two new state-of-the-art plants in Vietnam and Indonesia and a remodel of its Chinese plant in Xiangtan (Hunan). The facility in Vietnam will be operational in the second quarter of 2014 and the plants in Indonesia and China in the first quarter of 2015. These initiatives confirm the company’s strategy of expanding its presence in Asia due to sound, long term growth prospects in the region. Both plants will produce premixes and farm minerals and in Vietnam also young animal feed concentrates will be produced.
|FAO rules out human-to-animal transmission of H7N9|
[24 February 2014] FAO says there is no evidence that patients infected with influenza A (H7N9), a low pathogenic virus in poultry, can transmit the virus to animals, including birds. FAO referred to the first human case of A(H7N9) outside China, which was recently detected in Malaysia. The patient originally from Guangdong Province in China, where she is thought to have contracted the infection, was visiting Malaysia as a tourist and has now been hospitalized there. Guangdong is one of the Chinese provinces most affected by the A(H7N9) virus in 2014. “Humans that become ill with influenza A(H7N9) constitute no threat to poultry populations,” underlined FAO Chief Veterinary Officer Juan Lubroth. “In fact, we have no evidence that affected people could transmit the virus to other species, including birds. The highest risk of virus introduction is uncontrolled live poultry trade between affected and unaffected areas,” he said.
|CJ Feed Indonesia to grow sales by 30%|
[21 February 2014] CJ Feed Indonesia's sales in 2013 grew by 15% over the previous year. With the addition of two new feedmills in North Sumatera and Lampung which were put into operation at the end of last year, the company is confident to grow its sales this year by 30%. General Manager of Sales & Marketing of CJ Superfeed Tevi Melviana told Asian Agribiz that several strategies have been set to achieve the target. “One of the strategies is that we will launch a new feed called Master Chef series for pullets.” He added that this year the company will start the construction of two new feedmills in Central Java which will be located in Semarang and Brebes. “The two new feedmills in Central Java are targeted to be commissioned in the first semester of 2015. Each will have a capacity of 20,000 tonnes/month.”
|Malaysia steps up surveillance for bird flu virus|
[21 February 2014] Malaysia’s H7N9 case of a 67-year-old female tourist from China has been deemed an isolated human case. Nevertheless, the Department of Veterinary Science has stepped up surveillance at all entry points and poultry farms nationwide. “All state veterinary services departments are in a state of alert,” Deputy Director General Dato’ Dr Azmie Zakaria told Asian Agribiz. “So far the pre-emptive measures which were put in place since 2007 have been effective. To date, the country has been free from the disease,” he said. The department has been monitoring all high risk premises such as entry points, wet markets, bird sanctuaries, bird pet shops and wild birds for avian influenza viruses including the H7N9 cases. Until February 14, 64,000 samples were taken from the above categories and have been tested negative for the disease. New imports of live birds and frozen chicken cuts from Asia, including China, South Africa and Mexico have been halted.
|Sumitomo's acquisition of Emerald Grain welcomed|
[21 February 2014] One of the world’s largest international trading companies Sumitomo Corp has gained full ownership of Australian Bulk grain handler Emerald Grain after acquiring Emerald Agribusiness Group, its joint partner since 2010, for about USD 120 million. Emerald is Australia’s fifth biggest grain trader, with a 10% share of the nation’s grain trade and exporting 75% of its throughput to 35 countries. “As a 100% subsidiary of Sumitomo Corp, the company will be able to fund future growth and expansion and compete more effectively in an Australian and Asian grain market that is now heavily influenced by global companies," Emerald Grain Chairman Alan Winney said. He said it will give Emerald Grain access to the capital needed to help fund expansion in grain accumulation capability and processing assets. It would also allow Emerald to leverage Sumitomo's business assets and networks.
|Thailand in talks with Iran for raw exports |
[21 February 2014] Thailand is working towards convincing Iran to open its market for Thai raw chicken. Nantawan Sakuntanak, Director General of the Department of International Trade Promotion has led a Thai delegation comprising representatives from government and private companies on a visit to Iran recently where both nations discussed ways to enlarge bilateral trade and investment. “Thailand welcomed Iranian delegates to inspect chicken processing plants for export,” Ms Nantawan said. Thailand is trying to open the Iran market for 'halal' raw chicken. Iran imports around 50,000 tonnes of halal chicken annually.
|Processed poultry market revenue to reach USD 251 million by 2018|
[21 February 2014] The processed poultry meat market revenue is estimated to reach USD 251 billion by 2018 from USD 1.8 million in 2012 with a compound annual growth rate (CAGR) of 5.9%, while the processed poultry equipment market was valued at USD 2.7 billion in 2012, growing at a CAGR of 6.8% from 2013 to 2018. The industry has grown exponentially in the last decade and this growth is expected to continue. R&D activities carried out across all regions, especially in Europe, to develop low-cost production techniques are expected to add pace to the growth rate of the poultry meat processing equipment market.
|H5N1 continues to spread in Vietnam|
[20 February 2014] H5N1 outbreaks have been reported in 16 provinces in Vietnam and government agencies are stepping up measures to control the virus. “The outbreaks are increasing and we haven’t reached the peak yet. We need to exert more aggressive measures to control it,” Hoang Trung Hai, Deputy Prime Minister told Asian Agribiz. The virus has forced the culling 66,000 birds. H5N1 has also killed two people in Vietnam so far this year. The country said it expects to cull 4 million birds this year due to the bird flu. “We have 30 million doses of poultry vaccine in stock. We propose that the Government buy another 60 million doses,” Pham Van Dong, head of the Animal Health Department told Asian Agribiz. Meanwhile, Quang Ninh has become the first province in the nation to ban the trading of live poultry in Ha Long city, a major domestic and international tourism hub in the northern region.
|Chinese tourist identified with H7N9 in Malaysia|
[20 February 2014] Malaysia has recorded its first H7N9 avian flu infection. It is the first case detected outside of China, alongside eight other newly confirmed cases—one in Hong Kong and seven more from the mainland. The 67-year-old woman is a tourist from Guangdong Province in China. She arrived in Malaysia on February 3 and is being treated at a hospital in Sabah. She is said to be in a stable condition. Prior to traveling to Malaysia on January 30, the patient was treated in China for symptoms of fever, cough, flu, fatigue and joint pain. Malaysia's Ministry of Health is conducting an investigation including contact tracing and is also coordinating information sharing with the Chinese Government.
|GFPT posts major turnaround in 2013; eyes 10% growth in 2014|
[20 February 2014] GFPT saw a major turnaround in 2013, with net profit sky rocketing by more than 500% to reach USD 46.26 million, from only around USD 7.1 million in 2012. Anan Sirimongkolkasem, Chairman of the Executive Committee said major factors driving the robust growth in profit was the higher exports of chicken meat, which grew 20.6% and an increase of 30.7% in sales of chicken sausages in the domestic market. In addition, higher domestic prices of chicken meat and parts, cooked chicken meat products, DOC and feed combined, contributed to a higher margin and huge jump in profit. An analyst at a brokerage house foresees GFPT to generate around 10% growth in sales in 2014, from around USD 514 million last year.
|Thai private sector eyes shrimp farming in Myanmar|
[20 February 2014] The Thai private sector has recorded its interest to invest in shrimp farming in Myanmar after local production contracted drastically due to the Early Mortality Syndrome (EMS) pandemic, said Niwat Suteemechaikul, Director-General of the Fisheries Department of Thailand. Mr Niwat led a delegation comprising government officials and private companies to Myanmar to discuss technical and economic cooperation in fisheries earlier this month. Myanmar’s private companies, meanwhile, want Thai companies to invest in joint ventures with local operators in fish processing manufacturing and also extend assistance to upgrade Myanmar’s fishery farming standard. Mr Niwat explained that investors need to submit a business plan to Myanmar’s Department of Fisheries for approval and authorised investors can rent land for farming for 30 years with options for renewal.
|Thailand announces restriction on fishing during spawning season|
[20 February 2014] Thailand’s Department of Fisheries has imposed a restriction on the use of some fishing equipment in the Gulf of Thailand during the spawning season from February 15 to May 15 this year. Director-General Niwat Suteemechaikul said the measure prohibiting the use of some specific trawls covers 26,400 km of fishing areas in the Gulf of Thailand, Prachuap Khiri Khan down to the southern province of Chumphon and Surat Thani; fisherman who violate the restriction will face a penalty. The measure is aimed at maintaining the fertility of marine resources.
|India’s Banas Dairy to set up new plant outside Gujarat|
[20 February 2014] Banaskantha District Cooperative Milk Producers Union Ltd (Banas Dairy), the largest member of the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), has said it will invest more than USD 48 million to establish its first milk processing plant outside Gujarat in Faridabad, Haryana, NCR (National Capital Region). The plant will manufacture products such as pouched milk, curd, buttermilk and ice-cream under the brand name of Amul, according to a GCMMF official. The plant will have a capacity to process 1 million litres of milk daily. This is the fourth plant in NCR for member unions of GCMMF. Banas Dairy procures milk from more than 350,000 milk producers in Banaskantha district.
|New pig virus identified|
[19 February 2014] A new pig virus called Swine Delta Coronavirus (SDCV), distinct from the porcine epidemic diarrhoea virus, has been identified in the US, a report by Reuters said. According to the Ohio Department of Agriculture, the virus is “closely related to a coronavirus detected in Hong Kong in 2012” and this is the first time the virus has been seen in the US. The clinical signs are similar to PEDv, and it also affects piglets and older pigs, but the mortality appears to be lower, said Yan Zhang of the Ohio Department of Agriculture’s Animal Disease Diagnostic Laboratory. However, Dr Zoilo Lapus of the Philippine College of Swine Practitioners told Asian Agribiz that presently, there are no reports of SDCV in Southeast Asia and in China.
|Sujaya Group inaugurates broiler GP farm, hatchery|
[19 February 2014] Indonesia's PT Satwa Borneo Jaya Breeding Farm (SBJ), a subsidiary of West Kalimantan based poultry integrator Sujaya Group, has begun operations of its SBJ broiler GP farm and hatchery located in Singkawang, West Kalimantan. Top management both from Sujaya Group and Hubbard attended the event. Operational Director of Poultry Division of Sujaya Group, Muhammad Taqwa told Asian Agribiz that from November 2012 to last year the company has imported a total of 24,000 hatching eggs of Hubbard Classic GP from France. “We will see the first production this year. Most of the production will be used for internal needs. We are now setting up new PS farms to produce DOC.” Mr Taqwa said with the presence of the GP farm, both broiler PS breeders and commercial farmers in Indonesia will have more choice for local supply of good quality PS and DOC.
|Organic meat trade takes off in China|
[19 February 2014] Imported organic products could be the new consumption trend in China as its growing middle class continue to worry over substandard food as well as reports of ‘fake’ organic products. Sydney and Toowoomba-based Arcadian Organic and Natural Meat Co, Australia, sent its first shipment of certified organic Australian beef into the Chinese market last month. “I think there is an excellent opportunity to grow the market [in China],” CEO Alister Ferguson told Asian Agribiz. Mr Ferguson, however, said the certifying process was not straight forward. “It was hard because they did not except our certification standards nor did they accept the US Department of Agriculture’s National Organic Program standards,” he said. Arcadian Organic operates under both. The authorities in China sent their own auditors to its farms and processing plants. “This was costly and also it took longer than our current organised audits,” he said.
|Pork and egg prices in Thailand start to decline|
[19 February 2014] Pork price in Thailand has started to decline following the end of the Lunar New Year festivity, said Somchat Soithong, Director-General of the Department of Internal Trade. Market price of pork has contracted from around USD 4.93/kg during the Lunar New Year to around USD 4.31/kg at present and is expected to stay steady at this level for some time. The egg price has also come down with no. 3 egg, the most popular size for restaurants declining to around USD 0.10-0.11 each for retail.
|Bird flu reported in eight provinces in Vietnam|
[19 February 2014] Vietnam has reported outbreaks of H5N1 avian flu in eight provinces in the north and south of the country. The Ministry of Agriculture and Rural Development (MARD) said more than 30,000 birds have been infected. Quang Ngai province has been badly affected with more than 5000 birds infected. Prime Minister Nguyen Tan Dung has called on MARD to set up inspection teams to promote anti-bird flu efforts and to take immediate action to prevent the transfer of avian flu to human. Since the start of the year Vietnam has reported two cases of human deaths from H5N1 in southern Binh Phuoc and Dong Thap provinces.
|Nepal’s DDC raises milk procurement price|
[19 February 2014] Nepal’s State-owned Dairy Development Corporation (DDC) has raised the milk procurement price by USD 0.02/litre with effect from February 13 due to rise in production cost at farm level. The decision means farmers will get an average of USD 0.35 for a litre of milk. A meeting between representatives of DDC and the Central Milk Cooperative Association (CMCA) formalised the price hike. “We have raised the price by an average of USD 0.02/litre for milk containing 4% fat and 8% SNF,” said Giridhar Bajracharya, Acting Deputy Director General of DDC. DDC currently enjoys a 40% share in the country’s dairy market. It has processing plants in Balaju, Biratnagar, Hetuda, Butwal, Kohalpur and Dhalkebar in Janakpur.
|Registration for Pig Feed Quality Conference still open|
[18 February 2014] In these times of high raw material prices, how do you unlock the maximum potential of the nutrients in raw materials? This is just one of the many questions that will be answered during the Asian Agribiz Pig Feed Quality Conference that will be held from March 13-14 at the Edsa Shangri-La in Manila, Philippines. Speakers will talk on varied topics related to feed ingredients, quality and processing with the aim of helping Asian pig producers unlock the potential of nutrients and to evaluate the quality of their feed. Registration for the conference will close on February 27, 2014. More details here.
|CJ Indonesia’s slaughterhouse division to grow sales by 90%|
[18 February 2014] PT Super Unggas Jaya, a subsidiary of CJ Indonesia, has said its slaughterhouse division recorded good business in 2013. The new division which commenced operations in 2012 supplies whole carcasses, portioned cuts and boneless & skinless meat to many major retailers, restaurants, hotels and caterers in Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi), as well as traders. Sales & Marketing Manager Adi Nugroho told Asian Agribiz that this year the company has set an ambitious target to grow its sales by 90% over last year since orders are increasing. “Our commitment to quality has been confirmed with repeat orders by our customers.” To meet the increasing orders, Mr Adi said the company will maximise the production at its two slaughterhouses and build a new slaughterhouse in West Java province.
|Vietnam to partially close live poultry markets to prevent H7N9|
[18 February 2014] Vietnam has decided to close live poultry markets one day in each month to apply quarantine measures to prevent the transmission of H7N9. “We consider the disease extremely dangerous. We need to come up with efficient solutions to prevent the virus from getting to Vietnam,” Hoang Thanh Van, Head of Animal Production told Asian Agribiz. Mr Van said although Vietnam has not found H7N9 in its poultry, the move is part of an emergency action plan designed by the Ministry of Agriculture and Rural Development (MARD) to fight avian influenza. The plan also requires that if the virus is detected in a particular market, it will be closed for seven days. The consumer preference for live poultry at wet markets poses a major challenge for Vietnam in fighting diseases like H7N9 and H5N1.
|India hopeful China may lift buffalo meat export ban|
[18 February 2014] Visits by Chinese trade delegations including government officers to Indian buffalo meat processing plants have been fruitful and an Indian export advisor is hopeful that China may lift the ban on export of frozen Indian buffalo meat soon. “The visitors were satisfied with the procedures of the Indian meat exporters,” Al Faheem Meatex Pvt Export Advisor Anupam Sharma told Asian Agribiz. Mr Sharma is also a consultant for the Indian Ministry of Food Processing Industries. “It is my personal view that direct export from India to China will start in the next financial year which kicks off in April 2014,” he said. Chinese meat importers have been using Vietnam to channel products into their country bypassing an official ban on direct imports. According to the Commercial Intelligence and Statistics Indian buffalo meat exports to Vietnam in 2012-2013 rose to 330,000 tonnes compared to 273,000 tonnes in 2011-2012.
|Jollibee net income up nearly 25% in 2013|
[18 February 2014] Philippine fast food giant Jollibee Foods Corp (JFC) posted a net income of USD 104.45 million in 2013, up almost a quarter from the previous year, the fastest for the company in seven years. The growth was driven by strong system-wide sales that rose 12.8% to a record USD 2.34 billion last year. This year, JFC has assigned USD 142 million to build new stores and renovate existing ones both in the Philippines and abroad. JFC opened 235 new stores in 2013, 98 of which were in Q4, bringing its total to 2764 stores worldwide. In addition to the Philippines, the company has store networks in the US, China, the Middle East, Singapore, Hong Kong, Vietnam and Brunei.
|Philippines to export milkfish, aquaculture products to the UAE|
[18 February 2014] The Philippines plans to export milkfish and other aquaculture products to the United Arab Emirates (UAE), Philippine Agriculture Secretary Proceso Alcala has announced. He said representatives from UAE Ministry of Agriculture and Fisheries will visit the country this month to meet with government officials and business operators to discuss in particular milkfish and other aquaculture products from Sarangani province in Mindanao. Mr Alcala said the government is looking to open trade initially for Filipino communities in the Middle East.
|Vietnam bans China poultry on fear of H7N9|
[17 February 2014] Vietnam has banned poultry imports from China for fear of H7N9 spreading across the border. Animal health officials said there’s a great risk of the virus transmission into Vietnam through trafficked poultry. “We need to aggressively prevent the trading of poultry that may contains H7N9 virus. Stopping illegal poultry trading is our top priority,” Cao Duc Phat, Minister of Agriculture and Rural Development told Asian Agribiz. Avian influenza A (H7N9) had not been seen in animals or humans since it was detected in China last March. In Quangxi, a province bodering Vietnam, two H7N9 human cases have been reported. “There’s no vaccine for H7N9 and this is like fighting a war without a weapon,” Pham Van Dong, Head of Animal Health Department told Asian Agribiz. There’s no official estimate on illegal poultry imports from China. However, sources say, in one major poultry market alone in Hanoi, the number could be five tonnes per day.
|CP India to invest USD 92.4m in Punjab|
[17 February 2014] Charoen Pokphand India plans to invest around USD 92.4 million in Punjab state, India. According to the plan, the company will set up a feedmill at a cost of USD 19.4 million, a hatchery at USD 3.9 million, a breeding farm at USD 16.5 million, broiler farms at USD 52.4 million and a swine farm at USD 194,000 in the state, according to Chaiyaporn Montha, Vice Chairman of CP India. The company plans to commence commercial production this year and complete the proposed investment by 2018. Punjab Chief Minister Parkash Singh Badal assured the company that the government would extend full support and cooperation to the company for further setting up their operations in the state.
|R&D underway for low-cost processing technology|
[17 February 2014] R&D activities carried out across all regions, especially in Europe, to develop low-cost production techniques are expected to add pace to the growth rate of the poultry meat processing equipment market. The major restraint of this market is the small and medium organisations in Asia-Pacific, Latin America, and South African countries catering to the demands of the local market but which cannot afford the costly poultry meat processing equipment. Revenue from the processed poultry meat market revenue is estimated to reach USD 250,949.5 million by 2018, with a projected compound annual growth rate of 5.9%, while the processed poultry equipment market was valued at USD 2,667 million in 2012. Factors such as the increasing demand for protein rich convenience food, busy lifestyles of two-income middle class families of developing countries are driving the market for processed poultry meat. The ever-growing population, especially in developing nations, and their increasing income are expected to result into a rise in the demand for food, both, fresh and processed.
|Indonesia to provide incentives to heifer importers|
[17 February 2014] Indonesia is expecting its first delivery of productive heifers at the end of Q1, a move that will help boost the dwindling cattle population. Director General for Foreign Trade of the Trade Ministry Bachrul Chairi said the importation would be carried out by PT Santosa Agrindo (Santori), a subsidiary of Japfa Group. “We are processing the import license of 1,500 head for the firm,” he said. This will be part of the total 185,000 head of heifer that the government aims to import. Mr Bachrul said the ministry had yet to receive proposals from other companies to import. At present, importers have shown little interest in importing heifers, partly due to the lack of infrastructure for breeding and higher cost from delivery points to local breeding areas until they produce new cattle. Mr Bachrul said that the government was now mulling to provide incentives for heifer importers. One of the alternatives may be to lift a 5% import duty on the purchase of heifers.
|Indonesia launches online system for livestock importation|
[17 February 2014] Indonesia’s Ministry of Agriculture, together with Indonesia’s Ministry of Trade, yesterday officially launched SIMREK, an online service system for livestock and livestock products importation. Director General of Livestock and Animal Husbandry Syukur Iwantoro said the system is integrated with the Ministry of Trade’s online service system Inatrade so that the process would be faster and trustworthy. “Cattle, beef and offal importers can benefit from the system starting from Q2,” he said. In the past, the procedure was done offline. Cattle, beef and offal importers should directly go to the office of the Ministry of Agriculture to get importation recommendation, and then they have to submit this recommendation to the Ministry of Trade for review.
|Thailand to pursue FMD-free zone approval in 2015|
[14 February 2014] Thailand plans to resubmit its request to the World Animal Health Organisation, OIE, again in 2015 for it to approve the country’s livestock Zone 2 as an FMD-free zone, Trisssadee Chaosuancharoen, Director-General of the Department of Livestock Development told Asian Agribiz. Zone 2 covers seven provinces in the eastern region including Chachoengsao and Chonburi where many pig farms are located. “The OIE’s scientific team inspected the region in July 2013 and was satisfied with Thailand’s performance. However, it recommended some improvements which we are working on. We will resubmit the application next year,” Mr Trissadee said. DLD plans to have Zone 7, a major pig farming belt in Ratchaburi and Nokhon Pathom provinces, as an FMD-free area too and will start the certification process soon, Mr Trissadee said.
|Double digit growth for shrimp feed consumption in Indonesia |
[14 February 2014] Shrimp feed consumption in Indonesia in 2013 recorded 20% growth last year over 2012 to 350,000 tonnes, according to Denny Indradjaja, Chairman of the Aquafeed Division of the Indonesian Feed Millers Association. “Thanks to global shrimp price hike and EMS [early mortality syndrome] in exporting countries such as Thailand, shrimp production in Indonesia last year increased quite significantly,” he told Asian Agribiz, adding that this trend will continue this year. “This year we hope that national shrimp feed consumption could see double digit growth again. We feel 20-30% growth is possible.”
|New food safety systems to propel Singapore to global arena|
[14 February 2014] Singapore’s newly launched food safety management system is aimed at strengthening and enhancing the competitiveness of its food companies in the local and global markets. The new SS 590:2013 Singapore Standard for Hazard Analysis and Critical Control Points-based (HACCP-based) Food Safety Management Systems – Requirements for any Organisation in the Food Chain introduces a robust food safety management systems standard in Singapore which is closely aligned to the international ISO food safety management system standard (ISO 22000). SS 590 covers requirements on sourcing, preparation, processing, manufacturing, packaging, storage, transportation, distribution, handling and offering for sale or supply of food in any sector of the food chain. The new standard will replace the Singapore Accreditation Council (SAC) HACCP Document No 2. SAC will require all accredited certification bodies to migrate from their current certifications of SAC HACCP Document No 2 to SS 590 by January 10 2016.
|Fast food chains in Thailand expand despite political strife|
[14 February 2014] Global fast food chains remains upbeat about market growth in Thailand despite the current political situation. Despite the unfavourable condition, chains like KFC and McDonald's remain confident about the long-term fundamentals. Prapat Siangjan, General Manager of Burger King (Thailand) said the company will open more than 10 branches this year while Waewkanee Assoratgoon, Managing Director of Yum Restaurants International (Thailand), the operator of KFC in Thailand, said the chain will open 50 more outlets this year from 500 at present and target for 750 branches in seven years. Petcharat Uthaisang, Marketing Director of McThai Co Ltd that runs McDonald in Thailand said the company plans to open at least 25 more outlets in 2014 in addition to its existing 191 branches both in Bangkok and in the provinces.
|China hotpot dish spikes demand for NZ lamb|
[14 February 2014] New Zealand’s sheepmeat trade to China increased fivefold from 2010 to USD 455 million last year, thanks to growing demand for secondary cuts such as caps and flaps - heavily fat-marbled and taken from around the belly of the lamb - that were previously much cheaper or even destined for the pet food market. When the cuts arrive in China, they are rolled; semi-frozen and sliced paper-thin, and sold to hot pot restaurants, said a report from BusinessDay. The popularity of the traditional Asian shared dish, offering cost-conscious diners healthy, home-grown fare - slivers of meat and vegetables served in a broth - is giving McDonald’s Corp , Yum Brands Inc and others a run for their money in China’s USD 143 billion fast food market. New Zealand supplies around 60% of the global sheepmeat market but it is struggling to keep up with Chinese demand. Australia, which supplies 35%, is likely to meet the shortfall.
|Korea culls 3.2 million poultry, demand plummets|
[14 February 2014] Poultry demand in South Korea has plunged by about 70% in the wake of the H5N8 avian influenza virus outbreak that emerged in January, according to Korean Deputy Minister of Agriculture, Food and Rural Affairs Lee Jun Won. He said that 3.2 million chickens and ducks at 154 farms have been culled. No new outbreaks have been reported since February 6 and no human infections of H5N8 have been reported.
|Conference discounts close today|
[13 February 2014] Early bird and team discounts to the 2014 Pig Feed Quality Conference organised by Asian Agribiz Conferences close today. The conference which will focus on feed ingredients, quality and processing will discuss that fundamental to the success of commercial pig feeding is providing the best combination of raw materials, of suitable quality, at the right price. Coupled with this the feed must be properly processed to unlock nutrient potential and prevent wastage. The third crucial element is pig husbandry - managing feed delivery to allow optimal animal performance. This conference is aimed at helping Asian pig producers unlock the potential of nutrients and to evaluate the quality of their feed. It will run from 13-14 March at the Edsa Shangri-La in Manila. More details here.
|Vietnam starts importing buffalo from Australia|
[13 February 2014] Vietnam has started importing live buffalo from Australia with the first shipment numbering 200. The bigger shipment of 600 live buffalos will head for the Vietnamese port of Hai Phong next week. Vietnam is currently the biggest importer of Australian cattle after Indonesia. Australian officials will arrive in Vietnam to check on animal welfare conditions. The development has surprised some Vietnamese experts. "Vietnam imports buffalo from countries like India, but never from Australia. They [Australia] are mostly known in Vietnam for cows," Nguyen Dang Vang, Chairman of Vietnam's Animal Husbandry Association told Asian Agribiz. Vietnam imported 68,000 live cows from Australia last year. According to trade regulations, live animal imports are subject to lower taxes than meat. Vietnam has about 5.1 million cows and 2.6 million buffalos and cattle meat accounts for 6% of Vietnam meat consumption.
|Indonesia implements animal welfare concept|
[13 February 2014] Directorate General of Livestock and Animal Health (DGLAH) of Indonesia’s Ministry of Agriculture this year plans to implement new animal welfare rules at all its livestock technical units located across the country. Director General of DGLAH Syukur Iwantoro said this will include points such as freedom from hunger or thirst; freedom from discomfort; freedom from pain, injury or disease; freedom to express normal behaviour; and freedom from fear and distress. “With this implementation, we want to comply with the international trend,” Mr Syukur revealed. He added that the livestock technical units which will implement the concept should be a role model for livestock farmers in the country.
|New cold storage facility boon for imported meat market|
[13 February 2014] India has built its largest cold storage facility for imported goods at the Mumbai airport. The facility is large enough to accommodate, at a time, goods from eight cargo aircraft, airport officials said. The lack of adequate cold storage facilities here was a perennial problem, leading to perishable goods decaying. “The new facility, set up in a modular building constructed over an area of 1400 sqm, can handle all kinds of temperature-sensitive products. It will surely be a boon for the high-end food and hotel industry that depends a lot on imported food materials,” a senior official in the Mumbai International Airport Limited, who was involved in the development of the facility, told dnaindia.com. This city is among the largest importers of high quality meat and cheese in the country.
|Cambodia reports two more H5N1 fatalities|
[13 February 2014] Two children in Kratie province of Cambodia have died of H5N1, bringing the fatalities to three so far this year. "Both died on the same day at Kompong Cham Provincial Referral Hospital," Dr Sok Touch, Director of Communicable Disease Control Department at the Ministry of Health said. "Dead chickens were found in their village and they had touched and eaten poultry meat before falling ill," he said. The bird flu has been present in Cambodia for 10 years now and has killed 35 people so far.
|Pizza chains enjoy good business in Indonesia |
[13 February 2014] Pizza chains are finding the Indonesian market appetizing. Nader Stefano Elkhweet from consulting firm PT Bain Indonesia pointed out that Indonesia is the second-largest pizza market in Southeast Asia after Malaysia. “The Indonesian pizza market is worth between USD 400 - 450 million in retail sales for large and medium chains. The market grew beyond 15% in 2011 and 2012,” he said. He added that: “Indonesia’s significant increase in per capita disposable income is encouraging Indonesians to eat Western-style food.” Based on data from Bain Indonesia, there are around 400 medium and large pizza chains in the country, in addition to 300 or so small and independent outlets. Currently 90% of sales come from dine-in establishments, although home delivery is growing fast.
|China reduces emphasis on grain self-sufficiency|
[12 February 2014] China has strayed from its grain self-sufficiency principle. In a shift in tone and emphasis, the state council this week issued a “guidelines for food and nutrition development” document in which it has called for grain production to “stabilise” at roughly 550m tonnes by 2020, below the 2013 harvest of 602m tonnes. It also calls on producers to place greater “emphasis on food quantity, pay more attention to food safety and quality”, and to prioritise the supply and quality of meat, vegetables and fruits, all of which require less land than bulk grains and create more agricultural jobs. This should lead to increased imports from countries with sufficient space to grow grain – including the US, Australia, Canada and Ukraine. “It is clear that the policy has shifted towards food grains such as rice and wheat rather than feed grains. There’s a clear problem maintaining volumes of feed grains, such as corn or soybeans,” said Wang Jimin, of the Rural Economic and Development Institute at the Chinese Academy of Agricultural Sciences.
|Sierad to focus on food production|
[12 February 2014] Sierad Produce, one of the largest Indonesian poultry integrators, plans to increase productions of all its business lines this year. Vice President Director Eko Putro Sandjojo said the company targets to produce 150 million DOCs this year, an increase of 25% over last year. An increase of 50% is set for its feed business line to reach 600,000 tonnes. “For commercial broiler, we plan to produce 14 million birds. We have been operating 28 commercial broiler farms located in West Java and East Java. And this year we will have two new farms which were constructed last year,” Mr Eko said. Sierad's PT Belfoods Indonesia which produces ready-to-cook chicken products, is expected to increase its output by two fold from the previous year's 6000 tonnes as it has added a new production line and increased capacity of its cold storage. “We will focus more on our food business since the selling price of food products such as sausage and nugget is more stable than DOC, feed and live birds,” Mr Eko revealed.
|Indonesia strengthens SPS standard|
[12 February 2014] Indonesia’s Ministry of Agriculture is now preparing specific quarantine standards in order to protect its domestic food market in view of the Asean Economic Community 2015. “We will tighten our SPS [sanitary and phytosanitary] standards in accordance with the rules of Asean to mitigate risks,” said Banun Harpini, Head of Agriculture Quarantine Agency, adding that: “other countries in the region are also doing the same thing to protect their domestic market.” Ms Banun added that the ministry is part of sub-regional cooperation, for example IMTGT (Indonesia-Malaysia-Thailand Growth Triangle), to harmonise its quarantine standards in the region.
|India’s egg production soars due to feed price, labour|
[12 February 2014] N China Venkataraju, India’s National Egg Coordination Committee (NECC) Executive Committee Member, Vijayawada region, said cost of egg production is increasing drastically, while the market price of eggs remains the same. “Layer farmers are finding it tough to maintain their business,” he said. “The main reason for this is the increase in the prices of poultry feed and labour. There is a two fold increase in the poultry feed cost as the price of all the main ingredients like corn, de-oiled rice bran, soya, and broken rice have risen. Corn which was about USD 225/tonne in February 2013 has increased to about USD 321 this month. Soy which was selling at about USD 27.3/quintal is now USD 56.2,” Mr Venkataraju explained, adding that "eggs should be priced at USD 0.06/unit or more.”
|Incentives sought for corporate farms|
[12 February 2014] To further the country’s effort towards food security, a Philippine senator has filed a bill seeking to give incentives to corporations engaged in farming. Senator Grace Poe has filed a Senate Bill 2089 (An Act Promoting Corporate Farming and Providing Incentives for its Effective Implementation), noting that the “investments in the agricultural sector, while needed, cannot be shouldered by the public sector alone in the light of the government’s perennial fiscal challenges since decades past.” Giving incentives to corporate farming would attract more private sector players with the necessary resources to invest in the agriculture sector. She said corporate farming has the “unique advantage” of being able to integrate the entire food production process, making them more efficient and effective producers.
|Dakshina Union to strengthen supply, collection chains|
[12 February 2014] India’s Dakshina Kannada Cooperative Milk Producers’ Union Ltd (Dakshina Union) is strengthening its supply and collection chain networks. Raviraj Hegde, President of the Union, said it is setting up cold storage units in strategic locations to ensure a better supply chain network. One of the locations is in Talapady. Built at a cost of USD 19,000, the Talapady cold storage unit can store up to 5,000 litres of milk and other products of the union, he said. Highlighting the logistical advantage of the unit, he said it will help customers from Ullal and the surrounding regions in Mangalore Taluk. The union collects around 260,000 litres of milk from 52,000 farmers in Dakshina Kannada and Udupi districts every day. The union has set up 52 bulk milk cooler units in various locations in these two districts. Plans are afoot to set up another 40 bulk milk cooler units under the National Dairy Plan of the Central Government.
|Indon pig farmers suffer rising feed price |
[11 February 2014] Pig farmers in Indonesia are facing a hard time as the price of complete feed and concentrate has risen. Gusti Putu Wijaya, Swine Specialist of Cargill Feed & Nutrition Indonesia, told Asian Agribiz that complete feed prices have risen to USD 0.54-0.62/kg from USD 0.49-0.58 previously, an increase of 10%. He said pig farmers who do home-mixing are also hard pressed as the prices of corn and rice brand which are the main raw material for pig feed have escalated to USD 0.3 and USD 0.27, respectively. Although the price of live pig has increased to USD 2.16/kg from USD 2/kg, Mr Gusti said the increase is not comparable to the feed and raw material price increase. An official of the Solo Pig Farmers Cooperative Alexander Kasim told Asian Agribiz that this situation could lead to a decline in the population of pigs in Indonesia. “Last year the population of pigs in Bali decreased by 40%, and other production centres such as North Sumatera, Central Java and East Java also saw declines,” Mr Alexander said.
|S. Khonkaento ventures into poultry processing |
[11 February 2014] Thailand’s S. Khonkaen Food Industry Public Co Ltd that produces mainly pork products, will extend its market reach by adding chicken processing to its business portfolio, said CEO Charoen Rujirasopon. The company will invest around USD 6.1 million to establish a poultry processing plant to produce snack food from chicken meat and market it under a newly-created brand 'Moo Chi' which is designated for fried products. The new facility located at the same site of the existing pork processing plant, is expected to start its operation in the third quarter of this year. The company targets to sell the chicken snacks locally and overseas. With the new chicken processing line in place, S. Khoenkaen will have a production capacity of 600 tonnes/year for pork and chicken snacks combined; double that of its present capacity.
|Philippines aims for chicken shipment to UAE |
[11 February 2014] Once the Philippines receive the finalisation of its halal accreditation, it can begin to ship chicken to the United Arab Emirates (UAE), said Philippine Agriculture Secretary Proceso Alcala. He said that a number of processing plants of local food company San Miguel Corp have already passed screening by UAE officials and another firm has also applied for halal accreditation, although he declined to name it. While there is still no definite timeline as to when exports will happen, the Philippines is aiming to begin exports to the Middle Eastern country before the end of the year. Mr Alcala said exports to UAE will help local players penetrate other countries in the region.
|McDonald’s opens first outlet in Vietnam|
[11 February 2014] McDonald’s Corporation has opened its first restaurant in Vietnam. The 24-hour Drive-Thru restaurant, the first of its kind in Vietnam, will feature a McPork line of burgers, which was especially created to reflect local Vietnamese tastes. The location, at the intersection of Dien Bien Phu and Nguyen Binh Khiem Streets in District 1, also marks the 10,000th restaurant for the chain in the Asia Pacific, Middle East and Africa region. “We’re proud to open our 10,000th regional McDonald’s restaurant in Vietnam, a country which offers tremendous opportunity to grow our brand,” said McDonald's President and CEO Don Thompson. “Our commitment in this part of the world and everywhere is to deliver a modern and exciting restaurant experience with delicious food and drinks, at the convenience our customers expect from McDonald’s.”
|Pizza Hut Indonesia to grow 20% annually|
[11 February 2014] President Director of Pizza Hut Indonesia, a brand of US based Yum!, Stephen McCarthy said that the Indonesian market is one of the fastest growing worldwide, and Pizza Hut Indonesia aims to grow by up to 20% annually. This year Pizza Hut Indonesia aims to open 25 new ‘big box’ outlets, or restaurants housing 40 or more tables, after launching 22 new outlets in 2013. Pizza Hut currently has 295 outlets — comprising 213 dine-in outlets and 82 specializing in delivery orders, called Pizza Hut Delivery (PHD). “We usually launch in two to three new cities annually,” Mr McCarthy said.
|Haryana Dairy Cooperative procures 368,000 litres of milk per day|
[11 February 2014] The Haryana Dairy Development Cooperative Federation in India said its average daily milk procurement touched 368,000 litres against sale of 376,000 litres per day in the April 2013 to January 2014 period. In 2012-13, the cooperative recorded sales of USD 154.3 million, a spokesman said. The total handling capacity of five milk plants in the state has been enhanced from 470,000 litres/day to 880,000 litres/day during this period. A total of 4045 tonnes ghee was sold from April 1, 2013 to January 31, 2014, he added. With a view to strengthen milk marketing, the spokesman said that 354 milk booths and milk bars have been set up in different cities and towns in the state so far.
|Indonesia’s broiler GP imports to reach 725,000 |
[10 February 2014] The Indonesian Poultry Breeders Association (GPPU) has projected imports of broiler GP in 2014 to reach 725,000 birds this year, an increase of 11.53% over last year. Secretary General Chandra Gunawan said chicken meat consumption in the country continues to increase and poultry breeders should anticipate this by importing more GP compared to the previous year. Besides, the association has also projected imports of broiler PS would be minimal since local supplies are available at a cheaper rate. “Last year, Indonesia only imported around 100,000 broiler PS,” Mr Chandra said.
|Oversupply feared in Philippine broiler market|
[10 February 2014] Unless industry players act quickly, the Philippine chicken industry is likely to experience an oversupply that would bring down farm prices, said Jose Elias Inciong, President of the United Broiler Raisers Association. Chicken price fell to a low of USD 1/kg in 2013, but has since gone up to the current USD 1.82/kg. However, Mr Inciong warned that an oversupply is expected in the first quarter of this year, and as such “prices will remain volatile” and could swing between USD 1.33-1.89/kg. With the expected oversupply, he called on the government to reduce the suggested retail price of chicken, pointing out that retail prices continue to be high even when farm price are low, thus both producers and consumers do not benefit.
|Indonesia steps up AI vaccine distribution|
[10 February 2014] Indonesia’s Ministry of Agriculture said it has prepared a stockpile of AI (avian influenza) vaccines as poultry in several regions across the country have succumbed to the disease. Minister of Agriculture Suswono said that more than 225,000 birds have died and the bird flu is a common disease following widespread flooding. “We have prepared 300,000 doses of AI vaccine for duck farmers. As for chicken breeders, we will give them as much as we can,” Mr Suswono said. The ministry has reportedly begun distributing the vaccines to several duck farming regions that have been affected by the flooding that began in mid-January.
|India’s shrimp exports in 2013 soar|
[10 February 2014] India recorded a whopping increase in shrimp exports in the April–December period last year. Earnings from exports increased 89.89% during the period to USD 2.3 billion versus USD 1.2 billion in the same period a year earlier. The share of shrimp in the total seafood export earnings also scaled up to 65.41% against 51.48% in 2012. The overall export of shrimp during the period was to the tune of 229,010 tonnes, according to the latest data of the Marine Products Export Development Authority (MPEDA). According to Anwar Hashim, a leading exporter and former president of Seafood Exporters Association of India, this upsurge was due to two major factors: serious fall in the production and export of shrimp from Southeast Asian countries and the lowering of countervailing duty on Indian shrimp in the US.
|India’s soy meal exports fall in January|
[10 February 2014] Exports of soybean meal in January 2014 were 364,000 tonnes, as compared to 620,000 tonnes in January 2013 - a decline of 41.3%. “This decline is primarily due to lower arrival of soybean resulting in lower crushing”, said Coordinator of the Soybean Processors Association of India (SOPA), Rajesh Agrawal. On a financial year basis, export during the April 2013 to January 2014 period was 2.4 million tonnes, as compared to 2.5 million tonnes in the same period of the previous year, a marginal decrease of 4%.
|Alltech launches solutions, product in Philippines|
[10 February 2014] Alltech introduced its On-farm Advantage program as well as its Mycotoxin Management program and its next generation mycotoxin binder Mycosorb A+ at the recently concluded 2014 Inahgen Congress in the Philippines. “Our customers have always been the farmers, and by just launching the On-farm Advantage program in the Philippines, 2014 will be about supporting farmers in reducing their feed costs as well as helping them increase their animal performance and profitability,” said Dr David Morpeth, General Manager of Alltech Philippines. With the On-Farm Advantage program, Alltech is able to offer a unique solutions plan for each farmer. Meanwhile the expanded Mycotoxin Management program together with Mycosorb A+ is revolutionising mycotoxin management in the animal production industry.
|INAHGEN 2014, Manila|
[7 February 2014] On-site reports by ISA Q TAN and RACHAEL PHILIP
CPF Philippines contract farming program underway
CPF Philippines has launched its contract farming scheme for swine in the Philippines. The scheme is called Wean to Finish, under which piglets will no longer go through a nursery stage, Nattakorn Sujipittham of CFP Philippines Pig Business Division told Asian-Agribiz during Inahgen 2014. Under the scheme, CPF Philippines will load contract farms with three-week old piglets, provide the feeds and the management program. The animals will be raised to market weights of between 90-100kg, and will be bought back by CPF who will be responsible for the marketing of the animals. The first contract farm is expected to be loaded by mid-2014.
Perstorp introduces novel butyric acid
Perstorp has brought its third generation butyric acid ProPhorce SR to the Philippines. ProPhorce consists of butyrins which are glycerol esters of butyric acid. This ‘esterifying’ process ensures that the acid is delivered efficiently throughout the digestive tract. It has no distinctive odour, which is a problem with earlier generation butyric acids, making it easier to handle. With improved intestinal health, feed efficiency and animal performance is enhanced. The product, which is now commercially available in the country, is distributed by Equalivet Inc.
Increased investment in value chain to boost AEC competitiveness
Government and private sector investments aimed at achieving an efficient value chain will help the Philippine livestock and poultry sector become more competitive in an integrated regional market. This is among the recommendations made by National Economic Development Authority Director Dr Mercedita Sombilla during a presentation made at Inahgen 2014 currently ongoing in Manila, Philippines. Dr Sombilla said the “investment climate in the country must be substantially improved to generated long-term sources of productivity growth”. The government is keen on the continued growth of the local hog and poultry sector, which is targeted 10% and 25% respectively, by the end of the Philippine Development Plan in 2016.
Produmix launches Reprodumix in the Philippines
Produmix has introduced Reprodumix-7, a new basemix especially developed for gestating and lactating sows in tropical countries, in the Philippines. Among the product’s benefits for the sow include higher feed intake and milk production, better digestion, balanced microbial flora, reduction of non-productive days, and better economical performance. “We conducted trials in the Philippines last year and received registration at the end of the year,” Javier Ibarrola told Asian-Agribiz at Inahgen 2014. The product, currently only available in Southeast Asia in the Philippines, has been in the market since last month.
Advantageous position for Olmix as producers opt for natural products
Apart from South Korea and Taiwan, the Philippine animal protein industry is very accepting of eco-friendly products. Olmix Asia Technical Supervisor Dr Virgil Meallet observed that awareness levels in the Philippines for environment-friendly products are higher than in other parts of Asia. Agri-Bio Philippines Inc National Sales Manager Leonel E Velasco concurred saying that there are many natural products in the market such as essential oils, natural growth promoters and organic acids and minerals. “Integrators use this as a marketing strategy to tell their customers that their products are safe and sustainable,” he said. Agri-Bio Philippines distributes Olmix products in the Philippines.
Philippines is key market for Skov
In the last two years the broiler industry in the Philippines’ has shown a noticeable shift, making it a key market for equipment manufacturers. According to Skov Area Sales Manager Joergen Moeller Andersen, farmers are keen on closed houses with environment control systems as they are convinced these systems can raise their productivity levels. Integrators as well as banks too are encouraging contract growers to make the investment. “For a start Skov systems are not cheap but we are focusing on customers that are looking at the payback in two to three years’ time. Then the Skov systems are worth the investment,” he said.” The company is also promoting its product management system called Farm Online. “One of the challenges in the region is that young people don’t want to work on farms. This system allows companies can monitor farms from a distant with valid data, in real time,” said Skov Managing Director Thomas O Hansen.
Jansen market leader in broiler cages in the Philippines
Over the last two years Jansen Poultry Equipment has emerged as the market leader for broiler cages. Maintaining long-standing relationships with customers, quality products and good post-sales service is the company’s winning strategy, Area Sales Manager Asia Gerard I Llanes said. “Farmers in the Philippines know that they cannot stay complacent anymore. Large foreign integrators have entered the market and this will only push prices down. They are more open to technology and are willing to invest in equipment that can to help them reduce costs in the long term,” he said. The layer market, however, will still take time to mature, said Sales Director Asia Dr Carmelo Ferlito. “The manual nest is still popular because labour is cheap in the Philippines,” he said. The company’s top markets in Asia for automatic nesting systems are South Korea and Taiwan, which enjoys close to 100% market share.
|Optimising pig grower performance|
[07 February 2014] Why is it that diets of the same nutrient specification do not always result in the same performance? This fascinating question will get an answer at the 2014 Pig Feed Quality Conference to be held in Manila, Philippines on March 13-14, 2014, as evidence will be presented to show the importance of the kinetics of digestion and nutrient asynchrony. Speakers will also delve in ways to reduce production cost and show how protein grower diets can bring increased profit and performance, as well as discuss feeding programs for maximal performance. Click here more details.
|Java loses substantial amount of poultry due to floods|
[07 February 2014] Chairman of the Indonesian Local Poultry Farmers Association (Himpuli) Ade Zulkarnain told Asian Agribiz that poultry farmers have lost 325,000 birds in Java due to the floods which have hit the north coast regions of West and Central Java such as Pati, Pemalang, Tegal, Cirebon and Indramayu in the last two weeks. “Around 80% of the amount are ducks,” he said. Because of this duck egg production in the affected areas is down to 182,000 eggs/day compared to the regular daily average of 4 million eggs. Some 60% of this amount is supplied to Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi). Mr Ade hopes the government gives financial assistance to the farmers to restart their businesses after conditions return to normal.
|CPF ready to ship first lot of raw chicken to Japan |
[07 February 2014] Thailand’s Charoen Pokphand Foods (CPF) is ready to ship the first lot of 22,800 kg of raw chicken to Japan after the importing country lifted a 10-year-long ban on Thai products due to bird flu concern, according to CP Merchandise Co Ltd Senior Vice President Prasit Chalongchaichan. CP Merchandise is a unit of CPF. The frozen raw chicken comes from CPF’s Chokchai processing plant in Nakhon Ratchasima province, Mr Prasit said. Apart from frozen raw chicken, CPF is preparing the plant to produce more varieties of products for the Japanese market such as raw karage and pre-fried karage, he added. CPF expects Thailand to export around 5000 tonnes of raw chicken to Japan in the first quarter of this year and the whole year exports are forecast to reach 80,000-100,000 tonnes. It will take around two to three years for Thailand to step up its raw chicken exports to Japan to 200,000 tonnes/year, the amount it used to ship before the ban.
|Coimbatore milk manufacturing units penalised|
[07 February 2014] The Tamil Nadu Food Safety and Drug Administration Department (Food Safety Wing) will file cases against four private milk manufacturing units in Coimbatore district for making substandard and misbranded products. Samples were taken from six manufacturing units during the second week of January. Only two of them were found to conform to all the norms mandated by the Food Safety and Standards Act (FSSA), 2006, said Food Safety Wing Designated Officer R Kathiravan. These firms account for the bulk of the market share in Coimbatore district. The samples were taken as part of surveillance and protection measures, and tested at the Government Food Analysis Laboratory. They were investigated for fat and solid-not-fat (SNF) contents besides the presence of prohibited substances such as starch and adulterants. The milk from two companies was found to have SNF component below the mandated levels. The other two had not complied with the labeling norms as the sachet had not given the proper address of the manufacturing unit. While it was located at Coimbatore, the sachet contained an address in Kerala. A financial penalty would be imposed on all the four firms.
|Pioneerindo to add 50 new CFC outlets|
[07 February 2014] PT Pioneerindo Gourmet International, operator of quick service restaurant California Fried Chicken (CFC), plans to add 50 new outlets this year. “Some 15% of the number is earmarked for the franchise model,” said Vice President Roy Atmadja. He added that this year the company plans to introduce traditional Indonesian items on the menu of 14 outlets under the pilot project, which will be called California Cafe. The company currently operates 254 outlets across Indonesia and has been the main contender to KFC restaurants.
|Indian buffalo meat exports to Vietnam double|
[7 February 2014] Indian buffalo meat exports to Vietnam have doubled in volume within a year as Chinese meat importers use the country to channel products into their country bypassing an official ban on direct imports. “Some 99% of the buffalo meat exports to Vietnam are in fact for Chinese markets,” said Anupam Sharma, Export Advisor at Al Faheem Meatex Pvt in Meerut, Uttar Pradesh. According to India’s Agricultural and Processed Food Products Export Development Authority, from April to October 2013 Indian buffalo meat exports to Vietnam rose to 248,000 tonnes compared to 123,000 tonnes during the same period in the previous year. The value of these exports rose from USD 291 million to USD 867 million.
|INAHGEN 2014 - MANILA|
[6 February 2014] On-site reports by ISA Q TAN and RACHAEL PHILIP
Intracare brings clean water to farms
Farmers in the Philippines are moving away from traditional farming methods to modern establishments. They are equipping their poultry and swine farms with automatic feeding and drinking lines. This is good timing for distributors Vets, Inc, which introduced Intracare products to the local marker three years ago. “Farmers need a good system to ensure clean drinking water. IntraHydrocare is more than a disinfectant. It also flushes out the buildup of bio-film in the drinker lines. We are the first company in the Philippines to offer this said Vice President and COO Maria Theresa. Hydrocare ensures animal drinking water is free from microorganisms. This is vital for animals on the farm, especially for the DOCs. It helps them get a good start in life,” she said.
Vi-Cor is seen as innovative by farmers
The Philippines is the third most important market for Vi-Cor in Asia after China and Vietnam. Farmers are happy with Vi-Cor products because they can see the results in terms of cost savings and better performance, said Awap Key Account Manager Paul Arjune P Olayres I. Awap is the distributor for Vi-Cor products in the Philippines. He said Vi-Cor is an innovative company which regularly churns out new concepts and solutions for farmers. “We work hand-in-hand with feedmills and farmers to help them further improve their formulation because most of the Vi-Cor products are included in the feed for formulation,” he said.
Ecopac paper trays find a growing market in the region
Paper pulp packaging for eggs is gaining traction in Southeast Asia for environmental as well as for food safety reasons. Ecopac CEO Yap Chor How said his packaging, moulded from old newspaper, is disposed of after use unlike plastic trays which are cleaned and reused internally, increasing the risk of an cross contamination. The year-old company, making its first appearance at Inahgen, is a division under Malaysian Poultry integrator Lay Hong Bhd. Ecopac, which produces 5 million trays/month, and has the capacity to produce 7.5 million trays/month, exports 80% of its products to Indonesia, Singapore, Thailand, Vietnam and Taiwan. “There are requests in every market for paper trays. Consumers are more concerned with the environment. It is better for farmers to switch to paper trays sooner than later, and to build up their image as an eco-friendly company,” he told Asian-Agribiz.
|Indonesian animal feed business to grow 12% in 2014|
[6 February 2014] The Indonesian animal feed business is expected to grow by 10-12% this year on the back of increasing demand for chicken, according to the Indonesian Feedmillers Association (GMPT). Its Secretary General Desianto Budi Utomo said large election-related gatherings this year would contribute to the heightened demand for chicken dishes. “There will be more food orders made to caterers, and chances are there will be meat on the menu. This will boost poultry demand and positively impact animal feedmillers as well,” he said. He added that the continued growth of the nation’s economy and the middle class would also contribute to the growth of the animal feed industry. The country is estimated to maintain growth above 5% this year. This is good because it ensures that Indonesians’ purchasing power will remain strong and keep them consuming meat products.”
|Indian soy meal export in December 2013 down|
[6 February 2014] India exported around 471,000 tonnes of soymeal in December 2013, lower than the same period last year, according to the Soybean Processors’ Associations of India (Sopa). Last December Indian soymeal exports stood at 511,000 tonnes. According to data from Sopa, Iran was a major buying taking up 132,453 tonnes of soymeal from India in December last year. “Soybean supplies in the domestic markets are low. This is giving way to low crushing,” said Sopa spokesman and coordinator Rajesh Agrawal.
|Philippine processors need support from DA, farmers to compete 2015|
[6 February 2014] Meat processing companies in the Philippines need the help of governments as well as livestock and poultry growers for supportive policies and a stable supply of raw materials. “The Asean integration presents an opportunity for Philippine processed meat products to expand,” said the newly re-elected President of the Philippine Association of Meat Processors Felix Tiukinhoy Jr. He added that the Department of Agriculture (DA) should establish grade AAA abattoirs and related facilities to endure the steady supply of high-quality raw materials for meat producers and meat processors. “Modern abattoirs are crucial components for our preparation for Asian integration. He added that the government slaughterhouse program is equally important to the livestock producers as they will give them the competitive advantage to export their meat products.
|Taj Agro Nafas to invest in mills in Malaysia |
[5 February 2014] India-based Taj Agro Nafas India Pvt Ltd and the National Farmers Association (Nafas) are investing about USD 30 million to set up 10 corn-based animal feedmills through Malaysia. Taj Agro plans to source the raw materials from India, reported Bernama. “We have identified several places for the mills namely Johor, Pahang and Negeri Sembilan. Within three years we will have 10 mills,” Taj Agro Chairman and Managing Director S Chelliah said. The mills will have the capacity to produce 10,000 tonnes of animal feeds monthly. The first mill will begin operations later this month. Taj Agro has started exporting about 2000 tonnes of raw materials for animal feed and this is expected to increase to 200,000 tonnes once the mills are fully set-up. The move would result in 30% of Malaysia’s animal feed requirement being produced locally and this will help reduce poultry prices, he said.
|Skretting opens shrimp research facility in China|
[5 February 2014] Skretting Aquaculture Research Centre has opened a research facility for shrimp and Asian fish species in Hexhoubei Research Station in Guangdong Province, China. The centre comprises indoor facilities for conducting trials on shrimp and fish growth, and nutrient digestibility. There are also outdoor tanks and ponds for fish trials. Some 250 experimental units of tanks and cages are available for research trials with both shrimp and fish in different environmental conditions. The species currently targeted at the centre include whiteleg shrimp, Asian seabass, snakehead, yellow catfish and tilapia. The centre will use Skretting’s worldwide research and development knowledge to help shrimp farmers increase their production in a more sustainable manner.
|Nestle Lanka’s milk procurement marks 15% growth|
[5 February 2014] Nestle Lanka Plc, Sri Lanka’s largest private sector buyer of fresh milk, announced that it had procured its highest ever collection of 62 million liters of local milk in 2013, marking a 15% growth from 2012. The company currently procures an average of 170,000 liters of fresh milk daily from 18,000 Sri Lankan farmers. “We have made intense and determined efforts to procure maximum quantities of fresh milk from the North and East to help develop these areas,” said Nestle Lanka Managing Director Ganesan Ampalavanar. “We have established a milk collection network in the regions, made up of collection points, to provide farmers living in distant, rural areas easy access to sell their milk and milk chilling centres to help farmers keep their milk fresh.” Nestle Lanka also conducts extensive farmer training and development programs, sharing technical expertise and best practices for quality assurance, and providing subsidies for artificial insemination and pasture plot development for cattle feed.
|Barriers for corn pushes up US sorghum sales in China|
[4 February 2014] US Grains Council chart of the week shows US sorghum sales to China surged in the 2013/2014 marketing year that began September 1 2013, up from zero in 2012 to more than 1.6 million tonnes of combined exports and outstanding sales last year through January 24 2014. China is a new opportunity for US sorghum sales partly because of the access barriers to US corn in China. Although China’s domestic corn prices are well above world market levels, biotechnology issues and tariff rate quotas have limited the import of US corn. In spite of an excellent domestic corn harvest in 2013, China’s total feed demand exceeds domestic availability. The price of imported corn and sorghum was cheaper than domestic corn in key regions, and the constraints on corn imports had shifted some of this demand to sorghum. At the same time, China’s sorghum demand has boosted US sorghum price above that of corn.
|China approves imports from Danish organic pork producer|
[5 February 2014] China’s organic certification and control agency WIT recently gave its stamp of approval for Denmark’s largest specialist organic meat producer Friland A/S, making the plant the first company in the world that can sell pork with the Chinese eco-label. Friland estimates the Chinese market could account for up to 15% of its total production of organic pork within five years “China’s strong economic growth, combined with the high consumption of pork, makes it an attractive market for free-range pig meat. We also have great advantage that Danish Crown already has a sales network in China, so we have relatively good knowledge of the market,” said Friland CEO Henrik Biilmann.
|Getting the most from pig feed raw materials|
[04 February 2014] Feed cost continues to be a concern for pig producers around the world, and even more so in Asia. Getting the best combination of quality ingredients at the right price is essential. At the 2014 Pig Feed Quality Conference to be held in Manila, Philippines on March 13-14 2014, well known experts will examine how prices of raw materials are moving, as well as talk about the optimal use of specific raw materials such full-fat soy, animal proteins and alternative ingredients in pig diets. Click here for more information.
|Thai chicken exports to hit 650,000 tonnes in 2014|
[4 February 2014] Thailand’s chicken exports are forecast to grow 13% this year to reach 650,000 tonnes, Department of Livestock Development Director-General Trissadee Chaosuancharoe told Asian Agribiz. He said the increase is expected after Japan lifted its 10-year ban against Thai raw chicken imports. Japan banned Thai raw poultry meat due to bird flu concerns and accepted only cooked products. This year raw chicken meat shipment to Japan is estimated to reach 70,000 tonnes. Heat-treated chicken exports are forecast to reach 230,000 tonnes, said Mr Trissadee, while Thai raw chicken meat exports to Japan could reach 200,000 tonnes by 2017. Japan imports close to half of the country’s total chicken exports while 42% go to the European Union and the balance to others.
|Philippines plans corn exports in 2014|
[4 February 2014] The Philippine Department of Agriculture (DA) said it will allow farmers to export corn this year if the local corn supply is more than sufficient. Agriculture Secretary Proceso Alcala said the country is targeting higher production this year while the DA plans to expand corn production areas to reach this goal. At the same time the government will add more infrastructure as well as postharvest facilities like dryers and storage facilities to give local corn farmers more elbow room once the Asean regional integration take effect in 2015. Last year corn production reached 7.30 million tonnes, down slightly from 7.14 million tonnes the previous year.
|Bangladesh to allow imports of SPF shrimp|
[4 February 2014] Bangladesh’s Ministry of Fisheries plans to allow the imports of specific pathogen-free (SPF) mother shrimps and post-larvae for the first time in a decade, drawing mixed reactions from hatchery operators. Some operators said the country has enough local supply, while others said imports would increase production and make the farms disease-free. Director General of Fisheries Syed Arif Azad said: “Imported shrimps will have to be disease-free. Our objective is to increase production and make the farms disease-free.” However, President of Shrimp Hatchery Owners Association of Bangladesh Moshiur Rahman said: “We have had bad experiences in the past. The import of shrimp fries had led to the spread of viruses in local farms, causing losses to many farmers.” Mr Rahman said the government also did not consult hatchery owners before making the decision.
|India’s Mother Dairy increases milk prices|
[4 February 2014] Mother Dairy, the largest milk supplier in the Delhi-NCR region, has increased milk prices by USD 0.03/litre across all variants. In a statement, Mother Dairy said it was compelled to raise retail prices of all variants because of an increase in milk procurement prices in the past few months. The company previously raised milk prices in the Delhi-NCR region in October 2013. Mother Dairy said close to 80% of total sales go into the procurement of milk. Higher milk prices could have an impact on food inflation and wholesale price index inflation, which stood at 13.68% and 6.16%, respectively, in December. Mother Dairy sells about 3 million liters of milk a day in Delhi-NCR. It also sells milk in cities such as Lucknow, Kanpur and Pune.
Prosperity in the Year of the Horse
|Unlocking the potential of feed ingredients|
[30 January 2014] With feed costs on the rise, getting the most out of feed ingredients is essential to successful pig production. At the 2014 Pig Feed Quality Conference, to be held in Manila, the Philippines, on March 13-14 2014, participants will learn the importance of proper feed processing to unlock the maximum potential of the nutrients within individual feed raw materials. Likewise, experts will talk about the valuable contributions of extrusion and pelleting, and the importance of premixing micro-nutrients and optimising on the feed milling processes. For further information, visit www.asian-agribiz.com/pdf/pigfeedqc14.pdf
|Monsanto Indonesia to increase hybrid corn seed sales by 20% |
[30 January 2014] US-based corn seed producer Monsanto plans to increase sales of hybrid corn seed in Indonesia by 20% to around 7200 tonnes this year. CEO of Monsanto Indonesia Mauricio Amore said the company sold around 6000 tonnes of hybrid corn seed last year. “Indonesia is the second largest market for our hybrid corn seeds,” said Mr Amore, adding that the company at the moment controls around 25% of hybrid corn seed market share in the country. The company sells five varieties of hybrid corn seed with prices ranging from USD 5 to USD 5.5/kg. To produce the seeds, the company has a corn planting area of 7000 ha and a 13,000-tonne plant in Mojokerto, East Java province.
|Risk of avian flu outbreak in Singapore low|
[30 January 2014] Avian influenza A, also known as H7N9, poses a low public health risk to Singapore, said Singapore’s Ministry of Health. “The risk of an outbreak in Singapore will continue to be low as long as the virus characteristics do not change,” the ministry said in a media statement. The country does not import live or raw poultry from China, where most of the recent cases of avian flu have been reported. Only processed poultry products which have been heat-treated to eliminate bird flu virus are allowed to be imported from accredited establishments in China. The ministry cautioned that more human cases of avian flu may be expected overseas in the coming months due to colder weather, increased poultry production and mass movements of people in anticipation of the festive seasons.
|QL Resources plans for new mill at Bekasi|
[30 January 2014] Malaysian-based QL Resources Bhd said it plans to build a new feedmill in Bekasi, Indonesia, to cater to the growing scale of its poultry farms in the country. The feedmill, with a built-up area of 10,900 sq m, is expected to be completed by the fourth quarter of financial year ending March 31 2015. “The feedmill is expected to lower the feed cost for its operating poultry farms in Indonesia as currently the group sources its feed from third parties,” said the company prospectus. The company estimated the cost of the project to stand at RM75million.
|KFC China’s recovery threatened with bird flu virus|
[30 January 2014] The current outbreak of bird flu virus is threatening KFC China’s recovery, this time ahead of the Chinese New Year holiday. The H7N9 avian influenza virus has infected 96 people in China this year, killing 19. “Chinese New Year is a seasonally strong period for our business,” Yum Brands Chief Financial Officer Pat Grismer said. Bloomberg reported that the effects of the latest round of bird flu will likely be felt beyond the Chinese New Year holiday. Last year, KFC’s China sales plummeted after a supplier was discovered in December 2012 to be overusing antibiotics, and they fell again after avian flu surfaced in April.
|Indonesian feed millers raise poultry feed prices|
[29 January 2014] Some Indonesian feed millers have increased the price of poultry feed in the middle of this month, while others plan to do the same at the end of this month. Indonesian Feed Millers Association General Secretary Dr Desianto Budi Utomo said the weakening of the rupiah against the US dollar has raised production costs, “because we still rely on imports for corn and soybean”. Dr Desianto said compared with the price at the beginning of this month, the price of broiler complete feed has increased between USD 0.51 and USD 0.53/kg, while layer concentrate between USD 0.41 and USD 0.45/kg.
|Tamil Nadu milk producers demand higher price increase |
[29 January 2014] The Federation of Tamil Nadu Agriculturalists Association announced that it would stop the supply of milk if the government failed to convene a meeting of milk producers by February 4 to discuss increases in milk prices. Though milk producers had demanded an increase in the prices of cow milk from USD 0.32 to USD 0.48, and buffalo milk from USD 0.45 to USD 0.64, the government increased the procurement price by only USD 0.05, which is meager considering input costs, Federation Secretary C Nallasami said. In the backdrop of hardships being faced by milk producers, particularly after the death of cattle due to foot and mouth disease, the government should immediately convene a meeting and discuss further increase of milk price, Mr Nallasami added.
|NTUC FairPrice offers halal Thai frozen chicken|
[29 January 2014] Singapore supermarket chain NTUC FairPrice is now offering halal-certified frozen chicken from Thailand. According to Channel Newsasia, it is the first supermarket to do so since the suspension of poultry imports from Thailand, after widespread outbreaks of Highly Pathogenic Avian Influenza H5N1 in Thailand from 2004 to 2008. Prior to this, FairPrice imported fresh chicken from Malaysia and frozen raw chicken from Brazil. In June 2013 AVA lifted the ban on chicken imports from Thailand and approved the import of frozen chicken from selected establishments after thorough checks and inspections.
|Fucheng Wu Feng sees strong results|
[29 January 2014] Fucheng Wu Feng, or Fortune Ng Fung Food, saw its profit increase by 183% to USD 9.42 million compared to last year’s USD 3.30 million. Revenue, however, rose 6% to USD 17 million. The integrated company operates feedlots, slaughters beef cattle and processes meat for the local supermarkets. It also processes mutton and dairy goods. Packaged Fucheng beef products sell in supermarkets in Beijing and other northern Chinese cities. The company attributed the results to strong demand for beef products as well as dairy cattle and goods. The company, also known for its restaurant chain of the same name, announced last month it completed the acquisition of two restaurant chains in Beijing and Chengdu.
|Bangladesh expects poultry investments to cross USD 7.73b by 2021|
[29 January 2014] Bangladesh Livestock Research Institute (BLRI) said investments in Bangladesh’s poultry sector could cross USD 7.73 billion by 2021. Considering this potential the institute has requested USD 1.17 million from the Ministry of Fisheries and Livestock to expand its poultry sector related activities such as developing weather-tolerant chicks. Also, new species of poultry birds and grass have been developed which, according to BLRI, have already created a positive impact on the sector. The Ministry said demand for poultry has been gradually increasing while fish cultivation is declining as consumers switch to poultry as a source of animal protein. Over the last decade per capita meat consumption in the country has increased to almost 35%.
|QL Resources to inject USD 10.49m into poultry division|
[29 January 2014] QL Resources Bhd plans to inject USD 10.49 million into its integrated livestock farming division. The funds will be used to expand the group’s existing poultry farms in Malaysia, Indonesia and Vietnam, Managing Director Chia Song Kuan said after the company’s extraordinary general meeting in Kuala Lumpur. The group’s poultry farms in the country are operating at near to full, or full capacity, producing an overall total of 40 million day-old chicks and four million eggs daily. The expansion of the poultry farms will potentially increase the overall total production capacity of these farms to a maximum of 50 million day-old chicks annually and five million eggs daily within the next 18 months, said the company prospectus.
|Using modern tools to measure and ensure feed quality|
[28 January 2014] The importance of quality feed in pig production cannot be over-emphasised, but how can quality be properly assessed? This will be answered at the 2014 Asian Agribiz Pig Feed Quality Conference to be held in Manila, Philippines on March 13-14, 2014, where a session on feed quality will look on how modern tools like NIR can assess nutritional quality of feed ingredients. Also at the this session, participants will learn the limitations of least cost formulation and get advice on how to optimise feed use. Click here for more information.
|Shuanghui set for listing in Hong Kong|
[28 January 2014] Shuanghui International Holdings has applied for a listing on the Hong Kong stock exchange to raise up to USD 6 billion. Shuanghui, which bought Smithfield Foods last year, expects to receive approval and list the company under the name WH Group in April. The funds raised will go towards paying off the debt that Shuanghui took on in order to make the Smithfield acquisition, which cost USD 4.7 billion in cash and an additional USD 2.4 billion in acquired debt. In order to speed the process, 16 investment banks have been given pieces of the deal, including JP Morgan, Standard Chartered, UBS, China Citic Securities, BOC International and Goldman Sachs. The news was first reported by Reuters subsidiary IFR, and details were reported in Tuesday’s South China Morning Post.
|Thailand’s public health body on bird flu alert|
[28 January 2014] Thailand’s Department of Disease Control (DDC) is strengthening its bird flu surveillance and preventive measures due to the current cold weather that could favour the spread of viruses. Although Thailand has been free from the bird flu since July 2006, the preventive measures and monitoring is in view of the presence of the virus in several countries in the region said Director-General Dr Sopon Mekthon. Dr Opas Karnkavinpong, Deputy Director-General of the DDC said to prevent any infection from consumption of poultry meat, consumers should select only safe poultry meat, stay away from sick or dead poultry (for cooking) and ensure proper sanitation especially when travelling to countries where the virus is present.
|Big Dutchman takes over Zucami |
[28 January 2014] The Big Dutchman group of Germany is acquiring Spanish poultry equipment supplier Zucami which recently became insolvent. “The insolvency court accepted our concept presented in December,” confirmed Bernd Meerpohl, Chairman of the Big Dutchman AG board of management. Big Dutchman can now purchase the assets of the Zucami while maintaining its headquarters and saving approximately half of the 120 jobs. Business will continue under the new name Zucami Poultry Equipment S.L. and remain an independent brand on the international market, said Mr Meerpohl, adding that management and distribution will not be affected substantially. According to Mr Meerpohl, Zucami earned an outstanding reputation and impressive presence and will complement Big Dutchman's product range.
|Amul Dairy launches milk vending machine|
[28 January 2014] India’s Amul Dairy has gone a step further to sell its milk through ‘Any Time Milk’ (ATM) vending machines. The pilot project of this 24x7 ATM began with the installation of a vending machine at the gate of Amul Dairy in Anand town, Gujarat. “To start with, we plan to set up these ATMs at each of the 1100 ‘mandalis’ [village-level milk collection centres] in Kheda and Anand districts where we market Amul,” Ramsinh Parmar, Chairman of Amul Dairy said. In Anand and Kheda towns, these ATMs will be installed at different public places to enable consumers to buy milk whenever needed.
|Thai pig and pork prices hit ceiling |
[27 January 2014] Prices of pig and pork in Thailand have hit the ceiling of the recommended prices set by the Internal Trade Department due to healthy demand ahead of the Chinese New Year festivities. Limited supply caused by unfavourable weather and disease has also contributed to the price hike. Kiddivong Sombuntham, Secretary-General of the Swine Raisers Association of Thailand said farm-gate price of live pig is currently at USD 2.28 per kilogram while pigmeat is being retailed at USD 4.57/kg. Mr Kiddivong anticipates prices to hover around these levels through the Chinese New Year festival and will decline after that as demand will recede. He added that the high price will lead to reduced consumption and exports.
|Indonesia to produce 690,000t of shrimp|
[27 January 2014] Indonesia’s Ministry of Fisheries and Marine Affairs has set a target to produce 690,000 tonnes of shrimp in 2014 valued at around USD 2.9 billion. Director General of Aquaculture Production of the ministry, Slamet Soebjakto said last year the production of shrimp reached 619,000 tonnes, while the ministry only targeted 608,000 tonnes. “This made us confident to reach, even exceed, the 2014 target. Moreover, the global price of shrimp is still high, but the supply is limited due to EMS disease. Indonesia, which is still free from EMS disease, should take this opportunity to increase production,” explained Mr Slamet, adding that most of Indonesian shrimp is exported to the US, Japan and Europe.
|Philippine poultry, livestock production up in 2013|
[27 January 2014] Despite the super typhoon that hit some key production areas in November 2013, poultry and livestock production in the Philippines increased by 4.2% and 1.75% last year, a report by the Bureau of Agricultural Statistics said. Together both sectors accounted for 31% of total agricultural production. The country’s chicken output jumped about 5% to 1.55 million tonnes, while hog production grew almost 2% to 2.01 million tonnes. Value of chicken and hog production also posted increases of 4.9% and 10%, respectively.
|Vietnam to restructure pangasius production|
[27 January 2014] Vietnam will restructure its tra fish or pangasisus production through a project worth USD 3.2 million, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The projects will help the industry to meet international quality standards and to establish a sustainable pangasius supply chain by 2020. Under the plan Vietnam will set up a model farm and training centres over the next four years. It will expect to get participations of at least 70% of processors and 30% of animal feed producers. Vietnam accounts for more than 90% of the world's pangasius production, yet there are often concerns over antibiotic residue. In the latest development, Russia recently suspended all imports of Vietnam tra fish due to quality problems. Tra fish exports amounted to USD 1.8 billion last year.
|Markfed enters India’s Himachal cattle feed market|
[27 January 2014] Markfed that is based in Punjab, India, has signed an agreement with Himachal's Himfed to supply dairy cattle feed in Himachal, a state in northern India. “After this agreement, our cattle feed will be made available to farmers through the outlets of cooperative societies,” Managing Director of Markfed Dr Karmjeet Singh Sra said. Markfed started manufacturing cattle feed to meet the needs of dairy farmers in Punjab by installing a cattle feed plant at Kapurthala in 1975 and later at Gidderbaha in 1985.
|Feed quality and processing take centre-stage at conference|
[24 January 2014] Fundamental to the success of commercial pig feeding, especially in Asia, is getting the best combination of quality raw materials at the right price. Coupled with this, the feed must be properly processed to get the most of its nutrient potential and prevent wastage. Also crucial is proper management of feed delivery to achieve optimal animal performance. How Asian pig producers can achieve these is the goal of the 2014 Pig Feed Quality Conference organised by Asian Agribiz Conferences to be held in Manila, Philippines on March 13-14, 2014. For specific topics and more details, click here.
|Sujaya's breeding farm receives bird flu free certification|
[24 January 2014] PT Satwa Borneo Jaya Breeding Farm (SBJ), a subsidiary of West Kalimantan based Sujaya Group, recently was certified as a bird flu free compartment farm by Indonesia’s Ministry of Agriculture. This confirms the bird flu free status of SBJ’s breeding farms and allows the company to export its DOC to other provinces in Indonesia. Several laboratory tests conducted in the veterinary agency in Banjarbaru and the results of surveillance have confirmed that all the breeding farms including GP and PS farms are free from bird flu. Operational Director of Poultry Division of Sujaya Group, Muhammad Taqwa told Asian Agribiz that the certification gives technical and non-technical benefits to the company. “With the certification, we now have a competitive edge. We believe that our existing and potential customers will see it as a plus point since it’s certified by an independent party.” Mr Taqwa added that the compartment team from DGLAH will conduct periodic inspections including surveillance and lab tests in every six months.
|Berdikari allocates USD8.3m for expansion|
[24 January 2014] State owned beef cattle integrator PT Berdikari has allocated around USD 8.3 million to build new feedlots and a cattle slaughterhouse, as well as add more Limousine Meat Gallery outlets. President Director Librato El Arief said that the company aims to strengthen its upstream and downstream operations. The company has been running a breeding farm in Sulawesi which is integrated with corn and sorghum plantations, 12 feedlot farms located in East Java, West Java and Banten province with a total population of 12,000 heads, and a cattle slaughterhouse. “We plan to add 12 new beef outlets this year in Jabodetabek. And next year we will develop a franchise speed-up expansion,” said Mr Librato. He added that the company this year plans to import 30,000 feeder cattle and 5000 productive heifers from Australia.
|Silver Fern Farms sell top end products online in Shanghai|
[24 January 2014] New Zealand meat company Silver Fern Farms will be selling its high quality retail lamb products online in Shanghai from March targeting higher income customers. Recently the US Meat Export Federation announced that it would be selling its products online to capture customers comfortable shopping for meat via the Internet. China has emerged as New Zealand’s single biggest export market for sheepmeat, mainly with lower-value commodity products but recently meat exporters are seeing a potential for higher value products as well. Silver Fern Farms, through NZ Focus, its distribution and marketing service in China, will sell online through a TV shopping channel.
|2013 Dairy, Meat Price Index hits record high levels|
[24 January 2014] The UN’s Food and Agriculture Organisation Food Price index held steady in December 2013 with sharp increase in dairy prices and firming meat values balancing out a steep decline in the other food commodities. The Index measures the monthly change in international prices of a basket of five food commodities – cereal, vegetable oil, dairy, meat and sugar. The December FAO Dairy Price Index rose 5.2% from November as demand for milk powder, especially from China, remained strong. During 2013, the Dairy Index averaged 243 points, its highest annual value since its inception, exceeding the previous maximum of 230 points reached in 2011. The Meat Price Index rose slightly in December, with prices for beef and pork moving higher. Prices for poultry were stable. Prices for lamb and mutton moved lower while the overall Meat Price Index remained at historically high levels.
|McDonald’s fresh menu for the Chinese New Year |
[24 January 2014] McDonald’s China is observing the Chinese New Year with the release of two unique burgers – the Red Sausage Pork Burger and the Chestnut Grilled Chicken with Shrimp Sandwich. Priced at USD 3.47 the Red Sausage Pork Burger is made of two pork patties, lettuce, sauce and one large slice of smoked Chinese sausage. The Chestnut Grilled Chicken with Shrimp Sandwich, priced at USD 4.46, comes with a grilled and flattened piece of chestnut grilled chicken, lettuce, sauce and two breaded shrimp sticks. US-based fast food restaurants have seen much success in Asia thanks in part to its ability to morph classic American menus into versions that look and taste familiar to consumers around the world.
|Tri Group launches broiler feed|
[23 January 2014] Indonesia's Tri Group yesterday launched broiler feed brand TG feed in Bogor. Production Manager Yoyo Kuswoyo told Asian Agribiz that the feed at the moment is produced through toll production by two feed millers - Sierad Produce and Gold Coin. However Mr Yoyo did not disclose how many tonnes is produced per month. He said most of the feeds are for internal use -- broiler farms and contracted farms. “It is not an impossible dream that in the future we will build our own feedmill to produce the feed,” he remarked. Tri Group is the largest broiler producer in Bogor, West Java and is owned by Tri Hardiyanto, Chairman of the Indonesian Poultry Organizations Association. Besides broiler farming and contract farming operations, it has slaughterhouses and fresh chicken meat retail outlets in Bogor.
|Philippines bans poultry from China|
[23 January 2014] The Philippines has issued a temporary ban on poultry imports from China after the World Organisation for Animal Health (OIE) confirmed an outbreak of H5N1 influenza in Hebei Province. However local poultry players pointed out that the ban could just be a reiteration of an already existing policy. United Broiler Raisers Association President Jose Elias Inciong told Asian Agribiz that even as far back in 2003, when the AI re-emerged in the region, the country had placed a ban on poultry imports from China. The Philippines remains one of three Southeast Asian that has kept the avian influenza out of its borders, and has been exerting efforts to maintain this status as it seeks to become a strong player in the export market.
|Shuanghui International is now WH Group |
[23 January 2014] Shuanghui International Holdings Limited, the world's largest pork enterprise, has changed its corporate name to WH Group Limited. The new name differentiates the company as a corporate brand from its many product brands. The move reflects the company’s goal to solidify its leading position in the global pork industry. WH Group Chairman and Chief Executive Officer Wan Long said the new name “symbolises our ambition to be a world-leading company known for food products that meet best-in-class standards of quality, nutrition and safety”. ‘Wan’ and ‘Zhou’ connote eternity and continents respectively.
|CPF confirms quality and safety of Thai chicken |
[23 January 2014] Thailand’s Charoen Pokphand Foods has stepped out to confirm the superior quality and safety of its chicken meat after the recent baseless-rumour about a bird flu outbreak in Thailand. Payungsak Somyanonthanakul, Vice President for poultry technical service, said CPF operates in accordance with international quality and safety standards and its compartmental system ensures its bird flu-free status. He added that importers have confidence in Thai chicken and many importers in Japan have switched their orders from Brazil. In response to growing demand from Japan, CPF has acquired an automatic cutting machine (AMC) and installed at its Saraburi plant. The company has also installed a dicer, BL deboning machine and block cutter at the plant to generate specific cuts for Japan.
|China H7N9 cases exceed 200|
[23 January 2014] Human cases of H7N9 bird flu have exceeded 200 in China amid concern that a doctor who died from the infection might have contracted the disease from human-to-human transmission. The doctor, one of two bird flu deaths reported on January 18, worked at a hospital in Shanghai, but the hospital said it has handled no H7N9 cases and denied that the doctor could have contracted the virus from patients. Five new non-fatal cases were also reported, bringing the country’s total to 204 since last March, with 54 deaths. Most patients report contact with birds and the virus has not achieved sustained human-to-human transmission. There are fears the disease will spread as people return to their hometowns for the Chinese New Year on January 31.
|Japan raises ethoxyquin limit in shrimp imports|
[23 January 2014] Japan has raised the limit of ethoxyquin, an antioxidant preservative, in its shrimp imports to 0.2 ppm (parts per million) from 0.01 ppm. The move will benefit countries like India, Vietnam, and Indonesia, which are major exporters of shrimp to Japan. Japan started to apply the ethoxyquin inspection on Vietnam's exports in May 2012. This significantly affected the industry in Vietnam. Japan is Vietnam's second largest importer of shrimp after the US. Last year Vietnam brought home USD 3 billion in shrimp exports.
|Thailand to intensify slaughterhouse inspection |
[22 January 2014] Thailand’s Department of Livestock Development will this year step up efforts to promote standard animal slaughtering and increase the number of certified slaughterhouses in the country, Pennapa Mattayompong, Veterinary Expert at the Bureau of Livestock Standards and Certification at DLD told Asian Agribiz. “This year’s policy is to strengthen our inspection at slaughterhouses around the country and work together with the police to arrest and take charge of those illegal facilities that don’t have slaughtering permits from DLD.” There are a number of unauthorized sub-standard abattoirs in the country. As of 2013, certified slaughterhouses in Thailand numbered 1,712, around 62% of the total, up from 1,189 or 43% of the total in 2008. Sombat Supprapakorn, head of slaughterhouse control at the bureau also told Asian Agribiz that DLD will intensify its slaughterhouse inspection.
|Hwa Huat receives first batch of breeder DOC|
[22 January 2014] Malaysia’s Hwa Huat Sdn Bhd received its first batch of Ross breeder DOC. These birds will start laying after 24 weeks. Eggs laid in the first two weeks are usually not collected for hatch. Eggs laid in the third week will be sent to the hatchery and Hwa Huat is expecting its first batch of DOC at week 29, Hwa Huat subsidiary Infinite Capacity Deputy General Manager Tan Siong Teck told Asian Agribiz. According to General Manager (Broiler) Dennis Tan, growing their own breeder flock will give the company better control over the health status and quality of the broiler chicks. “Developing a breeder unit will also ensure constant supply of DOCs,” he said.
|Vietnam may ban poultry imports from Korea|
[22 January 2014] Animal health officials have denied reports that Vietnam has imposed a ban on imports of frozen poultry from Korea. However, the source said Vietnam can cite public health protection to apply the ban, given the H5N1 outbreaks in Korea. “There isn’t any official decision on the matter yet. But we have to try our best to prevent H5N1,” Nguyen Xuan Binh, Director of Vietnam’s Animal Health Region 6 Administration told Asian Agribiz. Vietnam started importing chicken from Korea in 2006 and has become the largest importer of Korean poultry, mostly spent layer hens. In 2012, Vietnam imported about 16,000 metric tonnes of frozen chicken from Korea, valued at USD 19 million and 80% of Korea’s total poultry export. Korea this year is expected to export 27,000 metric tonnes of poultry, mostly to Vietnam and Hong Kong.
|Malindo projects revenue of USD413m in 2014|
[22 January 2014] The increasing demand of chicken meat in Indonesia will encourage the business growth of PT Malindo Feedmill, according to CIMB Securities. Analyst of CIMB Securities Irenne Achmad projected that Malindo’s income in 2014 could reach USD 413 million or an increase of 19.3% from last year’s projection. “Net income, meanwhile, is expected to increase by 50% to USD 39 million.” Mrs Irene said that sales of DOC and feeds would be the main income driver.
|Taiwan to open market to Canadian beef|
[22 January 2014] Taiwan lifted a ban on imports of Canadian bone-in beef and other specific beef products. Under the new measures set to take effect mid-February, imports from Canada of bone-in beef from cows under the age of 30 months or younger will be allowed, the Economic Ministry said. Canadian and US beef imports were banned in 2003 in the wake of various mad cow disease scares though Taiwan has steadily lifted restrictions in recent years. Boneless Canadian beef has been imported since 2007. The ministry said it hoped its latest move would help promote negotiations with Canada on an investment agreement as well as pave the way for Taiwan to join the Trans-Pacific Partnership.
|Vietnam reports H5N1 fatality|
[21 January 2014] Vietnam has reported the first human death from a H5N1 infection in nine months amidst rising concern that the bird flu could spread wider, in poultry and humans. A 52-year-old man in southern Binh Phuoc province, a poultry production hub, died on Saturday after six days of treatment at a local hospital for fever, cough and respiratory problems. Meanwhile, northern Bac Ninh has become the latest province in Vietnam to register a H5N1 outbreak. “It is a challenging time for us, right before Tet, when there’s a big increase in poultry trade and consumption,” Nguyen Huu Truong, Deputy Director of the local Agriculture and Rural development Department told Asian Agribiz. The outbreak has forced the culling of nearly 10,000 ducks in the province. The local authority also requested 3 million doses of vaccine to curb the spread.
|DSM Indonesia to launch ‘business to farm’ program |
[21 January 2014] DSM Nutritional Products Indonesia will launch a ‘business to farm’ program in several cities in Indonesia such as Jakarta, Medan, Surabaya and Makassar, this March. Animal Nutrition and Health Manager, Suaedi Sunanto told Asian Agribiz that so far the company has been focusing on the ‘business to business’ model, but starting from this year the company would be more active in farms sector including poultry, cattle and pig farms. “From the new program, we expect to gain additional sales of premix of around USD 3-4 million this year.” Under the program, the company will offer advice and solutions on nutrition, production, disease control and management. “Initially we will select a few farmers in each production centres to have access to our cloud computing Brill formulation system and help them analyse their raw materials,” Mr Suaedi said.
|Halal slaughterhouse on course|
[21 January 2014] A new AA halal slaughterhouse in Cotabato City, Philippines will push through this year following the completion of the bidding process for its construction, the National Meat Inspection Service (NMIS) said. The facility, which has a budget of about USD 443,000, is targeted to be operational within the year and will service the domestic halal requirements. The NMIS also said that the National Commission on Muslim Filipinos has approved the application of two Halal Certifiers, which it said will complement the NMIS’ efforts in ensuring the safety and quality of products intended for Muslim countries and communities. The Philippines has pending applications to export meat and meat products to the Arab Emirates, Brunei, Indonesia and Malaysia, all of which require halal certification.
|Tesco introduces QR Code for meat products |
[21 January 2014] Tesco Lotus, a modern trade store in Thailand and a joint venture between UK-based retailer and Charoen Pokphand Group, has introduced the QR code system that allows consumers to track the origin of meat products it retails nationwide. Pornpen Nartpiriyarat, head of Tesco Lotus’s trading law and technical department said the company has joined forces with five meat supplier namely CPF, Betagro, Kanchana Fresh Pork, QPM and Golden Foods to provide traceability via QR Code for chicken and pork products. Information such as the producer, source farm, and slaughterhouse of origin, batch number, and nutritional information and meat recipes are available from the code. Tesco Lotus plans to expand QR code system to eggs and ready meals in two years.
|Indian buffalo meat exports on the rise|
[21 January 2014] India buffalo meat export is at all-time high, driven mainly by demand from China and Vietnam, according to the Agricultural and Processed Food Products Export Development Authority (APEDA). Growth registered at 23% in quantity between April and October 2013. “There has been a huge demand for India buffalo meat in China, which is routed through Vietnam now. In the next five years we expect India to be the world’s largest exporter of buffalo meat,” Rizwan Shaikh of Al Shirin Exports said. Exports to Vietnam saw the biggest increase of 229% in value terms, and more than 100% in volume. Vietnam accounts for about 40% of India’s buffalo meat export.
|China defines new agri strategy|
[21 January 2014] China will increase the “appropriate” use of overseas markets to feed its people while implementing a new safety and security strategy for agriculture, according to 2014’s ‘No. 1 Document’ which sets the agricultural policy for the coming year. According to the document China will maintain ‘basic grain self-sufficiency’ while using international markets to complement supply. The earlier policy set a 95% food self-sufficiency target, and some officials had hoped to reduce the target to 80%. But an explicit reduction would have been politically controversial and the new document sets no numerical target. The document says China will maintain a ‘red line’ of 120 million hectares of arable land to ensure food security, and work to reverse the loss of arable land to urbanisation, industrialisation and contamination. The government said it would also work to improve agricultural pricing mechanisms, safety and quality, as well as improve rural governance and pursue land reform, designed to give farmers clearer rights to their land.
|Siak Liang to move into new processing plant in 2016|
[20 January 2014] Siak Liang Enterprise Sdn Bhd in Sarawak, Malaysia, hopes to move into its new further processing plant in the Kota Samarahan Industrial Estate in two years’ time. The plant, set to manufacture burgers and sausages, will be roughly five times larger than its current plant. “We are churning out 5 tonnes of products per day and at a growth rate of 15% per year our business is becoming too large for our current premises,” Director Sia Khiok Hui told Asian Agribiz. He added that there is potential for growth locally. He also sees the possibility of exporting their products to other areas in Borneo and Kalimantan. The company operates 11 retail outlets called Agrodelight Food in Sarawak selling chicken carcasses and parts as well as its Agrodelight brand of sausages and burgers, Australian beef, frozen fish, vegetables and other cooking ingredients.
|Indonesia needs butchers school|
[20 January 2014] Professor FG Winarno a Food Technologist from the Bogor Agricultural University said that Indonesia has limited professional, qualified local butchers. “Most of butchers hired by Indonesian meat processors are from Australia. It’s because the processors find it difficult to find competent local butchers,” Prof Winarno told Asian Agribiz. A butcher’s school is needed in Indonesia to produce professional, qualified local butchers who are able to develop local meat based foods such as 'rendang Padang' and 'opor' into commercial ready-to-cook products. “Nampa [the National Meat Processors Associations] members as the user should ensure that this [butcher’s school] happens,” he said.
|Marel introduces new products to Indon meat processors|
[20 January 2014] Marel International chose the National (Indonesia) Meat Processors Association (Nampa) to introduce two new products: ValueSpray and RotoCoarse. Area Sales Manager Asia & Oceania, Gerhard van der Kolk told Asian Agribiz that the ValueSpray is specifically designed for in-line wet marinating of portioned and fragile meat products with an accurate pick up and uniform distribution of marinade and coarse pieces. The RotoCoarse, meanwhile, is designed to process all types of chicken bones including backs, frames, necks and even whole birds. It has a maximum infeed capacity of 3400 kg/hour. Mr van der Kolk believes that the two new products will do well in Indonesia.
|CAP calls for ban on antibiotics in feed|
[20 January 2014] The Consumers Association of Penang (CAP) in Malaysia has called on the ministries of health and agriculture to ban antibiotic use in animal feeds following the EU ban on antibiotics in animal feed. CAP wants the ministries to create a national system to monitor antibiotic use in food animals. This includes actions to improve and refine the collection of data on antibiotic use in the country. It added that the quantities and classes of antibiotics used in food animals according to animal species need to be documented as it is essential for risk analysis, interpreting resistance surveillance data and assessing the impact of interventions to promote prudent use.
|Pakistan poultry prices to recover|
[20 January 2014] The Pakistan Poultry Association (PPA) has assured consumers that the price of chicken will come down by the end of January. "The price of poultry has gone up due to high demand and short supply as farmers have reduced production to cut their losses," Dr Muhammad Aslam, PPA Chairman said. He added that the ban on exports of poultry products has created a surplus and lowered prices and this has prevented farmers from enhancing production.
|Thailand denies bird flu outbreak|
[17 January 2014] Thailand’s Minister for Agriculture Yukol Limlaemthong confirmed that reports of an avian influenza outbreak in Thailand is groundless, citing that the rumour aims to ruin the Thai poultry industry soon after Japan lifted the ban on Thai raw chicken and also with the lunar New Year festivities around the corner. Kukrit Arepagorn, Manager of the Broiler Processing Exporters Association insisted that the reports are baseless as association members apply stringent security measures. Trissadee Chaosuancharoe, Director-General of Department of Livestock Development reiterated that Thailand has been bird flu free for five consecutive years, thanks to regular preventive and surveillance measures including observation of the situation in neighbouring countries and disinfecting farms near the border. A source in the DLD revealed to Asian Agribiz that Mr Trissadee will visit Japan this weekend to confirm the status and quality of Thai poultry.
|Indon meat processors ask government to allow MDM imports|
[17 January 2014] The National (Indonesia) Meat Processors Association (Nampa) has asked the government to allow imports of mechanically deboned (chicken) meat (MDM). Nampa Chairman Ishana Mahisa told Asian Agribiz that currently its members depend on supplies from three poultry integrators in Indonesia at prices higher than the price of MDM from Brazil or the US. “Besides, the integrators cannot meet our demand,” said Mr Ishana, adding that Nampa members need more than 300 tonnes/month of MDM. “The situation has weakened our competitiveness in the face of the Asean Economic Community. The government does not allow imports of MDM as its halal status is uncertain, said Akhmad Junaedi, Director of Veterinary Public Health and Post-Harvest of the Ministry of Agriculture.
|Price, competitors to affect US pork exports to SEA|
[17 January 2014] How US pork exports will fare this year in Southeast Asia will depend a lot on prices and its competitors, Sabrina Yin, Asean Director of the US Meat Export Federation (USMEF) told Asian Agribiz. She said the USMEF is still looking at what its competitors like Brazil and Denmark are doing in terms of production and prices, as its main markets in the region are still price sensitive. On the current controversy regarding the possible entry of US pork exports into Thailand, Ms Yin said the lack of a free trade agreement between the two countries means that US pork is slapped a 50% tariff making it uncompetitive in the Thai market.
|China may allow increased food imports|
[17 January 2014] The Chinese government may retreat from a long-standing commitment to domestically produce 95% of the country’s food, while importing only 5% of consumption. The proposal appears in a preliminary draft of the government’s annual agricultural policy statement, called the “Number One Document,” according to a report by Bloomberg news service. The proposal would change the domestic/import ratio to 80-20, meaning 20% of food consumption could be imported. In recent years the 95-5 ratio has been honoured in the breach as imports soared, and the new policy would recognise that a prosperous China suffers from a structural food supply deficit. The country would still stockpile enough rice and wheat to feed itself in time of war or a trade embargo.
|Sri Lanka to achieve self-sufficiency in eggs|
[17 January 2014] There will be no need to import eggs after 2015 as Sri Lanka will be self-sufficient in eggs under the national development program of Divineguma, according to former Divisional Secretary for Bingiriya, WE Jayathilaka. Mr Jayathilaka said plans are in place to make Sri Lanka self-sufficient in eggs. “Under the livestock development program, the Economic Development Ministry has distributed 1.1 million quality chicks among low income families. Another 600,000 chicks are to be distributed among low income families island-wide shortly,” he said. The government has invested up to USD 2.3 million for this project. Free expertise and veterinary services are provided to those who are engaged in poultry farming, he said.
|Frozen meat sales in Kathmandu soar|
[17 January 2014] Frozen meats are becoming increasingly popular in Kathmandu as they are processed and handled hygienically. Chandra Tiwari, proprietor of Nina and Hager, one of the major suppliers of frozen meat in the Kathmandu valley, said sales were growing at 20-25% annually. He added that his company supplies more than 1000 kg of frozen meats of more than 100 varieties daily. "Department stores like Big Mart, Bhat Bhateni and Bluebird are the major retailers of frozen meats," he said. Frozen meat stores in the Kathmandu valley sell buffalo and chicken meat, fish, seafood, salmon and beef, among others. Some are domestically produced, while some are imported, traders said.